fruit and vegetable in philipines
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Human Resource and Shared Services
By: Francisco X. Lorenzo8-10 September 2010
Hong Kong, China
Fresh Fruit Exports
from the Philippines
The Lapanday Foods
Opportunities
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Outline
1. The major fresh products of the Philippines and how they performin the market Banana Pineapple Mango Other promising crops which could be winners in the export market
2. Major market challenges of Philippine fresh produce in the Asianmarkets competition with other fruits competition with other countries competition among Philippine based companies
3. Market trends/changes in the past 10 years of the Philippine FreshProduce industry
4. Sharing Lapanday's experience from being a grower for themultinationals until transforming to become a leading global player.
5. Our Seed-to-shelf philosophy6. Conclusion
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Bananas
The major fruit export from the Philippines
Number two exporter in the world
Dominates most Asian Markets Worth $250 M in Export Revenues
Creates and Maintains 200,000 Jobs
An Estimated 60,000 hectares planted
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Bananas
Average Growth of 6.2 percent per year
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Philippine Pineapple Exports
Second largest exporter of Sweet GoldenPineapple
Estimated 25,000 hectares planted
Philippines is the 3rd largest exporter ofpineapples
Fresh Exports shifted from the Smooth
Cayene variety to Golden Sweet MD2 The Philippines Dominates major markets
in Japan and Korea
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Pineapple Exports from the
Philippines
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Mangoes
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Share of 2008 Mango Exports
Source: Philexport
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Mango Developments
China allows eight companies to exportmangoes
Australia accepts mangoes from DavaoSur
Taiwan is reviewing the quarantineprocedures for mangoes from thePhilippines
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Other Promising Fruits for
Export Papayas
Avocado Dragon Fruit
Other Banana Varieties
Durian Mangosteen
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MAJOR MARKET
CHALLENGES OF PHILIPPINEFRESH PRODUCE IN THE
ASIAN MARKETS
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Philippine Major BananaMarkets
3836
12 11
1 2
0
5
10
15
20
25
30
35
40
Japan ME China Korea Russia Hong Kong
% by Volume
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Philippine Major FreshPineapple Markets
66
21
9
2 20
10
20
30
40
50
60
70
Japan Korea ME China Russia
% by Volume
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Major Asian Markets forPhilippine Fresh Fruit Exporters
Japan : Mature
Korea : Shifting
Singapore: Growing Hong Kong: Growing
China : Growing
Middle East: Growing
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Other Competing Fruits
Domestic production: bananas and localfruit
Summer fruit Temperate and Subtropical Fruit
Bananas and Pineapples can provide a
whole year supply.
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Challenges at the MajorMarkets
Shift from traditional wholesaler-supermarket set up
Consolidation of supermarket chains
Growth of convenience store chains
Growth of the hypermarket chains
Entry and consolidation of theMultinational supermarket chains
Global Sourcing
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Competition with other countries
Bananas: Japan Market: Ecuador and Taiwan Korea: None
Middle East: India China: Domestic productionPineapples (Sweet Variety) Japan Market: None Korea: None China: Domestic production
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Share of Banana Exports
Source: Unctad FAO Statistics
2002-2006
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Competition Among Philippine BasedCompanies
Dole is the top exporter of Bananas fromthe Philippines.
Followed by Del Monte, Chiquita Unifrutti,Sumitomo and Lapanday
Other small exporters sector is growing,
though it has many challenges to face.
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Trends and Changes to Philippine FruitIndustry
More independent and small bananagrowers
More independent buyers, consolidators
Container space availability
Reducing Tariffs
Non-Tariff Barriers More affluent and discriminating
consumers
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Lapandays Transition from Grower to aGlobal Player
Started as Grower for Del Monte and thenChiquita
Operated large farms and managed a smallgrower program.
Opportunity was found in the class B market forChina.
The major barrier to be a market player at thattime was shipping the shipping limitation
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The Solutions Lapanday Took
Built a state of the art cold store to hold fruits for2 weeks
Started a vessel rotation to China every two
weeks Planted new areas for the China Market
Established special technical and quality groups
Penetrated the high quality demandingJapanese market.
Continued plantation and market expansions
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WHO ARE LAPANDAY FOODS?
The Philippines leading independent Banana company
24 plantations, 5,600 hectares of Banana & 550 hectares
ofPineapple production
4,700 employees
Production 23 million cartons of Banana per annum
Production 2 million cartons of Pineapples per annum
12% of Philippine export banana production
Tissue culture laboratory and extensive R&D and nursery
facilities
Plastic and carton factories with integrated
recycling programs
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1,500 pallet position cold storage & pre-cooling
facility
Private port, cold storage and loading piers
5 reefer ships on time charter serving Japan, China,
South Korea, container service to the Middle East
and South East and Northern Asia
Sales in 13 countries in Asia and the Middle East
with sales offices in Hong Kong, Singapore & Tokyo
The Philippines leading provider of Private Label
Brands
Production contracts with Fresh Del Monte
Serving the multinational brands as a contract
grower and packer since the 1970s
WHO ARE LAPANDAY FOODS?
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PRODUCTION AREAS
Banana and Pineapple
production is based on
the southernmost
Philippine island of
Mindanao
The city of Davao is
the regional capital and
it is from here that
Lapanday exports to
Asia and the MiddleEast
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PRODUCTION AREAS
Farm Location map
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Regular Cavendish and high brix Highland
Cavendish varieties are available year round
Choice of 4kg, 7kg, 13kg or 18kg carton
packs
4-9 hand pack, cluster pack, prepackaged
consumer packs options
Lapanday brands Aloha, Estrella or Mabuhay
or packed under customers own brand
Reefer ship service to China, Japan, and
sometimes to Korea
Weekly container service to ports across
Asia and the Middle East
BANANAS FROM LAPANDAY
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PINEAPPLES FROM LAPANDAY
Sweet tasting hi-brix hybrid pineapples marketed under the Honey
Pines brand
3 times the vitamin C of regular pineapples
High external shell color, long shelf life and year round production
650 hectares of production
2010 volume availability 1.8 million cartons
12kg & 18kg cartons available in count sizes 5-18. Fresh sale and fresh-
cut selections
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QUALITY ASSURANCE FROM
LAPANDAY
Lapanday has invested heavily in researchand agri-technology. Advances soil and leafanalysis testing facilities and a research teamclosely monitor soil fertility, plant nutrition, andpest and disease management in the
plantations.
Lapanday operates the Philippines largesttissue culture laboratory, micro-propagating upto 1,000,000 new disease free plants everymonth for its plantations
ISO, SQF and HACCP practices wereinstitutes in 2003 and guide Lapandaysproduction and packing practices
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QUALITY ASSURANCE FROMLAPANDAY
Surveyors conduct field inspections in conjunctionwith plantation managers. Weekly quality reportsare circulated throughout senior managementensuring rapid response.
Inspectors operate in each of the packing houses
ensuring product quality compliance meetsinternational standards set for each market
A third and final inspection tier exists in the loadingports with all product subject to final inspectionbefore export clearance. Inspectors are alsostationed in the major markets and undertakearrival inspections
Lapanday provides to its customers qualityassurance from seed to shelf
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Traditional Delivery Channels forBananas
Multinational
Brand only
provided the
country
market andbrand name
The product Changed hands
up to seven times before
reaching the customer
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Lapandays Marketing Set-up in
the 2000s
Ripen and
deliverImporter Wholesaler alsoprovides buffer volumes
for the supermarkets
Product Changes hands
only three times to
reach the customer
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Key to Lapandays Seed toShelf Program Have sufficient Volumes Grow with your customers requirements Operate and managed plantations
Direct grower sources, no consolidators Superior quality as good or better than the
Regular brands Flexibility in product presentation
Attractive pricing Reliable shipping arrangements Going direct to the market
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Thank You !Francisco X. LorenzoSales and Foreign TradeLapanday Foods Corporation+63 82 234 9003
fxlorenzo@lapanday.comwww.lapanday.com
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