Tuesday, July 05, 2005

Banana chip exporters urged to adopt single brand

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Mindanao banana chip exporters are being urged to band together and create a single brand for one of the region’s emerging export winners.

“What we are proposing to do for Mindanao banana chip exporters is similar to what Norway did for its popular Norway did for its popular Norwegian salmon. Norway created a standard for its salmon exporters and branded it as such for all its shipments worldwide.

It created a market for its product because having different salmon products with a Norwegian Salmon stamp distinguished them from other producers and at the same time established its brand as something to be reckoned with,” said Agnes G. Luz, export market development team leader of growth with Equity in Mindanao 2 (GEM 2).

The USAID-funded (United States agency for International Development) GEM 2 extends technical, capacity building and marketing assistance to various groups such as farm producers that seek to establish markets overseas.

The study shows that the global market for processed fruit such as banana chips has grown into a billion-dollar market as consumers worldwide are leaning towards more healthy food.

Thus, global sales for more natural and organic food is expected to reach $100 billion in 2008 with major markets for premium-priced organic products such as European Union members Germany, the United Kingdom and France, US and Canada, Japan, Singapore and China, projected to grow at a clip of 20 to 30 percent annually.

On the other hand, the Philippines has over the years, been developing its banana chips industry. Its raw material for banana chips is the cardava or plantain banana variety which is processed in various product forms such as fried, dried, vacuum fried and vacuum freeze dried chips and as ingredient for breakfast cereals and trail mixes.

Majority of the country’s production comes from Mindanao, accounting for 90 percent of output. There are about 15 major companies in the region with average production capacity of 580 metric tons per day.

Industry data show that the country’s annual banana chips country’s annual banana chips exports averages close to $80 million with the biggest shipments going to the US, Taiwan, Hongkong and mainland China.

In recent years though, China has emerged as one of the fastest growing markets, which is why GEM 2 is assisting producers to improve the quality of banana chip exports to China.

“It is worth noting that in major cities in China, Philippine banana chips are considered better in quality compared better in quality compared with banana chips from Thailand, the other major source of banana chips. Out chips are more acceptable because of their appearance, moderate sweetness and the breakage is good,” said Luz.

GEM 2 has been urging local producers of banana chips to capitalize on the good reputation of Philippine banana chips.

“To really capitalize on this some manufacturers and repackers indicate Philippines on the packaging. We should take that to a higher level with producers banding together and coming up with a distinct Mindanao Philippines brand.”

“Exporters have to increase their bargaining power by coming up with one brand, they should stop competing against each other and market their products as a Philippine product. Since it is preferred by the market, they can dictate better prices, improve their profitability and even reduce their cost through joint marketing,” stressed Luz.

To further establish the Philippines, particularly Mindanao as the primary producer of banana chips, GEM 2 is also encouraging producers and exporters to intensify measures to have their product acquire international food safety standards.

Moreover, production of cardava banana should be increased to keep pace with intensified efforts by Thailand to raise its volume of exports.

Industry players earlier warned that Thailand is bent on wresting the Philippines’ dominance in the lucrative banana chip exports market, with its government extending strong financial and technical support to its farmers.

In contrast, small Filipino banana farmers, chips processors and exporters are struggling to cope with various concerns, including cutthroat competition to inadequate credit access and lack of cost-efficient technology.

“These are valid concerns which we hope we could help exporters address by assisting them to organize themselves so that a concrete plan of action could be carried out,” said Luz.


Coco farmers’ incomes to improve with biodiesel
GIL M. ABARICO, April 10-Manila Bulletin

DAVAO CITY – The government sees higher incomes for 3.5 million coconut farmers when the coconut methyl ester (CME) is fully utilized as petroleum diesel fuel enhancer.

In a dialogue with Davao media, Engr. Roberto Ables, biodiesel program officer of the Philippine Coconut Authority (PCA), said the country has a coconut growing zone covering more than 3.1 million hectares of agricultural and planted to 324 million bearing and non-bearing coconut trees. He said 68 out of 79 provinces are coconut areas.

Based on a four-year inventory of production capacity (in 1,000 MT) of raw materials from 1997 to 2001, Mindanao is leading with 1,438.33 followed by Luzon with 605.41 and Visayas 439.54.
Under the country’s coconut industry, copra production is recorded at 2.4733 million metric tons, CNO production at 1.484 million metric tons and CNO local demand at 460,200 metric tons.

The projected annual demand for coco-biodiesel are as follows: One percent, 0.070 billion liters or 70,000 metric tons (MT); two percent, 0.140 billion liters or 140,000 MT; three percent, 0.210 billion liters or 210,000 MT; four percent, 0.280 billion liters or 280,000 MT, and; five percent, 0.35 billion liters or 350,000 MT.

Ables said there is cost-benefited in using CME.

He said it could deliver an average increase of more than 17 percent in kilometers for every liter of diesel consumed and could be translated into savings from P0.916 to P2.85 for every liter of diesel fuel.

In the PCA project on CME-PDF quality enhancer road project, Ables said several mechanical aspects were undertaken.

He revealed that project teams conducted baseline date analysis on the test vehicle used. It also conducted city and country road-run tests and free acceleration smoke emission tests.
He said they also conducted top over hauled inspection on the test vehicles after 5,000 and 20,000 kilometers on road test.

He bared that the mechanism was made in order to establish the viability of CME as a PDF quality enhancer for the reduction of air pollution in line with Republic Act 8749 and for better engine performance as well as increased utilization of coconut oil in the domestic market.

ROCEL C. FELIX, July 3, 2005-Philippine Star

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