231 Environment, Rural and Social Development October 2003 Findings reports on ongoing operational, economic, and sector work carried out by the World Bank and its member governments in the Africa Region. It is published periodically by the Knowledge and Learning Center on behalf of the Region. The views expressed in Findings are those of the author/s and should not be attributed to the World Bank Group. http://www.worldbank.org/afr/findings Mali: Exporting Mangoes to Europe Linking farmers to markets The context of mango production and exportation in Mali European consumers were more likely, until recently, to eat Indian, For the past ten years, Malian Israeli or Brazilian mangoes rather mangoes had been exported than Malian ones. However, since through Ivorian middlemen. Little 2001, sea-freighted Malian man- or no technical assistance was goes produced in the south of the given to the farmers, and full pay- country by small-scale farmers ment was often a haphazard event. have been successfully exported This arrangement resulted in little and retailed in Northern Europe. investment in the horticultural This achievement was quite sig- sector1 and, more specifically, in nificant given the prior failure of the plantations (no replanting). As similar projects and the overall dif- a consequence, field productivity, ficulty in finding investors for the exports (estimated at 4,000t per export of perishables from land- year of mangoes exported from locked countries with poor trans- Mali) and grower revenues dimin- port connections, like Mali. The ished significantly, with current export of Malian products is con- yields estimated at only 20 percent trolled by Ivorian exporters with few of the export potential. Transpor- returns to the producers on the tation was also a major impedi- other side of the border. Despite the ment since Mali did not take ad- high quality of its fresh fruit and vantage of the logistical capacity vegetables, the high cost of air- of neighbouring Cote d'Ivoire,2 and freight was impeding the expansion opted to remain in the market of production and export. By estab- niche of air-freighted mangoes,3 This situation is explained in the Findings lishing a multi-modal shipment sys- tem and improving every step of the context of previous failed attempts supply chain, the mango export pi- to establish a sea shipment trans- lot project proved the feasibility and portation system for mangoes from profitability of such innovation. Mali,4 as well as the numerous constraints to such development, such as geographic distances,5 APROFA), a non-profit, govern- Village-level organizations and in- poor communication infrastruc- ment-funded agency responsible termediaries: worked closely with ture, restrictive administrative for providing marketing opportuni- APROFA at every step of the supply regulations for export (customs ties for smallholders' agricultural chain, pooling production, negoti- documentation), and, generally products for local, regional and in- ating contracts, and also providing speaking, the lack of experience ternational markets. After a pre- training and technical assistance in organizing sophisticated cross- vious unsuccessful attempt at activities, such as organizing pro- border trade logistics, which imply launching a mango export cam- duction programming, conducting major changes in commercial paign, a new operation plan was field-level diversification experi- practices.6 designed for the 2000­2001 crop ments and supplying quick alert season. The operation was set up information on crop performance. Objectives of the project at two levels: The private sector: has been in- · Upstream, APROFA assisted volved from the incipient phases Taking stock of the potential of small growers in developing an of the project providing resources horticultural exports, and Mali's efficient supply chain by improv- for investment, managing pack- comparative advantage in the ing the product quality to be houses, organizing the exporta- mango sector (total mango exports adapted to the markets require- tion, but also supplying technical represent a 700 million CFA, US$ ments (production and process- assistance and technology trans- 1.3 million business), the objec- ing); fer (quality, traceability, supply tives of the pilot operation were to base management, integration, as increase the volume of fruit ex- · Downstream, the agency as- well as streamlining logistics and ported to Europe and to capture sisted in establishing a joint ven- monitoring markets), ensuring more value-added and returns in ture with an Ivorian private op- proper pesticide use, and introduc- Mali. These would impact dramati- erator (with no existing opera- ing innovations at all levels of the cally on the revenues of small- tions in the mango sector or in supply chain. holder mango producers by (i) im- Mali) to resume the activities of proving the supply chain for the the Sikasso pack-house (that had International consulting firm: pro- export market at the local level, been closed, having gone bank- vided assistance in setting up the involving the farmers in the export rupt at the end of the previous contractual framework, defining process (focus on local-level private campaign), and overcome the the multi-modal logistics param- entrepreneurship); (ii) developing transportation bottlenecks by eters and costs, establishing the new communication channels for developing sea shipment logis- commercial and financial feasibil- trade exchanges with cross-border tics to connect Sikasso to the ity as well as cash-flow projections, partnerships (sea-freight logistics); importing markets of Northern brokering the contract scheme (iii) promoting promote private in- Europe, through Abidjan (the between APROFA and the Ivorian vestment in rural areas, and (iv) trading port to Europe). exporter, and establishing a pack- encouraging crop diversification7. house management system adapted to the specific Malian prod- The mango export pilot operation Partnerships uct sourcing system8. The World Bank: intervened, in At the origin of the operation was The pilot operation of exporting particular, after the failure of the the Agro-Processing Trading sea-freighted mangoes from first campaigns, holding up the Project (Projet d'Appui à la Sikasso is the result of a success- implementation of the Projet Valorisation et Commercialisation ful partnership between all stake- d'Appui à la Valorisation et des Produits Agricoles--PAVCOPA), holders, with APROFA acting as the Commercialisation des Projets assisted by the World Bank. The catalyst and coordinator. Agricole, the Agro-processing Trad- objective of the project was to pro- APROFA: acted as the main bro- ing Project (PAVCOPA) program vide technical support to the Agri- ker between the different partners, until the restructuring of APROFA cultural Trading and Processing Malian and Ivorian. It facilitated, (renewal of the management Promotion Agency (Agence pour la through its status, access to the team), and advising regarding the Promotion des Filières Agricoles-- transportation partners, negotia- contracting of the consulting firm. tions, and formalization of contracts. The Bank was also an impartial · Quality control : The producers, · Grower unit prices increased by partner to the operation. middle-men, pack-house staff 25 percent, and employment in received training on quality stan- the pack-houses reached 150 dards, timing for harvesting (ripe- persons (of which more than 60 Implementing innovation at every ness levels), market information percent are women with ad- step of the supply-chain (sizes, varieties, presentation), equate working conditions and transportation requirements pay above national labour bench- · Services to the production level (time lapse, storage), and maxi- marks). (extension and training): Train- mization of shelf-life (phyto-sani- · The project made 26 million ing and technical assistance tary, quality, aspect of the prod- FCFA (US$ 44,598) of net profit, (field services, agricultural in- uct, fruit maturity stages, pre- securing an internal rate of re- puts, quality management, con- cooling protocols). turn of 70 percent. servation techniques, harvest- · Multi-modal shipping system to · Because of a joint agreement be- ing techniques, improvement of directly connect Sikasso, the tween APROFA and the Société seedling sourcing system), data largest centre of mango produc- Nouvelle Tropical ExpressionsTM collection on the plantation and tion in Mali, to Rotterdam, that provides a "royalty" per kilo the growers (plantations, variet- through a continuous chain exported from the pack-house to ies, surfaces, zones of produc- linking origin to destination APROFA (an unprecedented case tion), incentives for the estab- through multiple transportation in Mali), the benefits contributed lishment of producers' organiza- means (rail, road, air, sea). to securing APROFA's own finan- tions, adaptation of the produc- · Joint venture with an Ivorian cial sustainability through net tion to demand requirements export company: because of well- revenues from its services. (varieties, orchard restructur- known past failed experiences, ing), quality control and certifi- · The Malian mangoes exported the risks involved in the opera- cation (more than 400ha certi- are exported with the brand tion (perishables, export ship- fied organic), and national regu- Société Nouvelle Tropical Expres- ment, long transportation logis- lations (labor laws and other sionsTM, marketed in the Neth- tics), and the significant seed regulatory frameworks). erlands, Germany, and capital required, it was impos- Scandinavia. · On the marketing side: (i) orga- sible to find a Malian company nization of the marketing actors9 · Quality levels were high, with no willing to invest in the project. and active participation in the loss in terms of repacking or dis- The Ivorian export company de- marketing steps of the chain carded produce (none of the cided to buy into the project and (through training and trials at 56,000 boxes that arrived in thus formed the new company the local market level with coop- Rotterdam were rejected by the Société Nouvelle Tropical Expres- eratives); (ii) training in export importer). sionsTM. standards application (selection · Excellent customer response to · A financial innovation: All the and conditioning of the mangoes, the Malian produce (taste, gen- capital, 60 million FCFA (US$ quality control); (iii) logistics im- eral aspect). 102,916), was raised by the pri- provement (identification of · Good performance of the Malian vate operator, without any com- transportation subcontractors, pack-house personnel and field- mercial credit or subsidy from packing to reduce the losses, men: improved quality levels with APROFA, through its internal re- container shipment, dialogue an average of 80 percent export sources and "trust-equity" net- with local customs and regulatory yield on incoming produce (start- work with its supply-chain part- authorities); (iv) financial ar- ing levels were 60 percent). ners. rangements to finance the opera- · Efficient fund flow between im- tions (involvement of a local porter and exporter resulting in bank); and (v) creation of partner- the reliable and timely payment Results ships with specialized export of growers and field-men, and companies. · Shipping delays between Sikasso consequent decrease in working and Northern Europe were more capital requirements. than halved (from 25 to 12 days). Lessons learned tial stakeholders, inspiring the establishment of other partner- · Working at every segment of the ships between exporters expecting This article was written by supply chain: The effective link- to increase their sourcing capac- Morgane Danielou, Junior Profes- age between farmers and mar- ity and Malian producers. After sional Associate, Africa Region, Ru- kets was made possible by successfully completing the pilot ral Development (AFTS4) planned intervention at every phase, the mango project is going mdanielou@worldbank.orgFor more step of the production and mar- to be upgraded to a regular opera- information, please contact:Patrick keting stages, analysing and tion. Over time, the objective is to Labaste, plabaste@worldbank.org or untangling the supply processes. develop a 5000t operation with a Morgane Danielou, This led to full market accep- range of different products with a mdanielou@worldbank.org tance because the supply chain revenue target of US $3 million, addressed market requirements. and to develop another multi-modal This paper is an extract of a full · Overcoming the constraints and shipment system through Senegal, text document: "Linking Farmers to finding innovative solutions: For between Bamako and Dakar, Markets, Exporting Malian Mangoes example, some of the principal which would cut to less than 10 to Europe," Africa Region Working actors of the project identify man- days the transport time of the man- Paper Series, N. 60. http:// agement as the key to success. goes to Northern Europe, thus con- www.worldbank.org/afr/wps/ Through the restructuring of tributing to the development of the PAVCOPA and the establishment Bougouni region. of APROFA, and hands-on tech- nical assistance, the new team drove the success of the opera- 1 As opposed to Côte d'Ivoire and tion by promoting local know-how Senegal, both countries have in- which resulted in more effective vested in extensions that are cur- management and operational rently underway, financed by higher practices. margins generated by a more inte- grated supply-chain. 2 Côte d'Ivoire and South Africa have Conclusion the most efficient sea logistics of This case is a successful example Africa. of agro-business development, and 3 Low volumes and returns to the rural private sector promotion. The producers. actions carried out under the op- 4 Most pack-houses went bankrupt. eration and entailing improved 5 From Sikasso to Abidjan. practices in production, quality, 6 Trust, transparency, accountability and commercialization, have ben- and predictability required by the efited the mango growers signifi- modern fresh produce sector. cantly. Rural smallholders have 7 Mali's economy relies largely on ex- been able to again exploit their port commodities and, in this sec- abandoned orchards, and raise tor, is highly dependent on two com- their income through this new modities--cotton and gold--repre- form of revenue. They will also see senting 85 percent of its exports. longer-term results, such as their 8 Inventory management, cold chain ability to respond to market de- protocol, hygiene practices, payroll mands, to maintain a regular pro- management, and financial summa- duction (volumes and product qual- ries. ity) adapted to the requirements of 9 Association des pisteurs de Sikasso, the market. The impact of the op- Mango Collectors' Group from eration also went beyond the ini- Sikasso.