East-West Seed to take advantage of shift to high-value crops

Vegetable seed producer and supplier East-Weed Seed is eyeing to take advantage of rice farmers' shift to high-value crops.

The proposal was raised as rice prices are expected to drop with the implementation of the Rice Tariffication law.

During a press conference in Makati City on Friday, East-West Seed Public Affairs lead Mary Ann Sayoc said the company can offer ways on how rice farmers can diversify their income by growing vegetables.

"Rice farmers need to diversify into high value crops, into vegetables, which give them better income than rice," Sayoc said.

"Because of the rice tariffication law, the rice farmers are really worried that the prices of palay would go down... We could offer them ways of diversifying income and teach them to grow vegetables," she said.

The Rice Tariffication law, signed into law by President Rodrigo Duterte in February,  allows unlimited importation of rice as long as private sector traders secure a phytosanitary permit from the Bureau of Plant Industry and pay the 35-percent tariff for shipments from neighbors in Southeast Asia.

The expected influx of imported rice is seen to temper inflation rate and further bring down the price of the commodity.

The expected shift to vegetable farming by rice farmers could translate to higher sales for East-West Seed, according to Sayoc.

"Vegetable farming contributes to better livelihood of farmers. If you compare the income of vegetable farmers compared to rice farmers," she said.

Sayoc said a vegetable farmer growing crops in a 2,000-square meter of land earns more than a rice farmer growing the commodity in one hectare of land.

For the seed industry outlook, she said the Philippines still has many opportunities to grow as there are still a lot of areas where seed companies can produce their seeds such as far-flung areas.

"The seed industry could contribute a lot to food security, to improved varieties and also better agronomic practices, better know-how for the farmers," Sayoc said. — BAP, GMA News