WHILE it was President Ferdinand “Bongbong” Marcos Jr. who inaugurated the new grains terminal and trading station in Batangas City last week, it should be noted that this agricultural and marketing facility would not have seen the light of day without the private sector.
The Batangas grains hub was established at a cost of P278.3 million through the efforts of the private sector, particularly the Sorosoro Ibaba Development Cooperative (SIDC), and the national government.
In fact, Sorosoro Ibaba contributed P178.3 million in cash and in kind to the project, almost double the combined investment of the Department of Agriculture’s Philippine Rural Development Project (PRDP) and the World Bank which provided a loan.
Agriculture Secretary Francisco Tiu Laurel Jr. said the establishment of a grains terminal is aimed at consolidating corn supply to lower the cost of animal feeds and consequently bring down the prices of poultry and livestock in the Southern Tagalog Region.
SIDC, founded in 1969, is one of the largest agriculture-based cooperatives in the country. This cooperative proved to everybody that the coop business model, if handled properly, can be a phenomenal business success, just like corporations and conglomerates.
‘What happened in Batangas can be replicated in other parts of the country, through partnership between the government and the private sector for infrastructure and development projects.’
The new grains terminal project will enhance SIDC’s existing feed mill by incorporating a silo operation with a capacity of 12,000 metric tons.
A successful businessman before he was convinced by the President to take on the job of agriculture secretary, Tiu Laurel Jr. appreciated how the cooperative expanded its production capacity in step with the needs of the time.
In 2021 when the country was trying to recover from the pandemic, the SIDC invested in a state-of-the-art rice mill with a processing capacity of five tons per hour. With an enhanced feed mill and a state-of-the-art rice mill, the cooperative is expected to strengthen its role in the agricultural supply chain.
The new facility will be a major hub for yellow corn and other ingredients for animal feed. It is designed to enhance corn production and marketing, to the benefit of farmers, hog and poultry raisers.
Secretary Tiu Laurel noted the project will benefit 567 corn producers, hog raisers, and poultry farmers.
“This project, backed by the World Bank and initiated by SIDC, is a testament to what we can achieve for our farmers and fishers when we collaborate and cooperate. This new grains terminal and trading hub will not only put more money in our farmers’ pockets but will lower the cost of producing poultry and hogs, helping ensure a stable supply and affordable food prices for many Filipino consumers,” Laurel said in a statement.
He added that the grains terminal has the potential to create significant change in the agriculture sector, especially to rural communities.
What happened in Batangas can be replicated in other parts of the country, through partnership between the government and the private sector for infrastructure and development projects. This can be made possible through a broad spectrum of modalities, as defined in the current Public-Private Partnership (PPP) program.
We note that while PPP in infrastructure and transportation projects may have long-term social impact, those in agriculture and trade of agricultural products are better enhancers of the local economy for they generate everyday jobs for the common people.
