The agriculture sector rebounded with a 2.87-percent growth in the third quarter from an 0.87-percent contraction a year ago, data from the Philippine Statistics Authority show.
It was also faster than the 0.1-percent growth registered in the second quarter on increased crop harvests and poultry production.
“This is a much better performance. We will continue to enhance the proper and sustained implementation of programs and projects of the Department of Agriculture to further elevate the growth of the agriculture sector,” Agriculture Secretary William Dar said in a statement.
“We were expecting between 2 percent and 2.5 percent. This shows that the farmers and fishers are showing a resilient performance with the programs and projects of the DA,” Dar said.
The sector which accounts for about 7 percent of the gross domestic product also grew by 0.77 percent in the first three quarters, an improvement from the 0.14-percent increment in the same period last year.
Crop production which accounts for 45.19 percent of the total agricultural output rose 2.01 percent in the third quarter. Among the major crops, production of corn increased by 23.47 percent while palay production decreased by 4.53 percent amid low buying prices offered by local traders.
The PSA said that because of the lower volume of production and buying prices, the value of palay production declined by 29.82 percent in the third quarter.
“The presence of low-priced imported rice in the market also contributed to the drop in palay price,” the PSA said.
Corn production recovered from the previous year’s decline and posted a 23.47-percent increment in the third quarter. “Expansion of harvested areas was noted in Cagayan Valley as corn farmers recovered from the damage brought by typhoon “Mangkhut” [Ompong] in 2018,” the PSA said.
Coconut output barely grew by 0.27 percent in the third quarter while tobacco production increased 12.77 percent as additional areas of native variety were harvested in Northern Mindanao in response to higher price during the period.
Sugarcane registered the biggest drop in production at 60.01 percent with Western Visayas reporting stunted growth of canes and contraction in harvest area because of drought. “The intense heat during the vegetative stage and lesser application of fertilizer resulted in smaller canes harvested in Central Visayas,” the PSA said.
Meanwhile, livestock production grew 1.63 percent in the third quarter and contributed 18.67 percent to the total agricultural output. Uptrends in production were exhibited by hog at 1.96 percent and dairy at 6.48 percent, before the outbreak of the African swine fever.
Poultry production expanded 8.41 percent in the July-September quarter and represented 19.44 percent of the total agricultural output. All poultry commodities recorded production increases.
Fisheries production which accounted for 16.70 percent of the total agricultural output grew by 0.56 percent in the third quarter, led by increased milkfish, skipjack and seaweed output.
“At current prices, the total value of agricultural production amounted to P395.3 billion, 3.64 percent lower than the previous year’s record,” the PSA said.
Prices received by farmers decreased by an average of 6.33 percent in the third quarter, pulled down by the 26.49-percent decline in buying prices of palay.