P50 Billion deal for Food Supply Chain

This might be good news for Filipino farmers.

P50-Billion Food Supply Chain Deal Signed 

By MARVYN N. BENANING

October 4, 2010, 8:15pm

MANILA, Philippines — The Department of Agriculture (DA), Department of Finance (DoF), and the Land Bank of the Philippines (Landbank) on Monday launched a P50-billion food supply chain program to support the government’s campaign for food sufficiency and higher productivity.

Agriculture Secretary Proceso J. Alcala, Finance Secretary and Landbank Chairman Cesar V. Purisima and Landbank President and Chief Executive Officer (CEO) Gilda E. Pico signed the memorandum of understanding (MoU) for the program at the Landbank Plaza.

Landbank has made available P50 billion to support the financial needs of various enterprises engaged in crop, livestock, and fishery production.

The Fund can be tapped for working capital and the acquisition of processing equipment and other fixed assets.

With these facilities, Landbank and its partners believe farmers and fishermen, along with animal breeders, can raise their yield and improve efficiency.

As conceived, the food supply chain program aims to raise farm incomes since the fund may be used to improve value added, with farmers improving the quality of their products.

Under the program, key players in the food system, from producers, processors, consolidators and other players may avail themselves of funds from the program.

The fund may also be used to strengthen farmers’ organizations and enable them to match the requirements of anchor firms.

Among the projects that will enjoy initial funding are integrated corn production and hog fattening, integrated broiler production and processing, banana production and export, oil palm production and palm oil refining and vegetable production.

For integrated corn production and hog fattening, the initial anchor processors and cooperatives involved are Biotech Farms, Inc., Marcela Farms, Inc. Sorosoro Development Coop, Limcoma Multi-Purpose Coop and Catmon Multi-Purpose Coop.

A total of P550 million will be invested in corn production and contract growing for hogs for the benefit of more than 3,000 corn farmers and 8,000 contract growers.

Anakciano, Inc. will be the anchor firm for integrated broiler production, with P242.5 million in the pipeline for broiler and corn production, which will involve 1,000 contract growers.

For banana production and export, a total of P940 million will be earmarked, with Sagrex Food Corp. and Fermon Corp. as anchor firms and exporters.

Agumil Phils., Inc. will serve as processor for oil palm production and palm oil refining.

No less than P1.5 billion is needed by more than 6,000 oil palm growers.

AgriNurture Phils., Inc., will be the main player in vegetable production for both the local and foreign markets. Vegetable production requires P20 million.

For fish production, only P45 million is required for local and overseas markets. Sta. Cruz Seafoods, General Tuna Corp./Century Pacific Group and APAMI are seen as possible anchor firms for the venture.