Volume IV, No. 2
MARCH-APRIL 1986
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ISSN 0115-9097 II
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Ill
ISSUESIN PHILIPPINEFOOD AND NUTRITIONPOLICY Introduction The nutritional status of a population is one of the most telling indicators of well.being. In the. wake of a protracted economic crisis, it is likely that the nutritional status of vulnerable groups has been adversely affected. Alleviating poverty and malnutrition is an important issue which needs to be addressed by the new administration. As Mangahas (1984) I ,points out: The interrelationship between poverty and malnutrition no longer needs to be belabored. Due to the "seamless web" which enmeshes the tW째 , it is hardly possible for an alleviation or a worsening of one problem to happen without an attendan.t alleviation or worsening of the other. It is in fact quite pragmatic, though imprecise, to define the incidence of poverty in terms of access to some nutritional norm. h/herever poverty lines are calculated, the food budget is always the ma]or portion, except in affluent countries, In view of the link between poverty and malnutrition and the government's limited budgetary resources, the policymaker's problem is one of "allocating or
Editor's Note: The introductory note of the 1984-87 Food and Nutrition Plan states that ".... malnutrition is more than ]ust a health problem. It is a social, political and economic problem as well. "Moreover, the Plan recognize s that adopted strategies in the past were severely lacking and inadequate. More than this, the programs did not address the root cause of the problems in nutritio_ As espoused by current nutrition programs of the National Nutrition Council (NNC), the overriding thrust is to provide short-term or immediate intervention measures to treat identified malnutn'tion cases and, necessarily, (n order to sustain the initial progress brought about by these measures, to initiate improvements in food supply, food prices and faro@ incomes. These are probably the most important factots which affect food consumption. Other than the purely economic side of the nutrition problem, there is_also a need to generate genuine political will and advocacy of the ob]ectives of the nutrition programs to push effective implementation in the community or barangay levels. We need to work at translating avowed commitments of local officials to higher budget allocation and personnel contributions to nutritionrelated programs. In this issue of the Development Research News (DRN), our guest writer, Dr. Agnes Quisumbing, delves into the ticklish issues of food and nutrition policies in the Philippines. Dr. Quisumbing is currently Assistant Professor at the College of Development Economics and Management (CDEM) of the University of the Philippines at Los Ba_os, Zaguna. reaUocating resources to most effectively combat these (nutritional) deficiencies in a manner consistent with the country's overall development strategy" (Call and Levinson, 1971: 165). This review adopts a policy.oriented approach to the Philippine nutrition situation. It begins with a brief discussion of the Philippine Food and Nutrition P_o-
gram (FNP) and issues related to its iraplementation. Then, a review of the nutri_ tional status data is presented as a means of evaluating the effectivity of the food and nutrition plan. Likewise, policies outside the purview of the FNP which also have nutritional effects arc pointed out. Finally_ some conclusions and policy recommendations are presented.
CONTENTS:
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ISSUES IN PHILIPPINE FOOD AND NUTRITION POLICY......................................... UPDATE: NEW PUBLICATIONS ................................................................ COMPLETED PROJECTS .............................................................. SEMINARS ................................................................ PIDS PUBLICATIONS AVAILABLE ........................................................ SPECIAL PUBLICATIONS .............................................................
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PIDS DEVELOPMENT III 1. The Philippine Program
RESEARCI-I._EWS
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Although nutrition is a multi-sectoral concern, it is often perceived to be limited to the interests of-a narrowly defined 'nutrition sector'. This limited perspective characterized nutrition policy in the years before the establislnnent of the Philippine Nutrition Program (PNP) in 1974. It was only after World War II that central nutrition planning was institutionalized, and a number of nutrition-related agencies es: tablished, among them the Philippine Institute of Nutrition, the forerunner of the Food and Nutrition Research Institute. In
Ministry of Education, Culture and Sports (MECS), Ministry of Local Governments (MLG), the National Science and Technology Authority (NSTA) through the Food and Nutrition Research Institute (FNRI), Nutrition Foundation of the Philippines (NFP), Nutrition Center of the Philippines (NCP) and the Philippine Medical Association (PMA). The daily operations of the NNC are handled by a secretariat headed by an executive director. Technical committees are also created on an ad hoc basis depending upon issues raised by the Management Committee. Local level nutrition councils at the provincial, municipal,and barangay
Philippine National Red Cross (PNRC), and MECS. Varying volumes of cc_ nated foreign food commodities suct/ as corn-soya milk, non-fat dry lurk, soy fortified flour, bulgur wheat, milk, flour and rice were availed of by the targetted groups. The program reached 1.56 million pre-schoolers and 4.95 million schoolchildren in 1984, about 99.3% of the target. However, the encouraging reports regarding program outreach must be taken with caution. First, there were difficulties. in reaching severely and moderately underweight pre-schoolers as well as pregnant and lactating women. Second, this figure does not reflect possible under- or
the 1960s, different departments of the government began their own nutrition projects, later coordinated by the National Coordinating Council on Food • and Nutrition (NCCFN). In 197i, an attempt was made to integrate nutrition and food production through the efforts of the National Food and Agriculture Council which implemented a four-year Philippine Food and Nutrition Program (PFNP). While this emphasized the team approach and multiagency participation to program planning and implementation, its coverage was circumscribed by its limited resources. As Florentino et al. (1978) conclude, the pre-PNP years were a period of organization.building, piloting of essentiallyhealth and emergency response-oriented nutrition interventions, with some attempts at unified nutrition programming and a little input into policy work such as the food hnportation work of the Food Commission. However, these activities lacked a clearly defined policy on nutrition originating from the highest leadership, and thus suffered from lack of coordination and coverage. The govermnent •concretized its cornmitraent to nutrition with the creation of the National Nutrition Council (NNC) in 1974 by virtue of P.D. 491. The Council was mandated to coordinate all nutritionrelated activities of both the government and private sectors. It took over the task of formulating the integrated PFNP and
levels are coordinated by the Ministry of Local Governments. The program's ultimate objective is to improve the nutritional status of the population, especially for the following vulnerable groups: (1) infants and pre-schoolers (0-6 years) (2) school children(7-14years) (3) pregnant women and lactating mothers (4) heavy manual laborers, and (5) those afflicted with nutrient de. ficiency diseases such as Vitamin A, iron and iodine deficiency (NNC, 1977). The program also adopted four main intervention schemes undertaken by different lead agencies. These were in the areas of food production, food assistance, health protection, and nutrition infomtation and education, Food--production is undertaken with the Ministry of Agriculture and Food as lead agency. This refers to small scale food production activities aimed at pro* aueing nutritious foods in the backyard, schoolyard, and community gardens, However, while the primary targets are families with malnourished pre-schoolers, in many instances, such families do not have the space to undertake food production, Food assistance is a temporary and preventive or rehabilitative supplemental•
coordinating .its implementation. The Council is composed of the ministers or the representatives of the Ministry of Agriculture and Food (MAF) and the Minlstry of Health (MOIl), who serve as Chairman and Vice-chairman, respective-
feeding to targetted vulnerable groups with MSSD as lead agency. The program intends to restore the weight of underweight pre-schoolers and school children to normal levels and to assist pregnant and lactating women to meet their energy
other health-related activities. About 1a million pre-schoolers (79% of target) and_ 709,000 pregnant women (50% of target)" availed of immunization services in 1984. This is still a very low proportion of the target •population. According to the NNC,
ly, and representatives of the Ministry of _.Soci_ilServices and Development (MSSD),
requirements. Food assistance is also carried out by the MOH, MAF, the
difficulty _s encountered in the monitoring of activities, especially in inaccessible
over-targetting. For example, •targets for school feeding included all pupils irrespective of nutritional status. On the other hand, pre-school feeding programs targeted only 60% to 77% of the possible targets. There were, therefore, leakages in the former and undertargetting in the latter. Food aid is another ticklish issue. .While self-reliance is a desired goal in the provision of food assistance, the program itself is highly dependent on foreign d0-i I hated food like the PL 480 Title II food aid program and the World Food Program. The Philippine government does encourage the use of indigenous food through the Applied Nutrition Program, but this is only supplementary to the donated food. The government also incurs costs in the inland transportation of the donated food. It has been questioned whether it would have been better if the government simply use the allocation in. tended for transport costs •in relation to the availment of donated food, to the purchase instead of indigenous commodi. ties. However, this move would result in only 11% of the targets being served. As of the moment, therefore, reliance on donated food remains a practical option (NNC, 1986). Health protection, with MOH as the lead agency, consists of activities designed to promote health or to restore the individual to good health. The program inchides growth monitoring of 0 to 6Tearolds, promotionfoods, of immunization, bteastfeeding and other weaning and
.
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eaS. Furthermore, lack of adequate alth personnel and low degree of community participation were the most important reasons for the inability to serve more clients (NNC, 1985b). Finally, nutrition information and education is carried on by many agencies, each with specific sectoral targets such as parents, farmers, farm families, and others. Nutrition information and education within the formal school system is undertaken by the MECS. An evaluation of the accomplishments of the program can be made by looking at changes in the nutritional status 6n the population, which will be discussed in the next section. 2. Trends in Nutritional Status NORMA UNDERWEIGHT
One of the major difffculties involved in an analysis of nutrition trends is the absence of comparable nationwide data over a reasonable time period. Although the Food and Nutrition Research Institute (FNRI) has conducted nutrition surveys ,from 1957 to 1966, these cover-
,ed only one region
per
year;
Luzon
and
teae,_o: J 51, 4
so
20
1o
lo 20 30 ,o Pe,CENrAOE OFTOTAL
so 6o 70 60
[] []
i,d17 Moe,r,,,_y
_
Sev*r, ly
..... r: _..,(.... ,...c( .... BY
TRENDS IN DISTRIBUTION OF PRE-SCHOOL WEIGHT-FOR-AGE STANDARD, PHILIPPINES,
CHILDREN 1978 to
1982
Visayas data are also available for the period 1975 to 1977. However, only the FNRI nationwide nutrition surveys permit a cdmpafison of national data. The more frequent surveys conducted by the Ministry of Health and the National Nutrition Council for monitoring pur* poses have been short.lived and are not strictly comparable due to differences in sampling and methodology. They are also relatively recent and do not permit a trend analysis, FNRI Food ComumPtion Surveys. While the FNRI is currently doing field work for its 1986 survey, the most recent data available for analysis are from 1982. This data set is generally regarded as the most representative of nutritional conditions. The 1982 survey covered 2,880 households in all regions except Region IX and XII of Mindanao, with sfinilar sampling procedures as the 1978 survey, These two regions were excluded for security reasons, (i.e., the uncertain peace and order situation). While this is aeons. traint that data users have to deal with, one must recognize the possible bias in terms of the understatement of malnutfition since these regions have been identiffed by other indicators as high poverty incident regions. It may not be accurate _to compare these regions to others at I I II
similar per capita income levels because of the effects of the peace and order situation on food production, The 1982 surveyrevealed that the average one day per capita nutrient intake was 1808 kcal, only 89% of the recommended daily allowance of 2032 kcal per person per day (FNRL 1984). Protein intake was, on the average, 50.6 grams per day, which was 99.6% adequate (Table 1). However, the percentage of households having energy intakes less than 80% of the required daily allowance (RDA) was about 34%, and those with protein intakes less than 70% made up 14% of the sample (Table 2). in spite of these nutrient intake inadequacies, the data reveal some improvement between 1978 and 1982, although the average level of food energy intake was below the NEDA target of 1996 kcal in 1982, a targetted increase of 11% (Table 3). The actual percentage increase was only 0.2%. This makes one question the feasibility of realizing some of the targets mentioned in development plans. In terms of imH illlll illl
provement measured by the the reduction of percentage of households below 80% of the food energy RDA, however, the rural sector's improvement has been lower compared to the urban sector's. The plight of the rural sector is also indicated by its higher absolute percentage of house. holds below the 80% level, and the magni. tude of the absolute numbers who cannot fulfill their energy needs. Anthropometrie Surveys. Data sources for anthropometric measurements of pre-school children on the national level include the two FNRI nutrition surveys, the index Monitoring Project (IMP) of the National Nutrition Council which ran from 1979 to 1981, the on-going National Nutrition Surveillance System (NNSS) and the Operation Timbang (OPT) of the Ministry of Health. However, the OPT results have been found to be statistically unreliable because of overestimation in the number of malnourish. ed children. This was because local staff had the impression that the OPT results were to be used to determine the allocaII ilil InI
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tion of food assistance, thus they selected depressed areas for data collection. At present, most municipalities collect simi. lar data to be used in their action plans, but not as a basis for evaluating national nutritional •status.
rural areas. This is a marked shift from the 1978-1982 pattern, where urban areas had both higher nutrient adequacies and a greater degree of improvement. The 1983 economic crisis seems to have had a greater effect on urban areas, since it hit
design of appropriate intervention strategies. The data gaps suggest that there• are( deficiencies in the country's monitoring system which can be remedied 0nly by the collection of timely and representarive data available to both the public and
To fill'in the need for a short-term nutritional status indicator in between the
the largely urban industrial and service sections badly. Increased unemployment as well as the decline in real wages have more severe nutritional effects in
policymakers.
the urban areas, where workers rely mostly on wage income for their livelihood. In contrast, •most of the rural folk are dependent upon their own produce for subsistence. Some predominantly
An evaluation of the Philippine Food and Nutrition Program vis-a-vis its objectires is now in order. Florencio (1985_ in a review of the Philippine nutrition program within a decade of implementation,
rural areas, however, showed up with high prevalence of malnutrition, particularly Western Visayas, which has been drastically affected by the sugar crisis,
agrees that the program has indeed accomplished a lot in terms of programs, administrative mechanisms and nutrition awareness at all levels of govermnent and
The results of two FNRI studies in Metro Manila (Valdecanas et al., 1984; Villavieja et al., 1985)also reveal sharp reductions in consumption and nutrient intake, particularly in depressed areas, More data need to be gathered in order to obtain a regional and locational perspectire of the nutrition situation to aid in the
among many sectors of society. There has also beer_, admittedly, •greater participation of government and private entities and the local populace in nutrition planning and implementation, The pressing question, however, is whether the program has in fact succeeded in improving nutritional status. Here, the evi-
FNRIbaselinesurveys, the NationalNutrition Council instituted the Index Monitoring Project (IMP)(NNC, 1985a). This project gathered weight-for.age data from index areas. The IMP results are presented in Table with1978 the corresponding FNRI data4 along from the and 1982 surveys. Note that the percentage of severely, moderately and mildly underweight are larger for the IMP surveys, indicating that sampling procedures are not comparable. Nevertheless, an examination of the trends they reveal is insightful. The FNRI data do not indicate a change in the proportion of the severely underweight, but there has been a reduction in those who are moderately underweight. In the IMP's index areas, both the incidence of severely and moderately underweight has declined, which may be a sign that intervention programs may have iraproved• the nutritional status Of preschoolers in index areas, but not necessarily in the nation as a whole. The IMP was later replaced by the NNSS due to non.reporting of data by field personnel.
25 g <
ful in assessing the nutritional impact of the 1983 economic crisis. A comparison
o __
of the two FNRI data points in Table 5 (1978 and 1982) shows that the p revalence of undernourished children has dec-
__ _
mased from 1978 to 1982. The improve.
1=_
ment in nutritional status has been re•versed after 1982, even after taking into account differences in the methodology of FNRI and NNSS surveys. The percen-
_ _ -i "_ g _"
rage of pre.sehoolers below 85% of the weight.for-height standard increased from 13.•3% in the third quarter of 1984 to 14.3% in the last • quarter of 1985. This deterioration was also observable from the weight-for-age data. Disaggregation by rural-urban categaffes reveals that some areas were more severely affected by the economic crisis than other areas. According to weightbasedindicators, urban areas.havea higher initial prevalence as well as a greater degree of deterioration compared to the
of Program Aeeom-
TREND IN WEIGHT-FOR-AGE OF UNDERNOURISHED 0-6 YEAR OLD CHILDREN, PHILIPPINES
help:
The NNSS data are particularly
3. An Evaluation plishments
_ = _ _
_ _ ® _
20
__%_
_ 15
IO
5
Source:
......
_ _
_ .
0
,
_,_
_-.'_' _ :_-_ -__ .c-e_ _ _;_ 5_." _ ._'('_q _.:.:t _,_'/_A 1978 (FNRI)
_ :_,
"_" _,,_
":_'-
_;; S_L--Z
y__ _:_ ,_ .._
_._._ :..... ___x.'.. ............
c_i ::_':7 .-_-
_ .... _ ._-_-_ z_ .... __"_-_.._. __'_'-"_'_ _'='_z_%_,_ _:_ ....... _._................ _ .1982 (FNRI)
:_,-_',_ 1984. (NNSS)
1978 and Nutrition 1982 Nationwide Surveys, FNRI National Council, Nutrition Menogement Information
,_Es _,_/ ,_ ;:-::.: -'_:" 1985 (NNSS)
(1981, Service_1984) Oivi_ioa.
PIDS DEVELOPMENT
RESEARCH
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is _rfixed. Citing data from the
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scheme
communities where the groups are at-risk;
II_qRI and the NNC, Florencio notes that gre increase in food energy consumption is way below the NEDA target.' Targets _ for the improvement in nutritional status of malnourished children were also not met. She goes on to say that '" . . the question of whether the
at a level of intensity adequate to bring about the desired consequences, as well as the lack of logistical support and a strong commitment from the program participants. Coordination among the different ministries is a difficult task, and it has often been said that nutrition is not a
and,(2) limits the identification of measures to those- which fill in deficits rather than preventive measures. The programs end up being "mere palliatives in effect, if not in intent" (Florencio, 1985: !40). Since direct nutrition interventions do not tackle the root causes of the problem,
PFNP significantly reduced malnutrition or not is difficult to answer. First, one has to measure changes in nutritional status.., and this is no mean
high priority in the sectoral agenda. Iglesias et al. (1985) point out that certain agencies which have direct policy hupact on nutrition are excluded from the Na-
their impact may be limited compared to the effect of other measures which are not traditionally linked with nutrition. In fairness to the NNC, the Updated 1984-
task. Second, one must attribute the observed change to the program, and this is an equally difficult undertaking It is likely that there were other factors which contributed to the reduction of the problem and not all of the change couM be attributed to the PFNP...'"
tional Nutrition Council, namely the National Food Authority (when "it was independent of the Ministry of Agriculture and Food) and the Ministry of Labor and Employment. The exclusion of these agencies,.a lack of nutrition advocacy and genuine political will to alleviate realnutrition may be behind their refusal to
1987 Food and Nutrition Plan recognizes these intersectoral linkages and is broader in perspective than earlier plans. It is formulated to address the malnutrition problem in two directions: immediate intervention designed to treat and rehabilitate identified malnourished cases, and longterm measures directed towards the
cooperate
underlying
Florencio
concludes
that
"due to the
laaaintainance of the intervention
III
in schemes which involve the
cause of malnutrition
(NNC,
complexity of the relationship among the so many factors which contribute to the nutritional status of a community, it is difficult to build a completely solid analytical basis for attributing any change sole-
use of agency resources for nutrition programs. At the local and community levels, studies of nutrition and health policy by Iglesias et el. (1985) and Carifio et al.
1985c). 4. General Policies Affecting Nutrition
tofact, the the PFNP" (Florencio, of1985: 139). deterioration nutritional status after the 1983 economic crisis cannot be blamed on the program since the depressed economic conditions led to cuts in program budgets and decreased financial access to food among the poor. Perhaps, without the program, the de. terioration could have been worse,
(1982) stress inthenutrition need for participation andgreater health local programs. Community participation becomes crucial for effective planning and implementation of nutrition programs for only
tional factors The are general determinants nutritional status. policy of environ. ment may have a greater overall effect on nutrition than do short-run direct intervention schemes. We now turn to some of
with decentralized planning and decision making are programs made truly responsive to local people's needs. Proper feedback and monitoring of nutrition programs is also essential. For example, Florencio (1985:140) notes that collection of data and submission of reports which remain generally underutilized reduees enthusiasm for the program. "All too often, data gathering is not followed by sufficient analysis and feedback to those involved" and workers perceived that it _ a waste of time. Ideally, the nutrition data should be made available, in understandable terms, to the commu, nlty so that program beneficiaries can also participate in the monitoring and evaluation oftheirownprograms, Florencio, however, points out that given the essential interventionist nature of the PFNP, the program's accomplish, ments may not be very far from what it can accomplish. She argues that approachhag the problem simply in terms Of defteieneies in specific nutrients among Cerrain sex-age groups: (1) tends to identify projects that are addressed to the afflicted individuals rather than households and
the factors which affect nutritional status, the subject, of discussion of the Nutrition and Welfare Working Group at the University of the Philippines at Los Bates.
That the program is more greatly affected by economic variables than it can manipulate these for nutritional objectires is discernible from the performance of the Pilot Food Discount Project. This project, conducted for one year (19831984) in depressed barangays of Abra, Antique, and South Cotabato, provided consumer price discounts on rice and cooking oil. Although the goods were subsidized at the rates of 32% on rice and 50% on cooking oil, the actual subsidized purchase price increased substantially because of the economic crisis, particularly the 27% peso devaluation in November 1983. The discounted price pn d to be adjusted upwards as market p ces increased (Garcia, 1985). Apart from economic factors beyond the program's control, Floreneio attributes the attainment of only modest gains between 1978, and 1982 to weak â&#x20AC;˘ implementation, which did not allow the
General food and agricultural policies as well as social, cultural, and institu-
Food Production and Food Availability. The food sector's performance is linked with the general agricultural poli. cy environment. While food supply is not the prhaaary cause of malnutrition, effective demand being a more crucial factor, one cannot deny that insufficient food supply is a constraint to increases in food consumption. Although nutrient availability per capita exceeds the required daffy allowance (RDA), this does not indicate satisfaction of nutritional needs since inequality in income distribution has not been considered. There is a need to target food production levels with an allowance of at least 25% over the RDA; 50% may be a more reasonable estimate. Although a strong agricultural sector provides a good base for nutritional improvement, government industrialization policy in the postwar era has been generally biased _against agriculture. D_.vid et
P IDS DEVE LOPMENT II
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FJ_TO¢_
AFFECTING
NUTRITIONAL
STATUS Yield j
Production Dlsfrlbutto_ InforncRIonol
Processing,
• frQ_
f_ed
Money In¢o_le Price_ Income in kind Own production
and aid
Food (National,
avo lla bill ty Re_ondl. Local) |
--'_---_
_q_ld
--_
fo obtain
................ Available Food (Household)
Program3 to direr nutrient Foreign trade, aid pollcle_
past consumption, ditions, social_ fu£al, religious factor_
frocLII-
_----_
avail-
somp_$1fion
--
effects Production Food
" .....
f_
supply,
home demand
c_lsumpfion, policies
etc. with p¢lce
]nfra-famlly and contrOl Income changesdistribution Promotion qnd qdvertising
J
[
Health factors Intro- hOulshOId fOOd distribution .... Child core ....... intro-household food ---..... procemslng Food characteristics and ......... composition Time constraint3 ---_-........
•
to obtain able food _Household)
programl
Ih¢Celr_ g_Qrafing poIjciee income and _source dlstrit_Jtio_ Food _Ubsldles, noflons, direct f_dblg Price policies (commodity,grouppgenero[)
....
De,Ire
activities
commodlflei
L_ _ _ -....... ...... _
_
area ecpofldlrlg
and nonfood
Dlstri butto_, st0cqge, procur_ output price policies Reeogrce (_wnership policies
_ Intra-household income ___ distribution Outside Influences Perceived food needs --
effl¢lltmcy,
for food
_--_---,--Input, _'--
J Ability
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Utilization of o_talned food tO meet nutritional need= (HOU_liho)d _lnd individuaO --
-_ _---_-__-_---_
Nutriflo_ education public health programs Water improvement projects Supply projects,vitamins_ mine_al_ Disedse prevention and cure Child care and breast feeditlg program_
Nutritional statue (individual) Source:
Pihstrup-
Andersen
(1981)
. . d
Source: Pinstrup - Andersen, P. 1981. Nutritional Consequences of Agricultural Products: Conceptual Relationships and Assessment Approaches. World Bank Staff Working Papers No. 456. Washington, D.C. international Bank for Reconstruction and Development. as. (1983) show that government price intervention policies in agriculture have served to weaken incentives to agricultural production, even if sonaewhat offset by non-price interventions such as irrigation and infrastructure provision. If incentives to agricultural production are diminished, and if returns to crops which
Another related issue is food aid. A1though food aid lowers the consumer cost of food, lowered prices may be a disincentive to domestic production. In addition, food aid may actually take the form of cheap food importation, which may add to balance-of-payments pressures and budget deficits. _
provide income and employment to small famaers (e.g., rice, coconut, and sugar) a:;e reduced, there could be potential negative nutritional effects. Reduced agricultural
The consensus appears to be that there is no substitute for increased agricultural which can be positively at-
study of cropping system in Solana, Cagayan is one of the few Philippine stu-
production would put pressure on food prices,'employment and incomes; reduced incomes would affect the purchasing powet of low-income groups, Commodity specialization may also have its nutritional consequences. Perhaps
fected by agricultural research and extension. Plant breeding programs, for example, can have two significant effects on nutrition: (1) by improving yields, improved varieties make possible a supply shift which lowers the price of the food
dies undertaken to date (Paris and Un. nevehr; 1985). Household Food Acquisition Power. The household's ability to purchase food is affected by incomes in cash and in kind, together with prices of food and non-food
the sugar crisis in Negros is the most dramatic example of the dangers of cash crop specialization of farmers at subsisfence-level incomes. The vulnerability of the specialized low-income producer's nutritional status to market demand fluctuations in the absence of adequate insurance schemes has often •been used as an argument against shifting from food
commodity to consumers; and (2) by ira-. proving the nutritional content of food commodities through genetic manipulation and indigenous varieties or introduction of new ones. According to Mendoza (1985), plant breeding in the Philippines has been focused mainly on inaproving crop yields, although the best varieties are analyzed for their nutritional
commodities. Household income appears to be the most significant determinant of nutritional status, and, in the long run, improvements of the nutritional status of at-risk groups will depend on sustained income increases. As Regalado and Gonzales point out, an income transfer (short term) may be effective only as a shortrun intervention. Considering the highly
to cash crops. Although cash cropping may yield higher incomes, the variability of that income stream is also a key consideration at low income levels. Diversification seems to be a more sensible
content. Thus, improvement iJ1 nutritional status is an indirect effect. As far as commodity priorities in research and extension are concerned, studies by Pinstrup-Andersen et as. (1976)and Qui-
skewed distribution of income, one ;1 fective means of improving nutrition the poor is to alter the society's income distribution, which calls for greater redistributive measures-not only income
policy than concentration high-return cash crop.
sumbing (1985) suggest that the nutritional effects of agricultural supply shifts II II II
transfers, but also asset transfers. In the Philippine context, this would include an I .........
in a high-risk, I
productivity
may have favorable distributional_ consequences, provided the supply of a stabk food consumed by low-income groups i( increased. Finally, at the talon level, the particular conditions associated with cropping systems-ownership patterns, seasonality, crop mix and tenure relations-can have significant effects on nutritional status. This is a relatively unexplored field; the
PIDS DEVELOPMENT III Table
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1986
1. Mean One-Day Per Capita Nutrient Intake and Present Adequacy: Philippines, by Urbanization and Island group, 1982. BY URBANIZATION
Nutrient and Particulars
BY ISLAND GROUP
Philippines
All Urban
Metro Manila
Other Urban
Rural
Luzon
Visayas
1808 2032 89.0
1831 2038 89.8
1797 2048 87.7
1852 2032 91.3
1797 2029 88.6
1814 2032 89.3
1745 2030 86.0
1906 2035 93.7
Intake (g) RDA Percent Adequacy
50.6 50.8 99.6
53.4 51.4 103.9
51.9 51.5 100.8
54.2 51.3 105.9
49.3 50.5 97.6
50.1 50.8 98.6
51.3 50.8 101..0
51.6 50.7 101.8
Intake (mg.) RDA Percent Adequacy
10.8 11.8 91.5
11.4 12.1 94.2
10.6 12.4 85.5
12.0 12.0 100.0
10.5 11.6 90.5
10.8 11.8 91.5
10.7 11.7 91.4
Energy Intake (kcal) RDA Percent Adequacy
Mindauao
Protein
Iron 11.0 11..7 94.0
Source: FNRI, 1984.
L L'
Table 2.
Comparison of percentage distribution of households by levels of energy and protein adequacy, by urbanization and island group, Philippines, 1978 and 1982. BY URBANIZATION
NUTRIENT/LEVEL OF ADEQUACY 1
Philippines 1978
1982
BY ISLAND GROUP
Urban 1978
Rural
1982
1978
1982
Luzon 1978
1982
Visayas 1978
1982
Mindanao 1978
1982
Energy2 Less than 80% 80-100% 100% and over
38.4 39.1 22.5
33.6 44.2 22.1
38.7 37.0 24.3
32.1 44.4 23.5
38.2 40.1 21.7
34.3 44.3 21.4
34.3 39.9 25.9
33.1 44.8 22.0
46.2 35.6 18.2
38.0 43.8 18.2
41.0 43.0 16.0
27.1 42.5 30.5
Total
100.0
99.9
100.0
100.0
100.0
100.0
100.1
99.9
100.0
100.0
100.0
100.1
16.4 55:6 18.0
14.2 61.5 24.3
12.0 54.5 33.5
11.1 59.1 29.6
18.5 56.2 25.3
15.6 62.6 21.6
16.0 53.7 30.3
14.9 62.3 23.3
16.5 57.7 25.8
15.3 61.5 23.5
17.8 60.2 22.0
11.1 58.4 30.3
100.0
100.0
100.0
99.8
100.0
99.8
100.0
100.0
100.0
100.0
100.0
99.8
Protein 3 Less than 70% 70-119% 120% and over Total
1percent of nutrient intake over recommended allowance 2Less than 80%energy adequacy levelis an arbitrary cut-off point set as marginallevelof energy adequacy based on the coefficient of variation of energyexpenditure from variousoccupational groups which is about 20%. 3Lessthan 70%protein adequacy level - an arbitrary cut-off set as marginallevel of protein adequacy Whichtakes into account 30% marginof safety. Source:
FNRI, 1984. IIIIIII
I
II1'
IIIII
I I]
'PIDS DEVELOPMENT
RESEARC_,,,NFWS
8
MARCH-APRI III
III
1804 48.8 10.6 0.44
1808 50.6 10.8 0.45
0.2 5.4 1.9 2.3
point of view. This may arise because households do not perceive their ow_ nutrition deprivation, and thus do nor'take steps to improve their nutritional status (Gonzales-Intal, 1985). Another factor is the lack of knowledge regardhag food and nutrition needs, wrong information received from outside the household, the promotion of nonnutritious food, and prevailing cultural factors affecting food consumption. This is ctearly an area for hnproved nutrition information and education.
0.73 0.73
0.74 0.58
1.4 9.4
Individual Food Utilization. Utflization at the level of the individual is affect-
16.4 16.6 .30 327
7.2 (7.8) 7.1 (1.5)
ed by intra-household food distribution and the individual's health status. Again, this is an area for nutrition infomaation and education as well as the presence of complementary social infrastructure inputs for health, sanitation and education. The scope for nutrition policy, when viewed from an interdisciplinary perspect-
Table 3. Comparison of Mean One-Day Per Capita Nutrient Intake Philippines, 1978 and 1982. 1978
1982
Nutrients/Units Intake
Increase (Decrease) %
, Energy, kcal Protein, g Iron, mg Calcium, Thiamine, mg Riboflavin, mg Niacin, mg Ascorbic acid, ng Fat, g Carbohydrates Source:
15.3 66.8 28 332
FNRI, 19'82 Nationwide Nutrition Survey.
expandedâ&#x20AC;˘ agrarian reform program. A long-term strategy to reduce poverty and generate overall income improvement will have to involve distribution-oriented patterns of economic growth, Food price policy is also used to affect nutritional intakes, although food subsidies need to be applied judiciously using both commodity and income-group-
Table 4.
L 1986 I
specific targetting to maintain costeffectiveness. The macroeconomic consequences of food subsidy polici6s also deserve consideration, particularly their effects on the trade and budget deficits, Household's Tastes and Preferences. The household's decisions regarding the amount and types of food consumed are often not optimal from a nutritional
ive, is very large. With that in mind, some general recommendations for policymakers to consider can be made. (1) There is no substitute for distrib._ tion-oriented patterns of "economi_ growth to solve the problem of malnutri. tion. Poverty eradication through increased incomes and a more equitable distribution of income must be the target of
Trends in distribution of pre-school children by weight-for-age standard, Philippines, 1978 to 1982, FNRI and IMP results. 1 PERCENTAGE OF TOTAL
Year and Source _'
No. of Children weighed
Normal & overweight
Mildly underweight
Moderately underweight
Severely underweight
FNRI 2 1978'
3274
31.1
46.6
20.6
1.6
1982
3634
31.3
51.5
15.6
1.6
1979
82995
27.4
42.6
26.3
4.7
1980
91574
28.8
43.7
23.9
3.6
1981
94426
31.7
43.2
22.2
2.9
IMP3
1Mildly underweight - Less than or equal to 90% of standard weight for-age for Filipinos. Moderately underweight & Less than or equal to 75% of standard weight-for-age for Filipinos. Severely underweight - Less than or equal to 60% of standard weight-for-age for Filipinos. 2Based on data from the 1978 and 1982 NationwMe Nutrition Survey, covering 2,800 and 2,880 households :}Based on consolidated
xeports from randomly
selected
index areas set by NNC for monitoring
in their respective
purposes.
Source: FNRI (1984), NNC (1982).
I II
III
II
IIII Illlllll
years.
PIDS DEVELOPMENT IIIIIII I
Cable 5.
RESEARCH_EWS I
9 I
MARCHIII
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APRIL
1986
Comparison of trends in weight-for-height, height-for-age, and weight-for-age of undernourished 0-6 year old children, Philippines, FNRI and NNSS Results. " I
Year and Source
No. of Subjects
Weight-for Height _85% 985%
Height-for_Age <90% _90%
1978 (FNRI)
3400
13.8
86.2
n.a.
1982 (FNRI)
3615
9.5
90.5
20.6
1984 (NNSS)
3440
13.3
86.7
1985 (NNSS)
3243
14.3
85.7
Weight-for-Age _75% _>75% 22.2
77.8
79.4
17.2
82.8
25.2
74.8
20.5
79.5
24.8
75.2
22.0
78.0
Source: 1978 and 1982 Nationwide Nutrition Surveys,FNRI (1981, 1984) National Nutrition Council, ManagementInformation ServicesDivision.
ecpnolnic policy. (2) There must be greater coordination and integration of nutrition efforts among the various branches of government. This presupposes a stronger commitment to nutrition as an objective of development policy. In this scheme, ievery ministry can integrate nutrition 'within its overall function, while the National Nutrition Council can expand its coordinative role. Perhaps, the Council can be raised to the level of a NEDA committee to increase its ability to implement multi-sectoral policies. The council can be assisted in its functions by -a strong teclmical and research cornponent to provide the bases for policy
REFERENCES Call, D.L and F.J. Levinson. 1971. A systematic approach to nutrition intervention programs. Nutrition, National Development and Planning. Cambridge, Mass: MIT Press. Carifio, LV., et al. 1982. Integration, Participation and Effectiveness: An Analysis of the Operations and Effects of Five Rural Health Delivery Mechanisms. Makati, Metro Manila: Philippine Institute for Development Studies. David, C.C. 1983. Economic policies and Philippine agriculture. Paper presented
1984. Second Nationwide Survey, Philippines, 1982. Nutrition
Nutrition
1981. First Nationwide Survey, Philippines 1978.
Garcia, M,I_ 1985. Preliminary results of the food discount experiment in the Philippines. Memo submitted to the National Nutrition Council, January 15, 1985. Gonzalez-Intal, A.M. 1985. Social and psychological aspects of food consumption in the Philippines: Problems and strategies for change. Center for Policy and Development Studies Working Paper No. 85-16. University of the Philippines at Los Baflos.
recommendations, (3) Government must be willing to undertake short-runinterventions addressed to nutritionally vulnerable groups, for one cannot wait for economic growth's
at the Workshop on the Impact of Economic Policies on Agiicultural Development, Tagaytay City, March 2526, 1983. Sponsored by the Phifippine Institute for Development Studies.
Iglesias, G. U., A.G. Pacho,,M.F.S. Villamejor et al. 1985. Severe Malnutrition of Filipino Preschool Children: A
benefits to reach them in the short-run. These are the groups for whom immediate action may be crucial to their survival, (z]) Finally, effective linplementation of nutrition policies entails greater cornmunity participation in the design and implementation of programs. This means
Florencio, C.?L 1985. A Decade of the Philippine Food and Nutrition Program. In Nutrition as a Focus of Development Policies and Programs in the Philippines. Diliman, Quezon City: College of Home Economics. (Mimeo).
ministration, University of the Philippines. Mangahas, M. 1984. Nutrition and the Political Economy of Market Controls. M. Mangahas, et al. The Distributional Impact of Food Policy on Nutrition: A Political Economy Study. Report submitted to the International Food'
more decentralized planning and, eventually, greater self.reliance as commu_vtities become both more financially and _perationally responsible for their own programs, SUBSCRIBE TO THE DEVELOPMENT RESEARCH NEWS NOW
Florentino,
i_., C. Adorna and F. Solon.
1978; Interface problems between nutrition policy and its implementation: A Philippine case study. Paper presented at the Conference of Interface Problems Between Nutrition Policy and its Implementation. Cambridge, Mass., Massachusetts Institute of Technology, November 5-8, 1978. Food and Nutrition
Research Institute.
Policy (3 College vols.)Manila: Policy Studies Review Program, ofiPublic Ad-
Poficy Research Institute. Pasig, Metro Manila: Development Academy of the Philippines. Mendoza, E.M.T. 1985. 'An assessment of the contribution of plant breeding programs to nutrition in the Philippines. Center for Policy and Development Studies Working Paper 85-17. University of the Philippines at Los Bafios.._.
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PIDS DEVELOPMENT .......
RESEARCI-_b_WS I
10 I III
cies andNutiition ProgramsCouncil. for Groups National 1986.VulnePoli-UPDATE table to Malnutrition. (Draft). 1985a. Preliminary Reports, Index Monitoring Project and National Nutrition Surveillance System. (Per-
MARCH-APRIL
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_
Moreover, the paper delves in intothetilepaper. conl ment are also investigated sistency by which .these measures are adopted• vis-¥vis the policies that are
n-------_ 1[ f'll_,k--_
_
1984-87
VITY GROWTH IN PHILIPPINE MANUFACTURING: RETROSPECT AND
Food and
sonalCommunication). 1977. The Philippine Nutrition Program, 1977-1982. Pads, T. R. and LJ. Unnevehr. The effects of agricultural production on nutrition: A case study of three villages in Solana, Cagayar/. Paper presented at the Workshop on Nutrition and Welfare, University of the Philippines at Los Bafios, October4-5, 1985. Pinstrup-Andersen,
Quisumbing, M.A.R. 1985. Estimating the distributional impact of food market intervention policies on nutrition, Unpublished Ph.D. Dissertation, School • of Economics, University of the Philippines,
FUTURE PROSPECTS by Richard Hooley, Professor of Economic's,Series University l_'ttsburgh Monograph No. 9: ofPRODUCTIand U.ND.P. Consultant to the PIDS
_
NEW
PUBLICATIONS The study measures the rate of out-
Monograph Series No. 7: PUBLIC POLICY AND THE PHILIPPINE HOUSING MARKET by
P., N.H. de Londono
and E.J. Hoover. i976. The impact of increasing food supply on human nutrition: Some implications for cornmodity priorities in agricultural research and policy. American Journal of Agricultural EconolniCS.58: 131142.
Edna AngelesReyes Research Fellow Philippine Institute for Development
Studies
Tile study analyzes the major aspects of supply and demand for housing, and in the process, identifies specific housing problems and their underlying causes. A historical description of the housing situation is presented and this brings to the fore the affordability of households and housing cost. Likewise, there is an attempt to estimate the income and price elasticities of housing demand. Some of the housing policies and progrmns undertaken by the
Regalado, B.M. and LA. Gonzalez, 1985. Economic detelaninants of 'nutrition. Center for Policy and Development
government are reviewed and evaluated, in particular, the National Shelter Prograin.
Studies Working Paper No. 85-13. university of the Philippines at Los Bafios.
Monograph Series No. 8: A REVIEW AND APPRAISAL OF THE GOVERNMENT RESPONSE TO THE 1983-84 BALANCE OF PAYMENTS CRISIS
Valdecanas, O.C., R.F. Florentino, M.R.A. Pedro, LM. Vicente and S.S. Maninang. 1984. Nutritional Patterns and Adjustment/ to the Economic Deviation of 1983-84 Among Selected Households in Metro Manila. Food and Nutrition Research graph Series 1.
Institute.
enunciated by government.
_,_k
1985b. Annual Report, 1984. 1985c. Nutrition Plan.
1986
II
by
Mario Lamberte, et. al. Research Fellow Philippine Institute for Development Studies
put growth for the manufacturing sectot as a whole, as well as a crosssection of several industries. Constructed on a consistent basis over a twentyfive year period, an in-depth analysis is made of causal product-of ivity change, alongfactors with behind the process diffusion of productivity gains. In addidon, the study also determines the effect of increased use of traditional inputs on the one hand, and technological change on the other hand, in the growth performrace of manufacturing industries. At the latter part, the study draws attention to the policies appropriate for improving the contribution of productivity change to industrial growth. From the estimates gathered of industry performance, an assessment is made of the impact of fiscal, monetary and industrialization policies on the efficiency of manufacturing firms and its implications on the macro level. Monograph Series No. 10: FORECASTING MONTHLY INFLATION IN THE PHILIPPINES by Roberto S. Mariano Visiting Consultant to the Philippine Institute
for
Development
Studies
Mono-
The study attempts to evaluate the various stabilization measures adopted by
The paper develops a statistical procedure for forecasting inflation rates,
Villavieja, G.M., T.E. Valerio, C.M Nones, C.M. Cerdena, tLM. Abaya, and J.P. Boqueza."1985. Assessment of the Nutritional Situation of an Urban Re-
the government in response to the 198384 crisis. A comprehensive examination is made on measures that aim to improve the pay.merits position, manage bud-
on a monthly basis, as measured from,, fluctuations in the consumer price indexl (CPI) for the entire Philippines_ The forecasting procedure's main ingredientis a re-
gion in a State of Rapid Economic Elux. National Science and Technolo-
get deficits and the growth of reserve money, including price and wage adjust-
gression equation which explains monthly CPI levels in terms of: a) CPI past values;
gy Authority, Food and Nutrition Research Institute. II
ments. How these measures have affected inflation, outpu t and national employII IIII II
b) the average wholesale posted price of petroleum products as detennined b_y II Ill III
PIDS DEVELOPMENT
RESEARCH
NEWS
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IIll
1986
11
the Board of Energy; c) a tariff-adjustea POrt price index for nonJ'uel hnports an export price index, both of which are peso-denominated; d) a U.S. dollar black market premium; e) total domestic liquidity relative to real output; f) the legislated minimum wage and cost-of-living allowance; g) changes in the price ceilings of food items imposed by the Price Stabilization Council; and b) the effective rate on 91-day treasury bills.
of the reforms on the state of health of the system are explored in the study. The leading question is to what extent did the reforms contribute to the balance of payments crisis. There is also discussion on how the reforms weaken the banking system's ability to weather the external crisis, and if so to what extent.
ECONOMIC POLICIES FOR FOREST RESOURCES MANAGEMENT
1985, VOL. XII NO. 2
by
This journal issue features select attides related to "Australia-Philippine Trade Relations" by Hal Hill; "The Australian System of Tariff Preferences: An Evaluation of its Employment Effects in the Context of Australia-ASEAN Trade¢' by Jose L. Tongzon; "The Recent Recession and Rising Protectionism m Developed Countries: Some Thoughts on the ASEAN Economies" by Romeo M. Bautista;.Mario B. Lamberte's "Financial Liberalization: What Have We Learnt?;" "The Economic and Social hnpact Arialysis of an Upland Development Project in Nueva Ecija, Philippines" by Marian Segura-delos Angeles; "The Macroeconomic Policy Environment of Philippine Agricultural Performance" by Ponciano S. Intal, Jr. and finally, "Electrificafion and Regional Economic Develop-
livestock industry and in the inputs into animal production has two components: 1) the changes in meat production technology; and 2) the changes in feed ingredient production technology and marketLug. Moreover, .the re_ulting rapid growth in demand for animal feed requires either technological change in domestic production of feed ingredients, or an increase in the use of imported ingredients, or both. Since traditional production systerns are typically unable to respond to the growth in demand for inputs, increased meat availability must arise from change in production methods, or in iraports. Feed ingredients that are used as food are usually inferior staples consumed on the farm so that a shift infeed marketing patterns normally accompanies this structural transformation.
ment in the Philippines," by P.C. Frederiksen,
The paper outlines a model of structural change in livestock-feed industries and reviews estimates of the supply and de-
14_lfrido Cruz, editor Executive Director, Center for Policy and Development Studies University of the Philippines at Los Ba_os
The report presents an overview Of Philippine forestry and introduces some of the key economic concepts of resource use and management. After setting down the research framework for forest resource management and land allocation, the report presents the summaries of the papers, together iwith the discussions that followed, as highlighted in a PIDS seminar-workshop on "Economic Policy'for Forest Resource_ Management," held in February 1984. The four major topics identified in these papers relate to land u_e and commercial forest managelnent resources; macro-economic policies affecting forestry; upland development anti the shifting cultivation problem;and lastly soil erosion and watershed management. â&#x20AC;˘
JOURNAL OF PHILIPPINE DEVELOP- MENT, NO. 22, SECOND SEMESTER
COMPLETED The following studies form part of a major workshop on the Livestock-Feedstuffs sector of the Philippine economy under the Agricultural Policy Studies Program of the Center for Policy and Development Studies (CPDS). The Center is an independent policy research center lo-
while the latter is a Research Fellow at the Philippine Institute for
cated at the University of the Philippinesin Los Bafios. The seven (7)state-of-the
Development Studies.
art review papers focus on supply constraints, the policy issues affecting the livestock and feedstuff industry, including marketing and distribution aspects of the sector. The project, which was jointly sponsored by the Center for Policy and Development Studies, the Philippine institute for Development Studies (PIDS), Winrock International and the U.S. Agency for International De-
The l_hilippines introduced a set tof financial reforms in 1981 prima_ly aimed at liberalizing the financial system. Two years later, a grave payments crisis intervened and cut short the momentum to successfully implement these reforms on the financial system. Specific questions concerning the impact Illl
I
Illlll
STRUCTURAL TRANSFORMATION IN PHILIPPINE LIVESTOCK AND CORN MARKETS by Gerald Nelson and Laurian Unnevehr Workshop Paper Series No. 86-1 The structural transformation in the
PROJECT5 FINANCIAL REFORMS AND THE BALANCE-OF-PAYMENTS CRISIS: rile CASE OF THE PHILIPPINES, 1980-83 StaffPaper Series No. 86-02 by Eli Remolona and Mario B. Lainberte. The former is an Assistant Professor of the School of Economics, University of the Philippines
veloplnent (U.S.A.I.D.), culminated in a seminar heltl last February 25, 1986 at the Continuing Education Center,also at the University of the Philippines in Los Bafios.
IIll
mand determinants. Likewise, it provides some analysis of how government policy has affected the feed-livestock sector. It also provides some preliminary suggestions on how government can ease the adjustment costs of the transformation, as well as research directions. CORN PRODUCTION -PROGRAM IN THE PHILIPPINES: PROBLEMS AND PROSPECTS by
Generoso Octavio and Manuel Lantin Assistant Professor, Department of Agricultural Economics and Chairman, Department of Agronomy, respectively, U.P LosBa_os. Workshop Paper Series No. 86-2
The paper reviews and analyzes the country's corn production system and the problems encountered by cornproduction programs. By determining the private and Ill
II
i
PIDS DEVELOPMENT IIIII social profitabilities
RESEARCH.,,_NEWS
12
MARCH-APRIL
1986
Hill[
of corn productio_l
THE EFFECT O17GOVERNMENT
1) cost is not competitive;
the study supports the claim that the country has high comparative advantage in corn production. Experts in the field
POLICIES ON THE PHILIPPINE LIVESTOCK AND FEEDS INDUSTRIES
of volume. The study further proposes_l that ideas for research must be gearedtowards utilization of crop residues
agree that corn as a product, either .in the form of human food, animal feed or raw material for industry, can be considered as a most valuable cereal grain. Hence, the study recommends that other than field extension services, further financial assistance like credit programs and incentives be granted to corn pro-
by
to provide the animals a regular supply of feeds throughout the year. Likewise, researches must entertain alternative inputs that are likely to be more affordable to farmers. Beyond chemical and biological evaluations, studies should put more emphasis on lowering the cost of production and processing. Examples of
ducers.
The paper outlines the impact of government policies on the feeds-
studies that must be given support are in the areas of cowpea production; earth-
CORN MARKETING IN THE PHILIPPINES: AN OVERVIEWANDAREVIEW OF TRADE AND PRICING POLICIES
livestock industries by quantifying. the effect of policies on feeds and meat prices. In its findings, the variables that have had the most significant effects on the domestic prices of feeds and meat were the exchange rate, tariff and trade policies. Iin addition, these variables have als0 affected the competitiveness o.f livestock producers in the world market. For one, the overvalued exchange rate has
worm and maggot meal production; fortification of cassava and sweet potato meal to equal the feeding value of corn; and lastly', the low cost drying process. The results of these studies must be or..... ganized and. the information extended to farmers. Piloting may be advised at farm levels in order to influence farmers to adopt the technology.
The study provides an overview of the corn marketing system in the Philippines with emphasis on the structural changes that occurred since the 1970s. It reviews
made the Philippines a net importer of feeds and has stifled the development of livestock exports, particularly hogs. Also, the implicit taxation on feeds have re-
IMPROVEMENT OF PHILIPPINE LIVESTOCK PRODUCTIVITY THROUGH BREEDING: SOME POLICY ISSUES by Cecilio Arboleda, et al. i
government policies and their effects on domestic corn trade and prices, Important issues in corn marketing and distribution are identified and it is
suited in high domestic feeds prices, thus reducing the competitiveness of domestic . livestock producers. In the future, pricing policy on feed
by lsabelita Pabuayon Assistant P_ofessor, Department of Agricultural Economics, .College of Development Economics and Management, U.P. Los Bagos. Workshop Paper Series No. 86-3
exactly on these areas that search is recommended,
future
re-
Liborio S. Cabanilla Assistant Professor, Department of Economics College of Development Economics and Management, U.P. Los Bafios Workshop Paper Series No. 86-4
and 2) lack
Director, Institute of Animal Science U.P. Los Ba_os Workshop Paper Series No. 86-6
substitutes like cassava, and.other protein supplements will play an important role on the long=run prospects of utilizing non-conventional feedstuffs. 'Likewise,
In the area of livestock Production, the Philippines has pursued a policy of importing breeding animals from other countries and has practically abandoned
the growth of the ruminant sector will depend, to a large extent, on the availability of sl_aall farm credit programs and available market infrastructure: On the other hand, the non-ruminant sector's growth will depend on the price of feeds because of the large component of feeds cost in the total cost production,
all efforts to develop local breeders. In recent studies, however, one of the most widely contested policy issues calls for limiting stock .importation, since most local species have enough genetic diversity, to render the contribution of imports marginal at best. This is particularly true for pigs and chickens. Hence, a policy of severely limiting breeding stock
stock production. The marketing and distribution system" of corn is characterized by intraregional
POTENTIAL FEED SUBSTITUTES FOR LIVESTOCK AND POULTRY AND THEIR ECONOMIC VIABILITY
importations would benefit local breeders .and the animal industry as a whole, provided that local breeding efforts are pro-
and interregional flows and trade channels. Given the shift in domestic demand to greater feed use, a major concern is how to achieve a more efficient corn marketing and distribution system. In so far
by
perly supported .by the government and seriously executed by the private sector. In line with this alternative , it may be
Since the 1970s, the domestic production of corn has lagged behind the rapidly expanding needs due to the steady growth in demand for poultry and livestock feeds. This has, in turn, resulted to greater demand for corn imports. In. terms of aggregate corn use, corn for food use declined while feed use became increasingly important with the rise in the markets of commercial poultry .and live-
as government's role is concerned, the provision of relevant market information . systems and adequate infrastructure, particularly transport_ is deemed supportive of these goals and is beneficial to the :whole .agricultural sector as well. III
Perla Lopez Professor, Institute of Animal Science, U.P. Los Ba_os Workshop Paper Series No. 86-5 11ae study starts with the 0bserva-
don that inadequate nutrition is an important limitation to livestock production in tropical countries. Moreover, inspite of numerous studies on feed substitutes, nothing can be recommended for immediate application for two reasons: III III
well to establish animal breeding research centers to develop breeds and varieties of| animals to provide the livestock industry_ with superiorbreeds.
II
PIDS
II
DEVELOPMENT
IH
RESEARC_EwS'
I HIIIIIIII H
:::
_
AM AL FEED
....... oY:Albert:LadoresandRegaladoZamOra: .AS:gistan Animal tScience ::i_o¢k, ssor, Asian:dnstituteof34anage= .............. : ment;respective6, ..... WorlcshopPaperSeriesNO: : ....... : :
: : 13
:
.... II ........... 111111 :III'N_
........ :tl_ai::foiiowed
MARCH-APRIL
'1 I'lli
I
: cussions br0ught to attet_tion: the :probl6ms:::encounteted by the fishi'ries industry due to prohibit:ire ta:
rep:resentat:ives f_om the Board of Invest_ merits, the Mi_.istry of Trade and the NEDA.
restrictions, :At ttte same potemitd time, possi: i tiff: bifitie s for greate:r market inl certaiii fish products like Canned tuna,
i :::: : : .]O1.N'I UNICEI_-PIDS SEMINAR ON .... " ...... _ _, ADJUSTMENT WITH A HUMAN FACE
: raw:shrimps:and :
'illll;l
1986
prawns were, cited. Most I were staff members : i of tiie institute. ....... i•
.... Tl*e
:first j0i:at
setNnar
for
the
,_ L THE IMPACT OF ::feed and : aiia/yzes 't]ie pros: ON :: BOI :: pects of feed substitutes like cassava: INCENTIVES ON:::THE RATE OF arid Sweet po[at0: Be:ing a major seg_ RETURN;:F ACTOR.: PRK:ES AND RE ..... ment of tile:: livestock and poulti:v i)_:. ,1:LATWEEACTOR USE .... dustlT in {'.lie Plffllppines;i the: criEcaJ :
year was the UNICEF-PIDS seminar _ "Ad}ust_lent w:ith a . Human Face," held April 4, 1986 at the Metro Club on .
animal; feed. industry April, a semhiar and the: c:ritical variables for the i:t;,, "The:Impact: of BOI Incentives: dustry are:looked krto: Va*iouS sttggest:: i otll iRatei0f R.eturia:, 'Factor Prices aadl ions iire offered by tl_e au.tl.ors regar:cing: : Relative: I FaCtor use: A Comparative
l)irector of the Institute for Developmen¢ Studies of the University of Sussex, and current:!y Dept_ty Executive Director of the ETNICEF. The event brought together
these:::ln:the:former, gove_men* initiative J_mlysis h_centives Uilder the OretO: hold:regular consultations anoiig pro= i:i nibx£ [nveStinents Code of ]981 CPI_ sup'ply .... 1eve s will: have :1789)and the h'westments Incentive Polito be _ndertakenl In ihe latter, the private ey Act (B P:.391)" was held at the NEDA sector' s participati:Gi is taken: t0 be of Buikling lit Makati. The paper prese_nted great import:.: There is a ge_ieral Consen:: : wasautho]ed, by_Dr_ R0sario O Mana.sa_L sus aniong leaders in th.e i_dt_stry tha_: a:ReSearcb. Fellow of the Ptfilippine Insti_ •_6,rther progress in the area willl dbpeitd:: tUte: for Development Studies. Once "l_argely::on :the availability 0f raw ma.t:e:: again;the discussion reiterated tile idea: rials: and::fl_e: pricing of: these; especially of letting ttre market System decide {yn those that are imported or sold by thel government: ::::There is : optknism Withl
tO
i'nvestme]'it cb0iees. Tlie participators who: shared their views in:the discussions were
duction :of feedgrains, pri]cipally eorii: ....and soybeansl t 0 boost: th.e ani]nai feed industry: : ......
AND COMPARATIVE ADVANTAGE: PHILIPPINE:FISHERIES: ..... :An
in:llous:e
Semiriar
0n:
'Tariff
Protection alid: C0mparative:: Advan:: rage Philippine Fisheries" was held :::March 6: at :t!!e :NEDA: sa Makati Build! ing: Highlighting the inasteral tlaesis: of Fe Gentiles:,:a Senioi Researctl :Assist. :::ant of the I IDS; the seminar and tlie dis= ...............: HIIIII I II " Ill'
[I
IIH[II
I.......................... I
iI; Makati: The seminar :highlighted tke findilags and cotM.usions of a paper done by Dr. Richa:rd Jo:lly, former
resource persolls t'rom various fields of the sociat scie_ces. Panel disc_._ssantsincluded Dr. S3_'lwa" Guerrero_ Dean of the Instittlte of Socia:l Work and Co nmurfit:y Devel.op_ me._at.(ISWCD) and Dr: Florian Alburo of tlle School of Economics, both of the U_]iversity of tlae Philippines. The UNICEF Resident Representative , Dr. Pratima Kale introduced the guest speak. er while the welcome remarks were made by Dr. Filologo Pante, Jr., President of the PIDS,
PIDS DEVELOPMENT RESEAR_EWS I II
14
_ _
MARCH-APRIL 1986 IIII
PIDSPUBLICATIONS AVAILABLE PIDSWORKINGPAPERS
1. W.P__8301
Studies Products in
2. W.P._-8302
4, S.P.:#8204
on the Wood-Based Furniture, Leather Jnd Footwear Manufacturing-Industries
the
Philippines.
Niceto
Poblador,
Changing Comparative Advantage in Rice Production, Laurian J. Unnevehr nioM_Balisacan,
4. W.P.#-8304
The Impact
5. W.P.#8305
of
Government
Policies
Philippine and Arse-
Economic in
the
and'
9. S.P._'_8304
Price Power
Agricultural
1955-1980.
Incentives Livestock
and
Manuel
Comparative
Industry,
Liborio
$_ J. de
An Analysis of the Economic Policies Affecting The Philippine Coconut industry, Ramon Clarete and J. Roumasset,
9. W.P.:h_8309
Economic
Incentives
and
in the Philippine Baiisacan.
Comparative
Cotton
Industr.y.
Arsenio
16. W.P._8407 17. W.P.#8408 18. W.P._8409 19. W.P,_8501 20. W.P._8502
21. W.P. _8601
on
Trade pines,
Liberalization 1960L84o
in
Agro-
R_foreste=
the
Experience Florian
the
and
1. S.P._8201
An
Analysis
pines. 2. S,P.##8202
3. $.P. #8203
of
Cristina C,
Philip-
PAPERS Fertilizer
Policies
David and Arsanio
(Printed al¢o in J.P.D. 1981) Credit and Price Policies in Philippine Cristina C. David. Government Policies and Farm the Philippines. Cristina C. David.
III
in
Study
h_direct
Rosario
the
Balance of Payments Crises in the and the Philippines, John H. Power.
of
Philippine
Real
Property
Taxation.
Public Enterprise Definitional and
in the Philippines in Taxonomical Exercise.
1982: A Rosario
Estimating
14. S.P.-;_/8404
Shadow Wage Rate and the Social Rate of Discount for the I_hilippines, Erlin¢la M. Medalla. Development Finance and State Banking: A
the
Shadow
Survey of Experience.
Exchat_ge
Rate,
19. S.P._/-8502
20. S.P.#t8503 21.
S.P._/8504
22.
S.P._8505
23.
S.P._
8506
24.
S.P._/8507
25. S.P, #8508
Nontraded
Primary Prices, "=
Development Bank of the Philippines and Financial Crisis, A Descriptive Analysi_
Mario B. Lamberte. The Protection Structure,
Resource
Ratio in Empirical
A Decomposition. Analysis and Import Performance, S. Intal, Jr. Philippine Export
and
Flows
and
Philippine ManufacNote: Erlinda M. of Philippine Export 1974-1982 Ponciano
Terms
of Trade
Instability,
1965-1982. Ponciano S. Intal, Jr. Methodology for Measuring Protection and Comparative Adavantage. Erlinda M. Medalla and John H. Power. Food,
Fuel
and
Urbanization
in
Alejandro N. Herrin, Manuel F. F. Florentino. Rural Development Experience: pectives. Robert E, Evenson.
the Philippine¢ Monte$,
Rodolfo
Economic
Pet_-
Financial Liberalization and the Internal ture of the Capital Markets: .The Phil/ppine Mario B. Lamberte.
Struc. Case.
The Mario
Rural
Banking
System:
Need
for
Reform&
B. Lamberte.
26. S.P. _8509
Social Adequacy and Economic Effects Security: The Philippine Case. Mario berte.
25. S.P.-#8601
Impact of BOI Incentives on Rate of Return, Factor /?rices and Relative Factor Use: A 'Comparative Analysis of Incentives Under the Omnibus Invest
Philip-
ments
Code
of
ment Incentive Manasan.
Agriculture. 26. S.P,_tt 8602
II lUll
the
Edita A. Tan.
Protection} for Erlinda M_ Medalla.
the Capital-Labor turing: A Short Medalla.
M. Balisacan.
Mechanization
G.
G. Manasan,
Geoffrey
Shepherd.
PID$ STAFF
,A
S_tting,
13. S.P.-#-8403
Philippines
in
Alburo
12. S.P.-;P/:-8402
Forest
of
Watershed
Deficit
Manasan. Response to 1970s Korea
Philippine
18. S.P.-_8501
tion: The PantabangenandMagat. Jose A. Galvez. Workshop Papers on "The ConseClUeneas of Small Rice Farm Mechanization in the Philippines': A Review of Welfare in the Coconut Industry. Sylvia N. Guerrero. Financing the Budget Eli M. Remolona.
{he
Management. Segura-delos
Productivity
of
in
Activity.
The the
forestry Scheme_ Ana Doris Capistrano and Sam Fujisaka. Environmental Effects of. Watershed Modifieations. Wilfredo P_ David. Cost
Monetary Aggregates and Economic Mario B. Lamberte. Effective Protection Rates and Internal
17. S_P,_8407
Pressure, Migration and Markets: for Upland DevelopmentMa.
'and
Selecting
of Na-
Angeles. The Impact of Government Policies Resources Utilization. Gerald C. Ne'lson.
Management
in
Modelling the Effects of Devaluation an Output and the Trade Balance: The Philippne Experience. Ma. Cecilia Gonzales.
Policy Issues on Commercial Cerenilla A. Cruz and
and
Criterion
16. S.P._8406
12. W.P._8403
Concepcion Cruz. Tenure, Technology
Filologo
AgfoMa-
Forest Land Management in the Context tional Land Use. Adolfo V. Revilla, Jr.
15. W.P._8406
1973-1981.
Pante, Jr, On the Use of the DRC Projects. Erlinda M. Medalla.
Derived Product,
11. W,P.#-8402
Population Implications
and Intervention
Philippines,
15. S,P._'8405
Intersectoral Capital .FloWS and Balanced industrial Development in the Philippines. nuel S. J. de Leon.
Forest Marian
the
Cayetano W. Paderanga, Jr,
,Advantage
10. W.P.#8401
14. W.P_ #8405
10; S,P._;f8305
Advantage S_ Cabanilla.
in
Taxes
Poll-
8- WIP.;/#:8308
13. W.P._8404
8. S.P. :# 8303
11. S.P,:/_L8401
Expenditures
cies in the Philippines Leon. 7. W,P,_:8307
Policy
on Philippine
Sugar. Gerald Nelson and Mercedita Agcaoili. Comparative Advantage and Government Intervention Policies in Forestry, John H. Government
Banks. Mario B. Lamberte. Exchange Rate Flexibility
7. S.P.#;/:8302
andTeresitaTumaneng. 6. W,P.#-8306
6. S.P,#8301
Adr/ano
Solis, Roy YbaSez, and Bienvenido A#agon. Economic Policies and Philippine Agriculture. Cristina C. David.
3_ W.P._;_8303
5. S.P. #8205
Shadow Prices of GoOds and Re6x_urces in the philippines An Assessment. Erlinda M. Medalla. An Analysis of the Behavior of =he Commercial
in
] l ililil
1981
(P.D.
Policy
Act
1789)
of Social B. Lam-
rand _
(B.P. 391).
in,st
Rosario
G
Financial Reforms and Balance.of4Payrnents Crisis. The Case of the Philippine_ E. Remolona and Mario Lamberte.
PIDS DEVELOPMENT RESEARCH=NEWS IIII IIII
II
III
15
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MARCH-APRIL 1986
IIIIIIIIIII
I L
II
I1111111
IIII
i
SPECIAL PUBLICATIONSAVAILABLE 1. INDUSTRIAL PROMOTION POLICIES IN THE PHILIPPINES Romeo Bautista, John Power and Associates
P125,00
13. MONOGRAPH NO. II1: ECONOMIC EVALUATION OF THE PHILIPPINE ALCOGAS AND COCODI ESEL PROG RAMS
2. SURVEY SEARCH 3, SURVEY SEARCH
Armando Armas and Dennis Joyce Cryde 14. MONOGRAPH NO. IV ASURVEYOFMATERIALS IN INTRODUCTORY ECONOMIC EDUCATION Gerardo P. Sicat'
OF PHILIPPINE I OF PHILIPPINE II
DEVELOPMENT
RE-
F" 30.00
DEVELOPEMNT
RE-
_- 30.00
4. SUMMARIES OF COMPLETED RESEARCH PROJECTS, VOL. I 5, INTEGRATION' PARTICIPATION AND EFFECTIVENESS: AN ANALYSIS OF THE OPERATIONS AND EFFECTS OF FIVE RURAL HEALTH DELlVERY MECHANISMS Ledivina Cari6o and Associates 6, ESSAYS IN DEVELOPMENT ECONOMICS IN HONOR OF HARRY T, OSHIMA
7. HOW PARTICIPATORY VELOPMENT?,
IS PARTICIPATORY
P 20.00
15. MONOGRAPH NO.V, MODELLING THE IMPACT OF SMALL FARM MECHANIZATION [a co-publication venture with the International Rice Research Insitute (IRRI)] 16, MONOGRAPHVI: PHILIPPINE POOR
P25.00
17, MONOGRAPH VII:.PUBLIC POLICY AND THE PHILIPPINE HOUSING MARKET " Edna Angeles .18. MONOGRAPH VIII: REVIEW AND APPR/_ISAL OF THE GOVERNMENT MONETARY AND FISCAL POLICY RESPONSE TO THE 1983-84 BALANCE;OF-PAYMENT CRISIS. Mario B_ Lamber_e, et, al, 19,. MONOGRAPH IX; PRODUCTIVITY GROWTH IN PHILIPPINE MANUFACTURING: RETROSPECT AND FUTURE PROSPECTS
P 55,00 (Paper_ bound) P125.00 (hardbound) DE-
Celia T. Castillo. 8. THE SPATIAL AND URBAN DIMENSIONS OF DEVELOPMENT IN THE PHILIPPINES Ernesto Pernia, Cayetano W. Paderanga,
t_86.25
Richard Hooiey 20, MONOGRAPH X: FORECASTING MONTHLY INFLATION IN THE PHILIPPINES Roberto S. Mariano
P125.00
Victorina Hermoso and Associates 9, ENERGY AND STRUCTURAL CHANGE IN THE ASIA.PACIFIC REGION (PAPERS AND PROCEEDINGS OF THE THIRTEENTH PACIFIC TRADE AND DEVELOPMENT CONFERENCE) 10, PHILIPPINE EMPLOYMENT IN THE SEVENTIES Rosa Linda P. Tidalgo and Emmanuel F. Esguerra 11. MONOGRAPH NO. I: A STUDY OF ENERGY ECONOMY INTERACTION IN THE PHILIPPINES Leander Alejo 12. MONOGRAPH NO. I1: INDUSTRIAL POLICY AND DEVELOPMENT IN THE ASEAN COUNTRIES Romeo Bautista
21, JOURNAL
OF PHILIPPINE DEVELOPMENT
22. E_CONOMIC POLICIES FOR FOREST RESOURCES MANAGEMENT (Summary of the Papers and Proceedingsof the Workshop) edited by Wilfrido
_' 15.00 * P 18,00
23, ECONOMIC RECOVERY AND LONG - RUN GROWTH: AGENDA FOR-.REFORMS VOLUME 1 (MAIN REPORT) Florian A. Alburo, et. al
_32.00
_'35.00
P 40,00
_' 35.00
"\ _ 45,00
INFLATION
(1981, 1982, 1983, 1984 and 1985 issues)
_P200.00 P_ 75.00
P 50.00
P: 40.00 P 35.00 per copy P 60.00 annual sub_ criptiot]
F" 17,00 _" 50,00
PIDS DEVELQPMENT I
RESEAF_r.,,_ r,tEWS I
16 Jl
lie
l lllinlllmnnll nnlli
MARCH-APRI III
L 1986:
!!
DEVELOPMENT RESEARCH NEWS is a bi-monthly publication of the PHILIPPINE INSTITUTE FOR DEVELOPMENT SI'UDIES (PIDS). It highlights findings and recommendations culled from PIDS-sponsored research or r_lated studies done by other institutions. PIDS seminars, publications, and ongoing and forthcoming projects which are.of interest to policy.makers, planners, administrators, and researchers are also announced. PIDS is a nonstock and nonprofit government research institution engaged ir_long-term policy.oriented researel_ This publication is part of the Institute's program to disseminate information in Order to promote the utilization of research findings. The views and opinions published here are those of the authors and do not necessarily reilect those of the Institute. Inquiries regarding any of the studies contained in this publication, or any of the PIDS papers, as well as any s_gesttions or comments on the publication, are Welcome. Please address aU related correspondence or inquiries to: RESEARCH INFORMATION DEPARTMENT (RID) PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES (PIDS) ROOM 515, NEDA SA MAKATI BUILDING 106 AMORSOLO STREET, LEGASPI VILLAGE, MAKATI, METRO MANILA Entered as Second-Class Mail at the MIA Post Office on October 13, 1983. Private firms and individuals_are charged for delivery and mailing services at an anaual rate oft'35.00 (local) or US$5.00 (foreign). Ji i
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