Policy Planning and Socio-Economic Division
Roadmap to Transform the Philippine Agricultural Machinery Manufacturing into a Competitive, Productive, Innovative, and Sustainable Industry
(February 22, 2021 to December 31, 2021)
Project Leader: MVL Larona
Study Leaders: VA Rodulfo, Jr., AC del Rosario and NJVB Querijero
Project Staff L1: MFV Eusebio
Project Consultant: RL Gumasing
University Research Associates II: MGO Bautista, NMG Talaro, and AD Salandanan
Clerk II: MMM Recipeda
Funding Agency: Department of Agriculture- Bureau of Agricultural and Fisheries Engineering
Brief Background and Rationale
Mechanization has become a major policy of the country in pursuing agricultural development. The enactment of Republic Act 10601 or the “Agriculture and Fisheries Modernization Law” (AFMech Law) and previously, RA 8435 known as the Agriculture and Fisheries Modernization Act (AFMA), has paved the way for mechanization technology to become increasingly present in our production and postproduction systems.
As an important component of the AFMech Law under the support services, the local assembly and manufacturing sector had to be empowered to become a cohesive industry that will become a significant driver in the mechanization of the farm for increased land, labor and agricultural productivity.
The road map will focus on how the local agricultural manufacturers would progress to become a sustainable, functioning, responsive and competitive sub-industry in the manufacturing sector . As the current manufacturing environment and product and material supply chain has been globalized increasingly, the critical elements that will form the backbone of the industry will be defined clearly in the road map. Since the defined policy is on licensing and localization of parts, the supporting elements that will allow such schemes to flourish in the current local environment will be further defined.
Worldwide, agricultural mechanization technology and the manufacturing processes and technology are rapidly developing, thus, it is imperative for the country to fast track the development of the engine manufacturing industry as a precursor to the larger and more advanced development of the agricultural machinery manufacturing industry. The crafting of this road map will be a critical first step in that direction.
Objectives of the project
The general objective of the project is to craft a roadmap to transform the Philippine agricultural machinery manufacturing into a competitive, productive, innovative and sustainable industry. Specifically, the project aims to:
- Develop and define the vision, mission, and goals of the Philippine agricultural machinery manufacturing industry.
- Identify and develop short, medium, and long-term goals of the industry.
- Develop specific strategies and action plans to fulfill the identified goals of the industry.
- Define relevant timelines and milestones as indicators of actual growth and development of the industry.
- Identify industry wide stakeholders, growth drivers and define their specific roles and accountabilities.
- Draw out commitments from the major stakeholders; and
- Recommend the adoption the roadmap as the major plan for the industry.
Study 1. Development of the Pre-Establishment Phase of the Roadmap (5 key elements of the roadmap: State of the industry, Chain analysis, SWOT analysis, Vision and Goals, Government Policies and Programs for the Industry)
Study 2. Development of the Production Phase of the Roadmap (Priority machines and SCE Plans)
Study 3. Development of Technology and Manufacturing Transfer Mechanisms for the Industry Roadmap (Transfer Mechanisms and next priority machines for localization)
Study 4. Development of Advanced Technology and Expansion of the Industry Roadmap (Market expansion and plans for greener technologies, hybrid technologies, and other technologies)
The project had conducted six (6) stakeholders’ online fora to determine the current status and establish future directions of the Local Agri-Fisheries Machinery Assembly and Manufacturing in the Philippines (LAMMP), by defining the vision and goals of the LAMMP industry. It has conducted 22 online key informant interviews (KIIs) and 3 face to face KII for the data collection for the data requirements of Studies 1, 2, 3, and 4. The stakeholders are namely: manufacturers, assemblers and distributors, custom service provider/cooperative/ federation, Korean cooperative (KAMICO) involved in manufacturing assistance in the Philippines; RDIs/Government/SUCs (CavSU, PHilMech, MIRDC, DOE, SRA, BOI); association and society (PWS, PDMA).