Agrilink 2013: Common service facilities are key to the value chain

MANILA, Philippines - Agriculture is a prime mover of the Philippine economy.

According to the Bureau of Agricultural Statistics (BAS), agriculture and fisheries accounted for about 12 percent of the country’s gross domestic product (GDP) in 2011 and employed 33 percent or 12.27 million of the country’s total workforce.

Palay, corn and sugarcane production increased by 5.78 percent, 9.32 percent and 58.27 percent, respectively, in 2011,  while poultry increased by four percent.

Additionally, output for cattle, hog and dairy increased by 1.79 percent, 2.22 percent and 3.72 percent, respectively.

Export earnings from tuna, fresh bananas and pineapple products increased by an average of 33.86 percent.

BAS reported a trade surplus with Japan and the European Union in 2011, while  the country posted  trade deficits with Australia, USA, ASEAN countries and the rest of the world markets.

Experts believe that the agriculture industry can further tap export and growth opportunities by diversifying production systems with more value-added and processed products that can also generate additional livelihood activities in the rural areas.

This can be attained by enhancing mechanization technologies in production infrastructures and utilizing common service facilities such as communal irrigators, tractor pools, postharvest facilities for rice, corn and vegetables, feed mills, abattoirs, dressing plants, cutting floors and cold storage among others.

This has been successful in other Asian countries, where machineries are utilized at seven horsepower per hectare (hp/ha), 4.11 hp/ha, 4.10 and 1.56 hp/ha – in Japan, South Korea, China and Vietnam, respectively.

The Philippines is currently at a mere 1 hp/ha, just slightly ahead of Myanmar but behind the rest of its ASEAN neighbors, according to the Philippine Center for Mechanization and Postharvest Development (PhilMech).

According to Foundation for Resource Linkage and Development (FRLD) president Antonio V. Roces, “The entire chain of agriculture-related business encompasses a wide variety of production inputs and systems, post-harvest, value-adding, food processing and retailing. Along this chain are the common service facilities that provide economies of scale for food production reduce postharvest losses and stabilize the marketing process that enables the entire farm-to-fork chain to run more efficiently.

“Postharvest facilities, for example, assure the efficient, consistent and safe delivery of crops from the farm to the dining table. Mechanized and cost efficient common service facilities also enable capital-deficient small scale producers and entrepreneurs to benefit from capital-intensive and high-tech common service facilities.”

The importance of common service facilities in the value chain is being highlighted as one of the Department of Agriculture’s main thrusts for 2013, with P2.6 billion already spent last year under the National Rice Program to increase productivity.

An additional P2.4 billion will be invested this year for the DA’s farm mechanization programs, which includes hand tractors, shallow tube wells, transplanters, threshers, reapers and flatbed driers.

FRLD is organizing the country’s largest and most influential trade fair on agriculture, aquaculture and food – AgriLink, AquaLink and FoodLink, now on its 20th anniversary – with the theme, Common Service Facilities: Key to the Value Chain.

The trade fair scheduled from Oct. 10 to 12 will pay tribute to agricultural service facilities that provide economies of scale direly needed by predominantly small farms and agribusiness in need of mechanization and value-adding.

Supported by the DA, its regional units and 20 other major Philippine agriculture and food trade associations, AgriLink 2013 will also feature local and international products and technologies aside from other activities like seminars, live animal and plant displays to promote and enhance the potential of different markets that can improve the value chain and productivity of agricultural products to achieve food sufficiency.

The three-day event aims to provide easy access to the largest array of the latest and best equipment, technologies, linkages, products, global packaging, strategic agribusiness marketing and other key related services.

For inquiries and/or booth reservations, contact FRLD through 2164016, 09175888799 or email [email protected]. Visitors can also visit www.agrilink.org or its official Facebook page at facebook.com/agrilinkPH.