The Department of Trade and Industry (DT) is seeking approval of a six-point three-year plan that would manage the country’s food logistics challenges, including smuggling and hoarding.
Ruth Castelo, DTI undersecretary, said the proposed food logistics action agenda that has been presented to the economic development group adopts a supply chain control tower approach involving multiple stages from farm gate to storage, distribution and retail.
Castelo said the plan involves the issuance of presidential directives creating an inter agency Committee on Food logistics, the institutionalization of the economic intelligence sub -task group and congressional action through legislation.
“Implementing a control tower approach in the food sector could provide real-time visibility in food availability, pricing, demand and potential disruptions. This could help in managing food security issues, reducing food waste, and curbing cartelization among other benefits,” Castelo said in a presentation.
The DTI acknowledges this would require significant investment in technology and infrastructure, data integration from multiple sources as well as coordination among numerous stakeholders in regulatory compliance.
“We would like to revolutionize the Philippine food distribution system from farm to port,” Castelo said.
The first step involves the upgrade of existing food terminals and the creation of additional food hubs and pilot the concept of agro-industrial business corridors in any of the areas in Baguio, Bataan, Clark, Cavite etc.
Second, Castelo said the DTI hopes to reduce transport and logistics costs by imposing a moratorium on pass- through fees, a moratorium on the imposition of additional port fees and other charges, zero tolerance on gray costs and legislation to regulate high international shipping charges.
Third, Castelo said the plan aims to increase investments in logistics infrastructure, such as transportation and storage.
Castelo said the Department of Public Works and Highways and the DTI are working on a cold chain integrative integrative distribution system.
Fourth, the plan calls for the adjustment of other supply chain gaps such as logistics and distribution, post-harvest management, market linkages, market information and access to finance.
Fifth, Castelo said the program aims to heighten enforcement measures against hoarding, smuggling, overstaying of food imports, and monitoring of warehouses or cold storage facilities.
“We have already started discussing monitoring of cold storage facilities with the Department of Agriculture. We also want to revitalize the sub-task group on economic intelligence which we have done in the past and which has actually generated a lot of results. If this is institutionalized, maybe through an executive order or through through whatever order of the President, this task group could produce a lot of results and probably help even a bit in preventing smuggling,” Castelo said.
The last involves the use of information and communication technology in improving logistics performance, from streamlining and automation of government permits and licenses to the integration of systems within the logistics ecosystem.
Castelo said if approved and legislated by 2026, the plan would have achieved the following results: reduce logistics costs; interoperable transport and logistics related systems created; at least one food hub in any of the high growth areas in Metro Manila or Region 3 or Region 4-A established; at least one food terminal upgraded into a Mercato; key food logistics infrastructures identified, funded and built; private sector investments in cold storage warehouses technology present; warehouse registry developed and; streamlined government processes and available online.
