Immediate reforms in production chain of local agro-food industry urged

MANILA, Philippines - An international expert on Southeast Asian trade is urging immediate reforms in the production chain of the country’s agro-food industry to enable the Philippines to become competitive when the economies of ASEAN member states are merged into a single market economy in 2015.

Speaking on the challenges posed by the economic integration on the Philippine food industry during a trade show recently hosted by UBM Exhibitions Philippines in Makati, Pushpanathan Sundram – an adviser to the Singapore International Trade and Development – said the Philippine food industry has to carefully balance the opportunities and risks associated with embracing the ASEAN Economic Community (AEC). 

While Philippines food manufacturers and producers could reap the benefits of greater trade facilitation within the region, it also has to cope with demand for greater quality, variety and convenience from the food system.

“Rapid income growth and urbanization are having a profound impact on the food system in the developing member-economies of ASEAN, creating opportunities to enhance farm sector profitability and encouraging development of rural areas,” Sundram told local food industry leaders attending the trade show.

The current adviser to Singapore’s external trade promotion body said that at the production level, the Philippines has to lower the cost of farm inputs and raw materials through improved infrastructure, lower transportation and transaction cost.

 â€œTechnology and agricultural labor productivity through education and training need to be upgraded,” he said.

Small medium enterprises, said Sundram, should also be educated on the opportunities and risks that the economic integration would bring to their sectors to enable them to adapt and harness opportunities.

 â€œThe small agribusinesses should be better connected to the domestic and ASEAN markets through effective sharing of market information, linkages with larger companies and their supply chains, better infrastructure connectivity, and government schemes that raises productivity and quality of food pro-ducts,” he said.