NSCB - 2nd Quarter 2008 National Accounts - Agriculture, Fishery and Forestry

Second Quarter 2008
Gross National Product &
Gross Domestic Product by Industrial Origin

AFF accelerates growth

AFF, which accounted for 16.6 percent of total GDP, accelerated its growth to 4.9 percent compared to 4.2 percent recorded last year, and contributed 0.8 percentage point to the total GDP growth. Biggest contributors to growth of AFF were Palay, Corn, Banana and Sugarcane.

Palay, Corn, Banana and Sugarcane propel Agriculture growth

Coming from a 4.4 percent growth last year, Palay soared to a double-digit growth of 10.5 percent this year. The double-digit growth was attributed to the increase in area harvested and the restoration/ rehabilitation of irrigation facilities resulting to higher yield.

Higher production in palay, corn, banana and sugarcane was attributed to the combined effects of the following: movement of harvest from third quarter to second quarter in Ilocos Region and Cagayan Valley; use of late maturing varieties due to the cold weather in January and February; and the rehabilitation of irrigation facilities which improved water efficiency in Cagayan Valley, Central Luzon, MIMAROPA and Northern Mindanao contributed to the.

The availability and increased usage of hybrid and HYVs and fertilizer subsidies from the GMA-Rice program interventions also contributed to increased output of palay.

Corn shoot up to 24.0 percent growth from negative 2.5 percent last year. The hike was largely contributed by the significant gains in production in Northern Mindanao, Western Visayas, SOCCSKSARGEN and Ilocos. Further, the availability of seeds from GMA Corn Program and private seed companies, adequate rainfall, higher corn prices and increasing demand for feeds from the livestock and poultry industries encouraged more farmers to expand their plantings in the first quarter of 2008. Also, the movement of harvests from the third quarter to the second quarter due to early plantings and delayed harvestings brought about by the cold weather that occurred in February in Cagayan Valley pulled up corn output for the period.

Sugarcane, likewise, posted an astounding growth of 110.8 percent from a negative 23.8 percent in the same period last year. The growth was attributed to the use of high yielding varieties such as 88345, 8650 and 8452 in Western Visayas, Central Visayas, Northern Mindanao and SOCCSKSARGEN supplemented by a favorable weather condition. The movement of harvests from the first quarter to the second quarter in Central Visayas also contributed to the dramatic increase in sugar production.

Banana posted a double-digit growth of 21.0 percent from 8.4 percent posted during the second quarter of last year. Growth was ascribed to the increase in bearing hills in Central Luzon, Bicol Region, all provinces of Davao Region and Bukidnon. Abundant rainfall and fertilizer application resulted in bigger bunches of fruits in Central Luzon.

Coconut made a turnaround and posted 7.1 percent growth from negative 3.8 percent last year. The high prices of copra hiked coconut production in the Visayas and Mindanao regions. Similarly, increased production were noted in Quezon and the Bicol Region due to the sustained recovery of coconut trees devastated by Typhoon Milenyo and Reming in 2006

Other Crops on the other hand suffered a reversal in growth with negative 5.4 from 11.8 percent growth in the same period of last year. The decline in other crops was due to decline in production of mango, onion and eggplant.

Livestock skidded to negative 3.2 percent from 2.7 percent growth in the second quarter of last year. Although there was a continuous increase in the number of animals slaughtered in abattoirs in Ilocos Region, Central Luzon, Central Visayas, Eastern Visayas, CALABARZON and SOCCSKSARGEN livestock production was pulled down by the lackluster performance of hog production brought about by the decrease in the number of animals slaughtered in abattoirs and the cholera scare in Central Luzon.

On the other hand, Poultry rebounded from negative 2.2 percent last year to 7.8 percent this year. The main source of the sub-sector’s growth was chicken broiler production. Higher inventory of layers and better egg-laying efficiency ratio, particularly, in Central Luzon also contributed to the uptrend in growth of poultry.

The decrease in duck meat and duck egg production as noted in Cagayan Valley, Western Visayas, Eastern Visayas and Caraga was hardly felt by the poultry sub-sector

Fishery stays afloat

Fishery slowed down, from 6.2 percent registered last year to 1.6 percent this year. The decelerated growth was traced to high fuel cost that affected commercial fishing. Likewise, both municipal fishing and aquaculture posted slower growths this year.

Forestry improves

From an 8.4 percent contraction suffered in the second quarter of last year, forestry improved to a lower negative growth of 1.6 percent this year.

GROSS VALUE ADDED in AGRICULTURE, FISHERY & FORESTRY
2nd Quarter 2007 and 2nd Quarter 2008
AT CURRENT PRICES, IN MILLION PESOS

INDUSTRY/INDUSTRY GROUP	2nd Qtr 2007	2nd Qtr 2008	Growth Rate (%)
1. AGRICULTURE INDUSTRY	193,772	254,045	31.1
a. AGRICULTURE	155,484	208,885	34.3
Palay	29,051	48,379	66.5
Corn	9,325	12,357	32.5
Coconut including copra	10,373	15,824	52.5
Sugarcane	2,133	4,750	122.7
Banana	12,220	16,675	36.5
Other crops	38,194	46,628	22.1
Livestock	28,951	33,744	16.6
Poultry	14,095	16,099	14.2
Agricultural activities & services	11,142	14,429	29.5
b. FISHERY	38,288	45,160	17.9

2. FORESTRY	1,320	1,337	1.3

GROSS VALUE ADDED IN AGRICULTURE,FISHERY AND FORESTRY	195,092	255,382	30.9

GROSS VALUE ADDED in AGRICULTURE, FISHERY & FORESTRY
2nd Quarter 2007 and 2nd Quarter 2008
AT CONSTANT 1985 PRICES, IN MILLION PESOS

INDUSTRY/INDUSTRY GROUP	2nd Qtr 2007	2nd Qtr 2008	Growth Rate (%)
1. AGRICULTURE INDUSTRY	55,765	58,507	4.9
a. AGRICULTURE	40,404	42,901	6.2
Palay	8,159	9,017	10.5
Corn	2,498	3,098	24.0
Coconut including copra	1,686	1,807	7.1
Sugarcane	773	1,629	110.8
Banana	1,817	2,199	21.0
Other crops	10,726	10,142	-5.4
Livestock	7,059	6,834	-3.2
Poultry	5,076	5,469	7.8
Agricultural activities & services	2,608	2,705	3.7
b. FISHERY	15,362	15,606	1.6

2. FORESTRY	429	422	-1.6

GROSS VALUE ADDED IN AGRICULTURE,FISHERY AND FORESTRY	56,194	58,929	4.9

GROSS VALUE ADDED in AGRICULTURE, FISHERY & FORESTRY
Annual 2007 and 2006
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

INDUSTRY/ INDUSTRY GROUP	AT CURRENT PRICES			AT CONSTANT PRICES
INDUSTRY/ INDUSTRY GROUP	2006	2007	Growth Rate (%)	2006	2007	Growth Rate (%)
1. AGRICULTURE INDUSTRY	847,978	932,282	9.9	238,022	249,950	5.0
a. AGRICULTURE	718,154	788,856	9.8	183,197	191,366	4.5
Palay	131,886	150,667	14.2	40,987	43,430	6.0
Corn	45,469	55,022	21.0	14,494	16,054	10.8
Coconut including copra	39,087	45,932	17.5	8,302	8,249	-0.6
Sugarcane	27,634	23,961	-13.3	6,136	5,462	-11.0
Banana	37,194	45,204	21.5	6,192	6,821	10.1
Other crops	221,819	239,092	7.8	43,114	46,165	7.1
Livestock	111,361	116,897	5.0	28,397	29,083	2.4
Poultry	63972	68,650	7.3	25,016	25,069	0.2
Agricultural activities & services	39,731	43,430	9.3	10,559	11,033	4.5
b. FISHERY	129,823	143,426	10.5	54,825	58,584	6.9

2. FORESTRY	4,822	4,133	-14.3	1,477	1,322	-10.5

GROSS VALUE ADDED IN AGRICULTURE, FISHERY AND FORESTRY	852,800	936,415	9.8	239,449	251,272	4.9

Source: National Statistical Coordination Board (NSCB)

Posted 28 August 2008