This project supports the Government of the Philippines in its efforts to improve the productivity and the competiveness of the agribusiness sector. The project helps farmers improve their economic situation by enhancing their business management skills and financial literacy and by providing them with access to better farming practices and to markets for their products. The project helps farmers gain greater access to finance by working with financial institutions to develop financial products and services that meet their needs. It also aims to increase investment in the agribusiness sector by facilitating partnerships between the government and the private sector on agriculture-related infrastructure projects. It also helps government design new/enhanced policies, regulations and procedures that lower the transaction costs of farmers and agriculture enterprises. Finally, the project aims to improve the laws and regulations that govern the sector by eliciting significant input from the private sector on key reform areas affecting agribusiness, through dialogues that bring representatives from the government and the private sector together.
The expected intermediate outcomes of this project include: increased investments in agriculture and the agribusiness sector; reduced compliance and transaction costs for farmers and the agribusiness sector; and improved incomes of smallholder farmers.
Results achieved as of December 2014 include: Partnership arrangements forged with key agencies (Department of Agriculture, Department of Transportation and Communication) and financing institutions (CARD SME Bank, Rizal Micro Bank). IFC also signed a Cooperation Agreement with lead firm Bayer Cropscience to help improve farm productivity and increase farm income through good agronomic and business practices. A Cooperation Agreement was also signed with CARD-Pioneer Microinsurance Inc. (CP), a new joint venture company formed by CARD MRI Insurance Agency Inc. and Pioneer Insurance and Surety Corporation to develop and deploy insurance products to address typhoon-related risks faced by both lenders and farmers. These arrangements have enabled IFC to start its advisory services to these clients which resulted in modest outcome-level results in terms of loan disbursements to agriculture clients, conclusion of the first Post Harvest Processing and Trading Centre Asset Purchase Agreement, and completion of two regulations in domestic shipping reform – (1) the streamlining of the ship licensing process and (2) reducing barriers to market entry of new firms - were completed in March 2014. Both these reforms significantly shorten the average processing time for licensing vessels (from an average of 40 to 20 days), and an estimated cost savings of up to US$ 300,000 for each large vessel.
These results are contributing to increasing investments in the agriculture and agribusiness sector, reducing compliance and transaction costs in the agribusiness sector, and improving gross margin of women and men smallholder farmers.
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|IFC - International Finance Corporation||2013-03-26||Grant|