#MINDANAO
As we enter the last three weeks of 2024, we look ahead to the next year. What economic development imperatives must take place to deliver opportunities for our local economies? I would like to focus on three areas, initially. These are the coconut sector, mining, and manufacturing.
The first is creating more value from the coconut production. Being our biggest agribusiness sector and employing the largest number of farmers, a boosted coconut sector will bring numerous benefits to the countryside, especially in the large coconut-producing regions in Davao and northern Mindanao.
Reprising what I wrote in my April 22, 2024 column, “Having more coconut processors and manufacturers is always welcome news since the coconut sector employs the highest number of local farmers at about 3.5 million Filipinos. Coconuts grow well in the country’s mountainous terrain, putting us behind Indonesia as the world’s second-largest producer of the proverbial tree of life at 13.32 million metric tons in 2022, according to Statista. Since it grows well in the country, its production can expand and create even more downstream opportunity.”
In short, more coconut production drives demand for fresh coconuts, which can encourage more growth in the farms, thereby adding income for farmers.
The next is a deeper mining value chain. This will be vital to delivering stable employment in many remote provinces. Creating value-added industries in steel will provide use for locally made products for our housing and construction industries.
The third is increased manufacturing of consumer goods. These create local income opportunities and provide markets for local raw material suppliers. I hope more investments will come in to produce household goods in Mindanao, such as detergents and personal care products.
In my experience during the pandemic year of 2020, manufacturing along with the agribusiness sector provided steady employment and economic activity. Strengthening these sectors further will make our local economies more resilient amid possible future disruptions. In future columns, we can look at other economic sectors and how they can contribute to the project.
Canadian opportunities beckon
The recent trade mission led by Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng to Manila heralds a new, more robust chapter in bilateral trade and other relationships between Canada and the Philippines. Talks on a possible Free Trade Agreement between Canada and the Philippines have also begun, which follow the launch of the Indo-Pacific Agriculture and Agrifood office in Manila early this year to support expanded agribusiness in ASEAN.
All these efforts can boost trade between Ottawa and Manila. In the Dec. 5 gala that followed the business matching sessions, the energy between the 300 or so Canadian delegates and their sizeable Filipino counterparts was palpable. Their efforts will make these programs bear good fruit.
Moreover, with almost 1 million Filipino-Canadians I am sure that many among them figure among Canada’s leading entrepreneurs, professionals, and business leaders in many Canadian provinces by now.
This can further expand the opportunity for many local businesses, especially the producers of high-value crops such as cacao for chocolate products, coffee, coconut-based products, banana chips, and pineapples from Mindanao.
The opportunity for synergy and collaboration between Filipino and Canadian companies will surely be a fruitful endeavor. The Philippines can serve as the springboard for many Canadian companies wishing to enter the 600 million-strong ASEAN market, a group of countries with a high average growth rate. Filipino companies can also export more specialty food to Canada. We look forward to broader trade and opportunity.