Career Development on Agribusiness Industry Col. Alejandro T. Escaño President Philippine Chamber of Agriculture & Food, Inc. (PCAFI) 12th October 2012 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 agroprocessing, and 10% exports. LIVELIHOOD/SELF EMPLOYEDOver 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). Importance of Agriculture Expenditure Group 2003 2006 43.1 41.4 13.1 12.7 Fuel, Light and Water 6.5 7.6 Education 4.0 4.4 Personal Care and Effects 3.9 3.7 Clothing, Footwear &Other Wear 2.9 2.4 Medical Care 2.2 2.9 Durable Furniture and Equipment 2.6 2.7 Household Operations 2.2 2.3 Alcoholic Beverages 0.7 0.7 Tobacco 1.1 0.9 Recreation 0.5 0.5 Non-Durable Furnishings 0.2 0.2 House Maintenance and Minor Repairs 0.7 0.5 Taxes Paid 2.1 1.6 Miscellaneous Expenditures 2.6 1.4 Other Expenditures 2.9 3.0 Food Rent/Rental Value of Dwelling Unit AGRIBUSINESS AND SECTORAL LINKAGES Farm Inputs AGRICULTURE Grains, Fruits, Vegetables, Fiber, Tree Crops, Livestock, Fishery Food & Raw Materials SERVICES -Banking -Transport -Storage -Trade -Insurance INDUSTRY Processing, Fertilizers, Plant/Animal Health, Machinery Agribusiness Supply Chain Players Seed supplier breeder Fertilizer distributor Crop protection provider Animal health provider Input suppliers Farm machinery supplier Irrigation equipment provider Growers/ Producers Cannery Dressing plant Mill Slaughter house Packing house Processors Farmer Grower Animal Raiser Packaging products provider Supermarket Restaurant Convenience store Distributors Wholesaler Importer Exporter Logistics provider Retailers Consumers 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, agroforestry, 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 H.E. Ma Keqing Ambassador of PROC in RP with PCAFI Chairman China’s Achievement in Agriculture Farmers’ income increased By H.E. Ma Keqing Ambassador of PROC in RP CNY 6000 5000 4000 3000 2253.42 2000 1000 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 0 2000 In 2011, farmers’ annual nominal income reached 6,977 Yuan/person, with 10.8% annual rate of increase during 2000-2011 6977.00 7000 12 Comparison of PROC & RP in Agricultural Sector Population & Farmland Population: 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 hectare Farmland per capita: • PROC: 0.1 ha RP: 0.15 ha Comparison of PROC & RP in Agricultural Sector Grain Productivity- Unit Yield,Kg/ha By H.E. Ma Keqing Ambassador of PROC in RP • PROC: Rice: 6693, Wheat: 4875, Corn: 5736 • World Average: 4374 • RP: 3677 3000 5215 2739 AVRDC IN TAIWAN Research to promote development § Founded in 1971 as the Asian Vegetable Research and Development Center with a regional research focus on Asia § Our research and development is nonprofit § Our research outputs are global public goods § The World Vegetable Center has an expanding global role with a growing network of regional offices Slide 2 (6/2012) www.avrdc.org Alleviate poverty and malnutrition in the developing world through the increased production and consumption of healthpromoting vegetables. 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) 1980-1990 1990-2000 2001-2008 Indonesia 3.6 2.1 3.4 Malaysia 3.4 0.3 3.3 Philippines 1.0 1.7 3.8 Thailand 3.9 4.2 3.0 China 5.9 4.1 4.2 Vietnam 2.8 4.3 3.9 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 NEW BREED OF FARMERS (MFI - Farm Business Institute) Farm Business School in 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 Aquaculture Eco-Farm Tourism Food Processing Farm Business Urban Agriculture Agro-Forestry 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 It’s time to be a GREEN entrepreneur! THANK YOU!