THE country’s value of production in agriculture and fisheries in the first quarter of 2023 was registered at P428.69 billion, representing an annual growth of 2.1 percent, the government reported on Wednesday.
“This was because of the annual increases in the value of production of crops, livestock, poultry and fisheries,” the Philippine Statistics Authority (PSA) said, by way of explaining its data.
The PSA also said that crops, which grew by 1.7 percent, accounted for P247.77 billion or 57.8 percent of the total value of production in agriculture and fisheries in the first quarter of 2023.
Palay and corn posted increments in the value of production at 5.2 percent and 3.2 percent, respectively, it added.
The value of livestock production also showed an annual growth of 4.1 percent.
“It contributed P61.66 billion or 14.4 percent of the overall value of agriculture and fisheries production. In particular, the value of hog production recorded a 5.1-percent improvement,” the PSA said.
With a production value of P64.95 billion, poultry’s contribution to the total value of agriculture and fisheries production was 15.1 percent.
Poultry’s value of production registered a 3.2-percent annual increase.
All poultry commodities, except duck, recorded annual growths in their value of production.
“The value of fisheries production, which grew slightly by 0.3 percent annually, amounted to P54.32 billion or 12.7 percent of the total value of agriculture and fisheries production,” data shows.
Double-digit expansions were recorded for squid (pusit) at 18.2 percent, tilapia at 10.8 percent, and blue crab (alimasag) at 10.5 percent, it added.
At current prices, the value of production in agriculture and fisheries amounted to P569.94 billion, indicating an annual growth of 14.1 percent.
Earlier, a Monetary Board (MB) member said the country’s agriculture performance for the first semester of 2023 is expected to be “good.”
“I don’t think it’s appropriate to see it by quarter because it’s not the planting season, so it’s more appropriate to see it by semester and I think the first semester will be okay of this year I expected,” MB member Bruce Tolentino had said at the recent Economic Journalists Association of the Philippines and San Miguel Corp. (EJAP-SMC) Annual Business Journalism Seminar.
The main drivers, he said, are the Regional Comprehensive Economic Partnership (RCEP) and the Rice Tariffication Law (RTL).
“The RCEP is still doing okay which means it’s putting money and productivity enhancement into the hands of farmers, and as we observe it, there have been improvements every semester ever since the RTL was passed,” Tolentino added.
For his part, Michael Ricafort, chief economist of Rizal Commercial Banking Corp. said the higher growth rate for the first quarter of 2023 may have to do with better weather conditions after some storm/shear line damage in the latter part of 2022 and against a year ago (in the aftermath of Supertyphoon Odette back then especially in Southern Philippines), thereby coming from a much lower base/denominator and mathematically magnified the year-on-year growth rate.
“Furthermore, higher prices/inflation globally and locally led to higher prices of some crops/agricultural products, thereby also partly adding to the year-on-year growth in terms of value,” he added.
Ricafort also said the “higher world and local prices of rice, corn, other grains/other agricultural products also partly encouraged more planting activities, on top of government intervention measures to further boost productivity of the agricultural sector amid the priority on food security, as part of the efforts to increase local food supplies and bring down food prices and overall inflation.”
Nevertheless, faster growth in agricultural output would help support faster overall GDP/economic growth, he said.
Image credits: Bernard Testa