Mindanao mom-and-pop bakeries face stiffer competition from food brands

DAVAO CITY — Micro, small and mediumscale enterprise (MSME) bread and cake makers are a growing sector in Mindanao, but they need to keep innovating to compete with big firms that mass-produce baked goods, according to the chairman of the Filipino-Chinese Bakery Association, Inc.

“I was here 19 years ago to escort a chef from California Raisin and we travelled to (the cities of) Cagayan de Oro, Davao, and it turns out the city has changed a lot since then,” Bien Enrico C. Ah, chairman and also a past president of the Filipino-Chinese Bakery Association, said in an interview during the Bakery Fair 2018-Davao held at the SMX Convention from March 1-3.

“The bakeries here are no longer mom-and-pop operations so they must prepare to become competitive,” Mr. Ah said, “We buyers of flour have to be more innovative since our mainstream products are being taken over by the big flour companies.”

He cited Universal Robina Corp., one of the country’s biggest food and beverage companies, which has established the Baker John Bread line, and several local bakery companies that are forming partnerships with foreign firms such as Monde Nissin.

A total of 76 companies participated in the Bakery Fair, the first in Mindanao, including those in the general food service business.

More than 4,000 visitors from around Mindanao attended, and while this is much less than the 25,000 visitors during the Bakery Fair in Manila last year, Mr. Ah said it was more than expected.

He said previous proposals to hold the Bakery Fair in Mindanao were “shot down three times due to martial law.”

“My (association) directors were very conservative but I was firm with my decision,” he said, adding that majority of the exhibitors were supporting him.

Cecil A. dela Cruz, president of the Davao Bakers Club, which has around 30 members from around Mindanao, said the sector faces challenges but welcomed the fair.

She said the club’s individual members, and the club as a group, stand to benefit from the new products and technology featured during the event.

“The industry is growing and expanding, but we don’t consider our members as competition, but instead we get together to help each other out,” Ms. Dela Cruz said.

“You can’t bake with recipes alone, you also need ingredients and technology,” she added.

Hannah C. Granado, Mindanao Cake Decorating Society (MCDS) president, also said that the baking business in Mindanao is growing, although most of the players are still home-based.

MCDS now has over 2,400 members, but only a small percentage have physical stores.

The majority, she said, rely on online marketing using social media platforms.

“A lot of home bakers do not have business permits and while we cannot force them to get a permit due to the expenses involved, we want to educate them on the hygiene and safety (measures) of baking,” Ms. Granado said.

Mr. Ah said Mindanao’s bakers must take advantage of the boom by keeping abreast of new developments in the industry and investing in good equipment. “The locals have to be ready.”