ASEAN Agriculture Summit: Competitive analytics
HOW DOES THE PHILIPPINES compare with its ASEAN peers? Background. On October 4 2017, I spoke at the Association of Southeast Nations (ASEAN) Agriculture Summit upon the invitation of ASEAN Business Advisory Council Chair Joey Concepcion.
My objective was to compare the performance of ASEAN countries in agriculture and trade. Five large ASEAN [nations] were selected: the Philippines, Indonesia, Malaysia, Thailand, and Vietnam. The main sources of data were the Food and Agriculture Organization (FAO), United Nations (UN), and United States Department of Agriculture (USDA) Economic Research Service.
Collation and analyses of basic data were undertaken at the Center for Food and Agri Business of the University of Asia and the Pacific (UA&P). The UA&P research has been quoted in various media. Sadly, some media did not bother to attribute their research origins.
The analysis focused on six metrics: (a) national and rural poverty, (b) total factor productivity, (c) land productivity, (d) land productivity growth, (e) crop diversification, and (f) trade.
National and rural poverty. The Philippine national poverty Incidence of 21.6 percent is double that of [the] ASEAN-4 weighted average. This is the case, too, for [the] rural poverty incidence of 30 percent.
Rural poverty is a key development metric as some three quarters of the poor reside in the rural sector. Agriculture and fishery are the main occupations in that sector. Agri-manufacturing, a main job source in other countries, is underdeveloped principally due to a lethargic agriculture sector.
Total factor productivity (TFP) is the most informative measure of long-term agricultural productivity. TFP covers land, labor, capital, and material resources used in production and compared to total crop and livestock output (USDA).
The Philippines lags behind its ASEAN peers in TFP. Malaysia and Vietnam posted consistent growth for the past 30 years.
Poverty Incidence, % (Percent) Headcount At National Poverty Line TOTAL Rural Urban Long-Term TFP, 1981-2013 (Percent growth per year) Malaysia Indonesia Vietnam Thailand Philippines
11.3 14.2 8.3
Malaysia Philippines Thailand Vietnam
3.01 0.38 1.17 0.06 0.18
0.6 1.6 0.3
21.6 30.0 11.3
10.5 13.9 7.7
13.5 18.6 3.8