Agri sector posts 1.81% growth

MANILA, Philippines - Agricultural output grew faster, both in terms of production volume and production value, during the first half of the year as farmers continue to enjoy high farmgate prices, the Department of Agriculture (DA) announced yesterday.

Farm output grew 1.81 percent in the first half of 2014 against 1.51 percent in the comparative period last year.

In terms of value, the farm sector grossed P776.5 billion at current prices, up 11.26 percent from the P697.9-billion gross earnings in the same period last year.

Production in the crops subsector, which has a 52.72 percent contribution to the total agricultural production, rose 3.68 percent during the period compared to a negative 0.47 growth in the same period last year.

Palay (unhusked rice) production rose 4.78 percent, while corn production rose 4.70 percent. Production increases in sugarcane, banana, pineapple, mango and tobacco were also seen.

Rice farmers in Central Luzon and the  Ilocos region were encouraged to produce during the period on favorable farmgate prices and the availability of irrigation.

At current prices, the crops subsector grossed P443.9 billion, up 18.31 percent from last year. Earnings from palay rose 30.50 percent in the first half as a result of improvements in production and prices. Earnings from corn, coffee, mongo, abaca, calamansi, garlic, onion, and banana also rose during the period because of uptrends in production and price increases.

Production in the livestock sector grew slower at 0.94 percent compared to the 2.12 percent growth in the first half of last year. Cattle, hog and dairy production, continued to increase albeit slower compared to the same period last year, while lower goat production brought down overall growth.

Gross earnings in the livestock subsector, however, rose 6.33 percent to P118.9 billion at current prices on increased revenues from carabao, cattle and hog raising.

The poultry subsector registered a slower production growth rate of 0.73 percent in the first half of the year against 4.56 percent in the same period last year on increased production of chicken and duck.

Chicken egg production, however, fell 4.18 percent during the reference period as layers were affected by extremely hot weather conditions. In the Visayas, the layer inventories in farms damage by Typhoon Yolanda in November last year were still being built up.

Gross value output of the poultry subsector, however, rose 5.91 percent to P97.7 billion at current prices on increases in earnings from chicken, duck, and duck egg production.

Production in the fisheries subsector contracted 1.90 percent during the reference period compared to a growth of 4.47 percent in the same period last year on reduced production of milkfish, among others. Several pen operators in Samar stopped operations because of insufficient funds, while operators in Davao stopped production because of heavy siltation. Intense heat also resulted to smaller milkfish harvest in Zamboanga Sibugay.

Tiger prawn production also fell during the period on high mortality rate caused by extreme heat and increased water salinity in aquaculture areas in Bulacan and Pampanga.

Production downtrends were also seen in yellowfin tuna, roundscad, and seaweed. Increased production, however, was seen in skipjack and tilapia.

At current prices, the fisheries subsector grossed P122 billion, down 1.84 percent from earnings in the same period last year on reduced earnings from milkfish, yellowfin tuna, and roundscad.

Farmgate prices rose on the average of 9.28 percent in the first semester of the year. Prices in the crops subsector rose 14.11 percent. Prices in the livestock and poultry subsectors rose 5.34 percent and 5.15 percent, respectively. Prices in the fisheries subsector rose 0.06 percent in the reference period.

Agriculture Secretary Proceso Alcala said this semester’s performance shows that the farm sector  “is on the right track towards sustained recovery after the devastation caused by natural calamities.”

 “We in the DA family will not allow weather and global market challenges, or manmade adversity like intrigues, affect our work,” said Alcala yesterday.

During the DA’s budget presentation before the House Committee on appropriations on Wednesday, Alcala said the DA’s proposed P51.7-billion budget for 2015 would be spent to sustain gains in staple food production.

He said next year’s financial programming would focus on providing postharvest facilities and machineries such as rice threshers, combine harvesters and transplanters to help lower losses and production costs.