The Market Monitor Minding the Nation's Business
Riza Lozada
The government, through the Department Of Trade And Industry (DTI), is looking at the standardization of indigenous products to compete in the Asean integrated market.
Trade and Industry Undersecretary for Regional Group Zenaida Cuison Maglaya said in the fisheries sector, the government will continue to promote finished p wroducts through aquaculture.
Tuna supply from Mindanao has made the country one of the top world producers of processed tuna products, including fillet and other by-products such as sausages, tocinos and so many varieties.
“We are now studying competitiveness through pricing and niche market. With the Asean integration, we are not talking of neighboring countries on competing but on how to complement with neighbors on supplying the market. They will not wait for us to have the same standards on quality. Asean seeks harmonized standards because there is no longer tariff,” Maglaya said.
Maglaya said there is still increasing demand for local carrageenan used for pharmaceuticals and cosmetics.
With many coastal communities relying on fisheries, Maglaya said agriculture would prioritize aquaculture.
The Philippines has 70 percent of its territories in seas but lacking funds to develop fisheries compared with nearest competitor Malaysia, with big funds and subsidies on fishing, Maglaya said.
She said the Asean integration would require 100-percent compliance and it would no longer revolve around tariff but standards on commodities.
With the entry of imported products in the country, this will bring in competition that will pull the prices down.
The DTI will continue with its mandate to engage in market familiarization through trade missions and business meetings according to Maglaya.
In the packaging development, the products are showcased through the One Town One Product marketing grouping provinces with similarities in product offering.
The furniture industry will see growth in demand for 2015. Agri-based products and tourism will be in the priority agenda of government marketing according to Maglaya. This year will be the Visit Philippines with visitor arrivals expected to reach ten million.
According to the Asean reports, the Philippines will be hosting the 2015 Asia Pacific Economic Summit that will bring some 3,000 to 4,000 international delegates. This meeting will provide the tourism promotion for the country as it will hosting the participants to main destinations including Metro Manila, Cebu, Davao and other popular tourists destination around the country.
Coconut Replanting Readied To Compete In Asean
Maglaya said that out of the 16 million trees hit by the typhoon Sendang, 10 million were totally affected and would take eight years to again to bear fruits and five years to grow from planting.
“That is why we are introducing intercropping and those yielding high-value crops because we cannot wait for eight years,” she said.
She said that the Philippines Coconut Authority (PCA) has been conducting the distribution of free coconut seedlings. To get seeds, reservation would be required, she said.
The distribution of free seedlings was intended for small planters, she added.
The coconut industry is one of the major industries being supported by President Aquino for development, Maglaya said.
She lamented that fewer people were aware of the program.
Maglaya said most of the coconut exports go to Japan, followed by the United States.
A major concern remains the aflatoxin infestation that the DTI and other government agencies are working to improve.
Aflatoxin is a fungus found in most common crops such corn and coconut.
The aflatoxin contamination is a serious concern in the coconut industry.
Maglaya said, “we are still working on this and there is improvement. We are doing this and with the government.”
She said coconut would be an important commodity for the Philippines to be competitive in an Asean common market.
Trading of coconut products in the Asean region would entail not just having the indigenous products to sell to the market.
Another observation of the DTI among local growers of coconut trees is the belief that fresh coconut products can command better price and bigger volume of sales. But Maglaya said the government would push for the processed coconut products to improve shelf life intended for local and foreign markets. This would provide economies of scale and lower prices, she added.
The technical support will come from Department Of Science And Technology (DOST) and PCA since these two bodies are focused on agri-agra reforms according to Maglaya.
The Department of Trade and Industry (DTI) has taken the lead in exploring the markets for coconut products, as well as improving marketing through trainings. “With good packaging and improved shelf life, you can bring to farther places the coconut products,” she noted.
Other high-value products include root crops because they are good for intercropping according to Maglaya.
These are ginger crops and yellow ginger with demand because of increased food processors for these crops. Seedling for ginger is becoming scarce. Ube yam is also in demand in powder for ice cream makers.
The DTI is working, however, to resolve scarcity of both ginger and ube and this is being done in regional levels with the Department of Agriculture (DA) into identifying the locations of planting areas.
Maglaya said that these crops are high-value products with huge demand that even neighboring countries cannot meet for ginger. “The demand market is very big so we have to be prepared for this. Intercropping ginger can be planted under abaca and coconut trees,” she said.
In recent calamities hitting the country, the farmers were given assistance through the introduction of intercropping. Maglaya said that typhoon Pablo led to the discovery of hot pepper which it marketed “hot Pablo” because of the high demand in dried and powdered forms. This variety of pepper produced in intercropping on lands hit by typhoon Pablo.
