Rice, corn harvests drive 5.5% agri growth in Philippines

Record palay and corn harvests fueled the growth of Philippine agriculture by 5.48 percent in the first half of the year, reversing the sector’s negative performance in the same period last year, the Department of Agriculture (DA) said on Tuesday.

The agriculture sector’s recovery was good news considering its dismal performance in the first half of 2010, which saw crops, livestock and fishery production contract 2.9 percent.

“Agriculture grew by 5.48 percent in the first six months of 2011. The crop subsector was the major growth driver during the period. Gains in livestock and poultry output also contributed to the improved performance of the sector” although fishery yields fell, the DA said in its first semester report.

The DA said the total value of the country’s agricultural production in the first semester reached P706.4 billion at current prices, about 16% more than last year’s level, the DA said.

Filipino farmers have also seen better prices for their goods this year, the DA said. It noted that average farm gate prices for all produce were roughly 10 percent more than in the same six-month period last year.

The crops subsector—which amounts to half of the total agricultural output and includes the country’s main staples—was the major player this year, growing by 11.1 percent.

The sector was buoyed by record high palay and corn harvests in the first semester, which was at 7.58 million metric tons (MT) and 3.31 million MT, respectively.

The figure bested the highest first semester rice yield recorded in 2009, at 7.37 million MT. The past highest corn yield was 3.29 million MT in the first semester of 2008.

Aside from palay and corn, the country’s main staples, gainers included sugarcane, banana, tobacco, and onions. All these crops saw increases in yield and values, the DA said.

Agriculture Secretary Proceso Alcala said the strong palay and corn performance was due to improved irrigation and a wet summer season that fed paddies with enough water, which enabled non-irrigated areas to plant these crops.

Alcala said Filipino farmers’ rice and corn harvests in the first six months of the year exceeded past records, a sign that the country’s food sufficiency program is on track.

The country aims to become rice and corn sufficient by 2013.

The livestock and poultry subsectors also posted modest increases, at 0.85 percent and 3.6 percent, respectively.

The fisheries subsector, however, continued its decline. It dipped by 2.89 percent, as commercial and municipal fish catch decreased during the first half of 2011. During the same period last year, the sector dropped by 0.88 percent.

While the weather proved to be helpful to farmers in the first semester, the DA expressed worry that gains could be shaved by storms in the coming months.

“This will reflect in the third quarter report. This will be factored in to our projections,” the Agriculture chief said in a previous interview.

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