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ECONOMIC GROWTH: AGRICULTURE

2018-2022

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The Agricultural Indicators System (AIS)


is an annual publication prepared by the Agricultural Accounts Division of the
PHILIPPINE STATISTICS AUTHORITY (PSA)

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Published by the
Philippine Statistics Authority
PSA Complex, East Avenue
Diliman, Quezon City
Philippines 1101

June 2023

ISSN-2012-0435

The Agricultural Indicators System


is available in electronic format (Excel/PDF).

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FOREWORD

The Agricultural Indicators System (AIS) is one of the statistical indicator


frameworks maintained by the Philippine Statistics Authority (PSA). It contains eight
modules which are updated and released annually. These modular reports provide
measures for assessing socio-economic changes in the agriculture sector, characterizing
the agrarian structure of the economy, and situating agriculture in the national economy.

This is the second module entitled Economic Growth: Agriculture. It provides


information on the economic performance of the country’s agriculture sector measured
through Gross Value Added in Agriculture, Forestry, and Fishing at the national and
regional levels. The reference years are 2018 to 2022.

The AIS aims to cover more agricultural development indicators to support the
information needs of our data users. We encourage the readers to give their comments
and suggestions on the improvement of the AIS, in general and in this report.

DIVINA GRACIA L. DEL PRADO, PhD


(Assistant National Statistician)
Officer-in-Charge, Deputy National Statistician
Sectoral Statistics Office

Quezon City, Philippines


16 June 2023

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TABLE OF CONTENTS

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TABLE OF CONTENTS

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TECHNICAL NOTES

1. The report highlights a five-year data series on the economic performance of the
country’s agriculture sector measured through the Gross Value Added on
Agriculture, Forestry, and Fishing (AFF) at the national and regional levels.

2. The basic data are sourced from the National Accounts of the Philippines,
Seasonally Adjusted National Accounts of the Philippines, and Gross Regional
Domestic Product compiled by the PSA.

3. Concepts and Definitions

Gross Domestic Product (GDP) - the value of all goods and services produced
domestically; the sum of gross value added of all resident institutional units
engaged in production (plus any taxes, and minus any subsidies, on products not
included in the values of their outputs). It is the aggregate of gross value added
(GVA) of all resident producer units in the country.
Value of Production at Constant Prices - refers to valuation of transactions,
wherein the influence of price changes from the base year to the current year has
been removed.
Value of Production at Current Prices - is the value based on prices during the
reference year.
Gross Regional Domestic Product (GRDP) – measures the economic
performance of a region. It covers the value of goods and services produced in
the region. It measures the relative contribution of the three major industries
sectors: AFF, Industry, and Services in the region.
Gross Value Added (GVA) – is defined as the value of output less the value of
intermediate consumption. GVA is composed of compensation, depreciation,
indirect taxes paid net of subsidies received, and the operating surplus, which is
the payment to the producer as entrepreneur.
Growth Rate of GVA in AFF by Industry – measures the performance or the
pace of growth of each industry of agriculture such as crops (palay, corn, coconut,
sugarcane, banana, and other crops), livestock and poultry, fishing and
aquaculture, forestry and logging, and support activities.

𝐺𝑟𝑜𝑤𝑡ℎ 𝑅𝑎𝑡𝑒 𝑜𝑓 𝐺𝑉𝐴 𝐺𝑉𝐴 𝑖𝑛 𝐴𝐹𝐹 𝑏𝑦 𝐼𝑛𝑑𝑢𝑠𝑡𝑟𝑦 𝑖𝑛 𝑡ℎ𝑒 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟


= ൤ − 1൨ X 100
𝑖𝑛 𝐴𝐹𝐹 𝑏𝑦 𝐼𝑛𝑑𝑢𝑠𝑡𝑟𝑦 𝐺𝑉𝐴 𝑖𝑛 𝐴𝐹𝐹 𝑏𝑦 𝐼𝑛𝑑𝑢𝑠𝑡𝑟𝑦 𝑖𝑛 𝑡ℎ𝑒 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟

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Growth Rate of Regional GVA in AFF – measures the pace of growth of the
agriculture, forestry and fishing at the regional level.

𝐺𝑟𝑜𝑤𝑡ℎ 𝑅𝑎𝑡𝑒 𝑜𝑓 𝐺𝑉𝐴 𝑖𝑛 𝐴𝐹𝐹 𝑏𝑦 𝑅𝑒𝑔𝑖𝑜𝑛 𝑖𝑛 𝑡ℎ𝑒 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑌𝑒𝑎𝑟


= ൤ − 1൨ X 100
𝑅𝑒𝑔𝑖𝑜𝑛𝑎𝑙 𝐺𝑉𝐴 𝑖𝑛 𝐴𝐹𝐹 𝐺𝑉𝐴 𝑖𝑛 𝐴𝐹𝐹 𝑏𝑦 𝑅𝑒𝑔𝑖𝑜𝑛 𝑖𝑛 𝑡ℎ𝑒 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑌𝑒𝑎𝑟

Share of GVA in AFF by Industry – shows the relative importance or contribution


of each industry in the economy’s agriculture sector.

% 𝑆ℎ𝑎𝑟𝑒 𝑜𝑓 𝐺𝑉𝐴 𝑖𝑛 𝐺𝑉𝐴 𝑖𝑛 𝐴𝐹𝐹 𝑏𝑦 𝐼𝑛𝑑𝑢𝑠𝑡𝑟𝑦


= × 100
𝐴𝐹𝐹 𝑏𝑦 𝐼𝑛𝑑𝑢𝑠𝑡𝑟𝑦 𝐺𝑉𝐴 𝑖𝑛 𝐴𝐹𝐹

Share of Regional GVA in AFF to GRDP – shows the performance or contribution


of the region’s agriculture sector to the region’s total economy.
Seasonality – seasonality (seasonal component) is a regular fluctuation with similar
patterns and magnitude that repeatedly occur within a calendar year and normally
observed for high frequency data such as monthly and quarterly series.
Seasonal Adjustment – seasonal adjustment is a statistical technique to remove
the effects of seasonal calendar influences operating on a time series.

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The performance of the country’s agriculture sector can be measured by looking at the
year-on-year growth rates of Gross Value Added (GVA) in Agriculture, Forestry, and
Fishing (AFF). This refers to the difference between the gross output and intermediate
consumption used in the production process.

Share of Agriculture, Forestry, and Fishing to Gross Domestic Product

In 2022, AFF remained as the least Figure 1. GDP by Industry, Philippines, 2022
contributor among the three major (Share to GDP, at Constant 2018 Prices)
economic sectors. At constant 2018
prices, GVA in AFF amounting to 8.9
PhP 1.78 trillion, accounted for a lower
share of 8.9 percent compared with its
previous year’s share of 9.6 percent in the 29.7
GDP. 61.4

At current prices, AFF was valued at


PhP 2.10 trillion. It also recorded a lower
share of 9.5 percent from its 10.1 percent (in percent)
share to the GDP in 2021. (Tables 1a, 1b, Services Industry AFF
1c and 1d, and Figure 1)
Source: National Accounts of the Philippines, PSA

Gross Value Added in Agriculture, Forestry, and Fishing by Industry


Figure 2. GVA in Agriculture, Forestry, and Fishing,
Philippines, Growth Rates, 2018-2022

6.9 7.6
6.2
in percent

1.2
0.5

-2.3 -0.2 -0.3

2018-2019 2019-2020 2020-2021 2021-2022

At Constant 2018 Prices At Current Prices

Source: National Accounts of the Philippines, PSA

The GVA in AFF at constant 2018 prices rebounded from the -0.3 percent decline in 2021
and posted a 0.5 percent growth in 2022. (Table 2b and Figure 2)
Collectively, the agricultural crop industry registered a -1.1 percent decrease in 2022, a
turnaround from the 2.2 percent growth in 2021. Among the agricultural crops, the following
registered negative growth in 2022, a reversal from their positive performances in the
previous year:
a. palay, -1.0 percent;
b. sugarcane including muscovado sugar-making in the farm, -17.5 percent;
c. banana, -0.6 percent;
d. mango, -4.2 percent;
e. coffee, -1.6 percent;
f. rubber, -2.7 percent;
g. tobacco, -0.7 percent; and
h. other agricultural crops n.e.c., -0.7 percent.
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Figure 3. Growth Rates of GVA in AFF by Industry,


Agricultural Crops, Philippines, 2022
(At Constant 2018 Prices) On the other hand, increments were
Agricultural crops -1.1
registered for the following agricultural crop
Palay -1.0 industries:
Corn 0.6
Coconut including copra 1.5
a. corn, 0.6 percent;
Sugarcane -17.5
Banana -0.6 b. coconut including copra, 1.5 percent;
Mango -4.2 c. pineapple, 2.3 percent;
Pineapple 2.3
Coffee -1.6 d. cassava, 0.01 percent;
Cassava 0.01 e. cacao, 4.2 percent; and
Rubber -2.7
Cacao 4.2 f. abaca, 6.9 percent.
Abaca 6.9 (Table 2b and Figure 3)
Tobacco -0.7
Other agricultural crops, n.e.c. -0.7
(e.g., onion, eggplant, calamansi)
(in percent)

Source: National Accounts of the Philippines, PSA

Moreover, livestock, and poultry and egg Figure 4. GVA in AFF by Industry, Philippines, 2020-2022
production industries in 2022 made a (Growth Rates, At Constant 2018 Prices)
turnaround from their declines in the
previous years and posted growths of 6.7
4.2 4.5
6.6
4.1
2.3
(in percent)

2.3 percent, and 6.7 percent, 0.9 0.2

respectively. Likewise, positive growths -0.3 -0.1

-3.6
were also observed in the industries of
other animal production with 4.2 percent,
-17.3
and support activities to AFF with
4.1 percent. Livestock Poultry and Other Animal Forestry and Fishing and
Egg Production Logging Aquaculture
Support
Activities to
Production AFF
In contrast, the industry of fishing and 2020-2021 2021-2022
aquaculture declined in 2022 at
-3.6 percent from the 0.2 percent in 2021. Source: National Accounts of the Philippines, PSA

(Table 2b and Figure 4)

At current prices, uptrend in the GVA in AFF was observed with its 7.6 percent increment
in 2022 from the 6.9 percent recorded in the previous year.

In 2022, the agricultural crop industry was up by 2.6 percent. Contributing to the increase
were palay and corn which grew by 3.3 percent and 21.6 percent, respectively. Other
crops which showed consecutive annual growths were coconut including copra, mango,
and coffee. Further, the following crop industries recorded reversals from their slump in
2021 and posted growth in 2022:
a. sugarcane including muscovado sugar-making in the farm, 43.5 percent;
b. pineapple, 14.2 percent;
c. cassava, 3.2 percent;
d. cacao, 7.8 percent;
e. abaca, 12.1 percent; and
f. other agricultural crops, n.e.c. (e.g., onion, eggplant, calamansi), 7.3 percent.

On the other hand, reductions in the growth in GVA were reported for banana at
-22.3 percent, rubber at -4.6 percent, and tobacco at -7.5 percent.

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Sustained year-on-year growths were reported in the following industries:


a. livestock at 11.9 percent;
b. poultry and egg production, 17.2 percent;
c. other animal production, 13.6 percent;
d. fishing and aquaculture, 8.6 percent; and
e. support activities to AFF, 12.6 percent.
(Table 2e)

Figure 5. GVA in AFF by Industry, Philippines, 2022


In terms of the share of the sub-industries (Share to AFF, at Constant 2018 Prices)
to AFF, agricultural crops comprised the
Other
biggest proportion with 51.8 percent at animal Forestry and
constant 2018 prices, and 46.4 percent at production logging
4.0 0.2
current prices. Among the crops, palay Livestock
maintained the biggest share followed by 10.3

banana, corn, other agricultural crops, Poultry and


egg
n.e.c. (e.g., onion, eggplant, calamansi), production
and coconut including copra. At constant 10.5 Agricultural
crops
2018 prices, fishing and aquaculture and 51.8
support activities to AFF recorded higher Support
activities to
shares corresponding to 12.1 percent and AFF
11.1 percent. While at current prices, higher 11.1

contributions to AFF were recorded in the


Fishing and
industries of livestock at 14.2 percent, and aquaculture
fishing and aquaculture at 12.8 percent. 12.1
(in percent)
(Tables 2c and 2f, and Figure 5)
Source: National Accounts of the Philippines, PSA

Seasonally Adjusted Gross Value Added in Agriculture, Forestry, and Fishing


by Industry

Seasonal adjustment is a statistical technique to remove the effects of seasonal


calendar influences operating on a time series. Its purpose is to provide a better
understanding of the underlying trends in the series. It removes the seasonal
component in the series revealing the true behavior or movement allowing the
comparisons between periods. It allows a timely assessment of the current economic
conditions and identification of turning points in key macroeconomic variables, such as
quarterly Gross Domestic Product (GDP).

The quarter-on-quarter growth rates of the Figure 6. Seasonally Adjusted GVA in AFF, Philippines, 2022
Growth Rates, at Constant 2018 Prices
seasonally adjusted GVA in AFF showed Quarter-on-Quarter
fluctuating trend in 2022. During the first
quarter, the AFF industry decreased by 1.4
1.2
-1.3 percent. This contraction was
in percent

recovered in the second quarter with a


growth of 1.2 percent. In the third quarter,
GVA in AFF inched up to 1.4 percent. -1.3
-1.6
However, a drop of -1.6 percent was
Q4*-Q1 Q1-Q2 Q2-Q3 Q3-Q4
recorded in the last quarter of the year
which was valued at PhP 446.15 billion. Note: * Year 2021
Source: Seasonally Adjusted National Accounts of the Philippines, PSA
(Tables 3a and 3b, and Figure 6)
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Figure 7. Seasonally Adjusted GVA in AFF by Industry, Philippines, 2022


Growth Rates, at Constant 2018 Prices
Quarter-on-Quarter

23.1
in percent

9.5
1.2 2.3 2.0 0.7 1.1 3.0 0.8 3.8 2.5 1.4
0.1 0.6 0.2 0.05 1.2 0.9

-2.7 -2.5 -0.3 -1.8 -2.1 -0.5 -0.4


-4.7
-15.5
-20.8
Agricultural Crops Livestock Poultry and Egg Other Animal Forestry and Fishing and Support Activities
Production Production Logging Aquaculture to AFF

Q4*-Q1 Q1-Q2 Q2-Q3 Q3-Q4

Note: * Year 2021


Source: Seasonally Adjusted National Accounts of the Philippines, PSA

Moreover, the agricultural crops posted a drop of -2.7 percent in the first quarter and was
followed by two succeeding quarter growth. However, the minimal growth recorded were
reversed in the fourth quarter with the contraction of -2.5 percent. Of the agricultural crops,
palay industry illustrated the same trend wherein negative growths of -2.1 percent and
-2.8 percent were recorded in the first and last quarter, respectively. Corn demonstrated
erratic movement as it exhibited a decline of -10.4 percent in the first quarter, recovery of
3.9 percent in the second quarter, drop of -7.3 percent in the third quarter, and an
improvement in the fourth quarter at 6.5 percent.
On the same year, the livestock industry had minimal growth from the first to third quarters.
The positive growth was reversed on the fourth quarter, recording a negative growth of
-0.3 percent.

Poultry and egg production industry exhibited quarter-on-quarter positive growth except
on the last quarter wherein it posted a decline of -1.8 percent. A similar trend was also
observed in the industry of other animal production wherein a decline was registered in
the last quarter after the continuous growth from the first to third quarter of 2022.
The fishing and aquaculture industry also showed negative trend in all quarters except in
the second quarter where it grew by 2.5 percent.
Meanwhile, the support activities to AFF was the only industry that presented continuous
improvements in all the quarters. (Table 3b and Figure 7)

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Regional Gross Value Added in Agriculture, Forestry, and Fishing

In 2022, the GVA of AFF at constant 2018 Figure 8. GVA in AFF by Region, Philippines, 2022
(Growth Rates, at Constant 2018 Prices)
prices amounted to PhP 1.78 trillion.
It improved by 0.5 percent from the NCR 3.5
contraction of -0.3 percent in the previous CAR -2.1
Ilocos Region 1.7
year. Cagayan Valley 0.5
Central Luzon 2.1
CALABARZON 1.7
All regions of Luzon posted annual MIMAROPA Region -2.4
increments in AFF except CAR and Bicol Region 2.5
MIMAROPA Region. While in Visayas, all Western Visayas -2.0
Central Visayas -4.7
regions recorded downturns from the Eastern Visayas -6.2
positive growths in their AFF in 2021. Zamboanga Peninsula 0.5
Northern Mindanao 0.5
In contrast, all the regions in Mindanao Davao Region 3.0
posted year-on-year increases in AFF SOCCSKSARGEN 1.8
except in Caraga which had a decline of Caraga -2.8
BARMM 3.5
-2.8 percent in 2022. (Tables 4a and 4b,
(in percent)
and Figure 8)
Source: National Accounts of the Philippines, PSA

At current prices, the AFF industry in 2022 grew by 7.6 percent more than the 6.9 percent
exhibited in the previous year. The growth in AFF is traced from the positive
performances of all regions. Among the regions, the top five regions with fast growing
AFF industry were the following:
a. BARMM, 17.5 percent;
b. Zamboanga Peninsula, 11.8 percent;
c. NCR, 11.4 percent;
d. Western Visayas, 9.4 percent; and
e. Central Luzon, 9.3 percent.

Conversely, the region with the least growth registered in 2022 was CAR with
0.1 percent. (Tables 4d and 4e)

With reference to the share of the island groups to the national level AFF, Luzon
continued to contribute the biggest share of 44.6 percent at constant 2018 prices, and
43.1 percent at current prices. At the regional level, Central Luzon continued to comprise
the largest share of 13.7 percent at constant 2018 prices and 13.5 percent at current
prices. Likewise, higher contributions at both constant 2018 prices and at current prices
were noted in CALABARZON, Western Visayas, Northern Mindanao, and
Davao Region. The regions with minimal contribution in AFF both at constant 2018
prices and current prices were still registered in NCR and CAR. (Tables 4c and 4f)

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Share of Regional Gross Value Added in Agriculture, Forestry, and Fishing to Gross
Regional Domestic Product

Figure 9. Share of Regional GVA in AFF to GRDP, Philippines, 2022

37.0
35.4

27.9 26.7
26.5 26.4
22.6
(in percent)

19.9
18.0 19.2
17.0 17.5 17.9
17.5
16.7 16.5 16.6 15.6 15.7 13.6 15.3 12.6
12.0
11.2 12.2 11.6
8.3 8.1 7.1
5.4 6.5
4.5
0.01 0.01

At Constant 2018 Prices At Current Prices

Source: Regional Accounts of the Philippines, PSA

On the contribution of the region’s GVA in AFF to their respective GRDP, BARMM had
the biggest contribution of AFF at 35.4 percent at constant 2018 prices and 37.0 percent
at current prices. In addition, regions with higher shares of AFF in GRDP were recorded
in Cagayan Valley, Northern Mindanao, and SOCCSKSARGEN with proportions ranging
from 19.9 percent to 27.9 percent both at constant 2018 prices and current prices.
On the other hand, regions with least shares of AFF to GRDP were still posted in NCR,
CAR, CALABARZON and Central Visayas. (Tables 5a and 5b, and Figure 9)

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STATISTICAL TABLES

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Table 1a. Gross Domestic Product (GDP) by Industry, Philippines, 2018-2022


(At Constant 2018 Prices, in million PhP)

Industry 2018 2019 2020 2021 2022

Agriculture, forestry, and fishing 1,762,616 1,783,855 1,780,391 1,775,210 1,783,499

Industry 5,582,525 5,887,869 5,115,316 5,551,622 5,914,703

Services 10,920,048 11,711,027 10,642,137 11,213,252 12,245,428

Gross Domestic Product 18,265,190 19,382,751 17,537,843 18,540,084 19,943,630

Source of basic data: National Accounts of the Philippines, PSA

Table 1b. Gross Domestic Product (GDP) by Industry, Philippines, 2018-2022


(Percent Share to GDP, at Constant 2018 Prices)

Industry 2018 2019 2020 2021 2022

Agriculture, forestry, and fishing 9.7 9.2 10.2 9.6 8.9

Industry 30.6 30.4 29.2 29.9 29.7

Services 59.8 60.4 60.7 60.5 61.4

Gross Domestic Product 100.0 100.0 100.0 100.0 100.0

Note: Details may not add up to 100 percent due to rounding.


Source of basic data: National Accounts of the Philippines, PSA

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Table 1c. Gross Domestic Product (GDP) by Industry, Philippines, 2018-2022


(At Current Prices, in million PhP)

Industry 2018 2019 2020 2021 2022

Agriculture, forestry, and fishing 1,762,616 1,721,539 1,828,424 1,954,487 2,103,198

Industry 5,582,525 5,919,281 5,098,232 5,607,689 6,436,937

Services 10,920,048 11,877,043 11,024,918 11,848,438 13,484,380

Gross Domestic Product 18,265,190 19,517,863 17,951,574 19,410,614 22,024,515

Source of basic data: National Accounts of the Philippines, PSA

Table 1d. Gross Domestic Product (GDP) by Industry, Philippines, 2018-2022


(Percent Share to GDP, at Current Prices)

Industry 2018 2019 2020 2021 2022

Agriculture, forestry, and fishing 9.7 8.8 10.2 10.1 9.5

Industry 30.6 30.3 28.4 28.9 29.2

Services 59.8 60.9 61.4 61.0 61.2

Gross Domestic Product 100.0 100.0 100.0 100.0 100.0

Note: Details may not add up to 100 percent due to rounding.


Source of basic data: National Accounts of the Philippines, PSA

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MODULES OF THE AGRICULTURAL INDICATORS SYSTEM

1. Government Support in Agriculture Sector

2. Economic Growth: Agriculture

3. Output and Productivity

4. Agricultural Resources

5. Agricultural Exports and Imports

6. Food Availability and Sufficiency

7. Prices and Marketing of Agricultural Commodities

8. Employment and Wages in the Agriculture Sector

PHILIPPINE STATISTICS AUTHORITY


AUTAAUTHORITY
ECONOMIC GROWTH: AGRICULTURE

AGRICULTURAL INDICATORS SYSTEM


ECONOMIC GROWTH: AGRICULTURE
PHILIPPINE STATISTICS AUTHORITY

CLAIRE DENNIS S. MAPA, PhD


Undersecretary
National Statistician and Civil Registrar General

SECTORAL STATISTICS OFFICE

DIVINA GRACIA L. DEL PRADO, PhD


(Assistant National Statistician)
Officer-in-Charge, Deputy National Statistician

MACROECONOMIC ACCOUNTS SERVICE

VIVIAN R. ILARINA
Assistant National Statistician

AGRICULTURAL ACCOUNTS DIVISION

Manuela S. Nalugon
(Supervising Statistical Specialist)
Officer-in-Charge

Maria Clarinda E. De Guzman


Senior Statistical Specialist

Donita Rose S. Baluso


Statistical Specialist II

Ronnie R. Hermoso
Statistical Specialist I

Niña P. Paderan
Statistical Analyst

PHILIPPINE STATISTICS AUTHORITY


AUTAAUTHORITY
ECONOMIC GROWTH: AGRICULTURE

PHILIPPINE STATISTICS AUTHORITY


AUTAAUTHORITY

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