January 3, 2006

 

Philippine farm output rises 2.0-2.5 percent in 2005
 

 

Philippine farm output last year rose between 2 and 2.5 percent on-year, slower than the 3 percent target on account of weaker crop production, particularly rice and corn, Agriculture Secretary Domingo Panganiban said Tuesday.

 

For 2006, the government aims to increase rice and corn production to meet its goal of increasing agricultural output by 4 to 5 percent on-year, Panganiban told a news briefing.

 

"We have to do better in 2006, hopefully double what we achieved in 2005," Panganiban said.

 

Agriculture accounts for a fifth of gross domestic product but employs four in every 10 Filipinos. Official growth data for the sector are due later this month.

 

With agriculture missing the growth target for 2005, services and industry - the other components of GDP - should have expanded a little stronger than expected for the Philippine economy to meet the government's downgraded target growth of between 4.8 and 5.1 percent. Full-year growth data are due later this month.

 

Panganiban said crop output, which accounts for nearly half of the farm sector, was adversely affected by the dry spell in the first half of 2005.

 

The decline in rice, corn and sugar cane production was partly tempered by the increase in coconut, mango and coffee output, he said.

 

Corn output would also be boosted to ease the country's dependence on rice, he added.

 

Panganiban said the government is also trying to coordinate with Congress to correct the timing of the release of funds for agricultural support to boost the sector's output.

 

"It is not only the inadequacy of funds but also the erroneous timing of disbursements of such funds that has weakened the sector's output," he said.

 

The timely release of funds would keep rural areas - home to about 70 percent of the Philippines' population - booming all year round, he added.