Philippine Business Magazine: Volume 9 No. 3 - Cover
Fruits of Farming

Lorenzo’s task to generate jobs in agriculture has entailed a lot of trips to the countryside, involving such activities from hybrid rice production, to coffee production, among many others. He explains that agriculture is in his family’s blood. “I am a third-generation Mindanaoan, from a family that has struggled over the years to use agriculture as a vehicle for both business growth and social responsibility. I saw the difficulties as well as the opportunities in this sector as a young boy, growing up in Cagayan de Oro.” This background gave him the right perspective on how agriculture can improve the lives of his countrymen. He says, “Our experiences in the private sector convinced me that agricultural development and livelihood could quell the forces of conflict – as shown when we achieved industrial and community peace in Davao by working with the people in turning around the banana farms. Now I see the challenge in replicating those solutions and successful formula for the benefit of other commodity sectors and farmers across the country.”

Lorenzo has equal passion for agribusiness development and community development. He believes that, “Ultimately, the best measure of success in these business endeavors is the benefit delivered in terms of a better quality of life for the farmers and their families. I believe that the first responsibility of business is economic success; its profitability contributes to the prosperity of the communities surrounding it and ultimately to the economic welfare of the country. But the social aspect is equally important: the other half of economic success is socio-civic involvement. Companies that do well cannot be islands of prosperity isolated in a sea of poverty; they must impart their lessons for the betterment of others, and expand the “islands” so that majority can gain from it and not try to sink it. They must take the responsibility of teaching the smaller players the skills and techniques to survive and perform better in today’s dynamic and competitive environment.”

Lorenzo describes himself as one who is striving to be “the farmer of the future – one who successfully exemplifies the paradigm shift from a production-oriented to a market-driven, technology-based, and globally competitive agriculture.” He works on this by focusing on supply chain evaluation, benchmarking on each link, and aiming to be the best across the attributes of cost, consistent quality, supply reliability, customer service, and appropriate product innovation. He adds that, “I am always aware of the intensely competitive environment today: the markets are more dynamic, the trends change at a faster pace, so we have to make every effort to stay at the forefront of the industry – even be a step ahead of everyone else.”

The odds are great especially in the global scene. Lorenzo cites that, “as a participant in globalization under WTO, we are still struggling to gain entry into international markets because of tariff and non-tariff barriers”. He dreams of the time that other countries would recognize the Philippines as a country that wants trade, not aid.

Fortunately, he has the President’s ear especially when it comes to the important issues concerning the sector. “President Arroyo understands globally-competitive agriculture; she understands when we say, ‘Let us address the emerging opportunities today.’ For instance, we are attaining success in her hybrid rice flagship program. We need to roll out more of her flagship programs, with a key focus on supply chain economics. What we successfully carried out in hybrid rice – teaching farmers the total system, helping them understand benchmarking and supply chain competitiveness – let us implement in all the other commodities to help achieve food self-sufficiency, build a modernized agriculture founded on social equity, and decrease rural poverty by raising the farmers’ incomes.”

In the meantime, does one have to be a plant or fruit lover to be able to successfully run agriculture-oriented businesses the way he does? Lorenzo says, “Not necessarily, though it helps; for me, it makes the work even more fulfilling.” For him, agribusiness shows just one path but it is key to the development of the country’s food sector. He enjoins businessmen: “Come and join us in the farms. The challenges of agribusiness are best shown by experience. Even farmers who have been immersed in this sector for years are discovering new challenges, and new ways to meet them.”