Module 1: Philippine Agriculture: Current Challenges, Plans and The Food Industry Today

DC 70: Module 1 Philippine Agriculture: Current Challenges, Plans and The Food Industry Today

Jett L. Torres, Instructor

Situationer: The Philippines is still PRIMARILY an agricultural country despite the plan to make it an industrialized economy by 2000. Most citizens still live in rural areas and support themselves through agriculture.

The country's agriculture sector is made up of 4 sub-sectors: farming, fisheries, livestock, and forestry which together employ 39.8 percent of the labor force and contribute 20 percent of GDP.

The country's main crops are rice, corn, coconut, sugarcane, bananas, pineapple, coffee, mangoes, tobacco, and abaca (a banana-like plant).

SECONDARY CROPS include peanut, cassava, camote (a type of root crop), garlic, onion, cabbage, eggplant, calamansi (a variety of lemon), rubber, and cotton.

MAJOR EXPORT PRODUCTS are coconut oil and other coconut products, fruits and vegetables, bananas, and prawns (a type of shrimp).

 RAMPANT CONVERSION OF AGRICULTURAL LAND

Challenges

One of the most pressing concerns of the agricultural sector is the rampant conversion of agricultural land into golf courses, residential subdivisions, and industrial parks or resorts.

 LACK CAPITAL Small land-holders find it more profitable to sell their land to developers in exchange for cash, especially since they lack capital for seeds, fertilizers, pesticides, and wages for hiring workers to plant and harvest the crops.

Profitable

 CHEMICAL-BASED FERTILIZERS continued reliance on chemical-based fertilizers or pesticides that have destroyed soil productivity over time.

Organic

However, farmers have been slowly turning to organic fertilizer, or at least to a combination of chemical and organic inputs.

Issues

Coral-reef destruction, pollution of coastal and marine resources, mangrove forest destruction, and siltation (the clogging of bodies of water with silt deposits) ARE SIGNIFICANT PROBLEMS.

Rice is our principal food and the foremost research body for the crop –

Environmental Damage

the International Rice Research Institute is based in Los Baños, Laguna yet we are one of the biggest importers of rice in the world.

Rice

Produce Food

Agriculture Sector

Food

NO ADEQUATE RESOURCES for the funding of critical programs or projects, such as the construction of efficient irrigation systems.

To make food available, farmers and fisher folk must produce enough for 105 million Filipinos.

The country’s AGRICULTURE

AND FISHERIES PROGRAM must go back to the basic Produce Food and Address Poverty.

To make food affordable, the cost of production must be brought down while the income earning capacity of the people must be raised.

The programs of the Department of Agriculture now would be focused on two areas:

High Value

Principal Food Commodities to ensure food security;

Food Security

High-Value Crops to generate jobs and foreign earnings.

Points to Ponder

“What do Filipinos eat and where and how do we produce these commodities?”

“What do the local and foreign markets need which the Philippines could produce?”

Philippine Agriculture 2020

Philippine Agriculture 2020 is a medium-term

strategic plan for the agriculture and natural

PA 2020

01

resources sector.

The plan envisions a sector that shall have a MAJOR

ROLE in reducing poverty, achieving food security, global competitiveness, sustainability and justice, and peace.

02

A vision of STRONG AND VIBRANT agricultural and natural resources production systems and ecosystem services that improve and sustain well being in the Philippines.

03

A HOLISTIC VIEW that expands production and broadens markets.

04

EMPOWERING PEOPLE to move out of poverty and preserving the sources of pride in Filipino culture.

PA 2020 embraced the social philosophy that agriculture is a way of life and that it has multiple functions:

01

Connected to the distribution of social and political power

02

Culture and values that animate it

03

Enrich society as a whole

THREE PILLARS Organizing and managing agriculture as a business

Three Enabling Strategies 1.TECHNOLOGY DEVELOPMENT

Changing the social structure through asset reform

Nurturing values respecting nature and community

2.INVESTMENTS

3.GOVERNANCE REFORMS

improve product quality, reduce losses, and conserve the environment resulting in enhanced productivity, profitability, competitiveness, and sustainability.

“

PA 2020 is a blueprint for the modernization of Philippine agriculture

“

TECHNOLOGY INNOVATIONS – raise yields,

MODERNIZATION OF AGRICULTURE – massive public investment in physical infrastructure, in rural credit and finance, in human capital and institutions.

GOVERNANCE – “binding force” for enabling strategies.

“PA 2020 has embraced the social philosophy that agriculture beyond its economic and material contributions is connected to the distribution of SOCIAL AND POLITICAL POWER and to the CULTURE AND VALUES that animate it and enrich society as a whole.”

Most of the features of a modern agriculture sector are in place but what had been lacking for the most part are:  The political will to fully invest in its requirements  Concentration and sustained efforts

 Coordination and convergence of public and private investments and interventions

 Greater transparency and accountability in the use of public funds.

Philippine Food Industry

Food Industry The food industry comprises COMPLEX NETWORK ACTIVITIES related to the supply, consumption, and catering of food products and services.

It plays a SIGNIFICANT ROLE in the economic development of any nation.

It is one of the world’s MOST DYNAMIC economic sectors.

Food is an essential part of our lives. The food industry is the BASIC AND IMPORTANT to every nation.

Food Industry It plays a CRUCIAL ROLE in public health, food safety, food security, social development, and nutrition.

Product quality, health, and sanitation issues are MAJOR CONCERNS in the food industry.

Components of Food Industry

AGRICULTURE: This is the process of producing food, feed, fiber, and other desired products.

FOOD PROCESSING: is used to transform raw ingredients into marketable food products.

MARKETING: Food marketing describes any form of advertising used to promote the purchase and or consumption of a food or beverage.

FOOD DISTRIBUTION: This includes transporting, storing, and marketing food products to consumers.

RESEARCH & DEVELOPMENT: Research on any aspect of food industry producers relevant information about that sector.

Research reflections may be on factors influencing consumer behavior, customers’ buying choices, formation of attitude, and opinions.

Challenges ENVIRONMENTAL ISSUES

EXCESSIVE

The food industry faces several challenges.

The food industry needs to deal with new legislation and increased regulation on environmental issues.

The excessive use of fertilizers, pesticides, and food additives may adversely affect the environment and human health.

 Climate change  Pollution

 Manure disposal  Soil and water damage

 Deforestation  Environmental

POLICIES

As public shifts toward a greener planet, the food industry should implement green policies

degradation  The strain on natural

resources

A big challenge facing the food is TRANSPARENCY.

Consumers are reading the back of packages more ever. They are becoming MORE EDUCATED on the benefits of healthier choices.

The Philippines is a ROBUST, DYNAMIC, AND GROWING MARKET for imported food and beverages with total imports of consumer-oriented products exceeding US$ 1B annually.

The food industry is CREATIVE in both its TECHNOLOGICAL INNOVATION and desire to satisfy the requirements of consumers, health professionals, and its critics.

The Philippines’ RAPIDLY EXPANDING production of processed foods and beverages (f&b) opportunities for U.S. exporters of agricultural raw materials and high-value ingredients.

As QUALITY AND EFFICIENCY continue to improve, the Philippines will be in a position to exploit export opportunities due to its strategic location and membership in various free trade agreements.

Consumption growth is underscored by the country’s expanding economy and to remain one of ASIA’S TOP GROWTH PERFORMERS.

PUBLIC INVESTMENT

The government’s COMMITMENT TO INTENSIFY public investment and infrastructure is expected to support this economic growth forecast and bolster job creation, poverty reduction, and a further increase in consumption.

The food and beverage sector of the Philippines, which accounts for 10% of the GDP, is one of the TOP CONTRIBUTORS to the country’s economic growth.

Assessment Assignment: 1. Research the Major Agriculture and Food Retailers in the Philippines.

2. Identify each market structure and strategy.

3. Identify its branding and style.

Journal Quiz (20pts) ďƒź Discuss the challenges faced by the Philippine agriculture and food industry in promoting inclusive growth, and build more sustainable agriculture and food systems.

(500 words only)

THANK YOU Module 1