The Department of Agriculture (DA) said it remains optimistic that the planned development of the 20-hectare Korea Agriculture Machinery Industry Complex (KAMIC) in Cabanatuan, Nueva Ecija, will push ahead.
Agriculture Secretary Francisco Tiu Laurel Jr., said in a statement on Thursday the machinery complex project was among the goals of a recent visit of a Philippine delegation to the Korea Agricultural Machinery Industry Cooperative (KAMICO) in South Korea.
In October 2024, the DA, KAMICO and the local government of Cabanatuan City signed a memorandum of understanding to establish the country’s first local agricultural machinery manufacturing cluster to expand agricultural mechanization across the country, and increase productivity and food security.
The DA had said the project would stimulate local manufacturing and distribution, enhance crop quality, increase farmer incomes and produce tailored agricultural machinery.
“This project plays a crucial role in realizing President Ferdinand Marcos Jr.’s vision of a modernized Philippine agriculture—one that ensures food security and uplifts the lives of our farmers… It will also attract foreign investments, generate jobs and transfer newer technologies,” Tiu Laurel added.
The DA said that during the meeting, the delegation also addressed land lease issues, particularly the cost of renting the site in Cabanatuan City. The DA said it had committed to coordinate with the Nueva Ecija local government to determine a fair and mutually acceptable rental rate to facilitate the project’s smooth implementation.
However, the DA has yet to provide a likely timeline for the completion of the project as well as the specifics of its benefits as studies are still underway.
The agency said its delegation discussed with South Korean counterparts the package of investment incentives that the Philippine government could offer to foreign investors such as an income tax holiday for six years and a reduction of the corporate income tax rate from 25 percent to 20 percent for eligible projects.
The DA said a separate meeting was also held with Tong Yang Moolsan (TYM), a South Korea-based agri-machinery firm known for its customized tractors and advanced machinery solutions tailored to specific farm needs.
The agency said the company has been actively participating in Philippine agri-machinery roadshows and has supplied equipment under the Rice Competitiveness Enhancement Fund.
The DA urged TYM to also explore machinery production for high-value crops such as coffee, cacao, onion and coconut that can be used in the Philippines.
The agency said its delegation also met with Asia Tech, another South Korean agri-machinery company known for its innovations in rice and high-value crop machinery.
Asia Tech has expressed plans to actively participate in the KAMIC initiative by sourcing local materials for the construction of their machines to stimulate the development of a local supply chain in the Philippines.
“Asia Tech also committed to localizing their machinery designs to better suit the country’s unique agricultural conditions, ensuring improved efficiency and relevance for Filipino farmers,” the DA added.
