Supporting Irish food exports to the Philippines

Transcription

1 EPBN: Supporting Irish food exports to the Philippines

2 AGENDA 1. Introduction: The Philippines 2. Market overview: Dairy, beef, hog & seafood 3. Exporting food to the Philippines 4. EPBN support services for Irish exporters

3 1 INTRODUCTION Why do business with the Philippines

4 LUCRATIVE ECONOMIC PROSPECTS Fast-growing country in Southeast Asia with 6 8% growth forecast in the next three years (ADB) World s highest score in Consumer Confidence Index (Nielsen) Currently the 38th largest economy (World Bank) and poised to be the 19th most powerful economy by 2050 (PwC) FTAs with ASEAN countries, China, India, Japan, Korea, Australia, and New Zealand Covered by EU GSP+ Scheme Investment grade ratings from Moody s, Standard & Poor s, Fitch, and NICE Investors Service

5 GLOBALISED DEMAND-DRIVEN POPULATION Consumption-driven economy fuelled by overseas remittances Booming BPO sector seen to drive food sales Snacking culture favours packaged food and beverages Multicultural tastes and preferences that drive food trends (e.g., ready-to-eat meals, premium labels, healthy and functional food)

6 BOOMING FOOD INDUSTRY Over food processing establishments Fast-developing retail industry with 13% growth rate Food retail seen to account for 1/5 of the country s GDP in 2025 Food service industry amounts to US$7,2 billion with an estimated 15 to 20% annual growth Robust expansion in the tourism and hospitality sector

7 2 beef, MARKET OVERVIEW Import trends in the dairy, swine & seafood sectors

8 DAIRY Imports of milk and dairy products increased by 51% (from 299 million kg to 453 million kg) in 2016 Milk powder constitutes the bulk of imports at 62%, followed by UHT and other dairy products Other dairies 23% Whole milk 8% Buttermilk 11% UHT 15% Milk powder 62% Whey 18% Skimmed milk 63% (Philippine National Dairy Authority 2017)

9 DAIRY Imported dairy mainly comes from New Zealand and the U.S. 40% 30% 20% 10% 0% New Zealand U.S. Australia Germany (Philippine National Dairy Authority 2017)

10 CATTLE & SWINE MEAT Beef import demand is increasing steadily as shipments amounted to almost tonnes in 2016 compared to tonnes in % 30% 20% 10% 0% Australia Brazil Ireland U.S. Others (U.K. AHDB 2017)

11 CATTLE & SWINE MEAT Imports of fresh/frozen pork were up one third in 2016 to tonnes compared to about tonnes in % 20% 10% 0% Germany Canada France U.S. Spain (U.K. AHDB 2017)

12 CATTLE & SWINE MEAT The pig offal trade is even larger than for pork meat and imports in 2016 stood at tonnes (more than double than in the last four years). 25% 20% 15% 10% 5% 0% Germany Spain U.S. France (U.K. AHDB 2017)

13 SEAFOOD Major fishery exports include tuna, seaweed, prawn, and crab, with total export value of US$ 943 million in % 20% 15% 10% 5% 0% U.S. Japan Hong Kong Germany China (Philippine Bureau of Fisheries & Aquatic Resources 2015)

14 SEAFOOD Top imports include frozen fish (tuna, mackerel and sardines) and prawn feeds, with total import value of US$ 432 million in % 20% 15% 10% 5% 0% China Vietnam PNG Taiwan (Philippine Bureau of Fisheries & Aquatic Resources 2015) South Korea Denmark

15 3 TRADING WITH THE PHILIPPINES Practical and regulatory information on exporting food to the Philippine market

16 FOOD IMPORT REQUIREMENTS WTO member with MFN tariff schedule for EU exporters No quantitative restrictions except for rice Tariff-rate quotas for sensitive products (e.g. pork) Sanitary and phytosanitary import clearances for all agricultural commodities (e.g. meat products and seafood) Minimum access volume certificates for TRQ products Registered Philippine importer for ALL food imports

17 KEY REGULATORY BODIES

18 REGULATIONS ON LICENSING & REGISTRATION FDA License to Operate (LTO) Initial licensing fee of EUR 70 with 2-year validity License renewal of EUR 135 with 5-year validity FDA Certificate of Product Registration (CPR) Initial CPR valid for 1 year Renewal fee ranging from EUR 20 to 85 with 5-year validity Risk-based classification of food products according to Codex Alimentarius general standards for food additives and UN FAO risk categories

19 REGULATIONS ON LICENSING & REGISTRATION List of CPR documentary requirements Accomplished Integrated Application Form as prescribed by current FDA regulations; Proof of Payment of Fees as prescribed by current FDA regulations; Clear and complete loose labels or artworks, as applicable, of all packaging sizes, or equivalent as defined by FDA regulations except for bulk raw materials, ingredients and food additives intended for further processing or for distribution to establishments/ manufacturers for further processing; Pictures of the product in all angles and in difference packaging sizes, and from at least two different perspectives allowing visual recognition of a product as the same with the other one being registered, as applicable. As applicable, documents to substantiate claims, such as technical, nutritional or health studies or reports, market-research studies, Certificate of Analysis, quantitative studies and computations, scientific reports or studies published in peer-reviewed scientific journals, certificates or certification to support use of logo/seal on Halal, Organic, or Kosher food and in compliance with current labelling regulations.

20 REGULATIONS ON LICENSING & REGISTRATION Categories of food products Low Risk Medium Risk High Risk No (and unlikely to support) pathogenic micro-organisms Possible (but unlikely to support) pathogenic micro-organisms Possible (and likely to support) pathogenic micro-organisms e.g. snack foods, breakfast cereals, pasta and noodles, alcoholic beverages, coffee, tea, refined/raw sugars, honey e.g. milk powder, tomato products, canned or bottle fruit and vegetable preserve, processed meat and poultry, processed fish and fish products e.g. milk and dairybased drinks, cheese, frozen processed meat, and infant formula

21 REGULATIONS ON LABELLING FDA Administrative Order : Revised Rules & Regulations on Labelling Food Products The following information is required on the labels of imported food products a) Name of the food b) List of ingredients used in the product (in decreasing order of proportion), including additives, flavourings and preservatives used c) Net contents and drained weight d) Name and address of manufacturer/packer or distributor, including country of origin for imported products and name and the address of Philippine importer/distributor e) Lot identification In terms of nutritional claims, the label must contain consumer information on the product s value due to its special use.

22 REGULATIONS ON LABELLING Current regulations do not require imported food items to be marked specifically for export to the Philippines. It is recommended to remove such labels indicating shipment to another country. Philippine food regulations generally follow the U.S. Food and Drug Administration policies and guidelines for food additives, good manufacturing practices, and suitability of packaging materials for food use.

23 REGULATIONS FOR IMPORTED MEAT DA Administrative Order : Revised Rules & Regulations on Meat Imports Veterinary Quarantine Clearance (VQC) certificate to be obtained by a DA-accredited importer prior to the importation of meat and meat products Valid for 60 days Non-transferable One shipment/bill-of-lading per VQC

24 REGULATIONS FOR IMPORTED MEAT DA Administrative Circular : Accreditation of foreign meat establishments Meat exporters need to be accredited by DA before they can ship their products to the Philippines. Two modes of accreditation: system and traditional System-accredited Traditionally accredited On-going

25 SUMMARY OF EXPORT GUIDE Partner with accredited importers Secure DA accreditation for meat and poultry exports Submit phytosanitary/health certification from relevant MS regulatory body for customs inspection Verify whether agri-food exports are prohibited, liberalised or regulated Obtain import/registration licenses (DAI-VQC for meat & FDA-CPR for processed food)

26 4 EU-PHILIPPINES BUSINESS NETWORK Support services for Irish food exporters

27 STRATEGIC PARTNERSHIP

28 SUPPORT SERVICES Policy advocacy Fact-finding commercial missions Market access strategy & local business intelligence B2B matching

29 PROSPECTIVE TRADE MISSIONS

30 EPBN: Supporting Irish food exports to the Philippines Antonio Alcazar III EU Outreach & Business Support Consultant