DTI, DA ink partnership with CIAC for development of a mega food hub in Clark City

The Department of Trade and Industry (DTI) together with the Department of Agriculture (DA) signed a Memorandum of Understanding (MOU) with the Clark International Airport Corporation (CIAC) to collaborate in the development of a mega food hub in Clark City, on 19 February 2024.

The planned National Food Hub in Clark actualizes the farm-to-fork strategy embodied in the Three-Year Food Logistic Action Agenda, which seeks to revolutionize the food distribution network in the country from farm to fork.

The first part of this agenda is to establish food hubs outside of Metro Manila, serving as aggregation points for fresh farm produce.

Recognizing the importance of this partnership in harnessing the collective expertise, resources, and capabilities of different agencies to support the development of the National Food Hub, Secretary Fred Pascual said, “This MOU will accelerate the government’s efforts to make food available, accessible, and more affordable to the consuming public. The DTI expresses its full commitment to this initiative given our two-pronged objectives to ensure logistics efficiency, and expand food exports.”

The Clark National Food Hub is a 64-hectare agriculture trading hub inside the Clark Civil Aviation Complex (CCAC) that will support the vision of President Ferdinand Marcos Jr. to make the Philippines a leading agricultural resource hub in the region and the world.

This food hub is also designed to be the Philippines’ premium wholesale market and distribution hub for quality food produce.

Under the MOU, the DA will lead to the development of a policy framework, public investment, and support services necessary for domestic and export-oriented businesses to support the overall goals of the National Food Hub.

This includes the efforts of sourcing the necessary budgets for the establishment or improvement of cold chain facilities and food terminals that will help expand the logistics network of the Food Hub.

Meanwhile, the DTI will be providing assistance to encourage investments in the construction and management of the Food Hub, and is expected to play a big role in promoting market and logistics linkage between producers and institutional buyers.

“This project harnesses the mandate and resources of the three government agencies. Moreover, the PPP center has generously committed to provide the transaction advisory services to accelerate the feasibility study and bidding activities of the Hub. With the technical support from the USAID through its RESPOND Project, we can achieve the President’s goal of ensuring food security by empowering farmers and the private sectors, as well as strengthening supply chain and logistics systems and infrastructure development,” Secretary Pascual added.

CIAC President Perez, in his statement, said, “We are overjoyed with the outpouring of support we are getting from our institutional partners, especially from the DTI and the DA, for us to push for the comprehensive success of this project.

“We are making much headway with the PPP Center in completing the project preparation stages, and working around the clock to identify key investors, major food conglomerates, and other private sector partners so we can break ground at the soonest possible time. The National Food Hub, in tandem with the CIAC’s six other flagship projects, will be a game-changer for the Philippines’ overall agricultural productivity and the revitalization of our exports sector. And key to everything is partnerships like this–where minds and wills align.”

He mentioned further, “Clark is ideal for the mega food hub because of its expansive space for infrastructure and facilities, and seamless road network connecting north, central and south Luzon to the world-class Clark airport capable of handling cargo and logistics. A support pillar to President Marcos’ call to prioritize food security, the mega food hub will also address many other governance issues, such as employment and dispersal of growth to provinces and regions.”

For the DA, Secretary Francisco Laurel expressed his excitement in supporting the National Food Hub.

“The approach of CIAC in facilitating a PPP arrangement for the project is very consistent to the direction of our President to leverage on private sectors’ financial surpluses, technical competence, and innovative use of modern technology to ensure that we achieve the economies of scale in agricultural production that we need. The National Food Hub embodies the topmost strategy of our national government towards an inter-agency collaboration towards the achievement of multiple and cross/cutting goals such as the enhancing of food security, reducing of food inflation, increasing the purchasing power of the income of the households, and ultimately, increasing the income of our farmers.”

The MOU is a collaborative endeavor reflecting the whole-of-government approach of the Marcos Jr. administration to boost the country’s market competitiveness and advance sustainable growth in the agricultural sector. “Indeed, our complementing efforts with the DA and CIAC represent our dedication to pursuing a Bagong Pilipinas where sufficient and quality food for every Filipino is not a dream but a reality,” Secretary Pascual said.