Go Negosyo founder Joey Concepcion believes that the regional free trade deal between the 10-member Association of Southeast Asian Nations (ASEAN) and five other economies will bring about change in the country’s agricultural sector.
However, he also asked “big brother” agricultural companies to help micro farmers benefit from the Regional Comprehensive Economic Partnership (RCEP), which was recently ratified by the Philippine Senate, and give them access to the markets and shared technologies.
RCEP is a free trade agreement between ASEAN and Australia, China, Japan, New Zealand and the Republic of Korea.
But while Concepcion took note of the changes that would come to the country’s agricultural sector brought by RCEP’s entry into force, he underscored the need for the integration of micro, small, and medium enterprises (MSMEs).
He suggested for big companies to partner with MSMEs in their value chain as this is what he had been doing in his program with Go Negosyo.
“This is what we are trying to push with Kapatid Angat Lahat sa Agri Program (KALAP). KALAP aims to integrate small agripreneurs into the value chain of big companies in order for them to benefit from shared technologies and access to markets and mentoring,” Concepcion, the president and CEO of RFM Corp., one of the country’s largest food manufacturers, said on Thursday, Feb. 23.
“I have always adhered to competitiveness in price and quality in how I run RFM. When we compete in the marketplace in price branding and innovation, this benefits the consumers and this is what marketplaces are supposed to be,” he added.
Concepcion said the goal of RCEP is for consumers to “buy food at the lowest possible prices.”
However, he emphasized the need “to protect micro farmers.”
“We support RCEP, but the overall objective is for Philippine products to become competitive in price and in quality,” the entrepreneur said.
The RCEP is expected to have a significant impact on ASEAN member-states because it will further integrate their economies with those of the other RCEP members.
ASEAN businesses can also expand their reach and increase their competitiveness.
Despite the benefits looming for big businesses, micro farmers are left to worry how the entry of new markets would affect their livelihoods and they have expressed fears of their inability to compete with RCEP members.
“In my past meetings with the big-brother companies in agriculture, it was revealed that much needs to be done to raise the productivity and quality of our agricultural products,” Concepcion said.
Some of the areas that need improvement in productivity cover key agricultural crops like rice, corn, and sugar.
Integrating small farmers into the value chain has been done before.
The Go Negosyo founder cited the example of Lionheart Farms in Palawan and Universal Leaf in Ilocos.
“Things like weather forecasting and soil analysis; some of the big-brother agri companies have been using these for years and it would benefit small farmers if they can access these same technologies,” he said.