Propping up PHL food production

By BusinessMirror Editorial - November 14, 2018

Countries in Southeast Asia could grow food all year round because they are in a region that is “blessed
with the right environmental conditions,” according to Ateneo de Manila University Eagle Watch Senior
Fellow Leonardo Lanzona Jr. In an interview with the BusinessMirror, Lanzona said the region also has
the land resources needed to grow not only rice, but also other kinds of farm products. (See, “Asean can
cut poverty as world’s food bowl, in the BusinessMirror on line, April 26, 2017.) These factors have
allowed the region to earn the reputation of being the world’s food bowl.

Two Asean members—Vietnam and Thailand—are the world’s top exporters of rice. Apart from rice,
Thailand also ships sugar, an important commodity used by food processors all over the world. Thailand
is the world’s second biggest exporter of the sweetener. Two of the world’s top exporters of palm oil—
Malaysia and Indonesia—are also in Southeast Asia. The Philippines, Indonesia and Malaysia are
regarded as three of the biggest exporters of coconut oil in the world.

The climatic condition in the Philippines is also suitable for growing other food crops, aside from
coconut. Despite this, the Philippines is a laggard in the region in terms of food exports. Local farm
production is not even enough to meet the needs of the country’s growing population, prompting the
government to allow the importation of food items, such as rice, meat products and fruits. In some
cases, agricultural products in the Philippines become more expensive because of the cost of moving
these food items to urban areas (See “PHL navigates rough waters of Asean logistics industry,” in the
BusinessMirror, November 8, 2018).

Unfortunately, the government has yet to make significant inroads to prop up agriculture production.
While the President and his economic managers are cognizant of the importance of agriculture to
boosting GDP, many of the programs aimed at improving output and farmers’ income have not been
implemented. These are programs and strategies outlined in the economic blueprint of the Duterte
administration, dubbed as the Philippine Development Plan (PDP).

For one, the PDP calls for an increase in investments in research and development (R&D) activities. This
is a crucial strategy that would not only expand food production, but also help Philippine food products
more competitive in the international market. Also, climate change now makes it imperative for the
government to assist farmers and the private sector to produce food even in the harshest weather
conditions.
Aside from R&D activities, the government must also seriously consider the suggestions of experts, such
as economist Pablito M. Villegas, to cluster small land holdings and turn these into strategic production
zones and aquaculture zones. Republic Act 8435, or the “Agriculture and Fisheries Modernization Act of
1997,” allows the government to do this. RA 8435 mandates the setting up of Strategic Agriculture and
Fisheries Development Zones. Villegas said such a strategy will fast-track the development of agro-
processing in the country and allow the Philippines to catch up with food-exporting countries like
Thailand.

The government must look at other solutions to increase agricultural production and help expand the
country’s food exports. A business-as-usual stance will only put the farm sector at a disadvantage and
make it more difficult for the government to make good on its promise to fight poverty, especially in
rural areas.