Landbank allots P50 billion for government food supply chain program

MANILA, Philippines - The Land Bank of the Philippines (Landbank) is allotting P50 billion for the government’s Food Supply Program, a food self-sufficiency and agricultural productivity program.

Landbank, the Department of Agriculture and the Department of Finance signed a memorandum of understanding for the program aimed at attaining food self-sufficiency.

Finance Secretary Cesar Purisima said the P50 billion for the program would be used to support the financial requirements for crop, livestock and fishery production, working capital and acquisition of processing and other fixed asset that are needed to increase agricultural productivity and improve efficiency in the food system. The allocated amount may be increased depending on the requirements of the market and the industry.

“This is Landbank’s contribution to President Aquino’s commitment to develop the rural economy and to raise farmers’ income. We look forward to more private sector investments to improve agricultural productivity,” Purisima said.

The Food Supply Chain Program also aims to increase farmers’ income by way of providing necessary financial and technical support along the value-added chain of a commodity or industry. Specifically, the program will provide financial assistance to key players in the food system such as agricultural producers, service providers, consolidators, processors and various market players.

It also hopes to provide market linkages between agricultural producers and processors; and capacity building support to strengthen farmers’ organization and enable them to meet product requirements of anchor firms.

Landbank president Gilda Pico, for her part, said the program would help provide better economic opportunities for people in the countryside.

Initial projects which were identified include the integrated corn production and hog fattening, integrated broiler production and processing, banana production and export, oil palm production and palm oil refining, and vegetable production.

The Food Supply Chain Program’s anchor processors and cooperatives for integrated corn production and hog fattening include Biotech Farms, Inc., Marcela Farms, Inc., Sorosoro Development Cooperative, Limcoma Multi-Purpose Cooperative and Catmon Multi-Purpose Cooperative. This requires an investment of at least P550 million for corn production and contract growing for hogs which is expected to benefit more than 3,000 corn farmers and 8,000 contract growers.

Anakciano, Inc. will serve as the anchor firm for the integrated broiler production which requires financing support of P242.5 million for broiler and corn production, with more than 1,000 contract growers expected to participate. Meanwhile, for banana production and export which needs P940 million, Sagrex Food Corp. and Fermon Corp. will serve as the anchor firms and exporters.

For oil palm production and palm oil refining, Agumil Philippines, Inc. will serve as the processor.  An amount of P1.5 billion is required by more than 6,000 oil palm growers for oil palm production.

On the other hand, Agrinurture, Inc. is the program partner for vegetable production for the local and export market. An amount of P20 million is required for vegetable production.