May 17, 2010

After an El Nino-induced drought ravaged farms across the country, Philippine agriculture output in the first quarter contracted by 2.84% from a year earlier, according to the Department of Agriculture.

Corn and paddy rice production slid by 16.7% and 11.4% respectively on-year, causing a 6.1% contraction in the crops sub sector, which contributes around 50% of the country's entire farm output.

Farm output is expected to sustain drought-related losses in the second quarter as production of major crops is projected to continue on a downward trend.

Agriculture accounts for about a fifth of the country's GDP.

Corn production in the third quarter is also likely to fall 6.3% to 2.22 million tonnes from 2.37 million tonnes a year earlier.

In the first quarter, the fisheries sub sector, which accounts for 20% of total farm output, also sustained losses, contracting by 0.6% from a year earlier. The livestock and poultry sub sectors managed to expand, growing 0.5% and 2.0% on year, respectively.