Traditionally, third quarter agricultural production is lower due to the strong storms that visit the Philippines during this period. The July-to-September period is also the lean season for rice, which accounts for about 15 percent of farm output at any given time. During this period, rice planters allow the weather to do its work and bring rain in key areas where the water-loving crop is planted.
That is why the latest agricultural production data released recently by the Philippine Statistics Authority (PSA) has delighted the government, even if output grew at a slower pace of 0.7 percent, from 2.3 percent last year. Set against the backdrop of the Covid-19 pandemic, when health protocols including social distancing limited business activity, the third quarter data gave government officials a reason to celebrate.
Production of the country’s staple food—rice and corn—rose 15.2 percent and 3.5 percent, respectively, during the period. This should assure us that the important grains consumed by Filipinos will remain affordable and accessible, particularly for the poor. Fisheries, which used to buoy farm growth in the past, also recorded gains, as well as other crops, including vegetables.
What is worrisome, however, is the data on livestock and poultry production. According to the PSA, livestock production declined by 7.6 percent on the back of a 7.7-percent drop in hog output. The poultry subsector also recorded lower production at 3.8 percent as chicken meat output contracted by 3.8 percent in the third quarter.
Hog production, in particular, was largely affected by African swine fever, which ravaged pig farms nationwide. The Philippines was forced to cull thousands of hogs, including sows, as a way of controlling the spread of the disease that is fatal to pigs. In its eighth follow-up report to the World Organization for Animal Health, Manila said the Philippines has culled a total of 250,877 pigs, about 2 percent of the estimated 12 million local hog population (See, “PHL culls more hogs to prevent spread of deadly pig disease,” in the BusinessMirror, March 30, 2020).
As for poultry, the United Broiler Raisers Association said their members were forced to reduce production to ease the glut in supply caused by the drop in purchases from major institutional buyers, such as hotels and restaurants (See, “Ubra: Farm-gate price of broiler recovers after growers cut production,” in the BusinessMirror, October 12, 2020). Pending the improvement in demand, poultry raisers are setting lower production targets to prevent oversupply, which cuts farm-gate prices. The losses incurred by raisers during the lockdown prompted them to call for the suspension of chicken imports (See, “Poultry, allied sectors: We lost P95 billion from chicken meat imports,” in the BusinessMirror, July 17, 2020).
These figures do not bode well for a country where pork and chicken are popular and widely consumed. As it is, consumers are now seeing higher pork prices despite repeated assurances from the government that the country has enough pork supply. The government must continue investing in programs and initiatives, such as a restocking program, to avoid competing for imported pork with other nations that were also hit by the fatal swine disease. The hog industry needs government support, now more than ever.