The Promise of Inclusive Value Chains
In August 2026, a ceremonial signing at Malacañan Palace marked a significant evolution in the Philippines’ approach to agricultural development. The Kapatid Angat Lahat Agri Program (KALAP) brought together government, corporate giants, and agricultural entrepreneurs under a single framework aimed at integrating small farmers into the value chains of large companies.
Presidential Commitment to MSME Empowerment
President Ferdinand R. Marcos Jr. framed the initiative as a necessary correction to decades of fragmented agricultural policy. “We also recognize the role of big corporations in innovating MSMEs, spurring their growth, and realizing their potential,” he stated, emphasizing that KALAP would enable farmers and MSMEs to become more productive, profitable, sustainable, and globally competitive.
The program operates under the umbrella of Go Negosyo, the entrepreneurship advocacy founded by Joey Concepcion III, which has spent years building the trust and networks necessary for such cross-sector collaboration. The President acknowledged Concepcion’s sustained efforts, noting that these partnerships represent “precisely the kind of partnerships that we are hoping to bring together”.
Beyond Rhetoric: Structural Changes in Agribusiness
What distinguishes KALAP from previous agricultural initiatives is its explicit focus on the profit that flows back to farmers. The President’s speech directly addressed a persistent criticism of agricultural programs: “Sometimes what gets lost in that discussion is what is going to be the profit that goes back to the farmers. And in the end, this is really what it’s all about—a decent living for our farmers”.
This farmer-centric approach is operationalized through the Producer-Public-Private Partnership (4Ps) model, which has already demonstrated measurable results. In Bukidnon, the RAPID Growth Project—a collaboration between IFAD, DTI, and private enterprises—has successfully linked farmer organizations with corporate buyers while providing essential production support.
The IFC-OnePuhunan Financing Dimension
The agricultural integration agenda is complemented by parallel efforts in rural finance. In March 2026, the International Finance Corporation announced a partnership with OnePuhunan, a leading microfinance institution, to expand access to finance in underserved communities. The transaction, processed under IFC’s MSME Finance Platform, includes a three-year senior loan of up to $20 million and a mobilization of up to $40 million for on-lending exclusively to women-owned or led microenterprises in rural areas.
“MSMEs play a major role in creating jobs and boosting prosperity especially in underserved communities,” said Amena Arief, IFC Country Manager for the Philippines. “By partnering with OnePuhunan, IFC is expanding access to finance for women entrepreneurs in rural Philippines—helping them grow businesses, create jobs, and build resilience where it is needed most”.
Scaling the Model Across ASEAN
The KALAP framework aligns with broader regional objectives as the Philippines prepares for its ASEAN Chairship. The ASEAN Business Advisory Council Philippines has secured partnerships with major conglomerates like San Miguel Corp. to strengthen supply chain linkages and foster sustainable growth for MSMEs across the region. ASEAN-BAC Chair Joey Concepcion III signed a memorandum of understanding with San Miguel Corp. leadership, formalizing a commitment to integrate smaller businesses into broader regional value chains.
This regional dimension adds strategic weight to KALAP’s domestic achievements. When ASEAN promotes inclusive business models, more MSMEs, farmers, micro-entrepreneurs, and community enterprises gain access to markets, financing, technology, and business opportunities that were previously out of reach.
Leave a Reply