The big guys must help farmers

Last Monday, I wrote about the sad state of the coconut farmers. The column generated a number of responses from readers who confirmed the need for massive help for our impoverished coconut farmers.

It also elicited a response from DTI Secretary Ramon Lopez through banker Alex Escucha.

Anyway, Sec Lopez’s response made me think he must work harder to get the support of our conglomerates with food processing subsidiaries for dramatic results. I am thinking San Miguel Corp., RFM, URC-Robina, Nestle, Unilever and Procter and Gamble.

I gather from Sec Lopez that DTI is doing something, but not nearly enough to make a discernible difference for coconut farmers who are already in deep crisis.

The Thais got their canned coconut milk and buko juice in American supermarkets through joint efforts of government and conglomerates. Embarrassingly for us, the Thais also conquered valuable shelf space in Manila supermarkets. If we want to win back lost ground, our food conglomerates must join the battle. 

Here is the response of Sec Lopez:

“Actually being done, but we are accelerating because as we increase the demand for processing, we have to ensure we have enough agri raw materials.  This will also help scale up the capacity to export processed food, example dried or vacuum dried fruits, oil extract from fruits and nuts, juice concentrates, snack products from fruits and vegetables.

“We need to diversify to other high value crops, as well as use more technologies in processing, from drying/ freezing/ cuttings to more content extractions and biotechnology.

“We have a project now called Rapid- Rural Agri Production for industry development. To provide extra support on agri production that goes into value added processing- example clusters on coffee, cacao, coconut, fruits, nuts.

“We need interventions on agri and productivity and SME technical assistance for innovative products from production to processing.”

I get it from Sec Lopez that we have started to do something, but we need to scale up to get our food processing industry really going. Sec Lopez is also saying that the agriculture department must also step up because they need a stable source of raw materials.

So I get it that nothing much will happen soon and our farmers will have to wait much longer. Also, the Thais will continue to have little or no competition for processed food products that we could very well produce, if we had the inclination.

I got this e-mail from a John Wright from Marinduque:

“Thank you for raising the subject of coconuts, they so rarely get a mention in your paper, but they are of vital concern here in the province.

“The Thais must be laughing their socks off. We have far more coconuts, but they are allowed to flood our market. Something is badly amiss.

“Don’t you think a supermarket has a duty to source locally where feasible. A small factory would produce all that is necessary. As it is the coconut gets half what it did a year ago and the harvest hardly returns a living wage.”

Here is another e-mail from Lutgarda L. Tolentino:

“I would like you to write more about how to protect our coconut industry. I am a retired rural sociologist from UPLB and an currently engaged in diversified agro forestry with coconuts as the main base.

“The price of fresh coconuts and copra has gone too low @4.50/kilo farmgate price. This price, if it will remain for sometime, will finally encourage coconut farmers to abandon coconut farming. In my case, our coconut proceeds cannot support even weeding expenses. How much more for other operational costs?

“There is so much talk about poverty of those who are in the coconut industry. Farm jobs are becoming rare. If there are some entrepreneurs who want to create jobs in the sector, their interest is extinguished with the current market price.

“The government has to act fast as this situation is not good for the local economy as well as for maintenance of peace and order in the countryside.

“Why can’t we use the coconut levy fund to help this industry? After all, that fund is coconut farmers’ money. It is not anybody else’s.”

Here is another e-mail from a former colleague on the competence (or lack of) of the DA leadership.

“Hi Boo… Fermin Diaz here, an ex-Chronicle business reporter, now involved in editing and publishing a 14-year old specialized agrbiz journal, Livestock and Meat Business (LaMB) Philippines Magazine.

“Your observation of incompetence at DA is backed by our cover story. For it discusses Philippine preparedness against the dreaded African Swine Fever. With no known cure or vaccine to suppress it, the disease is now giving headaches and causing anxiety in Eastern European countries and China, our nearest neighbor hit by the disease.

“It is also causing alarm and deep concern among our local swine raisers fearful of its possible entry into our land unless more action is taken by DA/Bureau of Animal Industry.

“While you mentioned much on rice in your Nov 26 column, the livestock sector -  notably the hog industry, is also not given much importance by the Pinol leadership. This, in spite of the fact, that next to rice, our second top agri product in terms of gross value, is the hog or swine industry. Tsk, tsk. tsk.”

So much work to do in agriculture. We don’t see too much being done. Sad!

                                                            Clarification

I received an e-mail from Peter Hoflich of the Fitch Group that the basis of my column last Wednesday “was written by a Fitch Solutions analyst in Singapore with no input whatsoever from Fitch Ratings. This article does not in any way represent Fitch Ratings views.”

In that column, I was reacting to an article posted by CNN Philippines. They subsequently updated after hearing from Mr Holflich.

Boo Chanco’s e-mail address is [email protected]. Follow him on Twitter @boochanco