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Philippines signs 605 farm-to-market road projects and courts a fast-growing grocery chain

The Philippine Department of Agriculture has agreed 605 farm-to-market road projects worth PHP9.06bn in northern Luzon and is exploring a deal with DALI Everyday Grocery, which runs 1,403 stores, to buy directly from farmer cooperatives.

Philippines signs 605 farm-to-market road projects and courts a fast-growing grocery chain
Agribusiness

The Philippine Department of Agriculture (DA) is working on two fronts to get farm produce to buyers more cheaply: better rural roads and a direct line to a fast-growing grocery chain, AgNavigator reports.

The DA and the Department of Public Works and Highways have signed an agreement covering 605 farm-to-market road projects worth PHP9.06bn (US$144m), spanning 604 kilometres across 26 provinces in northern Luzon. Poor roads have long raised hauling costs and made it harder for farmers to reach buyers and supplies, the department says. The agreement is part of a national programme: the 2026 budget funds more than 1,600 farm-to-market road projects covering about 2,200 kilometres.

At the same time the DA is exploring a partnership with DALI Everyday Grocery, a neighbourhood-store chain that runs 1,403 shops serving more than 10 million customers a month and opens roughly one store a day. It plans 1,600 stores by the end of 2026 and has set a long-term target of 16,000 by 2035. DALI wants reliable farmer groups and cooperatives for direct farm-to-customer sourcing; its first major farm sourcing effort was potatoes, and it is considering warehouses near Benguet and Pangasinan to collect produce close to the farms before it goes to Metro Manila stores.

"DALI can provide a ready market for our local farm products and potentially become a contract-growing partner for our farmers. This can help give them more stable markets, encourage them to produce more, and ultimately raise their incomes," Agriculture Secretary Francisco Tiu Laurel Jr said after meeting DALI board director Thirdie Icasas.

The talks also covered the DA's planned food hubs, including a 46-hectare Clark Food Hub and facilities proposed in Quezon, Batangas, Bukidnon and Cebu, and cold storage near the Benguet Agri-Pinoy Trading Center.

Photo: Judgefloro / Wikimedia Commons (CC0)

Source: AgNavigator

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