PHILIPPINE DEPARTMENT OF AGRICULTURE AND ITS

CASSAVA INDUSTRY ROADMAP

Edilberto M. De LunaAssistant Secretary for Field Operations and

National Rice Program and Corn Program Coordinator

Purpose of Visit to CIAT

1. Introduce the Philippine cassava research and development program to CIAT

2. Prioritize key topics of collaboration for cassava and related research on integrated farming systems and climate change.

3. Identify specific CIAT areas of expertise and technological innovations relevant to the Philippines

4. Agree on immediate projects and activities, for financing by the Philippine government, other donors and CIAT-CGIAR.

DEPARTMENT OF AGRICULTURE, PHILIPPINES

• The Philippine Department of Agriculture is the executive department of the Philippine government responsible for the promotion of agricultural and fisheries development and growth.

• Formed June 23, 1898 and with headquarters in Quezon City, Metro Manila• Led by the Secretary of Agriculture, nominated by the President of

the Philippines and a member of the Cabinet. The current Secretary of Agriculture is Engr. Proceso J. Alcala.

DA Organizational Structure• 5 Undersecretaries and 5 Assistant Secretaries• Edilberto De Luna: Asst Secretary for Field Operations and National Coordinator for Rice

and Corn-Cassava Programs• Regional executive director for each of the 17 regions in the country• Attached bureaus:

•Agricultural Training Institute (ATI)•Bureau of Agriculture and Fisheries Standards (BAFS)•Bureau of Agricultural Research (BAR)•Bureau of Agricultural Statistics (BAS)•Bureau of Animal Industry (BAI)•Bureau of Fisheries and Aquatic Resources (BFAR)•Bureau of Plant Industry (BPI)•Bureau of Soils and Water Management (BSWM)•Bureau of Agricultural and Fisheries Engineering (BAFE)

DA ATTACHED AGENCIES, CORPORATIONS & COUNCILS

• Agricultural Credit and Policy Council (ACPC)

• Livestock Development Council (LDC)• Philippine Council for Agriculture and

Fishery (PCAF)• National Dairy Authority (NDA)• National Fisheries Research and

Development Institute (NFRDI)• National Meat Inspection Service (NMIS)• National Tobacco Administration (NTA) • Philippine Agricultural Development and

Commercial Corporation (PADCC)• Philippine Carabao Center (PCC)

• Philippine Center for Postharvest Development and Mechanization (PhilMech)

• Philippine Crop Insurance Corporation (PCIC)• Philippine Fiber Industry Development

Authority (PhilFIDA)• Philippine Fisheries Development

Authority (PFDA)• Philippine Rice Research Institute (Philrice)• Quedan Rural Credit and Guarantee

Corporation (QUEDANCOR)• Southeast Asian Fisheries Development

Center (SEAFDEC)• Sugar Regulatory Administration (SRA)

MANDATE• Promotion of agricultural development by providing the policy framework, public

investments, and support services needed for domestic and export-oriented business enterprises.• Primary concern is to improve farm income and generate work opportunities for

farmers, fishermen and other rural workers. • Encourages people's participation in agricultural development through sectoral

representation in agricultural policy-making bodies so that the policies, plans and programs are formulated and executed to satisfy their needs.• Use a bottom-up self-reliant farm system approach that will emphasize social justice,

equity, productivity and sustainability in the use of agricultural resources.

Republic of the PhilippinesDEPARTMENT OF AGRICULTURE

DA BANNER PROGRAMS

• AGRI PINOY RICE PROGRAM• AGRI PINOY CORN AND CASSAVA• AGRI PINOY HIGH VALUE CROPS PROGRAM• AGRI PINOY LIVESTOCK• AGRI PINOY FISHERY

OTHER PROGRAMS• SUGAR CANE• COCONUT• FARM-TO-MARKET ROAD

CIAT PARTNERSHIP WITH THE PHILIPPINES

• Presidential Decree 1249 - legal framework for CIAT partnership with the Philippine national agricultural research system (signed in 1977)

• MOUs for inter-institutional partnership (signed in 2015)- Department of Agriculture (DA) - University of the Philippines Los Banos (UPLB)- UPLB Foundation Inc- SEAMEO-SEARCA

• Project agreements for financing collaborative research (starting 2016)- DA Bureau of Agricultural Research (BAR)

2016 CIAT Projects Funded by DA Philippines

CASSAVA (DA Bureau of Agricultural Research)On-going grant projects

- Co-strengthening capacities for cassava crop health (Kris Wyckhuys)- Participation in CIAT regional cassava breeding network - funded through UPLB and PhilRootcrops (Stef

De Haan)Project proposal/grant agreement in progress

- Emergency response schemes for cassava pest invaders (Kris Wyckhuys)- Pest/disease distribution mapping, diagnosis/prevention/control (PhilRootcrops-led, CIAT support)

CLIMATE CHANGE (DA Systemwide Climate Change Office)On-going grant projects

- Cross-country study missions Vietnam, Thailand & Indonesia -subgrant from SEARCA (Nora Guerten)- Meta-analysis on mainstreaming climate change in DA policies and programs – subgrant from UPLBFI

(Dindo Campilan/Peter Laderach)Project proposal/grant agreement in progress

- Decision-support platform for climate-resilient agriculture prioritization (Nora Guerten/Caitlin CDolloff)- Climate-risk vulnerability assessment of agri-fisheries communities (Peter Laderach/Louis Parker)

ESTIMATED TOTAL VALUE OF DA-PHILIPPINES FINANCING TO CIAT IN 2016: US$0.8million

Philippine Cassava Industry Development

Roadmap CY 2015–2022

RATIONALE

Economic Contribution• Php14.80B (1.21%) in the GVA , 2014 current price• About 28,000 jobs generated in Crop Year 2014

Uses• Cassava is one of the staple foods of Filipinos due to

high carbohydrate content.• More than 15M Filipinos eat cassava as

staple/supplement• Raw material in the production for feeds, alcohol and

other industrial products.

Source of livelihood • More than 218,000 farm family are dependent

(partially/fully ) on cassava production as source of income.

ECONOMIC VALUE OF CASSAVA, 2014

2014 % SHARE 2014 % SHARE

GVA in AGRICULTURE & FISHERY 1,424.89 100.00 714.87 100.00

A. AGRICULTURE 1,227.67 86.16 583.50 81.62 Palay 365.33 29.76 147.92 25.35 Corn 88.23 7.19 42.16 7.23 Coconut 98.89 8.06 28.11 4.82 Sugarcane 28.62 2.33 16.05 2.75 Cassava 14.80 1.21 9.54 1.63 Other Crops 230.40 18.77 112.53 19.29 Livestock 176.38 14.37 95.89 16.43 Poultry 127.74 10.41 78.27 13.41 Activities & Services 97.28 7.92 53.03 9.09

B. FISHERY 197.22 13.84 131.37 18.38

INDUSTRYCURRENT PRICES CONSTANT PRICES

(rice)

CASSAVA UTILIZATION IN THE PHILIPPINES

HISTORICAL CASSAVA PRODUCTION IN THE COUNTRY, 2005-2014 (PSA-BAS)

Vol. 4.48%AAGR = Yield 3.87%Area 0.59%

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

500

1,000

1,500

2,000

2,500

3,000

0

5

10

15

20

25

8.19 8.59 8.93 9.17 9.46 9.669.9879478729287810.232880364809410.8700924672358

11.7184014539649

1,6781,757

1,8711,942

2,044 2,1012,210 2,223

2,361

2,540

205 205 210 212 216 218 221 217 217 217

Average Root Yield (mt/ha) Volume of Production ('000 mt) Area Harvested ('000 ha)

Units

in '0

00

4.71%6.49%

3.79%5.25% 2.79%

5.17%

4.88% 3.96% 2.69% 3.16% 1.80%

(0.10)% 2.47% 0.97% 2.02% 0.78%

3.39%

1.66%

0.61%

(1.80)%

2.45%

6.18%

6.23%

(0.04)% (0.18)%

7.61%

7.80%

Philippine Cassava Imports, 2013

GRAND TOTAL 33,610,635 1,491,976,088

Manioc (Cassava) With High Starch Or Inulin Content, Fresh, Chilled, Frozen Or Dried, Other Than Sliced Or In Form Of Pellets

15,877.50 5,553,439 246,517,157

India 0.02 296 13,139

Thailand 10,457.50 3,611,176 160,300,103

Indonesia (Includes West Irian) 0.44 5,414 240,327

Vietnam 5,419.53 1,936,553 85,963,588

Flour, Meal Or Powder Of Manioc (Cassava)

1,933.22 576,816 25,604,862

United States Of America 0.21 371 16,469

Indonesia (Includes West Irian) 1.83 1,341 59,527

Vietnam 1,931.18 575,104 25,528,867

Manioc(Cassava) Starch 50,267.54 22,948,865 1,018,700,117

United States Of America 0.70 630 27,966

Malaysia (Federation Of Malaya) 20.00 6,585 292,308

Singapore 114.00 9,197 408,255

Thailand 34,222.10 15,411,022 684,095,267

Indonesia (Includes West Irian) 1,777.37 761,863 33,819,099

Vietnam 14,111.78 6,751,177 299,684,747

South Africa, Republic Of 7/ 21.60 8,391 372,476

Item/Country of Origin Volume

(MT) CIF Value

(USD) CIF Value (Php)

PSA-BAS

Residues Of Starch Manufacture And Similar Residues Of Manioc (Cassava) Or Sago, Whether Or Not In The Form Of Pellets

16,001.90 4,015,401 178,243,650

United States Of America 224.34 108,679 4,824,261

Thailand 6,350.00 1,424,107 63,216,110

Vietnam 9,427.56 2,482,615 110,203,280

Residues Of Starch Manufacture And Similar Residues Other Than Manioc (Cassava) Or Sago, Whether Or Not In The Form Of Pellets

1,256.32 516,114 22,910,300

United States Of America 263.12 130,255 5,782,019

Australia 1.26 2,510 111,419

Netherlands 405.30 201,366 8,938,637

Germany 8.51 16,986 754,009

Taiwan (Republic Of China) 0.64 292 12,962

Vietnam 577.50 164,705 7,311,255

Item/Country of Origin Volume

(MT) CIF Value

(USD) CIF Value (Php)

Philippine Cassava Imports, 2013Continuation…

PSA-BAS

Philippine Cassava Exports, 2013

PSA-BAS

Item/Country of OriginQuantity

(kg)FOB Value

(USD) FOB Value

(Php)

GRAND TOTAL 682,113 30,278,996

Manioc (Cassava) With High Starch Or Inulin Content, Fresh, Chilled, Frozen Or Dried, Sliced Or In Form Of Pellets

65,640 79,485 3,528,339

Australia 527 885 39,285

United States Of America 16,362 10,448 463,787

Hongkong 477 280 12,429

Korea, Republic Of South 3,879 5,872 260,658

Canada 18,302 21,172 939,825

Israel 946 1,230 54,600

Guam 1,357 1,900 84,341

Hawaii 20,385 31,500 1,398,285

Saudi Arabia 3,405 6,198 275,129 Manioc (Cassava) With High Starch Or Inulin Content, Fresh, Chilled, Frozen Or Dried, Other Than Sliced Or In Form Of Pellets

234,641 600,514 26,656,816

Australia 12,858 105,766 4,694,953

United States Of America 61,969 97,645 4,334,462

Japan (Excludes Okinawa) 481 6,264 278,059

Hongkong 2,407 1,545 68,583

Canada 154,688 377,207 16,744,219

Uk Great Britain And N. Ireland 451 695 30,851

United Arab Emirates 603 7,329 325,334

Israel 584 702 31,162

Micronesia, Federated States Of 600 3,361 149,195

Flour, Meal Or Powder Of Manioc (Cassava) 210 2,114 93,840

Afghanistan 210 2,114 93,840

Cost Competitiveness Analysis

Export trade scenario, 2013

ITEM Pampanga Maguindanao Bukidnon Masbate

Border Price (USD/MT) 230 230 230 230 Yield (MT/Ha) 24 17 14 14 Exchange Rate (P/USD) 44 44 44 44 Domestic Cost (P/Ha) 55,663 43,001 32,930 56,098

Foreign Cost (P/Ha) 12,020 10,643 7,520 14,285 Total Cost (P/Ha) 67,683 53,644 40,450 70,383 Domestic Resource Cost (P/USD) 10.60 11.72 10.79 20.16 Resource Cost Ratio 0.24 0.26 0.24 0.45 Source: RFOs, BSP, FAO, UA&P materials

The Philippine cassava was generally cost competitive for export. The reason for this export competitiveness was due to low cost of production and high yield in different top producing provinces. The border price used is based from Thailand which is the top exporter of cassava in Asia.

Cost Competitiveness AnalysisImport substitution, 2013

RCR < 1 – competitive advantageRCR = 1 – neutralRCR > 1 – competitive disadvantage 

ITEM Pampanga Maguindanao Bukidnon Masbate

Border Price (USD/MT) 230 230 230 230 Yield (MT/Ha) 24 17 14 14 Exchange Rate (P/USD) 44 44 44 44 Domestic Cost (P/Ha) 45,420 33,100 24,180 40,150

Foreign Cost (P/Ha) 7,630 6,400 3,770 7,450 Total Cost (P/Ha) 53,050 39,500 27,950 47,600 Domestic Resource Cost (P/USD) 8.49 8.79 7.71 13.67 Resource Cost Ratio 0.19 0.20 0.17 0.31

The analysis showed the case of substituting domestically produced cassava with imports. Producing cassava in the country is cost competitive against the imports.

TOTAL CASSAVA PRODUCTION TARGETS CY 2015-2022

PARTICULARS TARGETS

2015 2016 2017 2018 2019 2020 2021 2022DEMAND 3821 4179 4568 4911 5254 5692 6136 6621PRODUCTION (‘000 MT)

3168 3656 4081 4478 4873 5342 5799 6338

AREA (‘000 Ha.)

232 252 270 282 291 302 315 329

YIELD (MT/HA)

13.63 14.50 15.14 15.90 16.73 17.67 18.43 19.26

NET AVAILABLE

2756 3199 3592 3963 4337 4781 5219 5704

SUFFICIENCY LEVEL (%)

72 77 79 81 82 84 85 86

Strengths Weaknesses1. Sustained government support on farm

mechanization and post harvest facilities2. Available HYV of cassava for food and

industrial uses. (NSIC-BPI).3. Available technology for cassava production

and post harvest processing (techno-guide and brochures).

4. Approved standards for dried cassava chips and granules (PNS/BAFPS 29:2010 ).

5. Established standard protocol on plant material certification for cassava (DA-BPI, AO no. 16); and on accreditation and re-accreditation of cassava seed pieces producers (DA-BPI, AO no. 17)

6. Intensive capacity building of farmers.7. Increased stakeholders participation on

industry governance and policy formulation.8. Availability of idle and new areas for

expansion.

1. Dominance of small farmers with limited capital and mostly disorganized.

2. Limited access to quality technical assistance Limited farm machineries and post harvest facilities.

3. Limited supply of quality planting materials.4. High cost of product consolidation and inter-

island transport.5. Lags behind on GAP certification compared

with other ASEAN countries.6. Limited credit window for cassava growers.7. High cost of cassava production and post

harvest processing.

SWOC ANALYSIS

Source: Result of regional and national cassava stakeholders consultations, 2013

Opportunities Challenges

1. Increasing local and foreign demand due to increasing industrial requirements of cassava for feeds, starch, flour, alcohol and other industrial uses.

2. Presence of foreign investors setting up local processing facilities using cassava as raw materials.

1. Implementation of the ASEAN Free Trade Agreement (AFTA).

2. Land degradation and desertification due to soil erosion.

3. Increasing cost of production inputs.4. Effects of climate change.5. Emerging new pests and diseases (ie.

pink mealybug and cassava phytoplasma) .

SWOC ANALYSIS

Source: Result of regional and national cassava stakeholders consultations, 2013

CASSAVA PROGRAM GOAL:

Increase cassava production, enhance industry competitiveness, raise farmer’s income and generate more employment opportunities in the rural areas. OBJECTIVES:

1. Increase cassava production (fresh roots) from CY 2014 at 2,540 MMT to 6,467 MMT by year 2022;

2. Increase average yield from 11.72 mt/ha to 19.10 mt/ha by year 2022;

3. Increase yearly income of farmers by 10 percent; 4. Improve quality of cassava primary and other by-

products;5. Increase cassava per capita consumption from 2.59 kg

to 7.0 kg starting CY 2017 and succeeding years.

Production PRIORITIES

• Increase productivity and product quality improvement

• Promote sustainable cassava production system in sloping areas

• Encourage private seed pieces growers to participate in the seed system scheme

• Develop biotechnology tools for cassava insect and disease resistance.

• Provide subsidy to cassava insurance and streamline credit policies to make it more accessible to farmers .

• Intensify technical capability of agri-extension workers and farmer leaders.

• Sustain government support in farm mechanization.• Encourage more private sector

participation in cassava investment.• Implement approved cassava standards.

Postharvest PRIORITIES

Processing PRIORITIES

• Encourage the private sector to establish more processing plants in strategic cassava areas.

• Promote village level cassava processing for food.

• Push for value-adding for cassava export.

Proposed 2016-2020 Collaboration

with CIAT and PhilRootcrops

• Comprehensive yield gap analysis, for improved research priority-setting and technology delivery in the Philippine cassava sector; • Bolstering biotic resistance against (future) pest invaders at a field, farm

and agro-landscape level: an exploratory research initiative; • Multi-variate assessment of drivers of pest attack, geared at a

subsequent implementation of national forecasting and alert systems; • Towards sustainable intensification of Philippine cassava crop:

customizing crop and soil fertility management schemes to secure pest-suppressive and resilient cassava cropping systems• A national roadmap to deploy clean seed systems, for Philippine root

and tuber crops;• Agro-advisories and ICT-based extension tools to boost farmer

preparedness in the face of climate change and pest invasion

Other proposed research areas

• Adaptability of rapid production techniques of quality planting materials• Development of package of technology(POT) in marginal/sloping areas• Improve the nutrient use efficiency (using tracer technique) to

different soil fertility levels. • Development of integrated cassava cropping systems (cassava-

livestock-forages-legumes)• Product development for export• Assessment on feasibility of conveyor type dryer compared to other

methods of drying (Negros Oriental and Region XII --- solar drying)• Improvement and development of equipment and postharvest

facilities (food grade)

Thank You!!