The increase in consumer demand for organic products over the past decade has also made parallel growths in literatures and researches dedicated to organic farming. The US Department of Agriculture GAIN conducted its own research for the Philippines and based from their year 2000 report, the organic industry of the country is estimated to be worth PhP250 million or US$6.2 million. Of this value, domestic organic industry is about PhP100 million while imports of organic products are estimated at PhP150 million. Estimate demand for organic products would outpace local production which is expanding at approximately 10 to 20 percent annually1. The said growth could be accelerated by the implementation of the Republic Act No. 10068 or the Organic Agriculture Act of 2010 signed into law last 6th of April 2010 by then President Gloria Macapagal-Arroyo2.
The positive growth of the organic agriculture in the Philippines may be contributed to the continuing interconnections between government, academe, and the industry. So as to fully understand its development, the Triple Helix Model has been utilized as its conceptual framework in this report (see Diagram 1).
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| Diagram 1 |
Based on the primary definition of organic farming, it refers to agricultural production systems used to produce food and fiber. Organic farming management relies on developing biological diversity in the field to disrupt habitat for pest organisms, and the purposeful maintenance and replenishment of soil fertility. Organic farmers are not allowed to use synthetic pesticides or fertilizers. All kinds of agricultural products are produced organically, including produce, grains, meat, dairy, eggs, fibers such as cotton, flowers, and processed food products3. Aside from the harmful pesticides, it also excludes or strictly limits the use of plant growth regulators such as hormones, livestock antibiotics, food additives, and genetically modified organisms4. Produce from organic farming is not only limited to food and fibers but also been used as raw ingredients applied to personal skin and hair care products, body and oral hygiene, insect repellant agents, room scent, etc. From the local production of its raw materials, to intensive research and development in the universities and manufacturing companies, locally-produced all-natural products are not only beneficial for the environment but also becoming an opportunity for wealth creation among the Micro, Small and Medium Enterprises (MSMEs). In addition, it provides employment and alternative source of income, improvement on the quality of life to the farmers and producers, and a beneficial commodity to the consumers.
Since the Philippines is largely an agricultural country, as Senator Edgardo Angara pointed out, government support particularly in science and technology in agriculture (and fisheries) must be prioritized. Support, especially to small and medium enterprise (SMEs), must be delivered because SMEs create around 90 percent of jobs and operate in mostly rural areas5. The signing of the Organic Agriculture Act is a step towards improvement of the country’s organic farming industry. This would possibly lead the Philippines to become the major player in the agricultural production sector in Southeast Asia through its all-natural food and high-quality organic products. As stated earlier, the plight of the farmers would also be addressed by providing alternative crop that yields to high income raw materials, aside from their regular rice and vegetable produce. It would also encourage local entrepreneurship as well as innovations from these organic outputs that would produce Philippine-made, world-class exportable products.
The Organic Agriculture Act of 2010 is a state policy to promote, propagate and further develop and implement the practice of organic agriculture in the Philippines. The policy is expected to condition and enrich the fertility of the soil; increase farm productivity; reduce environmental degradation and prevent the depletion of natural resources; further protect the health of farmers, consumers and the general public; and save on imported farm inputs. It will also establish a comprehensive program which will promote organic-farming methods through education of farmers and consumers. The State recognizes and supports the central role of farmers, indigenous people and other stakeholders at the grassroots of the program6.
The law will be carried out by the National Organic Agricultural Board (NOAB) that will provide the direction and general guidelines for the implementation of the national program. It is composed of representatives from the Department of Agriculture (DA); the Department of Interior and Local Government (DILG); the Department of Science and Technology (DOST); the Department of Environment and Natural Resources (DENR); the Department of Education (DepEd); the Department of Agrarian Reform Administration (DAR); the Department of Trade and Industry (DTI); the Department of Health (DOH); Non-Governmental Organizations (NGOs); farmers; agricultural colleges and universities; and private sectors or agri-business firms7.
On research, development and extension, its lead agency - the Bureau of Agricultural Research (BAR) will coordinate with the other agencies of the Department of Agriculture, the Department of Agrarian Reform (DAR), the Department of Science and Technology (DOST), the Department of Education (DepED), the Department of Interior and Local Government (DILG), the strategic agriculture-based state universities and colleges (SUCs), and private organizations8.
The objective of the said lead agency will develop, enhance, support and consolidate activities and related technologies for the formulation and implementation of a unified and integrated organic agriculture Research, Development and Extension (RDE) plans and programs from the national to the field level. The organic agriculture RDE plans and programs will include, but not limited to the following: research, development and commercialization of appropriate, innovative and viable organic agriculture technologies; nationwide promotion of developed and commercially viable biodegradable farm wastes and by-products through various extension strategies to accelerate the production, use and distribution of organic fertilizers; and conduct research for market development, policy formulation, regulation and certification.8.
The sum of PhP50 million budget is being allocated for the Department of Agriculture’s (DA) organic farming promotion program for the first year of the law’s implementation. The said fund will support the coordination, implementation, and monitoring and evaluation, of the research, development and extension activities on Organic Agriculture Program. The DA will subsequently allocate at least 2 percent of its annual budget for the implementation of its programs9.
Other highlights from the Organic Agriculture Act of 2010 are the following: exemption from the payment of duties on the importation of agricultural equipment, machinery and implements; identification by LGUs of local taxes that may be offered to organic input production and utilization; provisions of preferential rates and special windows by the Land Bank of the Philippines; zero-rated VAT on bio-organic product transactions, whether organic inputs or organic products; and tax Holidays and exemption for seven (7) years from the date of registration, on all income taxes. Tax incentives shall be given only to purely organic agricultural entities/farms, subject to the accreditation of the BAFPS and available to micro, small and medium enterprise10.
References:
1 Canono, J.F. Philippines Organic Products, Organics Market Brief 2000. Paper prepared for Foreign Agricultural Service / Global Agriculture Information Network of the USDA
2 Business Mirror, GMA signs Organic Agriculture Act 2010, by Mia Gonzalez, BusinessMirror.com, April 10, 2010
3 Organic Farming Research Foundation, ofrf.org/resources/organicfaqs.html
4 wikipedia.org/wiki/Organic_farming
5 Education is our Future, lecture by Senator Edgardo J. Angara
6 Implementing Rules and Regulations for Republic Act 10068 (Organic Act of 2010), Section 2 Declaration of Policy, approved by the Congressional and Oversight Committee on Agriculture and Fisheries Modernization (COCAFM) last 31 January 2011
7 Implementing Rules and Regulations for Republic Act 10068 (Organic Act of 2010), Section 7 Composition of the NOAB, approved by the Congressional and Oversight Committee on Agriculture and Fisheries Modernization (COCAFM) last 31 January 2011
8 Implementing Rules and Regulations for Republic Act 10068 (Organic Act of 2010), Section 20 Research, Development and Extension, approved by the Congressional and Oversight Committee on Agriculture and Fisheries Modernization (COCAFM) last 31 January 2011
9 Implementing Rules and Regulations for Republic Act 10068 (Organic Act of 2010), Section 25 Appropriations, approved by the Congressional and Oversight Committee on Agriculture and Fisheries Modernization (COCAFM) last 31 January 2011
10 Go Organic Philippines, goorganicphilippines.org
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