It is always useful to monitor the economic situation in Eastern Visayas by looking at the some indicators in agriculture, prices and employment. We will start with agriculture.

In today’s column, statistics for the first quarter of 2008 (January to March) will be compared with that of the first quarter of 2007.

Palay production was 2.1 percent higher in the first quarter of 2008 compared to the first quarter of 2007. This increase was reported to be the result of continued use of certified and hybrid seeds and the increase in irrigated areas.

It should be noted, however, that the target increase in palay production in the Eastern Visayas Regional Development Plan 2008 – 2010 is 5.0 percent. Palay production has to catch up in the next three quarters to be able to achieve this target.

Corn production fared very well with an increase of 24 percent.

The generally strong performance in the agriculture sector was further accentuated by significant increase in root crop production – 25.7 percent for camote, 6.9 percent for gabi, 104.9 percent for cassava. This is probably a response to the increasing price of rice since these are substitutes to rice.

Also in relation to food production, while cattle production increased by 34.1 percent, chicken production went down by 43.7 percent and hog production by 17.9 percent. This is probably a result of the increasing cost of feeds. Whatever be the reason, efforts should be made to bring production back to its former levels. This appears to be a situation where the private sector can respond and meet local demand.

Such declines are, however, in contrast to increases in fish catch. Municipal fishing grew by 3.2 percent while commercial fishing went up by 1.5 percent. Aquaculture had an upward trend of 5.1 percent.

Another agricultural product – abaca did not fare well. Its production declined by 8.8 percent showing that the diseases affecting abaca are still prevalent or have reduced production areas.

Coconut production went up by 2.9 percent. This is an encouraging sign, considering that a decline in production has been widely anticipated due to weather disturbances. It should be noted that 2 million coco seedlings will be distributed by the Philippine Coconut Authority Region VIII in 2008 to prop up production in the coming years.

On the whole, agriculture performed well particularly in food production.

This helped cushion the effects of inflation, which we will take up next week.