Philippine Conglomerates Drive Growth in Agriculture

A positive sign of progress under the new administration is the increasing number of Philippine conglomerates investing in agriculture.

The need for upskilling, reskilling, and retooling agribusiness executives is becoming more critical

This shift reflects a strong commitment to enhancing agribusiness productivity, as substantial long-term capital flows into the sector. The First Pacific Group, led by Manny Pangilinan, is expanding from infrastructure and energy into sugar and dairy production. Meanwhile, Benguet Corporation, traditionally involved in gold and nickel mining, is investing heavily in large-scale coconut farming in Samar and Leyte. The DMC Consunji Group has also made significant strides in agriculture, leasing hundreds of hectares of deforested land in Negros Occidental for palm oil cultivation.

Former Agriculture Secretary Luis Lorenzo Jr., whose family pioneered pineapple plantations, is now focusing on bamboo farming, aiming to produce construction materials as strong as steel. The Aboitizes, on the other hand, are increasing their investments in food and beverage manufacturing. This trend marks a departure from previous practices, when major Philippine banks opted to pay penalties to the BSP rather than lend to agribusiness projects under the Agri-Agra Law.

Photo credits: www.da.gov.ph/about-us/history/

Agriculture has long been seen as the “Cinderella” of the Philippine economy—neglected and undervalued. Many graduates from agricultural programs at institutions like U.P. Los Baños, Araneta University, and Silliman University ended up in fields unrelated to agriculture. I recall meeting several graduates during my brief tenure at Procter & Gamble, who transitioned to selling soap and toothpaste instead of contributing to food security. However, the perception of agriculture is changing. For instance, Jovy Hernandez, who studied agricultural sciences at Los Baños, spent much of his professional life in other industries but was recently appointed CEO of First Pacific Agribusiness Venture. He is now leading efforts to import dairy cattle for Carmen’s Best, a popular ice cream brand recently acquired by the company.

The critical need

The need for upskilling, reskilling, and retooling agribusiness executives is becoming more critical. Professionals who graduated with agricultural degrees but pursued careers elsewhere are now in high demand. These changes are not just beneficial for those in the industry—they are also essential for the country’s long-term economic growth. Through strategic investments and the development of new skills, the Philippines’ agribusiness sector is on the verge of significant transformation, ensuring that the industry continues to thrive and contribute to the nation’s prosperity.

Inspiration taken from Dr. Bernardo Villegas’ blog post.

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