Introduction The global financial crisis has many at Dole Philippines (Dolefil) wondering what the implications would be on its operations. A local subsidiary of the Dole Food Company (Dole) of the United States, it is concerned about the adverse effect of the crisis on the demand of its products. Its main markets have been hit hard by the crisis – in the United States alone, 5.7 million jobs have been lost since the crisis pushed it to 1 recession in December 2007 . Japan has a similar fate - unemployment has 2 increased 12.4% from a year ago . Moreover, the end of the crisis is not yet in sight and the possible extent has been compared to the Great Depression 3 of the 1930’s . It did not help that during that time, Dole pineapples pile up 4 in their Hawaiian factories, the stench polluting the air.

South Korea and Thailand. Singapore and New Zealand are the main destinations for the fresh pineapples. Spain) and Asia (Japan. China.000 employees find work in these facilities . New Zealand.Dolefil Dolefil is the Philippine subsidiary of the Dole Food Company which is the largest producer of fresh and packaged fruits and vegetables in the world.S. Hong Kong. Japan along with South Korea. Using pineapple planting materials brought from Hawaii. it has agricultural operations in the municipalities of Tupi and T'Boli in South Cotabato. and Maasim in Sarangani Province. Dedicated Dole sales organizations service demands of major retail and wholesale customers in the regions. and a shipping and wharf operation with a box and labels plant (see 5 Exhibit 1). Philippines. The demand is driven by trends towards healthy snacking and popularity of derivative products that are easy to prepare and consume. By 2008. 6 who then decide whether to send the order to Dolefil or Dolethai (Dole . Singapore. Surallah and General Santos in South Cotabato. The aggregate imports of fresh and packaged pineapples in the United States and Japan are shown in Exhibit 3. Philippines. The largest market for packaged pineapples for Dolefil is North America (United States and Canada) with major presence in Europe (United Kingdom. South Cotabato in 1963. These facilities include a base plantation. two cannery complexes with a can and fresh pineapple packing plant. On the other hand. This supports Dole’s biggest markets in North America and Europe aside from covering the demands of Japan. U. They make the sales calls every year. South Korea). Dolefil started its operations in Polomolok. it shipped its first cases of canned pineapple products from its wharf in General Santos to New Jersey. This is on top of the fully integrated agricultural and industrial facilities in Polomolok. Almost 6. Germany. Pineapple Demand Demand for pineapples has been growing over the years and improvements in sea transport techniques have extended the reach of fresh pineapples.A. get orders from the customers and forward them to Central Logistics. Two years later. Dolefil operates under the Dole Packaged Foods Asia division which provides the overall direction for the markets and production divisions in the Asia region (Exhibit 2).

Thanksgiving and Christmas where they are a common ingredient to the food in the festivities. Prior to the global financial crisis. consumption is driven by healthy and convenient snacking for students going to school. they shared their technologies and expertise to contract growers. Dolefil has exclusive rights to purchase their produce at the agreed contract price and quality.Thailand) for production. and provided them training and access to low-cost financing to support their production of pineapples. Central Logistics communicate with the production facility and decide the shipping schedules and volume. It provides parents a ready option to their kids’ “grab and go” eating preferences. Machinery is used to clean and till the field. For fruit bowls. When Dolefil started operations. as it takes that much time to complete a growing cycle consisting of two pineapple harvests. the forecasted demand for 2008 of Dolefil’s 7 processed pineapples was more than 21 million standard cases . design drainage systems and lay out pathways for maintenance. juice and concentrates and fruit bowls as given in Exhibit 4. Dolefil plants the Mayan Gold 3 variety of pineapples for their fresh produce and the F-200 for their processed products. juice and concentrates follow predictable seasonal activities and observances. In 2007. with the remaining 30% coming from Dolethai. In return. . fruit bowls. Pineapple Supply Approximately 70 percent of all the pineapple used in Dole’s worldwide processed products comes from Dolefil. Specific variety of pineapple crowns is sown at certain arrangement and density to maximize yield. The demand for canned pineapples. To facilitate this. consumption rises during Easter. Dolefil harvested more than 600.300 hectares are planted by contract growers in three provinces of southern Philippines. Currently 9. For canned pineapples. These total cases are comprised of canned pineapples. it leased a sprawling plantation to cultivate pineapples. Later it contracted growers to produce additional pineapples in their behalf.low on winter and high during summer.000 tonnes of pineapples from these lands.700 hectares are maintained by Dole while 7. Intensive preparation on the land and soil is needed prior to planting. Production planning is set three years in advance. Demand for juice and concentrates on the other hand goes with the weather temperature and the need to quench one’s thirst . Large scale cultivation of pineapples is a lengthy and complex process (see Exhibit 5).

Dolefil’s Agriculture Division monitors the growth of the plants. After the ratoon harvest. In the Philippines. One can force the sucker eight months after the first harvest to produce a second or ratoon fruit six months later. Pineapple flowering may be delayed or uneven. the fruit is fully mature and ready for harvest. Maintenance of the growing pineapples is done with fertilizers and pesticides at regular intervals. has an average of 24 tonnes/ha to the Philippines 37.plant stem.based chemicals . Successful pineapple cultivation is dependent on a healthy root system and it is important to prepare the soil for adequate supply of nutrients. Forcing at later months where the crowns are bigger results in bigger fruits at harvest but may eventually lessen the yield. and “forcing” facilitates uniform maturity and enables one to control the time and volume of harvest.A year after planting. most of pineapple productions are maintained by multinational corporations such as Dole. Typically. Aside from preparing the land and planting the pineapples. which has more than 100. however. The Agriculture Division prides itself with among the highest yield at harvest (tonnes/hectares) resulting in the Philippines having better aggregate yields compared to other nations. The planting to forcing interval. the second one coming from one of its shoots (called suckers) growing from the mother . Six months after forcing. Del Monte and Chiquita.000 hectares for pineapple production cultivated mostly by small independent farmers. Thailand. . the pineapple plants are “knocked-down” to recycle nutrients and increase the organic-matter content of the soil. The time between the knock-down and new planting (called "intercycle") is about four months to allow the plant materials to break down. the pineapple crowns can be forced to “flower” 8 by spraying with ethylene . is not fixed and can be delayed depending upon commercial requirements and the grower’s circumstances. These fertilizers and pesticides are mostly imported from other countries. For instance. cultivated pineapples yield two harvests.5 tonnes/ha (Exhibit 6).

Aside from the pineapple fruits. The resulting solid pineapple cylinders are then conveyed to tables for trimming and packing as slices. Within the cannery. Recovery yield is highest when fruit size fit standard size cans. Materials for the cans (e. Juice production is derived from both the solid and liquid pineapple components. Depending on the packing style . Juices from liquid components pertain to all surplus juice obtained during any processing activity. Although materials for labels are imported. The 9 pineapples are then mechanically sorted by size and a Ginaca machine automatically peels the skin. these are printed locally at a printing press in Dolefil. Other packing styles using plastic cups. segments or crush. This allows the Ginaca machine to effectively cut the pineapples corresponding to specific can sizes. there is a can manufacturing plant and at the wharf. tidbits or crushed inside cans (see Exhibit 7).Pineapple Packing and Processing Twenty percent (20%) of the harvested pineapples are carefully packed and shipped fresh inside boxes where it has about a week of shelf life. a box forming and labels plant. . Damage during loading. Packing materials are manufactured by Dolefil although most of the raw materials are imported. such as the pineapple core. The amount of solid and liquid pineapple components recovered in the cannery depends on several factors. unloading and conveying in the cannery system reduces solid recovery. Dolefil’s Cannery Division monitors all these and works on maximizing recoveries depending on the packing plan. Other packing styles using plastic cups. the layer of flesh scraped off the shell and the cylinder ends removed by the Ginaca machines. chunks. crucial ingredients such as sugar and packing materials are needed in the canning operation.g. pouches and packages for individually quick frozen fruits have also been developed 10 (see Exhibit 8). Sugar used by Doleful is imported from Australia and Thailand and refined in South Korea. tin plates) come from Japan while papers used for manufacturing boxes are imported mainly from the United States. These pineapples are unloaded from trucks to conveyor bands where the crowns are taken off for future planting. the product shelf life can last up to two years. Juice is likewise being produced inside the cannery. The other 80% are delivered to the cannery for processing and packing just hours after harvest. plastic jars. cuts the ends and removes the core of the pineapple. transportation. plastic jars and pouches have also been developed. Solid components consist of the flesh that are not packable into slices.

Spain. Usually Dole enters into product and service contracts typically for a one. The ships were designed exclusively to carry temperature controlled. Dole set-up a subsidiary to offer shipping services to third parties.Shipment and Distribution Once the products are labeled and packaged in boxes. The distribution centers are operated either wholly by Dole or through joint ventures with local distributors. Most of the packaged pineapple products are shipped to North America where Dole has port facilities in California. Rotterdam. humidity/moisture and other ventilation conditions. refrigerated containers filled with tropical fruits like pineapples and bananas. Dolefil products are sold and distributed through a network of Dole regional operations in North America. Otherwise. spoilage may occur as a result of inadequate (rotting) or excessive (drying-out. Europe and Asia. These include travel time to get into their mainland distribution centers or warehouses. Florida. it takes about a week to reach their main destination in Japan.or two- . For fresh pineapples. Dole invested in a dedicated refrigerated containerized fleet which is the largest in the world. It takes about four weeks for the ships to arrive in the west coast of the United States and an additional two weeks to the east coast. A warehouse sits near to store them prior to transportation. Delaware. These operations involve the distribution and marketing of fresh and packaged pineapples. and Hamburg. Dole sales organizations service major retail customers such as large chain stores Walmart of the United States and Tesco in the United Kingdom or institutional customers such as Pizza Hut. These require particular temperature. To maximize capacity utilization. More than 14 11 million boxes of fresh pineapples and 21 million standard cases of packaged pineapple products are shipped from this port facility. Oslo. The voyages take between five to seven weeks. Mississippi and Texas. 12 transporting fruits and other types of raw materials and dry cargo . the products get shipped to Antwerp. Dolefil follows first-in first-out (FIFO) in product shipment based on packing dates. weight loss) ventilation condition. To go about this. Utmost care is given to the pineapples during the voyage to control the conditions such that it arrives at the desired stage of ripeness. In Europe. they are ready for shipping at Dolefil’s wharf in General Santos or in Panabo.

13 . Europe and Asia. Discussion A meeting among its managers and directors was called to assess the situation and identify actions Dolefil need to do in response to the situation. the fresh or processed pineapples are eventually placed on the supermarket shelves or become an ingredient of their food services. From these customers.year term with its large retail customers . Dole sales organizations also cater to wholesale customers including large distributors in North America.

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