Philippine Business Magazine: Volume 9 No. 3 - Editorial
Focus on Agriculture
By Nonette C. Climaco

Living in a city makes people somehow indifferent to what goes on in the countryside. But lest urban dwellers be lulled into downplaying the importance of rural areas to the economy, some hard facts have to be pointed out: agriculture accounts for nearly 20% of the gross domestic product and nearly 40% of the country’s total labor force (majority of them small, marginalized, subsistence farmers). It is therefore a sector that can effectively boost household incomes and effectively propel consumption, when it performs well.

But given the sector’s importance to the economy, it is a pity that we have not invested sufficiently towards building a market-oriented and globally-competitive sector. Proof of this is that agricultural production has failed to match increasing consumption of a growing population, forcing us to import major agricultural products. And while blaming government for not having more long-term and strategic programs to harness the sector’s potentials is the easiest thing to do, it is also imperative on the private sector to look deeper into these potentials and help develop them.

We are, therefore, pleased to feature some private sector executives who are great movers and believers in the sector, as shown by their involvement in and investments into it. We also asked them suggestions on how to improve the sector. Former Agriculture Secretary Senen Bacani points out that agribusinesses should integrate to gain economies of scale. Presidential Adviser on Job-Creation in Agriculture Luis Lorenzo Jr. reiterates the need to apply the “seed-to-shelf” formula on agricultural processes. For his part, SL Agritech Corporation’s Chairman and CEO Henry Lim says that the best way to boost rice production and increase profits in the farms is to promote the use of hybrid rice.

Another crop that we can capitalize on in getting more yields from the farm sector is coffee. We were once one of the top producers of coffee beans in the past. With a concerted effort to revive this stature, coffee farmers can again take pride in growing the beans that the world more and more craves for. Read Coffee’s Wake Up Call to find out more about the coffee industry.

In focusing on agriculture in this issue of Philippine Business, we hope that you appreciate its contribution to the economy.