AGRICULTURE, FISHERY & FORESTRY

AGRICULTURE, FISHERY &

FORESTRY by

Raymundo J. Talento

Director IV

National Statistical Coordination Board

International Workshop on National Accounts

Beijing Friendship Hotel, Beijing, China

June 8-10, 2009

International Workshop “From Data to Accounts: Measuring

Production in National Accounting”. – Beijing

Dir. Raymundo J. Talento 8-10 Jun 2009

Republic of the Philippines


Outline of Presentation

I. Scope and Coverage

II. Data Sources & Data Used

III. Data & Indicators

IV. Estimation Methodology

V. Some issues/concerns






Introduction

Why the need for economic accounting in agriculture?

a. Relative importance of the agricultural sector in most economies b. To monitor the trends of agriculture visà-vis the economic development; c. To determine the impact of various policy measures in agriculture development;






Introduction

Why the need for economic accounting in agriculture?

c. To assess the economic conditions of the population dependent on agriculture; and d. To help policy-makers achieve optimum results in the allocation of scarce natural resources.






Introduction

What are major agriculture indicators from national accounts which help to monitor specific concern?

a. Value Added (production account) b.

Producer’s share of the income from gross value added (generation of income account)






Introduction c. Primary income accruing to agriculture producers (allocation of primary income account) d. Type of output by type of end user (goods & services account) e. Capital formation and its sources of financing






II. Scope and Coverage

A. The scope and coverage of industries are determined according to productive economic activities. This is based on: a. The International Standard Industrial

Classification of All Economic Activities (ISIC).

b. In the Philippines, the Philippine Standard

Classification System (PSIC) w/c is in consonance with the ISIC is adopted to classify economic activities in the national accounts.







B. An Industry is defined as the set of all productive units engaged primarily in the same or similar kinds of productive economic activity.

Productive Units can be: a. enterprise/establishment (nonfin’l in the case of agriculture) b. Government Unit c. Households

______________________

(Other productive units are non-profit institutions)







B. Each player in an Industry may have various form which relates to its:

-kind of ownership

-type of legal organization

-formal or informal







C. For economic productive activities – it is important that the word “activity” is understood. So that . . .

An activity is a process or a combination of actions that results in certain type of goods or services.







Principal Activity – an activity of a producer unit whose value added exceeds that of any other activity carried out within the same unit.

Secondary Activity - an activity carried out within a single producer unit in addition to its principal activity.

Ancillary activity – undertaken to provide support services for the principal &/or secondary activities of the producer; not intended for use outside the producer unit.






In summary, the industries covered under the agriculture, fishery and forestry (ISIC) are those which are engaged in the following economic activities:






A. AGRICULTURE

 covers the production of agricultural crops; the raising of livestock and poultry, including the production of milk and eggs; the provision of agricultural services on a fee or contract basis; and other agricultural activities, including horticulture and landscape gardening such as planting and care of lawns, flower gardens, shade and ornamental trees.






B. FISHERY

 covers commercial and municipal fishing, aquaculture, the gathering of marine products, such as seaweeds, seashells, sponges, pearls, oysters and other shellfish from oceans, seas, lakes, rivers, rice fields, and fish farms, and the provision of fishery services on a fee or contract basis.






C. FORESTRY

 covers logging operation, the gathering of minor forestry products such as firewood, bamboo, and rattan, and such other forestry activities as marking and measuring of timber, planting and conservation, as well as the clearing and afforestation of timber tracts by logging and forestry enterprises and the operation of forest tree nurseries which are considered as ownaccount capital formation.






In the PSNA, we are covering ...

AGRICULTURE

Agricultural

Crops

Livestock and

Milk Production

Palay

Corn

Coconut

Sugarcane

Banana

Carabao

Cattle

Hog

Goat

Dairy

Other Crops- fruits, citrus, fiber, vegetables, etc.




Poultry and Egg

Production

Agri Activities and Services

Chicken

Duck

Chicken Eggs

Duck Eggs

Irrigation

Pesticides

Promoting

Growth

Horticulture

Own Acct Cap

Form




FISHERY

Commercial

Fishing

Using

Boats of 3 gross tons

& more




Municipal Fishing

Using

Boats of less than 3 gross tons

Aquaculture and

Marine Products marine prods in lakes rivers, ponds




FORESTRY

Logging

Afforestation

Gathering of Minor

Forestry Products






II. Sources of Data

1. Censuses of Agriculture & Fishery

2. Production Surveys (for Crops, Livestock,

Poultry, Fishery, Forestry)

3. Cost of Production Surveys

4. Administratve-based data

5. Special studies conducted by concerned institutions






II. Sources of Data (PSNA)

A. Agricultural Crops

1. Bureau of Agricultural Statistics a. Rice & Corn Production Survey (RCS) b. Palay & Corn Stock Survey (PCSS) c. Quarterly/Semestral Reporting of

Other Crops Production Statistics d. Farm Price Survey (FPS)

2. Sugar Regulatory Administration

3. Philippine Coconut Authority







B. Livestock & Poultry

1. Bureau of Agricultural Statistics a. Survey of Commercial Livestock /

Poultry Farms b. Survey of Backyard Livestock /

Poultry Farms c. Survey of Animals Slaughtered in

Abattoirs d. Farm Price Survey (FPS)







C.

Agricultural Activities & Services

1. National Irrigation Administration

2. Fertilizer & Pesticides Authority

3. National Statistics Office







D. Fishery

1. Bureau of Agricultural Statistics a. Survey of Commercial Fishing b. Survey of Municipal Fishing c. Survey of Aquacuture Farms

2. Bureau of Fishery and Aquatic Resources







E. Forestry

1. Forest Management Bureau

2. National Statistics Office

- Monthly Survey of Wholesale Prices






III. Data and Indicators

Agriculture and Fishery

 volume & value in production of agricultural crops, livestock, poultry

 inventory of livestock and poultry

 slaughtered animals on farms and non-farms

 prices received by farmers for agricultural crops, livestock and poultry

 auction prices of livestock and poultry







Agriculture and Fishery

 volume/value of production of commercial & municipal fishing, aquaculture, and other fishery products.

 Cost of production studies on specific crops & fishery products







Forestry

 log production by specie

 volume of minor forest products

 cost of production studies on logging operations

 domestic prices of other forest products

 wholesale price of logs by class







Agricultural Services

 area irrigated

 Irrigation fees

 Production/importation of fertilizers, pesticides

 Agri services rendered by gov ’ t agencies







At current prices: a. Direct Approach

GVA = GO – II b. Use of GVARs

GVA = Qty x Price x GVAR

= Value x GVAR

(GVAR is the ratio of GVA to output; based on recent survey) c. Volume/Value Extrapolation

GVA = previous GVA level x growth rates of the volume/value production







Estimation methodologies for deriving GVA at

constant prices:

 Deflation

• Double

• Single

 Quantity Revaluation

 Extrapolation (Volume change indicator)

 CVM (chain volume measure)






V. Some Issues/Concerns

1. On data

-unavailability, treatment of missing data

2. Updating of parameters used

-some parameters are based on studies intermittently conducted

3. Valuation of output (acctg. for losses & damages)

4. Survey instrument

5. Resources devoted for agricultural statistics






THANK YOU






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