BOI working on food industry roadmaps


The Board of Investments (BOI), the industry development and investment promotions arm of the Department of Trade and Industry (DTI), is set to complete the government’s industry roadmaps for carrageenan, processed shrimps, and dried mangoes—the processed food industry’s sub-sectors.

The BOI is organizing the last leg of industry roadmap workshops for said sectors this November in Cebu and Davao.

The industry roadmap workshops for carrageenan, processed shrimps, and dried mango sectors are now ongoing [November 4 to 6, 2015] at the Harolds Hotel in Cebu City, while the cacao tablea industry workshop is scheduled on November 13 at the Grand Men Seng Hotel in Davao City.

Cebu City was chosen as the venue for the workshops on carrageenan, processed shrimp, and processed mangoes, given its strategic proximity to most of the industry’s major players.

Most manufacturers of these products are also based in the area.
Davao City was chosen for the cacao sector, as the Davao accounts for about 80 percent of the total national production of cacao tablea.

At least 40 participants from each sector are expected to attend the workshops.
The roadmap for the condiments/sauces industry, meanwhile, was already completed and finalized in September.

“These workshops are necessary to validate the data contained in the preliminary industry roadmap drafts presented at the BOI last July,” said Nestor Arcansalin, BOI Director for Resource-Based Industries Service.

“Separate workshops will have to be conducted, as it is deemed important to further consult the respective stakeholders, knowing that each sector is different and with varying stages of maturity as an industry,” he added.

The BOI workshops will tackle important components of the sub-sector roadmaps, such as strategy setting, targets planning, action programs identification, as well as implementation and monitoring.

Since May 2014, the US Agency for International Development-Advancing Philippine Competitiveness (USAID-COMPETE) has been providing technical assistance in the formulation of the roadmaps for the mentioned processed food sub-sectors.

The funding agency applies a two-stage approach. The first stage is the completion of the Rapid Industry Appraisal (RIA), while the second is the formulation of a full-blown industry roadmap based on the RIA findings.

In July-August 2014, RIAs for these sub-sectors were submitted and presented to the BOI.

In August-September 2014, BOI and USAID-COMPETE worked on finalizing the work plan for the conduct of benchmarking analysis, and findings from these will form part of the full-blown roadmaps.

From September 2014 to July 2015, USAID-COMPETE worked on drafting the roadmaps.
The draft roadmaps were presented to BOI and industry stakeholders last in July.

But due to limited time and participation of several stakeholders outside Manila, it was agreed that separate workshops be conducted to further consult the stakeholders and finally complete the roadmaps.

Recognizing the processed foods and beverage industry’s contribution to the country’s economy, the government aims to push for the industry’s competitiveness.

Through the BOI’s Industry Roadmapping Project (IRP), an industry roadmap is crafted to chart the direction, goals, and strategies the industry will be heading to sustain development and growth.

The Department of Science and Technology (DOST), through its Philippine Council for Industry, Energy and Emerging Technology Research and Development (DOST-PCIEERD), noted that the food manufacturing industry is one of the largest and most dynamic industries in the country.

Latest data from the Philippine Statistics Authority (PSA) indicated that food manufactures and beverage industries comprised almost half of the total manufacturing gross value added in 2014.

In 2012, almost half of total manufacturing establishments in the Philippines are in processed foods/beverage production, employing more than 270,000.

Processed foods and (non-alcoholic) beverage exports grew at an average rate of 14.5 percent in 2006-2014.

Based on linear estimation, processed foods and (non-alcoholic) beverage exports might have reached $2.4 billion (freight-on-board or FOB) in 2014, which is around 5 percent of the country’s total merchandise exports of $61.81 billion (FOB).

The US, Japan, and Korea are traditionally the biggest export partners of the Philippines, but between 2006 and 2014, it is observed that the share of these traditional export markets declined, while the share of “other markets” significantly increased from 21 percent in 2006 to 59 percent in 2014.

About 99.6 percent of food manufacturers are considered as micro, small, and medium enterprises, according to data from the DOST-PCIEERD.

Most processing plants are located in the National Capital Region, Region IV and Region VII while there were also a growing number of food manufacturers locating in Regions IX, XII, ARMM and CARAGA, which cover the Mindanao area. The abundance of raw materials such as fresh fruits and vegetables and fishery products led food processors to relocate in these regions.


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