DA: Philippines needs P1.3 trillion to boost farm output

MANILA, Philippines — The country will need P1.3 trillion worth of investments in the next few years to boost rice production, reduce wastage of agricultural products and ensure the country’s food security, according to Agriculture Secretary Francisco Tiu Laurel Jr.

Laurel said that the bulk of the needed investment, or P1.2 trillion, will cover the irrigation of 1.2 million farmlands primarily planted with rice.

On top of this, Laurel highlighted the need to build integrated rice mill and warehouse complexes to reduce an estimated 15 percent in losses in rice due to the lack of post-harvest facilities.

He said this would cost around P90 billion over several years.

However, he highlighted that this would save the country around P10.7 billion worth of rice or an additional 23 days of rice inventory, which is equivalent to around 10 percent of rice imports based on last year’s figures.

Laurel lamented that the government has not funded any major post-harvest facilities in the last 40 years.

“We really need to fund these projects. But we must build bigger. We have three designs – small, medium and large, not mini,” he stressed.

Laurel said that for this year alone, the Department of Agriculture (DA) is allocating P1 billion to build four cold storage facilities, primarily at the Food Terminal complex in Taguig City, to partly address the recurrent oversupply and wastage of vegetables in parts of Luzon alone.

The DA cited estimates from traders who noted that transporting vegetables from Benguet to Metro Manila results in 30 percent losses that are eventually passed on to consumers.

“If we try to solve the problem as soon as possible, assuming a target of 2025, I need an additional P5 billion to address the vegetable cold-storage issue of the whole nation,” Laurel said.

The 5,000-pallet position cold storage facility in FTI will take at least 12 months to complete, according to the DA.

Laurel stressed that local government units should be the main agencies that should address the oversupply of vegetables and high-value crops since many of the agricultural functions have been devolved to them.

However, he emphasized that the DA would assist in resolving these perennial problems.

Earlier this week, Laurel unveiled the DA’s three-year plan to increase agricultural productivity, lower food cost, ensure food security, and make farming and fisheries a more bankable investment alternative.

“Our goal is to modernize Philippine agriculture to spread benefits across the entire value chain,” Laurel said earlier.

“Farmers and fisherfolk should get fair value for their produce, prices of goods should be affordable, while traders, processors and retailers should be able to generate  reasonable profits. It’s important  to address the decades-old inequity where  farmers and fishers do not really benefit from the fruits of their labor. We also envision making farming and fisheries viable for investors and a career option for young Filipinos,” he added.

To achieve this vision, Laurel laid out a three-year plan that involves expanding and improving available agri-fishery areas to increase production, as well as mechanize and modernize agriculture and fishery production systems.

The plan also seeks to develop post-harvest systems and infrastructure, as well as efficient logistics systems for input and production output.

Other actions identified in the plan include improving and expanding market access digitalization; proper balancing of both the development and regulatory role of the DA; and ensuring a strong partnership with farmers, fisherfolk and the private sector.