The $1-billion project between San Miguel Corp. and the Kuok Group to develop one million hectares of farmland in the Philippines is critical in helping government achieve food security for the country. Aptly dubbed “Feeding the Future,” the project allows the two giant companies to develop farmlands to be planted mainly to rice, sugar, corn and coconut – which is very welcome news to farmers considering that San Miguel and Kuok guarantee to buy all food products from these farms. This kind of project is really not new for San Miguel as the giant conglomerate has long been helping farmers through several livelihood projects in cooperation with local government agencies, like the setting up of cassava plantations with SMC buying the produce. The company has also been initiating partnerships with LGUs, financial institutions and cooperatives for a corporate farming program on 5,000 hectares of irrigated rice lands in Zamboanga del Sur. Fortunately, other businessmen like Jollibee owner Tony Tan Caktiong are also thinking of ways to help the Filipino cope with these hard times. Tony is set to aggressively expand the cheap fastfood brand “Manong Pepe,” where P39 can get one a meal with free rice and soup.
The situation however is far worse than people may think with the incessant surge in the price of oil, rice, corn and other commodities on a global scale. The current crisis is like a gathering storm that threatens to destroy everything on its path, the most vulnerable of which will be the poor. Even the International Monetary Fund (IMF) had warned that the problem could worsen as millions more will become undernourished particularly in poor and developing countries that are dependent on food imports. The decision of India, Vietnam, China, Bolivia, Pakistan and other countries to stop food exports have also worsened the situation. As World Trade Organization director general Pascal Lamy described it, these restrictions have “fuel(ed) the fire of price increases,” which in turn has led to hoarding, triggering panic buying in many parts of the world including the Philippines.
Yet we can’t really blame these countries for restricting or even totally banning food imports since they want to make sure their people have enough to eat and at more affordable prices. The food riots in Haiti and other places have convinced other countries that it’s crucial for them to grow their own supply and not just rely on others – who might want to keep it for their own needs. As India’s minister of commerce and security has correctly pointed out, “every country must first ensure its food security.” We can’t really blame India for banning the import of rice considering their huge population and the number of poor people in that country despite the leaps they have made with their economy.
Obviously, global economic growth has also been affected, with inflation accelerated in many parts of the world including the Philippines where the annual inflation hit a 14-year high of 11.4 percent last month. According to the National Statistics Office, core inflation jumped to 6.6 percent in June, up from 6.2 percent in May. Even the wealthy are feeling the pinch with the relentless increase of gasoline prices and escalating costs of other products and commodities. But the hardest hit of all are the poor majority who live below the poverty line as they continue to suffer on a daily basis, enduring the heat of the sun lining up for hours just to buy three kilos of cheap NFA rice from accredited stalls.
GMA is resorting to stop-gap measures to ensure the survival of this country and her government from the rising discontent among the poor. The one-time P500 cash dole-out for lifeline electricity consumers and a cash transfer program where the poorest families are given a monthly allowance of P500 to help them cope with the economic crunch have certainly helped appease – temporarily – the growing anger and frustration among the marginalized. Throughout history and all over the world, we have seen how hunger and starvation have triggered revolutions and toppled governments, a recent example of which is Haiti where violent food riots caused the firing of Prime Minister Jacques Edouard Alexis by the senate. According to an account by Time magazine, government is virtually non-existent in that fractious country where 80 percent of its nine million population lives on less than $2 a day.
While the Philippines is far from becoming another Haiti, we can’t ignore the brewing social unrest due to escalating food prices. Just yesterday, some 5,000 farmers marched in protest demanding the National Food Authority in Cavite to increase the supply of NFA rice in the province. Time and again, San Miguel chairman Eduardo “Danding” Cojuangco has stressed the importance of food security, reiterating this message recently. San Miguel president Ramon Ang shares the vision of Danding, which is probably why the two have been working together so well over the years, steering SMC into becoming one of the largest food and beverage conglomerates in Asia.
A gentleman-farmer at heart, it has been the long-time dream of Danding for the country to develop its agriculture sector. Both he and Enrique Zobel had warned about the land reform program and its impending failure because land distribution has not been accompanied by support services, improvement in technology and infrastructure development.
The only way the country can weather the storm of rising food prices is to lessen its dependence on other countries by enhancing agricultural production and achieving food security in the future. Hopefully there will be more corporations that will follow the initiative of San Miguel and the Kuok Group, concentrating on the development of businesses that would enhance agriculture and make the price of food affordable for Filipinos especially in the difficult times ahead.
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