Low margins, restrictions force US mango exports into cold store

By AFP
Published: August 6, 2012
Email
American requirements made profit margins too narrow: Exporters  PHOTO: FILE

American requirements made profit margins too narrow: Exporters PHOTO: FILE

KARACHI: Pakistani exporters are abandoning much-publicised mango exports to the United States after just a year because American requirements made profit margins too narrow, members of the industry said Monday.

In 2011, Pakistani growers exported five tons of the country’s signature fruit to the United States and had hoped for a higher yield this year.

But if exports grind to a halt, it could prove embarrassing for efforts dubbed “mango diplomacy” in 2010 when US Secretary of State Hillary Clinton offered to help Pakistan export the fruit in a bid to ease anti-Americanism.

The US embassy was unavailable for comment, but announced in January that US support had helped select mango growers increase regional exports by more than 60 percent and revenue by more than $4 million over the past year.

Pakistani officials confirmed the assistance, but said sending mangoes to the United States was not cost effective.

“Pakistan cannot export mangoes to the United States this season because of certain restrictions, which the growers feel makes the business unprofitable,” Kashif Niazi, an official at the commerce ministry, told AFP.

An official at the Trade Development Authority of Pakistan, which regulates exports, said producers had been annoyed by compulsory US irradiation in Chicago that ate into their profits.

Although Pakistan has its own irradiation plant, it has not been approved by the United States. Transporting the mangoes to the United States has been another expense and complication, the Pakistanis added.

Asif Iqbal, a mango grower in Sargodha district of Punjab province, told AFP that unless the irradiation issue was resolved and more US markets found “it will never be profitable for us to do business with America”.

A Pakistani official speaking to AFP on condition of anonymity confirmed that US aid had helped modernise mango production and improve exports, particularly to the Gulf.

Facebook Conversations

Reader Comments (13)

  • Aug 6, 2012 - 6:37PM

    Former Ambassador Mr. Haqqani lone project didn’t produce long time results.

    Recommend

  • Kirmani
    Aug 6, 2012 - 6:45PM

    That is correct, unfortunately. Asian mangoes are difficult to get in the US – and other South Asian countries face the same issues of cost. Not surprisingly, 99% of the mangoes that are sold in the US are from Mexico or from Central and South American countries. Their treatment plants are approved by the USDA.

    Recommend

  • raza ali
    Aug 6, 2012 - 6:56PM

    Our blood sucking middle men (mango exporters) can only suck the blood off the land of pure, any civilized nation will not let them do the same to their people as they are not a bunch of low lying people as we are!

    Recommend

  • sam
    Aug 6, 2012 - 7:19PM

    Pakistan blocks Mango supply line ….. US must “apologise”

    Recommend

  • Ercelan PILER
    Aug 6, 2012 - 7:23PM

    export mango growers along with cuttings!

    Recommend

  • Awais
    Aug 6, 2012 - 8:14PM

    Mango Republic’s Revenge !Recommend

  • Complex
    Aug 6, 2012 - 8:33PM

    India is sending much sweeter mangoes in USA. And our business men can only think abt their profit margins. tabhi india har cheez mae agay hae

    Recommend

  • zain
    Aug 6, 2012 - 8:33PM

    why don’t we exports mangoes to US soldier in Afghanistan rather than sending to US. we send few trucks of mangoes along with nato trucks

    Recommend

  • gp65
    Aug 6, 2012 - 8:56PM

    “Transporting the mangoes to the United States has been another expense and complication, the Pakistanis added.”

    Huh? You want to export mangoes to US but consider transportation as a complication?

    “A Pakistani official speaking to AFP on condition of anonymity confirmed that US aid had helped modernise mango production and improve exports, particularly to the Gulf.”

    Are people scared to even acknowledge US help and have to do it anonymously?

    Recommend

  • ayesha_khan
    Aug 6, 2012 - 9:07PM

    “An official at the Trade Development Authority of Pakistan, which regulates exports, said producers had been annoyed by compulsory US irradiation in Chicago that ate into their profits.
    Although Pakistan has its own irradiation plant, it has not been approved by the United States”

    Seems like the solution is for the trade authority of Pakistan to work on getting the Pakistani irradiation center approved. Incidentally, Indian irradiation center in Nasik has been approved by USA and Indian mango exports to US are growing. http://articles.economictimes.indiatimes.com/2012-06-07/news/321011031kesar-mangoes-irradiation

    @Atif Yousufzai

    Unclear how Hussain Haqqani is being blamed? It is not as though USA has changed its decision to allow Pakistani exports. Pakistani ambassador cannot control commercial viability of exports. Pakistan’s own people seem to be admitting that US AID projects has helped Pakistan increase mango exports to the gulf.

    Recommend

  • Zia Syed
    Aug 6, 2012 - 11:53PM

    I say CJ is behind this! He is not letting PM doing there job and hence we cannot export Mangos to USA any more. Jiya Bhutto! LOLs

    Recommend

  • junaid
    Aug 7, 2012 - 12:53AM

    Forget about USA even in Middle east the quality of export of mangoes is lousy , because the packing is so third class. The sizing and shelf life is not even. It is old saying in Pakistan , make money and run, no one gives any concern for building quality brand the margins always come later.

    Recommend

  • Toba Alu
    Aug 7, 2012 - 4:49PM

    Just declare transportation costs and irradiation ‘un-Islamic’. I expect btw a suo moto case to be launched soon. But first the vulgarity in the media.

    Recommend

More in Business