AGRICULTURE

What is Agriculture?

* the science or practice of farming, including cultivation of

the soil for the growing of crops and the rearing of animals to

provide food, wool, and in varying degrees the preparation

and marketing of the resulting products.

Significance of

Agriculture Source of livelihood

Contribution to national income

Supply of food and fodder

Importance in international trade

Source of raw material

Vast employment opportunities

Source of government income

Basis of economic development

Agriculture occupies an

important place in the

development of an

economy. It is in fact, a

pre-condition for

economic up-liftment.

Issues and Problems in Agriculture

Natural Resources Degradation

- The continuing degradation of

forests also contributes to low yields

and the low rate of land utilization. Results in an inadequate

water supply during the

dry season and exacerbates

damage to crops, fisheries,

and rural infrastructures as

a result of typhoons and

increasing flooding during

wet season.

Low Productivity

-land productivity in the

Philippines is lower than in other

countries in the Southeast Asia

region.

Is a result of many factors such

as:

-small farm size

-underutilization of land due to

water supply issues resulting from

watershed degradation

-low efficiency of existing

irrigation systems

-deficit of rural infrastructures

-post-harvest facilities

-high cost of farm inputs

-weak linkages between

smallholders or producers and

enterprises

Limited Connectivity

- Lack of quality rural transport,

particularly farm-to-market roads,

discourages farmers from increasing

production.

- Adaption by farmers, particularly

smallholders, of new and value-

adding technologies has been slow

due to the lack of access to

information on production

technologies.

As a consequence,

farmers knowledge of

diversified farming

technologies is limited,

and market linkages

remain weak.

Weak Resilience

- Highly vulnerable to climate change-related risks

(flood, typhoons, and droughts) which can cause

severe erosion, given certain soil, vegetation, and

slope conditions.

Can pose danger to the stability and

sustainability of downstream investments and

economic activities.

Longer dry seasons put an additional burden on

water supplies for irrigation and seriously impair

agricultural productivity.

Inadequate support services

- Insufficient provision of key support

services affects productivity.

- Lack of transparency, cumbersome

procedures, and inconsistent application

of regulatory functions under the

authority of the Department of

Agriculture inhibit private sector

participation and the development of

linkages between smallholders or

producers and traders or processors.

Services include:

-construction and operation

and maintenance of farm-

to-market roads

-small-scale irrigation

systems

-other rural infrastructure

(remains incomplete due to

the technical and financial

constraints facing LGUs

and incompatible priorities

between them and national

agencies.)

Policy, Governance, and Capacity Issues

-institutional fragmentation weakens

planning and service delivery.

-unclear and overlapping functions of

key government agencies, insufficient

planning and results monitoring

systems impact on the effectiveness

and accountability of service delivery.

Three primary departments

involved in the sector:

- DOA

- DAR

- DENR

In addition, weak governance

and changing local-level

priorities, due to likely changes

in governing officials every 3

years, add to the risk.

Philippine Agriculture Situation

Philippine Agriculture

The Philippines is still primarily an agricultural country

despite the plan to make it industrialized economy by

2000.

Countrys main agricultural crops are rice, corn, coconut,

sugarcane, bananas, pineapple, coffee, mangoes, tobacco,

and abaca.

Secondary crops include peanut, cassava, camote, garlic,

onion, cabbage, eggplant, calamansi, rubber and cotton.

Performance of Agriculture

-1

0

1

2

3

4

5

6

7

8

9

Farmgate Prices

Fisheries

Poultry

Livestock

Crops

Agriculture

1.12.

0.002

1.76

4.29

1.24

2.5

1.83

3.25

1.02

0.27 -0.15

7.74

2013 2014

Agriculture expanded by 1.83% in 2014. The sectors growth was contributed by the production increments in the crops, livestock and poultry subsectors. Gross earnings amounted to P1.6 trillion at current prices or 9.71% higher than last years earnings.

0

0.5

1

1.5

2

2013 2014

Agriculture

Agriculture

1.12

1.83

Crops subsector which shared 51.71% in total agricultural production grew by 3.25% during the year. Production of palay went up by 2.87% and that of corn, by 5.33%. Notable gains were recorded for sugarcane, mango, tobacco, cassava & onion. The subsectors gross value of output amounted to P933.7 million. This was 14.52% more than the 2013 level.

0

0.5

1

1.5

2

2.5

3

3.5

2013 2014

Crops

Crops0.002

3.25

Livestock and Poultry

0

1

2

3

4

5

Poultry

Livestock

Livestock production increased by 1.02%. It contributed 16.10% to total agricultural output. All components of subsector registered output gains in 2014. The subsectors gross value of production amounted to P247.1 billion, at current prices. This indicated a 5.60% improvement from 2013 earnings. The poultry subsector inched up by 0.27 percent. Shared 14.54% in the total agricultural production. The sources of growth chicken, duck and duck egg. At current prices, the subsector grossed P189.7 billion which was 7.84% higher than previous years level.

1.76

4.29

2013 2014

1.02

0.27

Fisheries production declined by 0.15% in 2014. The subsector accounted for 17.65% of total agricultural output. The subsectors gross earnings mounted to P242.0 billion or 1.03% lower than 2013 record.

-0.5

0

0.5

1

1.5

2013 2014

Fisheries

Fisheries

1.24

-0.15

Farmgate prices went up by 7.74% from 2013 quotations. Significant price increases were recorded in the crops subsector at 10.92%. The poultry subsector followed with an average price gain of 7.55%. In the livestock subsector, prices were quoted 4.54% more this year.

0

2

4

6

8

10

2013 2014

Farmgate Prices

Farmgate Prices2.5

7.74

Philippine Agricultural Products for Export and Import

In International Trade,

"exports" refers to selling

goods and services

produced in the home

country to other markets.

An import is a good

brought into a jurisdiction,

especially across a national

border, from an external

source.

Major Exports of the Philippines

1. Food and Live Animals chiefly for Food

The country's major agricultural crops are rice, corn,

coconut, sugarcane, banana, cassava, pineapple, and

vegetables

The major livestock products are hog, cattle, carabao,

goat, and dairy products. Chicken and ducks are the

leading poultry products.

Tuna and shrimps

2. Tobacco and tobacco

manufactures

3. Crude Materials

4. Animal and Vegetable Oils

5. Manufactures fertilizers

6. Agricultural Machinery

Top Philippine Agricultural Exports Ranking

Based on FOB Value, 2004-2010

Major Imports to the Philippines

1. Wheat 2. Soybean Oil

3. Milk and cream products