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Manila Bulletin devider Business devider Trade & Industry devider Mega national food hub to rise in Clark

Mega national food hub to rise in Clark

Published Feb 19, 2024 07:43 am

A 64-hectare National Food Hub in Clark, Pampanga, worth about P8.5 billion, will soon be developed to strengthen the farm-to-fork distribution network in the country through the collaborative efforts of the Department of Trade and Industry (DTI), Department of Agriculture (DA), and the Clark International Airport Corporation (CIAC).  

DTI Secretary Alfredo E. Pascual and CIAC President and Chief Executive Officer (CEO) Arrey Perez signed a memorandum of understanding (MOU) on Feb. 19 in Makati, sealing their commitments to share expertise, provide resources, and enhance their interlinked capacities.

The mega food hub project will be a crucial component of the national government's three-year Food Logistics Action Agenda, which initially involves the creation of food hubs as centralized collection, sorting, and distribution sites for fresh produce sourced directly from farms.

To be located within the Clark Civil Aviation Complex (CCAC), the 64-hectare trading hub is aimed to become the country's "premium wholesale market and distribution hub for quality food produce."  

 

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Department of Trade and Industry Secretary Fred Pascual and Clark International Airport Corporation (CIAC) President Array Perez signed a Memorandum of Understanding (MOU) on 19 February in Makati to formalize collaborative support for the National Food Hub development in the CIAC compound in Pampanga.

While the DA will be developing the policy framework, as well as the public investment and support services necessary for domestic and export-oriented business including the establishment of cold chain facilities and food terminals, the DTI will assist in generating investments for construction and management of the hub.

Based on the MOU, the DTI will also be heavily involved in promoting the food hub to expand food exports, and linking producers with institutional buyers.

Pascual stressed the food hub project as a key program to "make food available, accessible, and more affordable to the consuming public."
 
“This project harnesses the mandate and resources of the three government agencies. Moreover, the Public-Private Partnership (PPP) center has generously committed to provide the transaction advisory services to accelerate the feasibility study and bidding activities of the hub," he said. 

He also added that "with the technical support from the United States Agency for International Development (USAID) through its RESPOND Project, we can achieve the President’s goal of ensuring food security by empowering farmers and the private sectors, as well as strengthening supply chain and logistics systems and infrastructure development."

Perez, meanwhile, said they are working closely with the PPP Center to complete the project's preparation stages, as well as identifying investors, food conglomerates, and other potential private sector stakeholders for the hub. 

The National Food Hub is one of the seven flagship projects of the CIAC to invigorate economic activities in the Clark complex.

“Clark is ideal for the mega food hub because of its expansive space for infrastructure and facilities, and seamless road network connecting north, central and south Luzon to the world-class Clark airport capable of handling cargo and logistics. A support pillar to President Marcos’ call to prioritize food security, the mega food hub will also address many other governance issues, such as employment and dispersal of growth to provinces and regions," he added.

In conjunction with the mega food hub, DTI and CIAC also plan to construct a gateway road connecting the Subic-Clark-Tarlac Expressway (SCTEX) to the National Food Hub. With eight lanes of asphalt paved road, stretching for 1.40 kilometers, it aims to facilitate the ease of access of distributors and other transport activities to and from the hub.

The whole project is estimated to cost around P1.6 billion or $29 million, with detailed engineering design cost at P13.32 million and construction cost at P1.58 billion.

In a statement, DA Secretary Francisco Laurel lauded the PPP arrangement for the food hub "to leverage on private sectors’ financial surpluses, technical competence, and innovative use of modern technology to ensure that we achieve the economies of scale in agricultural production that we need."

"The National Food Hub embodies the topmost strategy of our national government towards an inter-agency collaboration towards the achievement of multiple and cross/cutting goals such as the enhancing of food security, reducing of food inflation, increasing the purchasing power of the income of the households, and ultimately, increasing the income of our farmers," he remarked.

 

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