In a strategic move to combat rising food prices and fuel inefficiency, FAST Logistics Group has announced a landmark farm-to-market initiative in collaboration with the Department of Trade and Industry (DTI), the local government of Aritao, and leading agri-tech firms.
The project aims to stabilize the national food supply chain by professionalizing agricultural logistics and utilizing “backhaul” transport to reduce costs.
The initiative addresses a critical inefficiency in Philippine logistics: an estimated 70% of trucks on the road currently return empty after completing deliveries. By filling these “empty miles” with fresh produce from Nueva Vizcaya, the consortium intends to bridge the gap between farmgate prices and the significantly higher retail costs found in urban centers.
The partnership brings together a robust ecosystem of public and private stakeholders:
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FAST Logistics Group: Leveraging the country’s largest fleet (3,100+ trucks) and warehouse network (2M+ sq.m.) to manage transport.
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DTI (National & Provincial): Providing regulatory oversight and supply chain framework.
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Agro-DigitalPH & Mayani: Connecting smallholder farmers directly to institutional buyers like hotels, restaurants, and supermarkets.
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LGU of Aritao: Serving as the strategic logistics hub for the Cagayan Valley-to-Metro Manila corridor.
At the heart of the program is the establishment of an e-fulfillment and logistics facility in Aritao. This hub will allow local farmers—who produce roughly 120,000 metric tons of vegetables annually—to consolidate their goods and meet the strict requirements of large-scale institutional buyers without relying on expensive intermediaries.
“In the face of rising fuel prices and food insecurity, strengthening backhaul logistics is an immediate and practical solution,” said Manuel L. Onrejas Jr., CEO for Logistics at FAST. “Every empty return trip is a missed opportunity to move essential goods and ease cost pressures on consumers.”
Currently, inefficiencies and multiple handling points can cause the price of vegetables to triple by the time they reach Metro Manila. By maximizing underutilized transport capacity, the initiative aims to:
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Lower Consumer Costs: Reducing transport overhead to cushion the impact of the national energy emergency.
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Increase Farmer Income: Removing middle-men and providing direct market access.
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Reduce Waste: Streamlining the supply chain to ensure fresher produce reaches the market faster.
Aritao Mayor Remelina Peros-Galam lauded the project’s potential to modernize the local economy. “This project is an important step toward making our farmers more competitive and market-oriented, providing them the tools to professionalize the supply chain and improve their livelihoods.”
