M o d e r n a n d C o m p e t i t i v e A g r i c u l t u r e | 29
Chapter 2: Modern and Competitive Agriculture The past plan period saw the agriculture sector playing an important role in the overall economic development of the region. It remains as a key driver for development despite its decreasing contribution to total output over the years. It also remains as a major export earner and supplier of raw materials for the industries. Since it generated more than 40 percent of total employment and absorbed the majority of the labor force, its development is crucial in attaining the region’s goal of poverty reduction and in facilitating a more inclusive growth.
I. ASSESSMENT From 2004-2009, the gross value added for the Agriculture, Fishery and Forestry (AFF) sector grew at an average of about 2.0 percent yearly. Notwithstanding the effects of the drought in 2006 and the start of the global financial crisis in 2007, agricultural production and productivity were observed to be generally low over the past plan period. The higher growths of 2.6 percent achieved in 2005 and 3.0 percent in 2006 were not sustained through the plan period as the sector concluded with a growth of only 0.5 percent in 2009. Consistent with the sector’s low growth was its shrinking share to GRDP. The 24 percent share of the agriculture sector to GRDP in 2009 was lower compared to its share in 2004 and the target of 26 percent. It lagged behind the industry and services sectors that accounted for 34 percent and 41 percent of the GRDP, respectively. The sector was largely dependent on agriculture and fishery subsectors comprising 99 percent of its total output. The forestry subsector shared the sector’s balance of about 1.0 percent despite an average growth of about 10 percent in the last five years. Employment in the agriculture sector, however, was in contrast with its gross value added. The sector employed about 700 thousand in 2009 comprising 43 percent of the region’s total employment with an average growth of 1.2 percent annually. The agriculture and the services sectors may have absorbed the labor surplus from the industry sector whose share slightly contracted in 2009. The agriculture sector remained one of the region’s top job generators (Figures 3.2.1 and 3.2.2). The region adopted the industry clustering approach as one its economic strategies to achieve the past plan period’s growth targets. The aim under this strategy was to strengthen the supply base of globally competitive products to serve as engines of growth. Selected products among high-value crops, wood, livestock and poultry and seaweeds were prioritized for development under this approach. However, the performance levels of some products despite being prioritized for development remained less than expected. The weak performance of the agriculture sector brought concerns to fore like food security, competitiveness and its long-term sustainability.
Davao Regional Development Plan, 2011-2016