Boost private-sector ventures in agri for reg’l integration - NEDA
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Photo Courtesy of Philsense
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In spite of being one of the top ten
rice producers in the world based on an IRRI (International Rice Research
Insitute) data, the Philippines still needs to sow more agricultural
investments to harvest agronomic competitiveness in the ASEAN economic
integration set next year.
The National Economic and Development
Authority (NEDA) supposes and suggests that the country is in need of more
private-sector investments which may come in the forms of direct investments or
through public-private partnerships (PPPs).
Socioeconomic Planning Secretary
Arsenio M. Balisacan said in his speech during the 2014 Asia Pacific
Agricultural Policy Roundtable at Pasay City that “one of the critical
constraints to agricultural growth is the absence or the lack of efficient
infrastructure system, particularly transport, power supply and communication
infrastructure.”
The public-private partnerships for
agricultural investments, according to Balisacan, would address constraints in
the agriculture sector, specifically in the lack of infrastructure. If these
agricultural constraints were addressed, it would “increase the cost of doing
business and prevents small farmers from taking advantage of the opportunities
in the rapidly growing areas, urbanized centers and foreign markets.”
He also noted that “as Southeast Asian
economies collectively gear up for regional integration, it is important to
understand how public-private partnership schemes could facilitate the
modernization of the agriculture sector and the revitalization of rural
economies.”
With all this in mind, Balisacan
admitted that the “government cannot do this alone.”
He furthered on the importance of
enhancing public-private partnership for agricultural development, particularly
for the infrastructure and value chain development and management, as
incorporated in the Updated 2011-2016 Philippine Development Plan, the
country’s macroeconomic blueprint.
“The interventions include irrigation
infrastructure, food-supply chain and postharvest services, production centers
for various farm inputs, fish-farming infrastructure, and market and trading
centers, among others,” Balisacan added.
Underscoring these investments on
agricultural development, Balisacan further mentioned that the private sector
investment, specifically in research, has been devoted to seed acquisition,
exchange, distribution, and improvement of genetic stocks of crops, forest
species, livestock, and fish using conventional and biotechnology applications.
These “private sector investments, may
be made in the production and distribution of improved seed and livestock,
production of fertilizers and pesticides, and the development of more efficient
management practices to optimize crop production.”
Moreover, Balisacan stressed the
crucial need of increasing productivity and production, expanding markets,
improving participation and value-adding activities, and building disaster
resilience in enhancing agricultural competitiveness.
As shown in a data from the National
Statistical Coordination Board, the growth of agriculture was sustained by the
sugarcane, cassava, corn and poultry sectors, in which the corn and poultry
production interposes a significant contribution the growth of the agriculture
sector.
Ultimately, these investment
opportunities in preparation for the ASEAN economic integration should target
the small farmers, which according to Balisacan, “continue to be the backbone
of the agriculture and rural sector, where many of the poor are found.”
Although the Philippines has received
improved economic grades which made our country earn several titles like the
“bright spot” in Asia, Balisacan confessed that this economic growth “has yet
to be felt by many of the poor, particularly small farmers.”
He said that to increasingly become
active market players, “the potentials of the sector to contribute to growth”
should be unleashed which “would mean empowering the marginal and poor
producers [farmers and fishermen alike].” (Sources:
neda.gov.ph, Business Mirror)
