Department of Agriculture waives value chain analysis reqm’t for World Bank-funded Philippine Rural Development Program

MANILA, Philippines - The Department of Agriculture (DA) has temporarily waived the value chain analysis requirement for provinces still reeling from the onslaught of Typhoon Yolanda to expedite the release of production assistance funds under the World Bank supported Philippine Rural Development Program (PRDP).

During the kick-off meeting for the first review of the program, PRDP deputy program director Arnel de Mesa said waiving the requirement, albeit temporarily, would enable the local government units to immediately avail of the counterpart funding scheme under the PRDP to support the production of their main agricultural commodities.

“It takes about three to six months to conduct a value chain analysis for commodities, so through the waiver, we can help them expedite the process,” he said during yesterday’s kick-off meeting for the first review of the program by DA and the World Bank.

In line with the waiver, around P80 million worth of enterprise projects – mostly processing – have been pipelined for implementation in central Philippines. Around P2.1 billion worth of infrastructure projects have also been programmed for implementation.

De Mesa said local government units covered by the waiver on the conduct of a value chain analysis would still have to present a commodities investment plan to avail of counterpart funding.

Upon release of the assistance, the DA would tailor fit the business proposal to the actual needs of the community.

“For example, coconut crops were destroyed in Leyte and so they are looking at cultivation of cacao, a high value crop. What we will do is, we will extend assistance for intercropping of cacao and coconut,” said De Mesa.

“This way, they can catch up with production,” he added.

De Mesa said the local government units of Leyte, Southern Leyte and Eastern Samar have already submitted proposals for counterpart funding of farm projects under the PRDP.

“Within the first quarter of the year, we may already be able to download funds,” he said.

The PRDP provides for a value chain analysis for 25 priority agricultural commodities in the country including coffee, rubber, mango and seaweeds.

A value chain analysis is used to identify public and private investment opportunities through the identification of the status of a particular industry, the linkages among players and the interventions that can be implemented to develop the industry.

The PRDP, rolled out beginning the second semester of 2014, is a six-year program implemented by the DA with the World Bank for the creation of an inclusive, value-oriented and climate-resilient agriculture and fisheries sector.