Tuesday, February 19, 2008 Exports rise by 10.5% in 2007
MERCHANDISE export earnings from the Davao City port managed to surge by 10.5 percent last year despite the strengthening of the Philippine peso as against the US currency.
Data from the Bureau of Customs (BoC) and One Stop Export Documentation Center (OSEDC) housed the Department of Trade and Industry (DTI)-Southern Mindanao revealed that export earnings of the region in 2007 reached US$720.4 million, a remarkable leap from its 2006 level of US$651.736 million. The number of export entries totaled 9,516, four percent higher than that of the previous year.
The top 10-dollar earners from Davao port accumulated US$691.6 million in 2007, which showed a respectable growth of 15.5 percent.
Of the top 10 exports, banana (fresh, puree, and flour) maintained its hold as the leading export commodity of the region, which posted US$417.7 million.
Meanwhile, pineapple, both fresh and canned, was on the second spot reaping US$120.8, higher by 144.53 percent as compared to previous year's figure.
The other commodities included in the top 10 are rubber, banana chips, activated carbon/charcoal/dust/briquettes, desiccated coconut chips, finished wood products, frozen tuna, coconut/acid oil/cake/liquor, and asparagus.
Moreover, the report showed that the exports generated from the identified Industry Clusters accounted for 72 percent of the total export earnings. Export products under the region's Industry Clusters were valued at US$518 million.
The Industry Clustering Approach is a development strategy implemented by the Regional Development Council-Economic Development Committee (RDC-EDC). Under this, 11 industries of great potential -- mango, banana, seaweed, coconut, wood, mining, eco-tourism, information and communications technology (ICT), machineries and equipment parts, meat and poultry, and bio-fuel -- are being focused for development.
The initiatives being done to improve market access of local exporters have been the major factor contributing to the increase, by Trade and Industry Assistant Secretary Merly M. Cruz said.
Aside from the Industry Clustering Approach, Cruz cited the Export Pathways program, trade fairs, trade mission, and product development projects as among the contributory factors that have enabled the local exporters gain an advantage over their competitors.
The Export Pathways program of DTI-Southern Mindanao is an innovative strategy, which aims to assist existing and new exporters by offering client-focused interventions to fit their requirements at any stage of their business.
A total of 127 small and medium enterprises (SMEs) in the region were enrolled in the program.
Most of these SMEs are engaged in food processing - banana chips, dried mango, and mango puree. The said strategy has been adopted by DTI-Head Office for replication to all other regions.
The trade fairs, on the other hand, have helped local entrepreneurs find business partners who could be their channel towards introducing their products abroad. Among these trade fairs were the National Trade Fair (NTF) held in Manila, Mindanao Trade Expo (MTE), and Davao Trade Expo (DATE), which were both conducted in Davao City.
Meanwhile, the Mindanao trade and investment mission to the Kingdom of Saudi Arabia (KSA) raked in positive feedbacks such as the creation of the Magic 25 project wherein the 1.4 million overseas Filipino workers (OFWs) there are being encouraged to patronize at least 25 Saudi Riyals worth of Filipino products per month. The RS25.00 per OFW every month would mean an additional of US$112 million to the region's annual export achievement.
The trade and investment mission has resulted to the establishment of trading companies by three members of the delegation representing the RD Group of Companies, Sagrex Corporation, and Maharlika Agro-Marine Ventures. The trading companies vowed to also handle the promotion of other Philippine-made products that are of potential in the KSA market.
"By joining trade fairs, trade mission, and the like, entrepreneurs have bigger chances of widening their market reach," Cruz said.
Cruz is optimistic the region can sustain its export records considering that DTI 11 and its partner organizations will embark on a number of trade fairs and trade missions this year. (Press release)
