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Freeman Cebu Business

Agri sector: Consistently inefficient

FULL DISCLOSURE - Fidel O. Abalos - The Freeman

France mourns the passing of more than a hundred lives. While the civilized world sympathized with them, the ISIS owned and took responsibility of the attack and rejoiced in it.  Aptly, therefore, France’s and the other countries in Europe’s promise of a “ruthless response” should be pursued relentlessly.   This barbaric act should be condemned and the perpetrators must be crushed unforgivingly.

Due to the significance of such horrible incident, some newsworthy developments, though were able to hit the pages, were simply overlooked.  Domestically, one of these developments is the report that farm production, according to the Philippine Statistics Authority, “managed a 0.04 percent growth in the third quarter, helped by gains in the livestock, poultry and fisheries subsectors”.

The crops subsector (which accounted for 44.5 percent to the total agricultural production), however, “reported a 4.86 percent decline in production in the third quarter”.  As usual, we blame the weather for it.  So, as the report says, “the decline was attributed to the intense heat brought about by the prevailing dry spell as well as the destruction caused by typhoons Egay, Hannah and Ineng”. 

Notably though, the PSA, further reported that “improvements in production were noted for banana, pineapple, mango, abaca, cassava, camote, eggplant and calamansi.”  Only “palay and corn production were heavily affected by hot weather conditions and typhoons.”

This is a very sad development.  With our population growing at the vicinity of 1.7 percent a year or close to 1.8 million, our 0.04 growth in agriculture is so negligible.  Therefore, it will never come as a surprise if in the near future, we will opt, as usual, for our temporary solution, that of importing rice from Vietnam and Thailand.

As singled out earlier, we put the blame on the typhoons that went by during the year.  This excuse has been used over the years.  As if Thailand and Vietnam are not regularly visited by typhoons as well.  Remember, these rice exporting countries and us belong to the same hemisphere.  In fact, just too close with each other.  Therefore, our weather and climate are much the same.  Yet, they are exporting. 

Well, our population maybe partly blamed, but the point we are driving is that rice and corn production is practically inefficient.  Rightly so because improvements were noted in, among others, banana, pineapple and cassava.  If we try to figure it out, these are produced by huge companies that have their own platoons of good farm managers. 

Therefore, while our government automatically blames the weather for the inefficiencies of our rice and corn farmers (who are mostly inadequately funded and inefficient), the well-managed companies (they practically share the same weather/climate) have continued to grow.

Dissecting our GDP, it is quite obvious that about 90% is contributed by the service and industry sectors.  It is apparent too that the agriculture sector contributes just a measly 11% to our GDP. What is worst is, 31% or about 1/3 of our labor force is in the agriculture sector.  That simply means, this sector is inefficient and most of its workers are underemployed.

Moving forward, the situation can be worse.  To recall, several humongous properties were partitioned for the agrarian reform beneficiaries.  Yet, some of them left their abode.   Though prohibited by law, either, they sold or leased their share.  These farmers’ attitudes though are not surprising.  In fact, soon, most of these lands/farms will totally miss their stewards’ presence. 

Recent reports revealed that even agriculture graduates disdain farming.  A Filipino sociologist has observed that “Most agriculture graduates do everything but farm; they take government jobs, teach, do research, etc. They don’t want to touch the soil.” 

Worst, agricultural workers are dwindling every year as most of them, as surveyed by the Food and Agricultural Organization, migrate to urban areas seeking for better paying jobs.  Some, in fact, are working as mere household helpers because, to most of them, these jobs have given them better rewards than that of the farms.

In addressing this concern, we should develop successful new farmers by providing them experience-based production and sound business-management training.  Such training must include among others, concerns in production, business, ecology and environment.  

Training on production should include planting, harvesting, irrigation system, livestock, etc.  Business trainings must include marketing, finances, budgeting, etc.   To ensure success, this government must also provide the necessary infrastructure, such as, irrigation, storage facilities, transport equipment, packing and processing facilities.  Done well, only then will we be able to let them till their lands profitably.

Yes, without a doubt, the biggest hurdle that this government should overcome is to prevent these farmers from leaving their lands by helping them till these profitably.   After all, despite all the support, their presence is still paramount and necessary.

A FILIPINO

ACIRC

AGRICULTURE

EGAY

FOOD AND AGRICULTURAL ORGANIZATION

HANNAH AND INENG

NBSP

PHILIPPINE STATISTICS AUTHORITY

PRODUCTION

THAILAND AND VIETNAM

VIETNAM AND THAILAND

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