The Philippine Competition Commission (PCC) has identified four structural weaknesses in the highland vegetable industry that continue to squeeze farmers’ incomes and prevent lower production costs from translating into cheaper prices for consumers.
The findings, presented during a policy dialogue with the Department of Agriculture-Cordillera Administrative Region (DA-CAR) on July 3, suggest that improving competition across the supply chain could be as important as boosting farm output in addressing food inflation.
The study, which focused on the carrot and cabbage value chains, found that farmers continue to face high production costs and limited access to modern technology, reducing productivity and profitability despite steady demand.
The PCC also flagged an imbalance in bargaining power between farmers and traders, leaving producers with limited leverage in negotiating prices and a smaller share of the value created along the supply chain.
Another concern was the weak relationship between production volumes and wholesale and retail prices, indicating that bigger harvests do not consistently translate into lower market prices. The commission also cited bottlenecks in market access and product distribution that restrict farmers’ access to buyers and reduce overall supply chain efficiency.
The findings reinforce a long-standing challenge in Philippine agriculture, where improving production alone has often failed to stabilize food prices because of inefficiencies between farms and consumers.
DA-CAR said many of its ongoing programs already address the issues identified in the study. These include investments in warehouses, trading centers, cold storage, processing facilities and transport infrastructure to reduce post-harvest losses and improve market access.
The agency is also providing trading capital, consolidation centers, hauling vehicles and processing equipment to accredited farmer cooperatives and associations to strengthen product aggregation and improve their bargaining position in the marketplace.
In addition, DA-CAR highlighted technology partnerships with Japan and South Korea that aim to modernize farming practices and raise productivity.
Both the PCC and DA-CAR said the dialogue will help refine the study and support evidence-based policy recommendations that promote fairer competition, improve supply chain efficiency and deliver better outcomes for both farmers and consumers.
