Friday, July 27, 2007 Producers bewail low buying price of mango By Ben O. Tesiorna
THOUSANDS of mango producers and their dependents are reportedly losing millions of pesos due to alleged manipulation of a big company on the price of the mangoes especially for the processed grade market.
Ednar Carlos Dayanghirang, president of the Davao Region Mango Contractors Association Inc., said about a thousand "contractors" in Davao Region are losing an estimated P24 million for the past two months due to a very low buying price of the company Profood International Corp.
It was learned that Profood's prevailing buying price of mangoes for the processed grade market is at P13-14 per kilo.
Dayanghirang said this is quite "abnormal" considering that it is an off season for mangoes now.
But Profood insisted there is still a "deluge of supply of mangoes not just in Mindanao but Luzon as well."
He said the law of supply and demand dictates that if there is low in supply, the price most often goes up unless there are other factors affecting the market.
Dayanghirang said in the previous years, the buying price of Profood for their mango was at P16-18 per kilo during the months of June upwards.
He said the price even went to as much as P24/kilo three years ago due to a very low supply from the producers.
Off season months for mango is from June upwards, Dayanghirang said, since these are the months when Luzon is usually hit with typhoons.
Luzon controls 70 percent of the mango market in the country, he said, thus there is an undersupply of mango in the market since June.
Dayanghirang said the mango producers here in the Davao Region are losing as much as P4 per kilo from the prevailing buying price considering the production cost which is about P12-15 per kilo of mango.
"So kung ang production cost is at P15/per kilo and Profood is buying it at only P12-14/kilo lugi na kayo ang mga producers. Kaya we are appealing to the good heart of the management of Profood to at least consider our plight. If this will continue sigurado maaapektuhan ang mango industry natin," Dayanghirang said.
Profoods is reportedly buying at the level of 100-150 tons per day from mango producers in the region.
Still mango season
Profood owner Justin Uy however said the alleged low buying price is due to the deluge of supply of mangoes not just in Mindanao but Luzon as well.
Uy said the harvest season in Luzon started in April and ended on the first of week of July.
"This year, the mango crop from Luzon was late and ended up late also. This year Luzon mango season only start up on middle of April and ended on last week of June or first week of July. Profood in the past have always advised the Mindanao growers to target the production sometime in August to December to have a better price," Uy said.
Monopoly?
Asked why the mango producers not just sell their products to other companies other than Profoods, Dayanghirang said there is no other company in the region where they can sell their produce but only Profood.
Profood reportedly control 80 percent of the processed grade market in the Davao region. This, he said, could be the reason why the company is the one dictating the market price and not the other way around.
"Parang ginigipit ng company yung mga producers kasi parang may monopoly na sila dito," Dayanghirang said.
Uy however denied this saying Profood do not have the monopoly of the processed grade market.
In fact, Uy said, Dole and several companies producing dried mangoes and purees in Mindanao are also buying fresh mango in the Davao Region. The same goes to all the dried mango producers in Cebu who are also buying their supplies in Mindanao.
"Profood does not monopolize the mango industry especially in Mindanao. It's a free for all," Uy said.
Little consideration
Dayanghirang said what they are asking for is just a small consideration from the company so they could have a sustainable processed grade mango market in the region and not an unsustainable one like what is prevailing now.
Uy said they are trying their best to help the mango industry here in the Davao Region adding that the Profood, in fact, have offered the best service in buying all the left over from the export and local fresh fruit market.
Uy said they expect the price of processed grade mango to shoot up in August when other regions are no longer producing mangoes.
Based on its website, Profood International Corporation claims to be the largest Philippine-based dried mango producer.
From the small company that once catered only to the local market, Profood International Corporation has grown to become the leading producer of various dried fruits, fruit preserves, purees, concentrates and juices.
Its products are available all over the Philippines and exported to many countries in Asia, Europe, Canada and the United States.
It has processing plants in Toril, Davao City, Cebu and Luzon.
