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Volume IV, No. 2

MARCH-APRIL 1986

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ISSN 0115-9097 II

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ISSUESIN PHILIPPINEFOOD AND NUTRITIONPOLICY Introduction The nutritional status of a population is one of the most telling indicators of well.being. In the. wake of a protracted economic crisis, it is likely that the nutritional status of vulnerable groups has been adversely affected. Alleviating poverty and malnutrition is an important issue which needs to be addressed by the new administration. As Mangahas (1984) I ,points out: The interrelationship between poverty and malnutrition no longer needs to be belabored. Due to the "seamless web" which enmeshes the tW째 , it is hardly possible for an alleviation or a worsening of one problem to happen without an attendan.t alleviation or worsening of the other. It is in fact quite pragmatic, though imprecise, to define the incidence of poverty in terms of access to some nutritional norm. h/herever poverty lines are calculated, the food budget is always the ma]or portion, except in affluent countries, In view of the link between poverty and malnutrition and the government's limited budgetary resources, the policymaker's problem is one of "allocating or

Editor's Note: The introductory note of the 1984-87 Food and Nutrition Plan states that ".... malnutrition is more than ]ust a health problem. It is a social, political and economic problem as well. "Moreover, the Plan recognize s that adopted strategies in the past were severely lacking and inadequate. More than this, the programs did not address the root cause of the problems in nutritio_ As espoused by current nutrition programs of the National Nutrition Council (NNC), the overriding thrust is to provide short-term or immediate intervention measures to treat identified malnutn'tion cases and, necessarily, (n order to sustain the initial progress brought about by these measures, to initiate improvements in food supply, food prices and faro@ incomes. These are probably the most important factots which affect food consumption. Other than the purely economic side of the nutrition problem, there is_also a need to generate genuine political will and advocacy of the ob]ectives of the nutrition programs to push effective implementation in the community or barangay levels. We need to work at translating avowed commitments of local officials to higher budget allocation and personnel contributions to nutritionrelated programs. In this issue of the Development Research News (DRN), our guest writer, Dr. Agnes Quisumbing, delves into the ticklish issues of food and nutrition policies in the Philippines. Dr. Quisumbing is currently Assistant Professor at the College of Development Economics and Management (CDEM) of the University of the Philippines at Los Ba_os, Zaguna. reaUocating resources to most effectively combat these (nutritional) deficiencies in a manner consistent with the country's overall development strategy" (Call and Levinson, 1971: 165). This review adopts a policy.oriented approach to the Philippine nutrition situation. It begins with a brief discussion of the Philippine Food and Nutrition P_o-

gram (FNP) and issues related to its iraplementation. Then, a review of the nutri_ tional status data is presented as a means of evaluating the effectivity of the food and nutrition plan. Likewise, policies outside the purview of the FNP which also have nutritional effects arc pointed out. Finally_ some conclusions and policy recommendations are presented.

CONTENTS:

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ISSUES IN PHILIPPINE FOOD AND NUTRITION POLICY......................................... UPDATE: NEW PUBLICATIONS ................................................................ COMPLETED PROJECTS .............................................................. SEMINARS ................................................................ PIDS PUBLICATIONS AVAILABLE ........................................................ SPECIAL PUBLICATIONS .............................................................

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10 11 13 14 15


PIDS DEVELOPMENT III 1. The Philippine Program

RESEARCI-I._EWS

II Food

_ and Nutrition

2 II

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Although nutrition is a multi-sectoral concern, it is often perceived to be limited to the interests of-a narrowly defined 'nutrition sector'. This limited perspective characterized nutrition policy in the years before the establislnnent of the Philippine Nutrition Program (PNP) in 1974. It was only after World War II that central nutrition planning was institutionalized, and a number of nutrition-related agencies es: tablished, among them the Philippine Institute of Nutrition, the forerunner of the Food and Nutrition Research Institute. In

Ministry of Education, Culture and Sports (MECS), Ministry of Local Governments (MLG), the National Science and Technology Authority (NSTA) through the Food and Nutrition Research Institute (FNRI), Nutrition Foundation of the Philippines (NFP), Nutrition Center of the Philippines (NCP) and the Philippine Medical Association (PMA). The daily operations of the NNC are handled by a secretariat headed by an executive director. Technical committees are also created on an ad hoc basis depending upon issues raised by the Management Committee. Local level nutrition councils at the provincial, municipal,and barangay

Philippine National Red Cross (PNRC), and MECS. Varying volumes of cc_ nated foreign food commodities suct/ as corn-soya milk, non-fat dry lurk, soy fortified flour, bulgur wheat, milk, flour and rice were availed of by the targetted groups. The program reached 1.56 million pre-schoolers and 4.95 million schoolchildren in 1984, about 99.3% of the target. However, the encouraging reports regarding program outreach must be taken with caution. First, there were difficulties. in reaching severely and moderately underweight pre-schoolers as well as pregnant and lactating women. Second, this figure does not reflect possible under- or

the 1960s, different departments of the government began their own nutrition projects, later coordinated by the National Coordinating Council on Food • and Nutrition (NCCFN). In 197i, an attempt was made to integrate nutrition and food production through the efforts of the National Food and Agriculture Council which implemented a four-year Philippine Food and Nutrition Program (PFNP). While this emphasized the team approach and multiagency participation to program planning and implementation, its coverage was circumscribed by its limited resources. As Florentino et al. (1978) conclude, the pre-PNP years were a period of organization.building, piloting of essentiallyhealth and emergency response-oriented nutrition interventions, with some attempts at unified nutrition programming and a little input into policy work such as the food hnportation work of the Food Commission. However, these activities lacked a clearly defined policy on nutrition originating from the highest leadership, and thus suffered from lack of coordination and coverage. The govermnent •concretized its cornmitraent to nutrition with the creation of the National Nutrition Council (NNC) in 1974 by virtue of P.D. 491. The Council was mandated to coordinate all nutritionrelated activities of both the government and private sectors. It took over the task of formulating the integrated PFNP and

levels are coordinated by the Ministry of Local Governments. The program's ultimate objective is to improve the nutritional status of the population, especially for the following vulnerable groups: (1) infants and pre-schoolers (0-6 years) (2) school children(7-14years) (3) pregnant women and lactating mothers (4) heavy manual laborers, and (5) those afflicted with nutrient de. ficiency diseases such as Vitamin A, iron and iodine deficiency (NNC, 1977). The program also adopted four main intervention schemes undertaken by different lead agencies. These were in the areas of food production, food assistance, health protection, and nutrition infomtation and education, Food--production is undertaken with the Ministry of Agriculture and Food as lead agency. This refers to small scale food production activities aimed at pro* aueing nutritious foods in the backyard, schoolyard, and community gardens, However, while the primary targets are families with malnourished pre-schoolers, in many instances, such families do not have the space to undertake food production, Food assistance is a temporary and preventive or rehabilitative supplemental•

coordinating .its implementation. The Council is composed of the ministers or the representatives of the Ministry of Agriculture and Food (MAF) and the Minlstry of Health (MOIl), who serve as Chairman and Vice-chairman, respective-

feeding to targetted vulnerable groups with MSSD as lead agency. The program intends to restore the weight of underweight pre-schoolers and school children to normal levels and to assist pregnant and lactating women to meet their energy

other health-related activities. About 1a million pre-schoolers (79% of target) and_ 709,000 pregnant women (50% of target)" availed of immunization services in 1984. This is still a very low proportion of the target •population. According to the NNC,

ly, and representatives of the Ministry of _.Soci_ilServices and Development (MSSD),

requirements. Food assistance is also carried out by the MOH, MAF, the

difficulty _s encountered in the monitoring of activities, especially in inaccessible

over-targetting. For example, •targets for school feeding included all pupils irrespective of nutritional status. On the other hand, pre-school feeding programs targeted only 60% to 77% of the possible targets. There were, therefore, leakages in the former and undertargetting in the latter. Food aid is another ticklish issue. .While self-reliance is a desired goal in the provision of food assistance, the program itself is highly dependent on foreign d0-i I hated food like the PL 480 Title II food aid program and the World Food Program. The Philippine government does encourage the use of indigenous food through the Applied Nutrition Program, but this is only supplementary to the donated food. The government also incurs costs in the inland transportation of the donated food. It has been questioned whether it would have been better if the government simply use the allocation in. tended for transport costs •in relation to the availment of donated food, to the purchase instead of indigenous commodi. ties. However, this move would result in only 11% of the targets being served. As of the moment, therefore, reliance on donated food remains a practical option (NNC, 1986). Health protection, with MOH as the lead agency, consists of activities designed to promote health or to restore the individual to good health. The program inchides growth monitoring of 0 to 6Tearolds, promotionfoods, of immunization, bteastfeeding and other weaning and

.


PIDS DEVELOPMENT Bill

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eaS. Furthermore, lack of adequate alth personnel and low degree of community participation were the most important reasons for the inability to serve more clients (NNC, 1985b). Finally, nutrition information and education is carried on by many agencies, each with specific sectoral targets such as parents, farmers, farm families, and others. Nutrition information and education within the formal school system is undertaken by the MECS. An evaluation of the accomplishments of the program can be made by looking at changes in the nutritional status 6n the population, which will be discussed in the next section. 2. Trends in Nutritional Status NORMA UNDERWEIGHT

One of the major difffculties involved in an analysis of nutrition trends is the absence of comparable nationwide data over a reasonable time period. Although the Food and Nutrition Research Institute (FNRI) has conducted nutrition surveys ,from 1957 to 1966, these cover-

,ed only one region

per

year;

Luzon

and

teae,_o: J 51, 4

so

20

1o

lo 20 30 ,o Pe,CENrAOE OFTOTAL

so 6o 70 60

[] []

i,d17 Moe,r,,,_y

_

Sev*r, ly

..... r: _..,(.... ,...c( .... BY

TRENDS IN DISTRIBUTION OF PRE-SCHOOL WEIGHT-FOR-AGE STANDARD, PHILIPPINES,

CHILDREN 1978 to

1982

Visayas data are also available for the period 1975 to 1977. However, only the FNRI nationwide nutrition surveys permit a cdmpafison of national data. The more frequent surveys conducted by the Ministry of Health and the National Nutrition Council for monitoring pur* poses have been short.lived and are not strictly comparable due to differences in sampling and methodology. They are also relatively recent and do not permit a trend analysis, FNRI Food ComumPtion Surveys. While the FNRI is currently doing field work for its 1986 survey, the most recent data available for analysis are from 1982. This data set is generally regarded as the most representative of nutritional conditions. The 1982 survey covered 2,880 households in all regions except Region IX and XII of Mindanao, with sfinilar sampling procedures as the 1978 survey, These two regions were excluded for security reasons, (i.e., the uncertain peace and order situation). While this is aeons. traint that data users have to deal with, one must recognize the possible bias in terms of the understatement of malnutfition since these regions have been identiffed by other indicators as high poverty incident regions. It may not be accurate _to compare these regions to others at I I II

similar per capita income levels because of the effects of the peace and order situation on food production, The 1982 surveyrevealed that the average one day per capita nutrient intake was 1808 kcal, only 89% of the recommended daily allowance of 2032 kcal per person per day (FNRL 1984). Protein intake was, on the average, 50.6 grams per day, which was 99.6% adequate (Table 1). However, the percentage of households having energy intakes less than 80% of the required daily allowance (RDA) was about 34%, and those with protein intakes less than 70% made up 14% of the sample (Table 2). in spite of these nutrient intake inadequacies, the data reveal some improvement between 1978 and 1982, although the average level of food energy intake was below the NEDA target of 1996 kcal in 1982, a targetted increase of 11% (Table 3). The actual percentage increase was only 0.2%. This makes one question the feasibility of realizing some of the targets mentioned in development plans. In terms of imH illlll illl

provement measured by the the reduction of percentage of households below 80% of the food energy RDA, however, the rural sector's improvement has been lower compared to the urban sector's. The plight of the rural sector is also indicated by its higher absolute percentage of house. holds below the 80% level, and the magni. tude of the absolute numbers who cannot fulfill their energy needs. Anthropometrie Surveys. Data sources for anthropometric measurements of pre-school children on the national level include the two FNRI nutrition surveys, the index Monitoring Project (IMP) of the National Nutrition Council which ran from 1979 to 1981, the on-going National Nutrition Surveillance System (NNSS) and the Operation Timbang (OPT) of the Ministry of Health. However, the OPT results have been found to be statistically unreliable because of overestimation in the number of malnourish. ed children. This was because local staff had the impression that the OPT results were to be used to determine the allocaII ilil InI


PIDS DEVELOPMENT I I

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tion of food assistance, thus they selected depressed areas for data collection. At present, most municipalities collect simi. lar data to be used in their action plans, but not as a basis for evaluating national nutritional •status.

rural areas. This is a marked shift from the 1978-1982 pattern, where urban areas had both higher nutrient adequacies and a greater degree of improvement. The 1983 economic crisis seems to have had a greater effect on urban areas, since it hit

design of appropriate intervention strategies. The data gaps suggest that there• are( deficiencies in the country's monitoring system which can be remedied 0nly by the collection of timely and representarive data available to both the public and

To fill'in the need for a short-term nutritional status indicator in between the

the largely urban industrial and service sections badly. Increased unemployment as well as the decline in real wages have more severe nutritional effects in

policymakers.

the urban areas, where workers rely mostly on wage income for their livelihood. In contrast, •most of the rural folk are dependent upon their own produce for subsistence. Some predominantly

An evaluation of the Philippine Food and Nutrition Program vis-a-vis its objectires is now in order. Florencio (1985_ in a review of the Philippine nutrition program within a decade of implementation,

rural areas, however, showed up with high prevalence of malnutrition, particularly Western Visayas, which has been drastically affected by the sugar crisis,

agrees that the program has indeed accomplished a lot in terms of programs, administrative mechanisms and nutrition awareness at all levels of govermnent and

The results of two FNRI studies in Metro Manila (Valdecanas et al., 1984; Villavieja et al., 1985)also reveal sharp reductions in consumption and nutrient intake, particularly in depressed areas, More data need to be gathered in order to obtain a regional and locational perspectire of the nutrition situation to aid in the

among many sectors of society. There has also beer_, admittedly, •greater participation of government and private entities and the local populace in nutrition planning and implementation, The pressing question, however, is whether the program has in fact succeeded in improving nutritional status. Here, the evi-

FNRIbaselinesurveys, the NationalNutrition Council instituted the Index Monitoring Project (IMP)(NNC, 1985a). This project gathered weight-for.age data from index areas. The IMP results are presented in Table with1978 the corresponding FNRI data4 along from the and 1982 surveys. Note that the percentage of severely, moderately and mildly underweight are larger for the IMP surveys, indicating that sampling procedures are not comparable. Nevertheless, an examination of the trends they reveal is insightful. The FNRI data do not indicate a change in the proportion of the severely underweight, but there has been a reduction in those who are moderately underweight. In the IMP's index areas, both the incidence of severely and moderately underweight has declined, which may be a sign that intervention programs may have iraproved• the nutritional status Of preschoolers in index areas, but not necessarily in the nation as a whole. The IMP was later replaced by the NNSS due to non.reporting of data by field personnel.

25 g <

ful in assessing the nutritional impact of the 1983 economic crisis. A comparison

o __

of the two FNRI data points in Table 5 (1978 and 1982) shows that the p revalence of undernourished children has dec-

__ _

mased from 1978 to 1982. The improve.

1=_

ment in nutritional status has been re•versed after 1982, even after taking into account differences in the methodology of FNRI and NNSS surveys. The percen-

_ _ -i "_ g _"

rage of pre.sehoolers below 85% of the weight.for-height standard increased from 13.•3% in the third quarter of 1984 to 14.3% in the last • quarter of 1985. This deterioration was also observable from the weight-for-age data. Disaggregation by rural-urban categaffes reveals that some areas were more severely affected by the economic crisis than other areas. According to weightbasedindicators, urban areas.havea higher initial prevalence as well as a greater degree of deterioration compared to the

of Program Aeeom-

TREND IN WEIGHT-FOR-AGE OF UNDERNOURISHED 0-6 YEAR OLD CHILDREN, PHILIPPINES

help:

The NNSS data are particularly

3. An Evaluation plishments

_ = _ _

_ _ ® _

20

__%_

_ 15

IO

5

Source:

......

_ _

_ .

0

,

_,_

_-.'_' _ :_-_ -__ .c-e_ _ _;_ 5_." _ ._'('_q _.:.:t _,_'/_A 1978 (FNRI)

_ :_,

"_" _,,_

":_'-

_;; S_L--Z

y__ _:_ ,_ .._

_._._ :..... ___x.'.. ............

c_i ::_':7 .-_-

_ .... _ ._-_-_ z_ .... __"_-_.._. __'_'-"_'_ _'='_z_%_,_ _:_ ....... _._................ _ .1982 (FNRI)

:_,-_',_ 1984. (NNSS)

1978 and Nutrition 1982 Nationwide Surveys, FNRI National Council, Nutrition Menogement Information

,_Es _,_/ ,_ ;:-::.: -'_:" 1985 (NNSS)

(1981, Service_1984) Oivi_ioa.


PIDS DEVELOPMENT

RESEARCH

NEWS

I dence

is _rfixed. Citing data from the

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scheme

communities where the groups are at-risk;

II_qRI and the NNC, Florencio notes that gre increase in food energy consumption is way below the NEDA target.' Targets _ for the improvement in nutritional status of malnourished children were also not met. She goes on to say that '" . . the question of whether the

at a level of intensity adequate to bring about the desired consequences, as well as the lack of logistical support and a strong commitment from the program participants. Coordination among the different ministries is a difficult task, and it has often been said that nutrition is not a

and,(2) limits the identification of measures to those- which fill in deficits rather than preventive measures. The programs end up being "mere palliatives in effect, if not in intent" (Florencio, 1985: !40). Since direct nutrition interventions do not tackle the root causes of the problem,

PFNP significantly reduced malnutrition or not is difficult to answer. First, one has to measure changes in nutritional status.., and this is no mean

high priority in the sectoral agenda. Iglesias et al. (1985) point out that certain agencies which have direct policy hupact on nutrition are excluded from the Na-

their impact may be limited compared to the effect of other measures which are not traditionally linked with nutrition. In fairness to the NNC, the Updated 1984-

task. Second, one must attribute the observed change to the program, and this is an equally difficult undertaking It is likely that there were other factors which contributed to the reduction of the problem and not all of the change couM be attributed to the PFNP...'"

tional Nutrition Council, namely the National Food Authority (when "it was independent of the Ministry of Agriculture and Food) and the Ministry of Labor and Employment. The exclusion of these agencies,.a lack of nutrition advocacy and genuine political will to alleviate realnutrition may be behind their refusal to

1987 Food and Nutrition Plan recognizes these intersectoral linkages and is broader in perspective than earlier plans. It is formulated to address the malnutrition problem in two directions: immediate intervention designed to treat and rehabilitate identified malnourished cases, and longterm measures directed towards the

cooperate

underlying

Florencio

concludes

that

"due to the

laaaintainance of the intervention

III

in schemes which involve the

cause of malnutrition

(NNC,

complexity of the relationship among the so many factors which contribute to the nutritional status of a community, it is difficult to build a completely solid analytical basis for attributing any change sole-

use of agency resources for nutrition programs. At the local and community levels, studies of nutrition and health policy by Iglesias et el. (1985) and Carifio et al.

1985c). 4. General Policies Affecting Nutrition

tofact, the the PFNP" (Florencio, of1985: 139). deterioration nutritional status after the 1983 economic crisis cannot be blamed on the program since the depressed economic conditions led to cuts in program budgets and decreased financial access to food among the poor. Perhaps, without the program, the de. terioration could have been worse,

(1982) stress inthenutrition need for participation andgreater health local programs. Community participation becomes crucial for effective planning and implementation of nutrition programs for only

tional factors The are general determinants nutritional status. policy of environ. ment may have a greater overall effect on nutrition than do short-run direct intervention schemes. We now turn to some of

with decentralized planning and decision making are programs made truly responsive to local people's needs. Proper feedback and monitoring of nutrition programs is also essential. For example, Florencio (1985:140) notes that collection of data and submission of reports which remain generally underutilized reduees enthusiasm for the program. "All too often, data gathering is not followed by sufficient analysis and feedback to those involved" and workers perceived that it _ a waste of time. Ideally, the nutrition data should be made available, in understandable terms, to the commu, nlty so that program beneficiaries can also participate in the monitoring and evaluation oftheirownprograms, Florencio, however, points out that given the essential interventionist nature of the PFNP, the program's accomplish, ments may not be very far from what it can accomplish. She argues that approachhag the problem simply in terms Of defteieneies in specific nutrients among Cerrain sex-age groups: (1) tends to identify projects that are addressed to the afflicted individuals rather than households and

the factors which affect nutritional status, the subject, of discussion of the Nutrition and Welfare Working Group at the University of the Philippines at Los Bates.

That the program is more greatly affected by economic variables than it can manipulate these for nutritional objectires is discernible from the performance of the Pilot Food Discount Project. This project, conducted for one year (19831984) in depressed barangays of Abra, Antique, and South Cotabato, provided consumer price discounts on rice and cooking oil. Although the goods were subsidized at the rates of 32% on rice and 50% on cooking oil, the actual subsidized purchase price increased substantially because of the economic crisis, particularly the 27% peso devaluation in November 1983. The discounted price pn d to be adjusted upwards as market p ces increased (Garcia, 1985). Apart from economic factors beyond the program's control, Floreneio attributes the attainment of only modest gains between 1978, and 1982 to weak â&#x20AC;˘ implementation, which did not allow the

General food and agricultural policies as well as social, cultural, and institu-

Food Production and Food Availability. The food sector's performance is linked with the general agricultural poli. cy environment. While food supply is not the prhaaary cause of malnutrition, effective demand being a more crucial factor, one cannot deny that insufficient food supply is a constraint to increases in food consumption. Although nutrient availability per capita exceeds the required daffy allowance (RDA), this does not indicate satisfaction of nutritional needs since inequality in income distribution has not been considered. There is a need to target food production levels with an allowance of at least 25% over the RDA; 50% may be a more reasonable estimate. Although a strong agricultural sector provides a good base for nutritional improvement, government industrialization policy in the postwar era has been generally biased _against agriculture. D_.vid et


P IDS DEVE LOPMENT II

RESEARCH II

N EWS II

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FJ_TO¢_

AFFECTING

NUTRITIONAL

STATUS Yield j

Production Dlsfrlbutto_ InforncRIonol

Processing,

• frQ_

f_ed

Money In¢o_le Price_ Income in kind Own production

and aid

Food (National,

avo lla bill ty Re_ondl. Local) |

--'_---_

_q_ld

--_

fo obtain

................ Available Food (Household)

Program3 to direr nutrient Foreign trade, aid pollcle_

past consumption, ditions, social_ fu£al, religious factor_

frocLII-

_----_

avail-

somp_$1fion

--

effects Production Food

" .....

f_

supply,

home demand

c_lsumpfion, policies

etc. with p¢lce

]nfra-famlly and contrOl Income changesdistribution Promotion qnd qdvertising

J

[

Health factors Intro- hOulshOId fOOd distribution .... Child core ....... intro-household food ---..... procemslng Food characteristics and ......... composition Time constraint3 ---_-........

to obtain able food _Household)

programl

Ih¢Celr_ g_Qrafing poIjciee income and _source dlstrit_Jtio_ Food _Ubsldles, noflons, direct f_dblg Price policies (commodity,grouppgenero[)

....

De,Ire

activities

commodlflei

L_ _ _ -....... ...... _

_

area ecpofldlrlg

and nonfood

Dlstri butto_, st0cqge, procur_ output price policies Reeogrce (_wnership policies

_ Intra-household income ___ distribution Outside Influences Perceived food needs --

effl¢lltmcy,

for food

_--_---,--Input, _'--

J Ability

L 1986

III

Utilization of o_talned food tO meet nutritional need= (HOU_liho)d _lnd individuaO --

-_ _---_-__-_---_

Nutriflo_ education public health programs Water improvement projects Supply projects,vitamins_ mine_al_ Disedse prevention and cure Child care and breast feeditlg program_

Nutritional statue (individual) Source:

Pihstrup-

Andersen

(1981)

. . d

Source: Pinstrup - Andersen, P. 1981. Nutritional Consequences of Agricultural Products: Conceptual Relationships and Assessment Approaches. World Bank Staff Working Papers No. 456. Washington, D.C. international Bank for Reconstruction and Development. as. (1983) show that government price intervention policies in agriculture have served to weaken incentives to agricultural production, even if sonaewhat offset by non-price interventions such as irrigation and infrastructure provision. If incentives to agricultural production are diminished, and if returns to crops which

Another related issue is food aid. A1though food aid lowers the consumer cost of food, lowered prices may be a disincentive to domestic production. In addition, food aid may actually take the form of cheap food importation, which may add to balance-of-payments pressures and budget deficits. _

provide income and employment to small famaers (e.g., rice, coconut, and sugar) a:;e reduced, there could be potential negative nutritional effects. Reduced agricultural

The consensus appears to be that there is no substitute for increased agricultural which can be positively at-

study of cropping system in Solana, Cagayan is one of the few Philippine stu-

production would put pressure on food prices,'employment and incomes; reduced incomes would affect the purchasing powet of low-income groups, Commodity specialization may also have its nutritional consequences. Perhaps

fected by agricultural research and extension. Plant breeding programs, for example, can have two significant effects on nutrition: (1) by improving yields, improved varieties make possible a supply shift which lowers the price of the food

dies undertaken to date (Paris and Un. nevehr; 1985). Household Food Acquisition Power. The household's ability to purchase food is affected by incomes in cash and in kind, together with prices of food and non-food

the sugar crisis in Negros is the most dramatic example of the dangers of cash crop specialization of farmers at subsisfence-level incomes. The vulnerability of the specialized low-income producer's nutritional status to market demand fluctuations in the absence of adequate insurance schemes has often •been used as an argument against shifting from food

commodity to consumers; and (2) by ira-. proving the nutritional content of food commodities through genetic manipulation and indigenous varieties or introduction of new ones. According to Mendoza (1985), plant breeding in the Philippines has been focused mainly on inaproving crop yields, although the best varieties are analyzed for their nutritional

commodities. Household income appears to be the most significant determinant of nutritional status, and, in the long run, improvements of the nutritional status of at-risk groups will depend on sustained income increases. As Regalado and Gonzales point out, an income transfer (short term) may be effective only as a shortrun intervention. Considering the highly

to cash crops. Although cash cropping may yield higher incomes, the variability of that income stream is also a key consideration at low income levels. Diversification seems to be a more sensible

content. Thus, improvement iJ1 nutritional status is an indirect effect. As far as commodity priorities in research and extension are concerned, studies by Pinstrup-Andersen et as. (1976)and Qui-

skewed distribution of income, one ;1 fective means of improving nutrition the poor is to alter the society's income distribution, which calls for greater redistributive measures-not only income

policy than concentration high-return cash crop.

sumbing (1985) suggest that the nutritional effects of agricultural supply shifts II II II

transfers, but also asset transfers. In the Philippine context, this would include an I .........

in a high-risk, I

productivity

may have favorable distributional_ consequences, provided the supply of a stabk food consumed by low-income groups i( increased. Finally, at the talon level, the particular conditions associated with cropping systems-ownership patterns, seasonality, crop mix and tenure relations-can have significant effects on nutritional status. This is a relatively unexplored field; the


PIDS DEVELOPMENT III Table

RESEARCFJ_IEWS I __

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r

1986

1. Mean One-Day Per Capita Nutrient Intake and Present Adequacy: Philippines, by Urbanization and Island group, 1982. BY URBANIZATION

Nutrient and Particulars

BY ISLAND GROUP

Philippines

All Urban

Metro Manila

Other Urban

Rural

Luzon

Visayas

1808 2032 89.0

1831 2038 89.8

1797 2048 87.7

1852 2032 91.3

1797 2029 88.6

1814 2032 89.3

1745 2030 86.0

1906 2035 93.7

Intake (g) RDA Percent Adequacy

50.6 50.8 99.6

53.4 51.4 103.9

51.9 51.5 100.8

54.2 51.3 105.9

49.3 50.5 97.6

50.1 50.8 98.6

51.3 50.8 101..0

51.6 50.7 101.8

Intake (mg.) RDA Percent Adequacy

10.8 11.8 91.5

11.4 12.1 94.2

10.6 12.4 85.5

12.0 12.0 100.0

10.5 11.6 90.5

10.8 11.8 91.5

10.7 11.7 91.4

Energy Intake (kcal) RDA Percent Adequacy

Mindauao

Protein

Iron 11.0 11..7 94.0

Source: FNRI, 1984.

L L'

Table 2.

Comparison of percentage distribution of households by levels of energy and protein adequacy, by urbanization and island group, Philippines, 1978 and 1982. BY URBANIZATION

NUTRIENT/LEVEL OF ADEQUACY 1

Philippines 1978

1982

BY ISLAND GROUP

Urban 1978

Rural

1982

1978

1982

Luzon 1978

1982

Visayas 1978

1982

Mindanao 1978

1982

Energy2 Less than 80% 80-100% 100% and over

38.4 39.1 22.5

33.6 44.2 22.1

38.7 37.0 24.3

32.1 44.4 23.5

38.2 40.1 21.7

34.3 44.3 21.4

34.3 39.9 25.9

33.1 44.8 22.0

46.2 35.6 18.2

38.0 43.8 18.2

41.0 43.0 16.0

27.1 42.5 30.5

Total

100.0

99.9

100.0

100.0

100.0

100.0

100.1

99.9

100.0

100.0

100.0

100.1

16.4 55:6 18.0

14.2 61.5 24.3

12.0 54.5 33.5

11.1 59.1 29.6

18.5 56.2 25.3

15.6 62.6 21.6

16.0 53.7 30.3

14.9 62.3 23.3

16.5 57.7 25.8

15.3 61.5 23.5

17.8 60.2 22.0

11.1 58.4 30.3

100.0

100.0

100.0

99.8

100.0

99.8

100.0

100.0

100.0

100.0

100.0

99.8

Protein 3 Less than 70% 70-119% 120% and over Total

1percent of nutrient intake over recommended allowance 2Less than 80%energy adequacy levelis an arbitrary cut-off point set as marginallevelof energy adequacy based on the coefficient of variation of energyexpenditure from variousoccupational groups which is about 20%. 3Lessthan 70%protein adequacy level - an arbitrary cut-off set as marginallevel of protein adequacy Whichtakes into account 30% marginof safety. Source:

FNRI, 1984. IIIIIII

I

II1'

IIIII

I I]


'PIDS DEVELOPMENT

RESEARC_,,,NFWS

8

MARCH-APRI III

III

1804 48.8 10.6 0.44

1808 50.6 10.8 0.45

0.2 5.4 1.9 2.3

point of view. This may arise because households do not perceive their ow_ nutrition deprivation, and thus do nor'take steps to improve their nutritional status (Gonzales-Intal, 1985). Another factor is the lack of knowledge regardhag food and nutrition needs, wrong information received from outside the household, the promotion of nonnutritious food, and prevailing cultural factors affecting food consumption. This is ctearly an area for hnproved nutrition information and education.

0.73 0.73

0.74 0.58

1.4 9.4

Individual Food Utilization. Utflization at the level of the individual is affect-

16.4 16.6 .30 327

7.2 (7.8) 7.1 (1.5)

ed by intra-household food distribution and the individual's health status. Again, this is an area for nutrition infomaation and education as well as the presence of complementary social infrastructure inputs for health, sanitation and education. The scope for nutrition policy, when viewed from an interdisciplinary perspect-

Table 3. Comparison of Mean One-Day Per Capita Nutrient Intake Philippines, 1978 and 1982. 1978

1982

Nutrients/Units Intake

Increase (Decrease) %

, Energy, kcal Protein, g Iron, mg Calcium, Thiamine, mg Riboflavin, mg Niacin, mg Ascorbic acid, ng Fat, g Carbohydrates Source:

15.3 66.8 28 332

FNRI, 19'82 Nationwide Nutrition Survey.

expandedâ&#x20AC;˘ agrarian reform program. A long-term strategy to reduce poverty and generate overall income improvement will have to involve distribution-oriented patterns of economic growth, Food price policy is also used to affect nutritional intakes, although food subsidies need to be applied judiciously using both commodity and income-group-

Table 4.

L 1986 I

specific targetting to maintain costeffectiveness. The macroeconomic consequences of food subsidy polici6s also deserve consideration, particularly their effects on the trade and budget deficits, Household's Tastes and Preferences. The household's decisions regarding the amount and types of food consumed are often not optimal from a nutritional

ive, is very large. With that in mind, some general recommendations for policymakers to consider can be made. (1) There is no substitute for distrib._ tion-oriented patterns of "economi_ growth to solve the problem of malnutri. tion. Poverty eradication through increased incomes and a more equitable distribution of income must be the target of

Trends in distribution of pre-school children by weight-for-age standard, Philippines, 1978 to 1982, FNRI and IMP results. 1 PERCENTAGE OF TOTAL

Year and Source _'

No. of Children weighed

Normal & overweight

Mildly underweight

Moderately underweight

Severely underweight

FNRI 2 1978'

3274

31.1

46.6

20.6

1.6

1982

3634

31.3

51.5

15.6

1.6

1979

82995

27.4

42.6

26.3

4.7

1980

91574

28.8

43.7

23.9

3.6

1981

94426

31.7

43.2

22.2

2.9

IMP3

1Mildly underweight - Less than or equal to 90% of standard weight for-age for Filipinos. Moderately underweight & Less than or equal to 75% of standard weight-for-age for Filipinos. Severely underweight - Less than or equal to 60% of standard weight-for-age for Filipinos. 2Based on data from the 1978 and 1982 NationwMe Nutrition Survey, covering 2,800 and 2,880 households :}Based on consolidated

xeports from randomly

selected

index areas set by NNC for monitoring

in their respective

purposes.

Source: FNRI (1984), NNC (1982).

I II

III

II

IIII Illlllll

years.


PIDS DEVELOPMENT IIIIIII I

Cable 5.

RESEARCH_EWS I

9 I

MARCHIII

II

APRIL

1986

Comparison of trends in weight-for-height, height-for-age, and weight-for-age of undernourished 0-6 year old children, Philippines, FNRI and NNSS Results. " I

Year and Source

No. of Subjects

Weight-for Height _85% 985%

Height-for_Age <90% _90%

1978 (FNRI)

3400

13.8

86.2

n.a.

1982 (FNRI)

3615

9.5

90.5

20.6

1984 (NNSS)

3440

13.3

86.7

1985 (NNSS)

3243

14.3

85.7

Weight-for-Age _75% _>75% 22.2

77.8

79.4

17.2

82.8

25.2

74.8

20.5

79.5

24.8

75.2

22.0

78.0

Source: 1978 and 1982 Nationwide Nutrition Surveys,FNRI (1981, 1984) National Nutrition Council, ManagementInformation ServicesDivision.

ecpnolnic policy. (2) There must be greater coordination and integration of nutrition efforts among the various branches of government. This presupposes a stronger commitment to nutrition as an objective of development policy. In this scheme, ievery ministry can integrate nutrition 'within its overall function, while the National Nutrition Council can expand its coordinative role. Perhaps, the Council can be raised to the level of a NEDA committee to increase its ability to implement multi-sectoral policies. The council can be assisted in its functions by -a strong teclmical and research cornponent to provide the bases for policy

REFERENCES Call, D.L and F.J. Levinson. 1971. A systematic approach to nutrition intervention programs. Nutrition, National Development and Planning. Cambridge, Mass: MIT Press. Carifio, LV., et al. 1982. Integration, Participation and Effectiveness: An Analysis of the Operations and Effects of Five Rural Health Delivery Mechanisms. Makati, Metro Manila: Philippine Institute for Development Studies. David, C.C. 1983. Economic policies and Philippine agriculture. Paper presented

1984. Second Nationwide Survey, Philippines, 1982. Nutrition

Nutrition

1981. First Nationwide Survey, Philippines 1978.

Garcia, M,I_ 1985. Preliminary results of the food discount experiment in the Philippines. Memo submitted to the National Nutrition Council, January 15, 1985. Gonzalez-Intal, A.M. 1985. Social and psychological aspects of food consumption in the Philippines: Problems and strategies for change. Center for Policy and Development Studies Working Paper No. 85-16. University of the Philippines at Los Baflos.

recommendations, (3) Government must be willing to undertake short-runinterventions addressed to nutritionally vulnerable groups, for one cannot wait for economic growth's

at the Workshop on the Impact of Economic Policies on Agiicultural Development, Tagaytay City, March 2526, 1983. Sponsored by the Phifippine Institute for Development Studies.

Iglesias, G. U., A.G. Pacho,,M.F.S. Villamejor et al. 1985. Severe Malnutrition of Filipino Preschool Children: A

benefits to reach them in the short-run. These are the groups for whom immediate action may be crucial to their survival, (z]) Finally, effective linplementation of nutrition policies entails greater cornmunity participation in the design and implementation of programs. This means

Florencio, C.?L 1985. A Decade of the Philippine Food and Nutrition Program. In Nutrition as a Focus of Development Policies and Programs in the Philippines. Diliman, Quezon City: College of Home Economics. (Mimeo).

ministration, University of the Philippines. Mangahas, M. 1984. Nutrition and the Political Economy of Market Controls. M. Mangahas, et al. The Distributional Impact of Food Policy on Nutrition: A Political Economy Study. Report submitted to the International Food'

more decentralized planning and, eventually, greater self.reliance as commu_vtities become both more financially and _perationally responsible for their own programs, SUBSCRIBE TO THE DEVELOPMENT RESEARCH NEWS NOW

Florentino,

i_., C. Adorna and F. Solon.

1978; Interface problems between nutrition policy and its implementation: A Philippine case study. Paper presented at the Conference of Interface Problems Between Nutrition Policy and its Implementation. Cambridge, Mass., Massachusetts Institute of Technology, November 5-8, 1978. Food and Nutrition

Research Institute.

Policy (3 College vols.)Manila: Policy Studies Review Program, ofiPublic Ad-

Poficy Research Institute. Pasig, Metro Manila: Development Academy of the Philippines. Mendoza, E.M.T. 1985. 'An assessment of the contribution of plant breeding programs to nutrition in the Philippines. Center for Policy and Development Studies Working Paper 85-17. University of the Philippines at Los Bafios.._.

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PIDS DEVELOPMENT .......

RESEARCI-_b_WS I

10 I III

cies andNutiition ProgramsCouncil. for Groups National 1986.VulnePoli-UPDATE table to Malnutrition. (Draft). 1985a. Preliminary Reports, Index Monitoring Project and National Nutrition Surveillance System. (Per-

MARCH-APRIL

III

_

Moreover, the paper delves in intothetilepaper. conl ment are also investigated sistency by which .these measures are adopted• vis-¥vis the policies that are

n-------_ 1[ f'll_,k--_

_

1984-87

VITY GROWTH IN PHILIPPINE MANUFACTURING: RETROSPECT AND

Food and

sonalCommunication). 1977. The Philippine Nutrition Program, 1977-1982. Pads, T. R. and LJ. Unnevehr. The effects of agricultural production on nutrition: A case study of three villages in Solana, Cagayar/. Paper presented at the Workshop on Nutrition and Welfare, University of the Philippines at Los Bafios, October4-5, 1985. Pinstrup-Andersen,

Quisumbing, M.A.R. 1985. Estimating the distributional impact of food market intervention policies on nutrition, Unpublished Ph.D. Dissertation, School • of Economics, University of the Philippines,

FUTURE PROSPECTS by Richard Hooley, Professor of Economic's,Series University l_'ttsburgh Monograph No. 9: ofPRODUCTIand U.ND.P. Consultant to the PIDS

_

NEW

PUBLICATIONS The study measures the rate of out-

Monograph Series No. 7: PUBLIC POLICY AND THE PHILIPPINE HOUSING MARKET by

P., N.H. de Londono

and E.J. Hoover. i976. The impact of increasing food supply on human nutrition: Some implications for cornmodity priorities in agricultural research and policy. American Journal of Agricultural EconolniCS.58: 131142.

Edna AngelesReyes Research Fellow Philippine Institute for Development

Studies

Tile study analyzes the major aspects of supply and demand for housing, and in the process, identifies specific housing problems and their underlying causes. A historical description of the housing situation is presented and this brings to the fore the affordability of households and housing cost. Likewise, there is an attempt to estimate the income and price elasticities of housing demand. Some of the housing policies and progrmns undertaken by the

Regalado, B.M. and LA. Gonzalez, 1985. Economic detelaninants of 'nutrition. Center for Policy and Development

government are reviewed and evaluated, in particular, the National Shelter Prograin.

Studies Working Paper No. 85-13. university of the Philippines at Los Bafios.

Monograph Series No. 8: A REVIEW AND APPRAISAL OF THE GOVERNMENT RESPONSE TO THE 1983-84 BALANCE OF PAYMENTS CRISIS

Valdecanas, O.C., R.F. Florentino, M.R.A. Pedro, LM. Vicente and S.S. Maninang. 1984. Nutritional Patterns and Adjustment/ to the Economic Deviation of 1983-84 Among Selected Households in Metro Manila. Food and Nutrition Research graph Series 1.

Institute.

enunciated by government.

_,_k

1985b. Annual Report, 1984. 1985c. Nutrition Plan.

1986

II

by

Mario Lamberte, et. al. Research Fellow Philippine Institute for Development Studies

put growth for the manufacturing sectot as a whole, as well as a crosssection of several industries. Constructed on a consistent basis over a twentyfive year period, an in-depth analysis is made of causal product-of ivity change, alongfactors with behind the process diffusion of productivity gains. In addidon, the study also determines the effect of increased use of traditional inputs on the one hand, and technological change on the other hand, in the growth performrace of manufacturing industries. At the latter part, the study draws attention to the policies appropriate for improving the contribution of productivity change to industrial growth. From the estimates gathered of industry performance, an assessment is made of the impact of fiscal, monetary and industrialization policies on the efficiency of manufacturing firms and its implications on the macro level. Monograph Series No. 10: FORECASTING MONTHLY INFLATION IN THE PHILIPPINES by Roberto S. Mariano Visiting Consultant to the Philippine Institute

for

Development

Studies

Mono-

The study attempts to evaluate the various stabilization measures adopted by

The paper develops a statistical procedure for forecasting inflation rates,

Villavieja, G.M., T.E. Valerio, C.M Nones, C.M. Cerdena, tLM. Abaya, and J.P. Boqueza."1985. Assessment of the Nutritional Situation of an Urban Re-

the government in response to the 198384 crisis. A comprehensive examination is made on measures that aim to improve the pay.merits position, manage bud-

on a monthly basis, as measured from,, fluctuations in the consumer price indexl (CPI) for the entire Philippines_ The forecasting procedure's main ingredientis a re-

gion in a State of Rapid Economic Elux. National Science and Technolo-

get deficits and the growth of reserve money, including price and wage adjust-

gression equation which explains monthly CPI levels in terms of: a) CPI past values;

gy Authority, Food and Nutrition Research Institute. II

ments. How these measures have affected inflation, outpu t and national employII IIII II

b) the average wholesale posted price of petroleum products as detennined b_y II Ill III


PIDS DEVELOPMENT

RESEARCH

NEWS

11

MARCH-APRIL

IIll

1986

11

the Board of Energy; c) a tariff-adjustea POrt price index for nonJ'uel hnports an export price index, both of which are peso-denominated; d) a U.S. dollar black market premium; e) total domestic liquidity relative to real output; f) the legislated minimum wage and cost-of-living allowance; g) changes in the price ceilings of food items imposed by the Price Stabilization Council; and b) the effective rate on 91-day treasury bills.

of the reforms on the state of health of the system are explored in the study. The leading question is to what extent did the reforms contribute to the balance of payments crisis. There is also discussion on how the reforms weaken the banking system's ability to weather the external crisis, and if so to what extent.

ECONOMIC POLICIES FOR FOREST RESOURCES MANAGEMENT

1985, VOL. XII NO. 2

by

This journal issue features select attides related to "Australia-Philippine Trade Relations" by Hal Hill; "The Australian System of Tariff Preferences: An Evaluation of its Employment Effects in the Context of Australia-ASEAN Trade¢' by Jose L. Tongzon; "The Recent Recession and Rising Protectionism m Developed Countries: Some Thoughts on the ASEAN Economies" by Romeo M. Bautista;.Mario B. Lamberte's "Financial Liberalization: What Have We Learnt?;" "The Economic and Social hnpact Arialysis of an Upland Development Project in Nueva Ecija, Philippines" by Marian Segura-delos Angeles; "The Macroeconomic Policy Environment of Philippine Agricultural Performance" by Ponciano S. Intal, Jr. and finally, "Electrificafion and Regional Economic Develop-

livestock industry and in the inputs into animal production has two components: 1) the changes in meat production technology; and 2) the changes in feed ingredient production technology and marketLug. Moreover, .the re_ulting rapid growth in demand for animal feed requires either technological change in domestic production of feed ingredients, or an increase in the use of imported ingredients, or both. Since traditional production systerns are typically unable to respond to the growth in demand for inputs, increased meat availability must arise from change in production methods, or in iraports. Feed ingredients that are used as food are usually inferior staples consumed on the farm so that a shift infeed marketing patterns normally accompanies this structural transformation.

ment in the Philippines," by P.C. Frederiksen,

The paper outlines a model of structural change in livestock-feed industries and reviews estimates of the supply and de-

14_lfrido Cruz, editor Executive Director, Center for Policy and Development Studies University of the Philippines at Los Ba_os

The report presents an overview Of Philippine forestry and introduces some of the key economic concepts of resource use and management. After setting down the research framework for forest resource management and land allocation, the report presents the summaries of the papers, together iwith the discussions that followed, as highlighted in a PIDS seminar-workshop on "Economic Policy'for Forest Resource_ Management," held in February 1984. The four major topics identified in these papers relate to land u_e and commercial forest managelnent resources; macro-economic policies affecting forestry; upland development anti the shifting cultivation problem;and lastly soil erosion and watershed management. â&#x20AC;˘

JOURNAL OF PHILIPPINE DEVELOP- MENT, NO. 22, SECOND SEMESTER

COMPLETED The following studies form part of a major workshop on the Livestock-Feedstuffs sector of the Philippine economy under the Agricultural Policy Studies Program of the Center for Policy and Development Studies (CPDS). The Center is an independent policy research center lo-

while the latter is a Research Fellow at the Philippine Institute for

cated at the University of the Philippinesin Los Bafios. The seven (7)state-of-the

Development Studies.

art review papers focus on supply constraints, the policy issues affecting the livestock and feedstuff industry, including marketing and distribution aspects of the sector. The project, which was jointly sponsored by the Center for Policy and Development Studies, the Philippine institute for Development Studies (PIDS), Winrock International and the U.S. Agency for International De-

The l_hilippines introduced a set tof financial reforms in 1981 prima_ly aimed at liberalizing the financial system. Two years later, a grave payments crisis intervened and cut short the momentum to successfully implement these reforms on the financial system. Specific questions concerning the impact Illl

I

Illlll

STRUCTURAL TRANSFORMATION IN PHILIPPINE LIVESTOCK AND CORN MARKETS by Gerald Nelson and Laurian Unnevehr Workshop Paper Series No. 86-1 The structural transformation in the

PROJECT5 FINANCIAL REFORMS AND THE BALANCE-OF-PAYMENTS CRISIS: rile CASE OF THE PHILIPPINES, 1980-83 StaffPaper Series No. 86-02 by Eli Remolona and Mario B. Lainberte. The former is an Assistant Professor of the School of Economics, University of the Philippines

veloplnent (U.S.A.I.D.), culminated in a seminar heltl last February 25, 1986 at the Continuing Education Center,also at the University of the Philippines in Los Bafios.

IIll

mand determinants. Likewise, it provides some analysis of how government policy has affected the feed-livestock sector. It also provides some preliminary suggestions on how government can ease the adjustment costs of the transformation, as well as research directions. CORN PRODUCTION -PROGRAM IN THE PHILIPPINES: PROBLEMS AND PROSPECTS by

Generoso Octavio and Manuel Lantin Assistant Professor, Department of Agricultural Economics and Chairman, Department of Agronomy, respectively, U.P LosBa_os. Workshop Paper Series No. 86-2

The paper reviews and analyzes the country's corn production system and the problems encountered by cornproduction programs. By determining the private and Ill

II


i

PIDS DEVELOPMENT IIIII social profitabilities

RESEARCH.,,_NEWS

12

MARCH-APRIL

1986

Hill[

of corn productio_l

THE EFFECT O17GOVERNMENT

1) cost is not competitive;

the study supports the claim that the country has high comparative advantage in corn production. Experts in the field

POLICIES ON THE PHILIPPINE LIVESTOCK AND FEEDS INDUSTRIES

of volume. The study further proposes_l that ideas for research must be gearedtowards utilization of crop residues

agree that corn as a product, either .in the form of human food, animal feed or raw material for industry, can be considered as a most valuable cereal grain. Hence, the study recommends that other than field extension services, further financial assistance like credit programs and incentives be granted to corn pro-

by

to provide the animals a regular supply of feeds throughout the year. Likewise, researches must entertain alternative inputs that are likely to be more affordable to farmers. Beyond chemical and biological evaluations, studies should put more emphasis on lowering the cost of production and processing. Examples of

ducers.

The paper outlines the impact of government policies on the feeds-

studies that must be given support are in the areas of cowpea production; earth-

CORN MARKETING IN THE PHILIPPINES: AN OVERVIEWANDAREVIEW OF TRADE AND PRICING POLICIES

livestock industries by quantifying. the effect of policies on feeds and meat prices. In its findings, the variables that have had the most significant effects on the domestic prices of feeds and meat were the exchange rate, tariff and trade policies. Iin addition, these variables have als0 affected the competitiveness o.f livestock producers in the world market. For one, the overvalued exchange rate has

worm and maggot meal production; fortification of cassava and sweet potato meal to equal the feeding value of corn; and lastly', the low cost drying process. The results of these studies must be or..... ganized and. the information extended to farmers. Piloting may be advised at farm levels in order to influence farmers to adopt the technology.

The study provides an overview of the corn marketing system in the Philippines with emphasis on the structural changes that occurred since the 1970s. It reviews

made the Philippines a net importer of feeds and has stifled the development of livestock exports, particularly hogs. Also, the implicit taxation on feeds have re-

IMPROVEMENT OF PHILIPPINE LIVESTOCK PRODUCTIVITY THROUGH BREEDING: SOME POLICY ISSUES by Cecilio Arboleda, et al. i

government policies and their effects on domestic corn trade and prices, Important issues in corn marketing and distribution are identified and it is

suited in high domestic feeds prices, thus reducing the competitiveness of domestic . livestock producers. In the future, pricing policy on feed

by lsabelita Pabuayon Assistant P_ofessor, Department of Agricultural Economics, .College of Development Economics and Management, U.P. Los Bagos. Workshop Paper Series No. 86-3

exactly on these areas that search is recommended,

future

re-

Liborio S. Cabanilla Assistant Professor, Department of Economics College of Development Economics and Management, U.P. Los Bafios Workshop Paper Series No. 86-4

and 2) lack

Director, Institute of Animal Science U.P. Los Ba_os Workshop Paper Series No. 86-6

substitutes like cassava, and.other protein supplements will play an important role on the long=run prospects of utilizing non-conventional feedstuffs. 'Likewise,

In the area of livestock Production, the Philippines has pursued a policy of importing breeding animals from other countries and has practically abandoned

the growth of the ruminant sector will depend, to a large extent, on the availability of sl_aall farm credit programs and available market infrastructure: On the other hand, the non-ruminant sector's growth will depend on the price of feeds because of the large component of feeds cost in the total cost production,

all efforts to develop local breeders. In recent studies, however, one of the most widely contested policy issues calls for limiting stock .importation, since most local species have enough genetic diversity, to render the contribution of imports marginal at best. This is particularly true for pigs and chickens. Hence, a policy of severely limiting breeding stock

stock production. The marketing and distribution system" of corn is characterized by intraregional

POTENTIAL FEED SUBSTITUTES FOR LIVESTOCK AND POULTRY AND THEIR ECONOMIC VIABILITY

importations would benefit local breeders .and the animal industry as a whole, provided that local breeding efforts are pro-

and interregional flows and trade channels. Given the shift in domestic demand to greater feed use, a major concern is how to achieve a more efficient corn marketing and distribution system. In so far

by

perly supported .by the government and seriously executed by the private sector. In line with this alternative , it may be

Since the 1970s, the domestic production of corn has lagged behind the rapidly expanding needs due to the steady growth in demand for poultry and livestock feeds. This has, in turn, resulted to greater demand for corn imports. In. terms of aggregate corn use, corn for food use declined while feed use became increasingly important with the rise in the markets of commercial poultry .and live-

as government's role is concerned, the provision of relevant market information . systems and adequate infrastructure, particularly transport_ is deemed supportive of these goals and is beneficial to the :whole .agricultural sector as well. III

Perla Lopez Professor, Institute of Animal Science, U.P. Los Ba_os Workshop Paper Series No. 86-5 11ae study starts with the 0bserva-

don that inadequate nutrition is an important limitation to livestock production in tropical countries. Moreover, inspite of numerous studies on feed substitutes, nothing can be recommended for immediate application for two reasons: III III

well to establish animal breeding research centers to develop breeds and varieties of| animals to provide the livestock industry_ with superiorbreeds.

II


PIDS

II

DEVELOPMENT

IH

RESEARC_EwS'

I HIIIIIIII H

:::

_

AM AL FEED

....... oY:Albert:LadoresandRegaladoZamOra: .AS:gistan Animal tScience ::i_o¢k, ssor, Asian:dnstituteof34anage= .............. : ment;respective6, ..... WorlcshopPaperSeriesNO: : ....... : :

: : 13

:

.... II ........... 111111 :III'N_

........ :tl_ai::foiiowed

MARCH-APRIL

'1 I'lli

I

: cussions br0ught to attet_tion: the :probl6ms:::encounteted by the fishi'ries industry due to prohibit:ire ta:

rep:resentat:ives f_om the Board of Invest_ merits, the Mi_.istry of Trade and the NEDA.

restrictions, :At ttte same potemitd time, possi: i tiff: bifitie s for greate:r market inl certaiii fish products like Canned tuna,

i :::: : : .]O1.N'I UNICEI_-PIDS SEMINAR ON .... " ...... _ _, ADJUSTMENT WITH A HUMAN FACE

: raw:shrimps:and :

'illll;l

1986

prawns were, cited. Most I were staff members : i of tiie institute. ....... i•

.... Tl*e

:first j0i:at

setNnar

for

the

,_ L THE IMPACT OF ::feed and : aiia/yzes 't]ie pros: ON :: BOI :: pects of feed substitutes like cassava: INCENTIVES ON:::THE RATE OF arid Sweet po[at0: Be:ing a major seg_ RETURN;:F ACTOR.: PRK:ES AND RE ..... ment of tile:: livestock and poulti:v i)_:. ,1:LATWEEACTOR USE .... dustlT in {'.lie Plffllppines;i the: criEcaJ :

year was the UNICEF-PIDS seminar _ "Ad}ust_lent w:ith a . Human Face," held April 4, 1986 at the Metro Club on .

animal; feed. industry April, a semhiar and the: c:ritical variables for the i:t;,, "The:Impact: of BOI Incentives: dustry are:looked krto: Va*iouS sttggest:: i otll iRatei0f R.eturia:, 'Factor Prices aadl ions iire offered by tl_e au.tl.ors regar:cing: : Relative: I FaCtor use: A Comparative

l)irector of the Institute for Developmen¢ Studies of the University of Sussex, and current:!y Dept_ty Executive Director of the ETNICEF. The event brought together

these:::ln:the:former, gove_men* initiative J_mlysis h_centives Uilder the OretO: hold:regular consultations anoiig pro= i:i nibx£ [nveStinents Code of ]981 CPI_ sup'ply .... 1eve s will: have :1789)and the h'westments Incentive Polito be _ndertakenl In ihe latter, the private ey Act (B P:.391)" was held at the NEDA sector' s participati:Gi is taken: t0 be of Buikling lit Makati. The paper prese_nted great import:.: There is a ge_ieral Consen:: : wasautho]ed, by_Dr_ R0sario O Mana.sa_L sus aniong leaders in th.e i_dt_stry tha_: a:ReSearcb. Fellow of the Ptfilippine Insti_ •_6,rther progress in the area willl dbpeitd:: tUte: for Development Studies. Once "l_argely::on :the availability 0f raw ma.t:e:: again;the discussion reiterated tile idea: rials: and::fl_e: pricing of: these; especially of letting ttre market System decide {yn those that are imported or sold by thel government: ::::There is : optknism Withl

tO

i'nvestme]'it cb0iees. Tlie participators who: shared their views in:the discussions were

duction :of feedgrains, pri]cipally eorii: ....and soybeansl t 0 boost: th.e ani]nai feed industry: : ......

AND COMPARATIVE ADVANTAGE: PHILIPPINE:FISHERIES: ..... :An

in:llous:e

Semiriar

0n:

'Tariff

Protection alid: C0mparative:: Advan:: rage Philippine Fisheries" was held :::March 6: at :t!!e :NEDA: sa Makati Build! ing: Highlighting the inasteral tlaesis: of Fe Gentiles:,:a Senioi Researctl :Assist. :::ant of the I IDS; the seminar and tlie dis= ...............: HIIIII I II " Ill'

[I

IIH[II

I.......................... I

iI; Makati: The seminar :highlighted tke findilags and cotM.usions of a paper done by Dr. Richa:rd Jo:lly, former

resource persolls t'rom various fields of the sociat scie_ces. Panel disc_._ssantsincluded Dr. S3_'lwa" Guerrero_ Dean of the Instittlte of Socia:l Work and Co nmurfit:y Devel.op_ me._at.(ISWCD) and Dr: Florian Alburo of tlle School of Economics, both of the U_]iversity of tlae Philippines. The UNICEF Resident Representative , Dr. Pratima Kale introduced the guest speak. er while the welcome remarks were made by Dr. Filologo Pante, Jr., President of the PIDS,


PIDS DEVELOPMENT RESEAR_EWS I II

14

_ _

MARCH-APRIL 1986 IIII

PIDSPUBLICATIONS AVAILABLE PIDSWORKINGPAPERS

1. W.P__8301

Studies Products in

2. W.P._-8302

4, S.P.:#8204

on the Wood-Based Furniture, Leather Jnd Footwear Manufacturing-Industries

the

Philippines.

Niceto

Poblador,

Changing Comparative Advantage in Rice Production, Laurian J. Unnevehr nioM_Balisacan,

4. W.P.#-8304

The Impact

5. W.P.#8305

of

Government

Policies

Philippine and Arse-

Economic in

the

and'

9. S.P._'_8304

Price Power

Agricultural

1955-1980.

Incentives Livestock

and

Manuel

Comparative

Industry,

Liborio

$_ J. de

An Analysis of the Economic Policies Affecting The Philippine Coconut industry, Ramon Clarete and J. Roumasset,

9. W.P.:h_8309

Economic

Incentives

and

in the Philippine Baiisacan.

Comparative

Cotton

Industr.y.

Arsenio

16. W.P._8407 17. W.P.#8408 18. W.P._8409 19. W.P,_8501 20. W.P._8502

21. W.P. _8601

on

Trade pines,

Liberalization 1960L84o

in

Agro-

R_foreste=

the

Experience Florian

the

and

1. S.P._8201

An

Analysis

pines. 2. S,P.##8202

3. $.P. #8203

of

Cristina C,

Philip-

PAPERS Fertilizer

Policies

David and Arsanio

(Printed al¢o in J.P.D. 1981) Credit and Price Policies in Philippine Cristina C. David. Government Policies and Farm the Philippines. Cristina C. David.

III

in

Study

h_direct

Rosario

the

Balance of Payments Crises in the and the Philippines, John H. Power.

of

Philippine

Real

Property

Taxation.

Public Enterprise Definitional and

in the Philippines in Taxonomical Exercise.

1982: A Rosario

Estimating

14. S.P.-;_/8404

Shadow Wage Rate and the Social Rate of Discount for the I_hilippines, Erlin¢la M. Medalla. Development Finance and State Banking: A

the

Shadow

Survey of Experience.

Exchat_ge

Rate,

19. S.P._/-8502

20. S.P.#t8503 21.

S.P._/8504

22.

S.P._8505

23.

S.P._

8506

24.

S.P._/8507

25. S.P, #8508

Nontraded

Primary Prices, "=

Development Bank of the Philippines and Financial Crisis, A Descriptive Analysi_

Mario B. Lamberte. The Protection Structure,

Resource

Ratio in Empirical

A Decomposition. Analysis and Import Performance, S. Intal, Jr. Philippine Export

and

Flows

and

Philippine ManufacNote: Erlinda M. of Philippine Export 1974-1982 Ponciano

Terms

of Trade

Instability,

1965-1982. Ponciano S. Intal, Jr. Methodology for Measuring Protection and Comparative Adavantage. Erlinda M. Medalla and John H. Power. Food,

Fuel

and

Urbanization

in

Alejandro N. Herrin, Manuel F. F. Florentino. Rural Development Experience: pectives. Robert E, Evenson.

the Philippine¢ Monte$,

Rodolfo

Economic

Pet_-

Financial Liberalization and the Internal ture of the Capital Markets: .The Phil/ppine Mario B. Lamberte.

Struc. Case.

The Mario

Rural

Banking

System:

Need

for

Reform&

B. Lamberte.

26. S.P. _8509

Social Adequacy and Economic Effects Security: The Philippine Case. Mario berte.

25. S.P.-#8601

Impact of BOI Incentives on Rate of Return, Factor /?rices and Relative Factor Use: A 'Comparative Analysis of Incentives Under the Omnibus Invest

Philip-

ments

Code

of

ment Incentive Manasan.

Agriculture. 26. S.P,_tt 8602

II lUll

the

Edita A. Tan.

Protection} for Erlinda M_ Medalla.

the Capital-Labor turing: A Short Medalla.

M. Balisacan.

Mechanization

G.

G. Manasan,

Geoffrey

Shepherd.

PID$ STAFF

,A

S_tting,

13. S.P.-#-8403

Philippines

in

Alburo

12. S.P.-;P/:-8402

Forest

of

Watershed

Deficit

Manasan. Response to 1970s Korea

Philippine

18. S.P.-_8501

tion: The PantabangenandMagat. Jose A. Galvez. Workshop Papers on "The ConseClUeneas of Small Rice Farm Mechanization in the Philippines': A Review of Welfare in the Coconut Industry. Sylvia N. Guerrero. Financing the Budget Eli M. Remolona.

{he

Management. Segura-delos

Productivity

of

in

Activity.

The the

forestry Scheme_ Ana Doris Capistrano and Sam Fujisaka. Environmental Effects of. Watershed Modifieations. Wilfredo P_ David. Cost

Monetary Aggregates and Economic Mario B. Lamberte. Effective Protection Rates and Internal

17. S_P,_8407

Pressure, Migration and Markets: for Upland DevelopmentMa.

'and

Selecting

of Na-

Angeles. The Impact of Government Policies Resources Utilization. Gerald C. Ne'lson.

Management

in

Modelling the Effects of Devaluation an Output and the Trade Balance: The Philippne Experience. Ma. Cecilia Gonzales.

Policy Issues on Commercial Cerenilla A. Cruz and

and

Criterion

16. S.P._8406

12. W.P._8403

Concepcion Cruz. Tenure, Technology

Filologo

AgfoMa-

Forest Land Management in the Context tional Land Use. Adolfo V. Revilla, Jr.

15. W.P._8406

1973-1981.

Pante, Jr, On the Use of the DRC Projects. Erlinda M. Medalla.

Derived Product,

11. W,P.#-8402

Population Implications

and Intervention

Philippines,

15. S,P._'8405

Intersectoral Capital .FloWS and Balanced industrial Development in the Philippines. nuel S. J. de Leon.

Forest Marian

the

Cayetano W. Paderanga, Jr,

,Advantage

10. W.P.#8401

14. W.P_ #8405

10; S,P._;f8305

Advantage S_ Cabanilla.

in

Taxes

Poll-

8- WIP.;/#:8308

13. W.P._8404

8. S.P. :# 8303

11. S.P,:/_L8401

Expenditures

cies in the Philippines Leon. 7. W,P,_:8307

Policy

on Philippine

Sugar. Gerald Nelson and Mercedita Agcaoili. Comparative Advantage and Government Intervention Policies in Forestry, John H. Government

Banks. Mario B. Lamberte. Exchange Rate Flexibility

7. S.P.#;/:8302

andTeresitaTumaneng. 6. W,P.#-8306

6. S.P,#8301

Adr/ano

Solis, Roy YbaSez, and Bienvenido A#agon. Economic Policies and Philippine Agriculture. Cristina C. David.

3_ W.P._;_8303

5. S.P. #8205

Shadow Prices of GoOds and Re6x_urces in the philippines An Assessment. Erlinda M. Medalla. An Analysis of the Behavior of =he Commercial

in

] l ililil

1981

(P.D.

Policy

Act

1789)

of Social B. Lam-

rand _

(B.P. 391).

in,st

Rosario

G

Financial Reforms and Balance.of4Payrnents Crisis. The Case of the Philippine_ E. Remolona and Mario Lamberte.


PIDS DEVELOPMENT RESEARCH=NEWS IIII IIII

II

III

15

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MARCH-APRIL 1986

IIIIIIIIIII

I L

II

I1111111

IIII

i

SPECIAL PUBLICATIONSAVAILABLE 1. INDUSTRIAL PROMOTION POLICIES IN THE PHILIPPINES Romeo Bautista, John Power and Associates

P125,00

13. MONOGRAPH NO. II1: ECONOMIC EVALUATION OF THE PHILIPPINE ALCOGAS AND COCODI ESEL PROG RAMS

2. SURVEY SEARCH 3, SURVEY SEARCH

Armando Armas and Dennis Joyce Cryde 14. MONOGRAPH NO. IV ASURVEYOFMATERIALS IN INTRODUCTORY ECONOMIC EDUCATION Gerardo P. Sicat'

OF PHILIPPINE I OF PHILIPPINE II

DEVELOPMENT

RE-

F" 30.00

DEVELOPEMNT

RE-

_- 30.00

4. SUMMARIES OF COMPLETED RESEARCH PROJECTS, VOL. I 5, INTEGRATION' PARTICIPATION AND EFFECTIVENESS: AN ANALYSIS OF THE OPERATIONS AND EFFECTS OF FIVE RURAL HEALTH DELlVERY MECHANISMS Ledivina Cari6o and Associates 6, ESSAYS IN DEVELOPMENT ECONOMICS IN HONOR OF HARRY T, OSHIMA

7. HOW PARTICIPATORY VELOPMENT?,

IS PARTICIPATORY

P 20.00

15. MONOGRAPH NO.V, MODELLING THE IMPACT OF SMALL FARM MECHANIZATION [a co-publication venture with the International Rice Research Insitute (IRRI)] 16, MONOGRAPHVI: PHILIPPINE POOR

P25.00

17, MONOGRAPH VII:.PUBLIC POLICY AND THE PHILIPPINE HOUSING MARKET " Edna Angeles .18. MONOGRAPH VIII: REVIEW AND APPR/_ISAL OF THE GOVERNMENT MONETARY AND FISCAL POLICY RESPONSE TO THE 1983-84 BALANCE;OF-PAYMENT CRISIS. Mario B_ Lamber_e, et, al, 19,. MONOGRAPH IX; PRODUCTIVITY GROWTH IN PHILIPPINE MANUFACTURING: RETROSPECT AND FUTURE PROSPECTS

P 55,00 (Paper_ bound) P125.00 (hardbound) DE-

Celia T. Castillo. 8. THE SPATIAL AND URBAN DIMENSIONS OF DEVELOPMENT IN THE PHILIPPINES Ernesto Pernia, Cayetano W. Paderanga,

t_86.25

Richard Hooiey 20, MONOGRAPH X: FORECASTING MONTHLY INFLATION IN THE PHILIPPINES Roberto S. Mariano

P125.00

Victorina Hermoso and Associates 9, ENERGY AND STRUCTURAL CHANGE IN THE ASIA.PACIFIC REGION (PAPERS AND PROCEEDINGS OF THE THIRTEENTH PACIFIC TRADE AND DEVELOPMENT CONFERENCE) 10, PHILIPPINE EMPLOYMENT IN THE SEVENTIES Rosa Linda P. Tidalgo and Emmanuel F. Esguerra 11. MONOGRAPH NO. I: A STUDY OF ENERGY ECONOMY INTERACTION IN THE PHILIPPINES Leander Alejo 12. MONOGRAPH NO. I1: INDUSTRIAL POLICY AND DEVELOPMENT IN THE ASEAN COUNTRIES Romeo Bautista

21, JOURNAL

OF PHILIPPINE DEVELOPMENT

22. E_CONOMIC POLICIES FOR FOREST RESOURCES MANAGEMENT (Summary of the Papers and Proceedingsof the Workshop) edited by Wilfrido

_' 15.00 * P 18,00

23, ECONOMIC RECOVERY AND LONG - RUN GROWTH: AGENDA FOR-.REFORMS VOLUME 1 (MAIN REPORT) Florian A. Alburo, et. al

_32.00

_'35.00

P 40,00

_' 35.00

"\ _ 45,00

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(1981, 1982, 1983, 1984 and 1985 issues)

_P200.00 P_ 75.00

P 50.00

P: 40.00 P 35.00 per copy P 60.00 annual sub_ criptiot]

F" 17,00 _" 50,00


PIDS DEVELQPMENT I

RESEAF_r.,,_ r,tEWS I

16 Jl

lie

l lllinlllmnnll nnlli

MARCH-APRI III

L 1986:

!!

DEVELOPMENT RESEARCH NEWS is a bi-monthly publication of the PHILIPPINE INSTITUTE FOR DEVELOPMENT SI'UDIES (PIDS). It highlights findings and recommendations culled from PIDS-sponsored research or r_lated studies done by other institutions. PIDS seminars, publications, and ongoing and forthcoming projects which are.of interest to policy.makers, planners, administrators, and researchers are also announced. PIDS is a nonstock and nonprofit government research institution engaged ir_long-term policy.oriented researel_ This publication is part of the Institute's program to disseminate information in Order to promote the utilization of research findings. The views and opinions published here are those of the authors and do not necessarily reilect those of the Institute. Inquiries regarding any of the studies contained in this publication, or any of the PIDS papers, as well as any s_gesttions or comments on the publication, are Welcome. Please address aU related correspondence or inquiries to: RESEARCH INFORMATION DEPARTMENT (RID) PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES (PIDS) ROOM 515, NEDA SA MAKATI BUILDING 106 AMORSOLO STREET, LEGASPI VILLAGE, MAKATI, METRO MANILA Entered as Second-Class Mail at the MIA Post Office on October 13, 1983. Private firms and individuals_are charged for delivery and mailing services at an anaual rate oft'35.00 (local) or US$5.00 (foreign). Ji i

Ill

I

Issues in Philippine Food and Nutrition Policy  

I II I III Ill UPDATE: NEWPUBLICATIONS................................................................ 10 COMPLETEDPROJECTS....................

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