August 14, 2006

 

Philippine H1 farm output rises 5.14 percent

 

 

Agricultural production in the Philippines accelerated in the first half of 2006, rising 5.14 percent on year due to a bumper harvest of rice and corn.

 

The output of the farm sector--which accounts for a fifth of gross domestic production and employs four in every 10 Filipinos--expanded 1.39 percent in the first half of last year.

 

The Department of Agriculture said in June that early indicators suggest farm output will grow 4.5-5.0 percent on year in the first half of 2006.

 

Agricultural production gathered pace in the second quarter, rising 6.41 percent on year compared with 3.94 percent in the first and 2.08 percent in April-to-June 2005.

 

"The early release of funds for the rehabilitation of irrigation facilities and for other inputs such as hybrid seeds contributed to the growth," Agriculture Secretary Domingo Panganiban told reporters as he released the farm output data.

 

Panganiban said the stronger-than-expected performance of the farm sector will prompt the government to review its 2006 target for a possible upgrade. "For now, it stays at 5 percent," he said.

 

Data showed the crops subsector--which accounted for 47 percent of total farm output--rebounded in the first half with a 5.96 percent on-year growth from last year's contraction. Rice production rose 8.39 percent, corn jumped 31.99 percent, and banana increased 11.17 percent.

The fishery subsector expanded the most, gaining 8.55 percent due to growth in aquaculture.

 

Hog and dairy production pushed the livestock sector 2.87 percent higher, while lower chicken production resulted in a 1.49 percent decline in the poultry subsector.

 

Producer prices rose 5.67 percent, with the biggest gain seen in the prices of crops, which increased 11.32 percent. Livestock prices dropped 3 percent.