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Department of Agricultures

FY 2016 Plan and Budget Proposal


A presentation for the members of the House of Representatives-Committee on Appropriations

Secretary Proceso J. Alcala


25 August 2015

Outline

Our Key Achievements:


Performance Highlights under the Aquino Administration

Our Goal, Thrusts and Priorities:


Key Sector Commitments until 2016

Our 2016 Budget:


FY 2016 DA Budget based on the National Expenditure Program

Our Legislative Agenda:


Priority Bills for the 16th Congress

Our Key Achievements

Historical Best in Rice and


Corn Production
Increased Growth and Productivity
Recorded fastest production growth
among the worlds rice producers
for 2010-2014
Achieved historical best of 18.97
MMT palay production and 4.0 mt/
ha yield in 2014

Rice Production Growth, 2010-2014


Rank

Country

Ave. Growth

Philippines

4.02%

India

2.97%

Vietnam

2.35%

11

China

1.14%

14

Thailand

-1.47%

World Ave.

1.39%

Data Source: USDA World Markets and Trade, Aug 2015

Achieved historical best in corn production


2014

Volume of Production

2010
6.38 MMT

7.77 MMT

Yield Level

2.38 mt/ha

3.01 mt/ha

Increased Profitability in
Rice and Corn
Average
annual growth
rates of net
returns
(2009-2013):

7.5 %

Palay
Particulars
Net Returns
(PhP/hectare/cropping)
Net Profit Cost Ratio

2009

2013

Ave
Growth

12,608

16,833

7.5%

0.33

0.40

4.9%

Source: Costs and Returns Survey (CRS) of Palay, March 2011 & January 2015 (PSA-BAS)

Corn

10.2 %

Particulars
Net Returns
(PhP/hectare/cropping)
Net Profit Cost Ratio

2009

2013

Ave Growth

4,748

7,004

10.2%

0.21

0.32

11.1%

Source: Costs and Returns Survey (CRS) of Corn, March 2011 & December 2014 (PSA-BAS)

Boosted Farm and R&D


Investments
Increased use of combine harvesters

41

no. of units
in 2011

1,806

Established small-scale
irrigation systems (SSIS)

no. of units
in 2014

Mechanization has
reduced average cost
of rice production
from P11.07/kg to as
low as P7.78/kg.

Intensified R&D initiatives


DA R&D budget (in PhP):

2,822 ha 1.07 B 3.22 B


service area generated from
2011 to 2014

FY 2010

FY 2016 NEP

Intensified Organic
Agriculture Development
Key Achievements

14,150 ha
CY 2010

83,945 ha
CY 2014

Philippines is the fifth largest producer of organic agriculture


products in Asia
Number of farms and practitioners of organic farming increased
to 10,000 and 88,000, respectively
Organic agriculture production in 2014 six times the production
in 2010 (4,500 MT 27,000 MT)
Organic products reached 72 domestic and international markets

Institutionalized Sustainable
Fishery Reforms
Curbed illegal, unreported, and
unregulated (IUU) fishing
Implemented measures resulting to EUs lifting of
yellow card on Philippine fishery exports through:
Passage of RA 10654, Amended Philippine Fisheries Code
Improvement of traceability and catch certification
schemes
Reinforced RP-Papua New Guinea cooperation for
inspection, control and coverage beyond Philippine waters

Institutionalized Sustainable
Fishery Reforms
Resource Management and Enforcement
Implemented closed seasons to regenerate marine resources

successful
closed seasons
since 2011

Enforcement of closed season was


instrumental in the approval of
Philippine access to the tuna-rich High
Seas Pocket 1 of the Pacific Ocean
until 2017

Intensified monitoring and enforcement initiatives


Number of fishery law enforcers:

CY 2010

188

as of March 2015

580
by end of 2015

Developed Philippine National


Standards (PNS)

62

PNS developed
from 2011 to date

19

PNS in pipeline

Commodities with Philippine National Standards (PNS)/Good


Agricultural Practices (GAP) developed in 2011-2015:
Crops

Rice, Corn, Cassava, Coffee, Cacao, Banana, Sugar, Snap Beans, Chico,
Macopa, Mungbean, Soybeans, Peanut, Onion, Moringa, Avocado,
Breadfruit, Dragonfruit, Marang, Soursop, Sugar Apple, Sweet Cassava,
Turmeric, Chayote, Guava, Lima Bean, Rambutan, Strawberry, Taro,
Winged Beans, Melon, Santol, Luffa, Sweet Tamarind

Fisheries

Mollusc, Fish Fillet, Lobster, Sea Cucumber, Cephalopods, Tuna,


Convolvulus, Halal Fisheries Products

Livestock

Halal Ruminants and Poultry

Improved Animal Health and


Consumer Welfare
Free from Animal Diseases
For the 5th year in a row since 2011, certified as
Foot and Mouth Disease (FMD) -free without
vaccination
Recently certified Peste des Petits Ruminants
(PPR) free by the World Organization for
Animal Health last May 2015
Continuously maintained Bird Flu-free status

Improved Domestic
Market Access

Agri-Pinoy Trading Centers


(APTCs) operationalized

average of 15% to 25% increase in


income is estimated due to
reduction of market layer

Pangasinan APTC
Isabela MultiCommodity APTC
Nueva Vizcaya
Regional Organic
APTC
Nueva Vizcaya
APTC

Food Terminals Operationalized, 2011-2014:

37

Municipal Food Terminals

399

Nueva Ecija
APTC
Camarines Norte
APTC
Quezon Corn
Processing and
APTC
Dalaguete APTC

Barangay Food Terminals

Improved Foreign Market Access


New Foreign Markets Opened in 2014
Country
Thailand
Singapore
Kuwait
Qatar
UAE

Oman
Japan
Canada

Export Products
Calamansi and dalandan concentrates
Fruit jams, coco water
Frozen whole chicken
Frozen whole chicken, marinated chicken
Rice (i.e. Miponica and Jasponica rice brands), fresh and frozen tuna
loins, tiger shrimps, avocado, guyabano, mangosteen, rambutan,
solo papaya, durian, lakatan, bongolan bananas, sweet yellow corn
Rice (i.e. Miponica and Jasponica rice brands), avocado, guyabano,
mangosteen, rambutan, solo papaya, durian, lakatan, bongolan
bananas, sweet yellow corn
Durian, yellow dragon fruit, peking duck, chicken
Heirloom rice

Increased Sector Resilience to


Climate Change Risk
Invested in climateresilient infrastructure

Developed and promoted


climate-resilient varieties
Rice

24
3,014 km

concreted FMRs from 2011 to 2014

Increased risk insurance


coverage

PhP 85.5 B

amount of insurance coverage


from 2011-2014

promising varieties developed


through the NextGen Project

The NextGen Project is a DA-PhilriceIRRI collaboration to develop rice varieties


resistant to pests/diseases and tolerant to
adverse environments

Banana
Fusarium wilt-resistant banana varieties,
GCTCV 218 and 219

Native Chicken

paraoakan , banaba, joloano, camarines,


boholano, bolinao, labuyo, darag

Increased Sector Resilience to


Climate Change Risk
Invested in climateresilient infrastructure

Developed and promoted


climate-resilient varieties
Rice

24
3,014 km

concreted FMRs from 2011 to 2014

Increased risk insurance


coverage

PhP 85.5 B

amount of insurance coverage


from 2011-2014

promising varieties developed


through the NextGen Project

The NextGen Project is a DA-PhilriceIRRI collaboration to develop rice varieties


resistant to pests/diseases and tolerant to
adverse environments

Banana
Fusarium wilt-resistant banana varieties,
GCTCV 218 and 219

Native Chicken

paraoakan , banaba, joloano, camarines,


boholano, bolinao, labuyo, darag

Our Goal,
Thrusts and Priorities

Our Goal
Support the Presidents Philippine Development
Plan 2011-2016 to make the agriculture and
fisheries sector competitive and sustainable
Sub-Sector Outcomes:

Productivity in
Forward linkage to the
agriculture and fishery industry and services
sector increased
sectors increased

Sector resilience to
climate change risk
increased

Our Thrusts and Priorities


Rice
FY 2016 Targets:

Production:
20.09 MMT
Yield:
4.08 MT/ha
Area Harvest:
4.92 M ha

Key Strategies:

Promote high yielding and climate
resilient varieties
Intensify extension services and
expand ICT based advisory system
Increase irrigated area thru SSIS
Invest more on RD&E for
sustainable growth

Our Thrusts and Priorities


Corn and Cassava
FY 2016 Targets:

Corn:
Production: 9.86 MMT
Yield: 3.68 MT/ha
Area Harvest: 2.68 M ha
Cassava:
Production: 3.88 MMT
Yield: 15.76 MT/ha
Area Harvest: 0.25 M ha

Key Strategies:

Increase yield thru the use of quality


planting materials
Provide machineries/equipment and
establish more post-harvest facilities
in strategic areas
Entice the private sector to invest in
big ticket projects like handling and
storage
Link processing facilities and trading
posts to private sector users

Our Thrusts and Priorities


High Value Crops
Key Strategies:

FY 2016 Targets:

Production:
Banana: 9.44 MMT

Mango: 0.89 MMT


Pineapple: 2.69 MMT

Coffee: 0.09 MMT


Rubber: 0.51 MMT
Cacao: 0.01 MMT

Provide quality planting materials for


priority commodities
Employ value chain analysis as tool
for value- adding
Establish production facilities and
postharvest equipment/machineries
Invest more on R, D & E
Establish tramline systems for upland
areas

Our Thrusts and Priorities


Livestock and Poultry
FY 2016 Targets:

Production:
Carabao: 0.15 MMT

Key Strategies:

Hog: 2.10 MMT


Goat: 0.08 MMT

Chicken: 1.82 MMT


Duck: 0.35 MMT

Maintain disease-free statuses


(i.e. FMD, PPR, Bird Flu)
Strengthen regulatory facilities and
capacities to protect the borders from
entry of communicable diseases
Fully implement Food Safety Act of
2013 for export readiness
Improve production and productivity
through genetic improvement and
nutrition

Our Thrusts and Priorities


Fisheries
FY 2016 Targets:

Production:
Commercial:

1.11 MMT
Municipal:

1.32 MMT
Aquaculture:
2.49 MMT

Key Strategies:

Provide livelihood to targeted
poor fisherfolk
Train and deploy fishery law
enforcers
Intensify fishery-based valueadding enterprises (i.e
seaweed, aquasilvi, shellfish)
Construct municipal fish
landings to reduce losses

Our Thrusts and Priorities


Organic Agriculture
FY 2016 Target:

Devote/convert
at least 5% of
total
agricultural
area to organic
farming

Key Strategies:

Increase production of organic
agricultural products
Increase number of organic
practitioners
Expand market niche/reach of
organic products, both local and
international
Increase number of certified
organic farms/establishments

Our Thrusts and Priorities


Sugarcane
FY 2016 Targets:

Production:
26.21 MMT
Block farms
strengthened:
19

Key Strategies:

Improve farm productivity and
efficiency through block farming,
infrastructure support, farm
mechanization, socialized credit
Establish farm-to-mill roads in
priority sugarcane areas
Implement an integrated human
resource development program for
dependents, farmers and workers
of the industry

Our Thrusts and Priorities


Irrigation, Infrastructure and Mechanization

Focus on small-scale irrigation projects (SSIPs)


Invest in farm-to-market roads (FMR)
Operationalize and strengthen Agri-Pinoy Trading
Centers (APTCs)
Pursue farm mechanization for improved efficiency
Establish post-harvest facilities

Our Thrusts and Priorities


Climate Change
Responsiveness

Build infrastructure
such as FMRs and
irrigation canals that
can withstand weatherrelated shocks
Promote climateadaptive farming
systems
Develop more resilient
varieties of crops and
livestock

Governance Reforms

Use of science-based tools (i.e.


VSA, vulnerability analysis)
Compulsory geotagging of major
programs and projects
Continue the use and support the
updating of farmer and fisherfolk
registry systems or database to
improve targeting of beneficiaries
(e.g. RSBSA, FishR)
Contract-based implementation of
projects with LGUs
Engagement of stakeholders

Our 2016 Budget

Our 2016 Budget


Including Attached Corporations

FY 2016 National Expenditure Program:

PhP 53.39 billion

Incremental: P 1.35 billion or 2.6% higher than 2015 GAA

PARTICULARS
(IN THOUSAND PESOS)

New Appropriations (Net of Corporations)


Automatic Appropriations
TOTAL DA BUDGET (Net of Corporations)
Budgetary Support to Attached
Corporations
Automatic Appropriations
SUBSIDY TO GOCC'S
GRAND TOTAL, DA

FY 2015
% INCREASE/
AUTHORIZED FY 2016 NEP
(DECREASE)
APPRO.

48,697,540
625,787
49,323,327

47,882,676
495,096
48,377,772

-1.7%
-20.9%
-1.9%

2,522,472
190,000
2,712,472

4,375,404
636,500
5,011,904

73.5%
235%
84.8%

52,035,799

53,389,676

2.6%

Our 2016 Budget


Including Attached Corporations

Summary by Allotment Class


Php 3.07 Billion
PS
6%
MOOE
57%

Php 30.33 Billion

Php 19.99 Billion


CO
37%

FINEX
0%

Php 2.04 Billion

Our 2016 Budget


Including Attached Corporations

Summary by Allotment Class


Allotment Class
FY 2015 Authorized
(In Thousand Pesos)
Appropriation
MOOE
CO
PS
FINEX
Grand Total, DA

30,689,008
18,610,295
2,733,770
2,726
52,035,799

FY 2016 NEP
30,326,166
19,991,184
3,070,284
2,042
53,389,676

% Increase/
(Decrease)
-1.2%
7.4%
12.3%
-25.1%
2.6%

Our 2016 Budget


DA Summary by Programs
Programs/Projects/Activities
(In Thousand Pesos)

GASS
Support to Operations
Operations
Sub-Total, Programs
Locally Funded Projects
Foreign Assisted Projects
Sub-total, Projects
TOTAL, DA-OSEC
ATTACHED AGENCIES
ATTACHED CORPORATIONS
Retirement and Life Insurance Premium
Special Accounts
AUTOMATIC APPROPRIATIONS
GRAND TOTAL, DA

FY 2015
Authorized
Appropriations
858,493
1,394,811
16,361,820
18,615,124
12,803,547
7,583,065

1,208,931
1,222,115
17,420,542
19,851,588
10,929,249
9,107,676

40.8%
-12.4%
6.5%
6.6%
-14.6%
20.1%

20,386,612
39,001,736
9,695,804
2,522,472
216,563
599,224
815,787
52,035,799

20,036,925
39,888,513
7,994,163
4,375,404
248,207
883,389
1,131,596
53,389,676

-1.7%
2.3%
-17.6%
73.5%
14.6%
47.4%
38.7%
2.6%

FY 2016
NEP

% Increase/
(Decrease)

Our 2016 Budget


By Key Programs and Projects
KEY MAJOR PROGRAMS &
PROJECTS

FY 2015
AUTHORIZED
APPRO.

FY 2016
NEP

% INCREASE/
(DECREASE)

Rice Program

7,003.5

7,060.3

0.8%

Livestock Program

1,616.2

1,172.6

-27.4%

Corn Program

2,296.5

2,249.4

-2.1%

High Value Crops


Development Program

2,199.7

2,918.6

32.7%

636.4

635.0

-0.2%

Fisheries Program

4,567.1

4,360.5

-4.5%

Philippine Rural Development


Project

7,328.4

9,062.8

23.7%

Farm-to-Market Roads

6,250.0

7,051.2

12.8%

31,897.7

34,510.4

8.2%

Organic Agriculture Program

Total, Key Programs and Projects

Our Priority
Legislative Agenda

Our Legislative Agenda

National Land Use Act


An Act Liberalizing the Export of Rice, Corn,
and Other Grains and Related Agricultural
Products
ACEF Extension Act
Philippine Halal Act
An Act Strengthening the Philippine Crop
Insurance Corporation

Department of Agricultures
FY 2016 Plan and Budget Proposal
A presentation for the members of the House of Representatives Committee on Appropriations

Secretary Proceso J. Alcala


25 August 2015

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