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Philippine Market Analysis

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Tips:Market AnalysisAgricultural product marketAgriculture is an important part inPhilippines economy. There is 40% of the wo
 Market Analysis
 
Agricultural product market
Agriculture is an important part inPhilippines economy. There is 40% of the workforce is dependent on agriculture, agricultural production value occupies country GDP 20%. Philippines is rich in agricultural resources, the main productions are rice, corn, coconut, sugarcane, banana, pineapple, mango, pork, eggs, beef and other agricultural products. Every year Philippines agricultural products trade amounted to about $50billion.
1, grains
Philippines has a long-term dependence on imports of cereals. In 2000, Philippines imported 1500000 tons of wheat, about $350000000, The main import markets are the United States and Canada; import 640000 tons of rice, about $120000000, the main import markets are Thailand, Vietnam; import 450000 tons of corn, which values about $58000000. 
2, fruits and vegetables
Philippines agriculture focused on the development of export-oriented fruit production, rather than to supply the domestic market, which makes Philippines have more dependence in importing fruits and vegetables. Philippines is the world's main fruit producing countries in the world, which is rich in bananas, pineapple, papaya, mango and coconut. In 2000, Philippine fruit exports reached $350000000,which is mainly to Japan, Korea, mainland China, Hongkong and Taiwan market. But at the same time, Philippines has to import fruits and vegetables from the United States, Australia, Canada which values more than $120000000.
3 dairy products
Philippines barely have dairy industry. It is mainly import about $350000000 from Australia and the United States every year.
4 meat and meat products
Philippines usually cost the consumption of cattle, pig, chicken about 2000000 tons, most of which are local production. Since the mid of 1990s , under the WTO rule, the government of Philippines agreed to open its live animal, meat and poultry products market, imports has become an indispensable meat product supply channel. In 2000 the Philippines imported about 140000000 dollars meat and meat products, and mainly from the United States, Canada, India, Australia and the European union.
 
Medical market
The popularation of Philippines is growing fast. It is nearly 80 million for now  So it demands to all kinds of medicine has a steady growth trend. However in a long time the economy of Philippine is growing slow, its domestic pharmaceutical manufacturing industry is very weak. And it traditionally and primarily imported medicine from Europe and the United States. So the contradiction of the consumption ability and the high price of medicine is very acerb. The Philippine Department of health has realized that the market of Philippines medicine is dominated by Europe and the United States supplyers. It has been a highlight problem that a large amount of drugs imported from Europe and America and the price is very high. So the department has started to seek a new source with high quality and low price which can meet the needs of the market. China, India and other countries may become a medical products import sources.
1, The market demands and the main products.
The scale of Philippines medical market in the world is about 28 and rank third  in the Southeast Asian region and exceeds Indonesia,Thailand, Hongkong. It takes about 13% in Southeast Asia medical Market. According to the sales price of the producers, its annual sales is about $1300000000. Among them more than 73% is in Manila and Luzon Island and Weisaya region is about 14% and the south Medan area is about 13%.
In the whole Philippine medical market, antibiotic drugs accounts for 22%; all kinds of vitamins and nutritional medicine accounts for 18% of the market; respiratory system drugs accounts for 13%; cardiovascular drugs accounts for 12%; diseases of central nervous system drugs accounts for 9%. The four drugs accounts for more than half of the Philippine pharmaceutical market.
 2, the main sales channels of medical products
In all medical products, drugstore of sales accounts for 79%, hospital of sales accounts for 13% and the other way of sales accounts for 8%. Among them the saleof the retail pharmacy accounts for 61% of total sales
3,The annual imports of the amount of drugs, the main varieties and the main country of origin and imports ( FOB 1000$)
The country   the amount of imports
Switzerland  37337
The German  34867
Australia   34549
The United States of America  30198
France 2 4045
U.K. 22018
Italy 16863
Sweden 12535
Holland 12258
Japan 12227
Singapore  11781
Belgium  10177 
More than 80% medical products which Philippines imports is supplied by all this countries.
Maximum of 10 kinds of drugs import most ( FOB 1000$)
Drug name imports
Conventional medicine 129377
Antibiotic finished products 23758
Antibiotic semi-finished products 20219
Vaccine for animals 13801
Human medical vaccine 12360
Vitamin 12197
Cancer, AIDS and other special drugs 11603
Derivative drugs of vitamin C 7887
Derived drugs of penicillin, chain enzyme 11207
The compound medicine of provitamins and vitamins 4627
The other 70382
Basically the raw materials and semi-finished products which Philippines local Medicines Co needs is import to meet market demands which mainly is antibiotic drugs raw materials. The government have a strict control on the import of raw materials. All the imports, distribution, and sales work is done by  Chemfield company which is controlled by the government.
4 Philippines has a total of about 4000 enterprises which engaged in various types of production and marketing activities of medical products. Among them 80% of enterprises engaged in medical products sales, 12% of enterprises are engaged in import and export trade of medical products. 7% enterprises are engaged in drug production, 1% of enterprises are engaged in medical products production and trade. Local pharmaceutical manufacturers is mainly dependent on imports of raw materials or finished drugs required preparation to produce medicine. Only a few companies engaged in research and production of medical raw materials.
Products of animal origin market
Products of animal origin is meaning widely. it not only covers the cattle, sheep, pigs, chicken, rabbit and meat products but also include fish / shellfish, honey and animal feeding-stuffs and so on.
According to the latest statistics,the output value scale of agriculture of Philippines is about 621400000000 pesos, or about $12000000000 in 2001. Among them, the so-called animal origin market, is main about live animals, poultry and fisheries.The production value amounts in these three areas si about $5860000000, accounting for nearly 50% of the proportion of whole agriculture. Philippines has a population of 76500000, animal animal origin products market has a great potential.
Taking beef, pork and chicken as an example, Philippines's annual consumption reached 2000000 tons. Most of products Philippines market supply of beef, pork and chicken are domestic production. Since the mid of 1990s, Philippine has become a open market. Imports has become an indispensable meat product supply channels. According to the official statistics, Philippines local produced 261000 tons of beef, 1212000 tons of pork and chicken 527000 tons, while the beef, pork and chicken imports 84000 tons, 32000 tons and 16000 tons in 2000.
In recent years consumers in Philippines have a steady growth in the consumption of beef, pork and chickenand the per capita consumption has some increase. Usually, the beef is the most expensive animal protein sources, the cheapest is chicken. Pork consumption market is the largest, but by the effect of foot-and-mouth disease, its market position has been weakened.
Under the WTO rules, the government of Philippines make commitments that they agree to open their live animal, meat and poultry products market. Live animal imports began in the early 90's, meat and poultry market is open in the later 90’s
1 The import of beef
In 2000, Philippines imported 84000 tons of beef which worth $91850000. mainly include the following products:
1) grade beef products, which is mainly supply to Philippines large meat processing factories for the production of a variety of canned and frozen meat, such as hot dogs and corned beef.
2 ) Boneless beef,which is for the retail and food service industry, including the Philippines large fast-food industry.
3) beef with bone,which is including high-quality frozen beef cut such as steak.Most of them is supply to the majority of senior hotel and guesthouse. India, Australia, Ireland, Holland and New Zealand are the main source countries, which accounted for 90% of the total share of imports.
 2, The imports of pork
The pork which Philippine imports mainly is frozen pork,which is mainly supply to local meat processing factories. In 2000, Philippines imported 32000 tons of pork,which is about $15820000. Compared with 1999, The volume of import is increased by 2%, but the value decreased 6.8% Canada, Denmark, France, Holland and the United States is the main source country, together account for approximately 80% of the share of imports.
3, The import of chicken
The chicken products Philippine import include frozen whole chicken, chicken cuts such as chicken legs, chicken wings. Compared with local chicken products,the products which is imported is cheaper. It is the mainly supply to local chicken processing factories. In 2000, chicken imports 16000 tons,which is worth $9180000, compared with the previous year import has fallen 45%.However,in addintion the legal way of import, chicken smuggling is quite serious, this number did not account . The United States is the largest import market, accounted for 80% of the share of imports. The second is a Canadian, there are 10% share.
Dairy market
Philippines is country which consumes milk and dairy a lot. According to the report from Philippines dairy Department, Philippines has a population of 80 million,and there are more than 30 million people who live in city. The annual demand for milk and dairy is more than 2300000 tons. However,in recent years the economy of Philippines is not quite well, the actual consumption is only 127 thousand tonseach year, per capita consumption each year is 15 kilograms. However Philippines 's own production capacity is very low, only about 10000 tons each year which is less than 1% of the total consumption. The prominent contradiction between supply and demand decided Philippines imports 99% of total consumption to supply the market, and the annual import is not less than 1700000 tons which is next to the import of wheat.It is the second imported agricultural products in Philippine. According to the statistics, in 2001, only milk and dairy products made Philippines spent 22400000000 pesos, if say the exchange rate is about $1 = 51 Peso,then Philippines will spend $430000000 in foreign exchange each year. In recent years, Philippines government has taken positive policy support to develop dairy industry, but because it is just begin and foundation is poor, it did not get great development .
The import and export situation of milk and dairy
Annual demand is about 2300000 tons and the local consumption is about 1200000 tons. Due to its own production capacity is limited, Philippines can only rely on a large number of import to meet the demand of the market. According to statistics from dairy Department, except Philippines imports milk and dairy products about 1900000 tons in 2000. The annual imports of milk and milk products ascend with stable state. Imporing more than15510000 tons in 1999.Importing 1730000 tons in 2001. Importing 1780000 tons in 2002. According to the import of milk and milk products variety, powdered milk took  total 87% of imports, evaporated milk, butter, cheese, curd and other dairy products took 11%, fresh milk imports about 2%. Among all the powdered milk, whole milksi about 18% and skim milk powder accounted for 48%, the rest were 21%.
Philippines is mainly import from Australia, New Zealand, the United States, Singapore, Holland, France, Ireland and other countries.And  most of them are powder. Australia's dairy products accounted for about 37% of the Philippine imports, New Zealand products took the total import volume of more than 30%, the United States dairy products accounted for about 8%, France, Holland, Singapore, Irish dairy products accounted for about 25%. Philippines milk and milk products major importing countries are Australia, New Zealand and the United States, three major countries to occupy Philippines milk and milk products around total import volume 75%.
At present, 228 Philippines registered importers for milk and milk products are mainly concentrated in the capital city of Manila. Among them, Philippines Nescafe is the largest importer in Philippines. More than half of the milk and milk products are imported by the company.
The consumption is mainly rely on imports, however,with a large number of imports at the same time, some dealers imported raw materials and processed and exported them. According to statistics from dairy Department, the Philippine milk and milk products which have been exported more than 10 tons in 2001 and exported more than 17 tons in 2002. In the Philippine exports of dairy products, milk powder take the total export volume of 95%.
Service outsourcing market
Over the last decade, the World Business Process Outsourcing (BPO) is  developing rapidly. The seek and provide countries are having such a international cooperation.It is a win-win economic. Philippines has an advantage in service industry. It started earlier, and it is one of the important national outsourcing services,which has obtained a wealth of experience.
Philippine’s advantages in outsourcing services:
1, Being abound with human resources:
Philippines currently has 29 million skilled workers, among them are 70,000 IT and computer science professionals, 35,000 engineers, 0.1 million registered accountants, 0.1 million business management person;In addition,there are 380,000 university graduates each year to supply professional personnel.
2, the English advantage
Philippine in common use English,use the Western model of education system with the national literacy rate of 94.6%. 72% of the people can be fluent in English,and easy to accept foreign different cultures. Compared with other countries, the Philippine technical staff is fluent in English, familiar with international level of expertise and user service standards, good business ability and professional ethics, communicate easily with outsourcing States. The world outsourcing market survey shows that the Philippine service personnel English expression and the ability to understand is better than India, Ireland and other countries in the.
3,The low operating costs
The labor costs average $ 234 a month in Philippine,which is lower than most countries in Asia, slightly higher than in India, Indonesia; technical staff monthly salary is between $ 400-800; white-collar employees is only 1/4 of the average wage level in U.S.A.;In addition Philippine service staff is fluent in English, familiar with Western expertise, which can save the cost of pre-job training. In terms of infrastructure, the Philippines has adequate facilities office area, now there are 40 million square meters of accepted capacity, low rental prices, only 1/4 of the United States, India, Hong Kong and other places, most of the office area by the International Real Estate Company management, reasonable lease agreement.
4, The government has taken encourage policy
The Philippine government is committed to the development of the information industry and business outsourcing services.It has taken encourage foreign investment policy. Foreign companies are doing business in the special economic zones,at the first 4-8 years of tax free, after that may continue to enjoy the preferential treatment, and only pay a 5% sales tax; company can also duty-free import of special materials and equipment to be exempted from the pier use fees, free checked equipment, and employ foreign staff.
5, the location of strategic advantage
The Philippines is located in the center of Asia,with convenient traffic.It takes only four hours to reach the major cities in Asia by airplane travel. The region is currently the world's fastest growing economies in the region,which is the crossroads of Eastern and commercial exchanges, and it is also a crucial point of access to the ASEAN market, international business activities, is the only way of sea, air.
Outsourcing the country of origin
     The main countries which are seek outsourcing services: the United States (60-70%), Japan (20%), South Korea and Europe (10%).
Outsourcing major sectors
1, Call center (Call Center)
With the rapid development in recent years, the annual growth rate is more than 100%. The Philippines currently has 46 call centers, almost all of them is set up in the capital Manila, Cebu the second largest city has 3. The operator postiion is less than 1000 in 2000 and over 20,000 with 30,000 people staff. Most of these companies are set up by the United States, operating the, almost all the domestic call business in Philippines. It is expected in the next 5-7 years,it would become the largest call center market in the Asia-Pacific region,
2, computer software development
The Philippines currently has more than 300 software development companies, which is providing services mainly to South America, Europe, Japan, Asia-Pacific and other regions,with involving fields: telecommunications, banks, government departments, schools, and so on. According to the data from Philippine Software Industry Committee, the industry in 2002 and annual revenue of about $ 440 million, accounted for 9.36% of the total government revenue. Industry management, promotion agencies: Philippine IT Committee, Philippine Software Industry Committee
3 Animation
It has already 18-year-old in the Philippines, there are currently about 30 animation companies which complete 300 animation clips a year (each 22 minutes). Philippines was provides production services for entertainment companies like Walt Disney, Cartoon Network, HBO.It has been recognized as a producer of high-quality animation in worldwide.
    With the rapid popularization of the Inter network and e-commerce,the demand from web development, computer design, advertising and other areas for animation is growing,which is create more opportunities for Philippines. The industry source of entertainment areas of outsourcing state-owned: the United States, Japan, South Korea, Australia, Canada, France; business and education sectors countries of origin: China, Malaysia, Thailand.
4 Medical data compilation
In the Philippines it is an emerging industry, and will become a new bright spot for Philippine service industry. It will bring stability to the foreign exchange income for the country. Currently there are 28 compiler companies, and1500 experts.Though it only accounts for less than 1% share of the U.S. market, but the trend has shown great potential, the annual growth rate of 130%. The growing number of U.S. companies are consider to set up service agency in the Philippines to cope with an unprecedented amount of demand.
    Philippine has a world-class level in the medical field, have world-class medical institutions supplying a large number of medical personnel, and their professional and technical skills, a good work ethic, in the world, has earned a reputation. The Philippines has realized that the industry can bring more opportunities, the market potential is huge, now began to make full use of their own advantages, and actively explore the world of medical services market.
Seaweed industry market
Algae is a marine plant which is grown in beach shallow waters area.It is mainly used for refining has carrageenan which has effects of gel. Philippines hsa more than 7000 islands which makes it very rich in aquatic resources.It is one of the few countries in the world which the output is stable. In recent decades, with the development of seaweed farming technology and the Philippine’s supportive policy, Philippines’ seaweed industry develop from nothing and has developed into a main industry which a significant contribution in foreign exchange-earning, increasing employment and poverty reduction.
1, The situation of Philippines seaweed products production and export 
With the help of Philippine government support and international market demand,the structure of Philippines seaweed products is getting improved stage by stage. The situation of depending on the exporting seaweed raw materials has been changed. with high additional value of carrageenan in seaweed products output and exports and the growing proportion of. According to the Philippines seaweed Association statistics, in 2002, Philippines seaweed products exported $138640200. Among them, the raw material in the form of direct export 32700 tons of dry seaweed, average price is $552 / ton, 18072900 U.S. dollars in exports; crude carrageenan average export price is $3951 / mt, with exports amounting to 82798600 U.S. dollars; refined carrageenan average export price of 8673 U.S. dollars / tons, exit forehead amounts to 37768800 dollar.
The breeding situation, southern Philippines cotton South Yankees area is the main algae breeding base. In 2002, Philippines produced a total of 125300 tons of dry seaweed, which, Philippines northern Luzon area seaweed stem yield of 15000 tons; the Central Visayas region output of 6300 tons; the Southern Southern Yankee area cotton production was 104000 tons, 83% what hold total output.
From the seaweed processing and export situation, Philippines Central Visayas region is seaweed processing and export base. In 2002, export 37668800 dollar refined carrageenan, 79.28% or $29863600 came from the Visayas region of the processing plant; exports of $82798600 crude carrageenan, 71.23% or $58974200 came from the Visayas region of the processing plant.
Exit from the market situation, Philippines seaweed products are mainly exported to Europe and the United states. On 2002, the Philippine import seaweed products up to five countries: Denmark is $15570200, wherein, seaweed stem $4059100, carrageenan 11511100 dollars; France 10855800 dollar, among them, seaweed stem $5408500, carrageenan 5447300 dollars; the United States $7852100, wherein, seaweed stem $5081400, carrageenan 2770700 dollars; $4170100 is all England, seaweed stem; Holland 1665800 dollars, all seaweed stem. The exports to five countries of seaweed products totaled $40114000, accounting for 28.93% of total exports of seaweed products. It is understood, in 2002, exports to mainland China Seaweed stem for $2729500.
In 2, Philippines seaweed industry development plan
As a result of seaweed industry in Philippines to increase the income, increase the employment opportunity, poverty alleviation role, the Philippine government to seaweed industry in key industries, have introduced many incentives, to assist the seaweed industry breakthrough barriers to international trade, solve the problem of environmental pollution and shortage of funds and so on. In order to further increase the seaweed production, strengthen a government sector and seaweed industry links, increase the seaweed products in the international market competitiveness, in 2003 April, President Arroyo in Cebu city issued " Philippines seaweed industry development plan ", made clear by the Ministry of agriculture to assist with seaweed farming production, Ministry of environment and resources to assist in the resolution of seaweed farming and processing process the pollution of the environment, Ministry of science and technology to assist in the development of seaweed products new technology, DTI to explore the international market, land bank is responsible for the provision of seaweed products production and marketing of financial support, seaweed seaweed products Association for the operator and the coordination of government departments and to ensure that the government incentives in place.
According to the development plan, in 2004 7 at the beginning of the month, Philippines seaweed association business land bank and other state-owned institutions, has collected 5440000000 pesos ( nearly $100000000 ) credit funds, focusing on support for the next three years time seaweed farmers to expand production and processing plant technical reformation. The association said last year, seaweed stem crop 127800 tons, far failed to meet the local processing plant production capacity and demand in the international market. They expected, in the implementation of the scheme and the credit funds issued after going down, the next three years the seaweed stem output should reach 677100 tons, of which, in 2004, 168000 tons; 2005 2006, 227900 tons, 281200 tons.
 
Fisheries market
Philippines is an archipelagic state which is surrounded by the sea. It has a long coastline and vast sea area with a rich fishery resources, whether pelagic fishing or offshore fishery, or other fisheries are very promising. In the past the fishery of Philippines is a backward one. Since 1960s , the government started to attach importance to the development of fishery, once it has become the second large fishery in Southeast Asia. The main fishing area of philippines from Manila Bay, Misha Yan sea, SA mohair, Sulu Sea, northwest coast of Palawan island. Lake, Taal lake and blue lake are important freshwater fish producing areas which take the main production of fish the throughout the country about 80%. In order to promote the development of pelagic fishery, the government not only encouraged private enterprises to invest fishing boats in larger tonnage with good fishing equipment, and allocate a funds for fishermen to buy powered fishing craft and new fishing equipment, but also use the world bank loans to build more the ocean large fishing boats,build modern fishing ports, build modern fishery wharf and refrigeration equipment, make the deep-sea fishing obtain a certain development.
 
 



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