management association of the philippines - AgriBusiness ...

MANAGEMENT ASSOCIATION OF THE PHILIPPINES
AgriBusiness and Countryside Development Foundation
� Office: 41 st Floor Rufino Pacific Tower, 6784 Ayala Avenue, Makati City 1600 � � Tel: 811-0090 or 817-1511
� Fax: 811-1024 �Cell No: 09168215982 � Email: info@map-abcdf.com.ph � Website: www.map-abcdf.com.ph
Miinuttes off tthe 3 r
rdd Weeklly Forrum Meettiing
27 January 2009 �7:30am –9:00am � Room 1, Parish Center, Santuario De San Antonio, McKinley Road, Forbes Park, Makati City.
MAP ABCDF Members:
1. AMANTE, Victorio
2. DRYSDALE, George
3. FOLLOSCO, Ceferino
4. HODGE, James
5. IGUAL, Manuel
6. ILUSORIO, Ramon
7. KOTAMRAJU, Venu
8. PAVEY, Roy
9. QUESADA, Hector
10. RODRIGUEZ, Victor
11. YUPANGCO, Robert
PFA Member:
12. RUSO, Bing (Marketing Manager, GHD)
Guest Speaker and Company:
13. DEL MUNDO, Josephine (Training, Systems and Regulations, Technology Department,
Universal Robina Corporation)
14. UGALINO, Analiza (Wife of Mr. Audie Ugalino)
15. UGALINO, Audie (Export Director, Universal Robina Corporation)
Guests:
16. ARQUIZA, Leah (Trader / Trainee, Mida Trade)
17. CABASUG, Judd (Attorney-At-Law, Multinational Investment Bancorporation)
18. CHUN, Imee (Business Development, Vitarich Corporation)
19. DATUKAN, Amalia (Market Development Specialist, Export Market Team)
20. DIMAANO, Richard (Manager – Project Management, GHD)
21. ECHEVARRIA, Maricel (Trade Manager, Joint Global Resources International, Inc.)
AgriBusiness and Countryside Development Foundation

3 rd Weekly Forum Meeting 27 January 2009
22. FORTUNA, Romeo Jr. (Pharmacist, Natasha)
23. GO, Marianne (Business Reporter, The Philippine Star)
24. LABRADOR, Julius (President, Labrador Electronics)
25. LABRADOR, Lourdes (President, Castillejos Agri Farms Inc.)
26. MAGALLANES, Annazoe (Project Specialist, Leverage International (Consultant) Inc.)
27. MENDOZA, Michelle (Pharmacist, Natasha Group of Companies)
28. REYES, Roberto II (Business Development Manager, Equipment Engineers, Inc.)
29. TOMELL, James (Advisor, Jamart Foundation, Inc.)
30. VALMONTE, Javin (BDE, All Transport Network)
31. VICTORINO, Christian (Admin Staff, Natasha Group of Companies)
32. ZAMORA, Ariel (R&D / QAQC Specialist, Mida Foods Distributors, Inc.)
Dropped By:
33. EMRALINO, MEL (Senior Vet., Paradizoo / Zoobic)
34. HERRERA, Daisy (Vet., Paradizoo)
35. SOLARTE, Karl (Vet., Paradizoo)
Secretariat:
36. ANDIO, Perla
37. RINGOR, Jan Michael M.
38. YAP, Bernadette N.
Preliminaries:
1. The Chairman called the meeting to order at 7:30am.
2. The Philippine and Republic of Finland flags and hymns were honored.
3. The Chairman announced the availability of the Finnish Technologies and some magazines.
Magazines will be given free of charge but the Finnish technologies will be charged at P200.00
per copy to cover freight costs.
4. Mr. Labrador shared an article which tackles the coconut industry.
5. Each attendee was asked to introduce himself - his work, advocacy or business. Likewise, if
there is any specific question or comment that the speaker should address in his talk.
Main Agenda:
Mr. Audie C. Ugalino is the Export Director of Universal Robina Corporation (URC). His
primary responsibility is the export of URC products being distributed in over 50 countries. He is
also developing the international base to build Jack 'n Jill as a solid regional and significant
global brand. Audie is concurrent General Manager of Chic Center Corporation which is the
country's leading nail care company. It is an affiliate company of JG Summit. Audie has a
Bachelor of Science in Sugar Technology degree from the University of the Philippines. In 1989,
he graduated with a Master of Business Management degree from the Asian Institute of
Management (AIM), with distinction and was class valedictorian.
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3 rd Weekly Forum Meeting 27 January 2009
His complete presentation entitled, "Gaining Ground on Halal Food Exports" can be downloaded
through Google search www.map-abcdf.com.ph
Below are some of the important matters that surfaced in the presentation and open forum:
1. They normally choose 1 distributor in 1 country only with legitimate coverage. They also
travel every month to keep in touch. Product development should be user friendly. The products
are world class quality.
2. Halal certification is usually valid only for 1 year and has to be always renewed. Getting a
Halal certification at the start may be costly but it is necessary.
3. It is said that Kuwait gives a faster translation and Saudi is standard.
4. "Best before ..." labels are not allowed. The manufacturing and expiry dates are required.
5. Snacks used to require 9 to 12 months validity from manufacturing to expiry but it is now
moving more towards 12 months. The process is evolving.
6. The market is not only for food but covers cosmetics, leather products, etc.
7. The market in the Middle East is for genuine halal. The market is big as it does not only cover
the ethnics but includes say the food service industry like airlines, military, prisons, etc
8. The European market is focused on the hypermarkets. Non Muslims also form part of the
market because of the need for humane animal treatment.
9. URC's market includes ASEAN and the Middle East. The former has a 6% share done through
the subsidiaries while the latter has a 20% share which is the gold mine since the consumers are
the middle class and is a growing market of high per capita income with a strong need to import
food. In the Middle East, Piatos is a big export product that is basically bought by the locals, not
Filipino OFWs.
10. Dr. Follosco asked about what has happened in Halal development for President Arroyo once
raised hell for nothing was happening for 3 years. He also asked about the market share of the
Philippines in the Halal market. Other queries:
• is slaughtering of animals done by Imams for if it is it will become a problem in the
Luzon and Visayas islands.
• how is URC versus its competitors;
• does URC source locally ;
• and the effect of the present crisis to the Halal market.
Mr. Ugalino replied as follows:
Philippine Halal market share is very small - less than 1 % that is why there are really
opportunities. Since they are in packaged foods, they are not subject to the slaughtering
of animals section. But if so, the relationship with the supplier is important for disclosure and the
strict requirements including on the machinery and equipment have to be complied with; Biggest
competitors come from Malaysia under the Oriental brand. On corn chips they have market
dominance because the competitors do not have corn. The Piatos brand competes with Pringle's
etc. The last quarter of 2008 saw drop in numbers which can be attributed to the low crude prices
in the Middle East.
11. In relation to Mr. Igual's query, Mr. Ugalino said Halal will look into both materials and
processes. Many are concerned about food safety and hygienic requirements.
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3 rd Weekly Forum Meeting 27 January 2009
12. In response to the question of Ms. Datukan, Mr. Ugalino mentioned that the following
products are sourced by URC locally:
• coffee beans –Cavite, Batangas and Davao
• corn - Cagayan De Oro, Bukidnon
• potatoes - Cordilleras
13. Ms. Echevarria asked when URC started and what are the projections. Mr. Ugalino said there
is high growth that it can double. The speaker again emphasized the need for quality.
14. The Halal market is growing also because the Muslims are the fastest growing population
expected at 5-7% per year.
15. There should be a match with the potential market.
16. Exporting also means being competitive which underlies the requirement to invest for
promotion and support which entails spending money.
17. The Chairman commented that since free flow of information is necessary, would Mr.
Ugalino be open about the exchange of information, the provision of a link to the web site, and a
listing of resource expertise, etc. Mr. Ugalino initially said yes.
18. Mr. Yupangco asked if URC exports meats like goat. Mr. Ugalino said they are basically in
snack foods.
19.. When asked to rate competitiveness in a scale of 1 to 10, Mr. Ugalino rated URC as between
8 to 9. Vietnam is cheaper than the Philippines; Thailand is at par with the Philippines; and
Indonesia can be more expensive than the Philippines.
The President awarded to the guest speaker the certificate of appreciation. The meeting
was declared adjourned at around 9:15 am. Exchange of business cards was encouraged
after and private discussions.
AgriBusiness and Countryside Development Foundation
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