Thursday, September 5, 2013

The Weak Spot of Agri-Manufacturing in the Philippines

Image Courtesy: http://thecitemblog.wordpress.com/tag/food-philippines/

Manufacturing is defined as the method of transforming components or raw material into commodities that meet the expectations of the consumer. According to the leading knowledge base known as the Food and Agriculture Organization (an entity that was formed by the United Nations), the industry of agro-processing is a subset of production that prepares intermediated items and raw materials from fisheries, forestry, and of course, agriculture.

A major aspect of agricultural manufacturing goes through a kind of conversion between food manufacturers in the Philippines, final use and harvesting. The upstream businesses are focusing on the primary processing of agricultural goods. Common examples include fish canning, vegetable cutting or grading, coconut oil milling, and sugar or rice milling. On the other hand, the downstream businesses undergo further production operations on intermediate items that came from agricultural materials. The usual examples include candy manufacturing, bread making, feed milling, and coconut oil refining.

How big is Philippine agri-food production? A lot of provinces have at least one rice mill ready for use. Coconut oil mills can be found in many locales in Mindanao, Eastern Visayas, and Calabarzon. Sugar mills exist in South, Central and North Mindanao, East, West and Central Visayas, Calabarzon, Central Luzon, and Cagayan Valley. SocSarGen, North Mindanao, Davao, Western and Central Visayas, and Caraga have fruit processing plants. The country has meat processing plants and feed mills in many locales, and there are bakeries in all of the 1,600 cities.

The sectors of fishery and agriculture supply provide a lot of raw material for production in the Philippines, except for those industries with imported supplies like feed milling, meat processing and flour milling. Because fisheries and agriculture make use of minimal raw materials for foundation, the performance of the food manufacturers in the Philippines have been affected, together with the rest of the industries that produce agri-food. According to affiliate sources and statistics, cocoa processing, coffee processing, fruit processing, natural rubber, sugar milling, and coconut products are operating and utilizing at a low capacity.