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Private sector response to food inflation (Part 2)

Published Apr 28, 2026 12:01 am  |  Updated Apr 27, 2026 06:08 am
Even before the ongoing global food crisis unleashed by the US-Iran war, the BBM Administration had already placed the highest priority on food security. In fact, for the first 14 months of his presidency, President Marcos Jr. personally occupied the position of Secretary of Agriculture. Following this tenure, he was fortunate to appoint Francis Tiu Laurel—a very able, effective, and street-smart Secretary of Agriculture. Secretary Laurel has done much to empower small farmers, providing the resources necessary to increase productivity through farm-to-market roads, better access to water, subsidized fertilizer inputs, and more rational tariff and pricing policies. Consequently, 2025 saw the agricultural sector grow at a record 2.8 percent, a significant leap after languishing at zero to one percent annual growth for more than a decade.
Manifesting the effective leadership that now prevails at the Department of Agriculture (DA), Secretary Tiu Laurel moved quickly to address the rising costs of fertilizer and other vital inputs for small farmers and fisherfolk. The DA alleviated the impact of rising costs by distributing subsidies and financial assistance nationwide, drawing from its 2025 budget and the ₱10 billion Presidential Assistance for Farmers and Fisherfolk Program. The DA announced that the bulk of this distribution would occur after Holy Week—just in time for the rice planting season from May to July. Relying heavily on the southwest monsoon (Habagat) rains, this is the country’s largest and most important crop, producing the bulk of our annual rice output.
The Government must intensify its programs to help millions of farmers—especially those in rice, corn, vegetables, fruits, and livestock—as well as small fisherfolk. This support will enable them to convert the food crisis into an opportunity to provide the nearly 120 million Filipinos with the supplies needed to survive expected shortages. Globally, food prices are skyrocketing due to burgeoning energy costs. As noted in the Financial Times (March 27, 2025):
“From the moment it is planted to the moment it reaches a plate, every grain of rice and every cob of corn requires energy. Diesel powers tractors and harvesters, trucks and ships; electricity runs cold chains, milling, and processing plants... Although the food has not disappeared, it is becoming more costly to move it, to process it, and ultimately to consume it.”
This serves as a reminder that the agribusiness sector extends far beyond farming. It encompasses the entire value chain: post-harvest, cold storage, logistics, processing, and retailing. In the Philippines, while farming itself accounts for less than 10 percent of gross domestic product (GDP), the total agribusiness value chain encompasses a full 30 percent.
In tandem with small and medium-scale farmers, there is a role for hobbyist gardeners to contribute to the supply of high-value crops. These crops are in greater demand as more households join the upper-middle-income bracket. For example, with the help of Harbest Agribusiness Corporation—a Philippine seed company partnered with Taiwan’s Known-You Seed—my gardening hobby led me to plant papaya trees in the concrete jungle of Makati. I am now providing my household with one of the sweetest varieties on the market: the “Solo Papaya.” Each fruit is perfectly sized for individual consumption and remarkably sweet.
Established in 1997 as a distributor of high-quality hybrid seeds, Harbest has become an effective channel for technology transfer from Taiwan. The corporation distributes planting containers, seeds, plant nutrition products, crop protection machinery, greenhouse and irrigation facilities, and even tissue culture materials. Furthermore, Harbest organizes learning seminars nationwide for farmers and hobbyists on the scientific cultivation of high-value crops. Their models of urban gardening, including hydroponics, can help mitigate food inflation during this era of high fuel prices and skyrocketing transport costs.
Beyond Metro Manila, urbanizing areas like Cebu, Baguio, and Cagayan de Oro are still surrounded by ample land owned by small landowners. Much of this land is currently kept idle for speculation, but it should be mobilized for high-value crops during the food crisis we expect to face for the next two to three years.
Local government authorities should create plans to encourage these landowners to engage in urban gardening or rent vacant lots to those with the interest and capital to plant for self-consumption or resale. Government financial institutions like Land Bank, in partnership with private banks known for financing agro-enterprises like BPI, should consider lending to these small-scale “agri-preneurs.”
To be continued.

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Department of Agriculture Agriculture Secretary Francisco Tiu Laurel Philippine economy
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