The Department of Agriculture (DA) and San Miguel Foods, Inc. (SMFI) are teaming up on their first nationwide public-private partnership (PPP) aimed at providing Filipino farmers with direct access to major buyers and streamlining the agricultural value chain.

A Memorandum of Understanding (MOU) was signed on Friday, Jan. 17, between the DA, represented by Undersecretary Roger Navarro, and San Miguel Foods Group General Manager Emmanuel Macalalag.

In a statement on Sunday, the DA said this collaboration is “projected to uplift the livelihood of Filipino farmers”.

The agency, in particular, noted that both parties will set up buying stations for key crops such as corn, cassava, sorghum, and soybeans.

This aims to ensure that farmers have access to institutional buyers, thus creating a stable market for their produce while yielding better financial returns.

The partnership is also eyeing to incorporate more strategies to streamline agricultural supply chains nationwide to promote long-term growth and sustainability in the sector.

In a statement on SMFI’s website, San Miguel Corporation (SMC) President and Chief Executive Officer (CEO) Ramon Ang said this partnership allows his conglomerate to invest directly in Filipino farmers and the future of Philippine agriculture.

“By offering fair prices and consistent support, we help farmers improve their livelihoods and make agriculture a more sustainable and rewarding industry,” said Ang.

Under the agreement, SMFI said it would share laboratory procedures for crop acceptance and conduct capacity-building seminars for DA-recognized farmer cooperatives and associations (FCAs).

Meanwhile, the DA will introduce advanced technologies to improve crop monitoring and harvest volume projections. It will likewise provide technical assistance to SMFI’s farmer partners, particularly those in DA-recognized FCAs.

The agency added that the agreement will also help farmers receive timely payments via bank transfers, noting that this addresses a “key pain point” of the sector.

Enhancing postharvest

In addition to providing greater access to buyers, the DA is also keen on improving post-harvest facilities.

“This partnership offers farmers direct access to buyers, but we must also invest in postharvest facilities to ensure high-quality crops that meet market demands,” Navarro said.

With this, the official said the agency is committed to enhancing such facilities as part of its broader agriculture strategy.

This initiative is expected to complement the marketing channels created under the partnership with SMFI.

“This public-private effort underscores the DA’s commitment to addressing the long-standing challenges of Filipino farmers while fostering a more efficient and equitable agricultural sector,” added Navarro.