Inefficiencies continue to stunt growth of Phl agri sector

MANILA, Philippines - The agricultural sector has described as urgent the country’s need to modernize infrastructure, facilities, equipment, and technologies to enable the industry to compete at regional and global levels.

Roberto Amores, president of the Philippine Food Exporters Confederation, said that agro-based enterprises continue to face several challenges in tapping into the highly promising world food trade market.

Speaking before participants at the 40th Philippine Business Conference & Expo held recently in Manila, Amores said the agricultural sector’s development continues to be stunted by inefficiencies that adversely affect the food supply chain.

Specifically, the industry needs more modern farm equipment and post-harvest facilities such as drying facilities and silos, as well as farm-to-market roads.

He also called for increased capital infusion into building infrastructure linkages between ports and centers of production, saying there is a need to “tighten local networks and links.”

Amores, who is also the director for agriculture and food security of the Philippine Chamber of Commerce and Industry, asked for the further development of the roll- on/roll-off (ro-ro) system, as he observed that not all areas are serviced by this.

In the Mindanao region, for instance, he said there is insufficient infrastructure support for this mode of transport in areas such as Davao and Cotabato. Local shippers are thus forced to use the Cagayan de Oro port, causing travel time of some eight hours for raw materials to reach processing plants.

Amores likewise called for the adoption of new technologies to upgrade food manufacturing processes, including technologies for using organic fertilizers and enhancing value-added production.

At the same time, the sector’s ability to meet increased demand for compliance to global food safety standards and good agricultural practices — now mandatory in the European Union, he stressed — must also be enhanced.

For the fisheries sector, more testing facilities have to be brought online to enable the production of more global standards-compliant products, said Amores.

Other proposals from agri-food companies include a stronger marketing drive for greater exposure of domestic products overseas and creation of a country brand for the Philippines, something similar to what Thailand has done when it successfully marketed itself as “the kitchen of the world,” Amores continued.

Finally, he highlighted the importance of reducing the cost of shipping and logistics by effectively solving issues like port congestion, high port fees, and the stalled modernization of the Bureau of Customs, all of which add to the “very uncompetitive cost” of Philippine food products.