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BusinessMirror.com.ph

Farm growth for 2011 seen at 3.5%

DESPITE breaching the 5-percent growth level in the first half of the year, the Center for Food and Agri Business (CFA) of the University of Asia and the Pacific (UA&P) expects farm growth to settle at 3.5 percent in 2011.

CFA Executive Director Rolando Dy said this is largely due to the damage caused by the recent Typhoons Pedring and Quiel coupled with the so-called base effect on fourth-quarter farm sector performance.

“For one, the destruction caused by Typhoons Pedring and Quiel will impact on output. Also the closure of tuna-fishing grounds will pull down fisheries production,” said Dy in an interview.

“Fishkills” in major fish-producing areas in the country as well as the entry of imported chicken and pork could also adversely affect production,” he said.

Year-on-year farm growth in the fourth quarter of the year, he said, may not match the performance in 2010 due to the so-called base effect caused by the recovery of the sector from October to December last year.

In 2010 the output of the country’s farm sector declined by 0.12 percent due to the adverse impact of the El Niño weather phenomenon on farmlands.

The sector recovered in the first half of 2011, with output increasing by 5.48 percent on the back of increases in the output of major crops such as palay and corn. Paddy-rice output went up by 14.45 percent, while corn production increased by 37.03 percent.

The chief of the CFA called for a comprehensive strategy that would address farm production and ensure the continuous availability of raw materials for manufacturing. This, he said, is crucial for boosting agribusiness in the Philippines.

Dy, one of the authors of the book titled The Business of Agribusiness: From the Roots to the Fruits, also pointed to transport problems as another challenge confronting aspiring agribusiness entrepreneurs.

The book was launched by UA&P-CFA and featured familiar brand names such as Jollibee, Nestlé, KFC, Goldilocks, Century Tuna, and Oishi snack foods. It covered the companies’ activities, markets, and operations and is a “must read” for companies engaged in agribusiness and those that are contemplating on entering the sector.

 


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