Q2 agriculture output beats forecast

MANILA, Philippines - The country’s agriculture sector grew 6.18 percent in the second quarter, surpassing the government’s growth targets on increased crops and poultry output.

The increase is significantly higher than the Department of Agriculture’s  growth forecast of five percent.

Agricultural production fell 2.21 percent in the second quarter of 2016  due to the poor output of the crops and fisheries sub-sectors as a result of the prolonged dry spell and typhoon damages.

Based on the latest report by the Philippine Statistics Authority (PSA), the local farm sector expanded 5.71 percent in the first semester.

Despite a positive start, economist Pablito Villegas said the farm sector could slow down in the third quarter depending on climatic conditions and the typhoons that may hit the country during the period.

“We also have to look at the impact of the bird flu on the poultry industry, it is also the lean month for the rice, plus the effect of the conflict in Mindanao. It really depends on the how well the government will be able to support the sector in terms of better marketing,” Villegas told The STAR.

The agricultural sector grossed P422.4 billion in the second quarter, up 11 percent, bringing the total value to P830 billion as of the end of June this year or an increase of 10 percent from P754 billion.

Crops, which accounted for bulk of total agricultural production, went up 12 percent with palay (unhusked rice) and corn harvest increasing 12 percent and 46 percent, respectively.

Palay production rose to 4.15 million metric tons (MT) while corn production increased to 1.33 million MT.

According to PSA, the increase in harvest areas of palay was due to the sufficient supply of irrigation water and nationwide distribution of hybrid and inbred certified seeds and fertilizers.

There was also expansion in harvest areas and higher yield record owing to favorable weather conditions that prevailed during the crop’s growing stage.

Production gains were also noted among the other crops except coffee, mango, tobacco and abaca.

At current prices, the crop sub-sector grossed P231.6 billion, up 14 percent year on year.

Livestock production, which comprised 16 percent of the aggregate output, decreased 1.38 percent as all components posted losses except for the dairy industry. Gross earnings went up 12 percent to P72 billion.

PSA said the decrease was due to the drop in the number of animals slaughtered, as well as reports of animal deaths and low culling of unproductive animals.

Poultry production increased eight percent, representing 16 percent of the total agricultural output. The increasing number of dressed chicken broilers in most regions contributed to the growth of this sub-sector.

The increase was also attributed to the opening and rehabilitation of some broiler and layer farms particularly in the Cordilleras, Cagayan Valley and Central Luzon.

The fisheries sub-sector, which accounted for 17 percent of total farm output, declined by almost three percent to P64 billion,due to reduced volume of fish unloading in some ports brought about by the frequent rains which hampered operations in several fishing grounds.

Meanwhile, average farm-gate prices went up five percent in the second quarter price gains recorded in all sub-sectors.