RP food sector to benefit from projected hike in Arab peninsula’s food demand

The Philippine food industry stands to benefit from a projected increase in the Arab peninsula’s food imports due to the region’s rapid population growth.

The Arab food and agricultural market is estimated at $9 billion annually.

The region’s rapid population growth (estimated to reach 64 million by 2025) has led to the increase in demand for food and agricultural products, the Center for International Trade Expositions and Missions (CITEM) reported.

"The Middle East is one of the most interesting world markets for food and beverages. This region, including the Gulf Cooperation Council (GCC) countries, already amounts to a $12 billion food industry as of 2005," Trade Assistant Secretary and CITEM Executive Director Fe Agoncillo-Reyes said.

To capture the growing Middle East food market, the Department of Trade and Industry, through CITEM and in cooperation with the Philippine Trade and Investment Center in Dubai and the Philippine embassies in Qatar, Bahrain, and Kuwait, will hold a road show promotion dubbed as IFEX Philippines Goes to the Middle East from Nov. 17 to 26, this year.

The road show hopes to capture the GCC countries, whose economies have relatively high per capita income levels. GCC member countries include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates and Yemen.

"Aside from sustaining the image-building efforts of the country as a reliable source of consumer-ready and high value imported food products, we also intend to strengthen our foothold on the million-strong overseas Filipino workers (OFWs) based in the Arab world," Agoncillo-Reyes said.

Agoncillo-Reyes elaborated that the forthcoming trade and business event would focus on market prospects in Dubai, UAE; Doha, Qatar; Manama, Bahrain; Basra, Kuwait as well as Saudi Arabia and other Arab states.

The IFEX road show would include such activities as: roundtable discussions with the Dubai Food Authority on the updated market entry requirements for imported food; courtesy calls on Philippine embassies in areas concerned; pre-arranged business matching with leading food trade associations and importers; and visits to key food retailers and wholesalers of Philippine food products in identified Arab states.

"We also plan to network with Halal certifying bodies and authorities in the Pan Arab regions. If Philippine-manufactured Halal products become globally compliant, then it will be easy for us to penetrate the Moslem market," Agoncillo-Reyes said. The global Halal food market is projected to reach $500 billion by 2010.

In 2004, the Philippine delegation of the Middle East Food Festival clinched $10.7 million in sales, while participants of the Saudi Food Fest held last year generated a total of $5 million in sales.

Bestsellers in the two fairs were canned tuna and sardines, preserved fruits, powdered coconut, condiments, fruits and vegetables, fruit juices, noodles, ice cream and dairy products, wines, cereals, and desiccated coconut.

In 2005, Philippine exports of food and food preparations reached $1.7 billion, posting a 4.9 percent increase over 2004 figures. Meanwhile, a total of $47.4 million worth of Philippine food products was imported by the Middle East particularly the UAE, Qatar, Bahrain and Kuwait.