NSCB - Second Quarter 2005 GNP - Agriculture, Fishery and Forestry

Second Quarter 2005
Gross National Product &
Gross Domestic Product by Industrial Origin

Agriculture, Fishery and Forestry, which comprised 17.2 percent of total GDP, grew by 1.8 percent in the second quarter of 2005 from a growth of 4.2 percent in the same period last year. It contributed 0.32 percentage point to total GDP growth. Leading the industry’s growth were Fishery, Other Crops, Banana and Palay.

Agriculture

Palay production weakened to a modest growth of 1.8 percent in the second quarter 2005 from a robust growth of 11.0 percent in 2004. The slowdown was attributed to the carry-over effect of a mild El Niño, which persisted in the first quarter of the year, particularly experienced in Western and Central Visayas, MIMAROPA, Caraga and Zamboanga Peninsula. Corn plunged to negative 10.1 percent from positive 15.5 percent as the dry spell which hit the production areas of Cagayan Valley, Northern Mindanao, ARMM and SOCCKSSARGEN resulted in a significant reduction in the hectarage and yield of Corn. The high costs of fertilizers and other farm inputs likewise contributed to the decline in yield during the quarter. The closure of a sugarmill in Tarlac and the dryspell in Bukidnon which started in the first quarter resulted in the substantial reduction of Sugarcane by 21.6 percent compared to the significant growth of 34.9 percent recorded in 2004.

On the other hand, Coconut production recovered to a growth of 2.6 percent from negative 1.35 percent in 2004 as improved demand for copra led to better prices . Further, the fertilizer application program of the Philippine Coconut Authority (PCA) yielded bigger sizes of nuts in Northern Mindanao and North Cotabato. Meanwhile, Banana accelerated to 11.3 percent from 3.0 percent due to increased area and number of fruit bearing trees in Western Visayas, MIMAROPA, Zamboanga Peninsula, Antique, Saranggani, Davao City, North Cotabato and Sultan Kudarat. Other Crops bounced back to a growth of 2.5 percent from a decline of 4.1 percent in the previous year as improved production was recorded in Mango, Coffee, Tomato, Garlic and Calamansi, among others.

Livestock grew modestly by 1.8 percent during the quarter, from a marginal growth of 0.7 percent a year ago, dragged by the decline in carabao and cattle production. Hog and Dairy production, however, improved during the quarter.

Poultry, likewise expanded by 2.5 percent, an improvement from its meager growth of 0.9 percent in the previous year as all its subsectors posted gains in output during the period, except Duck Egg production.

Fishery

Fishery production continued to grow by 4.7 percent in the second quarter of 2005 from 6.0 percent in 2004 with all its subsectors expanding during the period. Growth was mainly driven by Aquaculture, due to the strong demand for Philippine seaweeds. The technical assistance provided by the BFAR-LGU and the modern production techniques resulted in more farmers venturing into seaweed farming in Palawan and Sorsogon.

Meanwhile, Commercial and Municipal Fishing reported higher growths during the quarter due to the bigger volume of fish species caught which are in season.

Forestry

Forestry slipped to negative 18.3 percent from the substantial growth of 62.3 percent recorded in the previous year due to the continued suspension of logging permits throughout the country.

GROSS VALUE ADDED in AGRICULTURE, FISHERY & FORESTRY
2nd Quarter 2005 and 2nd Quarter 2004
AT CONSTANT 1985 PRICES, IN MILLION PESOS

INDUSTRY/INDUSTRY GROUP	Q2 2004	Q2 2005	Growth Rate (%)

Agri., Fishery, Forestry	49,518	50,409	1.8

1. AGRICULTURE INDUSTRY	49,190	50,141	1.9
a. AGRICULTURE	36,892	37,263	1.0
Palay	6,964	7,090	1.8
Corn	1,910	1,717	-10.1
Coconut including copra	1,683	1,726	2.6
Sugarcane	1,315	1,031	-21.6
Banana	1,345	1,498	11.3
Other crops	9,497	9,735	2.5
Livestock	6,534	6,650	1.8
Poultry	4,997	5,122	2.5
Agricultural activities & services	2,647	2,694	1.8
b. FISHERY	12,298	12,878	4.7

2. FORESTRY	328	268	-18.3

Source: National Statistical Coordination Board (NSCB)

Posted August 29, 2005.