MARCH – APRIL 2009 volume 10 number 3

A publication of the Japan External Trade Organization (JETRO)

One Town One Product (OTOP) JETRO supports OTOP activities in

The One Village One Product (OVOP) campaign has originally started in Oita Prefecture, Japan when the then-governor Morihiko Hiramatsu advocated the program in 1979. This campaign aims to fulfill the potential of a village and its residents by selecting competitive products made from locally available resources and produce goods that are acceptable both domestically and internationally.

Drawing its inspiration from Japan’s successful OVOP program, ’ One Town One Product (OTOP) is a priority program of the current administration to promote entrepreneurship and create more jobs. Through this program, local chief executives of each city and municipality take the lead in identifying, developing and promoting a specific product which has a competitive advantage in the market. Further, OTOP Philippines supports micro, small and medium enterprises (MSMEs) to manufacture, offer and market distinctive products or services through the use of indigenous raw materials and local skills and talents.

Recently, in a meeting between JETRO Manila and the Department of Trade and Industry (DTI), DTI Undersecretary Merly Cruz made a request to Mr. Koji Hanawa (JETRO Manila) to come up with a project that would provide assistance to the OTOP producers in the region of Mindanao. In response to this request, JETRO Manila thru its Trade Promotion Department conducted a pre-survey among the OTOP producers in (Region 10), Southern Mindanao (Region 11), Soccsksargen (Region 12) and (Region 13) from March 17 to April 2, 2009.

The objectives of the said pre-survey are as follows:

• To gather information with regard to the current situation of OTOP producers in each region; • To conduct plant visits in identified companies and evaluate what assistance Several products made from could be given; and indigenous materials were • To identify those products that have high potential of marketability in Japan. presented during the OTOP pre- Cont’d on page 2 survey in Mindanao.

• JETRO News One Town One Product (OTOP), JETRO supports OTOP activities in Mindanao…………………………………………… pp.1-2 EnerCon dispatch program to local cement companies………………………………………………………………………………p.3 JETRO Manila hosts Emergency Overseas Business Support Seminar…………………………………………………………...p.4 UP NEXT: The 17th Green Aid Plan (GAP) Policy Dialogue to be held on May 29, 2009 in …………………………….p.5

• Frequently Asked Questions Can any type of food be imported to Japan?...... p.6 IN THIS ISSUE JETROJETRO News News

OTOP…from page 1 Lastly, the region would like to focus on developing the following products: • Vegetable noodles REGION 12 – SoCCSKSarGen •Moringa •Mongo crackers Region 12 specifically City is known • Promotion of commercial planting of Cardava to be the tuna capital of the Philippines. But apart Banana from this, other goods which are mostly agri-based and marine products can also be found in the REGION 13 – CARAGA Region region. There is an abundant source of abaca, Cavendish bananas and fresh mangoes to name a In contrast to the other regions previously few. mentioned, the CARAGA region has a diverse resource ranging from mining, agricultural and At present, the region is trying to capitalize on its aquamarine. DTI CARAGA has invested in the rich culture and tradition, thus, most of its products handicraft cluster in the past and at present they are are handicrafts which utilize raw materials that are targeting the spa and tourism industry in the region. locally grown in the area. Crafts are mostly produced in South while fresh fruits such Major products in the region include iron and nickel as mangoes are coming from the province of ore, seaweeds and mud crabs. Forty-five percent of . other products is agri-based such as rice, coffee and soya beans. In addition, palm, nipa and coconut Further, DTI-12 in collaboration with the SMEs in trees are bountiful in the Surigao provinces. the region, is now focusing on the product development of the following items: The following items are the areas of focus of DTI 13: • Coffee dip (using the same concept with • Seaweeds that of tea bags) • Coconut • Muscovado cubes •Abaca •Moringa After identifying the prioritized product items in each REGION 10 – Northern Mindanao region, JETRO plans to dispatch Japanese technical experts this coming July to provide technical Likewise, the agriculture and mariculture industries assistance to the MSMEs in Mindanao. ■ play a vital role in Northern Mindanao. With a big production of pineapple, lanzones, banana, organic rice, coconut, vegetables, and black tiger prawns and crabs, it is noteworthy to say that 88 percent of its OTOP is food-based.

Further, tourism is also an emerging industry in the region. The popular white water rafting has indeed become a major tourist attraction in .

Main areas of focus in the region would include marketing, packaging, financing, and providing training to its stakeholders.

REGION 11 – Southern Mindanao

With a vast arable land, products in this area are mostly agricultural such as mango, banana, coconut, rice, sugar cane, and other fruits and vegetables. The region is currently focusing on product development with the aim of being more competitive and recognized as the top producer of From left to right: Mr. Koji Hanawa, Trade Promotion quality fresh and processed products. The pre- Director of JETRO Manila; Mr. Satoshi Takahasi of Japan’s Ministry of Economy, Trade and Industry (METI) and Ms. survey suggests that most of the raw materials Sherilyn Aoyama, also from JETRO Manila during a plant especially mangoes and bananas are coming from visit at Boom Marine Corp. in Misamis Oriental. the region and then processed in other provinces such as Cebu among others.

Dateline JETRO 2 Mar – Apr 2009 JETROJETRO News News JETRO implements EnerCon dispatch program to local cement companies The pressing issues of environmental degradation and energy crisis have been overwhelming over the past years, conservation of energy is an essential step we can all take towards overcoming this dilemma. Nowadays, countries are keener in increasing their awareness on the inefficient power generation and energy usage in their countries. However, most often than not, only limited information on the rational use of energy are available. The technical know-how on modern energy saving and conservation technologies should therefore be government and industrial managers, down to the engineers and plant-level employees in developing countries. It particularly important that they acquire practical knowledge of the currently available energy conservation technologies and techniques.

It is said that considerable savings on energy could be achieved through basic housekeeping activities such as energy management. Hence, the Japan External Trade Organization (JETRO) in collaboration with the Science and Technology (DOST) and Energy (DOE), continuously promote the application of energy saving and technologies in different industrial sectors particularly those that are energy intensive.

One of these energy intensive industrial sectors that were considered to improve efficiency through the introduction energy conservation measures and technologies is the cement industry. The cement industry consumes much also noted for great percentage of the energy cost in the total production cost. In cement industry, appreciable amounts of energy could be saved by preventing leakages in the kilns, modifying the equipment to recover heat the preheater and cooler in the process of cement-making and effective use of industrial waste materials.

In response to the Cement Manufacturers’ Association of the Philippines (CeMAP), Inc.’s request for an energy conservation program, JETRO in cooperation with the Philippine Council for Industry and Energy Research and Development (PCIERD-DOST) and the Energy Utilization Management Bureau (EUMB-DOE) conducted the conservation dispatch program to the local cement industry. Under a different project scheme, Filipino-owned companies were the ones prioritized in the said program. Mr. Hirokazu Tanimura – a Japanese technical was dispatched from February 25 to March 5, 2009 to two local cement companies namely Pacific Cement Philippines, Inc. (PACEMCO) and Northern Cement Corp. (NCC).

The expert, together with the energy audit team composed of DOST and DOE engineers as well as representative from CeMAP, conducted an energy audit in the two local plants which are located in Surigao and Pangasinan, respectively. The enercon team focused on the heat recovery and issues on coal as these were the two prevailing concerns of PACEMCO and NCC. Evaluation reports indicating the source/s of energy losses and possible countermeasures were then provided to each company after the plant visits and consultations. ■

ENERCON TEAM IN SURIGAO. The team led by JETRO technical consultant Mr. Hirokazu Tanimura went to Surigao last March to conduct an energy audit at PACEMCO. Together with the consultant were PCIERD-DOST engineers, CeMAP representative, and JETRO Manila team.

Dateline JETRO 3 Mar – Apr 2009 JETROJETRO News News JETRO Manila hosts Emergency Business Support Seminar

Japan External Trade Organization (JETRO) Manila, in cooperation with the Japanese Chamber of Commerce and Industry in the Philippines, Inc. (JCCIPI) hosted the Emergency Overseas Business Support Seminar which was held at the Dusit Thani Manila Hotel in Makati last March 17 in response to the global recession that has affected companies worldwide. The seminar covers topics ranging from business reorganization and corporate retrenchment labor-related issues such as labor unions, personnel management and labor-related laws and aims to locally-based Japanese companies deal with the problems that arise as global recession continues its worldwide spread.

Speakers invited to the seminar were Atty. Rachel P. Follosco of the corporate law firm Follosco, Morallos & Herce, who covered topics on corporate reorganization and retrenchment, and Atty. Rebecca C. Chato of the Bureau of Labor Relations of the Department of Labor and Employment (DOLE), who discussed labor and employment concerns and that have risen as the trend of global recession continues to affect companies across the nation.

The seminar will also be held in several areas of in order to help Japanese with their labor concerns. The scheduled venue and dates for the seminar are as follows: Subic Yacht in Subic on April 3, Waterfront Mactan Hotel in Cebu on April 22, and the Yokohama Tire Conference Room in Clark on May 8.■

Philippine-based Japanese companies participated in the recently concluded seminar entitled “Emergency Business Support Seminar” held last March 17, 2009 in Makati City.

Dateline JETRO 4 Mar – Apr 2009 JETROJETRO UP UP NEXT NEXT

The 17th Green Aid Plan The Japan External Trade Organization or JETRO Manila will Policy Dialogue be holding its annual Green Aid Plan (GAP) Policy Dialogue this coming May 29, 2009 at the Ballroom 1, Renaissance Makati City Hotel from 8:30 am to 12:30 pm. Now on its seventeenth year, the GAP Policy Dialogue for 2009 will focus on Energy Conservation (Enercon) and 3R (Reduce, Reuse and Recycle) in its endeavor to May 29, 2009 help improve the environment of Ballroom 1, Renaissance Makati City Hotel, developing countries like the Manila, PHILIPPINES Philippines.

Delegates from the Philippine side and Japan side will gather at this half-day event to discuss the progress report of the Philippine government in their environmental projects on issues concerning Enercon and 3R.

Topics shall include reports on the Energy Efficiency and Conservation project implementation of Japan, Energy Conservation Act of the Philippines, Industrial Zones as Eco- Towns in Japan, status of recycling in Japan and the Philippines policies in waste management and recycling.

The speakers for the Philippine side will come from the GAP Inter-Agency Committee, headed by the Board of Investments (BOI). For the Japan side, experts from the Ministry of Economy, Trade and Industry (METI) will attend the said dialogue. Some participants from the New Energy and Industrial Technology Development Organization (NEDO) and International Center for Environmental Technology Transfer (ICETT) of Japan will also participate by giving their presentations on their projects concerning environmental technology transfer.

The end result of the policy dialogue will be crucial for the undertakings of JETRO Manila’s Technology Transfer Division in strengthening its relationship with Philippine government agencies to improve the transfer of environmental technology in the country. Such efforts will ensure a bright future for the economic development of the Philippines without taking harm to the environment.

For more information, please contact: TECHNOLOGY TRANSFER DEPARTMENT, JETRO MANILA Tel. no. +632-8934651

Dateline JETRO 5 Mar – Apr 2009 FF A A Q Q s s

(In this section, we will be including frequently asked questions at the JETRO business library and answers to such queries)

Question: 4) Food with improper additive usage methods Can any type of food be imported into Japan? >>Food that make use of impermissible additives >>Dried food with residual sulfur diozide in Answer: excess of specified standard levels In general, any type of food can be imported so long as it is guaranteed safe for human 5) Food not accompanied by specified health. However, imported food must documentation undergo certain specified procedures at >>Meat products unaccompanied by a health the time of importation in order to verify certificate issued by the competent their safety, etc. government agency of the exporting country >>Blowfish (fugu) unaccompanied by a health The following types of food cannot be verified certificate prepared by the competent public safe, and therefore CANNOT be imported agency of the exporting country into Japan. Some product categories are subject to other 1) Food containing toxic or harmful requirements in addition to those specified above in substances, or are suspected of containing order to be imported into Japan. For instance, such substances there cannot be any infectious disease organisms or >>Peanuts and pistachio nuts, etc. that have harmful insect pests in raw meat, processed meat contracted toxic mold (aflatoxin, etc.) products (ham, sausage, etc.), fruits, vegetables, or >>Poisonouos fish cereal grains. These products must undergo procedures intended to verify that they pose no 2) Food that have rotted or spoiled threat to the flora and fauna of Japan. In addition, >>Cereal grains that have contracted mold there are a small number of product categories that from sea water leakage during transport, require approval in order to import them into etc. Japan, including fish caught in coastal waters and >>Frozen food that have thawed and spoiled edible seaweed. due to problems with temperature control

3) Food that fail to meet specifications and poisonous standards for manufacturing method, ingredients, or materials >>Soft drinks treated with pasteurization methods that do not comply with manufacturing standards, etc. >>Dairy products wherein the presence of the Japan External Trade Organization colon bacilli group is detected JETRO Manila >>Genetically modified food that have not been verified as safe 44th Floor Philamlife Tower >>Fresh vegetables with residual agricultural 8767 Paseo de Roxas, Makati City chemicals in excess of specified standard 1226 Philippines levels Tel: (+63-2) 892-4376 Fax: (+63-2) 818-7490 E-mail: [email protected] BSCP e-mail: [email protected] DATELINE is a monthly newsletter of JETRO Manila. URL: http://www.jetro.go.jp/philippines

Business Library hours: Mondays-Fridays 9:00 A.M.- 12:00 noon & 1:30 P.M.-5:00 P.M

Dateline JETRO 6 Mar – Apr 2009