Clark food hub to help in agri storage, logistic woes

CLARK FREEPORT — The proposed National Food Hub in Clark will become the largest and most advanced agro-logistics facility in the Philippines.

The country's archipelagic characteristics pose challenges to the national food supply chain.

The first of its kind, the Clark food hub will feature cutting-edge cold storage facilities and state-of-the-art agro-logistics systems, situated within the Clark aviation complex.

It is also one of the most expensive projects, with its first phase of development costing some P8.5 million.

Clark International Airport Corp. (CIAC) President Arrey Perez said the Clark National Food Hub project will occupy some 62 hectares of the 2,300-hectare aviation complex.

“This is a centrally located facility with a very good business management structure. It’s a facility that has the ability to aggregate, store, distribute, and market local and regional products coming from the agricultural base of the country,” Perez said.

The CIAC official said that the hub will cater produce coming from the northern regions of Luzon, including the Cordillera Administrative Region and Luzon’s food basket Region 3.

Perez said the plans aim to eliminate the middlemen and provide ready logistical support for farmers and cooperatives.

He added that two master plans from the Department of Agriculture (DA) and the Department of Trade and Industry (DTI) will be used in setting the direction of the hub’s logistical capabilities, particularly on preventing wastage of agricultural products due to poor logistics and lack of storage facilities.

Agriculture Secretary Francisco Tiu Laurel Jr., earlier this year, said that 30 percent of all agricultural production in the Philippines is wasted due to “poor logistics” and inadequate post-harvest facilities.

Food has also been among the drivers of the country’s inflation since early this year.

Though the Philippine Statistics Authority reported that inflation at the national level has slowed to 6.1 percent, this still highlights the need to counter food-driven inflation through adequate supply.

Perez said the mega food hub aims to “Enhance food security by ensuring reliable access to high-quality food products.”

“The facility will feature warehousing and cold storage so that food that is not sold could be sold later,” Perez said.

In February this year, the DTI

said that the proposed facility “actualizes the farm-to-fork strategy embodied in the Three-Year Food Logistic Action Agenda, which seeks to revolutionize the food distribution network in the country from farm to fork.”

The said agenda aims to establish food hubs outside of Metro Manila and other parts of the country.

In July this year, CIAC had signed agreements with the Asian Development Bank (ADB) and the Public-Private Partnership (PPP) Center for guidance and technical support to the project.

State-run Maharlika Investment Corp. is also expected to invest some 10 to 20 percent of the project, according to Perez.

Just this August, the House Committee on Trade and Industry, chaired by Rep. Ferjenel Biron, greenlighted House Bill 10678 at the committee level.

The bill seeks to establish the Clark National Food Hub to ensure government and private sector support.

However, the bill would have to pass the Committee on Appropriations and the Committee on Ways and Means to discuss the tax incentives and funding requirements for the said proposal before it will be discussed in the House plenary and eventually reach the Senate.

Perez said the project will initially ensure quality and safe products for local distribution.

He added that the project will also entail capacity building for farmers and farmer cooperatives.

On a longer shot, the mega food hub is expected to explore food export for local products.

“We are targeting North America, Europe, and the Middle East eventually, but right now we want to become the powerhouse of food distribution in the Asia-Pacific,” Perez said.

The project is expected to be completed in 2027. It will be through a public-private partnership or through a joint venture.