Agriculture Sector Eyes Strong Recovery Amid Rice, Livestock Gains Despite Q1 Dip

AGRI-NEWS | Farming Posted on 2026-05-07 00:42:44

The Philippine agriculture sector is expected to regain momentum in the second quarter of 2026, driven by improving rice production and continued strength in the livestock and poultry industries, according to Agriculture Secretary Francisco P. Tiu Laurel Jr..

Despite a slight decline in overall agricultural and fisheries output during the first quarter, the Department of Agriculture remains optimistic that ongoing government interventions, improving planting conditions, and stronger farmgate prices will help fuel recovery in the coming months.

“We are seeing positive developments on the ground,” said Tiu Laurel. “Rice production is beginning to recover as farming conditions normalize and government support measures continue to take effect. At the same time, the strong performance of the livestock and poultry sectors is helping maintain food supply stability nationwide.”

Data from the Philippine agriculture sector showed that agriculture and fisheries production slipped by 0.3 percent during the January-to-March period, amounting to P437.52 billion at constant 2018 prices. The decline was largely attributed to weaker crop and fisheries production, highlighting the sector’s continuing vulnerability to extreme weather conditions and market fluctuations.

Crop production, which contributes nearly 56 percent of the country’s total agricultural output, dropped by 2.4 percent to P243.62 billion. Rice production was among the hardest hit, with palay output declining by 6.26 percent to 4.4 million metric tons.

The DA attributed the decline to the lingering effects of typhoons that struck late in 2025, causing widespread damage to irrigation systems and disrupting farming activities. Lower farmgate prices before the implementation of temporary rice import restrictions from September to December also discouraged some farmers from planting.

Meanwhile, the fisheries sector posted a 6.1 percent decline in production value, totaling P52.34 billion, reflecting ongoing structural and environmental challenges affecting the industry.

However, several agricultural subsectors demonstrated resilience. Livestock production increased by 5.1 percent to P60.74 billion, with hog production growing by 6.4 percent. Poultry production also expanded by 7.1 percent to P80.83 billion, supported by strong consumer demand for affordable protein sources.

The agriculture sector continues to play a vital role in the Philippine economy, contributing approximately 9 percent to the country’s gross domestic product while providing employment to one in every five Filipinos. Food prices also remain a major factor influencing inflation, business costs, and overall economic stability.

Despite the positive outlook, Tiu Laurel cautioned that several risks could still impact production later this year, including rising oil prices that increase transportation and fertilizer costs, as well as the possible effects of an El Niño-induced drought.

“While we expect stronger performance in the second quarter, external pressures and climate-related risks remain significant concerns for the second half of the year,” he said.

The Agriculture chief emphasized that the first-quarter slowdown reflects temporary disruptions rather than long-term structural weakness. He added that with sustained government support and timely interventions, the sector remains positioned for gradual recovery and improved productivity.

Industry observers believe that restoring crop production, particularly rice output, will be crucial in stabilizing farm incomes, ensuring food security, and keeping consumer prices manageable in the months ahead.

DA Press Office / NPO News Team

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