Current Status of Philippine Agriculture 2022
Philippine agriculture is not yet self-sufficient in rice and corn production, but is increasing. However, fisheries have been suffering due to a lack of nutritious feeds, so production of these commodities has decreased. However, exports of meat and poultry products have increased in recent years to offset the shortfall in domestic production. This is a positive sign for the future of Philippine agriculture. The government is working on strategies to increase production and reduce imports of these commodities.
Production of palay and corn in Philippine agriculture has slightly increased
The production of palay and corn in Philippine agriculture slightly increased during the first quarter of 2022, according to data released by the Philippine Statistics Authority. According to PSA, the volume of palay harvested in the first quarter of 2022 was 4.64 million metric tons, or 0.2% higher than what was harvested in the same quarter last year. Meanwhile, the amount of corn harvested was estimated at 2.46 million tons, up from 2.45 million tons in the first quarter of 2021.
Rice production in the Philippines is expected to remain at 12.4 million tonnes in 2022-23. Meanwhile, imports are estimated at 2.8 million tonnes, about 200,000 tonnes less than in 2021-22. In addition, wheat imports will decline by 3.3% to 6.3 million tonnes, due to rising global prices and the conflict in the Black Sea. Furthermore, feed demand is projected to be at 2.4 million tonnes, down 300,000 tonnes from 2021-22.
In 2022, the Philippine government expects a 7-8 percent growth in the economy, a return to growth that was seen in 2017. In the first quarter of 2022, the country’s GDP increased by 8.3 percent, reversing its downward trend in 2018. While it remains difficult to project the country’s growth trajectory beyond that year, domestic demand has the potential to sustain the recovery momentum. Nevertheless, there are a number of risks to the country’s economy. These include external risks like the Russian invasion of Ukraine, economic slowdown in China, and U.S. Federal Reserve rate hikes. In addition, domestic risks include rising inflation and budget deficits.
Fisheries sector has declined due to lack of nutritious feeds
There have been several problems associated with the fisheries sector in the Philippines. The primary problems include low productivity and low government support. The situation is even worse in rural areas where migrant workers are relied upon for survival. Agricultural productivity has also stagnated, and the country has been facing stiff competition from imports of cheaper food. In addition, periodic floods and droughts have destroyed crops.
Another major problem is overfishing. Overfishing is the process of overfishing, a condition whereby a fishing vessel catches more fish than the fishery’s capacity to replenish. The situation is now so severe that one-third of assessed fisheries worldwide are overfished. This situation is closely linked to bycatch, the catch of unwanted sea life during fishing for a specific species. As a result, billions of fish are being lost every year. This also affects sea turtles and cetaceans.
Capture fisheries are more important sources of food and livelihood than aquaculture. These fish are culturally and nutritionally valued by local communities and provide the bulk of livelihood. Capture fisheries are still the main source of food for many poor people. But aquaculture is a complementary alternative.
Meat and poultry product exports have increased significantly in recent years to make up for shortfalls in domestic production
As the demand for animal protein in Asia grows, world trade in animal products is increasing. This is opening up new markets for major exporting countries. For example, the EU is expanding exports of dairy products, pig meat and beef to Asia. However, it has seen limited success exporting quality chain products, as many developing countries prefer low-cost alternatives.
Meat and poultry products exports represent about one-third of US agri-food exports. The main sources of exports are Thailand, Brazil, Argentina, Uruguay, and New Zealand. Dairy products exports are relatively low, making up less than one percent of domestic production. In contrast, imports of pig meat are almost non-existent, with most of the product purchased in New Zealand and Australia.
Meat and poultry product exports to the Philippines are increasing at a fast pace. The Philippines is the eighth largest market in U.S. agricultural exports, following China and Vietnam. In 2021, U.S. agricultural exports to the Philippines will total $3.5 billion, up 11 percent from the previous year. The Philippines is a major target for U.S. agricultural products, and opportunities are endless.