More support needed to boost growth of agri sector in Davao Region

Source: MindaNews

DAVAO CITY (MindaNews / 26 April) - With an expenditure growth of only 0.6 percent in the agricultural sector of Davao Region, there is a need to push for support for local farmers and local agricultural products, an official from the National Economic Development Authority - Region 11 (NEDA-11) said.

Davao Region, known as the "Fruit Basket of the Philippines," is famous for its agribusiness industry that exports a variety of tropical fruits like bananas, pomelos, durians, mangosteens, as well as flowers, tuna, and other fish products.

"We need to push for allowing the agriculture sector to grow more para secured yung food security for the region. We continue to push the growth for the sector," Mario Realista, NEDA-11 chief economic development specialist, said during the news conference on the 2023 economic performance of Davao Region at Seda Hotel, Thursday morning.

Philippine Statistics Authority (PSA) records showed that the agriculture, forestry, and fishing (AFF) sector contributed P147.18 billion in 2023, compared to the P146 billion output in 2022, or a growth of 0.6 percent for Davao Region.

However, the region maintains its 8.2-percent AFF sector expenditure's share for the second straight year, in 2022 and in 2023. PSA data said the region is still the fourth-largest contributor to the AFF sector in the country, behind Central Luzon (13.9 percent), Northern Mindanao (10.4 percent), and Western Visayas (8.9 percent).

The national economic AFF sector growth is recorded at 1.2 percent in 2023, compared to its 0.5 percent growth in 2022.

PSA measures the economic performance of a region through the Gross Regional Domestic Product (GRDP) and the Gross Regional Domestic Expenditure (GRDE) in its constant 2018 prices.

The GRDP is the total value of all goods and services produced within a specific region in a given period, while the GRDE refers to the total amount of money spent on goods and services within a region, which includes consumption, investments, government spending, and net imports and exports.

Despite NEDA's long-term target to position Davao Region as a tourism and logistics hub of Southern Mindanao, Realista said it is "not their strategy to downplay agriculture growth."

Meanwhile, Anthony Abalos, PSA-Davao Region expenditure and integrated accounts division officer-in-charge, said the "still low growth rate" can be attributed to the volatile agricultural prices in the market.

Abalos said Dabawenyos must produce more agricultural products themselves and consume those produced by Filipinos to contribute to the regional agricultural growth rate as well.

The region recorded a 0.2-percent decline in net exports in 2023.

Net exports is the difference between the total values of exported and imported goods and services.

Abalos said this shows that "Dabawenyos spent more on importing goods and services than they spent on exporting them." He said this can also be seen in the AFF sector.

"With the continuous projects from the government, we continue to produce agricultural products, but somehow, we are encouraging agricultural products to be consumed by the households," he said.

The official explained that once raw agricultural products undergo value-adding, or turned into other products, such as banana to banana chips, the expenditure for it will be counted under services.

He, however, said PSA has "no definite way to draw a line for now" between value-added and raw agricultural products.

On the part of the Department of Agriculture, the new regional director Macario Gonzaga said during the agency's media forum Tuesday that it will focus on "achieving food security, promoting environment-friendly practices and fostering a profitable industry in the agri-fishery sector," amid the El Niño phenomenon.

DA-11 said the mitigation measures for the current El Niño include "the provision of drought-resistant rice seed varieties, plastic drums for rainwater catchment, construction of spring development projects in the upland areas, and assessment of irrigation network systems."

"We have to upgrade farm incomes, our help to our farmers, fishermen, maraming problema ngayon (we are facing many problems now), we need to catch up... we need sustainable programs, the programs which will answer our farmers' needs," Gonzaga said.

The Regional Development Council-Region 11's 2023 Davao Regional Development Report said the region "shall pursue the modernization of the agri-fishery sector, enhancing its resilience and sustainability" such as boosting the efficiency of AFF production, expanding access to markets and AFF-based enterprises, and improving the resiliency of AFF value chains. (Ian Carl Espinosa/MindaNews)