Agri sector faces hurdles in bid to draw investments

MANILA, Philippines - The Philippine agricultural sector faces major stumbling blocks in attracting investments, according to an official of the Ministry of Agriculture, Forestry and Fisheries of Japan.

In an interview with The STAR, Yasunori Araki, a coordinator on ABS (access and benefit sharing affairs) of the Global Environment Policy Office of the MAFF Environment Policy Division and who worked as a policy consultant of the Philippine Department of Agriculture for two years under former Agriculture Secretary Arthur Yap, expressed strong doubt about the Philippines’ goal of achieving rice and food self-sufficiency in the next few years.

Compared to its neighbors Thailand and Vietnam, Yasunori Araki said, the Philippines “is more difficult to invest in.”

For one, Yasunori Araki pointed out, “there is too much bureaucracy…too many signatures needed.”

Second, high labor cost, although Yasunori Araki acknowledged that Philippine labor quality is “better” but not necessarily more efficient and reliable.

Vietnamese workers, Yasunori Araki observed, are “more efficient” compared to Filipino workers who “take too much time.”

Another major stumbling block to attracting agribusiness investments, Yasunori Araki cited, is the “very poor government (agriculture) extension system.”

Compared to Thailand and Vietnam, Yasunori Araki pointed out, Philippine agriculture extension workers are “not so competent.”

Thailand and Vietnam, Yasunori Araki affirmed, Have very excellent extension advisers to  teach their farmers.”

In the Philippines, Yasunori Araki pointed out, only the private firms such as San Miguel Corp. and Dole Philippines have good private extension workers.

As such, he pointed out, improving production in the corn and rice sector is “very difficult” because of the poor government agriculture extension system.

Another obstacle, the MAFF official noted, is the traditional “suki” trading system where farmers rely on long-established trading ties, refusing to engage in other business deals.

The “suki” system Yasunori Araki pointed out does not allow the small farmers to decide their selling price.

Lastly, Filipino farmers suffer from a lack of credit support.

The Japanesse government, Yasunor Araki revealed, has extended financing support for the Philippine agricultural sector but the farmers are not able to avail of the funds due to the difficult credit system.