Technical Notes On Food Balance Sheet (FBS)

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I.

SOURCES OF BASIC DATA

The compilation of the Food Balance Sheet requires basic data on production,
stocks, foreign trade, domestic utilization, nutrient values, dietary allowances
and population which were obtained from the results of censuses, household
and establishment surveys, administrative reports of government agencies
and special studies conducted by various research institutions.

1. Production

1.1 Food Crops

The production data of palay and corn were obtained from the quarterly
Palay and Corn Production Survey of the BAS. Except sugarcane and coconut,
production data for other crops such as roots and tubers, pulses and nuts,
vegetables and fruits were generated through a rider to the BAS Palay and
Corn Production Survey. These data were supplemented with the data from
BAS quarterly monitoring of major producing provinces through the conduct
of field interviews of key farmers and ocular inspection in the area.
The Sugar Regulatory Administration (SRA) provided data on centrifugal
sugar based on the monthly reports of sugar centrals, while the BAS
provided production data in terms of panocha and muscovado. Both data sets
were used to estimate the production of sugarcane products using the
available parameters. On the other hand, the Philippine Coconut Authority
provided data on coconut production in terms of copra based on the monthly
reports of its provincial field offices. For food crops not included in the BAS
surveys, production was estimated using parameters based on the results of
the 1991 Census of Agriculture and Fisheries conducted by the National
Statistics Office (NSO).

1.2 Livestock and Poultry Including Milk and Eggs

For livestock and poultry animals, production data including the production of
milk and eggs were taken from the BAS Survey of Backyard Livestock and
Poultry Farms (BLPS) and Survey of Commercial Livestock and Poultry Farms
(CLPS). Data used include the inventory of animals and production of milk
and eggs which were disaggregated for all types of animals such as carabao,
cattle, hogs, goat, chicken and ducks. For other animals not covered by BAS
surveys, estimates of production including milk and egg production were
obtained using parameters derived from the 1991 Census of Agriculture and
Fisheries.

1.3 Fish and Other Marine Products

For fish and other marine products, production data were sourced from the
quarterly fishery surveys of the BAS such as the Survey of Commercial Fish
Landing Centers, Survey of Municipal Fish Landing Centers, and Survey of
Aquaculture Farms. The above surveys provided data on total fish production
including the production of other marine products such as crustaceans,
mollusks, and other seafoods like seaweeds, sea urchins, etc.

1.4 Processed Food Commodities

The Census of Establishments (CE) and the Annual Survey of Establishments


(ASE) were the primary sources of data for processed food commodities such
as wheat flour, cassava flour and starch, processed vegetables, processed
fruits, fats and oil and other miscellaneous foods. The 1988 and 1994 CE
provided the baseline data while the ASE provided the annual data to
estimate production. The data used from the CE/ASE include value of
products sold and the value of inventory for each commodity. To derive the
volume of production, the producer's price of each commodity from the
Monthly Producer's Price Survey of the NSO were used.
For some food commodities such as rice, corn grits and other food
preparations, other data sources include the University of the Philippines Los
Baos (UPLB), Food and Nutrition Research Institute (FNRI) and the
Department of Science and Technology (DOST).

2. Stocks

Stock data on palay, rice and corn were obtained from the Palay and Corn
Household Stock Survey of the BAS and from the regular monitoring system
of commercial and government stocks of the National Food Authority (NFA).

3. Foreign Trade

Data on the volume of merchandise exports and imports of each food


commodity were obtained from the Foreign Trade Statistics compiled by the
NSO. These data were from customs manifests, a document being
accomplished by exporters and importers as a requirement of the Bureau of
Customs for clearance.

4. Domestic Utilization

Data on domestic utilization such as feeds, seeds, waste, processed for food
and non-food were obtained using parameters from special surveys and
studies conducted by the BAS, other research institutions such as the UPLB,
FNRI and DOST. The Input-Output Survey of Establishments of the NSO
(Annex 1) also provided other data inputs.

5. Nutrient Values

The nutrient values in terms of energy, protein and fats for each food item
measured per 100 grams in retail weight of "as purchased basis (Annex 2)"
were obtained from the 1987 Food Composition Tables on Mean One-Day
Capita Food Intake generated by the FNRI (Annex 2).
6. Recommended Dietary Allowance

The FNRI through its Food Consumption Survey provided the recommended
dietary allowance disaggregated by food commodity and by major food
group.

7. Population

The mid-year population estimates of the Households Statistics Department


of the NSO based on the 1990 Census of Population and Housing (CPH) were
used for the estimation of the per capita food supply and the per capita food
nutrient to make it comparable with the previous years' estimates. The
population data from the 1995 Census of Population will be reflected in the
next publication in time for the plan to revise the link series that will cover
the years 1992 to 1999.

II. ESTIMATION METHODOLOGY

1. Total Domestic Supply (TDS)

TDS = Production - Changes in Stocks + Net Imports

This represents the quantity of food supplies available before disposal to non-
food and food uses. It is obtained by adding the change in stocks, if the sign
is minus and subtracting it, if the sign is plus, from production, plus net
imports (i.e. imports less exports).

1.1 Production

1.1.1. Unprocessed Food Commodities

a) From BAS surveys

The BAS production estimates of unprocessed food commodities


such as palay, corn, roots and tubers, vegetables and fruits,
livestock and poultry including milk and egg production, fish and
marine products were used.

For other pulses and nuts, the production estimates were


derived using the trends of local production, imports and
exports of commodities under pulses and nuts.

b) From NSO's Census of Agriculture and Fisheries

The 1991 Census of Agriculture and Fisheries (CAF) of the NSO


provided the baseline data for the adjustment of the BAS data
on organ meat and edible offals to account for other meat and
products. The CAF provided data on the number of horse and
other livestock to which a ratio was applied to derive the meat
equivalent. The ratio was based on the study of BAS and BAI.

1.1.2. Processed Food Commodities

Production estimates of the following processed food commodities


were derived by applying appropriate parameters taken from special
studies:

a) rice production was estimated by applying a milling recovery


rate of 65.4 percent to the total palay production after
deducting the estimated amount for seed, feed and waste;

b) corn grits production was estimated by applying a milling


recovery rate of 68 percent to the total corn shelled production
after deducting allowances for seed, feed, wastage and
manufacture for food and non-food;

c) cassava starch production was arrived at by applying an


extraction ratio of 20 percent to the total cassava production
used for non-food purposes;

d) shelled peanut production was estimated by applying a


70 percent extraction rate to the total unshelled peanut
production;
e) processed vegetables and fruits in forms such as canned,
dried, juice including other type of food preparations, production
estimates were arrived at using the available CE/ASE data on
the value of products sold plus the value of the change in
inventory, divided by the corresponding price per unit;

f) for livestock and poultry meat production, a dressing


percentage which vary by type of animal, was applied to the
total number of animals slaughtered. The estimates of total
weight of extremities and internal organs of animals such as
head, feet and tail, intestines, blood, liver, heart, etc. were
estimated based on results of special studies from UPLB and BAI
(Annex 4); and

g) for fats, oil, and miscellaneous food commodities, production


was estimated by getting the average of the value of output
derived using the regression analysis, geometric growth rate
and simple average growth rates based on the value of output
culled from the CE/ASE publication of the NSO. The estimated
value of output for each commodity was deflated using the
corresponding producer's price also from the NSO.

1.2 Changes in Stocks


Changes in Stocks = Ending Stocks - Beginning Stocks

The estimates of stocks were carried out for selected commodities to the
extent that data are available. This FBS compilation covered estimates of
stocks for rice, corn and centrifugal sugar. These estimates served as an
adjustment to the reported estimates of total production.

1.3 Net Imports

Net Imports = Total Imports - Total Exports

Data on exports and imports of commodities in terms of quantity (in net kilo
equivalent) were sourced from the foreign trade statistics of the NSO. Data
for these commodities were aggregated by major food group following the
FBS classification. Appropriate conversion factors were then applied to ensure
that commodities exported and/or imported are consistently parallel with the
production data. Net imports were estimated by deducting from the total
imports the total exports of each commodity.

2. Total Domestic Utilization (TDU)

TDU = net available food supply + non-food utilization + processed for food

The net available food supply represents the total amount of food available
for consumption while non-food utilization refers to a part of total domestic
utilization which is used for seed, feed, processed for non-food including the
amount wasted.

2.1 Net Available Food Supply

The net available food supply was obtained by deducting from the total
domestic supply of food commodities the total amount for allowances for
non-food utilization and processed for food. The amount derived represents
the actual quantity of food in the retail stage or "as purchased basis".

2.2 Non-Food Utilization

Estimates of non-food utilization such as seed, feed, processed for non-food


and waste made use of parameters available from BAS, UPLB, NSO, FNRI
and DOST. These were separately estimated as follows:

2.2.1 feed, which refers to the amount of food for animals, was
estimated by applying appropriate parameters to the reported total
production of certain food crops;

2.2.2 seed, which refers to the quantity of food crops used as seeds or
planting materials, was estimated by applying the recommended
seeding allowance per hectare by type of crop;

2.2.3 processed for non-food, which refers to the quantity of food


crops converted into non-food commodities for industrial and
manufacturing purposes were estimated using the available
parameters as shown in Annex 1; and

2.2.4 waste, which refers to the amount of losses that occur during
harvesting, infestations, spoilage, storage, distribution, etc., was
estimated by applying the required wastage parameters to the total
estimate of production or total domestic supply.

2.3 Processed for Food refers to the quantity of food crops which are further
processed into other form of food commodities.

3. Per Capita Food Supply

3.1 Annual Per Capita Food Supply (in kilograms)

The annual per capita food supply in kilograms was estimated by dividing the
net available food supply by the estimated mid-year population multiplied by
1,000.

3.2 Daily Per Capita Food Supply (in grams)

The daily per capita food supply in grams was estimated by dividing the
annual per capita food supply by 365 days multiplied by 1,000.

4. Nutrient Supply

The nutrient equivalent of the food supply in terms of energy, protein and
fats were computed by multiplying the daily per capita food supply in grams
by the corresponding nutrient values per 100 grams of the retail weight or
"as purchased basis". Further adjustments based on the FNRI Nutrition
Survey were made for some commodities from "as purchased basis" into
"edible portion" to account for the amount of wastage at the household level.
The adjusted values represent the net edible portion of the food supply in
terms of energy, protein or fats equivalent.

5. Food Sufficiency

Food sufficiency is a measure of the adequacy of available food supply to


meet the food requirements of the population. Expressed in percentage, it is
computed by dividing the available supply for daily consumption by the
recommended dietary allowance multiplied by 100.

Sufficiency value greater than 100 percent indicates that the available food
supply is more than adequate to meet the food requirement of the populace
while a value less than 100 percent indicates otherwise.

6. Computing for the Average (Annual) Growth Rates

The annual average growth rate is a measure of the annual rate of growth of
a characteristic which is based on the compounded interest rate concept. It is
computed using the following formula:

Where:
g = average annual growth rate
xt = value of the characteristic at time t
xo = value of the characteristic at the start of the
reference period
t = years elapsed since the start up to the end
of the reference period

Source: http://nap.psa.gov.ph/technotes/fbs_tech.asp

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