Volume IV, No. 2 MARCH-APRIL 1986 ISSN 0115-9097

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ISSUESIN PHILIPPINEFOOD AND NUTRITIONPOLICYIntroduction 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

The nutritional status of a population economic problem as well. "Moreover, the Plan recognize s that adopted strategies inis one of the most telling indicators of the past were severely lacking and inadequate. More than this, the programs did notwell.being. In the. wake of a protracted address the root cause of the problems in nutritio_economic crisis, it is likely that the nut- As espoused by current nutrition programs of the National Nutrition Councilritional status of vulnerable groups has (NNC), the overriding thrust is to provide short-term or immediate intervention

been adversely affected. Alleviating po- measures to treat identified malnutn'tion cases and, necessarily, (n order to sustain theverty and malnutrition is an important initial progress brought about by these measures, to initiate improvements in foodissue which needs to be addressed by the supply, food prices and faro@ incomes. These are probably the most important fac-new administration. As Mangahas (1984) tots which affect food consumption. Other than the purely economic side of the

I ,points out: nutrition problem, there is_also a need to generate genuine political will and advocacyThe interrelationship between poverty of the ob]ectives of the nutrition programs to push effective implementation in theand malnutrition no longer needs to be community or barangay levels. We need to work at translating avowed commitmentsbelabored. Due to the "seamless web" of local officials to higher budget allocation and personnel contributions to nutrition-which enmeshes the tW° , it is hardly related programs.possible for an alleviation or a worsen- In this issue of the Development Research News (DRN), our guest writer, Dr.ing of one problem to happen without Agnes Quisumbing, delves into the ticklish issues of food and nutrition policies in thean attendan.t alleviation or worsening Philippines. Dr. Quisumbing is currently Assistant Professor at the College of Develop-

of the other. It is in fact quite pragma- ment Economics and Management (CDEM) of the University of the Philippines at Lostic, though imprecise, to define the Ba_os, Zaguna.incidence of poverty in terms of accessto some nutritional norm. h/herever reaUocating resources to most effectively gram (FNP) and issues related to its ira-poverty lines are calculated, the food combat these (nutritional) deficiencies plementation. Then, a review of the nutri_budget is always the ma]or portion, in a manner consistent with the country's tional status data is presented as a means

except in affluent countries, overall development strategy" (Call and of evaluating the effectivity of the foodLevinson, 1971: 165). and nutrition plan. Likewise, policies

In view of the link between poverty This review adopts a policy.oriented outside the purview of the FNP whichand malnutrition and the government's approach to the Philippine nutrition also have nutritional effects arc pointedlimited budgetary resources, the policy- situation. It begins with a brief discussion out. Finally_ some conclusions and policymaker's problem is one of "allocating or of the Philippine Food and Nutrition P_o- recommendations are presented.

CONTENTS: PAGE

ISSUES IN PHILIPPINE FOOD AND NUTRITION POLICY......................................... 1

UPDATE:

NEW PUBLICATIONS ................................................................ 10COMPLETED PROJECTS .............................................................. 11SEMINARS ................................................................ ....... 13

PIDS PUBLICATIONS AVAILABLE ........................................................ 14SPECIAL PUBLICATIONS ............................................................. 15

PIDS DEVELOPMENT RESEARCI-I._EWS 2 MARCH-APRI L 1986

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1. The Philippine Food and Nutrition Ministry of Education, Culture and Sports Philippine National Red Cross (PNRC),Program (MECS), Ministry of Local Governments and MECS. Varying volumes of cc_ .

(MLG), the National Science and Tech- nated foreign food commodities suct/

Although nutrition is a multi-sectoral nology Authority (NSTA) through the as corn-soya milk, non-fat dry lurk, soyconcern, it is often perceived to be limit- Food and Nutrition Research Institute fortified flour, bulgur wheat, milk, floured to the interests of-a narrowly defined (FNRI), Nutrition Foundation of the and rice were availed of by the targetted

'nutrition sector'. This limited perspective Philippines (NFP), Nutrition Center of groups. The program reached 1.56 millioncharacterized nutrition policy in the years the Philippines (NCP) and the Philippine pre-schoolers and 4.95 million school-before the establislnnent of the Philippine Medical Association (PMA). The daily children in 1984, about 99.3% of the tar-

Nutrition Program (PNP) in 1974. It was operations of the NNC are handled by a get. However, the encouraging reports re-only after World War II that central nutri- secretariat headed by an executive garding program outreach must be takention planning was institutionalized, and a director. Technical committees are also with caution. First, there were difficulties.number of nutrition-related agencies es: created on an ad hoc basis depending in reaching severely and moderately

tablished, among them the Philippine Ins- upon issues raised by the Management underweight pre-schoolers as well as preg-titute of Nutrition, the forerunner of the Committee. Local level nutrition councils nant and lactating women. Second, thisFood and Nutrition Research Institute. In at the provincial, municipal,and barangay figure does not reflect possible under- or

the 1960s, different departments of the levels are coordinated by the Ministry of over-targetting. For example, •targets for

government began their own nutrition Local Governments. school feeding included all pupils irres-projects, later coordinated by the Nation- The program's ultimate objective is to pective of nutritional status. On the otheral Coordinating Council on Food • and improve the nutritional status of the hand, pre-school feeding programs target-Nutrition (NCCFN). In 197i, an attempt population, especially for the following ed only 60% to 77% of the possible tar-was made to integrate nutrition and food vulnerable groups: gets. There were, therefore, leakages in

production through the efforts of the Na- (1) infants and pre-schoolers (0-6 the former and undertargetting in thetional Food and Agriculture Council which years) latter.

implemented a four-year Philippine Food (2) school children(7-14years) Food aid is another ticklish issue.and Nutrition Program (PFNP). While this (3) pregnant women and lactating .While self-reliance is a desired goal in the

emphasized the team approach and multi- mothers provision of food assistance, the programagency participation to program planning (4) heavy manual laborers, and itself is highly dependent on foreign d0-i Iand implementation, its coverage was cir- (5) those afflicted with nutrient de. hated food like the PL 480 Title II foodcumscribed by its limited resources. As ficiency diseases such as Vitamin aid program and the World Food Pro-

Florentino et al. (1978) conclude, the A, iron and iodine deficiency gram. The Philippine government doespre-PNP years were a period of organiza- (NNC, 1977). encourage the use of indigenous foodtion.building, piloting of essentiallyhealth The program also adopted four main through the Applied Nutrition Program,and emergency response-oriented nutri- intervention schemes undertaken by dif- but this is only supplementary to thetion interventions, with some attempts at ferent lead agencies. These were in the donated food. The government also in-unified nutrition programming and a little areas of food production, food assistance, curs costs in the inland transportation ofinput into policy work such as the food health protection, and nutrition infomta- the donated food. It has been questionedhnportation work of the Food Commis- tion and education, whether it would have been better if thesion. However, these activities lacked a Food--production is undertaken with government simply use the allocation in.clearly defined policy on nutrition origi- the Ministry of Agriculture and Food as tended for transport costs •in relation tothe availment of donated food, to thenating from the highest leadership, and lead agency. This refers to small scale purchase instead of indigenous commodi.thus suffered from lack of coordination food production activities aimed at pro- ties. However, this move would result inand coverage. * aueing nutritious foods in the backyard, only 11% of the targets being served. As

The govermnent •concretized its corn- schoolyard, and community gardens, of the moment, therefore, reliance on do-mitraent to nutrition with the creation of However, while the primary targets are nated food remains a practical option

the National Nutrition Council (NNC) in families with malnourished pre-schoolers, (NNC, 1986).Health protection, with MOH as the1974 by virtue of P.D. 491. The Council in many instances, such families do not lead agency, consists of activities designedwas mandated to coordinate all nutrition- have the space to undertake food pro- to promote health or to restore the indi-related activities of both the government duction, vidual to good health. The program in-

and private sectors. It took over the task Food assistance is a temporary and chides growth monitoring of 0 to 6Tear-of formulating the integrated PFNP and preventive or rehabilitative supplemental olds, promotion of bteastfeeding and• other weaning foods, immunization, andcoordinating .its implementation. The feeding to targetted vulnerable groups other health-related activities. About 1aCouncil is composed of the ministers or with MSSD as lead agency. The program million pre-schoolers (79% of target) and_the representatives of the Ministry of intends to restore the weight of under- 709,000 pregnant women (50% of target)"

Agriculture and Food (MAF) and the Mi- weight pre-schoolers and school children availed of immunization services in 1984.nlstry of Health (MOIl), who serve as to normal levels and to assist pregnant This is still a very low proportion of theChairman and Vice-chairman, respective- and lactating women to meet their energy target •population. According to the NNC,

ly, and representatives of the Ministry of requirements. Food assistance is also difficulty _s encountered in the monitor-_.Soci_ilServices and Development (MSSD), carried out by the MOH, MAF, the ing of activities, especially in inaccessible

PIDS DEVELOPMENT RESEARCI-LNEWS 3 - MARCH-APRIL 1986Bill I II IIIII III IIIilll

eaS. Furthermore, lack of adequatealth personnel and low degree of com-

munity participation were the most im-

portant reasons for the inability to servemore clients (NNC, 1985b).

Finally, nutrition information and

education is carried on by many agencies,each with specific sectoral targets such asparents, farmers, farm families, andothers. Nutrition information and educa-

tion within the formal school system isundertaken by the MECS.

An evaluation of the accomplishments

of the program can be made by looking atchanges in the nutritional status 6n the

population, which will be discussed in thenext section.

2. Trends in Nutritional StatusNORMA

UNDERWEIGHTOne of the major difffculties involved

in an analysis of nutrition trends is the teae,_o:

absence of comparable nationwide data J [] i,d17over a reasonable time period. Although 51, 4 so 20 1o lo 20 30 ,o so 6o 70 60 [] Moe,r,,,_ythe Food and Nutrition Research Insti- Pe,CENrAOEOFTOTAL _ Sev*r, ly

tute (FNRI) has conducted nutrition ..... r: _..,( .... ,...c( ....

surveys ,from 1957 to 1966, these cover-TRENDS IN DISTRIBUTION OF PRE-SCHOOL CHILDREN

,ed only one region per year; Luzon and BY WEIGHT-FOR-AGE STANDARD, PHILIPPINES, 1978 to 1982

Visayas data are also available for the

period 1975 to 1977. However, only theFNRI nationwide nutrition surveys per-mit a cdmpafison of national data. Themore frequent surveys conducted by theMinistry of Health and the National

Nutrition Council for monitoring pur* similar per capita income levels because provement measured by the the reduction

poses have been short.lived and are not of the effects of the peace and order of percentage of households below 80%strictly comparable due to differences situation on food production, of the food energy RDA, however, the

in sampling and methodology. They are The 1982 surveyrevealed that the rural sector's improvement has been lo-also relatively recent and do not permit average one day per capita nutrient wer compared to the urban sector's. Thea trend analysis, intake was 1808 kcal, only 89% of plight of the rural sector is also indicated

FNRI Food ComumPtion Surveys. the recommended daily allowance of by its higher absolute percentage of house.While the FNRI is currently doing field 2032 kcal per person per day (FNRL holds below the 80% level, and the magni.work for its 1986 survey, the most recent 1984). Protein intake was, on the average, tude of the absolute numbers who cannotdata available for analysis are from 1982. 50.6 grams per day, which was 99.6% fulfill their energy needs.

This data set is generally regarded as the adequate (Table 1). However, the percen- Anthropometrie Surveys. Data sourcesmost representative of nutritional con- tage of households having energy intakes for anthropometric measurements ofditions. The 1982 survey covered 2,880 less than 80% of the required daily allow- pre-school children on the national levelhouseholds in all regions except Region ance (RDA) was about 34%, and those include the two FNRI nutrition surveys,IX and XII of Mindanao, with sfinilar with protein intakes less than 70% made the index Monitoring Project (IMP) of

sampling procedures as the 1978 survey, up 14% of the sample (Table 2). in spite the National Nutrition Council which ranThese two regions were excluded for se- of these nutrient intake inadequacies, the from 1979 to 1981, the on-going Nation-curity reasons, (i.e., the uncertain peace data reveal some improvement between al Nutrition Surveillance System (NNSS)

and order situation). While this is aeons. 1978 and 1982, although the average and the Operation Timbang (OPT)traint that data users have to deal with, level of food energy intake was below the of the Ministry of Health. However,one must recognize the possible bias in NEDA target of 1996 kcal in 1982, a the OPT results have been found to

terms of the understatement of malnutfi- targetted increase of 11% (Table 3). The be statistically unreliable because of over-tion since these regions have been iden- actual percentage increase was only 0.2%. estimation in the number of malnourish.tiffed by other indicators as high poverty This makes one question the feasibility ed children. This was because local staffincident regions. It may not be accurate of realizing some of the targets mention- had the impression that the OPT results_to compare these regions to others at ed in development plans. In terms of im- were to be used to determine the alloca-

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PIDS DEVELOPMENT RESEARCH_WS 4 MARCH-APRIL 1986I I III _ IIII IIII __ IIII

tion of food assistance, thus they selected rural areas. This is a marked shift from design of appropriate intervention strate-

depressed areas for data collection. At the 1978-1982 pattern, where urban areas gies. The data gaps suggest that there• are(

present, most municipalities collect simi. had both higher nutrient adequacies and a deficiencies in the country's monitoringlar data to be used in their action plans, greater degree of improvement. The 1983 system which can be remedied 0nly bybut not as a basis for evaluating national economic crisis seems to have had a the collection of timely and representa-

nutritional •status. greater effect on urban areas, since it hit rive data available to both the public and

To fill'in the need for a short-term the largely urban industrial and service policymakers.nutritional status indicator in between the sections badly. Increased unemploy-

ment as well as the decline in real wages 3. An Evaluation of Program Aeeom-FNRIbaselinesurveys, the NationalNutri- have more severe nutritional effects in plishmentstion Council instituted the Index Moni-

toring Project (IMP)(NNC, 1985a). This the urban areas, where workers rely An evaluation of the Philippine Foodproject gathered weight-for.age data from mostly on wage income for their liveli- and Nutrition Program vis-a-vis its object-index areas. The IMP results are presented hood. In contrast, •most of the rural folk ires is now in order. Florencio (1985_ in

are dependent upon their own produce a review of the Philippine nutrition pro-in Table 4 along with the corresponding for subsistence. Some predominantly gram within a decade of implementation,FNRI data from the 1978 and 1982 sur-

veys. Note that the percentage of severe- rural areas, however, showed up with high agrees that the program has indeed ac-ly, moderately and mildly underweight prevalence of malnutrition, particularly complished a lot in terms of programs,Western Visayas, which has been drasti- administrative mechanisms and nutritionare larger for the IMP surveys, indicating

cally affected by the sugar crisis, awareness at all levels of govermnent andthat sampling procedures are not com-

parable. Nevertheless, an examination The results of two FNRI studies in among many sectors of society. Thereof the trends they reveal is insightful. The Metro Manila (Valdecanas et al., 1984; has also beer_, admittedly, •greaterFNRI data do not indicate a change in Villavieja et al., 1985)also reveal sharp participation of government and private

the proportion of the severely under- reductions in consumption and nutrient entities and the local populace in nutri-weight, but there has been a reduction in intake, particularly in depressed areas, tion planning and implementation, Thethose who are moderately underweight. More data need to be gathered in order to pressing question, however, is whetherIn the IMP's index areas, both the inci- obtain a regional and locational perspect- the program has in fact succeeded in im-

dence of severely and moderately under- ire of the nutrition situation to aid in the proving nutritional status. Here, the evi-

weight has declined, which may be a signthat intervention programs may have ira- TREND IN WEIGHT-FOR-AGE OF UNDERNOURISHEDproved• the nutritional status Of pre- 0-6 YEAR OLD CHILDREN, PHILIPPINESschoolers in index areas, but not neces-

sarily in the nation as a whole. The IMPwas later replaced by the NNSS due to 25non.reporting of data by field personnel.

gThe NNSS data are particularly help: <

ful in assessing the nutritional impact of o 20 __%_ _ "_"the 1983 economic crisis. A comparison _ _ _,_ :_, _,,_

of the two FNRI data points in Table 5 _ _ ...... _;;(1978 and 1982) shows that the p reva- - _ _ ":_'- S_L--Zlence of undernourished children has dec- _ _

mased from 1978 to 1982. The improve. 1=_ 15 _ y__

ment in nutritional status has been re- _ _ . _-.'_' _:_ _._._ c_i•versed after 1982, even after taking into -i "_ _ ,_ :..... ::_':7account differences in the methodology :_-_ .._ ___x.'.. .-_-of FNRI and NNSS surveys. The percen- g _" IO -__ ............

rage of pre.sehoolers below 85% of the _ _ .c-e_ _ .... ,_Esweight.for-height standard increased from = _ _ _ ._-_-_13.•3% in the third quarter of 1984 to _ ® _;_ z_ .... _,_/14.3% in the last • quarter of 1985. This _ _ 5 5_." _ __"_-_.._. __'_'-"_'_ ,_

deterioration was also observable from ._'('_q _'='_z_%_,_ _:_....... ;:-::.:the weight-for-age data. _.:.:t _._................

Disaggregation by rural-urban cate- 0 _,_'/_A _ :_,-_',_ -'_:"gaffes reveals that some areas were more 1978 .1982 1984. 1985severely affected by the economic crisis (FNRI) (FNRI) (NNSS) (NNSS)than other areas. According to weight-basedindicators, urban areas.havea higherinitial prevalence as well as a greater Source: 1978 and 1982 Nationwide Nutrition Surveys, FNRI (1981, 1984)National Nutrition Council, Menogement Information Service_ Oivi_ioa.

degree of deterioration compared to the ,

PIDS DEVELOPMENT RESEARCH NEWS 5 MARCH-APRI L 1986

I I III IIIIII

dence is _rfixed. Citing data from the laaaintainance of the intervention scheme communities where the groups are at-risk;

II_qRI and the NNC, Florencio notes that at a level of intensity adequate to bring and,(2) limits the identification of mea-gre increase in food energy consumption about the desired consequences, as well as sures to those- which fill in deficits ratheris way below the NEDA target.' Targets the lack of logistical support and a strong than preventive measures. The programs

_ for the improvement in nutritional status commitment from the program partici- end up being "mere palliatives in effect, ifof malnourished children were also not pants. Coordination among the diffe- not in intent" (Florencio, 1985: !40).met. She goes on to say that rent ministries is a difficult task, and it Since direct nutrition interventions do

'" . . the question of whether the has often been said that nutrition is not a not tackle the root causes of the problem,

PFNP significantly reduced malnutri- high priority in the sectoral agenda. Igle- their impact may be limited compared totion or not is difficult to answer. First, sias et al. (1985) point out that certain the effect of other measures which are

one has to measure changes in nutri- agencies which have direct policy hupact not traditionally linked with nutrition. Intional status.., and this is no mean on nutrition are excluded from the Na- fairness to the NNC, the Updated 1984-

task. Second, one must attribute the tional Nutrition Council, namely the Na- 1987 Food and Nutrition Plan recognizesobserved change to the program, and tional Food Authority (when "it was in- these intersectoral linkages and is broaderthis is an equally difficult undertaking dependent of the Ministry of Agriculture in perspective than earlier plans. It is for-

It is likely that there were other and Food) and the Ministry of Labor and mulated to address the malnutrition pro-factors which contributed to the re- Employment. The exclusion of these blem in two directions: immediate inter-

duction of the problem and not all of agencies,.a lack of nutrition advocacy and vention designed to treat and rehabilitatethe change couM be attributed to the genuine political will to alleviate real- identified malnourished cases, and long-PFNP...'" nutrition may be behind their refusal to term measures directed towards the

Florencio concludes that "due to the cooperate in schemes which involve the underlying cause of malnutrition (NNC,

complexity of the relationship among the use of agency resources for nutrition pro- 1985c).so many factors which contribute to the grams. 4. General Policies Affecting Nutritionnutritional status of a community, it is At the local and community levels,difficult to build a completely solid analy- studies of nutrition and health policy by General food and agricultural policies

tical basis for attributing any change sole- Iglesias et el. (1985) and Carifio et al. as well as social, cultural, and institu-

to the PFNP" (Florencio, 1985: 139). (1982) stress the need for greater local tional factors are determinants of nutri-fact, the deterioration of nutritional participation in nutrition and health pro- tional status. The general policy environ.status after the 1983 economic crisis can- grams. Community participation becomes ment may have a greater overall effect on

not be blamed on the program since the crucial for effective planning and imple- nutrition than do short-run direct inter-mentation of nutrition programs for only vention schemes. We now turn to some ofdepressed economic conditions led to

cuts in program budgets and decreased with decentralized planning and decision the factors which affect nutritional sta-financial access to food among the poor. making are programs made truly respon- tus, the subject, of discussion of thePerhaps, without the program, the de. sive to local people's needs. Proper Nutrition and Welfare Working Group atterioration could have been worse, feedback and monitoring of nutrition the University of the Philippines at Los

programs is also essential. For example, Bates.That the program is more greatly af- Florencio (1985:140) notes that collec-

fected by economic variables than it can tion of data and submission of reports Food Production and Food Availabi-manipulate these for nutritional object- which remain generally underutilized re- lity. The food sector's performance isires is discernible from the performance duees enthusiasm for the program. "All linked with the general agricultural poli.of the Pilot Food Discount Project. This too often, data gathering is not followed cy environment. While food supply is notproject, conducted for one year (1983- by sufficient analysis and feedback to the prhaaary cause of malnutrition, effect-1984) in depressed barangays of Abra, those involved" and workers perceived ive demand being a more crucial factor,Antique, and South Cotabato, provided that it _ a waste of time. Ideally, the one cannot deny that insufficient foodconsumer price discounts on rice and nutrition data should be made available, supply is a constraint to increases in foodcooking oil. Although the goods were in understandable terms, to the commu, consumption. Although nutrient availabi-

subsidized at the rates of 32% on rice nlty so that program beneficiaries can lity per capita exceeds the required daffyand 50% on cooking oil, the actual subsi- also participate in the monitoring and allowance (RDA), this does not indicatedized purchase price increased subs- evaluation oftheirownprograms, satisfaction of nutritional needs since

tantially because of the economic crisis, Florencio, however, points out that inequality in income distribution has not

particularly the 27% peso devaluation in given the essential interventionist nature been considered. There is a need to targetNovember 1983. The discounted price of the PFNP, the program's accomplish, food production levels with an allowance

pn d to be adjusted upwards as market ments may not be very far from what it of at least 25% over the RDA; 50% mayp ces increased (Garcia, 1985). can accomplish. She argues that approach- be a more reasonable estimate.

Apart from economic factors beyond hag the problem simply in terms Of deft- Although a strong agricultural sector

the program's control, Floreneio attri- eieneies in specific nutrients among Cer- provides a good base for nutritional im-butes the attainment of only modest rain sex-age groups: (1) tends to identify provement, government industrialization

gains between 1978, and 1982 to weak projects that are addressed to the afflict- policy in the postwar era has been gene-• implementation, which did not allow the ed individuals rather than households and rally biased _against agriculture. D_.vid et

PIDS DEVE LOPMENT RESEARCH N EWS 6 MARCH-APRI L 1986II II II I III

FJ_TO¢_ AFFECTING NUTRITIONAL STATUS

Yield effl¢lltmcy, area ecpofldlrlg activities

j for food and nonfood commodlflei

Production • Food avo lla bill ty _--- Dlstri butto_, st0cqge, procur_ programlDlsfrlbutto_ (National, Re_ondl. Local) _---,--Input, output price policies

InforncRIonol frQ_ and aid --'_---_ | _'-- Reeogrce (_wnership policies

Processing, f_ed _q_ld --_ J _ Foreign trade, aid pollcle_L_ Program3 to direr nutrient somp_$1fion

Money In¢o_le Ability fo obtain _ Ih¢Celr_ g_Qrafing poIjciee

Price_ ................ -- income and _source dlstrit_Jtio_Income in kind Available Food ....... Food _Ubsldles, noflons, direct f_dblg

Own production (Household) ...... Price policies (commodity,grouppgenero[)

_ Food supply, demand policies with p¢lce

_ effects.... -- Production f_ home c_lsumpfion, etc.

Intra-household income ___ _ De,Ire to obtain avail- " ]nfra-famlly Income distributiondistribution able food and contrOl changesOutside Influences _Household) ..... Promotion qnd qdvertising

Perceived food needs --

past consumption, fro- _----_ Jditions, social_ cLII- [fu£al, religious

factor_

Health factors Utilization of o_talned food -_ Nutriflo_ educationIntro- hOulshOId fOOd tO meet nutritional need= _---- public health programs

• distribution .... (HOU_liho)d _lnd individuaO _-- Water improvement projectsChild core ....... _- Supply projects,vitamins_ mine_al_

intro-household food ---- ..... -- _-_---_ Disedse prevention and cureChild care and breast feeditlg program_procemslng

Food characteristics and .........

composition

Time constraint3 ---_-- ........

Nutritional statue

(individual)

Source: Pihstrup- Andersen (1981) . . d

Source: Pinstrup - Andersen, P. 1981. Nutritional Consequences of Agricultural Products: Conceptual Relationships and Assess-ment Approaches. World Bank Staff Working Papers No. 456. Washington, D.C. international Bank for Reconstructionand Development.

as. (1983) show that government price Another related issue is food aid. A1- may have favorable distributional_ conse-intervention policies in agriculture have though food aid lowers the consumer cost quences, provided the supply of a stabkserved to weaken incentives to agricultu- of food, lowered prices may be a dis- food consumed by low-income groups i(

ral production, even if sonaewhat offset incentive to domestic production. In increased.by non-price interventions such as irri- addition, food aid may actually take the Finally, at the talon level, the particu-gation and infrastructure provision. If in- form of cheap food importation, which lar conditions associated with croppingcentives to agricultural production are di- may add to balance-of-payments pres- systems-ownership patterns, seasonality,minished, and if returns to crops which sures and budget deficits. _ crop mix and tenure relations-can have

significant effects on nutritional status.provide income and employment to small The consensus appears to be that there This is a relatively unexplored field; thefamaers (e.g., rice, coconut, and sugar) a:;e is no substitute for increased agriculturalreduced, there could be potential negative study of cropping system in Solana,nutritional effects. Reduced agricultural productivity which can be positively at- Cagayan is one of the few Philippine stu-

production would put pressure on food fected by agricultural research and exten- dies undertaken to date (Paris and Un.prices,'employment and incomes; reduced sion. Plant breeding programs, for exam- nevehr; 1985).incomes would affect the purchasing po- ple, can have two significant effects on Household Food Acquisition Power.wet of low-income groups, nutrition: (1) by improving yields, im- The household's ability to purchase food

Commodity specialization may also proved varieties make possible a supply is affected by incomes in cash and in kind,have its nutritional consequences. Perhaps shift which lowers the price of the food together with prices of food and non-food

the sugar crisis in Negros is the most dra- commodity to consumers; and (2) by ira-. commodities. Household income appearsmatic example of the dangers of cash proving the nutritional content of food to be the most significant determinantcrop specialization of farmers at subsis- commodities through genetic manipula- of nutritional status, and, in the long run,fence-level incomes. The vulnerability of tion and indigenous varieties or intro- improvements of the nutritional status ofthe specialized low-income producer's duction of new ones. According to at-risk groups will depend on sustainednutritional status to market demand Mendoza (1985), plant breeding in the income increases. As Regalado and Gon-fluctuations in the absence of adequate Philippines has been focused mainly on zales point out, an income transfer (shortinsurance schemes has often •been used as inaproving crop yields, although the best term) may be effective only as a short-

an argument against shifting from food varieties are analyzed for their nutritional run intervention. Considering the highly

to cash crops. Although cash cropping content. Thus, improvement iJ1 nutri- skewed distribution of income, one ;1may yield higher incomes, the variability tional status is an indirect effect. As far fective means of improving nutritionof that income stream is also a key con- as commodity priorities in research and the poor is to alter the society's incomesideration at low income levels. Diversi- extension are concerned, studies by distribution, which calls for greater redis-fication seems to be a more sensible Pinstrup-Andersen et as. (1976)and Qui- tributive measures-not only income

policy than concentration in a high-risk, sumbing (1985) suggest that the nutri- transfers, but also asset transfers. In thehigh-return cash crop. tional effects of agricultural supply shifts Philippine context, this would include an

I II II II I .........

PIDS DEVELOPMENT RESEARCFJ_IEWS 7 MARCH-APRIL 1986III I __ I H II I r IIIIIH II I I

Table 1. Mean One-Day Per Capita Nutrient Intake and Present Adequacy: Philippines, byUrbanization and Island group, 1982.

BY URBANIZATION BY ISLAND GROUP

Nutrient and Philippines All Urban Metro Other Rural Luzon Visayas MindauaoParticulars Manila Urban

EnergyIntake (kcal) 1808 1831 1797 1852 1797 1814 1745 1906RDA 2032 2038 2048 2032 2029 2032 2030 2035

Percent Adequacy 89.0 89.8 87.7 91.3 88.6 89.3 86.0 93.7

Protein

Intake (g) 50.6 53.4 51.9 54.2 49.3 50.1 51.3 51.6RDA 50.8 51.4 51.5 51.3 50.5 50.8 50.8 50.7

Percent Adequacy 99.6 103.9 100.8 105.9 97.6 98.6 101..0 101.8

Iron

Intake (mg.) 10.8 11.4 10.6 12.0 10.5 10.8 10.7 11.0RDA 11.8 12.1 12.4 12.0 11.6 11.8 11.7 11..7

Percent Adequacy 91.5 94.2 85.5 100.0 90.5 91.5 91.4 94.0

Source: FNRI, 1984.

L

L'

Table 2. Comparison of percentage distribution of households by levels of energy and proteinadequacy, by urbanization and island group, Philippines, 1978 and 1982.

BY URBANIZATION BY ISLAND GROUP

NUTRIENT/LEVEL Philippines Urban Rural Luzon Visayas MindanaoOF ADEQUACY 1

1978 1982 1978 1982 1978 1982 1978 1982 1978 1982 1978 1982

Energy2

Less than 80% 38.4 33.6 38.7 32.1 38.2 34.3 34.3 33.1 46.2 38.0 41.0 27.180-100% 39.1 44.2 37.0 44.4 40.1 44.3 39.9 44.8 35.6 43.8 43.0 42.5100% and over 22.5 22.1 24.3 23.5 21.7 21.4 25.9 22.0 18.2 18.2 16.0 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

Protein 3

Less than 70% 16.4 14.2 12.0 11.1 18.5 15.6 16.0 14.9 16.5 15.3 17.8 11.170-119% 55:6 61.5 54.5 59.1 56.2 62.6 53.7 62.3 57.7 61.5 60.2 58.4120% and over 18.0 24.3 33.5 29.6 25.3 21.6 30.3 23.3 25.8 23.5 22.0 30.3

Total 100.0 100.0 100.0 99.8 100.0 99.8 100.0 100.0 100.0 100.0 100.0 99.8

1percent of nutrient intake over recommendedallowance2Less than 80%energy adequacylevelis an arbitrary cut-off point set as marginallevelof energy adequacybased on the coefficient of

variationof energyexpenditure from variousoccupationalgroups which is about 20%.3Lessthan 70%protein adequacylevel - 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 L 1986III III I

point of view. This may arise becausehouseholds do not perceive their ow_

Table 3. Comparison of Mean One-Day Per Capita Nutrient Intake nutrition deprivation, and thus do nor'-Philippines, 1978 and 1982. take steps to improve their nutritional

status (Gonzales-Intal, 1985). Another1978 1982 Increase factor is the lack of knowledge regard-

Nutrients/Units (Decrease) hag food and nutrition needs, wrong in-Intake % formation received from outside the

, household, the promotion of non-

Energy, kcal 1804 1808 0.2 nutritious food, and prevailing culturalProtein, g 48.8 50.6 5.4 factors affecting food consumption. ThisIron, mg 10.6 10.8 1.9 is ctearly an area for hnproved nutritionCalcium, 0.44 0.45 2.3 information and education.

Thiamine, mg 0.73 0.74 1.4 Individual Food Utilization. Utfliza-Riboflavin, mg 0.73 0.58 9.4 tion at the level of the individual is affect-

Niacin, mg 15.3 16.4 7.2 ed by intra-household food distributionAscorbic acid, ng 66.8 16.6 (7.8) and the individual's health status. Again,Fat, g 28 .30 7.1 this is an area for nutrition infomaationCarbohydrates 332 327 (1.5) and education as well as the presence of

complementary social infrastructure in-Source: FNRI, 19'82 Nationwide Nutrition Survey. puts for health, sanitation and education.

The scope for nutrition policy, whenviewed from an interdisciplinary perspect-

expanded• agrarian reform program. A specific targetting to maintain cost- ive, is very large. With that in mind, somelong-term strategy to reduce poverty and effectiveness. The macroeconomic conse- general recommendations for policy-generate overall income improvement will quences of food subsidy polici6s also de- makers to consider can be made.have to involve distribution-oriented pat- serve consideration, particularly their (1) There is no substitute for distrib._

terns of economic growth, effects on the trade and budget deficits, tion-oriented patterns of "economi_Food price policy is also used to affect Household's Tastes and Preferences. growth to solve the problem of malnutri.

nutritional intakes, although food subsi- The household's decisions regarding the tion. Poverty eradication through in-

dies need to be applied judiciously using amount and types of food consumed are creased incomes and a more equitable dis-both commodity and income-group- often not optimal from a nutritional tribution of income must be the target of

Table 4. 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 Normal Mildly Moderately Severely_' weighed & overweight underweight underweight underweight

FNRI2

1978' 3274 31.1 46.6 20.6 1.6

1982 3634 31.3 51.5 15.6 1.6

IMP3

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

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 in their respective years.

:}Based on consolidated xeports from randomly selected index areas set by NNC for monitoring purposes.

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

I II III II IIII Illlllll

PIDS DEVELOPMENT RESEARCH_EWS 9 MARCH- APRIL 1986IIIIIII I I I II III

Cable 5. Comparison of trends in weight-for-height, height-for-age, and weight-for-ageof undernourished 0-6 year old children, Philippines, FNRI and NNSS Results. "

I

No. of Weight-for Height Height-for_Age Weight-for-Age

Year and Source Subjects _85% 985% <90% _90% _75% _>75%

1978 (FNRI) 3400 13.8 86.2 n.a. 22.2 77.8

1982 (FNRI) 3615 9.5 90.5 20.6 79.4 17.2 82.8

1984 (NNSS) 3440 13.3 86.7 25.2 74.8 20.5 79.5

1985 (NNSS) 3243 14.3 85.7 24.8 75.2 22.0 78.0

Source: 1978and 1982 NationwideNutrition Surveys,FNRI (1981, 1984)NationalNutrition Council, ManagementInformationServicesDivision.

ecpnolnic policy. REFERENCES 1984. Second Nationwide Nutrition(2) There must be greater coordina- Survey, Philippines, 1982.

tion and integration of nutrition efforts Call, D.L and F.J. Levinson. 1971. A sys-tematic approach to nutrition inter- 1981. First Nationwide

among the various branches of govern- vention programs. Nutrition, National Nutrition Survey, Philippines 1978.ment. This presupposes a stronger com-mitment to nutrition as an objective Development and Planning. Cambridge, Garcia, M,I_ 1985. Preliminary results ofof development policy. In this scheme, Mass: MIT Press. the food discount experiment in the

Philippines. Memo submitted to theievery ministry can integrate nutrition Carifio, LV., et al. 1982. Integration, Par- National Nutrition Council, January

'within its overall function, while the ticipation and Effectiveness: An Ana- 15, 1985.National Nutrition Council can ex- lysis of the Operations and Effects ofpand its coordinative role. Perhaps, the Five Rural Health Delivery Mecha- Gonzalez-Intal, A.M. 1985. Social andCouncil can be raised to the level of a nisms. Makati, Metro Manila: Philip- psychological aspects of food con-NEDA committee to increase its ability pine Institute for Development Stu- sumption in the Philippines: Problemsto implement multi-sectoral policies. The dies. and strategies for change. Center forcouncil can be assisted in its functions Policy and Development Studies Work-

by -a strong teclmical and research corn- David, C.C. 1983. Economic policies and ing Paper No. 85-16. University of theponent to provide the bases for policy Philippine agriculture. Paper presented Philippines at Los Baflos.

recommendations, at the Workshop on the Impact of Iglesias, G. U., A.G. Pacho,,M.F.S. Villa-(3) Government must be willing to Economic Policies on Agiicultural De- mejor et al. 1985. Severe Malnutrition

undertake short-runinterventions address- velopment, Tagaytay City, March 25- of Filipino Preschool Children: Aed to nutritionally vulnerable groups, for 26, 1983. Sponsored by the Phifippineone cannot wait for economic growth's Institute for Development Studies. Policy Review (3 vols.)Manila: PolicyStudies Program, College ofiPublic Ad-

benefits to reach them in the short-run. Florencio, C.?L 1985. A Decade of the ministration, University of the Philip-These are the groups for whom imme- Philippine Food and Nutrition Pro- pines.diate action may be crucial to their sur- gram. In Nutrition as a Focus of Deve- Mangahas, M. 1984. Nutrition and thevival, lopment Policies and Programs in the Political Economy of Market Controls.

(z]) Finally, effective linplementation Philippines. Diliman, Quezon City: M. Mangahas, et al. The Distributionalof nutrition policies entails greater corn- College of Home Economics. (Mimeo). Impact of Food Policy on Nutrition:munity participation in the design and A Political Economy Study. Reportimplementation of programs. This means Florentino, i_., C. Adorna and F. Solon. submitted to the International Food'

more decentralized planning and, even- 1978; Interface problems between Poficy Research Institute. Pasig, Metro '-tually, greater self.reliance as commu- nutrition policy and its implementa- Manila: Development Academy of the

_vtities become both more financially and tion: A Philippine case study. Paper Philippines._perationally responsible for their own presented at the Conference of Inter-programs, face Problems Between Nutrition Mendoza, E.M.T. 1985. 'An assessment of

the contribution of plant breeding pro-Policy and its Implementation. Cam-

SUBSCRIBE TO THE bridge, Mass., Massachusetts Institute grams to nutrition in the Philippines.DEVELOPMENT RESEARCH of Technology, November 5-8, 1978. Center for Policy and Development

NEWS NOW Studies Working Paper 85-17. Univer-Food and Nutrition Research Institute. sity of the Philippines at Los Bafios.._.

PIDS DEVELOPMENT RESEARCI-_b_WS 10 MARCH-APRIL 1986....... I III I III II

National Nutiition Council. 1986. Poli-UPDATE ment are also investigated in the paper.cies and Programs for Groups Vulne- _ Moreover, the paper delves into tile conltable to Malnutrition. (Draft). sistency by which .these measures are

1985a. Preliminary Reports, adopted• vis-¥vis the policies that are

Index Monitoring Project and National n-------_ _ enunciated by government.Nutrition Surveillance System. (Per- 1[ f'll_,k--_ _,_k

sonalCommunication). _ Monograph Series No. 9: PRODUCTI-

VITY GROWTH IN PHILIPPINE MANU-1985b. Annual Report, 1984. FACTURING: RETROSPECT AND

1985c. 1984-87 Food and FUTURE PROSPECTSNutrition Plan. by Richard Hooley, Professor of Eco-

nomic's, University of l_'ttsburgh1977. The Philippine Nutri- and U.ND.P. Consultant to the

tion Program, 1977-1982. PIDS

Pads, T. R. and LJ. Unnevehr. The ef- NEWPUBLICATIONSfects of agricultural production on The study measures the rate of out-

nutrition: A case study of three villages Monograph Series No. 7: PUBLIC put growth for the manufacturing sec-in Solana, Cagayar/. Paper presented at POLICY AND THE PHILIPPINE HOUS- tot as a whole, as well as a cross-the Workshop on Nutrition and Wel- ING MARKET section of several industries. Constructedfare, University of the Philippines at on a consistent basis over a twenty-Los Bafios, October4-5, 1985. by Edna AngelesReyes five year period, an in-depth analysis

Research Fellow

Pinstrup-Andersen, P., N.H. de Londono Philippine Institute for is made of causal factors behind product-ivity change, along with the process ofand E.J. Hoover. i976. The impact Development Studies diffusion of productivity gains. In addi-of increasing food supply on human don, the study also determines the effectnutrition: Some implications for corn- Tile study analyzes the major as- of increased use of traditional inputs onmodity priorities in agricultural re- pects of supply and demand for the one hand, and technological changesearch and policy. American Journal housing, and in the process, identifies on the other hand, in the growth perform-of Agricultural EconolniCS.58: 131- specific housing problems and their race of manufacturing industries. At the142. underlying causes. A historical des- latter part, the study draws attention to

cription of the housing situation is pre- the policies appropriate for improving theQuisumbing, M.A.R. 1985. Estimating sented and this brings to the fore the contribution of productivity change to

the distributional impact of food mar- affordability of households and housing industrial growth. From the estimatesket intervention policies on nutrition, cost. Likewise, there is an attempt to es-Unpublished Ph.D. Dissertation, School timate the income and price elasticities gathered of industry performance, an• assessment is made of the impact ofof Economics, University of the Philip- of housing demand. Some of the housing fiscal, monetary and industrializationpines, policies and progrmns undertaken by the policies on the efficiency of manufac-

Regalado, B.M. and LA. Gonzalez, 1985. government are reviewed and evaluated, turing firms and its implications on theEconomic detelaninants of 'nutrition. in particular, the National Shelter Pro- macro level.

Center for Policy and Development grain.

Studies Working Paper No. 85-13. uni- Monograph Series No. 8: A REVIEW Monograph Series No. 10:versity of the Philippines at Los Bafios. AND APPRAISAL OF THE GOVERN- FORECASTING MONTHLY INFLA-

MENT RESPONSE TO THE 1983-84 TION IN THE PHILIPPINESValdecanas, O.C., R.F. Florentino, BALANCE OF PAYMENTS CRISIS by Roberto S. Mariano

M.R.A. Pedro, LM. Vicente and S.S. Visiting Consultant to the PhilippineManinang. 1984. Nutritional Patterns by Mario Lamberte, et. al.

and Adjustment/ to the Economic Research Fellow Institute for Development StudiesDeviation of 1983-84 Among Selected Philippine Institute forHouseholds in Metro Manila. Food and Development Studies

Nutrition Research Institute. Mono- The study attempts to evaluate the The paper develops a statisticalgraph Series 1. various stabilization measures adopted by procedure for forecasting inflation rates,

Villavieja, G.M., T.E. Valerio, C.M No- the government in response to the 1983- on a monthly basis, as measured from,,nes, C.M. Cerdena, tLM. Abaya, and 84 crisis. A comprehensive examination is fluctuations in the consumer price indexlJ.P. Boqueza."1985. Assessment of the made on measures that aim to improve (CPI) for the entire Philippines_ The fore-Nutritional Situation of an Urban Re- the pay.merits position, manage bud- casting procedure's main ingredientis a re-

gion in a State of Rapid Economic get deficits and the growth of reserve gression equation which explains monthlyElux. National Science and Technolo- money, including price and wage adjust- CPI levels in terms of: a) CPI past values;

gy Authority, Food and Nutrition Re- ments. How these measures have affected b) the average wholesale posted price ofsearch Institute. inflation, outpu t and national employ- petroleum products as detennined b_y

II II IIII II II Ill III

PIDS DEVELOPMENT RESEARCH NEWS 11 MARCH-APRIL 1986

IIll 11the Board of Energy; c) a tariff-adjustea of the reforms on the state of health of veloplnent (U.S.A.I.D.), culminated in a

POrt price index for nonJ'uel hnports the system are explored in the study. The seminar heltl last February 25, 1986 atan export price index, both of which leading question is to what extent did the the Continuing Education Center,also at

are peso-denominated; d) a U.S. dollar reforms contribute to the balance of pay- the University of the Philippines in Losblack market premium; e) total domestic ments crisis. There is also discussion on Bafios.liquidity relative to real output; f) the le- how the reforms weaken the banking sys-gislated minimum wage and cost-of-living tem's ability to weather the external cri- STRUCTURAL TRANSFORMATION INallowance; g) changes in the price ceilings sis, and if so to what extent. PHILIPPINE LIVESTOCK AND CORNof food items imposed by the Price Stabi- MARKETSlization Council; and b) the effective rate JOURNAL OF PHILIPPINE DEVELOP- - by Gerald Nelson and Laurian

on 91-day treasury bills. MENT, NO. 22, SECOND SEMESTER Unnevehr

ECONOMIC POLICIES FOR FOREST 1985, VOL. XII NO. 2 Workshop Paper Series No. 86-1RESOURCES MANAGEMENT The structural transformation in the

by 14_lfrido Cruz, editor This journal issue features select at- livestock industry and in the inputs into

Executive Director, Center for tides related to "Australia-Philippine animal production has two components:Policy and Development Studies Trade Relations" by Hal Hill; "The Aus- 1) the changes in meat production tech-University of the Philippines at Los tralian System of Tariff Preferences: An nology; and 2) the changes in feed ingre-Ba_os Evaluation of its Employment Effects dient production technology and market-

in the Context of Australia-ASEAN Lug. Moreover, .the re_ulting rapid growthThe report presents an overview Of Trade¢' by Jose L. Tongzon; "The Recent in demand for animal feed requires either

Philippine forestry and introduces some Recession and Rising Protectionism m technological change in domestic pro-of the key economic concepts of re- Developed Countries: Some Thoughts on duction of feed ingredients, or an increasesource use and management. After the ASEAN Economies" by Romeo M. in the use of imported ingredients, orsetting down the research framework Bautista;.Mario B. Lamberte's "Financial both. Since traditional production sys-for forest resource management and Liberalization: What Have We Learnt?;" terns are typically unable to respond toland allocation, the report presents "The Economic and Social hnpact Aria- the growth in demand for inputs, increas-the summaries of the papers, together lysis of an Upland Development Project ed meat availability must arise from

iwith the discussions that followed, in Nueva Ecija, Philippines" by Marian change in production methods, or in ira-as highlighted in a PIDS seminar-work- Segura-delos Angeles; "The Macroecono- ports. Feed ingredients that are used asshop on "Economic Policy'for Forest Re- mic Policy Environment of Philippine food are usually inferior staples con-source_ Management," held in February Agricultural Performance" by Ponciano sumed on the farm so that a shift infeed

1984. The four major topics identified S. Intal, Jr. and finally, "Electrifica- marketing patterns normally accompaniesin these papers relate to land u_e and fion and Regional Economic Develop- this structural transformation.

commercial forest managelnent resour- ment in the Philippines," by P.C. Frede- The paper outlines a model of structu-ces; macro-economic policies affecting fo- riksen, ral change in livestock-feed industries andrestry; upland development anti the reviews estimates of the supply and de-

shifting cultivation problem;and lastly COMPLETED mand determinants. Likewise, it pro-soil erosion and watershed management.• vides some analysis of how government

PROJECT5 policy has affected the feed-livestock sec-FINANCIAL REFORMS AND THE tor. It also provides some preliminary sug-BALANCE-OF-PAYMENTS CRISIS: The following studies form part of a gestions on how government can ease the

rile CASE OF THE PHILIPPINES, major workshop on the Livestock-Feed- adjustment costs of the transformation,1980-83 StaffPaper Series No. 86-02 stuffs sector of the Philippine economy as well as research directions.by Eli Remolona and Mario B. Lain- under the Agricultural Policy Studies Pro-

berte. The former is an Assistant gram of the Center for Policy and Deve- CORN PRODUCTION -PROGRAM INProfessor of the School of Econo- lopment Studies (CPDS). The Center is THE PHILIPPINES: PROBLEMS ANDmics, University of the Philippines an independent policy research center lo- PROSPECTS

while the latter is a Research Fel- cated at the University of the Philippines- by Generoso Octavio and Manuellow at the Philippine Institute for in Los Bafios. The seven (7)state-of-the Lantin

Development Studies. art review papers focus on supply Assistant Professor, Department ofconstraints, the policy issues affecting Agricultural Economics and Chair-

The l_hilippines introduced a set the livestock and feedstuff industry, man, Department of Agronomy,

tof financial reforms in 1981 prima- including marketing and distribution as- respectively, U.P LosBa_os._ly aimed at liberalizing the finan- pects of the sector. The project, which Workshop Paper Series No. 86-2cial system. Two years later, a grave was jointly sponsored by the Center for

payments crisis intervened and cut short Policy and Development Studies, the The paper reviews and analyzes thethe momentum to successfully implement Philippine institute for Development country's corn production system and thethese reforms on the financial system. Studies (PIDS), Winrock International problems encountered by cornproductionSpecific questions concerning the impact and the U.S. Agency for International De- programs. By determining the private and

Illl I Illlll IIll Ill I I

i

PIDS DEVELOPMENT RESEARCH.,,_NEWS 12 MARCH-APRIL 1986IIIII Hill[

social profitabilities of corn productio_l THE EFFECT O17GOVERNMENT 1) cost is not competitive; and 2) lack

the study supports the claim that the POLICIES ON THE PHILIPPINE of volume. The study further proposes_lcountry has high comparative advantage LIVESTOCK AND FEEDS INDUSTRIES that ideas for research must be geared-

in corn production. Experts in the field towards utilization of crop residues

agree that corn as a product, either .in by Liborio S. Cabanilla to provide the animals a regular supplythe form of human food, animal feed Assistant Professor, of feeds throughout the year. Like-or raw material for industry, can be consi- Department of Economics wise, researches must entertain alternative

dered as a most valuable cereal grain. College of Development Economics inputs that are likely to be more afford-

Hence, the study recommends that other and Management, U.P. Los Bafios able to farmers. Beyond chemical andthan field extension services, further Workshop Paper Series No. 86-4 biological evaluations, studies should putfinancial assistance like credit programs more emphasis on lowering the cost ofand incentives be granted to corn pro- production and processing. Examples of

ducers. The paper outlines the impact of studies that must be given support are ingovernment policies on the feeds- the areas of cowpea production; earth-

CORN MARKETING IN THE PHILIP- livestock industries by quantifying. the worm and maggot meal production; forti-PINES: AN OVERVIEWANDAREVIEW effect of policies on feeds and meat fication of cassava and sweet potato mealOF TRADE AND PRICING POLICIES prices. In its findings, the variables to equal the feeding value of corn; and

that have had the most significant effects lastly', the low cost drying process.by lsabelita Pabuayon The results of these studies must be or-on the domestic prices of feeds and meat .....

Assistant P_ofessor, Department of were the exchange rate, tariff and trade ganized and. the information extended to

Agricultural Economics, .College of policies. Iin addition, these variables have farmers. Piloting may be advised atDevelopment Economics and Man- als0 affected the competitiveness o.f live- farm levels in order to influence farmers

agement, U.P. Los Bagos. stock producers in the world market. For to adopt the technology.Workshop Paper Series No. 86-3

one, the overvalued exchange rate has

The study provides an overview of the made the Philippines a net importer of IMPROVEMENT OF PHILIPPINE LIVE-corn marketing system in the Philippines feeds and has stifled the development of STOCK PRODUCTIVITY THROUGHwith emphasis on the structural changes livestock exports, particularly hogs. Also, BREEDING: SOME POLICY ISSUESthat occurred since the 1970s. It reviews the implicit taxation on feeds have re- by Cecilio Arboleda, et al. i

government policies and their effects suited in high domestic feeds prices, thus Director, Institute of Animalon domestic corn trade and prices, reducing the competitiveness of domestic Science U.P. Los Ba_os

Important issues in corn marketing and . livestock producers. Workshop Paper Series No. 86-6distribution are identified and it is In the future, pricing policy on feed

exactly on these areas that future re- substitutes like cassava, and.other protein In the area of livestock Production,search is recommended, supplements will play an important role the Philippines has pursued a policy of

on the long=run prospects of utilizing importing breeding animals from otherSince the 1970s, the domestic pro- non-conventional feedstuffs. 'Likewise, countries and has practically abandoned

duction of corn has lagged behind the ra-the growth of the ruminant sector will all efforts to develop local breeders. In

pidly expanding needs due to the steady depend, to a large extent, on the avail- recent studies, however, one of the mostgrowth in demand for poultry and live- ability of sl_aall farm credit programs and widely contested policy issues calls forstock feeds. This has, in turn, resulted to available market infrastructure: On the limiting stock .importation, since most

greater demand for corn imports. In. other hand, the non-ruminant sector's local species have enough genetic diver-

terms of aggregate corn use, corn for food growth will depend on the price of feeds sity, to render the contribution of im-use declined while feed use became in- because of the large component of feeds ports marginal at best. This is particularlycreasingly important with the rise in the cost in the total cost production, true for pigs and chickens. Hence, a po-markets of commercial poultry .and live- licy of severely limiting breeding stock

stock production. POTENTIAL FEED SUBSTITUTES FOR importations would benefit local breedersThe marketing and distribution system" LIVESTOCK AND POULTRY AND .and the animal industry as a whole, pro-

of corn is characterized by intraregional THEIR ECONOMIC VIABILITY vided that local breeding efforts are pro-

and interregional flows and trade chan- by Perla Lopez perly supported .by the government andnels. Given the shift in domestic demand Professor, Institute of Animal seriously executed by the private sector.

In line with this alternative , it may beto greater feed use, a major concern is Science, U.P. Los Ba_oshow to achieve a more efficient corn mar- Workshop Paper Series No. 86-5 well to establish animal breeding researchketing and distribution system. In so far 11ae study starts with the 0bserva- centers to develop breeds and varieties of|animals to provide the livestock industry_as government's role is concerned, the don that inadequate nutrition is an with superiorbreeds.provision of relevant market information important limitation to livestock pro-

. systems and adequate infrastructure, duction in tropical countries. Moreover,particularly transport_ is deemed support- inspite of numerous studies on feedive of these goals and is beneficial to the substitutes, nothing can be recommended

:whole .agricultural sector as well. for immediate application for two reasons:III III III II

PIDS DEVELOPMENT RESEARC_EwS' ::: : : 13 : MARCH-APRIL 1986

II IH I HIIIIIIII H _ .... II ...........111111:III'N_ '1 I'lli 'illll;l IAM ALFEED ........: cussions :tl_ai::foiiowed br0ught to attet_- rep:resentat:ives f_om the Board of Invest_

....... tion: the :probl6ms:::encounteted by the merits, the Mi_.istry of Trade and theoY:Albert:LadoresandRegaladoZamOra: fishi'ries industry due to prohibit:ire ta: NEDA.

.AS:gistant tiff: restrictions, :At ttte same time, possi: i :::: : :Animal Science i bifitie s for greate:r market potemitd inl::i_o¢k, ssor, Asian:dnstituteof34anage= certaiii fish products like Canned tuna, .... " ...... _ _,.]O1.N'I UNICEI_-PIDS SEMINAR ON

.............. ADJUSTMENT WITH A HUMAN FACE: ment;respective6, ..... : raw:shrimps:and prawns were, cited. Most IWorlcshopPaperSeriesNO: were staff members : i ....

• Tl*e :first j0i:at setNnar for the: .......: : : of tiie institute. ....... i

,_ year was the UNICEF-PIDS seminarL THE IMPACTOF _ "Ad}ust_lent w:ith a .::feed and : aiia/yzes 't]ie pros: ON :: BOI Human Face,"

:: pects of feed substitutes like cassava: INCENTIVES ON:::THE RATE OF on .held April 4, 1986 at the Metro Club

ACTOR.:PRK:ES AND RE ..... iI; Makati: The seminar :highlightedarid Sweet po[at0: Be:ing a major seg_ RETURN;:Fment of tile:: livestock and poulti:v i)_:. ,1:LATWEEACTOR USE tke findilags and cotM.usions of a

....dustlT in {'.lie Plffllppines;i the: criEcaJ : paper done by Dr. Richa:rd Jo:lly, former

animal; feed. industry April, a semhiar l)irector of the Institute for Developmen¢and the: c:ritical variables for the i:t;,, "The:Impact: of BOI Incentives: Studies of the University of Sussex, and

dustry are:looked krto: Va*iouS sttggest:: i otll iRatei0f R.eturia:, 'Factor Prices aadl current:!y Dept_ty Executive Director ofions iire offered by tl_e au.tl.ors regar:cing: : Relative: I FaCtor use: A Comparative the ETNICEF. The event brought together

these:::ln:the:former, gove_men* initiative J_mlysis h_centives Uilder the Ore- resource persolls t'rom various fields of thetO: hold:regular consultations anoiig pro= i:i nibx£ [nveStinents Code of ]981 CPI_ sociat scie_ces. Panel disc_._ssantsincluded

sup'ply 1eve.... s will: have :1789)and the h'westments Incentive Poli- Dr. S3_'lwa"Guerrero_ Dean of the Instittlte

to be _ndertakenl In ihe latter, the private ey Act (B P:.391)" was held at the NEDA of Socia:l Work and Co nmurfit:y Devel.op_sector' s participati:Gi is taken: t0 be of Buikling lit Makati. The paper prese_nted me._at.(ISWCD) and Dr: Florian Alburo ofgreat import:.: There is a ge_ieral Consen:: : wasautho]ed, by_Dr_ R0sario O Mana.sa_L tlle School of Economics, both of thesus aniong leaders in th.e i_dt_stry tha_: a:ReSearcb. Fellow of the Ptfilippine Insti_ U_]iversity of tlae Philippines. The

•_6,rther progress in the area willl dbpeitd:: tUte: for Development Studies. Once UNICEF Resident Representative , Dr."l_argely::on :the availability 0f raw ma.t:e:: again;the discussion reiterated tile idea: Pratima Kale introduced the guest speak.

rials: and::fl_e: pricing of: these; especially of letting ttre market System decide {yn er while the welcome remarks were made

those that are imported or sold by thel i'nvestme]'it cb0iees. Tlie participators who: by Dr. Filologo Pante, Jr., President ofgovernment: ::::There is : optknism Withl shared their views in:the discussions were the PIDS,

tOduction :of feedgrains, pri]cipally eorii:

....and soybeansl t 0 boost: th.e ani]nai feedindustry: : ......

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=

....... Ill' I.................................. : HIIIII I II " [I IIH[II I

PIDSDEVELOPMENT RESEAR_EWS 14 _ MARCH-APRIL 1986I II _ IIII

PIDSPUBLICATIONSAVAILABLEPIDSWORKINGPAPERS 4, S.P.:#8204 Shadow Prices of GoOds and Re6x_urces in the

philippines An Assessment. Erlinda M. Medalla.

5. S.P. #8205 An Analysis of the Behavior of =he Commercial

1. W.P__8301 Studies on the Wood-Based Furniture, Leather Banks. Mario B. Lamberte.

Products Jnd Footwear Manufacturing-Industries 6. S.P,#8301 Exchange Rate Flexibility and Intervention

in the Philippines. Niceto Poblador, Adr/ano Policy in the Philippines, 1973-1981. Filologo

Solis, Roy YbaSez, and Bienvenido A#agon. Pante, Jr,

2. W.P._-8302 Economic Policies and Philippine Agriculture. 7. S.P.#;/:8302 On the Use of the DRC Criterion in Selecting

Cristina C. David. Projects. Erlinda M. Medalla.

3_ W.P._;_8303 Changing Comparative Advantage in Philippine 8. S.P. :# 8303 Monetary Aggregates and Economic Activity.

Rice Production, Laurian J. Unnevehr and Arse- Mario B. Lamberte.

nioM_Balisacan, 9. S.P._'_8304 Effective Protection Rates and Internal h_direct

4. W.P.#-8304 The Impact of Government Policies on Philippine Taxes in {he Philippine S_tting, Rosario G.

Sugar. Gerald Nelson and Mercedita Agcaoili. Manasan.

5. W.P.#8305 Comparative Advantage and Government Price 10; S,P._;f8305 Response to Balance of Payments Crises in theIntervention Policies in Forestry, John H. Power 1970s Korea and the Philippines, John H. Power.

andTeresitaTumaneng. 11. S.P,:/_L8401 ,A Study of Philippine Real Property Taxation.

6. W,P.#-8306 Government Expenditures and' Agricultural Poll- Cayetano W. Paderanga, Jr,

cies in the Philippines 1955-1980. Manuel $_ J. de 12. S.P.-;P/:-8402 Public Enterprise in the Philippines in 1982: ALeon. Definitional and Taxonomical Exercise. Rosario

7. W,P,_:8307 Economic Incentives and Comparative Advantage G. Manasan,

in the Livestock Industry, Liborio S_ Cabanilla. 13. S.P.-#-8403 Estimating the Shadow Exchat_ge Rate, the

8- WIP.;/#:8308 An Analysis of the Economic Policies Affecting Shadow Wage Rate and the Social Rate of

The Philippine Coconut industry, Ramon Clarete Discount for the I_hilippines, Erlin¢la M. Medalla.

and J. Roumasset, 14. S.P.-;_/8404 Development Finance and State Banking: A

9. W.P.:h_8309 Economic Incentives and Comparative ,Advantage Survey of Experience. Edita A. Tan.

in the Philippine Cotton Industr.y. Arsenio 15. S,P._'8405 Derived Protection} for Nontraded Primary

Baiisacan. Product, Erlinda M_ Medalla.

10. W.P.#8401 Intersectoral Capital .FloWS and Balanced Agfo- 16. S.P._8406 Modelling the Effects of Devaluation an Prices,

industrial Development in the Philippines. Ma- Output and the Trade Balance: The Philippne

nuel S. J. de Leon. Experience. Ma. Cecilia Gonzales. "=

11. W,P.#-8402 Forest Land Management in the Context of Na- 17. S_P,_8407 The Development Bank of the Philippines andtional Land Use. Adolfo V. Revilla, Jr. the Financial Crisis, A Descriptive Analysi_

12. W.P._8403 Policy Issues on Commercial Forest Management. Mario B. Lamberte.Cerenilla A. Cruz and Marian Segura-delos 18. S.P.-_8501 The Protection Structure, Resource Flows and

Angeles. the Capital-Labor Ratio in Philippine Manufac-

13. W.P._8404 The Impact of Government Policies on Forest turing: A Short Empirical Note: Erlinda M.

Resources Utilization. Gerald C. Ne'lson. Medalla.

14. W.P_ #8405 Population Pressure, Migration and Markets: 19. S.P._/-8502 A Decomposition. Analysis of Philippine Export

Implications for Upland Development- Ma. and Import Performance, 1974-1982 Ponciano

Concepcion Cruz. S. Intal, Jr.

15. W.P._8406 Tenure, Technology and Productivity of Agro- 20. S.P.#t8503 Philippine Export and Terms of Trade Instability,

forestry Scheme_ Ana Doris Capistrano and 1965-1982. Ponciano S. Intal, Jr.

Sam Fujisaka. 21. S.P._/8504 Methodology for Measuring Protection and Com-

16. W.P._8407 Environmental Effects of. Watershed Modifiea- parative Adavantage. Erlinda M. Medalla and

tions. Wilfredo P_ David. John H. Power.

17. W.P.#8408 Management 'and Cost of Watershed R_foreste= 22. S.P._8505 Food, Fuel and Urbanization in the Philippine¢

tion: The PantabangenandMagat. Jose A. Galvez. Alejandro N. Herrin, Manuel F. Monte$, Rodolfo18. W.P._8409 Workshop Papers on "The ConseClUeneas of Small F. Florentino.

Rice Farm Mechanization in the Philippines': 23. S.P._ 8506 Rural Development Experience: Economic Pet_-

19. W.P,_8501 A Review of Welfare in the Coconut Industry. pectives. Robert E, Evenson.

Sylvia N. Guerrero. 24. S.P._/8507 Financial Liberalization and the Internal Struc.

20. W.P._8502 Financing the Budget Deficit in the Philippines ture of the Capital Markets: .The Phil/ppine Case.Eli M. Remolona. Mario B. Lamberte.

21. W.P. _8601 Trade Liberalization Experience in the Philip- 25. S.P, #8508 The Rural Banking System: Need for Reform&

pines, 1960L84o Florian Alburo and Geoffrey Mario B. Lamberte.

Shepherd. 26. S.P. _8509 Social Adequacy and Economic Effects of SocialSecurity: The Philippine Case. Mario B. Lam-

berte.

PID$ STAFF PAPERS 25. S.P.-#8601 Impact of BOI Incentives on Rate of Return, Factor

/?rices and Relative Factor Use: A 'Comparative

1. S.P._8201 An Analysis of Fertilizer Policies in the Philip- Analysis of Incentives Under the Omnibus Invest

pines. Cristina C, David and Arsanio M. Balisacan. ments Code of 1981 (P.D. 1789) rand _ in,st

(Printed al¢o in J.P.D. 1981) ment Incentive Policy Act (B.P. 391). Rosario G2. S,P.##8202 Credit and Price Policies in Philippine Agriculture. Manasan.

Cristina C. David. 26. S.P,_tt 8602 Financial Reforms and Balance.of4Payrnents Crisis.

3. $.P. #8203 Government Policies and Farm Mechanization in The Case of the Philippine_ E. Remolona and Mariothe Philippines. Cristina C. David. Lamberte.

III II lUll ] l ililil

PIDS DEVELOPMENT RESEARCH=NEWS 15 -_ MARCH-APRIL 1986IIII IIII IIIIIIIIIII

II III I L II I1111111 IIIIi

SPECIAL PUBLICATIONSAVAILABLE

1. INDUSTRIAL PROMOTION POLICIES IN THE P125,00 13. MONOGRAPH NO. II1: ECONOMIC EVALUATION P 50.00PHILIPPINES OF THE PHILIPPINE ALCOGAS AND COCO-

Romeo Bautista, John Power and Associates DI ESEL PROG RAMS

2. SURVEY OF PHILIPPINE DEVELOPMENT RE- F" 30.00 Armando Armas and Dennis Joyce CrydeSEARCH I 14. MONOGRAPH NO. IV ASURVEYOFMATERIALS _32.00

3, SURVEY OF PHILIPPINE DEVELOPEMNT RE- _- 30.00 IN INTRODUCTORY ECONOMIC EDUCATION

SEARCH II Gerardo P. Sicat'

4. SUMMARIES OF COMPLETED RESEARCH PRO- P 20.00 15. MONOGRAPH NO.V, MODELLING THE IMPACT _'35.00JECTS, VOL. I OF SMALL FARM MECHANIZATION

5, INTEGRATION' PARTICIPATION AND EFFEC- [a co-publication venture with the International

TIVENESS: AN ANALYSIS OF THE OPERATIONS Rice Research Insitute (IRRI)]AND EFFECTS OF FIVE RURAL HEALTH DELl- P25.00 16, MONOGRAPHVI: PHILIPPINE POOR

VERY MECHANISMS 17, MONOGRAPH VII:.PUBLIC POLICY AND THE P 40,00Ledivina Cari6o and Associates PHILIPPINE HOUSING MARKET

6, ESSAYS IN DEVELOPMENT ECONOMICS IN P 55,00 " Edna Angeles

HONOR OF HARRY T, OSHIMA (Paper_ .18. MONOGRAPH VIII: REVIEW AND APPR/_ISAL _' 35.00bound) OF THE GOVERNMENT MONETARY ANDP125.00 FISCAL POLICY RESPONSE TO THE 1983-84

(hard- BALANCE;OF-PAYMENT CRISIS. "\

bound) Mario B_Lamber_e, et, al,

19,. MONOGRAPH IX; PRODUCTIVITY GROWTH IN _ 45,00

7. HOW PARTICIPATORY IS PARTICIPATORY DE- t_86.25 PHILIPPINE MANUFACTURING: RETROSPECTVELOPMENT?, AND FUTURE PROSPECTS

Celia T. Castillo. Richard Hooiey8. THE SPATIAL AND URBAN DIMENSIONS OF DE- P125.00 20, MONOGRAPH X: FORECASTING MONTHLY INFLATION

VELOPMENT IN THE PHILIPPINES INFLATION IN THE PHILIPPINES P: 40.00Ernesto Pernia, Cayetano W. Paderanga, Roberto S. Mariano

Victorina Hermoso and Associates 21, JOURNAL OF PHILIPPINE DEVELOPMENT P 35.00

9, ENERGY AND STRUCTURAL CHANGE IN THE (1981, 1982, 1983, 1984 and 1985 issues) per copyASIA.PACIFIC REGION (PAPERS AND PROCEED- P 60.00

INGS OF THE THIRTEENTH PACIFIC TRADE annual sub_

AND DEVELOPMENT CONFERENCE) _P200.00 criptiot]10, PHILIPPINE EMPLOYMENT IN THE SEVENTIES P_75.00 22. E_CONOMICPOLICIES FOR FOREST RESOURCES

Rosa Linda P. Tidalgo and Emmanuel F. Esguerra MANAGEMENT (Summary of the Papers and

11. MONOGRAPH NO. I: A STUDY OF ENERGY - _' 15.00 Proceedingsof the Workshop) edited by Wilfrido F" 17,00ECONOMY INTERACTION IN THE PHILIPPINES

Leander Alejo * 23, ECONOMIC RECOVERY AND LONG - RUN _" 50,00

12. MONOGRAPH NO. I1: INDUSTRIAL POLICY AND P 18,00 GROWTH: AGENDA FOR-.REFORMSDEVELOPMENT IN THE ASEAN COUNTRIES VOLUME 1 (MAIN REPORT)

Romeo Bautista Florian A. Alburo, et. al

PIDS DEVELQPMENT RESEAF_r.,,_ r,tEWS 16 MARCH-APRI L 1986:I I Jl lie III

l lll inlllmnnllnnlli !! I

DEVELOPMENT RESEARCH NEWS is a bi-monthly publication of the PHILIPPINE INSTITUTE FOR DEVELOP-

MENT SI'UDIES (PIDS). It highlights findings and recommendations culled from PIDS-sponsored research or r_latedstudies done by other institutions. PIDS seminars, publications, and ongoing and forthcoming projects which are.ofinterest 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_ Thispublication is part of the Institute's program to disseminate information in Order to promote the utilization of researchfindings.

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_gest-tions or comments on the publication, are Welcome. Please address aU related correspondence or inquiries to:

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