i

WORKING PAPER

DEPARTMENT OF AGRICULTURE AND

JAPAN INTERNATIONAL COOPERATION AGENCY

Formulation Team on the Drafting of the

Strategic Agribusiness Development Plan

COMMODITY SITUATION REPORT: MANGOSTEEN

Prepared by

JOSE ULYSSES J. LUSTRIA, ACQUILYN E. MORILLO, AND

ALDRIN G. NACIONAL

November 2009

____________________

Mr. Lustria is OIC-Chief, Public Investment Program Division (PIPD), Planning Service,

Department of Agriculture. Ms. Morillo and Mr. Nacional are Technical Assistants at the

PIPD.

ii

TABLE OF CONTENTS

I. OVERVIEW ................................................................................................................ 1

A. Background ............................................................................................................... 1

B. Contribution to the Economy ..................................................................................... 1

II. SITUATIONAL ANALYSIS ...................................................................................... 1

A. Production ................................................................................................................. 1

1. World Production ................................................................................................ 1

2. Domestic Production ........................................................................................... 2

B. Supply and Demand................................................................................................... 5

1. Supply ................................................................................................................. 5

2. Demand ............................................................................................................... 6

a) World demand (exports)................................................................................... 6

b) Domestic demand. ........................................................................................... 7

C. Value Chain System .................................................................................................. 7

1. Input Supply Subsystem ....................................................................................... 7

2. Production Subsystem.......................................................................................... 8

3. Marketing Subsystem ........................................................................................... 9

4. Processing Subsystem .......................................................................................... 9

5. Support Subsystem ............................................................................................. 10

D. Prices....................................................................................................................... 10

1. World Prices ..................................................................................................... 10

2. Domestic Prices................................................................................................. 10

3. Price Formation ................................................................................................ 11

E. SWOT Analysis ....................................................................................................... 11

F. Problem Tree Analysis ............................................................................................ 12

III. SUMMARY, ISSUES, AND RECOMMENDATIONS ........................................ 13

IV. REFERENCES ...................................................................................................... 17

IV. ANNEXES.............................................................................................................. 18

iii

LIST OF FIGURES

Figure 1 . Percentage share of top producing provinces in mangosteen

production (in MT), 1998 – 2008……………………………..………

3

Figure 2 . Annual percentage share of top producing provinces in mangosteen production (in MT), 2008. …………………….……………………...

3

Figure 3 . Volume of mangosteen production (in MT) and area harvested (in Hectares), 1998-2008. ……………………………………………

4

Figure 4 . Mangosteen Yield (in MT/Ha), 1998-2008. ……………………….… 4

Figure 5 . Value of mangosteen production (in Million Pesos), 1998-2008. …… 5

Figure 6 . Mangosteen exports…………. …………………………………….… 7

Figure 7 . Farm gate price of mangosteen, 2000-2008….……………...……….. 11

Figure 8 . Problem tree analysis of mangosteen industry..……………………… 12

iv

LIST OF TABLES

Table 1 . Mangosteen production seasonality in the Philippines, Thailand and Malaysia……………………………………………………………….

2

Table 2 . Supply and utilization account of mangosteen (in MT), 1998-2008……………………………………………………………..

6

Table 3 . Issues and recommendations in the mangosteen industry. ….………. 13

v

LIST OF ANNEXES

Annex 1 . Gross value output of selected fruits (At constant prices), 1998-2008.…………………… ………………………………………

18

1

I. OVERVIEW

A. Background

Mangosteen (Garcinia mangostana), of the family Guttiferae is a fruit tree of the

humid tropics native to the Malay Archipelago. It is referred to as the “Queen of Fruits”

because of its unique flavor and attractive color. Mangosteen is an important seasonal fruit

throughout Southeast Asia. The major producing countries are Thailand, Malaysia,

Philippines and Indonesia. Mangosteen is a very slow growing and shallow-rooted tree,

however, it can be productive for over 50 years (International Centre for Underutilized

Crops-ICUC, 2003).

It is an evergreen tree with a dense pyramidal crown that grows up to 8-10 m tall. The

fruit is round and approximately 3.5 - 7 cm in diameter and weighs about 75 -150 gms. It has

a smooth, thick and firm rind 6-8 mm thick, pale green when immature and dark purple or

red-purple when fully ripe. Inside the fruit there are 4-8 white segments that are sweet, juicy

and faintly aromatic when eaten (ICUC, 2003). It is mainly consumed fresh, and is regarded

by many as one of the best flavored fruits in the world. Fruits can be stored successfully for

short periods of time. It can also be canned, frozen, or processed into juice, jam, preserve,

syrup, and candy (Osman & Milan, 2006). The rind can be used in the treatment of diarrhea,

dysentery, and for skin diseases. A tea, made from the leaves and bark, can be used to lower

fever and for urinary disorder. The cortex of the fruit contains tannin used as commercial dye.

The tree can also be a beautiful ornamental because of its glossy green leaves and

symmetrical shape (Pascua & Loquias, 2006).

B. Contribution to the Economy

The contribution of mangosteen has been relatively small but has high potential for

both domestic and export markets. For the period 1998 to 2008, mangosteen recorded an

average contribution of 0.01 percent to total value of agricultural crop production and an

average contribution of 0.01 percent to total value of agricultural sector output, decreasing

from PhP 17 million to PhP 3 million, (see Annex 1).

In general, fruits contribute significantly to the economy in terms of employment,

income and foreign exchange generated through the various production, processing and

marketing activities in the fruit industry.

II. SITUATIONAL ANALYSIS

A. Production

1. World Production

a) Major producing countries. The major mangosteen-producing countries are

found in Southeast Asia, namely Thailand, Malaysia, Philippines and Indonesia. Only very

few of the fruits are produced from commercial cultivation, since most fruits in these markets

are obtained from backyard plantings or from mixed fruit orchards. At present, figures on

non-domestic production in the three countries are not readily available (Osman & Milan,

2006).

b) Productivity and competitiveness. The main producers of mangosteen are

Thailand and Malaysia. Small-scale commercial producers, mostly for domestic markets, are

the Philippines and other Asian countries. It has been reported that the Philippines may be

2

considered severely underplanted with mangosteen. However, if the Philippines can increase

the production of good quality fruits rapidly, it can compete with other exporting countries.

Further, as an advantage, the Philippines is geographically the closest potential

supplier of mangosteen to China, Taiwan, Japan and Korea. The country can also take

advantage of increasing demand in European and American markets. The Philippines can tap

the market originally supplied by other mangosteen-producing countries according to

seasonal harvest, as shown in Table 1 (Market Development for Philippine Fruits,

Agribusiness Systems Assistance Program, 1993).

Availability of mangosteen is affected by the seasonality of production, typically only

three to four months, although smaller harvests are also reported during other months of the

year. Thai production is highest from May to August, while Malaysian harvest season falls

from June to August. Production in the Philippines is mainly August to November indicating

a window of opportunity for exporting.

Table 1. Mangosteen production seasonality in the Philippines, Thailand and Malaysia.

May June July August Sept Oct Nov

Thailand

Malaysia

Philippines

(Source: Market Development for Philippine Fruits, Agribusiness Systems Assistance

Program, 1993).

2. Domestic Production

a) Major producing provinces by volume of production. Mangosteen is

mainly cultivated in Mindanao, particularly in Sulu and several provinces in Mindanao,

namely Compostela Valley, Zamboanga del Norte, North Cotabato, and Davao City as shown

in Figure 1. For the period 1998-2008, the average percentage share of Sulu in production

accounted to 79.46 percent. Sulu and other Mindanao provinces had been consistent top

producers of mangosteen.

3

Figure 1. Percentage share of top producing provinces in mangosteen production

(in MT), 1998-2008.

(Source: BAS, 2009)

However, in 2008 there was a tremendous decline in the volume of production in the

Philippines. Far from the ten-year production trend, Mindanao provinces failed to produce

mangosteen at a considerable level. In effect, the production was relatively small, which

accounted to only 19 percent of the 4,499 MT average annual production. In 2008, Negros

Occidental was the top producing province with a share of 28.65 percent. Production in the

Davao region from the three top producing provinces; Davao City, Davao del Norte, and

Compostela Valley accounted to 65 percent of national production, as shown in Figure 2.

Figure 2. Percentage share of top producing provinces in mangosteen production

(in MT), 2008.

(Source: BAS, 2009)

4

b) Volume, area planted, and productivity. Mangosteen production volume

exhibited a fluctuating trend with an average rate of - 9.09 percent from 1998 to 2008, despite

consistent area expansion, as shown in Figure 3. There was a tremendous drop in production

in 2008, translating to an 81.51 percent decrease from 2007 production. Production in

Mindanao declined heavily due to several reasons; heavy rain which enhanced fungal

diseases, cyclical variation resulting in fewer trees bearing fruits, change in fruiting pattern,

and off-season fruiting. Further, production in CALABARZON and MIMAROPA was

affected by too much rain and typhoon Frank. In 1998 to 2008, productivity level has been

very low. The average growth rate accounted to -14.11 percent, decreasing from 4.36 MT/Ha

in 1998 to 0.39 MT/Ha in 2008 as shown in Figure 4.

Figure 3. Volume of mangosteen production (in MT) and area harvested

(in Hectares), 1998-2008. (Source: BAS, 2009)

Figure 4. Mangosteen Yield (in MT/Ha), 1998-2008.

(Source: BAS, 2009)

5

c) Value of Production. Similar to the production trend, the contribution of

mangosteen to the economy in terms of value of production is fluctuating, as shown in Figure

5. The annual average production value accounted to PhP 14.62 million from 1998 to 2008.

In 2008, the value of production declined by 81.41 percent, amounting to PhP 2.83 million,

brought by significant decrease in production.

Figure 5. Value of mangosteen production (in Million Pesos), 1998-2008.

(Source: BAS, 2009)

B. Supply and Demand

1. Supply

The country’s mangosteen production is primarily for domestic consumption. Exports

of fresh mangosteen from 1998-2008 only accounted to 0.02 percent of total production, as

shown in Table 2. On average, net food disposable accounts to 93.98 percent of the gross

supply. However, per capita consumption is decreasing at an average of 10.69 percent.

Reports on processed mangosteen are unavailable. To provide such information, further

primary data gathering is necessary.

6

Table 2. Supply and utilization account of mangosteen (in MT) , 1998-2008.

S u p p l y U t i l i z a t i o n

Net Food Disposable YEAR

PRODN

Imports

Gross Supply

Exports

Seeds

Feeds & Waste

Processing Total

Per Capita

Kg./Yr. Grams/

Day

1998 5,237

5,237 6

314 4,917 0.07 0.19 1999 4,891

4,891

293 4,598 0.06 0.16

2000 4,610

4,610

277 4,333 0.06 0.16 2001 4,780

4,780

287 4,493 0.06 0.16

2002 5,018

5,018 1

301 4,716 0.06 0.16 2003 4,901

4,901

294 4,607 0.06 0.16

2004 4,863

4,863

292 4,571 0.06 0.16 2005 5,152

5,152

309 4,843 0.06 0.16

2006 4,494

4,494

270 4,224 0.05 0.14 2007 4,683

4,683 2

281 4,400 0.05 0.14

2008P 866 866 1 52 813 0.01 0.03

P - Preliminary data (Source: BAS, 2009)

2. Demand

a) World demand (exports). From 1998 to 2008, exports are minimal. The

country exported only in four years, variably to countries; Hongkong, Japan (excluding

Okinawa), Canada and France. Moreover, the country did not import mangosteen in that

period (Figure 6). There has been no significant exports recorded although the fruit has great

potential, both for domestic and export markets.

Geographically, the Philippines is the closest potential supplier to East Asia, posing a

window of opportunity. However, a constraint to export is the high shipping costs. Whole

frozen fruits or frozen pulp has the potential to penetrate the European and American

markets. Technology on freezing eliminates the need for costly air shipment and quarantine

against fruit fly, in the US and Japan. In addition, fresh markets could be targeted in Saudi

Arabia and the Gulf States, with the availability of air cargo space (ICUC, 2003).

7

Figure 6. Mangosteen exports, 1998-2008.

(Source: BAS, 2009)

b) Domestic demand. Mangosteen produce are mostly for domestic

consumption. From 1998 to 2008, the average annual per capita consumption was 50 gms,

ranging from 10 - 60 gms. Demand often exceeds supply. As with most tropical fruits, the

main markets of mangosteen are close to the areas of production.

C. Value Chain System

1. Input Supply Subsystem

a) Seeds and seedlings. Mangosteen produces apomictic seeds and it has been

suggested that all mangosteen trees belong to a widespread single clone. As a result large

germplasm collections have not been set up other than to maintain stock. There are only

limited germplasm collections held by different institutions (Osman & Milan, 2006). Planting

materials is the major cost driver to establish mangosteen orchard, accounting to 62 percent

of production cost (SCUC, 2006).

b) Fertilizer and pesticide. Mangosteen bears fruits in a biennial cycle and even

with minimal or no input, a mangosteen tree can produce 500 to 800 fruits during an “in

year” and 100 fruits during an “offyear”. However, when provided with a high amount of

fertilizer and adequate pruning and irrigation, a tree can bear fruit twice a year and annual

yield can be as much as 2,000-3,000 fruits per tree (ICUC, 2003). Fertilizer use for

establishing mangosteen orchard is minimal which accounts to two percent of establishment

cost. However, fertilizer application is necessary in succeeding years (SCUC, 2006).

c) Agricultural machinery. In mangosteen farms, agricultural machinery and

equipment used are simple such as plow and harrow for land preparation. For harvesting, a

long pole with a hook and a basket is used.

8

d) Labor. In establishment of mangosteen orchard, cost of labor employed

shared seven percent (SCUC, 2006). Labor costs in other stages have not been estimated.

2. Production Subsystem

The major mangosteen-producing countries are found in Southeast Asia, namely

Thailand, Malaysia, the Philippines and Indonesia. Only very few of the fruits are produced

from commercial cultivation, since most fruits in these markets are obtained from backyard

plantings or from mixed fruit orchards (Osman & Milan, 2006). Mangosteen, in Sulu

Archipelago, is usually planted with intercrops or peanut and other leguminous field crops, or

with companion plants like abaca and banana, or marang and lansones trees. Other crops that

may be intercropped also are “dapdap” or durian trees which can serve as partial shades

(DOST, 2008).

ICUC (2003), provides the production description of mangosteen as follows:

a) The tree can be grown from seed or by vegetative propagation; however it is most

commonly propagated from seeds. Seeds weighing 1 gm or heavier are selected from fully

ripe fruits immediately after opening as the percentage germination is directly related to the

weight of the seed. After extraction, the seeds are cleaned, air-dried for a few hours and sown

immediately. Once removed from the fruit, the seeds lose viability after 5 days. Conventional

vegetative propagation of the mangosteen is difficult and is used very little, except in

propagating the seedless mangosteen type where grafting is used.

b) The seeds are sown about 1 cm deep and 4-5 cm apart in a moist seedbed with 50-

60% shade. Germination usually occurs 30-40 days after sowing. After about 60 days, the

seedlings have two mature leaves and can be transplanted into individual polyethylene bags

(7″ x 11″ or 8″ x 12″) and provided with 50 percent shade. To promote rapid growth and thus

shorten the juvenile stage of the seedlings while in the nursery, the seedlings are

retransplanted into bigger polyethylene bags (12″ x 16″ or 16″ x 16″) and allowed to grow up

to 5-7 ft tall or for a further 24-36 months. Prior to field planting, the seedlings may be

gradually exposed to direct sunlight.

c) When establishing in the field, better results are achieved when seedlings are grown

underneath shade trees for the first 2-4 years and planted 7 x 7 m or 8 x 8 m apart. With care,

trees begin to flower 3-4 years after field establishment and fruits are harvested 110-113 days

after flower set.

d) With small trees, only ripe fruits are handpicked during harvest to avoid damage to

the rind while with tall trees, a long pole with a hook and a basket is used to prevent fruits

from falling to the ground. Harvested fruits are carefully placed in small baskets or wooden

boxes of 20-25 kg capacity and either sold immediately or refrigerated. Harvesting in early

morning or late afternoon, when the weather is cool, is recommended. The aim is to dispatch

the fruits to market in the best possible condition.

e) Fruits should be handled carefully during harvest. It is essential to avoid dropping

harvested fruits or causing mechanical injury which bruises the skin of the fruits. A 20 cm

drop can cause significant damage to the pulp, deteriorating and changing color from white to

brown. Such fruits often exude latex through the fractured skin. A common symptom of such

damage is a hardened rind and hard, translucent pulp. The fruit quality is compromised, and

such fruits will not command a good price.

9

3. Marketing Subsystem

Osman and Milan (2006) described the marketing component of mangosteen, wherein

the seasonal production of mangosteen is marketed for a period of 6 to 10 weeks. The short

and abrupt supply often leads to; a) wide price fluctuations with higher prices at the start and

end of the season, b) lower prices at midseason due to greater quantities that are available at

this time, and/or c) drop in the quality of the fruits. Underproduction has been considered a

constraint in marketing, viewed as a result of the seasonal nature of the crop and due to small-

scale production.

Mangosteen is mainly grown by smallholders which results to irregularity in supply. Consequently there is a lack of standardization of product quality and grades, which makes exporting the fruits difficult. Hence, mangosteen is mainly sold in small quantities at fruit stalls and by the roadsides (Osman & Milan, 2006). Mangosteen is constrained by availability of good quality fruit throughout the year.

For instance, Europe holds promise for mangosteen but for it to be successful the fruit should

be exported in large volumes so that its prices could compete effectively with other tropical

fruits.

4. Processing Subsystem

Food processing is one activity that strengthens the linkage between agriculture and

industry. It enhances both upstream and downstream activities in the production-marketing

chain. With agro-processed products, the value-added contribution of agricultural fresh

produce is increased. At the same time, downstream activities are enhanced to more efficient

utilization of agricultural inputs and machineries (Elazegui, 1998).

Mangosteen is valued for several reasons and uses. Besides fresh consumption,

mangosteen flesh can be commercially processed into various products such as jams, candies,

bars and pastilles, frozen mangosteen, and mangosteen in heavy syrup. Processing operations

includes canning, crystallization and freezing (SCUC, 2006). In food preparation,

mangosteen can be used to substitute tamarind with its acidic pulp and its extracted oil for

Goa butter. Many parts of the tree are used for medicinal purposes. For example, the leaves,

bark, and rind are used as herbal remedies for thrush, chronic intestinal catarrh, dysentery,

diarrhea, cystitis, gonorrhea, eczema, and other skin disorders. Extracts from the leaves are

also used to clean and treat wounds and as an astringent, and decoctions from the roots can be

taken to regulate menstruation. The fruit rind contains 7-14 percent catechin tannin and is

used for tanning leather. It also produces a natural black dye. The wood is heavy and

moderately durable. Old and unproductive trees are harvested for their wood and used to

manufacture spear handles, rice pounders, houses, and cabinets. Mangosteen twigs are also

used as chew sticks (ICUC, 2003).

In 2005, as cited in Select- Philippines, DTI reported mangosteen products from

Kidapawan City have penetrated the United States market consisting of mangosteen fruit jam,

tea and powder in capsule. Mangosteen fruit products are partially processed in Kidapawan

City and transported to Metro Manila for toll-processing and packaging prior to its shipment

to the United States. Apparently, processed products are not available in the local market.

Production is exclusively for the export market.

10

5. Support Subsystem

Support for the fruit industry comes from, government, nongovernment and private

institutions. The DA, through its GMA-HVCC banner program, provides a comprehensive

package which includes:

a) Production Support Services;

b) Market Development Services;

c) Credit Facilitation Services;

d) Irrigation Development Services;

e) Other Infrastructure/ Post-Harvest Development Services;

f) Extension Support, Education and Training Services;

g) Research and Development;

h) Regulatory Services;

i) Information Support Services and

j) Policy Formulation, Planning and Advocacy Services.

Various donor countries or agencies have also provided support – both technical and

financial assistance.

D. Prices

1. World Prices

World market price cannot be analyzed due to unavailability of data on world market

prices.

2. Domestic Prices

The farm gate price of mangosteen in 2008 was PhP 21.98 / kg, a 79.28 percent

increase from the 2007 price, almost reaching the annual average price of PhP 23.53/ kg from

2000 to 2008. The price increase was brought about by the decline in production.

In 2004, an increase in price may be attributed to a significant increase in export

demand brought about by the increasing popularity of mangosteen in the world market, as

opposed to the country’s static level of supply. The drop in prices by 2006 to 2007 can

possibly be attributed to the decrease in demand for Asian fruits, brought about by the risks

associated with fruit flies that could infect citrus crops, by the United States (Temple-West,

2008).

11

Figure 7. Farm gate price of mangosteen, 2000-2008.

(Source: BAS, 2009)

3. Price Formation

Small farmers retailing at the supply level normally based their selling price on the

perceived prevailing market price. The prevailing market price may have been learned

through word of mouth. Normally price, varies from place to place and from time to time.

They are dependent upon the environment and other economic factors.

E. SWOT Analysis

The SWOT of the mangosteen industry is as follows (Market Development for

Philippine Fruits, Agribusiness Systems Assistance Program , 1993; Pascua & Loquias, 2006;

GMA-HVCC).

Strengths

• Availability of suitable area for mangosteen production.

• Plant parts have various uses; for consumption, for medicine and commercial dye.

Weaknesses

• Under plantation of mangosteen,

• Lack of sufficiently concentrated mangosteen plantation,

• Lack of immediate access to postharvest facility,

• Lack of researched and developed intercropping schemes, and

• Inaccessible credit facilities

Opportunities

• Proximity to export markets (China, Japan, Taiwan and S. Korea)

• The Philippines can supply export demand at certain period of the year when

supply in Thailand and Malaysia becomes scarce or limited, and

12

• Whole frozen fruits, or frozen pulp has high potential in the European and

American markets since freezing eliminates the need for costly air shipment and

obviates fruit fly quarantine.

Threats

• Presence of diseases due to anthracnose and bacterial leaf sheath.

(Note: However, further validation of this SWOT is necessary.)

F. Problem Tree Analysis

The problem tree (Figure 8) shows us graphically the linkages among the various

problems in the mangosteen industry. The SWOT analysis was used as a main input in its

formulation.

Figure 8. Problem tree analysis of mangosteen industry.

13

III. SUMMARY, ISSUES, AND RECOMMENDATIONS

Mangosteen is an important seasonal fruit throughout Southeast Asia because of its

unique flavor, attractive color and several uses. The fruit can be consumed fresh or

processed, many parts of the tree are used for medicinal purposes, the fruit rind can be used

for tanning and the wood is durable for furniture-making. The contribution of mangosteen

has been relatively small but has high potential for both domestic and export markets

The main producers of mangosteen are Thailand and Malaysia. Small-scale

commercial producers, mostly for domestic markets, are the Philippines and other Asian

countries. Mangosteen is mainly cultivated in Mindanao, particularly in Sulu and several

provinces in Mindanao. The country’s mangosteen production is primarily for domestic

consumption.

Underproduction has been considered a constraint in marketing, viewed as a result of

the seasonal nature of the crop and due to small-scale production. It has been reported that

the Philippines may be considered severely underplanted with mangosteen. However, if the

Philippines can increase the production of good quality fruits rapidly, it can compete with

other exporting countries.

Table 3 illustrates the issues and gaps in the mangosteen industry. Accordingly,

recommendations were also provided.

Table 3. Issues and recommendations in the mangosteen industry.

Supply chain Issue/Gap Recommendation

I.

Input Supply Subsystem

Seeds and Seedlings, etc. Insufficient planting materials with high quality

Development of new varieties, varietal improvement through biotechnology, accreditation of nurseries, and intensification of R & D through SUCs and other agro-based research and development institutions

Fertilizer and Pesticide Increasing costs Improvement of logistics; utilization of organic fertilizers

Agricultural Machinery/equipment

Need for standards in farm equipment

Establishment of agricultural machinery and equipment standards

Labor Increasing cost of labor

Maximum utilization of family labor

II. Production Subsystem Inconsistent supply; fragmented production

Expansion of production areas; integration of supply; policy/legislative work on issues such as public land access

14

Prevalence/existence of pests and diseases

Strict quarantine regulation to prevent spread of pest and diseases and intensified information campaign about the threat of disease R, D and extension program aimed at developing an effective and efficient Integrated Pest Management (IPM) Strategies

III. Marketing Subsystem Inefficient marketing system

Improvement of logistics (to address high postharvest losses); establishment of trans-shipment facilities; revisit of the Food Terminal approach; improvement of market intelligence and information systems, particularly on price monitoring, supply and demand forecasting and analysis of the different fruits

IV. Processing Subsystem Inadequate postharvest and processing facilities; need for standards in equipment Low awareness on proper postharvest handling Lack of awareness of importing countries standards Limited access to product testing and quality/safety system certification services

Increase and improvement in processing and postharvest facilities (e.g., processing and packaging plants, peeling and cutting machines); utilization of biotechnology Establishment of postharvest clinic to address postharvest related concerns in the area Conduct capability building Compilation/updating of importing countries standards and dissemination of these information to processors Supplementing of Food Development Center testing services available only in Manila; upgrading of DOST regional testing laboratories to conform with the Codex guidelines for the assessment of the competencies of food testing laboratories

V. Support Subsystem Inadequate support systems

Provision of more support facilities such as ports, farm-to-market roads, cold chain systems, irrigation facilities; also regulatory and food safety system (e.g., traceability, database/s); promotion of GAP and

15

monitoring of compliance; credit and crop insurance facilities; strengthening of the Research and Development-Extension system in the different levels of government, from national to local government level

Note: Issues and Recommendations were identified from (through) key informant interviews, secondary data,

workshops, consultations and field visits.

Furthermore, recommendations from the Market Development for Philippine Fruits,

Agribusiness Systems Assistance Program (1993) for a mangosteen export strategy in the

long-term are as follows:

Survey of existing production areas should be made so as to permit the development

of fruit supplies over the longest period of time.

Methods used successfully by leading growers to shorten the non-fruiting period need

to be documented, and applied to new plantings.

Good quality seedlings, possibly grafted need to be made widely available to farmers.

Appropriate intercropping schemes need to be researched, developed, and

disseminated to farmers.

Credit for planting mangosteen which include on farm irrigation and intercrop

financing needs to be made available.

Plantings should be sufficiently concentrated so as to permit delivery of sufficient

volumes to packing and processing facilities.

The Philippines is geographically the closest potential supplier of mangosteen to

China, Taiwan, Japan, and Korea.

The Philippine crop occurs at a time when both Malaysian and Thai production is

low. Future production can be positioned in export markets as a follow-on to the Thai

crop, and Malaysian crops. Hong Kong and Taiwan are the nearest markets.

The development of techniques for shipping mangosteen in cartoons, under

refrigeration, to both domestic and export markets should be perfected in preparation

for the expansion of production volumes. Modified atmosphere should be investigated

for distant export shipping, since preliminary indications are that up to several weeks

shelf life can be obtained.

• Whole frozen fruits, or frozen pulp would appear to offer good potential for

penetrating European and American markets since freezing eliminates the need for

costly air shipment and obviates fruit fly quarantine in the US and Japan wide

availability of air cargo space to Saudi Arabia and the Persian Gulf States would

indicate that these fresh markets should be targeted for introduction of the product via

air shipment.

16

Moreover, reviews on the existing programs formulated by the government to solve

the concerns of the industry - from access to agricultural resources and services to market

information- is imperative in strengthening its competence in dealing with the prevailing

issues of the fruit industry. One good example is the Food Terminal Concept which is

developed by DA. This concept is especially designed to develop market infrastructure of the

industry by establishing chain of marketing facilities from farm to consumers and developing

distribution centers (food terminal hubs) which are designated regional or provincial agro-

industrial centers for proximity to value-adding and processing activities. Active involvement

of LGUs, NGOs, private sector, GOs, and joint-venture between any of the parties above is

highly encouraged to operate the hubs so that trading system will be more efficient and

transparent and market information will be more accessible to the agents of the market.

17

IV. REFERENCES

Bureau of Agricultural Statistics, Department of Agriculture (2009) Countrystat. Retrieved on

September 2009 from <http://www.countrystat.bas.gov.ph> Department of Science and Technology - Region 10. Mangosteen. (2008). Retrieved on

August 2009 from <http://region10.dost.gov.ph>

International Centre for Underutilized Crops. (2003). Fruits for the Future Mangosteen.

Factsheet No. 8. University of Southampton,Southampton, UK. March 200. Retrieved

on August 2009 from < http://www.civil.soton.ac.uk/icuc/factsheets.htm>

Osman M. B. and A. R. Milan. Southampton Centre for Underutilised Crops. (2006).

Mangosteen – Garcinia mangostana., University of Southampton,Southampton, UK.

Retrieved on December 2008 from <http://www.icuc-iwmi.org/files/Publications/

Mangosteen_Monograph.pdf.pdf>

Pascua O. C. and V. L. Loquias. (2006). Mangosteen Production Technology. GMA-HVCC,

Department of Agriculture. Powerpoint presentation. SCUC, (2006). Mangosteen, Garcinia mangostana: Field Manual for Extension Workers

and Farmers. ICUC, Southampton, UK. Retrieved on December 2008 from

<http://www.icuc-iwmi.org/files/Publications/ Mangosteen_Manual.pdf.pdf>

Temple-West, P. (2008). Tropical sweetness: Harnessing the elusive mangosteen. Medill

Reports, Nortwestern University. Washington Retrieved on December 2008 from <http://news.medill.northwestern.edu/washington/news.aspx?id=80519>

_______ . (1993) Market Development for Philippine Fruits, Agribusiness Systems

Assistance Program, 1993. Retrieved on December 2008 from

<http://www.philonline.com.ph/~webdev/da-amas/mangosteen.html>

18

IV. ANNEXES

Annex 1. Gross value output of selected fruits (At constant prices), 1998-2008.

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 AVERAGE

TOTAL AGRI OUTPUT 224,172 245,874 242,318 253,131 262,788 272,011 286,245 292,581 304,000 318,068 330,396 275,599

TOTAL AGRI CROP OUTPUT 110,733 129,268 120,249 124,046 126,035 129,250 136,181 137,305 143,699 151,559 157,543 133,261

VALUE OF PRODUCTION IN AGRICULTURE AT CONSTANT PRICES, 1998 - 2008, (IN MILLION PESOS)

BANANA 6,252 8,181 8,824 9,056 9,442 9,610 10,080 11,274 12,162 13,396 15,551 10,348

PINEAPPLE 2,754 2,831 2,885 2,993 3,032 3,141 3,256 3,290 3,374 3,710 4,065 3,212

MANGO 6,307 6,297 6,167 6,392 6,950 7,244 6,947 7,058 6,589 7,341 6,338 6,694

CALAMANSI 216 908 922 927 923 923 913 1,024 1,003 1,028 1,018 891

PAPAYA 144 151 163 171 171 175 179 196 211 220 245 184

POMELO 66 68 65 61 64 61 58 57 55 54 52 60

DURIAN 593 545 526 552 646 813 835 966 990 1,496 1,050 819

MANGOSTEEN 17 16 15 16 16 16 16 17 15 15 3 15

SHARE TO TOTAL AGRI OUTPUT, 1998 - 2008, (IN %)

BANANA 2.79 3.33 3.64 3.58 3.59 3.53 3.52 3.85 4.00 4.21 4.71 3.71

PINEAPPLE 1.23 1.15 1.19 1.18 1.15 1.15 1.14 1.12 1.11 1.17 1.23 1.17

MANGO 2.81 2.56 2.55 2.53 2.64 2.66 2.43 2.41 2.17 2.31 1.92 2.45

CALAMANSI 0.10 0.37 0.38 0.37 0.35 0.34 0.32 0.35 0.33 0.32 0.31 0.32

PAPAYA 0.06 0.06 0.07 0.07 0.07 0.06 0.06 0.07 0.07 0.07 0.07 0.07

POMELO 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02

DURIAN 0.26 0.22 0.22 0.22 0.25 0.30 0.29 0.33 0.33 0.47 0.32 0.29

MANGOSTEEN 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.00 0.00 0.00 0.01

SHARE TO TOTAL AGRI CROPS, 1998 - 2008, (IN %)

BANANA 5.65 6.33 7.34 7.30 7.49 7.44 7.40 8.21 8.46 8.84 9.87 7.67

PINEAPPLE 2.49 2.19 2.40 2.41 2.41 2.43 2.39 2.40 2.35 2.45 2.58 2.41

MANGO 5.70 4.87 5.13 5.15 5.51 5.61 5.10 5.14 4.59 4.84 4.02 5.06

CALAMANSI 0.20 0.70 0.77 0.75 0.73 0.71 0.67 0.75 0.70 0.68 0.65 0.66

PAPAYA 0.13 0.12 0.14 0.14 0.14 0.14 0.13 0.14 0.15 0.15 0.16 0.14

POMELO 0.06 0.05 0.05 0.05 0.05 0.05 0.04 0.04 0.04 0.04 0.03 0.05

DURIAN 0.54 0.42 0.44 0.45 0.51 0.63 0.61 0.70 0.69 0.99 0.67 0.60

MANGOSTEEN 0.02 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.00 0.01

(Source: BAS, 2009)