Industry and Services

Planning, about PhP94.3 million was lost from unsold produce in the country, the biggest chunk coming from Luzon area. Although not as big as the direct losses incurred in Luzon, survey respondents from Western Visayas claim they lost about PhP3.524 million worth of direct losses from unsold produce. Those engaged in high value crops claimed the highest loss at P2.043 million, followed by cereals at PhP0.808 million. Direct losses from fisheries was at PhP460,000, livestock and poultry at PhP213,000.

Difficulty in accessing affordable, safe and nutritious foods by consumers. Access to affordable, safe and nutritious foods by consumers was affected with the closure of establishments that serve as channels for agricultural and fishery produce like hotels and restaurants. There were limited wholesalers of fresh fish, vegetables and other agricultural produce, who market their products outside the region due to the cancellation of domestic flights and the ECQ imposed in Metro Manila and other major markets outside the region. Access of fish harvest to cold storage was also a problem because of lack of public transportation.

Higher cost of production and marketing. Decreased consumer demand and increased transaction costs will have a knock-on effect that will push the price of agriculture and fishery products up and make them less affordable for poor consumers. The buying capacity of consumers had been limited due to decrease or lack income as a result of job and livelihood losses. Many people employed in the agriculture supply chains, such as fish vendors, processors, suppliers or transport workers will likely be affected.

Disruptions in skills upgrading of farmers. There are also other aspects brought about by COVID-19 that adversely affected the AHFF sector. Disruptions in skills upgrading programs for farmers due to the required physical distancing and cancellations of mass gatherings to prevent the spread of the disease are limiting factor that will affect production as farmers’ knowledge and skills development is hindered.

Industry and Services

Like all other sectors of the economy, the operations in the Industry and Services sectors were disrupted by restrictions on the mobility of workers, as well as fluctuations in demand due to the COVID-19 pandemic. While many employees welcome the flexibility and safety of work from home, MSMEs and other service and industry establishments were largely unprepared due to absence of appropriate health defense systems, mechanisms among MSMEs and other industry and services establishments, lack technology-enabled health and safety measures (i.e. thermal scanner). The unavailability of local testing center and inadequate supply of PPEs and other safety mechanisms were not immediately addressed.

Majority of the MSMEs and other industry and services establishments are dependent on direct cash-based transactions and are not digitally-equipped to engage in e-commerce or immediately migrate to online transactions, cashless payment or e-banking. Businesses were also discontinued due to the absence of alternate products and services for online markets and other e-commerce options. These led to closures and non-operations of MSMEs and industry and services establishments that eventually resulted to loss of income and employment of industry and services providers.