Thursday, April 12, 2007

Australia, Russia opens new market opportunities for Philippine food

The plan of Australia to lift its restrictions on Philippine banana imports as well as Russia’s new investments in shopping and retail centers bid new opportunities for local food exporters, reported the Center for International Trade Expositions and Missions (CITEM).

“To capture a chunk of this global demand, the Philippines must strategize on how to seize these emerging opportunities and keep an eye on the current and future market trends,” said Trade Assistant Secretary Fe Agoncillo-Reyes, executive director of CITEM, the export promotion arm of the Department of Trade and Industry.

Industry reports point to Australia removing its restrictions on businesses, including its long-standing ban on Philippine banana imports.

In Europe, the projected 6.8 percent growth in the Russian Federation and Moscow’s rising consumer income and demographic figures translate into export opportunities in global agribusiness.

Russia offers exporters a huge market composed of 143 million consumers, majority of which reside in highly urban areas such as Moscow and St. Petersburg. Moreover, Russia’s retail market, Agoncillo-Reyes said, is greatly influenced by the Russian consumers’ high purchasing power.

Industry reports say that the average wage for Moscow middle-income buyers is US$1,200 whereas for other region’s buyers it is US$400. There is also an increasing demand for quality imported products especially in the food sector with annual sales reaching as much as US$800 million.

Moscow’s largest food retailers like Erekryostok, Seventh Continent and Ramstor plan to open as many as 20 stores. It also plans to invest $3 billion in renovating existing shopping facilities, including well-equipped modern food stores over the next 20 years.

To address this growing market opportunities, the DTI through CITEM will hold its 4th International Food Exhibition (IFEX) Symposium (May 21-22, Philippine Trade Training Center) to update exporters on food safety and regulatory compliance in the Australian and Russian food markets.

The symposium is part of the IFEX 2007 trade show which aims to update Philippine companies on current international trends.

Industry expert from the Australian Quarantine and Inspection Service (AQIS) and Ms Anastasia B. Shtokolova, assistant director for Foreign Firms Accreditation of the Chamber of Commerce and Industry of the Russian Federation will be the speakers for the said symposium.

The DTI, through CITEM and the Department of Tourism (DOT), met with Russia’s Chamber of Commerce in 2006 during the promotion of the DTI’s Restaurant Project to entrepreneurs in Russia and the DOT’s Kulinarya Program.

In 2005, Philippine exports to Russia increased by 96% reaching US$36.34 million from US$18.58 million in 2004. Top exports for 2005 were carrageenan, desiccated coconut, bananas, pineapple, coconut oil, and banana chips.

Philippine food products that are being promoted to Russia are fruits juices, instant noodles, preserved/dried fruits, canned products (frozen crabmeat), and snack foods.

For information regarding the IFEX Symposium, please contact CITEM’s Agrimarine Division, Bernie Laurente, project coordinator, at 831-1282; fax: 832-3965 and email:
agrimarine@citem.com.ph or log on to www.ifexphilippines.com.