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Food makers see huge gains from Taiwan deal

By Ayen Infante

02/24/2009

Local food producers and exporters expect to gain bigger market access in Taiwan following the signing of a technical agreement on food development for small and medium enterprise (SMEs) in that country last week.

The Manila Economic and Cultural Office and the Taipei Economic and Cultural Office in the Philippines recently signed in Taiwan a memorandum of understanding (MoU) on technical cooperation in the field of SME food development to implement a project dubbed as the Taiwan Technology Mission to the Philippines.

The project aims to strengthen supply capabilities of local food firms, through technical cooperation, resource sharing and joint venture activities. This project intends to improve the competitiveness of the SME food exporters who ship not only to Taiwan but also to other markets.

The project would entail Taiwan bringing in technology experts to assess the needs of local food firms, and give recommendations on technology and systems improvements.

Initially, the project will benefit SMEs that are members of associations and cooperatives in the Cordillera Autonomous Region, the Calabarzon region, and the Visayas. Initially, the project will focus on the coffee, processed fruits, and aquaculture.

A similar project signed in 2007 was known as the Taiwan Technology Selling Mission to Manila and Davao City.

The beneficiaries of the said project produced a more diverse range of products compared to the new project. The gains and lessons acquired from the 2007 project were considered in coming up with a subsequent project.

The new project, meanwhile, will be implemented by the Small and Medium Enterprise Administration of the MOEA and the Taiwan Turnkey Project Association and the Bureau of Export Trade Promotion of the Department of Trade and Industry of the Philippines.

Taiwan is the ninth biggest market of local products. Philippine exports to that country reached $1.86 billion in 2008, about 5.81 percent lower compared to $1.97 billion posted in 2007. The slowdown in global economic activity, which resulted from the sub-prime problem in the US, adversely affected Philippine exports.