Rough start for 2019 for agri sector as ‘Usman’ damage tops M
The ambivalence, the ups and downs we’ve experienced in 2018 set off an environment of “cautious optimism” both in the political scene and the business arena this year.
Jonathan “Jonas” L. Ravelas, first vice president and chief market strategist of BDO Unibank, used the Latin phrase Semper Fidelis or Semper Fi, to describe the 2019’s headwinds and tailwinds.
This Latin phrase is also the guiding principle or motto that was adopted by the US Marime Corps upon the initative of of Col. Charles MaCawley. It means “Always Faithful” or “Always Loyal.” The importance of this maxim cannot be overlooked as it is incorporated in the US Marime Corps’ seal – the symbols Eagle, Globe, and Anchor emblem holds a ribbon emblazoned with Semper Fidelis.
Semper Fi is a catchy abbreviation, which to Mr. Jonas is an essential presentation tool that can easily be remembered by prospective and investing clients.
Curious, the forever student in me intently listened to Mr. Jonas as he walked through what the S’s, the P’s... and the E’s stand for.
S – sentiment remains cautiously optimistic.
E – economic indicators mixed but some shows sign of stabilization.
M – momentum early stages of a bounce.
P – price per earning is at reasonable levels compared to start of 2018.
E – earnings to improve in 2019 at 10 percent from 7 percent the year past.
R – risks of US dollar appreciation, oil could still spark a surprise, which could trigger regulatory challenges as yields will continue to rise globally.
F – foreign exchange (peso-dollar exchange rate) is stabilizing, though still vulnerable to weakness, ‘54 levels, a possibility.
I – interest rates to climb due
The country’s agriculture sector is having a rough start for the year, with nearly a billion worth of farm output recently wiped out by Tropical Depression “Usman.”
On Thursday, the Department of Agriculture (DA) went full blast in distributing interventions in areas hit by Tropical Depression Usman, a deadly storm that hit some parts of the Philippines during the last days of 2018.
“Usman” so far brought damages and losses worth 1 816.17 million to the farm sector but DA’s Disaster Risk Reduction and Management Council (DRRMC) said this could further go up as the monitoring continues.
The extent of the damage span to as much as 40,075 hectares, destroying as much as 18,634 metric tons (MT) worth of farm output and affecting 36,902 farmers and fisherfolks.
Affected crops are rice, corn, high-value crops, livestock, fisheries and irrigation facilities, while areas that were badly hit include the provinces of Albay, Camarines Sur, Catanduanes, Sorsogon, Northern Samar,
Talk back to me at sioni731@gmail.com Samar, Quezon, and Oriental Mindoro.
Agriculture Secretary Emmanuel Piñol said the DA is having a “rough start” for the year. This was amid the interventions the agency has to make for the sector’s quick recovery.
On the very first day of work since holiday break, the DA immediately dispatched recovery intervention teams to provinces affected by Usman.
The teams will be tasked to ensure that recovery interventions such as seeds and farm inputs are delivered immediately so the farmers could replant.
“While the estimated damage to rice is very high, the farmers could still recover as most of the areas damaged have just been planted. The fast delivery of interventions is critical so that farmers could replant immediately,” Piñol said.
The Philippine Crop Insurance Corp. (PCIC) has already been directed to fasttrack the damage assessment so that insurance payments could be released immediately, while the Agricultural Credit Policy Council (ACPC) was told to prepare Survival and Recovery Loan Funds.