2012-01-17 | Back
Philippine Agribusiness Competitiveness
1. Agriculture is key to building a middle class society. There is no other way. 2. Philippine Agriculture and Fishery Landscape: a. Less than a fifth of GDP b. But agribusiness chain, over 40% of GDP c. 12 million workers, more than a third of the workforce d. Main occupation in rural areas 3. The agriculture-fishery constituency a.75% farmers and 25% fishers b. Top stakeholders Coconut 21.7% Small fishers 21.3% Rice 21.0% c. Ignored in the numbers are the faceless, landless farm workers (Over 2 million) 4. The Philippines has been in deficit since the 1990’s in agri-food balances. 5. The Philippines has mediocre record in agri food exports. 6. The Philippines has only 3 main product mix: coconut oil, banana and canned tuna. This is compared to Indonesia with 11, Malaysia with 9, Thailand with 19, Vietnam with 9, China with 45, New Zealand with 12, and Chile with 10. 7. The Philippines is a global player in coconut, banana, pineapple, canned tuna, and seaweed. It is doubtful in palm oil, shrimp and coffee. It is definitely not in rice, poultry and swine. It is apparently not in corn. 8. In the Philippines, rice has been the favored child (very political to a fault; no comparative advantage). The recommendation is to export high value exotic rice, aromatic varieties with market niche. Corn has long-term potential. Recommendations: yield, logistics, post harvest loss reduction, mechanization Coconut is the bright but abandoned child. Recommendations: replanting, fertilization, intercropping Banana: the Philippines stands tall among peers. For greater competitiveness: address issues of land access, unstable policies like aerial spraying, pest and disease control, and pole vaulting. Rubber has limited support to perennial crops. To competitiveness: access to public lands, long term financing, extension services, access to good clones, and quality improvement. 9. Chain gaps and investment opportunities: Rice – milling – higher recovery Coconut – farm production – low capacity utilization of mills Coffee – farm production – high imports Rubber – farm production – missed export opportunities Seaweeds – farm production – imports for carrageenan processing Cacao – farm production – imports of beans Non-trad fruits – farm production – missed opportunities for value added processing Palm oil – farm production – high imports Banana – land access- missed opportunities Pineapple – land access – missed opportunities Tilapia – feed costs – export uncompetitive Broiler – feed costs – export uncompetitive Hogs – feed costs – export uncompetitive 10. Please refer to www.map-abcdf.com.ph for the complete details. Thank you.