A food importing nation

A visit to one of the bigger supermarket chains in the country will show rows of imported goods, many of them brazenly competing against products manufactured by respected local food brands that have served the country for decades now.

Some of these aggressors are new faces, like ramen and soju of South Korea, clearly a reflection of the growing craze over K-pop bands BTS and Blackpink, as well as those K-dramas currently sweeping across the globe.

Others have ramped up their lines catering to other consumer needs. New Zealand, which was more into milk in the past, has added other breakfast products like cereal. Neighboring Australia is heavily promoting honey and other grains.

From the northern hemisphere, Canada is also seeing new opportunities where their products may find favor among Filipinos. The Tim Hortons brand of coffee, initially offered through its coffee shops, is now in sachets at some supermarket shelves.

Some other Asian countries like Vietnam and Thailand are also busy pushing their products. Ready-to-add spices are gaining favor, but a table condiment like special fish sauce is becoming a preferred choice by picky eaters.

Imported products often come at premium pricing, but some patronizing Filipinos are willing to shell out the extra pesos on perceived better quality. US towels, for example, are desired for their higher thread counts and better cotton material.

Sometimes, it feels like supermarkets are a showcase of competing imported brands where they are prominently given the top shelves to preen, while locally made products are sadly relegated to the lower rungs.

Price is still king

Filipinos are seeing an explosion of imported brands, from food to household goods and appliances, and while there are those that get swayed by glitzy packaging and the promise of superior quality, for households whose budgets are tight, pricing is still king.

Local instant noodles, for example, continue to be a preferred buy by more Filipinos rather than Korean or Japanese ramen, both of which are priced two or three times higher. Our local manufacturers have become experts at introducing new flavors or levels of spiciness that mimic what imported brands offer.

Even our own beers continue to sell well compared to imported ones because of the price disparity, although the whole beer business has taken a hit from the changing preference by Filipinos for wines, of which almost all are imported.

The same can be said of local pasta sauces, which are staples during family gatherings. They are very affordable compared to the bottled or canned pasta sauces, and like instant noodles, come in a variety of flavors.

Not all local brands, however, win in the pricing avenue. In the fresh food section, for example, imported white onions and garlic are often priced more affordably than local produce. Some imported meat parts, like offals that Filipinos love, are so much cheaper.

A bigger pricing disparity, unfortunately, is apparent when it comes to specialty Philippine-made food items like cheese, candied local fruits, and even those rice grains that come in different colors or of inbred varieties, although the market for these local products is still confined to a few.

Where local manufacturers reign

The situation in those smaller neighborhood groceries, often operated under single proprietorship, is different. With households around being more cost sensitive, imported brands are few, and local manufacturers reign supreme.

Different brands of detergents, instant coffee, canned goods, tetrapack drinks, and of course, imstant noodles all made in the Philippines by respected companies compete over a difference of a few centavos on such grocery shelves.

The selection of goods at neighborhood groceries is limited because their customers prefer to buy fresh foods from nearby wet markets where vegetables, fruits, and meats can be bought at substantially lower prices compared to the supermarkets.

Local manufacturers instead experience competition pressure from fly-by-night brands that largely skirt government quality control standards. Such dubious products are sold cheaper, and often, you realize that you get what you pay for.

Sin of food insecurity

The wet market is not safe from imports. Regularly, imported scud or galunggong will find its way in fish stalls because local supply is not enough. More fishes imported from other countries also are sold to widen Filipinos’ choice of seafoods.

Cheaper imported pork and chicken, although not exactly always preferred over local or freshly slaughtered meats, has become acceptable because of the slightly lower price. The biggest role of imported pork, chicken, and even fish has been to temper prices of local produce.

I think there is something fundamentally wrong when opening importation gates by reducing tariff on protected agricultural products is the mechanism used by government to manage food pricing and temper prices of locally produced items.

Lately, more imported vegetables and fruits are clearing customs because local produce are not enough or not finding their way to the right markets. How can Chinese apples, oranges, or grapes sell at a lowe price than locally harvested watermelons?

The question begs to be answered. Is it due to manipulative middlemen, or inefficient and costly production methods and distribution systems? Solving these issues is the longer term solution.

Our government has failed for more than a decade now to put enough money in agriculture to ensure that local production is more than reliable to keep this nation food secure. When we find our food import bill increasing every year, we can only blame ourselves.

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