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Productivity goes up for 30,000 DOST-assisted Pinoy startups

By Tessa Salazar
Philippine Daily Inquirer
First Posted 20:11:00 06/27/2008

Filed Under: Economy, Business & Finance

MANILA, Philippines?Science and technology has spread its wings onto various fields, one of which is among Filipino microentrepreneurs.

Fernando Esguerra, owner of Mapagmahal Foods Inc., a former wholesaler and distributor of Philippine lemon concentrates, decided in 1998 to produce and market his own calamansi juice, supplying schools and company canteens, sari-sari stores and groceries.

With an initial capital of just P100,000 to finance infrastructure expenses, and P8,000 cash on hand, Esguerra found it difficult to maintain his manufacturing facilities and systems, which involved workers manually squeezing the calamansi. Though the workers started the day with much enthusiasm, the tedious chore forced them to quit a few days later because of work fatigue.

Training and machinery

Esguerra then signed up with the Department of Science and Technology's technical assistance training, and loaned the necessary lemon juice extracting machinery from the department, as well.

Within a month, he found his monthly production volume increased from 8,000 bottles to 21,660. ?In two days, we were able to produce what previously took us five days to make,? he recalled.

Production volume was not the only positive effect. Shelf life also increased from 90 days to one year, since the finished products were ?cleaner? with the new equipment.

Today, Mapagmahal?s Lemonada not only markets in major malls, restaurants, health centers and country clubs, but could also be bought from the US mainland, Guam, Hawaii, Australia and New Zealand. The clientele base has increased to 25 percent of the local market, and the production for export from 10 to 40 percent.

Technical assistance

Esguerra?s Mapagmahal Foods is just one of the 1,500 companies in the National Capital Region supported by the Department of Science and Technology through the technology support and provision of equipment.

Dr. Teresita C. Fortuna, regional director, DOST-NCR, said P23 million was allotted to 39 startup companies under the innovation support system.

She stressed, however, that DOST is not a funding agency. ?We are more focused on technical assistance.?

Fortuna also explained that micro-entrepreneurship included backyard businesses such as making home-made polvoron (milk-based powdered sweets).

Nationwide, the DOST has been assisting 30,000 firms. Under the agreement, startup companies are expected to pay back the equipment provided by the DOST on reasonable terms.

Recognition

Esguerra?s company has reaped not just financial rewards. Among the awards given to Mapagmahal is the Best Lemon Juice Manufacturer for Metro Manila by the National Council for Product Service Quality, the Consumer Today Magazine, and the national Product Quality Excellence Awards. The Asia Pacific Awards Council also cited the company's brand ?Good Sense? as 2008 Outstanding Citrus Beverage Products Brand.

Eleven-year-old Merry Cooks Inc., a 100-percent Filipino-owned restaurant/food services company, availed itself of the DOST Small Enterprise Technology Upgrading Program (Setup) in 2004 and loaned machinery under the program. Since then, its production went up 300 percent. Its market outlets grew from 16 to 65 nationwide.

Merry Cooks opened its first Bravo restaurant in 1998 and another in 1999. It eventually ventured into producing bottled gourmet goods in 2001.

Also successful

Other successful companies were Motz Food Products, specializing in the production of polvoron; Marisa?s Food, atchara or pickled papaya, peanut butter and bagoong isda manufacturing; and Frabelle Market Corp., maker of frozen seafood and other marine-based products. Frabelle?s production capacity soared from two to five tons per day through automated cooking and cooling convenor machines.

Another company is Marventure Corp., maker of iced tea concentrates using the brand Allmytea. It underwent DOST training in hazard analysis critical control points, good manufacturing practices and shelf-life studies of food products. In five months, its gross sales increased 50 percent.



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