The Plus In Value-Adding
More and more entrepreneurs, both established and newborn, are finding ways to up the competition. Think value-added.
As today’s rate of growth in the number of entrepreneurs continues to increase, more and more small-time businessmen, even the well-known, are embarking into value-adding of existing Philippine products.
While others prosper in the basic buy-and-sell of livestock, poultry and other agriculture products, some farmers and fisherfolk still encounter problems of cost, time, freshness and shrinkage in getting farm goods to their final destination. And most especially, in a tropical country such as ours, farmers get a comparatively smaller portion of the prices for their farm produce at supermarkets and grocery stores.
Foundation for Resource Linkage and Development (FRLD) president Antonio V. Roces said, “Rather than going to wet markets, a growing percentage of households now pre
fer supermarkets; fillets or de-boned over whole fish and ready-to-use pork cuts rather than just pork loins. These are value-added products that are growing in demand.”
Not only does production of value-added agricultural products draw better prices for the fresh produce and livestock farmers, it also provides meal preparation solutions for institutional consumers and end-users alike.
Value-Added agricultural products come from the very simple form of pre-weighed and pre-priced package of vegetables and fruits like carrots, onions or mandarin oranges, celery, or pork, beef, chicken or fish in sanitary trays to the more process-intensive forms of value-added products such as pre-mixed cut-up vegetables like chopsuey, pinakbet and sinigang, or meats that have been sautéed, skewered and prepared and ready-to-grill boneless bangus, fish fillets, de-boned and breaded chicken breasts.
Bureau of Fisheries and Resources (BFAR) Director Malcolm Sarmiento Jr., who has always promoted such advocacy, added, “Another problem is that there are no post harvest facilities in the eastern seaboard that aid our fisherfolk. And it is one of the projects that BFAR would like to propose to any lending institution. We’ve also recently invested on payaws to help the farmers and fisherfolk. What we’re presently doing is we’d turn all these payaws over to the local government where they organize a cooperative. They’ll manage and administer the payaws.
This is really intended for the small fishermen, so they would sometimes allow commercial vessels to come. We’ve also put up payaws in the Pacific of Samar.”
Safeguarding supermarket-goers
Top-notch supplier of poultry and livestock equipment, Belmont-the makers of the wire clips used to seal poly bags of consumable and ready to-cook poultry and livestock products-shares the same insights.
“More and more people are frequenting the supermarkets. They prefer cut-up products now rather than just carcasses. They want ready-to-cook and ready-to-prepare vegetables, meat and chicken,” Belmont’s Marketing Manager Tony Magno added.
They have taken steps to ensure that this brain-child is carried out, further safeguarding the safety of supermarket-goers by launching a new brand of plastic clips to replace the aforementioned.
He said, “The new plastic clips are intended to replace the metal wires supermarkets are using now to close the poly bags used for poultry and livestock products dressed, whole, and marinated-mainly to address the health concerns that some patrons have raised.”
Magno pointed out that metals are sometimes misplaced inside the poly bags, which endanger the health and safety of those who buy them.
These and other products are what have driven Belmont to the forefront of the poultry and livestock equipment industry. For 35 years now, they have constantly spearheaded the production of world-class feeders, drinkers, gas brooders, incubators, layer cages, feed delivery systems, conveyors, elevators, chillers, dryers, bagging systems and other equipment.
Armed with competetive advantage
“Value-adding is coming up with a product that’s not purely agri, not just fresh from the farm, plucked off and just delivered. This will not only give more value to farmers and fisherfolk, but will also arm them with competitive advantage. Value-adding enlarges one’s market,” said Philippine Amalgamated Supermarkets Association (PAGASA) president Steven Cua and this year’s Agrilink chairman.
He continued, “Living up to the name of our show, we’re aiming to tackle issues and topics on how to get supermarkets rely on farmers with the least number of middlemen, as well as the farmers and fisherfolk to get their products through.
We live in a tropical country and the freshness of these products is jeopardized by the heat and other problems in transport and cold chain. These are the considerations in getting the products as fresh as possible to the shelves and to the dining table of the consumers.”
One famous Philippine made product that has jumped on the value-adding caravan is General Santos’ tuna, which are now made into ham, tuna siomai, tuna pasta and tuna salad, among others.
“This is one step that farmers and fisherfolk are now taking, which is more profitable on their end. Instead of delivering the simple tuna we can find in wet markets, they establish connections with those that they can help them transform their products to something more, and healthier as well,” said Cua.
Kamias and calamansi, two of the most celebrated kitchen necessities, are also now in powdered forms-another innovation that housewives and restaurateurs are now gaga over.
Global Partners, makers of these products are proud to say, “Not only is it more convenient for users and consumers, but it’s as healthy as the same kamias and calamansi one can buy in the market. It’s less messy too. You don’t need to squeeze, just spew it out of a container.”
What consumer really wants
The tree of life-the Coconut-is now a premium vodka. Rich Cabael, president of VuQo, the first Philippine-made vodka extracted from coconut said, “This premium vodka is basically an enhanced form of lambanog to raise the alcohol content to forty percent and is packaged in a very elegant bottle and with a creative name.”
The product is prepared and fermented in Quezon where coconuts are abundant. Pretty much all their raw materials are locally sourced there. VuQo is a brainchild that transcends cultures and mixes them at the same time-translating Philippine craftsmanship to worldwide exposure.
Cabael shared, “Besides value-adding, the secret is strategic marketing and branding plan and a clear understanding of what the consumers really want. And the goal of products like ours is to make Philippine-made products timeless and able to withstand the changes in marketing plans and strategies.”
Another product on line is a brand of light spirit wine called Haliya-a premium wine made of Philippine mangoes and duhat, a black plum that’s perfect for drinkers who like the exotic taste.
14 years of Agrilink
The country’s biggest integrated international trade show on agribusiness, food and aquaculture is all geared up to make the 14th year of Agrilink the best to date. And this year, Agrilink and Foodlink, along with Aqualink, the premier aquaculture trade show reaffirm their reputation as the largest and most influential international exhibit of the three sectors with this year’s theme “Value Adding and Market Alliances to Increase Farm Income”.
Non-government organization FRLD, which has organized Agrilink since 1994, has underscored all the sectors’ new technologies, products, services and business potentials in both local and global markets.
As in the past, this annual gathering will feature facilities on post harvest, feed ingredients, feed milling, fertilizers and pest management, publications, research and consultancy, seeds and planting materials, irrigation systems, transport and logistics, waste management, food ingredient and additives, food packaging, food processing, fruits and vegetables, agricultural chemicals, equipment and machinery, dairy products, horticulture inputs, meat products, organic farming and hydroponics, facilities on cooling and storage, animal housing and breeding, animal health and nutrition, aquaculture equipments and inputs, communication and information technologies. Suppliers of fish farm equipment and suppliers, breeding and spawning technologies, aquatic feeds and other industrial marine products will also be in the exhibit.
Accordingly, as in the previous years, there is much to look forward to.
On the first year of Le Club as French Chamber of Commerce in the Philippines, they were able to feature eight companies in the French pavilion of Agrilink; 16 on the second year, and almost 30 on the third. And this year, they promise a much more diverse and interactive set of companies.
Hermelin added, “It has been a good avenue for French and Philippine trade, and we’re looking forward to the same success this year, as we gear up to feature more companies and other issues.”
First-time exhibitor Embassy of Belgium is also going all out. Trade Officer Mia Abela said, “This will be a big step for the economic and commercial representation of Belgium in the Philippines.
We will be highlighting a number of companies in Flanders.”
Some of them are Lemagro-professional supplier in horticultural markets worldwide from three strategic production sites in Europe; Belgium, Italy and Poland; AAMS (Advanced Agricultural Measurement Systems)-a recently founded company that started in 2002 with the development and production of test equipment for agricultural machines; JVH Nurseries-an exporter of nurseries and a full range of horticulture products; Aveve Trading-a major enterprise that develops, produces, sells and distributes enzyme concepts and products to optimize feed formulation and livestock production performance as well as for food applications; and Biobest N.V.-a leading company in biological crop protection and pollination business.
“We know that Agrilink would help us spread awareness about Flanders, that Belgium is so much more than waffles and chocolates,” added Trade Representative Ginger Cruz.
“Like last year, we expect brisk business activities during the event’s three-day run, especially with Aqualink part of this three-in-one show,” said Roces, “We are indeed very happy that Agrilink, Foodlink and Aqualink help enhance business opportunities to both small and bigtime entrepreneurs.”
What’s with value-adding?
SMIF Feeds Business General Manager Dr. Norman Ramos : “San Miguel, Inc’s agro cluster is composed of the Feeds Business, Magnolia Poultry and Monterey Corporation, including plantations and the agro-industrial zone(AIZ). Value-adding works both ways, for the farmer and agribusiness itself, giving both more favorable margins. It also provides livelihood and additional income in rural areas.”
SKOV Asian Area Sales Manager Herbert Cabral : “The Philippines’ agri industry has shown great growth. More farmers, broilers and feeders are turning to efficient value-adding and market connections to increase their profit. SKOV, on the other hand uses its wealth of experience and ideas to come up with innovative components and systems to support them.”
Univet General Manager Ricardo : “Farmers and aquaculturiest should and can now add value to their products in many inexpensive ways, establish important marketing alliances and boost their income, while companies like ours continue supplying them with premier line of agri products.”
Bureau of Fisheries and Resources(BFAR) Director Malcoml Sarmiento Jr. : BFAR is now coming up with post harvest facilities to aid our fisherfolk. We’re presently turning all the payaws over the local government where they organize a cooperative to manage and administer them. This is really intended for the small fishermen, so they would sometimes allow commercial vessels to come.”
Le Club Vice President Michel Hermelin : “The Philippines is one of the easiest countries in the region. We published a book called “Pour les PME francaises Comment Reussir aux Philippines” to highlight the Philippines’ recent economic boosts, rich natural resources and its buying market. And to know that small-time farmers are now entrepreneurs in their own right is helpful.”
Philippine Amalgamated Supermarkets Association(PAGASA) President Steven Cua: “The problems of farmers in terms of time, freshness, shrinkage and cost in getting their goods to their final selling destination for them to get a bigger share of prices paid by consumers in local supermarkets and grocery stores will be answered by value-adding.”
