INVESTMENT OPPORTUNITY

DEPARTMENT OF TRADE AND INDUSTRY
ZAMBOANCA CITY OFFICE

 INDUSTRY PRIORITY AREAS
For ZAMBOANGA CITY CY 2002
 

PRIORITY SECTORS

    1.   PROCESSED FISH (Plus 1 Project)
    2.   SEAWEED
    3    MANGO
 

PROFILE ON THE MANGO INDUSTRY
ZAMBOANGA CITY
 

Mango is considered as the Philippine "national fruit" not only because it is the choicest fruit in the country but also because of its immense popularity in the local and international markets. For the past decade, the mango industry has been a major contributor to the country's local agricultural production as well as a consistent foreign exchange earner. Mango is the third most important fruit export of the country next to banana and pineapple. In 1998, total exports of mango (in all forms) was 58,574 Mt valued at US $51.4 million and fresh mangoes constitute 82% of the total. Mango export is the tenth agricultural export in the Philippines in the same year.

ZAMBOANGA CITY PERFORMANCE IN WESTERN MINDANAO

Western Mindanao is Mindanao's second biggest producer of mango next to Southern Mindanao. Among the province of Western Mindanao, Zamboanga City accounts for 52% of the region's mango production of 25,833 MT and 11% of the total Mindanao production of 123,759 MT. Zamboanga del Sur is the region's next biggest producer with 9,294 MT or 36% of the regional total.

Zamboanga City's average annual growth rate in production is 17% is also the highest in the region with Zamboanga del Sur a distant second at 3%.

There are over 516 mango growers spread all over the six agricultural districts of Zamboanga City. Data gathered from the Bureau of Statistics (BAS) show that in year 2000 a total of 2,040 hectares of mango plantation have been harvested with a total production of 13.28 MT of the variety known locally as "Manga Carabao" or by its fancy, modern name of Manila Super Mango which is acknowledge as one of the world's best. Most mango growing activities are centered within the east coat of the city.

PRODUCTION PROSPECTS

* Right climatic conditions and new technology allows for year - round production of mangoes in Zamboanga City
* Zamboanga City has an estimated land areas of 148,330 hectares where 44% are classified as  agricultural and 22% as grassland. These two land classifications suggest a total area of over 97,000 hectares which is suitable for either direct planting or inter-cropping.
* The two economic zones in Zamboanga City offers future fruit processing facilities which can serve as forward linkage mechanism for the mango industry.
* Out of the region IX produce in the year 2000 of 30,062,609 kgs. or 30,062.60 MT of fresh mangoes, 13,287,971kgs. or 44.20 MT comes from Zamboanga City.
 

Barangay Ayala Mango Orchard

MARKETING CHANNELS AND DISTRIBUTION SYSTEM

Mango marketing channels are multi-layered, in many cases changing hands to as many as six. Buying stations in key areas are supplied by agents. Buying agents are supplied by sub-agents. Buying agents also buy from independent, roving sprayer-contractors. The contractors, on the other hand, deal directly with the growers under a sharing scheme.

Generally, there are six (6) major participants in the marketing system of fresh carabao mangoes and these are:

           1. Growers"   
           2. Sprayers
           3. Traders including contract buyers, sprayer-trader, assembler=wholesalers, assembler-wholesalers-retailers, wholesalers, wholesalers-retailers and retailers
           4. Exporters
           5. Processors and
           6. Consumers

The most commonly practices distribution route in the Philippines and Zamboanga is the farmers-contract buyer-wholesaler-retailer consumer route.

MARKER PROSPECTS

* The country is gearing for eventual entry into the USA, Australia and Korea
* 13% estimated annual increase in demand
* Zamboanga's initial penetration of the Malaysian market will serve as a stepping stone to other East Asean Countries.
* Recently, WAE Corporation, a dried and preserves fruit exporter from Antipolo, Rizal (Luzon) signified its intention to put ups a factory at the Zamboanga Freeport. This prospective entry will boost the local fruit industry as it will source a percentage of its raw material requirements such as mango, tamarind, papaya, pineapple and durian locally.

INFRA SUPPORT PROFILE

With an agriculture-led economy, Zamboanga City is slowly establishing the required support facilities for the agriculture sector.

           * Farm to market roads are being built and improved.
           * Establishment of one Fruit and Vegetable Bagsakan Center at Sta, Cruz.
           * Presence of 2 economic zones - Ayala de Zamboanga Economic Zone and Zamboanga Economic and Freeport

POTENTIALS AND OPPORTUNITIES

1. Zamboanga City offers opportunity for consolidating volumes coming from other parts of the region.
2. Presence of organized mango growers group (sith 35 members) that can serve as marketing arm
3. One of the biggest plantation in the region is situated in Zamboanga City which is owned by DACON group of companies with 400 hectares planted to mangoes.
4. Direct link to BIMP_EAGA provide the city with alternative lucrative market to the traditional Manila and Cebu markets.

Mango Production in Western Mindanao
By Province, 1998-2000 (in Kilograms)

Mango Area Harvested in Western Mindanao
By Province, 1998-2000 (in Hectares)

Volume of Production, by Region, Philippines, 1994-1998
(In Metric Tons)

Volume of Production, by Region, Philippines, 1994-1998