THE Department of Agriculture (DA) is encouraging businessmen to explore the numerous investment opportunities in the local farm sector considering the consumers’ and manufacturers’ huge requirements for food and raw materials.
Agriculture Secretary William D. Dar enjoined the private sector to invest in agriculture through industrialization and the establishment of agri-aqua industrial business corridors (ABCs).
ABCs was recently unveiled by the DA as one of its key projects in industrializing the agriculture sector.
The project, which is in partnership with the Bases Conversion and Development Authority, aims to disperse agri-based industries to the regions and decongest Metro Manila, according to the DA.
Based on Dar’s presentation, ABCs seek to entice the private sector “to invest and to allow great application of modern farm technology and knowledge that aims to dramatically raise agricultural productivity.”
Higher budget and investment for the farm sector is one of Dar’s paradigms in leveling up Philippine agriculture.
The Covid-19 pandemic, in particular, has highlighted the need for higher investments in agriculture to boost and sustain local food supply and diversify sources of food nationwide, experts said.
Based on Dar’s presentation, there are various investment opportunities in agriculture such as in the industries of abaca, coconut, mango, seaweeds, cacao, coffee, shrimp and rubber.
Majority of the possible investments in these industries are geared toward agri-businesses such as manufacturing, processing, logistics, post-harvest, among others.
For example, in the abaca industry, there is a huge opportunity to establish a local industry for the production of tea bags, sausage casing, bank notes, fiber-reinforced construction materials that utilize abaca since the country lacks such facilities.
Dar also told the BusinessMirror that investors could also explore venturing into industries of malunggay, yellow ginger and virgin coconut oil, due to their health benefits.
Recently, the Department of Trade and Industry (DTI) asked Indian drug makers to consider the Philippines as their manufacturing hub in Southeast Asia due to the abundance of farm raw materials like malunggay and yellow ginger.
P200-billion budget
In a virtual roundtable with the BusinessMirror on Monday, Dar vowed that they will do their best to boost food output by 3 percent if the DA will be given at least P200 billion for next year.
Dar disclosed that DA got a P86-billion allocation under the 2021 National Expenditure Program (NEP), which is 7.5 percent higher than its nearly P80 billion budget this year.
The DA pitched for a P284-billion budget for 2021 to revitalize and boost food production amid the Covid-19 pandemic.
Dar has repeatedly said the agriculture sector has been neglected in terms of budgetary allocation, and argued that it should get at least 10 percent of annual budget as it contributes 10 percent to GDP.
Dar said that P20 billion out of the proposed P66-billion agriculture stimulus package has been included in the latest version of the Bayanihan to Act as One 2.
They suggested to lawmakers, he said, that the remaining balance of P46 billion be included in the DA’s 2021 budget.
“We are hoping to get P132 billion next year, which is the barest minimum. But we are willing to go to at least P200 billion [instead of P284 billion],” he said.
Noting that “the President himself announced” support for the Plant, Plant, Plant program, Dar added, “agriculture is one of the sectors of economy that is key to Philippine economic recovery. There is a Presidential directive to fund the Plant, Plant, Plant program and increase the agriculture budget,” he added.