“SMC’s involvement in agricultural production is not limited to cassava production”
Cassava (Manihot esculenta), one of the root crops cultivated here, is an important source of calories after rice and corn.
It contains carbohydrates, vitamins and minerals likeVitamin C, thiamine, riboflavin and niacin.
Aside from glutinous rice, cassava is a popular ingredient in Filipino delicacies like cassava cake, pichi-pichi, sago, and suman, among others, an ingredient for feeds and in the manufacture of starch.
An investment guide for cassava from the Department of Agriculture listed among the market potential for the root crop aside from food as livestock feeds, source of alcohol, and industrial uses such as in the manufacture of pharmaceutical products, paper, adhesives and textiles.
In the Major Vegetables and Root Crops Quarterly Bulletin (January-March 2024) published by the Philippine Statistics Authority, cassava production from January to March 2024 was placed at 445.99 thousand metric tons, registering a decrease of 8.9 percent from the previous year same quarter level of 489.41 thousand metric tons.
The top producers were Northern Mindanao, Bangsamoro Autonomous Region of Muslim Mindanao, and Cagayan Valley whose combine output comprised 72.3 percent of the country’s total cassava production.
For 2023, the volume of cassava production was 2,556.24 thousand metric tons.
Among the buyers/processors of cassava in the country is San Miguel Foods, Inc., a subsidiary of San Miguel Corporation.
Last month, San Miguel Foods reported its regenerative agriculture program yielded over 90,000 metric tons of cassava in the first half of the year, 44 percent more than the produce for the same period last year.
Cassava, utilized by San Miguel Foods as partial or complete replacement for traditional feed ingredients like corn and wheat, is very useful in animal nutrition as its by-products, cassava meal and peels can also be used as feed components.
“Due to its high carbohydrate and energy content, it is used as an alternative for traditional ingredients like corn and wheat. Its byproduct, cassava pulp, may also be considered as another ingredient for animal feeds, highlighting the crop’s versatility in animal nutrition,” SMC Chairman and CEO Ramon S. Ang said.
To spur cultivation of cassava, San Miguel Foods has its Cassava Assemblers Program in which farmers organize and form small businesses to assemble a minimum of 20 hectares for cassava planting.
The program offers a guaranteed market with purchase agreements, fixed floor price and technical assistance.
Assemblers buy produce or harvest directly from small farm holdings which is helpful to farmers without adequate funds to transport and sell their produce.
This solves the problem of economies of scale in production, lowering the unit cost of harvesting or transport, to a point where it is profitable for both the farmer and the assembler.
This arrangement works best not only for the farmers and assemblers but also for San Miguel Foods as it is assured a steady supply of cassava for its requirements.
“Our goal has always been to support farmers by harnessing the potential of cassava, a root crop that is ideally suited for cultivation in the Philippines,” RSA added.
Under the program, 100 farmers cultivated cassava on 45,000 hectares of land across 57% of the country’s provinces, producing 66,763 MT of cassava last year.
The program has been ongoing for many years in many provinces nationwide.
Aside from cassava production, the program contributes to regenerative agriculture.
The crop contributes to the soil’s health as its root system can break up compacted soil, improve soil structure and increase organic matter content.
Cassava plants are also efficient at capturing carbon dioxide and storing this in their biomass and soil, contributing to carbon sequestration and climate change mitigation.
SMC’s 2023 Sustainability Report said cassava’s climate contribution include efficient capture of carbon dioxide, fewer chemical inputs requirement and “its drought tolerance and ability to thrive in marginal soils with low water availability.”
SMC’s involvement in agricultural production is not limited to cassava production.
It operates the mega poultry farm in Davao del Sur and more mega poultry farms to be established in other parts of the country.
SMC also has an urban farm called Backyard Bukid at the SMC headquarters where vegetables are grown. What started as a project during the pandemic years, Backyard Bukid is now replicated in other SMC facilities allowing employees to buy low-carbon, pesticide-free, and fresh vegetables.
It is stoking agricultural production.
Its involvement in agriculture reflects San Miguel Foods’ dedication to sustainable farming practices, and SMC’s own commitment to sustainability, as it benefits both the environment and local communities—helping create prosperity for farmers for generations to come.
(MTV, book author/publisher, is president and chief executive officer of Media Touchstone Ventures, Inc. and the president/executive director of the Million Trees Foundation Inc., a non-government outfit advocating tree-planting and environmental protection.)
