During a press briefing at the Palace, Agriculture Secretary Francisco Tiu Laurel Jr. highlighted a significant challenge facing the Philippines’ agriculture sector—poor logistics leading to a staggering 30% wastage of agricultural produce, particularly vegetables.
“We are witnessing substantial losses in our produce, with 30% of vegetables going to waste due to inefficiencies in our logistics system within the food supply chain,” mentioned Laurel.
Addressing this issue could have a substantial impact on cost reduction, as Laurel explained, “If we can mitigate or, ideally, eliminate these losses, it could translate to a 10 to 15% reduction in costs for vegetables and high-value crops like fruits.”
To tackle this problem, the Department of Agriculture plans to establish a 5,000 pallet position cold storage facility dedicated to high-value crops and vegetables, benefiting the country’s cooperatives and farmers.
Laurel stressed the need for coordination between the national government and the Department of Agriculture to develop effective strategies. He announced plans for a quick solution, aiming for a facility to be operational by June of the following year.
In a meeting with President Ferdinand ”Bongbong” Marcos Jr., the DA presented plans for cold storage and postharvest facilities, along with initiatives to lower agricultural commodity prices and boost production. Proposed amendments to the Philippine Fisheries Code and a draft Executive Order on Strategic Agriculture and Fisheries Development Zones were also discussed.
Tiu disclosed that the government requires P93 billion over the next three years to build post-harvest facilities, potentially saving P10.7 billion annually in rice and corn wastage. However, the source of this budget is yet to be determined.
Highlighting the urgency of the issue, Laurel emphasized the losses incurred in rice production alone due to the lack of post-harvest facilities. While the budget for cold storage this year is limited to P1 billion, an additional P5 billion is estimated to be needed by 2025 to address the vegetable cold storage issue nationwide.
In response to President Marcos’s directive, the DA is set to report on the progress of cold storage and postharvest facility construction by January 2024, with a focus on implementation. The government’s commitment to resolving these challenges reflects a crucial step towards ensuring a more sustainable and efficient agricultural sector.