August 16, 2010

El Nino hampers Philippine agriculture growth

The agriculture sector had a difficult first six months this year, its growth slowed by 2.59% because of the El Nino-induced dry spell.

Despite the sector's slowdown, farmers and fishers were better off due to higher prices from their products during the first six months, with farm gate prices registering an average increase of 4.45% from what they were paid for their output in the same period last year, the Agriculture Department said.

The total value of agriculture production was PHP607.8 billion at current prices, or 1.75% higher than last year's output. The crops subsector accounted for PHP312.7 billion, fisheries PHP112.3 billion, livestock PHP104.9 billion, and poultry PHP77.9 billion.

Crops, which contribute roughly half or 45% of total agriculture output, suffered the most from the dry spell as it dipped by 6.72%. Corn harvest dipped 24.95% to 2.42 million tonnes from 3.22 million tonnes.

The fisheries subsector-comprising 28% of total agriculture production-contracted by 0.11%.

The minimal growth the agriculture sector is consistent with a study by the University of Asia and the Pacific's Center for Food and Agribusiness (UA&P-CFA), which showed that the country's farm output this year might grow at a very slow pace.

The study considered poultry, crops, livestock, and aquaculture as major contributors to the sector's minimal growth for the year.

UA&P-CFA executive director Rolando Dy said that after the El Nino-La Niña tandem in 2010, agriculture production could be better in 2011. Farm production is projected to post as much as 3% to 4% growth in 2011.

On a brighter note, the livestock and poultry subsectors served as the agriculture's saving grace, posting positive growth at 2.11% and 2.46%, respectively, the department said. The livestock industry contributes 27% to total agriculture production.