The Philippine agriculture and fishery sector is closing out 2024 with a year marked by challenges, including climate disruptions and structural issues.
Data from the Philippine Statistics Authority (PSA) show that the agriculture, forestry and fisher (AFF) sector contracted 2.8 percent year-on-year in the third quarter of 2024.
Despite efforts to mitigate challenges, Department of Agriculture (DA) assistant secretary Arnel de Mesa said the last quarter remains “tight” as losses due to natural calamities continue to weigh on agricultural output.
“Our outlook for the last quarter remains cautious, though we are hopeful of staying in positive territory for the fourth quarter. Growth continues to be driven primarily by the crop subsector, especially rice and corn. However, the storms in October and November have caused substantial losses,” he said.
De Mesa noted that while the livestock subsector—particularly poultry—contributed positively, it was not enough to offset losses caused by extreme weather conditions and disruptions in other areas like fisheries.
The year also saw shifts from El Niño effects early in the year to La Niña-related disruptions until the third quarter, creating additional strain on agricultural productivity.
Immediate challenges
To counteract the sector’s struggles, the government introduced both short-term and long-term assistance programs. The DA expanded its insurance coverage to protect vulnerable farmers and incentivize planting despite risks.
“We are also grateful that the Office of the President has provided relief to affected farmers through the Presidential Assistance for Affected Farmers and Feeders program. We’re happy that even cash-based assistance is reaching those most impacted,” De Mesa said.
The initiative provided cash assistance amounting to P10,000 per farmer, translating into billions in relief to help mitigate the effects of El Niño and other climate disruptions.
Supply and prices
The DA prioritized stabilizing commodity prices to ensure food security and reduce price volatility in sugar, rice, onions, and other essential goods.
“Last year, prices were very high for many commodities. Through interventions such as imports and strong enforcement against smuggling, we have managed to stabilize the prices,” he said.
De Mesa acknowledged that the fight against smuggling — especially for rice, vegetables, and meat — has been instrumental in ensuring fair prices.
Priorities for 2025
Looking toward 2025, de Mesa highlighted a long-term vision to modernize the agricultural sector by addressing critical infrastructure gaps and improving productivity through strategic investments.
This includes building better irrigation systems, cold storage facilities and post-harvest infrastructure to reduce losses.
“We are focusing on modernizing agri-infrastructure because they are essential to ensure better productivity and distribution. Post-harvest losses, for example, stand at 17 to 25 percent for rice compared to 8 percent in neighboring Vietnam. These losses can be drastically reduced with improved post-harvest infrastructure,” De Mesa said.
Efforts have already begun with investments in solar irrigation and support from multilateral financing such as the World Bank and ADB.
De Mesa emphasized that trust in the DA’s performance has improved, encouraging these financial institutions to continue partnering with the department.
Long-term development
De Mesa also emphasized the importance of diversification through strategic exports, highlighting recent successes like the acceptance of Philippine durian into the Chinese market.
“Exports are a bright spot for the Philippine agricultural sector. While Thailand dominates the durian market in China, we are beginning to make progress. With strategic investments, we aim to grow our export industry further,” De Mesa said.
Legislative support has been key, with new laws like the Agricultural Economic Sabotage Law and amendments to the Rice Tarification Law aiding efforts to streamline operations and investments.
The DA requested a budget increase for 2025, with P250 billion currently allocated, up from P170 billion this year.
“We are hopeful that through continued legislative support and government funding, we can implement our strategic plans to make agriculture more competitive and climate-resilient,” said De Mesa.
Path ahead
Despite the difficulties in 2024, the DA remains optimistic about 2025’s potential as strategic planning and infrastructure projects come to fruition.
The department is focused on climate-proofing the agriculture sector through investments in infrastructure and by addressing risks such as natural disasters.
“We expect that many of these initiatives will begin to bear fruit in 2025. While challenges remain, we are laying the foundation for sustainable, long-term growth that will strengthen Philippine agriculture for years to come,” he said.
