A $2.5-million project funded by the International Fund for Agricultural Development (IFAD) will look at ways to enable small farmers from the Philippines and other ASEAN countries to increase their agricultural exports.
Dubbed as the "Agricultural Transformation and Market Integration (ATMI)", IFAD partnered with the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) for the project.
In an ATMI inception program hosted by SEARCA, the Philippine Statistics Authority showed that the Philippines's agricultural exports are substantially lower than what it imports from Australia, the United States, Europe and ASEAN.
PSA figures showed that the Philippines imported $555 million worth of goods from Australia but exported only $69 million in 2016.
The US also enjoys a huge trade surplus with the Philippines as American producers exported $2.54 billion worth of goods compared to exports from local producers valued at $1.334 billion.
Trade with other ASEAN countries was also not favorable to the Philippines. The Philippines imported $3.837 billion worth of goods from other ASEAN countries but its exports reached only $255 milion in 2016.
Despite this grim situation, there appears to be opportunities to expand Philippine farm exports. Data from the PSA showed that coconut-oil shipments rose to $1.152 billion in 2016, from $1.129 billion in 2015. Pineapple exports also went up to $711 million last year, from $574 million in 2015.
The aim of ATMI is to help countries such as the Philippines address this and encourage ASEAN countries to address common problems that hinder development.
Improving policies, such as those that relate to investments, can help ASEAN countries confront challenges to expanding food production, according to A. Kishore of International Food Policy Research Institute (IFPRI), also an ATMI implementor.
"[ATMI will enhance] cooperation among ASEAN states for food security and agricultural development through preparation of strategic programs in the areas of research and development, food safety and investment in food and agri-based industries," Kishore said in a statement.
Kevin Chen, IFPRI senior research fellow, said the simultaneous development of industries sector (processing), services (logistics, marketing) are needed in transforming agriculture.
"Value-chain development of the 'postfarmgate' segment has been a dual revolution," Chen said.
It means there is great progress in farming when small farmers are able to upgrade to processing, transporting and marketing their raw, fresh farm produce.
ATMI will identify value chains of agricultural goods and identify how farmers' competitiveness can be raised.
For instance, small farmers should get credit assistance so they can invest in trucks that will enable them to transport their goods and hike their margins.