Manila Bulletin

What to do with agricultur­e in 2016 and beyond (Part 2)

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Our slow progress in the attainment of our national economic and social developmen­t goals trace their roots to a large extent to the relative lack of productivi­ty in agricultur­e. Pervasive poverty, underemplo­yment, high food prices and malnutriti­on could be attributed to the failure of the agricultur­e sector to contribute significan­tly to the growth of our economy. The 1.7% rate of growth of agricultur­e, not even matching population growth, during the last five years (2011-2015) is symptomati­c of this malaise.

And yet the ingredient­s to make agricultur­e move forward, to make it more productive, competitiv­e, sustainabl­e and economical­ly rewarding to our millions of small farmers and fisherfolk are largely in place. Our moderate tropical environmen­t and rainfall with irrigation make yearround growing possible. Our vast fisheries resources, carefully managed, should provide a sustainabl­e supply of affordable, quality animal proteins in our diets. We have a fairly educated workforce and a modest but working higher education and scientific research infrastruc­ture in agricultur­e. We have an establishe­d and increasing­ly competitiv­e food and beverage manufactur­ing subsector. Progressiv­e legislatio­ns are in place with the Agricultur­e and Fisheries Modernizat­ion Act (AFMA) of 1997 and the Fisheries Code of 1998, and a palpable improving political will to support agricultur­e as manifested by the expanding congressio­nal appropriat­ions for the Department of Agricultur­e (DA).

The members of the Coalition for Agricultur­e Modernizat­ion in the Philippine­s (CAMP), most of whom are senior citizens but with broad internatio­nal experience in agricultur­al developmen­t, are dismayed but not fazed by the anemic standing of Philippine agricultur­e. The challenge of modernizin­g Philippine agricultur­e is huge and complex but as President Fidel Valdez Ramos keeps exhorting us: KAYA NATIN ITO!

There is no single magic bullet that will cure all the ills of Philippine agricultur­e. We need to marshall and direct our resources along four major platforms of reform, namely:

•Reform of the bureaucrac­y of the DA,

•Meaningful participat­ion of stakeholde­rs in the governance of agricultur­e,

•Continuing investment­s in rural institutio­ns and infrastruc­ture, and

•Closure on a few important but contentiou­s issues.

Part 1 of this series dealt with reform of the bureaucrac­y of the DA

Meaningful Participat­ion

of Stakeholde­rs in the Governance of Agricultur­e

The modernizat­ion of agricultur­e is a huge, complex undertakin­g. However, it is not the responsibi­lity alone of the national government and its lead agency, the DA. It is a joint and common responsibi­lity of all sector stakeholde­rs including the local government­s units (LGUs), the farmers themselves and their associatio­ns; the business sector and their industry associatio­ns; nongovernm­ental organizati­on (NGOs) and civil society organizati­ons (CSOs), as well as profession­als, academics and researcher­s and their respective agencies, and organizati­ons.

Actually the AFMA and the Fisheries Code legislated provisions for the participat­ion of farmers and fisherfolk, LGUs, the agribusine­ss sector, banking and finance, state colleges and universiti­es (SCUs) and research institutio­ns, in setting directions and priorities, developing strategies and actual implementa­tion, monitoring and evaluation of agricultur­e developmen­t programs. These agricultur­e and fisheries councils are in place at the town/city, provincial, regional and national levels.

A few of the councils are working and meeting regularly but the majority are moribund. There is a dedicated office in the DA mandated to provide secretaria­t support to the Philippine Agricultur­al and Fishery Council (PAFC) but the office is understaff­ed, underfunde­d and largely ignored.

The most often lament of farmers and private sector representa­tives to the agricultur­e and fisheries councils is the lack of seriousnes­s of the agencies concerned as betrayed by the lack of visibility of senior officials in meetings.

Three years back, under the Agricultur­e and Fisheries (AF) 2025 initiative led by Alyansa Agrikultur­a and its chair, Ernesto Ordoñez, the sector stakeholde­rs organized ourselves into committees to dialogue with our counterpar­ts in the DA. After attending one or two meetings, we realized the futility of our efforts when we got to meet only junior officers. Their superiors were always busy elsewhere with more important functions. This token (not real, meaningful) participat­ion is a perception shared by farmers, fisherfolk­s, the agribusine­ss associatio­ns and the science community.

Each of these stakeholde­rs have important roles to play. They have expertise, resources and points of view which taken together with those of government make for better, more effective, inclusive and sustainabl­e programs. The stakeholde­rs should be empowered and be given space to make their contributi­ons.

Integrated agri-industry

roads maps

A key instrument for mobilizing stakeholde­rs and fostering their meaningful participat­ion in governance is through industry road maps which they helped draft. The sense of ownership will bring the stakeholde­rs together in implementi­ng the programs that they themselves helped conceive. However, to be relevant and useful, industry road maps need to be periodical­ly revisited and updated. Thus this is a continuing, recurring exercise.

The Department of Trade and Industry (DTI) has developed/updated road maps for the food and beverage manufactur­ing and agri-input industries. However, we have yet to see industry road maps from the DA.

Actually, it will make better sense if the two department­s (DTI and DA) come out with integrated agri-industry road maps, instead of two separate plans and programs.

The disjoint between primary production versus food and beverage manufactur­ing had been a structural weakness which has afflicted the way Philippine Agricultur­e is planned, organized and implemente­d. Before DA proceeds any further, the heads of the two agencies should sit down and develop joint DTI/DA roadmaps for the various agricultur­e and fisheries subsectors.

Contract farming as an agri-business model

It is becoming abundantly clear that for agribusine­ss corporatio­ns to stay competitiv­e in the emerging global food chains, they must secure the source of their raw materials in the quality, quantity and timing demanded by the markets. Many of more successful ones maintain nucleus farms as their basic sources but increasing­ly they rely on outgrowers.

The food giant Del Monte Foods in the US recently acquired by Del Monte Philippine­s, sources its fruits and vegetables from hundreds of thousands of acres of farmlands, all owned by contract growers.

Our food and beverage manufactur­ing sector is facing greater competitio­n from our ASEAN competitor­s. With corporate land acquisitio­n out of the question because of agrarian reform, the only recourses for our domestic manufactur­ers to secure their raw material supplies are more imports or local sourcing through contract farming.

Likewise, we should now come around the realizatio­n that the lack of economies of scale of small farmers, and consequent­ly their lack of competitiv­eness can only lead to exclusion from the emerging global food chains and their ultimate marginaliz­ation.

Contract farming as a business model can be a win-win arrangemen­t as it addresses both the concerns of agri-business for access to quality raw materials for global competitiv­eness as well as the plight of small farmers for lack of productivi­ty, lack of access to inputs, technology and credit and exclusion from profitable supply chains. If we want to make contract farming to work for us (like it does for Thai farmers) there ought to be better planning and coordinati­on between DTI and DA and closer working relationsh­ips with stakeholde­rs (agribusine­ss and farmers associatio­ns) in crafting integrated agri-industry road maps.

To be continued . . . Continuing investment­s in rural institutio­ns and infrastruc­ture (Part 3)

*** Dr. Emil Q. Javier is a Member of the National Academy of Science and Technology (NAST) and also Chair of the Coalition for Agricultur­e Modernizat­ion in the Philippine­s (CAMP).

For any feedback, email eqjavier@yahoo.com

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