Wednesday, January 03, 2007

Terminal Report on the Visayas OTOP Trade Fair 2006


I'm usually saddled with preparing the terminal reports of almost all major activities organized by my office. Here is one of those reports. I'm posting it because it comes in handy when I want to refer to it in the future. It will also give you an idea of the results of our efforts. Note that my office was only given a very short time to do the publicity for the activity -- so don't be shocked by the low sales figures.

FINDINGS

The trade fair was able to accomplish its major objectives, namely: marketing the OTOPs of municipalities in the Visayas, building awareness among the general public on the OTOPs of municipalities and encouraging LGUs to actively participate in the OTOP program.

Focus on the One Town, One Product (OTOP) program as a development and branding strategy was reinforced. In fact, products of municipalities in the three Visayas regions were given the spotlight during the trade activity.

With one-hundred-seventy exhibitors from regions 6, 7 and 8, the recently concluded Visayas OTOP Fair held in Cebu generated interest from buyers, garnering total sales of P4, 097,824.18 in cash and booked orders.

Trade exhibitors generated cash sales of P 1,329,480.18 with booked orders of
P 1,401,994.00. Total orders under negotiations reached P 1,401,994.00.

Top selling region was Central Visayas which raked-in total sales of
P 2,691,337.90.

Bannering the theme “A Feast for the Senses”, this year’s Visayas OTOP fair brought together exquisite products such as hand-woven fabrics of raffia, pina and sinamay, fashion accessories, footwear, a generous array of exotic items, home furnishings, decors and processed food.

Apart from the 66 Central Visayas micro and small enterprises displaying their crafts, the showcase also featured 28 exhibitors from Eastern Visayas and 76 from Western Visayas.

A total of 314 guests attended the trade fair including Keynote Speaker Secretary Mike Defensor, Guest Speaker and DTI Secretary Peter Favila, OTOP Program Manager and DTI Undersecretary Carissa Evangelista, SMEDSEP-GTZ Program Manager Martina Valhaus and PCCI President Donald Dee.



There were two side events during the trade fair: Go Negosyo Forum and Food Safety and Packaging Solutions Seminar. The Go Negosyo
Forum featured Julie Gandionco of Julie's Bakeshop, Jay Aldeguer of Island Souvenirs, Justine Uy of Profoods, and other successful OTOP entrepreneurs from Cebu. The Food Safety and Packaging Solutions Seminar featured experts who provided an overview on food safety and one-on-one consultations for the small and medium entrepreneurs. The packaging seminar also offered food manufacturers with innovative product design ideas.



Below is a copy of the trade fair opening program and a synopsis on the speech of secretary Mike Defensor and DTI secretary Peter Favila.


OTOP Visayas Trade Fair

November 23, 2006

10:00 to 11:05 AM

SM Trade Halls, Cebu City

10:00am

Doxology and Invocation

10:05

National Anthem

10:10

Opening Remarks by

Undersecretary Carissa Cruz-Evangelista

DTI ROG Usec/National OTOP Program Manager

10:20

MESSAGE

Secretary Peter B. Favila

DTI

10:30

Introduction of Guest of Honor

10:35

SPEECH
Secretary Mike Defensor

11:00

Ceremonial opening


Ribbon Cutting

Sec. Mike Defensor to be assisted by Sec. Peter Favila, Usec Carissa Evangelista, Amb. Dee Donald (PCCI), Mr. Francis Chua (FFCCI), Mr.Sergio Luis Ortiz (Philexport) and other VIPs

Secretary Mike Defensor

To signal the opening of the trade Fair by blowing a whistle to start the Mardi Gras

Secretary Peter B. Favila will make the intro drumming. LGUs / VIPs will blow whistles while Ati-atihan dancing is going on

11:05

Photo opportunity with Sec. Mike Defensor

Speech of Secretary Mike Defensor (Summary)
Opening Ceremonies: 1st OTOP Visayas Island Trade Fair
SM Trade Halls, Cebu City, 10:00 A.M., 23 November 2006

More than a thousand jobs and millions of pesos worth of product sales have already been generated through the "One Town, One Product" (OTOP) project since its inception in the country two years ago.

The OTOP, a project implemented by the Philippine government was able to engender employment opportunities and propel several locally produced products to marketing success.

If the LGUs, DTI & other cooperating agencies maintain these gains of the OTOP, better opportunities would undeniably be brought to the provinces and rural areas in the coming months.

Our government has always supported micro, small and medium enterprises (MSMEs) through the OTOP project. In fact, the OTOP is one of the priority projects of the Arroyo administration to alleviate poverty by encouraging entrepreneurship and creating more jobs. OTOP-Philippines assists MSMEs to manufacture, offer and market distinctive products or services through the use of indigenous raw materials and local skills and talents. The program also offers a comprehensive assistance package through a convergence of services from local government agencies (NGAs) and the private sector. This includes business counseling, skills and entrepreneurial training, product design and development, appropriate technologies and marketing.

With the OTOP project, the government is setting the trend for the preparation of processors to meet international standards for a more challenging and better vista in their entrepreneurial careers.

Judging from the diversity of products in this trade fair, it is clear that a wealth of opportunities awaits our entrepreneurs in the Visayas. The choices are becoming more varied since each municipality in each province has its own unique OTOP.

I understand that products and services prioritized by our town mayors have competitive advantage over other products and services of other provinces and cities. Boracay Island, for example is a major tourist destination of the country and brings in the bulk of local and foreign tourists to Panay Island, while Cebu’s furniture has already captured the foreign market and won awards for many Cebu furniture makers.

At this point, allow me to
thank and commend the LGUs of the Visayas as well as other cooperating agencies for your very active participation and support in identifying and developing OTOPs for your respective areas.

A shining illustration of a face of OTOP and of a successful convergence or inter-agency cooperation in the selection of an OTOP is the case of the Biliran Integrated Coconut Industry, Inc. This enterprise utilizes the waste products of copra production -- coco husks and shells – to produce coco fiber and coco dust. Coco fibers are made into liner sheets to produce houseware and décor items while coco dust is mixed with decay-enhancing substance and agro-waste to produce natural fertilizer. Coco shells are also cut into shapes and used as accents for handcrafted décor items. Because of abundant and reliable raw material supply and high local and global market potential for these products, the Municipal Mayor of Naval, Biliran – with the concurrence of the OTOP Task Force members -- composed of the DTI, DOST, TESDA, Philippine Coconut Authority (PCA), and Fiber Industry Development Authority (FIDA) – selected in April 2005 coco by-products processing as the OTOP of the Municipality of Naval. And this was eventually chosen as the model Provincial OTOP of Biliran. The OTOP Task Force interventions came in terms of linkage with equipment and materials supplier, business counseling, skills and entrepreneurial training, productivity training, technology assistance, product design and development, local study missions, and marketing assistance and facilitation thru local national trade fairs.

Today, the enterprise plans to expand into the export markets of Europe and China, up production by getting additional equipment, set up raw material buyer centers in all municipalities of Biliran, add another product line such as VCO, vinegar, coco charcoal and other coco-based food products, and set up production units in other municipalities.

What a remarkable and inspiring experience, don’t you think so? And this success story can be replicated many times over in many more municipalities in the Visayas to produce more success stories thru the convergence and intervention of OTOP mechanisms.

Indeed, the development of OTOPs represents an opportunity for dynamic collaboration among local LGUs, NGOs/private sector groups, the DTI and other government agencies to promote wide-based grass-roots entrepreneurship as well as the generation of investments, incomes, livelihood opportunities and direct and indirect employment.

Although the idea started in Japan, Filipinos, through their active and passionate participation, have successfully adopted the OTOP concept and made it their own.

But that should not keep us complacent. Let us continue to empower and position our people as world-class entrepreneurs, capable of competing with their international counterparts, and ready to avail of the opportunities for growth.


The Arroyo administration
remains firmly committed to support the LGUs and business community of the Visayas in fortifying your region’s competitive edge and creating sustained stability and prosperity for its citizenry.

In closing, let me emphasize that much good can be expected from a united people with passion to achieve a common goal. And with our business friendly environment, we will continue to create jobs, livelihood opportunities, and incomes, and improve the quality of life of our people, particularly those in the countryside.



Message of DTI Secretary Peter B. Favila (Summary)
Opening Ceremonies: 1st OTOP Visayas Island Trade Fair
SM Trade Halls, Cebu City, 10:00 A.M., 23 November 2006

Top-billed by Boracay, Cebu, Bohol (and Palawan), Central Philippines - as the President has recognized, attracts more than half of the foreign tourists that come in to the country. And thus, as the President said, the priority for your super region is tourism investments.

Of course, with your high tourism investment potential come the products you offer – since the other side of investments is trade. The Visayas has the good fortune of being blessed not only with magnificent natural wonders but also with abundant resources and highly skilled, creative and talented craftsmen. These factors represent a wellspring of opportunities for developing SMEs that harness the strength of each province or municipality.

The DTI has been working in partnership with your region’s local officials in identifying your regions’ priority products under the President’s One Town, One Product (OTOP) program which seeks to develop more countryside products and business activities through micro, small and medium enterprises.

From a national standpoint, the 16 regional model OTOP products in 2004 have now spawned 83 validated provincial OTOP products which in turn have: developed 3,000 new MSMEs, generated 102,423 new jobs, exported US$113.98 million, and sold P2.19 billion worth of OTOP products in the domestic market. Likewise, 130 OTOP Pasalubong Centers have been established in airports, bus terminals, sea ports, train stations, and there are currently 1,129 market outlets all over the county where OTOP products can be found.

Let me underscore that essential to the success of OTOP is the institutional support of its stakeholders. Up until the August, 459 Memoranda of Agreement have been signed with partners from the cities and regions. Recently, we have signed MOAs with the following institutions whose functions are critical to the development of OTOP:

  • League of Municipalities of the Philippines to include OTOP in every town’s Municipal Development Plan, advocate OTOP in their municipalities, and make available its facilities to assist in the development of OTOP entrepreneurs;
  • National Livelihood Support Fund (NLSF) to provide a special financing window for our OTOP MSMEs and other capability-building interventions through its resource development network;
  • Philippine Information Authority (PIA) to assist in the creation of the OTOP Communications Plan and to actively participate in the promotion of OTOP products and MSMEs in the tri-media;
  • Air Transportation Office (ATO) to make available its facilities for OTOP special settings and OTOP product counters;
  • Technical Education and Skills Development Authority (TESDA) to provide training for OTOP MSMEs.
  • We expect more support from different organizations to partner with us in the development of OTOP. For example, later in this program, we shall witness the signing of MOAS between the DTI and the following:
  • Union of Local Authorities of the Philippines (ULAP)
  • Philippine Chamber of Commerce and Industry (PCCI)
  • Philippine Exporters Confederation (PHILEXPORT)
  • League of Cities of the Philippines
  • Philippine Center of Entrepreneurship (PCE)

To these institutions, let me say thank you very much for your willingness to support and serve as our partners in developing, implementing, and promoting the OTOP program.

I am also proud to remind you that in addition to the grand opening of this OTOP Visayas Trade Fair, we will also be launching this afternoon the Cebu City National Economic Research and Business Assistance Center. This Center will assist prospective entrepreneurs and investors in the country towards enhancing the process of business formation and entrepreneurship. The center will also facilitate the processing and documentation of all requirements in the establishment of a business in the country and link prospective entrepreneurs to credit services.

Likewise, we will open the DTI Business Technology Center, in partnership with Intel Microelectronics Philippines and Globe Telecom, in recognition of the importance of ICT in the development of one’s business. The BizTech Center serves as a one-stop IT help-desk to help MSMEs understand the benefits of technology in their business, providing access to technology tools, experiential marketing and training to allow them to operate more effectively and be more competitive using technology. It will offer training from SME counselors with modules done in coordination with Intel and with the University of the Philippines Institute of Small Scale Industries (UP ISSI) and provide computer training through the PCs in the center.

So there – a lot of good things in the offing for the Visayas SMEs.

In closing, allow me to encourage our entrepreneurs here to continue availing of DTI’s many programs for SMEs. DTI would be happy to assist SMEs in their continuing process of evolution – from the development of their products and designs, to their upgrading and modernization to suit current market trends, to acquisition of vital technology for production, to obtaining various types of financial assistance and credit thru our SULONG program and its various innovations, to market testing and promotion thru trade fairs and buyer-supplier matching activities.


RECOMMENDATIONS

It is recommended that the agency’s trade fairs be timed with the holding of fiestas in provinces such as the Sinulog of Cebu and the Sandugo of Bohol or any large, high profile events to maximize visitor traffic.




It is also recommended that trade fairs be held in shopping malls since these venues are natural attractions to buyers.



FUTURE PLANS

DTI-Central Visayas Office, together with the Regional Operations Group, plans to re-discuss relevance of trade fairs, rethink present strategies to promote local products and explore new marketing channels.


EXHIBITORS

Please see attached sheet.


BUDGET

The activity incurred a total cost of P___________.