Career Development on Agribusiness Industry Col. Alejandro T. Escaño President Philippine Chamber of Agriculture & Food, Inc. (PCAFI) October 2012 12th National PESO Congress Baguio City
STRATEGIC ROLES OF AGRICULTURE AND FISHERY • ECONOMIC– 15% of GDP direct, about 40% of GDP direct and indirect, most of domestic food, bulk of raw materials for agro-processing, and 10% exports. • LIVELIHOOD/SELF EMPLOYED- Over 12 million direct jobs • ENVIRONMENT- impact of water use, irrigation, deforestation, watershed, coral reefs, and climate change.
Agriculture is an investment PRIORITY • Agriculture provides food for people. • Increases in agricultural output can lead to cheaper food, benefiting both the urban and rural poor, who spend more than 41% of their income on food (Philippines).
AGRIBUSINESS AND SECTORAL LINKAGES Farm Inputs AGRICULTURE Grains, Fruits, Vegetables, Fiber, Tree Crops, Livestock, Fishery INDUSTRY Processing, Fertilizers, Plant/Animal Health, Machinery Food & Raw Materials SERVICES -Banking -Transport -Storage -Trade -Insurance
Agribusiness Supply Chain Players Cannery Dressing plant Mill Slaughter house Packing house Supermarket Restaurant Convenience store Seed supplier breeder Fertilizer distributor Crop protection provider Animal health provider Retailers Input suppliers Growers/ Producers Processors Distributors Consumers Farm machinery supplier Irrigation equipment provider Farmer Grower Animal Raiser Packaging products provider Wholesaler Importer Exporter Logistics provider
Agribusiness Supply Chain Players • The importance of agriculture & fisheries to the Philippine economy is greater than standard Gross Domestic Product (GDP) estimates because these capture only the production phase of value chains. • This understates the importance of agriculture and fisheries to the Philippine economy. If the share of manufacturing (e.g. food and beverage industries) and service sector activity that is directly dependent on the existence of domestic agriculture and fisheries production is taken into account, then a different picture emerges.
Agribusiness Supply Chain Players • Taking into account various multiplier effects, agriculture probably ‘drives’ about one-quarter (25 %) of GDP at this time, i.e. well above the 12-13% figure frequently cited (JICA)
Philippine Chamber of Agriculture and Food, Inc. (PCAFI) Composed of major players in the food, fisheries, agro-forestry, policy advocacy, distribution, processing in agriculture Vision A sustainable and globally competitive agribusiness* system that materially contribute to the Philippine economy */ Agribusiness system includes the entire stream of functions in the agricultural and fishery continuum.
GLOBAL OPPORTUNITIES IN AGRICULTURE • Rising incomes and wealth in China, Taiwan, India, ASEAN • Supply chain transformation • Biofuels boom • Technology advances (Life sciences + ICT) • Cross-border investments
China’s Achievement in AgricultureFarmers’ income increasedBy H.E. Ma Keqing Ambassador of PROC in RP In 2011, farmers’ annual nominal income reached 6,977 Yuan/person, with 10.8%annual rate of increase during 2000-2011
Comparison of PROC & RP in Agricultural SectorPopulation & FarmlandPopulation:By H.E. Ma Keqing Ambassador of PROC in RP • PROC: 1347 million (by end of 2011) • RP: 92.34 million (2010, NSCB) • Farmland: • PROC: 133 million hectare(2011) RP: 14.2 million hectareFarmland per capita: • PROC: 0.1 ha RP: 0.15 ha
Comparison of PROC & RP in Agricultural SectorGrain Productivity- Unit Yield,Kg/haBy H.E. Ma Keqing Ambassador of PROC in RP • PROC: Rice: 6693, Wheat: 4875, Corn: 5736 • World Average: 4374 3000 5215 • RP: 3677 2739
WORLD VEGETABLE CENTER IN TAIWAN MAUREEEN MERCOZZI – AVRDC Head Communication & Information
WORLD VEGETABLE CENTER GENBANK IN TAIWAN DR.ANDREAS EBERT – AVRDC GENBANK Manager
HAN KUANG VEGETABLE PRODUCTION COOPERATIVE IN TAIWAN TING-CHUAN LIAO - Chairman
BENCHMARKING AGRI GROWTH Philippines tailed in the 80s and 90s, and picked up in 2000s; private sector-led (% Average Annual Growth) Source: World Bank Development Indicators, 2004 and 2006; Asian Development Bank – Key Indicators of Developing Asia and Pacific Countries, 2007
Career Opportunities • Agri-technicians • Agri-extension Workers • Teachers / Trainers • Farm Supervisors • Farm Manager • Traders /Suppliers • Entrepreneurs
Farm Business Schoolin Jalajala, Rizal Diploma in Entrepreneurship
PREPARATION FOR CAREER OPPORTUNITIES IN AGRICULTURE • Ladderized approach to skills training • TESDA-accredited trainings range from 152 hours to 1,440 hours • National Certification by TESDA • TESDA training included in Certificate and Diploma in Entrepreneurship Scholarships Available!
PREPARATION FOR CAREER OPPORTUNITIES IN AGRICULTURE • Diploma in Entrepreneurship with Specialization: • Sustainable Agriculture • Eco-Farm Tourism • Farm Business • Agro-Forestry • Aquaculture • Food Processing • Urban Agriculture • Landscaping
PREPARATION FOR CAREER OPPORTUNITIES IN AGRICULTURE • 2-year Diploma courses lead to BS Entrepreneurial Management Courses in partner State Universities (University of Rizal System, Palawan State University & Ming Yuan College) • Curriculum design : 30% classroom and practicum 70% including On-the-Job Training (OJT) Placement • Student’s farm business ventures • Residential campus in Rizal, Palawan & Negros Occidental
Issues and Concerns • Agriculture has lost its appeal as career option • Benefactors focus on jobs that promise overseas employment • In the past, agriculture was thought in the classroom and field exposure is at a minimum • Preference for a 4-year course
Actions Taken / Recommendations • Emphasis on hands on training & OJT in successful farms of entrepreneurs • OJT period complete one production cycle to optimize learning and experience • Learning by doing • Ladderized two-year diploma programs for immediate impact • Scholarship / Pay it forward scheme for children of farmers
Helping one another • 87 graduating Diploma in Agricultural Entrepreneurship in MFI need start-up capital for micro-agri enterprises as new entrepreneurs • Government agencies like DOLE can help provide start-up support for young entrepreneurs