THE Australian mango industry plans to increase grower profitability by 20 per cent in five years under a bold new strategic plan.
The Industry Strategic Investment Plan 2014/15-2018/19 aims to put an extra $1 per tray profit back in growers’ pockets by 2019 by focussing on production and harvest, consumer demand and business and communication.
Currently, about $5 a tray is returned to growers as profit.
The plan couldn't come soon enough for an industry plagued with oversupply, quality issues and poor grower returns.
Australian Mango Industry Association (AMIA) chairman Gavin Scurr, North Queensland directors John Nucifora and Kieren Brown and the new-look management team rolled out the plan in Mareeba last month.
It was the first of a series of grower meetings, with others to be held at Darwin and the Burdekin.
Mr Scurr said sustainable profitability through the entire supply chain remained one of the biggest challenges for the industry.
He said the robust plan heralded a "very different direction" for the industry.
"We've been brave enough to go out on a limb and make the change but ultimately it’s the growers that will make this work or not," Mr Scurr said.
"This is a plan that was about 12 to 18 months in the making.
"We have consulted with industry at large from researchers to growers, wholesalers to packaging companies, the entire supply chain.
"To be a successful industry we all need to be profitable.
"That's one of the challenges that industry does face, having that sustainable profitability within the industry from growers to wholesalers through to retailers."
To implement the plan, the AMIA board has endorsed a new management team, led by part-time chief executive officer Robert Gray.
Mr Gray, a former board director representing the Northern Territory, said the industry was currently in a downward spiral, with poor profitability resulting in little or no investment on farm.
He said a 20 per cent increase was a big step but necessary for the industry's future.
"Profitability affects quality, productivity and ultimately it affects our ability to deliver to consumers a great product and that's a real concern," Mr Gray said.
"We now have a clear, measurable objective that will drive everything we do."
Mr Gray said the days of growers receiving $16 to $20 a tray were over.
"All the data shows that our gross sale price needs to be in the high 20s if we are achieve that net profit," Mr Gray said.
"To do that we need to focus on making sure our product aligns with what consumers want.
"We need to make sure the channels that we sell our product into are very much engaged with our product and are creating great space and demand for that product."
New AMIA marketing manager Treena Welsh said mangoes were an icon but the challenge for the industry was to retain and maintain that position.
"Australian mangoes are wrapped in emotion," Ms Welsh said.
"Brands around the world spend their entire lives and very big budgets to position themselves to become icons. Some like Coca-Cola and McDonalds make it but many, many fail.
"We are in that position but it’s an earned right and a right we need to earn every season."
Industry activities will centre around four key areas.
Forecasting is currently underway, with information about the season and expected yields to be collected and provided to the supply chain in August, September and weekly during harvest.
Quality - one of the industry's biggest challenges - will come under spotlight as it attempts to deliver a good to great mango experience to consumers, every time. This will include how quality is managed in each step of the supply chain.
A multi-prong engagement program will target growers, retailers, wholesalers and consumers while a social media and press campaign will be delivered to put mangoes front and centre of Australian consumers.
The latter will begin with two auctions in Sydney and Brisbane celebrating the start of the season and continue with national media coverage at the annual Mango Mess-tival on Bondi Beach traditionally held on December 1.
The industry's Facebook community which currently numbers 44,000 will be grown and Instagram will be employed to further engage with consumers.
"Our job is to populate the hearts and minds of consumers before they get to the store with all things mangoes," Ms Welch said.
"Mangoes say summer and that's what retailers have to go to the store with."
Ms Welch said retailers needed to be confident in the product and be assured they were getting reliable information.
"They have to have confidence that the quality is going to go off the shelf and the repeat purchase is going to happen," Ms Welch said.
"It's critical that we align what's coming in the season with the marketplace so it can be prepared."
In parallel with the consumer demand plan is a review of the industry's exports.
An aggressive target has been set to lift mango exports from eight to 20pc in three years.
Last season, the industry exported its biggest volume of fruit ever mostly into Asia countries. However, exports into New Zealand fell by almost 30pc.
Ms Welch said consumers overseas viewed Australian mangoes as "a slice of summer they have always wanted".
