Generating more wealth and jobs

As a young boy of 10 years, Luis P. Lorenzo Jr. already had a knack for business. He sold juice in the golf course to the thirsty golfers.

Cito, as the Secretary of Agriculture is called by friends, relatives and colleagues, learned early on the value hardwork, creativity and flexibility in the highly competitive marketplace.in time, he learned business savvy running Lapanday that exported fruits to China garnering 40 percent of the huge Chinese market.

"In the private sector," explains Cito "the pace was fast but I could change my pace and relaxed a bit if I wanted to. In government service, I have less time and so much amount of tasks to handle. In my job as agriculture secretary, I have set several goals I am focused on achieving commodity-based goals in line with President Gloria Arroyo’s mandate of food security and greater incomes for farmers and fisherfolk to improve their quality of life. At this point in time, I am satisfied to say that we are almost there."

Last year despite the drought caused by El Niño, the country’s palay production reached 13.5 million metric tons, up by 1.73 percent from 2002 record-breaking production. This year DA is expecting even better harvests on two million hectares for both dry and wet seasons. Some 500,000 hectares would planted with hybrid rice.

In rice production, the Philippines was 94 percent self-sufficient last year from only 88 percent three years ago. This year, 97 percent self-sufficiency is seen by the DA. If blessed with good weather the country might even be 100 percent self-sufficient.

Corn farmers had a good year in 2003 with total output of 4.6 million metric tons (seven percent better than 2002) worth P32.54 billion (up 14 percent). During the first quarter of this year, the country’s corn production is expected to be 67 percent self-sufficient in corn from 67 percent three years ago. By the end of 2004, the country should be able to produce 80 percent of its requirements.

The secretary believes that the prosperity of the corn sub-sector will redound to the fortune of poultry and livestock raisers.

"To better integrate the corn sector with the livestock and meat processing industries, we are encouraging livestock raisers and processors to move to corn and feed feed producing areas," he points out. These days, much of the country’s corn supply comes from Isabela and Cagayan Valley in Region 2, Bukidnon in Region 10 and North Cotabato in Region 12. Excess corn produced in Mindanao and Cagayan Valley are shipped to feedmills concentrated in Luzon and Visayas.

According to the agriculture secretary, the best way to reduce the cost of corn is to bring down the costs of handling and transporting. This is the concept of the DA’s Grains Highway Program that puts up mechanized production, processing and handling facilties. This way, the quality of the grains will be enhanced and postharvest losses will be minimized. It is estimated that gates of feedmillers could be brought down by as much as 67 centavos per kilo resulting in lower prices for livestock and poultry feeds.

Under Cito’s watch, the country’s fisheries have made significant inroads which posted 7.5 percent upswing last year. Too, bangus and tilapia production now meets 83 percent of the national consumption, up from 81 percent in 2000. Through private sector initiative with the encouragement of the government, the Philippines is now exporting tilapia fillet to the United States, Japan and Europe.

The secretary has visions of remaking the Filipino farmers into entrepreneurs. Greater farm productivity and increased incomes and building infrastructure are necessary components of revving up processing for value-added products and marketing savvy in the farming sector. Quality is also important in bridging agriculture and industry. With the full integration of the two economic concerns genuine modernization would generate more wealth and jobs.