Farmgate prices drop in 2015 despite lower supply
Farmgate prices fell by an average of 5.74 percent in the fourth quarter of 2015, with all sectors reporting lower prices, the Bureau of Agricultural Statistics said. For the full year 2015, farmgate prices dropped by an average of 4.78 percent.
The BAS said the gross value of farm production in the fourth quarter of 2015, dropped by 6.64 percent to P448 billion from the fourth quarter of 2014.
Gross value of palay output fell by 17.9 percent because of decreases in both production and price. The value of corn production dropped by 14.6 percent also because of lower prices and output.
Lower farmgate prices also pulled down the gross output values of mango, garlic, coconut, banana, sugarcane and rubber.
Tomato and cabbage production bucked the trend, reporting growths of 64.4 and 50.4 percent respectively in terms of gross value which the BAS attributed to higher prices.
Higher production, meanwhile, pushed the gross output value of tobacco and pineapple by 51.4 percent and 1.7 percent respectively. The production of sweet potato also showed higher gross value of production because of higher prices.
Coffee, abaca, peanut and mongo also reported higher gross output values because of increases in both production and price.
Eggplant and onion reported a turnaround from last year’s contraction, increasing by 9.01 percent and 5.21 percent respectively in terms of gross value of output that was also attributed to higher prices. Calamansi grew by 3.38 percent in gross value of output because of higher production.
Livestock production amounted to P72.1 billion during the quarter, a 1.54-percent growth in terms of gross value at current prices with expansion in both the production and prices of carabao and dairy. The gross value of production for cattle and hog went up because of higher production but the value of goat production dropped because of lower prices.
The poultry subsector reported a growth in gross output value but the fisheries subsector reported a drop in gross output value because of lower production and prices. (By: Eileen A. Mencias)