By Marron Joshua F. Mendoza
THE PHILIPPINES’ agricultural sector posted slower growth of 2.9% in the second quarter, down from 6% a year earlier, despite improved output across all subsectors, the Philippine Statistics Authority (PSA) said.
The PSA reported that the value of production in agriculture and fisheries at constant 2018 prices rose by 2.9% to P452.22 billion from P439.66 billion in the second quarter last year.
Farm output growth eased from the 6% in the second quarter of 2025 but improved from the 0.3% contraction in the first quarter.
“This expansion was driven by gains across crops, livestock, poultry, and fisheries,” the PSA said.
At current prices, the value of production in agriculture and fisheries edged up by 0.2% year on year to P610.62 billion in the second quarter from P609.63 billion previously.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. said in a statement that the “strong” second-quarter performance shows the government’s farm modernization efforts are delivering results.
“These gains also give us a stronger buffer against the production slowdown we expect from El Niño in the fourth quarter. We cannot control the weather, but we can equip our farmers to overcome it through irrigation, mechanization, climate-smart technologies, quality seeds, modern post-harvest facilities and better market access,” he said.
Former Agriculture Secretary William D. Dar told BusinessWorld that the slower year-on-year growth in the second quarter reflected geopolitical tensions and inadequate government interventions to agricultural issues.
“There is a convergence of factors why Q2 growth is significantly slower than last year, namely, geopolitical tensions leading to high energy prices, high fertilizer prices and higher logistics costs,” Mr. Dar said via Viber.
“You can add the delayed distribution of government assistance of inputs including lack of extension services,” he added.
For the first six months, the value of agricultural production inched up by 1.3% to P889.67 billion, slower than the 4% a year ago.
CROPS
Crop production, which accounted for 55% of the total value of agricultural production, rose by an annual 1.6% in the second quarter to P248.9 billion. This was significantly slower than the 11.3% increase in the second quarter of 2025, but an improvement from the 2.4% decline in the first quarter this year.
For the first half, crop production contracted by 0.4% to P492.46 billion, a reversal of the 5.9% growth last year.
The value of palay production jumped by 5.7% to P93.69 billion in the April-to-June period, slowing from the 13.9% growth a year earlier. Palay output in the first semester dipped by 0.5% from 6.5% growth a year ago.
PSA data showed the value of corn production grew by 0.8% in the second quarter, sharply slower than 27.3% a year ago. Corn output contracted by 3% in the first half from 5.4% a year ago.
Coconut jumped by 2.4%, a tad slower than the 3% a year ago but faster than the 1.4% growth in the first quarter. For the first half, the value of coconut output grew by 1.9% from 1.3% a year ago.
Double-digit increases in the second quarter were seen in mongo (14.6%), cabbage (12.3%), cassava (11.4%), tobacco (10.6%), and coffee (10.2%).
On the other hand, sugarcane production plunged by 22.5% in the second quarter, a reversal of the 341% surge a year ago.
Declines were also seen in rubber (-16.4%), tomato (-10.1%), calamansi (-7.7%), onion (-6.1%), banana (-3.5%), sweet potato (-2.7%), and potato (-2.4%).
Mr. Dar said that the weak growth in crop production in the second quarter may be partly attributed to “the problem of irrigation systems that were not functional this time.”
GROWTH CHALLENGES
Poultry, which accounted for 17.7% of total production, jumped by 6.3% to P79.84 billion in the second quarter, slower than the 7% a year ago and 7.1% in the first quarter. This was the fastest growth among subsectors during the quarter.
Chicken production went up by 4.1% in the second quarter (from 8.2% a year ago), while chicken eggs jumped by 13.2% (from 4.8%).
Duck output shrank by 1.3%, worsening from the 1.1% drop a year ago, while duck eggs declined by 4% (from -0.7%).
In the January-to-June period, poultry output increased by 6.7% to P160.67 billion, slowing from 8.4% last year.
Elias Jose M. Inciong, chairman of the United Broiler Raisers Association, said the slower year on year growth in poultry sector reflected the general economic slowdown.
“Demand was affected by the increase in fuel and fertilizer prices brought about by the Iran-US war. Production was similarly bogged down. Costs went up. Growth will necessarily be a challenge under these circumstances,” Mr. Inciong told BusinessWorld via Viber.
He also cited the drop in average farmgate prices to P105.94 per kilo as of July, the lowest in five years, compared to P119 per kilo in 2025.
LIVESTOCK
Production of livestock went up by 3.6% to P61.83 billion, accounting for 13.7% of the total output. This was a turnaround from the 5.9% contraction in the second quarter of 2025, but slower than the 5% in the first quarter.
Hog production grew by 5.6% in the quarter ending June, a turnaround from the -7.5% a year ago, while dairy surged by 37.8% from 6% a year ago.
However, declines were noted for cattle (-5.2%), carabao (-6.6%) and goat (-3.3%).
For the first six months, livestock output expanded by 4.3% to P122.53 billion, an improvement from the -4.5% a year earlier.
“Obviously Q2 2026 growth will be slower due to negative effects of US Iran war, inflation due to oil price increases, depressed economic activity, wage freeze resulting to lower disposable income. These all contributed to poor pork demand and depressed liveweight prices,” Alfred Ng, vice chairman of the National Federation of Hog Raisers, told BusinessWorld via Viber.
Mr. Ng said the continued growth in pork imports, rising feed prices, and African Swine Fever (ASF) continue to affect the hog industry.
“ASF continues to be a problem for big pig producing provinces though not completely and accurately reported,” he added.
Meanwhile, the value of fisheries production rose by 2.7% to P61.64 billion in the quarter ending June. This made up 13.6% of total agriculture output during the period.
Higher output was seen for squid (42.2%), roundscad or galunggong (38%), fimbriated sardines (33.7%), P. vannamei (23.2%), tilapia (13.1%), grouper (6.7%), and Bali sardinella or tamban (1.4%).
On the other hand, double-digit declines were seen in mudcrab (-30.2%), cavalla or talakitok (-21.4%), bigeye tuna (-20.1%), skipjack (-14%), blue crab (-10.1%), big-eyed scad (-11.5%), and frigate tuna (-10.6%).
An annual drop in production was also recorded for yellowfin tuna (-8.5%), slipmouth (-7.4%), milkfish or bangus (-7.1%), threadfin bream (-6.6%), and tiger prawn (-5.6%).
In the January-to-June period, fisheries output contracted by 1.5% to P114.02 billion, reversing the 0.1% growth in the same period last year.
Jayson H. Cainglet, executive director of the Samahang Industriya ng Agrikultura, said the growth in fisheries production only covers commercial fishers and not local small-scale fishers, citing the Supreme Court ruling on commercial fishing vessels in 15-kilometer (km) municipal fishing zones.
“Since last year, a Supreme Court ruling allowed commercial vessels to fish inside the 15-km municipal waters. The 15-km municipal waters should be exclusive to artisanal/small fishers,” Mr. Cainglet told BusinessWorld via Viber.
LOOMING EL NIÑO
Meanwhile, experts warned about the impact of the looming Super El Niño on the agriculture and fishery sectors for the rest of the year.
Mr. Dar noted agricultural output, particularly crops, will be badly impacted by the Super El Niño in the second half of the year.
Mr. Ng said the Super El Niño would drive up the price of local feeds, as well as affect water supply.
“Super El Niño will put pressure on the local feeds produced like corn, rice bran, coco oil, molasses both on availability and affordability. It will also dampen the growth rate of our animals and may caused higher mortality figures due heat stress,” Mr. Ng said.
“Water source for drinking of our animals may also be compromised and short,” he added.
Mr. Inciong said the fourth quarter is usually the most challenging for the broiler industry.
“There is always an expected oversupply because of better production conditions and the very heavy influx of imported chicken meat,” he said. “Super El Niño will devastate market demand especially in the rural areas, adding to the oversupply,” Mr. Inciong added.
For his part, Mr. Laurel said that the DA’s continuing efforts to open new export markets and expand overseas shipments of Philippine farm products would drive growth for the agricultural and fisheries sector for the rest of the year.
