October 5, 2010

 

Philippines launches US$1.14-billion food supply chain programme

 

 

The Philippine Department of Agriculture (DA), Department of Finance (DoF), and the Land Bank of the Philippines (Landbank) on Monday launched a PHP50-billion (US$1.14 billion) food supply chain programme to support the government's campaign for food sufficiency and higher productivity.

 

DA secretary Proceso J. Alcala, DoF secretary and Landbank chairman Cesar V. Purisima and Landbank president and CEO Gilda E. Pico signed the memorandum of understanding (MoU) for the programme at the Landbank Plaza.

 

Landbank has made available PHP50 billion (US$1.14 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 programme aims to raise farm incomes since the fund may be used to improve value, with farmers improving the quality of their products.

 

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

 

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

 

Among the projects that will receive initial funding are integrated corn production and hog fattening, integrated broiler production and processing.

 

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 PHP550 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 PHP242.5 million in the pipeline for broiler and corn production, which will involve 1,000 contract growers.

 

For fish production, only PHP45 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.