This was expected to have gone to 2007 levels this year as prices of crude oil tumbled to pre-2008 levels as a result of the global economic recession. -- Abe P. Belena, PHILEXPORT News and Features <--back

2. RP to start exporting corn as it sees bounty harvests

The Philippines is exporting yellow corn for the first time since hybrid varieties were embraced by corn growers in the 1990s, the Department of Agriculture (DA) announced.

“Secretary Yap has approved the recommendation of the National Food Authority (NFA) to use its network of rice buying stations to buy yellow corn for export, Jess Paras, Undersecretary for Field Operations, revealed.

He said that Secretary Yap gave the green light for the NFA to buy 600,000 tons of the yellow grains at P10 per kilo which is a price that makes corn farming profitable to farmers.

Paras said that based on actual harvests in the first half of the year, corn farmers harvested 2.63 million tons or 10,000 tons higher than yields in the same period last year.

Estimates for the second half of the year would make total harvests to hit above the 7 million metric tons level, which is in little excess of local demand, the DA official added.

Direct buying by government from farmers, he explained, was decided on to stabilize domestic prices and keep the government on target in its drive to make the country self-sufficient, and even an exporter of corn-feed in a few years.

The buying will most likely be concentrated in the five top corn producing regions of Cagayan Valley, Ilocos-Pangasinan, Northern Mindanao led by the province of Bukidnon, the SOCSARGEN, and the Autonomous Region in Muslim Mindanao.

Making the Philippines self-sufficient in rice and corn was on top of the FIELDS program which the present administration launched it last year when the retail prices of milled rice shot up to over P50 a kilo and the Philippines needed to import 2.4 million tons of the staple food.

For the first time in many years, billions of pesos were plowed into specific projects on fertilizer and other inputs, irrigation system rehabilitation, education of farmers on new farming systems and techniques, loans, dryers and high yielding varieties of seeds, the DA official who oversees field operations of DA said. -- Abe P. Belena, PHILEXPORT News and Features <--back

3. Improve packaging and labeling to raise sales, firms told

Businesses are encouraged to improve packaging and labeling of their food products to increase their sales.

Brenda Singco of the Department of Science and Technology’s Packaging Research and Development Center (PRDC) in a forum said packaging and labeling are now marketing requirements.

“The package projects the image, not only of the product which it contains, but often also of the company which sells the brand,” she noted. “Study your product, decide for appropriate packaging before marketing.”

Singco said packaging serves as containment and protection of the product it contains, transport and storage, and functions as silent salesman by providing complete information on its label. “Our label should inform and it should be marketable. Packaging designers are considering what they call the five-second rule. This means, our label should catch the attention of our buyers within five seconds,” she stressed. Singco explained that appropriate packagings are those which are safe for food contacts, improves the shelf life of the product, conforms to regulations of country of destination, competitive, adopts innovation and provides convenience and protection.

“What is the trend now? We want ready-to-eat foods because of today’s fast-paced life so our products should be ready to eat,” she said.

To keep up with the demand, Singco said the DOST’s PRDC is making available generic packaging materials especially for micro, small and medium enterprises (MSMEs).

“These include packaging for dried fruits, fruit juices, nut-based products, root crop-based products and fresh produce,” she said.

Singco also underscored the need for firms to comply with mandatory labeling requirements.

She said there are five mandatory labels information applicable in all countries: product name; net content declaration; ingredient declaration; name and address of manufacturer, packer or distributor; and country of origin.

“Consumers read labels due to health reasons. They are conscious of what they eat. Labels inform our consumers about our products,” she further said. -- Danielle Venz, PHILEXPORT News and Features <--back

4. Implementation of QAP programs crucial in gaining market access

Fresh produce and food products producers and suppliers are advised to implement quality assurance programs (QAP) to continue gaining market access abroad and keep their businesses afloat.

Edralina P. Serrrano, professor of University of the Philippines-Los Baños Postharvest and Seed Sciences Division, in an agriculture and fisheries technology forum noted there is now great concern on food safety with the emergence of food-borne diseases worldwide.

She traced this to changes in the distribution systems, new production and conservation technologies, new food types (pre-cooked food), introduction of new pathogens into geographical areas and immunological changes among population segments, among others.

Serrano said food-borne diseases, particularly to exporters, could result in losses of market access and credibility, foreign revenues, competitiveness and even complaints and product rejections and closure of business.

Such diseases have likewise associated costs for individuals and society, she pointed out.

“Because of the risks and associated costs, the main importing markets are setting standards and regulations to assure food quality and safety throughout the food chain,” she said.

Amid calls for efforts to address food safety, Serrano said, the Philippines has been implementing the good agricultural practices (GAP) program for fruits and vegetable farming.

She said the country’s GAP, which is a set of consolidated safety and quality standards for on-farm fruit and vegetable production and postharvest handling in location where the produce is packed for sale, has been already harmonized with the GAPs of other ASEAN nations.

However, Serrano expressed concern about GAP’s difficulty in attaining compliance since it is voluntary and entails costs for farms and processing plants to be accredited.

“There is lack of awareness about the benefits of having a quality and safety certification,” she pointed out.

Moreover, Serrano cited the need to put up the infrastructure, such as the central data systems towards the establishment of a national traceability system, like the ones in Taiwan, Korea, Japan and Thailand. -- Danielle Venz, PHILEXPORT News and Features <--back

5. Organic farmers, traders urged to seek certification

Organic farmers and traders ready to market can seek certification for their products which will enable them get access to premium price markets. Lani Limpin, coordinator of the Organic Certification Center of the Philippines (OCCP), said they certify not only the farmers or producers, processors and exporters, but also traders and retailers of organic products.

Limpin said products certified include rice, fruits, virgin coconut oil, coconut vinegar, henna, vegetables, moringa tea, garlic, lemongrass oil, cooking oil, herbal plants, wild herbal plants, coconut and sub-temperate vegetables.

“If you are not yet ready to market, you don’t have to certify. But if you are ready to market, you know that marketing always has the cost. When you do marketing, you invest in product label, packaging materials, etc. This (certification) is a marketing tool for you,” she said.

Limpin pointed out that certification is developed to show and guarantee to consumers that a product has been produced in consistency with organic standards.

To avail such certification, she said, an applicant needs to study first the organic standards, comply to the standards and then keep documentation and records.

“Do your planning (written annual production plan), we will do inspection and there are fees,” she said.

Limpin said international certification costs Euro 1,200 for individual while Euro 1,500 for smallholder group, on top of Euro 100 application fee and Euro 100 inspection fee per day.

On the other hand, local certification costs P20,000 for individual while P25,000 for smallholder group apart from P2,000 application fee and P5,000 inspection fee per day.

“Our minimum for cereals is five hectares. For farmers with one-hectare (organic) farm, you have to group yourselves and apply for group certification. It’s only P25,000 and divide it among yourselves,” she advised.

Limpin earlier explained that eligible for group or multi-site certification are organic producers and processors whose farms are contiguous to each other.

Its certification depends on the presence of the farmers’ functional internal control system wherein the group decides on members’ compliance to applicable standards, she said. -- Danielle Venz, PHILEXPORT News and Features <--back

6. Philippine’s best to be featured in a 100% Filipino trade show

In light of the surge of cheap imports in the Philippines from the neighboring countries, the local manufacturers are already making its way in promoting its products in the domestic market.

Exporters will be featuring its best products during the 100 percent Filipino showcase entitled “Pamasko ni Kuya...Kabuhayan ng Pamilya”, a selling fair of best Philippine products, which will be held at the Megatrade Hall 2 on September 24 to 27, 2009.

The trade show will highlight products from various regions in the country that include elegant home decors, furniture, corporate giveaways, handcrafted items, native food and delicacies, housewares and trendy fashion accessories.

Mr. Ajun Valenzuela, Executive Director of the Philippine Chamber of Handicraft Industries (PCHI), a Business Support Organization (BSO) of the Homestyle Industry, stressed “the last week of September is the best time for the local institutional buyers to source products in time for their holiday season selling requirements”. This platform according to him, “shall serve as the one-stop shop for the buyers considering the wide array of product lines that will be showcased in the event”.

He added “through this platform, domestic consumers will be able to discover new global quality products that are now being offered by the exporters”.

One of the biggest Philippine crafts-oriented trade show of the year in time for Christmas, the organizers are looking forward to arresting the surge of cheap imports by instilling to the local consumers the quality of craftsmanship that Philippine manufacturers offer to the world.

This event is in collaboration with the Congressional Spouses Foundation Inc. (CSFI) with the support of the Market Encounter Goes to Manila (MEGMA) Foundation, PHILEXPORT Southern Tagalog Association Inc. (PHILSTAI), PHILEXPORT National and the Department of Trade and Industry (DTI).

For inquiries on the event, you may contact the Event Secretariat at 0917-6306291; tel. nos.948-2274 and 483-9079. -- Maricel Mulawin, PHILEXPORT News and Features <--back