June 21, 2010

 

Philippine agriculture sector to grow 2.5% this year

 
 

The Philippine agricultural output will likely grow by 2.5% this year, excluding a repeat of last year's severe storms, a cabinet official claimed on Friday (June 18).

 

''The limited impact of a first half dry spell also adds to the upbeat production outlook, which contrasts with downbeat forecasts, particularly for rice and corn,'' announced Agriculture Secretary Bernie G. Fondevilla last month.

 

Both weather phenomena have been responsible for contraction in farm output for the last two quarters: tropical storms such as Ondoy led to a 2.43% drop for October-December 2009 whereas the dry spell was blamed for a 2.84% decline in Q1 2010.

 

"The farm output depends on many factors. Barring another Ondoy before the end of the year, [the sector] may post around 2.5% increase for the entire year," Fondevilla said at a presentation of the department's accomplishments.

 

Crop damage due to El Niño-caused dry spell has been limited to PHP11 billion (US$241 million), he added, and is not expected to increase further since the rainy season has already started.

 

"Crop damage due to El Niño has reached about PHP11 billion (US$241 million), with about PHP5 billion (US$110 million) from damage to corn. Other crops have recorded only marginal losses," Fondevilla added.

 

Corn output, meanwhile, fell by 16.76% to 1.6 million tonnes in January to March. For Q2, the department said production would fall by 36.8%, moderating to -6.3% in the following quarter.

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