Fruit and Vegetable in Philipines

8/11/2019 Fruit and Vegetable in Philipines

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Human Resource and Shared Services

By: Francisco X. Lorenzo8-10 September 2010

Hong Kong, China

Fresh Fruit Exports

from the Philippines

The Lapanday Foods

Opportunities


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Outline

1. The major fresh products of the Philippines and how they performin the market Banana Pineapple Mango Other promising crops which could be winners in the export market

2. Major market challenges of Philippine fresh produce in the Asianmarkets competition with other fruits competition with other countries competition among Philippine based companies

3. Market trends/changes in the past 10 years of the Philippine FreshProduce industry

4. Sharing Lapanday's experience from being a grower for themultinationals until transforming to become a leading global player.

5. Our Seed-to-shelf philosophy6. Conclusion


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Bananas

The major fruit export from the Philippines

Number two exporter in the world

Dominates most Asian Markets Worth $250 M in Export Revenues

Creates and Maintains 200,000 Jobs

An Estimated 60,000 hectares planted


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Bananas

Average Growth of 6.2 percent per year


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Philippine Pineapple Exports

Second largest exporter of Sweet GoldenPineapple

Estimated 25,000 hectares planted

Philippines is the 3rd largest exporter ofpineapples

Fresh Exports shifted from the Smooth

Cayene variety to Golden Sweet MD2 The Philippines Dominates major markets

in Japan and Korea


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Pineapple Exports from the

Philippines


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Mangoes


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Share of 2008 Mango Exports

Source: Philexport


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Mango Developments

China allows eight companies to exportmangoes

Australia accepts mangoes from DavaoSur

Taiwan is reviewing the quarantineprocedures for mangoes from thePhilippines


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Other Promising Fruits for

Export Papayas

Avocado Dragon Fruit

Other Banana Varieties

Durian Mangosteen


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MAJOR MARKET

CHALLENGES OF PHILIPPINEFRESH PRODUCE IN THE

ASIAN MARKETS


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Philippine Major BananaMarkets

3836

12 11

1 2

0

5

10

15

20

25

30

35

40

Japan ME China Korea Russia Hong Kong

% by Volume


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Philippine Major FreshPineapple Markets

66

21

9

2 20

10

20

30

40

50

60

70

Japan Korea ME China Russia

% by Volume


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Major Asian Markets forPhilippine Fresh Fruit Exporters

Japan : Mature

Korea : Shifting

Singapore: Growing Hong Kong: Growing

China : Growing

Middle East: Growing


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Other Competing Fruits

Domestic production: bananas and localfruit

Summer fruit Temperate and Subtropical Fruit

Bananas and Pineapples can provide a

whole year supply.


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Challenges at the MajorMarkets

Shift from traditional wholesaler-supermarket set up

Consolidation of supermarket chains

Growth of convenience store chains

Growth of the hypermarket chains

Entry and consolidation of theMultinational supermarket chains

Global Sourcing


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Competition with other countries

Bananas: Japan Market: Ecuador and Taiwan Korea: None

Middle East: India China: Domestic productionPineapples (Sweet Variety) Japan Market: None Korea: None China: Domestic production


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Share of Banana Exports

Source: Unctad FAO Statistics

2002-2006


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Competition Among Philippine BasedCompanies

Dole is the top exporter of Bananas fromthe Philippines.

Followed by Del Monte, Chiquita Unifrutti,Sumitomo and Lapanday

Other small exporters sector is growing,

though it has many challenges to face.


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Trends and Changes to Philippine FruitIndustry

More independent and small bananagrowers

More independent buyers, consolidators

Container space availability

Reducing Tariffs

Non-Tariff Barriers More affluent and discriminating

consumers


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Lapandays Transition from Grower to aGlobal Player

Started as Grower for Del Monte and thenChiquita

Operated large farms and managed a smallgrower program.

Opportunity was found in the class B market forChina.

The major barrier to be a market player at thattime was shipping the shipping limitation


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The Solutions Lapanday Took

Built a state of the art cold store to hold fruits for2 weeks

Started a vessel rotation to China every two

weeks Planted new areas for the China Market

Established special technical and quality groups

Penetrated the high quality demandingJapanese market.

Continued plantation and market expansions


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WHO ARE LAPANDAY FOODS?

The Philippines leading independent Banana company

24 plantations, 5,600 hectares of Banana & 550 hectares

ofPineapple production

4,700 employees

Production 23 million cartons of Banana per annum

Production 2 million cartons of Pineapples per annum

12% of Philippine export banana production

Tissue culture laboratory and extensive R&D and nursery

facilities

Plastic and carton factories with integrated

recycling programs


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1,500 pallet position cold storage & pre-cooling

facility

Private port, cold storage and loading piers

5 reefer ships on time charter serving Japan, China,

South Korea, container service to the Middle East

and South East and Northern Asia

Sales in 13 countries in Asia and the Middle East

with sales offices in Hong Kong, Singapore & Tokyo

The Philippines leading provider of Private Label

Brands

Production contracts with Fresh Del Monte

Serving the multinational brands as a contract

grower and packer since the 1970s

WHO ARE LAPANDAY FOODS?


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PRODUCTION AREAS

Banana and Pineapple

production is based on

the southernmost

Philippine island of

Mindanao

The city of Davao is

the regional capital and

it is from here that

Lapanday exports to

Asia and the MiddleEast


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PRODUCTION AREAS

Farm Location map


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Regular Cavendish and high brix Highland

Cavendish varieties are available year round

Choice of 4kg, 7kg, 13kg or 18kg carton

packs

4-9 hand pack, cluster pack, prepackaged

consumer packs options

Lapanday brands Aloha, Estrella or Mabuhay

or packed under customers own brand

Reefer ship service to China, Japan, and

sometimes to Korea

Weekly container service to ports across

Asia and the Middle East

BANANAS FROM LAPANDAY


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PINEAPPLES FROM LAPANDAY

Sweet tasting hi-brix hybrid pineapples marketed under the Honey

Pines brand

3 times the vitamin C of regular pineapples

High external shell color, long shelf life and year round production

650 hectares of production

2010 volume availability 1.8 million cartons

12kg & 18kg cartons available in count sizes 5-18. Fresh sale and fresh-

cut selections


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QUALITY ASSURANCE FROM

LAPANDAY

Lapanday has invested heavily in researchand agri-technology. Advances soil and leafanalysis testing facilities and a research teamclosely monitor soil fertility, plant nutrition, andpest and disease management in the

plantations.

Lapanday operates the Philippines largesttissue culture laboratory, micro-propagating upto 1,000,000 new disease free plants everymonth for its plantations

ISO, SQF and HACCP practices wereinstitutes in 2003 and guide Lapandaysproduction and packing practices


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QUALITY ASSURANCE FROMLAPANDAY

Surveyors conduct field inspections in conjunctionwith plantation managers. Weekly quality reportsare circulated throughout senior managementensuring rapid response.

Inspectors operate in each of the packing houses

ensuring product quality compliance meetsinternational standards set for each market

A third and final inspection tier exists in the loadingports with all product subject to final inspectionbefore export clearance. Inspectors are alsostationed in the major markets and undertakearrival inspections

Lapanday provides to its customers qualityassurance from seed to shelf


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Traditional Delivery Channels forBananas

Multinational

Brand only

provided the

country

market andbrand name

The product Changed hands

up to seven times before

reaching the customer


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Lapandays Marketing Set-up in

the 2000s

Ripen and

deliverImporter Wholesaler alsoprovides buffer volumes

for the supermarkets

Product Changes hands

only three times to

reach the customer


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Key to Lapandays Seed toShelf Program Have sufficient Volumes Grow with your customers requirements Operate and managed plantations

Direct grower sources, no consolidators Superior quality as good or better than the

Regular brands Flexibility in product presentation

Attractive pricing Reliable shipping arrangements Going direct to the market


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Thank You !Francisco X. LorenzoSales and Foreign TradeLapanday Foods Corporation+63 82 234 9003

[email protected]

Documents

Fruit and Vegetable in Philipines