Overview of Agri development in the Philippines

Summary

The presentation highlights the current state of agriculture in the Philippines, emphasizing its crucial role in poverty alleviation and food security despite its decline in economic significance. It discusses challenges such as low productivity, lack of diversification, and climate impacts, and contrasts the country's performance with its Southeast Asian neighbors. The script advocates for modernization, industrialization, consolidation, and infrastructure development as part of a new paradigm to revitalize the sector, with cooperatives playing a pivotal role in leveraging technology and e-commerce for small farmers and fisherfolk.

Takeaways

• 🌾 Agriculture in the Philippines is crucial for economic progress, despite no longer being the primary economic driver.
• 📉 The poverty rate among farmers remains high at 32%, indicating a need for improved living standards in agricultural households.
• 📊 Agriculture employs over a quarter of the country's workforce but only contributes 9% to the GDP, suggesting low productivity.
• 🥦 The Philippines is largely self-sufficient in certain food staples, such as cassava, sweet potato, and various fish species.
• 📉 Agricultural growth has slowed compared to other countries, with the sector's performance declining since the 1980s.
• 🌱 The dominance of traditional crops has limited diversification, while high-value crops like soy, cacao, and abaca remain minor players.
• 🐟 Fisheries output has been on a downward trend due to climate factors and overfishing, impacting food security.
• 🌍 The country has failed to capitalize on the export market, lagging behind Southeast Asian neighbors in agricultural exports.
• 💰 Government spending on agriculture has been high but has not translated into significant outcomes or infrastructure improvements.
• 🔗 The Sagip Saka Act promotes farmer and fisherfolk enterprises, aiming to foster clustering, consolidation, and private sector partnerships.
• 🛠️ The 'new thinking' in agriculture includes eight paradigms focusing on modernization, industrialization, consolidation, infrastructure development, and policy reforms to enhance the sector's performance.

Q & A

What is the current role of agriculture in the Philippines' economy?

Agriculture is no longer the big economic mover it once was, but it remains key to enabling economic progress for everyone in the Philippines.

What was the percentage of the poor in the Philippines in 2018, and how does it compare to farmers?

In 2018, the share of the poor in the population was down to 17%, but for farmers, it was still 32%.

How significant is agriculture in terms of employment in the Philippines?

Over a quarter of the workers in the country were employed in agriculture as of April 2020.

What is the contribution of the agriculture sector to the GDP of the Philippines in 2020?

The agriculture sector produced only 9% of the GDP in 2020.

What are the main food sources for Filipinos, and how self-sufficient is the country in these areas?

Local farms and fisheries are the source of most of the food needs of Filipinos. The country is completely self-sufficient in cassava, sweet potato, milkfish, and tilapia, and nearly so for galunggong.

How has the growth of Philippine agriculture compared to other countries?

Philippine agriculture has fallen behind those of other countries. It was doing well in the 60s and 70s but slowed in the 1980s and slumped again in the 2010s.

Which sector within agriculture in the Philippines has grown faster than average up to 2019?

Poultry has grown faster than average within the agriculture sector up to 2019.

What is the main reason for the below-average growth rate of crops in the Philippines?

One reason for the below-average growth rate of crops is the lack of diversification, with the same five traditional crops dominating the cropped area over the past 50 years.

How has the output of fisheries in the Philippines been trending since 2013?

The output of fisheries has been falling every year from 2013 to 2018, with climate factors and overfishing contributing to the erratic trend.

How does the Philippines' agricultural export performance compare to its Southeast Asian neighbors?

The Philippines' agricultural exports were behind those of Vietnam, Indonesia, and Thailand, with Vietnam at $30 billion, Indonesia and Thailand at $30-40 billion per year, while the Philippines made it to $7 billion in 2017.

What is the significance of RA 11321 or the Sagip Saka Act for Philippine agriculture?

RA 11321 promotes farmer and fisherfolk enterprises and offers a pathway towards clustering, consolidation, and partnership with the private sector, which is part of the new thinking for leveling up agriculture.

What are the eight paradigms of the new thinking for agriculture in the Philippines?

The eight paradigms include modernization, industrialization, consolidation, aggressive development of infrastructure, development of road maps, budgeting, legislative support, and partnerships.

How can cooperatives play a critical role in the new developments in Philippine agriculture?

Cooperatives can facilitate consolidation, promote the spread of modern technologies, and pioneer partnerships with the private sector to transform farming into agribusiness.

What opportunities do digital advancements like e-commerce offer to farmer and fisherfolk enterprises?

E-commerce offers opportunities for farmer and fisherfolk enterprises to take advantage of the digital revolution through functional organizations and effective partnerships with the private sector.

Outlines

00:00

🌾 Agriculture's Role and Challenges in the Philippines

This paragraph discusses the current state of agriculture in the Philippines, highlighting its importance despite not being the main economic driver. It points out the high poverty rate among farmers and the sector's low productivity compared to industry and services. The script emphasizes the significance of agriculture for food security and notes the country's self-sufficiency in certain crops and livestock. It also touches on the historical performance of Philippine agriculture, mentioning the green revolution and the recent decline in growth, especially in non-traditional crops and fisheries. Climate factors and overfishing are identified as challenges, and the script compares the country's agricultural export performance with its Southeast Asian neighbors, showing that the Philippines is lagging behind.

05:02

🛠️ Modernizing Philippine Agriculture Through New Paradigms

The second paragraph focuses on the government's efforts to modernize Philippine agriculture, despite the lack of tangible outcomes. It discusses the challenges of limited land area and shrinking farm sizes due to population growth. The introduction of the Sagip Saka Act and the Department of Agriculture's (DA) prioritization of clustering are mentioned as potential solutions. The paragraph outlines the 'new thinking' for agriculture, which includes eight paradigms such as modernization with technology, industrialization, consolidation, infrastructure development, strategic planning, partnerships, budget allocation, and legislative support. The role of cooperatives in facilitating these changes and the opportunities presented by e-commerce and digital platforms for farmer and fisherfolk enterprises are also highlighted.

Keywords

💡Agricultural Development

Agricultural development refers to the process of improving the agricultural sector through various means such as technological advancements, policy reforms, and infrastructure investments. In the video, it is the overarching theme, highlighting the state of agriculture in the Philippines and the need for progress to ensure economic growth and food security.

💡Economic Progress

Economic progress is the advancement in a nation's economic conditions, often measured by indicators such as GDP growth or improved living standards. The script emphasizes that agriculture is key to enabling economic progress for all in the Philippines, not just a select few.

💡Poverty

Poverty is the state of being extremely poor, often measured by income levels below a certain threshold. The video script indicates that while the overall poverty rate in the Philippines has decreased, the rate among farmers remains high, suggesting a need for improvement in agricultural livelihoods.

💡Productivity

Productivity in agriculture refers to the efficiency with which inputs are used to produce outputs. The script points out that agricultural workers in the Philippines are less productive compared to those in industry and services, indicating a need for increased efficiency in the sector.

💡Food Security

Food security means having reliable access to a sufficient quantity of affordable, nutritious food. The video discusses the importance of local agriculture and fisheries for meeting the food needs of Filipinos and ensuring the country's food security.

💡Green Revolution

The Green Revolution refers to a period of agricultural modernization marked by the introduction of high-yielding varieties of crops and modern farming techniques. The script mentions the Green Revolution seeds as a historical point of successful agricultural growth in the Philippines.

💡Diversification

Diversification in agriculture means growing a variety of crops rather than relying on a few staple crops. The video script notes the lack of diversification as a reason for the slow growth rate of crops in the Philippines, suggesting that embracing a wider range of crops could boost productivity and economic output.

💡High Value Crops

High value crops are crops that generate more revenue per hectare compared to traditional crops. The script identifies non-traditional, high value crops like soy, cacao, and abaca as having the potential to increase agricultural output and income for farmers.

💡Infrastructure

Infrastructure refers to the basic physical and organizational structures needed for a country or region to function. The video points out the need for aggressive development of infrastructure to address logistical gaps and improve the efficiency of the agricultural sector.

💡Cooperatives

Cooperatives are organizations owned and operated by a group of individuals for mutual benefit. The script highlights the role of cooperatives in facilitating consolidation, spreading modern technologies, and forming partnerships with the private sector to transform farming into agribusiness.

💡E-commerce

E-commerce refers to the buying and selling of goods or services using the internet, including platforms that facilitate transactions. The video mentions the penetration of e-commerce into agriculture, suggesting that digital platforms can help farmer and fisherfolk enterprises to take advantage of the digital revolution.

💡Policy Reforms

Policy reforms involve making changes to existing policies to improve their effectiveness or address new challenges. The script discusses the need for legislative support towards policy reforms as part of the new thinking for leveling up agriculture in the Philippines.

Highlights

Agriculture remains key to economic progress in the Philippines despite not being the major economic driver.

In 2018, the poverty rate among farmers was significantly higher than the national average at 32%.

Agriculture employs over a quarter of the country's workers but contributes only 9% to GDP.

Productivity in agriculture is lower compared to industry and services.

Local farms and fisheries are crucial for the country's food security, providing most of the food needs for Filipinos.

The Philippines is self-sufficient in cassava, sweet potato, milkfish, and tilapia production.

Agricultural growth in the Philippines has slowed compared to other countries since the 1980s.

Poultry has grown faster than average in the agricultural sector up to 2019.

Traditional crops have dominated the agricultural landscape for the past 50 years, hindering diversification.

Non-traditional, high-value crops like soy, cacao, abaca, and vegetables have remained minor players in agriculture.

Fisheries output has been declining annually from 2013 to 2018 due to climate factors and overfishing.

Agricultural exports in the Philippines lag behind its Southeast Asian neighbors.

Government spending on agriculture has been increasing but has shown limited concrete outcomes.

Infrastructure investments in agriculture are lacking, with the country ranking 60th out of 160 in the Logistics Performance Index.

Farm sizes have been shrinking due to population growth, impacting farmers' incomes.

RA 11321 or the Sagip Saka Act promotes farmer and fisherfolk enterprises and partnerships with the private sector.

The new thinking for agriculture includes eight paradigms focusing on modernization, industrialization, and infrastructure development.

Cooperatives are seen as critical for facilitating consolidation, technology adoption, and private sector partnerships.

E-commerce is penetrating agriculture, offering opportunities for farmer and fisherfolk enterprises with the right support.

Transcripts

[Music]

[Laughter]

in this presentation

i will provide a brief overview of the

state of agricultural development

in the philippines agriculture is no

longer the big economic mover it once

was

but it is still the key to enabling

economic progress

not just for a few but for everybody in

2018

the share of the poor in the population

was down to 17

but for farmers the share was still 32

among fisher folk 26 eliminating poverty

requires

a higher standard of living for

households who depend on agriculture

over a quarter of the workers in the

country were employed in agriculture

in april 2020 but the sector produces

only nine percent of gdp in that year

a lot of workers end up producing just a

small part of economic output

meaning they are less productive

compared with their counterparts

in industry and services agriculture

is also important for ensuring our

country's food security

local farms and fisheries are the source

of most of the food needs of filipinos

the country is completely

self-sufficient in cassava sweet potato

milkfish and tilapia and nearly so for

galunggong

and despite the recent controversy over

rice and pork imports

more than nine tenths of rice and corn

we eat is produced locally

eighty to ninety percent of the meat we

eat is produced here

now based on how fast agricultural

output is growing

philippine agriculture has fallen behind

those of other countries philippine

agriculture was actually doing well

back in the 60s and 70s new technologies

at that time were spreading

like the green revolution seeds that

time also agribusiness investments

were expanding rapidly in now key export

crops like sugarcane bananas and

pineapple

but agricultural growth slowed in the

1980s

recovered somewhat in the 90s and 2000s

before slumping again in the 2010s

within agriculture it's poultry which

has grown

faster than average up to at least 2019.

for crops the growth rate is actually

below average

one reason is lack of diversification it

is the same

five traditional crops ally corn coconut

sugar cane and banana that have

dominated

cropped area over the past 50 years

meanwhile the non-traditional crops also

known as high value crops for good

reason

because they earn higher value per

hectare than the traditional crops

these are the soys the cacaos the abacas

the vegetables as a whole they have

remained minor players in agriculture

fisheries meanwhile worse than crops

its output has been falling every year

almost from 2013 to 2018. climate

factors have contributed to the erratic

trend in both crops and fisheries

for fisheries there is an additional

problem of decades of overfishing

environmental factors and a dwindling

natural resource base

make farming and fishing risky and

activities

livestock is not exempt from this as

african swine failure

since 2019 has destroyed big inventories

and cost skyrocketing pork practice

agriculture has mostly failed to

capitalize on

a lucrative export market in contrast

our southeast asian neighbors have made

agriculture

their export winner even in 1997

agricultural exports in the philippines

was already behind

at 2.3 billion dollars the 3 billion

dollars of vietnam

the 8 billion of indonesia 13 billion of

thailand

these three countries still propelled

their exports to greater heights

by 2017 vietnam was now at 30 billion

indonesia and thailand at 30 to 40

billion dollars per year

philippines made it to seven billion

is this poor's performance a result of

low spending by government

let's look at the numbers in 2018

spending for agriculture by government

was 143 billion pesos

equivalent to about nine percent of

agricultural output

this is even higher than the seven

percent share in

2017 spending for agriculture rose

further 247 billion in 2020

before leveling off 243 billion

in 2021 however

despite years of high and rising budgets

for agriculture

government programs have little to show

for in terms of concrete outcomes

but the country continues to fall behind

its neighbors

in infrastructure investments the

country ranks 60th out of 160 countries

in the logistics performance index

of the world bank in 2019 the physical

land area of the country is large

at 12 million hectares but it is also

limited

as population continues to grow that

means farm sizes have been shrinking

by 2012 farm sizes averaged

only 1.29 hectares our

fragmented farms have limited our

farmers incomes

on the bright side ra 11321 or the

sagipsaca act

promotes farmer and fisherfolk

enterprises

and offers a pathway towards clustering

consolidation

and partnership with private sector

consistent with this da has identified

clustering

as its highest priority program this

attention to clustering by da

is strongly championed by its current

secretary as part of the new thinking

for leveling up agriculture

the new thinking is organized around

eight paradigms the eight paradigms are

modernization with the latest

technologies such as sensor driven pest

surveillance

[Music]

industrialization by building

agribusiness out of traditional farming

such as cobra farmers forming a vco

factory

[Music]

consolidation to realize economy scale

such as the block farms in sugar cane

areas

aggressive development of infrastructure

to plug logistical gaps

development of road maps to

operationalize strategies and

partnerships

budget to fund appropriate public sector

priorities

and lastly legislative support towards

policy reforms

these paradigms offer great promise

towards

remedying the gaps in programs and

policies

that have failed agriculture for so long

cooperatives will clearly play a

critical role

in this leveling up cooperatives

will facilitate consolidation to realize

economies of scale

promote the spread of modern

technologies pioneer partnerships with

the private sector

towards transforming farming into

agribusiness

in short collective action normally

associated with political mobilization

through cooperatives can now be potently

harnessed for creating

economic value at the level of small

farmers and fisher folk

brick and mortar retail is giving way to

e-commerce which is now also penetrating

agriculture

the keys for farmer and fisher folk

enterprises to take advantage of the

digital revolution

is functional organizations and

effective partnerships with the private

sector

who can specialize in providing services

developing infrastructure such as

farmer-based e-platforms and in building

capacity

these new developments especially the

new thinking in agriculture

is an opportunity for cooperatives to be

at the front and center for agricultural

development

in the philippines are you

up to

[Music]

you