Food Staples Sufficiency Program

Group 4 - Enriquez, Ferrer, Guillen, Po, Pujalte, Ruiz

 WHAT IS FSSP?
The FSSP is anchored on improving farm
productivity and making the Filipino farmer
globally competitive. Productivity growth in
agriculture, which raises rural incomes, is
indispensable to sustainable food security
and poverty reduction.
NEED FOR A PROGRAM
NEED FOR A PROGRAM
Achieving Self-Sufficiency in Rice
Unintended consequences of raising the price of
rice
Food Staples Sufficiency Program (FSSP)
2011-2016
Making Filipino farmers globally competitive
Sustainable food security and long-term poverty
reduction
THE FSSP SEEKS TO ACHIEVE THIS
BY...

1. Raising farm productivity and competitiveness

2. Enhancing economic incentives and enabling

mechanisms to farmers

3. Managing food staples consumption

MARKET FAILURE
MARKET FAILURE
Made to address markets problems or failures present
in the farming industry
Specific market failure which is the inability of farmers
to obtain insurance for many of the important risks
that they face
A reliable credit line and a weather-based insurance
IMPORTANCE OF
PARTICULAR DESIGN
FEATURES
EXAMPLE OF STRATEGIES
Improvement and expansion of irrigation
systems
Increase usage of high quality seeds and
fertilizers
Diversification of food staple consumption
Decrease food wastage
DESIRED IMPACT OF THE PROGRAM

Decrease reliance on imported food products

Increase consumption of domestically produced
crops
Increase local agricultural activity
Reduce cost of food processing
Stability for farmers
Advancement in agricultural technology
HIGHER PRICES
PRIVATE SECTOR
RESPONSES TO
GOVERNMENT PROGRAMS

Private sector R&D is active, but is
limited to innovations whose
benefits can be appropriated by
the inventor.
-Roehlano M. Briones
PUBLIC-PRIVATE
PARTNERSHIP
Seeds Production and Distribution
Private sector breeds seeds or imports hybrid
seeds
Public Sector monitors distribution

Fertilizer Distribution
PUBLIC-PRIVATE DICHOTOMY
Provision of agricultural machinery

Postharvest facilities

Credit Programs
EFFICIENCY
CONSEQUENCES
EFFICIENCY CONSEQUENCES
Higher Prices and Deadweight Loss

Opportunity Cost of High Value Crops

DISTRIBUTIONAL
CONSEQUENCES
DISTRIBUTIONAL CONSEQUENCES

Transfer wealth from the middle and

upper income class to the farmers.

The poors demand for rice will shift.

EQUITY-EFFICIENCY
TRADE-OFFS
EQUITY-EFFICIENCY TRADE-OFFS
Zero imports by 2013 and beyond
This cannot be possible because of the trade
liberalization policy
With the countrys ratification of the World Trade
Organization (WTO) in 1994, the government
committed to remove import restrictions on
sensitive agricultural products except rice and
replace these with high tariffs.
Adding Protection
and Raising Barriers
for Rice Imports

Higher prices will then

lessen the capability of
poor households to buy
the staple crop and
achieving nutritional
norms in food intake.
PUBLIC POLICY
OBJECTIVES
PUBLIC POLICY OBJECTIVES
One of the societal goals stated in the Philippine
Development Plan (PDP) 2011-2016 was inclusive
growth and poverty reduction.
Food security and raising incomes for the agricultural
sector were one of the intended outcomes
The Food Staples Sufficiency Program was launched
by the Department of Agriculture (DA) with the goal of
achieving self-sufficiency in food staples such as rice,
corn, banana, cassava, and sweet potato, and some
other traditional crops across the country
 FOOD SECURITY vs. FOOD SELF-SUFFICIENCY

Self-sufficiency was defined as the satisfaction of the

domestic requirement for food, seeds, processing, and
feeds through domestic production.

Food security exists when all people, at all times, have physical and economic
access to sufficient, safe and nutritious food that meets their dietary needs and
food preferences for an active and healthy life
(World Food Summit, 1996)
 KEY STRATEGIES

Raising farm productivity and competitiveness

Enhancing economic incentives and enabling mechanisms

Managing food staples consumption

POLITICAL PROCESS

The ruling party always used its control
over rice supply and distribution in order to
gain more votes from the electorate. The
opposition party, on the other hand, often
capitalized on recurring rice crises in order
to discredit the incumbent administration.
(Tadem, n.d.)
 ESTRADA & ARROYO ADMINISTRATION

Reliance on rice imports

2007: Rice shortage due to insufficient rice buffer stock of NFA

2008-2010: Over-importation of rice to stabilize rice prices

 AQUINO ADMINISTRATION

2011-2012 Focused on rice

Drastic decline in rice self-sufficiency through
importations FSSP
DUTERTE
ADMINISTRATION

Lowers budget for

Department of Agriculture
but increases budget of
most programs and other
attached agencies
ALTERNATIVE FORMS
OF GOVERNMENT
INTERVENTION
ALTERNATIVES/RECOMMENDATIONS

1. Private production of fertilizers and seeds with

government subsidy to producers
2. Private production of post-harvest facilities with
government regulation
3. Maintain barriers to imports
4. Amendment of RA 8178 (Agricultural Tariffication Act)
provision that exempts rice from tariffication
THANK YOU!
References
Alave, K. L. (2011, May 18). Rice overimported in last 3 years of Gloria
Macapagal-Arroyo. Retrieved from
http://newsinfo.inquirer.net/6615/rice-overimported-in-last-3-years-of-glor
ia-macapagal-arroyo. Accessed May 5, 2017.
Briones, Roehlano. 2012. Rice Self-sufficiency: is it feasible?. (Policy Notes No. 2012-12). Quezon City: Philippine Institute for Development
Studies.
Briones, R. M. (2013, March 4). Impact Assessment of the Agricultural Production Support Services of the Department of Agriculture (DA) on
the Income of Poor Farmers/Fisherfolk: Review of the Evidence (Rep.). Department of Budget and Management. Retrieved May 7, 2017,
from www.dbm.gov.ph/wp-content/uploads/DBM%20Publications/FPB/ZBB-2012/f.pdf.
Briones, Roehlano. 2016. Food (In)security and the Price of Rice Self-Sufficiency. (Discussion Paper Series No. 2016-50). Quezon City:
Philippine Institute for Development Studies.
Dar, William. 2016. Food security vs food self-sufficiency. The Manila Times. Retrieved from
http://www.manilatimes.net/food-security-vs-food-self-sufficiency/293498/. Accessed May 4, 2017.
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competitiveness. Retrieved from http://www.pinoyrice.com/wp-content/uploads/Food-Staples-Sufficiency-Program.pdf. Accessed
May 6, 2017.
Department of Budget and Management. (2016, September 29). 2017 People's Proposed Budget. Retrieved from
http://www.dbm.gov.ph/wp-content/uploads/Our%20Budget/2017/PPB29Sep2016.pdf Accessed May 7, 2017.
Intal, P. S., Jr., & Garcia, M. C. (2005). Rice and Philippine Politics (Discussion Paper Series No. 2005-13) Quezon City: Philippine Institute for
Development Studies
National Economic Development Authority. (2011). Philippine Development Plan 2011-2016. Retrieved from
http://www.neda.gov.ph/wp-content/uploads/2013/10/pdprm2011-2016.pdf. Accessed May 7, 2017.
Nicholls, A. (2017, April 6). Duterte sacks Usec over rice importation issue,hints at more firings. Retrieved from
http://cnnphilippines.com/news/2017/04/06/duterte-undersecretary-rice-import.html. Accessed May 6, 2017.
Stiglitz, J. E., & Rosengard, J. K. (2015). Economics of the Public Sector (4th ed.). New York, NY: W. W. Norton & Company, Inc.
The Manila Times (2016, August 26). 'High-value crops, not rice key to agri sector success' Retrieved from
http://www.manilatimes.net/high-value-crops-not-rice-key-to-agri-sector-success/282103/. Accessed May 07, 2017.