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June 19, 2024

DBP commits to funding government’s food supply and logistics program

The Development Bank of the Philippines (DBP) has reaffirmed its commitment to supporting the government’s three-year food supply and logistics master plan. Bankero, DBP President and CEO Michael O. de Jesus expressed full support for the government’s initiative, emphasizing DBP’s readiness to leverage its financial capability and experience to ensure reliable food supply at reasonable prices for all Filipinos.

While the specific financial commitment was not disclosed, de Jesus highlighted that lending deals related to the logistics sector reached P18.5 billion as of the end of June, with an additional P45.5 billion in loans released for the logistics sector in the first half of 2023.

DBP’s involvement extends beyond financial support; the bank intends to work closely with key government agencies, including the Department of Trade and Industry (DTI) and the Department of Agriculture, as well as other stakeholders to modernize the food distribution system and address existing supply chain gaps.

Furthermore, DBP’s mandate includes offering strategic financing support to critical economic sectors, such as infrastructure and logistics, micro, small, and medium enterprises (MSMEs), social services, and the environment. As of June 2023, DBP had provided P281.6 billion in financing for the infrastructure and logistics sector, representing about 55.5% of its total loans during that period.

Additionally, DBP has allocated significant loans to other sectors, including agriculture, environmental projects, and MSMEs. The bank has also taken a lead role in the Connecting Rural Urban Intermodal Systems Efficiently (CRUISE) program, having approved P25.55 billion in loans as of end-July for 189 borrowers nationwide.

The government’s three-year food logistics action agenda aims to ensure food availability, accessibility, and affordability. Key strategies include the modernization of the food distribution system and increased investment in logistics infrastructure to address supply chain gaps. The agenda also emphasizes the prevention of hoarding, smuggling, and overstaying food imports, enhanced warehouse monitoring, and the use of information and communications technology to improve logistics performance.

As of end-June, DBP reported a net income of P4.42 billion, marking a 60% increase compared to the same period the previous year, which saw earnings of P2.76 billion.