Prices received by farmers for their produce rose by almost 5 percent in 2017, as traders were forced to pay more for some crops that recorded declines in output, according to the Philippine Statistics Authority (PSA).
In the PSA’s latest report, titled “Performance of Philippine Agriculture,” garlic recorded the biggest annual hike in farm-gate prices at 66.42 percent. Traders bought garlic at P85.82 per kilogram (kg) last year, from P51.57 per kg in 2016. While the garlic output of 7,750 metric tons (MT) last year was higher by 3.76 percent, it was not enough to meet local demand.
Data from the PSA showed that traders paid more for mangoes, as the average farm-gate price rose by 37.26 percent to P39.31 per kg last year, from the previous year’s P28.51 per kg. Mango production in 2017 fell by nearly 10 percent to 737,030 MT, from 814,050 MT.
The farm-gate prices of eggplant, coffee, coconut, rubber, hogs, duck and seaweed also recorded double-digit increases, according to data from the PSA.
In the fourth quarter alone, the PSA said average farm-gate prices went up by 6.91 percent, with the crops subsector posting a gain of 4.28 percent.
According to the PSA, traders increase their buying price for rice by 6.13 percent in the October-to-December period as they anticipated the increase in market price due to the diminishing inventory of the National Food Authority.
According to the PSA, traders also bought corn at a higher price because of the sustained demand for the crop for feed use, and because production was lower.
The PSA said the farm-gate prices of coconut, banana and pineapple rose in the fourth quarter due to the higher demand from food processors, local vendors, institutional buyers and tourists.
At current prices, the gross value of agricultural production rose by nearly 4 percent to P1.71 trillion in 2017, from the previous year’s P1.57 trillion, according to PSA data.
The value of crops output reached P965.12 billion last year, 3.14 percent higher than the P881.42 billion recorded in 2016. Palay production was valued at P349.18 billion, 14.64 percent higher than the previous year’s P304.59 billion.
In the fourth quarter alone, agriculture grossed P500.4 billion, 9.27 percent higher than the previous year’s record. The gross value of output in the crops subsector amounted to P289.3 billion, representing a 7.05-percent annual expansion.
According to the PSA, palay recorded a 10.76 percent gain in the gross earnings because of improvements in the volume of production coupled with higher prices. Gross receipts from corn grew by 27.81 percent due to a significant increase in price in the fourth quarter.