Is it possible to make a profit by farming mangoes in Thailand?

[spidermike007]

We have invested a significant amount of money into growing mangoes. Have had only one small harvest so far. We have over 4,000 trees. The cost of land, planting, grafting, pruning, fertilizing, spraying, etc, is very high. I can barely envision a scenario where we will make any profit. Now, with the market depressed, due to export markets being affected by covid, and fertilizer costs only going up, one can only hope the market bounces back. And the local market is low. We are now faced with really silly costs, including the exorbitant cost of bagging the mangoes, to preserve the quality of the fruit.

 

Does anyone have any advice? Anyone know about dried or freeze dried mangoes? Seems like that may be worth exploring, as the quality of the skin would not matter, we could spray less, and would not have to bag the mangoes. Any advice on the cost of commercial grade equipment to do such a task? And bagging, vacuum packing, etc? 

[Kenny202]

I can only say mangos where I live...when in season sell for around 100 baht / 3kg and sometimes less. At that price it would have to be one of the cheapest fruits in Thailand. Mangos grown in Australia are so expensive in to the point of being a luxury item...and Thailand's natural Mangos in my opinion far superior. If your production costs are high I can only say Id be looking for foreign markets or as you say ways of preserving them. Otherwise cant help with any specific information.

[kickstart]

This problem with top fruit ,be it Mangos ,Lumyai,and some years even Durian ,making money is not easy ,a very short window to sell the fruit,any problems, and you find your self with a crop you can not sell ,or selling it at a very low price ,with you 4000 trees is a lot ,that to me was eggs all in one basket, maybe 3-4 different types of fruit trees would have been better.

And on this forum this problem comes up often,makeing money from top friuit

This year, as a Thai friend of mine said with the cool weather back in January ,it was good for setting the flowers on Mango trees ,hence this year a lot of Mangos with a low price ,Tem-Tarlart ,in Thai, a full market .

You are looking at a specialist market with dried or freeze-dried crops ,ask about OTOP  they could well be a market they ,I have seen dried and freeze-dried fruit   for sale in the up market department stores in Bangkok how you would get into that market I would not know they, stock could well be imported .

As for buying equipment ,would it be cost-effective,it would have to be second hand ,imported?or a job for Alibaba.

In our country you could go organic with help from various organic organizations ,over here not easy, Aphids being one problem, they are ways around it but cost wise probably same cost ?as using conventicle sprays ,and then you are back to the problem of finding a regular market to sell  an organic  crop,if they is one.. 

[simon43]

Make mango marmalade or jam??

[islandguy]

4,000 trees? Wow! 

At that volume maybe you could seek out a partner with processing capability. You need market differentiation as the local market is flooded, mostly with one kind of mango.. Organic or place of origin are possible differentiation. Organic gives you a possible way to command a higher price, especially for export. Switching to organic would likely depress yields until you can revive the soil and learn what organic compatible products will help take care of your orchard. Those sprays may seem pricey but you only need a little product per tank and the commercial products keep getting more expensive. You might ask Dr. Treelove, as he took care of and/or owned a  commercial organic mango grove in Thailand. Best of luck.

[Iamfalang]

On 10/11/2022 at 6:07 PM, spidermike007 said:

We have invested a significant amount of money into growing mangoes.

I would ask the question about profit BEFORE investing money.   lol.  555

 

Just do a multi-colored Durian.  I can make durian red, yellow, green, blue, purple, silver, rainbow, everything....

 

10000 billion baht in Bitcoin and you can become the durian billionaire.  

 

mangos?  dime a dozen here, and I would have chosen rubber instead and then sold to the big rubber companies.  less ethical, more money.   

 

 

[spidermike007]

7 hours ago, Iamfalang said:

I would ask the question about profit BEFORE investing money.   lol.  555

 

Just do a multi-colored Durian.  I can make durian red, yellow, green, blue, purple, silver, rainbow, everything....

 

10000 billion baht in Bitcoin and you can become the durian billionaire.  

 

mangos?  dime a dozen here, and I would have chosen rubber instead and then sold to the big rubber companies.  less ethical, more money.   

 

 

Rubber has barely been profitable for a long time. Durian is a great, long term investment if you are willing to invest in a good irrigation system. Pomelo would be my 2nd choice. 

[kickstart]

3 hours ago, spidermike007 said:

Rubber has barely been profitable for a long time. Durian is a great, long term investment if you are willing to invest in a good irrigation system. Pomelo would be my 2nd choice. 

Pomelo,or Som-o,in Thai are ok ,you would have to pick your verity Tong-Dee seems to be the most popular, Pechit province seems to be the province that grows a lot of Som o's .

But you are still back to the problem of a market ,do you send them all down to the Darlart Thai,lower price but good for cash flow,or sell them locally might make more but will take longer ,a bit like most top furit. 

About  2-3 years ago we never saw a Som o where we are but for the past 2 years plenty around mainly the obligatory pickup loaded up, selling beside the road,  I got 3 for 100 baht last week , Khow dang Gwar,Sie Nam Pung  verity ,not the best, not a lot of flavour, one thing about Som o's is that they keep a lot longer than mangoes. makes selling a bit easier.

[farmerjo]

On 10/11/2022 at 6:07 PM, spidermike007 said:

Does anyone have any advice? Anyone know about dried or freeze dried mangoes? Seems like that may be worth exploring, as the quality of the skin would not matter, we could spray less, and would not have to bag the mangoes. Any advice on the cost of commercial grade equipment to do such a task? And bagging, vacuum packing, etc? 

It is the right idea,value adding.

How much extra do you want to pour in.

Hire a uni/ag graduate for a few months and see where it takes you.

Could be money well spent. 

[spidermike007]

1 hour ago, farmerjo said:

It is the right idea,value adding.

How much extra do you want to pour in.

Hire a uni/ag graduate for a few months and see where it takes you.

Could be money well spent. 

Thanks. But, the market for mangoes is upside down, right now. That could change. But at this time, the only ones making money on mangoes are the chemical companies, the brokers, the retailers, and others who are not growing them. 

[farmerjo]

9 hours ago, spidermike007 said:

Thanks. But, the market for mangoes is upside down, right now. That could change. But at this time, the only ones making money on mangoes are the chemical companies, the brokers, the retailers, and others who are not growing them. 

I understand as in the same boat growing cash crops.

I bought an oilpress to value add and make oil from some grains i grow.

It gives me something different to sell at the local markets at a higher price than the seed itself but that is where it stops.

Once you start looking at FDA approval to sell commercially you are playing with the big boys which would require having marketeers.

All you can really do is cut back on labour costs in these lean times and ride it out. .

.

 

 

 

 

[BritManToo]

On 10/11/2022 at 10:28 PM, Kenny202 said:

I can only say mangos where I live...when in season sell for around 100 baht / 3kg and sometimes less. At that price it would have to be one of the cheapest fruits in Thailand. Mangos grown in Australia are so expensive in to the point of being a luxury item...and Thailand's natural Mangos in my opinion far superior. If your production costs are high I can only say Id be looking for foreign markets or as you say ways of preserving them. Otherwise cant help with any specific information.

In Chiang Mai they sell for 20-25bht/Kg when in season.

And there are so many sellers most of them must get thrown way.

 

As for dried fruit,

My daughter's first job was working for a dried fruit company in CM.

COVID killed the company dead as a doornail.

[retiree]

On 10/11/2022 at 6:07 PM, spidermike007 said:

We are now faced with really silly costs, including the exorbitant cost of bagging the mangoes, to preserve the quality of the fruit.

Aha, so that's why the supermarket mangoes look so great, always wondered.  

But I get the impression that bagging is a standard part of the high-quality mango business, e.g.:  

https://www.daily-sun.com/printversion/details/612882/Benefits-of-Mango-Fruit-Bagging-Technology 

Was this something that only became clear late in the game on your farm?  

Also, a bit curious -- what was your pre-investment estimate of low and high mango price ranges?  

[spidermike007]

1 hour ago, retiree said:

Aha, so that's why the supermarket mangoes look so great, always wondered.  

But I get the impression that bagging is a standard part of the high-quality mango business, e.g.:  

https://www.daily-sun.com/printversion/details/612882/Benefits-of-Mango-Fruit-Bagging-Technology 

Was this something that only became clear late in the game on your farm?  

Also, a bit curious -- what was your pre-investment estimate of low and high mango price ranges?  

As many of us know, 5 years ago this entire planet was a different world. So much has changed. Covid seems to have brought out the ugly side of humanity, and alot of the inflation we are seeing is simply opportunistic. All related costs have gone up, and mango prices have dropped. It is really that simple. That could correct itself in the medium term. 

 

Also, the value of the land has gone up. So, at some point we could cash out, if things don't change. 

[Kenny202]

On 10/18/2022 at 10:50 PM, spidermike007 said:

Thanks. But, the market for mangoes is upside down, right now. That could change. But at this time, the only ones making money on mangoes are the chemical companies, the brokers, the retailers, and others who are not growing them. 

Bit like small businesses, restaurants etc. If I could buy property here much better to be a landlord renting shop houses. Most new small businesses seem to go bust here within 3 - 6 months. Lack of capital, planning and any sort of business sense. Never seems to be a shortage of new comers stepping up to the plate though and any shop fronts in a good area rarely without tenants

[Northstar1]

My exs family has 3 mango farms, they survived for decades as their only income. A Chinese company would come in, buy whole crop and their workers would pick them, mom would oversee the operation as to not get ripped off.

this was before Covid 

[Hummin]

As a thai family driven plantage who know their work, and have a network, there is possibilities, but on a foreigner scale, I would not even think about it. I looked in to many different possibilities, but ended up with trying to become more self sufficient and learn my area what grows or not, and if the marked changes to be more profitable. 
 

If you have personal interest there is possibilities in fruit wines, but it is time consuming, need to be structured, have the will to invest and also to learn the paperwork necessary to produce legally for sale. 
 

Mango wine is supposed to be quite good and have a coming marked. 
 

Dried products marked is huge, and if good at branding it could be an good export product. But without a family who is dedicated, structured and willing to work hard, then it is a potential loss project. 

[Hummin]

On 10/18/2022 at 5:50 PM, spidermike007 said:

Thanks. But, the market for mangoes is upside down, right now. That could change. But at this time, the only ones making money on mangoes are the chemical companies, the brokers, the retailers, and others who are not growing them. 

What kind of mango do you have and quality? Mango is not just mango, and knowing best purpose for your type is essential if you want to do something with them.