Chili pepper demand picks up amid limited output, DTI says
DAVAO CITY — Filipino cuisine is generally not spicy, but evolving tastes and growing dining options have pushed up the demand for raw chili pepper, particularly in Luzon and the Visayas.
Aiming to meet and cash in on this demand, the Department of Trade and IndustryDavao Region ( DTI- 11) is looking at strengthening the program that helps local growers consolidate and market their produce.
“There is a big potential for raw chili right now, raw chili is P600 per kilo in the market,” said DTI Regional Director Belinda Q. Ambi in an interview.
Ms. Ambi said buyers are currently purchasing in relatively small volumes because there is not enough production to meet their requirements.
DTI- 11’s chili program — known as the Program to Accelerate Building Livelihood Opportunities in Davao Oriental — was launched in the aftermath of typhoon Pablo ( international name: Bopha), which struck parts of Davao Region in December 2012.
Growing chili pepper, which only takes about four months from planting to harvesting, was intended as a quick alternative income source for farmers in the provinces of Davao Oriental and Compostela Valley whose coconut trees and banana plants were destroyed by the typhoon.
DTI promoted the production and processing of chili powder and hot sauce, and soon more communities started developing chili farms.
The continuing DTI program covers trainings on Good Manufacturing Practice and Food Safety to prepare processors for registration with the Food and Drug Administration (FDA); and funding support, through the provincial government of Davao Oriental, for the completion of three buildings and to facilitate compliance with FDA requirements, including those for the Shared Services Facility.
Ms. Ambi said there are two chili powder processors that are already FDA-accredited.
“The accreditation depends on the MSMEs (micro, small and medium enterprises). Some of them at this point of their operation, they would not like to expand so much because this depends on their existing supply,” she said.
With the two FDA-accredited processors, Ms. Ambi said, the region can establish itself in the processed chili market, while the small producers can focus on domestic demand, including that for raw chili.
“We have big plans for chili, but of course we look at the whole value chain such as their level of volume... to warrant the expansion of processing. And of course the quality we have to look at that as well, and the market. And the biggest market is in raw materials.”