Market View Videos:
Philippines Video Transcript
In 2008 Australia and New Zealand entered into a Free Trade Agreement, FTA, with the Association of South East Asian Nations, ASEAN. The FTA will see a significant reduction in tariffs over the next four or five years, making the Philippines an attractive export destination for Victorian products.
At the top of the market are the A-plus stores, servicing the upper class Filipino and expatriate communities. This is where a lot of Victorian exports are positioned.
“The Philippines represents a key export market for Victorian producers. The Philippines is still characterised by a large number of wet market outlets and a lot of these wet markets use imported products. But the retail sector is growing with some of the larger retail chains, Tescos Carrefours are moving into the Philippines in force. Cash and Carry, they’re all there”
The foodservice sector is growing, along with increasing economic and political stability, which presents good opportunities in the Philippines for Victorian producers.
High value cuts of meat do well in this sector but there is also a lot of interest in cheap sources of protein, such as second cuts of meat. Other industries that have very good opportunities are grains, of which the Philippines is a large consumer, dairy for selected products and powders, and horticultural produce at certain times of the year.
“These four and five-star dining establishments are growing in number. It represents a large part of the GDP of the Philippines, about 40%. It's growing at 20% per annum. And, there's a lot of Victorian produce; grains, dairy produce, that are being utilised in the Philippines.”
Food security is a key concern for the Philippines, which presents opportunities for exporting of our business services to increase local capacity to produce their own food. There is particular interest in goat, aquaculture, and meat production.
“There's some interest in dairy, and so the services associated with those industries is an opportunity for Victorian service providers. The Philippines considers itself very powder oriented for dairy, but there is more and more interest in supply of UHT and top shelf cheeses. So for dairy, that would be one target area. Horticultural produce - there's a lot of opportunity in the Philippines for horticultural produce. You just have to know some of the nuances of the market. For instance, the Chinese New Year and over Christmas they like to give gifts and in each of the gifts a bouquet will include 12 or 13 round pieces of fruit so they like round food, and it’s a real opportunity. There’s those sorts of opportunities in the Philippines associated with culture.”