While most of the world was under lockdown, farmers and fishermen were among those not covered by lockdown restrictions so they can supply food required by citizens who stayed home to avoid the spread of Covid-19. In the Philippines, the government even classified them as “frontliners,” on a par with those working in health-care facilities, so they can go out to their farm or venture out to sea to help the government iron out kinks in the supply chain. Filipino farmers heeded the call of the government to continue producing food even as they also faced uncertainty due to mobility restrictions that prevented some traders from immediately transporting food items to urban areas.
Farm production was relatively uninterrupted in the Philippines even as demand for many food items, including those served by local restaurants, fell drastically due to the shift to home-cooked meals (See, “Shift to home-cooked meals boosts RFM income in H1,” in the BusinessMirror, July 30, 2020). Also, the decision of households to tighten belts and cut the purchase of food items considered unnecessary while the country was under lockdown contributed to the fall in demand for farm produce like sugar. These factors resulted in a glut of some food items and consequently pulled down the farmgate prices of some agricultural products.
Exacerbating the demand situation is the fact that many workers lost their jobs while the country was under lockdown, according to the latest data released by the Philippine Statistics Authority. While unemployment rate eased to 10 percent in July compared to the record-high 17.7 percent in April, the figure means that more than 4.5 million Filipinos were unemployed during the period (See, “As jobless rates stay high, growth ‘limping,’” in the BusinessMirror, September 4, 2020). The loss of livelihood forced these jobless workers and members of their families to reduce consumption and cut spending on certain items, including food.
One of the proposals pitched by local producers to ease the supply glut is to temporarily suspend imports (See, “Poultry raisers urge DA to halt chicken imports,” in the BusinessMirror, May 12, 2020). Sugar millers belonging to the Philippine Sugar Millers Association are also pushing for a higher export quota from the United States as local sugarcane production in crop year 2020-2021, which kicked off on September 1, is expected to hit a four-year high (See, “Sugar millers seeking higher export volumes for US,” in the BusinessMirror, August 28, 2020). Increasing the sugar quota of the Philippines, which is currently at 136,201 metric tons (commercial weight), is expected to help ease the supply glut.
The government may also consider the proposal put forward by the Philippine Chamber of Agriculture and Food Inc. The group said the Department of Agriculture should consider giving food subsidy to medical frontliners and jobless Filipinos to help boost demand for agricultural products (See, “Govt told: Give food subsidy to frontliners, jobless Pinoys,” in the BusinessMirror, September 7, 2020). We urge the government to consider this proposal and include medical frontliners and those belonging to the so-called Bottom 30 who lost their jobs to get food subsidy during the pandemic.
Giving food subsidy to those who need it the most will be beneficial for Filipino farmers, as this would create a ready market for their crops. Government can consider partnering with the private sector, which could help subsidize food packs for the poor and their own employees.