NSCB - 3rd Quarter 2008 National Accounts - Agriculture, Fishery and Forestry

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

AFF decelerates

AFF, which accounted for 15.0 percent of total GDP, grew by 2.5 percent lower than the 5.7 percent growth recorded last year, and contributed 0.4 percentage point to the total GDP growth. Biggest contributors to growth of AFF were Palay, Fishery and Banana.

Palay, Banana and Poultry propels Agriculture growth

Coming from a 4.7 percent growth in 2007, Palay soared to a double-digit growth of 10.2 percent this year. The double-digit growth was attributed to the movements of harvest from the fourth quarter to the third quarter in Cagayan Valley, Central Luzon, MIMAROPA, Wesern Visayas and Caraga. Likewise, the early onset of rainfall allowed more plantings specifically in rainfed areas of Western Visayas and Caraga Regions.

In addition, the early release of irrigation water and the use of early maturing varieties resulted to increased output of palay.

Corn declined by 11.1 percent from a substantial growth of 14.0 percent registered last year. The production losses of corn were attributed to Typhoons Frank, Karen and Niña, which hit the country during the quarter, and the decline of corn output in the third quarter due to the movement of harvest to the second quarter.

Sugarcane, on the other hand, posted a remarkable growth of 54.6 percent from a negative 9.6 percent in the same period last year. This was largely due to the extended milling operations of sugar millers in Batangas and Negros Occidental up to August coupled with the extension to July of sugar millers operations in Camarines Sur, Negros Oriental and Davao del Sur.

Coconut grew by 1.4 percent from 1.9 percent last year, bolstered by the high demand for copra together with good market price and the increased demand for young coconut from the processors of “buco” juice and coco-based delicacies. This induced the Visayas and Mindanao coconut producing regions to increase their production during the quarter.

Banana improved to a higher growth of 19.0 percent from 6.1 percent posted during the third quarter of last year, as the increased demand from both local and export markets induced area expansion in North and South Cotabato and Davao Region. Favorable weather condition boosted the growth of Banana in Northern Mindanao and Central Visayas.

Other Crops, on the other hand, dipped to negative 0.6 percent from the 5.4 percent growth recorded in the same period of last year. High farm cost, notably in prices of pesticides and fertilizers, forced the vegetable farmers of Benguet and Mountain province to scale down production during the period. Moreover, Typhoons Cosme and Frank wreaked havoc to mango production in Zambales, Ilocos and Central Visayas

Livestock grew by meagerly by 0.7 percent from 1.4 percent. This was due to the low stock level of hog fatteners coupled with decreases in the number of animals slaughtered in abattoirs. Cholera scare, particularly in Ilocos, Cagayan Valley, Central and Southern Luzon, Bicol and Metro Manila, contributed to the decline. Hog production, which constitutes about 80 percent of the livestock production, grew slightly by 0.6 percent.

In contrast, Poultry rebounded to a growth of 3.2 percent from negative 0.3 percent a year ago. Increased chicken broiler production, higher inventory of layers and better egg-laying efficiency ratio, particularly, in Central Luzon and CALABARZON contributed to the growth in poultry.

Fishery decelerates

Fishery slowed down its growth from 9.9 percent registered last year to 4.7 percent this year as the high fuel cost during the period affected commercial fishing activities. The increase in aquaculture production in Bulacan and Pampanga was not enough to surpass the growth of the sector registered during the previous year.

Forestry picks up

Forestry grew by 7.2 percent in the third quarter of 2008 from a negative growth of 17.7 percent registered in the previous year.

GROSS VALUE ADDED in AGRICULTURE, FISHERY & FORESTRY
3rd Quarter 2007 and 3rd Quarter 2008
AT CURRENT PRICES, IN MILLION PESOS

INDUSTRY/INDUSTRY GROUP	3rd Qtr 2007	3rd Qtr 2008	Growth Rate (%)
1. AGRICULTURE INDUSTRY	217,170	262,185	20.7
a. AGRICULTURE	182,794	221,748	21.3
Palay	29,832	38,578	29.3
Corn	19,784	19,747	-0.2
Coconut including copra	15,079	23,144	53.5
Sugarcane	483	719	49.0
Banana	10,811	14,488	34.0
Other crops	56,072	66,944	19.4
Livestock	27,012	30,719	13.7
Poultry	15,345	17,389	13.3
Agricultural activities & services	8,376	10,018	19.6
b. FISHERY	34,375	40,437	17.6

2. FORESTRY	1,305	1,441	10.4

GROSS VALUE ADDED IN AGRICULTURE,FISHERY AND FORESTRY	218,475	263,625	20.7

GROSS VALUE ADDED in AGRICULTURE, FISHERY & FORESTRY
3rd Quarter 2007 and 3rd Quarter 2008
AT CONSTANT 1985 PRICES, IN MILLION PESOS

INDUSTRY/INDUSTRY GROUP	3rd Qtr 2007	3rd Qtr 2008	Growth Rate (%)
1. AGRICULTURE INDUSTRY	56,221	57,628	2.5
a. AGRICULTURE	43,394	44,202	1.9
Palay	8,416	9,271	10.2
Corn	6,050	5,376	-11.1
Coconut including copra	2,372	2,404	1.4
Sugarcane	90	140	54.6
Banana	1,635	1,946	19.0
Other crops	9,422	9,365	-0.6
Livestock	6,775	6,826	0.7
Poultry	5,752	5,934	3.2
Agricultural activities & services	2,883	2,940	2.0
b. FISHERY	12,827	13,426	4.7

2. FORESTRY	390	418	7.2

GROSS VALUE ADDED IN AGRICULTURE,FISHERY AND FORESTRY	56,611	58,046	2.5

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 27 November 2008