CEBU, Philippines — Local capitalists are now looking beyond traditional farming and considering investments in agriculture-related businesses such as logistics, cold storage, and food processing anticipating the revival of the agriculture sector in the Philippines.
Business leader Kelie Ko said that there is strong interest among local businessmen to invest in agriculture-related businesses, supporting farmers to increase their products’ value and back the government’s stance to maximize the agriculture potential of the Philippines.
Ko, who is also the president of the Mandaue Chamber of Commerce and Industry (MCCI), said in an interview that while Cebu has no vast agricultural lands to grow crops, and produce other agricultural products, the business potential eyed by the local capitalists is putting investments in agri-business facilities, Ko said.
He said there is a growing interest among businessmen in Cebu to invest in these facilities, as agriculture has become one of the Marcos administration’s main focus.
In his recent visit to Cebu, prominent economist Ranilo Balbieran called the local businessmen to start making investments in agriculture and agribusiness sectors, not only because it is a promising venture, but also to help the Philippines achieve its rightful economic growth.
Balbieran, who was one of the main speakers during the Mandaue Business Summit 2023, said that for the Philippines to end the battle against poverty, more investments in agriculture, either to venture into actual farming business or putting money in agriculture-related businesses.
“Find a way to connect your business directly or indirectly to agriculture and agribusiness and we will have a collective action, effective action towards eradicating this (poverty rate) or at least half the list,” Balbieran addressed the Cebuano business owners and decision-makers.
Balbieran, one of the country’s most respected economists, said that the Philippine banking system’s surplus of cash presents an opportunity for businesses to access funds for investments. This excess liquidity can be channeled into agriculture-related ventures.
Like other economists and financial experts, Balbieran reiterated that the Philippine banking system now is awash with cash.
“Banks are swimming with extra cash. People don’t know what to do with that extra cash,” he said adding that there is at least P3 trillion cash lying in the banks’ vaults in the country right now.
Balbieran said instead of complaining about the rising prices in other commodities, which are caused by external pressures, businesses should focus on the potential to grow inclusively, and agriculture is the key to economic strength.
According to Ko local businesses are now considering venturing into agri-business, “not necessarily invest on a farm,” but help facilities and technological support services farmers put high value to their produce and bring agricultural products closer to the market.
In a separate event, Ricardo Alba, president and chief operating officer (COO) of Unahco, a manufacturer and distributor of veterinary and feed products including swine, poultry, gamefowl, ducks, pigeons quail, dogs, and cats, the Philippines has “low-lying fruit” in the agriculture sector, which is not yet maximized.
Despite the country’s rich soil and vast idle lands, there is still untapped potential in the agriculture sector, Alba echoed the insights made by multiple economists. This presents an opportunity for entrepreneurs and agripreneurs to explore and invest in various agricultural activities.
The Cebuano agribusiness top executive, Alba reiterated the need for Filipinos to discover the “gold mine” in agriculture—whether starting a small farm becoming an agri-prenuer, or entering the modern farming workforce.
In Cebu, Alba mentioned the potential of growing yellow corn crops to supply the rising demand for animal feeds.
The Philippine government has been making efforts to revive the agriculture sector through policies and initiatives. This includes providing support to farmers, improving infrastructure, and promoting agri-business.
Cebu’s proximity to other major cities and ports can make it an ideal location for logistics and cold storage facilities, Ko added.
Philippine Chamber of Commerce and Industry (PCCI) regional governor for Central Visayas Melanie Ng also said that incorporating modern technology and innovative practices can improve the efficiency and productivity of agriculture-related businesses. This can include adopting precision agriculture techniques, using advanced storage methods, and implementing automation in processing.