December 9, 2009

 

Philippine agriculture to increase by 3 to 4 percent in 2010

The Philippine's farm sector is set to recover by 2010 and could post a 3 to 4 percent growth on higher crops and fisheries production, as well as increased consumer demand for farm products due to the presidential elections.

 

The Center for Food and Agri Business (CFA) of the University of Asia and the Pacific (UA&P) said that palay (rice grains) production will also recover and increase by 4.5 percent to 5.5 percent next year.

 

The CFA said "2010 is expected to be a better year for Philippine agriculture than 2009. The overall forecast of CFA-UA&P is at 3 percent to 4 percent, from this year's 0 to 1 percent. The top performers will be palay, corn, coconut, banana, poultry, and fishery."

 

UA&P agribusiness specialists, led by CFA's executive director Rolando Dy, said that notwithstanding the adverse effects of freak weather phenomenon including typhoons Ondoy and Pepeng, palay production could breach the 17-million tonne (MT) mark next year.

 

The recovery of the palay sector will be bolstered by the government's allocation of funds for the construction of small water-impounding systems to mitigate the effects of El Niño and the extension of the subsidy for hybrid rice until March 2010.

 

The report also read that "commercial production of a flood-tolerant rice variety developed by the International Rice Research Institute and the Philippine Rice Research Institute will also enhance supply availability."

 

Corn-production growth is seen at 4 percent to 5 percent in 2010. UA&P also projects that the targeted 3 MT production for sugar cane is attainable.

 

Palay and corn are two of the major crops grown in the Philippines. The crops subsector accounts for almost half of farm output annually.

 

Fisheries production for 2010, meanwhile, is seen to increase by 3.5 percent to 4.5 percent, but slower than the projected 4.5 percent to 5.5 percent in 2009 as weather disturbances will likely affect production of commercial and municipal fishing, said UA&P.

 

Other factors that will improve farm production next year, said the UA&P, is the presidential elections in May 2010 which is seen to substantially increase election spending, especially in the first quarter of 2010, and provide more purchasing power for agri-food products like poultry, pork, fish products and vegetables.

 

Farm growth for next year, however, could be threatened by the mild El Nino phenomenon and the reduction of import tariff on most agricultural commodities to between 0 percent to 5 percent under the Asean Free Trade Area (Afta), said UA&P.