Philippine Agricultural Development Framework and the ASEAN Agenda Panel Session on “ASEAN and Agriculture” Regional Conference on Civil Society Engagement with the ASEAN October 3-5, 2005 Bangkok, Thailand

Philippine Agriculture Bedrock of the rural economy Major source of raw resources on which the rest of the economy depends Accounts for 20% of GNP 1/3 of the population employed in agriculture or agriculture-related industries

Philippine Agriculture and Poverty Alleviation Poverty in the Philippines essentially a rural phenomenon Magnitude of poverty highest in the rural areas where agriculture serves as the economic base Development of agriculture , which plays a such a major role in the generation of incomes and employment in the countryside, is therefore essential to any anti-poverty program

Philippine Agriculture Very limited impact in reducing rural unemployment, underemployment and poverty Agricultural production has grown less than population growth Agricultural productivity improvements not sufficient to reduce food prices to regional levels Highly seasonal nature of agriculture, vulnerability to price fluctuations and generally low prices offered to raw products

MTPDP 2004-2010 Holistic Approach in Reducing Rural Poverty The Agribusiness Approach Address production bottlenecks in agriculture and its inherent vulnerabilities Promotion of agribusiness to address agricultural production constraints, post-production handling, value-adding, and distribution concerns

Agribusiness Approach Expansion of production base: breaking out from subsistence agriculture by increasing and diversifying the marketable surplus of the farm Raising production and distribution efficiency: increasing the price and quality competitiveness of the farm Promoting equitable distribution of production and productivity gains: governance and institutional reforms to ensure, among others, that the gains will result in commensurate farmer and consumer welfare gains

Philippine Agricultural Development Framework and the ASEAN Agenda ASEAN Economic Community (AEC) End-goal of economic integration Establish ASEAN as a single market and production base, with free flow of goods, services, investment and labor, and freer flow of capital towards fulfillment of ASEAN Vision 2020

Philippine Agricultural Development Framework and the ASEAN Agenda AEC can provide the environment conducive to enhancing the attainment of the goals and objectives of the MTPDP agribusiness approach.

Philippine Agricultural Development Framework and the ASEAN Agenda MTPDP Agribusiness Approach ASEAN Economic Integration through AEC Expansion of production base: breaking out from subsistence agriculture by increasing and diversifying the marketable surplus of the farm Opportunities for expanded market base ASEAN region: population of about 500 million, total trade of US$720 billion ASEAN Free Trade Area (AFTA): elimination of tariff and non-tariff barriers among the member countries expected to promote greater economic efficiency, productivity and competitiveness

Philippine Agricultural Development Framework and the ASEAN Agenda MTPDP Agribusiness Approach ASEAN Economic Integration through AEC Raising production and distribution efficiency: increasing the price and quality competitiveness of the farm Promoting equitable distribution of production and productivity gains: governance and institutional reforms to ensure, among others, that the gains will result in commensurate farmer and consumer welfare gains Productivity enhancement and reduced poverty (ASEAN Vision 2020): create a stable, prosperous and highly competitive ASEAN Economic Region, in which there is a free flow of goods, services, investments, capital trans-ASEAN transportation, communication and energy networks equitable economic development and reduced poverty and socio-economic disparities

Challenges Ahead Intense competition with the removal of trade barriers, rising demand for higher quality products and higher standards, costly compliance with new trade rules Overcoming marginalization resulting from integration of markets Adapting to technological change Coping with the new institutional environment that economic integration will necessarily bring about

Challenges Ahead Unity in ASEAN Keynote Address of Secretary Domingo F. Panganiban, Department of Agriculture, Philippines 27th SOM-AMAF Meeting (Senior Officials Meeting-ASEAN Ministers on Agriculture & Forestry) 25-30 September 2005, Tagaytay City, Philippines Unity in ASEAN Globalized trade environment Relentlessly pursue common goals for the region and claim our right to benefit from globalized trade

"Agriculture and Fisheries Modernization Act of 1997." People Empowerment The State shall promote people empowerment by enabling all citizens through direct participation or through their duly elected chosen or designated representatives the opportunity to participate in policy formulation and decision-making by establishing the appropriate mechanisms and by giving them access to information.

Section 13. Agricultural and Fisheries Modernization Plan (AFMP) The Department, in consultation with farmers and fisherfolks, the private sector, NGOs, peoples organizations people's organization and the appropriate government agencies and offices shall formulate and implement a medium and long-term comprehensive Agriculture and Fisheries Modernization Plan.

Maraming salamat po at mabuhay!