Connect with us

Hi, what are you looking for?

News

Agricultural output likely flat to lower in 3rd quarter

PHILIPPINE STAR/ MICHAEL VARCAS

By Luisa Maria Jacinta C. Jocson, Reporter

FARM OUTPUT likely remained stagnant, with a bias towards the downside, in the third quarter as crops sustained storm damage while farming operations are believed to have been disrupted by the rising cost of inputs like fuel and fertilizer, analysts said.

“The situation in the first and second quarter, which has been successive contractions, will not be better in the third quarter… on the whole, the third quarter will still see a contraction. My take is minus 1.0% to +0.3%,” Roy S. Kempis, retired Pampanga State Agricultural University professor, said in a Viber message.

Mr. Kempis said that this is due to a combination of the “continued adverse effects of the upheaval in Eastern Europe which disrupted supply and the physical destruction of crops, livestock and poultry at the peak of typhoon season.”

In the second quarter, the value of production in agriculture and fisheries at constant 2018 prices declined 0.6% due to weak crop and fisheries output. Production also contracted by 0.3% in the first quarter.

Agriculture accounts for about a tenth of Philippine gross domestic product.

“There was Severe Tropical Storm Florita (international name: Ma-On) in August and Typhoon Karding (international name: Noru) in September. The latter (did the most damage) because the rice harvest could have been done in a few days when it struck the country,” Mr. Kempis said.

“The recent Typhoon Karding will definitely affect the output of crops that are scheduled to be harvested will result in a little decline for the third and fourth quarter output to what is supposed to be an expected gain,” Philippine Chamber of Agriculture and Food President Danilo V. Fausto said in a Viber message.

Agricultural damage inflicted by Karding was estimated at P3.12 billion, according to the Department of Agriculture (DA).

The volume of lost production was estimated at 158,117 metric tons (MT) with 170,762 hectares of farmland and 108,594 farmers and fisherfolk affected.

Rice was the most affected commodity with losses valued at P2.05 billion. Lost volume was 134,205 MT across 163,162 hectares.

Meanwhile, damage from Florita hit P1.13 billion, affecting 6,647 farmers, with volume of lost production at 66,633 MT spanning 44,922 hectares of farmland.

“Whether these typhoons cross the land mass or not, too much rainfall dropping in huge amounts in so short a time wreaks havoc on agricultural production with floods and landslides,” Mr. Kempis said.

The Russia-Ukraine war also disrupted imports of fertilizer and fuel, according to Mr. Kempis.

The Philippines imports most of its fertilizer. In 2021, it imported 95% of the fertilizer requirement.

“While inflation is generally bad, the inflationary effect of the Eastern Europe upheaval, is to partly elevate to some extent the values of production. We can expect some semblance of agricultural growth. Apparently, this price effect on the value of outputs could not outweigh the price effect on the cost of inputs, especially fertilizer, agri-chemicals, and fuel,” Mr. Kempis said.

“The little improvement in yield per hectare for rice and corn can even outweigh the increase of fertilizer cost,” Mr. Fausto added.

Headline inflation accelerated to 6.4% in July. It eased to 6.3% in August before surging to 6.9% in September and 7.7% in October.

At the end of September, the average price of a bag of prilled urea rose 64.7% year on year to P2,523.08.

In September, oil companies cut pump prices for gasoline by P4.7 per liter, diesel by P9.95 per liter, and kerosene by P9.1 per liter.

“With the destruction of crops especially rice and the disruption of operations in livestock, poultry and fisheries, what could happen in terms of agricultural output in the third quarter is like rubbing salt onto an injury. And this is too much for our agricultural producers, especially small farmers,” Mr. Kempis added.

Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet said that excessive imports will discourage farmers and lead to lower production.

“It will get worse if we continue with our reckless policy of unabated imports. Unfortunately, the marching orders of President Ferdinand R. Marcos, Jr. are being ignored by elements within the DA who continue to allow the flooding of imports in our market,” he said in a Viber message.

The agricultural trade deficit expanded 15% year on year in the second quarter to $2.72 billion, according to preliminary data issued by the Philippine Statistics Authority (PSA).

Agricultural imports rose 22% to $4.84 billion or 13.5% of all imports.

The PSA is scheduled to release its third-quarter report for agriculture production on Nov. 9.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

TOKYO – Japan‘s government is considering tapping funds under an account set aside for foreign exchange intervention to pay for an expected increase in defense spending, Kyodo news agency reported on Tuesday. The government could...

News

REUTERS WASHINGTON – The administration of President Joe Biden has drawn Republican fire for its cautious response to nationwide protests in China against COVID-19 lockdowns, with some lawmakers accusing it of...

News

BEIJING – Three Chinese astronauts arrived on Wednesday at China’s space station for the first in-orbit crew rotation in Chinese space history, launching operation of the second inhabited outpost in low-Earth orbit after the NASA-led...

News

STOCK PHOTO Image by Pexels from Pixabay ALMATY – McDonald’s licensee in Kazakhstan was forced to temporarily close its restaurants this month after cutting ties with Russian companies and running out of supplies, three sources with...

News

SINGAPORE – Olivia Chiong and her wife feel like the Singapore government has made clear to them and their two children that they don’t belong in the city-state. So this week’s vote...

Editor’s Pick

The UK’s biggest broadband and mobile operators have today met with the government to follow up on commitments agreed in the summer to support...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.