FILIPINO food manufacturers planning to expand overseas are encouraged to export organic food products to the US.
And if they want to succeed quicker, they need to get their product certifications in order.
Asia Etc. founder and chief executive officer Nicholas Johnson said exporters and organic food producers should capitalize on natural, organic and healthy products to sell to the US due to the growing interest of this market to adopt healthier lifestyles.
Tapping the US consumer, he added, would eventually lead to more opportunities in capturing a good share of the multi-million-dollar global health and environment-conscious market.
Big numbers
In 2013, the growth of the global market for organic food and drink has risen from $15.2 billion in 1999 to $72 million.
In the same year, data showed the United States was the biggest consumer of organic products comprising 43 percent, followed by the European Union’s 28-member states, cornering 40 percent.
Other top markets for organic agricultural products for that year included China, Canada, Switzerland, Japan and other products all contributing the remaining 17 percent.
Johnson cited proper product certification as one of the vital requirements when tapping the organic market in the US. He urged producers and exporters to secure official certification for each product line for a seamless trade of organic goods.
Asia Etc. is marketing company specializing in sourcing producers and manufacturers of food products in Asia and introducing them in the US marketplace. They sell to mainstream retail, food service, prepared food, and natural and ethnic food markets. Its clients include Central Markets, Costco, Eatzi’s, Food Emporium, H.E.B., Kroger, Marriott, Mitsuwa, Raley’s, Safeway, Trader Joe’s, United Markets, Wegmans, Whole Foods Markets.
Popular
Coconut-based products are among the top organic goods that the Philippines has been exporting to the US. Johnson also mentioned the potential of mango flour, which is now being produced in the country.
Control Union Philippines managing director Gayan Wejesiriwardana, in report by Philexport News and Features, said producers and traders of agricultural products need to secure official certification for their products to be labeled as “organic” for them to sell effectively their goods particularly in huge American and European markets.
Trends
Johnson also said proper product labeling and packaging, as well as on-time delivery, especially for food exports, are also some of the key factors to successfully penetrate the US organic market, aside from ensuring the high quality of the product and its required certifications.
“To be organic needs certification in the US,” said Johnson, in a recent forum held in Cebu.
He also emphasized the need of exporters and producers to maximize the use of technology such as online selling sites like Amazon to gain a strong presence in the US market, as more consumers are choosing to shop online.
“Think about the new trends in the market, especially with the emergence of smartphones,” said Johnson.
Aside from penetrating huge markets, Wejesiriwardana, stressed that certified produce benefit from premium prices.
He said premium for organic products range from 20 to 30 percent. Products with growing demand are fresh/dried tropical fruits, vegetables, grains, nuts, wines, juices, snacks and prepared foods.
Trade show
Products that can be certified include unprocessed and processed agriculture/animal products; agricultural, forestry, livestock and marine products; and production or handling of crops, livestock, livestock products or other agricultural products.
Last year, nine companies from the Philippines joined the Natural Products Expo East, the largest natural, organic, and healthy products event in the US East Coast.
Coconut products such as coconut water, milk, milk powder, flour, cider vinegar, coconut nutraceutical products, desiccated coconut, coconut sugar, organic extra virgin coconut oil and virgin coconut oil beauty pearls were showcased at the trade show.
Other Philippine products featured were body products made from pili, handcrafted bath soaps, topical scalp products, vinegar, dried mangoes, noodles, juices and fruit juice drinks, camote (sweet potato) and banana chips, condiments and sauces.
The 2014 Market Overview of Natural Foods Merchandiser, a leading media source and information provider for the healthy products industry, showed that US nationwide sales of all natural and organic products jumped nine percent to nearly $99 billion last year.