Bangladesh's Mango Export: Key Challenges for Global Reach

Bangladesh is home to some of the world's most delicious mango varieties, yet it struggles to tap into the full potential of its mango export market. Out of the 2.5 million tones of production, its export in recent times has reached a tiny 3100 tones. With varieties like Himsagar, Langra, BARI-4 and Amrapali, which are cherished both locally and abroad, Bangladesh could be a global leader in mango exports. However, realising this potential requires significant investment in modernising the mango value chain.

With the increasing demand from foreign markets, the prospects for mango exports from Bangladesh are improving significantly. However, challenges remain in exporting mangoes to EU countries, particularly in complying with the safety and pest control requirements. These include adhering to various conditions such as adopting Good Agricultural Practices (GAP) through contract farming, maintaining proper record-keeping and traceability, implementing effective pest management, ensuring adherence to HACCP (Hazard Analysis and Critical Control Points) standards, and carrying out proper harvesting, packaging, and inspection. Mangoes must undergo laboratory testing and quality assurance checks at the time of shipping. The production of safe and pest-free mangoes and their successful marketing both in national and international markets can only be ensured through a robust system of contract farming.

A number of farmers in Satkhira, under the supervision of Solidaridad Network Asia, have adopted modern value chain practices and received the RegenAgri certification from Control Union UK Limited, United Kingdom. Regenerative agriculture broadly combines conservation agriculture with sustainable practices. To restore degraded lands, regenerative agriculture techniques such as crop diversification, tree planting, reduced tillage, mulching, and water conservation offer significant benefits to farmers. The globally recognised Regenerative Agriculture standard is based on four key principles those include create positive impacts on soil health, water and air quality, carbon capture, and biodiversity through agricultural practices; enabling local communities to protect and improve their environment and well-being; producing crops with sufficient yield and nutritional quality; and optimising the use of renewable resources while minimising reliance on non-renewable resources. The Bangladesh government has also a project named exportable mango production. This project could adopt the farming method and extend it across the mango hubs.

By embracing precision agriculture and sustainable farming techniques, mango farmers can produce higher yields with fewer inputs, ensuring that the quality of the fruit meets international standards. Technology, such as soil health monitoring and drip irrigation, will play a pivotal role in transforming farming from traditional to modern.

Once harvested, the mangoes must be handled carefully to avoid spoilage. A modern, integrated cold chain system is crucial for maintaining freshness from farm to market. Cold storage facilities at the farm level, followed by temperature-controlled transport to packhouses, will ensure that mangoes reach their destination in prime condition. Effective post-harvest management will minimise losses and ensure the mangoes remain market-ready throughout the supply chain.

Packaging also plays a significant role in meeting international market demands. Eco-friendly, durable packaging that protects the fruit while ensuring its aesthetic appeal is vital. Given that many buyers prioritize quality and sustainability, aligning packaging with these expectations will help create a positive brand image for Bangladeshi mangoes.

Furthermore, quality control and certification are keys to accessing high-value markets. Mango exports must meet global standards like Global GAP, USDA,  RegenAgri certifications, which guarantee that products are grown, handled, and processed safely and sustainably. This also includes controlling pesticide residues and ensuring food safety, as these are non-negotiable for many markets.

While fresh mangoes can command premium prices in air-cargo markets like the Middle East, Europe, and North America, value-added mango products such as dried mango and mango pulp can open new avenues for export. This will help increase revenue and reduce the dependency on fresh fruit exports alone, especially during off-seasons.

Infrastructure and logistics support are crucial to lowering the cost of exports. Cold storage facilities, transportation networks, and ports need upgrades to ensure the smooth flow of goods to foreign markets. Government and NGO partnerships can play a crucial role in this regard.

However, recent developments indicate a significant decline in exports, attributed primarily to surging costs in logistics, packaging, and freight. This year, severe heatwaves exacerbated the situation by reducing output, but the core challenges extend beyond climatic factors, deeply rooted in logistical inefficiencies and rising operational expenses.

The most immediate and pressing issue is the sky-high freight charges. Exporters report a substantial rise, with costs escalating to $5.0-6.0 a kg figure is alarmingly higher than the rates for competing nations like India, Thailand, and Vietnam, where similar charges are significantly lower. The elevated costs not only diminish the competitiveness of Bangladeshi mangoes but also eat into the already thin profit margins of exporters. For perishable goods like mangoes, maintaining a quick turnaround time is critical, yet limited freight space for fresh produce on flights adds to the bottleneck. Exporters are left grappling with fewer options, as airlines prioritise higher-paying cargo, further inflating the cost of exporting mangoes.

Another critical issue lies in packaging and cold chain logistics. While Bangladesh's mango varieties boast a unique flavor profile, their export viability is hampered by inadequate packaging standards that fail to meet the stringent requirements of international markets. High-quality, export-grade packaging is essential to preserve the freshness and quality of the mangoes during transit, but the associated costs have risen dramatically. This year alone, packaging expenses surged by 30-40%, driven by increased raw material costs and supply chain disruptions.

Compounding the problem is the lack of an integrated cold chain infrastructure. Effective temperature-controlled storage and transportation are paramount for maintaining the quality of mangoes, especially when exporting to distant markets like Europe. However, Bangladesh's cold chain facilities are limited and often inefficient, causing quality degradation by the time the fruit reaches its destination. Without significant investment in cold chain logistics, Bangladeshi exporters struggle to compete on quality, leading to reduced demand in international markets.

While logistical challenges have been persistent, this year's heatwaves have added another layer of complexity. The intense heat has drastically cut mango yields, with orchard owners reporting a 40% decrease compared to last season. The late flowering of trees and increased irrigation costs have only worsened the situation. Reports indicate that irrigation expenses skyrocketed fourfold, pushing up the production costs for farmers. Consequently, the local market prices soared, making it even more difficult for exporters to secure mangoes at a viable rate for international trade.

The decreased supply, combined with high input costs for fertilization and irrigation, resulted in record-high mango prices, ranging from Tk 120-180 per kg in Dhaka's retail markets. These inflated prices make it challenging for exporters to remain competitive, as potential buyers opt for more affordable options from neighboring countries.

The revitalisation of Bangladesh's mango export sector hinges on addressing several key challenges, from production practices to logistics and market access. Although the country produces a vast array of high-quality mango varieties, its export volume remains minimal. To harness the full potential of this market, significant investments are needed in modernising agricultural practices, including the adoption of Good Agricultural Practices (GAP) like regenerative farming methods. Moreover, establishing an efficient cold chain system and enhancing packaging standards are vital to meet the stringent requirements of international buyers.

The rising costs of logistics, packaging, and air freight pose significant hurdles, reducing the competitiveness of Bangladeshi mangoes in global markets. Addressing these issues, along with improving infrastructure and exploring value-added products, will be crucial for boosting exports. With a focus on quality, sustainability, and efficient supply chain management, Bangladesh can better position itself as a leading exporter of mangoes, catering to high-value markets while ensuring profitability for its farmers and stakeholders.

Mohammad Moziball Hoque is the head of value chain and private sector engagement at Solidaridad Network Asia.