Farm output slows in Q2 on drought; 2007 target at risk Thomson Financial
August 13, 2007
(UPDATE) MANILA, Philippines -- Growth in Philippine farm output was nearly halved in the second quarter from the same period last year because of a prolonged dry spell, the Department of Agriculture said Monday.
Farm production grew 3.64 percent in the second quarter from a year earlier, much slower than the 6.7 percent increase in the same period in 2006. Output rose 3.3 percent in the first quarter.
Agriculture output accounts for about a fifth of the Philippine economy.
Agriculture Secretary Arthur Yap said that with the possibility of a longer dry spell, the department is unsure about meeting the full-year growth target of 4-5 percent.
"We have difficulty revising the full-year target because of the current situation. We may have difficulty reaching our targets," Yap told a news briefing.
Output for the first half of 2007 grew 3.5 percent, compared to 5.24 percent in the same period last year.
Analysts said poor weather may make it difficult for the government to meet its production target.
"The agriculture department will be lucky to post a 2-3 percent full-year growth," said Rolando Dy, executive director for food and agribusiness at the University of Asia and the Pacific.
"The lack of rainfall in the second quarter destroyed crops, while the planting cycle in the third quarter was delayed. If the rains come during the normally dry months of November and December, then it may also affect the quality of farm produce."
Output of crops, which accounted for 47 percent of total output in the first half, grew 2.63 percent, the agriculture department said. Rice production went up 2.88 percent while corn harvest rose 5.7 percent.
The fishery sector, which contributed 27.3 percent to total production, expanded by 7.2 percent. -- Rocel Felix
