The Department of Agriculture and Korea Agricultural Machinery Industry Cooperative (KAMICO) have joined hands to establish an Agri-Machinery Assembly Center in the Philippines, a project meant to increase local food production and create an industry that would export farm equipment.
“This is the result of the Memorandum of Understanding, signed last year, between DA and KAMICO that aims to set up the Korea Agricultural Machinery Manufacturing Cluster in the country,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. said.
He said President Ferdinand R. Marcos Jr., who witnessed the MOU signing, expressed the view that the partnership will boost local food production.
“The President also recognized the importance of mechanization, stressing that it would result in better yield, lower production cost, and competitive Filipino farmers,” Laurel said.
The project, with an initial investment of USD30 million, aims to establish a manufacturing plant producing Korean agricultural machinery in the Philippines.
During the initial phase, KAMICO will invite companies to produce rice farming machinery and establish parts of the supply system.
KAMICO will attract additional companies during the second phase of the project and ensure technical cooperation with Philippine companies associated with Official Development Assistance – Technology Advice and Solutions from Korea (ODA TASK).
In the final phase, KAMICO will conduct technology transfer and cooperative production to local companies and undertake domestic supply and export promotion.
Ultimately, the project will set the standard for agricultural machinery and equipment that will be made available to Filipino farmers, and subsequently for export to other agricultural countries.
By establishing agricultural machinery production bases and industrialization infrastructure in the Philippines, the project will boost employment and promote specialization and advanced technology transfer among Filipino technicians.
Earlier this month, KAMICO led by its chairman Shin Gil Kim, Director Si Min Yi, and Philip Kim of KAMICO Philippines, visited sites in Cabanatuan, Nueva Ecija and Tiaong, Quezon to assess the terms and conditions offered by local government units. In They also met with Secretary Laurel for a wrap-up meeting and to discuss findings during their visits.
Laurel welcomed the collaboration and offered to extend assistance, through the Department’s relevant agencies, towards the realization of the project.
Established in 1962, one of KAMICO’s major thrusts is to aid developing countries with agricultural machinery that will greatly impact production and increase productivity and income. It has 700 company-members to date.
