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Wednesday, May 15, 2024

Davao del Sur firm promotes fair trade

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AG Pacific Nutriceuticals Corp., an agricultural processing company from Davao del Sur province, has carved a niche in the food industry by championing fair trade practices and innovating with coconut-based products.

Siblings Antonino and Lucila Geniston established the company in 2006, inspired by Tony’s research on the health benefits of coconut oil. With only five employees, they launched their flagship product – fresh-centrifuged virgin coconut oil (VCO) – in the mid-2000s. Their Padada, Davao del Sur facility boasts a unique cold-pressing process that extracts VCO within 48 hours.

Global expansion

Early success in the Philippines motivated AG Nutriceuticals to seek international certifications. By 2008, they had secured organic certifications from the US Department of Agriculture, the European Union, and the Japan Agriculture Standards. Their first VCO shipment to the US followed in 2009.

“Today, we export not only to the US but also to the UAE, Germany, the Czech Republic, Hong Kong, Taiwan, Nepal, Israel, and South Korea,” said Lucila.

Committed to top-quality practices, AG Nutriceuticals navigated challenges from the pandemic and fierce competition, holding firm to their certifications, including Hazard Analysis Critical Control Point (HACCP).

Diversification

Further research led the Genistons to expand beyond VCO, processing coconut water, flour and chips. Their innovative spirit also birthed coconut crisp, vinegar, bath soaps, body oils, hair care products, liniments and massage oils.

Both siblings acknowledge their distinct roles: Tony as the “brains” with his research expertise, and Lucila as the “soul” with her management skills. Lucila’s dedication led her to leave a successful multinational career, believing in the deeper fulfillment of the coconut business. Mason Ang, the company president, provided crucial financial support and unwavering faith in the venture.

International exposure

Local production and marketing initially presented challenges, especially regarding export preparation. Meeting strict quality standards and managing shipping logistics were among the early hurdles.

The Department of Trade and Industry (DTI) proved instrumental in AG Nutriceuticals’ success. The DTI offered marketing support, licensing assistance, and global exposure through international trade fairs.

Their participation in prestigious events like Anuga in Germany, BIOFACH in Germany, and CAEXPO in China broadened their reach. The Department of Agriculture also supported their participation in the OMÉK trade fair in Hungary.

ARISE Plus

Most recently, AG Nutriceuticals joined Thaifex Anuga in Bangkok, Thailand, with backing from the EU-funded ARISE Plus Philippines project. This participation proved highly successful, yielding 35 sales prospects and 34 international contracts signed at Anuga 2023 in Germany, with potential sales exceeding $149,000.

“Thaifex was a valuable experience,” said Lucila. “We promoted our products to international buyers, learned about current trends, and strengthened our own offerings.”

The ARISE Plus project also provided international expert support, aiding AG Nutriceuticals in navigating logistics, branding, packaging, labeling, online presence, and improving negotiation and marketing skills.

Fair trade principles

Their commitment to fair trade principles earned AG Nutriceuticals the Best Coconut Industry MSME award at the 2022 World Coconut Awards. The International Coconut Community recognized their potential as an enterprise promoting organic products, Filipino pride and sustainable business practices.

“We believe in fair trade principles and are eager to expand in the EU market,” said Lucila. “Our commitment to sustainability and quality will continue to guide our vision.”

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