YEARENDER: Agri sector suffers full brunt of climate change

MANILA, Philippines - The agricultural sector in 2011 felt the full impact of climate change, which thwarted plans by the Department of Agriculture (DA) to raise rice and corn production this year, then moving on to rice self-sufficiency by 2013.

After a promising 5.48-percent growth by the sector in the first half, Agriculture Secretary Proceso J. Alcala was confident that the full-year growth target range of 4.5 percent to 5.5 percent would be achieved.

A mild La Niña occurrence in the first half of the year contributed to higher palay (unhusked rice) production, reaching 7.58 million metric tons – an almost 16-percent increase from 2010’s first half palay production which suffered a 15-percent decline.

Corn production in the first half reached 3.31 million MT.

The DA’s success in palay production in the first half encouraged Alcala to remain firm on limiting rice imports this year to 860,000 MT. Past rice imports all exceeded the one-billion MT mark.

Alcala had set a goal of rice self-sufficiency by 2013 and appeared well on his way to attaining that target.

Unfortunately, the DA’s optimism was short-lived because by the third quarter, when the traditional wet season came in, the Philippines found itself battered by a series of typhoons that nearly wiped out the gains in palay and crops.

By the third quarter, farm growth had decelerated to 4.28 percent for the nine-month period.

Fourth quarter growth figures are expected to be dismal.

Aside from the devastating effect of the typhoons on crop production, a weakness in the livestock sector was also becoming apparent, with the sub-sector barely managing to post a growth of 1.44 percent.

The poultry sub-sector, which contributes 13.91 percent to total farm output, posted a growth of 3.99 percent for the first nine months of this year.

Even the fisheries sub-sector, which in years past had been a growth driver of the farm sector when the crops sub-sector fell short of target, suffered a 3.84-percent decline in output for the nine-month cumulative.

Once again, climate change which resulted in a change in the swimming patterns of commercial fish, as well as an international ban on high seas fishing, resulted in a drastic drop in commercial fishing output.

The third quarter figures forced Alcala to downscale the growth forecast to just three percent to 3.5 percent.

But even that target may be in peril because of the totally unexpected damage wrought by tropical storm Sendong to Mindanao’s agricultural contribution to total farm output.

This year was also marked by a continuing debate over continued importation of pork and poultry products as local animal raisers produced sufficient quantity in the face of continued weak demand and possible competition from illegally imported pork and poultry products.

According to United Broilers and Raisers Association (UBRA) president Gregorio San Diego, Alcala “has good intentions, but is poor in delivery” when its comes to the livestock sector.

UBRA members are particularly incensed that the Bureau  of Animal Industry (BAI) continues to issue large numbers of veterinary quarantine clearances (VQCs) when there is enough local production of hogs and poultry and import figures continue to show unprecedented growth.

In response, Agriculture Undersecretary Joel Rudinas said local producers have to acknowledge that the Philippines is bound by certain international commitments under the General Agreement on Tariffs and Trade (GATT).

At the same time, Rudinas pointed out, local producers have to face competition by improving their efficiency as well as adopting new technology to improve their production.

The failure or the continued reluctance of the pork sector, in particular, to change its marketing as well as post-production processes is at the center of a dispute over DA Administrative Order 22 which outlines the rules and regulations in the handling of frozen and chilled meat products.

Local poultry and hog producers are hoping that DA-AO 22 will help put a stop to the sale of frozen imported meats in local wet markets.

On the other hand, the Meat Importers and Traders Association (MITA) believes that AO 22 is a protectionist measure intended to shield local producers from competition.

The DA, is trying its best to provide local producers with the tools to become more competitive, allocating funds for the construction of triple A slaughterhouses and cold storage facilities that will enable local producers to finally produce the products that local meat processors currently still have to import.