Agriculture output down 1.27% in Q2 —PSA

The Philippine agriculture sector contracted in the second quarter of the year, driven by a decline in crop production.

Data released by the Philippine Statistics Authority (PSA) on Wednesday showed agricultural output contracted by 1.27% in April to June.

In the first quarter of 2019, the sector grew by 0.12%, and by 1.08% in the second quarter of 2018.

In terms of the value of production, the sector also posted a decline of 5.20% at P424.6 billion year-on-year.

“This was attributed to the decline in crops production,” the PSA said in an accompanying statement, as the subsector declined by 5.70%.

Rolando Dy, executive director of the University of Asia and the Pacific’s Center for Food and Agri-Business, expected the agriculture sector to perform poorly.

“I projected zero to negative 1,” he said, citing the impact of weather phenomenon El Niño on crop production.

Latest estimates by the Disaster Risk Reduction and Management Operations Center of the Department of Agriculture placed the damage to crops due to El Nino at P4.04 billion as of April 26.

The crops subsector, which contributed 47.42% to the total output, saw a drop in the value of production at P215.5 billion—down 11.09% year-on-year.

The crops subsector, which contributed 47.42% to the total agriculture output, also saw a drop in the value of production at P215.5 billion, down 11.09% year-on-year.

Crop production was led by a decline in palay (unhusked rice) output, which fell by 5.82%. Corn dropped 8.73%.

Livestock output was up 3.22%), poultry by 4.14%), and fisheries by 1.90%.

The agriculture sector may contract further in the third quarter as the rainy weather may have its own impact on production.

“Third quarter is dicey for crops and could be compensated for by livestock and poultry,” said Dy. —VDS, GMA News