FROM THE MARGINS
Even as El Niño continues to affect many parts of the country, last week, the Department of Agriculture (DA) projected a 1.1 percent increase in rice production this first quarter. This is reassuring, especially in the face of rising inflation that, according to the Philippine Statistics Authority (PSA), was driven by increased food prices and transportation costs. But with Agriculture Secretary Franciso Tiu Laurel, Jr.’s 8-Point Plan to modernize Philippine agriculture, this good news is hardly a surprise.
I was very impressed with Secretary Laurel, who sat down with the Makati Business Club (MBC) last month to explore possible public-private partnerships in agriculture. I was privileged to join the MBC contingent that met with the Secretary and discussed ways to modernize the sector and help our farmers. We were led by MBC Chairman Edgar Chua and joined by board members Manolito Tayag and Jose Victor Paterno. Also present were MBC members Danielle Del Rosario of PHINMA and Cris Ilagan of PEPSICO, as well as MBC Executive Director Bobby Batungbacal and his staff, Catch Ofilada, Bettina Bautista and Coco Alcuaz.
8-point plan
We had a very lively and fruitful discussion with the DA Secretary, who briefed us on his plans to build a modern agricultural supply chain that will increase production, lower food costs, and make farming/fisheries bankable investments. I liked Secretary Laurel. He was very forthright and earnest in wanting to improve the lot of Filipino farmers. His approach is very practical, employing best business practices to bring in more efficiency and effectiveness in the delivery of DA’s programs and projects to its target clients.
Secretary Laurel’s 8-Point plan includes: (a) expanding/improving available agri-fishery areas; (b) mechanizing/modernizing agri-fishery production systems; (c) developing post-harvest systems and infrastructures; (d) developing efficient logistics systems for input and production output; (e) improving and expanding market access; (f) digitalization; (g) balancing DA’s development and regulatory functions; and (h) forging strong partnerships with farmers, fisherfolks and the private sector.
His focus on improving logistics and cold storage is wise, and will positively impact not just agricultural productivity, but food security. His pursuit of strong partnerships with farmers/fisherfolks and the private sector is also very important.
Improving productivity and income
Secretary Laurel recognizes the need to address inefficiencies in the delivery of agricultural support services, post-harvest systems and infrastructure. It is lamentable that a significant percentage of the vegetables we produce is wasted, not only because of poor logistics in bringing the produce from the farm to the consumers, but due to the lack of cold storage facilities. This is a priority for Secretary Laurel. He has asked for budgetary support from Congress and appointed an assistant secretary for logistics to help optimize costs for everyone involved in the value chain, from producers to consumers.
I appreciate the Secretary’s efforts to not just improve farm productivity, but also to increase farmers’ income. There should be more programs to encourage our farmers to plant different types of crops, raise more animals, and adopt other measures to increase farm income. I also agree with his observation that a great portion of our rice production areas lack irrigation, unlike in Vietnam, where almost all lands devoted to rice are irrigated. Hopefully, the provision of irrigation to unirrigated areas will be done soonest. I also hope that Secretary Laurel’s plans to improve rice production and ensure higher farmgate prices by providing timely market information to farmers will come to fruition.
Public-Private Partnership
It is very reassuring that the DA’s priorities jibe with the private sector’s desire to partner with the government in improving our agricultural value chain. Secretary Laurel decried the high cost of transporting both agricultural inputs and products due to the limited number of ports in our archipelagic terrain. The DA has partnered with the Philippine Ports Authority to improve port operations and lower the logistics cost for farmers, but Secretary Laurel wants the private sector to partner with the government in building more ports to facilitate the delivery of farm inputs and agricultural products. He also seeks private sector support for DA’s plans to develop cold storage facilities, especially those using solar energy and other affordable technologies.
Our chairman, Ed Chua, expressed support for Secretary Laurel’s initiatives, since MBC believes that increasing food security is one of the most effective ways of uplifting Filipino lives. Plans are now in the offing to explore ways of improving linkages among players in the food supply chain. I believe MBC and other private sector representatives are open to helping DA establish direct links between farmers and businesses, strengthen agricultural cooperatives by engaging professional managers, and improving technologies/logistics for food distribution nationwide.
I hope for strengthened Public-Private Partnership in agriculture, since prioritizing the sector will simultaneously address food security and poverty in the country.
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“If you want to eliminate hunger, everybody has to be involved.” – Bono
(Dr. Jaime Aristotle B. Alip is a poverty eradication advocate. He is the founder of the Center for Agriculture and Rural Development Mutually-Reinforcing Institutions (CARD MRI).)