Globalization and International Trading (Import/Export)

[hakz2007]

Big Japan market seen for Davao mango

DAVAO CITY, March 24 (PNA) -- Japan is seen as a huge market for fresh mangoes grown and harvested from various mango plantations in the Davao region.

This was the initial impression of the Davao mango industry team after their recent two-week study mission in Japan in early March this year.

Mango industry cluster team chairman Antonio Teh said the Japan study mission was conducted by his team to find out from Japanese buyers themselves their stringent quality requirements for importing fresh mangoes into their country.

“We want to know what we can do as mango growers to improve the way we cultivate and harvest our fruit here in Davao that will enhance its quality to meet their strict requirements,” Teh said.

To study consumer behavior in a retail fruit market, the Davao mango cluster team visited the Kinokuni-ya Fruits Shop in Shinjuku‘s Takashimaya department store and Shell Garden Fruits Store to see for themselves how buyers select the fruits they buy from the fruit market.

“It was a good eye-opener for all of us who are used to the domestic market in our country--this will change and improve the way we think in growing and marketing the fruit,” Teh said after attending lectures on Japan import, consumption and requirements of fresh fruits conducted by Japanese experts in Tokyo.

Japanese managers of Diamond Star Company Ltd. also gave them some valuable tips on cultivation, post-harvest and quality management of fresh mango to be imported to Japan from the Davao region.

A morning trip to the Ohta Central Wholesale market also gave the Davao industry cluster team a good idea on proper ways to handle and pack fresh mangoes at this Tokyo fruit market.

Teh said another eye-opener for the cluster team was their visit to the Oh-i Wharf at the Tokyo Port Area where briefings were held on plant quarantine operations for all imported fruits, specially mango, that enter the Japanese market.

Japanese officials from the Tokyo Plant Quarantine Association and Japan Fresh Produce Import and Safety Association conducted the briefings on quarantine operations at the port area.

A short trip to the warmer south of Japan in the city of Miyasaki gave the cluster team the rare opportunity of observing and studying the cultivation, post-harvest and quality management of Japanese-grown Miyasaki mango at the Miyasaki Agricultural Research Institute.

“It really helped us a lot in learning first-hand the various practices by Japanese fruit farmers in growing high quality mango,” Teh said.

On their way back home after the Japan study mission, the mango industry cluster team proceeded to Manila for a domestic market selling mission.

The Japan study mission was funded by Japan International Cooperation Agency (JICA) as part of the Davao Industry Cluster Capacity Enhancement Project (DICCEP), a joint project of JICA and the Department of Trade and Industry (DTI). (PNA)

http://www.pna.gov.ph/index.php?idn=...d=3&rid=266146

[hakz2007]

RP wood industry team sees Japan big export prospect

DAVAO CITY, March 24 (PNA) -- Big demand in Japan for high quality wood from the Philippines is expected to boost the growth and production of fast-growing trees like falcate and malapapaya in the Davao region.

Alfredo Zarasate, wood industry cluster team chairman, said the benchmarking trip to Japan by the team recently opened to them new, big opportunities for the export of lumber wood from the region’s fast-growing trees to Japan.

“It was a good, significant trip for us in the wood industry cluster--we’re now aware of the bright outlook and market demand for commercial fast-growing trees,” Zarasate said.

Zarasate, forest management chief of the Department of Environment and Natural Resources (DENR), said the current world market trends in the use of wood for various products were revealed to the visiting wood cluster team by Japanese wood experts in a series of lectures and briefings conducted in a number of industrial firms, universities and industry associations in Japan.

Various commercial uses of wood today--as pre-cut housing materials, as substitute for plastics, as household items, as do-it-yourself wood crafts, as wood panels from wood wastes, etc.--were all explained to the Davao wood industry team in detail by Japanese university professors, wood researchers, paper manufacturers, wood industry experts, wood engineers, etc, in the cities of Tokyo, Nagoya, Kyoto, and Osaka, according to Zarasate.

“It was a very intensive schedule for all of us in the benchmarking trip, but it was all worth it-- it changed the way we think of our wood industry’s future, considering Japan’s market demand for wood,” Zarasate said.

The wood industry cluster chairman said the companies they visited in Japan include Yoshimei Company Ltd, Hokushin Co. Ltd., Koshii Co Ltd, Fuyo Precut Co. Ltd. and Masuchu Ltd. in Osaka City, Aiwa Company Ltd. and My Wood 2 Company Ltd. in Nagoya, as well as the giant furniture store outlets IKEA and Nitori in Tokyo.

Trends and challenges of wood plantations overseas .were also discussed to the cluster team extensively by experts and researchers of Japan industry groups like the Japan International Forestry Promotion and Cooperation Center (JIFPRO), Japan Overseas Plantation Center for Pulpwood (JOPP) and Japan Paper Association (JPA), according to Zarasate.

A number of fast-growing tree plantation pilot projects had been launched recently by the wood industry cluster team in the Davao region in a determined effort to revive the country’s dying wood industry.

The benchmarking trip of the wood cluster team to Japan was funded by Japan International Cooperation Agency (JICA) under the Davao Industry Cluster Capacity Enhancement Project (DICCEP), a joint project of JICA and the Department of Trade and Industry (DTI). (PNA)

http://www.pna.gov.ph/index.php?idn=...d=3&rid=266169

[jpdm]

Thsi would be great. But I hope instead of exporting wood, we should export finished wood products instead like furniture, handicrafts and toys.

[hakz2007]

From TABASCO | Noticias y Proyectos ( MXScrapers - Rascacielos de México)

Originally Posted by Nikkodemo

Conocen tabasqueños el potencial para exportar a Filipinas

2010-02-03•Zona Urbana


Líderes empresariales y titular de la Sedeco participaron en la mesa de trabajo con el embajador de Filipinas. La iniciativa privada indicó que existen “muchas oportunidades” para comenzar las exportaciones de productos tabasqueños a Filipinas debido a las similitudes de Tabasco con esa nación.

Ayer, líderes empresariales encabezados por José Estrada Garrido, presidente del Consejo Coordinador Empresarial de Tabasco (CCET), así como el titular de la Secretaría de Desarrollo Económico (Sedeco), Mario de la Cruz Sarabia, participaron en una mesa de trabajo con el embajador de Filipinas en México, Francisco III Ortigas Miranda y el embajador de México en Filipinas, Tomás Javier Calvillo Unna.

En entrevista posterior, Estrada Garrido aseguró que los empresarios tabasqueños “salimos de la reunión con muchas oportunidades que tenemos que aterrizar entre los sectores”.

“Me parece que es una buena oportunidad, me parece que es una buena gestión para que podamos ir ampliando los horizontes de participación, de comercialización, de importación; fue una reunión muy positiva”, declaró.

Adelantó que, principalmente, los sectores donde se pueden abrir oportunidades de negocio y exportación son el platanero, cacaotero, ganadería, --en el segmento de cárnico--, coprero --agua de coco--, quesero, entre otros,

“Hay mucha similitud y muchas oportunidades, en fin… tenemos que ir aterrizando los proyectos”, sostuvo.

-- ¿Algunos acuerdos en lo específico? –se le preguntó.

-- Acuerdos generales, y tenemos que seguir reuniéndonos para aterrizar cosas específicas y podamos concretar con el sector empresarial de Filipinas –respondió.

De hecho, adelantó que se analiza la posibilidad de que una misión de empresarios tabasqueños vaya a Filipinas para ir concretando posibles negociaciones.

En tanto, por medio de un comunicado de prensa, la Sedeco reveló que en la mesa de trabajo, el embajador filipino detalló por medio de la Asociación de Naciones del Sureste Asiático (Asean, por sus siglas en inglés, y que está integrado por 10 países de esa región) se tiene como proyecto la “comercialización, la política y la fusión de un sistema de comunicaciones”.

Se agrega que el diplomático detalló que “Filipinas es un país recientemente industrializado con una base agrícola, de industria ligera, y del sector de servicios, con uno de los más sorprendentes procesos empresariales de subcontratación (Business Process Outsourcing) de las industrias de Asia, incluyendo compañías de Fortune 500”.

En tanto, se abunda, el embajador de México en Filipinas especificó que esa nación constituye un mercado económico de más de 5 millones de consumidores, que busca un sistema de mayor integración en derechos humanos, fortalecimiento en su política y en el sistema de comunicaciones.

Villahermosa/Luis E. Méndez

Fuente: Milenio Tabasco.

Google translation


Tabasco known potential to export to the Philippines

2010-02-03 • Urban Zone

Business leaders and head of the Sedeco participated in the work table with the ambassador of the Philippines. Private initiative indicated that there are "many opportunities" to start Tabasco exports to the Philippines because of the similarities of Tabasco with that nation.

Yesterday, business leaders led by Joseph Estrada Garrido, president of the Coordinating Council of Tabasco (CCET) and the head of the Ministry of Economic Development (Sedeco), Mario de la Cruz Sarabia, participated in a working with Ambassador Philippines in Mexico, Francisco Ortigas III Miranda and Ambassador of Mexico in Philippines, Javier Tomás Calvillo Unna.

In subsequent interview, Estrada said that employers Garrido Tabasco "left the meeting with many opportunities we have to land between sectors."

"I think it's a good chance, I think it's good for us to go expand the horizons of participation, marketing, import, was a very positive meeting," he said.

He said that, primarily, the areas where you can open and export business opportunities are the banana, cocoa, livestock, - in the meat segment -, coprero - coconut water -, cheese, among others,

"There are many similarities and many opportunities, finally landing ... we have to go projects," he said.

- Do some agreements on the specifics? He was asked.

- General arrangements, and we must continue to meet to land specific things and we realize with the business sector in the Philippines "he said.

In fact, said that explores the possibility that a business mission to the Philippines to go Tabasco go specifying possible negotiations.

Meanwhile, through a press release, the Sedeco revealed that in the desk, the Philippine ambassador elaborated by the Association of Southeast Asian Nations (ASEAN, for its acronym in English, which is composed of 10 countries of that region) project is "marketing, politics and the merging of a communications system.

He added that the diplomat explained that "the Philippines is a newly industrialized country with an agricultural base, light industrial and service sector, with one of the most amazing outsourcing business processes (Business Process Outsourcing) industries in Asia, including Fortune 500 companies.

Meanwhile, it abounds, the ambassador of Mexico in Philippines specified that this nation is an economic market of more than 5 million consumers seeking a more integrated system of human rights, strengthening its policy and communications system.

Villahermosa / Luis E. Mendez

Fuente: Milenio Tabasco.

[jpdm]

Exports growth target adjustment likely with robust economic rebound

By BERNIE CAHILES-MAGKILAT
March 28, 2010, 12:01pm
Manila Bulletin

An upward adjustment in the country’s exports growth target is most likely following robust growth on the country’s exports to Japan and the strong rebound in the country’s top dollar earner – electronics sector, which 20 percent growth target this year was seen as very conservative.

Trade and Industry Secretary Jesli A. Lapus told reporters that he spoke with Japanese Ambassador to the Philippines Makoto Katsura wherein they compared the country’s export performance before and after the implementation of the Japan Philippines Economic Partnership Agreement (JPEPA).

Lapus did not provide details, but said the matrix showed that the Philippines posted tremendous growth in exports to Japan following the implementation of the JPEPA in which most of the products have been accorded zero tariff rate from the average 15 to 20 percent rate.

On the average Japan used to account for 16.86 percent of the country's total exports, growing at 10.4 percent over the past five years.

“This year the projection is very optimistic,” he said.

He noted that officials from the Semiconductor and Electronics Industries in the Philippines, who are also members of the Export Development Council, said the 20 percent exports growth projection for the industry this year is very conservative.

“That’s very conservative because they said that whatever capacity they lost last year as a result of the global financial crisis will not only be recovered this year, but are going to be exceeded,” Lapus said.

Lapus noted that the Philippines will not only benefit from the JPEPA in boosting its exports, but Japanese companies that are based in the country are also exporting to other countries like China.

The strengthening of the peso is not also likely to dampen exports, Lapus said, stressing that exports have continued to post robust growth despite the peso’s strength.

“This is because of the global economic rebound,” he added.

Already, monetary authorities are pushing for the upward revision of the country’s export growth target for this year of between 7 percent and nine percent on back of a strong global economic recovery.

Philippine exports grew by 42.5 percent in January this year from a contraction of 40.6 percent in 2009, indicating a growing pick up in demand as the world continues to recover from the economic crisis.

The National Statistics Office (NSO) reported that the country’s merchandise exports jumped by 42.5 percent to $3.58 billion in January from $2.51 billion in the same month last year.

Socioeconomic Planning Secretary Augusto Santos said the growth registered in January was the highest year-on-year growth rate posted since April 1995.

The increase could be attributed to the 51.2 percent jump in the shipment of Philippine-made electronic products. Electronics account for about 56.8 percent of the country’s total exports.

[jpdm]

Japan trade deal hikes RP exports

by Julito G. RadaManila Standard
March 29, 2010

PHILIPPINE exports to Japan have increased following the implementation of the Japan-Philippines Economic Partnership Agreement, Trade Secretary Jesli Lapus told reporters over the weekend.

“I had a talk with the Japanese ambassador to the Philippines today [March 26] and we had a comparative analysis on the export side before and after JPEPA. We found out that exports to Japan increased because of the agreement’s implementation,” he said.

“This year, we are optimistic about our total export targets. Many say the previous target of the Exports Development Council of 20 percent in electronics exports was very, very conservative. Private sector representatives in the council believe it should be more than that,” he said.

He said exports would continue to grow amid the peso’s appreciation.

“Our exports continue to increase even the peso appreciates and that is a good news. Even Japanese companies operating here who export their products to China are doing good,” he said.

Recent data from the Japan Information and Culture Center showed that Philippine exports to Japan rose beginning in 2008, when JPEPA was signed. Tokyo accounted for 15.7 percent, or $7.68 billion, of the Philippines’ total exports of $49 billion in 2008.

The Center said bilateral trade between Japan and the Philippines increased by 218 percent in 2009.

Japan’s seafood imports, especially cuttlefish and squid, surged 1,685 percent, while purchase of women’s skirts made of cotton rose 72 percent. Shipments of coconut products increased 36 percent, women’s coats made of cotton and containing fur skin climbed 35 percent while mackerel rose 35 percent. Exports of shrimps and prawns to Japan advanced 29 percent, outer soles of footwear of rubber or plastics rose 25 percent while bananas and mangoes surged 24 percent.

[jpdm]

Imports and the manufacturing outlook

By Cielito Habito
Philippine Daily Inquirer
First Posted 04:20:00 03/29/2010

Filed Under: International (Foreign)Trade, Economy and Business and Finance

Philippine imports grew 30.3 percent last January—the strongest growth seen in seven years, according to the National Statistics Office (NSO). This should be welcome news, as the bulk of our imports are actually production inputs, composed of capital goods, raw materials, intermediate inputs and mineral fuels, all together making up 87 percent of our import bill.


This means that growth in imports could be taken to be a signal of growing domestic production, especially in manufacturing. Imports have resumed growing positively since November following 13 months of decline, signaling that domestic production is back on the uptrend, recovering from the slump brought on by the global financial crisis and economic downturn.

Out of the normal

It must be noted, though, that there were some prominent items in January’s import bill that are out of the normal. Looking at the breakdown of imports by commodity, the fastest-growing import product turned out to be rice, which grew by a whopping 153,599 percent. In other words, part of the overall import boost came from the need to fill a large domestic gap in rice, necessitating an unusual and large one-time importation of the staple.

Crude petroleum imports came in second, growing by 1,756 percent (even as refined petroleum product imports showed more normal growth of 1.7 percent). It is not clear what led to the unusual bulge in crude oil importation in January, but this may simply reflect the way that crude oil importations to feed local refineries are not evenly distributed through the year, but come sporadically in lumpy volumes (note that the reported growth rates reflect year-on-year growth, i.e., growth over the same month a year ago).

Not as spectacular but a dramatic jump nonetheless was the growth in imports of aircraft, ships and boats, which rose 127 percent from the year-ago figure. Again, these are lumpy import items that come sporadically. A domestic air carrier probably bought new aircraft in January, leading to this dramatic jump.

Consumer goods

Consumer goods—the part of our imports that worries domestic manufacturers—make up only 13 percent of our total imports, with the bigger part (8 percent) in the form of food, especially rice. Vehicles, appliances and other nonfood manufactures account for the remaining 5 percent. It is in this relatively smaller part of our import bill that the specter of China becoming the “factory of the world” is seen as a threat to local industries.

The magnitude of the challenge is probably significantly understated by the official import figures. After all, our data on imports from China show a wide discrepancy with China’s data on their exports to us, by a factor of more than three. That is, China’s trade data indicate that they are exporting to us more than three times what we record to be importing from them. The difference, of course, can be attributed to smuggling, which is the real enemy of our local producers. They have to face unfair competition from cheap goods from China, which are already much cheaper to begin with due to very low Chinese wages, and on top of that still manage to avoid paying import duties.

Factory of the world

Is our manufacturing sector inevitably headed for decline and eventual demise because of China’s emergence as de facto “factory of the world”? It did seem so for a while, as our manufacturing output had been on a continuous slide over the past two years.

But I see no reason for us to give up on manufacturing. The latest manufacturing data from the NSO in fact show a substantial rebound, with volume of production having gone up by 39 percent over the past year as of January.

And like imports, manufacturing output has been posting positive growth since November. Furthermore, the recent record import growth signals further positive manufacturing growth in the months ahead.

I am particularly confident that food manufacturing, our most dominant manufacturing subsector, will continue to be a mainstay, given the need to feed a continuously growing population. And as average incomes grow, food in processed form makes up a greater portion of food demand. Add to this the wide export opportunities for processed fruits and vegetables, indicated by rapid growth in imports recorded for these products by the developed countries in recent years.

Talking about the export markets, we also remain quite competitive in manufactures of high-end apparel, furniture and fixtures, where design is a critical selling point. Filipino designers are often said to be better attuned to western tastes than other Asian counterparts, thus giving us a unique advantage. And electronics, our single biggest export product, will continue to make up the lion’s share for time to come.

I am thus hopeful that the current uptrend in imports has a significance that goes well beyond trade itself.

Comments welcome at chabito@ateneo.edu

[jpdm]

Geely has expressed its desire to put up an assembly plant here in the Philippines...and I never taught this Chinese company is huge..


China's Geely shares up on Volvo deal


Agence France-Presse
First Posted 19:07:00 03/29/2010

Filed Under: Company Information, Economy and Business and Finance, Mergers - Acquisitions - Takeovers, Automotive Equipment

BEIJING—Shares in Geely Automobile Holdings surged nearly five percent Monday after its Chinese parent company sealed a 1.8-billion-dollar deal to buy Volvo Cars from US auto giant Ford.

The Hong Kong-listed unit of Zhejiang Geely Holding Group rose as much as 4.9 percent to 4.30 Hong Kong dollars ($0.55) before closing at 4.16, up 1.5 percent in a stronger market.

The broader market finished 0.88 percent higher at 21,237.43.

"It is a comprehensive acquisition," said Jerry Huang, a Shanghai-based analyst with automotive research firm CSM Worldwide.

"Volvo will get funds which it needs badly at the moment and a market that has enormous potential. Geely gets a platform to learn and gain experience in the industry."

The deal signed Sunday ended more than a decade of Volvo ownership by Ford Motor Co., which saw the upmarket Swedish carmaker become a loss-making thorn in the side of the US giant, which is burdened with its own woes.

Geely chairman Li Shufu said he saw huge untapped potential for Volvo in international markets and especially in China, which has not only the biggest but also one of the fastest-growing car markets in the world.

"I see Volvo as a tiger. (The) tiger belongs to a forest, it can't be found in a zoo ... We need to liberate this tiger," he told a press conference after the deal was signed at Volvo Cars headquarters in Gothenburg, southern Sweden.

"The tiger has a heart and it lies in Sweden, (and) in Belgium but its power should be projected all over the world.

"I see China as one of the markets where Volvo can show it has the opportunity to liberate itself," he said.

Geely said it had not only secured financing for the 1.8 billion dollars it was paying, but was also eager to keep Volvo in operation.

It also said the deal, which Ford initially agreed to in December, included agreements on intellectual property rights as well as supply and research and development arrangements between Volvo Cars, Geely and Ford.

[jpdm]

Gov’t to spend P162 million to buy thousands of cattle

Businessworld Online
March 30, 2010

THE GOVERNMENT has ear-marked about P162 million to buy more than a thousand imported cattle to improve the genes of local stock.

In a newspaper advertisement yesterday, the Agriculture department said it is inviting suppliers for the delivery of 1,200 heads of purebred American Brahman cattle and 25 bulls.

The government has set the opening bid at P100,000.

American Brahman is the first beef cattle breed developed in the United States which has been one of the top choices in crossbreeding programs due to its "exceptional hardiness and physical stamina, its ability to…live twice as long as normally expected," according to the Web site of the American Brahman Breeders Association.

National Dairy Authority (NDA) Administrator Orkhan H. Usman said two weeks ago that his office had asked the Department of Budget and Management to release some P450 million for the importation of dairy cattle.

This is because prices of foreign cattle go up every year, Mr. Usman had said. Last year for instance, P450 million could still buy about 4,000 heads of dairy cattle. At today’s price of P125,000 per head however, the country can only buy 3,600 of the animals with the same budget, he explained.

The Philippines can supply only 1% of its dairy requirement, and growth in dairy production has slowed since 2006. NDA’s goal is achieve liquid milk sufficiency in the eight years. -- KJRL

[jpdm]

Posted on 11:46 PM, March 29, 2010
BusinessWorld Online

BY JESSICA ANNE D. HERMOSA, Reporter


US tariff perk sought for refined sugar

THE TRADE DEPARTMENT will be asking Washington to allow the duty-free entry of refined sugar into the United States, it said in a statement yesterday.

It will also seek the same trade privilege for seven other Philippine products even if these exceeded their export quotas last year.

The petitions come as the Office of the US Trade Representative (USTR) currently conducts its annual review of goods eligible for its Generalized System of Preferences (GSP) program.

The US agency had tagged refined cane and beet sugar from the Philippines as a product up for "re-designation", meaning it could be considered for GSP benefits this year.

The Philippines currently enjoys tariff preferences only for its raw cane sugar exports.

Refined sugar from the Philippines did not receive GSP duty-free treatment last year, USTR data show. No sales of the commodity were made to the US in 2009.

This year however, the Trade department is taking advantage of the USTR announcement, declaring in the statement that it would be "pushing for ... trade benefits via re-designation".

If granted, Philippine sugar millers will likely take on US orders for refined sugar on top of current demand for the raw variant of the , a Sugar Regulatory Administration (SRA) official yesterday said.

The US only ordered raw sugar from the Philippines in the past possibly to protect operations of American refineries, SRA Administrator Aida F. Ignacio said in a telephone interview.

"But if they want us now to export refined sugar, that wouldn’t be a problem for us," Ms. Ignacio said.

Aside from sugar, other goods included in the Trade department’s petition to the US are: electric car batteries, exposure meters, twine, processed citrus fruits, coffee products, rattan mats, and palm leaf crafts.

These seven products had enjoyed duty-free treatment last year unlike refined sugar, but could stand to lose that privilege after cornering more than 50% of US imports in 2009, a criteria dubbed as the "competitive need limit" (CNL).

But the CNL can be waived for one year under GSP rules because sales of these products did not exceed $19.5 million.

"[Our petition] will highlight the imminent loss in Philippine exporters’ competitiveness and the likely adverse impact on labor and investments from economic displacements in affected sectors [if GSP treatment for the seven products is rescinded]," the Trade department said.

Otherwise, slapping tariffs on the seven products could hurt their price competitiveness and thus threaten export sales which last year hit $5.78 million, it said.

[hakz2007]

First quarter coco oil exports show recovery

SHIPMENTS OF coconut oil in the first three months have shown signs of recovery from the slump last year.

Preliminary data from the United Coconut Associations of the Philippines (UCAP) show that exports of the commodity nearly trebled to 127,142 metric tons (MT) in March from 44,620 MT in the same period last year.

These exports reached 329,582 MT in the first quarter, growing more than threefold from the 105,394 MT recorded in the same period in 2009.

Yvonne V. Agustin, executive director of the UCAP, said in a telephone interview on Wednesday that the country has more copra available for export this year, partly in response to signs of recovering overseas demand but also as the industry normalizes from a disruption in its production cycle in 2008.

"We came from a very low statistical base last year, which was weighed down by the economic slowdown and the little volume of copra that we were able to crush as a result of the premature harvesting of the nut during the first half of 2008 [as growers rushed to take advantage of high world prices that year] which disrupted the production cycle of the coconut," Ms. Agustin said.

Ms. Agustin said it is still too early to say if the current dry spell has an effect on the country's coconut industry since the impact on the sector will be felt next year.

She admitted that the 127,142 MT exported in March was "a bit high" -- compared to the monthly average of 80,000 MT-100,000 MT -- which she attributed to recovery of demand abroad.

"The US and the European markets account for more than 80% of the export, although the Chinese market is coming out strong and we still have Japan and Korea outside our traditional markets," Ms. Agustin said.

The Philippines, the world's biggest exporter of coconut oil, ships out 80% of its production of this commodity.

However, the country accounts for less than 5% of the global fats and oils market given a drop in domestic output last year and rivalry from palm kernel oil.

Last year, the country sold 808,007 MT of the commodity, down by 4.7% from 847,626 MT in 2008 and below a forecast of 835,000 MT due to dampened demand from industrialized countries.

Coconut oil exports account for up to 80% of copra shipments. Other coconut exports are desiccated coconut, coco shell charcoal and coco chemicals.

Production of coconut itself, which accounts for 5.44% of total farm output, rose by 2.2% last year to 15.656 million MT, valued at P23.798 billion, as farms "continued recovery from the devastating effects of previous typhoons and the government's intervention through salt-fertilization," data from the Bureau of Agricultural Statistics show.

http://www.bworldonline.com/main/content.php?id=8339

[hakz2007]

RP exporters urged: Seize vast market opportunities in China

BEIJING, April 4 (PNA) -– With the full implementation of the ASEAN-China Free Trade Area (ACFTA) this year, Filipino exporters are advised to take advantage of new opportunities offered by the huge Chinese market to reverse the decline in the bilateral trade between the Philippines and China.

Philippine Ambassador to China Francisco Benedicto noted that adequate information campaign is crucial to equip stakeholders with knowledge on the ACFTA and enhance the Philippines’ capacity to compete in this regional arrangement.

“The Philippine government and industry should support key growth sectors of exports to China and seek to enlarge their share in the overall trade volume. Balance and diversity is key to sustainable growth of bilateral trade,” he said.

Citing Philippine embassy figures based on Chinese customs statistics, Benedicto said that bilateral trade between the Philippines and China declined in 2008 and 2009 due to the global economic crisis.

Benedicto said the dominance of electronics and other Chapter 85 products, which include electrical machinery and equipment and parts, rendered the trade structure vulnerable to external shocks. Electronic items comprise over 55 percent of Philippine exports to China.

He said while trade in mineral products, chemical and agricultural products seem to have weathered the effects of the crisis, this only made up a marginal portion of the total.

“This highlights the sensitivity of electrical, mechanical, machine and electronic exports to changing external conditions, hence the need to diversify the trade structure and strengthen other sectors of the relationship,” he added.

Likewise, Benedicto cited the need for appropriate Philippine policy response to the ACFTA that seeks competitiveness of infrastructure and logistics, particularly ports and shipping.

“The Philippines, by virtue of its being archipelago, will have to optimize current shipping links and connections to the China and its geographical proximity to Hong Kong and Macau, Taiwan and southern mainland Chinese provinces, to keep itself in the hub of this emerging ASEAN-China regime,” he suggested.

He said such policy should likewise promote inclusiveness within the free trade area to seek and enable grassroots, local governments and small and medium enterprises’ meaningful participation in the regime.

Moreover, Benedicto raised the need to reorient the Philippine exporters’ appreciation of the Chinese market and to improve their presence here.

“China is a big and diverse market, with a burgeoning middle-class, an urban population of 560 million accommodating new lifestyles – and along with these, ideas, products and services,” he said.

Benedicto said the Philippines should also position itself as a competitive destination to Chinese investments which often seek to produce in host countries goods for eventual export to China.

These investments could bring in much-needed capital and create jobs for Filipinos, he noted.

Benedicto added the Philippines must look at certain structural factors in its export industry which are important in effectively penetrating target markets.

He cited for example the ability of Philippine agricultural sector to keep up with the demand of the Chinese market, the compliance by local industries with sanitary and phytosanitary requirements of the Chinese government and products’ conformance to quality standards agreed upon by Filipino exporters and Chinese buyers.

For her part, Philippine embassy Minister and Consul General Maria Teresa T. Almojuela, in an interview, said Filipino products like foods, cococoir and textiles can be popular in the Chinese market.

Almojuela said agro-industry products like fruits and processed foods and furniture could also gain good market in the trillion-dollar economy.

Shipments of these products cushioned the decline in Philippine electronics and semiconductor exports to China in the past few years amid global recession.

“The problem sometimes is the orientation of our exporters that if it is China, don’t sell there because your products will be copied. It is not like that anymore. China has niche market and goods are so diverse thus there is space for every product here,” she said.

“We have to reorient the (export) industry (players) that what they export in New York, they could find market in China. Chinese will buy at the same price and you don’t have to go so far,” she added.

Almojuela also advised exporters to brave the Chinese market because it is not a traditional market but offers lot of opportunities.

“One province here has 100 million people and another has 90 million. These are already populations of one country so just be patient. We should consider that right now, China is the biggest and fastest growing market for luxury items. And here in Beijing, there are 138,000 millionaires,” she said.

Under the ACFTA, about 93 percent of traded goods between China and the ASEAN members are exempted from tariff. The consumers on both sides will have wide-ranging choices of more than 7,000 zero-tariff items in the market.

The Philippines is the fifth largest trading partner of China among ASEAN members as of July 2009, following Malaysia, Singapore, Thailand and Indonesia, respectively. (PNA)

http://www.pna.gov.ph/index.php?idn=...d=3&rid=267808

[hakz2007]

RP's exports in February up by 42.3%

MANILA, April 13 (PNA) -- Philippine exports rose for the fourth consecutive month in February due to strong demand for electronic products because of the global economic rebound.

The National Statistics Office said exports rose 42.3 percent to $ 3.567 billion in February from its year-ago level of $ 2.506 billion.

However, on a monthly basis, it slightly declined by 0.4 percent from $ 3.579 billion in January 2010.

For the first two months, exports went up by 42.4 percent to $ 7.146 billion from $ 5.017 billion posted during the same two-month period in 2009.

The government expects exports to grow between 7 percent and 9 percent this year. Last year, exports dropped 21.9 percent.

Electronics, which accounted for 58.1 percent of the total export revenue in February, rose by 53.4 percent to $ 2.072 billion from $ 1.351 billion in February, last year.

Month-on-month, electronic products went up by 1.9 percent from $ 2.034 billion in January 2010.

Electronic products was the country's top export with a total earnings of $ 2.072 billion.

Sales of articles of apparel and clothing were valued at $ 126.58 million from $ 145.92 million in February 2009.

Exports of ignition wiring set and other wiring sets used in vehicles, aircraft and ships amounted to $ 91.85 million in February from $ 30.05 million last year.

Woodcrafts and furniture exports revenue amounted to $ 79.43 million, while metal components at $ 60.72 million.

Rounding up the list of the top ten exports for the month of February were coconut oil with export earnings of $ 54.61 million; other products manufactured from materials imported on consignment basis, $ 46.06 million; cathodes and sections of cathodes, $ 40.85 million; bananas (fresh), $ 30.18 million; and petroleum products, $ 27.53 million.

Japan, including Okinawa, remained the country's top destination of exports for February with revenue amounting to $ 627.04 million.

The United States, including Alaska and Hawaii, followed with export earnings of $ 603.83 million.

Singapore's export revenues amounted to $ 321.62 million and People's Republic of China with $ 296.28 million.

Other top ten markets for February were Germany, $ 291.20 million; Hong Kong, $ 259.62 million; Netherlands, $ 220.29 million; Republic of Korea, $ 169.61 million; Thailand, $ 133.76 million; and Taiwan, $ 105.98 million.

Total export receipts from the country's top ten markets for the month of February amounted to $ 3.029 billion or 84.9 percent of the total. (PNA)

http://www.pna.gov.ph/index.php?idn=...d=3&rid=269573

[hakz2007]

DTI-Davao continues to rally exports promotions to achieve growth

DAVAO CITY, April 14 (PNA) - The Department of Trade and Industry (DTI) in Davao Region is intensifying its export promotion activities in a bid to continuously achieve export growth.

DTI Regional Director Marizon S. Loreto said for 2010, the office is implementing a number of programs and projects that will stimulate the local export sector.

Loreto said data from the Bureau of Customs (BoC) revealed that as of February this year, the region already recorded an export value of US$ 151,790,000.

The fresh banana topped the said export chart recording a value of US$ 99,283,491. This was followed by natural rubber with US$ 8,729,126.78; fresh/canned pineapple with US$ 7,842,864; banana chip with US$ 7,835,758; and activated carbon with US$ 6,385,160.

Loreto also said the other commodities exported for the first two months of the year were gold with silver, desiccated coconut, coconut oil, tile, coconut shell charcoal, coconut fiber, fresh/dried papaya, fresh/frozen mango, copra (cake/meal/pellet), plyboard/plywood and lumber.

Last January, she said the regional office launched two priority programs--the Saba Banana Integrated Development Program and Virtual Poultry Farming Program.

Under the Saba Banana Integrated Development Program, a sustainable livelihood shall be provided to the indigenous peoples, sugar workers and banana farmers. This will also expand and sustain the supply of microwavable bananas produced and processed by Sagrex Foods, Inc. for the export market.

However, it is likewise envisioned that such products shall be available in the local market eventually.

Meanwhile, Loreto said the Virtual Poultry Farming Program is aimed at helping OFWs become Overseas Filipino Investors (OFIs) who shall monitor the farms virtually and access all the financial and technical records through the internet.

“As of now, Sagrex Foods is sending all of its microwavable saba bananas to the export market because of the very high demand. Thus, the sales that these will generate will be accounted for in our export figures. But with the increased volume of raw materials, the company might already serve the local market. The chickens, on the hand, shall be sold to San Miguel Foods, Inc.,” she explained.

Loreto said the Export Pathways Program (EPP) of the region is also being strengthened in order to maximize its benefits especially in developing more competent exporters.

She further said through the EPP, micro, small and medium enterprises (MSMEs) are being honed and given the right assistance in order to cope with the international requirements. The products of the priority industry clusters of the region (banana, mango, coconut, seaweed, wood, mining, tourism, and information and communications technology) are being promoted through the EPP.

“These are just some of the major initiatives we are doing to augur export development. Year on year, DTI-11 is assisting approximately 1,000 MSMEs through trade development and promotion, financing, investment promotion and industry development, financing, human resource development and technology promotion," she said. (PNA)

http://www.pna.gov.ph/index.php?idn=...d=3&rid=269672

[narthuril]

RP exports surge 42.3% in February
(philstar.com) Updated April 13, 2010 03:00 PM

MANILA, Philippines (Xinhua) – Philippine export revenue in February grew 42.3 percent compared with the same period last year.

The National Statistics Office reported today that February export revenue rose to $3.57 billion, on increased shipment of electronic products.

Electronic products, which account for nearly 60 percent of total revenue, or $2.072 billion in February, 53.4 percent higher from a year ago.

Major export markets include Japan, the US, China, Singapore and Germany. Analysts said global recovery boosted demand, encouraging recovery in Philippine export sector.

In January, export revenue growth hit 42.5 percent.

[hakz2007]

Spanish dairy firm eyes 6M Euro investment in RP

MADRID, April 16 (PNA) -- President Gloria Macapagal Arroyo met Thursday with Grupo Leche Pascual President Tomas Pascual Gomez Cuetera to discuss the planned six million euro investment of one of the biggest dairy companies in Spain.

In the meeting held at the Ritz Hotel here, Pascual presented to President Arroyo his plan to invest in the Philippines.

Pascual's company plans to build a plant that will manufacture long life yogurts(non-refrigerated) and soy products.

Trade Secretary Jesli Lapus said executives of San Miguel Corp. (SMC), Magnolia and Purefoods, who earlier met with Pascual, were impressed with the project.

Lapus said Grupo Leche Pascual is determined to achieve with a local partner the double goal of meeting domestic and regional market demand.

''This is a good investment...part of their marketing educational campaign is to do yogurt feeding in Philippine schools,'' Lapus said.

Considering the nutritive value of yogurt, the feeding program will greatly improve the Filipinos’ eating habits.

Lapus also said that Leche Pascual chose the Philippines for its first Asian venture due to its strategic location.

''The Philippines can be a hub for export,'' he said. (PNA)

http://www.pna.gov.ph/index.php?idn=...d=1&rid=270249

[jpdm]

Isuzu Crosswind export hits snag

BY IRMA ISIP
Malaya Business Insights
April 21, 2010

Cost issues are derailing plans of Isuzu Philippines Corp. to resume exports of its Asian utility vehicle Crosswind and to launch the Microbus.

IPC outgoing president Keiji Takeda said on Monday the Crosswind still has to penetrate the Central American market as the company seeks ways to narrow the gap between price and cost.

"The gap is too big for them to get orders," Takeda said.

The gap is about $1,000 to $1,500 per unit.

The company is negotiating with distributors in Guatemala and Costa Rica for completely built-up Crosswind after exports were halted last year.

In 2006 to 2008, IPC exported 60 units of Crosswind to these countries, Takeda said.

Takeda said exports to Central America may be expanded to include the Microbus, assuming a successful local launch.

The company has not received orders from clients as it has yet to perfect the final form of the Microbus.

The commercial launch of the Microbus has been set for the end of the year at the cost of P1.3 million per unit.

But according to Takeda, the cost of producing the Microbus is more than P1.3 million due to the repairs and touch-ups required after production.

The company is also eyeing more localization by sourcing parts from local manufacturers.

"We have to reduce (repairs) to minimize the cost. We can also localize more imported parts and components to reduce the parts costs, especially if we want to mass produce it," Takeda said.

He said most of the components that went into the production of two prototype units were imported. The body is sourced from a local maker, Centro Manufacturing Corp., while the chassis is produced by IPC.

"We are not satisfied with the prototype units," Takeda said, adding that they need to be reduced in length and in height.

The Microbus is a 16-seater all-purpose vehicle that is bigger than a regular van but smaller than a coaster.

It will be geared for mass transport such as for shuttle service. It can also be used as delivery vehicles.

The Microbus seats can be rearranged and can be custom-built depending on the requirements of the customers.

Using the NHR engine and power train from Japan, the Microbus is imported completely knocked-down from Indonesia and built locally by Centro.

IPC eyes to sell 40 to 50 units a month of the Microbus.

Utilizing the NHR chassis, this Microbus is designed to carry more passengers or larger cargoes than standard vans. The seats can be rearranged depending on the customer’s requirement.

It has a dual-aircon for that much needed comfort for all passengers and it can be installed with additional accessories based on current market demand.

The overall length is 5,025 mm, overall height is 2,250 mm and overall width is 1,700 mm.

Takeda said IPC will launch this year its new NKR series trucks after a little delay. The series is compliant with Euro 2 standards and follows the similar feat of the NHR, NPR and NQR series.

The resumption of NKR manufacture lifts the company’s production to more than 100 a month from 70.

[jpdm]

Exporters lose millions
in Europe air problem

BY JAY CHUA
Malaya Business Insights
April 21, 2010

Foreign air carriers at the Ninoy Aquino International Airport (Naia), reported millions of pesos have been lost when exports such as electronics and garments were unable to reach their destinations due to the closure of European airports.

The NAIA has four major bonded warehouses, such as the Miascor, Philippine Airport Ground Support Solutions (Pagss), Philippine Skylander Inc. (PSI); and Cargo House.

Pagss reported that they handled the cargo of KLM, Etihad, Gulf Air, Singapore Airlines, China Airlines, Emirates and Delta Airlines.

PAGSS manager Allan D. Curabo said they cannot quantify how much the airlines have lost in revenues.

More often, shippers withdraw their cargo at the NAIA and bring it to their own warehouses waiting for the ban to be lifted.

KLM, however, said they have a backlog of 60 tons of cargo over four days, and was able to carry on board only 12 tons of cargo yesterday, instead of the usual 24 tons.

"Our B777 had to load some 120 tons of fuel as a precautionary measure, not knowing what would happen once they reach Amsterdam, so payload is sacrificed for the sake of safety," said Maria Lourdes Reyes, assistant station manager of KLM.

Curabo estimated that airlines not flying directly to Europe probably carried about a ton of cargo each.

He said that shippers who found out that they would not be able to send their export abroad opted to withdraw their shipment and bring it to their own warehouses to save on storage fee.

The EU, on the other hand, said that they are losing about $200 million a day on revenues due to the cancellation of flights.

Jaime Bautista, president and CEO of the Philippine Airlines, said the government has asked them to bring home stranded Filipino workers in Spain.

The request came from the Civil Aviation Authority of the Philippines, Bautista said.

"It was just an informal request from CAAP. Knowing there is a ban, they said they hope the EU would allow the flights, considering that these are only for OFWs," he said.

Bautista was referring to the ban by the EU on RP airlines due to the security downgrade on CAAP.

As this is the peak season, Bautista said mounting the chartered flights depends on the availability of planes.

The Eyjafjallajokull volcano in southeast Iceland began erupting on April 14 for the second time in a month from below the Eyjafjallajokull glacier, hurling a plume of ash six to 11 km into the atmosphere and causing the biggest travel chaos in years in Europe.

Volcanic ash contains minute particles of glass and sand that can act like sandpaper on engines and airframes. So far, tens of thousands of flights have been grounded due to the volcanic ash cloud, causing billions of euros in loss.

Lilibeth Entico was one of those elated to leave after a three weeks vacation in his native Bicol.

Her joy was shortlived, however.

"We were told that we can take the flight but there is no assurance of a connecting flight to Madrid," she said.

Entico said she works in a restaurant in Spain, two hours away by plane from Amsterdam.

"I’m afraid that I might run out of money if i have to stay in Amsterdam for long," she said in the vernacular, adding that the cost of food and lodging in Europe is pretty expensive.

[jpdm]

Despite strong peso, exports
seen growing 10% this year

BY DWIGHT SARGA
Malay Business Insights
April 22, 2010

Despite the rising peso, exports this year could grow 10 percent or more because of renewed global demand.

Director Dennis Arroyo of the National Economic and Development Authority’s National Planning and Policy Staff said growth higher than the government’s 7 to 9 percent target would be driven by electronics exports.

Arroyo cited projections of the Semiconductor and Electronics Industries in the Philippines Inc. (SEAPI) that electronic exports could grow by 15 to 20 percent.

This was due to sustained demand in China, India, Japan and South America and strong performance of smart phones, mobile applications, automotive electronic products, high definition television, electronic notebooks and mini-notebooks.

"SEAPI talks of unbelievably strong orders," he said.

Electronics are the country’s largest export product, accounting for 58.1 percent of shipments in February. The sector shipped $2.07 billion in February, up 53.4 percent from the level during the same month last year.

UP Economics Professor Benjamin Diokno, a former budget secretary, said a double-digit growth is possible but said he would stick to the government’s 7 to 9 percent projection.

"The strong numbers in January and February are largely base effects," Diokno said.

There were earlier apprehensions that the peso’s appreciation would hurt exports but the figures appear not to bear these out.

Arroyo said the peso is rising because of strong overseas Filipino remittances and rising tourism and business process sector revenues.

He added that the weakening of the dollar is a global phenomenon arising from the low interest rates policy of the US Federal Reserve.

Arroyo recommended that macro-economic targets, including those for exports and gross domestic product, be revised after the release of first quarter’s GDP results in late May.

Exports rose by 42.3 percent to $3.57 billion in February, up for the fourth straight month, from $2.51 billion in 2009 due to continued demand caused by the global economic recovery. It grew by 42.5 percent in January.

Earlier, the Executive Technical Board of the Development and Budget Coordinating Committee recommended that exports target be raised to 8 percent to 10 percent.

The government, the Asian Development Bank and the World Bank see exports contributing significantly to overall growth.

Arroyo also said NEDA sees GDP growth hitting 3.6 percent target this year, but the agencies continues to be conservative because of uncertainties on the global front, exemplified by the Greek debt crisis.

[jpdm]

Exports from economic zones up by 49%

by Julito G. Rada
Manila Standard
April 24, 2010

EXPORTS generated by the special economic zones jumped 48.78 percent to $9.46 billion in the first quarter as demand for Philippine-made products improved.

In a report to Trade Secretary Jesli Lapus, Philippine Economic Zone Authority Director General Lilia de Lima said most of the gains came from electronics and manufacturing companies that were on their way to recovery after the global economic crisis.

Elmer San Pascual, Peza head of public relations and promotions at the agency, told the Manila Standard that the initial growth target for the electronics sector of 8 percent to 9 percent might be revised to 20 percent because of the industry’s strong recovery.

The recovery, started in the last quarter of 2009, was sustained throughout the first quarter, he said.

Workers who were laid off at the height of the economic crunch had been rehired to meet increasing orders from customers overseas.

Public economic zones in Cavite, Bataan, Baguio and Mactan posted $1.939 billion in exports, a 54.78-percent increase from the $1.25 billion reached a year ago.

The private economic zones, mostly located in the Calabarzon area, showed a 51.99-percent increase to $6.54 billion from $4.31 billion.

IT parks and buildings, mostly located in Metro Manila, added $979.14 million, a 22.156-percent increase over the $801.58 million recorded last year.

The total employment for the first quarter rose by 16.55 percent to 653,951 from 561,065.

Of that number, public economic zones posted a modest 2.78-percent increase to 123,631 employees.

Private economic zones hired 309,945, a 19.74-percent from the previous year, while IT parks and buildings hired 220,375, a 21.125-percent increase from the same period last year.