DA Annual Report 1989 by roldangorgonio

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L.iï¿½oul, Ouion &: Pho1os by: Rolyl. Lni,11 lnform1tt011 Oivi1ion Oep,rtmrritofA,;,lculturt

ANNUAL REPORT 1989 t�·�t

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DEPARTMENT OF AGRICULTURE METRO MANILA, PHILIPPINES 1989

TABLE OF CONTENTS INTRODUCTION Overview of the Pertormance of the Agriculture Sector and the Department of Agriculture in 1989

THE AGRICULTURE SECTOR'S PERFORMANCE THE DEPARTMENT OF AGRICULTUAE'S PERFORMANCE Creation of a Policy Environment Conducive to Increased Incomes in Agriculture Production, Verification, and Dissemination of Infor mation Relevant to Productivity and Development Production, Testing, and Dissemination of Plant and Animal Germpfasm

Superior

Facilitation of Market Access and Promotion of Based Enterprises

Agro

Regulation

Implementation of Empowerment Programs

Stabilization of Supplies and Prices of Rice and Corn

Special Intervention Programs and Projects

PROSPECTS AND CONCERNS FOR 1990

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The Agriculture Sector. . and the Department of Agriculture in 19.89 Overview For agriculture, 1989 was a ban· ner year. The National Statistical Coordination Board (NSCB) re ports that the gross value added by the agriculture sector to the economy increased by around 4.6% in 1989. This is the highest growth rate for the sector since 1982.

The Department of Agriculture {DA) initiated pro-larmer policy reforms and stepped up the deliv ery of its services in line with its goals to succeed in the war against poverty, in the crusade for social justice, and in the quest for national unity and prosperity.

This growth is attributed to rela In 1989, the Department pursued tively favorable weather in 1989 these goals on seven fronts: and the response of the farming One, the DA intensified its sector to policy reforms and pov efforts to advocate and es erty-focused empowerment tablish a policy environ programs that have begun to sub ment conducive to increased stantiate government's resolve incomes in agriculture. to place the well-being of farmers and the rural populace at the Two, it continued to gener center of development concerns. ate and transfer cost-effec Improved rural infrast ructure locatio n -s peci f i c t i v e, supportive of expanded rural technologies to farmers' markets also contributed to this fields. growth.

· Three, it undertook the dey-e lop men t of superior plant, animal, and fishery genetic material critical to increased productivity. Four, it facllltated farmers' and fishermen's access to markets and credit facilities and promoted agro-based enterprises. Five, it carried out regulatorv activities and enforced ap]) ropriate laws, rules and guidelines to : - prevent overexploitation of agricultural and fishery resou r c e s and ensure their long-term productivity, - protect the health and safety of the populace, . prevent or contain the spread of plant, fish and animal diseases, - prevent manipulation of the markets of staples and

agricultural inputs, - protect domestic producers from unfair competition of imports made cheap through subsidies by exporting countries, and, - ensure the quality of Phil ippine agricultural exports and increase their share in the world market

Six, the DA implemented empowerment programs to provide disadvan t aged groups equitable access to resources and the fruits of development. Seven, it carried out a grain s stabilizat ion program to ensure stable and equitable prices of rice and corn for both producers and consumers of these major staples. These efforts of the DA are premised on the conviction that the nation's stability and progress, at this stage, can only proceed from a strong and vibrant agricultural and rural sector. Only by promo!· ing agricultural productivity and higher farm incomes can government hope to hasten industriali· zatlon. Stronger purchasing power in the rural areas expands the market for industrial goods and services, creates more offfarm employment opportunities to absorb excess labor in agricul ture, and generates greater rural savings to finance investments in industry.

THE AGRICULTURE SECTOR'S PERFORMANCE As earlier stated, 1989 was a good year for agriculture as it posted a gross value added growth rate of 4.6% •• the highest growth achieved by the sector since 1982. At constant 1985 prices, the value of agricultural production in 1989 was P188.7 billion, up by 4.7% from last year's P180.3 billion.

Pi 10.7 billion exceeded the 1988 level by 3.0% in real terms. This was largely the result of an expansion of palay hectarage, stronger sugar prices, and weather conditions conducive to the growing of coffee, tobacco, and abaca. However, coconut, legumes, root crops, ramie, cot ton, and other fiber crops except abaca, suffered declines in out put. Real growth rates were con siderably high for sugarcane (13.0%), coffee (9.8%), tobacco (5.3%), palay {5.4%), and abaca {4.8%}. Corn had a modest growth rate of 2.1%.

Livestock and poultry were the Not to be outdone, the fishery growth leaders among all agricul subsector grossed P36.5 billion tural subsectors. in real terms, an increase of 4.4% over last year's P34.9 billion. Aq The highest growth rate of 1D.4% uaculture, which went up by was posted by the livestocksub 6.2%, had the highest growth in sector, wl-Jich turned out a gross this subsector. output of P22.3 billion in real terms. Swine producers contrib Meanwhile, substantial price in uted the most to livestockgrowth, creases rangingfrom 17% to 44% surpassing their 1988 perform ance by 12.2%. Poultry grossed P19.2 billion in real terms representing an in crease of 9.6% from the previous year's performance. The gross value of production of chicken went up by 9.6%; ducks, by 5.4%; and duckeggs, by 6.1%. The crops subsector which ac counted for nearly 60% of1he total agricultural output, achieved modest gains. Its gross output of

corn, rw•��, ·h�ported for,palay, abaca, garlic,

coconut, tobacoo, onion, and swine. The price of plneappla registered an unusu ally large Increase of 72%. On the other hand, the prices of coffee, mango, and rubber dropped by a range of 30% to 37%. More mod est price declines ranging from 1.8% to 18% were noted for ba nana, chicken, and chicken eggs.

That the agriculture sector grew substantlally despite the persis tence of biases that restrict its growth underscores the resil iency of the sector. These biases include: 1. Trade protection policies which favor the industrial sector at the expense of agri culture.

2. A value added tax (VAT) scheme which makes agri cultural processors pay 1 0% of the total value of the prod uct instead of 10%of the value added. 3. An exchange rate policy which overvalues the peso and then makes the country's exports -- which consist prin cipally of agricultural exports -- more expensive and there !ore, less competitive In the world market. 4, Shipping and port man agement policies which dis courage competition and lead to inetflclencles and high costs In t�e transport ol g a .Pr�du�!s . These ·t; i/J�·:�� l

• the one-port-one-opera tor policy of the Philippine Ports Authority (PPA) which has created cargo handling monopolies In public ports;

- the Board of \nves\mants (BOJ) restrictions on the Importation of vessels, vessel spare parts, and containers; - the Philippine Ports Au tho rity's collection of wharfage fees and a por tion of cargo handling iees in private ports;

5. Government expenditures in agriculture which are In adequate and dlsproportlon ate to the sector's share fn the cou.itry's Gross Domestic Product.

6. The underpricing of natu ral resources which encour ages indiscriminate exploita tion and Jeopardizes the sus tainability of agricultural pro ductivity and rural develop ment.

In 1989, the Department ol Agri culture continued to work for the removal of these biases against farm productivity, in collabora tion wijh other government agen cies and the legislature.

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��Jfe 1//1\11 THE DEPARTMENT OF AGRICULTURE'S PERFORMANCE The positive performance of the agriculture sector in 1989 may be attributed to relatively good weather coupled with the re sponse of farmers and fishermen to government efforts to estab lish a policy environment condu cive to agricultural growth and to provide the necessary support services to farming and fishing communities. During the year, the DA served an "effective num ber" of 9.4 million farmers, fisher men, and farm families: The following are the accom plishments forthe year of the DA field units, bureaus, and attached agencies as listed below. These accomplishments are grouped according to the seven major functions performed by the Department in its efforts to help increase farm incomes and wipe out rural poverty. ·�amelarmar orllsharmanor farm family could racelvedifferant klrids ot sarv,ces1romlhe DA, thisfigura doas not rapresent the t o tal numbar of farmers servedbutthe number oft,mes1he DA pro• vldadthesesorvlcosjfor exiimple,ono11ce f armer could rocelve assistance from tha technologlas, marka1lng, DA In production andorodltlacllltation).

BUREAUS

Bureau of Plant Industry (BPI) Bureau of Soils & Water Management (BSWM) Bureau of Animal Industry (BA\)

B ureau of Fisheries & Aquatic. Re· sources (BFAR) Bureau of Agricultural Research (BAR) Bureau ot Agricultural S1atistics (BAS) Bureau of Agricultural Cooperatives Development (BACOD) Agricul\ural Training lnslilute {AT\)

ATTACHED AGENCIES Fiber Industry Development Authority {FIDA) National Food Authority (NFA) National Tobacco Administration (NTA) Sugar Regulatory Administration (SRA) Philippine Cotton Corporation (PCC) Feni!izer & Pesticide Au1hority (FPA) Philippine Rice Research Institute (PhilR1ce) NatlonalPost-Harvast lnsHtutefor Research and Extension (NAPHIRE) Regional Coperatives Developm!:!nl Assistance Office IX {RCDAO 9) Regional Cooperatives Development Assistance Ottice XII (RCDAO 12) National Meat rnspecl1on Comm1ss1on (NMIC) Philippine Dairy Corporation (PDC) Southeast Asian Fisheries Develop ment Center • Aquacu!ture Depal1ment {SEAFDEC·AOD) National Nutrition Council (NNC) Quedan Guarantee Fund Board (QGFB) National Agricultural & Fishery Council (NAFC) Agricultural Credit Policy Council (ACPC) Philippine Fisheries Development Au· thority (PFDA)

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",A. Creation of a policy

",Envlrohmtl')t ·Conduclve to 1rlCrea,ed. Incomes 1.n -'NjjrlcllltLlre 1n Carfy!ng. out this 1unct1on, the DA· 1, Developed and advocated a Rural Development strat egy (RDS) whlcll was adopted by the Cabinet Clus ter for Rural Development and incorporated In the gov ernment's Countryside Agro-Industrial Develop ment Strategy (CAIDS). The RDS calls for reforms In eco nomic policies and govern ment spending to attract more private investments in agriculture and the rural ar eas. 2. Obtained Cabinet ap proval of the followlng policy reforms: • reduction of1arlff rates on agricultural Inputs Ilka fishing and shipping ves sels and appurtenances, animal breeders and ma chinery for the coconut In dustry to reduce the cost and Increase the avallabll lty of these Inputs;

commodity classlficatlon system with rates that move with Inflation. 3. Opposed moves lo: - Impose price controls except In emergency situ ations since such controls suppress productlvlly and obstruct market develop ment; - reorganize the National Food Authortty (NFA) Into a council and expand Its functions to include price control, marketing, and trading of commodities other than rice and corn; • change the tax scheme for coconut oil producers from ad va/oram to specific tax; and - Impose a 20% excise tax on the wholesale prloe of processed non-alcoholic beverages since this would depress the de· mend for fruit Juices, col· fee, and tea. 4. Continued to work with other agencies toward: - modifying the method of computing t h e value added tax (VAT) so that ag ricultural processors pay 10% of the value they add to the product Instead of 10% of the total value of the pro duct;

- exempting livestock and poultry feed additives and veterinary products, coco nut oil, and cassava flour and starch from the VAT; - dismantling cargo han dling monopolies reduc ing duties and taxes on vessels and containers, and removing disincen tives that discourage the development of private port facilities and serv ices; liberalizing the importa tion of, and reducing tariff rates on vehicle spare parts; liberalizing importation of refrigeration and freez ing equipment; - opposing moves to clas sify utility vehicles as pas senger vehicles, which would subject these to ex cise taxes; · reducing tariffs on agri cultural machinery, biol ogics, veterinary medica ments, prawn feed and teed ingredients, fishing gears, pesticides, t i n plates, and other packag ing materials; - abolishing the practice of setting minimum prices for desiccated coconut ex ports; and · privatizing some of the

DA's assets, particularly post-harvest. faciJ!ties (e.g., Food Terminal, Inc., Gasifier and Equipment Manufacturing Corpora tion, the Tabangclo Grains Processing Complex, Di gos Agro-Industrial Com plex, Southern and North· ern Philippines Grains Complex, Grains Insur ance Agency Corpora tion). B. Production, Verification, and Dissemination of Information Relevant to Productivity and Development In 1989, the DA conducted 2,124 research studies; 76 of these studies yielded technologies which are ready for dissemina tion. The following were the technol ogy transfer activities under taken by the DA. 1. DA extension workers as sisted some 2.3 million farm· ers cultivating 3.4 million hectares of farm land. Jn rice areas covered by DA technicians, the average palay yield was 2.8 metric tons per hectare, or 3.3% higher than the natio:ia\ aver age of 2.7 metric tons. In corn areas assisted by the DA, farmers produced 1.81 met-

, ric tons per hectare or 56% higher'than the 1.16 metric tons per hectare national av erage. 2. In the area of crop protec tion technology, 242,300 farmers adopted the Inte grated Pest Management (1PM) technology promoted by the DA, which restores ecological balance and re duces the cost of pest control through the use of natural enemies of pests combined with a minimum level of pesti cide application. The sav· ings generated by farmers employing !PM are estimated at P900 per hectare per sea son. Some 1,992 training courses on 1PM were con· ducted by DA extension workers, and 828 Surveil lance and Early Warning Sys tem (SEWS) observation sta tions were established. 3. In the areaofsoil andwater management, the DA ana lyzed 152,287 sell samples for 183,623 farmers and dis tributed 3,319soil test kilsto help farmers determine how

much and what kind of fertil izer they should apply. The DA constructed 246 Small Water Impounding Projects {SWIPs) which irri gate 4,504 hectares and serve 5,172 farmers. This brings the total number of SWIPs and check dams con structed to 450, covering some 18,600 hectares. 4. The DA also established a total of 635 guided farms cov ering more than 6,000 hec tares. Some 1,300 upland farmers have adopted the Sloping Agricultural Land Technology (SALT) which controls soil e rosion and helps restore soil fertility and productivity. 5. In animal health manage ment, the DA immunized, de wormed, or defluked 12.6 million head of animals and treated 1.7 million head of diseased animals. A total of about 1.7 million farmers re ceived these services.

6. More than 41 ,000 fishfarm ers adopted aquaculture technologies promoted by the DA. This same group, along with other fishfarmers numbering nearly 90,000, re ceived technical assistance to improve their productivity. The average production of fishfarmers assisted by the DA was roughly 3 metric tons or 27%, higher than the na tional average of 2.36 metric tons per fishfarmer. The ag gregate volume of produc tion was 340,600 metric tons or 14%, of the total volume of fish produced in the country. 7. The DA also extended fish ery resource c onservation measures to sustain the pro ductive capacity of the coun try's coastal areas. Together with fishing communities, the DA established 5,000 artifi cial reefs (AR) and repaired 1,600 others, in some 8,000 hectares ol fishing grounds. These serv:od some 600 fish ermen' s a s s o c iations or about 12,000 individual sub sistence fishermen. Since 1980, a total of 14,000 artifi cial reefs have been con structed along the country's coasts. 8. Since farmers and fisher men themselves impart the technologies they employ, the DA continued the conduct of the Farmers' Exchange Program supported by the

National . Agrjc_ult.ural_--ar:!d Fishery Collr:icil .'(N�FG). Some 3,500· 1a:rmeirS ·were toured to obs8rvei the meth• ads practiced by their peers_ in other areas. C. Production, Testing, and Dissemination of Superior Plant and Animal Germplasm The DA's efforts- In producing, testing, and disseminating supe rior crop varieties and breeds of fish and livestock focused on the following: 1. Production of 12,440 met ric tons of seeds and 7.6 mil· lion pieces of planting materi als. Including the stock car ried over from the previous year, 22,246 metric tons of seeds and 12.Bmi/lionpieces of planting materials were distributed all In all to 652,537 farmers. The propagation of these high quality seeds should provide opportunities for higher productivity and re duce risks from pests and dis eases. 2. Dispersal of 51,250 head of animals to more than 21,000 farmers. 3. Breeding services to 260,855 head of livestock and 28,484 poultry which produced 351,656 head and 1.55 m/!lion birds, respec tively. This service was ex tended to Si ,453 farmers.

D. Facilitation of Market Access and Promotion of AgroBased Enterprises The DA undertook the following market development and agri business promotion activities: 1. Broadcasting agri-market information in 45 provinces thrcugh 303 radio and 7 television stations.

4. Importation of cattle feeder stock to conserve existing stocks and maintain a steady supply of beef in the market. Some 23,259 head out of the 33,200 quota were imported and fattened by private cattle raisers. 5. Production of 48.4 million fingerlings and distribution of 38.1 million to 62,985 fishfarmers. The Bureau of Fisheries and Aquatic Resources {BFAR) alone, in three of Its research and demonstration farms, produced 6.5 million pieces of quality tilapia and carp fingerlings. About 4.6 million of these were dispersed to cooperators.

2. Dissemination of 766,519 printed materials to 241,614 farmers. 3. Establishment of 591 Market Price and Information Bulletin 3oards and mainte· nance of 1,368 others. These served about 11,200 farmers. The DA also facilitated 1,5 31 marketing tie-ups between producers and buyers. 4. Sponsorship of 866 market fairs in which 22.068 farmers participated and which drew 2,325 buyers. 5 . Livestock marketing services to 38,000 livestock farmers t h rough 46 Livestock Auction Markets {LAMs). 6. Setting-up of 39,877 income-generating projects benefiting 15 ,255 farmers, housewives, and youths na· tionwide. 7. Expansion of the Livelihood Enhancement for Agricul tural Development {LEAD) programs involving

farmer organizations and co o p eratives. The LEAD Buklod Yaman scheme provided grants amounting to 59.8 mfllion to support 629 projects (e.g., poultry and livestock, fishery and aquaculture, patrol boats, post harvest facilities, etc.) This bro ught to 822 the total Buklod Yaman projects assisted since last year. The LEAD bankassisted scheme facil!tated bank loan& in the amount of P13.84 million for 13 projects such as the Papaya Project in Misamis Orienta! and Seaweed Farming in Camiguln.

8. To enhance fishermen's access to markets, the Philippine Fisheries Development Authority (PFDA) operated three comm ercial and four m unlclpal fish ports. Some 255,900 metric tons of fish were unloaded in these ports In 19B9, representing 11 % of the country's fishery production in 1989. The PFDA leased out 17 of its fee plants and cold storage facilities to the private sectorbut continued to operate four others which produced 26,900 metric tons of ice. About 500 met ric tons of fish were tradedby 4,800 DA-assisted fishermen. 9. By theend of1989or three years since its inception, .the Comprehensive Agrlcultural

Loa� FL!n� (CALFr h&s ·:g8n? t i o!�e�{:�J:;f!� �g..

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almost 22,000 r0dividllal farmers. In 1989 alorie; CALF facilitated the release Of ap·- · proximately P475 million worth of loans, which is most four times the level re· ported in 19BB.

Around 50 percent of the CALF-backed loans were generated through the facilities of the Quedan Guarantee Fund Board (QGFB), 24 percent through the Guarantee Fund for Small and Medium Enterprises (GFSME), ·and 26 percent through the Phillp· pine Crop Insurance Corpo ratio n (PCIC). Int e n d e d mostly for basic farm production, CALF-backed loat1s contracted through PCIC averaged P0.7 million per borrower. Those under QGFB, benefiting mostly farmerproducers and traders, averaged P21.5 mlllion perbor� rower; and those u n der GFSME which caters largely to medium-sized projects, P1.7 million per borrower. Thusfar,atotal of109 banks and 40 other lending conduits: have availed themselves of CALF supi,ort through the' three guarantee ln stitu-. tlons."

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�,:':Fleg�l�I�. �;::�raven.I th.e-lntroductlon and _ s.P !'Bad of plant and animal pests and diseasea, the DA maintained 20 plant and 39 animal quaran tine stations natlqnwlde. The DA's plant quarantine stations Inspected 649,600 pieces of plant materials Imported Into the country, 29,:mo pieces bound for foreign destinations, and 1.3 million pieces which moved In domestic routes. Some 420,690 licenses, permits and clearances were Issued to traders, exporters, and Importers. The DA's animal quarantine sta· lions nationwide inspected 5.59 million head of animals and 1,530 metric tons of meat and meat products. Some 82,500 permits and certificates were Issued. The National Meat Inspection Comrn!ssion (NMIC) Inspected 26,000 metric tons of meat, of

which 445 metric tons were con demned as unfit for human con sumption. NMIC also Issued 3,287 licenses for abbatolr and post-abbatolr handling. In the reglonal feed laboratories of the DA, 8,786 feed samples were analyzed and 2,344 more were certified. In addition, the Bureau of Animal Industry (BA1) analyzed 11,025 feed samples. To protect farmers from unscrupulous traders of fertilizers and pesticides, the Fert\llzer and Pesticide Authority (FPA) 11· censed 322 fertilizer and 934 pesticide handlers. More than 280 fertilizer products, 506 warehouses, and 178 pesticide products were registered to ensure the quality and safety of these farm inputs. The DA's Bantay Dagat Program deputized 2,600 fish wardens. A total of 523 persons were apprehended for illegal fishing. Meanwhile, the DA approved some 132 applications lease for fishpond agreements (FLA) covering 327 hectares, licensed 287 commercial fishing vessels with a gross tonnage ot 1,650 tons, and issued 107 permits for fish Importation and 13,919 clearances for fish exports. Some 2,400 oooperatlves were registered, 476 audited, 648 Inspected, and 330 investigated. l2

F. Implementation of metric tons of seeds, 397,000 Empowerment Programs pieces of planting materials and 4.9 million fingerlings. To intensify its war against pov erty, the DA undertakes empow erment programs to address the A total of 1,621 full-fledged coop special needs of the rural poor. eratives or Kilusang Bayan; These programs are so designed 30,108 farmer organizations; to encourage these people's full 4,216 rural youth clubs; 8,170 rural improvement clubs; and participation as a community, to release their individual potential, 439 precooperatives were pro and to facilitate their access to the vided organizational and techni cal assistance. resources they need to lift them selves from a condition of mere 2. Philippine Food and Nutri subsistence. tion Program (PFNP) 1. Comprehensive Agrarian Reform Program (CARP) In the second year of 1mp!emen tation of the Comprehensive Agra r i a n R e f o r m P r o gram (CARP), the DA provided support services to 842,960 agrarian re form beneficiaries. These in cluded technical and marketing assistance through the conduct of some 3,000 farm-level training courses and 1,100 training classes on income-generating projects. The DA also distributed farm inputs which included 370

The Philippine Food and Nutri tion Program (PFNP) addresses the problem of malnutrition, fo cusing on the nutritionally-at-risk population groups. launched in 1974, this program is a joint effort of government and non-govern mental organizations (NGOs) and is coordinated by the Na tional Nutrition Council (NNC). In 1989, the food· assistance i'n tervention activities' of the PFNP benefited 1_.5 miUlory Prescho,O! and 2.4 million s9hoolch_Here�:' 13,

H.owever, of this number, even mlldly malnourished and normal ch"dren were included. Thus, only 50% of 1he es11mated two million preschoolchlldren dlag noS8d as severely malnourished were served.

inrtial monitoring trips to LAKASS munlcipallties Indicated that all the famiUes assisted through this program ware poor, with monthly Incomes of less than P2,000. While it Is still too early to deter mine the nutritional impact of LAKASS projects, which were Food supplements were also started only in July 1989, benefi provided 10 130,300 • pregnant ciaries can already perceive pos and tactal1ng mothers •• a mere sible opportunities to earn from 6% of the total target. The DA income-generating projects recognizes that more efforts lined up under the program. should be exerted to broaden the reach ol this inteNentlon in order to reduce the number of malnour ished infants. Accomp!,sl1man1 as of the 3rd Quarter, 19B9.

3. Latakas ang Katawang Sapat sa Sustanslya (LAKASS) The Lalakas ang Katawang Sa pat sa Susransiya_(LAKASS) Pro gram is the DA's principal contri bution to the PFNP. In 1989, P21.5 million or 93% of the P23 million LAKASS fund was re leased to 115 nutritlonally de pressed municipalities. The amount of P20 million went to various income-generating and nutrition-related projects that had been earlier proposed for funding and P1.4 million, to sup plemental projects. About 72,000 beneficiaries, in cluding malnourished pres chOOl�rs.� �re ,expl:lcted to benefit from thElse projects. lnlervlews of sample beneficiaries during the 14

4. Assistance to Disadvantaged Upland Communities Central Cordillera Agricultural Programme ICECAP) This 19.8 million European Cur rency Units (EGLI) Program is the first major Integrated rural devel opment project in the Cordille ras. tt is designed to raise rural In comes and standards in the proj ect area, support ecologically stable and diversified farming systems, and strengthen local capabilitles in planning, imple menting, monitoring, and evalu· ating development efforts.

In 1989, the implementation of nine pilot micro projects served 1, 1 07 families in Nueva Vizcaya and Mt. Province. In addition, the DA undertook consultations with NGOs, state colleges and u n i v e r s i t ies (SCUs), and farmers' associa tions inthe project area to identify the priority needs of 28 commu ntties. This would ensure that the projects to be implemented are necessary and acceptable to the communities for which these are intended. The consultations re sulted in the forging of agree ments with 11 NGOs operating within the project area. Highland Agrlculturar Devel opment Project The Highland Agricultural Devel opment Project (HADP) aims to uplift the socioeconomic condi tions of upland farming communi ties in eight municipalities of Ben guet and five municipalities of Mt. Province. The HADP accomplished the fol lowing in 1989: - conduct of training courses on community organization, cooperatives development, and skills upgrading; - establishment of three soil conservation demonstration farms in Benguet with a total area of 3 hectares, 1.2 hec tares of which have been JS

planted to hedges and per manent crops; - completion of two barangay markets in Mt. Province, and a municipal market in Sagada under construction; - completion of 13 new com munal irrigation and rehabili tation of 11 existing commu nal irrigation systems; - completion of 11 nurseries and 9 seed potato storage fa cilities. Tribal Agricultural Support Services Program (TASSP) The TASSP is being lmple mentedinRegions 1.2,3,4,5, 10, 11, and 12. This training program was designed to enhance the ca pability of tribal communities for sustainable upland agricultural development and community mobilization. Some of the services provided under this program are: the es tablishment of tribal nurseries, provision of planting materials, livestock dispersal, and distribu· tion of farm tools. To date, more than 4,070 families of 28 tribes from eight regions have rei::eived these services.

G., Stabilization of Supplies and·Prlces of Rice and Corn

nationwide were to be covered by the program in the 1989-90 dry

The DA's record in grains .market intervention was not impressive in 1989. The NFA's palay and corn procurement level was a low 185,187 metric tons. This was because palay farmgate prices were, in general, higher than the .iuthori;zed NFA buying price of P3.50 per kilo even at the peak of the harvest seasons. The DA re sponded to this by proposing, and getting approval for an increase in the National Food Authority's pa/ay buying price to PS.OD per kilo in the last quarter of the year.

As of December 31, only 234,600 hectares or 36% of the 643,890 hectares scheduled to have been planted by that time had actually been planted. This low rate of ac complishment was mainly due to the following: (a) lack of certified seeds; (b) insufficient supply or delayed delivery of fertilizer; (c1 . farmer-participants not having the palay stock for exchange due to crop losses from typhoons; (d) the effects of a drought which began to be felt in November; and {e) delayed release of DA funds for this program.

A second Rica Production En hancement Program {RPEP II) was launched in November 1989. This was intended to boost the country's palay production and ensure adequate buffer stocks for the NFA through a scheme whereby farmers would be pro vided assistance in the form of seed and fertilizer in exchange forpalay deposited with theNFA. SomeS00,000 hectares of fully ir rigated riceland in 73 provinces

In 1989 the DA imported 219,765 metric Ions of rice to augment the NFA's buffer stocks and improve its capacity to stabilize supplies and prices d u r i n g the l e a n months. A Grains Stabilization Study, funded by the Accelerated Agri cultural Production Project, was conducted and completed in 1989. The study reviewed and as sessed the government's grains stabilization policies and pro· grams. It defined actions that need to be taken to address the problems in grains price and supply stabilization for both the short· and long- terms. Among the recommendations of the study are: • a planned, long-term pro gram to expand irrlgation for rice; 16

· fat" cCi'ri_sEfr�/ng," ·gr8.m "afme � prot ecting, reh�_bi!J13.ting,' . and sustaining· the country's fishery a nd aquatiC:'.re sources. It will be imple' mentedfrom 1990to 1994, fn 146 coastal municipalities of 17 provinces, with the follow ing components: Fisheries and Related Ecological _As sessment; Coastal Zone Management; FisliSl'ies Re search and Extension; Credit; Fisheries law En forcement; and Municipal Fisheries Infrastructure.

- the setting of a tlmeframe to phase out NFA trading opera tions and install a border pric ing mechanism (a smaller NFA would continue to o'per ate for the purpose of main taining a national buffer stock); - an acceleration of the build ing of farm-to-market roads and bridges, a more open and supportive policy for the ac quisition of cargo trucks, and the upgrading oi services in the country's ports; - a detailed investigation of the reasons for the high post harvest losses and the ineffi ciencies in this subsector so that corrective actions can be taken; and - a fully supported research program aimed at improving yields and quality, and reduc ing post-harvest losses. Applicable research results should then be dissemi nated.

Philippine Agricultural Extension Study (PAES)

Special Intervention Programs and Projects

A group of consult�nts was commisSioned to conduct a study on extension, training, and communication for the Departments of Ag.ridulture (DA}, Agrarian Reform (DAR), and Ertvironmer'lt 9,nd Natufal ResOurces '(DENR). From June · to September 1989, the group c_<>nducted . numerous · . and extensive in"

Fisheries Sector Program

(ESF)

During the year, the DA ob tained a Fisheries Sector Program (FSP) loan from the Asian Development Bank (ADB) worth US $80 million. This loan will finance a pro" 17

:.- tei-vi_ews· with the. personnel of. the three departments as well as those of other govern ment agencies, colleges, and universities, local gov ernment units, and the repre sentatives of the primary ex tension clientele -· · the farm ers, fishermen, and their families. Also, two work shops were he!d: (1) a consul tative forum on agricultural extension; and (2) a high level consultative confer ence on the delivery of agri cultural services to CARP and lSF beneficiaries. The results of these efforts were later incorporated into a re port which summarizes the history. of agricultural exten sion in the Philippines, re views extension resources, structures, performance, and the various classes of ex tension cliente!e; and recom mends measures for improv ing extension services.

comes of coconut farmers by improving coconut yields and copra quality; and (3) boost foreign e x change earnings by ensuring an In creasing and reliable supply of higher quality copra for processing and export. Th!s project would constitute the first phase of a long-term small coconut farms devel opment program which, for the next 20 years, would re sult in the replanting of about 743,000 hectares of senile coconuts and the rehabilita tion of some 418,000 hec tares of !ow-bearing palms.

Small Coconut Farmers' Development Project The Department is currently negotiating with the World Bank for the implementation of the Small Coconut Fam1-, ers' Development Project. This _Project aims to (1) launch_ a Jong-term program of coconut replanting and productivity improvement, complemented by i_nfrastruc ture, technical, and-_support ;servlc�s; (2) _increase the in18

�� iiffi\i

PROSPECTS AND CONCERNS FOR 1990

The Department of Agriculture resolves to marshal all the re sources at its disposal to· help sustain the gains achieved in the agriculture sector in 1989. In 1990, the DA will focus special attention on the following urgent concerns, even as it clears the way for sustainable growth over the longer term. Self-sufficiency In the production of rice and corn A focused, government-wide ef fort will be undertaken to achieve a sustained annual rate of growth in production of at !east 3% to 3.5% in rice and at least 5% in corn. These will require the provi sion of more efficient irrigation services, broadening the availa bility and reducing the cost of quallty seeds and fertilizer; equi table and stable prices for both producers and consumers; and reduced post-harvest losses.

billties·.to ."1ocal .governmeiits. Research .on· majO·r_ agrlriultur&II. commodities is being stepped up to generate cost-reducing, In come-enhancing, locat!on-spe cific technologfes, along wltl'J the strengthening of research· and extension linkages. An economic environment private supportive of invastm&;it in agriculture for rural development Financial services to the country side will be expanded. Along with the expansion of irrigation, more and better roads, bridges, ports, and telecommunications facili ties must be constructed In the rural areas to secure larm-to mark.et linkages. Policies and programs to make trading re gimes and macro-economic con ditions favorable to Phlllpplne ag riculture must be promoted. In particular, the DA will continue to advocate the followlng struc tural reforms In 1990:

A revitalized agrlcultural extension, research, and training �ystem

- Public spending priorities: An increase In government expenditures on rural Infra structure, research and ex tension, and the promotion of people's organizations and cooperatives.

The DA has embarked on a pro gram to upgrade the teaching skills of extension workers and accelerate the devolution of ex tension authorities and responsi-

- Trade policies: Reduced tariff rates on Industrial prod ucts used as agricultural in puts; elimination of the re maining Import restrictions 19

- Transport policy: implem entation of the shipping and ports management reforms recommended by the Presi dential Task Force on Inter Island Shipping.

administered by the ·soard of Investments particularly with ,.r,�.\IP.li'PI to.the Importation of 'agricultural Inputs as well as oap(tal equipment and spare parts used In the transport of agricultural goods. • Macroeconomic and ex change rate policies: allow ing the peso to seek its own level vis-A-vis the dollar so that trade deficits will be mod erated and Philippine ex ports can become morecom petltive; a reduction of the budget deficit by cutting down government spending on Items with doubtful social returns and improving tax collection efficiency. - Monetary policy and finan cJal Intermediation: the crea tion of an independent mone tary authority to manage money supply and the foreign exchange rate and to ensure stability of the financial sys tem; encouraging greater credit flows by abolishing the tax on banks' gross receipts, eliminating the withholding tax on savings, and strength ening credit guarantee and crop insurance facilities.

Jn the year ahead, the DA will seize every opportunity to move closer to Its vis/on of rural pros perity, propelled by farmers and fishermen able to sustain profit able enterprises on their own, in a just and free society. The DA recognizes that the coun try's economic and social fabric will remain fragile for as long as poverty stalks the countryside and the agriculture and rural sec tor remains underdeveloped. In equitable access of the poor to resources straps their potential to participate in nation-building. And so the DA will carry on with a development strategy biased in favor of farmers, fishermen, and their families. The reason for this is simply because most of them are poor, because they comprise the majority in this country, and because the nation's stability and prosperity hinge on unleashing their potential to contribute more to economic growth.

DEPARTMENT OF AGRICULTURE KEV OFFICIALS

OFFICE OF THE SECRETARY

CARLOS G. DOMINGUEZ Secretary

DANTE Q, BARBOSA Undersecretary for Staff Operations

BENITO F. ESTACIO, JR, Asst. Secretary Legislative Affairs

APOLONIO V, BAUTISTA Undersecretary for Operations

JOEMARI D. GEROCHI Asst. Secretary Regional Operations

CARLOS A. FERNANDEZ 11 Undersecretary for Speciai C oncerns CONRADO C. GOZUN Undersecretary for Attached Agencies V, BRUCE J, TOLENTINO Undersecretary for Polley and P lanning REYNALDO B. ABELLA Asst. Secretary Finance and Administration

MANUEL M. LANTIN Asst. Secretary Research, Training, and Extension ROMEO L, LEDESMA Asst. Secretary Production Group TOMAS B. LOPEZ Officer-In-charge Agribusiness Group JOHNSON P. MERCADER Asst. .Secretary lnternatlonS.I Agricult�r.a! . : · Dev't. Cooperation Coordination Office

2·1

REGIONAL OFFICES Rogelio Signey Director Region I (llocos Region)

Severino Recto Director Region IV (Southern Tagalog)

Roberto Lim Director Region IX (Western Mindanao)

Gumersindo Lasam Director Region II (Cagayan Valley)

Fe Laysa Director Region V (Bicol Region)

Amante Siapno Director Region X (Northern Mindanao)

Faustino Maslan Director Cordillera Administrative Region (CAR)

Emigdio Fabel!a Director Region VI {Western Visayas)

Alejandro Yadao Director Region XI {Southern Mindanao

Rodolfo Orais Director Region VII (Central Visayas}

Bienvenido A\mirante Director Region XII {Central Mindanao)

Renato Bulay Director Region Ill (Central Luzon)

Leopoldo Romano Director Region VIII (Eastern Visayas)

BUREAUS

Segundo C. Serrano Director Agricultural Training Institute (ATI)

Romeo N. Alcasid Director Bureau of Animal Industry (BAI)

Clemente E. Terso Director Bureau of Agricultural Cooperatives Development (BACOD)

William O. Dar Nerius 1. Roperos Director Director Bureau of Agricultural Research Bureau of Plant Industry (BPI) (BAR) Godofredo N. Alcasid Generoso G. de Guzman Director Director Bureau of Soils and Water Bureau of Agricultural Statistics Management (BSWM) (BAS) 22

Juanita B. Malig Director Bureau of Fisheries and Aquatic Resources (BFAR)

ATTACHED AGENCIES Luis Villa-Real Administrator Fertilizer and Pesticide Authority (FPA)

Alonzo a. Ancheta Administrator National Tobacco Administration (NTA}

Pelayo J. Gabaldon Administrator National Food Authority (NFA)

Malcolm I. Sarmiento Elsa M. Bayani Administrator Executive Director Philippine Fisheries Develop- National Nutrition CounciJ.(N�C)= ment Authority (PFDA) Galo B. Garchitorena Flor J. Lacanllao Executive Director' Chief, AQD Quedan Guarantee Fund ·Board Southeast Asian Fisheries De (QGFB) velopment Center-Aquaculture Department (SEAFDEC-AQD) Conrado C. Gozun President Arsenio B. Yulo, Jr. Philippine Dairy Corporation.· • --· Administrator (PDC) Sugar Regulatory Administration (SRA) Silvestre C. Andales Director Tomas B. Lopez National Posf Harvest Institute Executive Director for Research and Extension National Agrlculturat and Fishery (Naphire) Council (NAFC} Ombre S. Hamsiranl Manuel Rocha Executive Director Officer-in-Charge Regional Cooperatives Livestock Development Development Assistance Office, council (LDC) Region IX (RCDAO 9)

Bernardo B. Resoso Executive Director NB:tlonal Meat Inspection Commission (NMIC) Wencellto T. Andanar Chairman Philippine Coconut Authority (PCA) Joaquin M. Teotico Administrator Flber Industry Development Authority (FIDA) Patricio L. Lim President Philippine Cotton Corporation (PCCJ

Gilbert M. Llanto Executive Director AgrlcuUural Credit Policy Council (ACPC)

Santiago R. Obien . Executive Director Philippine Rice Research·, Institute {PhilRice)

Norberto S. Ferrer. Executive Director, Regional Cooperatl".'�� ;: ..... Development Asslstanqe:.Offl[?E!,: Regipn XII (RCDAO 12)_. · . . .