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Japan's aid arm is urging more job-generating and value-adding investments in the Philippines' agriculture sector so the domestic vegetable industry can meet the country's food security needs while also tapping into a wealth of business opportunities.

Takema Sakamoto, chief representative of Japan International Cooperation Agency (JICA) in the Philippines, pointed out last Friday, Jan. 24, that while "agriculture is the backbone of the country," the sector's employment and contribution to economic output are lagging behind.

"The share of employees in the agriculture sector accounts for about 24 percent, meaning that one in four employees in the entire Philippines is engaged in agriculture. Agriculture, thus, plays an important role in terms of employment, too. On the other hand, looking at the share to GDP [gross domestic product], the agriculture sector's GDP contribution remains only at about nine percent, which is much lower than the percentage of employment," Sakamoto noted in his speech at the Second Stakeholders Forum for Food Value Chain Platform, under the Department of Agriculture (DA) and JICA's six-year joint technical cooperation project for Market-Driven Enhancement of Vegetable Value Chain in the Philippines (MV2C)—or "Ka-Gulay”—held in Manila.

"While the poverty rate in the entire Philippines is about 18 percent, the poverty rate in the agriculture sector is as high as about 30 percent. These data clearly highlight the huge gap for improvement and indicate a strong need for further modernization and development in the agriculture sector, and for further income generation for farmers," he added.

Sakamoto also lamented the declining share of agriculture in the country's total employment, from as high as 33 percent back in 2010, which he attributed to concerns that agribusiness ventures are "not very profitable," thus deterring younger Filipinos from taking on jobs or investing in this sector.

The JICA Philippines official stressed that encouraging young Filipinos to participate in agriculture would take advantage of the so-called demographic sweet spot that the country enjoys—“a prominent strength of the Philippines, as [it] shows the future potential."

"Sufficient job creation is a critical challenge for the Philippines, as a future where jobs are not secured enough means social instability and economic stagnation... Overseas Filipino workers (OFWs) and business process outsourcing (BPO) are often mentioned as growth sectors in the Philippines; however, their employment absorption capacity may not necessarily be large enough, especially considering the future impact of AI [artificial intelligence] advancement," he said.

To boost domestic agriculture, Sakamoto urged increasing farmers' incomes by producing highly profitable crops, responding to the rising health consciousness among Filipinos, minimizing post-harvest losses, as well as improving production, transportation efficiency, and the agro-industry. "We are confident that such efforts to attract more farmers are essential to move towards a more sustainable and prosperous Philippines."

Sakamoto is hopeful that the MV2C project, which began in 2022, will not only develop innovative and modern inclusive food value chain models, but also replicate best practices among stakeholders across the country.

"In discussions of food security, farmers' income increase, and job creation in the Philippines, there might be a tendency to focus too much on the agricultural production side. However, there is an acute need to streamline, improve, and modernize every stage or node of the value chain—from agricultural production [and] logistics, to marketing to consumers—to ensure better food supply at an affordable price to consumers," according to Sakamoto.