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AGRICULTURE

What is Agriculture?
* the science or practice of farming, including cultivation of
the soil for the growing of crops and the rearing of animals to
provide food, wool, and in varying degrees the preparation
and marketing of the resulting products.

Significance of
Agriculture

Source of livelihood
Contribution to national income
Supply of food and fodder
Importance in international trade
Source of raw material
Vast employment opportunities
Source of government income
Basis of economic development

Agriculture occupies an
important place in the
development of an
economy. It is in fact, a
pre-condition for
economic up-liftment.

Issues and Problems in


Agriculture

Natural Resources Degradation


- The continuing degradation of
forests also contributes to low yields
and the low rate of land utilization.

Results in an inadequate
water supply during the
dry season and exacerbates
damage to crops, fisheries,
and rural infrastructures as
a result of typhoons and
increasing flooding during
wet season.

Low Productivity
-land productivity in the

Philippines is lower than in other


countries in the Southeast Asia
region.

Is a result of many factors such


as:
-small farm size
-underutilization of land due to
water supply issues resulting from
watershed degradation
-low efficiency of existing
irrigation systems
-deficit of rural infrastructures
-post-harvest facilities
-high cost of farm inputs
-weak linkages between
smallholders or producers and
enterprises

Limited Connectivity
- Lack of quality rural transport,
particularly farm-to-market roads,
discourages farmers from increasing
production.
- Adaption by farmers, particularly
smallholders, of new and valueadding technologies has been slow
due to the lack of access to
information on production
technologies.

As a consequence,
farmers knowledge of
diversified farming
technologies is limited,
and market linkages
remain weak.

Weak Resilience
- Highly vulnerable to climate change-related risks
(flood, typhoons, and droughts) which can cause
severe erosion, given certain soil, vegetation, and
slope conditions.

Can pose danger to the stability and


sustainability of downstream investments and
economic activities.
Longer dry seasons put an additional burden on
water supplies for irrigation and seriously impair
agricultural productivity.

Inadequate support services


- Insufficient provision of key support
services affects productivity.
- Lack of transparency, cumbersome
procedures, and inconsistent application
of regulatory functions under the
authority of the Department of
Agriculture inhibit private sector
participation and the development of
linkages between smallholders or
producers and traders or processors.

Services include:
-construction and operation
and maintenance of farmto-market roads
-small-scale irrigation
systems
-other rural infrastructure
(remains incomplete due to
the technical and financial
constraints facing LGUs
and incompatible priorities
between them and national
agencies.)

Policy, Governance, and Capacity Issues


-institutional fragmentation weakens
planning and service delivery.
-unclear and overlapping functions of
key government agencies, insufficient
planning and results monitoring
systems impact on the effectiveness
and accountability of service delivery.
Three primary departments
involved in the sector:
- DOA
- DAR
- DENR

In addition, weak governance


and changing local-level
priorities, due to likely changes
in governing officials every 3
years, add to the risk.

Philippine Agriculture
Situation

The Philippines is still primarily an agricultural country


despite the plan to make it industrialized economy by
2000.
Countrys main agricultural crops are rice, corn, coconut,
sugarcane, bananas, pineapple, coffee, mangoes, tobacco,
and abaca.
Secondary crops include peanut, cassava, camote, garlic,
onion, cabbage, eggplant, calamansi, rubber and cotton.

Philippine Agriculture

9
7.74

8
7
Farmgate Prices
Fisheries
Poultry
Livestock
Crops
Agriculture

6
5

4.29

3.25
2.5

3
2
1
0

1.76

1.83
1.24

1.12.

1.02

0.002

0.27

2013

-0.15

2014

-1

Performance of Agriculture

1.83
2

Agriculture

1.12

1.5
Agriculture

1
0.5
0
2013

2014

Agriculture expanded by 1.83% in 2014. The sectors growth


was contributed by the production increments in the crops,
livestock and poultry subsectors. Gross earnings amounted
to P1.6 trillion at current prices or 9.71% higher than last
years earnings.

3.5
3
2.5
2
1.5
1
0.5
0

Crops

3.25

Crops

0.002

2013

2014

Crops subsector which shared 51.71% in total agricultural production


grew by 3.25% during the year. Production of palay went up by 2.87%
and that of corn, by 5.33%. Notable gains were recorded for
sugarcane, mango, tobacco, cassava & onion. The subsectors gross
value of output amounted to P933.7 million. This was 14.52% more
than the 2013 level.

Livestock and Poultry


5

4.29

3
2

Poultry
Livestock

1.76
1.02

0.27

0
2013

2014

Livestock production increased by 1.02%. It contributed 16.10% to


total agricultural output. All components of subsector registered output
gains in 2014. The subsectors gross value of production amounted to
P247.1 billion, at current prices. This indicated a 5.60% improvement
from 2013 earnings.
The poultry subsector inched up by 0.27 percent. Shared 14.54% in the
total agricultural production. The sources of growth chicken, duck and
duck egg. At current prices, the subsector grossed P189.7 billion which
was 7.84% higher than previous years level.

1.5

1.24

Fisheries

1
-0.15

0.5

Fisheries

0
2013

2014

-0.5

Fisheries production declined by 0.15% in 2014. The


subsector accounted for 17.65% of total agricultural
output. The subsectors gross earnings mounted to P242.0
billion or 1.03% lower than 2013 record.

Farmgate Prices
10
8
6
4
2
0

7.74

2.5

Farmgate Prices

2013

2014

Farmgate prices went up by 7.74% from 2013 quotations.


Significant price increases were recorded in the crops
subsector at 10.92%. The poultry subsector followed with
an average price gain of 7.55%. In the livestock subsector,
prices were quoted 4.54% more this year.

Philippine
Agricultural Products
for Export and Import

In International Trade,
"exports" refers to selling
goods and services
produced in the home
country to other markets.
An import is a good
brought into a jurisdiction,
especially across a national
border, from an external
source.

1. Food and Live Animals chiefly for Food


The country's major agricultural crops are rice, corn,
coconut, sugarcane, banana, cassava, pineapple, and
vegetables

Major Exports of
the Philippines

The major livestock products are hog, cattle, carabao,


goat, and dairy products. Chicken and ducks are the
leading poultry products.

Tuna and shrimps

2. Tobacco and tobacco


manufactures

3. Crude Materials
4. Animal and Vegetable Oils
5. Manufactures fertilizers
6. Agricultural Machinery

Top Philippine Agricultural Exports Ranking


Based on FOB Value, 2004-2010

1. Wheat

2. Soybean Oil

Major Imports to
the Philippines

3. Milk and cream products