A THREE-YEAR agenda — part of the development of the Philippine Food Chain Logistics Masterplan 2023 to 2033 — was launched by the government in February in a bid to transform the country's food distribution system.
Running from 2023 to 2026, the agenda outlines six key strategies to enhance food logistics efficiency, revolutionize the food distribution system, reduce transport and logistics costs, increase investments in logistics infrastructure and address other supply chain gaps.
It also seeks to heighten enforcement measures against hoarding, smuggling and overstaying food imports; monitor warehouses or cold storage facilities; and use information and communications technology to improve logistics performance.
It aims to address inefficiencies that contribute to higher food prices, Trade Undersecretary Mary Jean Pacheco said.
The initiative will set a course to ease the distribution congestion in Metro Manila by redirecting deliveries to neighboring areas, she added, pointing out that consumers worry about high food prices "because there's inefficiency in the system."
The Department of Trade and Industry (DTI) said, "By integrating food terminals, the supply chain from producers to consumers could be shortened with standardized logistical processes and transportation systems directed toward specific destinations."
Preventing food wastage, which has long been a concern in the Philippines, is also a main objective.
Pacheco said they were also engaging with retailers to refine further and expand the digitalization of food terminals. Addressing gaps in the country's supply chain, she added, will be a step toward achieving food security.
Approved by President Ferdinand Marcos Jr. in August 2023, the main objective of the master plan is to ensure that consumers get the right product at the right time.
Thousands of new jobs are expected to be created, investments in infrastructure will be stimulated, and the overall efficiency of the local food supply chain will be improved.
To maximize benefits, the government will also focus on expanding digital infrastructure and integrating more retailers into the supply chain as the program progresses.
One of the components of the agenda is the establishment of a National Food Hub in Clark. This hub is designed to centralize food distribution, reducing congestion in Manila and simultaneously streamlining the supply chain.
The P8.5-billion and 62-hectare Clark National Food Hub project aims to replicate state-of-the-art agro-logistics systems in other Asian countries. It also aims to raise the standards of food safety and provide better opportunities for the local farmers, fisherfolk and growers.
A bill establishing the said food hub was recently approved by lawmakers. House Bill 10678 aims to allocate funds for the project and streamline processes.
With produce sourced from various regions such as Nueva Ecija, Nueva Vizcaya, Benguet and Quezon, the hub will serve as a major consolidation point that will allow easier access for buyers and reduce transport costs.
As for digitalization, the DTI said the logistics agenda aims to modernize distribution processes through technology via the integration of IT solutions to facilitate direct linkages between supermarkets and agricultural terminals.
Stricter enforcement measures against hoarding and smuggling, as well as monitoring of warehouses or cold storage facilities, will also be prioritized.
The three-year agenda actualized the President's directives during a Cabinet meeting in September 2022, wherein he ordered the Trade department and other concerned agencies to develop a food logistics chain, cold chain industry, ports infrastructure and farm-to-market roads.
The DTI is also working with the Department of Agriculture (DA) to improve the effectiveness and sustainability of food distribution systems. Both agencies aim to synchronize their agendas and enhance network efficiency and sustainability.
The master plan aligns with a comprehensive 10-year food logistics strategy, developed by the Agriculture Department. The strategy envisions an efficient and timely delivery of high-quality food products across regions.
The DA said, "This initiative represents a significant milestone in the nation's journey toward a more efficient and resilient food logistics infrastructure."
Officials have expressed optimism that these plans will not only support local farmers and businesses but also ensure that consumers across the country have consistent access to fresh and nutritious food.
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