December 17, 2024

 

Philippine agriculture sector grapples with climate disruptions and structural challenges

The Philippine agriculture, forestry, and fisheries (AFF) sector is closing 2024 amidst significant challenges, including climate-related disruptions and ongoing structural issues.

 

Data from the Philippine Statistics Authority (PSA) show a 2.8% year-on-year contraction in the sector during the third quarter of 2024. Despite efforts to address the difficulties, the outlook for the final quarter remains uncertain.

 

Philippines' Department of Agriculture (DA) Assistant Secretary Arnel de Mesa expressed cautious optimism, stating that the fourth quarter may remain in positive territory, though losses from recent storms continue to weigh on production.

 

"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.

 

While the livestock subsector, particularly poultry, contributed positively to the sector, it was insufficient to offset the decline in productivity caused by extreme weather events and disruptions in fisheries.

 

The year began with El Nino's effects, which shifted to La Nina-related disruptions in the third quarter. The combined impact placed additional strain on the sector's agricultural output.

 

In response to these immediate challenges, the government introduced assistance programs to mitigate risks. The DA expanded insurance coverage for vulnerable farmers and provided cash-based incentives to encourage planting.

 

De Mesa highlighted the role of the Presidential Assistance for Affected Farmers and Feeders programme in delivering support. The initiative provided cash assistance of PHP 10,000 (US$169.60) per farmer, translating into billions in relief to help counter the effects of El Nino and other climate disruptions.

 

To ensure food security and stabilise prices of essential commodities, the DA implemented targeted interventions, including imports and anti-smuggling measures.

 

"Last year, prices were very high for many commodities. Through interventions such as imports and strong enforcement against smuggling, we have managed to stabilise the prices," De Mesa said.

 

The department's efforts to combat smuggling—particularly of rice, vegetables, and meat—were also instrumental in ensuring fair pricing.

 

Looking ahead to 2025, the DA is prioritising long-term strategies to modernise the agricultural sector. De Mesa outlined plans to address infrastructure gaps and improve productivity through investments in irrigation, cold storage facilities, and post-harvest infrastructure.

 

"We are focusing on modernising agri-infrastructure because they are essential to ensure better productivity and distribution. Post-harvest losses, for example, stand at 17% to 25% for rice compared to 8% in neighbouring Vietnam. These losses can be drastically reduced with improved post-harvest infrastructure," De Mesa explained.

 

The department has already begun implementing initiatives such as solar irrigation projects, supported by funding from multilateral institutions like the World Bank and the Asian Development Bank (ADB).

 

In addition to infrastructure, the DA is also focused on diversifying the agricultural sector through strategic exports. De Mesa cited the recent acceptance of Philippine durian into the Chinese market as a promising development.

 

"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," he said.

 

Legislative support has been key to advancing these initiatives. New laws, such as the Agricultural Economic Sabotage Law and amendments to the Rice Tariffication Law, have helped streamline operations and attract investments.

 

For 2025, the DA has requested a budget increase to PHP 250 billion (US$4.2 billion), up from this year's PHP 170 billion (US$2.8 billion) allocation. De Mesa expressed optimism that with continued legislative backing and government funding, the department can implement its plans to make agriculture more competitive and resilient to climate challenges.

 

Despite the difficulties faced in 2024, De Mesa remains hopeful about the sector's trajectory for the coming year.

 

"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.

 

-      Manila Standard