PROSPECTS OF COMMERCIAL VEGETABLE PRODUCTION

IT IS POSSIBLE TO MAKE MONEY FROM GROWING VEGETABLES COMMERCIALLY.

By Arsenio ‘Toto’ Barcelona

The vegetable industry is unpredictable, even when predictions are based on statistical data. Allow me to veer away from a statistical presentation so that I can share with you what comes from my gut feel, as two thirds of my year is spent with vegetable farmers, input suppliers, and traders, and visiting markets. I consider this my research and development (R&D) activity, necessary for Harbest and Known-You Seed Philippines to be on top of business opportunities. The following are my predictions for 2015.

The major players for vegetable seeds supply are East-West Seed Co., Allied Botanical, Ramgo, Kaneko, Seminis, the Institute of Plant Breeding, the Department of Agriculture (DA) Research Stations, Known-You Seed Philippines, Harbest, contract growers of open pollinated varieties (OPV) seeds, and unlicensed importers of seeds.

The growing population, diversification of growing areas, tourism growth, and increasing use of hot pepper, bell pepper, and cucumber for processing provide improved market potential and growth for seed companies with new and better varieties.

The seed business is still 80% a trading business. Local breeding is still very limited due to low investment and availability of qualified breeders. Furthermore, our erratic weather conditions do
not allow for the long-term production of seeds. Many varieties are still imported from India, Thailand, Taiwan, Japan, Vietnam, the USA, and Holland. However, the next few years will see more investment in weather-resilient varieties. Allied, Kaneko, and Ramgo have local breeding facilities while East-West and Known-You has a wider international-scale breeding and production of seeds.

Smuggling by small traders is attractive and will continue to attract them to hand-carry or “import,” by courier, seeds from China and Thailand.

Research on varietal improvement for ampalaya, tomato, squash, pole sitao, and cabbage are ongoing, funded by the Philippine Council for Agriculture, Aquaculture and Natural Resources Research and Development (PCAARRD) of the Department of Science and Technology (DOST). Research is also being done on hybridization, disease tolerance, and adaptability to climate change. Overall, the funding provided for research has increased, but we are still behind what Taiwan and Thailand have achieved.

Joni Sanchez enters contracts with subdivision lot owners and those with small farm lots, offering his services in land cultivation, seedling supply, and an instant
vegetable garden package in San Pablo, Laguna and vicinity. Here he is harvesting lettuce in his urban demo farm.

There are also no full-time experts doing the breeding work with public funding. Most of the serious breeding is done by the private sector. The Institute for Plant Breeding is doing its share with Dr. Rodel Maghirang and his State University research partners implementing crop improvement studies, although on a very limited scale. The ease in importing new improved varieties from established seed producing areas still attracts seed companies to do rebranding of bulk imports. This will be the practice for several more years.

Research on organic seeds produced organically won’t be viable for the short-term, as the market for organically grown vegetables is not so strict about using organic seeds. The emphasis of the Asian markets—should there be strong-hearted investors willing to tap the market—is still on the production protocol adhering to organic fertilizers, pest, and disease control. The market is strict when it comes to toxic residues.
Production

1. The investment in new growing areas in the provinces is expanding. Good news about successful vegetable farmers featured in Agriculture Magazine (edited by Zac Sarian) and other publications encourage professionals, OFWs, and young college graduates with inherited land to venture into high-value farming with vegetables. Lettuce, melons, cucumber, Red Lady Papaya, super sweet corn, hot pepper, bell pepper, eggplant, and leafy vegetables are choice crops.

2. Drip irrigation and fertigation technologies from Israel, India, Korea, and the USA will have good potential markets as more of these young, educated farmers taste the good profitability in high-value farming. Educating them on proper systems operations and agronomic technology will provide the competitive edge for input suppliers. Hopefully, we can also claim what the Indians did several years back: that drip irrigation’s widespread application from zero to three million hectares in ten years became the reason for its ‘agriculture miracle.’” These technologies will have a dramatic growth in smallholder farmers’ field applications.

Buttercup lettuce grown with Jain Turbo Aqura drip lines used for irrigation and fertigation. This system saves 70% on labor, 80% of the water used, 30% on the fertilizer used, and produces very high quality
lettuce for the fresh market.

3. Simple farm mechanization will play an important role in improving farm management efficiencies and lowering production costs. The Harbest Agri+Engineering Department handling small hand tractors and shredders is experiencing significant sales growth. This will continue in 2015 as we open up in-house financing schemes as well as credit card installment payments. Government subsidies for their procurement will still be very limited despite the 85%-15% support program of the DA, which in reality benefited only a few.

4. The increasing popularity of natural farming practices such as the improvement of soil conditions using microbial inoculants, composting, the production of bio-organic fertilizers from farm wastes like leaves, manure, and molasses, self-concocted bio-pesticides, fungicides, and vermicast and vermitea concoctions are changing the once-toxic practices of farmers. Andry Lim and friends are doing a good job educating Filipino farmers about natural farming.

5. The Agricultural Training Institute has strengthened its mandate to train vegetable farmers; several years back, their initiatives were mainly centered on rice, and mediocre expertise was provided for vegetables. There are also initiatives from local executives to establish vegetable training centers. Harbest has experienced this growing enthusiasm for better training sessions among mayors after the high productivity experienced by small farmers in the Kabalikat sa Kabuhayan vegetable farmers’ training program, a corporate social responsibility (CSR) program initiated by Henry Sy, Sr. under the SM Foundation, Inc. and implemented by Harbest trainors.

6. The growing awareness of traditional farmers in Benguet and other vegetable growing areas of healthy farming practices—avoiding too much exposure to toxic pesticides and the overuse of chemical fertilizers which acidify the soil—helps them achieve sustainable farming and provides safer vegetables to consumers. This practice will continue to take root as the benefits are felt by the farmers. Harbest Organix has been actively promoting the beneficial use of effective microorganisms (EM-1) in agriculture to farmers nationwide. Governor Nestor Fongwan of Benguet and Governor Alfredo Maranon of Negros Occidental have openly declared their full support for organic vegetable farming among their constituents.

7. The growing number of vegetable farmers producing for localized markets lowers the cost of transportation and lessens post-harvest losses significantly. Although this phenomenon is still in its early stages, it is a very encouraging development. Like in Negros Occidental, the group of Chin Chin Uy now has more than ninety non-government organizations (NGOs) and organic vegetable farmer groups under its umbrella, the Organic Na! Negros Organic Producers and Retailers Association (ONOPRA). They—together with the famous pioneer Mon Peñalosa of Peñalosa Organic Farm—now supply SM and Robinsons Supermarkets with organic vegetables in Negros Occidental.

I foresee more provinces will follow suit. This initiative will be private sector-led, with LGU, DA, Department of Agrarian Reform (DAR), and NGO support. Hectarage planted in traditional growing areas may shift to higher value crops like flowers, something which is happening in Benguet. Due to high cost of transportation and the highly perishable nature of vegetables, the localized production of vegetables will gain more ground in 2015. Opportunities created by tourism Industry growth will further encourage more high-value farmers to invest in tourist-rich areas.

8. The DA through its Regional High-Value Crops Development Program coordinators has been actively implementing interventions like seed production training, agronomic technology transfer, and post-harvest logistic support like the cold-chain and tram lines. Although its long-term benefits have yet to be fully felt by small farmers, its sustainability is maintained as vegetables are now an important item in the high-value crops priority of the DA. We will see more funding for
these interventions.

https://www.agriculture.com.ph/2018/04/20/prospects-of-commercial-vegetable-production/