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 
1990s 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.