The Philippine agriculture sector is currently facing a significant challenge due to an oversupply of tomatoes, which has led to a sharp decline in farmgate prices and substantial wastage. This situation has brought to light existing shortcomings in the country’s logistics and storage infrastructure.
In regions such as Nueva Ecija, Nueva Vizcaya, and Pangasinan, the farmgate price of tomatoes has plummeted to as low as P4 per kilogram. Some volunteer organizations have stepped in to connect producers directly with consumers through online platforms to mitigate losses. However, many farmers continue to struggle with low prices and the inability to sell their produce promptly.
Retired agriculture professor Roy S. Kempis, now director of the Center for Business Innovation at Angeles University Foundation, emphasizes the need for investment in small- to medium-sized logistics infrastructure in production areas. He suggests that the Department of Agriculture (DA) could subsidize refrigerated trucks to transport produce to major consumption centers. Additionally, he advocates for private sector involvement in operating warehouses and investing in transportation assets, which could significantly reduce wastage of perishable goods like tomatoes.
The Samahang Industriya ng Agrikultura (SINAG) reports that the tomato oversupply persists, with produce being sold at minimal prices or even given away for free in certain provinces. A 22-kilogram crate of tomatoes is currently selling for as little as P80, equating to approximately P3.64 per kilogram. In some instances, middlemen have been purchasing tomatoes from farmers at just P2 per kilogram, barely covering transportation costs.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort proposes that digitizing agricultural trade could address these supply chain inefficiencies. By creating a more efficient marketplace, digital platforms could connect sellers with surplus produce to buyers in areas experiencing shortages. He also highlights the importance of integrating cold storage and processing facilities as part of these digital solutions.
The Department of Agriculture acknowledges the critical need for cold storage facilities to manage the seasonality of crops like tomatoes. Plans are underway to inaugurate a 5,000-ton capacity cold storage facility in Taguig City by 2026, aiming to reduce post-harvest losses and stabilize market prices.
Agriculture Secretary Francisco Tiu Laurel Jr. has previously noted that approximately 30% of the country’s agricultural produce is wasted due to inadequate logistics systems. He underscores the necessity for substantial investment in post-harvest facilities, including cold storage and agri-industrial ports, to minimize losses and lower commodity prices.
The current tomato surplus underscores the urgent need for improvements in the Philippines’ agricultural infrastructure. Enhancing logistics, expanding storage facilities, and embracing digital solutions are pivotal steps toward reducing wastage and supporting the livelihoods of Filipino farmers.
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