Agricultural output grew by 1.08% year on year in the first quarter, with gains in the crops, livestock and poultry subsectors offsetting a contraction in fisheries production, the government yesterday said.
The result, however, was lower than the 4.1% expansion recorded in the first three months of 2011, which was the fastest first-quarter growth since 2004 and due to increased palay (unmilled rice) and corn production.
Bureau of Agricultural Statistics (BAS) data showed that the entire crops subsector, which accounted for 52.83% of the period’s total farm output, posted a 0.80% increase led by corn, coconut and coffee.
Corn production rose by 5.38% to 2.017 million MT, attributed to expanded harvest areas and increased yields due to favorable weather, while palay production dropped by 1.12% to 3.99 million metric tons (MT).
“The slight decrease in palay output was partly because of the movement in harvests in some provinces from the first quarter to the second quarter due to continuous rains,” Agriculture Secretary Proceso J. Alcala said.
The BAS identified the provinces as located in the Cagayan Valley and the Autonomous Region in Muslim Mindanao.
Mr. Alcala explained that output from the adjustments would be reflected in data for the first semester, which he expects to be an improvement from last year’s.
The BAS also forecast palay production in the second quarter to increase by 8.7% year on year to 3.85 million MT. Corn output may also go up by 2.1% to 1.42 million MT in the period.
For the first semester, palay output may reach 7.84 million MT, 3.4% higher than last year’s output of 7.58 million MT. Corn production is expected to reach 3.44 million MT versus last year’s 3.31 million MT.
The country produced 16.7 million MT of palay and 6.971 million MT of corn last year. For 2012, the department’s full-year targets for palay and corn are at 18.46 million MT and 7.846 million MT, respectively.
The Agriculture chief said both targets would be maintained as field monitoring indicated that production remained on track.
The livestock subsector, meanwhile, which accounted for 15.47% of total agricultural output, gained by 3.17% in the first quarter mainly because of a 3.4% hog production rise. Carabao, cattle, goat and dairy production also increased in the period.
The poultry subsector, which had a 14.07% share, expanded by 7.06%, attributed to a 7.4% rise in chicken production.
But the fisheries subsector, which contributed 17.63% to the total farm output, contracted by 4.12%. The decline was attributed to decreased fishing activities arising from conservation measures implemented to allow fish species to regenerate and increased operational costs.
“Fishery output declined in January to February mainly because of the sardine fishing ban we imposed in Zamboanga late last year, which we lifted only last March,” Mr. Alcala said.
The Zamboanga Peninsula is considered to be the country’s sardine capital, hosting 454 operating commercial fishing vessels.
“Recent reports from the province indicate that harvest is good, as the fishing ban had resulted in an increase in fish population in their waters,” he added.
Mr. Alcala also reported that the department was expecting an additional 120,000 MT to 150,000 MT of fish harvest by the third quarter due to the partial lifting of a two-year commercial fishing ban in an area in the Pacific Ocean to curb overfishing of skipjack, big-eye and yellowfin tuna.
The ban was imposed in January 2010 by the Western and Central Pacific Fisheries Commission (WCPFC), of which the Philippines is a member.
Last month, the WCPFC allowed Filipino fishermen to access a 306,000-square mile area flanked by the exclusive economic zones of the Federated States of Micronesia, Palau, Indonesia and Papua New Guinea.
“Only the Philippines was given the right to fish in this area again,” Mr. Alcala said.
Value-wise, the country’s agricultural output for the quarter was worth P341.1 billion at current prices, 3.14% compared to the same period in 2011.
The drop was due mainly to a reduction of prices of crops like coconut, sugarcane, bananas, mangoes and onions.
Mr. Alcala remained optimistic about reaching this year’s farm growth target.
“We are maintaining our previous target of a 4% to 5% growth in farm output for this year, as we expect better production from all subsectors beginning the second quarter,” he said.
But Rolando T. Dy, executive director of the University of Asia and the Pacific’s Center for Agribusiness, said that while a recovery was “expected” in the coming months, the full-year result could come in below target.
“[Our] best estimate for the year is 3%,” Mr. Dy said in a text message.
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By: Bettina Faye V. Roc
Source: BusinessWorld, May 11, 2012
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