The Philippines: East-West Seed sees potential in growing vegetable consumption

THE East-West Seed Company, Inc. said it is planning an expansion, noting the potential in the vegetable segment where Filipino consumption is currently low but growing.


“There is a lot of potential in the Philippine vegetable sector,” said East-West Seed General manager Mary Ann P. Sayoc in a briefing in Taguig City, noting that the country’s vegetable production is expanding by some 2% a year with the growth of area being planted to vegetables is at 1.7%.

“The country’s annual growth rate for vegetable production is close to 2%, not enough to meet even local demand for vegetables. That is why we still need to import more than $3 million worth of vegetables which could ideally be supplied by our local farmers.” she added.

The Philippines currently only has a $240-million share in the growing Asia-Pacific vegetable market -- lagging behind Japan, Vietnam and Indonesia -- and has to regularly import to make up for the domestic shortfall.

Aside from its inability to compete in the “billion-dollar” Asia-Pacific vegetable market, Ms. Sayoc said the local vegetable sector’s problem is rooted in other challenges such as the predominant perception that vegetable farming is not lucrative and the low production of vegetables which affects food and nutrition sustainability.

She added that the country’s consumption of vegetables, pegged by the Food and Nutrition Research Institute at 44 kilograms (kg) per capita annually, is way below the Word Health Organization’s recommended vegetable consumption of 73 kg per capita per annum.

It may be noted that the Philippines recorded a 39 kg per capita vegetable consumption in 2010, which meant the country has since improved, in terms of vegetable intake, and may yet see more gains in the future with consumers now opting for a healthy lifestyle, Ms. Sayoc added.

At present, the firm has some 3,700 contract growers in Ilocos, Cagayan Valley and a small portion of Mindanao, among other areas.

The firm is seeking to expand its presence in underserved markets. “Island provinces are hard to penetrate. We have about 50 field promoters. It’s not enough because of the size of the country, and the logistics. We’d like to [expand] in the following years,” Ms. Sayoc added, noting that the firm has already targeted certain areas like Masbate, Dinagat, Palawan, and parts of Mindanao, specifically the Caraga region, she added.

On Tuesday, East-West launched its “Go Grow” product category with a simplified variety of selection and targets first-time and amateur farmers.

The product’s packaging provides its buyers guides and instructions on how to plant the seeds and a QR code that links farmers to an online ‘Plant Doctor’ service to help them manage issues with pests and diseases which may arise during cultivation period.

“The Go Grow seed range was carefully selected to include easy-to-grow vegetables with strong potential in the market such as string beans, hot peppers, tomatoes, eggplants, ampalaya, okra and pumpkin,” Ms. Sayoc added.

Last year, the firm booked revenue of P1.5 billion. It hopes to sustain 10% year-on-year growth.