Urgent investments needed to boost food production

Companies all over the world, especially big ones, allot funds for their capital spending. These firms make investments in various areas to improve their services, increase output and prop up their bottom line. They put money into technology, spend it on the recruitment and training of more people, invest in research and development or establish more branches.

Manufacturers are well aware of the importance of expanding their facilities if they want to increase their output. An exponential increase in demand for their products cannot be delivered by simply raising the workload of each worker. At some point, these companies would have to set aside the necessary funds that will allow them to build a bigger factory where they can process more orders.

This also applies to increasing the country’s food production. Many in government, especially those who came from the private sector, are cognizant of the need to put in place not only the necessary policies but also the money to bankroll initiatives for beefing up food output. In fact, the current chief of the Agriculture department estimated that some P1.3 trillion is required to improve farm production and reduce food waste.

(See, “Government should invest P1.3T to hike food output,” in the Businessmirror, January 17, 2024).

The amount would be used to fund irrigation projects, postharvest facilities and cold storage facilities. Irrigating the remaining 1.2 million farmlands alone would cost P1.2 trillion, according to the country’s Agriculture chief. This estimate does not yet take into account irrigation facilities damaged by storms or those that should be fortified.

As for postharvest facilities, producers are badly in need of the latest technology that would allow them to significantly reduce losses. A 10-percent reduction in postharvest losses, for instance, would practically eliminate imports and allow local planters to increase their incomes. Additional cold storage facilities would also make it more cost-efficient to store food and enable planters to preserve produce.

However, these initiatives would require substantial investments, which the state failed to make in the last two decades. Other neighboring Southeast Asian states have been able to capitalize on their farm sector and are now reaping the fruits of the focus they accorded to their agrifood sector. Thailand and Vietnam are earning millions of dollars from their food exports, while the Philippines remains as a net food importer.

The price tag of P1.3 trillion may be staggering to some quarters but it is a small amount to pay for ensuring the nation’s food security. The investments made in the agriculture sector will not only benefit consumers, but also the manufacturing sector, particularly food exporters. The agrifood sector can significantly contribute to the aspiration of the Marcos administration to turn the Philippines into an export powerhouse.

As for agencies and entities that would be entrusted with these funds, they should ensure that the money is used judiciously and see to it that it is channeled to programs and initiatives that will truly benefit the sector. They should work with the President towards the creation of a “New Philippines,” where food is affordable and planters no longer have to borrow heavily just to feed their families and the nation.