How better infrastructure investment can help the Philippines’ agricultural sector
Blogs
July 3, 2023
While the Philippine economy is now largely based on services and manufacturing, agriculture remains a vital sector. Combined with forestry and fishing, agriculture accounts for about 9.1% of the country’s GDP as well as approximately 24.5% of the workforce. Notably, even with services and manufacturing accounting for most of the national GDP, the agricultural sector remains the key industry in most of the country’s regional economies. Additionally, as agriculture had been the Philippines’ main industry for centuries, the sector continues to be a key component of the country’s national identity.
Unfortunately, the Philippine agricultural sector is now struggling to maintain relevance in a fast-changing global market. The sector is facing several challenges that hinder its growth and profitability, much of it related to inadequate infrastructure. In this article, we will explore how targeted investments in modern infrastructure may help boost the country’s struggling agricultural sector.
Developing water resources through better irrigation
Irrigation is a critical factor in agricultural productivity, especially in countries with erratic water security like the Philippines. The Philippines’ geography and the distribution of freshwater resources effectively limit the regions where certain high-value crops could be grown. Growing water-hungry staples like rice outside of some regions can also be highly unprofitable, particularly when vital water infrastructure like irrigation canals and pumps are lacking.
As a rice-growing nation, irrigation is especially important for Philippine agriculture, particularly outside of its few major floodplains. However, as climate change alters the predictability of rainfall, formerly productive areas are now struggling to keep up with the country’s growing demand for produce.
Fortunately, existing water resources should be able to keep up with demand provided that modern irrigation is made available in areas that lack a year-round supply of freshwater. Notably, according to the Philippine Statistic Authority, the land area serviced by irrigation facilities in 2020 accounted for 63% of all irrigable land, estimated at 3.13 million hectares. Further expanding irrigation infrastructure should create better opportunities for farmers, empowering local economies. The government and its private sector partners should also harness lessons learned from developing water infrastructure and water treatment facilities for urban environments to determine which methodologies and technologies can be applied to agriculture in order to improve farming communities’ access to water for irrigation.
With improved irrigation systems, farmers in disadvantaged areas can reliably increase crop yields and improve the quality of their produce without having to rely on increasingly erratic rainfall. Better irrigation can also help farmers to diversify their crops, preventing an over-dependence on monoculture. This can lead to better, more predictable incomes for farmers and contribute to the global competitiveness of the domestic agricultural sector.
Better irrigation can also help mitigate the worrying effects of climate change on local agriculture. Each year, typhoons and droughts cause billions of pesos in damage to local crops, causing massive problems for local farming communities. Irrigation, particularly modern closed systems that prevent evaporation and contamination, can also make it easier for farmers in water-poor areas to bounce back from typhoons and other natural calamities.
Electrification is critical for modern agriculture
As of 2020, about 96% of communities in the Philippines have access to electricity. While this is impressive, it still leaves millions of Filipinos without access to power. A large proportion of those without access to electricity are farming communities due to the cost and complexity of electrifying sparsely populated areas. In addition, millions more rural Filipinos only have partial access to electricity, with rolling power outages still a fact of life in the countryside.
This is problematic, as a lack of electricity in the countryside limits the use of modern technologies. Modern productivity tools such as irrigation pumps, tractors, and produce processing equipment all require stable electricity. Without proper electrification, millions of farmers have to rely on inefficient production methods and technologies, limiting their competitiveness. Electrification is, therefore, not just a matter of material comfort but a prerequisite to modernized Philippine agriculture.
With access to electricity, farmers can use modern technologies to reduce drudgery, improve efficiency, and increase yields. For example, electric pumps can be used to access underground water for irrigation, freeing up time to do other critical labor and reducing water wastage compared to manual pumps. Similarly, new technologies like drones can be used to assess fields in minutes rather than days, reducing the physical labor involved in farming.
Moreover, electrification can also help Filipino farmers to diversify their income sources, particularly during fallow periods and off-season. With better access to electricity, Filipino farmers can engage in other potentially lucrative activities such as food processing and handicraft production, creating additional income streams and contributing to the overall growth of their community.
Connecting farmers to supply chains with farm-to-market roads and airports
A lack of good roads and airports has long hindered Philippine agriculture. Many farm-to-market roads remain unpaved or otherwise disconnected from major highways, greatly slowing down the transportation of produce and compromising the quality of fruits and vegetables. Similarly, the ability of Philippine farms to sell high-quality produce to premium markets in Metro Manila and overseas is hampered by the lack of airports in the countryside.
These facilities are also essential for improving education and healthcare outcomes. Better roads, in particular, improve rural communities access to vital services such as healthcare and education. Rural airports can also make it easier for emergency response teams to access faraway communities in case of emergencies. Improving roads and developing airports in rural areas should not only boost Philippine agriculture but also lead to a sea change in the quality of life available in the countryside.
Modernizing Philippine agriculture through better digital connectivity
Stakeholders in Philippine agriculture should not overlook the importance of better digital connectivity. Digital inclusion is especially important for agricultural businesses and farmers as it provides them with an abundance of valuable resources as well as access to global markets.
With better connectivity, farmers can access valuable market information, weather forecasts, and highly qualified advice to make better farming and business decisions. They can also use digital technologies to quickly identify various pests and crop diseases as well as optimal planting and harvest times. They can even access satellite imagery to track storms or give a quick overview of crop conditions.
Furthermore, digital connectivity can also help Filipino farmers engage in e-commerce, allowing them to reduce their dependence on middlemen while also giving them access to a broader market. This direct market access may even help shield beleaguered farmers from exploitation and allow them to earn better incomes.
Fortunately, the Philippines is currently well on its way to providing important digital infrastructure throughout the Philippine countryside. Companies like Aboitiz InfraCapital are now helping with the development of effective low-cost digital communications solutions in previously unconnected parts of the country. Low-cost, high-impact technologies like common towers and small cell sites are now connecting a growing number of local farmers and agricultural businesses throughout the Philippine countryside.
Less waste and more profits through improved local post-harvest facilities
Investment in local post-harvest facilities can help farmers deliver value-added products and stave off post-harvest losses, effectively increasing their useful yields and their income. Even simple solar dryers and storage facilities can make a massive impact on many less-developed farms. More advanced facilities located within major farms may even create positive changes that affect entire generations of farm workers.
With better storage facilities, farmers can store their products for longer periods, reducing the need to sell their produce immediately after harvest when prices are at their lowest. Improved processing facilities can also help farmers add value to their products, enabling them to sell them at higher market prices. Moreover, better facilities closer to the farms can help farmers reduce their transportation costs, reducing spoilage as well as the overall cost of marketing their produce. Together, these benefits can help increase their competitiveness and contribute to the overall development of the Philippine agricultural sector.
Better infrastructure prevents unsustainable agricultural practices
With the country’s population continuing to rise, infrastructure investments in Philippine agriculture are as much a matter of long-term food security as they are of global competitiveness. The Philippine agriculture sector has had many recent successes in driving sustainability, but it remains to be seen if present initiatives are enough to offset the challenges of climate change, overpopulation, and market inequity.
Better infrastructure may not solve all the sustainability problems faced by Filipino farmers but improving it will be an important step. Fortunately, most of the modern infrastructure investments mentioned thus far not only will help increase profit margins for local farmers but will also help conserve dwindling agricultural resources. Better infrastructure promises to not only help farmers make more efficient short-term use of land but it should also help them become better stewards of the soil and water for generations to come.
Building a food-secure future with Aboitiz InfraCapital
Thanks to decades of consistent effort by multiple successive government administrations and private sector entities like Aboitiz InfraCapital, Filipino farmers are now more capable and more productive today than they have ever been. However, there is still much that needs to be done to help our farmers’ competitiveness and productivity.
Investing in better infrastructure, particularly in the areas mentioned above, will be critical for not only boosting the Philippine agricultural sector’s productivity but also improving the lives and incomes of Filipinos in the countryside. Expanding current rural infrastructure initiatives should, therefore, not only contribute to national food security but also help bridge a longstanding rural-urban divide. Working together, Filipinos in both the cities and the countryside can yet achieve a more food-secure and prosperous future.
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MEZ2, Lapu-Lapu City LGU team up for drainage clea...
September 9, 2021
In line with its efforts to promote sustainable practices in the local community, Mactan Economic Zone 2 has partnered ...
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Press Release
Aboitiz leads with environment, social, and govern...
September 3, 2021
In line with the Aboitiz Group’s strong commitment to operate its businesses employing sustainable strategies, the Ab...
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Press Release
Apo Agua continues COVID-19 aid in Davao to help p...
August 13, 2021
Apo Agua Infrastructura, Inc. reinforced its long-standing commitment to ensuring the health and safety of its host co...
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Press Release
How small cells help address connectivity gap, ush...
August 13, 2021
MNOs are looking to further fortify their networks with small cells for 5G upgrades. By providing more targeted network...
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Press Release
PSA, LIMA Estate team up for National ID registrat...
July 23, 2021
To help speed up the registration of Batangueños for the National ID, the Philippine Statistics Authority (PSA) has te...
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Press Release
Transformation of Batangas’ first masterplanned ...
July 14, 2021
Aboitiz-owned LIMA Land, Inc. is capitalizing on the anticipated boom of business process outsourcing (BPO) companies o...
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Press Release
Lipa City, LIMA Land partner for vaccination hub...
June 21, 2021
The Lipa City government is teaming up with LIMA Land, Inc. to set up a vaccination hub within LIMA Estate’s premier ...
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Press Release
Edustria High School at LIMA Estate sets up studen...
June 15, 2021
Despite the challenges students, teachers, and schools are facing today with the ongoing pandemic, Edustria High School...
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Press Release
Aboitiz, MCIAA sustain MEZ II operations throughou...
June 4, 2021
More than a year since the first community quarantine in Lapu-Lapu City, Cebu, Mactan Economic Zone II (MEZ II) continu...
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Press Release
Industrial-anchored townships in CALABA to spur re...
May 31, 2021
The increasing demand for industrial-anchored developments with commercial and residential components in the Cavite, La...
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Press Release
Lima Water build foundations for Smart Water Netwo...
May 17, 2021
To ensure that industrial locators within LIMA Estate will continue to enjoy a reliable and sustainable water supply fo...
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Press Release
Apo Agua, DCWD turn over rainwater catchment and h...
May 6, 2021
Fortifying its commitment to support its host communities, Apo Agua Infrastructura, Inc. (Apo Agua), together with Dava...
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Press Release
Aboitiz InfraCapital, Partners Group team up for c...
April 29, 2021
Aboitiz InfraCapital, Inc. (Aboitiz InfraCapital) has agreed to form a joint venture with leading global private market...
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Press Release
Aboitiz Integrated Economic Centers well-positione...
April 21, 2021
New locators at Aboitiz InfraCapital’s Integrated Economic Centers are well-positioned to avail optimum tax benefits ...
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Press Release
Aboitiz offers commercial lots within LIMA Estate ...
April 16, 2021
LIMA Land, Inc. is launching the next phase of its commercial zone’s transformation, with the introduction of commerc...
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Press Release
Apo Agua achieves 5 million safe man-hours...
April 14, 2021
Apo Agua Infrastructura, Inc. (Apo Agua) through its Engineering, Procurement, and Construction Contractor J.V. Angeles...
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Press Release
GUESS opens its first outlet store in Batangas at ...
March 29, 2021
American clothing retailer GUESS recently opened its first-ever outlet store in Batangas at ‘The Outlets at Lipa’. ...
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Press Release
Davao City Water District, NexCities Project recog...
March 27, 2021
The Davao City Water District (DCWD) and the Newton Prize-winning NexCities Project Team were honored along with 17 oth...
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Press Release
Aboitiz InfraCapital at the forefront of innovativ...
March 16, 2021
The Aboitiz Group, through its infrastructure arm Aboitiz InfraCapital, Inc. (AIC) is championing the country’s capab...
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Press Release
Aboitiz InfraCapital sets P13B CAPEX, allocates P2...
March 12, 2021
Aboitiz InfraCapital, Inc. is earmarking over PhP13 billion in total consolidated capital expenditures (CAPEX) with its...
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Press Release
PH Red Cross partners with ‘The Outlets at Lipa...
March 8, 2021
To further support the country’s mass testing efforts against the COVID-19 pandemic, the Philippine Red Cross (PRC) h...
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Press Release
Aboitiz’s LIMA Land recognizes long-time partner...
March 1, 2021
Shares expansion plans that can generate up to 20,000 jobs LIMA Land, Inc. – operator of LIMA Technology Center in Li...
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Press Release
Handyman opens 177th store in LIMA Exchange, Batan...
February 26, 2021
In line with its goal to have a better, braver and bolder 2021, hardware and improvement store chain Handyman Do-it Bes...
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Press Release
Aboitiz leaders embrace, ‘instill’ innovation ...
February 11, 2021
Aboitiz executives must take a long-term view and further champion innovative strategies to succeed amid and beyon...
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Press Release
Globe partners with Aboitiz InfraCapital to provid...
December 23, 2020
Globe Telecom and Aboitiz InfraCapital (AIC), the infrastructure arm of the Aboitiz Group, join forces in accelerating ...
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Press Release
LIMA Estate poised to be Calabarzon’s next leadi...
December 9, 2020
The Aboitiz Group’s Lima Land, Inc. will expand LIMA Estate in Batangas in response to the increasing demand for ind...
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Press Release
Strict COVID-19 guidelines and open format make Ch...
December 4, 2020
To enjoy shopping and dining with peace of mind this Christmas season, one can go to places that are masterfully design...
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Press Release
Aboitiz businesses optimistic of sustained strateg...
November 4, 2020
Amid the ongoing challenges posed by the Coronavirus Disease 2019 (COVID-19) pandemic, the various business units of th...
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Press Release
Aboitiz unveils expansion plans for West Cebu Indu...
November 3, 2020
New development expected to generate 5,000 new jobs by end of 2022 Cebu Industrial Park Developers, Inc. (CIPDI)—a jo...
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Press Release
Globe, Dito partner with Aboitiz InfraCapital for ...
October 30, 2020
Telecommunications companies Globe Telecom, Inc. and Dito Telecommunity Corporation have partnered with Aboitiz InfraCa...
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Press Release
Aboitiz InfraCapital ready to deploy small cell ne...
October 7, 2020
Aboitiz Group’s infrastructure arm Aboitiz InfraCapital, Inc. is venturing into the small cells business to supplemen...
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Press Release
Lima Water ensures adequate, clean water supply am...
September 18, 2020
Aboitiz InfraCapital’s wholly owned subsidiary Lima Water Corporation (LWC) assured it will continuously provide adeq...
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Press Release
Lima Water laboratory gets DENR accreditation...
July 30, 2020
The laboratory services unit of Lima Water Corporation (LWC) was recently accredited as an environmental testing labora...
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Press Release
Apo Agua ramps up construction for bulk water proj...
July 21, 2020
In line with its commitment to fast track the delivery of safe and sustainable water to Davaoeños, Apo Agua Infrastruc...
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Press Release
Aboitiz underscores long-term sustainability goals...
July 20, 2020
The Aboitiz Group reaffirms its commitment to operate its businesses with a sustainability mindset that upholds best pr...
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Press Release
Lima Water extends support in Batangas to help fig...
June 8, 2020
Lima Water Corporation, the exclusive water and wastewater services provider of Lima Technology Center in Batangas, has...
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Our Businesses
Apo Agua...
May 14, 2020
Apo Agua Infrastructura, Inc. is building one of the Philippines’ largest private bulk water supply facilities throug...
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Our Businesses
LIMA Water...
May 14, 2020
Lima Water Corporation provides end-to-end water and wastewater services for multinational companies based in Lima Tech...
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Press Release
Aboitiz supports BBB anew; heeds call for private ...
May 13, 2020
Aboitiz Group infrastructure unit Aboitiz InfraCapital Inc. welcomes the government’s renewed commitment to pursue ke...
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Sustainability & CSR
Our CSR efforts...
True to our brand promise to Advance Business and Communities, Aboitiz InfraCapital and its business units are committe...
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Sustainability & CSR
Our Sustainability Framework...
Framework To drive sustainability throughout its business, Aboitiz focuses on three key areas based on the triple botto...
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Sustainability & CSR
Sustainability at Aboitiz...
Over the years, sustainability has been our ubiquitous term in covering our environmental management, labor practices, ...
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Press Release
Aboitiz taps Ireland-based daa International for r...
March 27, 2019
Aboitiz infrastructure business unit Aboitiz InfraCapital, Inc. has teamed up with Irish airport operations company daa...
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Press Release
CAAP grants Aboitiz ‘original proponent status...
March 4, 2019
Aboitiz InfraCapital, Inc. (AIC), the infrastructure business unit of the Aboitiz Group, was granted Original Proponent...
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Press Release
Aboitiz InfraCapital, DICT sign MOU for telecommun...
February 8, 2019
Aboitiz InfraCapital, the infrastructure business unit of the Aboitiz Group, is seeking to build, operate, and maintain...
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Press Release
Aboitiz debuts water business at the 2019 IWA conf...
January 22, 2019
Aboitiz InfraCapital, Inc., the fifth leg and newest business venture of the Aboitiz Group, is optimistic on the opport...
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Press Release
Aboitiz bullish on regional airport projects...
January 8, 2019
Aboitiz InfraCapital, Inc. (AIC), the Aboitiz infrastructure unit, is optimistic that its regional airport projects wil...
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Press Release
Apo Agua holds bulk water supply project construct...
November 26, 2018
Apo Agua Infrastructura, Inc. (Apo Agua), a joint venture company between Aboitiz Equity Ventures, Inc. (AEV) and J.V. ...
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Press Release
Aboitiz secures ‘original proponent status’ fo...
September 28, 2018
Aboitiz InfraCapital, Inc. (AIC), the infrastructure business unit of the Aboitiz Group, has been granted “Original P...
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Press Release
Aboitiz InfraCapital submits unsolicited proposal ...
March 7, 2018
Aboitiz InfraCapital, the infrastructure business unit of the Aboitiz Group, submitted today an unsolicited proposal to...
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Press Release
‘Superconsortium’ eyes NAIA transformation int...
February 13, 2018
Share on Facebook Share on Twitter Share on Google+ Share on Linkedin Share on Pinterest Following the submission of it...
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Press Release
Aboitiz InfraCapital consolidates water investment...
August 3, 2017
The Aboitiz Group has consolidated all its water investments under its infrastructure unit Aboitiz InfraCapital, Inc., ...
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