Northern Mindanao’s Exports

1. Northern Mindanao’s Exports Presented by Confederation of Philippine Exporters Foundation Region 10 Chapter, Inc. PhilExport-CDO (10A)(An affiliate of the Philippine Exporters Confederation, Inc.)

2. Northern Mindanao Export Performance (in USD billion) Sources: DTI, BOC, NSO

3. Northern Mindanao’s export growth(in USD billion) Sources: DTI, BOC, NSO

4. Northern Mindanao Major Export Markets

5. Northern Mindanao’s Food Exports Frozen Shrimps Molasses Cane Sugar Fruit Puree Fruit Concentrate Frozen Mango Halves Fresh Pineapple Fresh Banana Fruit Cocktail Fruit Juice Banana Chips Dried Fruit Moringa Tea Glucose Syrup

6. Northern Mindanao’s Coconut-based Food Exports Corn Oil Coconut Water Coconut Vinegar Coconut Cooking Oil Desiccated Coconut, Reduced Fat Coconut, Coconut Cream Coconut Sugar Organic Virgin Coco Oil

7. Northern Mindanao’s Exports of Gifts, Toys, Housewares & Fashion Accessories Pottery Handmade Paper Office Novelties Baskets

8. Northern Mindanao’s Coconut-based Industrial Exports CNO RBD Coconut Charcoal Oleochemicals Copra Meal Coconut Fiber

9. Northern Mindanao’s Industrial Exports Metal Scrap Sintered Ore Billets Septic Tanks (from recycled plastic) Rubber Boots Jika-tabi shoes Fiber Reinforced Plastic

10. Northern Mindanao’s Resource-based Exports Cut flowers Leatherleaf Ferns Raw & finished tree plantation products Shark Liver Oil Pineapple Pulp Rubber Cup Lumps Abaca Fiber

11. Northern Mindanao’s Mineral Ore Exports Iron Copper Chromite Manganese

12. Features and Characteristics • Largely agri-based: Provides direct income to farmers • Volume intensive: Provides additional opportunities for service providers. Annual traffic average is 500,000 TEUs and about 6 million MT of bulk. • Mostly operated by home-grown investors • Growing volume of SME exporters* compared to that of large exporters: From less than 10% share in 2006 to about 27% in 2012 • Major imported raw materials: farm inputs, packaging materials and ingredients * Companies with up to US$ 1M capitalization

13. Current Challenges • Uncertainties on Power:Committed plants to be online after 2016 with no assured availability in the next 2 years. • Additional costs on imported raw materials • Additional fees at the Designated Evaluation Area (DEA) • Green Lane imports still pass through DEA, BOC invokes “High Risk Countries” all the time even for countries with Free Trade Agreements (Japan included) • Unfair practice as not all ports have DEA

14. Current Challenges • 3 years after EO 23 was implemented • DENR has yet to simplify regulations in manufacturing tree plantation species and even imposed more policies which declined the number from almost 100 companies exporting tree plantation products, to less than 30 today. • This Tree Plantation sector of the wood industry provides wooden crates for all exports requiring such. • Confirmed reports of smuggled plywood since 4th quarter 2013. Local plywood manufacturers also having a hard time complying with DENR guidelines for tree plantations.

15. Thank you

16. Northern Mindanao is STILL the fastest growing economy in Mindanao, averaging at 4.7% annually GRDP Growth Rates: 2002-2011 Source: NSCB