Press Release
July 21, 2007

PUBLIC FOOD HANDLING-AND-STORAGE CENTERS
TO LOWER FOOD PRICES, INCREASE FARMERS' INCOME -- JINGGOY

OPPOSITION stalwart Sen. Jinggoy Estrada urged the government to develop an effective and efficient system for food handling-and-storage which he said could lower food prices significantly as well as increase the income of farmers and producers.

"Millions of pesos are lost because of spoilage and damage especially on perishable food harvests such as vegetables, fruits, seafoods and meats during hauling and transporting, and, during handling and storage of the products before their distribution to the market," Estrada noted.

According to farmers, traders and distributors, about 30% of harvested fruits and vegetables suffer spoilage and damage due to decay, over-ripening and injury starting at farmgate haul, up to the distribution phase. On poultry, seafoods and livestock, the spoilage and damage amount to about 15 percent.

"The traders and distributors are affected, but they could maintain their profit margin by increasing the cost of the products. The ones suffering the most are the farmer-producers who are forced to shoulder the spoilage margin, and ultimately, the consumers who bear all the added costs on the products," Estrada said.

Estrada said the trading (including hauling and transporting) and distribution of food products are mainly done by private businessmen, so it is in the handling and storage of the products where the government could get involved, providing the needed system and facilities for the entire food supply sector.

"The government should establish Public Food Handling and Storage Centers in strategic locations all over the country, particularly in areas where the bulk of food harvests come from such as, for example, in the grain-producing Central Luzon, in fruit-basket Mindanao and in the seafood-rich Southern Luzon . The centers could charge a minimal fee for their services," Estrada said.

The centers, he said, should be equipped with warm and cold storage rooms, blast-freezing equipment, conveyors, large warehouses and all other related facilities, and operated by trained personnel.

"These centers could greatly minimize spoilage, extend the shelf life of food and maintain the quality and freshness of the goods. These could thus help ensure steady food supply at very reasonable prices, increase the income of farmer-producers and generate more economic activities in the country," Estrada added.

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