Reviving the Philippine Agriculture

Posted by Kirhat | Tuesday, November 15, 2011 | | 3 comments »

Philippine Agriculture

Most foreigners and a few local residents of the Philippines are still thinking that the country is primarily an agricultural economy. Data, however, will show that, strictly speaking, it is not.

Products generated by the agriculture, fishery and forestry sectors account for only one-fifth (20 percent) of the economy's aggregate domestic output (GDP). Ever since the 1960s, the direct share of agriculture in the GDP had fallen below one-third, and by 1981, the sector's share had decreased to only 23 percent. Looking at the average growth per year, agriculture average only 1.7 percent per annum, which is way below the GDP average growth of 2.6 percent annually.

The importance of agriculture appears larger when it comes to employment, with nearly two-fifths (i.e. 35.8 percent in 2006) of jobs currently coming from the sector. However, agricultural employment has been showing a declining trend (1.9 percent annual average) as it hit 33.2 percent in 2010.

The Bureau of Agricultural Statistics (BAS) reported that the bulk of agricultural employment came from the Western Visayas with 1.16 million persons employed. In comparison, Central Luzon, the Bicol region, Central Visayas, Northern Mindanao, South Cotabato-Saranggani-General Santos City (Socsargen), and the Autonomous Region in Muslim Mindanao — overall — had only employed between 800,000 and 860,000 persons.

The bureau also noted that the National Capital Region (NCR) had employed the least number of agricultural workers at 25,000 last year, an average decline of 8 percent in the last five years — whereas the annual reductions in other regions ranged only between 0.2 to 1 percent.

The BAS also reported that child-workers, 5 to 17 years old, totaled 1.35 million in the agriculture sector, corresponding to 61.3 percent of the country's total working children.

Agriculture also displays the most erratic growth among the country’s major sectors, with growth rates tending to fluctuate widely from quarter to quarter. While the sector’s 2011 real GDP growth performance is not yet available, the most recent quarters have seen dramatic slowdowns from previous quarters, due mostly to unfavorable weather conditions.

It is clear by now that after 20 years of neglect, there is an unmistakable trend of deterioration in the performance of the Philippine agricultural sector. The deterioration is much more evident when figures are taken against the performance of neighbouring countries in the region. While the picture is not devoid of some bright spots, the general picture remains disturbing, and implies only one recommendation – the urgent need for determined corrective action.

The present administration of President benign Aquino III needs to reverse the decline of the country’s primary industry by adopting a mix of policy reforms, improved implementation of existing policies and programs, capacity-building, market reforms, improved governance and strong negotiation with trading partners. These are all daunting tasks that government alone cannot undertake. It is, therefore, a no-brainer that the private sector and civil society also has to do their part to modernize Philippine agriculture. This is not the time to bicker and complain by protesting in the streets and inconvenience others. It is now the time to contribute in making Philippine farms efficient and competitive as global competition intensifies into the next century and millennium.

3 comments

  1. Joe-ann // November 15, 2011 6:00 PM  

    well said, it's about time to revive our agriculture, every civilization began with agriculture,even how sophisticated and modern a country could have become,agriculture should not be ignored as to have a dependable source of food. Hope this time, the effort to revive works!

  2. Master Blogger // November 18, 2011 4:51 AM  

    How I wish that the government will give more budget in our agriculture, I remember what my Dad said to me, Philippines was the number one supplier of rice in Asia but now look where we are!
    Zero Dramas

  3. Health Buzz // November 18, 2011 2:05 PM  

    Very well said and very informative as well. Growth of agriculture is a key factor in development for any country.

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