Veggie industry leaders seek protection from imports

DAVAO CITY – Leaders of the vegetable industry here are urging the government to expand the list of vegetable imports that should be subjected to rigid implementation of the pest risk analysis (PRA) under the RP-China Early Harvest Program (EHP).

The proposal was one of several resolutions approved by the Philippine Vegetable Industry Development Board (PVIDB) and the Vegetable Industry Council of Southern Mindanao Inc. (Vicsmin) in the ongoing 4th National Vegetable Congress.

"The local vegetable industry will be put at a very disadvantageous position if vegetables from China will finally compete with domestically-grown vegetables. We have to put in place some measure of protection for our vegetable farmers," said Roger G. Gualberto, president of PVIDP and Vicsmin.

He said the PVIDB will push for the proper and strict discharge of PRA on all vegetable importations and the inclusion not only of tomato, carrots, and potato, but also of broccoli, cauliflower, lettuce, celery, green and red pepper, mushroom and strawberry in the list of special products covered under Executive Order (EO) 485.

EO 485 sets the elimination of tariffs on 214 tariff lines to zero under the RP-China EHP which took effect January this year.

The Philippines was able to insist on the exclusion of certain vegetables under EHP, but acceded to the request of China to fasttrack the completion of the PRA for the importation of vegetables, in particular, carrots, cabbages, ginger and potatoes from China.

A few vegetables not produced in the Philippines are included in the EHP such as brussels sprouts, globe artichokes, truffles, olives, capers, dried onions, dried mushrooms and truffles, dried peas, dried chickpeas, kidney beans and other beans and nuts such as almonds, brazil nuts and walnuts.

"Local vegetable producers still have to reach that stage where it can withstand competition from China. We have to lay the groundwork that would make producers stronger and we clearly need government support to get us started," said Gualberto.

Incoming Vicsmin president Dante Sarraga Jr. added that as it is, vegetable producers constantly have to contend with wild price fluctuations, which among others is caused by the entry of cheap smuggled vegetables from China that find their way into wet markets.

"At times, these imported carrots are selling for just P5 to P10 per kilo compared to P50 to P60 per kilo for locally-grown carrots. If the fluctuations go on, eventually we would lose out to imported Chinese carrots and other vegetables," said Sarraga.

Vegetable production in this region is emerging as one of major revenue earners. In particular, members of the Northern Mindanao Vegetable Producers Association, have been increasing production volume on account of its expanding client base that now includes major fastfood chains, restaurants, supermarkets and hotels in Manila, Cebu, Cagayan de Oro and Davao.

Last year, the growth of out-shipment generated by vegetable producers in the region topped 53 percent which translates into a total volume of 1,978 metric tons compared to 1,290 metric tons in the previous year. In 2005, the combined sales of small and corporate farms to institutional markets totaled P129 million, a record 96 percent growth compared to only P66 million in 2004.

Favorable weather has also been contributing to increasing production of high value commercial crops such as lettuce, broccoli, potato, sweet corn, salad tomato, bell pepper, carrots and various tropical vegetables throughout the year.

The increase was also attributed to the wider adoption of cluster farming, a marketing scheme wherein small farmers consolidate their produce to provide the volume required by institutional customers. The cluster scheme was formulated by the DA with the assistance of the United States Agency for International Development’s Growth With Equity in Mindanao program.

"There is a huge potential for the industry to really move forward, but we have to strengthen the industry first so that it could hold its own against foreign competition, and then eventually, expand markets overseas which some of the large corporate farms are already doing," said Gualberto.