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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. AgriBusiness and Countryside Development Foundation 2
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. AgriBusiness and Countryside Development Foundation 3
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