The BusinessWorld Insight forum, themed "Growing Food Security Through Agribusiness," was held at Chardonnay by Astoria in Pasig City last Thursday. The event aimed to discuss ways to strengthen the country's food security through agribusiness.
The keynote address was delivered by Dr. Lionel Dabbadie, Philippine Representative of the UN Food and Agriculture Organization (FAO). In Panel 1, "Strengthening Farm to Market Systems," speakers emphasized the importance of efficient supply chains, farm consolidation, and addressing the country's archipelagic geography.
Undersecretary Mary Jean Pacheco of the Department of Trade and Industry's Supply Chain and Logistics Group highlighted the role of efficient supply chains in reducing logistics costs. Dr. William Dar of the ASEAN Business Advisory Council emphasized the need for farm consolidation for efficient farming, processing, manufacturing, and marketing. Danilo Fausto of the Philippine Chamber of Agriculture and Food, Inc. pointed out the challenges posed by the country's geography and land conversion to non-agricultural uses.
Panel 2 focused on "Financing Agriculture" and featured speakers who discussed the importance of financing for the agricultural sector. Emmalyn Guinto of the Agricultural Credit Policy Council highlighted the need for innovative financing solutions for farmers.
The event sponsor, Aboitiz Foods, was noticeably absent from the panel discussions despite having several products and brands in the agricultural sector. However, the company's absence did not detract from the valuable insights shared by the speakers.
The largest firms in agribusiness, excluding food manufacturing, are San Miguel Foods, followed by a Thai company and Tagum Agri Dev’t Co., Inc. or TADECO. Farming should be considered a regular business, rather than an extension of government social welfare programs, to promote efficiency and innovation.
Corporate farming and agribusiness can play a significant role in modernizing Philippine agriculture by increasing productivity, reducing costs, and promoting sustainable farming practices. The use of machines, biotechnology, and science-based farming methods can improve labor productivity and reduce waste.
The Middle East war has led to increased prices of fertilizer products, which are essential for modern agriculture. The use of greenhouse structures for hydroponics or multi-layer planting can be costly initially, but can provide benefits in terms of crop yield and quality.
Hydrocarbons and fossil fuels, including oil, gas, and coal, are necessities in modern farming and ensuring food security. The agriculture sector should not adopt anti-fossil fuels or anti-CO2 narratives, which can hinder innovation and modernization in agriculture.
The sector should instead advocate for the removal of the oil excise tax, farm consolidation, and corporate farming. Del Monte Corp.'s pineapple farming model in Mindanao is a good example of how corporate farming can promote efficiency and innovation in agriculture.
