No slump in hot chili market
THIS REFERS to your news story “‘Hot Pablo’ cools off as typhoon survivors find no markets” (Across the Nation, 4/12/15).
Allow us to share the following developments regarding the various government assistance and continuing support being extended (like opening markets, among other forms of support)—through the Department of Agriculture and the Department of Trade and Industry, particularly their regional offices in the Davao Region or Region 11—to Hot Pablo chili farmers and processors, including the Subangon Dumang Makers (SDM), a chili processing enterprise in Cateel, Davao Oriental, which,
according to the report, claimed lack of markets for their hot chili.
1. Reacting to the report, DTI-Region 11 conducted a rapid validation survey among the hot chili processors based in Baganga, Cateel and Boston in Davao Oriental. Except for SDM, the seven other hot chili processors do not have problems marketing their products. They did initially encounter some challenges, largely due to their being start-ups. But with training and other support services from the DA and the DTI, they were able to hurdle these.
2. Very recently, these processors participated in another trade expo facilitated by the DTI. The cash sales generated by three processors alone from walk-in buyers at the weeklong Mindanao Trade Fair (April 10-16, 2015) amounted to P104,000.
3. These Hot Pablo processors and consolidators are now expanding their operations in order to meet the growing demand for hot chili and its by-products. As of Feb. 28, 2015, the Hot Pablo project has generated a total of P7,622,480 in domestic sales.
4. SDM, unlike the other processors, is a recipient of a P1.12-million funding assistance; and it has a marketing agreement with the Manila-based Vegetable Importers, Exporters and Vendors Association of the Philippines (Vieva). But even with the marketing support facilitated by the DA, SDM was not able to meet Vieva’s orders.
This was due to SDM’s uncompetitive pricing compared to those of other suppliers’. Further validation with the farmers who earlier served SDM requirements revealed that there was a time when they had to abandon their chili farms. The raw chili materials they delivered to SDM were bought on credit; but to this day the farmers have not been fully paid. The remaining debt that SDM still owes the farmers is around P700,000.
5. The continuing government assistance provided to Hot Pablo farmers and processors are in the following forms: (1) workshops/trainings on Good Manufacturing Practice and Food Safety to prepare the processors and their products for FDA (Food and Drug Administration) registration; and (2) funding support of P9.8 million from the DA, downloaded through the provincial government of Davao Oriental, to provide funds for the completion of three buildings and to facilitate the compliance with other FDA requirements such as the DTI’s Shared Services Facility for chili processing.
—JOSE RENE D. ALMENDRAS,
Cabinet secretary,
Office of the President
