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How are the Tariff Regime / FTA Status for Major Destination Countries?
China
Trade Agreement Information - FTA, ASEAN-China
In force: 2005-07-01
Type: Free trade agreement
Member States: Brunei Darussalam, Cambodia, China, Indonesia, Lao, People's Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand, Viet Nam
Scope: Plurilateral, Country-Group
Vietnam
In force: 2010-01-01
Type: Free trade agreement
Member States: Australia, Brunei Darussalam, Cambodia, Indonesia, Lao, People's Democratic Republic, Malaysia, Myanmar, New Zealand, Philippines, Singapore, Thailand, Viet Nam
Scope: Plurilateral, Country-Group
In force: 2007-06-01
Type: Free trade agreement
Member States: Brunei Darussalam, Cambodia, China, Indonesia, Lao, People's Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand, Viet Nam
Scope: Plurilateral, Country-Group
Korea
Trade Agreement Information: CECA, ASEAN-KOREA
In force: 2007-06-01
Type: Free trade agreement
Member States: Brunei Darussalam, Cambodia, Indonesia, Korea, Republic of, Lao, People's Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand, Viet Nam
Scope: Plurilateral, Country-Group
How Is Thai Mango Harvested?
During the mango harvesting process, it is possible to manually pick mangoes up to four times. The fruit is collected when it reaches its mature-green phase, before to achieving ripeness. The ripening process of mature mangoes occurs subsequent to their harvesting, as they undergo handling and distribution. The mango tree's stems secrete a substance known as latex or milk, which has the potential to cause skin burns upon contact with mangoes. Certain producers employ specific grids or molds to facilitate the controlled dripping of latex, whereas alternative manufacturers opt to subject the harvested fruit to a solution that mitigates the occurrence of latex burn.
In the orchard, mangoes are categorized based on their class, which includes Class 1, Class 2, and Class 3. Mangoes of Class 3 are distinguished from other varieties on account of their skin imperfections. The mangoes from Class 1 and Class 2 are subjected to a sorting process within the packing shed, wherein they are categorized based on their size, shape, skin appearance, and damage. Following this classification, the mangoes are then packed into cartons of varying weights.
How is the harvest/processing of Thai mangoes?
Fresh Mango
Mangoes have the best flavor when they ripen on the tree rather than when they are prematurely picked.
Processed Mango
How Is the Supply Chain Structured for Thai Mango?
Producer/Farm -> Packing house -> Storage/Logistics Company-> Exporters -> Consumer
Thai mango producers send mangoes to packing houses, where mangoes are stored or sent to logistic companies that store mangoes in warehouses before export. Packing houses can export directly or export through logistic companies. In the case of Nam Dok Mai mango, the volume usually comes directly from farms around Bangkok such as Pathumthani, Suphanburi, Uthaitani, and Southern like Prachuabkirikhun. However, In some cases, packing houses can procure cheaper mangoes because they own mango farms, but they usually purchase mangoes from suppliers.
The packing house significantly influences the supply chain because not many suppliers can export mangoes. Furthermore, packing houses have more impact because sorting occurs in the packing house (sorting is a procedure when exporting mangoes).
How Is the Price Trend for Thai Mango?
Mango prices are affected by several factors, including fertilizer cost, logistics and labor cost, and global demand and supply. Mango prices in June 2023 were $1,656 per ton (FOB, Thailand), down -11.5% from the previous month. However, the export price exhibited a relatively flat trend pattern for the time period under consideration. The rate of growth was fastest in March 2023, with an m-o-m increase of 48%. The export price peaked in May 2023 at $1,870 per ton before falling the following month.
The average pricing for the key external markets differed significantly. China had the highest price ($2,105 per ton) in June 2023, while the average price for exports to Singapore ($447 per ton) was among the lowest.
Prices for supplies to China increased at the fastest rate (+1.4%) between June 2022 and June 2023, while prices for the other major destinations increased at a slower rate.
Which countries are main competitors?
The main competitors of Thai mangoes are the major mango exporters in Asia, such as Vietnam, India, and Philippines. In terms of the Chinese market, the top destination for Thailand mango, Hong Kong, Indonesia, and Taiwan are the main suppliers of Mangoes following Thailand. Currently, Thailand is planning to export more pomelos and mangoes to countries with FTA already signed with Thailand: China, Japan, Hong Kong, Singapore, Malaysia, and Vietnam. On the other hand, Vietnam, the main competitor of Thai mango, has been trying to expand its destination countries after EVFTA entered into force in August 2020.
Image 1. Top exporting countries of Mango
Where are major producing regions?
Mangoes can be farmed across Thailand. However, because to temperature changes in the southern and northern regions, the Harvest Calendar may differ throughout locations.
The number represents the harvesting group, which begins in March and continues until July. The peak harvest season in Groups 1 and 2 is between March and April, whereas the peak season in Group 3 lasts until mid-July.
What Are the Key Varieties of Thai Mango?
Mango varieties in Thailand are different based on size, shape, color, flavor, and thickness of flesh. Five main varieties are used the most for domestic consumption and export purposes: Nam Dok Mai, Khieo Sawoei Sampran, Ok Rhong Damnoen, Raed Paet, and Tong Dam. Above all, Nam Dok Mai is the most popular variety in the wholesale market due to its rich flavor and larger production volume.
NAM DOK MAI MANGO
The name Nam Dok Mai means the sweet juice of a flower. Nam Dok Mai mango is one of the most popular mangoes in Thailand due to its very sweet, refreshing flavor. It has an oval shape, attractive yellow color, thin skin, small seed, and floral aroma. The unripe has green peel with firm and thick white flesh, very sour in flavor, while the fully ripe is yellow or golden. Each mango weights 250-500 grams. Nam Dok Mai can eat as fresh and add to fruit salads, warm dishes, desserts, and smoothies. The famous Thai dessert known worldwide is sticky rice with mango.
The outstanding quality of Nam Dok Mai mangoes is in increasing demand worldwide, particularly South Korea, Japan, Vietnam, China and Malaysia.
Image 1. Nam Dok Mai Mango
Maha Chanok Mango – Pink Mango, Rainbow Mango
The pink mango was named after Thai King Bhumipol’s book, Mahajanaka, which is a symbol of sustainability, awareness, and the spirit of the country. The mangoes are known for their very sweet flavor, juicy flesh, lack of fibrous pulp, have a tropical fragrance, and they can only be found in season once a year.
The pink mangoes originated in Thailand and were first introduced to the commercial market in 1990 by Thai farmer Uncle Dej Tiew Tong. The “rainbow” mango is a hybrid variety created from the Nang Klang Wan and sunset mango cultivars. It was named after King Rama IX’s book, “Mahajanaka”, which teaches sustainability, awareness, and spirit of the country.
Maha Chanok mangoes are long with a slight curve at one end of the fruit, averaging 16-18 centimeters in length. The skin is smooth, thin, and multi-colored, with patches of green, yellow, and red blushing when ripe. The flesh is buttery and golden yellow with one central, long, thin, flat seed.
The Mahachanok mango is rich in nutritional value. They are rich in vitamin C, B1, B2,beta carotene, carbohydrates, protein, calcium, and phosphorus
This mango can be found in local markets in Thailand, Singapore, Southeast Asia, India, Japan, Europe, and Australia.
What is the Thai Mango Seasonality?
Nam Dok Mai harvest calendar is categorized into three groups based on the major producing regions.
Who Are the Main Importers of Thai Mango?
Presently, Thailand is the seventh country in the world and the second largest exporter of fresh mangoes in ASEAN. As of April 2023, Thailand has exported of an estimated 19.3 million kilograms of fresh and preserved mangoes.
According to a trade report published by the Thai Ministry of Commerce, Malaysia is the leading importer of Thai mangoes with a market share of 42.79% and a value of $32.81 million from January to August 2023. Korea is the second largest importer of Thai mangoes, accounting for 36.66% of the market with a total value of $28.11M. Vietnam imports the Thai mangoes with a market share of 5.98% and a total import value of $4.59M.
Japan, China, Singapore, Hong Kong, and the United Arab Emirates (UAE) are additional countries that engage in the importation of Thai mangoes. These countries hold respective market shares of 5.98%, 3.66%, 2.23%, 1.79%, 1.73%, and 0.97%.
How Are Contracts Structured for Thai Mango?
For fresh mangoes, sale contracts between suppliers and customers are relatively simple. The contract is frequently based on a production quantity timeframe, variety breakdown, size, and other product specifications. The mangoes can be purchased in advance (prepaid) or partially paid for upon loading, settled the balance due after delivery.
Sale contracts for processed mango products are frequently based on prepaid sales but are related to market rates. Processed mangoes are more susceptible to price swings, resulting in lengthy talks. However, this may be amended depending on the availability and competition of other products, particularly purees and juices.
What Is the Exporting Process for Thai Mango?
Exporting Process:
Mango mass ranges from 250g (small) to 500g (big). The size preference of mango depends on the buyer country. For example, in South Korea, consumers favor smaller mangoes ranging from 200g to 300g. On the other hand, size preference in Hong Kong and Taiwan is larger, and mangoes range from 400g to 500g. Key export destinations require mango steaming to prevent fruit flies. Green stage mangoes (unripe mangoes) are steamed to avoid mangoes from being over-ripe (steaming speeds the ripening process).
In 2021, due to severe port congestion, mangoes were transported by air more commonly.
*Required Documents: Bill of Lading (BL), Certificate of Origin (CO), Commercial Invoice, Packing List, Health Certificate (EU Countries)
What is the difference in Export process to penetrate Japanese and Korean Market?
To export to the Korean market, mangoes are exportable only if the producers are registered officially to the Thai Department of Agriculture. Also, only Nang Klarngwan, Nam Dokmai, Rad, and Mahachanok can enter the Korean market. Before being loaded, there should be a heat treatment process to avoid fruit fly issues for 20 minutes under 47 degrees, and Inspectors from the Korean government should audit farms and processing facilities.
Japan has asked for "Chemical Checking" for every shipment. South Korea has controlled since GAP registration audit; cultivating area, process, production, and chemical utilization in cooperation with the Thai Department of Agriculture. It means that if crops are from registered farms, they can export to South Korea. On the other hand, the chemical testing process takes a lead time of about 3 days. Exporters are willing to export to South Korea rather than Japan with this factor.
What are quality related issues?
Most common quality-related issues are black spots and rotting.
Grading: Grade A and Grade B mangoes have little to no difference in taste, but a difference in physical appearance.
How Are Mangoes Classified?
Mangoes are classified by the general appearance, quality, and condition:
Extra Class
Mangoes have superior quality and must be characteristic of the variety.
Class I
Except for very slight superficial defects, these defects do not affect the general appearance of the produce, the keeping quality, and presentation in the package.
Class II
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