By Vonn Andrei E. Villamiel
PHILIPPINES’ agricultural production will grow by 2.6% in 2025, the fastest pace in eight years, as gains in crop production and stronger poultry operations offset declines in livestock and fisheries, the Philippine Statistics Authority (PSA) said.
Data from the PSA showed the importance of agricultural production and fisheries in 2018 normal values increased to P1.77 trillion last year from P1.73 trillion in 2024.
This was a reversal of the 2.1% reduction in 2024 when the agricultural sector was affected by drought and drought caused by El Niño.
This was also the fastest growth in farm production since the 4.3% increase reported in 2017.
The decline in farm sector performance was caused by growth in crops (2.8%) and poultry (9.1%), helped by declines in livestock (-2.3%) and fisheries (-0.3%).
In the fourth quarter alone, the value of agricultural production increased by 0.5% to P487.04 billion, despite the decline in crop production. This was a reversal from a 2% decrease. same time in 2024.
“Increases in livestock, poultry, and fisheries production contributed to this growth. In contrast, crop production decreased over the period,” PSA said, citing 2018 prices.
At current prices, however, total agricultural and fisheries production fell 2% year-on-year to P651.47 billion in the fourth quarter from P664.85 billion previously.
Agriculture Assistant Secretary Arnel V. De Mesa told the forum that although the 2.6% growth for the full year exceeded the 1-2% target of the Department of Agriculture (DA), the effect could have been greater.
“It certainly exceeded the target of the DA. It was more, but the storms in the last quarter affected the crop sector. But these storms cannot be avoided,” he said.
Mr. De Mesa also attributed the decrease in production to the high budget of the farm sector.
“Massive funding is being poured into production and productivity programs for our farmers, including reduction of post-harvest losses and improvement of inputs,” he said.
NUMBER, POULTRY PROFIT
Crop production, which accounts for 55.7% of total agricultural output, increased by 2.8% to P986.81 billion in 2025 from P960.19 billion last year. This is a change from a 4.2% decline in 2024.
However, crop production fell 2.5% to P274.3 billion in the fourth quarter, driven by a 5.2% drop in palay (unmilled rice) production.
In 2025, palay production increased by 3.3%, an improvement from the previous year’s 5% contraction.
PSA data showed corn production rising 2.3% in 2025, a change from a 3.2% decline in 2024. Coconut also registered an increase of 0.1%, an improvement from a contraction of 2.7% in 2024.
Double-digit growth in sugarcane (41.3%), tobacco (19.9%), onion (15.4%), and coffee (11.5%). Production increases were also seen in cocoa (9.4%), rubber (7.7%), and cabbage (4.7%).
Meanwhile, a decrease in production was recorded in abaca (-13.7%), sweet potato (-11.1%), and mango (-6.8%).
Former Secretary of Agriculture William D. Dar said BusinessWorld via Viber that year-round crop production increased due to increased government subsidies for rice, corn, and high-value crops.
He noted that the decline in crop production in the fourth quarter was “mainly due to the devastating storms and subsequent floods.”
The poultry sector, which accounted for 17.2% of total farm production, jumped 9.1% to P304.71 billion in 2025 from P279.41 billion last year. Growth was faster than the 6.6% that entered 2024.
In the fourth quarter of 2025, poultry production also grew by 8.9% to P78.18 billion from P71.81 billion in the same period in 2024.
By 2025, poultry production recorded an annual gain of 9.8% in value, while chicken and duck eggs posted growth of 8.4% and 0.6%, respectively. Duck eggs, on the other hand, decreased by 4.1%.
Elias Jose M. Inciong, chairman of the United Broiler Raisers Association, said earlier BusinessWorld that the growth of the poultry sector may be due to “an influx of new entrants into the industry.”
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On the other hand, livestock production, which accounted for 13.9% of total farm production, decreased by 2.3% to P246.42 billion in 2025, from P252.27 billion in 2024. This marks an improvement from the 4.2% contraction in 2024.
Livestock production in the fourth quarter of 2025 increased by 1% to P68.43 billion, reversing a 6.1% decline in the same period in 2024.
Dairy products are the only standout in the livestock sector, recording a 27.7% increase in production by 2025, up from 13.2% the previous year.
Pig production, which accounts for 81% of the sector’s total output, fell by 2.7%, improving from a 5% contraction in 2024.
Carabao production decreased by 3.6%, while goat production decreased by 2.7% and cattle decreased by 0.2%.
“African Swine Fever (ASF) continues to be a major cause of livestock decline throughout the year,” said Mr.
ASF, which continues to impact the livestock industry and worldwide, is an infectious disease that kills pigs and wild boar.
Mr. De Mesa said, however, that fourth-quarter growth and full-year reductions in the livestock sector point to continued recovery in the hog sector.
“Recently, there were only eight barangays with positive cases of ASF. This shows that our pork industry is able to deal with the effects of ASF. Producers now know how to deal with this disease and improve their biosecurity,” he said.
Fisheries production, which accounts for 13.2% of the total output, also decreased by 0.3% to P233.67 billion in 2025 from P234.31 billion last year. This is the fourth year in a row that fish production has declined.
In the fourth quarter, fisheries production grew by 4% to P66.14 billion from P63.57 billion last year.
Gains were also recorded in 2025 for squid (15.5%), milkfish (11.2%), Indian mackerel (alumahan9.6%), yellowfin tuna (tambakol6.1%), group (lapu-lapu5.2%), slipmouth (sapsap4.1%), and tilapia (3.3%).
Meanwhile, a decline was seen in P. Vannamei (-22.7%), mudcrab (it is not mango-12.4%), Bali sardinella (tamba-11.9%), round frame (galunggong-11.7%), and fimbriated sardines (tunsoy-10.3%).
Norberto O. Chingcuanco, board member of the National Fisheries Research and Development Institute and Tugon Kabuhayan promoter, previously told. BusinessWorld that the weather disturbance has greatly affected the production of fish as more fish are coming out of the sea houses.
He said, however, that the actual fishing output did not decrease as many of the fish that escaped were caught later as they were caught by the public, which official statistics cannot track.
‘NO Real Improvement’
Despite the headline-grabbing growth in farm production, analysts said the gains did not mean their lives were better. farmers and livestock breeders.
Jayson H. Cainglet, executive director of Samahang Industriia ng Agrikultura, said BusinessWorld via Viber that the growth figures and production values ”make no sense through the lens of the local agricultural sector.”
Mr. Cainglet said the increase in production could still lead to losses for producers if production costs rise or farmgate prices drop during harvest seasons.
“There may be an increase (in output), but if the cost of production also increases, there is no real improvement. In fact, local producers may have incurred huge losses due to the huge drop in farmgate prices,” he said.
Mr. Cainglet said the growth figures could also be misleading, as these are measured against a weak 2024 base.
Meanwhile, Raul Q. Montemayor, the national manager of the Federation of Free Farmers, said that the performance of the sector looks very unfavorable compared to the levels of 2023, before the farm sector is hit by a series of weather disturbances in 2024.
“There is less than half a percent growth in 2023. All major sub-sectors except poultry are down in 2025 compared to 2023 production. Poultry is still the only bright spot in agriculture,” he said.
Mr. Montemayor also said that the overall growth of the sector remains weak despite the government spending a lot of money, noting that the increase in production does not seem to be in line with public investment.
“Between 2025 and 2024, the total price of 2018 increased by about P45 billion, much less than the total amount of public money poured into the sector during the year,” he said.
In a statement on Wednesday, Agriculture Secretary Francisco P. Tiu Laurel, Jr. he said the DA is “laying the foundation for smart and climate-resilient agriculture” by investing in infrastructure to improve farm productivity.
The DA said it foresees higher agricultural productivity in 2026, driven by the increase in poultry and crops and continued development in the livestock sector, especially in the pig industry.
The agricultural sector accounts for about a tenth of the country’s gross domestic product and provides about a quarter of all jobs.
