Scribd
Upload
77 views1 page

Jollibee Foods-WPS Office

Jollibee Foods Corporation relies on a steady supply of raw materials for its restaurants. However, the agricultural sector in the Philippines is vulnerable to extreme weather that can reduce crop yields and increase prices. To mitigate this risk, in 2009 JFC began sourcing directly from smallholder farmers by organizing them into cooperatives. This stabilized prices and assured quality and supply. By 2015, over 900 farming families saw their incomes increase by 200-500% through selling one-fourth of JFC's vegetable supply directly to the company.

Uploaded by

Kew Gaming
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
77 views1 page

Jollibee Foods-WPS Office

Jollibee Foods Corporation relies on a steady supply of raw materials for its restaurants. However, the agricultural sector in the Philippines is vulnerable to extreme weather that can reduce crop yields and increase prices. To mitigate this risk, in 2009 JFC began sourcing directly from smallholder farmers by organizing them into cooperatives. This stabilized prices and assured quality and supply. By 2015, over 900 farming families saw their incomes increase by 200-500% through selling one-fourth of JFC's vegetable supply directly to the company.

Uploaded by

Kew Gaming
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Jollibee Foods Corporation

Ensure stable supply and price of raw materials

Jollibee Foods Corporation (JFC) runs the largest chain of fast food restaurants in the Philippines and is
reliant on a steady supply of raw materials, such as vegetables, cereals and animal produce, at
significant quantities and stable prices. However, the agricultural sector in the Philippines is particularly
vulnerable to such extreme weather events as typhoons, and when extreme weather reduces crop
yields, the price of produce inevitably spikes – exacerbated by middlemen who hike prices exorbitantly.

To mitigate this supply chain risk, in 2009 JFC began sourcing produce directly from smallholder farmers
in addition to its traditional intermediary traders. JFC invested a significant amount into partnership
building and training to organize the farmers into functioning cooperatives. Buying directly from the
farmers has meant that when one area of the country is producing lower yields, JFC can buy from a less
affected region. Product quality is assured and prices are more stable as the negotiation relationship is
directly between JFC and the farmers.

By 2015, Jollibee had helped over 900 farming families in 27 cooperatives with an increase in income of
200-500%. One-fourth of all vegetable produce sourced by JFC is now purchased directly from the
farmer cooperatives.

Jollibee, usually the nation's most-admired company overall in the Asia 200 survey of corporate
leadership, was edged out for that title this time by property developer Ayala Land Inc., which moved up
to first place from fourth last time.

Jollibee and its founder, Tony Tan Caktiong, are icons in the Philippines. With its cheery yellow-and-red
stores and industrious bumblebee mascot, Jollibee is a fixture of everyday life in the Philippines.
Economists track sales of the company's unique, sugar-and-soy-seasoned burgers as a leading indicator
of how the broader economy is performing. When Jollibee opened a store on Basilan island -- once
home to the Abu Sayyaf terrorist group -- it was hailed by Philippine and U.S. military officials as an
important step forward in their joint mission to win over the hearts and minds of the mostly Muslim
population in the southern Philippines and further isolate the guerrilla group.

Now, Jollibee is adapting to a new phase of growth as the Philippine economy posts its best economic
performance since the early 1990s, while at the same time adjusting to soaring food prices.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy