South Korean firms want to assemble agriculture equipment in PH
Agriculture Secretary Emmanuel Piñol said that a group of South Korean companies want to set up a manufacturing facility here in the Philippines where they can assemble agriculture machinery and equipment.
“South Korean agricultural machinery and equipment manufacturers, hoping to cash in on the Farm Mechanization Program of the Philippine Government, will set up a facility in the country to assemble tractors and other equipment and also fabricate implements and tools,” Piñol said.
Piñol said this move will help the country mechanize the farm sector by having access to cheap and locally built farm equipment.
Because of this, he called Bases Conversion Development Authority (BCDA) Chairman Vince Dizon to relay the request of Korean Agriculture Machinery Industry Cooperative (KAMICO) for an assembly plant area.
“He immediately assured me of a 50-hectare location within Clark Airbase for the KAMICO assembly plant,” Piñol said.
With a farm mechanization level of only 2.1 horsepower per hectare, the Philippines lags behind in productivity because of huge post harvest losses of 16.4 percent of total production, mainly in harvesting and milling.
The estimate is that Philippine agriculture sector needs about $3 billion over the next five years to be able to make agriculture and fisheries in the country efficient and more productive.
“KAMICO officials said that by establishing their assembly plant in the Philippines, South Korean machinery and equipment manufacturers expect a reduction in the prices of farm implements and equipment,” Piñol further said.