CEBU, Philippines - Developing a competitive advantage is a critical factor for the success and survival of small and emerging enterprises amid competition.
For instance, adhering to food hygiene regulations and standards makes better business and increases its value.
This has become even more important as the food industry is seen to play a big role in the growth of trade activities in the Asean region.
But even without the impending regional economic integration, Teresa Chan, president of Cebu Chamber of Commerce and Industry, said complying with food safety measures should already be the concern of food businesses.
"For any business to succeed, the primary objective should always be customers' satisfaction," she said during the introduction of the Cebu Food Consultancy Group which is a joint program of the chamber, AFOS Foundation and Department of Science and Technology.
Chan said if local enterprises comply with global standards in food production, they can easily enter other markets outside the country, given the Asean Free Trade Agreement now slowly taking place.
AFTA allows trade liberalization and the reduction or removal of tariffs being imposed to products traded among Asean nations.
Food business owners should understand the implications of a more liberalized trading and how it impacts their operations.
"The need to upgrade is of paramount importance," Chan said of the food sector's undertaking to improve standards to establish a strong food processing and food service industry.
More than 40 percent of all micro, small and medium enterprises in the Visayas region are engaged in the food business.
Technology upgrade
In an interview, Engineer Edilberto Paradela, director of Department of Science and Technology Central Visayas, said food processing companies and food service firms are linked to the government's technology upgrading program which is especially intended for small enterprises.
He said food manufacturers can ask help from the agency in complying with the Food and Drug Administration's requirements especially on food safety. FDA holds the authority to issue license to food and drink producers.
Both local and regional markets will face regulatory compliance with the national standards set by the FDA.
The director also noted the compliance with standards such as the Good Manufacturing Practices is a pre-requisite to get access to major retail markets. The export market requires other certifications such as ISO 22000 and HACCP (Hazard Analysis and Critical Control Point).
In the addition, the DOST official expressed hopes that the academe particularly the students could create innovations and technologies that can be used in the industry.
With the outcomes-based education being imposed in universities, he said it can now be expected that learners produce real outputs -- whether research or innovation -- that can help the community and the business. (FREEMAN)