PN 2018-03

Ensuring the Success of Agribusiness Ventures in the Philippines

Despite the passage of the Comprehensive Agrarian Reform Law, government support to farmers of high-value crops, such as banana, pineapple, and sugarcane, has remained insufficient. This scenario enticed the agrarian reform beneficiaries to enter into agribusiness ventures, such as agribusiness venture arrangements (AVAs) and sugarcane block farming (SBF), to boost their income. This Policy Note analyzes the elements of a successful implementation of AVAs and SBF in the country. Through the development of a conceptual framework, it points to government assistance, availability of required capital, and provision of production, postproduction, processing, and marketing needs as important elements for a successful AVA and SBF. The study argues that the interplay of these elements eventually affects farm productivity and income as well as the decision of investors to continue investing in said crops and arrangements.

Authors: Pantoja, Blanquita R. Alvarez, Joanne V. Sanchez, Flordeliza A.
Keywords: Philippines agrarian reform sugarcane Agribusiness Venture Arrangements Sugarcane Block Farming SBF high-value crops AVA agricultural reform beneficiaries
Focus Area: Agriculture
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