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Tuesday, August 5, 2025

Is Cutting Out the Middlemen Possible?: A Call to Save Philippine Farmers


Wazzup Pilipinas 



Why can't the Philippine government buy directly from our farmers instead of letting them go through layers of bureaucracy that benefit the middlemen and leave our food producers in poverty?


It’s one of the most pressing and frustrating contradictions in Philippine agricultural policy — that while our farmers feed the nation, they are among the poorest sectors of society. The question of why the government doesn't just buy directly from farmers is layered with systemic, institutional, and political factors:


1. Bureaucratic Red Tape and Procurement Laws

The Government Procurement Reform Act (RA 9184) requires government agencies to go through complex bidding processes. This often excludes small-scale farmers who lack the capacity to comply with stringent documentary and legal requirements — such as business permits, BIR registration, or the ability to produce in large volumes on schedule.


Result: Government buyers turn to accredited suppliers or cooperatives, many of which are controlled by middlemen or traders rather than actual farmer groups.


2. Lack of Organization Among Farmers

Many Filipino farmers remain fragmented and unorganized, making it hard for them to form legal cooperatives or associations that can transact directly with government institutions like schools, hospitals, or LGUs.


Why this matters: Governments are hesitant to transact with informal groups due to issues of accountability and supply reliability.


3. Influence of Middlemen (Traders and Consolidators)

Middlemen control the logistics, financing, and access to markets — including the very supply chains that feed into government procurement. Many small farmers are financially dependent on traders for capital (via utang or advance payments), making it difficult to bypass them.


In essence: Middlemen are deeply embedded in the system — sometimes even having political connections that protect their interests.


4. Institutional Resistance to Reform

There have been attempts to reform this, like the implementation of the Kadiwa ni Ani at Kita program, which aims to link farmers directly to consumers and institutional buyers. However, such programs are often poorly funded, inconsistently implemented, or politicized at the local level.


Also, large-scale reforms would threaten entrenched interests, which is why reform inertia is so persistent.


5. Poor Infrastructure and Market Access

Even if the government wanted to buy directly, lack of farm-to-market roads, cold storage, transport facilities, and digital systems make it challenging to scale direct procurement.


6. Corruption and Patronage

Some procurement decisions are influenced by kickbacks, nepotism, or political patronage, favoring suppliers who grease the wheels over actual producers.


What Can Be Done Instead?

Amend Procurement Laws to allow exemptions or special provisions for smallholder farmers, especially for local feeding programs or LGU markets.


Strengthen Farmer Cooperatives with capacity-building, legal support, and technology to empower them as legitimate suppliers.


Enforce farmgate price protections or guaranteed minimum pricing.


Institutionalize farm-to-table programs in LGUs with transparent, monitored procurement systems.


Digital platforms like eKadiwa or local agri-marketplaces can help remove middlemen if managed well.


Final Take:

The problem is not that government cannot buy directly from farmers — it's that the system is designed in a way that makes it easier not to. But with the political will, legal reform, and pressure from civil society, this can change. Farmers deserve more than survival — they deserve to thrive.

About ""

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