Philippine Agriculture

Presenter
Roland Miaga

In partial fulfillment for the subject MPA – 614

Rural and Urban Development

Cebu Technological University

Dr. Eugenio Ermac

Professor 6
Trends in Agriculture
Philippine grain supply is constrained
Grain consumption rising with population growth
Biofuels are driving agricultural land demand
(and cost) higher
Continuous development is steadily decreasing
per capita supply of arable land
Water shortages are reducing farm productivity
Demand increasing for fresh fruit and vegetable
products
Philippines ideally positioned –
geographically, climactically - to meet these
opportunities
http://www.nfa.gov.ph/images/files/statistics/averageprices.pdf
SWOT Analysis
STRENGTH
Availability and Functionality of Irrigation
Systems in the region.
Well equipped extension workers and local
farmer technicians
Adequate number of seed production
areas and functional seed growers
cooperatives.
Active participation and strong support of
Local Government Units,
Farmers/Irrigators Associations and other
Stakeholders
WEAKNESSES
Low quality seed utilization (CS & Hybrid) of
farmers in the region.
Widespread practice of direct seeding and
other traditional/conventional farming
practices.
Non-synchronous planting at some Communal
Irrigation Areas.
Silted irrigation canals.
Increase seepage of irrigation water due to
earth canals.
OPPORTUNITY
Region 12 is graciously spared from devastating
calamities.
Increase farmers’ access to better market price
due to NFA Procurement and Sikat Saka Program.
There is a significant number of potential
irrigated areas to be generated from rainfed
lowland.
Improvement of rainfed Upland Areas are
potential in the propagation or increase of
production of quality traditional varieties for
export.
THREAT

 Land conversion into housing and commercial

sites.
 Shifting into plantation crops.(Banana, Palm Oil,
etc.)
 Unregulated water usage of private companies
for plantation crops.
 Unpredictable pest, disease and unpredictable
weather due to climate change
 High cost of farm inputs.
 Inefficient water supply due to siltation of
irrigation canals because of mining activities in
the upland and quarrying activities downstream.
 Overview : Philippine Agriculture
Total Land Area 29.8 M Has

Agricultural Land Area 9.7 M Has

Agricultural Gross Output (2012) US$ 19 B

Agriculture Output as a % of GDP (2012) 8%

Labor Force employed in Agriculture(2012) 32%

Agricultural Loans - % to Total Lending (2012) 2%

Agricultural Exports 2012 (FOB) US$ 5.0 B

(2% of GDP)
Agricultural Imports 2012 (CIF) US$ 8.1 B

Source: Bureau of AgriculturalStatistics

 Philippines
Share of Agricultural Exports to Total Exports
1980-2018

40% 38%

35%

30%

25%
21%
20%

15%
11%
10%
10% 8% 8% 8%
6%
5%
5%

0%
1980 1990 2000 2007 2008 2009 2010 2011 2012
 Major Philippine Crops
2008-2018
300

250
Bln Php, Current Prices

Rice
200 Corn
Coconut
Sugarcane
150
Banana
Pineapple
100 Mango
Cassava
50 Rubber

-
2008 2009 2010 2011 2012
Leading Philippine Agricultural
Exports
 ASEAN : Export of Agricultural Products
1990-2018
50.0

40.0

US$ (B) 30.0

20.0

10.0

-
1990 2000 2008 2009 2010 2011
Indonesia 4.2 7.8 32.9 25.3 36.0 47.0
Malaysia 7.5 8.0 27.8 20.9 28.9 39.0
Philippines 1.7 2.0 4.0 3.2 4.1 5.4
Vietnam - 4.0 14.6 13.4 13.7 22.9
Thailand 7.8 12.2 31.7 28.0 35.1 48.0
 ASEAN: Foreign Direct Investment Inflows
2006-2018

20.0
US$ (B) 16.0

12.0

8.0

4.0
Phili pines
C mbodia
-
2006 2007 2008 2009 2010 2011
Cambodia 0.5 0.9 0.8 0.5 0.8 0.9
Indonesia 4.9 6.9 9.3 4.9 1.8 19.2
Malaysia 6.1 8.5 7.2 1.4 9.2 12.0
Philippines 2.9 2.9 1.5 2.0 1.3 1.3
Thailand 9.5 11.3 8.5 4.9 9.1 7.8
Vietnam 2.4 6.7 9.6 7.6 8.0 7.4

Source: ASEANSecretariat
 Share of Agriculture in the National
Government Expenditures
2008-2018
7.50%
7.18%
7.00%

6.50%

6.00%
5.85%
5.68%
5.50% 5.48%

5.00%

4.50%

4.00%

3.50% 3.54%

3.00%
2008 2009 2010 2011 2012
Constraints to Philippine Agriculture

Underinvestment in Agricultural Sector

Research and Development is low priority
Lack of agricultural credit support and ability of
farmers to access capital
Comprehensive Agrarian Reform Program
(CARP) has led to underinvestment and
restriction on farmland consolidation
Limits to foreign ownership of land
Corruption (PDAF, etc.)
 Investment Opportunities
High value crops
- Coffee, Avocado, Squash, Red Hot Chili,
Peanuts, Mongo Beans
New varieties of coconut (higher yields and faster
maturities), coconut water
Intercropping (cacao with coconut)
Convert commodities to specialty products
Move up value chain (more finished products)
Agri - tourism
 Policy Recommendations
New Free Trade Agreements present immense new market
opportunities (Trans-Pacific Partnership)
Aggressively work with DA to develop:
- Quarantine protocols
- Treaties with importing countries
- Reduction of duty rates for Philippine Agricultural Products
Invest in Agricultural Education
- Average Philippine farmer is 57 with only 5 years education
- Emphasize Agricultural Training in High Schools
Reduce domestic shipping/logistics costs
- Review cabotageprovisions
- Complete Roll-on / Roll-off system
Modify Land Ownership Rules to encourage more scale
 Summary
Philippine Agriculture has enormous potential
- Favorable geographic location to export markets
- Large supply of arable land
Agriculture has been underinvested in Philippines
for last 3 decades
ASEAN neighbors
(Thailand, Indonesia, Malaysia, Vietnam) have
seen huge export growth
Emphasizing some basic policy changes
(logistics, protocols, land consolidation,
agri-credit) can be important drivers of
accelerated agricultural growth
Thank You