The Market Monitor Minding the Nation's Business
By Rose de la Cruz (with reports from DA-AFID)
To address the perennial boom and bust cycles in food supplies, the Department of Agriculture plans to build more cold storage facilities at the Food Terminal Inc. in Taguig, which had been originally built for such purpose but had been converted into industrial estate in recent decades with the emasculation of its previous mother agency, the National Food Authority.
Agriculture Secretary Francisco Tiu Laurel, Jr. bared such plans– which was previously planned (but was not implemented) by former DA Secretary Manny Pinol– as part of a broader strategy to address overproduction and minimize post-harvest losses of agricultural products, particularly vegetables and other high-value crops.
He said the immediate problem he wished to resolve is the oversupply of tomatoes, cabbage and onions during harvest time. “Kaya dapat magtayo tayo agad ng storage sa FTI. Ang direction ko is to build a network for chilled cold storage systems,” Laurel said at a briefing with officials of Food Terminal, Inc. in Taguig City.
The planned P500-million network of cold storage facility is part of the buffer stocking strategy through improved logistics in the country. He is keen on constructing a chiller warehouse dedicated to vegetables and other high value crops at the 1.3 hectare section of FTI. The facility would be equipped with a processing plant, trading area and its use to prioritize farmers’ produce.
Half of the warehouse would be allocated to the coil system (with no circulating fan and moisture is kept within the storage to keep things fresh for a longer period), and the other half evaporator type for short-term storage of high value crops.
He would transfer all cold storage requirements of DA to the logistics office at FTI, where research and inventory of all facilities in the country would be synchronized.
He plans to revert the oversight of DA’s Kadiwa program to the FTI in two years’ time as he instructed FTI officials to purchase the excess produce from farmers and sell them at the Kadiwa centers.
Instead of throwing away and burying the excess output, “bilhin na lang ng FTI and put them under the Kadiwa program. “ He also plans to strengthen the Kadiwa program of DA before the final transfer to FTI.
At its creation 57 years ago by President Marcos Sr., (with its original name as Greater Manila Terminal Food Market) the FTI had 120 hectares (297 acres) of industrial estate that were leased to small and medium sized businesses focused on agricultural development, electronic raw materials, and other business endeavors. Another 11 hectares are occupied by informal settlers. A total of 76 hectares (188 acres) were sold to Ayala Land Inc. and is now known as Arca South.
In 1989, food trading and food processing operations, including live animal slaughtering were suspended and the cold storage services were suspended in 2004 due to technical problems and viability concerns.
Several attempts to sell the property, including a public auction in 2009, all failed but in November 2012, the government announced the sale of the 74 hectares (183 acres) of the 120 hectares (297 acres) property to the Ayalas for P24.3 billion for a mixed-use development called Arca South. Proceeds from the sale are pledged to the programs of DA and the Department of Agrarian Reform. Only 46 hectares (114 acres) remains with FTI.
He underscored the department’s plan to centralize all agriculture logistics management matters, including FTI, to the soon-to-be-formed Logistics Office of the DA.
With two types of cold storage facilities under the plan—frozen and chilled— Tiu Laurel noted that the Philippines will unlikely worry with post-harvest wastage.
He noted that private companies construct new frozen storage systems every year due to their profitability. Thus, there is no need at this time for DA to submit these facilities in 2024.