Filipino farmers have always relied on middlemen and traders to deliver their produce to consumers. These same traders have also become their source of production capital, as well as farm inputs, such as seeds and fertilizer. According to an agriculture economist interviewed by this newspaper for its podcast, the stranglehold of traders on markets and as sources of inputs made it difficult for local planters to profit from the fruits of their labor.
The Covid-19 pandemic has ushered in changes in the agricultural supply chain and value chain that are now benefiting both Filipino planters and consumers. Measures to contain the spread of Covid-19, such as physical distancing, have paved the way for the use of platforms that allow both producers and consumers to meet. The increase in purchases via these platforms also brought more business to firms offering delivery services.
The Department of Agriculture said farmers were able to earn more than P5 billion by selling their produce directly to local government units and via the government’s marketing platforms (See, “Farmers earn billions via direct-selling scheme,” in the BusinessMirror, June 8, 2020). The online store is one component of the DA’s marketing program, which has enabled consumers to access fresh fruits and vegetables while Luzon was under a more stringent enhanced community quarantine. These farm products are crucial during this pandemic, as health experts have recommended the consumption of more nutritious food to help our body fight the virus that causes Covid-19.
Pending the discovery of a vaccine and due to the need to prevent a second wave of infections, Filipinos are expected to continue observing physical distancing and to limit their forays outside their homes. Given this development, there must be no let up in government’s efforts to expand the use of online platforms and to find other ways to deliver food to consumers without increasing the risk of infection for both buyers and sellers. Now is also the best time to step up initiatives that will allow farmers to tap technology so they can improve their productivity and income.
As more Filipinos turn to technology for their needs, government must ensure that the necessary digital infrastructure is in place. Far-flung areas in the country still do not have access to the Internet, and they continue to get their information from traditional media, such as radio and television. This pandemic has given us a glimpse of what technology can do for farmers, and it can do much more if policy-makers are willing to make the hard decisions and investments that will allow technology to unlock the farm sector’s potential.
This pandemic has also shown us the folly of failing to prioritize food production and the agriculture sector. Policy-makers must now stop paying lip service to the development of the sector and to start funding necessary projects that will boost the availability of food, including mechanization, the construction of more farm-to-market roads, cold chain facilities and silos. The improvement in farmers’ productivity will amount to nothing if they cannot reach markets because of bad roads and if their produce will be allowed to rot because they do not have the requisite post-harvest facilities.
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