Towards a

Modern &
Industrialized
Dr. WILLIAM D. DAR
President, InangLupa Movement

6.50
5.95

6
4.82

5
4

3.75

3.60

3.30

2.85

3
2

2.11

1.89
0.80

1
0
C. Aquino

Ramos

Estrada

GDP growth rate

Arroyo

BS. Aquino

AHF growth rate

Performance of Agriculture for the period 1986-2014 was not impressive.

The agriculture sector grew by an average of

2.83%.

(Philippine Statistics Authority

and Business World)

The Framework for a

New Philippine Agriculture

Vision
A Modern and Industrialized
Philippine Agriculture

4 Pillars

4 Sustainable
Development
Goals*

4 Major
Objectives

- Inclusive

- Food Sufficiency

- Productivity

- Science-based

- Economic Security

- Profitability

- Resilience

- Nutritional
Sufficiency

- Competitiveness

- Market-oriented

- Environmental
Security

- Sustainability

Enabling Strategies
Plans and Programs*
Legislative Agenda
* Summation of all efforts to achieve food security

Go to 4x4x4
framework

Cordillera
Administrative Region

Quick Stat

12.36 %
13 out of 100 children
were classified as malnourished
Source: National Statistical Coordination Board, 2012

4.8 %
15.3 %

Source: Labor Force Survey, 2014

17.5 % of all families

0.3 % families experienced hunger

(65,516 households = 373,740 people)

(1,005 out of 335,000 families)

Source: National Statistical Coordination Board, 2012

Source: Annual Poverty Indicator Survey, 2011

Climate Change

&

Environmental
Degradation
Global Climate Risk Index

Philippines ranked
based on data from 1994-2013
Source: German Watch

Philippines total
Source: UNDP

= 13.2 M ha

affecting
33 million Filipinos

Over the course of 20th century

Philippines
dropped
from 70 % down to 20 %
Source: Journal of Tropical Forest Science

CARs Top

Agricultural Commodities (2013)

Production Growth
Rate (%)

Share to Total
Agricultural Output
of the Region (%)

Rank of CAR in the

National Production
(%)

Palay

1.48

26.11

13th

Corn

7.52

11.83

8th

Cabbage

0.60

5.08

1st

Hog

3.36

12.23

15th

Chicken

1.38

2.89

15th

Commodity Name

Source: Philippine Statistics Authority, 2013

How can we

Modernize
&Industrialize
Agriculture

our

Agribusiness

pushes economic transformation

Linking agriculture to manufacturing is key and must be
properly tied up with both domestic and export market.
This can be done through corporative model strategy.

Corporative
Model

Contract Growing
Products

Company

Benefit System

chicken
broiler and
layer

Provides:
building plans (design and specifications)
feeds and nutrition (medicines and vaccines)
technical support & info/recording materials
delivery and hauling services
competitive payment scheme

banana,
pineapple,
& papaya

Provides:
technical assistance
free planting materials
Full participation of growers from production to
harvest

coffee

Supplies superior coffee clones at cost

Provides extension support
Buys back the coffee beans at prevailing world
market price

Contract Growing
Products

Company

Benefit System

cacao

tobacco

hybrid rice

Provides:
financial support in the form of cash advances
input and extension support

hybrid corn

Assists credit for small growers with Land Bank of

the Philippines
Supplies high yielding planting materials
Provides extension support
Guarantees secure market for the cacao beans

Provides extension support

Advances fertilizers and pesticides to farmers
short of cash and also SL Agritech hybrid seeds
Buys back the palay at P2.00 - 3.00/kg higher than
prevailing market prices
Reduces operational costs
Provides extension support
Guarantees a pre-determined price for produce

catalyst to drive
Agribusiness: economic transformation
Transforms & upgrades agriculture from
traditional farming to a globally competitive
agribusiness sector
Phase II
2018-2021
Phase I
2014-2017
Focuses on rubber,
coconut, mangoes,
coffee, cacao, banana,
palm oil; other high
value crops
Attends to supply
chain gaps

Strengthens agroprocessing & its linkages to

production ---R&D;
strengthens supply chains,
upgrades commodity
clusters; provides access to
technologies, finance;
regulatory & certification
system

Phase III
2022-2025
Deepens
participation in
Global Value Chain
(GVC)
Presents the
Philippines as an
agribusiness regional
hub

(Source: RM Aldaba, DTI)

&Farm Mechanization

Irrigation

Total irrigated areas and level of farm mechanization can

substantially increase crop production and attain costefficient operations, resulting in better incomes for farmers.
Share of the Service Area in the total Irrigable Area

Comparison of Rice Statistics in

Philippines, Thailand and Vietnam (2012)

Philippines

Rice
Harvested
Area*

Irrigated
Rice Area

Rice
Production
(Paddy)

Population

Rice yield

Million ha

Percent

Million tons

Million

Average
ton/ha

4.7

35%

18.0

100

3.8

> 60%

30.6

88.8

2.8

97%

44.2

64.5

5.7

Thailand

10.8

Vietnam

7.7

*Including double- or triple-cropped irrigated areas (IRRI)

Mechanization

cuts production cost

Mechanization reduces labor cost in rice, corn and sugar

production
Note: Labor cost is one of the highest costs of palay production
Undoubtedly, the Philippines lags behind in farm mechanization
versus its Asian counterparts.

Japan
7 hp/ha

S.Korea
4.11 hp/ha

Vietnam
1.56 hp/ha

China
4.10 hp/ha

Philippines
1.02 hp/ha
(PhilMech, 2012)

More livelihood,

employment opportunities reduce poverty

A modern and industrialized countryside will provide more
livelihood and employment opportunities to millions of
Filipinos in the rural areas.

Population, Labor Force

and Employment and
Wage Rates Indices

Increase Budget

for Agriculture

In 2014, the countrys GDP amounted to P7.16 trillion,

and the GVA in agriculture totaled P712.5

billion.

Macroeconomic
Growth Indicators

(value at constant 2000 prices)

Top Philippine agricultural exports

Coconut (oil) 26%

Fresh banana 8.7%

Tuna 5.8%

Seaweeds & carrageenan 3.9% Tobacco manufactured 3.7%

Fertilizer manufactured 3.3%

Milk & cream products 3.2%

Pineapple & products 6.3%

Fresh mango 0.3%

Other Philippine agricultural commodities

that have export potential

Cacao

Coffee

Rubber

Palm oil

Peanuts & mixed nuts

Prawns

Papaya

Healthy drinks

Raw sugar

National

Climate Change Action Plan

1

Food security

Water sufficiency

Climate-friendly
industries & services

Environmental &
ecological stability

Sustainable energy

Human security

Knowledge &
capacity development

Total expenditures

in

2014

P112 B

Agriculture
2015

P85 B

Share of Agriculture in the National Government Expenditures

overnment should nurture

the hand that feeds the
nation, so farmers and fishers can
continue doing so, lest we all starve

Towards an inclusive, science-based, resilient and

market-oriented Philippine agriculture

Thank you!
Email me at:

w.dar38@yahoo.com
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