MANILA — The Philippines may soon become an exporter of farm equipment while boosting local food production, with the Department of Agriculture (DA) launching its $30-million agri-machinery assembly center project with a Korean machinery cooperative.
The DA on Tuesday said it had formally joined forces with the Korea Agricultural Machinery Industry Cooperative (Kamico) for the project, which is also seen helping to lower the cost of producing food.
“This is the result of the memorandum of understanding signed last year between the DA and Kamico that aims to set up the Korea agricultural machinery manufacturing cluster in the country,” Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement.
READ: Agri machinery assembly project with S. Korea underway — DA
Last year, the DA and Kamico agreed to jointly establish an assembly production line, collaborate on research and development of agricultural machinery technology, and upskill workers.
Among DA’s priorities
This forms part of Tiu Laurel’s priority programs aimed at modernizing the country’s agriculture sector to make commodities more affordable for consumers.
READ: PH, Korea sign deal on farm mechanization
The project will be done in three phases to give way to attracting companies that will provide rice farming machinery and facilitate technical cooperation with Philippine companies.
Kamico has so far visited sites in the provinces of Nueva Ecija and Quezon, to assess the terms and conditions set by the respective local governments.
The Korean firm will conduct the technology transfer, cooperative production to local companies, and undertake domestic supply and export promotion in the final phase.
The DA said that by establishing agricultural machinery production bases and industrialization infrastructure in the Philippines, the project will boost employment and promote specialization and advanced technology transfer among Filipino technicians.