I. Title                         Market Development Services

II. Rationale

Background

The Department of Agriculture has envisioned institutionalizing the concept of “Agriculture as Agribusiness”. It recognizes the need for farmers and fisherfolk to move from present state of subsistence to one where they are driven to produce in order to meet demands in both domestic and international markets.

Therefore, the emphasis of market-driven production is for farmers and fisherfolks to program their activities in response to economic signals, make production more efficient and farming more profitable. In essence, it seeks to transform farmers and fisherfolks into entrepreneurs.

However with the advent of the country’s membership to WTO, Trade and Industry globalization and liberalization will be a major concern of the Philippine economy. To the Filipino consumers, a borderless economy may indicate the enjoyment of easy access to a wide range of goods and services; but to the Filipino farmer producers, this will pose a threat to their livelihood.

State of the Market System

Republic Act 8435 also known as the Agricultural and Fisheries Modernization Act (AFMA) aims to strengthen the agriculture and fishery sector through modernization, greater participation and people empowerment. AFMA signals for strengthening and redirecting government’s bureaucracy towards market orientation coupled with sustainability of production resources.

Given the Department’s agribusiness thrust, the priorities, targets and concerns, identified in each component must be guided by this agribusiness orientation. One important factor in the successful development of the agricultural sector is a well-functioning agribusiness and market system, which would allow farmers and fishers to reap fair returns for their products.

Investments are also necessary to maintain and expand the sector, enabling it to contribute to economic development. It is therefore imperative in this context to pursue an aggressive organization of Agribusiness and Marketing System so that the said agribusiness sector could be effectively integrated into the mainstream of respective (national, regional, provincial, municipal) economy.

Strategic Directions

Agribusiness and marketing Assistance Division (AMAD) shall serve as the regional counterpart and coordination unit of the Agribusiness and Marketing Assistance Services (AMAS). It foresees to empower the private sector particularly the farmers and fishers as entrepreneurs, to develop competitive agribusiness enterprises that will contribute to income enhancement and profitability, global competitiveness, poverty alleviation and social equity, food security and sustainability.

The division seeks not only the generation of farmers’ and fishers’ income but also aspires for the transformation of the majority of the Filipino farmers and fishers into entrepreneurs engaged in agribusiness.

Foremost, the biggest challenge faced by the division is the shift in the mindset of the majority of farmers and fishers and also of the government bureaucracy to a market-driven orientation.

III. Objectives

General

1. To promote growth and development in the region’s agribusiness sector.

Specific

1. To provide farmers and fishers/coops more and better access to markets.
2. To institute market matches/linkage among producers, traders and processors.
3. To provide technical assistance to interested farmers/fishers/coops engaged in profitable business out of agriculture.
4. To establish/organize a regional marketing umbrella.
5. To generate and disseminate agribusiness information and investment.

IV. Component Activities

Activities and Outcomes

Specifically, the program will focus on the following activities:
1. Market Access and Development Promotion
2. Institutional strengthening and provide market development support
3. Promotion of Product Standards and Marketing Systems
4. Generate/Disseminate Agribusiness Information
5. Development Enterprises
6. Investment Promotion through the conduct of agribusiness dialogues, fora and consultations

Project Output

1. Agrifairs conducted and participated
2. Market linkages/trade missions/encounters facilitated
3. Regional/Provincial Marketing Umbrella organized
4. LGUs assisted in the establishment of municipal/barangay food terminals, trading centers, livestock oksyon markets (LOMs)
5. Seminars on Good manufacturing Practices and Hazard Analysis Critical Control Points, Product Packaging and Labeling and other similar activities
6. Market intelligence/ assessment and monitoring
7. Organizations assisted in availing tariff exemption
8. Establishment of agribusiness database
9. Investment generation and promotion through the conduct of investment fora

Beneficiaries

1. Individual Farmers/Entrepreneurs
2. Groups/Association