“We have to learn to live with fewer imports and more exports promoting national production.” – Miguel Diaz-Canel
According to the statistics office, the first quarter of 2024 our agricultural imports was USD 4.34 billion or a whooping 230 billion pesos, equivalent to 71.6 percent of our total agricultural trade.
Expectedly, towards the end of the year we are to remain the world’s top rice importer, projected at a record of 3.8 million tons. One reason was the surging local rice prices that Malacañang decided to import more rice, which was questioned by some lawmakers, claiming the decision did not go through the proper procedure.
UNSURPRISINGLY IMPORTED
It is not surprising that we continue to rely on other countries for food for decades. It would be surprising if we did not. Ironically, our sustainability is expressed in our importation and in bigger quantities markedly after the El Niño episode of 1997-1998 that ravaged significant production areas of rice. We also import millions of kilos of meat products to prop up the domestic supply of pork and beef. At the onset of 2024, importation of chicken has become bigger as observed by others.
The statistics office proves the fact that we are reliant on foreign food supply, despite millions of Filipino farmers and workers who directly and indirectly depend on the agriculture sector as the major source of livelihood. The data also shows that our food imports accounted for nearly 72 percent of agricultural trade in the first quarter of this year. Rice and wheat topped the imports followed by the by-products of the food industries, and meat.
EXPORT AS WELL?
Inversely, the PSA data also show that we can still export agricultural products despite the glaring import records early this year. The agriculture department asserts, backed up by the data, that we progress to become an export “powerhouse” by 2028. The reason? Last year’s agricultural exports rose to 10.7 percent, amounting to 1.72 billion dollars from 1.56 billion. Last year’s top exports were fruits and nuts.
Recognizing there is the potential of agricultural exports driven by food global demands is a clear opportunity, not only for the Philippines, but by large and top agricultural exporters from Asia and Europe. Global population is exponentially increasing, demanding larger food consumption. The first quarter netted 6 billion dollars agricultural trade but the caveat for this export growth – “given the right resources and support” the report added. In doing so, the country’s local producers can expand trade shipments.
But, is the government committed to infuse adequate resources and support to the agricultural sector? Logically, we can dissect next year’s proposed budget and see if the budget formulation and proposal puts the agriculture budget in the top three. Historically, every year the succeeding year’s budget is almost finalized and polished by the end of the third quarter.
GRUELING PROCESS AND MOUNTING REQUIREMENTS
The problem with our export processes is that agricultural exporters must hurdle mounting requirements and comply with voluminous documents as required by law. What is apparent is that it adds up to the punishment the producer-exporters endure, especially the export market. Not only do they have to comply with the required documents and grueling procedures, but also the unethical practices and the red tape experience resulting in a snail-paced process.
They also complain of the stringent sanitary and phytosanitary requirements, notwithstanding non-tariff barriers of importing countries. Recently, the European Union passed a law that changed export regulations that exporting countries must comply with environmental concerns, particularly produced food products that are connected to deforestation. A news report by Business Mirror in April, “Brace for EU deforestation law, exporters told,” was quoted by The Philippine Exporters Confederation, Inc. It added that this regulation will come into force by December this year and the products include cattle/beef, soy, coffee, coco, palm oil, rubber, and wood.
While we cannot control importing countries’ regulations I believe it is possible that we can relax our own. It is one way to reduce difficulties among exporting segments or sections of the agriculture sector, especially those medium sized companies that source their products from small farmers and producers and agrarian reform beneficiaries.
A full-fledged commitment to the agriculture sector is more than an imperative now. It starts with prioritization by providing adequate investments and assistance not only to be productive but more importantly to be competitive and sustainable. Not only our farmers need it, but the entire economy needs it.*
