Philippines inaugurates US$5M grain terminal, secures JICA loan to improve rice post-harvest infrastructure
The facility was made possible through a US$1.8 million loan from the World Bank, with an additional US$3.3 million in funding provided by the Philippine Rural Development Project and the Sorosoro Ibaba Development Cooperative (SIDC).
PHILIPPINES – The Philippines has inaugurated a US$5.1 million (P278.3 million) grain terminal in Batangas City, marking a significant step in consolidating the country’s corn supply and reducing the cost of poultry and livestock products.
President Ferdinand Marcos Jr. led the inauguration, emphasizing the project’s importance in supporting farmers, stabilizing feed prices, and ensuring affordable food for Filipino consumers.
The facility was made possible through a US$1.8 million (P100 million) loan from the World Bank, with an additional US$3.3 million (P178.3 million) in funding provided by the Philippine Rural Development Project and the Sorosoro Ibaba Development Cooperative (SIDC).
Designed to strengthen SIDC’s existing feed mill operations, the terminal includes a 12,000 metric-ton silo system that will significantly enhance corn storage, trading, and distribution.
Agriculture Secretary Francisco Tiu Laurel Jr. highlighted the grain terminal’s impact, stating that it would help reduce input costs for livestock farmers and stabilize corn supply, benefiting 567 yellow corn farmers, hog raisers, and poultry producers.
He added that Batangas, being a key producer of swine, poultry, and eggs, would gain from the more efficient corn distribution system, further cementing its role in the country’s agricultural economy.
Government secures JICA loan to improve rice post-harvest infrastructure
Alongside the inauguration of the grain terminal, the Department of Agriculture (DA) is negotiating a loan of up to US$500 million from the Japan International Cooperation Agency (JICA) to fund a large-scale project aimed at reducing post-harvest losses in rice and improving farmers’ incomes.
Agriculture Assistant Secretary Arnel de Mesa explained that the loan, expected to range between US$200 million and US$500 million, would finance the construction of rice dryers, mills, warehouses, and silos across the country.
These facilities are intended to enhance the efficiency of rice storage and processing, benefiting the National Food Authority (NFA), farmers’ cooperatives, and rice-growing communities.
The project is expected to start between 2025 and 2027 and is considered vital in expanding the NFA’s operations, especially given its expanded buffer stock mandate under the amended Rice Tariffication Law.
De Mesa underscored the importance of this initiative, noting that post-harvest losses in rice currently range between 15 and 17 percent. He explained that with better drying, milling, and storage facilities, the country could reduce these losses and improve overall rice production, ultimately increasing farmers’ incomes and ensuring a more stable rice supply.
To complement this initiative, the NFA is investing P10 billion (US$182 million) this year to modernize its rice warehouses and post-harvest facilities.
The agency aims to improve its storage, drying, and milling operations to enhance efficiency and fulfill its buffer stocking mandate, which now requires it to maintain a 15-day rice supply at any given time.
As part of the modernization program, the NFA plans to repair existing warehouses, construct new rice mills, upgrade drying facilities, and expand storage capacity.
A significant portion of the investment, P3.5 billion (US$64 million), will go toward adding 800,000 metric tons of storage capacity by next year, while P5 billion (US$91 million) will be used to build and improve rice mills, dryers, and silos.
These upgrades will allow the NFA to store rice for up to two years, compared to the current six-month to one-year limit.
The modernization efforts are expected to be completed by late 2025, just in time for the 2027 dry season harvest.
The improvements will help eliminate inefficiencies in post-harvest processing, allowing farmers to sell their palay at higher moisture content without the burden of drying it themselves. Additionally, the enhanced facilities will play a crucial role in stabilizing rice prices for both farmers and consumers, ensuring a more consistent rice supply and quality.
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