PH farm, fisheries production dips in Q1
Crops and fisheries production dipped in the first quarter of the year and officials are cautiously optimistic about the prospect of recovery in the second quarter because of the Middle East conflict and the possible onset of El Niño.
Crops production dropped by 2.4 percent to P243.62 billion in the first three months, with farmers producing only 4.4 metric tons of palay (unmilled rice). Officials blamed this on the lingering impact of typhoons and the damage they wrought on irrigation systems late last year.
“Softer farm-gate prices prior to the government’s temporary rice import restrictions from September to December also discouraged planting,” Agriculture Secretary Francisco Tiu Laurel Jr. said.
Raul Montemayor, national manager of Federation of Free Farmers, attributed this to reduced planted hectarage and the little change in yield per hectare.
“Some farmers probably decided to stop or cut back on production after experiencing the drastic drop in farm-gate prices in the fourth quarter of last year which in turn was brought about by excessive imports,” Montemayor said in a Viber message.
Last year’s four-month import ban “came in too late to significantly prop up farm-gate prices,” he said, adding that prices improved only after the harvest season and remained relatively high until March.
Fisheries posted the biggest decline of 6.1 percent among subsectors, valued at P52.34 billion. The Department of Agriculture said the contraction reflected “persistent structural and environmental challenges” in the sector. About 15 fish species incurred decreases, while the production of six others improved.
Cautious optimism
By contrast, poultry expanded by 7.1 percent to P80.83 billion, equivalent to an 18.5-percent share, with all poultry commodities recording increments. Meanwhile, livestock was 5.1 percent higher at P60.74 billion, comprising a 13.9 percent share. Hog output rose by 6.4 percent.
Tiu Laurel said he is cautiously optimistic about the farm sector’s recovery in the second quarter due to the potential impact of the Middle East crisis and an El Niño-induced drought.
“While we expect a stronger second quarter, the impact of higher oil prices on transport and inputs, particularly fertilizer, as well as the potential effects of an El Niño-induced drought, could weigh on production in the second half,” he said.
Philippine Chamber of Agriculture and Food Inc. president Danilo Fausto said the confluence of high fuel and fertilizer costs as well as El Niño will translate to a “bigger decline” among all subsectors for the rest of this year.
“Agriculture output for the first quarter did not feel much of the impact of the war in the Middle East since increases in fuel prices only started in March and April. High cost of fertilizer and El Niño are expected to affect agriculture output beginning in the third to fourth quarter of 2026,” Fausto said.
