The Philippines' rich marine resources and expansive coastlines make it an ideal environment for a thriving seafood industry. While one might expect the country to excel in seafood production and exports, recent research has revealed concerning challenges that are jeopardizing the local fishing sector. 

Illegal fishing activities carried out by foreign entities, as well as the pervasive poverty within local fishing communities have directly contributed to the industry's weakening performance.

In the 2024 ODI report titled “Fishy Business,” it was revealed that the Philippines only contributes two percent of the global marine capture producers. Meanwhile, the entire fishing industry accounted for only 1.52 percent of the country’s gross domestic product (GDP) in 2020.

The country's commercial fishing production, which yields profits for private enterprises, has also experienced a gradual decline, from 22 percent in 2017 to 20.48 percent in 2021.

Although formal fishing was seen declining as it entered the 2020s, municipal fishing, which is usually done by small boats, posed a slight upward in total production.

Fishing continues to be a vital source of income for Filipinos, particularly for the over 60 percent of the population residing in coastal areas. 

Fish exports

Exporting fish resources to other countries has helped boost the local economy, especially with tuna emerging as the most exported fish in 2021, according to the Statistics Research Department. 

The 2024 ODI report underlined tuna as the top fish export globally, raking in a value exceeding $2.6 billion. 

However, despite the widespread popularity of Philippine tuna and other fish products, the country's seafood trades faltered at the start of the new decade.

In 2021, tuna exportation experienced a significant setback, with a 31.22 percent decline, markedly faster than the global fish industry average contraction of 1.18 percent.

During the same year, Philippine oceanic tuna production amounted to only 2.58 million metric tons.

However, there is a silver lining. Despite the concerning downward trend, the fish industry managed to rebound. The Bureau of Fisheries and Aquatic Resources reported a significant recovery, with a substantial 111 percent increase in production from 2020 to 2021.

The United States, Japan, China, Netherlands, and Germany emerged as the top five countries importing Philippine fish products. The US led the pack, with Manila supplying 27 percent of its exports. 

Between a five-year period, the formal commercial fishing sector in the Philippines registered a consistent decline in production volume, dropping from 22 percent in 2017 to 20.48 percent in 2021.

From 2016 to 2021, the Philippines exported an average of 262,880 of fish and fish products. In 2017, there was a substantial 85.91 percent increase from the previous year, reaching a peak of 478,210 tons. 

However, from 2018 to 2021, exports steadily declined, hitting 258,370 metric tons in 2021, a 1.18 percent drop from 2020.

Foreign vessels in the Philippines

Foreign fishing vessels continue to target Filipino fish resources within the Philippine Exclusive Economic Zone (EEZ).

According to the ODI report, there has been an increase in international involvement in the domestic area, with a total of 144 Chinese-linked or flagged vessels operating within the EEZ.

“Of the first 20 companies for which we have information on the owner or operator are Chinese companies,” said the ODI researchers. 

“Looking at the flags of the foreign vessels, most come from China at 25 percent; Taiwan at 21 percent; Japan at 16 percent; and South Korea at seven percent.”

Ongoing poverty 

Despite the advent of the digital age, fishing continues to be a prominent livelihood for Filipinos. ODI researchers noted a significant increase in the number of Filipino fisherfolk, rising from 1.8 million in 2017 to 2.19 million over the next five years.

However, with the increasing number of fishermen, statistics also indicated that a significant portion of them, approximately 348,000, continue to live in poverty.

The study highlights that this figure encompasses individuals in informal groups or small-scale producers who work independently and are not employed by commercial enterprises.

“Typically, these individuals run unincorporated household enterprises, often with family members, and employ seasonal workers rather than providing employment continuously,” the researchers said.

Independent fishermen are vulnerable to the current economic challenges as they lack the protection of insurance or social security.

Meanwhile, the average annual income for local fisherfolk was valued at P188,000 in 2018, well below the country's average annual income of P313,000.

Amid the challenges faced by the local fishing industry, its contribution has dwindled significantly.

According to the ODI report, the fish sector now represents only 0.02 percent of the national GDP and 0.97 percent of employment.