Private sector participation in governance is crucial to our agriculture export growth. The responsibility for driving this growth ultimately lies with the private sector. This key insight was reached during the international trade committee meeting of the public-private Philippine Council for Agriculture and Fisheries (PCAF) on August 29. Notable leaders from the private sector, including Leonardo Montemayor of the Federation of Free Farmers and Imelda Madarang, CEO of Fisher Farms, were present at the meeting.
Last June 16, President Marcos introduced the Philippine Export Development Plan (PEDP) 2023-2028 with the aim of increasing our agriculture exports to $8.9 billion within five years. However, our agriculture exports only reached $6.8 billion last year, significantly lower than Thailand’s $35.6 billion. This huge disparity highlights the need for improved agriculture governance in the Philippines.
Currently, our top agriculture exports are bananas, coconuts, pineapples, tuna, and tobacco. Unfortunately, we are losing market share in these products to our competitors, indicating a flaw in our approach. Unfortunately, the PEDP does not specify which key products will help reverse this trend, nor does it outline plans to strengthen our position in these products. This is where the private sector plays a critical role. With their extensive network of relationships with suppliers, distributors, customers, and even competitors, they possess valuable insights and knowledge that can drive export growth.
While the $8.2 billion export target heavily relies on historical trends, the private sector has the potential to set an even higher target. By utilizing current global analysis and seeking government support, they can identify new creative opportunities to boost exports.
Let’s take coconut as an example. The Philippines has the largest area for coconut planting in the world, spanning across 69 provinces out of 81. We are the second-largest coconut exporter globally and have the ability to further enhance this potential by properly utilizing the P125 billion coconut levy. However, we must address our strengths and overcome emerging competition in order to maintain our lead. The recent Coconut World Congress, held from August 30 to September 1, provided our private sector leaders with valuable insights and recommendations to address these challenges. Unfortunately, we lack specific information on the coconut sector’s contribution to the PEDP export target. However, there is positive news as Philippine Coconut Authority (PCA) Administrator Bernie Cruz recently met with industry leaders to discuss possible government support interventions. He has committed to sharing all relevant plans and budget information to enable the private sector to make detailed recommendations. The suggestion to closely examine fund use by different agencies with access to the levy ensures a coordinated and unified plan, with the private sector actively participating in monitoring programs and fund utilization.
This approach should be adopted for three to five key export sectors that will drive an aggressive export strategy, similar to what Thailand and Vietnam are doing. Once these sectors are identified, the private sector’s active involvement will bring about a new dynamism and shared responsibility for export success or failure. Ultimately, it is the private sector that holds the power to make things happen.
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