Analysis of the Regional Agri-industrial centers (RAICs) and agri-industrial development areas (AIDAs) as approaches to agri-industrialization: focus on the Calabarzon area [Philippines]

The study analyzed industrial dispersal as a policy on agri-industrialization. It evaluated the Regional Agri-industrial Centers (RAICs) and Agri-industrial Development Area (AIDA) in the CALABARZON as approaches to agri-industrialization. It also identified the linkages between agriculture and industry as well as the critical spatial/location factors for agri-industrial sites. Furthermore, the study identified factors to consider and make recommendations on how the RAICs and the AIDA can be effectively implemented so as to contribute to the attainment of agri-industrialization in the country. Industrial dispersal had been achieved through the identification and establishment of the 21 RAICs that are geographically dispersed throughout the country. The RAICs though, are not distinct from the other industrial centers. The input-output analysis indicates that the food manufacturing industry promotes extensive linkages between agriculture and industry. There are firms though, that utilize imported agricultural products as raw materials for manufacturing. Among the food manufacturing firms operating in the CALABARZON, linkages are seen in terms of the utilization of agricultural products as raw materials and employment of people in the countryside. There exist some production arrangements beneficial to the farmers and farmers' organizations. While these firms are not able to generate as much employment because of the relatively low capitalization, they were able to absorb some workers from the rural households. An analysis of the linkages between agricultural producers (farmers) and agri-based manufacturing firms among AIDA projects in the CALABARZON confirmed the linkage in terms of employment of household members in manufacturing. On the other hand, the types of crops grown by the farmers do not promote production and/or contracting arrangements between them and agri-based manufacturing firms. A comparative analysis of selected AIDA projects in the CALABARZON points to the relative success of a private sector-led AIDA that is anchored on the family farm school. Despite its limited reach and number of beneficiaries, this AIDA model provided a more sustainable mechanism considering strong value formation and the partnership of students, parents and tutors of the school in enhancing adoption of technological changes in agricultural production systems. Full implementation of the other project components could eventually lead to the realization of the ultimate goals and objectives of AIDA. Factors to consider to successfully implement the RAICs and AIDA as approaches to agri-industrialization were presented