2024 farm output shrinks 2.2%

A farmer checks the dry soil in San Jose, Occidental Mindoro. Agricultural output was affected by the El Niño in the primary semester, followed by La Niña within the second half. — PHILIPPINE STAR/EDD GUMBAN

By Adrian H. Halili, Reporter

THE PHILIPPINES’ agricultural output contracted by a record 2.2% in 2024, as farm production continued to say no within the fourth quarter.

Data from the Philippine Statistics Authority (PSA) showed the worth of production in agriculture and fisheries at constant 2018 prices shrank by 2.2% to P1.73 trillion, a reversal of 0.4% growth in 2023.

The 2024 print was below the Department of Agriculture’s (DA) 1-2% growth goal.

Performance of Philippine Agriculture Q4 and Full-Year 2024The farm sector’s dismal performance last yr was mainly as a consequence of the contraction in the worth of crops (-4.2%), livestock (-4.3%) and fishery (-1.1%) production. Alternatively, poultry output grew by 6.6%.

Within the fourth quarter, the worth of agricultural production contracted by 2.2% to P483.58 billion, a reversal of 0.9% growth a yr earlier.

Nonetheless, it marked the third successive quarter of decline, although slower than the three.6% drop within the July-to-September period.

At current prices, the worth of production in agriculture and fisheries went up by 0.4% yr on yr to P663.06 billion within the fourth quarter. 

“The two.2% decline in Philippine agriculture in 2024 was attributed to numerous challenges. El Niño in the primary half and La Niña within the fourth quarter disrupted production in crops, livestock, and fisheries,” University of Asia and the Pacific (UA&P) Center for Food and Agribusiness Executive Director Marie Annette Galvez-Dacul said in a Viber message.

The country faced below-normal rainfall conditions throughout the first half of 2024 as a consequence of El Niño. This was followed by La Niña that brought a series of storms that wreaked havoc on several agricultural areas.

“The decline in agricultural output in 2024 is the results of the confluence of events which incorporates impacts of El Niño and La Niña, typhoons and flooding, and lack of technical assistance on the local level,” former Agriculture Secretary William D. Dar said in a text message.

El Niño, which began in June 2023, brought prolonged cases of low rainfall, dry spells, and drought. The state weather bureau declared its end in June 2024.

Alternatively, La Niña conditions are expected to persist until the top of the primary quarter.

“The first reason for the (contraction) was as a consequence of the damage that was reported for El Niño, the series of typhoons from La Niña, other plant and pest diseases, the volcanic eruption, and other weather systems,” DA spokesperson Arnel V. de Mesa said at a media briefing.

Data from the DA showed total agricultural damage from these events reached P57.78 billion, with total volume lost at 2.18 million metric tons (MT) covering 993,823 hectares of farmland.

Federation of Free Farmers National Manager Raul Q. Montemayor said the decline had been expected amid natural calamities and animal diseases that hit the farm sector.

“It points also to the dearth of resiliency of the sector — slow growth during normal times, but vulnerable when calamities and disturbances arise,” he added.

CROPS, LIVESTOCK
Crop output, which accounted for greater than half of total agricultural production, declined 3.1% within the October-to-December period, a reversal of 0.3% growth a yr ago.

For the total yr, crop production shrank by 4.2%, reversing the 0.8% increase in 2023.

Former Agriculture Undersecretary Fermin D. Adriano said in a Viber message that crop production was severely affected by El Niño and La Niña. 

PSA data showed that palay or unmilled rice production slipped by 0.1% within the fourth quarter from the 0.2% gain a yr earlier. For 2024, palay production plunged by 5%, a reversal of 1.5% growth in 2023.

The amount of palay production declined by an annual 4.84% to a four-year low of 19.09 million MT in 2024. This was the weakest production because the 19.29 million MT logged in 2020.

Within the fourth quarter, corn output slipped by 0.6%, easing from the 1.8% drop a yr ago. For the total yr, corn production declined by 3.2%, a reversal of 1.8% growth in 2023.

Other crops that posted double-digit declines within the fourth quarter were mongo (-48.2%), sugarcane (-23.5%) and onion (-11.1%).

PSA data showed that livestock production plunged by 6.2% within the fourth quarter, a reversal of the two.7% increase a yr earlier.

In 2024, livestock output declined by 4.3%, a reversal of two.5% growth a yr prior.

Within the fourth quarter, declines were seen in hogs (-7.3%), goat (-4.1%) and cattle (-2.7%).

Alternatively, dairy production rose by 4.8%, slowing from 16.4% growth a yr ago.

In a Viber message, National Federation of Hog Farmers, Inc. (NatFed) Vice-Chairman Alfred Ng said the impact of the African Swine Fever (ASF) on hog production dragged the livestock sector. Hogs accounted for 14.6% of the overall livestock production.

“Many farmers sold their pig inventory before ASF hit their animals. Some haven’t repopulated for fear of disease reoccurrence, and a few are waiting for the monitored vaccine trial results,” he added.

Mr. Ng said increased rains and flooding as a consequence of La Niña led to a spike in ASF cases “as viruses from shallow graves of previous pig mortalities can have resurfaced and infected the animals.”

FISHERIES
Meanwhile, fishery production slumped by 2.1% within the fourth quarter, slower than the 5.3% decline a yr ago. For 2024, fishery output slid by 1.1%, slower than the 6.6% drop in 2023.

For the October-to-December period, double-digit declines were seen within the production of  mudcrab or alimango (-28.9%), cavalla or talakitok (-24.9%), big-eyed scad or matangbaka (-20.6%), Indian mackerel or alumahan (-20%), skipjack or gulyasan (-19.1%), slipmouth or sapsap (-17.7%), frigate tuna or tulingan (-17%), yellowfin tuna (15%),  round scad or galunggong (-14.3%), seaweed (-12.7%), and squid (-12.4%).

Meanwhile, growth in production was recorded for P. Vannamei (59.4%), milkfish or bangus (10.9%), blue crab or alimasag (7.2%), threadfin or bisugo (4%), and bigeye tuna (0.1%),

Mr. Adriano said the decline in fishery output may be attributed to “climate aspects” and the slow development of the country’s aquaculture industry.

“The closed fishing season is a necessity, hence the necessity to boost more investments in aquaculture,” Mr. Dar added.

Closed fishing seasons are declared over certain areas to assist fish stocks to regenerate, as mandated by Republic Act No. 8550 or the Fisheries Code. These closures typically last for 3 months.

POULTRY
The PSA reported that poultry output grew by 6.1% within the fourth quarter, slower than 7.8% a yr earlier.

For the total yr, poultry production rose by 6.6%, higher than 3.8% growth in 2023. 

Higher production was seen for chicken (5%), chicken egg (9.8%) and duck (0.3%), while duck eggs declined by 3.1%.

“The poultry subsector was in a position to grow with efforts and investments of the private sector including medium-sized firms. There was a quicker turnaround in poultry,” Mr. Dar said.

UA&P’s Ms. Dacul said growth within the poultry sector was mainly as a consequence of stronger demand and shorter production cycles.

“Poultry continues to be in recovery mode, so so long as they keep diseases in check, the industry will carry on expanding. But excessive imports will put a brake on this growth trend,” Mr. Montemayor said.

The agriculture sector accounts for a couple of tenth of the country’s gross domestic product (GDP) and provides a couple of quarter of all jobs. The PSA is scheduled to release fourth-quarter GDP data on Jan. 30 (Thursday).