PHILIPPINE PRESIDENT SEEKS U.S. FUNDS FOR IRRADIATION FACILITY FOR MANGOES Asia Pulse MANILA, May 21, 2003 President Gloria Macapagal Arroyo remains optimistic that she will be able to secure, during her state visit to the United States this week a US $10 million stand alone grant for the setting-up of a comprehensive irradiation facility in the country. Trade and Industry Secretary Mar Roxas, who is currently with the President in the US visit said, the facility is a vital component in significantly increasing the export of Philippine mangoes and other tropical fruits and vegetables to the US. "The facility, if approved by the US, will allow the agriculture sector to conduct its own irradiation treatment on the country's fruits and vegetables, a phytosanitary measure required by the US in exporting commodities to their ports," Roxas said. The US Department of Agriculture (USDA) approved in October last year the use of irradiation technology as phytosanitary measure for treating flies and pests in Philippine fruits and vegetables bound for export. "The President expressed satisfaction on the approval of the Philippine petition which the government has been constantly negotiating with the US for many years," he said. "This will mean greater market access for the country's exports of fruits and vegetables, especially for Philippine mangoes, which saw increasing demand among US consumers," Roxas said. "This positive development will also be of immense benefit to the country. The approval will mean that the conduct of a survey for mango pests in Mindanao and other areas of the country, may no longer be necessary as irradiation already serves as an alternative phytosanitary treatment to traditional methods like the VHT (vapor hydration test)," Roxas said. The USDA however clarified that irradiation treatment for fruits and vegetables should first be proven effective on the mango seed and pulp weevil and the two species of fruit flies (Bactrocera Occipitalis and Bactrocera Philippinensis) before any shipment can be allowed from areas other than Guimaras Island. At present, only mangoes produced from Guimaras are authorized entry to US ports. Taking into account the said condition, Roxas said the President has lined-up as one of her agenda in the state visit to the US, to seek the Bush administration's approval of the grant. "The President is confident we will be able to get a positive response on this front,' Roxas said. "Prior to the state visit, the US panel, during the RP-US Trade and Investment Consultative Sub-Ministerial meeting conducted early this month, informed our officials that they are eyeing Public Law 480 (PL 480) as the source of funding for the irradiation project," he said. PL 480 also known as the Food for Peace program is a US government program designed to aid developing countries through grants and concessions. The food aid program is comprised of three titles. Each title has different objectives and provides agricultural assistance to countries at different levels of economic development. Title I of the PL 480 program, administered by USDA, provides for government-to-government sales of agricultural commodities to developing countries under long-term credit arrangements. Titles II and III, as administered by the USAID (US Agency for International Development), are entered into to combat hunger and malnutrition; promote broad-based equitable and sustainable development, including agricultural development; expand international trade; develop and export markets for US agricultural commodities; and to foster and encourage the development of private enterprise and democratic participation in developing countries. In the latest report by the USAID, food assistance programs (including Title II) made up over 23 per cent of the total US Foreign Assistance. Title II (including both Emergency and Non-Emergency Programs) accounted for $949 million. Almost half of Title II funds ($435 million) were used for development, i.e., non-emergency activities. Regionally, $170 million (39 per cent) was used to support development activities in Asia/Near East (41 per cent), in Africa (32 per cent) and in Latin America and the Caribbean (27 per cent). This represented a significant increase of $40 million in the Asia/Near East Region, and $40 million in Africa from the previous year. More than half of the 42 countries receiving Title II funding are in Africa. While the said grant is up for discussion with the US government, Roxas said Sunbeam Corporation, an innovator of electron beam irradiation, has already entered into a joint venture with a local agribusiness firm to establish the fist irradiation facility in the country. "A team from the USDA and Sunbeam met with out agriculture officials in November last year to plan the technical assessment of Philippine horticultural pests and diseases to pave the way for the entry of fruits and vegetables to the US," he said. "Officials of our Bureau of Plant and Industry and Sunbeam met again in February this year to discuss the survey data on the presence of mango seed and pulp weevils in the country and a possible development of a pest risk analysis for papaya," Roxas said. Aside from the $10-million grant, Roxas added the Philippines will also seek a separate grant from the USDA for the conduct of a joint collaborative work for fruit fly species earlier mentioned to determine if they can be controlled by the irradiation technique. "The same will be done to determine if the said technique will also work on pulp weevil," he said. "Financial assistance or grant from USDA-Animal and Plant Health Inspection Service for the conduct of a nationwide survey to prove and establish the absence of mango seed weevil in the country will likewise be requested by the government,' Roxas said. Exports of fresh Philippine mangoes to the US amounted to $39,200 in 2001. But since its re-entry to the US market last year, this figure ballooned to more than $606,411 in 2002. "The Philippines is expecting to corner about $70-million for the export of fresh mangoes in the Us market which is currently dominated by Mexico," he said. The Philippines is the 6th largest world producer of mangoes, with 9 per cent share in the world market valued at $34 million in 2000.