September 2015

Agriculture and Fisheries Sector

2

Agriculture and Fisheries Sector

Department of Agriculture

September 2015

3

Sector goals and objectives

Support the President’s Philippine Development Plan 2011-2016 to make

the agriculture and fisheries sector competitive and sustainable…

Sub-Sector Outcomes:

Productivity in agriculture and

fishery sector increased

Sector resilience to climate

change risk increased

Forward linkage to the industry

and services sectors increased

� increase productivity of key

commodities (palay, corn,

pineapple, coconut, coffee, banana,

mango, livestock and poultry, and

fisheries, among others)

� ensure enough supply of rice and

other food staples in the country

� promote value-adding of agri-

fishery products

� Pursue agribusiness development

among small-holder farmers,

including agrarian reform

beneficiaries (ARBs) and

indigenous peoples (IPs)

� Increase ability to adapt to

climate change as weather-

related shocks have become

normal occurrences

4

Historical Best in Rice and Corn:

� Recorded fastest production

growth among the world’s rice

producers for 2010-2014

� Achieved historical best of

18.97mn metric tons (MMT)

palay production and 4.0 mt/ha

yield in 2014

� Achieved historical best in corn

production with 5.1% average

growth from 2010 to 2014

4.0

3.0 2.4

1.1

(1.5)

1.4

Philippines India Vietnam China Thailand World

Average Rice Production Growth (%), 2010-2014

Source: U.S. Department of Agriculture World Markets and Trade, Aug 2015

Increased Rice and Corn Net Returns Due to Improved Yield and Prices:

Particulars 2009 2013Ave Annual Growth

Net Returns (PHP/hectare)

Palay 12,608 16,833 7.5%

Corn 4,748 7,004 10.2%

Net Profit Cost Ratio

Palay 0.33 0.40 4.9%

Corn 0.21 0.32 11.1%

Palay and Corn Net Profit Costs, 2009 and 2013

7.5%Palay

10.2%Corn

Average Annual Growth of Net Returns2009 and 2013

Source: 2009 and 2013 Costs and Returns Surveys of Rice and Corn Production, PSA

Agriculture and fishery milestones (2011 to date)

5

Boosted Farm and Research & Development Investments

Increased use of combine harvesters Established small-scale irrigation systems (SSIS)

Intensified R&D initiatives

1,806

-

1566

41

240

2011 2014

Private Public

Number of Combine Harvesters in the Philippines, 2011 and 2014

Source: Philippine Center for Postharvest Development and Mechanization

Mechanization has reduced average cost of

rice production from PHP11.07/kg to as

low as PHP7.78/kg

14,288 haservice area generated

from 2011 to 2014

Source: Bureau of Soils and Water Management

Department of Agriculture’s Budget for Research and Development (PHP bn)

1.07

3.22

2010 2011 2012 2013 2014 2015 2016 /P

Agriculture and fishery milestones (2011 to date)

6

� Philippines is the fourth largest producer

of organic agriculture products in Asia

� League of Agriculture Mayors (LOAM)

organized to lead promotion of sustainable organic agriculture

14,150 haCY 2010

83,945 haCY 2014

Intensified Organic Agriculture Development

Areas Devoted to Organic Farming

Source: DA National Organic Agriculture Program

Curbed illegal, unreported, and

unregulated (IUU) fishing

Implemented measures resulting to EU’s lifting of

yellow card on Philippine fishery exports through:

Implemented closed seasons to

regenerate marine resources

successful

closed seasons

since 20114

Enforcement of closed season wasinstrumental in the approval of Philippineaccess to the tuna-rich High Seas Pocket 1 of

the Pacific Ocean until 2017

Intensified monitoring and

enforcement initiatives

4 188 580Number of fishery law enforcers:

CY 2010 as of March 2015 by end of 2015

Institutionalized Sustainable Fishery Reforms

Passage of RA

10654,

Amended

Philippine

Fisheries Code

Improvement of

traceability and

catch

certification

schemes

Reinforced RP-Papua New

Guinea cooperation for

inspection, control and

coverage beyond Philippine

waters

Agriculture and fishery milestones (2011 to date)

7

� For the 5th year in a row since 2011, certified as Foot and

Mouth (FMD)-free without vaccination

� Recently certified as Peste des Petits Ruminants (PPR)-free

by the World Organization for Animal Health last May 2015

� Continuously maintained Bird flu-free status

Improved Consumer Welfare

Peste des petits ruminants (PPR), alsoknown as ‘goat plague’, is a viral disease ofgoats and sheep characterized by fever,sores in the mouth, diarrhea, pneumonia,and sometimes death.

Source: : OIE Technical Disease Card on PPR

Developed Philippine National Standards (PNS)

62 PNS in pipeline19Commodities with Philippine National Standards (PNS)/Good Agricultural Practices (GAP) developed from 2011-2015:

PNS developed from 2011 to date

Rice, Corn, Cassava, Coffee, Cacao, Banana, Sugar, Snap Beans, Chico, Macopa, Mungbean,

Soybeans, Peanut, Onion, Moringa, Avocado, Breadfruit, Dragon fruit, Marang, Soursop, Sugar

Apple, Sweet Cassava, Turmeric, Chayote, Guava, Lima Bean, Rambutan, Strawberry, Taro,

Winged Beans, Melon, Santol, Luffa, Sweet Tamarind

Halal Ruminants and Poultry

Mollusc, Fish Fillet, Lobster, Sea Cucumber, Cephalopods, Tuna, Convolvulus, Halal Fisheries

Products

Crops

Livestock

Fisheries

Agriculture and fishery milestones (2011 to date)

8

Improved Domestic Market Access

Agri-Pinoy Trading Centers

(APTCs) operationalized

• Nueva Ecija APTC

• Camarines Norte APTC

• Quezon Corn Processing and APTC

• Dalaguete APTC

With APTC, an average of 15% to 25% increase in income is estimated due to reduction of market layer.

8 • Pangasinan APTC

• Isabela Multi-Commodity APTC

• Nueva Vizcaya Regional Organic APTC

• Nueva Vizcaya APTC

Municipal Food Terminals37 Barangay Food Terminals 399

Food Terminals Operationalized from 2011 to 2014:

Agriculture and fishery milestones (2011 to date)

9

Invested in climate-resilient

infrastructure

3,014 kmconcreted FMRs from 2011 to 2014

Increased risk insurance coverage

PHP 85.5 bnamount of insurance coverage from

2011-2014

Developed and promoted climate-resilient varieties

Rice

promising varieties

developed through the

NextGen Project24

The NextGen Project is a DA-Philrice-IRRIcollaboration to develop rice varietiesresistant to pests/diseases and tolerant to

adverse environments

BananaProduction and dissemination of fusarium wilt-resistant banana varieties,

GCTCV 218 and GCTCV 219

Native Chicken• Paraoakan• Banaba

• Joloano• Camarines

• Boholano• Bolinao

• Labuyo• Darag

Seed Varieties Approved by the National Seed Industry Council in 2014:

Ecosystem Variety Local Name

Irrigated Lowland

Inbred Tubigan 27, 28, 29, 30, and 31

Hybrid Mestiso 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, and 65

Upland Katihan 2, 3, and 4

Saline Salinas 19 and 20

Agriculture and fishery milestones (2011 to date)

10

Legislative agenda for the 16th congress

� All irrigated and irrigable lands planted but not limited to rice, crop, sugar, coconut and other crops blocked and mapped according to standards by the Bureau of Soils and Water Management will be declared National Protected Areas for agriculture and may not be converted to other purposes to support long-term food security and sustainable environment for agriculture

� Bills proposed: HB 4382; SB 7,63, and 150

National Land Use Act

Liberalizing the Export of Rice, Corn and other Grains and Related

Agricultural Products

ACEF and AFMA Extension

� Removes the required certification from the NFA Council declaring an excess production and/or supply before an authority to export is issued; NFA to retain its authority to export

� Bills pending at the Committees on Government Enterprises, Food and Agriculture, and Food Security for House of Representatives; Committees of Government Corporations and Pubic Enterprises, Urban Planning Housing and Resettlement, and Finance for Senate

� Extends the utilization period of the Agricultural Competitiveness Enhancement Fund (ACEF) and extend appropriations for the Agriculture and Fisheries Modernization Act (AFMA)

� Substitute house bill approved at the committee level; Senate bill pending at the Committee on Agriculture and Food, and Finance

Philippine Halal Act

� Creates the Philippine Halal Accreditation and Regulatory Board and aims to comply with the international products of good manufacturing and hygienic practices

� House bill pending with the Committee of Agriculture and Food; Senate bills 1885, 1330, and 312 pending with the Committee of Agriculture and Food

Strengthening the Philippine Crop Insurance

Corporation

� Aims to strengthen the Philippine Crop Insurance Corporation, amending PD 1467: the PCIC Charter

� First reading on House bill; submitted Senate bill for concurrence

Proposed Bills to Strengthen Agriculture and Fisheries

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Institutionalized registry systems as basis for improved beneficiary identification

The Registry System for Basic Sectors in Agriculture(RSBSA) is a nationwide database of baselineinformation of farmers, farm laborers and fishers fromidentified provinces, as well as geographical coordinatesof agricultural and fishery workers households.

RSBSA

� Farmers and fishers identified in the RSBSA are the

primary beneficiaries of credit assistance through

Agriculture and Fisheries Financing Program (AFFP)

� Subsistence farmers listed in the registry was also

provided free insurance coverage by the PCIC

� Data is also being used in identifying beneficiaries of

DA major programs and as basis for developing

programs and policies for the sector

Launched in May 2013, FishR is DA-BFAR’s Municipal FisherfolkRegistration which aims to develop and promote a simplified andstandardized national registration system for municipal fisherfolk asrequired under Section 19 of the RA 8550 or the Philippine FisheriesCode of 1998. Registration covers the following:

FishR

Municipal fisher folkregistered

(as of 11 September 2015)

1.57mn

BoatR, or National Program for Municipal Fishing Vessels and GearsRegistration is a follow-through of FishR. Launched in November 2015, itis designed to complete a national database or registry of municipalfishing vessels (three gross tons and below) and municipal fishing gears.

BoatR

22,516Registered fishing boats

(as of 11 September 2015)

� BoatR system fully operational

� Launched mobile app in partnership

with SMART to speed up and ensure

the accuracy of its registration

� all municipal fisherfolk and fishworkers;� persons who are directly or indirectly engaged

in municipal fishing and other related fishingactivities;

� members of the crew of a fishing vessel usedfor commercial fishing except the duly licensedand/or authorized patrons, marine engineers,radio operators and cooks; and

� fishery operators

3,378farmers and fishers listed

in RSBSA provided credit

PHP 55 mnamount of loans

released

AFPP Highlights as of 2014:

DA reform measures

12

DA reform measuresPRDP as Platform for Reform

Project Components

Philippine Rural Development Project (PRDP) is a six-year project designed to establish the government platform for a modern, climate-smart and market-oriented agri-fishery sector

� I-PLAN (Investments in AFMP Planning at the

Local and National Levels): aims to enhance

sector planning through science-based tools

� I-BUILD (Intensified Building up of

Infrastructure and Logistics for Development):

aims to put in place strategic and climate-

resilient rural infrastructure facilities along the

value chain

� I-REAP (Investments in Rural Enterprises and

Agriculture and Fisheries Productivity): aims to

create marketable surplus of commodities and

elevate agricultural production into the next

levels of the value chain by installing production

and market support facilities; establish

enterprises and up-scaling product at the

appropriate commodity value-chain segment

� I-SUPPORT (Implementation Support to PRDP):

aims to maintain effective and efficient program

management and institutionalize DA

engagement with stakeholders

Innovations Introduced by PRDP

Expanded Vulnerability and Suitability Assessment (e-VSA)

Geomapping

Geotagging

A tool that takes account of both agro-climatic data and

socio-economic indicators (such as poverty magnitude,

poverty incidence, number of farmers and fishers, size of

production, area, etc.) as basis in targeting interventions

and formulating strategies for investments

A spatial mapping technique used to represent geographical data (i.e. agricultural

patterns, crop production, land suitability) into an online interactive visual map that

aids in targeting and prioritizing development interventions. In PRDP, the tool is

essential for Value Chain Analysis (VCA) to determine whether priority agricultural

commodities are within the value chain that is viable for investment

Geotagging, which was initiated under theDA-Mindanao Rural Development Program(MRDP), is recognized as the first in thePhilippines and one of the pioneers in theregion. At present, DA is implementingcompulsory geotagging of its majorprograms and projects

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Risks and challenges in the sector

A Strong El NiñoDrought and Dry Spell Outlook:

� A mature El Niño is now present in the tropical Pacific Ocean

� It is likely to strengthen further before the end of 2015, and last until

March-April-May 2016 season

� By end of February 2016, it is estimated that 80% of the country will likely

experience drought (65 provinces)

� It is likely to be among four of the strongest El Niños on record since 1950

DA Program Strategies for El Niño:

Interventions undertaken as of September 2015:

Maximize/optimize

production in non-

threatened areas

Save vulnerable areas through

appropriate irrigation

intervention or crop shifting

using short gestation crops

Rehabilitate

vulnerable areas that

cannot be saved

Massive

information

dissemination

across locations

• Cloud seeding• Alternate Wetting and Drying • Provision of open source

pumps• Installation of solar and wind

pump irrigation system for high value crops

• Quick repair and rehabilitation of diversion dams

• Distribution of multi-stress varieties of rice and corn

• Provision of soil ameliorants

• Procurement and distribution of mungbean, peanut, soybean, cucurbits and sweet potato as alternative crops

• Feeds buffer stocking• Planting of drought-resistant

forage• Recommendation of fallow

period and practice of synchronous planting

• Intensification of pest surveillance and monitoring

• Distribution of veterinary drugs and biologics

• Promotion of tunnel ventilation and other cooling facilities for poultry and swine

• Monitoring of water quality & fish stocks in brackish water and freshwater areas (fish ponds, fish cages and fish pens)

• Dispersal of fingerlings for rehabilitation

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End of term targets

Sector/Subsector 2015 2016

AF GVA increased (%) 3.3-4.3 3.5-4.5

Crops 3.8-4.8 4.0-5.0

Livestock 1.5-3.0 1.6-3.5

Poultry 4.2-5.2 4.2-5.2

Fisheries 2.3-3.0 2.8-3.5

GVA Growth Targets, 2015-2016

Increase Agriculture and Fisheries Gross Value Added

PHP 793.8 mn

Target Gross Value Added in Agriculture and Fisheries by 2016:

Increase Agricultural Exports Increase labor productivity

9.5% to 10.5%Annual increase in value of

agricultural exports up to 2016

Sector/Subsector 2015 2016

Value of exports increased 6,570-6,752 7,194-7,460

Agricultural Export Targets (USD mn), 2015-2016 2.0% to 5.0%Annual increase in value of

labor productivity up to 2016

At least

15

Key strategies

Rice Corn and Cassava

� Promote high yielding and climate resilient varieties

� Maintain seed buffer stock for disaster preparedness

� Increase irrigated area thru small scale irrigation

systems

� Intensify extension services and expand information

and communications technology-based advisory

system

� Invest on strategic rice R&D

� Promote production/postharvest facility and

machineries

� Provide machineries/equipment and

establish more post-harvest facilities in

strategic areas

� Maintain white corn buffer stock for disaster

preparedness

� Capacitate farmers and agriculture extension

workers in corn and cassava production

� Conduct R&D on integrated soil management

and cost-reducing technologies

High Value Crops Livestock and Poultry

� Promote value-adding and product development of

high value crops

� Pursue area expansion/rehabilitation of priority

commodities through provision of quality planting

materials and production facilities

� Increase production of various vegetables to reduce

importation

� Invest on research, development, and extension

� Maintain disease-free status (i.e. foot and

mouth disease, goat swine, bird flu)

� Strengthen regulatory facilities and capacities

to protect the borders from entry of

communicable diseases

� Fully implement Food Safety Act of 2013 for

export readiness

� Improve production and productivity through

genetic improvement and nutrition

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Key strategies

Fisheries Organic Agriculture

� Provide livelihood to targeted poor fisher folk

� Train and deploy fishery law enforcers

� Intensify fishery-based value-adding enterprises (i.e.

seaweed, aquasilvi, shellfish)

� Construct municipal fish landings to reduce

postharvest losses

� Distribute quality broodstock and fingerlings

� Increase production of organic agricultural

products

� Increase number of organic practitioners

� Expand market niche/reach of organic products,

both local and international

� Increase number of certified organic

farms/establishments

Sugarcane

� Improve farm productivity and efficiency through block farming, infrastructure support, farm mechanization,

socialized credit

� Establish farm-to-mill roads in priority areas

� Implement an integrated human resource development program for dependents, farmers and workers of the

industry

� Conduct research and development to improve industry competitiveness

September 2015

Agriculture and Fisheries Sector