MANILA, Philippines - India-based International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) is urging the government to implement market-oriented and wholistic reforms in the agriculture sector to make the Philippines competitive in the full integration of Southeast Asian economies in 2015.
In a keynote presentation delivered at the 2nd National Congress of the Philippine Association of Agriculturist, Inc. held last week in Tagaytay, ICRISAT director general Dr. William Dar said the Philippines needs to “radically reshape” its agriculture sector to maximize the benefits of deepening trade and investment ties with the Asean Economic Community (AEC).
“The prospect of Philippine integration into the AEC is 2015 presents both challenges and opportunities. For the Philippine agriculture sector, the dynamic economic interaction among Asean member countries comes with uncertain conditions that need broad policy responses and strategies,” he said.
The government, Dar said, could start by harnessing the power of smallholder farmers who continue to be a dominant force in the local agriculture sector.
The domestic agriculture sector currently employs 11.8 million persons, about 35 percent of the country’s total workforce.
Smallholder producers have always dominated the agriculture sector but they often lack economic organization in terms of production, access to markets, financing and technology, and are not integrated into major supply chains.
“We need to give smallholder farmers assistance to gain access to innovations designed for the poor, to help them connect to markets, but in a way that builds their own resilience rather than creates dependency,” said Dar.
He is also pushing for increased diversification of crops programmed for export to complement the government’s thrust for self-sufficiency in food staples to increase the income of farmers.
The Department of Agriculture has been implementing its flagship program Food Staples Sufficiency Program (FSSP) which aims to help the country attain by 2016 self-sufficiency in major food staples such as rice and corn.
Dar said that while huge amounts of efforts and resources are poured into the production of rice and other food staples, the government should put in the same energy in developing the market for high value crops in which the Philippines has a competitive advantage.
“Any strategy to make Philippine agriculture competitive should balance ensuring food security and well planned crop diversification to enhance income levels of farming households by increased exports,” he said.
Dar noted that while rice production serves as food security purpose, being the primary food staple in the country, “it traps farmers into inferior means of livelihood,” hence the need for crop diversification.
He said the Philippines could also take advantage of economic benefits under the AEC if it is able to harmonize its processing and manufacturing standards with the practice in the international market. These include standards for sanitation, limitation in chemical input in crops, and traceability of goods across the value chain.
Dar also called for massive public investments in physical infrastructure, rural credit and finance, as well as in human capital.
This would entail instituting policies and private sector partnerships that would attract more young workers to join the agriculture sector.
Likewise, he urged the government to allow more private sector participation in the agriculture sector.
“The levels of public investment in the agriculture sector should be increased to attract more private sector participation. This will ensure sustainable economic growth by increased volume of trade with the integration of the country into the AEC,” said Dar.
Several local companies want to pursue large-scale commercial farming but is prevented from doing so by several factors, among which are difficulties in obtaining sizable land areas, manpower and resources for utilities.