LOCAL PROCUREMENT FOR FOREIGN FASTFOOD CHAINS

LOCAL PROCUREMENT FOR FOREIGN FASTFOOD CHAINS

It was one of my former professors who once told me that the role of a writer is to see things that other people do not see. I can’t recall now whether it was Amelia Bonifacio or Doreen Fernandez, both of whom shaped the way I look at ordinary things and find meaning in them. One of them said that if I could only see what everyone else already sees, then I’m not doing my job as a writer.

Recently, I remembered that bit of wisdom when I noticed something seemingly small — even trivial — yet revealing of something much bigger.

It happened when I bought a burger meal from Burger King. As I opened the paper bag, I noticed the sachet of ketchup that came with it. Out of curiosity, I read the fine print. It said: Made in China.

Now, some might shrug that off as unimportant. But to me, it was an eye-opener.

Why is ketchup for burgers sold in the Philippines being imported from China, when we have tomato and banana ketchup manufacturers right here — some of whom are even exporting their products abroad? Surely, ketchup manufacturing isn’t rocket science. So why are our own local producers missing out on supplying something as simple as ketchup to foreign fast-food chains operating on our soil?

SMALL DETAILS, BIG IMPLICATIONS

This little sachet of ketchup tells a much larger story about missed opportunities in our economy. Every imported ketchup packet represents income that could have gone to Filipino tomato or banana farmers, Filipino packaging suppliers, and Filipino workers in local factories.

If we multiply that by the millions of burgers sold across all foreign fast-food outlets in the Philippines every day, that’s a staggering amount of economic leakage — value that could have stayed within our borders.

NO LAW, JUST COMMON SENSE

As of today, there are no laws that require foreign fast-food franchises to source their supplies locally. The Government Procurement Law (RA 9184) does prioritize Filipino suppliers, but that only applies to public contracts, not private corporations.

However, this is not about imposing new rules or being heavy-handed. We don’t have to make it mandatory. What we can do is create incentives — tax perks, recognition programs, or even expedited import clearances for companies that commit to local sourcing.

Let’s not threaten them with penalties; let’s persuade them with the economic and branding advantages of supporting Filipino producers.

THE ECONOMIC CASE FOR LOCAL SOURCING

There are many practical reasons why sourcing locally makes sense even from a business standpoint.

For one, it avoids import tariffs, freight costs, and shipping delays. It also makes the supply chain more resilient and adaptable to local market changes. Using local ingredients allows franchises to tweak their flavors to Filipino tastes — just as many already use banana ketchup or calamansi as part of their menu offerings.

There’s also the public relations angle. Imagine the goodwill a global brand could earn by proudly announcing, “Now made with locally sourced ketchup from Filipino farmers.” That kind of message resonates with customers who are increasingly conscious of sustainability and community support.

GOOD EXAMPLES TO FOLLOW

Some companies are already doing this. McDonald’s Philippines, for instance, sources its rice, chicken, and some condiments from local producers. Meanwhile, Jollibee, though Filipino-owned, has shown that integrating local supply chains is possible even when expanding globally.

Even within foreign franchises, there’s often flexibility. Many franchise agreements allow local operators to choose suppliers, as long as the products meet quality standards. That means there’s room to negotiate — room for local ketchup, local packaging, local vegetables, and more.

WHY NOT A LOCAL PROCUREMENT POLICY?

The government, through the Department of Trade and Industry (DTI) or the Board of Investments (BOI), could develop a Local Procurement Incentive Program — a framework that rewards foreign franchises for sourcing locally.

Such a program could include:

• Tax incentives for using locally manufactured food inputs and packaging.
  
  

• Recognition or awards for companies that achieve high local sourcing ratios.
  
  

• Public-private dialogues where food manufacturers, farmers, and franchises can co-create sustainable supply agreements.
  
  

Even local government units (LGUs) could help by linking local farmers’ cooperatives to nearby fast-food chains. If a city can supply its own tomatoes, onions, lettuce, or packaging materials, why import from thousands of miles away?

A MATTER OF NATIONAL INTEREST

We should look at this ketchup issue not just as a trade concern but as a development opportunity. Every sachet, every paper cup, every burger wrapper could represent a small piece of local livelihood — if only we cared enough to make it so.

I am not suggesting that we should ban imported supplies. Rather, I am suggesting that we open the door for Filipino producers to become part of the global supply chain — starting with the foreign brands that are already operating here and earning from our market.

MY SUGGESTION

Instead of letting ketchup money flow out of the country, let’s keep it circulating here — from farm to factory to franchise. Instead of helping tomato farmers in China, let’s help those in Ilocos, Bukidnon, or Mindoro.

We may be talking about something as small as a ketchup sachet, but small things add up. And sometimes, it’s in the smallest details that we find the biggest opportunities for national progress.

If we can see that — as my professors taught me long ago — then perhaps we are finally looking at our economy with open eyes.

Ramon Ike V. Seneres, www.facebook.com/ike.seneres

iseneres@yahoo.com, senseneres.blogspot.com 03-01-2026