Philippine Agriculture

Re-energizing Philippine
Agriculture
for the ASEAN Economic
Integration
WILLIAM D DAR
Director General, ICRISAT
ASEAN Economic Community

(AEC) 2015
Free trade + effective policies =
promise of inclusive growth and development
Is Philippine agriculture ready for

AEC?
The Philippine agriculture

scenario
GDP contribution of agriculture
Net food exporter to importer

since late 1980s
Important to food security and
economy
Main source of domestic foods

Employs 11.8 million or 35.1% of total
workforce
Poverty in rural areas
11% of GDP in 2012

From 20 to 30% in last two decades
Half of 100 M live in rural areas

80% of countrys poor
Dominated by smallholder
agriculture
Performance of Philippine
agriculture
Daunting task producing more food

from less land and water
Imports as alternative food sources
World price spikes jeopardize food security

Threatens livelihoods of smallholder
farmers
Rice production serves to

meet food security goal
Rice, one-third of harvested area (2011)

Followed by coconut and corn; far behind,
banana
and sugarcane
Crops account for 60% of agricultural

GVA
Shift to high value crops crucial
Trade in agricultural
commodities
Exports
growing,
imports
growing
faster
Imports,
mostly driven
by rice, soared
in 2008
95% selfsufficient in rice

(2011)
Top export
earner, coconut
oil (26%)
100% selfsufficient in
corn
AEC regional integration

pillars
Challenges under AEC (1)
Single market and production base

pillar
Food, agriculture and forestry are priority

sectors
Removal of tariffs to boost agricultural trade
Harmonization
of quality
management
systems for
food safety
Review of
Philippines
progress in meeting commitments
under AEC
45.7% in AEC scorecard; average ASEAN
Challenges under AEC (2)
Factors limiting gains from

globalization
Low investments in infrastructure;

Lack of political will to implement a sustained
and credible fiscal reform program;
High transaction costs; and
Lack of a coherent industrial policy.
Current strategy highly conservative
Prioritizes traditional crops

Production targets only close domestic supplydemand gap
Policy protects domestic markets with tariffs
and non-tariff barriers.
Import substitution agricultural development
Good governance, committed

leaderships with political will for
Major opportunities for Phil

agriculture (1)
Creating a diversified, dynamic

and competitive agriculture
sector
Overcoming non-tariff barriers by
modernizing agricultural
enterprises
More capital, better input use and

technology packages
Enhanced regional cooperation in

dismantling
non-tariff barriers
GAP, GAHP, GHP, GMP and HACCP
Major opportunities for Phil

agriculture (2)
Technology transfer and farmers

access
to knowledge and scientific
research
Collaborative R&D among membercountries

Global networks in agricultural S&T
Promoting efficiency and

competitiveness in agriculture
Freer flow of capital and investments

Expanding production to take advantage
of potential economies of scale
Greater market access and better
processing facilities and roads
Information and transport services
A New
Philippine Agriculture
Roadmap under
the AEC Platform
Towards an
inclusive, sciencebased, resilient
and marketoriented Philippine
agriculture
Are we ready to take advantage

of,
or even just survive and compete
under the AEC regime?
Rice production in 2013 = 18.44 M tons,
8% less than FSSP target of 20 M tons.
Resilience in production of food staples to
the impacts of climate change has yet to
be addressed.
Agricultural and food policies must adopt
a holistic approach.
Enabling strategies for a holistic,

agriculture-led economic
growth
1. Technology development
. Improves yield, quality and value of produce

. Prevents losses and conserve the environment
. Results in improved productivity, profitability,
competitiveness and sustainability
2. Public and private investments

. Physical infrastructure, rural credit, human capital
and institutions essential for agricultural
modernization
3. Inclusive Market-Oriented Development

(IMOD)
. Linking farmers and small and medium
enterprises (SMEs) to markets
. Enhanced public-private sector collaboration
4. Reforms in governance
Focus areas under an AEC

regime (1)
1. Balance between rice self-sufficiency and
crop diversification
. Self-sufficiency in rice production along with
diversifying into high-value crops with
comparative advantage
2. Sustainable resource management

. Land use plan, soil and commodity mapping,
water management
3. Linking farmers to markets (IMOD)

. Giving farmers access to innovations designed for
the poor, to help them connect to markets
. Building their own resilience rather than creates
dependency
IMOD: A new approach

Inclusive Market-Oriented Development (IMOD)
Climate change adaptation

for smallholder, rainfed
agriculture

regime (2)
4. Developing climate-smart agriculture
. Increasing stocks of livelihood capital and
biophysical resilience of the system
5. GAP, sanitary and phytosanitary standards,

and HACCP compliance
. Harmonize standards; develop exporters
capability to conform to SPS and NTBs
6. Innovative use of ICT in knowledge and

information sharing
. Leveraging the power of
ICT to support smallholders
in processing, marketing
and realizing market
opportunities

regime (3)
7. Increase in public investment to
attract
private sector participation
More public investment to attract
more flow of private capital to ensure
sustainable economic growth by
increased volumes of trade
8. Enhanced role of youth in

agriculture
Promoting profitable and modern
productivity augmenting livelihood
projects
Education system to address agriinnovations, entrepreneurship and
agri-business, etc.
9. Championing appropriate
Sustainable and inclusive

growth
of smallholder agriculture
Investments in smallholder agriculture
Can lift people from poverty and food insecurity

Under AEC, must become active players in the
supply chain
Smallholder farming can transform

rural landscape
A new and sustainable agricultural revolution

Needs policy environment to support and nurture
them
Can become commercially-oriented and profitable
farming
Food security for all

24% of families (4.3 million households)
are hungry due to rising food prices
How do we feed the projected 150 million
Filipinos by 2050?
Under the AEC, food security through
regional trade and cross country
cooperation to raise productivity must be
our top priority.
A Five-Step Plan to Feed the World

(National Geographic Magazine)
Step 1: Freeze agricultures footprint
Step 2: Grow more on farms weve got
Step 3: Use resources more efficiently
A Five-Step Plan to Feed the World

(National Geographic Magazine)
Step 4: Shift diets
Step 5: Reduce waste
Feeding the hungry is not a

need,
but a moral imperative.
We have to make Philippine
agriculture competitive.
Thank
you!
ICRISAT is a member of the CGIAR Consortium

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Re-energizing Philippine

ASEAN Economic Community

Is Philippine agriculture ready for

The Philippine agriculture

GDP contribution of agriculture

Net food exporter to importer

Main source of domestic foods

Poverty in rural areas

11% of GDP in 2012

Half of 100 M live in rural areas

Daunting task producing more food

Imports as alternative food sources

World price spikes jeopardize food security

Rice production serves to

Rice, one-third of harvested area (2011)

Crops account for 60% of agricultural

Shift to high value crops crucial

95% selfsufficient in rice

AEC regional integration

Challenges under AEC (1)

Single market and production base

Food, agriculture and forestry are priority

45.7% in AEC scorecard; average ASEAN

Challenges under AEC (2)

Factors limiting gains from

Low investments in infrastructure;

Current strategy highly conservative

Prioritizes traditional crops

Good governance, committed

Major opportunities for Phil

Creating a diversified, dynamic

More capital, better input use and

Enhanced regional cooperation in

GAP, GAHP, GHP, GMP and HACCP

Major opportunities for Phil

Technology transfer and farmers

Collaborative R&D among membercountries

Promoting efficiency and

Freer flow of capital and investments

Are we ready to take advantage

Enabling strategies for a holistic,

. Improves yield, quality and value of produce

2. Public and private investments

3. Inclusive Market-Oriented Development

Focus areas under an AEC

2. Sustainable resource management

3. Linking farmers to markets (IMOD)

IMOD: A new approach

Climate change adaptation

Focus areas under an AEC

5. GAP, sanitary and phytosanitary standards,

6. Innovative use of ICT in knowledge and

Focus areas under an AEC

8. Enhanced role of youth in

Sustainable and inclusive

Investments in smallholder agriculture

Can lift people from poverty and food insecurity

Smallholder farming can transform

A new and sustainable agricultural revolution