HOME > Search by Economy > The Philippines > Good Practices > Valenciano and Cuyco (2013) The Value Chain Financing in the Philippines

Valenciano and Cuyco (2013) The Value Chain Financing in the Philippines

  • The Philippines is undoubtedly an agricultural country. The development of rural financing and the shaping of value chain finance must be farmer-centered. RFIs have to design financial product according to the needs and requirements of the farmers and not merely to satisfy targets usually set under a banking industry setup. To establish a more sustained effort, the following directions have to be set:
    • The government must foster a macroeconomic environment that makes value chain financing feasible and viable. A need to enable policy and regulatory agencies to come up with measures for inclusive finance as well as guidelines for mainstreaming informal financial services (PinoyMe & MCPI, 2012).
    •  Improve value chains through institutional capacity and capacity-building of rural finance players including the MFIs. This improvement shall impact on the kind of financing products going to be offered to the target farmers. The scenario of varied financing services where the farmers can choose from must be prevalent.
    •  Small farmers have to be re-oriented that farming is a business and not just a traditional job passed on by their forebears. They have to know the processes of scientific farming from the production to marketing, engaging the RFIs or MFIs as partners to guide them in the farm planning, market negotiation, etc.
    • Government support must remain in the areas of technology, infrastructure, insurance and guarantees--- all considered to be risk-mitigating measures on the part of the RFIs.
Also browsed