A South Korean firm is investing $100 million to build the Philippines’ first large-scale agricultural machinery manufacturing complex, a move that could help address long-standing mechanization gaps and reduce the country’s heavy reliance on imported farm equipment.
President Ferdinand R. Marcos Jr. on Wednesday (December 10) led the groundbreaking of the Korea Agricultural Machinery Industry Complex (KAMIC) in Cabanatuan City, Nueva Ecija, positioning the project as a cornerstone of the government’s drive to modernize agriculture and raise farm productivity.
Despite being a major producer of rice and other staples, the Philippines remains under-mechanized compared with regional peers, with many farmers relying on imported tractors, seeders, and harvesters that are costly to purchase and maintain. Delays in spare parts and after-sales servicing have also raised operating costs and downtime for farmers, particularly smallholders.
During the ceremony at the Kalikid Golf Course, Marcos acknowledged the sacrifices endured by Filipino farmers, stressing that their “struggles deserve solutions that are lasting and within reach.”
“The KAMIC is the first agricultural machinery production complex in the country. Its purpose is to strengthen our capacity to develop and build farm machinery,” the President said.
“Designed with Filipino farmers in mind, these tools will help increase production, improve crop quality, and ultimately raise the income of our farmers,” he added.
By shifting part of the agricultural machinery supply chain onshore, the project is expected to ease chronic bottlenecks in farm operations, including delays in spare parts and the high cost of imported equipment.
“With KAMIC, farmers no longer have to wait for parts for their equipment or pay for overpriced equipment,” he said.
“No more farmers left behind in farming technology. The importance of mechanization in agriculture cannot be overstressed,” the President added.
The President also thanked South Korea for investing in the country and gave assurances that the government would safeguard foreign investments.
“To our Korean partners, thank you for believing that the Philippines is worth investing in. Thank you also for trusting the Filipino farmer and for taking part in our shared progress. Our partnership together brings technology and hope to these individuals who nourish and sustain us,” he said.
“I assure you that the government will continue to promote policies to protect your investments here in the Philippines.”
The KAMIC facility will rise on a 20-hectare local government-owned site in Barangay Kalikid Sur and will assemble and manufacture farm equipment such as tractors and seeders tailored to Philippine conditions.
Beyond supplying machinery, the complex is expected to support skills development, technology transfer, and after-sales servicing—key elements often missing in an import-dependent system.
For policymakers and industry players, the project signals a shift from piecemeal mechanization support toward building a domestic manufacturing base, with the potential to lower costs, improve farm efficiency, and strengthen food security over the long term.