Mechanization program in Philippines

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“This is the result of the Memorandum of Understanding (MOU), signed last year, between DA and KAMICO that aims to set up the Korea Agricultural Machinery Manufacturing Cluster in the country,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. said.

He added that President Ferdinand R. Marcos Jr., who witnessed the MOU signing, acknowledged that the partnership of the Philippine government and KAMICO would boost local food production.

“The President also recognized the importance of mechanization, stressing that it would result in better yield, lower production cost, and competitive Filipino farmers,”  Tiu Laurel shared.

The project, with an initial investment value of USD30 million, and composed of three phases aims to establish a manufacturing plant to produce Korean agricultural machinery in the Philippines.

During Phase 1, KAMICO will invite companies to produce rice farming machinery and establish parts of the supply system. For Phase 2, it will attract additional companies, and ensure technical cooperation with Philippine companies associated with Official Development Assistance – Technology Advice and Solutions from Korea (ODA TASK).

For the third and final phase, it will conduct technology transfer and cooperative production to local companies and undertake domestic supply and export promotion.

Ultimately, the project will set the standard for agricultural machinery and equipment that will be made available for Filipino farmers, and subsequently be exported to other agricultural countries.

By establishing agricultural machinery production bases and industrialization infrastructure in the country, the project will increase employment. It will also promote specialization and advanced technology transfer among Filipino technicians.

Established in 1962, one of KAMICO’s major thrusts is to aid developing countries with agricultural machinery that will greatly impact production and increase productivity and income. It has 700 company-members to date.

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