Export Report: Beston Global Food Company Philippines Market Analysis

This report presents a market analysis for Beston Global Food Company Limited, focusing on opportunities and challenges within the Philippines. It examines the growth stage of the Philippines food industry, including the performance of food retailing and manufacturing sectors, and the increasing demand in the dairy industry. The analysis considers economic factors, policy changes, and the impact of the COVID-19 pandemic, which has significantly affected the market. The report also assesses the country's infrastructure, social environment, and legal structure to provide a comprehensive overview. The conclusion suggests that while the dairy industry shows promise, the company should carefully consider the economic slowdown and the impact of the pandemic before expanding its business in the Philippines. The report is based on data from 2019-2020 and includes references to relevant sources such as EuroMonitor International and Reuters.

Running head: INTERNATIONAL BUSINESS
Beston Global Food Company Limited
International Business
3-15-2020

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Table of Contents
Introduction................................................................................................................................2
Overview of Beston Global Food Company Limited.............................................................2
Market analysis of the Philippines.........................................................................................2
Conclusion..................................................................................................................................4
References..................................................................................................................................5

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Introduction
The intent of this export report is to present a proposal for Beston Global Food Company
Limited to support it in identifying the market opportunities and challenges in the Philippines
market.
Overview of Beston Global Food Company Limited
Beston Global Food Company Limited is a known food company in Australia. The company
is involved in the distribution as well as the marketing of seafood, water, nutrition products,
dairy, and wine products in the domestic as well as international market. The company is also
involved in the production of cheese, milk, and many other dairy products, along with the
making and processing of the meat products, and beverage and pharmaceutical (Reuters,
2019).
Market analysis of the Philippines
The Philippines food industry is presently at the growth stage and every business local or
international desires to operate in it. The food industry of the country is comprised of
different forms of food retailing and manufacturing such as cafes, bars, retail food r and
distributors, dairy food operators, etc. In the year 2016, the food industry of the country
generated around P535.9 billion as revenue (Masigan, 2019). Besides this, in the year 2018,
the food retailers were enjoying growth in their business because customers have enjoyed
higher take-home pay due to the application of new Tax Reform for Acceleration and
Inclusion (TRAIN) law. But policy and economic changes have resulted in a higher rate of
inflation in the country (EuroMonitor International, 2019). On the other hand, considering the
dairy industry of the Philippines it has been noticed that the Cheese and other dairy products
have seen stronger growth in the current value and retail volume in the year 2019 in
comparison to the previous year (EuroMonitor International, 2019).

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The above analysis of the food industry reveals that the Philippine food industry is offering
growth opportunities for the local as well as international businesses to operate and increase
their revenue. However, the changing policies and economic situation can have an impact on
the Beston Food Company. Besides this, the dairy industry of the country is also growing due
to the increasing demand of the customers which reflects that Beston Food Company can
offer its dairy products in the market.
In addition to this, the social environment of the country is very stable. The people of the
country are very helpful, optimistic, and friendly. They are known for the polite and positive
attitude which reveals that the company will get a good slot of candidates to hire (Agbing,
2020). Furthermore, the customers in this market have higher income which enables them to
spend on purchasing different food products.
The Philippines is equipped with advanced technology which encourages different business
to use it effectively such that new and innovative products can be introduced. Along with
this, the infrastructure of the country is also upgraded which can allow the Beston Global
Food Company Limited to smoothly produce and distribute its products in the market.
In the Philippines, there are around 7640 islands, water parks, hotels, beaches, etc. which
make it the most attractive location to visit (World Health Organization, 2016). However, the
country is also exposed to a different type of environmental challenges such as typhoons,
volcanic eruptions, and earthquakes which makes very tough for the businesses to operate the
business smoothly. In addition to this, a recent disease outbreak is also impacting the
Philippines market that is COVID-19. This disease has been termed as Pandemic which is
impacting the whole world (Duddu, 2020). Due to this disease, the business market of every
country is being negatively impacted and leading to the closure of the market. Many
countries have ceased the import of food products too.

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Considering the legal structure of the country, it has been identified that the government of
the Philippines has established a strict and strong legal system under which they majorly
focus on the rights of employees and effective procedures of hiring, retirement, working
hours, firing, etc. This reveals that Beston Food Company has to follow the guidelines and
process of the legal system of the country in order to smoothly operate the business.
Conclusion
From the above analysis, it can be said that the dairy industry of the Philippines is growing
which shows a growth direction for the Beston Food Company, however, the food market is
dealing with a slowdown due to economic and policy changes. Besides this, the country has
developed infrastructure which offers an opportunity to Beston Food Company to smoothly
operate in the country. Furthermore, an outbreak of COVID-19 disease has impacted the
business market of the Philippines and it will be very tough to expand business since the
respective government has ceased the importing of food and other products. Therefore, the
company is suggested to consider all the above-specified points before expanding the
business in the Philippines.

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References
Agbing, U.L. (2020) Environmental Attitudes, Behavior and Practices of the Filipino Elderly
[online]. Available from https://ejournals.ph/article.php?id=492 [accessed 15 March 2020]
Duddu, P. (2020) Coronavirus in Philippines: The COVID-19 risk, impact and measures
[online]. Available from https://www.pharmaceutical-technology.com/features/coronavirus-
affected-countries-philippines-measures-impact-tourism-economy/ [accessed 15 March 2020]
EuroMonitor International (2019) Dairy in the Philippines [online]. Available from
https://www.euromonitor.com/dairy-in-the-philippines/report [accessed 15 March 2020]
EuroMonitor International (2019) Retailing in the Philippines [online]. Available from
https://www.euromonitor.com/retailing-in-the-philippines/report [accessed 15 March 2020]
Masigan, J.A. (2019) Trends in the food industry [online]. Available from
https://www.bworldonline.com/trends-in-the-food-industry/ [accessed 15 March 2020]
Reuters (2019) Beston Global Food Company Ltd. [online]. Available from
https://www.reuters.com/companies/BFC.AX [accessed 15 March 2020]
World Health Organization (2016) Tackling environmental health challenges in the
Philippines [online]. Available from
https://www.who.int/philippines/news/feature-stories/detail/tackling-environmental-health-
challenges-in-the-philippines [accessed 15 March 2020]

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