SITUATION OF THE AGRICULTURAL & RURAL SECTOR
I. Contribution of AGRICULTURE to the Regional Economy



The region’s economy is highly dependent on agriculture. For 2008, the agri-fishery sector comprising 31% of the total regional output slightly slowed down from 2.3% in 2007 to 2.0% growth in 2008. The continued slump in the livestock and poultry industry pulled down the over all industry growth. Aside from this, floods brought by continuous heavy rains damaged agricultural crops and facilities especially in Camarines Norte, Camarines Sur and Albay. Production of rice and corn increased at a slower rate than the growth in area harvested thus resulting to lower yields or productivity. This condition has implications on food sufficiency with production growing at a slower rate vis-à-vis population growth rate.

GROSS REGIONAL DOMESTIC PRODUCT
by INDUSTRIAL ORIGIN Region V: 2008
(in thousand pesos at current prices)
 Industry Sector  2008

Agriculture, Fishery & Forestry  35,254,155
Agriculture and Forestry 35,246,631
  Fishery 7,524
 Industry Sector 55,320,983
 Mining and Quarrying  16,171,775
 Manufacturing  2,788,493
 Construction 19,340,562
 Electricity and Water 17,020,153
 Service Sector  99,055,063
 Transport, Communication &
Storage
 13,382,034
 Trade 20,595,176
 Finance 2,900,763
Ownership of Dwellings & Real Estate 15,563,217
Private Services   24,595,421
Government Services 22,018,451
Gross Regional Domestic Product 189,630,201

Employment Generation

The average number of employed persons in the region was 1.97 million in 2008, an increment of 10 thousand from the previous year.

Employment rate decreased from an average of 94.7 percent in 2007 to 94.3 percent in 2008. Conversely, unemployment rate increased from an average of 5.3 percent in 2007 to 5.6 percent in 2008. The global economic slowdown in the last quarter of the year and the resulting job layoffs contributed to the decrease in employment rate. Underemployment rate, on the other hand, decreased from an average of 37.1 percent in 2007 to 35.8 percent in 2008. This implies that the implementation of shortened work hours in lieu of retrenchment has not taken off in the region.

This year, the agriculture sector in the region , generated a total of 9,619 jobs. The jobs generated from the new agribusiness land contributed the highest share with 6,485 jobs. Construction and rehabilitation of irrigation facilities generated 1,030 jobs. Farm to market roads (FMR) gave 1,996 jobs while post harvest also generated 108 jobs.

Sufficiency Level

The agriculture sector in the Bicol region did well in 2008. Based on the statistics released by the Bureau of Agricultural Statistics, palay production for the year was recorded at 997,581 metric tons or .6% increase over that of 2007 production. The area harvested for palay is 291,018 with an average yield of 3.46. Rice sufficiency for the region was recorded at 100.06 %. For last year, the total production, was only 991,430 metric tons harvested from 286,374 hectares. The region’s share in the national rice production was 5.93.

The corn sector on the otherhand produced a total of 202,675 metric tons which is 3.5% higher than the 2007 production which was 195,826 metric tons. The region’s share to the national corn production is 2.92 %. The average yield obtained for 2008 is higher than that of 2007 on both hybrid and OPV corn varieties.The reduction in the area planted to corn was primarily due to the high cost of fertilizer and the unfavorable weather condition.

 COMMODITY

 Production

 % Change
Production

 Total Demand
2008 (mt)

 % Sufficiency

2007 (mt) 

2008 (mt)
 Palay  991430  997581  0.6    
 Rice  591884  595556  0.6  595173  100.06
 Corn  195827  202675  3.5  200002  101.34
 HVCC  251555  259231  3.1    
 Pineapple  116815  111529  -4.5  150527  74.09
 Mango  1438  1622  12.8  59136  2.74
 Coffee  340  346  1.8    
 Banana  55459  67598  21.9    
 Vegetable  77318  78136  1.1  215039  36.34
 Source: BAS          
HVCC production which includes pineapple generated 74.09% sufficiency and vegetables (ampalaya, eggplant, tomato, squash, okra, pechay, kangkong, string beans and habitchuelas) were 36.34% sufficient by the end of the year. HVCC, composed of pineapple, mango, coffee, banana and vegetables showed a total of 3.1% increase in production in 2008 with banana attaining the highest growth with its 21.9% increase in production.

ABACA
The abaca industry recovered in fiber production from the negative performance in 2007 due to the damaged brought by typhoons Milenyo and Reming. Abaca fiber production significantly increased by 31 percent from 125,664 bales in 2007 to 164,659 bales in 2008. This was about 30 thousand bales more than the production in 2006 before the two strong typhoons.
Seven hectares of abaca nurseries were established and 49.5 hectares maintained through the collaboration of FIDA, LGUs and NGOs. A total of 853.08 hectares were developed as new abaca farms and 5,711.5 hectares of abaca farms were rehabilitated in 134 barangays involving 2,150 farmers. The treatment of abaca diseases were also undertaken through rouging in 2,724.2 hectares involving 867 farmers. About 32 thousand plantlets from the three tissue culture laboratories being maintained by FIDA 5 were produced and distributed to 49 farmer recipients. The abaca farming sector generated 1,706 new jobs.

COCONUT

Bicol region has approximately 651,571 hectares planted to coconut and about 292,671 farmers are dependent on this crop. The 3rd quarter PCA report showed that production was recorded at 112,715 metric tons . This was due to the effects of typhoon Reming and Milenyo. The regional requirement of the 7 oil mills was registered at 2.74 billion nuts annually based on the daily rate capacity of 2,740 MT of copra. To sustain production campaign for coconut planting and replanting, farm diversification as well as intensified rehabilitation of coconut lands through fertilization were undertaken. A total of 296,890 seedlings were planted covering 2,968.9 hectares and benefiting 2,017 farmers. About 4,346 hectares were also rehabilitated through fertilization wherein almost half a million trees were fertilized. The maintenance and rehabilitation of 113.50 hectares were also carried out. Overall, the agribusiness development program of PCA generated 11,623 jobs.

OTHER PROGRAMS AND PROJECTS

Accelerated Hunger Mitigation Program

This program is implemented to reduce hunger and improve nutrition with a total budget of P 45,217,354.83.

For the Programang Gulayan sa Masa 72,488 of vegetable seeds,were distributed. A total of 87,975 backyard garden were established benefiting 54,500 households.

Programang Gulayan sa Bawat Paaralan on the otherhand , provided seeds and garden tools to schools . About 922 school gardens were maintained and provided technical assistance.

For palay seeds subsidy DA distributed 82,322 bags of palay seeds to rice farmers under 50–50 scheme, 17 units flatbed dryers and constructed one (1) FMR road section Corn seeds subsidy - distributed 604 Hybrid and OPV corn seeds and developed 145.13 hectares in KALAHI areas.

Manokan ng Bayan - distributed 4,026 native chickens to farmers in Masbate and Cam. Norte.
Kambingan ng Bayan distributed 697 goats to farmers in Masbate, Camarines Sur and Camarines Norte and Sorsogon.
Milk Production and Feeding Program- 1,700 pre-school and elementary students benefitted from the milk feeding program of the Sorsogon Dairy Farm sponsored by Sen Francis Edcudero. Aside from this, 2,650 children from Magallanes, 1,450 from Gubat, 1,100 from Sorsogon and 100 from Sorsogon City, benefitted from the milk feeding program.

Agricultural Competitiveness Enhancement Fund (ACEF)

Seven projects were approved and have been released full funding for a total project cost of P75.05M under the Agricultural Competitiveness Enhancement Fund (ACEF).

Four projects were approved in Camarines Sur, namely: prawn hatchery (Ragay), tunnel vent broiler production (Calabanga), expansion of broiler production using tunnel vent housing system (Naga City), and bagsakan center (Naga City). The other 3 projects are in Camarines Norte, namely: integrated Formosa pineapple processing (Labo), expansion of swine production (Daet), and improvement of facilities for palay production (Vinzons).

The Department also facilitated the processing of ten project proposals for possible ACEF funding: National Technical Committee deliberation (4), National Technical Secretariat review (2), and proponents’ completion of ACEF requirements (4).

Title of Project

Project Cost
Ragay Prawn Hatchery
Ragay Camarines Sur
  ACEF -11.2M
Equity-3.3 M
Tunnel Vent Broiler Production Calabanga Camarines Sur  ACEF -6M
Equity -
1.88M
Integrated Formosa Pineapple Processing Labo, Cam Norte  ACEF - 2.1M
Equity -
2.6M
Improvement/Expansion Swine Production
Daet, Cam. Norte
 ACEF -14.9M
Equity -6.54M
Improvement of Facilities for palay production
Vinzons, Cam. Norte
ACEF - 14.9M
Equity - 9.93M
Expansion of Broiler Production using tunnel
Pacol Naga City
 ACEF - 10.5M
Equity -3.9M
Vent Housing System
Naga City Bagsakan Center
Naga City
 ACEF - 14.9M
Equity -15M


Strengthening the Agro-Industrial Sector in Bicol and Caraga (SAIS-BC)

Under the grant assistance of the Spanish government, through its Agencia Española de Cooperacion Internacionale (AECI), DA-RFU5 worked jointly with the Philippine Coconut Authority (PCA) and the Fiber Industry Development Authority (FIDA) to implement the special project, Strengthening the Agro-Industrial Sector in Bicol and Caraga (SAIS-BC).

With its main objective to facilitate technology adoption and resource utilization in the Bicol and CARAGA regions, SAIS-BC focuses on value-adding of selected agricultural commodities via the establishment of processing facilities, institutional development and capability building, and marketing assistance.
In its first year of implementation of this three-year special project, a total of Ps. 15.7M has gone to the construction of buildings (Ps. 6.1M) and provision of postharvest equipment (Ps. 9.6M) to the 18 beneficiary organizations in the Bicol region, where the selected crops are pineapple, abaca, cassava and coconut.

Commodity

Postharvest Facilities

 Equipment
Pineapple Machine sheds (4)
Fruit processing center (1)
Fiber mechanical dryer (1)
 Fiber decorticators (15)
Fiber baling machine (1)
Compressor set (1)
Abaca Stripping sheds cum bodegas (4)
Handlooms (18)
Spindle machines (5)
Twining devices (40)

Coconut

 Work sheds (4)
Sieving/screening machines (5)

Decorticating machines (5) Baling machines (5)
Twining machines (5)
Electric pumps (4)

Cassava

 

 

 Mini-warehouses with pavement (3)

 

 

4WD tractor (1)
Hauling trucks (2)
Granulators (15)
Weighing scales (4)
Bag closers (4)
Mesh nets (38)
Tarpaulins (4)


Restoring Food Security in Typhoon Affected Areas in Bicol

This is a project implemented by the Food and Agriculture Organization of the United Nations (FAO) in collaboration with DA, LGUs and the Government of Spain through the Spanish Agency for International Development Corporation, with funding assistance of Ps 8,813,728 covering four province namely: Albay, Camarines Sur, Catanduanes and Sorsogon. The project provides agricultural inputs and technical assistance to farmers affected by the series of typhoons in 2006.

Thirty one (31) municipalities benefitted from the project wherein 7, 445 farmer beneficiaries became recipient of 8,400 packets assorted vegetable seeds, 2,186 kilograms upland rice seeds, 5,218 kilograms corn seeds, 99,700 pieces fruit tree seedlings,15,308 bags organic fertilizers and 248 sets garden tools.

Infrastructure for Rural Productivity Enhancement Sector (InfRES)

For 2008, five LGUs completed subproject namely:
Capalonga
Talisay
Basud
Ligao City

Four (4)FMRs were completed with a total length of 60.89 kilometers; 1 Communal irrigation System (CIS) with 1,145 hectares service area ; one rural water system (RWS) benefitting 700 households in Ligao City. The project cost amounted to 200.6 million pesos.

Likewise, one FMR was completed and turned over to Basud LGU.

Magsasaka Siyentista (MS)
Guerrero S. Canoy

Mr. Guerrero S. Canoy of Sagurong Pili, Camarines Sur is BCARRD and DA’s Magsasaka Siyentista on rice. He conducted techno demo on Modified Rapid Composting for palay seed production for over three years. For last year, he received a funding support from PCARRD and BCARRD amounting to Ps 138, 870. He was also a receipient of one unit hand tractor from DA. As a result of his techno demo a total of 80 farmer adopters on MRC were recorded in Pili, Minalabac, and Baao.

Mr. Canoy’s yield and income increased because the number of bags of inorganic fertilizer applied was reduced.Soil texture and water holding capacity of the soil improved. Pollution on soil and environment was reduced as inorganic fertilizer and pesticide usage was reduced. In addition a flyer on Good Agricultural Practices which include the result of his techno demo is now being printed for distribution to rice farmers in the region. In addition a radio plug/testimony of his technology is now being aired over several radio stations in the region.








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