Palay production drops by 3% in 4th quarter of 2016

Pamela Jay F. Orias

PALAY production in last year’s fourth quarter went down by 3.42 percent as almost all provinces in Northern Mindanao posted decreases due to the movement of planting schedule.

According to the National Economic Development Authority’s (Neda) regional economic situationer for the fourth quarter of 2016, Misamis Oriental and Camiguin provinces led the decreases at 17.27 and 15.18 percent respectively.

Bukidnon only posted a six percent decrease, Misamis Occidental with three percent change, and Lanao del Norte with 4.57 percent decrease.

Neda-Northern Mindanao said that the planting schedule is changing due to inadequate and delayed release of irrigation water, which primarily contributed to a reduced yield in most of the provinces.

Also, the average production performance of palay in the entire year grew by 0.26 percent from 4.43 metric tons per hectare in 2015 to 4.44 metric tons per hectare in 2016.

The net effect of the 3.42 percent decrease in production volume of palay and the 0.7 percent increase in its price pushed down its value to only P4.177 billion during 2016’s fourth quarter, however, despite the 1.91 percent reduction in its volume, the 3.1 percent growth in the whole year average farm gate price of palay enabled the value of commodity to grow by 1.12 percent reaching P14.254 billion.

Rice supply was sufficient during this quarter, as the region posted a 98.96 percent and 77.5 percent sufficiency levels in the fourth quarter and whole year of 2016, respectively.

Compared to 2015 however, these levels were 5.6 and 3.1 percentage lower than the sufficiency levels in the fourth quarter and entire year of 2015.

As of January 1, 2017, a notable 16.1 percent decrease was noted in the region’s rice inventory, reaching only 1.5 million bags owing to the decreased stocks at the National Food Authority (NFA) in all provinces and household rice in Bukidnon and Lanao del Norte.

This figure is estimated to sustain the region for only 54 days with its daily rice consumption requirement of around 28,160 bags.

The NFA and commercial stocks each shared 34 percent of the total stocks while household stocks contributed to 32 percent.

Corn production, in this quarter, reached 453,784 metric tons, 13 percent higher than its level in the same period of 2015.

The increase, according to Neda, is attributed to the substantial rise of the yellow corn production both in Bukidnon and Lanao del Norte provinces.

For the whole 2016, the corn production of 1,223,116 metric tons was 0.56 percent higher than that of 2015, while yellow corn, which constituted 6.12 percent of the total annual production, decreased by 6.08 percent.

The value of yellow corn increased by 9.11 percent in this period while the value of white corn dropped by 13.56 percent due to the 18 percent decline in its unit price.

On an annual basis however, an opposite trend is seen with the value of yellow corn down by 7.93 percent or P8.730 billion while white corn increased by 7.09 percent or P5.509 billion.

The corn sufficiency for food and other uses reached 116.51 percent and 214.74 percent in the fourth quarter and entire year of 2016, respectively.

The province of Bukidnon, which shares 65.6 percent of the total annual regional corn production in 2016, had the highest share of total usage of corn at 65.1 percent, while Lanao del Norte, which registered as the second highest corn producer of the region, had only 13,2 percent share of corn usage.

Both provinces registered surpluses of 431,334 and 179,328 kilogram for the whole year of 2016.