Davao projects vie for farm modernization funding

DAVAO CITY, Philippines — The Agriculture department’s regional office has recommended 42 applications for support from the Agricultural Competitiveness Enhancement Fund. A statement quoted Rogelio C. Chio, regional Agriculture director, as saying that his office found these applicants viable, based on their feasibility studies. "Any project proposal that we found viable, feasible, profitable, and could generate jobs, will be recommended for approval and speedy release of funds," Mr. Chio said. Although the agency did not release the list of applications and the total amount involved, it said a number of them involved swine production, fisheries culture, banana production and post-harvest facilities for rice. One such project was designed to increase the drying capacity of a rice producer in Davao Oriental, considered the rice granary of the Davao Region. The department estimates that the entire agriculture sector loses about P50 billion annually to wastage due to poor or improper post-harvest storage. Ricardo L. Cachuela, Bureau of Post-harvest Research and Extension executive director, said that, of this amount, rice accounts for an estimated P23.8 billion worth of 2.27 million metric tons lost each year. He said rice losses could be brought down from a high of 15% currently by using mechanical driers and other modern post harvest facilities. Created under Republic Act 8178 of 1996 and funded through the tariffs on imported agricultural products, the Agricultural Competitiveness Enhancement Fund was designed to cushion the impact of opening up agriculture to global competition by enhancing production. Scheduled to end last year, the government extended its term to 2015 with additional P6 billion that will be used to extend loans without collateral and interest, payable in seven years, said Mr. Cachuela. — C. Q. Francisco, BusinessWorld