organic business & food industry of the philippines. organic business... · weekend market in...

Organic Business & Food Industry of the Philippines(Asian Food Agribusiness Conference)

Patrick B. BelisarioPresident, Organic Producers & Trade Association Philippines

Vice President, International Federation of Organic Agriculture Movement Asia (IFOAM ASIA)

Healthy Nation Starts with Healthy Soil, Healthy Foods & Healthy People

In harmony with Nature…

In harmony with People…

In harmony with Conscience

Organic Producers & Trade Association Philippines

OPTA Philippines is a non-profit association established in 1995 by 11 foundingmembers. Its members consist of farmers, processors, organicpractitioners/advocates, consumers, academe, students, professionals, pastors,NGOs, corporations and even government officials.


Vision

OPTA…Frontier of Philippines Organic Agriculture Movement


To establish Organic Producers and Trade Association Philippines as the lead umbrella organization on Organic Agriculture Advocacy in the Philippines,

To build sustainable communities through Organic Agriculture by providingintegrity and leadership and

To develop 21st century farmers with a sense of stewardship and a mission to contribute to the lives of others.

Mission Statement

History of OPTA Philippines

• In January 1994 - the 1st Organic Market organized

Mara Pardo de Tavera, an organic food specialist and advocate, organized the First Organic Symposium atthe PICC. Mr. Thomas Harding, the former president of the International Organic Agriculture Movement(IFOAM) and then President of the Organic Improvement Association (OCIA), was the resource speaker.One of the problems brought was the lack of market for organic products.

In response, Tavera’s own Visual Merchandising and Display Corp. teamed up with Alay sa Kapwa KilusangPangkalusugan in organizing the 1st organic producers’ weekend market in Greenbelt car park inSeptember 1994. This was the first ever organic market not only in the country but also in Asia.

• January 1995 – OPTA was borna few months after the successful opening of the organic weekend market, the Organic Producers TradeAssociation or OPTA was formally established with 11 founding members.

• 1996 – Gaining international recognition and building linkages- forged partnership with the certification body in July with Organic Improvement Association (OCIA)

and co-sponsored the 3rd Organic Symposium. OCIA accredited OPTA as its chapter for the organiccertification.

- This year also marked the association’s initial forays in international conferences including BioFachGermany and the IFOAM Conference in Denmark.

- Tavera was chosen as resource speaker on DA Farm Safety workshop and BIOfair in Costa Rica


OPTA Philippines’ Milestones since 1995

• 1995 – Registered with SEC by 11 Founding Members. The 2nd organic weekend market wasopened at the Alabang Town Center in Muntinlupa City

• 1996/1997 – Established international (OCIA, IFOAM,) and local (DA, DTI-CITEM, AANI)linkages. 3rd location for organic weekend market at the AANI SIDCOR in QC

• 1998 – Attended the World Farmer's Congress, BIO-Search Exhibit on Organic, Naturaland Herbal products and Agrilink. Membership reaches to 100. 4th organicweekend market in Katipunan, QC

• 1999 – Co-hosted the 4th IFOAM Scientific Conference (DAP, Tagaytay) with Dept. of Trade andIndustry - Center for International Trade Expositions and Missions (DTI-CITEM).

• 2000 – Co-founded the Phil. Organic Industry Council. Participated in the Organic CertificationTraining conducted by FiBL and Bio Inspecta which kicked-off the Philippine OrganicCertification Program which was facilitated by CITEM



• 2001 - Joined the Selling Mission in time of FOODEX, Japan and participated in the OrganicTrade Association Conference and Trade, USA

• 2002 - The 1st Organic Festival at Robinsons Galleria in September, another organic weekendmarket (5th) at the Podium in Ortigas Center, Pasig City

• 2003 – Partnership with Canadian International Development Agency through Pearl 2.

• 2004 – Opening of OPTA Cooperative Store

• 2005 - OPTA participated in Singapore Natural Products Organic Asia and Eco-Agri Expo in Korea. Philippine National Organic Agriculture Board (PNOAB) was formed.

OPTA’s 10th year came off to a good start when the Secretary of the Department Agriculturesigned the Philippine National Organic Agriculture Board which strengthened the country’sorganic agriculture industry

• 2006 – 2007 – Re organization


• 2008 – Capacity Building through CIDA-Pearl2.

• 2009 – Attended and contributed in the first ICS Training by DTI. OPTA participated in OrganicAgriculture R&D with PCCARD-DOST, ATI-DA.

• 2010 – Co-organizer of the Philippine Organic Agriculture Law Implementing Rules & Regulations Drafting / Consultation

• 2012 – Co-founded the International Federation of Organic Agriculture Movement - Asia(IFOAM ASIA) in South Korea and Manila (Agrilink in October)

• 2013 - Partnered with the Department of Agriculture to orient & train operators of OrganicTrading Post (70+)

• 2014 – Member, Technical Working Group revising the Philippine National Standards for Organic Agriculture; PNS for Organic Fertilizer; PNS for Retailing;

• 2015 – Member, TWG drafting of the guidelines of Participatory Guarantee System;




• Advisory Board, BIOFACH Southeast Asia (2018)

• Founding Member, ASEAN Organic Federation

• Founding Member, IFOAM ORGANICS ASIA

• Member, International Federation of Organic Agriculture Movements (IFOAM)

• Founding Member, Organic Certification Center of the Philippines

• Member, Agriculture and Aquatic Network Inc. (AANI)

• Partner, PEARL2 Project with Canadian International Development Agency (CIDA)

• Partner, DTI CITEM Local and International exhibits and trade fairs

• Partner, Ateneo de Manila – Vermiculture and Organic Garden Project

• Partner, Save Our Soil Foundation

OPTA Philippines’ Affiliations


International• IFOAM – Asia Conference and General Assembly, China, May 18-

22, 2017

• ASEAN Organic Federation Organizing Meeting/Conference, Bangkok, July 27-29, 2017

• BIOFACH South East Asia on July 12-15, 2018

Networking and Linkages

Member

• Membership Development;

• Advocacy, Networking and Linkages;

• Capability Building;

• Resource Mobilization;

• Organic Quality Assurance System;

• Research & Development;

• Marketing, Promotions and Trade Missions

Programs & Services



Gearing up for 2017

Moving on to 2018


Membership Profiling and Updating

• Updating database to develop OPTA Members’ Directory for promotional and marketing campaign

• Creating and developing OPTA website as product promotional tool

• New OPTA logo for launching in Agrilink 2017

• Reviewing and updating the 2011 Manual of Operations


Organic Quality Assurance System

• PGS Organic Guaranteed• For New & existing members

with no certification

• Recognition for certifiedorganic producer – members


Philippine Organic Market Research

OPTA Philippines – DA Joint Research Project 2017 State of the Sector Report

https://en.wikipedia.org/wiki/File:Department_of_Agriculture_of_the_Philippines.svg


Organizing Markets & Training Farmers


Major Local Organic Trade Exhibits

May 19-21, 2017


International Organic Trade Exhibit


ASEAN Organic Trade Facilitation

ASEAN ORGANIC FEDERATION

• Advisory Board to BIOFACH ASEAN • ASEAN Organic Store in every capital

of the ASEAN countries

How can the Philippine organic business and food industry respond to the requirements and standards of international markets?

• Know the organic market and export requirements• Know the basics in exporting • Know your products and markets

Know the organic markets and export requirementsKnow also the existing Philippine organic exporters: https://organic.ams.usda.gov/Integrity/

The Organic Market

What does Organic Mean?

Global Organic Market increased from $17.9B USD in 2000 to $81.6B USD in 2015.

The Organic Market

Source: Research Institute of Organic Agriculture (FiBL)

11,2783,323

75,925

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

World

2016 World Imports, Exports and Retail Sales (in Million Euros)

Exports Imports Retail Sales

10,1053,615

62,161

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

World

2015 World Imports, Exports and Retail Sales (in Million Euros)

Exports Imports Retail Sales

2015 vs 2016 World Imports, Exports and Retail Sales

The Organic Market

1848.45

2828

1229

401.51

4571

398

22.95

1436

8.27 0

1648

107

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Asia NorthAmerica

SouthAmerica

Africa Europe Oceania

2016 Imports and Exports, by region (in Million Euros)

Exports Imports

6254

38539

30.97 17.27

29997

1082

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

Asia NorthAmerica

SouthAmerica

Africa Europe Oceania

2016 Retail Sales, by region (in Million Euros)

Imports

Source: Research Institute of Organic Agriculture (FiBL)

The Organic Market

Taken from: The world of organic agriculture 2015 FIBL

Producers and Consumers Infographic

The Organic Market

Global Organic Food Market is expected to grow at over 16% by 2020*

*According to TechSci Research Report, “Global Organic Food Market Forecast and Opportunities, 2020

Growth in the market can be attributed to the following:

• Growing health concerns among consumers and increasing awareness regarding the benefits of organic food

• Increase in consumer income levels

• Improved standard of living

• Government initiatives and programs encouraging the adoption of organic products

• No chemical fertilizers and pesticides

• GMO free

The Organic Market

THE U.S MARKET

A quick look at the world’s largest organic market

• All organic food that is sold as organic in the U.S. must be produced and handled in accordance with U.S. standards.

• It should also be certified by a USDA-accredited certifier.

• For an imported commodity to be considered as organic, it must meet the requirements of the USDA National Organic Program (NOP)

• The USDA has accredited certifying agents (ACAs) in many foreign countries that help verify requirements of the NOP are being met for imported products.

Exporting in the US

• Currently there are two different systems for exporting organic products to the EU:

Countries whose system of organic production complies with the principles and production rules set out in the EU organic regulations and whose control measures are of equivalent effectiveness to those laid down in EU organic regulations.

The following are the 12 countries that meet the conditions: Argentina, Australia, Canada, Costa Rica, India, Israel, Japan, Republic of Korea, Switzerland, Tunisia, the United States and New Zealand

Exporting in the EU

• Currently there are two different systems for exporting organic products to the EU:

For countries where there is not an equivalent organic regulation, a list of Control Bodies and Control Authorities competent to carry out controls and issue certificates for the purpose of equivalence is defined in Annex IV of Commission Regulation (EC) No 1235/2008.

Exporting in the EU

Know the basics in Philippine exporting

Basics in Philippine Exporting (Flowchart)


Step 1: Preparing to Export

1. Business registration - DTI for sole proprietorship, SEC for partnership or corporation and CDA for Cooperatives

2. Registration as an exporter in the Client Profile Registration System (CPRS) to get the Unique Reference Number (URN). This serve as proof of accreditation as an exporter

Step 2: Issuance of Proforma Invoice

Step 3: Shipping/Airline Proforma Bill of Lading

Step 4: Exporter fills out Export Declaration Form via E2M


Step 5: Export Clearance

If export clearance is required, apply at concerned Commodity Agency

1. Export Clearance

2. Certificate of Exemption

If clearance is not required, proceed to Step 6

Step 6: Secure Authority to Load at Bureau of Customs

➢ Loading via Airport

➢ Loading via Pier

- Philippine Ports Authority (WharfageFee)

- Arrastre Contractor (ArrastreCharges) - Non-containerized Cargo

(Warehouse)- Containerized Cargo (Container Yard)

➢ Certificate of origin

➢ Shipping Line Office (Bill of Lading)

➢ Authorized Agent Bank (Draft/Documents)

Philippine Food and Drug Administration

• All food establishments should first secure a License to Operate (LTO)before engaging in food manufacturing, importation, exportation, offeringfor sale or consumption, distribution and transport, for food trade andexhibition, promotion, advertising, donation, or sponsorship of any healthproduct.

• Any entity applying for a license as a food manufacturer, importer,exporter, trader, repacker or distributor and those already licensed shall berequired to demonstrate its capacity to perform adequately as such in amanner that satisfactorily assures the safety and quality of its foodproducts. It shall be required to conform with the relevant standards andrequirements specific for each category, in addition to the generalrequirements.

SOME INTERNATIONAL TRADE AGREEMENTS in which the Philippines is a signatory

1.GATT - General Agreement on Tariffs and Trade

2.TRIPS - Trade Related Aspects of Intellectual Property Rights

3.FTA – Free Trade Agreements

4.European GSP - European Union Generalized Scheme of Preferences

5.The GSP +

BASIC INTERNATIONAL STANDARDS and REQUIREMENTS – some examples

1. Hazards and Critical Control Points (HACCP)

2. CODEX Alimentarius and ISO

3. USA - FDA REGISTRATION AND U.S. AGENT REQUIREMENTS (FDA BIOTERRORISM ACT)

a. FDA registration is required for all facilities that manufacture, process, pack, or store food, beverages, or dietary supplements that may be consumed in the United States by humans or animals. Companies located outside the United States must designate a U.S. Agent for FDA communications.

b. PRIOR NOTICE (SENDING FOOD AND BEVERAGES TO THE USA)

Prior Notice is required before food shipments may enter the United States. A bar-coded Prior Notice Confirmation Number issued by FDA must accompany most shipments

4. European Union – European Union legislation and standards created under the New Approach are harmonized across the Member States and European Economic Area countries to allow for the free flow of goods. An example of the New Approach is CE marking. While harmonization of EU legislation can facilitate access to the EU Single Market, manufacturers should be aware that regulations (mandatory) and technical standards (voluntary) might also function as barriers to trade if U.S. standards are different from those of the European Union.

Know your products and markets

• The amplified use of coconut oil for its health benefits has increased the demand for Philippine coconut oil in the world market

• There was a 1,110% increase in the export value of coconut crude oil in the 1Q of 2017 compared to 1Q of 2016, from $7.83M to $94.8M

• Top export markets for the commodity include Netherlands ($69.10 million), the United States (US) ($13.81 million), and Italy ($11.65 million).

Organic Export Product: Coconut Oil

Organic Export Product

Organic Export Product: Organic Coconut Sap Sugar


As quoted from the Wikipedia, coconut sugar (also known as coco sugar, coconut palm sugar or coco sap sugar) is produced from the sap of cut flower buds of the coconut palm.

Coconut sugar has been used as a traditional sweetener for thousands of years in the South and South-East Asian regions where the coconut palm is in abundant supply. The world's largest producers of coconuts are the Philippines and Indonesia.

Coconut sugar comes in crystal or granule form, block or liquid. The sap is translucent and is about 80% water. As the water evaporates, it starts to transform into a thick syrup-like substance known as "toddy". From this form, it is further reduced to crystal, block or soft paste form, or it remains in this form. Essentially, coconut sugar's form depends on the moisture content of the toddy. (PRDP VCA)


Organic Export Product: Organic Rice

• The Don Bosco Multipurpose Cooperative from North Cotabato recently shipped 13.5 metric tons (MT) of organic pigmented rice, 10 MT of which was bound for Dubai while the balance was sent to the US.

• The same cooperative exports 150 MT of organic black, brown and red rice to more than 10 countries

• Organic rice imports of United States was at 20,250 MT in 2015


• In 2014, 8.4MT of heirloom rice worth P622,000 was exported, which is a 66% and 81% increase in volume and value, respectively from its 2013 levels.

• Furthermore, there was a significant increase of 221% and 274% in volume and value in 2014 versus 2008.

The largest food retailer in the US, Kroger Foods, wanted to try the heirloom rice. Eighth wonder, an heirloom rice distributor, was not able to commit due to production constraints.

Organic Export Product: The Cordillera Heirloom Rice



There are four (4) major coffee varieties grown in the CAR –Arabica, Robusta, Liberica and Excelsa. The suitability of the cool climate of the Cordillera highlands (Benguet, Mountain Province, Ifugao) positions the Arabica coffee production in a comparative advantage over other regions in the country. The warm climate in the lowland areas in Kalinga, Ifugao and Apayao is suitable for Robusta coffee production.

The harvest season is January to April for Robusta coffee, November to June for Arabica, and February for Excelsa


Organic Export Product: The Cordillera Arabica Coffee

World Demand for Philippine Bananas

• Philippines is a major exporter of banana chips. Export market for banana chips has been increasing especially in 2014 wherein export volume almost doubled and increased by 20% in 2015.

• 8th most important food crop in the world and the 4th most important in the least developed countries (FAOSTAT, 2013)

• Banana chip is the main by-product of Cardaba that is largely exported. Aside from snack items, banana chips exported from the country are also used for breakfast cereals, trail mix and healthy snack foods. Banana chips are also used as toppings or ingredients to ice creams, baked goods and other desserts.

Philippine Commodities

World Demand for Philippine Mangoes

• Philippines is the 7th largest mango exporter in the world.

• Philippines exhibited the highest value per kilo of exported mango at $3.92 per kilo

• Demand for Philippine mango both fresh and processed had been reported as consistently increasing

• The Philippines is exporting mango to about 48 countries all over the world. In 2015, the Philippine export amounted to US$91million


• For processed mango products, the Philippines export exhibited an average 42.52% annual growth in value between 2011 and 2016

• Demand for Philippine mango both fresh and processed had been reported as consistently increasing

• While dried mangoes constituted the bulk of exports with growth rate of 46%, other processed forms in “airtight containers” showed a promising growth of 174%

World Demand for Philippine Mangoes


• Canada was the main buyer in 2013, accounting for 29.13% of total export volume, followed by USA and UK at 25.35 and 18.64 % respectively.

• The world production of yam increased from 47,700,654 MT in 2009 to 63,050,634 MT in 2013.

World Demand for Ube Yam

• There are 25 countries where ube products were exported from the Philippines between 2009 to 2013. Only five countries namely USA, UK, Qatar, Canada and Saudi Arabia regularly exported ubeproducts.


World Demand for Cassava

• Fresh Cassava Grates• Global Food Solutions located at San Pablo, Laguna is

one of the processors of frozen cassava grates.• It is exported to US, Europe, Italy and Canada.• It requires 750 MT of peeled cassava annually. • Global Food Solutions also buy cassava leaves up to

45 MT annually which is also exported.

• Philippines is ranked 25th with production volume of 2,360,530.00 MT.


World Demand for Cassava

• Cassava Chips and Granules

• Philippines have been exporting cassava chips and granules during the last five years.

• The main buyers were United States, Canada, Australia and United Kingdom.

• From year 2011 to year 2015, the average volume of exported cassava to the United States and Australia has a positive growth rate of 44.05% and 6.23%, respectively


World Demand for Pineapples

• $228.4M export sales in 2016, which ranks 3rd in the world after Costa Rica and the Netherlands

• This is a 125.3% increase since 2012

http://www.philippinesaroundtheworld.com/philippines-pineapples-exports-by-country/

• The Philippines exports pineapples to 29 countries

• Fastest growing pineapple markets sourcing from the Philippines:

• Iran (up 3,831% from 2012 – 2016)

• China (up 951.6% from 2012 – 2016)

• United States (up 377.5% from 2012 – 2016)
