Business Weekly

Philippines eyes export of fresh food to Bahrain

October 15 - 21, 2008
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The Philippines hopes to start regular exports of fresh food to Bahrain and possibly Sharjah in the UAE by as early as December this year.

However, the success of the proposed private air charter rests on whether the operator could secure backload cargoes on its return journey out of the Gulf, and also whether the Bahrain government would step in and offer cheaper jet fuel to help the fledgling service take off, according to officials at the Philippine Embassy in Bahrain.

"The concept is simple, but the execution is proving a lot harder," Philippine Ambassador to Bahrain Eduardo Pablo M Maglaya told businessmen and importers during a meeting at the Gulf Hotel in Bahrain.

At the meeting, officials from the embassy and the Philippine Business Council in Bahrain held discussions with importers, distributors, logistics providers, bankers and businessmen based in Bahrain on ways to kick off the service before the end of the year.

Jose Dela Rosa Burgos, Minister and Consul General at the embassy, said negotiations were well under way with a private operator in the Philippines to launch the charter flight from Manila to Bahrain, which would also stop over in Sharjah.

The cargo plane would have a capacity of 18 tonnes and the focus would be on importing fresh fruits and vegetables including the Philippine mango, which is said to be one of the sweetest fruits in the world, sourced from farmers and producers across the Philippines.

Burgos is seeking firm commitments from major importers and supermarkets in Bahrain in order to sustain the service, which would initially operate twice a week.

However, he acknowledged that the project still faced the twin challenges of filling the plane with cargo on its return journey, as well as high jet fuel prices.

To this end, the embassy has asked the Bahrain government to offer subsidised jet fuel prices for the first two years until the service finds its feet and is able to compete with other commercial airlines operating on the same routes, Burgos said.

Also, officials are looking at the option of picking up backload cargoes from Sharjah or even New Delhi in India, in order to make the project viable, he added.

Besides providing a regular source of income to farmers in the Philippines, Burgos said the service would bring quality fresh food from the Philippines to the Gulf consumer while "further boosting food security in the region".







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