Session 1 Presentation 2: Agri-Marketing in Asia: Agri-business Perspectives

Session 1: Current Context of the Market Situation in Asia

Session 1 Presentation 2: Agri-Marketing in Asia: Agri-business Perspectives
By Mr. Senen Bacani, CEO, Ultrex Management & Investment Corporation (former Secretary, Department of Agriculture, GRP)

Mr. Bacani explained that while he was here to offer an agri-business perspective from the side of the private sector, he has also worked extensively with government, cooperatives and NGOs. There are a variety of issues and concerns facing agri-businesses in Asia right now. First, there are higher incomes and changing lifestyles brought about by advertising and intense competition. Production is increasing despite increasing production costs, and there is a growing concentration of agri-business enterprises due to economies of scale. Products from small producers are being standardized before they reach the consumer, an example of which is product quality improvement and industrial packaging, which is being done by supermarkets. These standards have added value to some products but in other cases, the concern has been more about improving internal management processes to enhance effectiveness in the face of global competition (e.g. getting ISO certification).

But the goal of agri-business can also be aided by government policies. It is important that the public sector produces public goods such as irrigation and farm to market roads to support small producers. Also, to encourage more participation of small farmers in the value chain, it may be necessary to stick to the competencies of the farmer. Farming itself is not easy, and transforming farmers into entrepreneurs may not be practical sometimes. This is why it is necessary to form partnerships. What is important is ensuring that every player in the value chain gets his equitable share. Whether this will entail “leveling off the playing field” somewhat or increasing the leverage of small farmers is part of the challenge.

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