Connect with us

Hi, what are you looking for?


ADB backs RoRo services for streamlining agri supply chains, raising farmer prosperity

ROLL-ON, ROLL-OFF (RoRo) ship terminals are expected to help farmers streamline their supply chains, eliminate middlemen, and raise incomes while keeping consumer prices in check, the Asian Development Bank (ADB) said in a blog post.

In the Asian Development Blog, author Eugenia Co Go said the ADB found that middlemen who ship produce to distant markets often bargain hard with farmers without passing on the reduced costs to consumers. Small-scale farmers have little bargaining power and are vulnerable to price gouging during unusual market conditions.

Established in 2003, the Philippine RoRo terminal system allows trucks to be transported by ship with their cargoes and disembark at their destinations ready to roll to their destinations, skipping the intermediate step of unloading from the ship’s hold. RoRo was intended from the start as a mode of transport to make the supply chain more efficient, and theoretically should lower trading costs and increase income for small farmers.

Most farmers in the Philippines are forced to depend on multi-level intermediaries to arrange the transport of their produce, with 90% of agricultural land estimated at less than three hectares, according to the Census of Agriculture.

Getting rid of middlemen effectively closes the distance between farmers and their consumers.

“Studies have shown that lower trade costs take pricing power away from intermediaries. For example, intermediary profits tend to be larger for remote locations in Sub-Saharan African countries and are also associated with higher consumer prices. Reducing trade costs can alter the distribution of profits along the marketing chain and benefit farmers,” ADB reported.

A RoRo-based transport program is also deemed suitable for inter-island trade by saving on cargo handling costs.

Direct deliveries also mean cost savings on inventory and warehousing, the ADB said. — Luisa Maria Jacinta C. Jocson

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



REUTERS By Luisa Maria Jacinta C. Jocson, Reporter FACTORY ACTIVITY in the Philippines expanded for a tenth month in a row in November, although...


Passengers wait inside the Ninoy Aquino International Airport Terminal 3 in Pasay City, Oct. 29. The growth in remittances is expected to slow next...


Philippine flags are displayed along the streets, June 3. — PHILIPPINE STAR/ EDD GUMBAN By Revin Mikhael D. Ochave, Reporter THE JOINT Foreign Chambers...


Workers prepare relief packs in Pasig City, Aug. 13, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS LOCAL GOVERNMENT units (LGUs) should be given more time...


IN separate advisories, the Securities and Exchange Commission (SEC) has warned the public not to invest in CashBaka, Hero Mining International Group, and


SHIVENDU SHUKLA-UNSPLASH D.M. CONSUNJI, Inc.’s (DMCI) order book declined by 8.1% to P45.3 billion for the past three quarters from P49.3 billion in the...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.