Food manufacturers seek more gov’t support to grow

MANILA, Philippines - Food manufacturers are seeking more support from the government such as removal of import and export duties on processing of raw materials, reduced power costs and greater access to financing to enable grow the sector by six to 10 percent in the next two years.

The Philippine Food Processors and Exporters Organization, Inc. (PHILFOODEX) said much could still be done to enhance the competitiveness of the country’s food exports.

PHILFOODEX president Roberto Amores noted that revenues from food exports abroad reached $3.55 billion in 2012.

“The Philippine food export turnover is still far behind our ASEAN (Association of Southeast Asian Nations) neighbors. For example, Thailand has an average of $20 billion annual revenue from food exports,” he said.

To help the local food sector grow, he urged the removal of import and export duties on production and processing of raw material inputs.

He said the restoration of “D” quedan sugar allocation to export-based food processors is another form of support for the sector.

The “D” sugar is competitively priced as it follows the world market price.

Providing lower power rates is likewise crucial to agro-processors and exporters.

“(Power cost in) ecozones are 40 percent cheaper. The same price should be available to exporters outside the ecozones,” Amores said.

The government must also address the lack of access to financing of small and medium enterprises to help these businesses expand and modernize their facilities to meet international standards.

Other concerns of the sector which need to be addressed are access to technology, the peso’s appreciation against the greenback and market access.

The Philippine food industry is composed of firms engaged in the processing of foods, export of fresh foods as well as marine products.

The local food industry’s biggest markets are Japan, United States, China, Hong Kong and Singapore.