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Agricultural output shrinks in Q1

Agricultural output shrinks in Q1

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A vendor arranges eggs on the Paco public market in Manila. — PHILIPPINE STAR/ RUSSELL PALMA

By Luisa Maria Jacinta C. Jocson, Reporter

THE COUNTRY’S total agricultural output shrank by an annual 0.3% by worth within the first quarter, as a consequence of a decline in fisheries, livestock and crop manufacturing, authorities information confirmed.

In a report launched on Wednesday, the Philippine Statistics Authority (PSA) mentioned the worth of agricultural manufacturing at fixed 2018 costs dipped by 0.3%, a slight enchancment from the three.4% contraction seen within the first quarter of 2021.

“Poultry registered enlargement throughout the interval whereas crops, livestock, and fisheries posted declines within the worth of manufacturing,” the PSA mentioned.

Performance of Philippine agriculture

Quarter on quarter, farm output worsened from the 0.5% progress seen within the final three months of 2021.

At present costs, the worth of agricultural manufacturing went up by 2.1% to P498.61 billion within the January to March interval.

The PSA is scheduled to launch first-quarter gross home product (GDP) information on Thursday morning. Agriculture normally contributes round a tenth to GDP.

Agriculture Secretary William D. Dar mentioned first-quarter agricultural manufacturing was affected by the spike in oil and fertilizer costs that started in late February after Russia’s invasion of Ukraine.

“We are going to research the extent to which current developments within the world meals provide chain, which is severely rocked by the Ukraine-Russia conflict, have had impression on our native agriculture sector within the first quarter… Crops had been affected by skyrocketing gas and fertilizer costs,” Mr. Dar mentioned in a digital webinar.

Crop manufacturing, which made up 58% of the whole farm output, slipped by 1.6% within the first quarter as palay (unmilled rice) and corn manufacturing dropped by 1.9% and 0.2%, respectively.

Double-digit enlargement was seen within the manufacturing of abaca (14.1%) and potato (11.7%). However, tobacco and sugarcane output slumped by 24.1% and 10.1%, respectively.

Federation of Free Farmers Nationwide Supervisor Raul Q. Montemayor mentioned that the drop in palay manufacturing could also be as a result of preliminary effects of upper fertilizer costs and different manufacturing prices.

“Farmers needed to reduce down on enter utilization which led to decrease yield,” he mentioned.

Roehlano M. Briones, a senior analysis fellow on the Philippine Institute for Growth Research, mentioned poor climate additionally affected palay and corn output. He additionally famous that there was “not sufficient progress” in different crops.

At present costs, the worth of crop manufacturing went down by 0.9% to P268.13 billion from the earlier 12 months’s document.

In the meantime, livestock manufacturing, which accounted for 14.1% of the whole, dropped by 1% within the January to March interval amid the extended outbreak of African Swine Fever (ASF).

There have been nonetheless declines in manufacturing for hog (-1.2), goat (-7.5%), and cattle (-1.6%).

“The hog [industry] continues to be affected by ASF and unwillingness of some growers to rebuild their stock,” Mr. Briones mentioned in a Viber message.

Nonetheless, Mr. Dar pointed to the slower contraction in hog output as a superb indication that the repopulation program is working.

As of March 2022, ASF was nonetheless lively in 5 areas, 9 provinces, seven municipalities, and 12 barangays. The business has misplaced three million hogs to the illness or to precautionary culls between 2019 and 2021, the PSA mentioned.

However, dairy and carabao manufacturing rose by 22.2% and 6.5%, respectively.

“All issues thought-about, the livestock subsector is rebounding from its detrimental progress final 12 months,” Mr. Dar mentioned.

At present costs, the livestock manufacturing worth amounted to P89.89 billion, or 9.7% increased than the earlier 12 months’s document.

Fisheries output, which has a 12.9% share of complete agricultural manufacturing, contracted by 5.8% within the first quarter.

“Except for having a median of 20 typhoons a 12 months, storms at the moment are stronger in comparison with again then and flooding is vaster and extra intense,” Rene Cerilla, Authorized and Coverage Advocacy Officer of Pambansang Kilusan ng Samahan ng Magsasaka, mentioned in Filipino by way of Viber message.

Double-digit declines had been seen in mudcrab or alimango (-24.8%), skipjack or gulyasan (-20.2%), fimbriated sardines or tunsoy (-13.5%), milkfish or bangus (-12.7%), tiger prawn or sugpo (-11.3%) and slipmouth or sapsap (-10.0%).

However, increased manufacturing was seen for threadfin bream or bisugo (34.1%), squid or pusit (12.7%), and bigeye tuna (10.9%).

The worth of fisheries manufacturing at present costs dropped by 2.2% to P65.42 billion.

BRIGHT SPOT
Poultry manufacturing was the lone shiny spot because it registered a 12.3% enhance within the first quarter, because of increased manufacturing for rooster (13%), rooster eggs (12.4%), and duck eggs (11.8%). Duck manufacturing, nevertheless, slumped by 21.5%.

Poultry accounted for 15% of complete manufacturing within the three-month interval.

“Solely poultry registered optimistic progress, caused primarily by elevated quantity of manufacturing of rooster, which in flip might have been induced by excessive costs and low provide of pork,” Mr. Montemayor mentioned in a Viber message.

Samahang Industriya ng Agrikultura (SINAG) Govt Director Jayson H. Cainglet mentioned that the enlargement in poultry is “artificial,” given the excessive value of manufacturing and little authorities assist.

At present costs, the worth of poultry manufacturing went up 8.8% to P75.17 billion.

Shifting ahead, analysts mentioned the Division of Agriculture (DA) should reevaluate its import insurance policies if it needs to essentially enhance native manufacturing.

“I believe the federal government should undo its import coverage as a result of this has discouraged many farmers from investing and intensifying their manufacturing out of concern that costs will fall down when they’re harvesting,” Mr. Montemayor mentioned.

Regardless of the upper finances for the DA, Mr. Montemayor famous that the agriculture sector has been on a decline since 2019.

Mr. Cainglet mentioned that native manufacturing would proceed to slip if the DA would proceed its coverage of unhampered agricultural imports throughout commodities, discount of agricultural tariffs and lukewarm response to unabated smuggling.

“We hope that the subsequent administration will reverse all these anti-local agriculture insurance policies and applications,” he added.

Mr. Briones mentioned that the subsequent administration should give attention to applications making certain crop diversification and biosecurity for the animal business.

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