Agriculture sector grows 4.3% in Q3

Agricultural production, which accounts for a fifth of the country’s gross domestic product (GDP), grew by 4.32 percent in the third quarter from the same period in 2002, the Department of Agriculture (DA) reported yesterday.

For the first nine months of the year, farm output expanded by 2.87 percent, boosted largely by the strong performance in the third quarter.

The DA attributed the 4.32-percent growth in the third quarter to the marked improvement in the crops subsector which grew by 2.29 percent compared to only 0.90 percent last year.

"The crops subsector was our driving factor with both palay and corn recording growths during the period, reversing their declines a year ago," Agriculture Secretary Luis P. Lorenzo Jr said.

The other gainers during the period include the livestock subsector which was up 3.17 percent led by the hog and poultry industries that posted growths of 4.31 percent and 3.67 percent, respectively.

The fishery subsector also recorded a 3.37 percent growth although this was lower that last year’s growth of 5.63 percent.

The Bureau of Agriculture Statistics (BAS) previously reported that palay production in the third quarter surged 20 percent to 2.43 million metric tons (MT) compared to last year’s level of 2.02 million MT. Yields for 2003 are expected to surpass last year’s figures by at least 190,000 MT.

The DA is bent on offsetting the decline in palay production in the first semester to drench talks that the projected full-year growth target of four percent for the agriculture sector will not be met because of low output in the first six months this year.

The El Nino weather disturbance limited the country’s farm sector growth to just 2.79 percent in the first quarter this year compared to the 5.24 percent expansion posted during the same period in 2002. The second quarter growth was only 1.52 percent, way off the 3.43 percent growth during the same period last year.

For the first semester, the country’s farm sector growth slowed down to just 2.4 percent in the first semester compared to the 3.22 percent growth during the same period in 2002.

The DA however, has intensified its support for palay planting, and identified areas where improved and higher-yielding rice varieties were to be planted. It provided crop loans and fertilizer subsidies to major rice-growing regions of Cagayan Valley, Central Luzon, Western Visayas, Bicol and Region 12 composed of North Cotabato, Sarangani, South Cotabato, Sultan Kudarat and Cotabato City.

Previously, Lorenzo said palay production is expected to improve by 1.4 percent to reach 13.46 million metric tons (MT) this year, up by almost 190,000 MT from its 2002 level of 13.27 million MT.

"Despite the devastating typhoons in the third quarter which exacted heavy toll on our rice growing areas, we will end up with 2003 on a positive note, with our palay output much higher than last year’s," Lorenzo said, adding that, "the second semester production is seen to soar 6.3 percent to 8.08 million MT, thus compensating for the loss incurred in the first half."

Poor weather brought down production of palay, the country’s major staple, by 5.13 percent to 5.381 million metric tons (MT) in the first semester compared to 5.6 million MT in the first half of 2002.