Three agri-related pacts to be signed during GMA state visit

The Department of Agriculture (DA) will be signing three agreements with the United States Department of Agriculture (USDA) during the state visit to the United States of President Arroyo next week.

To be signed are memoranda of understanding (MOU) for a $52-million loan by the US Export Import Bank to finance solar power irrigation systems (SPIS), a $20-million package under the Public Law (PL) 480 program of the US and a $1-million integrated meat processing plant project by TLC Beatrice Foods.

Agriculture Secretary Luis Lorenzo Jr. said the $52-million SPIS project will involve tapping solar energy to draw groundwater that will power irrigation systems, especially in the upland and other remote areas which still have no access to irrigation systems. The priority areas will be in Mindanao.

The PL 480 farm aid program is granted yearly to the Philippines. It is a lending program that allows the US to provide loans to developing nations in the form of surplus farm produce.

Beneficiary governments then monetize these products and use the proceeds to fund farm projects.

This year the Philippines is set to get $18-million worth of rice and $2-million worth of feed peas.

Lorenzo said the DA will also be urging the USDA to divert to the Philippines the allocations for other developing countries which are said to be not too inclined to get their PL 480 allocations.

The third agreement to be signed will be between the DA and the New York-based TLC Beatrice Foods Inc., a large agro-industrial firm that is putting up a $1-million integrated meat processing plant in Naga City, the regional center of Bicol region.

The company’s local unit TLC Beatrice Foods Phils. Inc. began the construction of the facility last year and expects to start commercial operations by next month. The new facility is adjacent to the Naga City abattoir which is technically supervised by the National Meat Inspection Commission but operated by the city government.

The firm will procure a minimum of 200 head of fattened hogs per day for slaughtering and processing into high-value pork choice cuts.

Over 1,200 families and beneficiary-partners stand to gain from the new project as it provides job and income opportunities for those who will be involved in hog production, abattoir operation, meat processing and distribution.

Agriculture is high on the agenda of President Arroyo’s visit to the US.

Aside from the signing of these deals, Arroyo will be pushing for duty-free trade privileges for key agricultural exports such as dried mangoes, pineapple juice, carrageenan and tuna which the Philippines wants to be included under the US General System of Preferences (GSP).

Apart from these products, the Philippines is also expected to reiterate its request to waive the US policy on minimum access limit to products like salted fish, dried guavas, mangoes and mangosteens, preserved papaya pulp, abaca handbags, twine, cordage and rope, and sports gloves.