By Vonn Andrei E. Villamiel, A reporter
Agricultural production in the Philippines fell by 0.3% in the country fithe first quarter of the year, due to the decline in crops and fisheries, the Philippine Statistics Authority (PSA) said.
Data from the PSA showed the value of agricultural and fisheries production at normal values for 2018 fell to P437.52 billion in January to March, from P438.65 billion in the same period last year.
This was a reversal of farm output growth of 2.1% in the first quarter of 2025, and an increase of 0.8% in the fourth quarter.
This was also the first decline in output since the 1.9% contraction in the fourth quarter of 2024.
Decreases in crops (-2.4%) and fisheries (-6.1%) outpaced gains in poultry (7.1%) and livestock (5.1%), reducing the performance of the farm sector in the first quarter.
“The decline is due to the instability of crops and fisheries, which poses the risk of weather disturbances and price volatility,” the Department of Agriculture (DA) said in a statement on Wednesday.
The agency attributed the poor performance to the decline in rice production, the lingering impact of typhoon disturbances late last year, and low farmgate prices, which discouraged farmers from increasing production.
At current prices, the value of agricultural and fisheries production also decreased by 2.4% year-on-year to P607.22 billion in the first quarter from P622.06 billion previously.
STATISTICS, FISHERMEN
Crop production, which accounted for 55.7% of total agricultural output, fell 2.4% year-on-year to P243.62 billion in the first quarter. This was a 1% decline in growth over the same period in 2025, but slightly better than the 2.6% decline in the fourth quarter.
Palay (unmilled rice) production, which accounts for about 20% of total farm production, contracted by 6.3%, resulting from a 0.3% increase over the same quarter last year.
PSA earlier reported that palay production for the first quarter fell by 6.26% to a six-year low of 4.4 million metric tons.
Maize production also fell 5.5% in the first quarter, worse than the 5.1% decline a year earlier.
A decrease in production was also recorded in bananas (-2.7%) and sugarcane (-8%).
Meanwhile, coconuts registered an annual increase of 1.4% in the first quarter, an improvement from a contraction of 0.3% in 2025.
Double-digit production growth was seen in tobacco (41.6%), a cow (beans, 37.9%), the playa (bitter gourd, 19.1%), potatoes (12.4%), and cacao (11.7%).
Production growth was also recorded in onion (6.6%), rubber (5.9%), and tomato (5.5%).
Raul Q. Montemayor, national manager of the Federation of Free Farmers, said BusinessWorld that the decrease in agricultural production can be caused by the decrease in rice output.
“The palay harvested in the first half of 2026 was planted in the last half of 2025, during this period palay prices were very depressed. This discouraged many farmers from maintaining or increasing their production,” he said via Viber.
Mr. Montemayor said the decline in production of major cash crops, such as corn, bananas, and sugarcane, has further reduced yields.
Former Secretary of Agriculture William D. Dar also told BusinessWorld via Viber that irrigation disruptions late last year in major production areas in Central Luzon also affected farm production.
Analysts previously estimated that the damage to the Upper Pampanga River Integrated Irrigation Systems in Nueva Ecija affected about 30,000 to 40,000 hectares of farmland.
Meanwhile, the production of the fishing industry, which accounts for 12% of the total production, also decreased by 6.1% year-on-year to P52.34 billion in the first quarter. This was the biggest annual decline since the 6.7% decline in the fourth quarter of 2022.
Production declines were seen in major fisheries such as milkfish (-4.9%), tilapia (-2.4%), skipjack (eat-8.7%), and tiger prawn (sugpo-2.8%).
Double-digit declines were also recorded in sea (-34%), mudcrab (it is not mango-31.7%), big eyes (pumpkins-24.9%), blue crab (it doesn't exist-23.6%), yellowfin tuna (tambakol13.6%), and Indian mackerel (alumahan-12.9%).
For now, it's a market staple galunggong (normal condition) increased by 48.6%. Productivity growth was also recorded in fimbriated sardines (tunsoy44.7%), bigeye tuna (tambakol16.7%), threadfin edge (bisugo12%), and group (lapu8.2%).
Mr. Dar said the decline in fishing grounds may be due to the reduction in fish caught due to overfishing.
Jayson H. Cainglet, executive director of Samahang Industriia ng Agrikultura, said subsistence fishermen, who make up the majority of the sector, are also facing increasing competition from commercial fishermen.
“The fisheries sector continues to be weakened following policy changes that have allowed commercial vessels to enter 15 kilometers of municipal waters, undermining small-scale fishermen and accelerating pressure on resources,” he said. BusinessWorld via Viber.
In 2024, the Supreme Court upheld the 2023 decision of the Malabon Court, which struck down key provisions of the Fisheries Code, including the exclusive access of municipal fishermen to 15 kilometers of municipal waters.
CHICKEN, LIVESTOCK PROFIT
Meanwhile, the poultry sector, which accounts for 18.5% of total farm output, jumped 7.1% year-on-year in the first quarter to reach P80.83 billion. Industrial production growth slowed from 9.8% in the first quarter of 2025.
Poultry production, which accounts for 12.7% of total farm output, recorded an annual gain of 5.8% in value.
Production growth was also seen in chicken eggs (10.6%), duck eggs (3.5%), and duck (2.9%).
Assistant Secretary of Agriculture for Pork and Poultry Michael J. Garcia said the growth in poultry is likely driven by new market entrants.
“There are a lot of investors in the chicken sector. There is still an unmet demand for chicken, and including chicken egg, it is still the cheapest protein available,” he told reporters at a press conference on Wednesday.
Mr. Dar said the increase in production could also be attributed to a shorter production cycle, making it attractive for investors to expand their operations.
“Now there are large companies involved in poultry farming, including those of small and medium breeders. With a short production cycle, breeders are able to adapt and, if necessary, expand their businesses,” he said.
At the same time, livestock production grew by 5.1% annually to P60.74 billion. The sector accounted for 13.9% of the total product.
Pig production, which accounts for 11.4% of total farm output, increased by 6.4%, the sector's fastest growth in nearly 10 years.
Cattle and milk production also increased by 1.7% and 6.5%, respectively.
Meanwhile, carabao production decreased by 3.3%, while goat production decreased by 5.8%.
Mr. Garcia said the increase in pig production is mainly due to base effetc.
“It is good that there is growth in this sector, but it is coming from a low point because we lost 5 million pigs due to African Swine Fever (ASF),” he said.
He added that the sector's recovery also reflects its growing strength in ASF.
“Big farms are now learning how to work with ASF, even with limited vaccine availability. Small farmers, who account for 80% of the sector, are also getting used to it,” said Mr Garcia.
GIVING INCOME
Despite improvements in some sectors, industry groups said the main production figures mask worsening conditions at the farm level.
Mr. Cainglet said profits continued to deteriorate amid rising input costs and continued import prices.
“Unprecedented amounts of imports and rising production costs are putting Philippine agriculture on the decline. Because of this, many farmers are now considering skipping the next cropping cycle, which threatens future land availability,” he said.
Alfred Ng, vice chairman of the National Federation of Hog Raisers, said despite the growth of the livestock industry, especially pigs, producers are still struggling with low farmgate prices.
“Since the current price ranges from P190 to P200 per kilo, farmers are in a critical situation, if they don't earn less,” he said. BusinessWorld via Viber.
Mr. Ng also warned that any reduction in the import tariff for pigsffthey may also weaken incentives for domestic producers to grow.
“We hope that the current negotiations and the lobbying of both domestic pork importers and exporters from the European Union to lower pork prices will not happen,” he said.
He added that the DA must limit and control the volume of pork to continue encouraging local farmers to expand.
SEEN AGAIN IN Q2
Meanwhile, the DA said it expects farm output to stabilize in the second quarter, as rice production is expected to improve.
“We are seeing encouraging signs on the ground, as rice production is likely to return to the second half as planting conditions normalize, palay prices improve, and government intervention begins to work,” said Agriculture Secretary Francisco P. Tiu Laurel, Jr. in the statement.
He added that growth in the livestock and poultry sectors should help sustain productivity and support domestic food supply.
However, the DA said rising production costs and weather risks could weigh on farm output in the second half of the year.
“While we expect a strong second quarter, the impact of higher oil prices on transportation and commodities, especially fertilizers, and the potential effects of El Niño-induced drought, could weigh on production in the second quarter,” Mr Laurel said.
Mr. Laurel said the department is intensifying efforts to help the sector recover and manage emerging problems.
