Agri propelling robust growth
With Secretary Laurel’s strong grasp of the agricultural sector, instead of 2.5 percent, the sector could achieve even higher growth this year.
Daily TribuneWith Secretary Laurel’s strong grasp of the agricultural sector, instead of 2.5 percent, the sector could achieve even higher growth this year.
Joey Sanchez Mendoza
The agriculture sector will supply the missing link that will propel the country to a steady average growth of between 6.5 percent to 7.5 percent starting this year, a legislator-economist said yesterday.
At a news forum, Albay Rep. Joey Salceda said the economy’s supply side will be the main growth driver instead of the traditional consumer spending.
The gross domestic product, or GDP, expansion has averaged about six percent a year but the level has failed to lift many Filipinos out of poverty.
The country has a “good prospect” of benefiting from the Department of Agriculture’s programs aimed at boosting production, Salceda acknowledged.
“With Secretary (Francisco Tiu) Laurel’s strong grasp of the agricultural sector, instead of 2.5 percent the sector could even achieve higher growth this year,” Salceda said.
“It looks like we can surpass (previous growth levels). Because when you look at the Philippines, it’s simple: 2.5 percent growth for agriculture, 4.5 percent for industry contributed to 5.5 average growth for the past 15 years... growth rates in 2020 and 2021 went down (due to the pandemic),” he pointed out.
Salceda said it is also important to note that despite the slowdown in the economy, “there will be productive capacity and food security if the agriculture and industrial sectors perform well.”
He also underscored the crucial role of agricultural growth in the government’s fight against poverty.
Poverty buster
“When commodity prices are low, poverty will be reduced. So there’s a good chance (of a higher growth rate) if the Philippines’ growth will be sourced from agriculture,” he said.
National Economic and Development Authority Secretary Arsenio Balisacan said they are targeting a 6.5 to 7.5-percent full-year GDP growth rate to generate economic opportunities, increase employment, raise per capita incomes, and elevate the Philippine economy to “upper middle-income-country” status by 2025.
He said the economy performed well in 2023 “despite the magnitude of the challenges that the country faced and which continue to persist.”
He added the country also has a “comparative advantage” in various services such as business process outsourcing or call centers.
Laurel recently presented a three-year plan to increase agricultural productivity, lower food cost, ensure food security, and develop the agri-fishery industry in a recent Cabinet meeting.
“Basically, our three-year plan is to invest in post-harvest facilities and to have more recovery for our products and hopefully to partly lower the cost of rice and corn,” Laurel said.
“Besides that, we have a big digitalization move to get more accurate production data for our production. As you know, we need real production data to be able to manage the food supply effectively,” he added.
Laurel said the DA is targeting the construction of cold storage facilities with 5,000 pallet positions for high-value crops, including vegetables, to address the oversupply in agricultural products.
He said extending the shelf life of vegetables by putting them in cold storage chains is seen as an “immediate action” to solve overproduction which he stressed is a “result of poor planning and (coordination) with the market.”
He noted that around P1 billion would be allotted for the establishment of four cold storage facilities in Luzon.
“If we try to solve the problem as soon as possible, assuming 2025, I need an additional P5 billion to address the vegetable cold storage issue of the whole nation. How to get the money? I’m still new in government so I’m still trying to figure that out also,” Laurel said.
