DA vows aid to local food exporters

Agriculture Secretary Arthur C. Yap assured local food exporters that the Department of Agriculture would assist them in accessing both the domestic and foreign markets and in securing much need financing, hurdling regulatory requirements and lowering their transaction costs.

In a speech keynoting the 6th Philippine Food Expo 2007 at the Megatrade Hall, Yap pointed out that the problem of the agricultural sector is not production.

Instead, Yap said, the problem is more of logistics on how to bring the produce of local farmers and fisherfollk to both the domestic and international markets so that they can reap the right profits instead of remaining constantly in debt.

Philfoodex officials led by Roberto C. Amores had complained to Yap that food exporters are hampered by high energy costs, high cost of ingredients and excessive lab testing fees.

Amores pointed out that food processors are unable to access low cost imported sugar which costs only P1,100 per bag as compared to the much higher local sugar which costs P1,600 per bag.

Reacting to this, Sugar Regulatory Administrator James C. Ledesma said the problem could be addressed through the establishment of a trading mechanism that would allow local food processors to tap some 2.4 million bags of Philippine sugar allotted for the export sector.

Ledesma said there is no need for local food processors to import sugar which food exporters claim is much cheaper from Thailand.

He said, the SRA would work out a trading mechanism that would bring the producers and the buyers/food exporters together.

Yap expressed willingness to waive certain fees and lower lab testing fees as long as it would eventually result in increased exports and revenues for the government.

Yap said he is trying to secure financing to put up more lab testing centers in various parts of the country to address problems of local exporters in hurdling regulatory requirements.

He said he has authorized the release of an initial P20 million for lab testing facilities for Mindanao.