POST HARVEST MARKET DEVELOPMENTBy: Ariane Joy Coronel

PA 504

I. INTRODUCTION

PHILIPPINE CONTEXT

Among the priority development areas of the Philippine government are the following: Tourism BPO Mining AGRI-BUSINESS Logistics Ship-building Housing Electronics Infrastructure

AGRICULTURE AND FISHERIES SECTOR

The agriculture and fisheries sector provides food and vital raw materials for the rest of the economy.

As the sector grows and modernizes, it releases surplus labour to the industry and services sectors.

The sector’s development is therefore vital in achieving inclusive growth and poverty reduction.

LET US ASSESS THE PERFORMANCE OF THIS SECTOR:

Contribution to output and employment:Top contributors (as of 2009):

Region 4A (12.1%)Region 3 (11%)Region 6 (10%)Region 10 (8.2 %)Region 12 (8%)

LET US ASSESS THE PERFORMANCE OF THIS SECTOR:

Contribution of subsectors to economic growth:Fishery (1.21 %)Palay (0.40 %)Corn (0.31 %)Banana (0.22 %)Poultry (0.22 %)

AGRICULTURE AND FISHERY (WITH FORESTRY) PERFORMANCE AND CONTRIBUTION TO ECONOMY: 2004-2010

CONTRIBUTION OF SUB-SECTORS IN AGRICULTURE AND FISHERY GROWTH: 2004-2010

LET US ASSESS THE PERFORMANCE OF THIS SECTOR:

Contribution to global trade:Between 2004 and 2010, agriculture and

fisheries export rose from US$ 2.5 billion to US$ 4.1 billion Top exports in terms of value:

Coconut oil Fresh banana Tuna Pineapple Tobacco Seaweeds

VALUE OF PHILIPPINE AGRICULTURAL EXPORTS AND IMPORTS: 2004 AND 2010 (IN MILLION $US)

THE INCREASE IN CONTRADICTIONS – THE UNREALIZED FULL POTENTIAL OF THE SECTOR

Declining productivity and competitiveness.

Comparative advantage not fully exploited.

Elusive rice sufficiency.Increase in food commodities prices.Stagnant poverty headcount.

II. POST-HARVEST MARKET DEVELOPMENT

SUPPORT TO POST-HARVEST INDUSTRY

Different government and non-government institutions, state colleges and universities and big corporations undertake research and development activities on post-harvest handling.

The major research, development and extension arm of the government is the Bureau of Post-Harvest Research and Extension (Department of Agriculture).

POST HARVEST MARKET DEVELOPMENT

Generate, extend and commercialize appropriate and problem-oriented postproduction technologies and practices to reduce losses, improve food and feed quality and maximize the benefits to various stakeholders 

POST HARVEST MARKET DEVELOPMENT

Makes sure that farming and fishing communities become globally competitive characterized by dynamic and responsive postharvest technologies 

POST HARVEST MARKET DEVELOPMENT

The goal is to empower farmers and fisher folks by preserving and adding value to their produce through dynamic orchestration, research, technology promotion and policy advocacy.

Agricultural and Fisheries Modernization Act (AFMA / Republic Act 8435) 1999This law allocates approx. 20% of

Philippine budget to any post-harvest-related activities for 7 years up to 2015.

Is to be the blue print on how priority post-harvest facilities, farm-to-market roads, and other related infrastructure will be identified by DA-line agencies and partner LGUs.

POST HARVEST FACILITIES

Under AFMA, post-harvest facilities include, but not limited to threshers, moisture meters, dryers, weighing scales, milling equipment, fish ports, fish landing, ice plants and cold storage facilities, processing plants, warehouses, buying stations, market infrastructure and transportation facilities.

POST HARVEST MARKET DEVELOPMENT

Proper post-harvest handling and technologies would:reduce losses and improve the

quality of produce help the people establish their own

farm-level secondary handling and value-added processing businesses

provide more job opportunitiesempower and improve the lives of

farmers.

SOME POST-HARVEST TECHNOLOGIES IN THE PHILIPPINES

Grain (Rice and Corn)Drying MachineryRice Milling Machinery

SOME POST-HARVEST TECHNOLOGIES IN THE PHILIPPINES

High Value Crops (Fruits and Vegetables)Technologies which enhance the

quality of mango export technologies now being used by exporters

Technologies which reduce losses during non-refrigerated transport of produce

Fabrication of post-harvest equipment for more efficient operations

SOME POST-HARVEST TECHNOLOGIES IN THE PHILIPPINES

High Value Crops (Fruits and Vegetables)Developed the post-harvest

handling systems for fruitsDeveloped and improved village

level technologiesTechnologies to promote cut-

flower trade

SOME POST-HARVEST INFRASTRUCTURE FOR MARKET SUPPORT IN THE PHILIPPINES

Bagsakan Centers / Trading Centers

Fish Ports, Seaports Storage FacilitiesProcessing PlantsWarehousesFarm-To-Market Roads

III. CHALLENGES TO POST HARVEST MARKET

DEVELOPMENT

The Scenario: What Happens In the Field

Wide economic gap between farmers and businessmenMajor recipients of modern post-

harvest technologies are usually traders and processors.

Low adoption of improved post-harvest facilities The absence of strong linkage

between producers and the market limits the benefits that can be derived from them.

The Scenario: What Happens In the Field

Technical inefficiencies leading to post-harvest losses.

Insufficient post-harvest training and extension activities on other crops.

Weak information system.Failure of majority of farmers’

cooperatives.

The Scenario: What Happens In the Field

Small land holding of farmers, the small farm lot and the limited volume of harvest make ownership of agricultural machinery or crop processing facilities among small farmers difficulty.

Government and its Policies: To Blame?

Weak agricultural extension service.

Delay in the implementation of rationalization plans.

Incomplete implementation of the Strategic Agriculture and Fishery Development Zones (SAFDZs) and preparation of Integrated Development Plans (IDPs).

Government and its Policies: To Blame?

Limited investments on commodities with comparative advantage.

Limited investments on public goods.For instance, R&D (public good)

spending is currently at about 0.10 percent of overall agriculture spending.

Contradictory policies.For instance, Rice Policy.

Climate Change Vulnerability to weather risksEl NiñoLa Niña

IV. PROPOSED STRATEGIES TO ADDRESS ISSUES IN POST

HARVEST DEVELOPMENT

The government identified 3 major goals for the development of the agriculture and fisheries sector (PEDP 2011-2016)Improved Food Security and

Increased Rural IncomesIncreased Sector Resilience to

Climate Change RisksEnhanced Policy Environment and

Governance

GOAL 1: FOOD SECURITY IMPROVED AND INCOMES INCREASED

Raise productivity and incomes of agriculture and fishery-based households and enterprises. Diversify production. Complete the delineation of municipal waters for

better fishery resource management. Improve rural infrastructure and facilities. Develop markets and sharpen regulatory

competence. Strengthen Research, Development and

Extension (RD&E). Secure food availability and affordability.

GOAL 1: FOOD SECURITY IMPROVED AND INCOMES INCREASED

Increase investments and employment across an efficient value chain. Create job opportunities.Localize agricultural promotion and

development. Transform agrarian reform

beneficiaries (ARBs) into viable entrepreneurs.Scale-up microenterprises into formal and

viable SMEs through

GOAL 2. SECTOR RESILIENCE TO CLIMATE CHANGE RISKS INCREASED

Reduce climate change-related risks and the vulnerability of natural ecosystems and biodiversity.

Increase the resilience of agriculture communities.

Strengthen the agriculture and fisheries insurance system as an important risk sharing mechanism.

GOAL 3. POLICY ENVIRONMENT AND GOVERNANCE ENHANCED

Reaffirm the mechanisms and objectives of the National Convergence Initiative (NCI)

Adopt Managing for Development Results (MfDR) as a common approach among rural development agencies.

Implement budgetary reforms. Pursue PPP especially for infrastructure and

value chain development. Review critical legislation (i.e., AFMA,

Fisheries Code) and policy issuances (i.e., sugar trade).

LEGISLATIVE MEASURES

Pursue the Passage of a National Land Use LawThis is especially important in anticipation of

the end of the agrarian reform program and the subsequent opening of the land market.

Institute Reforms in the NFA The NFA Reorganization Act will further rationalize

grains-sector trading. Rationalize DA, DAR and DENR

The agriculture bureaucracy should be rationalized through the efficient and effective convergence and complementation of different agencies in concerned with agriculture.

LEGISLATIVE MEASURES

Work for a Food Safety and Food Labelling Law This measure puts in place:

A coordinated food safety and certification system,

A clearly define the functions and mandates of the agencies concerned,

A system for public laboratories to ensure the credibility of test results

Participation of food supply industries in the global food trade, among others.

Thank you!

REFERENCES:

Philippine Development Plan 2011-2016, (2011). “Chapter 4 – Competitive and Sustainable Agriculture and Fisheries Sector”. National Economic and Development Authority, Ortigas Center, Pasig City.

Tanchuling, Hazel. Rice Self-Sufficiency Bulletin, (Jan-June 2011). “From Ginintuang Masaganang Ani (GMA) Program to Agrikulturang Pnoy: An Initial Analasis. Rice Watch and Action Network (R1), Quezon City.

Philmech: Transforming the Future of Agriculture, http://www.philmech.gov.ph