The Department of Agriculture, in cooperation with the Korea Agricultural Machinery Industry Cooperative, is set to establish in the Philippines an agri-machinery assembly center that aims to increase and ensure local food production and sufficiency.

The incoming cooperative project is the result of the Memorandum of Understanding signed in June last year between the two offices, said Agriculture Secretary Francisco Tiu Laurel Jr.

“The President also recognized the importance of mechanization, stressing that it would result in better yield, lower production cost, and competitive Filipino farmers,” he added.

According to the DA, the project aims to establish a manufacturing plant in the country that will produce Korean agricultural machinery.

It is said to have an initial investment value of US $30 million and will consist of three phases.

DA explained that KAMICO, in the first phase, will invite businesses to produce rice farming machinery and establish parts of the supply system. Moving to the next phase, it will expand its invitation to other companies and ensure technical cooperation with Philippine companies associated with Official Development Assistance – Technology Advice and Solutions from Korea. Lastly, KAMICO will then conduct technology transfer and cooperative production with local companies and undertake domestic supply and export promotion.

“Ultimately, the project aims to set the standard for agricultural machinery and equipment that will be made available to Filipino farmers, and subsequently for export to other agricultural countries,” said the agriculture agency.

“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,” they added.