1 month ago
15
Z-FACTOR - Joe Zaldarriaga - The Philippine Star
February 6, 2025 | 12:00am
With geopolitical uncertainties shaking economies globally, nations must strengthen local industries and build resilience to withstand trade tensions and supply chain disruptions.
In the Philippines, the agriculture sector is an underutilized opportunity. Despite its huge upside potential, data showed that its economic contribution is shrinking as reliance on imports continues to grow.
The Philippine Statistics Authority (PSA) reported that in the last quarter of 2024 alone, agriculture and fisheries production decreased to around P484 billion from P494 billion in the same period of 2023. The decrease was the third straight quarter of contraction in 2024 and led to an overall decline of around two percent in the sector’s output for the year. Agriculture, forestry, and fisheries contributed around eight percent of the total gross domestic product (GDP) in 2024 – lower than the 8.6 percent share in 2023.
Reports said that this was primarily attributed to the substantial damage caused by natural calamities and the El Niño weather phenomenon characterized by hotter temperatures and decreased rainfall.
This underscores the urgent need for stronger investment and policy support in agriculture- not just to enhance resilience, but more importantly- to drive long-term growth. Strengthening the sector is key to ensuring long-term food security, addressing food inflation, and improving the economy.
Admittedly, accelerating the development of the agriculture sector is a tall order but not impossible, especially with the support of the private sector.
Through the introduction of innovations and new technologies, the private sector can collaborate with the government to embrace modernization and address the problem of underinvestment- which has long been a problem stifling the growth of agriculture.
The rising demand for organic and local products presents a timely opportunity to revitalize the sector, making it more sustainable and resilient. Beyond driving economic growth, a stronger agriculture industry can also elevate the Philippines’ global reputation with world-class produce.
A prime example is Carmen’s Best expansion into fresh milk production- sourced entirely from local dairy farms. The latest venture of the renowned local gourmet ice cream maker illustrates just how agriculture can be revamped to become sustainable and self-sufficient, especially since 99 percent of the country’s milk requirements are imported.
This type of investment is exactly what the Philippine agriculture sector needs- businesses that integrate sustainable practices while strengthening domestic production to reduce dependency on imports and manage risks from global uncertainties.
According to the National Dairy Authority (NDA), the country’s milk consumption is expected to rise to 1.8 million tons in 2029 from one million tons in 2018. Sourcing milk from local dairy farms and investing in high-quality dairy production is essential not only in reducing reliance on imports but also creating a more resilient supply chain.
Agriculture Secretary Francisco Tiu Laurel Jr., said the dairy sector is a “sunrise industry,” with the increased involvement of major investors and even international players.
Carmen’s Best’s expansion into milk products serves as a testament to the country’s capability to produce world-class dairy- as long as the right support systems are in place.
Of course, this expansion would not have been possible without the necessary investments in modernized milking facilities, cold storage, and transportation to ensure high standards. The good news is that, with enabling policies and streamlined regulations, similar initiatives can also be replicated across other agricultural products.
Developments such as these also serve as an open invitation for private companies to take a more active role in uplifting local agriculture. By prioritizing local produce, investing in research and development, and creating an enabling market and regulatory environment – the government can propel the agriculture sector to new heights for the benefit of the country.
It is high time for an agricultural renaissance. With the right investments and policies, farmers and agribusinesses can pave the way toward a self-sufficient, resilient, and globally competitive agricultural sector- one that serves as a cornerstone of economic growth and food security for years to come.
