COUNTRY PRESENTATION PAPER (PHILIPPINES)

Similar documents
Source of data. (amount) Four-wheel Tractor Under 18 hp 59, hp 130, hp and over 97,360 Hand Tractor ( 2-Wheel) 2,644,982 32,239 4,450

THE STATE OF MECHANIZATION IN GHANA WITH PARTICULAR REFERENCE TO THE RICE SECTOR

Status of Custom Hiring System of farm Machinery in Sri Lanka. Eng. M. H. M. A. Bandara Chief Engineer Department of Agriculture Sri Lanka

AGRICULTURAL MECHANIZATION DEVELOPMENT IN THAILAND

by Mr. Chang Zhouwei Key Account Director, Zoomlion Heavy Machinery

Department of Agriculture. Eng. M.H.M.A. Bandara Chief Engineer. Country Report. Sri Lanka

CSAM IAARD, MINISTRY OF AGRICULTURE. Regional Forum on Sustainable Agricultural Mechanization, Qingdau, October 2013

COMPLETE PADDY PACKAGE FOR FARMERS BY VST SHAKTI VST SHAKTI

AGRICLUTURAL MECHANIZATION IN THAILAND. Viboon Thepent Department of Agriculture Phaholyothin Rd., Chatuchak, Bangkok 10900, Thailand

AG R I C U LT U R A L E Q U I P M E N T

VIETNAM RESEARCH REPORT

Lao PDR Country Paper Current Status of Agriculture Mechanization and Marketing

Public-Private Sector Models for Mechanization in SSA

COUNTRY REPORT BANGLADESH 1

Country report presentation

The Development of Agricultural Engineering & Mechanization in P. R. China

Mechanizing Small and Marginal Farmers

Page 1 of 21 ( Mechanizing Philippine Agriculture for Food Sufficiency 1

English for Agriculture

FARM MECHANIZATION. AG ENGG 243 Lecture 1 1

SMART TOUGH MULTIPURPOSE. Product Guide. HELLO TRACTOR PRODUCT GUIDE

Innovations in agricultural mechanization for food security in Asia

National Academy of Agricultural Science (NAAS) Rating : 3. 03

Page 1 of 26 (

Kansas Custom Rates 2016

Promoting Agricultural Mechanization in SSA Seminar on Private sector development and roles of the public sector

Agricultural Machinery Market in India

Operating margin decreased by 0.4%, and net margin decreased by 0.5%. The reversal of deferred tax assets in preparation for federal corporate tax

Country Presentation Paper: Fiji Islands PRESENT STATUS AND PROSPECTS OF AGRICULTURAL MECHANIZATION IN FIJI ISLANDS

Asian Pacific Centre for Agricultural Engineering and Machinery

AgWeb Brand Quality Study 2014

Agriculture and Society. Pa E & E Standards 4.4

Recognizing the Impact of Technological Advances in Agricultural Mechanics

Cambodia Perspective on Rice Production and Mechanization in Cambodia The Regional Seminar on Rice Production & Mechanization

ASSESSMENT OF PROCESSING EFFICIENCY OF SME RICE MILLS IN NIGERIA

Custom Rates Survey, 2013

Branch 2: No. 4, Ngo Quyen street, Ha Noi. Tel: (04) ,

STUDY AND APPLICATION OF CROP HARVESTING MECHANIZATION IN VIETNAM

Global and China Agricultural Machinery Industry Report, Jan. 2014

Strategy to Overcome Barriers of Agricultural Machinery Industry in Asian Developing Countries with Special Reference to Bangladesh 1

Combine Harvesting in South and Southeast Asia: Current Status and Trends

GOVERNMENT POLICY AND STRATEGY IN PROMOTING AGRICULTURAL ENGINEERING DEVELOPMENT IN INDONESIA

Entrepreneurship Scope in Custom Hiring of Agricultural Implements & Machinery

Alternatives to Puddling and Manual Transplanting

2017 Alfalfa Enterprise Budget

Unit A: General Agricultural Machinery. LESSON 3: Recognizing the Impact of Technological Advances in Agricultural Mechanics

Global and China Agricultural Machinery Industry Report, Nov. 2012

Lesson. Recognizing the Impact of Technological Advances in Agricultural Mechanics

Agricultural Innovation

China s Agricultural Machinery Industry: A Global Perspective

Status of agricultural mechanization, food chain management and Agro based enterprise development in Nepal

Jason Henderson Vice President and Branch Executive Federal Reserve Bank of Kansas City Omaha Branch April 25, 2012

The Developing and Testing of Rotary Puddler for Secondary Tillage in Rice Production of Thailand

Agricultural Mechanization and Agricultural Engineering Research in Korea

ABU HASSAN DAUD MOHD ZAINAL ISMAIL Malaysian Agricultural Research & Development Institute

"Project Formulation Survey" under the Governmental Commission on the Projects for ODA Overseas Economic Cooperation in FY2012.

ENHANCING TRADE COMPETITIVENESS AND EXPORT DIVERSIFICATION: THE CAMBODIA RICE EXPORT STRATEGY

Enterprise Budget. EM 8849 January 2004

Philippines Agricultural Engineering Technologies Information System

September Expert Consultation on Statistics in Support of Policies to Empower Small Farmers. Bangkok, Thailand, 8-11 September 2009

Assistant Professor; Asian Institute of Technology Vice-President; Asian Association for Agricultural Engineering gmail.

Farm Power and Machinery Availability on Indian Farms

Agri-Service Industry Report

Testing of Farm Machinery in India and the Role of ANTAM

THE NEW ADVANCES OF AGRICULTURAL MECHANIZATION AND EQUIPMENT INDUSTRY IN RECENT YEAR. [China Report] WANG / Maohua

Product Category Rules (PCR) (Approved PCR ID: PA-AA-01)

AGRICULTURAL GROWTH AND PRODUCTIVITY ENHANCEMENT

Current Report. Oklahoma Farm and Ranch Custom Rates, CR-205

Modeling fuel use for specific farm machinery and operations of wheat production

Costs of Converting to No-till

Low Input Production Systems: Innovations in Mechanization for Food Security in Asia

OPERATING INPUTS Units Price Quantity $/Acre Wheat Seed Bu./acre $ $ Custom Harvest Acre $ -

The Project for Sustainable Development of Rain-fed Lowland Rice Production in Ghana

Agricultural Mechanization in Kenya

NASDA Enumerator Survey Training

Promoting Competitive Agricultural Production in Zimbabwe A Focus on Row crops

Can You Afford That New Equipment?

Mechanization, Testing and Certification at IRRI

Michael E. Salassi and Michael A. Deliberto

Enterprise Budget. Sweet Corn, Willamette Valley Region. EM 8376, Revised August 1995

Used Values Update. Dealer Webinar presented by EDA and Machinery Pete

CONTRACT FARMING IN VIETNAM

SECTOR ASSESSMENT (SUMMARY): AGRICULTURE, NATURAL RESOURCES, AND RURAL DEVELOPMENT 1

Indian Res. J. Ext. Edu. 13 (2), May, Custom Hiring Services of Farm Machinery in Punjab: Impact and Policies ABSTRACT

FOREWORD. Handbook for Women Farmers 1

Tractor Agriculture is going to explain Secondary Tillage Implements today. Growing up in my ancestral village, I

Agri-Service Industry Report

Evaluation of a Rice Reaper Used for Rapeseed Harvesting

Mechanisation of Harvesting and threshing operations in rainfed crops Issues and Strategies

Research and Development on Wheat No-Tillage Seeders in Annual Double Cropping System in Central China

Cowpea Production: Sample Costs and Benefits as a Summer Cover Crop Based on Data from Coachella Valley, California

Sreedhar Patil 5/30/2013

Agriculture in China - Successes, Challenges, and Prospects. Prof. Zhihao Zheng College of Economics & Management China Agricultural University

COTTON DEVELOPMENT AUTHORITY

Using Enterprise Budgets to Compute Crop Breakeven Prices Michael Langemeier, Associate Director, Center for Commercial Agriculture

WELCOME. Department Of Agricultural Extension Ministry of Agriculture

Basic Management Policy and Priority Measures

The Water-Energy-Food Nexus from the Food perspective

CASTOR / CASTOR / CASTOR

Tractors And Farm Machinery: Source Book

Transcription:

COUNTRY PRESENTATION PAPER (PHILIPPINES) Regional Roundtable of National Agriculture Machinery Associations in Asia and the Pacific Connecting for Growth and Cooperation 28-30 October 2014 Wuhan, China Heng Dong T. Lim

Agricultural Machinery Manufacturers and Distributor s Association (AMMDA) Established in 1964 to promote mechanization and adopt modern field practices Sole national association composed of major manufacturers, importers, and distributors of agricultural machinery such as gasoline and diesel engines; four-wheel tractors (standard and compact) and their implements; power tillers and their attachments; irrigation equipment; post-harvest equipment; processing equipment; crop maintenance and protection equipment Currently at 32 members, most of which supply world-renowned brands such as Landini, McCormick, John Deere, New Holland, Massey Ferguson, Kubota, Deutz, Yanmar, Robin, Honda, Mitsubishi, Suzuki, Yamaha, and others Monthly meeting to discuss plans and programs relevant to the industry Produced three cabinet ministers/secretaries, two of whom past presidents of the associations

Agricultural Machinery Manufacturers and Distributor s Association (AMMDA) ROLE IN GOVERNMENT plays a big role in policymaking of the government for the country s agricultural mechanization program coordinates with various gov t agencies (DA, UPLB, IRRI, DOST, Philrice, PSAE) to unify efforts and set production goals represents the country in major trade shows internationally a lead agency, advising which machines are suitable for local conditions ROLE IN PRIVATE SECTOR official voice for the industry members supply ~80% of the country s agricultural machinery promote development of local manufacturers of agrimachinery monitors warranty policies of importers/distributors/manu facturers share market information and statistics to members donate machineries to various state colleges and universities

Overview of Philippine Agriculture Agriculture grossed Php776.5b (U$17.3b) for Jan-June 2014 at current prices (+11.3% higher than 2013 figure) Farm gate prices up by 9.3% during the 1 st half of 2014 1000 750 500 Value of Agriculture Production 1H 14 (Php Billions) Crops Livestock Poultry Fisheries -4% +18% Pineapple Cassava Corn Banana Volume of Crops Production 1H '14 3% 3% 8% 10% Others 9% 35% Sugarcane 250 0 2012 2013 2014 15% Coconut 19% Rice Total: 44.8 Million Metric Ton Source: Bureau of Agricultural Statistics

Overview of Mechanization Status Local manufacturing started in 1960s and reached nationwide proportion by 1975 The International Rice Research Institute (IRRI) made most contribution to local manufacturing by distributing basic designs of agricultural machinery; these designs were later improved by the manufacturers according to demand Slow improvement over the years 2010 estimated level of mechanization for rice: 1.5hp / ha 2012: 1.6hp/ha 2014 overall mechanization level: 1.52 hp/ha Still behind most ASEAN neighbors Mechanization Spectrum for Major Philippine Crops* Low Medium High Coconut Banana Cassava Source: AMMDA/Philmech Corn Rice Sugarcane Pineapple *UPLB Bureau of Agricultural Research Definition: Low operation done with man and animal Medium operation done with non-mechanical power in combination with mechanical power operated by man High operation done solely with use of mechanical power operated by man

Level of Mechanization Per Major Crop: Sugarcane Operation Mechanizatio n Level Machinery Utilized Land Preparation High 90-165 hp 4WD tractors Planting Medium to High 4WD tractors with billet transplanter using manual labor Cultivation Medium to High 4WD tractors with cultivators Manual weeding operation Harvesting Low Manual cutting, loading, and hauling Harvesters very limited in number; Department of Agriculture to start buying by 2015

Level of Mechanization Per Major Crop: Rice Operation Land Preparation Mechanizatio n Level Medium to High Machinery Utilized Walk-behind 7-8hp hand tractor with cage wheel, rake, disc plow and leveler 18-35 hp Japanese surplus tractors 22 hp 90 hp brand new tractors Planting Low to Medium Rice transplanter (Kioti and Kubota) Majority still manual Crop Care Harvesting Threshing Drying Low to Medium Low to Medium High Low to Medium Manual weeding and fertilizing operation Manual and power sprayers Rice reaper (Taro) Rice combine harvesters (Kubota, JD) Majority manual harvesting Rice thresher: mini 8-9hp (1T/h), medium 10 hp (1.5 2T/h), standard (2.5T/h) Flat bed / recirculating dryers Multi-pass dryers Majority is still sun drying Milling Medium to High Single pass and multi-pass rice mills

Level of Mechanization Per Major Crop: Corn Operation Mechanizatio n Level Machinery Utilized Land Preparation Planting Harvesting Low to Medium Low to Medium Low to Medium Animal plowing Mini tractors 90 hp tractors becoming more common Manual Corn direct seeder Corn vacuum transplanter very limited number Manual Single row harvester Shelling Medium to High Mobile shellers Drying Low to Medium Sun drying Flatbed / recirculating type dryers Milling Medium to High Corn mills

Status of Philippine Agricultural Machinery Volume of Machineries Sold in 2013 7,000 Surplus 10,000 160,000 Diesel & Gas Engines 8,000 5,000 400 Surplus 1,50 500 Brand 600 0 New Single Cylinder Engine Mini 4WD Tractor (<50hp) 4WD Tractors (51-200 hp) Rice Combine Direct Couple Pumps Source: AMMDA estimates

Supply Chain of Agricultural Machinery Local Manufacturer Importer Distributor Government Beneficiaries / Farmers Assembly and fabrication of small equipment such as power tillers, seeders, weeders, shellers, dryers, threshers Machines locally-made have high import content such as engines, electric motors, gearboxes, bearings, and the like Prime movers and tractors are all imported Majority of single-piston engines and pumps come from China Major brands of tractors are represented Dealers Gov t actively purchasing farm tractors and other machinery to boost mechanization ~200 combined dealers nationwide from AMMDA members Source: AMMDA, Philippine Statistics Authority, Mechanizing Philippine Agriculture for Food Sufficiency Gov t provides full grant or 85% support on cost of machinery to farmers Cooperatives can afford to buy with or without gov t support

Agricultural Machinery Policies, including Trade and Investment Policies Agricultural Machinery Testing and Evaluation Center (AMTEC) Established in 1977 to be the testing center for imported and locallymade machinery and equipment AFTA Signatory (1992): ASEAN Free Trade Agreement Zero tariff program among ASEAN members Republic Act 8435 (1997): Agriculture and Fisheries Modernization Act (AFMA) Law Promote modernization of the Philippine agriculture Republic Act 8669 (1998): Philippine Agricultural Engineering Act Promote and upgrade the practice of agricultural engineering profession to guarantee the delivery of basic and technical services to accelerate agricultural modernization Republic Act 10601 (2013): Agricultural and Fisheries Mechanization (AFMech) Law Enable agricultural mechanization development in the country by promoting conducive environment for local manufacturers, registration of ownership of machinery, and standardized testing and evaluation of equipment

Challenges/Constraints for Sustainable Agricultural Machinery Sector DEMAND CHALLENGES Farmer s lack of capital to purchase and maintain big agricultural machinery Insufficient knowledge, training, and know-how of farmers Small-sized farms cannot reap economies of scale for large equipment, unless farms are consolidated Labor displacement causing resistance to mechanization Poor access to credit and financing SUPPLY CONSTRAINTS Financial Capital: High cost of energy (Philippines ranked top 7 th in the world) Prohibitive cost of logistics (cost to ship from Manila to Davao > cost to ship from China to Manila) Poor access to financing for SME Human Capital: Skilled engineers fleeing the country Low level of R&D due to lack of resources and funding Technological Capital: Substandard machinery

Potential Bigger Roles for Associations Help formulate standards in farm machinery in the country Enforce accreditation of Philippine agri-machinery distributors and manufacturers to comply with national farm equipment standards Lobby for zero tariff for raw materials used in local manufacturing Lobby for 0% VAT for agri-machinery and other inputs Lobby for friendly manufacturing environment to help local manufacturers Share information and knowledge with other foreign associations engaged in agricultural machinery industry for cross-country learning Forge synergy with other foreign associations in creating a regional database of farm equipment standards Explore potential business opportunities with foreign companies for trade or joint venture

ANNEX

Farm Tractor Small HP

Farm Tractor High HP

Farm Tractor with Mounted Harrow

Farm Tractor with Ditcher

Farm Tractor with Trailing Harrow

Cultivator

Rice Transplanter

Rice Reaper