Think tank sees slight farm recovery from 2010 contraction

Think tank sees slight farm recovery from 2010 contraction

by UA&P News Desk on December 8, 2010 - 3:35 pm

From Business World

Crops by Michael Oh

THE COUNTRY’S farm sector is expected to recover slightly in 2011 from a possible contraction this year, an agriculture think tank said in its yearend briefing yesterday.

The University of Asia and the Pacific Center for Food and Agri Business (UA&P-CFA) expects the farm sector to pick up by 2.5%-3.5% in 2011, driven by growth in production of palay, corn and banana, as well as the livestock, poultry and fishery sub-sectors.

“Expectations are high that agriculture will perform definitely better in 2011. Sector growth is projected at 2.5%-3.5%,” UA&P-CFA Executive Director Rolando T. Dy said during his group’s Year-End Food and Agri Business Conference yesterday at the UA&P in Pasig City. “Some growth will be experienced in palay, corn and banana, which will more than offset the possible losses in sugarcane and coconut.”

UA&P-CFA has downgraded its farm sector outlook for 2010 to a range of -0.5% to 0.5% from an original 0.5%-1.5% after the government released data showing the impact of the dry spell that lasted the first half.

The Agriculture department reported last Nov. 15 that farm sector output contracted by 2.62% in the nine months to September.

The crops sub-sector, which accounted for 44.36% of total agriculture output in that period, contracted by 7.24%.

The poultry sub-sector, which contributed 15.5%, grew 3.01%.

Livestock, which accounted for 12.74%, increased by 1.07%, while fisheries, which accounted for 27.37%, grew 0.69%.

Production of palay, which accounted for nearly 13% of total farm output as of September, dropped 14.95%, year on year, to 9.27 million metric tons (MT). Palay output for 2010 is expected to reach 16.02 million MT, 1.35% short of the Aug. 20 downgraded projection of 16.24 million MT. Palay production last year was recorded at 16.26 million MT.

Read full article at BWorldOnline.com >

Photo: Crops by Michael Oh
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