7th National Congress and 2019 Philippine Agriculturists' Summit
"Embracing and Institutionalizing the 4th Agriculture Revolution in the Digital Age"
Session 1. Agriculture Feeding the Fourth Industrial Revolution
The major challenges facing the agriculture sector are food security, rapid population growth, climate change, water scarcity and energy demand. According to a 2018 report by the World Economic Forum, the Philippines is among the "legacy" countries that have a strong production base today but are at risk for the future due to weaker performance in three areas: improving institutional framework, investing in human capital and boosting technology platforms.Meanwhile, a joint report by the WEF and Asian Development Bank mentions that based on the International Labour Organization's estimates, 56 percent of jobs in five Southeast Asian countries, including the Philippines, are at high risk of automation in the next few decades."Legacy countries need to avoid getting squeezed between more advanced Leading countries, which can offer more advanced manufacturing, and Nascent countries that can offer lower cost labour," the WEF said. It added that "Legacy countries, in particular, can accelerate readiness and transformation by utilizing the private sector more actively in tackling macro level challenges," Is the Philippines in a position to address these challenges?
A. Drivers of AG 4.0
There are two major drivers pushing the Agriculture Industry into a High Agtech Industry, that is, the millennial shift from family farms to smart food factories. The first are the megatrends in societal and demographic changes, urbanization, climate change, smart agricultural technologies and biotechnologies, servitization around core products, increasing value chain integration, globalized trade and changing international regulations. The second are the industry-specific change accelerators, namely the new consumer preferences, emerging technologies and the growing trend. The major question is, what drives Philippine Agriculture?
B. Key Trends and High Impact Growth Opportunities in the Philippine Agri-Value Chain
The Philippine and Global Agri-Value Chain is characterized by 8 key trends, namely: declining productivity gains, urbanization, consumer consciousness of the kind and quality of products, inefficient supply chains, price volatility, large, integrated firms vs specialized niche players, big data, and food security. Given these key trends, there are 3 high impact growth opportunities for current and future players given these key trends. The first is in improving yield efficiency to feed the rapidly growing population. The second is in increasing supply chain efficiency to reduce the average value chain loss that is more effective than upfront yield improvements, and the third is in simplifying the farmers' value chain' through integrated solutions and ecosystems. How is the Philippines responding to these growth opportunities?
C. Challenges to Philippine Agriculture from Climate Change
Climate change alone presents unique challenges to agriculture, namely, the increase in variability of precipitation, droughts, and floods that are likely to reduce yields, deplete the groundwater and degradate the soil that affects the food systems and results in the significant reduction in crop yields when daytime temperatures exceed a crop-specific level. The effects therefore of global warming on food supply are dire given the increasing world population. Given the importance of climate change, it is thus important to mainstream climate change in the Philippine Agriculture Development Plans. But what are the major considerations in mainstreaming climate change into these plans?
Session 2. Megatrends Shaping Agribusiness and Food Markets: Challenges and Opportunities
Big and smaller players in the agribusiness value chain are expected to continuously pursue collaborative marketing initiatives and alliances to competitively manage buyers' evolving needs and wants as well as their unexpressed wishes in broad market segments as well as in niche markets. Market studies have reported that in 2019 and beyond, buyers and consumers are considering that foods are necessary components in holistic approaches to health and wellness, sustainable living, and food security. What are the challenges and opportunities? How can farmers address these? What partnerships or alliances can farmers pursue with agribusinesses? What specific role will women play in facing the challenges and opportunities brought by the emerging megatrends?
A. The Emerging Food Market Landscape
Whether it is brick-and-mortar or online or both, local and global food marketers are increasingly being driven by an evolving set of sustainable business values that transcends profit-seeking, and getting closely involved in societal marketing concerns by way of the SDGs such as ending hunger, promoting fairer trade, contributing to health and wellness, enhancing nutrition, and assuring food safety. The demand for freshness and naturalness in meat, poultry, fish, fruits, nuts, grains, and vegetables will continue to grow as consumers seek a wider variety and a package of innovative healthier options in dairy, beverages, baked goods, and seasonings and flavors. What specific opportunities can farmers pursue in the emerging food market landscape? How can these opportunities be pursued? What resources and capabilities are needed?
B. Changing Food Buying Behavior: Sustainable Consumption, Healthier Living, and Enhanced Convenience
Sustainability drives the broader circular economy, and spans the entire food product life cycle. These cover a secured food for all -- including next generation responsible food sourcing, packaging, and recycling. Likewise, consumers are seeking food solutions that can contribute to wellness as well as healthier options leading to a longer lifespan. Younger buyer segments and on-the-go urban consumers look forward to having food product attributes that offer affordable healthier meals via enhanced convenience. What products have succeeded in addressing the changing food buying behaviour? How can existing products be improved? What other products are needed to be developed?
C. Digital Technologies and the Internet of Things (IoT) for the Market
Digitalization, social media, and associated advances in information technology are likely to alter supplier-buyer food interaction through the delivery of a variety of value-added consumption experiences along the food chain. The marketing power of the Internet of Things (IoT) using mobile devices, among others, presents opportunities for real-time customer engagement and improved interactivity. How is the IoT revolutionizing how food buyers and consumers are making food purchasing decisions, buying, and consuming food? What are the implications for food producers, distributors, and processors?
Session 3. Driving the Innovation Fields of AG 4.0
The traditional approach of the food industry is undergoing a fundamental transformation. During the previous technology revolution in agriculture between 1961 and 2004, impressive strides enabled by modern farming practices, including irrigation, use of fertilizers and pesticides, and the development of new and more productive crop varieties were made. But efficiency gains are dropping: The rate of yield increases has slowed. And the challenges of feeding a growing world population with adequate, accessible, and affordable nutritious food amidst dwindling land and water resources and the threats of climate change are greater. However, the emerging cutting-edge technology trends in agriculture and aquaculture that include product innovation, yield, and food efficiencies and the significant advances that have been observed in selective breeding, genetic modification, DNA analysis, and in the development of alternative proteins are seen to provide the answer. Are these advances, among others, able to support the innovation fields of AG 4.0 for both human food and animal feed?
A. Soil, Water, and Crop Technologies Today and Tomorrow
Precision agriculture and bioproduction are emerging drivers that are revolutionizing soil, water, and crop technologies. Hardware and software are being developed and introduced in the market to allow farmers and their organizations to implement real-time changes in farm decisions. Its application on urban farming has also been observed. The possible favorable impact of bioproduction on farming has likewise been acknowledged as it can significantly contribute in increasing the production of a variety of foods at potentially lower costs. Bio-production uses living cell cultures and it has been associated with biologically-engineered farm products. However, the latter continues to be faced with serious concerns about environmental, food safety, and health risks. What trends do we expect to see for these technologies in the next 3 to 5 years? Which of these are ripe for adoption in the farming communities? What is the progress on the safeguards that have been instituted in relation to bioproduction?
B. AgTech 4.0 for the Animal Industry
New technologies, automation solutions, and robotics are increasingly being introduced in meat science and technology to address efficiency concerns, stiff industry competition, and the rising demand in the quality, safety, affordability, and nutrition value of prepared foods and read-to-eat meat. Early technology adopters have been challenged with the investments needed in the new technological requirements of meat factories, upgrading packaging and logistics facilities, and skill improvement of their human resources in the meat chain. What is the impact of new technologies, automation solutions, and robotics on jobs as well as on the future viability of smaller meat businesses? What is the progress in addressing the high degree of variability in the quantity and quality of raw materials of fresh and processed meat products amidst these technology trends? What are the observed best practices to date?
C. Challenges to Industrial Development of Philippine Aquaculture and Fisheries from Climate Change and Management
Fish is a healthy source of protein, especially when coming from wild populations, but a combination of factors threaten the supply of fish from capture fisheries and its sustainability in providing livelihood and food. Catch of fisheries has declined for domestic and export markets and consumption and it is prudent to set production targets based on available resources. Aquaculture, mainly in freshwater and brackish water, has increased to meet domestic requirements and to export markets but challenges abound (e.g., fish kills, high sedimentation during extreme events, high costs of inputs on culture; need to improve cost-efficiency in operations, need for more investment in research and development). Despite these challenges, some opportunities are presented: the vast extent of the coastal and maritime waters; high diversity for culture systems, including mariculture; available human resources for research and development; and others. Climate change impacts – increasing temperature and acidification, lowering of oxygen levels – compound the challenges and have a bearing on these opportunities. How can the sector strive for industrialization and sustainability to meet domestic food requirements and earn from export markets?
Session 4. Nurturing the Gains of AG 4.0
There is a need to assess the institutional readiness of the government, businesses, farmers and farmers' organizations, industry associations as well as other stakeholders in the agriculture sector regarding their interest and enthusiasm to pursue forward-looking initiatives in relation to AG 4.0. What are the credible evidences that show or demonstrate institutional readiness? In what ways has the government responded to AG 4.0 in a proactive manner? What public-private-people partnerships are needed?
A. Governance of the Agri-Value Chain Beyond the Triple Bottom Line: Sustainable Assessment of Food and Agriculture Systems
According to the U.N. Food and Agriculture Organization, there are over a hundred countries that have National Sustainable Development Strategies, and that more than 200 voluntary standards are being implemented in the agricultural sector. What challenges have major agricultural-producing countries faced in implementing their sustainable development strategies in their respective agri-value chains? What are the best practices? What is the progress in the development of a universal framework for sustainable assessment in food and agriculture systems?
B. Philippine Agriculture and Policies: Challenges and Implications for Global Trade and Governance
Global trade, particularly for agriculture and food products, remains a contentious issue. Emerging economies have continuously argued about leveling the playing field in global agriculture and food trade during trade negotiations despite pronouncements by the World Trade Organization that protectionism is costly and expensive. Thus, approaches to continue lowering trade barriers through negotiations and using the principle of non-discrimination have been adopted. What are the trends and directions in agricultural policy reforms pursued by the government of the Philippines in connection with improving the country's global trade? What corrective actions have been done on policy distortions that hindered progress? What steps have been taken to improve agricultural institutions and governance systems?
C. Preparing Tomorrow's Workforce for AG 4.0 -- Competitive Readiness of Human Resources in Agriculture in a Global Economy: A Framework for Action
While many young people are unemployed or underemployed, many employers have difficulty filling in these jobs. This challenge is partly due to the growing mismatch between youths' skills and the requirements of the employers. This problem if not addressed will be exacerbated as the Fourth Agricultural Revolution (4AR) that combines physical assets and digital technologies will require skill sets that are vastly different than what are being provided now. This will worsen the growing gap between those who are prepared and not prepared for the 4AR. For the young people between the ages of 15 and 29, this revolution will significantly shape their roles as the future workers, consumers, and competitors. What present initiatives are being taken by both formal and non-formal education in building the needed competencies for the 4AR? How can the business community contribute to the development and growth of the future workforce in agriculture? How can the academe and the business sector work together in preparing the workforce of tomorrow?
Posted 06 June 2019