The Philippines' agriculture sector expanded by 3.1 per cent in 2025, its fastest pace in eight years, according to Agriculture Secretary Francisco Tiu Laurel Jr. The sector grew despite 23 storms during the year, including 22 in the second half, which coincided with key harvest periods.
Agricultural exports rebounded, supported by recovering banana shipments and increased demand for other tropical fruits. Philippine avocados gained access to the Japanese market for the first time, while durian entered new export destinations. Domestically, onion prices stabilized after previous volatility.
"These are early gains from a longer and deliberate reset of the sector," Laurel said.
Laurel outlined a strategy focused on improving profitability in primary production. "Farmers and fisherfolk must be profitable, agriculture must reclaim its role as a serious economic driver, and the sector must build hope and futures that draw in a new generation," he said.
The administration approved an expanded agriculture budget, allocating funds to farm-to-market roads, warehouses, food hubs, post-harvest facilities, dryers, and a national command center aimed at improving coordination across the sector.
"These are long-game investments, and they matter," Laurel said.
However, Laurel indicated that current funding levels are insufficient to address structural constraints. The Department of Agriculture estimates that US$7.1 billion to US$8.9 billion per year is required, sustained over two administrations, to reverse underinvestment, rebuild institutions such as the National Food Authority, and strengthen resilience to external shocks.
Short-term measures contributed to easing food prices. Rice prices declined in 2025, reducing inflation pressure, and the Benteng Bigas, Meron Na program expanded nationwide through direct procurement from local farmers. Cold storage projects and food hubs have moved from planning to construction, targeting reductions in post-harvest losses.
Laurel noted that agriculture has expanded by more than 3 per cent in eight of the past 20 years. He added that sustained growth will depend on positioning agriculture as a viable investment sector capable of retaining the next generation in farming and fishing.
Source: SunStar
