STRONG producer groups are essential for a thriving agricultural sector in the Philippines, according to a new report from the World Bank (WB).
The WB said in a statement on Friday that its report found that grouping and organizing small farmers into cooperatives and various types of producer organizations, as well as building partnerships with agribusiness companies, can help increase their returns. incomes and, therefore, stimulate transformation.
The report, which was released in conjunction with the Department of Agriculture (DA), found that there are many lessons to be learned for the consolidation and consolidation of activities on the farm and along the supply chain. value to succeed and transform the agricultural sector.
The Philippine Rural Development Project (PRDP), which is currently run by the Ministry of Agriculture, is a significant example of this method, he said. The World Bank said the PRDP organizes farmers and fishermen into businesses that take a business approach to farming and fishing, with infrastructure including farm-to-market roads, irrigation, post-harvest facilities. harvest and cold storage to help them succeed. “To be successful, consolidation and consolidation efforts must be voluntary, based on trust and collaborative relationships among stakeholders,” said Ndiame Diop, World Bank Country Director for Brunei, Malaysia, Thailand and the Philippines.
The World Bank has said that Philippine agriculture is dominated by small farmers and fishermen who work independently, usually using traditional farming methods and earning modest wages. Each year, the average farmer earns 100,000 pesos, well below the poverty line. He went on to say that the average farm size fell from 3 hectares (ha) per family per farm in the 1980s to just 0.9 ha per family per farm in 2012. The World Bank said these small farms are often divided into more fragmented sections. In addition, half of the country’s farms (57 percent) are 1 ha or less, 32 percent are 1 to 3 ha; 9 percent is 3-7 ha; and only 2 percent have 7 ha or more.
Agriculture Secretary William Dar highlighted how modern technology can make agriculture more efficient and profitable for farmers and their agribusiness partners through programs such as block farming, block farming, trust and contract farming. Linking agriculture to national and global manufacturing sectors, as well as access to markets, becomes easier with higher and better quality production. “Finding opportunities for regrouping and consolidating small and medium-sized farms as well as partnerships with agro-industrial companies is part of the“ new thinking ”of the Ministry of Agriculture,” he said.