- The Philippine government is investing in farm-to-market initiatives
- The upgrades aim to lower transport costs and improve farmers’ access to buyers and supplies.
- A proposed retail partnership could connect farmers with over 1,400 grocery stores nationwide.
The initiatives are being backed by the Department of Agriculture (DA) and aim to address longstanding challenges in Philippine agriculture by improving both physical access to markets and direct buying opportunities for farmers.
Together, the initiatives underscore the DA’s efforts to tackle both logistical and marketing constraints in agriculture.
Building connections
The DA and the Department of Public Works and Highways (DPWH) signed a memorandum of agreement covering 605 farm-to-market road (FMR) projects worth PHP9.06bn (US$144m) across 26 provinces in northern Luzon.
The projects span 604km and are intended to improve the movement of agricultural products from production areas to consumers.
Poor road conditions have long increased hauling costs and made it more difficult for farmers to access buyers and agricultural supplies.
Accelerating the development of farm-to-market roads is critical to reducing transport costs for agricultural inputs and produce, while helping farmers access wider markets.
The government expects improved rural connectivity to strengthen local economies and make it easier for producers to participate in the broader agricultural value chain.
The agreement forms part of a larger national programme, with the 2026 budget providing funding for more than 1,600 farm-to-market road projects covering approximately 2,200km nationwide.
Connecting farmers and retailers
At the same time, the DA is exploring a partnership with DALI Everyday Grocery that could give farmers direct access to one of the country’s fastest-growing retail chains.
The proposal emerged from a recent meeting between Agriculture Secretary Francisco Tiu Laurel Jr and DALI board director Thirdie Icasas, during which discussions focused on connecting local farmers and cooperatives with the retailer’s expanding store network.
The retailer currently operates 1,403 stores serving more than 10 million customers a month and is opening roughly one store a day.
It aims to reach 1,600 stores by the end of 2026 and has outlined a long-term expansion target of 16,000 stores by 2035.
DALI, which follows a neighbourhood-store model focused on basic necessities and a limited assortment, said it wants to maximise the farm-to-customer supply chain.
DALI aims to strengthen direct farm-to-customer sourcing arrangements and is seeking reliable farmer groups and cooperatives.
Its first major agricultural sourcing initiative involved potatoes, with the company seeking to support farmers while developing direct supply relationships.
The company is also considering warehouse facilities near Benguet and Pangasinan to consolidate produce closer to farming areas before distribution to Metro Manila stores.
“I am pleased with the outcome of our meeting because DALI can provide a ready market for our local farm products and potentially become a contract-growing partner for our farmers. This can help give them more stable markets, encourage them to produce more, and ultimately raise their incomes,” Tiu Laurel said.
To support these ambitions, discussions also covered DA food hub projects, including the planned 46-hectare Clark Food Hub and facilities proposed in Quezon, Batangas, Bukidnon and Cebu, as well as cold-storage infrastructure near the Benguet Agri-Pinoy Trading Center.
