Local meat processors to venture into exports

The weakening business for processed meat products in the Philippines, has led some members of the Philippine Association of Meat Processors Inc., (PAMPI) to explore the export market to stay in operation.

PAMPI president Felix Tiukinhoy Jr. said that the majority of the 32 members of PAMPI want to explore other markets, aside from the Philippines saying "the export market now is our new target."

Because of the difficult business situation for the processed meat product in the Philippines, amid the choking competition and the entry of cheaper imported goods, three meat processing companies have already closed shop last year, Tiukinhoy said.

PAMPI is one of the organizers of the first World Food Exposition currently being held at the Cebu International Convention Center (CICC), which was opened last April 18 and will culminate on April 21.

"We have to improve the awareness of the public to patronize our own manufactured food products. Also, meat processing companies should invest on technology to improve efficiency," said Tiukinhoy, who is also the president of Virginia Foods Inc.

According to Tiukinhoy, the weakening purchasing power of majority of the Filipinos would be a "survival of the fittest" for the meat processing industry.

"Small processors can''t sustain the high cost of production, and yet stagnant and even declining profit margin," he said.

In Cebu there are about five meat processors, these are Virginia Foods, Sun Pride, Kings Quality Foods, Lami Foods Inc., and Golden Ribbon-the maker of Fiesta brand.

He said unless meat processors won''t invest on improved machinery and manufacturing technology, there is no way that they can stay in the business.

Exploring export market is seen to save the surviving meat processors in the Philippines. Although, entering the export market could mean more capitalization or investments for the company.

Since, PAMPI members will be exporting foods, stricter rules in each country are expected thus the group is also planning to seek help from the government on this venture.

"We will try to push the [Philippine] government to be accredited with our target countries, like US, Europe, Middle East, Japan, and China," he stressed.

Although, the export venture of the meat processors would be another gamble for its business, Tiukinhoy said there are no other options but to tap other markets rather than focus on the Philippines.

Aside from country accreditation, there are several requirements a food company should comply first, before it could enter a particular country.

In the Middle East for instance, food products for import to the Middle East should all be "Halal" food. Other rules are required in other countries such as Japan, and Europe.

Despite these problems coupled with strengthening peso value, meat processors are determined to pursue the export trade.