An initiative from the Philippines that aims to act as the bridge between thriving Filipino farmers and investors is now in the spotlight on the world’s stage at Expo 2020 Dubai’s Expo Live: Food, Agriculture & Livelihood Week.
Cropital Enterprises Corporation or ‘Cropital‘ links potential investors to Filipino farms that seek access to funding and affordable capital that allow their farms to grow and prosper. The initiative is the brainchild of its founder and CEO, Ruel Amparo – who conceptualized it initially as a university project back in 2012 for their technopreneurship class. He drew inspiration from his grandmother who owns a small rice farm from his province in Bulacan.
Amparo underscores that to date, farmers in the Philippines still have problems accessing capital and despite ongoing government programs mulled by loads of paperwork and requirements, some farmers had to resort to other means, including loan sharks.
“Rescuing farmers from cycle of debt especially those trapped with predatory lenders should be acted upon with urgency. Farmers not only spend more in interest fees but in many cases are also forced to sell their produce at low prices to their lenders, further reducing their income. At worse, farmers lose their lands because of the debt cycle,” said Amparo.
He added: “Through access to financing, farmers are able to generate better yield, earn more, and invest more to their children’s education or other income streams which will ultimately lead them to a better life. With the private and the public contributing in solving this problem, the sooner the farmers can receive the support they badly needed.”
Supporting Filipino farmers
The Philippines on itself is rife with natural resources and agricultural products. However, the paradox is that the country remains reliant on importing produce from other countries, putting a strain on pricing especially for local farmers.
For instance, Amparo highlights that at present – the Philippines’ cost of production for rice is twice compared to that of its neighboring Southeast Asian countries.
“The bottom line has always been the cost of production. For example for rice, Filipino farmers spend on average PHP 10 to produce 1 KG of rice, while our neighbouring countries spend as much as PHP 8.00 in Thailand and PHP 5.00 in Vietnam. The key to sustainably addressing the issue is helping our farmers become more productive, ability to invest in technologies and inputs that would yield to higher harvest at lower cost. In Cropital, by providing farmers with access to capital and technology, we are slowly able to help them reduce their production cost and better earn,” said Amparo.
Filipino farms likewise experience financial shocks in the form of natural disasters such as typhoons and pests, as well as extreme market price volatilities. Farmer’s families also have difficulties in accessing affordable healthcare.
“It is often in these conditions that our farmers suffer the most and progress made are reversed. It is also during these times when decisions such as removing their children from school or selling their lands are made. The Philippine government can still make improvements through crop insurances, providing health care for farmers, and by strictly managing imports and combatting smuggling,” said Amparo.
He added that their presence in the Expo 2020 Dubai’s global platform presents an ideal opportunity for overseas Filipinos and the international community to help and support the Philippines’ local farming industry to help the next generation of the country’s farmers to sustain their livelihood.
“We have always been hearing about the sufferings of our farmers in our country but it was very difficult especially before to contribute in solving the problem. The technology of today had made it very accessible to support them. Through Cropital, OFWs and supporters may start by investing in the Philippines’ local farms and by influencing your relatives back in the Philippines to purchase directly from farmers through Cropital store or other platforms,” said Amparo.
Cropital is one of the ‘Global Innovators’ featured in Expo Live, chosen from a pool of 11,000-plus applications from 184 countries, highlighting the programme’s global engagement. To date, more than 5.8 million people – including farmers, traders, students, teachers, doctors, patients and people of determination – have benefitted from the work of 140 social entrepreneurs supported under Expo 2020 Dubai’s global innovation and partnership programme Expo Live.
Agricultural innovations have improved the livelihoods of 760,000 farmers worldwide, with 611,000 individuals also given the chance to advance their education and upskill thanks to new ways of sharing content online and offline. Projects within the programme have likewise helped more than one million individuals worldwide receive medical assistance and counselling, playing a crucial role in communities during the pandemic.
Since 2016, and following a thorough comprehensive evaluation process over five selection cycles, the Expo Live Innovation Impact Grant Programme shortlisted and awarded grants of between USD 100,000 and USD 500,000 to organisations from 76 countries.
Her Excellency Reem Al Hashimy, UAE Minister of State for International Cooperation and Director General, Expo 2020 Dubai, said: “I am extremely proud of our Expo Live Programme and its growth, not only in numbers but also in character. Expo Live reminds us of the impact of individual dedication and commitment towards the right causes of our time, an attribute that is so commonly found in the example of our Global Innovators.”
Yousuf Caires, Senior Vice President, Expo Live, Expo 2020 Dubai, said: “Our Global Innovators remind us that creating a radically better future requires collective action, determination and relentless optimism. We are proud of what we have achieved as a programme, firmly believing that social entrepreneurship is a powerful instrument for positive change – a valuable investment that yields social, economic and environmental return.
“For many, the Expo Live grant was their first major investment, which started the ball rolling to attract more financial support farther down the line. The Expo Live team is delighted that our Global Innovators were successful in raising on-average six times more in additional funding, enhancing their work, creating more positive impacts and helping to create 3,000 jobs within their own enterprises – as well as 160,000-plus jobs in the communities they serve.”
