Citem finds inroads to US market

The country’s export promotions authority brought 16 Philippine food companies to the recent Winter Fancy Food Show (WFFS) as part of continuing efforts to get more Filipino products into the growing multibillion-dollar US food market.

Rosvi C. Gaetos, executive director of the Center for International Trade Expositions and Mission (Citem) reported that, after the successful Philippine participation in the Winter Fancy Food Show in California, the agency was able to identify the key points of a “roadmap” that would help food exports find their way into the complex American retail system.

Supermarkets numbering 37,459 posted some $620.22 billion total food sales in 2013 alone, according to statistics portal Statistica. Also, reports from the US Department of Agriculture (USDA) showed that imports accounted for 17 percent of 2009 national consumption.

These figures translate to a $105-billion food imports retail market involving the US supermarkets alone, and the numbers continue to grow in favor of developing countries.

Gaetos said, however, that penetrating the US market and establishing the brand presence of Food Philippines would require a dedicated distribution network for Philippine exports.

“This distribution network is the missing link in export promotions. Our small and medium firms cannot afford to do it on their own,” Gaetos said. “The US retail market has a highly complicated distribution system that requires a network of importers, distributors, and brokers. All have different roles, functions, and importance for food exports to find their way into the shelves of the retail stores.”

The WFFS so far generated for the Philippines orders worth $30 million, almost three times or 275 percent more than Citem’s target of $11 million.

The top sellers were coconut, cacao, banana and tuna products.