DA slashes 2016 growth forecast due to typhoon

MANILA, Philippines – Agriculture Secretary Emmanuel Piñol has trimmed his growth outlook for the  industry last year following the recent typhoon that hit the country.

The downward adjustment comes after Typhoon Nina hit the Bicol and Calabarzon region last month.

“We have to make some adjustments with the growth projection for 2016. We have to realistically reduce our target by two to three percent,” Piñol told reporters in a chance interview.

For the fourth quarter alone, the agri chief has already reduced his target to six percent growth from eight percent.

In 2015, the farm sector posted flat growth in volume as it grew a measly 0.11 percent.

Piñol said the effect of the damage is expected to extend up to the first quarter of this year.

Before the typhoon, Piñol has targeted a 3.5 to five percent growth and this is expected to double this year amid favorable weather conditions and the re-opening of major markets.

After three consecutive quarters of negative output, the agricultural sector picked up pace in the third quarter, rising by nearly three percent from the previous year.

Farm output went up 2.98 percent but still declined by 1.53 percent during the nine-month period due to weakness in the first two quarters.

Piñol expects palay production to reach at least 18 million metric tons (MT) for the year, hitting the projection of the Philippine Statistics Authority (PSA) of 17.91 million MT.

But, this is still lower than the 18.15 million MT recorded last year.

Based on the latest report, total damage has risen to P5.3 billion covering 124,000 hectares of agricultural areas with estimated production loss of 385,728 MT.

Affected commodities were rice, corn, fisheries, livestock and high value crops affecting about 90,000 farmers in Calabarzon, Mimaropa and Bicol Region.

Damage incurred on rice soared to P2.2 billion with 204,103 MT of production lost at the 63,366 hectare damaged area.

The value of damage to high value crops is now placed at P1.8 billion with 104,124 MT of produce lost. Affected were 21,732 hectares of cultivation area.

Losses incurred on corn crops reached P609 million with 56,826 MT of produce lost and 11,449 hectares of affected area.

The fisheries sector was also affected after damages reported reached P56 million.

Damages to infrastructure and facilities were also reported including DA’s Regional Field Office Research and Experiment Stations in Bicol at P73 million and DA-Bureau of Fisheries and Aquatic Resources facilities at P73 million.

The DA is also creating a task force that will focus on the rehabilitation of the affected provinces.

Piñol said the department would request for additional financial assistance on top of the P500 million quick response fund.

“It is not enough. We are already using our existing funds and the initial assistance of the DA is not enough,” he said.