Trade shows give market insights, bring together potential partners and SMEs --food exporters

“Every show that local companies attended locally andabroad is always successful, not only in terms of the sales generated, but also in terms of the new business contacts, market insights, technological info, valuable experience, and new friendships gained,” saidLucky Fortune Foods Corp. CEO Eduardo Escaño. "Accepting the invitation of government to join foodexhibits abroad should not be missed.”

Food exporters recently identified the key importance of joining trade fairs and missions and the market opportunities they presented in the Market Information Exchange (MIX). The event serves as a knowledge-sharing platform on the results of the international participation of Philippine food exporters in selected trade fairs and business missions, held from the second half of the year 2006 to the first half of 2007. These include the Philippine Food Festival in (Russia), Salon International de l'Agroalimentaire International (Paris), Food Marketing Institute Show (Chicago, USA),Food Roadshow to the Middle East UAE Kuwait, Qatar, Bahrain), Thailand Food Exhibition, Food Business Mission (New Zealand), and Taipei Food Show.Some of the key markets discussed during the forum were New Zealand, Russia, Middle East and the United States.

“New Zealand’s feature as an English-speaking country having similar business practices with the US makes it a good market for local food companies. And because we can adapt to its food regulations, we are now exporting fresh mango, banana, pineapple, and papaya products to them for years,” explained Roberto Amores, President of Hi-las Marketing Corporation and Director of PHILEXPORT.

According to Annie Moreno, Export Manager of theRepublic Biscuit Corporation, “Local manufacturers can join international trade fairs on their own but if they want to maximize their participation, they should join CITEM and DA. These government agencies have partners abroad that will help them in terms of business-matching, market development strategies, and extensive promotion.” Last year, 1,876 small and medium enterprises (SMEs) generated US$ 281 million export sales by attending 32 CITEM-organized participation in trade fairs and missions, opening up new market opportunities for these local companies.

NZ, Russia, ME, US eyed as new key markets for RP food exports

The government and the private sector are looking at New Zealand, Russia, the Middle East and the United States as new key markets for the country’s food exports.

“New Zealand’s feature as an English-speaking country having similar business practices with the US makes it a good market for local food companies,” Roberto Amores, president of Hi-las Marketing Corp. and a director of Philexport, the umbrella group of the country’s exporters, told participants of the recently concluded Market Information Exchange (MIX). He said the Philippines is currently selling fresh mango, banana, pineapple and papaya products to New Zealand because of the Philippine companies’ ability to adapt to its stringent food regulation.

The Russian food and beverage sector was also identified as an area of opportunity given the industry’s annual growth rate of 20 percent. In fact, it is expected to grow into a 350 billion euro industry by 2010. Russia has 2,600 supermarkets, 92 hypermarkets, and thousands of convenience stores where Filipino food products can be displayed and sold.

The Middle East, on the other hand, has been identified as one of the most interesting world markets because of its $12 billion food industry and the million-strong overseas Filipino workers (OFWs) in the region.

In the United States, the specialty foods’ retail market size is now valued at $34 billion, growing at 15.1 percent, primarily through supermarkets and mass merchants. Major food trends in this country include convenient foods with extreme portability and one-handed eating/drinking, foods with Asian flavors, and foodstuffs with various health benefits.

Based on industry statistics, the food sector contributes in boosting Philippine export revenues, creating jobs, and helping grow the economy.

Last year, local food exports reached $1.82 billion, a 10.4 percent increase from $1.65 billion in 2005. The country has 3,000 food and beverage establishments, employing a workforce of about 188,000.

In an attempt to further grow the food export industry, the Center for International Trade Expositions and Missions (CITEM), the trade promotions agency of the Department of Trade and Industry (DTI), together with the Philippine Trade Training Center, Bureau of Export Trade Promotion, and the Department of Agriculture (DA), organized MIX, a knowledge-sharing platform on the results of the international participation of Philippine food exporters in selected trade fairs and business missions.

Source:

The Philippine Star, 17 August 2007, Business section (Ma. Elisa P. Osorio)

High-end niches provides new opportunities to Philippine outsourcing providers

The Filipinos’ exceptional customer service mentality gives them the key advantage in the areas of HR, outsourcing management, customer service, back office work, and high-end niches such as legal transcription and IT, according to Neil Elias, Philippine directorfor LogicaCMG global service delivery center.

Over the next few years, Elias said, their company istargeting a multi-thousand operation in the Philippines for its IT, HR outsourcing, and office BPO work like data transformation, financial processing,and finance and accounting.

“Increasingly, we see corporations looking for full service solutions spanning IT applications and task management. The largest BPO companies in the world, notably IBM and Accenture, and in Europe – LogicaCMG and Capgemini are all full service providers,” said Elias. “The major growth areas in BPO are financial services, back office work, HR management, and finance and accounting and will increasingly be global and large scale.”

Elias noted that in five years, the Philippine ICT sector has come from nothing to a quarter million employees. “This success owes a lot to the work of organizations like the Philippine Business Processing Association and CITEM, the export promotions arm of the trade department. Attracting customers to thePhilippines is perhaps the best promotion strategy. Conferences like e-Services Philippines can be a major benefit especially if they can be combined with company visits.”

Local tuna highly regarded in the US market

Did you know that the Philippines is among the top ten exporters of tuna worldwide? Yes, this country is the world’s seventh top tuna exporter, according to FoodMarketExchange.com, the most popular online marketplace for food industry players around the world.

In fact, 37 percent of our marine exports last year were tuna products valued at US$143 million, including canned, fresh/frozen, and dried/smoked tuna.

This good news, plus the Philippine tuna’s niche in the international market, drives many of our local companies to promote their tuna products in our priority markets such as the United States. Just recently, Alliance Tuna International—one of the leading canned tuna manufacturers in our country—promoted their products in Chicago, USA, through the Food Marketing Institute (FMI) Show 2007.

FMI Show is the largest and most comprehensive food industry event in North America, which showcased not only tuna or other fish products but also fresh and processed food items like wines and juices, condiments, fruit preserves, healthy snacks, ready-to-cook meals, and fresh/dried fruits and vegetables.

“The show gave us the chance to meet our existing customers in the United States. We were also able to further promote our canned tuna products which are under private label or buyer’s brand,” says Randolph Rodriguez, assistant vice president for Marketing of Alliance. He also mentioned that they effectively reached around US$600,000 worth of sales under negotiation during the fair.

Young but ready tuna company

Alliance Tuna International Inc. is the only publicly listed tuna company with a daily capacity output of 120 metric tons a day. It started manufacturing and exporting tuna since March 2004.

In just three years, it was able to supply its pre-packaged products to 42 countries, where the US, Germany and United Kingdom are its top export markets. With over 100 label products under Alliance, its services include customizing ingredients, canning and labeling.

“Yes, the US is already one of our very important clients but joining the FMI show helped us to see the new trends and technology in this market, thus giving us information on how to attract more potential buyers,” Rodriguez explains.

Acording to Rodriguez, “Tuna is an excellent source of protein, nutrients like magnesium and potassium, and of course, the helpful omega-3 fatty acids. Knowing these health benefits, Alliance makes sure that from preparation to loining and packing to shipping, the quality and freshness of the tuna are preserved,” he adds.

In order to ensure the safety of its products, Alliance boasts of the accreditations that it gained from several international institutions, namely: US Food and Drug Administration (FDA), European Union, European Food Safety Inspection Service (EFSIS), Earth Island Institute, and Bureau of Fisheries and Aquatic Resources (BFAR). Alliance is also proud to note that it is HACCP, Halal, Kosher and International Food Standard certified.

Beyond expectations

There are other factors that make Alliance Tuna stand out in the sea of local and international tuna manufacturers.

Its can manufacturing plant is one of the country’s most modern facilities, reassuring the company’s commitment to yield incomparable products. Its three-piece can line is capable of producing 603 different can sizes at a rate of 150 cans a minute, while the two-piece can line is capable of producing 307 diameter cans at a rate of 180 cans a minute.

Moreover, its processing plant is strategically located in the Southern part of the country, particularly in General Santos City, which is known as the “Tuna Capital of the Philippines.” It is adjacent to the Western Central Pacific Ocean, where 48 percent of the world’s tuna is harvested.

But beyond these numerous advantages, Alliance Tuna remains humble. “The only thing that makes Alliance different from other manufacturers of canned tuna would be our dedication and commitment to our customers to serve the best product at the best price possible,” Rodriguez says.

Other FMI participants

Bsides Alliance, six local food companies joined the FMI Show in Chicago, USA. They are: Mega Fishing Corp. (sardines in canned, pouched and bottled sardines), Oceanic Exports Inc. (fruit preserve, noodles, fruit wines, food supplements), Oriental Synergies (tropical fruit wines), RFM Corp. (dry baking mixes, flour, other baking, fruit drinks and teas, milk, ice cream), See’s International Food Manufacturing Corp. (variety pack chips, dried fruit), and Superstar Coconut Products Co., Inc. (bread crumbs and mixes, baking coconut and toppings). During the event, the Philippine delegation generated US$3.11-million export sales.

The first Philippine participation in the FMI Show is organized by the Center for International Trade Expositions and Missions (CITEM), the export promotions agency of the Philippine Department of Trade and Industry.

For more information on the Philippines’ participation in the Chicago FMI, please call CITEM, Agri-Marine Division at 831-1282 or e-mail agrimarine@citem.com.ph.

Source:http://www.yehey.com/

The Manila Times, 30 July 2007

RP among top 10 destination for outsourcing operations

MANILA, Philippines -- The Philippines has been cited by Frost and Sullivan as among the top 10 destination countries for shared services outsourcing alongside India and Malaysia.

In its most recent global study on Shared Services and Outsourcing (SSO), Frost and Sullivan estimates the global SSO market to be worth $930 billion and predicted that number to grow 15 percent by 2009. Rounding up the top 10 countries are China, Ireland, Singapore, Mexico, Czech Republic, Poland and Canada.

Shared services have become a sub-segment of business process outsourcing or BPO wherein a global company sets up outsourcing operations in one country to take advantage of local skills and other cost advantages.

In the Philippines, several companies like HSBC,CitiGroup, Dell Computer and Safeway have set upshared services centers. Others like IBM and Sykes have moved their SSO operations from India to the Philippines, according to Frost and Sullivan.

The Philippines already specializes in back-office operations for IT and IT-related services, making it an attractive destination for shared services. According to Frost and Sullivan’s estimates, the Philippine back-office industry generated revenues of $180 million in 2005.

India has always figured prominently as a top destination although the study reveals that factors like high attrition rates, rising wages and poor infrastructure are forcing investors to look intoother countries like the Philippines and even China.

Malaysia was also cited as an ideal shared services hub because of its excellent infrastructure and low attrition rates. Dell, IBM and India's Satyam have invested in delivery centers in Malaysia.

In a previous interview, Gerry Clark, regional headfor BPI consulting firm TPI, noted that Malaysia'sgovernment has been doing well in "incentivizing" investors. "Malaysia, however, is attracting end-users and not (third-party) service providers like those in thePhilippines," Clark said.

(inquirer.net/Lawrence casiraya)

Philippines to bring11 design-driven firms at HK Fashion Week

Filipino fashion catwalks into the spotlight as the Department of Trade and Industry brings the country’s top local fashion accessories designers and jewelers in the upcoming Hong Kong Fashion Week 2007, 10–13 of July at the Hong Kong Convention and Exhibition Centre.

Eleven local design companies will feature the Philippines’ finest in costume jewelry (ABS Export International, Ibarra Designs LTD., Inc., Selections Export International, and Unijel Int’l Trading, Inc.); sterling silver, fine and high-fashion jewelry (A. Suarez Sterling Corporation, Michelis Incorporated, Sanara Inc., and Sterling Gifts, Inc.); and fashion jewelry, accessories and leather goods (Fina Ornamentalia Crafts, La Cora Creatives, Inc., and Talimaya Gifts — Fashion Accessories Corp.).

“Hong Kong has been the center for fashion and creative design in the Asian region for years. As an aspiring fashion destination, the Philippines should learn from their Fashion Week, update ourselves with the current trends and get a feel of the pulse of the industry,” said Trade Assistant Secretary Fe Agoncillo-Reyes, executive director of the Center for International Trade Expositions and Missions (CITEM), the export promotion arm of the DTI.

Hong Kong’s fashion exports industry is steadily growing posting to HK$75.9 billion as of June 2007. Its three major markets all have positive growth rates: the US (11%), the UK (13%) and Germany (21%).

Annually, the fair attracts buyers from over 25 countries including target markets from Asia, Europe, Australia and North America, making it a convergent and conducive venue for business transactions and trade.

The trade fair also demonstrates the country’s ability to offer one-stop service, highlighting Hong Kong’s production and distribution capabilities and, more importantly, their creativity and marketing skills.

“We’re bringing the Philippines’ finest from the fashion accessories and jewelry industry because it is an excellent opportunity to showcase the Filipino brand of quality and creativity and meet our counterparts from other countries who are potential trade partners,” Agoncillo–Reyes added.

This venture to Hong Kong is in line with the DTI’s ongoing efforts to penetrate the vast trade and market opportunities presented by Hong Kong’s burgeoning fashion industry. Last March, the DTI brought six local jewelers to the Hong Kong Jewellery Show.

Out of the superpowers’ shadows

Anino to spearhead Filipino interactive entertainment industry

“The global market for games outsourcing is set to grow to US$2.5 billion by 2010. That is 40 percent of the total game development spending,” said Niel Dagondon, president of Anino Entertainment, a local interactive entertainment company. “The Philippines should grab a slice of that pie.”

China and Vietnam are leading the way in Asia with the former, which started in 1996, cornering the Japanese outsourcing needs and the latter silently steering the global gaming industry towards competence. The Philippines’ gaming sector started in 2002 with Anino Entertainment at the forefront.

Now, it is time to press the start button on stage 2 of Philippine game development industry.

“Some foreign companies outsource only parts of a particular project. They give us a gun model and ask us to create 50 more variations—in video games you can never run short of weapons! We’ve also done characters’ clothes.”

One emerging subsection of game development is “serious games”. Niel said, “Imagine a real estate company wanting to market its condo units to their audience. Anino can make a 3D environment wherein interested customers can walk through the rooms via a computer. They can change wallpapers, place whatever furniture they want, change color schemes WITHOUT the hassle of having to do the actual physical work.”

Simply put, “serious games” are non-entertainment application of game development software. “It’s being done in the US presently. Local companies are starting to pick up and Anino is once again pioneering it.”

Anino so far has created models for a shampoo product and a department store using “serious games”.

Anino Entertainment made waves in the local gaming industry when it released the first Filipino-made computer game “Anito: Defend a Land Enraged” in 2003.

In February this year, Anino Entertainment’s “Anima Wars”, a mobile phone-based video game using 3G technology, bagged the “Best in Connectivity Award 2006” at the International Mobile Gaming Awards held in Barcelona, Spain.

The company is run by Filipinos headed by its president, Niel Dagondon, and has a partner studio with offices in Canada, US, UK, and Ukraine on the lookout for possible projects in the region. Its target markets include North America, Western and Eastern Europe and Australia.

Anino Entertainment employs 50 of the country’s 250 game developers.

“We want to double that,” Dagondon adds. “We want to be able to handle more subcontracts and projects. We can’t always just turn them over to China and Vietnam whenever we can’t accommodate.”

The Philippines, as a business processing outsourcing destination, presents no language barriers with an annual pool of 380,000 English-speaking college graduates. The games development sector is one of the IT and IT-enabled services that the country is promoting under the Center for International Trade Expositions and Missions (CITEM), the export promotion arm of the Department of Trade and Industry through the first Philippine participation in the Asian Games Developers Summit in Singapore
(8-9 September) and e-Services Philippines 2008 (11-12 February 2008).

Dagondon further said that the inherent creativity and cultural affinity to the East and West as Filipinos’ main tools in competing for its rightful place in the game development outsourcing industry.

Outsourcing is already common. It is estimated that 60% of game studios from the major markets outsource today; and still, this figure is projected to rise to 90% by next year.

“Bottom line: we definitely have to start pushing the right buttons if we want any of that outsourcing opportunities,” Dagondon states.