International Business

Exporting Mangoes to Australia

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Group Members

Obaid Bin Abdul Rehman

Usman Bin Qasim

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Table of Content

Introduction

Why chosen Mango as an export product

Why choose Australia as an export country

Competition

Theory of Trade

Environmental Factors of Import Country

Export Strategies

Legalities and Documentation

Supply Chain

Trade Barriers

Benefits for Home and Host Country

SWOT Analysis

References

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Introduction

The product that we have chosen for our export business plan is mango

Pakistan’s total mango production reaches 1.7 to 1.8 million tons annually with the lion’s

share coming from Punjab and 30 percent from Sindh

Pakistan is the 5th largest producer and 3rd largest exporter of mangoes.

Pakistani mangoes enjoy a prominent position in the international market due to its taste,

popularity and demand

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Mango Variety

There are about 140 different types of mango varieties that are grown in Pakistan

We have only chosen two for our export business plan

• Sindhri

• Chaunsa

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Sindhri

Season: mid May to mid July

Origin: Mirpur Khas

Color: Gold

Pulp Gravity: Medium

Flavor: Slight Perfume

Fiber: 3-5%

Moisture Content (avg): 79% after ripening and 18% before ripening

Weight: 1-3.5 pounds

Relative Humidity: 85%

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Chaunsa

Season: July to September

Origin: Rahim Yar Khan & Multan

Color: Gold

Flavor: Slight Perfume

Fiber: 17.2 - 27.3%

Pulp Gravity: Heavy

Moisture Content (avg): 78% after ripening and 81% before ripening

Weight: 1-2.3 pounds

Relative Humidity: 85%

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Why Choose MANGO as an export product?

Mango is known as “King of Fruits” due to its exotic aroma ,taste and color.

Pakistan is already exporting 120,000 million tons mangoes each year.

After kinnow (oranges), Mango is the largest export crop of Pakistan.

The necessary tools and equipment required are already available .

The technicalities and problem associated with mango export are already known.

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Why Choose Australian Market?

With one of the most transparent and well-regulated business environments in the world, Australia’s political stability and regulatory framework provide investors with confidence and security.

Pakistan has recently been given permission for mango export to Australia by Australian Government.

There would be no competition from local market as Australia mongo seasons are different from Pakistan.

Resources required for business operation would be easily available.

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Competition

Currently we do not face any competition ,neither from the host country or home country.

But we will face competition from the following countries

• India

• Philippines

• Mexico

• Netherland

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Theory of Trade

Comparative Advantage

We have comparative advantage to be as our theory of trade.

Comparative advantage occurs when a country cannot produce a product more efficiently than the other country.

Australia’s Average production marketed over the last five years has been approximately 53,500 tonnes while Pakistan produces around than 1,000,000 tonnes.

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Environmental Factors of Import Country

Legal

Competition laws

Australia has a national legal framework to ensure that trading is fair for businesses and consumers. This framework is administered and enforced by the Australian Competition and Consumer Commission (ACCC)

Consumer laws

The Australian Consumer Law (ACL) is the national law for fair trading and consumer protection.

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Contd…

Cultural

Religious Beliefs

Australian constitution guarantees religious freedom, and while there is no official national religion, Australia generally is described as a Christian country.

Language

Although Australia has no official language, it is largely monolingual with English being the de facto national language.

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Contd…

Values and Attitudes

Some of Australian values and Attitudes are:

• Freedom of speech

• Freedom of association

• Freedom of religion and secular government

• Support for parliamentary democracy and the rule of law

• Equality under the law

• Equality of men and women

• Equality of opportunity, regardless of race, religion or ethnic background

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Contd…

Economic

It is one of the largest capitalist economies in the world.

• Continuous economic growth due to stable economy

• Low unemployment rate at acceptable per capita income

• Contained inflation

• Very low public debt

• Strong and stable financial system

• Open market with minimal restrictions

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Contd…

Political

Australia is a liberal-capitalistic democracy. Here, the state keeps interfering substantially in the economy through various roles.

Here are the few things that can be affected by political interference:

• Tariffs & taxes

• Currency controls

• Local content requirements

• Anti-dumping rules

• Export financing

• Free- trade zone

• Administrative policies

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Export Strategies

Joint venture:

Joint venture is when two or more firm join together to create a new business entity that is legally separate and distinct from its parents. It involves shared ownership.

Reasons for Joint Venture:

Reduced market and political risk long-term relations

Shared knowledge and resources

Shared risk of failure

Better relations with national

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Legalities and Documentations for Export

NTN

Bank Account

Chamber Membership

Documents for Clearing Agent

Packing List.

Commercial Invoice.

Letter of Credit (L/C).

Certificate of Origin which is issued by Chamber of Commerce.

National Tax Number Certificate

Form “E”

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Local Supply Chain19

Purchasing

Export Supply Chain20

Trade Barriers

All goods imported to Australia must be cleared through border.

Australian Government Department of Immigration and Border Protection provides information to all exporters such as import clearance documents, prohibited goods and import permits.

Cost will vary according to the type and value of goods exported in Australia. These costs may include GST, clearance fee, custom duty and other taxes.

Goods containing industrial chemical* will require additional registrations.

If your goods fall under Quarantine regulations*, the Department of Agriculture and Water resources will inspect them and treat them.

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Contd…

Tariffs and Duties:

Australia has commitments under the World Trade Organization (WTO) on tariffs and tariff quotas, export subsidies and domestic support for agricultural products.

Declaration procedures are based on self-assessment by importers. Declarations must be made to the Australian Customs and Border Protection Service, which also enforces import restrictions.

Non Tariff Barriers

Australian Authorities have set different rules and regulations that delay or preclude the purchase of foreign goods.

These hurdles can be slow processing of import permits, establishment of quality standards that exclude foreign producers and “buy local” policy.

These different barriers demotivate the exporters to sell their product in Australian market.

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Benefits for Host Country

Exports will create Job Opportunity in Host Country

It will also Increase the Government Income through taxation

Export will also Increase the Competition in host markets

People will be able to enjoy the Benefit of Low Price in host country

Exporting will also break down Monopoly in the host country

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Benefits for Home Country

Exports will increase our Foreign Exchange Earning.

We will be able to Gain Global Market Shares.

There will be Increased Sales and Profits.

Export will generate Jobs Opportunity in Home Country

Mango exports will also improve our Balance of Payment.

We will also gain New Knowledge and Experience.

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Swot Analysis

SWOT

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Strengths Opportunities

Weakness Threats

• Not enough financial resources

• Unable to fulfill the high demand

• Export through Air cargo

• Highest Quality product

• No competitors

• Qualified Work Force

• Expanding operations to new markets

• Become a market leader

• Start own mango farms

• New Competition

• Local Laws

• Taxes & Tariff's

References

• http://consumerlaw.gov.au/

• http://www.mangoes.net.au/homegrown/varieties.aspx.

• http://toolkit.smallbiz.nsw.gov.au/part/3/12/56.

• http://buypakistanimangoes.com/All-about-Pakistani-Mangoes/How-Mangoes-can-be-used.html.

• http://rayma.com.my/pakistanmangoes/chaunsa.html.

• http://rayma.com.my/pakistanmangoes/sindhri.html.

• http://www.austrade.gov.au/

• http://www.accc.gov.au/about-us/information-for/agriculture

• http://www.everyculture.com/A-Bo/Australia.html

• http://www.phdec.org.pk/articles/article_detail.php?id=87

• http://www.phdec.org.pk/MktStrategies/Mango.pdf

• http://www.tdap.gov.pk/pdf/tdap_reports_on_mangoes.pdf

• http://www.icci.com.pk/data/downloads/66/210344805_1.pdf

• http://www.agriculture.gov.au/import/arrival/clearance-inspection

• http://www.pakissan.com/english/allabout/orchards/mango/mango.export.from.pakistan.shtml

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Thank You

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