THE ASEAN economic landscape will be changing in the next two years.
Already, we have our sugar and rice farmers thinking of what to do when prices
come down after the tariffs disappear.
Sugar farmers may shift to
planting coffee and rice farmers have to think of niche or specialty markets
like organic rice, heirloom rice and anything but white rice (there is brown,
pink, black, etc).
In coffee we are happy to be part
of the ASEAN Coffee Federation whose members want to help each other address
the coming years’ increasing demand for coffee which may be about a deficit of
32 million bags (60 kilograms each) come year 2020. Already we are bringing in
experts who can help our farmers find the secrets to higher production and make
a road map to self-sufficiency. Present imports of coffee amount to no less
than 5 billion, mostly from Vietnam and Indonesia.
In coffee we are also happy to be
making a road map for the industry with the private sector coming together. We
have had several meetings with Nestlé (biggest buyer of local coffee), farmers,
government agencies and other private sector coffee users like Universal Robina
Corp. (URC). Already we are comparing production figures and finding a way to
reap low hanging fruits such as increasing the yield of even small landholdings
in Cavite and Sultan Kudarat. Our board members have been asked to speak around
the country in various fora, preaching about planting coffee.
Coffee consumption is increasing
double digits annually in the instant or coffee mix category while increasing
5-6% annually in the roast and ground sector (those who have to use coffee
makers to brew their coffee). Our production remains steady (if not declining)
at 25,000 MT while demand is over 100,000 MT already, if we are to add up all
the information we are getting from the trade.
So, it’s good to come together
with our ASEAN counterparts, if our industry should survive 2015. For us in
coffee, it is not just about ASEAN free trade, it is about the opportunity
brought about by increasing global coffee consumption which are driving prices
higher, but leaving our farmers wondering what to do next.
Cavite farmers will be tempted to
sell to developers while Mindanao is too far for some investors who hail from
Luzon. The Visayas, Panay in particular, under our Chair Nicholas Matti, may be
the next coffee area if URC and the Philippine Coffee Board, Inc. (PCBI) find
the farms and plant new trees. Nestle will take care of many areas in Mindanao
where they have pilot farms and nurseries. And Luzon coffee areas will have to
be more productive through the help of NGOs, non-profits like the PCBI and
government agencies. The ARMM will be an area the PCBI holds near and dear
because we also want to see peace profits, and not just economic profits.
Already we are working with Sulu coffee cooperatives and will continue to do so
until we reach our goal of self-sufficiency in coffee.
I can only write about coffee but
I worry about sugar, rice and even seaweeds. Are we competitive around the
region? I hear Cambodia’s rice prices are way lower than ours. And Vietnam or
Thailand’s sugar is cheaper than our white granules from Negros.
It is high-time for the
industries which are threatened to think of self-sufficiency and at the same
time encourage cooperation with regional players. I am thankful coffee is in
high demand and that Asia now has the major producers for the crop. The
Philippines will get a lot of boost from our cooperative neighbors, our lands
being so naturally fertile and still of low acidity.
So if you have not yet given it
much thought, it is time to do so now. There is a ASEAN Business Advisory Group
being convened by Jay Yuvallos and supported by Ms. Tessie Sy-Coson of the SM
Group. Maybe it is time industry players clustered together and cooperated with
their regional counterparts.
This is the dream of the ASEAN
ministers when they convened about the Free Trade Agreement in 1992. A free
flow of goods within the ASEAN community. A better ASEAN that will be
competitive in global markets. Will it mean cooperation in the region or just
increased competitiveness?
Chit U. Juan
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. Since we are currently changing the platform of www.yourvietnamexpert.com, you may contact us at: sbc.pte@gmail.com, provisionally. Many thanks.
No comments:
Post a Comment