CV agri share to regional economy going downhill

The agriculture sector in Central Visayas is challenged on how it can regain optimum growth in the medium term, considering its declining contribution to regional economic output in the last six years.

From 2011 to 2016, agriculture's share to the gross regional domestic product (GRDP) consistently declined from a high of 8 percent in 2011 to 5.4 percent in 2016.

On the average, the sector accounted for a mere 6.5 percent of the GRDP during the six-year period.

The sector grew 0.27 percent on the average in the last six years.

In terms of employment the sector employed an average of 900,667 persons per year from 2011 to 2016, accounting for almost 29.4 percent of total employed persons in the region for the period.

Real wage rates of agricultural farm workers only averaged P147.59 a day from 2011 to 2015, less than half of the daily minimum wage of a non-agricultural worker.

Average labor productivity in the sector for the six-year period was only P31,500, very much lower than the national average of P64,189.

Efren Carreon, regional director of the National Economic and Development Authority, said based on the 2017-2022 Regional Development Plan, there has to be a focus on sustainably boosting farm productivity and competitiveness of agricultural products to increase farm income, and reducing inequality in economic opportunities.

He said there is a need to invest in new, practical and proven approaches to food production.

"[And] provide the needed machinery, infrastructure and post harvest facilities," he added.

While the region continues to grow economically, its agriculture sector hasn't been able to ride on the continued growth of the economy.

Carreon noted economic growth is necessary but not sufficient for poverty reduction.

He said more needs to be done to achieve inclusive growth.

Among the challenges of the sector today include low productivity in farm and fishery sectors; low competitiveness of farm products; its vulnerability to weather disturbances and climate change; and limited agricultural land suitable for farming.

Carreon said the RDP is looking at a two-pronged approach to inclusivity by increasing small farmers and fisherfolk's access to economic opportunities while expanding opportunities of those who are currently engaged in producing food and non-food farm products.

The RDP also targets to increase the gross value added of agriculture over the next six years, from the baseline value of 2.3 percent to within 2.8-2.9 percent by the end of the plan period.

Faster growth rates in gross value added would necessarily mean that corresponding increases in the value of agricultural and fishery production.