By Francisco Seva Rivadulla, international agri-food journalist.

Digitalization is becoming an aspect of utmost importance for the mango industry. For this reason, we have interviewed engineer Armando Gerstl, an agricultural consultant specializing in New Technologies.

As engineer Armando Gerstl explained, “Consumers and international markets are increasingly aware of the concept of sustainability. Digitalization allows for more efficient use of resources, promoting a more sustainable mango industry from an economic, social, and environmental point of view. The mango industry must be able to collect, process, and analyze data to make strategic decisions, and this data processing is facilitated by digitalization."

Digitization: A necessity

Furthermore, he added that “it is definitely a necessity, especially in these times when margins can be very tight. Having control over all production costs in the field and at the packer makes the difference between being in or out of the market game. This process is essential to gain a competitive advantage and ensure sustained growth in an increasingly complex market.

Digitalization in Mango

“Digitalization in mango must start with the core business or main activity, which in our case is mango production, especially when there is vertical integration involving production, packaging, and marketing of the product,” said Gerstl.

He added that “after digitizing production, packaging becomes fundamental since it allows us to reduce losses, optimize the use of resources, and maximize the gross margin in each of our orders.”

Digitization: An investment

Our interviewee also remarked, 'We must view digitalization as an investment, not an expense.' In most companies, the implementation of integrated solutions allows EBITDA to increase by 50% to 75%. This means that businesses are generating greater cash flow in their operations”.

In this context, he points out that 'digitalization and the use of technologies in the mango industry optimize the use of resources such as water, fertilizers, pesticides, labor, and machinery, among others, allowing decisions to be made based on real-time data from the entire operation, both in the field and in the packing area.”

Traceability

Regarding traceability in the mango industry, he explained, 'A crucial point is traceability: where the mango was harvested, from which ranch and plot it came, who harvested it, what inputs were applied and when, when it arrived at the packing area, who handled it, and what inputs were used.' If heat treatment was used, who applied it, and for how long is recorded.

Finally, it specifies who packed it and what was the cost per unit. Having all this information available to consumers contributes to their satisfaction and guarantees that they are acquiring a reliable product. This, together with responsible agricultural practices and certifications that endorse the commitment of the producers and packers to the environment, consolidates and positions Mexican mango growers as leaders in the export of high-quality products.

First steps in digitization

To take the first steps in the digitization of a mango packinghouse, Engineer Armando Gerstl points out that “it is essential to have a good team that is committed, motivated and that does things in a natural way and not imposed. Know your processes well, optimize them, and then digitize each critical point of the mango packing business.”

“Digitization allows growers to have control over the technical, economic, and financial aspects of the business. By knowing what is happening, they are able to control costs related to inputs, packing materials, machinery, and labor. With this control, profitability is improved, waste is reduced and inputs are used more efficiently,” said Gerstl.

Digitalization culture in Mexican mangoes

Regarding whether there is a culture of digitalization in Mexican mangos, this expert noted that “large companies have acquired a lot of technology in different areas of the agribusiness. However, when we ask about the gross margin per plot, the cost of a mango, or the gross margin of an order, this information is not readily available.

"This is because they deal with back-office solutions that are focused on accounting and fiscal management. These solutions handle large cost centers, distribution of inputs, labor, machinery, among others, which leads to approximations instead of providing the real cost and margin of each plot and each order.”

The future of digitalization

Regarding the future of digitization in the mango industry, Gerstl considers that “producers, as well as packers, must be aware of the importance of digitization, understanding that it is an investment that pays off in a very short time and allows them to make decisions in real-time.

"In business, the numbers reflect the current situation of the company, and based on this information, solutions are sought to address the problems identified. The implementation of new technologies must be measured in order to assess their impact, whether they affect the gross margin and, above all, the quality of the products.”