Harvesting the rewards of modernization

Last Friday, I attended the inauguration of the Modern Integrated Rice Processing and Milling Complex in Baler, Aurora, a $2.6 million project funded through a $2.3 million grant from the Korean Government through the Korea International Cooperation Agency (KOICA) and a $300,000 Philippine government counterpart.

The Rice Processing Complex is the latest state-of-the-art post harvest facility which will provide continuous drying, storing and milling of rice for the Province of Aurora. On one hand, it will increase farmers' income, and on the other it will reduce post harvest losses and produce high quality rice.

Palay will be supplied by farmers cooperative with potential interest savings of P2,700 per hectare per season, a patronage incentive of 50 centavos per kilo or an increase in income of P2,000/ha/season, thereby resulting to increased income of P5,000/ha/season and a crop insurance premium of P1,000/ha/season. In sum, each farmer will receive increased income of almost P30,000 yearly for each hectare he plants, and we will save almost P27M a year in post harvest losses.

In our country, the total losses in palay due to lack of post-harvest facilities represent 14.84% of the country's total production, or the equivalent of P15.23 billion. These losses are far more than the P7.65 billion we spent for rice importation. Moreover, the recorded losses in corn production reached 12.70% or P2.15 billion in value, which is also more than our imports totaling P1.46 billion.

As a result of post harvest inadequacy, food is more expensive to produce here than in many parts of Southeast Asia. Moreover, Philippine agriculture is handicapped by the lack of basic facilities such as farm to market roads, irrigation networks, post-harvest facilities, fishing ports and access to basic credit. These have prevented our agricultural sector from growing sufficiently to meet the demands of our burgeoning population. Development lending institutions like DBP are next to useless to farmers in terms of job and income generation.

Plugging these huge post-harvest losses in the grains sector, even only by half, would dramatically reduce our import dependency ratio.

Agriculture Secretary Arthur Yap was special guest and witness to the inauguration of this state-of-the-art rice facility, together with Korean Embassy Minister Hong Sungmog, KOICA resident representative Choi Sungho, university presidents and DA officials. They were much impressed by the Korea-RP cooperation project.

This post harvest intervention is one of the best ways we can increase rice production in our country and raise rice farmers' income. The best way to fight poverty is by developing the rural sector.