Agriculture exec bares plans to expand export market of high-value crops

The Manila Times

Agriculture exec bares plans to expand export market of high-value crops  Agriculture Undersecretary for High Value Crops Cheryl Marie Caballero discusses plans to expand the export market for high-value crops with P10 billion in funding for next year. The official said during an interview at The Manila Times Newsroom that they would maximize the current trade agreements with other countries.  Subscribe to The Manila Times Channel - https://tmt.ph/YTSubscribe    Visit our website at https://www.manilatimes.net    Follow us:  Facebook - https://tmt.ph/facebook   Instagram - https://tmt.ph/instagram   Twitter - https://tmt.ph/twitter   DailyMotion - https://tmt.ph/dailymotion    Subscribe to our Digital Edition - https://tmt.ph/digital    Check out our Podcasts:  Spotify - https://tmt.ph/spotify   Apple Podcasts - https://tmt.ph/applepodcasts   Amazon Music - https://tmt.ph/amazonmusic   Deezer: https://tmt.ph/deezer   Stitcher: https://tmt.ph/stitcher  Tune In: https://tmt.ph/tunein   #themanilatimes  #tmtnews  #agriculture #farming

Transcript

00:00Good day and welcome to another episode of Newsroom by the Manila Times.

00:11For this episode, we will be discussing the potential of the high-value crops industry

00:16in the Philippines in boosting economic growth.

00:20So for our research person for today, we will be having Undersecretary Cheryl Natividad

00:26Caballero from the Department of Agriculture High-Value Crop Development Program.

00:32So for today, I hope that all of you will be able to realize that besides rice, there

00:39is more potential in high-value crops.

00:42So with me is Janine Alexis Miguel, our reporter who covers the trade and agriculture beat

00:50and yours truly, Conrad Cariño, Special Sections Editor.

00:55Magandang hapon po, Conrad, ating mga kasamahan, the partners and the viewers of Manila Times.

01:04Thank you for the invitation.

01:06First of all, please give us a situation on the country's high-value crop industry.

01:12The Philippines has always been regarded as one of the sources of coconuts.

01:22I think we still have that record of being the country that has the highest number of

01:28standing trees.

01:30So for the high-value crops, coconut is always an export winner for the country.

01:36Second is in terms of the opportunity steal for our bananas, these are basically exports

01:44from the multinational companies and carried on also by smallholder banana farmers.

01:52So that is in our export list.

01:56There are also areas wherein we are working on for additional crops that includes pineapple,

02:04which is another export, mostly by multinational companies to various parts of the country.

02:11We have also increasing support to re-establish our export for mangoes now that we're able

02:21to again have a market access in Australia and several companies from the Philippines

02:29are already exporting mangoes in Australia as well as other ASEAN countries where we

02:36can do value addition for banana.

02:39So there are end mangoes, of course.

02:43So what the high-value crops does is to look at the export potential from developing the

02:51fresh produce and at the same time looking at ways to do value addition so we can address

02:58the post-harvest losses and additional revenue when it comes to adding value to a raw product

03:05which is normally the exports that we have as of now.

03:09Ma'am Yusek, in line with the current crop situation that you've mentioned, Agriculture

03:17Secretary Chola Ural has allotted Php7 billion for crop diversification.

03:24How would the DA or your office intend to spend this amount or will there be a specific

03:31crop that you will promote?

03:33Yeah, the crop diversification component of the Rice Competitiveness Enhancement Fund,

03:39it's part actually of the RCEF.

03:42It's an excess money from the tariff collected out of the tariffication law and Php7 billion

03:51was actually, we currently have around Php700 million for 2024.

04:01And in the crop diversification strategy, of course, it is other crops after rice.

04:08So for the high-value crops, we are positioning those that can be planted in upland rice farming

04:16communities or rain-fed communities.

04:19We initially are looking at mung bean and, of course, peanuts which would help rejuvenate

04:25the soil or have something to improve the quality of the soil.

04:31So that is where crop diversification for legumes is a priority.

04:37Second is also to look at integration or complementation of lowland vegetables.

04:46So we are looking at the inclusion of string beans, eggplant, and in some cases where the

05:00soil is most conducive, the expansion for onion and garlic and ginger will also be integrated.

05:11So what we are doing at the High-Value Crops Program is to work with our regional counterparts

05:19under the DA and see what are the production practices that can be replicated or that can be

05:27strengthened and carried over in those areas that were identified by the rice program as recipients.

05:37Among those crops that you've mentioned, string beans, eggplant,

05:40have you identified what is the most profitable crop among those?

05:47It varies because, number one, most of the vegetables and legumes or spices rather are

05:59dependent on whether it's rainy season or when it's dry season.

06:06So profitability comes in terms of the ability of our farmer to optimize the use of the land.

06:14So that's number one.

06:16In the case of garlic now, it's hitting like P400 in retail.

06:23So that can be a good area to look into, considering that we only produce around 3%

06:30of that and 97% of the production comes from the Ilocos region.

06:35So we are looking at that mechanism to encourage the planting of garlic and value addition.

06:47So it cannot compete with the imported garlic because it's much, much cheaper.

06:54But in terms of pungency and quality, that is the value proposition

06:58we are looking at for crops like that, which are not as competitive in terms of pricing,

07:05but it is much more pungent in terms of its characteristics and quality.

07:11So again, high-value crops can look at it in terms of, one, our ability to address the

07:18lack of supply at the onset due to seasonality, or two,

07:27do product value addition and processing.

07:29So that is where the farmer can benefit most.

07:33Yusek, how about exports?

07:35Are we looking at additional crops, especially with the addition of new free trade agreements?

07:43Yeah, there are two ways of looking at it.

07:48Of course, we have several market access and trade agreements with various countries.

07:54And in the context of high-value crops, we'd like to optimize our ability to meet

08:00and supply the needed requirements.

08:02So strategically, the ability of the country to produce and supply sustainably

08:10will boil down on the volume.

08:16So that is where we are working on in terms of production and quality planting materials.

08:24There are also other crops which are non-traditional, I would say,

08:28but are emerging, and it has good potential in the market.

08:33I was in a discussion with the private sector group in France,

08:45and they've mentioned ube, or the purple yam.

08:49So purple yam is something that is very endemic to us.

08:56It has the most potential because of its quality, its color, which is a natural colorant,

09:03and it is also a natural binding agent for other ingredients.

09:09So in the case of ube, in the 1990s, I think there were projects that were supposed to develop

09:19tissue culture planting materials for ube in Bohol.

09:23So I don't know, that is the white aromatic ube that they have in Bohol.

09:34However, as we see the products or produce of indigenous peoples, our IP communities,

09:43ube is endemic to them.

09:44So as close as in Manila, we have pampanga and rizal.

09:52So this is a new emerging crop that can really be a big potential for export.

10:00But again, we have to address the requirements for planting material,

10:06the package of technology, and the farm practices and post-harvest that will support it.

10:13So it has to be, I would say, more focused and more systematic.

10:20So we would be able to hit the success rate for export for these emerging commodities, of course.

10:29You're talking about planting materials.

10:31Now, what I have observed from the agencies under the DA and other research institutes

10:37in the Philippines, we do not have any research institute for high-value crops like ube.

10:43So how does the DA intend to address the issue of research and development

10:50so that we can increase the yields and quality of the high-value crops you mentioned?

10:55Because from what I have seen, rice has been given the most research in the Philippines,

11:01but the other crops get very little.

11:04So how do you address that issue?

11:06Yeah.

11:06Currently, we have to live with whatever we have because, of course, for 2025,

11:15Secretary Franny Chur-Laurel actually prioritized the production of quality planting materials.

11:24And so investments will happen in the tissue culture production,

11:29experts training, and also the ability of the Department of Agriculture to provide quality

11:37planting material by having these nurseries to complement tissue culture production

11:41because it has to be properly coordinated.

11:44So currently, we are working with our research stations under the Department of Agriculture.

11:52So these are the Regional Integrated Agricultural Research Centers or REARCs.

11:59And the case in point is for potato, we have a tissue culture facility in Bukidnon.

12:07So this is where we will beef up more support so they can produce more planting materials for

12:16your table potatoes or your marble potatoes.

12:20Collaboration also happens with the industry partners.

12:24So I would mention a particular partner here, the Universal Lumbina Corporation,

12:29which has been consistently supporting our farmers with quality planting material.

12:35And this is one way also of capitalizing on their access to technologies and support

12:43so we can enhance the regional research stations that we have.

12:49Plus, to beef up also the crop production centers under the, or revitalize rather,

12:56because in the past, they were not properly funded.

12:59So these are the crop production centers under the Bureau of Plant Industry.

13:03So we have, I think, around five of them.

13:06And of course, at the regional level, we have REARCs in all regions.

13:12So systematically, these have to be connected and properly supported so we can assure the

13:20farmers of a reliable and quality planting material.

13:24So that's where we are at current.

13:27So that means you mentioned Universal Lumbina.

13:31So that means the DA is also open to collaboration in the private sector.

13:38Yeah, we also have collaboration with Nestle.

13:42In fact, the planting materials and projects that they have under GIZ is located in our

13:50research stations.

13:52And we see the role of the private sector here, especially in scaling up

13:58the investments and at the same time, capturing larger market share and making sure on our

14:07part that our farmers are mainstream in their value chain.

14:14Janine?

14:15On another matter, farmers have been, there are reports of some farmers that their crops

14:23sometimes on the issue of oversupply.

14:26If not oversupply, there's a shortage of some crops.

14:30So how would the department address this concern?

14:34Yeah, I think the ability of the government, particularly the department, to look at the

14:41supply and demand assessment is also dependent on the ground level data.

14:49So the ground level data also comes from the local government units.

14:54And this is where we had discussions on how to automate the reporting process because

15:00there are report officers or the agricultural extension workers at the local level, which

15:06the high value crops supports.

15:09So we provide some incentives to them in exchange of the information that they have to submit

15:15to us.

15:16So that is not 100% efficient because they are still paper based.

15:23So improvement in terms of automation and data consolidation is what we are looking

15:29at for that level.

15:32It is also affecting the ability of the provincial and the regional and the national to consolidate

15:39data.

15:40These are operational data.

15:41These are production data, so to speak.

15:45So that's one.

15:47So your question on how we can effectively do projections and the analysis would depend

15:55on factual, verifiable information.

15:58So that's where we have to do automation and systematize the process of reporting and

16:05validation and verification.

16:08But on the side of production, this is where collaboration now with the provincial governments,

16:15the local government units, and not to mention the organized farmers organization to collectively

16:24work in terms of developing and making sure that their SAFDISI or their land use plan.

16:32There's a strategic area, a strategic agriculture and fisheries development zone that has been

16:39part of the AFMA, the Agriculture and Fisheries Modernization Act.

16:44That should be implemented.

16:45So I think the discussion there in terms of making it operational is in our policy guidance.

16:58Again, looking at the usability also of the comprehensive land use plan.

17:04Look, because when you do production planning, it has to be area based.

17:08So the areas that will be defined, for example, and will be identified exclusively for coffee

17:15production or for cacao production has to be protected in terms of its use for the long

17:23term because these are long-gestating crops.

17:26So the management mechanism for production has to be understood in terms of the land

17:32use, in terms of its suitability, and also in terms of the investments that will come

17:38from the government, from the owners of the land, whether they are small farmers or big

17:45cooperatives or companies.

17:48And the continuous process of feedbacking as to market connectivity and also the demand

17:59analysis has to be part of the entire exercise to make our ability to be more proactive in

18:07terms of ensuring food self-sufficiency.

18:11So self-sufficiency is the technical term that we use when we say that it is locally

18:16available.

18:16So that's one area that we have to continuously work on.

18:22It's not a perfect mechanism, but the way that the new leadership of Secretary Franny

18:32Chulaurel is now moving on is really towards making sure that it is operational and it is

18:38realistic.

18:41Now, let me bring this discussion to the issue of digitalization and artificial intelligence.

18:49How will you weave in those two into the program of the Department of Agriculture when it comes

18:57to high-value crops, especially now that digitalization is, I would say, has taken root in

19:02the Philippines?

19:04Yeah, that's a good question because when we look at production management, again, it

19:09has to be science-based and technology-driven.

19:13We are looking at ways to partner with groups that can produce sensors, and I have visited

19:21one company, DENSO Philippines, that is also a learning site with the ATI wherein they

19:29have locally manufactured sensors.

19:32And that sensor should allow us to have information on what are the changes in terms of the

19:40humidity, in terms of the atmospheric quality, et cetera, to be able to predict possibly

19:52what are the pests that come out during this time of the year when the soil is moist and

19:59when the temperature is so conducive to these pests.

20:06So, that's one.

20:07Number two is to also be able to use these kinds of technologies to automate your fertigation,

20:16your crop nutrient management, wherein the use of water is now going to be part of our

20:27management process vis-a-vis the effective use also of non-chemical and chemical-based

20:36fertilizers.

20:37So, these are information that should be readily available to our farmers, and we are on that

20:46perspective as to how we can do some modelings in our research stations, two, how to work

20:56with farmer cooperators that can be part of the learning process and validation, and three,

21:02how to scale and do the large-scale implementation once the POCs and models are tested and validated.

21:13Okay.

21:14Now, what I have observed in other countries is that there is a booming agriculture technology

21:21industry, and it covers various crops.

21:25Can you say that the program of the Department of Agriculture for high-value crops, especially

21:29now that it's getting enough funding, would give birth to this type of industry in the

21:34Philippines, like maybe in seeds or maybe in digital technology?

21:42Yeah.

21:42Can you comment on that?

21:44Yes.

21:44The transformational process and the direction that the new secretary is moving on and bringing

21:54us to supports our vision of a more dynamic, proactive high-value crops development program.

22:03It cuts across different areas of specialization because we also have to make sure that with

22:10technology sourcing and technology application, it is understood and implemented by the farmers

22:20at the ground level.

22:22We're looking at grassroots-based intervention that would laymanize these technologies that

22:30are readily available.

22:32To me, technology is just a technology if it's not used effectively.

22:37It's just a tool.

22:38It's a tool that can be used to create changes and transformation.

22:44Coming from the technology-managed background, I see the importance of working with people

22:50and capacitating them and enhancing them in terms of the local implementation and

22:58I would say accessibility to these technologies in their day-to-day activities.

23:06That's where we are.

23:09Those kinds of partnerships with technology providers, new input suppliers that would

23:17look at crop nutrition, not only as a fertilizer.

23:21There's a difference between a fertilizer and the context of nutrition management because

23:27when we look at the nutrition requirement of the plant, it also is connected to the

23:31nutrition that we intake from the plant as we are the consumers of that.

23:36These are things that have to be developed and understood relative to our understanding

23:42of food production and food systems and food innovation.

23:47We are now looking at the food innovation platform also.

23:51This is not a solo flight of the DA, but collaboration also with the DTI, with DOST,

23:59and other agencies, DOH.

24:02In fact, we are having a partnership with DOH in terms of the food and nutrition requirements

24:08also of the hospitals and their patients.

24:12A lot of things are on the works.

24:14Janine, do you have any?

24:16Ma'am, you've mentioned food innovation.

24:18How much potential do you think these high-value crops could offer in terms of value-adding?

24:27That's a very good question because, for example, kalabasa.

24:33A lot of products were developed out of kalabasa because you've heard that in some places,

24:41they just throw away if there's an excess supply.

24:44But this can be processed into what they call this soup or in pulverized form.

24:53You also have noodles, et cetera, that can be developed out of kalabasa.

24:59In terms of food innovation, our food development center, which used to be under the

25:08NFA, the National Food Authority, is one of the partner institutions that high-value crops

25:16is going to work with.

25:18They have the ability to help our farmers that would go into value addition by testing

25:26their products for shelf-life analysis.

25:29That is a requirement, of course, for entrepreneurs to sell their products in the marketplace.

25:36So the shelf-life also allows us, guarantees us that the food we eat is not expired.

25:45So that's one thing.

25:48This technical assistance and what we call support for value addition is something that

26:01the Department of Agriculture, through the high-value crops, is heavily focusing on.

26:07So product development, aside from farm production, is where food innovation will come in.

26:16We see the learnings and the success stories of several countries, and they have smart

26:23kitchen, they have innovations in those areas, and entrepreneurs can just go there and be

26:31assisted in terms of the technology that they need.

26:34So shelf-life analysis, nutritional facts, other concoctions that can be used to market

26:45and value add is there.

26:46So the high-value crops now will work closely in collaboration with the food development

26:53center to make sure that their scientists and food technologists will be part of the

26:59support group to develop and develop our high-value crops platform.

27:05Let me ask the role of state colleges and universities.

27:11Do you have any framework or plan to get them involved into this?

27:16Yeah.

27:17Through the Bureau of Agricultural Research, the partnership with state universities and

27:23colleges is a mechanism that has always been there.

27:27For high-value crops, there should be a proper direction on what specific research agenda are

27:35we going to focus on for particular crops.

27:38Like, for example, when we talk about food and nutrition, then we look at the utilization of

27:45other food inputs in creating, say, a low glycemic index cracker.

27:57And the inclusion of Adlai, for example, is one area to look into because you can have an energy

28:06bar out of Adlai plus peanuts.

28:10So things like that.

28:11And we'd like to see the research institutions, especially those that have food technology

28:18or food science courses, to make it part of their R&D agenda.

28:25And of course, to us, if they have a POC or proof of concept, then we are open to discussions

28:34and collaborations.

28:37So Janine, do you have a follow-up question?

28:40Okay.

28:41Now, ma'am, how about the role of indigenous people?

28:44You were talking about grassroots, and we know that the indigenous people are literally

28:49at the grassroots level.

28:51So how does the Department of Agriculture intend to get them involved into this, one

28:58of the plans that you...

28:59Yes.

28:59Just a few weeks ago, we had a collaboration meeting with 4K.

29:074K is a katutubo, it's an entity inside the Department of Agriculture that heavily focuses

29:16on capacity building and OD, Organization Development for ITs.

29:22So we are touch basing with them on the areas that they have already done several organization

29:32development work.

29:33So that makes it easier for us to work in terms of technology application, because the

29:39capacity building is already prepared.

29:42So that's how we look at partnership and collaboration.

29:46Second is to also work with indigenous people's group.

29:51So the one on potato, for example, are IPs from the Cordilleras.

29:58So we are looking at ways to partner them with farmers from Bukidnon.

30:05So they can have exchange of knowledge, exchange of information, and maybe business to business

30:11collaboration later on, as they are going to be taught or as they are going to engage

30:19in more proactive undertaking, commodity wise.

30:25So a lot of things are happening.

30:27And lastly, to work with the IP communities through NCIP or through...

30:35I think the DA also has a project on MIADP, the Mindanao Integrated Area Development

30:41Project for ITs.

30:43So those are the platforms available.

30:46So you have a lot of things to do in terms of high value crops development.

30:52So my last question is, I heard that the Department of Agriculture is asking for 500 billion

30:59budget next year.

31:03Can you tell me how much should high value crops be getting from that 500 billion?

31:08And what are the chances of getting that type of budget?

31:12Because I think that's going to be the biggest budget in the history of the department.

31:18Yes, yes.

31:19Well, we were like, our wish list was around 10 billion.

31:25But realistically, we can have around...

31:30What we have now is around 2.4 billion for 2025, I guess.

31:35But to collaborate with other projects, that can be up to around 3.5 billion.

31:43So taking cognizance on the leveraging process, wherein you leverage funds with other partner

31:52institutions, that is where high value crops is realistically working on things.

31:58So the bulk of the budget of DA, though, still goes for rice.

32:04So rice has always been a priority.

32:08But you'd be surprised that the secretary now has also focused on investments on post-harvest,

32:16because much of the losses are also attributed to post-harvest losses.

32:21So investments in terms of...

32:25For the high value crops, of course, we're looking at dehydrators and cold storages

32:31in a big way, where the food terminal incorporated can be part of.

32:36So the new, I would say, enhanced mechanism, rather, is not only on increasing productivity,

32:49farm production or farm productivity.

32:52It's also addressing the losses, which is basically a big chunk of the revenues

32:59that's down the drain because of the losses that is due to spoilage, etc.

33:10And so I believe that the new enhanced fund would focus on post-harvest,

33:18addressing post-harvest losses, and improving also the mechanization component,

33:24as well as the logistics.

33:27So much of the problems during the pandemic was attributed to logistics issues.

33:33And the department now is banking on its resources, particularly its ability to mobilize goods,

33:43agricultural products, through the ports that the Philippine Fisheries Development Authority

33:49and the Bureau of Fisheries would be able to mobilize as well

33:58and complement those in the crops and livestock program.

34:04So do you have more questions?

34:06You've mentioned logistics.

34:07So does the department have any plans on directly procuring crops from farmers

34:14and to remove the middlemen or traders?

34:16Yeah, this is how it works.

34:20The Department of Agriculture is not mandated to buy directly from the farmers.

34:26It can only intervene to address food inflation through the FDI and through our Kadigwa platform.

34:34So that platform is now one way to bring wholesale products in Metro Manila

34:44and work with distribution channel partners under the Kadigwa platform.

34:50So that area is now going to happen.

34:54And we'd like to invite you tomorrow because tomorrow is the kick-off date

35:00for the enhanced Kadigwa mechanism.

35:02So yes, this mechanism in terms of addressing food inflation,

35:09specifically in Metro Manila,

35:11has to be supported as well by establishing wholesale food markets

35:16through the FDI and in partnership with local government units

35:22that would have the ability to also monitor prices

35:27through the BNPP or the Bantay Presyo mechanism under the Price Act.

35:35Okay.

35:36Ma'am, thank you very much for sharing your expertise and updating us.

35:41So do you have any last things to say, Ma'am?

35:45Yeah, thank you.

35:45Again, thank you to your team for inviting us here.

35:50And we'd like to, of course, thank the management of Manila Times

35:56and your team for granting us this interview.

36:00High-value crops is the springboard for value addition and exports development

36:09as well as increasing our sufficiency

36:12by encouraging young farmers to take part in developing our high-value crops.

36:18So it is going to be sexy for them

36:21because we are going to adopt new ways, technological innovation, that is.

36:28And we'd also like to take this opportunity to invite the young farmers there

36:33to submit their, what you call this, pitch.

36:40Because we will be having a Young Farmers Challenge for 2024.

36:44And that encourages the young ones to look at ideas, projects,

36:52which they may already have and which would need some funding

36:56through these contests.

36:58So we are inviting you to participate in the High-Value Crops Development Program

37:05of the Department of Agriculture.

37:07And also to connect with our other programs

37:12that would be able to motivate our young farmers

37:16to take part in the transition and transformational goals of the country

37:20to make agriculture one of the bedrocks of our economic development.

37:25Thank you for tuning in to another episode of Newsroom by the Manila Times.

37:30And we would like to thank our resource person and you,

37:34Undersecretary Cheryl Natividad-Caballero,

37:36for discussing the value of the high-value crop sector in the Philippines.

37:42And with me is our reporter for Trade and Agriculture, Janine Alexis Miguel.

37:48And I am Conrad Quirino, Special Sections Editor.

37:51Thank you very much.

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