Government mulls changes in agribusiness development

MANILA, Philippines - The government plans to change its approach in the development of future agribusiness enterprises under the National Convergence Initiative (NCI) following the failure of several initial projects to take off.

Marriz Agbon, head of the NCI secretariat and president of the Philippine Agricultural Development and Commercial Corp. (PADCC), said that the prevailing environment has changed since the initiative was started under the term of former President Arroyo and former Agriculture Secretary Arthur Yap.

Several agribusiness projects with Chinese companies have not been able to start due to strong opposition from militant farmer groups, she cited.

Three NCI projects with the Jilin Fu Hua Group, the Guangxi Zhuang Autonomous Region Government and the Beidahuang Seed Co. have been suspended since 2007.

Another project with the SMC and Kuok Group, likewise, remains grounded.

Agbon said political policies have also changed including the grant of autonomy to local government units to enter into their own agreements.

At the same time, certain policy support for the proposed business initiatives – particularly those involving biofuels, have not been put into place, Agbon said.

As such most of the projects remain in a “state of suspension,” she pointed out.

Taking into mind the change in environment, the NCI official said the DA, DAR and DENR are now trying to work more closely in drawing up projects “from the ground up.”

Future projects, Agbon said, would start from the local or regional level rather than favoring one big venture by a private entity.

The NCI Secretariat would work more closely as well with Agrarian Reform Communities (ARCs) and Community-based Forest Management (CBFM) areas, Agbon said.

At the same time, she stressed the need for the passage of the long-delayed National Land Use Act (NLUA) which would set exactly which areas are for what specific use.

Additionally, Agbon also supports the development of a Rural Development Program so that the benefits of any business initiative would truly include the development of the rural sector.

Several NGOs, farmers’ groups and other social organizations have raised concerns over the lopsided lease agreements that local farmers (who initially agreed to lease their idle lands) have entered into with some foreign entities.

Additionally, concerns were also voiced over the reconsolidation of agrarian reform lands contrary to the intent of the Comprehensive Agrarian Reform Program (CARP) and the competing use of the land for biofuels in view of the effect of climate change on food production and the need for food security.