Agriculture

Mangoes, considered the national fruit of the Philippines, can be a source of various investment opportunities. With its flexible characteristics, producers can make use of perishable mangoes and transform them into derivatives such as puree, dried mangoes, candy, jam, wine, essence, canned, juice, nectar, pickled, flavorings, etc. The fruit and its processed products are also exported. In 2021, top export destinations were China United States, Korea and Japan. Europe also sees a rising demand for processed fruits.

The island of Cebu is endowed with land and climate suitable for the cultivation of multiple variety of mangos, including the world-famous Philippine Carabao Mango. In Q1 2022, Central Visayas ranked as the 7th major distributor, producing 1,019.6 metric tons. Currently, Cebu is home to five large processors and exporters, and various small-scale farmers and enterprises.

Seeing long-run potential for investments in the mango industry, the private sector advocates for strengthened financial and non-financial support from the government in order to assist both firms and farmers to take advantage of the opportunities in fruit processing sector.

To date, a number of institutions offer targeted loans for farmers, while the Department of Agriculture give technical assistance which are designed to teach and support firms in producing high quality products efficiently and effectively. Additional support services are offered by related government agencies to provide assistance and guidance to firms to who intend to pursue appropriate certification, permits and licenses to unlock their full potential in exporting processed fruit products.

Success Story

One of the leading exporters of processed mango and other fruit products is Profood International Corporation. The Cebu-grown company works with a variety of fruits, including mangoes, guyabano, banana, pineapple, coconut, etc. and employs approximately 3,000 employees with an additional 2,000 employees during peak season to efficiently process food products. Included in its roster of products are dried fruits, preserves, purees, concentrates, and juices, and these are available all over the Philippines, and are exported to almost 50 countries including United States of America, Canada, Japan, European Union, and China.
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Founded in 1980, Profood has remained committed to product excellence and has managed to expand its processes and establish three more product facilities across the country to improve its supply chain. Two of these facilities are all strategically located in Luzon and Mindanao to access and leverage on the variety and supply of fruits in Luzon and Mindanao and ensure continuous supply while retaining the freshness of the fruit as well as its natural flavor and extending its shelf life. The other facility is found in the nearby island of Panay, Iloilo City. Moreover, due to Profood’s extensive research and development efforts, the company is the only producer that offers various products using green mangoes as its main ingredient.

With the company’s network of plant facilities in Cebu, Iloilo, Davao and Bulacan as well as its headquarters located in Cebu, the company offers its customers a wide range of premium quality products. The company also attributes its growth and success to the close proximity of its headquarters and plants to an efficient network of seaports and international airport.

To date, the continued demand for process fruits, has allowed the company to expand its operations in Phnom Penh, Cambodia. This will further expand the company’s product line as well as boost the company’s presence in the global market. Moving forward, the company yearns to ensure sustained supply of quality produce to deliver world class processed fruit products.

Situated along the Cacao Belt, Cebu is endowed with land and climate suitable for growing cacao trees. As a high-value crop, cacao offers a lot of opportunity for investors. Cacao is not only known to be a good inter-crop for coconut and banana (with only 2-week harvest interval), it also has a unique characteristic of having a short gestation period of only 18 months.

Several intermediate products can be derived from cacao beans such as cocoa nibs, cocoa liquor (tablea), cocoa cake, cocoa butter, cocoa powder, and chocolate confectionary blocks. Moreover, cocoa is regarded to have an uptrend global demand for two reasons. First, cocoa is the ultimate ingredient for chocolate production and offers no substitute. Second, is the increasing popularity of cocoa for pharmaceutical and cosmetics industries. In terms of numbers, global demand for cocoa is expected to increase by almost 3% from 4.959 million tonnes during 2020/21 to 5.086 million tonnes for 2021/22.¹

In the 4th quarter of 2021, Central Visayas was able to produce a total 37.07 metric tons of cacao. Due to the endless global demand for cacao, Cebu is fast becoming a home to small-scale cacao producers scattered around Cebu. Some of these areas include the municipalities and cities of Pinamunggahan, Toledo, Tuburan, Carcar, and various mountain barangays in Cebu City. To optimize the potential of the cacao industry in Cebu, the Philippine Inno-Ventures Agriculture Cooperative (PIVAC) is pushing for the propagation and planting of cacao in various farm lands across Cebu through cultivation of seedlings and knowledge sharing at the grassroot level.

PIVAC, alongside with the government agencies such as the DTI, DA, DOST, DENR, and local government units are forming a convergence of plans and programs to bridge the gap between the existing demand and supply of cacao to maximize the potential of cacao as a high-value crop. This convergence and collaboration with relevant agencies are designed to ensure that the farmers are empowered with the right set of skills and equipment to produce high quality cacao beans. To date, PIVAC farmers are starting to cultivate their land for cacao production and intend to supply the local cocoa producers in Cebu, and eventually leverage on the strategic location of Cebu and trade across all regions and even reach the foreign market as well. In the long run, the network of cacao producers in Cebu intend to maximize its economies of scale and explore the opportunity of investing in post-harvest facilities roasting and grinding facilities.

Overall, the collective goal of PIVAC farmers is to create a sustainable supply chain of cacao production and deliver high quality cocoa products, made in Cebu. Likewise the group aspires to be recognized as one of the leading export products of Cebu. As of today, due to the rising number of cacao farms, Cebu’s thriving cocoa products are also starting to gain global popularity.

¹ https://www.icco.org/february-2022-quarterly-bulletin-of-cocoa-statistics/