The Business Council for International Understanding (BCIU), an agricultural supply chain group, embarks on its seven-day agricultural technology trade mission in the Philippines with 10 US companies that are looking for partnerships with local opportunities from technological farming solutions, agricultural supplies, and agricultural education.

At the reception on Monday, Oct. 2 at the Grand Hyatt, BCIU Senior Program Officer of Agriculture Joseph Walters said that the BCIU’s agri-tech mission to the country is to improve food security by fostering capacity and identifying innovative solutions through continuous communication between the public and private sectors.

The 10 companies include John Deere’s Philippine partner Abomar Equipment Sales Corp.; Archer Daniels Midland (ADM); Aviagen; Cargill; Northwest Missouri State University; Pepsico; Sukup Manufacturing; Valmont Industries; Veea Inc.; and Viasat.

In a speech at the same event, US Ambassador MaryKay Carlson said that food and nutrition security is crucial for national security, adding that agriculture cooperation is a key economic partnership between the US and the Philippines.

Bilateral trade in agriculture products exceeded $4 billion last year, with the Philippines being a top market for US exports.

The agriculture trade mission also attended the 25th Davao Agri-Trade Expo (DATE) last Sept. 28-30 where the group had “an opportunity to connect with senior decision-makers in the regional private agriculture office in Davao.”

“We met officials from BARMM (Bangsamoro Autonomous Region in Muslim Mindanao) which is a very high priority for this mission to reach out to BARMM and identify opportunities for the US to bring technology that can improve agriculture outcomes in BARMM,” said Paul Taylor, Senior Commercial Officer at the US Embassy in the Philippines.

In particular, Abomar Equipment Sales Corp. Vice President Rafael Majam said that the group got the chance to meet some potential clients, such as the Maharlika Agro-group which aims to engage in corporate farming in terms of growing corn.

“The Philippines is a well-known country where we consume a lot of chicken, so [feed] is an important part of raising livestock,” Majam said.

Taylor said that the said mission emphasizes the concept of peaceful commerce, ensuring that any trade between two partners will lead to peaceful outcomes.

BCIU, founded in 1955, is a nonpartisan membership organization that promotes dialogue between business and political leaders, with over 200 companies in its membership.

Challenges in the agri-tech sector

Meanwhile, the group has also seen several challenges in the agricultural sector in the country, citing the limitations in the market supply, technology, and educational investment.

Aviagen Asia-Pacific Business Manager Rafael Monleon said that their company is considering expanding its distribution network in the foreign goods market following the liberalization of certain sectors to address supply issues.

“We have identified a gap sometimes in the supply in the market and therefore to fill that gap, we are looking at perhaps establishing our own operations so we could add capacity in volume into the market,” Monleon said.

Valmont Industries Key Accounts Manager John Atkinson also cited that the two-kilometer-long center pivot irrigation system invented by their company is not common in the Philippines, limiting competition and requiring agricultural technology companies to connect with large-scale farms and mechanize operations.

“If you're farming on that scale, your costs drop dramatically, and your efficiencies increase dramatically. And so that is the challenge that any agricultural technology company is gonna face – the ability to connect with farms that are operating on that scale and in mechanizing their operations to some extent,” Atkinson added.

Similarly, Northwest Missouri State University International Involvement Center Director Thomas Merlot highlighted both the challenge and opportunity in investing in the education sector to add value to food security.

“We understand that there might be costs affiliated with coming to the US, studying in the US. But, I think when we look at the future in where the Philippines is going, adding there’s definitely a strong return on investment in education. So, I think that this limitation can [outdo the] cost and also the interest,” Walters said.

Merlot said that the university is committed to promoting diversity and exposing students to global opportunities through offering scholarship programs as a contribution to food security in the country.

However, Taylor underscored that food security doesn't require the country to be fully self-sufficient. “We’re focused on partnering with the government of the Philippines to improve food security. That doesn’t mean that we expect the Philippines to be self-sufficient to improve supply.” Taylor said.

Echoing this, Walters emphasized that the definition of food security has evolved slightly in the context of this mission, adding that “It’s more about long-term solutions to food security through investment, through collaboration, through technology, through education, rather than a short-term solution.”

“There will be a point in time where the situation in the Philippines will be more balanced, producing more but then still be a very robust import market, some coming from [the] US and some coming from elsewhere,” Taylor added. (Ma. Joselie C. Garcia)