Module 7 - Mali: Building Mango Export Systems

Mali relies on an agricultural system centered on a few major crops (cereals, rice, and cotton) produced by many smallholders. High production risks and poor productivity contribute to the high incidence of rural poverty. Most smallholders have diversified their production systems to include horticultural crops as complementary cash crops in the off-season, but diversification into export crops such as mangos has been constrained by limited research and extension services, unorganized and inadequate logistics infrastructure, and a lack of information about market requirements.

Demand for mangos is growing in European markets, and Mali is well positioned to produce them. The Agricultural Trading and Processing Promotion Agency, an NGO established as an autonomous body under the Chamber of Agriculture in accordance with a government agreement, undertook to design and implement a project to promote Malian mango exports. The Agency was formed to restructure supply chains, develop marketing channels, and promote the application of research and technology.

Project Objectives and Description

The primary objective of the Agricultural Trading and Processing Promotion Project was to improve the supply chain for mango exports by filling the gap left when the public sector withdrew from the market and by strengthening links between small-scale producers and markets. Related objectives included developing new channels for trade (especially sea-freight logistics) and encouraging crop diversification. More generally, the project aims to significantly increase the volume of mangos exported. On the production side, this goal is to be achieved by improving product quality to meet market requirements; on the marketing side, it is to be achieved by resolving transportation bottlenecks through improved sea-freight logistics.

The Agency identified a Côte d’Ivoire enterprise willing to set up a joint venture and share risks. It guaranteed a fixed price to the importer, who bore the logistic and commercial risks associated with exporting the product. The Côte d’Ivoire partner is liable for (1) financing fruit purchases from growers and packaging material at the pack-house and (2) securing forward and inland logistics. Fixed prices include a profit margin for each party. If the average selling price exceeds the fixed amount, the additional profit is split equally.

The Côte d’Ivoire partner assigned two experienced pack-house managers (administrative and packing) to implement proper packing, accounting, and shipping procedures. The Agency has acted as an intermediary between the producer associations and their trading partners. It also provides a number of extension services to growers and pack-house employees to increase productivity, reduce costs, and improve quality. Key intermediaries are involved in technology transfer to growers. Producer associations assist with training and technical assistance, as well as pooling production and negotiating contracts.