Agriculture sector posts 0.7% growth in 3rd quarter
The country’s agricultural sector was able to maintain its growth in the third quarter at a relatively faster pace of 0.7 percent from 0.5 percent the previous quarter, again driven by the robust performances of the crops and fisheries subsectors.
However, agricultural production from January to September still fell by 0.2 percent due mainly to the poultry glut that remained unaddressed and the persistence of African swine fever among livestock farms.
While this was a far cry from the industry’s performance in the same period last year of 2.9 percent, it was still a bright spot for a country that has been saddled by the pandemic. In fact, only agriculture was able to record a positive performance last quarter when the economy plunged into a recession.
Agriculture Secretary William Dar described the latest report from the Philippine Statistics Authority (PSA) as “welcome news,” noting that the sector was able to perform well “despite the combined effects of the community lockdowns due to the COVID-19 pandemic and severe weather conditions during the months of July to September.”
“It confirms that we are on the right track particularly on our palay and corn production program initiatives in partnership with farmers’ groups, local government units and the private sector,” he added.
PSA data showed that of the four subsectors, it was the crops subsector that was able to pull together the entire industry, registering the biggest growth at 10.8 percent and 4.8 percent for both prices and production, respectively.
It was able to offset the lower prices recorded in poultry, livestock and fisheries as well as the contractions in livestock and poultry output during the period.
Crops remained the biggest contributor to the total agricultural output at 53 percent. This was led by positive growth rates from staple crops such as palay and corn, which improved by 15.2 percent and 3.5 percent, respectively. How the recent typhoons impacted the subsector would be reflected in the next quarter.
The fisheries subsector was also able to expand by 1.9 percent as well which allowed it to contribute 15.8 percent to the sector’s growth story. The gradual return of the demand for fish, which has also become an alternative source of protein for Filipinos evading the high prices of pork, incentivized fishers to improve their catch.
But the livestock and poultry subsectors did not fare as well.
Livestock production further declined by 7.6 percent from a contraction of 8.5 percent during the second quarter as ASF continues to dampen plans of hog raisers to strengthen production.
Traditionally, demand for pork is heightened come holiday season, but high retail prices have toughened Filipinos’ aversion for the meat.
As for poultry, output also decreased anew by 3.8 percent from contracting 4.7 percent the last quarter. The gradual opening of food establishments have yet to put a dent on the country’s chicken inventory which continues to be filled to the brim.
This oversupply has also discouraged raisers to increase production as well as the continuous arrival of meat imports.
Despite the impending La Niña and the adverse impact of recent typhoons, Philippine Institute for Development Studies senior researcher Roehlano Briones believes that the industry would be able to maintain its momentum until year-end, adding that the glut in poultry supply may be fixed by the last quarter.
The Samahang Industriya ng Agrikultura is not very optimistic, and has urged the Department of Agriculture to temper the arrival of imported chicken and pork that exacirbates the flight of local raisers.
With these challenges, Dar earlier revised the agency’s growth rate target this year to 1.5 percent from 2 percent, which was the optimal rate to keep up with the food needs of the country’s growing population.
To achieve its new target, the sector must grow by at least 1.7 percent in the fourth quarter, and the Department of Agriculture is looking intently at crops to be the the industry’s growth driver once again.
With holiday festivities on hold because of COVID-19, it remains to be seen how the poultry and livestock subsectors could recover. Farmgate prices of palay also began to skydive by the end of September.
All told, Dar said that the agency would continue to “provide needed support and interventions to further increase productivity and incomes” of its stakeholders.
INQ
