Sets G2G deals with foreign sources to avail of better prices
President Ferdinand Marcos Jr. on Monday said he was keen on pursuing government-to-government (G2G) deals to address the rising costs of fertilizers.
Marcos, who concurrently heads the Department of Agriculture (DA), said the government could avail of cheaper fertilizers through G2G deals.
“They want to help us, so why don’t we take advantage of that,” Marcos said in Filipino during a meeting at the Bureau of Soils and Water Management Convention Hall in Quezon City. “Give us fertilizer at a better price. That’s the whole point of G2G.”
The President said he is looking at deals with China, Indonesia, United Arab Emirates, Malaysia, and Russia for the procurement of fertilizers.
The President asked agriculture officials to provide data on the source of and price of fertilizers, as well as on the department’s distribution plan during the planting season.
Marcos said the most pressing issues that need to be addressed in the agricultural sector include increasing rice production and reorganizing the DA and its attached agencies.
“We need an immediate plan to ensure that our food supply and the food prices are within reach of ordinary Filipinos from now until the end of the year,” the President and current DA Secretary said.
Undersecretary for Operations and Chief-of-Staff Leocadio Sebastian presented the agency’s catch-up plan, which will prioritize the production of rice, corn, livestock, poultry, vegetables, and fisheries.
Strategies for other programs such as a fertilizer subsidy were also presented.
The President also said the country’s system of importation should be reformed in coordination with the Bureau of Customs, the House of Representatives, and the Senate to address rampant vegetable smuggling.
The meeting also tackled the country’s farm-to-market (FMR) network plan.
“FMR is the first step to solve some of the supply chain problems,” the President said.
He said the construction of farm-to-market roads and infrastructure support should be prioritized in major food production areas, and that all these be aligned with the overall plan.
Marcos also instructed the concerned officials to identify priority areas, create the necessary maps, and provide copies of the master plan to the country’s economic managers and local government units.
Meanwhile, Albay Rep. Joey Sarte Salceda proposed a stronger and more aggressive national corn program to address the lack of supply of chicken in restaurants and supermarkets.
He said Congress needed to pass “a livestock, poultry, and dairy development act” to address the structural constraints that are holding back the industry.
“I have had conversations with chicken suppliers, and the problem does not appear to be a shortage of headcount, but the quality of chickens being produced. Broiler raisers have brought to my attention the fact that they are not meeting the standards set by their buyers,” he said.
“That, I attribute the nearly 50 percent increase in the prices of corn feed, year-on-year. And as much as 60 percent of costs to broiler raising costs are attributable to corn. So, you would expect some broiler raisers to cut back on corn feed, leading to weight issues in produce.”
“The result is chickens are basically malnourished… Essentially, they are chicken-joyless. So, supermarkets and restaurants don’t want to serve them,” Salceda said.
Salceda said the short-term solution is to boost local production of corn during the upcoming corn season, which begins in July and will be harvested in September.
“We should ensure delivery of services under the National Corn Program within the peak crop season this July to September. That will be extremely essential to solving the poultry supply quality problem.”
“Fertilizer will be the most crucial assistance, I believe. So, any pending fertilizer assistance programs will also have to be released in strategic corn-producing locations within this peak season. The fastest way to do that is through Fertilizer Discount Coupons, which was a successful program we amplified in Albay when I was governor. The effect will be immediate on yield.”
In the long run, Salceda said the passage of the livestock, poultry, and dairy development act, which he filed as House Bill 440, will also help address the structural constraints to the livestock and poultry sectors.
The proposal will earmark tariff revenues from corn imports for domestic corn productivity improvement under a Corn Competitiveness Enhancement Fund, which will be at around P2 billion annually.
“Unlike in rice, we can be globally competitive in corn, based on [what] many agricultural experts [say],” Salceda said. “The problem with livestock and poultry boils down to feeds, feeds, feeds. And corn is the single most essential feed source.”
