News Release

Gov’t employing ‘vertical integration’ to address issues in agri value chain



The national government is implementing the concept of ‘vertical integration’ to address the multi-faceted issues hounding the agriculture sector in the country, President Ferdinand R. Marcos Jr. said on Tuesday.

“There’s a very simple concept (na) tinatawag (na) vertical integration. Imbes na isang kumpanya may ginagawa, isa naging trader, isa naging marketing, isa retail. Pagka iba-iba ‘yan, maraming cost ‘yan paglipat. ‘Pag vertically integrated ‘yan, ‘pag kasama lahat ‘yan, wala ng cost ‘yun, tuloy-tuloy na lang hanggang sa retail,” the President said in a media interview after attending the 125th founding anniversary of the Department of Agriculture (DA) in Quezon City.

The chief executive noted that with the implementation of vertical integration, issues like hoarding and smuggling of agricultural products would be addressed.

“Lahat pinapatibay din natin and we are making sure that first of all, simple lang, ‘yung mga simpleng problema na hinarap natin. ‘Yung mga rice smuggling, sugar smuggling, onion smuggling, gagawin namin lahat para matigil ‘yan,” President Marcos said.

He cited that, early this year, the price of onion skyrocketed, reaching as high as 87%-price increase in the markets due to hoarding by unscrupulous traders.

“I think maliwanag na maliwanag na sa ating lahat na ‘yung pagtaas ng presyo by 87 percent noong nakaraang Pebrero – Enero, Pebrero – walang dahilan ’yun. Kumpleto ang onion natin dito. Nagho-hoard lang talaga at iniipit ang presyo,” the President said, adding that some organized syndicates had tried to control the use of cold storage facilities to manipulate the release of onions to the markets.

Meanwhile, the President said the operations of Kadiwa outlets in the country would only be sustained if the production and supply side is improved.

“The problem of the Kadiwa program now is production, supply. Kulang ang production natin… Kung may imported, hindi naman natin maibigay sa presyo na gusto natin. That’s the problem,” he said.

“Kaya kailangan ang bubuhay sa Kadiwa ay ang increased production of all agricultural commodities,” the President added.

Kadiwa ng Pangulo is a market linkage facilitation program of the DA, which aims at making products such as rice, poultry and livestock and other agricultural products accessible and affordable to the poor. Kadiwa also sells other processed goods produced by micro, small and medium enterprises (MSMEs) with the assistance of the Department of Trade and Industry.

It also aims to increase the income of farmers and other workers in the agriculture sector by getting rid of middlemen.#