A Market-Driven Food Production Concept where a Purchase Order (PO) is issued before farmers or fishermen start producing which in turn could be used as guarantee for a bank financing is now being fine-tuned by the Mindanao Development Authority (MinDA) with the help of the private sector.
This Concept is expected to boost agricultural productivity to ensure adequate food supply in the country in the face of the COVID 19 Pandemic.
Consider this:
Even as the country faces an uncertain supply of food, many farmers are still hesitant to expand their rice, chicken and hog farms because of the pronouncement of the Department of Agriculture that they will rely on imports.
“Ano ang mangyayari sa amin kung pagkatapos namin magtanim tapos nawala si COVID at babahain kami ng imports?,” was the question raised by farmers as MinDA started the campaign for increased production of food in Mindanao.
Their fear, indeed, has basis.
Over the last few days, I have worked on a concept of a Food Banking System where the farmer engages his local government unit to produce food needed in the relief operations for the COVID 19 Crisis.
He is then issued a Food Bank Receipt which he could use in availing of financing from a participating bank, a scheme which would free government from worries on where to get funding to feed the people in case the Pandemic stretches up to the end of the year.
This concept is now being dove-tailed with a scheme designed by businessman Rene Pamintuan whose General Santos-based company is involved in logistics and exports.
Pamintuan’s “Purchase Order” System of agricultural production involves determining the basic commodities which are needed during the crisis and beyond.
Here is Pamintuan’s explanation on his concept”
“If the market is there corporations and cooperatives will invest in those things.
“So, the issuance of POs to these corporations and cooperatives will change the matte and improve things on gravity basis
“What comes from top will come down.
“Our agri system tooday runs on production-led schemes – we produce to sell.
“Why not PRODUCE BECAUSE IT IS ALREADY SOLD?
“If the corporations are offering POs to the farmers, MARKET-DRIVEN, then farmers will produce with income guaranteed, prices and volumes guaranted to be bought.
“i am already doing that, issuing POs to farmers so they will produce. Government can do the same.
“Government issuing POs to rice farmers will prod them plant efficiently and productively, running after better revenues and volumes and profits.
“Offer them thru guaranteed POs higher volume prices delivery schedules. That singular thing and change will turn around our rice business.
“Our government can control and manage RICE if we do that. All it needs is monitor the farmers regularly and help them meet their protocols.”
These two concepts – Food Banking and the PO System – are now being dove-tailed and fine-tuned.
When this is done, MinDA will choose a Pilot Province where the program will be initially implemented.
(Graphics and illustration by the Mindanao Development Authority.)
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