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Collaborating to develop export markets - Bill Gerlach
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3. • “It’s always great to see the No. 1 fruit in the world
becoming more accessible and more competitive
with other imports during those time periods.
We’re just now starting to find out what the rest of
the world has known all along.” Robert Schueller,
Melissa’s public relations director
30. Column1 Column2
Country of Origin
Crop
Variety
Grades offered
Season
Weekly Volume
Pack Description
Label Name
GlobalGAP or GFSI certification
HACCP certification
Minimum Brix
Pallet Count
Pallet Configuration
Box Dimensions
Digital photos of Pack
PLU code number
FDA Facilities Registration Number
Shipping Temperature
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Minimum Order
Direct Shipment Destinations
CIF-Los Angeles price
Terms: Net 45 days from Delivery
First of all, I want you to know I didn’t do the Johnny Depp thing and try to smuggle in my two puppies past AQIS quarantine service! I was really impressed by the way Australia Quarantine was really on top of things!
Figures high in the imagination of Americans
Romantic notion of idyllic sunsets, exotic animals, exotic people
Peter Weir films that extol the haunting mystique of the land in films like Picnic at Hanging Rock, Wickerman, etc.
Spawned some of the world best actors in Nicole Kidman, Hugh Jackman, Kate Blanchett, Paul Hogan and even adoptees like Mel Gibson and Russell Crow
In this romanticized context come the Aussie mangos. They fill such a great niche in the market –Nov-Mar which encompasses Thanksgiving, Christmas, Valentines Day, and Chinese New Year.
US market is craving good mangos—and more and more as the country gets more ethically diverse.
The most widely consumed fruit in the world, it’s not in the US with only a paltry 2# per person. Yet world wide the mango is the King of Fruits with consumption three times greater than that of bananas and 10 times greater than that of apples.
In India, consumption is roughly estimated at 10-12 kg per person or 22-26 pounds! So the US has a lot of catching up to do!
I've done some extrapolations for India based on their production of 15.5 million MT (Wikipedia). That translates into 3,410,000,000,000 (that is over three trillion) pounds. Divided by their population of 1.3 billion, that leaves a calculation of 26.2 pounds per capita. Assuming only 50% is "consumed' in India, that still leaves over 13 pounds per person per year. (Compared to the US p/c of 2.4 pounds).
320 million people—latitudes mostly 49-32 degrees N with continental exceptions of Texas 25 degrees and Florida 24 degrees
Tremendous ethnic diversity; interest in new flavors, textures; health items; cooking shows, celebrity chefs, foodies, social media and buzz propel interest
Obesity/overweight rampant at 2/3 population; diabetes on rise
For the first time in human history more of us will die of food-related diseases such as heart disease, type 2 diabetes and hypertension than diseases caused by viruses and bacteria
Hispanics make up more than one sixth of the U.S. population today — and growing fast—salsa outsells ketchup. Tacos, burritos, quesadillas commonplace. Avocados one of fastest growing produce items. Chips regularly feature spicy flavors like chipotle, habanero, etc. Hispanic foods and beverages were an $8 billion market in the last year, according to consumer research firm Packaged Facts. By 2017, that number may reach $11 billion. As we go into 2050, more and more avocados, mangos, tomatillos, jicama, and chiles will be demanded.
When I go to the International Mango Festival in Miami, Caribbeans from all types flock to the show just to buy their tree of their favorite variety they know from home.
And the Asian demographic is the second fastest growing. And Asians, particularly from SE Asia and South Asia, know and revere their mangos. Varieties like Nam Doc Mai, Mahachanok, Alphonso and Kesar are looked on with high regard. This emphasis on tropical fruits, along with vegetable centric offerings, is perceived as trendy and healthy. Bok choy, Napa cabbage, sno peas, sugar snap peas growing. Palates have graduated from Chinese STIRFRY and Japanese edamame to Korean BBQ, kim chee, Indian curries, Thai lemongrass. Baby bok choy has grown about 50% over the last 5 years at Melissa’s.
Cooking shows and social media highlight the exotic and consumers are adventurous and looking for new flavors. Mangos fit right in there.
Here you are—Foodies, Naturals, Hispanic--the triumvirate that drive interest in mangos as well as ethnic foods.
Technologically savvy and utilizes YouTube 30% more than other generations to learn about food
Avid consumers of social media and cooking shows. Food is more about a Statement and Comparative Status among their peers
50% consider themselves foodies
Food is Fun
60% of males and 61% of females love to cook
Food is an Adventure
Constantly looking for new flavors, atmospheres, formats (e.g., Spiralizer)
Freshness, Variety, Authenticity, Transparency, Ethics, Sustainability matter
Mangos occupy the largest share of the topical fruit sales pie (excluding bananas) with a market share of 39%.
Principal purchase areas are the West Coast, New England (especially Boston) Florida, and Texas. Melissa’s is strongly positioned with customer accounts in all those regions.
And the principal demand of retailers these days? What have you done for me lately? What is new? What is fresh? What gives me a point of differentiation?
Top cities—Los Angeles, Houston, Boston, Washington DC, West Texas, Las Vegas, San Francisco, Miami
A lot of these destinations track with Hispanic population
INTRODUCTION
This influence is due not only to the sheer size of the Hispanic population of 52 million now in the U.S. — roughly one in six Americans, with projections to nearly one in three by 2050.
Hispanic influence is felt in food, baseball, television, fashion, and language
Basically Calif, Texas, Florida, and Northeast
So Aussie mangos, here we go!
Melissa’s is prepared to strap on and take this ride because it promises to be a good one.
OK—a South African airline, but you get the point! Our consumer measuring tape says that the US is underserved with good tasting varieties so we can’t want for mango express to crank up and start roaring down the runway so the US can reach a new height chart on the P/C wall!
While I did not exactly fit a least-squares linear regression line to this data, it does not take a rocket scientist to notice an upward trend here. An aberration of our database is that we can only go back five years. If we could go back further I am sure the trend would be even more striking. The slight dip experienced in 2014 was the result of reduced availability from SE Asia due to rising demand in China because of widening bilateral trade ties with Vietnam.
Our fervent hope and mission is to help Australia step into the breech between Mexico and Peru. I think if we work strongly together we can. We have only been waiting 15 years!
Australia doesn’t even register here in this graph. But who cares about quantity? To build a robust market, only quality and seasonality matter.
Competitors out there with mangos in the air and on the water, but most of these do not land in the US. Exceptions are Mexico, Brazil, and Peru. And basically do you know what kind of competitor you face there? Tommy Atkins—big deal! And furthermore—many of these are hot water dipped which way undershoots the green as far as flavor!
We conjecture that our ace, our hole-in-one is going to be a good tasting mango from Down Under.
Now we arrive at the darling of our current irradiation program—Australian mangos
Friday Feb 13 was a historic day for Melissa’s—receipt of first mangos into the US after 15 years of pipe dreams , hard work by both Australia and the USDA.
Form 203
Import Permits since have been revised and reissued without requirement of Form 203
Since Australian inspectors do the on-the ground approvals, no Form 203’s are necessary and our import permits have since been revised and reissued so the inspection will move more expeditiously in the fall when the mango and lychee program resume.
This is new territory for the USDA and they will be monitoring performance and progress of this program over the course of the 3 year pilot project.
Social Media—usually I disparage it as SAD—Social Affective Disorder—relegated to frivolous pursuits. But when this first air ontainer54 arrived at Melissa’s dock, we have our entire Marketing Department there photographing , videotaping, tweeting, facebooking, instagramming, and pinteresting and within 24 hours the entire container had been sold and then the retailers wanted more.
The Keitt mangos arrived in perfect condition—great cosmetics, great firmness, nice color break and ripened uniformly and evenly over a 7 day period to a 16 degree brix!
Immediately the retailer wanted more and if it weren’t enough that the season was already ending, within a few days of arrival Cyclone Marcia hit Queensland and the Northern Territory effectively ending any visions to somehow extend the season.
Great mangos and great sturdy boxes.
Social media reached 20,000 consumers and mangos 240 boxes were all sold in 24 hours.
Blue Kangaroo! What is up with that? Australia meets Avatar?
Retailer could not have been more pleased how the mangos ripened nicely and their cosmetics and sweet eating quality.
Their only suggestion was more of a pre-ripened mango in the range of 2-3 Stage color break. That will expedite ripening time in the DC’s and distribution out to the stores.
Just looking at this graph, it looks like 4 varieties comprise over 75% of the mango pie chart!
Your Australia mango website lists KP as 70% of the planted acreage!
Aromatic combination of volatile organics known as terpenes, furanones, lactones, and esters .
More than anything we need grower stories to jump start the program and pre sell and galvanize human interest on social media
¾ cent per pound assessment for research and promotion of fresh mangos collected at border by US Customs on imported mangos
diametheote and fenthion
Foreign suppliers would be subject to same standard as US producers re: Produce Safety==Produce Rules (farm) and Preventative Rules (packinghouse). And we as Importer of Record will be subject to the Foreign Supplier Verification Rule which will probably entail close collaboration and exchanges of confirmatory data. We will help you through this!
Water Safety/testing/application intervals
Wildlife and domestic animal anti-encroachment
Biological soil amendments
Management and harvest worker training
Records keeping and Documentation
Exemptions based on farm size
We, as Importers of Record, are responsible for insuring foreign suppliers adhere to FDA Produce Rules, which require risk assessment, mitigation, and documentation of microbiological hazards. Beyond that, Importers responsible for Biological, Chemical, Physical, other hazards. May entail actual Importer audits
TPP is a regional trade agreement currently being finalized among 12 countries surrounding the Pacific Rim.
These countries include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
In the works for more than five years, TPP is arguably the most ambitious trade deal ever negotiated, and the most important to the Northern Hemisphere since the North American Free Trade Agreement (NAFTA).The 12 major economies of TPP represent a customer base of nearly 800 million consumers and 38-40 percent of total global gross domestic product (GDP).
According to the U.S. Department of Agriculture, the United States exported USD$3.1 billion of fresh fruits to the region in 2014. Citrus alone was nearly USD$1 billion. TPP will bring tariffs to near zero (usually over a phase-in period) for almost all fresh fruits and vegetables. Some tariffs are currently as high as 40 percent.