The value of the country’s agriculture and fisheries output grew by 5.7 percent in the second quarter of the year as crops and poultry production expanded due to favorable weather conditions—a development that augurs well for economic growth.

Data from the Philippine Statistics Authority (PSA) on Wednesday, Aug. 6, showed that the value of agriculture and fisheries production, at constant 2018 prices, reached ₱437.53 billion from April to June. The government will report on the second-quarter gross domestic product (GDP) performance—which includes agriculture—on Thursday, Aug. 7.

In the same period last year, agricultural output contracted by 3.3 percent year-on-year with the value of ₱413.91 billion due to the impact of the El Niño phenomenon.

The 5.7-percent growth in the second quarter builds upon the 1.7-percent increase in output in the first three months of the year, which reversed three straight quarters of contractions in 2024.

“The growth was due to the expansions in the value of crops and poultry production,” the PSA said.

Crops, which contributed 56 percent to total agricultural output, posted an 11.3-percent growth to an estimated ₱244.9 billion from last year’s ₱220.04 billion.

Palay (unmilled rice) and corn saw increases of 13.9 percent and 27.3 percent, respectively.

Bank of the Philippine Islands (BPI) lead economist Emilio Neri Jr. attributed the jump in rice production to the absence of a prolonged dry spell wrought by El Niño.

Sugarcane recorded the highest growth of 341 percent, while abaca had the biggest drop in production, down by 18.2 percent.

Poultry stood at ₱75.07 billion in the second quarter, seven-percent higher than ₱70.15 billion during the same period last year. The sector accounted for 17.2 percent of total agricultural output.

The value of production for chicken and chicken eggs improved during the period, growing by 8.2 percent and 4.8 percent, respectively.

“On the other hand, livestock and fisheries posted declines in the value of production this quarter,” the PSA said.

Fisheries production, which contributed 13.2 percent to total output, fell by 4.2 percent to ₱57.96 billion from last year’s ₱60.39 billion.

On the other hand, livestock was down 5.9 percent in the second quarter, amounting to ₱59.6 billion versus last year’s ₱63.33 billion.

The value of hog production fell by 7.5 percent, while carabao production declined by 2.9 percent.

Sought for comment, Philippine Chamber of Agriculture and Food Inc. (PCAFI) president Danilo Fausto said livestock continues to face setbacks in output due to unresolved issues with African swine fever (ASF).

“However, commercial producers are learning to manage and be resilient with the virus with proper adoption of biosecurity protocols,” he told Manila Bulletin.

Fausto said the strong output of the agriculture sector in the second quarter was expected given the absence of El Niño.

He anticipates continued growth in agricultural production during the second half of the year, on the condition that the government manages the impact of potential weather disturbances while curbing the dip in the farmgate prices of palay.

The Department of Agriculture (DA) is banking on reforms such as changes to the Rice Tariffication Law (RTL), disease control programs, and investments in infrastructure as critical components to sustain growth.

Agriculture Secretary Francisco Tiu Laurel said the positive results in the second quarter are proof that government interventions and the agency’s policies are effective.

“This result—and that of the first quarter—is a clear indication that we are on the right track,” Tiu Laurel said in a statement.

DA Assistant Secretary and spokesperson Arnel de Mesa said the strong output could potentially translate to lower prices of key commodities for consumers.

“Yes, possibly, because production is higher and by virtue of law of supply and demand. If production is high, you have more supply,” De Mesa said in a virtual press briefing.