NATIONAL FOOD SECURITY SYSTEM CONCEPTUALIZATION AND ECONOMIC EVALUATION

Abstract

This study conceptualized the National Food Security System or NFSS as a computer-based security early-warning and mitigating system. NFSS is composed of a Geographic Information System or GIS-based software supported with huge databases and computer hardwares. Its job is to ensure any country 's sufficiency on basic food commdities such as rice, corn, sugar, meat and other products through sound resource and marketing management. It uses projection methods and mitigating techniques reviewed and approved by panels of experts in the country of application. It can be stationed at any central location but requires regular input of local data from all locals, such as provinces, states, etc. sent through Internet-formatted e-mails preferably or any other communication means. The system requires local data on (1) climatological disturbances and abnormalities, (2) relevant disasters, (3) crop and food imports/exports and related data, (4) reports onföæi hoarding, smuggling and related crimes, and (5) feedback information to the system. As outputs, the system can generate any time for the entire country and all localities (1) production surplus/shortage projections and (2) applicable food shortage mitigating measures, if any. This study also evaluates the economic feasibility of NFSS application in the Philippines. Analysis indicated that the use of IVFSS has a Net Present Value of P2,160,974,503 (P40/US$1) in 15 years of operation with an internal rate of return of 5,704%, a benefit-cost ratio of 31.98 and payback period of less than four months. The above results were based on an investment of P2,468,290, base year operating cost of P5,793,550 and assumed monthly government savings on food-related expenditures of P

Furthermore, the system was projected to increase food productivity and reduce incidence of sickness, deaths, price escalations, sedition, crimes and other social instabilities directly and indirectly caused by food insufficiency. Sensitivity analysis reveals that the system is still economically feasible even if the resulting monthly government savings is a slow as P40,000 per region. Based on the results, it is concluded that NFSS application in the Philippines is economically feasible.