DA’s Agri Showroom!
For most Filipino agri-entrepreneurs, entering the export market is both a great opportunity and a risk. There are great profits and opportunities in the export market. For the past three years, Philippine agricultural exports have been expanding by an average of 12.28%. In fact last year Philippine agri exports were valued at US$3.35 billion or 27.12% higher than in 2006. Coconut oil remained as the country’s top agricultural export. This comprised about 21% of the total agricultural exports. Major markets for coconut oil were United States of America and Netherlands.
While the export market offers very good opportunities it also poses some challenges to agri-entrepreneurs. One of these challenges is how small to medium agri-entrepreneurs can comply with the regulatory standards of their target markets. Another is the lack of market research to help them get data on the consumption patterns of their intended markets. But the most important problem they face is the lack of assistance in promoting or creating awareness about their products abroad. In this light, the Department of Agriculture, under Secretary Arthur Yap, has established the Agricultural Export Promotion Showroom last year.
Initially, the showroom was just as the name implied-a showroom for agri-entrepreneurs to show their wares. However, after a while, the people seeing the showroom asked if they could buy the products exhibited. This led to the reformatting of the showroom under the Philippine Agricultural Development Corporation. From just a mere showroom, the place was turned into a store/showroom where the goods exhibited are also sold at discounted prices.
Since its inception, the DA showroom has helped increase visibility for Philippine agri-products. It has served as an invaluable part of the plan by acting as a consultant, showroom, and as a one-stop for agri-entrepreneurs to get information on penetrating the export market. Since its establishment, the DA showroom has received several foreign dignitaries who were impressed by what the country has to offer in terms of exports. Secretary Arthur Yap himself has taken an active approach in promoting the country’s agricultural products by bringing the dignitaries to the showroom.
Currently, there are around 800 products from around 80 companies featured in the showroom. Most of these companies are small to medium enterprises or provincial cooperatives. The showroom accepts products for consignment provided- they fit certain categories. First, the products must be Philippine-made and of expert quality. Second, they must have approval papers from the Bureau of Food and Drug (BFAD) and the Department of Trade and Industry (DTI). Meeting these categories, the entrepreneurs can leave their products for sale at a much lower price.
The DA showroom also promotes Philippine products through participation in international trade shows. It does this by pooling potential exhibitors together and organizing the show. The government and the exhibitors split the cost with the government providing the space, venue and the suppliers provide the design and products. These trade shows are all part of the DA’s mandate to promote Philippine agri products. It is also an invaluable way of allowing suppliers to gain international contacts.
The DA also help’s exporters by advising them on the relevant data about possible client countries. Things like product standards, regulations, consumption patterns are given to the exporters to give them a competitive edge. Also they have tie ups with other agencies like the DTI and BFAD. These agencies help recommend possible improvements to the product in terms of packaging, processing, marketing, etc. The DTI can also recommend participants in its One Town One Product (OTOP) program to participate in the showroom.
Although the DA agri-showroom is only seen in the head office, there are plans of replicating this through the creation of satellite showrooms in their regional offices like Southern Luzon. DA officials are also planning a new concept called the “agricart”. These agricarts would be placed in areas like airport terminals, bus terminals and train stations. The carts will carry some of the products exhibited in the showroom which are appropriate to the particular area. If this project gets patronized by consumers, the carts might be franchised.
Since its inception last year, the DA showroom has gone a long way from being effective a mere exhibit, to a proactive and effective way of promoting the best of Philippine agri-export products. By giving a better view of the myriad of interesting and unique agri-products available, the showroom could be a catalyst in the development and expansion of agri-producers not only for export but also for the discriminating taste of our local market.
