SMC’s sustainable farming practices yield strong results

MANILA, Philippines —  Sustainable farming practices implemented by San Miguel Foods, the food unit of conglomerate San Miguel Corp. (SMC), have yielded positive results in the first half, boosting incomes for its extensive network of farmers nationwide.

SMC said its long-running regenerative agriculture program has yielded over 90,000 metric tons of cassava in the first semester, 44 percent higher year-on-year.

An initiative that has been ongoing for many years now and in place in more than half of all the provinces in the country, the company’s Cassava Assemblers Program has steadily grown and has resulted in higher yields, according to SMC chairman and CEO Ramon Ang.

“Through our Cassava Assemblers Program, we offer a guaranteed market with purchase agreements, a fixed floor price and a comprehensive technical assistance. We continue to engage with and encourage farmers to organize themselves and form small businesses to assemble a minimum of 20 hectares of cassava plantation,” Ang said.

Ang also said assemblers purchase produce directly from small farm holdings, which is particularly helpful for farmers with insufficient funds to pay for transport costs to sell their goods.

He said it also solves the problem of economies of scale in production, lowering the unit cost of harvesting or transport to a point where it is profitable for both the farmer and the assembler.

On its end, San Miguel is assured of a steady supply of essential raw materials.

“Our goal has always been to support farmers by harnessing the potential of cassava, a root crop ideally suited for cultivation in the Philippines. Due to its high carbohydrate and energy content, it is an alternative to traditional ingredients such as corn and wheat. Its byproduct, cassava pulp, may also be considered as another ingredient for animal feeds, highlighting the crop’s versatility in animal nutrition,” Ang said.

San Miguel Foods president Butch Alejo said the company currently has some 100 assemblers and thousands of farmers all over the country, planting and harvesting on some 45,000 hectares of land last year and this year.

“With this, we ensure not just reliable supply for our business, but we also provide good, steady income for farmers,” he said.

Beyond large-scale cassava production, Alejo said the company’s program significantly contributes to sustainable and regenerative agriculture as it helps enhance soil health and contributes to climate mitigation.

He said cassava’s deep root system enhances overall soil health as it helps break up compacted soil, improves soil structure and increases soil organic matter.

Further, its inclusion in crop rotations also diversifies plant species, reducing pest and disease pressures while promoting beneficial soil microbes.

“This program reflects San Miguel Foods’ dedication to sustainable farming practices and SMC’s commitment to sustainability, as it benefits both the environment and local communities–helping create prosperity for farmers of generations to come,” Ang said.