First, the bad news.
The latest report is that the damage wrought by Typhoon Pablo on the country’s agriculture sector has already breached the P11 billion mark, according to the Department of Agriculture.
The National Disaster Risk Reduction Management Council had lower estimates of to the damage to agriculture but it is still huge at P9.9 billion.
Bearing the brunt of the howler’s destructive effects were farms, crops and livestock in Northern Mindanao. Among those damaged were corn and other high-value crops like bananas, coconut and vegetables.
This is bad news for farmers, especially the small ones. The amount reflects substantial losses in income for them. It may take some time before they recover what they have lost in terms both of money and market opportunities.
This is also bad news for the country as a whole. Those billions represent lost revenues for the government and an erosion of our share of the international market, even if this is only temporary.
This is a major cause for worry since this sector continues to play an important role in the national economy.
But there’s also some good news. The way it looks, there seems to be a widespread view that the country’s agriculture sector continues to be a bright spot.
One important indication is the entry of some of the world’s biggest agriculture firms and investors into the country.
We recall that, a few years back, a United States-based agriculture company came into the country to introduce a hybrid corn variety which requires less chemicals and pesticide. This is because the variety has its own inherent, built-in ability to resist the major pests that prey on corn crops. Because of the natural resistance to pests, that corn variety allows the farmer so save much on farm inputs and spares the quality of the soil from damage.
Just recently, more major international agriculture conglomerates have made significant investments in the country. These are the Argentinian firms Fimaco SA and JMG SA. The two have formed a local company called Siembra Directa Corp.
It appears that the Fimaco-JMG alliance is also bringing in modern agriculture technology into the country. Based on initial reports, this includes the use of automated processes in farming operations, as well as in livestock and poultry raising.
The local firm Siembra Directa has already started a major farm project for corn and soya in Isabela where it showcases the features and advantages of the agriculture technologies developed by its Argentinian principals. It looks like the Argentinian technologies may bring the same benefits to farmers and to the environment as what the Monsanto corn variety did.
An interesting sidelight to the entry of the Argentinian investors into the country is the P1.6 billion supply contract it signed with local agriculture conglomerate Calata Corporation.
Siembra Directa has tapped Calata Corp. for its farm input requirements. The choice must have been due to the rather extensive presence of Calata Corp. in the Philippine countryside, and its own inventory of technologies and products.
From the media viewpoint, the P1.6 billion contract inked by Calata Corp. with the Argentinian conglomerate is both welcome and interesting. It is a welcome piece of news because this is an expression of confidence by the foreign investors both on a major Filipino company and on prospects of the local agriculture sector.
This is interesting because the P1.6 billion supply contract was signed just days after the SEC concluded its probe into allegations that certain parties may have unduly influenced the price of Calata Corp. shares when the firm listed at the stock exchange early this year. This indicates that the swift and non-controversial manner by which the SEC handled the issue ensured that the listed firm was not unnecessarily nor adversely affected by it.
Earlier, Calata Corp. also disclosed to the Philippine Stock Exchange (PSE) that its third quarter sales performance this year almost doubled compared to what was generated same period last year. It was during that particular quarter this year when the SEC did the probe as requested by Calata Corp. itself.
The agriculture sector is also a beneficiary of the prudent and sober SEC probe. Calata Corp., notwithstanding what its detractors say, has emerged as an important player in that sector.
This is good news, too. This means that the sector which produces the food we eat is also a beneficiary of the many positive developments in the stock market today.
The country will continue to face natural disasters and calamities. Maybe, the food production sector will remain vulnerable to these. But given the support of local and international investors, the sector will always be able to get back on its feet.
Original Article Here
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