A Macro Picture
The Philippine agriculture remains to suffer from laggard growth rate as compared
to its Asian neighbors. The promise accelerated growth of the sector since its
deregulation in the early 80’s and its liberalization and ascension to the WTO in the
90’s failed to produce its intended results. Agricultural growth has been erratic in
the past two decades characterize with periodic upward and downward movement
since its plunge in the early part of 1980s.
Agricultural production in 1981 – 1985 plunge from a negative output growth after
experiencing high growth rate in the 1970s as the government remove its support
to agriculture as part of its Structural Adjustment Program (SAP) in exchange for its
financial loans from WB and IMF.
It was only after 1986 that agriculture was able to recover from its negative rate.
From 1986 – 1990 agriculture experience an average gross value growth of 3.2%
then plunged again to 2% and 1.9% from 1991 – 95 and 1996 – 2000 respectively.
In 2001, agriculture again picked up and gained a 3.6% gross value growth rate
from 2001 – 2005.
The year 2007 witness its biggest growth rate of 5.1%, the highest growth rate in
past 2 decades equaling the growth rate of the early 80s. However, it still fail to
reach the golden year average of the1970’s of 6.2%. Last year’s production output
has even surpassed and almost doubled the annual average growth rate for 2001 –
2005 of 3.6%. It is the highest agricultural production growth rate ever recorded in
the country in the period of liberalized agricultural environment. (See Table 1)
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between cereal crops and other agricultural crops like fruits, vegetables and cash
crops. The other main sub-groups are the livestocks and poultry sector and the
fishery sector. (See Table 2)
Agricultural crops take the lead in the growth in value of agricultural production
both in current and constant prices, with an average value of 338,310,265 million
pesos and 131,584,815 million pesos respectively. It is followed by the fishery
sector and livestock in contribution of agricultural value respectively.
Overall, the value of agriculture production for the past 3 decades have been
steadily increasing although in a slow pace with an average growth rate of 2.5%.
Such lingering growth of agriculture reflects the sad state of the country’s
agriculture despite being a known agricultural country.
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past 2 years saw it slide to its share of 14.2% and 18.2% in 2006 and 2007
respectively.(see table 3).
The situation pictures the declining trend in agricultural development for over 3
decades. Since the country’s shift from the policy of full government support to
agricultural deregulation and liberalization, agriculture suffered on the contrary
from slow growth and low productivity rather than further “competitiveness and
productivity” as can be seen from its decline in contribution to the economy.
Even the period under the Arroyo regime (2001 – 2005) with its program to
promote agribusiness investment has not produce a qualitative change in
agricultural production worst agricultural production further slide to a all time low
share of in the gross domestic production
With such eroding productivity, it is expected that its employment generation will
likewise decrease. From a high employment rate of 51.4% in the 80’s, agriculture’s
employment degenerate to 37% in 2000 and further decline by another 2% points
from 2006 – 2007. (see table 4)
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2007 33,560 92.7 35.0 65.0
Source: Department of Labor and Employment, BAS selected Agri Stat 2008
*Including fishery and forestry
Rice is the leading cereal produce of the country. Since 2000, land devoted to rice
production of the country was steady at 4 to 4.2 M hectares. Most of the rice lands
are not irrigated and continue to be rainfed. Land devoted to corn production is only
half of land dedicated for rice production averaging 2.5 M hectares. (Table 6)
Lands devoted to banana has steadily increase from 333,000 hectares in 1995 to
more than 400,000 in 2005 up to the present. Most of this land is situated in
Mindanao. Sugarcane plantations occupies more than 300,000 hectares situated
mainly in the Central Visayas.
Mango, Pineapples, Cassava, Rubber,Abaca and Tobacco are the other important
agricultural crops that are cultivated in the country. The rest are devoted to citrus
fruits, root crops and vegetables.
For the past two decades, the country’s agricultural land utilization reflects the
three main focus of agricultural namely to provide for staple food as reflected by
the large portion of land devoted to cereal production particularly rice. Second,
agricultural production of major cash crops that are for industrial and export
purposes. And last crops that are considered high value crops that are not mainly
for domestic market but are likewise promoted for export.
Table 6. Land Area Dedicated to Cereal Production (1995 – 2007) (in M ha.)
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Cereal Type 1995 2000 2005 2006 2007
Palay 3,758.69 4,038.08 4,070.42 4,159.93 4,272.89
Corn 2,692.33 2,510.34 2,441.88 2,570.67 2,648.32
Total Area 6,451.02 6,548.42 6,512.3 6,730.6 6,921.21
Source: BAS, country stat
Yet, in terms of growth rate cereal production grew faster than other crops
averaging 16% growth from 1995 -2005 while the latter grew only by an average of
11% for the same period. For the past two years, other crops suffered a negative
growth while cereal crops continue to experience growth of 7.5%.
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Production
In terms of yield per hectare, agricultural crops other than cereal command the
highest yield per hectare. Among the other agricultural crops sugarcane production
has the highest average yield per hectare of 62.1mt in 2001 – 2005. Second to
sugarcane, pineapple plantations commands the next highest yield per hectare of
36.33mt although still lower to its yield per hectare in 1995 of 39mt. Coconut
plantations although commanding the biggest share of land for cultivation has a low
productivity yield of only 4.5% in 2005. (see table 11)
Like coconut, despite having vast track of land devoted to its production, cereal
crops also suffers from low productivity increasing slowly for two decades from 2mt
per hectare in 1995 to 2.8 mt per hectare as mere .8 mt increase in 2005. (See
table 10) Among the cereal crops rice, has showed a much bigger increase in yield
per hectare of 3.7mt/ha from 2.8mt in 1995 while corns productivity lingers at 2mt.
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Table 11. Selected Other Crops Yield per Hectare
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Peninsula, Southern Mindanao for Davao Region, and average CPI of Southern Mindanao and Central Mindanao.
Source: Bureau of Agricultural Statistics (BAS)
Unit: [pesos/day]
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