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Human Resource and Shared Services

By: Francisco X. Lorenzo


8-10 September 2010
Hong Kong, China
The Lapanday Foods
Opportunities
Outline
1. The major fresh products of the Philippines and how they perform
in the market
Banana
Pineapple
Mango
Other promising crops which could be winners in the export market
2. Major market challenges of Philippine fresh produce in the Asian
markets
competition with other fruits
competition with other countries
competition among Philippine based companies
3. Market trends/changes in the past 10 years of the Philippine Fresh
Produce industry
4. Sharing Lapanday's experience from being a grower for the
multinationals until transforming to become a leading global player.
5. Our Seed-to-shelf philosophy
6. Conclusion
Bananas
The major fruit export from the Philippines
Number two exporter in the world
Dominates most Asian Markets
Worth $250 M in Export Revenues
Creates and Maintains 200,000 Jobs
An Estimated 60,000 hectares planted
Bananas
Average Growth of 6.2 percent per year
Philippine Pineapple Exports
Second largest exporter of Sweet Golden
Pineapple
Estimated 25,000 hectares planted
Philippines is the 3rd largest exporter of
pineapples
Fresh Exports shifted from the Smooth
Cayene variety to Golden Sweet MD2
The Philippines Dominates major markets
in Japan and Korea
Pineapple Exports from the
Philippines
Mangoes
Share of 2008 Mango Exports
Source: Philexport
Mango Developments
China allows eight companies to export
mangoes
Australia accepts mangoes from Davao
Sur
Taiwan is reviewing the quarantine
procedures for mangoes from the
Philippines
Other Promising Fruits for
Export
Papayas
Avocado
Dragon Fruit
Other Banana Varieties
Durian
Mangosteen
MAJOR MARKET
CHALLENGES OF PHILIPPINE
FRESH PRODUCE IN THE
ASIAN MARKETS
Philippine Major Banana
Markets
38
36
12
11
1
2
0
5
10
15
20
25
30
35
40
Japan ME China Korea Russia Hong Kong
% by Volume
Philippine Major Fresh
Pineapple Markets
66
21
9
2 2
0
10
20
30
40
50
60
70
Japan Korea ME China Russia
% by Volume
Major Asian Markets for
Philippine Fresh Fruit Exporters
Japan : Mature
Korea : Shifting
Singapore: Growing
Hong Kong: Growing
China : Growing
Middle East: Growing
Other Competing Fruits
Domestic production: bananas and local
fruit
Summer fruit
Temperate and Subtropical Fruit
Bananas and Pineapples can provide a
whole year supply.
Challenges at the Major
Markets
Shift from traditional wholesaler-
supermarket set up
Consolidation of supermarket chains
Growth of convenience store chains
Growth of the hypermarket chains
Entry and consolidation of the
Multinational supermarket chains
Global Sourcing
Competition with other countries
Bananas:
Japan Market: Ecuador and Taiwan
Korea: None
Middle East: India
China: Domestic production
Pineapples (Sweet Variety)
Japan Market: None
Korea: None
China: Domestic production
Share of Banana Exports
Source: Unctad FAO Statistics
2002-2006
Competition Among Philippine Based
Companies
Dole is the top exporter of Bananas from
the Philippines.
Followed by Del Monte, Chiquita Unifrutti,
Sumitomo and Lapanday
Other small exporters sector is growing,
though it has many challenges to face.
Trends and Changes to Philippine Fruit
Industry
More independent and small banana
growers
More independent buyers, consolidators
Container space availability
Reducing Tariffs
Non-Tariff Barriers
More affluent and discriminating
consumers
Lapandays Transition from Grower to a
Global Player
Started as Grower for Del Monte and then
Chiquita
Operated large farms and managed a small
grower program.
Opportunity was found in the class B market for
China.
The major barrier to be a market player at that
time was shipping the shipping limitation
The Solutions Lapanday Took
Built a state of the art cold store to hold fruits for
2 weeks
Started a vessel rotation to China every two
weeks
Planted new areas for the China Market
Established special technical and quality groups
Penetrated the high quality demanding
Japanese market.
Continued plantation and market expansions
WHO ARE LAPANDAY FOODS?
The Philippines leading independent Banana company
24 plantations, 5,600 hectares of Banana & 550 hectares
of Pineapple production
4,700 employees
Production 23 million cartons of Banana per annum
Production 2 million cartons of Pineapples per annum
12% of Philippine export banana production
Tissue culture laboratory and extensive R&D and nursery
facilities
Plastic and carton factories with integrated
recycling programs
1,500 pallet position cold storage & pre-cooling
facility
Private port, cold storage and loading piers
5 reefer ships on time charter serving Japan, China,
South Korea, container service to the Middle East
and South East and Northern Asia
Sales in 13 countries in Asia and the Middle East
with sales offices in Hong Kong, Singapore & Tokyo
The Philippines leading provider of Private Label
Brands
Production contracts with Fresh Del Monte
Serving the multinational brands as a contract
grower and packer since the 1970s
WHO ARE LAPANDAY FOODS?
PRODUCTION AREAS
Banana and Pineapple
production is based on
the southernmost
Philippine island of
Mindanao
The city of Davao is
the regional capital and
it is from here that
Lapanday exports to
Asia and the Middle
East
PRODUCTION AREAS
Farm Location map
Regular Cavendish and high brix Highland
Cavendish varieties are available year round
Choice of 4kg, 7kg, 13kg or 18kg carton
packs
4-9 hand pack, cluster pack, prepackaged
consumer packs options
Lapanday brands Aloha, Estrella or Mabuhay
or packed under customers own brand
Reefer ship service to China, Japan, and
sometimes to Korea
Weekly container service to ports across
Asia and the Middle East
BANANAS FROM LAPANDAY
PINEAPPLES FROM LAPANDAY
Sweet tasting hi-brix hybrid pineapples marketed under the Honey
Pines brand
3 times the vitamin C of regular pineapples
High external shell color, long shelf life and year round production
650 hectares of production
2010 volume availability 1.8 million cartons
12kg & 18kg cartons available in count sizes 5-18. Fresh sale and fresh-
cut selections
QUALITY ASSURANCE FROM
LAPANDAY
Lapanday has invested heavily in research
and agri-technology. Advances soil and leaf
analysis testing facilities and a research team
closely monitor soil fertility, plant nutrition, and
pest and disease management in the
plantations.
Lapanday operates the Philippines largest
tissue culture laboratory, micro-propagating up
to 1,000,000 new disease free plants every
month for its plantations
ISO, SQF and HACCP practices were
institutes in 2003 and guide Lapandays
production and packing practices
QUALITY ASSURANCE FROM
LAPANDAY
Surveyors conduct field inspections in conjunction
with plantation managers. Weekly quality reports
are circulated throughout senior management
ensuring rapid response.
Inspectors operate in each of the packing houses
ensuring product quality compliance meets
international standards set for each market
A third and final inspection tier exists in the loading
ports with all product subject to final inspection
before export clearance. Inspectors are also
stationed in the major markets and undertake
arrival inspections
Lapanday provides to its customers quality
assurance from seed to shelf
Traditional Delivery Channels for
Bananas
Multinational
Brand only
provided the
country
market and
brand name
The product Changed hands
up to seven times before
reaching the customer
Lapandays Marketing Set-up in
the 2000s
Ripen and
deliver
Importer Wholesaler also
provides buffer volumes
for the supermarkets
Product Changes hands
only three times to
reach the customer
Key to Lapandays Seed to
Shelf Program
Have sufficient Volumes
Grow with your customers requirements
Operate and managed plantations
Direct grower sources, no consolidators
Superior quality as good or better than the
Regular brands
Flexibility in product presentation
Attractive pricing
Reliable shipping arrangements
Going direct to the market
Thank You !
Francisco X. Lorenzo
Sales and Foreign Trade
Lapanday Foods Corporation
+63 82 234 9003
fxlorenzo@lapanday.com
www.lapanday.com