CEBU, Philippines - Local businessmen are urged to see investment opportunities in the agriculture industry to help boost food security and increase farmers' income.
Marina Hermoso, regional technical director of the Department of Agriculture in Central Visayas, cited factors why the sector has so much potential in terms of investment opportunities.
Speaking recently before members of the Cebu Chamber of Commerce and Industry, Hermoso said the steady growth in population and rise in purchasing power of consumers will further drive demand for agriculture products. The opening of new hotels, restaurants and food chains is also seen to increase demand, according to Hermoso.
The Philippine Statistics Authority said among the top agricultural commodities in Region 7 include sugarcane, mango, chicken eggs, palay, chicken, hog, corn, tobacco and root crops.
The seaweed industry particularly in Bohol is also growing. In fact, Bohol is the country's third largest seaweed producing province after Palawan and Tawi-Tawi due to its many coastal barangays where fishing and sea farming exist.
In 2013 the region was also ranked third in the production of sugarcane and mango, PSA said.
Hermoso explained there are various ways to start an agriculture business whether through sole ownership, partnership, joint venture, family-owned or company or cooperative-managed.
The DA official added that backyard and contract growing in poultry and swine ventures could also be an option.
She said more entrepreneurs are needed to get into agriculture to stimulate the sector's growth.
While businessmen are told to invest more, the government should also do its part by spending more for agricultural infrastructures to encourage investments.
Last year the region's agriculture sector contracted by 2.6% from 0.3% growth it had in 2013, official data showed. “Agriculture and forestry contracted from 0.9% in 2013 to 0.2% in 2014 due to the decline in production of palay, corn, coconut and chicken eggs. Likewise, fishing further declined from 2.9% to 14.8%,” the PSA had said in a report.
But latest report from the National Economic and Development Authority-7 indicated the agriculture, hunting, forestry and fishing (AHFF) sector posted a 9.9% increase in the volume of production in the first half of 2015.
However, Melissa Guantero, supervising economic development specialist at NEDA-7, warned the sector may not sustain its growth given the threat posed by the prevailing El Niño on farm production.
"A bigger and more serious challenge confronting the region is on improving the productivity of its agriculture and fisheries sectors. AFF is considered the region's weakest sector. Value of production in the sector is generally declining since 2010," she said earlier. — Carlo S. Lorenciana (FREEMAN)