12/10/2016 CROPDIVERSIFICATIONINTHEPHILIPPINESReneRafaelC.EspinoandCenonS.

Atienza*

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CROPDIVERSIFICATIONINTHEPHILIPPINESReneRafael
C.EspinoandCenonS.Atienza*
*ProgrammeDirectorandConsultant,HighValueCommercialCropProgramme,
DepartmentofHorticulture,CollegeofAgriculture,UniversityofthePhilippines,Los
Baos,Laguna,Philippines.

1.INTRODUCTION

ThePhilippineeconomyislargelydependentonagriculture.Oftheapproximately73million
populationin1998,theagriculturesectoremploysmorethan11millionpeopleandabout26
percentofthesearewomen.Thereareabout29millionpeopledependentonagriculture.

In1998,thetotalareaplantedtocropswas11.6millionhectares.Ofthese,5.5millionhectaresare
devotedtoriceandcorn,4.8millionhectaresformajorcropsand1.3millionhectaresforother
crops.Majorcropproductsexportedincludecoconut,sugar,pineapple,banana,coffeeandmango.
Ontheotherhand,riceandcorncontinuetobeimportedtomeetthedemandofthegrowing
population.

TheDepartmentofAgriculture(DA)isthegovernmentagencyresponsibleforallagricultural
activitiesinthecountry.TheDAhasanumberofstaffbureausandattachedagenciesthatconduct
activitiesoncropproduction,regulationandR&D.Theattachedagencieslookataspecificcrop,
e.g.,thePhilippineRiceResearchInstitute(Philrice)forrice,theSugarRegulatoryAdministration
(SRA)forsugarcane,thePhilippineCoconutAuthority(PCA)forcoconut,theFibreDevelopment
Authority(FIDA)forabacaandotherfibrecrops,theNationalTobaccoAdministration(NTA)for
tobacco,andtheCottonDevelopmentAuthority(CODA)forcotton.Ontheotherhand,thestaff
bureausliketheBureauofPlantIndustry(BPI),theBureauofPostHarvestResearchand
Extension(BPRE),theBureauofSoilsandWaterManagement(BSWM),theBureauof
AgriculturalandFisheryProductStandards(BAFPS),andtheBureauofAgriculturalStatistics
(BAS)havemulticropresponsibilities.

Acropdiversificationschemeislargelydependentonclimaticconditions.Therearefourclimate
typesinthePhilippines,namely,TypeIwithtwopronouncedseasons,dryfromNovembertoApril
andwetduringtherestoftheyearTypeIIwithnodryseasonandwithverypronouncedmaximum
rainfallfromNovembertoJanuaryTypeIIIwhereseasonsarenotverypronouncedandrelatively
dryfromNovembertoJanuaryandTypeIVwhererainfallismoreorlessevenlydistributed
throughouttheyear.

TheDAhasadoptedcropdiversificationasastrategytopromoteandhastenagricultural
development.Assuch,thispaperpresentscropdiversificationintwoperspectives.Oneaspectis
plantingacashcropafterthemaincropandtheotherisplantingintercrops(permanentorcash
crops)inbetweenthemaincrop,usuallyapermanentcrop.Thisstrategyhelpsattainthegoalof
theDepartmentinincreasingproductivityandfarmincomenotwithstandingthebenefitof
environmentalconservation.

Theobjectivesofthispaperarethreefold,namely:a)toreviewtheexistingcropdiversification
schemesinthecountryb)topresenttheopportunitiesandconstraintsintheadoptionofcrop
diversificationandc)toreviewgovernmentpoliciesrelatedtocropdiversification.

2.CROPPRODUCTIONANDECONOMICSSCENARIO

2.1CropProductionArea

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Inthe1991CensusofAgricultureandFisheries,therewere9.97millionhectaresofagricultural
land(BAS,1997).Ofthese,55.3percentofthefarmlandswereusedforgrowingtemporarycrops
and41.8percentwereplantedtopermanentcrops.Therewere4.61millionfarmsandtheaverage
nationalfarmsizewas2.16hectares37percentofthefarmswerelessthanahectareinsize.

Thetotalareadevotedtoagriculturehasbeendeclining.ItcanbenotedinTable1thatin1989,the
areaforagriculturewas13,147,100hectaresin1998,thiswasreducedto11,664,600hectares,a
decreaseof1.48millionhectares.Cerealcropsdominatetheproductionareafortheperiodunder
reviewconsideringriceandcorntobethestaplefoodsoftheFilipinos.From1989to1993,more
areawasplantedtocornthanricehowever,from1994to1998,moreareawasusedforrice
production.

Coconut,banana,sugarcane,cassava,andpineappleareconsideredmajorcropsintermsofarea
plantedandexportpotential.Amongthecommercialcrops,itisinterestingtonotethattherewasa
tremendousincreaseinareaplantedtomango,thatis,from56,400hectaresin1989to93,900
hectaresin1998.Thiscanbeattributedtotheexportpotentialofthisfruit.

2.2VolumeofCropProduction

Table2presentstheannualproductionofbothmajorandminorcropsinthePhilippines.Lowest
productionforbothriceandcornwasobservedin1998at8,554.8metrictonnesand3,823.2metric
tonnes,respectively.However,in1999(reportoftheBureauofAgriculturalStatistics),rice
productionincreasedto11,700metrictonnes(27.4percentincrease)whilecornproduction
increasedby761.4metrictonnes(16.6percentincrease).

Thereisadecliningtrendincoconutproduction.Lowestproductionwasobservedduringthelast
twoyears.Thishasbeenattributedtofellingoftreesforlumberproductionandtherelativelyold
coconuttrees.Ontheotherhand,mangoproductionincreasedduetotheincreaseinareaplanted.
Highestproductionwasobservedin1997(987.1metrictonnes).Ingeneral,theproductionofmajor
andothercropsdidnotchangedramaticallyduringtheperiodunderreview.

Thelowproductionofagriculturalcropsin1998wasduetotheoccurrenceoftyphoonsLoleng
andGading.

2.3YieldPerHectareofAgriculturalCrops

Table3showstheaverageyieldperhectareofagriculturalcrops.Theaverageyieldperhectareof
riceandcornislowat2.62.9metrictonnesperhectareand1.21.6metrictonnesperhectare,
respectively.Thereisacontinuousdeclineintheyieldofsugarcane.Fromahighof81.8metric
tonnesperhectarein1989thisdecreasedtoonly52.5metrictonnesperhectarein1998,a
decreaseofabout35percent.

Theaverageyieldofmangoandrubberisincreasing.Inmango,theaverageyieldincreasedfroma
mere5metrictonnesperhectarein19891992to10metrictonnesperhectarein19971998.
Rubberyieldincreasedfromalowof1.99metrictonnesin1989to2.44metrictonnesin1998.

2.4ShareofCropsinNationalAgriculturalGDPandTrade

From1992to1996,agriculturecontributed20.9322.28percentoftheGDP.Lateststatisticsshow
thatin19941998(BAS,1999)thePhilippineeconomygrewbyanaverageof4.55percentin
termsofGNPor3.92percentintermsofGDP.Thecountry'seconomicperformancebefore1998
hadrealgrowthinGDPfrom4.395.85percent.Theregionalcurrencycrisisandadverseweather
conditionsin19971998greatlyaffectedtheeconomy.

FromTable4,itisevidentthatthepercentshareofagriculturetoGNPisdecreasingbothatcurrent
andconstantprices.TheGrossValueAddedinagriculturehasbeenincreasing(Table5).However,
thecropssectorpostednegativegrowthin1990and1998,thatis,0.78and12.86,respectively.

2.5TradeofCropProducts

Table6presentstheagriculturalforeigntradestatisticsfrom1989to1998.Thevalueofagricultural
importswaslowerthanthevalueofexportsfrom1989to1993.From1994to1998,however,the
reversecanbenoted.

Thevolumeofsugarexportedisonthedecline.Thiscanbeattributedtodecreasingareadevoted
tosugarproduction,lowerproductionperunitareaandhighproductioncost.Likewise,decreasing

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exportvolumesofdesiccatedcoconut,coffeeandcopraareevident.However,increasingexport
volumescanbenotedincoconutoil,copraoilandbanana.

3.PATTERNSOFCROPDIVERSIFICATION

Withgrowingpopulation,urbanizationandindustrialization,theareadevotedtocropproductionhas
beendeclining.Asaresult,newstrategieswereformulatedandcropdiversificationisoneofthese.
Asastrategy,cropdiversificationmaximizestheuseoflandandoptimizesfarmproductivityand
incomes.

Thereareseveralfactorsassociatedwithcropdiversification.AccordingtoGonzales(1989),the
adoptionofcropdiversificationschemesisdictatedbybothphysicalandeconomicfactors.Physical
factorsincludelandcapability,rainfallpatterns,waterquality,cropsuitabilityandtechnology.
Economicfactors,ontheotherhand,includecosts,prices,markets,andeconomicviabilityof
alternativecroppingschemes(AdrianoandCabezon,1989).

Farmershaveshiftedtoricebasedfarmingsystemsduetoconstraintslikeinadequatewater,land
suitabilityandclimaticconditions(Obcemeaetal.,1996).Furthermore,theyattributedadoptionof
thisschemetoincomestability,increasingdemandfornonricecrops,andhighprofitabilityperunit
area.

Francisco(1995)reportedthatthreefactorsdeterminethefarmer'schoiceofricecroppingsystem.
Thesearefarmers'technicalknowledgeingrowingthecrop,adaptabilityofthecroptothelocal
conditions,andamountofresourcesavailabletofinancetheproductionexpenses.Asidefrom
thesearemarketforcesthataffectpricesofboththeoutputandinputsandlevelofgovernment
supportextendedtothecultivationofbothmajorandothercrops.

3.1DiversificationinRiceLands

Diversificationinricelandsstartedinthe1970'swhenresearchersbegandevelopingtechnologies
andstrategiesforoptimizingfarmproductivity(Galvez,1990).AccordingtoAdrianoandCabezon
(1989),diversificationofspecificnonricecropsinirrigatedlandsbeganonlyduringthemid1980s.
Thisgovernmentpolicywasadoptedtoraisefarmincomesandintensifyemploymentopportunities
intheruralareas.

TheInternationalRiceResearchInstitute(basedinthePhilippines)initiatedricebasedcropping
studiesinthemid1970's(MirandaandPanabokke,1989).Thisledtotheintroductionofcrops
otherthanriceduringthedryseasonfollowingthewetseasonricecrop.

IntherainfedanduplandareasofthePhilippines,thereare25ricebasedpatternswithriceasthe
maincropfollowedbyanothercrop(Adriano,1989).AccordingtotheNationalAgricultural
ResearchandExtensionAgenda(BAR,1989),croppingpatternsdifferbygeographicallocation
(Table7).

Awiderangeofcropscanbegrownafterricedependingonrainfallandavailabilityofwater,
elevationandlandfeaturesoftheenvironment.Corn,tobacco,garlic,andlegumesarethemajor
cropsafterriceinthesefourregions.In19911995,rainfedlowlandricebasedcroppingsystems,
namely,ricecorn,ricegarlic,ricemungbean,ricesweetpepper,andricetomatowereevaluatedin
IlocosNorteaspartoftheRainfedLowlandRiceResearchConsortiumimplementedbyMariano
MarcosStateUniversity,thePhilippineRiceResearchInstitute(PhilRice)andIRRI(Obcemeaet
al.,1996Yokohamaetal.,1998).

InanationwidesurveydonebyPhilRiceinthelasttwoyears(unpublished),sixmajorcropping
patters,namely,ricerice,ricevegetables,ricefish,ricecorn,ricelegumes,andothers,were
studied.Thepercentageofeachcroppingpatternwasdeterminedasidefrominformationsuchas
areadevotedtoricefarming,numberofricefarmers,averagelandholding,tenurialstatus,seed
productionarea,andlocalproblemsinriceproduction.

3.2DiversificationinCoconutLands

Incoconut,diversificationmeansthesimultaneousgrowingofoneormorecropsinacoconutarea.
Cashcropsorpermanentcropscanbegrowndependingonanumberoffactors.Thesearethe
environment(soil,topography,andclimate),socioeconomic(tenureandcapital)andtechnical
(availabletechnologyandmanagementrequirements)factorsthatcouldeitherbewithinorbeyond
thecontrolofthefarmers(PCARRD,1993).Furthermore,eightimportantconsiderationshave
beenidentifiedinintercroppingcoconut.Theseare:amenabilityofcoconutfarmstointercropping,
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availablemarket,favourableclimate,suitablesoilconditions,favourableslopeoftheland,farmers'
resourcesandattitudes,technicalandworkingarrangements,andavailabilityofgoodplanting
materials.

Awiderangeofcropscanbegrownundercoconut.Permanentcropslikecoffee,cacao,abaca,
lanzonesandotherfruittreescanbeestablished.Cashcrops,ontheotherhand,includecorn,
peanut,sweetpotato,pineapple,banana,mungbean,arrowroot,ramieandvegetables,among
others.

Asstatedearlier,oneormorepermanentandcashcropscanbegrownundercoconut.Whena
combinationofcropsofvaryingheights,rootingsystem,andcanopypatternstomaximizeutilization
ofsunlight,soilnutrients,andmoistureisgrown,thisisreferredtoasamultistoreycropping
pattern.Thispatternconsistsofthreelevels,namely,coconutasthetopfloor,perennialsasthe
midstoreycropsandlowgrowingannualsasthegroundfloorcrops.Asidefromthemultistorey
croppingsystem,Felizardo(1988)reportedthatlivestockandpoultryaregrownundercoconutina
numberofprovincesinthecountry.

Thesuitabilityoftheabovementionedcropsasintercropshasbeenextensivelystudied.The
climaticandsoilrequirementsofmostintercropshavebeendetermined.Thereareanumberof
technoguides,brochures,manualsandpamphletsthatdetailcropvarietiestobeused,cultural
managementpracticesandpostharvestandstorageoperations.Inmostcases,theprofitabilityof
intercroppingwithcoconutisincludedinthesepublications.

3.3SuccessfulCropDiversificationPatterns

Table8presentsthedocumentedsuccessfulcropdiversificationpracticesinthePhilippines.
AccordingtoAdriano(1989),garlicproductionexceededthatofirrigatedriceintheIlocosregion.
Likewise,onionproductionwasveryprofitableintheCentralLuzonRegion.Similarresultswere
reportedbyGonzalesin1989inIlocosandCentralLuzonregions,thehighestprofitwasobtained
fromonion,peanutandgarlic.

Asintercropsofcoconut,passionfruit,banana,pineapple,andcacaohavebeendocumentedto
givehighnetreturns.Researchusingblackpepper+papaya/cacao+pineappleunder17yearold
coconutconductedinDavaoResearchCentreproducedanetprofitofPHP8,234perhectareper
croppingasagainstPHP2,494fromcoconutalone.

4.CHALLENGES,OPPORTUNITIESANDPROSPECTSOFCROPDIVERSIFICATION

MoyaandMiranda(1989)discussedthetechnical,socialandinstitutionalissuesindiversifyingrice
areas.Technicalissuesincludetheintricateanddifferentialrelationshipsamongedaphic,climatic,
hydrologic,bioticandagronomicpropertiesofthefloodedriceenvironmentanddrylandnonrice
productionsystems.Socioeconomicissuesarehingedonprofitabilityofcultivatingnonricecrops
comparedtorice,availabilityofmarketsandunstablepricesofnonricecrops.Ontheotherhand,
institutionalissuesincludeirrigationservicefeepayment,levelofgovernmentsupportandfarmer
participation.

Inthericeonioncroppingsystem,farmersencounteredmoreeconomicthantechnicalproblems.
Productionrelatedproblemsincludelackofcapitalandhighcostofinputs(Marzan,1989).

InapreliminarystudyconductedbyCablayanandValera(1989),fourconstraintstocrop
diversificationwereidentified.Theseweredryseasonrainfall,availabilityofirrigationwaterforrice,
limitedirrigationmanagementandinappropriateonfarmirrigationanddrainagefacilities.
Furthermore,theynotedthatfarmersinsomeareaswereunfamiliarwithgrowingnonricecrops
underirrigation.Unstablefarmgatepricesdetermanyfarmersfrompracticingdiversification.

AdrianoandCabezon(1989)discussedindetailtheemergingeconomicissuesandconstraintsto
cropdiversification.Vitaleconomicissuesincludematchingsupplyanddemand,reallocationof
investments,andstrengtheningofinstitutionallinkages.

InareviewonrainfedlowlandricebasedcroppingsystemsdonebyObcemeaet.al.(1996),alist
offactorsthatinfluencefarmerstodiversifytononricecropswaspresented.Thesewereincome
stability,increasingdemandforvegetablesandnonricecrops,andhigherprofitabilityperunitarea.
Marketsupplyanddemand,stabilityofprices,costofinputsandqualityofnonriceproductswere
identifiedaseconomicfactorsaffectingcropdiversification.Otherequallyimportantfactorsinclude
availabilityofirrigationwater,landsuitability,climaticconditions,availabilityofmanagement

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technology,timeconstraintscausedbythepresenceofthericecrop,farmers'preference,resource
base,influenceofneighbouringfarmersorextensionagents,andlandtenure.

Inastudyinvolving266farmerscultivatingtobacco,cotton,tomato,onion,mungbean,garlic,corn,
andpeanut,GonzalesIntalandValera(1989)identifiedconditionsconducivetocropdiversification.
Thesewerelowincomefromothersources,profitabilityasseenfromotherfarmers,sufficientrice
supplyforone'sownconsumption,availabilityofseeds,insufficientwatersupply,experience,
perceptionofhighmarketpricesforthecrop,andpresenceoftechnicalandinstitutionalsupport.

5.GOVERNMENTPOLICIESANDSTRATEGIESFORCROPDIVERSIFICATION

Inordertostrengthentheagriculturesector,cropdiversificationwasidentifiedasastrategyinthe
MediumTermPhilippinedevelopmentPlan,19871992.Thisstrategywaspursuedtosupportfood
security,greateremploymentopportunities,increasedfarmincomes,andreduceddependenceon
traditionalexportcommoditieswhicharefacingdecliningdemandintheworldmarket(Adrianoand
Cabezon,1989).

AttheDepartmentofAgriculture,aNationalCommitteeonCropDiversification(NCCD)was
createdin1992.Thiscommitteeisinteragencyinnatureanditsmainfunctionwasplanningand
implementationofacropdiversificationprogramme.Fourcommoditybasedplanswereprepared
whichincluderice,corn,coconutandsugarcane.Theseplanswereusedinthepreparationofthe
DA'sMediumTermDevelopmentPlanintheearly1990's(Pecson,1993).

AnumberofeconomicpoliciestopromotecropdiversificationwereformulatedbythePhilippine
government(AdrianoandCabezon,1989).Inpricingpolicy,thegovernmentreducedtheprice
supportforricewiththeviewthatsomefarmerswillshifttoalternativecashcrops.Likewise,the
governmentwantstoreduceitsdirectinterventionfunctioninthemarketingofricebyrelyingmore
ontheprivatesectorbothtotrade(domesticandinternational)andtoholdstocks.

Taxandtariffpolicieswereadoptedtoeliminateimportquotasandminimizethenumberofpermits
requiredforimportationandlowertheaveragetarifflevel.Likewise,therewasabolitionofallexport
taxes.Gradualeliminationofallsubsidiesisanationalpolicy.Intheagriculturesector,subsidies
weregraduallyeliminatedsincepricingofinputsandoutputshasalreadybeenderegulated.

IncreasedpublicexpendituresonR&Dandotherruralinfrastructurefacilitiesarestipulatedinthe
AgricultureandFisheriesModernizationActof1997.Fromalow0.2percentoftheGVAallocated
forresearch,therehasbeenasubstantialincreaseingovernmentallocationforR&D.Bytheyear
2002,R&Dinvestmentwillbe1percentoftheGVA.Anumberofdevelopmentprogrammes
includeinvestmentinruralroads,transportandcommunications.Asaresultofthese,anefficient
pricesystemiscreatedwhichisapotentpromotionforcropdiversification.

Cropdiversificationinriceandcornareaswillproceedfavourablyduetotheimplementationofthe
AgrarianReformProgramme.Thisisonthepremisethatasleaseholdersorownercultivators,
thesefarmerscandecidewhatisbestfortheirlands.

CurrentandFutureGovernmentProgrammesonCropDiversification

OnagriculturalR&D,cropdiversificationisacomponentofthePhilippineNationalAgendafor
ResearchandDevelopment.Incropsassociatedwithcroppingsystems,thefollowingarethe
concerns:

Coconut

PilotingofCoconutbasedFarmingSystemsandTechnology.

CacaoandCoffee

Assessmentofexistingcropmixpatternsadoptedbycacaoandcoffee
farmers.

Cacaobasedandcoffeebasedvegetablesandlegumesintercropping
systeminflatandhillylands.

Occurrenceandseverityofinsectpestsanddiseasesasaffectedby
differentcroppingpatterns.

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Nutritionalrequirementsofcacaoandcoffeeasinfluencedbydifferent
croppingsystems.

Economicsofintercroppingcacaoandcoffeewithothercropsinflatand
hillylands.

Rubber

Alternativelegumecoversinrubberfarms.
Economicsofcovercroppinginsmallholderrubberfarms.
Rubbercroppingsystemmodeldemonstrationfarms.

ThePhilippineCoconutAuthorityhasthreemajorongoingprogrammesaspartofanationwide
programmeentitledMaunladnaNiyuganTugonsaKahirapan.Theseare:

ModelCoconutFarmsthemajorobjectiveistoimprovefarmproductivityandquality
oflifeofcoconutfarmersbyincreasingtheirincomes.Thisprogrammehasacrop
diversificationcomponent.

ReplantingandFertilizationProgrammeinvolvesplantingandreplantingeffortswith
balancedfertilization,covercropsandintercrops

GeneralFarmAssistance/ExtensionServicesconcernedwiththestrengtheningof
linkagesamongcoconutfarmers,R&Dandextension.

ThePhilippineRiceResearchInstituteiscurrentlyengagedindatabasedevelopmentonricebased
farmingsystemswhichincludescroppingpatternsandnumberofadoptersonanationwidescale.

TheDepartmentofAgricultureiscurrentlynegotiatingforWorldBankAssistanceontheproject
entitledSmallholderTreeCropsDevelopmentandDiversificationProject.Theprojectaimsto
alleviatepoverty,accelerateprivateinvestmentinagroindustries,conserveandrehabilitatethe
environment,andcontributetowardsagriculturalandoveralleconomicgrowthbyincreasinglong
termoutput,valueaddedandexportsforwhichthePhilippineshasacomparativeadvantage.

Inordertoenhanceproductionandproductivitythegovernmentcontinuouslyprovidesirrigation
servicestothefarms.In1997,about1.34Mhectareswerecoveredbyirrigationanddrainage
facilities.Thiswasapproximately43percentofthetotalpotentialirrigatedareas.

6.SUMMARYANDCONCLUSIONS

TheagriculturesectorhasbeenamajorplayerinthePhilippineeconomy.Withchangingnational
andglobaltrends,thesectorhasidentifiedanumberofstrategiestobecompetitive.Astrategythat
hashelpedalleviatepovertyandincreaseproductivityiscropdiversification.Thepassagebythe
PhilippineCongressoftheAgricultureandFisheriesModernizationActin1997isagiantleap
towardsreapingthepreviouseffortsofbothgovernmentandprivatesectorsoncropdiversification.

Twoperspectivesondiversificationarepresentedherein.Oneisplantingalternatecropsafterthe
maincropandtheotherisplantingoneormorecropsinbetweenaperennialcrop.Theemphasis
oftheformerisonricewhilethatofthelatteriscoconut.Thisissobecausecropproductionareas
inthecountryaremainlydevotedtothesetwoimportantcrops.Furthermore,government
resources,overtheyears,havebeenlargelyallocatedtothesecrops,andsuchcroppingstrategies
havebeendocumented.Thereareothercroppingpatternspracticedinsomeareas,e.g.,corn
legumeandcornrootcrops.However,thesearenotfullydocumentedhence,thesearenot
discussedinthispaper.

Thereareavarietyoffactorsthataffecttheadoptionofcropdiversification.Thesearethebiotic
(soilandkindofcrop),environmental(climate),socioeconomicandinstitutionalfactors.For
emphasis,thesocioeconomicandinstitutionalfactorswerediscussedmorethantheothertwo.

Fourimportantgovernmentpoliciesthatdirectlyorindirectlyaffectcropdiversificationwere
presented.Theseare,pricingpolicy,taxandtariffpolicies,policyonpublicexpenditure,and
agrarianreform.

Past,presentandfutureprogrammesandprojectsoncropdiversificationare,likewise,presented.
Presentandfutureprogrammeslargelydependontheactiveparticipationoftheprivatesectorwith
thegovernmentprovidingtechnicalandinfrastructuresupport.

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Table1.ProductionAreaofCommercialCropsinthePhilippines,19891998(BAS)

Item 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Harvestarea 13147.1 13096.3 12983.7 12520.4 12549.0 12786.9 12574.8 13015.6 13024.7 11664.6
('000ha)
A.Cereals 7186.5 7138.3 7014.5 6529.5 6431.7 6657.3 6451.0 6686.8 6568.1 5524.2
Rice 3497.3 3318.7 3425.0 3198.1 3282.4 3651.5 3758.7 3951.1 3842.3 3170.0
Corn 3689.2 3819.6 3589.5 3331.4 3149.3 3005.8 2692.3 2735.7 2725.8 2354.2
B.MajorCrops 4725.0 4698.2 4716.2 4730.6 4873.9 4876.8 4790.4 4956.1 5110.4 4822.6
Coconut 3110.0 3112.0 3093.3 3076.7 3075.2 3082.7 3064.5 3149.0 3314.4 3115.8
Sugarcane 261.7 235.3 271.5 267.0 384 401.6 302.0 395.6 375.2 330.5
Banana 295.5 300.2 311.3 321.4 325.8 326.5 322.0 326.9 338.3 337.1
Pineapple 61.0 59.7 57.7 60.6 66.8 68.4 68.6 45.0 40.4 40.2
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Pineapple 61.0 59.7 57.7 60.6 66.8 68.4 68.6 45.0 40.4 40.2

Coffee 143.2 143.2 143.1 142.0 146.5 146.4 144.4 151.2 150.1 148.4
Mango 56.4 56.7 56.9 57.2 60.5 65.0 80.4 87.7 92.9 93.9
Tobacco 63.3 63.2 67.9 95.0 90.9 51.7 56.3 54.2 51.1 47.6
Abaca 107.7 106.7 107.4 107.0 102.2 102.2 103.1 116.8 112.5 106.3
Rubber 86.1 86.3 88.0 84.2 85.4 86.0 86.7 90.0 92.9 93.2
Cacao 18.2 18.4 17.3 16.8 16.8 16.1 16.2 15.9 15.1 15.0
Cassava 213.1 213.8 211 204.3 211.4 213.1 225.9 228.3 230.5 216.5
Sweetpotato 138.3 136.7 136.5 140.8 147.1 147.4 145.9 141.0 141.7 128.0
Peanut 50.4 44.5 39.1 44.6 44.9 47.1 47.6 28.7 26.6 24.7
Mungbean 35.7 36.7 34.3 32.7 33.1 34.0 34.9 35.5 36.4 34.6
Onion 6.5 6.4 6.4 5.8 6.5 7.6 8.7 9.8 11.9 12.8
Garlic 6.1 6.4 4.5 4.2 4.3 5.8 6.3 6.3 7.9 7.7
Tomato 19.7 20.0 19.5 18.2 15.6 17.5 17.9 16.9 17.1 14.9
Eggplant 15.4 16.4 14.5 15.5 17.4 17.8 17.6 18.1 19.0 18.1
Cabbage 6.9 6.4 6.9 7.5 10.4 10.7 8.5 8.0 7.9 7.3
Citrus 29.4 29.2 29.1 29.1 29.1 29.2 32.9 31.2 28.5 30.0
C.OtherCrops 1235.6 1259.8 1253.0 1260.3 1243.4 1252.8 1333.4 1372.7 1346.2 1317.8
Otherfibre 37.0 33.4 31.5 37.7 55.1 41.9 46.4 35.8 32.6 29.2
crops
Otherrootcrops 108.0 109.6 107.6 109.2 108.7 109.0 124.0 126.5 123.1 119.2
Tubers 125.7 135.7 134.9 132.8 132.1 133.0 143 145.6 141.8 139.7
Spices 35.9 38.6 36.1 36.9 36.8 37.0 42.1 43.6 47.3 45.5
Fruitbearing 313.2 328.0 314.5 313.9 312.3 315.0 331.5 336.3 332.9 327.0
vegetable
Leafy/Stem 166.7 171.2 172.8 174.5 171.6 171.8 179.8 181.4 177.7 172.4
vegetable
Otherlegumes 30.2 30.5 31.1 31.3 31.0 36.0 41.8 40.5 39.4 38.5
Otherfruitnuts 331.7 327.7 338.1 339.2 330.6 331.6 338.4 371 362.8 360.8
Others 87.2 85.1 86.4 84.9 65.2 77.5 86.4 92 88.6 85.5

Table2.ProductionofAgriculturalCropsinthePhilippines,19891998(BAS)

Item 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Crops('000Mt) 64207.1 61566.5 64109.3 63837.4 65766.5 68525.6 62164.8 69128.5 68301.4 57931.5
A.Cereals 13981 14173.3 14328.3 13747.8 14232.1 15057.3 14669.1 15434.9 15601.4 12378
Rice 9458.8 9319.4 9673.3 9128.9 9434.2 10538.1 10540.6 11283.6 11269.0 8554.8
Corn 4522.2 4853.9 4655.0 4618.9 4797.7 4519.2 4128.5 4151.3 4332.4 3823.2
B.MajorCrops 41648.1 38684.6 41091.1 41329.5 42776.4 44689.2 39242.2 44003.4 44631.2 37789.3
Coconut 11810.4 11940.4 11290.9 11404.9 11328.4 11207.0 12183.1 11368.1 12118.5 10905.3
Sugarcane 21424.8 18666.9 21824.5 21801.9 22915.1 24695.2 17774.4 23142.2 22273.1 17347.9
Banana 3190.3 2913.3 2951.1 3059.2 3144 3192.6 3489.5 3311.8 3773.8 3560.8
Pineapple 1178.8 1156.8 1117.1 1135.2 1287.4 1331.5 1442.8 1542.2 1638.0 1495.1
Coffee 155.9 134.1 133.4 127.6 134.2 132.6 134.0 119.0 130.0 121.3
Mango 370.1 337.6 307.0 330.0 440.1 541.7 595.1 896.0 987.1 931.5
Tobacco 79.9 81.7 85.2 117.9 104.8 56.9 63.7 64.9 65.3 71.1
Abaca 88.4 80.5 85.2 84.3 59.5 66.4 64.8 70.4 67.1 71.3
Rubber 171.9 185.4 180.7 172.5 174.3 178.5 181.2 192.7 221.3 227.6
Cacao 9.4 9.9 9.6 7.5 7.7 7.9 7.9 7.9 7.8 7.4
Cassava 1846.9 1854 1815.7 1784.9 1843.0 1890.5 1905.9 1910.8 1958.0 1786.7
Sweetpotato 60.3 668.9 662.3 677.2 659.1 667.8 667.9 654.2 631.4 568.1
Peanut 37.6 34.8 31.4 34.06 34.0 36.6 36.2 33.5 25.8 25.0
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Mungbean 25.1 26.7 25.1 23.2 23.4 24.2 26.7 26.8 27.5 27.7
Onion 65.3 61.5 60.3 56.7 61.5 73.6 88.4 83.3 85.4 87.7
Garlic 17.2 17.9 12.4 11.8 12.3 15.7 17.2 18.6 20.2 19.3
Tomato 178.7 184.0 177.2 165.4 138.5 150.6 155.8 162.6 166.4 138.3
Eggplant 111.6 112.7 104.0 110.4 111.7 123.5 130.7 157.6 195.0 180.1
Cabbage 75.9 68.3 75.8 83.2 155.1 151.3 130.0 98.1 95.9 85.5
Citrus 149.6 150.2 142.2 141.7 142.4 145.1 146.8 142.7 143.6 131.6
C.OtherCrops 8578.0 8708.6 8689.9 8760.1 8757.9 8779.1 8253.5 9690.2 8068.8 7764.2
Otherfibre 64.6 58.4 77.6 92.9 65.6 65.1 68.3 61.4 51.7 43.2
crops
Otherrootcrops 121.3 132.3 128.7 128.5 132.0 132.3 133.0 151.0 137.3 132.5
Tubers 214.0 201.4 198.4 206.4 212.1 213.0 215.0 216.7 188.2 181.6
Spices 26.3 27.0 26.5 26.8 27.6 28.0 30.0 32.4 28.1 27.1
Fruitbearing 2887.6 2910.2 2812.7 2895.4 2973.5 3005.3 2812.2 3134.1 2748.3 2648.9
vegetables
Leafy/Stem 1097.2 1080.2 1124.6 1110.4 1086.1 1072.6 1104.4 1308.5 1143.8 1103.6
vegetables
Otherlegumes 34.0 34.3 35.0 34.7 35.7 35.9 37.0 35.2 30.5 29.5
Otherfruits 3639.3 3764.9 3784.4 3762.2 3681.0 3680.8 3307.0 4101.3 3233.2 3108.0
Others 493.7 499.9 502.0 502.8 544.4 546.1 546.6 649.6 507.7 489.8

Table3.Yield(tonnes)PerHectareofCommercialCropsinthePhilippines,19891998

Item 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
A.Cereals
Rice 2.70 2.81 2.82 2.85 2.87 2.88 2.80 2.86 2.93 2.69
Corn 1.22 1.27 1.29 1.38 1.52 1.50 1.53 1.52 1.58 1.62
B.MajorCrops
Coconut 3.79 3.84 3.65 3.71 3.68 6.34 3.98 3.61 3.65 3.50
Sugarcane 81.86 79.33 80.38 81.66 59.67 61.49 58.85 58.49 59.36 52.49
Banana 10.79 9.70 9.48 9.52 9.65 9.78 10.84 10.13 11.15 10.56
Pineapple 19.32 19.38 19.36 18.73 19.27 19.46 21.03 34.27 40.54 37.19
Coffee 1.08 0.94 0.93 0.89 0.91 0.90 0.92 0.78 0.86 0.81
Mango 6.56 5.95 4.39 5.77 7.27 8.33 7.40 10.21 10.62 9.92
Tobacco 1.26 1.29 1.25 1.24 1.15 1.10 1.13 1.19 1.27 1.49
Abaca 0.82 0.75 0.79 0.78 0.58 0.65 0.63 0.60 0.59 0.67
Rubber 1.99 2.15 2.05 2.05 2.04 2.07 2.09 2.14 2.38 2.44
Cacao 0.51 0.54 0.55 0.45 0.45 0.49 0.48 0.49 0.51 0.49
Cassava 8.66 8.67 8.60 8.74 8.71 8.87 8.43 8.37 8.49 8.25
Sweetpotato 4.77 4.89 4.85 4.81 4.48 4.53 4.58 4.63 4.45 4.43
Peanut 0.75 0.78 0.80 0.76 0.75 0.77 0.76 1.17 0.96 1.01
Mungbean 0.70 0.73 0.73 0.71 0.71 0.71 0.76 0.75 0.75 0.80
Onion 10.46 9.61 9.42 9.77 9.46 9.68 10.16 8.50 7.17 6.85
Garlic 2.81 2.79 2.75 2.81 2.86 2.71 2.73 2.95 2.55 2.51
Tomato 9.07 9.20 9.08 9.08 8.87 8.60 8.70 9.62 9.73 9.28
Eggplant 7.24 6.87 7.17 7.12 6.42 6.93 7.43 8.71 10.26 9.95
Cabbage 11.00 10.67 10.98 11.09 14.91 14.14 15.29 12.26 12.14 11.71
Citrus 5.08 5.14 4.88 4.87 4.89 4.97 4.46 4.57 5.03 4.38
C.OtherCrops
Otherfibrecrops 1.74 1.75 2.46 2.46 1.19 1.74 1.47 1.71 1.58 1.48
Otherrootcrops 1.12 1.21 1.19 1.18 1.21 1.12 1.07 1.19 1.11 1.11
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Tubers 1.70 1.48 1.47 1.55 1.60 1.70 1.50 1.48 1.32 1.29

Spices 0.73 0.69 0.73 0.72 0.75 0.73 0.71 0.74 0.59 0.59
Fruitbearingvegetables 9.21 8.87 8.94 9.22 9.52 9.21 8.48 9.31 8.25 8.10

Leafy/Stemvegetables 6.58 6.31 6.51 6.36 6.33 6.58 6.14 7.21 6.43 6.40
Otherlegumes 1.12 1.12 1.12 1.11 1.15 1.12 0.88 0.87 0.77 0.76
Otherfruits 10.97 11.48 11.19 11.09 11.13 10.97 9.77 11.05 8.91 8.61
Others 5.66 5.87 5.81 5.92 8.35 5.66 6.32 7.06 5.73 5.72

Table4.GrossValueAddedinAgricultureandSharetoGrossDomesticProduct,1989
1999(BAS)

%Share %Share
Year Levels(PhP)* %Change Year Levels %Change
GNP GDP GNP GDP
ATCURRENTPRICES ATCONSTANTPRICES
1989 117640 12.87 12.71 1989 86541 12.55 12.37
1990 130290 10.75 12.11 12.09 1990 85870 0.78 11.91 11.91
1991 141880 8.9 11.24 11.37 1991 88714 3.31 12.24 12.38
1992 158258 11.54 11.42 11.71 1992 87662 1.19 11.89 12.19
1993 192767 21.81 12.85 13.07 1993 89660 2.28 12.00 12.21
1994 209198 8.52 12.05 12.36 1994 92775 3.47 11.80 12.11
1995 244600 16.92 12.49 12.83 1995 93269 0.53 11.31 11.63
1996 268134 9.62 11.86 12.35 1996 96418 3.38 10.90 11.36
1997 263560 1.71 10.45 10.89 1997 99973 3.69 10.75 11.20
1998 251240 4.67 8.99 9.42 1998 87118 12.86 9.36 9.81
1999 309915 23.35 9.88 10.37 1999 78267 10.16 8.12 8.54
GROWTHRATE19891998 10.5 GROWTHRATE19891998 0.83

*inPhilippinePeso

Table5.SelectedMacroeconomicandAgricultureSectorStatistics,19891998(BAS)

Item 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
GNP(Million 689693 720955 724754 737139 746921 786136 825164 884226 931118 931763
Pesos)
GrowthRate 5.73 4.53 0.52 1.71 1.33 5.25 4.96 7.16 5.30 0.07
(%)
GVAIN 150128 153414 158225 159385 163556 168419 171069 177553 183661 171548
AGRICULTURE
(MillionPesos)
AGRICULTURE 4.24 2.19 3.1 0.73 2.62 2.97 1.57 3.79 3.41 6.56
SECTOR
GROWTH
RATE(%)
Crops 2.64 0.78 3.31 1.19 2.28 3.47 0.53 3.38 3.69 12.86
Livestock 10.34 3.18 1.23 0.79 4.66 4.78 5.18 6.6 5.34 4.14
Poultry 10.81 10.22 3.36 10.87 6.19 2.62 5.25 11.27 6.84 0.34
Fishery 3.56 3.9 3.96 1.17 1.37 1.14 3.79 0.48 0.04 1.21
Agricultural 3.66 8.2 1.7 4.23 0.74 1.49 10.54 5.11 1.96 5.89
Activitiesand
Services
POPULATION(MillionPersons)
PHILIPPINES 60.10 61.48 62.87 65.34 66.98 68.62 68.35 69.95 71.54 73.14
Urban 25.32 26.25 27.19 28.14 33.65 34.47 34.45 35.25 36.05 36.85

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Rural 34.78 35.23 35.68 36.11 33.33 34.15 33.90 34.70 35.49 36.29
AGRICULTURALLABOURANDWAGES
EMPLOYMENT 9.90 10.09 10.29 10.73 11.14 11.29 11.15 11.64 11.32 10.93
IN
AGRICULTURE
(MillionPersons)

Table6.AgriculturalForeignTradeStatistics,19891998(BAS)

Item 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Value(in 1707.96 1701.13 1844.67 1866.49 1918.25 2072.02 2499.06 2306.64 2337.57 2224.67
millionUS$)
ofagricultural
exports
Value(in 1315.33 1555.23 1259.17 1559.71 1626.20 2114.26 2648.65 3095.85 3101.80 2894.57
millionUS$)
ofagricultural
imports
VOLUMEOFAGRICULTURALEXPORTS('000Mt)
TenPrincipalExports
Sugar 210.26 246.98 274.14 208.06 324.19 182.11 153.21 317.70 197.82 184.80
Coconutoil 763.49 773.63 839.89 882.22 859.20 848.76 1340.41 792.65 1107.65 1177.03
Banana 851.05 839.78 955.41 820.77 1153.47 1155.18 1213.41 1253.07 1153.69 1147.11
Pineapplein 191.49 179.13 194.28 197.54 237.13 459.55 191.65 203.48 185.30 84.23
syrup
Copraoil 477.12 643.90 612.45 539.69 488.49 574.22 756.34 474.55 571.00 543.77
Cakeormeal
Desiccated 94.52 75.34 80.74 85.22 93.34 75.11 73.06 69.58 76.79 71.89
coconut
Tuna,frozen 57.06 55.07 51.23 50.29 71.97 78.37 68.30 74.35 78.20 78.92
except
pellets
Coffee,raw 24.97 9.10 4.63 1.39 0.72 4.10 2.42 0.49 0.54 0.71
orgreen,not
roasted
Copra 79.47 97.30 80.69 34.20 26.77 23.80 33.75 3.09 6.92 3.60
Abaca(in 179.64 177.29 156.32 141.11 123.23 145.15 159.83 138.04 156.30 192.30
'000bales)

Cereals 16.08 0.09 11.86 35.14 17.93 45.00 0.07 0.23 0.37 0.21
Rice 16.00 0.00 10.01 35.10 0.54 0.00 0.00 0.00 0.00 0.04
Corn 0.08 0.09 1.85 0.04 17.39 45.00 0.07 0.23 0.37 0.17
VOLUMEOFAGRICULTURALIMPORTS
Cereals('000 392.03 936.94 0.36 1.24 202.25 1.05 471.27 1264.72 1025.36 2632.95
Mt)
Rice 219.77 592.73. 0.06 0.64 201.61 0.16 263.25 862.38 722.40 2170.83
Corn 172.26 344.21 0.30 0.60 0.64 0.89 208.02 402.34 302.96 462.12
VALUEOFAGRICULTURALIMPORTS(millionFOBUS$)
Cerealsand 337.01 470.87 226.24 301.04 352.15 394.65 533.23 843.08 771.12 980.80
cereal
preparations

Fertilizers, 103.69 104.07 131.06 144.89 124.94 169.61 194.53 194.62 213.96 161.77
manufactured

Dairy 216.56 252.84 210.73 252.80 260.50 316.36 409.53 388.46 406.01 300.30
productsand
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Feedingstuff 176.97 173.91 152.95 185.66 234.31 194.94 263.05 197.26 310.69 282.84
foranimals
excluding
unmilled
cereals

Tobaccoand 65.50 65.36 81.80 102.80 96.50 177.92 118.81 71.52 141.48 107.35
tobacco
manufactures

Coffee,tea, 13.68 21.70 23.65 26.45 32.18 44.89 52.24 49.66 78.94 66.09
cocoa,
spicesand
manufactures

Fish, 36.50 47.93 62.19 61.13 48.78 52.78 58.76 68.88 70.18 57.02
crustaceans,
mollusksand
preparations

Meatand 17.76 20.51 16.81 23.42 29.50 57.32 68.97 96.71 129.86 92.10
meat
preparations

Vegetables 51.00 50.25 37.08 54.42 65.68 99.36 96.78 122.78 137.31 108.08
andfruits

Fixed 18.39 18.43 16.25 23.99 13.05 24.27 18.17 32.31 32.80 30.70
vegetableoil
andfats

Cereals 70103.57 166539.93 132.07 428.32 36057.66 495.37 109105.34 379743.26 265443.27 664182.73
Rice 57963.00 116889.70 36.69 248.89 35760.49 75.39 75665.27 294042.40 211324.02 585867.36
Corn 12140.57 49650.23 95.38 179.43 297.17 419.98 33440.07 85700.96 54119.25 78315.37

Table7.DominantRiceCroppingPatternsinFourRegionsinLuzon,Philippines(adopted
fromAdriano,1989)

Region CroppingPattern
CAR Ricerice,ricegarlic,ricetobacco,ricelegume
I Ricerice,ricelegumes,ricefallow,ricetomato,ricecorn
II Ricerice,ricefallow
III Ricerice,ricefallow

Table8.SuccessfulCropDiversificationPatternsinthePhilippines

CroppingSystem Location Yield/ha Profit/ha Reference

1.Riceonion Talavera,Nueva 3.43 6,116.00 Agulto,1989
Ecija
2.RiceGarlic Laoag,IlocosNorte 1.72.4 14,006.00 Adriano,1989
17,249.00
3.RicePeanut IlocosRegion 1.80 25,990.00 Gonzales,
1989
4.RiceMungbean IlocosRegion 0.88 6,147.00 Gonzales,
1989
5.RiceOnion CentralLuzon 10.66 64,380.00 Gonzales,
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5.RiceOnion CentralLuzon 10.66 64,380.00 Gonzales,
1989
6.Coconut+Cacao Murcia,Negros 30,202.50 PCARRD,
1993
7.Coconut+Passionfruit Lucban,Quezon 30,000.00 PCARRD,
1993
8.Coconut+banana SouthernMindanao ROI=163631% PCARRD,
1993
9.Coconut+Pineapple SouthernMindanao ROI=68% PCARRD,
1993
10. Jaro,Leyte 18,892.00 PCARRD,
Coconut+Pineapple+Cacao+Banana 1993

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