Philfoodex at 20: Putting its best food forward towards global competence

High production cost. Supply inefficiency. Lack of funding support.

Since time immemorial, food manufacturers have been encountering these hurdles.

And with the country’s entry into the World Trade Organization (WTO) comes another major problem which may sound the death knell for local food products—cheap imported goods.

But for the members of the Philippine Food Processors and Exporters’ Organization (Philfoodex), which is celebrating its 20th anniversary this year, these are not road blocks but challenges they can surmount.

The group is the country’s biggest umbrella organization of local food processors and exporters with 200 members.

Founded in 1987, when the country was recreating a favorable business climate, Philfoodex has been trying to unite all players involved in the food sector to make Philippine products world-class.

As part of its 20th founding year, Philfoodex recently staged the Sixth Philippine Food Expo last February 1-4 at the SM Megamall.

The expo, which bore the theme "Pursuing Local Excellence Towards Global Competence", stressed on the need to improve the quality of local food products.

"The Philippine Food Expo is the ultimate showcase of the best of Filipino food products from all over the country geared towards helping local manufacturers and processors with the belief that the food industry holds the key to economic recovery," says Philfoodex vice-president Ruben See and chair of the expo’s organizing committee.

He said the Expo once again showcased Filipino ingenuity and excellence to boost the growth of the food sector to make it globally-competitive.

Agriculture Secretary Arthur Yap, keynote speaker and guest of honor in the opening ceremonies, said that while the country is not wanting in supply and good food products, the lack of certain systems and infrastructures hinder them from attaining global status.

He said that the Department of Agriculture (DA) is working hard to plug these loopholes to ensure delivery of these food products at a low cost and ensure food security in the long term.

He said that in countries where the food sector is very progressive, the government plays a very active role, not only by providing financial support, but by creating a conducive business atmosphere.

In its 20 years of existence, among the major concerns Philfoodex had addressed is the lack of financing for start-ups, with the setting up of the Philippine Export Import Credit Agency (Philexim) to help small and medium enterprises (SMEs) secure loans from banks.

With the help of the association, many SMEs were able to expand locally and penetrate the international market because of the bigger capital at their disposal.

In the recent expo, the group signed a landmark agreement with the Philexim extending a P25-million credit line to members of Philfoodex. The credit facility includes check rediscounting, capital requirements and equipment purchase of beneficiaries, and will be similar to a commercial bank’s omnibus credit line.

See pointed out that Philfoodex envisions itself as a "big brother" of SMEs by providing opportunities for growth, expansion and networking.

The Philippine Food Expo is a joint undertaking with the Department of Agriculture, the Department of Science and Technology, the Department of Trade and Industry-CITEM, the Federation of Filipino-Chinese Chambers of Commerce, Market Encounter Goes to Manila Foundation (MEGMA) and the Philippine Exporters Confederation, Inc. (Philexport).