Philippine Agriculture Shows Muted Growth in Q1 Amid Challenges

The Philippine agriculture sector recorded a marginal increase in production during the first quarter of 2024, continuing its trajectory of growth despite facing significant environmental and economic challenges. According to the latest data released by the Philippine Statistics Authority (PSA), the sector saw a growth of just 0.05% in Q1, a stark contrast to the 0.9% expansion in the fourth quarter of 2023 and the 2.1% growth in the same quarter of the previous year.

Subsector Performance: A Mixed Bag

The agricultural output’s modest rise was marred by contractions in several key subsectors. Crop production, which constitutes 57.6% of the total agricultural output, decreased by 0.3%. Significant declines were noted in the production of sweet potatoes (-9.0%), cassava (-8.9%), mongo (-6.4%), bananas (-4.5%), and ampalaya (-4.0%), with palay production also dropping by 2.0%.

Conversely, some crops showed remarkable growth, with onions increasing by 28.6%, coffee by 25.2%, and sugarcane by 17.2%. These gains, however, were insufficient to offset the overall decline in the crop sector.

Fisheries, contributing 12.5% to the total agricultural value, also experienced a downturn, reflecting a 1.3% decline with a total value of P53.73 billion for the quarter. This sector faced severe drops in the production of key species such as threadfin bream or bisugo (-37.2%), mudcrab or alimango (-33.2%), bali sardinella or tamban (-29.9%), blue crab or alimasag (-29.5%), and grouper or lapu-lapu (-27.1%).

Livestock production was not spared, recording a 3.6% decline with a value of P59.46 billion. Decreases in hog and goat production were particularly notable, although there were increases in cattle, carabao, and dairy production.

Poultry: A Silver Lining

The only subsector to post growth during this period was poultry, which saw a 5.9% increase in production value, reaching P68.75 billion. This growth was widespread across all commodities within the subsector, except for duck eggs, which fell by 4.3%.

Government Response to Environmental Challenges

Agriculture Secretary Francisco Tiu Laurel Jr. commented on the latest figures, highlighting the impact of the El Niño phenomenon, which has significantly affected rainfall patterns and temperatures, leading to reduced crop and fisheries production. The government has acknowledged the challenges posed by El Niño, which has already caused P5.9 billion in damage to the sector, and is implementing interventions to mitigate these effects.

Secretary Laurel expressed cautious optimism about the future, noting, “If El Niño will persist through the second quarter, we’re cautiously optimistic that the interventions we have taken will allow the agriculture sector to mend and return better results between April and June.”

Looking Forward

As the Philippine agriculture sector navigates through these turbulent times, the resilience and adaptability of farmers and the strategic response of the government will be crucial in overcoming the ongoing challenges. The sector’s ability to rebound in the coming months will largely depend on the effectiveness of these measures and the stabilization of environmental conditions.