June 26, 2024 -The Philippine Statistics Authority (PSA) reported a significant downturn in the Producer Price Index (PPI) for agriculture during the fourth quarter of 2023. This index, which measures the average change over time in the selling prices received by farmers for their products, recorded a notable 3.1% annual decrease. This decline contrasts sharply with the 7.9% increase registered in the third quarter of the same year.
The annual growth rate for the entire year of 2023 settled at 9.6%, according to PSA data. Quarter-on-quarter, the PPI for agriculture also saw a decrease, dropping to 2.8% in the fourth quarter from a minor decline of 0.1% in the third quarter.
Sectoral Breakdown:
Crops: The PPI for crops experienced a 4.0% decrease annually in Q4 2023, marking a downturn from the 12.3% growth observed in the previous quarter. Notably, beans and legumes, fruit vegetables, leafy vegetables, and commercial crops all saw annual declines, contrasting with previous increases.
Livestock and Poultry: Conversely, the PPI for livestock and poultry saw a 2.5% annual increase in the fourth quarter, bouncing back from a decline in the previous quarter. This growth was driven by increased prices in livestock, while poultry prices dropped year-on-year.
Fisheries: The PPI for fisheries continued its decline with a 6.1% annual drop in Q4 2023, a faster rate compared to the previous quarter. This decline was reflected across subsectors including aquaculture, commercial fisheries, inland municipal fisheries, and marine municipal fisheries.
The PSA's findings underscore challenges in the agricultural sector amidst fluctuating prices and economic pressures. These insights are crucial for policymakers and stakeholders in the agriculture industry as they navigate economic planning and interventions aimed at stabilizing agricultural prices.