CAPTURING THE OILS & FATS MARKET IN THE PHILIPPINES

THROUGH INNOVATIVE APPROACH

Total population - 102,965,300

Luzon

Republic of The Philippines Visayas

Mindanao

8 Regions 57,377,600

3 Regions 20,970,200

6 Regions 24,617,500

Oils & fats in the Philippines

Total coconut oil production in 2014 is 1.45 million MT, a drop of 310,000 MT from the 1.76 million MT recorded in 2012.

About 55% was exported due to high prices leading to a shortage of domestic supply.

Consumption of coconut oil slightly fell from 786,000 MT in 2012 to 535,000 MT in 2014, a drop of about 31.9%.

Palm oil consumption meanwhile, have increased from 340,000 MT in 2012 to 690,000 MT in 2014.

Oils & fats in the Philippines The World Health Organization (WHO) recommends that 30

percent of the energy (calorie) of an individual should be obtained from oil and fats. This works out to a per capita consumption of about 25/kg of oil and fats/year.

Average per capita consumption of oil and fats is only 11.5 kg per person/year.

The volume needed by the country cannot be served by coconut oil due to its high demand in export (oleo-chemicals).

Coconut oil in the world market is priced higher than palm oil, thus coconut farmers and traders earn more income through exports rather than selling the same at a lower price in the domestic market as vegetable oil similar to palm oil.

Domestic Demand

Factors that influence domestic demand of oils

and fats in the Philippines

•Food Consumption in the Philippines

• Increase in the number of working class

• Imported food distribution in the Philippines

Food Consumption in the Philippines

Higher Per Capita GDP (PPP) and lower unemployment rate. The Per Capita GDP (PPP) forecast for 2015 is almost US$6,600.

Philippines will be one of the fastest-growing economies over the next four decades, with its GDP predicted to be the 16th largest in the world by 2050. This is expected to lead to:- More people eating outside and ordering takeaways

(boosting the domestic fast food and catering industry)

Demand for quality and healthy food

Food Consumption in the Philippines

The Philippines is one of the world’s fastest youngest populations, with 60% of its 102.9 million people under 30 years of age.

The disparity between the rich and poor is large with 27% of Filipinos living below the poverty level (surviving on, or less than, US$ 1.25 per day).

Food Consumption in The Philippines

The Philippines is regarded as one of Asia’s most attractive retail growth markets as continued economic growth combined with a deregulated and highly fragmented market.

With more demand on modern lifestyle it

accelerates growth and opportunities in this sector to satisfy the growing consumer demand for retail ready food products in the medium-long term.

Philippines GDP Per Capita (PPP)

Philippines Unemployment Rate 2012 -2015

Increase in number of working class

Filipinos spend approximately 12% of total income eating out and the sector is valued at US$ 3 billion, with growth of 10%-15% in the last decade.

Traditional food service formats still enjoy a majority market share in the Philippines, but the modern food service market, driven by convenience and price and dominated by fast food restaurants/chains such as Jollibee, McDonalds and Chowking, is increasing its presence with speed.

Increase in number of working class

High-end restaurants and hotels are found in metropolitan Manila and service wealthy local and expatriate consumers. Both of these segments are heavily reliant upon imported foods.

Many fast foods, food processors and vegetable oil outlets in the country have recently shifted from other vegetable oils – from coconut, soybean, canola, etc. to palm oil as it is the cheapest and in many ways more nutritious, healthful and convenient to use than other vegetable oils.

Imported Food Distribution in the Philippines

The food sector in the Philippines is extremely fragmented due to the excessive numbers of food retail and service outlets.

The archipelagic nature of the country leads to an inefficient and costly distribution.

Imported Food Distribution in the Philippines

In general, imported food enters the Philippines by Air and Sea ports.

Airports: Manila, Clark, Cebu, Davao, Cagayan de Oro and Zamboanga

Seaports: Manila, Batangas, Subic, Cebu, Davao , Cagayan de Oro and General Santos

Imported Food Distribution in the Philippines

The Philippines’ Department of Agriculture and Bureau of Agriculture and Fisheries (animal and horticultural products) and the Department of Health and Food and Drugs Administration (processed foods) are the main agencies tasked with developing, regulating and enforcing food safety standards for all imported foods. Food products must be registered with the relevant agency, which can only be done by a Filipino entity and typically takes at least three months.

Philippine Food Import Supply Chain

Great Potential for Palm Oil in Philippines

Palm is readily available and reasonably priced.

Palm oil has been proven to be a healthy oil which is odourless and tasteless, perfect for consumers and manufacturers alike who are looking for a healthy oil for cooking and baking needs.

Palm oil has been proven to be a versatile oil which can be used in food and non-food applications.

Great Potential for Palm Oil in Philippines

Major food manufacturers such as San Miguel, Dunkin Donuts, Chowking, Super Bowl and Mix plant have switched to palm oil, they have been doing so on a stage by stage basis to avoid an abrupt change in their food products.

The Philippine public has also acquired the taste for palm oil in their prepared foods.

The very competitive cost of palm oil makes it the ideal choice for industrial food manufacturers as well as households.

Great Potential for Palm Oil in Philippines

Higher domestic income has resulted in more Filipinos to go on domestic tourism.

Increased in tourism has prompted hotels (international franchises and independent) to grow to cater the need.

Hotel mainly uses palm oil for catering in food preparation.

Increase in hotels, reflected in increased of palm oil imports.

Factors Which Will Influence Increased Uptake of Palm Oil

Food service sectors: Hotel cafes & bars, full service restaurants, fats food chains, street stalls / kiosks

Increase demand because of lifestyle and also tourism

Many hotels and restaurants have started using palm oil but there is great potential for higher uptake in view of the more competitive price

There will invariably be an increase in fast food outlets which will fuel the demand for palm oil

THE VITAL INGREDIENTS IN

TACKLING PHILIPPINE MARKET

• Introduce & advertise superior quality products suitable to Philippine climate with marketing support.

• Establish widespread & consistent availability in target markets.

• Implement reliable distribution system and follow scheduled calls strictly.

• Define clear Vision/Mission to win customers to our side with friendly service in every visit/call.

• Regularly monitor & evaluate daily performance and efficiency.

• Ensure every employee enjoy their job and make them want to do what we exactly want them to do.

• Treasure the value of “ONE TEAM, ONE GOAL’ - carried-out in all levels of the organization.

OUR JOURNEY

OUR COVERAGE

OUR NEW FACILITY

MARKETING EVENTS & ACTIVITIES

OFFICIAL GRAND LAUNCHING OF SAJI AND SIGNING CEREMONY BETWEEN

DELIMA OIL PRODUCTS & IMI

PRODUCT AWARENESS CAMPAIGN

PASKO SA SUGBO – DEC 2013

CLEAN-UP DRIVE – DULJO FATIMA, CEBU

WORLD FOOD EXPO (VISAYAS) 2013

WORLD FOOD EXPO (MINDANAO) 2013

MALAYSIAN PALM OIL COUNCIL – FORUM (SEPT 2013)

WORLD FOOD EXPO 2014

MANILA (Luzon)

DAVAO (Mindanao)

CEBU (Visayas)

HOTEL RESORTS & RESTAURANTS ASSOCIATION OF CEBU (HRRAC)

COOKING DEMO

KUMBIRA FOOD EXPO 2014 – CDO (Mindanao)

PRODUCT & TECHNICAL DEMO (2014) International School of Culinary Arts & Hotel Management (ISCAHM)

MPOC FORUM 2014 (Waterfront Hotel, Cebu City)

MASSKARA FESTIVAL, BACOLOD CITY

MASSKARA FESTIVAL, BACOLOD CITY

SAJI MOTORCADE , BACOLOD CITY

DINAGYANG FESTIVAL, ILOILO CITY

SAJI MOTORCADE , ILOILO CITY

SAJI MOTORCADE , DAVAO CITY

SAJI MOTORCADE , DAVAO CITY

SM LAUNCHPAD – SM CITY, NORTH RECLAMATION AREA, CEBU CITY

SM LAUNCHPAD – SM SAVEMORE PARKMALL, MANDAUE CITY, CEBU

SM LAUNCHPAD – SM MACTAN, CEBU

SM LAUNCHPAD – CAGAYAN DE ORO CITY

SM LAUNCHPAD – MANDURRIAO, ILOILO

SM LAUNCHPAD, BACOLOD CITY

SM LAUNCHPAD SM ECOLAND, DAVAO CTY

FILIPINO FRANCHISE SHOW WORLD TRADE CENTER, MANILA

47TH INTERNATIONAL BAZAAR CCP COMPLEX, MANILA

2nd BIMP-EAGA and IMT-GT Trade Fair And Business Leaders’ Conference, Davao City

PRODUCT & TECHNICAL DEMO (2015) International School of Culinary Arts & Hotel Management (ISCAHM)

PRODUCT & TECHNICAL DEMO (2015) International School of Culinary Arts & Hotel Management (ISCAHM)

International Food Exhibition (IFEX) 21-24 May 2015

WOFEX 2015 (DAVAO)

WOFEX 2015 (DAVAO)

Thank you