Overview of the Philippine Agriculture.pptx

About Intro to AGriculture

1. PHILIPPINE AGRICULTURE OVERVIEW OF

2. The Philippines stands as one of the world's largest island archipelagos, comprising over 7,100 islands rich in natural resources. As part of the 'Pacific Ring of Fire,' this nation: Features a mountainous landscape shaped by volcanic activity Experiences frequent seismic events Enjoys a tropical climate characterized by: High annual temperatures Elevated humidity levels Abundant rainfall

3. Country Profile: Official Name: Republic of the Philippines Capital City: Manila Total Land Area: 300,000 square kilometers Demographics: Population: 116.2 million (2024) Growth Rate: 1.52% annually Life Expectancy: 69.9 years Economic Indicators: GDP per Capita: $3,668 GDP (PPP): $9,695 Inflation Rate: 2.3% (October 2024)

4. Economic Sectors: Services: 61.22% Industry: 29.23% Agriculture: 9.55% Land Utilization: Agricultural Land: 41% Arable Land: 18.2% Permanent Crops: 17.8% Permanent Pasture: 5% Forest Cover: 25.9% Other Uses: 33.1% Major Agricultural Areas: Coconut Plantations: 3.3 million hectares Rice Fields: 2.5 million hectares Corn Fields: 1.4 million hectares Sugarcane Plantations: 0.4 million hectares Key Industries: Electronics Assembly Textile & Footwear Pharmaceuticals & Chemicals Food Processing Wood Products Petroleum Refining Fishing & Marine Products

5. Agricultural Production: Major Food Crops: Rice and Corn Banana and Mango Pineapple and Cassava Commercial Crops: Sugarcane Coconuts Livestock & Fisheries: Pork and Beef Eggs Fish Natural Resources: Precious Metals: Gold and Silver Industrial Metals: Copper and Nickel Cobalt Other Resources: Timber Petroleum Salt Export Profile: Primary Exports: Semiconductors & Electronics Transport Equipment Garments Copper Products Petroleum Products Coconut Oil Fresh Fruits Key Export Partners: East Asia: Japan (21%) China (12%) Hong Kong (8%) South Korea (4%) Taiwan (3.8%) Southeast Asia: Singapore (6.2%) Thailand (4.3%) North America: United States (15%)

6. 01 AGRICULTURE AS PILLAR OF PHILIPPINE ECONOMY THE AGRICULTURAL SECTOR EMPLOYS ABOUT 23.2% PERCENT OF THE POPULATION BUT CONTRIBUTES ONLY 8.6 PERCENT OF GDP. ALMOST 9.7 MILLION FARMERS CULTIVATE 7.2 MILLION HECTARES, OR ABOUT 24% PERCENT OF THE TOTAL LAND AREA OF THE COUNTRY. 03

7. Key Agricultural Crops: Coconut Leading export crop Major source of rural income Rice (Palay) Primary staple food Critical for food security Maize (Corn) Important livestock feed Secondary food staple Banana Major export earner Year-round production Sugarcane Key industrial crop Supports rural employment

8. RICE IS THE MOST IMPORTANT STAPLE FOOD CROP While yields have increased since the 1960s due to high-yielding varieties and improved farming technologies, Philippine agricultural productivity still lags behind many Southeast Asian neighbors. For example, in rice production, the Philippines averages about 4 metric tons per hectare, compared to Vietnam's 5.8 metric tons and China's 7 metric tons per hectare. Some key points to note: The yield gap remains significant despite technological improvements Main factors limiting yields include: Limited irrigation infrastructure High production costs Frequent natural disasters (typhoons) Fragmented landholdings Limited mechanization Insufficient access to credit and modern farming technologies Post-harvest losses

9. Global Position: 8th Largest Rice Producer Worldwide Major Rice Importer Peak import: 2.45 million tons (2010) Reduced to 860,000 tons (2011) Key Challenges: Population Pressures a. Rapid population growth b. Increasing domestic demand Infrastructure Constraints Limited road networks Insufficient irrigation systems Production Limitations Restricted land availability Limited expansion potential Ceo Of Ingoude Company

10. Agricultural Export Growth: Historical Reference: 2004: US $2.5 billion 2010: US $4.1 billion Recent Performance: 2023: US $7.85 billion (agricultural exports) 2024 Q3: Showing continued growth trend Coconut Industry Status (2024): Export Performance: a. Leading agricultural export b. Major products: coconut oil, copra, desiccated coconut c. Key markets: USA, EU, China Current Challenges: a. Price volatility in global markets b. Aging tree population (average age 50+ years) c. Climate change impacts d. Competition from palm oil Industry Initiatives: a. National Coconut Farmers Registry System b. Coconut tree replanting programs c. Value-added product development d. Organic certification programs Market Trends: Growing demand for: Virgin coconut oil Coconut water Organic coconut products Sustainable sourcing

11. Banana, coconut oil, tuna, pineapple, tobacco and seaweed are the top exports. High quality robusta and excelsa coffees are produced in the country but very little is exported. Philippine Agricultural Exports & Coffee Production Top Agricultural Exports (2024): Fresh Produce Bananas (largest agricultural export) Pineapples (fresh & processed) Processed Products Coconut Oil Canned Tuna Processed Seaweed/Carrageenan Other Exports Tobacco Products Marine Products Specialty markets Coffee Industry Profile: Premium Varieties: Robusta Excelsa Industry Status: High-quality production Limited export volume Focus on domestic market Export Development Opportunities: Current Strengths: Established tropical fruit exports Strong seafood processing Premium coconut products Growth Potential: Coffee export development Value-added processing Organic certification Specialty markets

12. Production Cost Breakdown: Crop Production: Fertilizers & Pesticides: 20-30% Labor & Equipment: ~40-50% Other Costs: ~20-30% Livestock Production: Feed Costs: 70% Other Costs: 30% Veterinary care Housing Labor Key Constraints: Input Dependencies: High fertilizer import reliance Price volatility exposure Limited local production Cost Impact on Farmers: Reduced profit margins Limited investment capacity Productivity challenges Government Response: Input subsidy programs Farmer support initiatives Research on alternative

13. Barriers to agricultural growth, such as high transportation costs, post-harvest losses, inadequate irrigation infrastructure, and limited access to credit, significantly hinder the sector’s potential. High transportation costs, driven by rising fuel prices, underdeveloped road networks, and market distances, reduce competitiveness and profitability, especially for smallholder farmers. Addressing this issue requires investment in rural infrastructure, collective transport solutions, and digital platforms to streamline market access. Post-harvest losses, often reaching up to 30% due to inadequate storage and handling facilities, call for innovative storage solutions, training in harvest techniques, and the establishment of local processing units. Moreover, inadequate irrigation infrastructure, with many regions relying on rain-fed systems, leaves agricultural production vulnerable to climate variability. Upgrading and expanding irrigation, combined with climate-resilient practices like drip irrigation, can boost yield stability. Limited access to affordable credit further exacerbates the challenges, as stringent requirements and complex application processes restrict farmers' financial options. Expanding microfinance access, tailoring loan packages, and fostering digital financial inclusion, along with cooperative-based financing, can bridge these gaps, promoting inclusive and sustainable growth in the sector.

14. As of November 1, 2024 , the agriculture sector has recorded mixed growth rates across various crops. Palay (unhusked rice) production has increased by approximately 4% compared to the previous year, aided by improved seed distribution programs and expanded irrigation coverage. Maize output has grown by 5%, reflecting efforts to meet rising feed and food demand. Sugarcane production reported a significant boost of 20%, primarily due to enhanced mechanization and improved weather conditions. Mungbean production has seen a 10% increase, supported by focused initiatives to promote legume cultivation. Conversely, rubber and tobacco outputs have remained relatively stable, facing headwinds from global market shifts but showing resilience through targeted market interventions. These figures underscore both progress and ongoing challenges in the sector's bid for sustainable growth and increased productivity.

15. According to the Department of Agriculture, the use of quality seeds, rehabilitation of irrigation facilities, improved fertilization, a reduction in pests and diseases, favorable weather conditions, increased in area harvested, and higher prices all contributed to the increases.

16. Top 7 Rice Producing Provinces in the Philippines: Nueva Ecija Isabela Pangasinan Cagayan Iloilo Camarines Sur Maguindanao Top 7 Rice Producing Regions in the Philippines: Region III (Central Luzon) Region II (Cagayan Valley) Region VI (Western Visayas) Region I ( Ilocos Region) Region V (Bicol Region) Region XII (SOCCSKSARGEN) Region IV-B (MIMAROPA)

17. Description Type I- Two pronounced season: dry from November to April, wet during the rest of the year. Type II- No dry season with a very pronounced rainfall from November to January. Type III- Season are not very pronounced relatively dry from November to April and wet during the rest of the year. Type IV- Rainfall is more or less evenly distributed through the year.

18. There are four types of climate base on Modified Corona’s System. Type I Two pronounced seasons, dry from November to April; wet during the rest of the year. The entire province in the western part of the islands of Luzon, Mindoro, Negros, and Palawan. Type II No dry season with a very pronounces maximum rainfall from November to January. The areas covered are Catanduanes , Sorsogon, the eastern part of Albay, the Eastern and Northern part of Camarines Norte and Camarines Sur, a great portion of Eastern part of Quezon, the eastern part of Leyte and a large portion of Eastern Mindoro.

19. Type III No very pronounced maximum rain period. Only a short dry season lasting from one to three months. Covers the Western part of Cagayan (Luzon), Isabela, Nueva Viscaya , the southern portion of Mountain Province, Southern Quezon, the Bondoc Peninsula, Masbate, Romblon, Northeast Panay, Eastern Negros, Central and Southern Cebu, Part of Northern Mindanao and the most Eastern Palawan. Type IV Rainfall more or less evenly distributed throughout the year. There is no dry season and no very pronounced rainy. Covers Batanes Provinces, Northern Luzon, Western Camarines Norte and Camarines Sur, Albay, Eastern Mindoro, Marinduque, Western Leyte, Northern Negros, and most of Central Eastern and Southern Mindanao.

20. December-May This interval is hot. It’s the dry season. The March-May period is the hottest. The best time to go to beaches and water resorts. The prevailing wind in this period is the Amihan , which comes from the east.

21. June-November This period is rainy. It’s the wet season, it’s the typhoon regime. During this period, an average of 21 typhoons hit the country. A few times, it reaches 23. Typhoons in November are much less and when they come, they are really ugly and destructive. The prevailing wind in this period is the Habigat , which comes from the west.

22. Of the total rainfall recorded annually, 47% is attributed to the occurrence of the tropical cyclones (especially from June to December). Tropical cyclones are generally from the North Pacific Ocean region and generally move in West Northern direction towards the country. The annual humidity ranges from 74% to 85% while the annual mean temperature is between 19.5 degree Celsius to 28 degree Celsius and annual rainfall ranges from 1,893 to 3,855.2 millimeters.

23. The National Bureau of Soil and Water Management has identified nine Soil Orders in the Philippines. These are: Inceptisols (39.9%) Ultisols (26.6%) Alfisols (17.1%) Entisols (8.1%) Vertisols (4.5%) Mollisols (3.3%) Andisols (0.23%) The majority of the Philippines’ soil resources are best suited for cultivated crops ( Inceptisols ) , some soil types ( Entisols , Vertisols , and Mollisols ) are economically important for rice and other major crop production. Some are considered problem soils ( Ultisols ) because of high erodibility and low nutrient content but still has potential for agricultural production.

24. An average of 20 typhoons enter the Philippines in a year. Public Storm Warning Signal PSWS #1- Tropical cyclone winds of 30-60 km/h are expected within the next 36 hours PSWS #2- Tropical cyclone winds 60-100 km/h are expected within the next 24 hours. PSWS #3- Tropical cyclone winds of 100-185 km/h are expected within the next 18 hours PSWS #4- Tropical cyclone winds of greater than 185 km/h are expected within 12 hours

25. The Gross Domestic Product (GDP) is one of the primary indicators used to gauge the health of a country’s economy. It represents the total dollar value of all goods and services produced over a specific time period.

26. 12 Problems of Agriculture in the Philippines The Philippines is now dealing with a number of issues, particularly in the agricultural sector. These are a few of the issues we believe require immediate attention. 1. Inadequate Methods for Technology Transfer Their agricultural technology does not receive enough attention. Their nation lacks the equipment and technology to enhance its output. 2. Natural Catastrophes and Global Warming Typhoons and earthquakes are two common natural calamities in this nation. What is hidden is the fact that the majority of crops cannot withstand such harsh weather. The repercussions of encroaching climate change, such as droughts, can also have an impact on agriculture. Natural calamities and climate change are unavoidable. The Philippine President is required to seek advice on national development planning from the National Economic and Development Authority (NEDA). They offer professional assistance in coordinating the development of national plans and policies for the agriculture, natural resource, and agrarian reform sectors. 3. Fewer Farm Workers Due to the nation’s rapid industrialization, many people choose to labor in the industrial sector rather than cultivate the land for food production. The farmers are getting older, and there aren’t many taking their place. 4. Inappropriate and Costly Agriculture Equipment for Small Farmers Farm machinery has grown to be a significant financial burden for farmers because they do not have much money to spend on their demands. 5. Critical Programs On Effective Irrigation Systems Are Not Present. Agriculture depends on irrigation in a big way. Particularly during the warm seasons, irrigation aids farmers in maintaining the moisture and hydration of their crops. The crops would wilt and the soil would grow dry without irrigation. 6. Inadequate Soil, Pest, and Disease Control Strategies A significant issue in the Philippines’ agricultural industry has been pests and crop diseases. Government financing is lacking for it. Famine would swoop across the nation if these pests and diseases are permitted to get out of control.

27. 7. 78% Of Farms Are Smaller Than 3 Hectares In Size. The majority of the farms have already reduced in size as a result of the rapid population growth. As a result, the nation must sacrifice its agricultural industry to develop more homes. The Philippine Government launched a number of Land Reform Programs to address the farmers’ shortage of resources and lands. Similar to Republic Act (RA) 6657, which was put into effect during Cory Aquino’s administration and intends to redistribute lands both privately and publicly while providing necessary support services to aid the beneficiaries in becoming independent small proprietors. 8. The Housing and Industrial Sectors Are Encroaching On Land.  This is very similar to the previous example. In essence, the identical factors that led to the previous crisis also produced this one. 9. African Swine Fever The ASF’s tenacity continues to hold the nation captive, and the hog sector has collapsed as a result of the ASF’s rapid and extensive destruction. The DA compensated local hog farmers while taking action to restrict the ASF virus’s spread through preventative culls. The DA gave impacted swine farmers more than P2 billion in compensation. Together with the Philippine Ports Authority, Bureau of Customs, and local government entities, the DA has implemented more stringent biosecurity control measures to protect the nation from transboundary animal illnesses and their spread within Philippine boundaries (LGUs). The Secretary claims that this will become standard procedure to stop or at the very least reduce the hazards of future transboundary animal diseases. In addition, the Department worked with both public and commercial partners to create an ASF vaccination that is unique to the Philippines. 10. Rice Tariffication Law The RTL’s implementation since 2019 is regarded as the Duterte administration’s zenith. It has sparked a great deal of controversy, including claims that the DA is anti-farmers. Restrictive trade and regulatory regulations have slowed the development of the nation’s rice industry since the 1980s. The National Food Authority (NFA), which has monopoly control over imports and prices, has dominated the rice market for more than 30 years. As a result, rice farmers continue to be the poorest of the poor while Filipino consumers continue to pay exorbitant rates for rice on the market and the government continues to subsidize NFA losses. A significant shortage of rice that increased inflation by a ratio of 10 occurred in 2018. Being a rice-eating nation, the Philippines, the impacts were depressing because rice is a staple of every Filipino family’s budget, regardless of wealth. 11. The Ukraine-Russia War While the nation has only recently begun to recover from these crises, it required another catastrophe for the Philippines to enter yet another devastation—possibly the worst of them all—the confrontation between Russia and Ukraine. Food insecurity has increased dramatically as a result of this prolonged war. With the two power countries at conflict being among the world’s breadbaskets, food instability is now likely to become an even more dangerous trend. As a result, export activities are threatened, making dependent nations like the Philippines vulnerable. 12. Problems with Local Production The rapid population expansion is outpacing the ability to produce enough food. The Philippines’ population growth rate was anticipated by the Philippine Statistics Authority (PSA) to be 1.4 percent in 2019, whereas the agriculture industry only saw a meager 0.5 percent growth in late 2020. These numbers unequivocally demonstrate the mismatch between food production and population increase, whereby the latter outpaces the former. Despite the impossibility of current population control tactics, the government should instead concentrate on increasing domestic food production.

28. The latest Philippine Development Plan (PDP) 2023-2028 emphasizes improving productivity and efficiency in agriculture and fisheries as a key strategy to reduce poverty and improve the welfare of about 6.4 million individuals reliant on these sectors. By modernizing agriculture and expanding agribusiness, the government aims to boost food affordability and security, ensuring more inclusive growth. This plan also targets strengthening rural livelihoods, revitalizing local industries, and enhancing market integration

29. To enhance food security and improve rural incomes, the Philippine government is focusing on upgrading rural infrastructure, such as roads, post-harvest facilities, and markets, to improve connectivity and reduce losses. Strengthening extension services aims to boost farmer access to training and innovations, while expanding credit opportunities is designed to address financial barriers. Increased public and private investment in agricultural research is being encouraged to drive productivity, and integrated approaches to water and land resource management are prioritized to promote sustainable practices. Efforts to restore fishing grounds and enhance crop and fisheries insurance schemes further aim to build resilience against climate risks and market volatility​.