This study is part of an overall assessment of the Agriculture and Fisheries Modernization Act (AFMA or R.A. 8435) which aims to evaluate the accomplishments of AFMA, assess the prospects towards completing its objectives, and frame policy recommendations accordingly. Specifically, this component is tasked with assessing AFMA Objective 4: 'To encourage horizontal and vertical integration, consolidation, and expansion of agriculture and fisheries activities, group functions and other services through the organization of cooperatives, farmers and fisherfolk's associations, corporations, nucleus estates, and consolidated farms and to enable these entities to benefit from economies of scale, afford them a stronger negotiating position, pursue more focused, efficient and appropriate research and development efforts, and enable them to hire professional managers' (Section 3.d). The review uses key indicators for horizontal and vertical integration in Philippine crops, livestock and poultry, and fisheries markets. Cases from Philippine Rural Development Program (PRDP) and ARBO-AVAs were analyzed in terms of the four outcomes specified in Objective #4. The results indicate high concentrations for most agricultural crops, livestock and fishing markets. In terms of vertical integration however, most agriculture markets appear to be mostly (weakly) partially integrated. These observations affect the state of market competition and profitability in agriculture markets. If the results can be validated, this study suggests that there are opportunities to better achieve AFMA Objective 4 and improve the outcomes for the agriculture, livestock and fishing markets through: (1) adjustments in the cluster development programs and activities; (2) establishment of an effective M&E system; (3) better defined roles for government and establishment of the appropriate institutional structures; and (4) a deeper understanding of the implications of horizontal and vertical integrations.
