The Philippines saw a 3.7% contraction in agricultural output for the third quarter of 2024, marking the steepest decline since late 2020. The Philippine Statistics Authority (PSA) reported Wednesday that agriculture and fisheries production at constant 2018 prices fell to P397.43 billion, a sharp downturn from the 0.2% drop in the same period last year.
This decline extends the sector’s negative trend, with agricultural output falling 2.2% over the first nine months of 2024, reversing a slight growth in 2023. The PSA attributed the slump to drops across major subsectors, including crops, livestock, and fisheries.
Crops and Livestock Take the Hardest Hit
Crops, which account for more than half of the total farm output, plummeted by 5.1% in Q3. The decline was primarily due to a 12.3% drop in palay (unmilled rice) production, aggravated by extreme weather from El Niño and La Niña. Sugarcane production saw a staggering 83.8% fall, while other crops, such as mango, rubber, and banana, declined. Corn was one of the few crops to grow, increasing by 1.3%.
Livestock output also suffered, contracting 6.7% compared to a 2.5% increase last year. African Swine Fever (ASF) continued to plague hog production, leading to an 8% drop. The Bureau of Animal Industry reported ASF cases in over 100 municipalities, weighing on livestock numbers.
Agriculture Secretary Francisco Tiu Laurel Jr. highlighted ongoing efforts to mitigate the impact, such as developing an ASF vaccine and adjusting the rice cropping calendar to better align with climate conditions.
Poultry Stands Out as the Lone Bright Spot
Poultry was the only sector to see positive growth, expanding 5.8% year-on-year. Chicken and chicken egg production led to this growth, while duck and duck egg outputs declined. Poultry now makes up 17.3% of the sector’s total value.
Raul Q. Montemayor, National Manager of the Federation of Free Farmers, pointed to the sector’s vulnerability to external shocks, saying, “The output decline reflects the low resiliency of our agricultural sector to weather disturbances and disease outbreaks.”
The Department of Agriculture aims for 1-2% growth in agriculture this year, but ongoing challenges raise doubts. Agriculture remains a crucial contributor to the Philippine economy, typically accounting for a tenth of GDP and a quarter of employment.
Jaja has a degree in journalism and took classes in international law and business communication. Her career spans roles at prominent international media outlets, including International Business Times, Celebeat and Delightful Philippines. As a news editor, Jaja covered a wide range of beats, including legal, business, economy, cryptocurrency, personal finance, gaming, technology, and entertainment.