Philippine Chamber of Agriculture and Food Inc. Urges Legislators to Pass Measure for Earmarked Funds in Agriculture Development

Strategic Insights -

The Philippine Chamber of Agriculture and Food Inc. (PCAFI) has urged lawmakers to pass a measure that would earmark tariff collections from agricultural imports to their respective sectors to fast-track their development and modernization. PCAFI cited the success of the Rice Competitiveness Enhancement Fund (RCEF) and the Salt Industry Development and Competitiveness Enhancement Fund (SIDCEF) as models for other industries such as cacao, coffee, sugar, tobacco, and vegetables. The group also proposed the abolition of the Minimum Access Volume (MAV) system for imported pork, chicken meat, and corn, arguing that it is outdated and no longer necessary.

Key Takeaways:

  • PCAFI urges lawmakers to pass a measure that would earmark tariff collections from agricultural imports to their respective sectors to fast-track their development and modernization.
  • The RCEF and SIDCEF are cited as successful models for other industries such as cacao, coffee, sugar, tobacco, and vegetables.
  • PCAFI proposed the creation of earmarked funds for these industries, which currently receive minimal annual budget from the government.
  • The group also called for the immediate signing into law of the Animal Industry Development and Competitiveness Act that will create an annual earmarked fund with an estimated value of P20 billion for the development of the local livestock, poultry, dairy, and corn industries.
  • PCAFI also proposed the abolition of the MAV system for imported pork, chicken meat, and corn, arguing that it is outdated and no longer necessary.
  • The group sought for the full implementation of Republic Act 7884 that mandates commercial milk processors and traders to secure at least five percent of their milk supply from local sources.
  • PCAFI recommended the amendment of the Livestock and Poultry Feeds Act to address the current needs of the domestic animal feed industry.

Statistics:

  • The RCEF has been commended as a good model in developing an agricultural industry since rice tariffs collected are plowed back for the industry's development.
  • The SIDCEF was patterned after the RCEF.
  • Tariff collections should be earmarked to the commodity sector where it was generated to help develop the said industry, according to PCAFI president Danilo Fausto.
  • The Agricultural Competitiveness Enhancement Fund (ACEF) expired three years ago.
  • The Animal Industry Development and Competitiveness Act will create an annual earmarked fund with an estimated value of P20 billion.
  • The volume of importation is more than 15 times the MAV for imported pork, chicken meat, and corn.
  • Republic Act 7884 mandates commercial milk processors and traders to secure at least five percent of their milk supply from local sources.

Sources:

  • Philippine Chamber of Agriculture and Food Inc. (PCAFI)
  • The Philippine Star, "PCAFI urges lawmakers to pass measure for earmarked funds in agriculture development"