Philippines Agriculture

Having endured several challenging years marked by damaging typhoons, the Philippines’ agricultural industry made a spirited recovery in 2014, setting the scene for further growth this year across a host of segments.

Growing rice consumption in the Philippines has created a host of challenges and opportunities for stakeholders, as an ongoing lack of mechanisation and post-harvest inefficiencies have prevented the government from meeting its goal of achieving rice self-sufficiency. Although palay (unhusked rice) production has made steady gains in recent years, farmers continue to face high costs due to the lack of technological uptake. This has led to heavy importation, with the current administration recently awarding two high-value contracts to foreign firms for buffer stock supply. Mechanisation, most likely to be achieved through private sector investment, represents a promising means of increasing rice production in the future.

In response to rising domestic demand and a fall in production due to last year’s extreme weather conditions, the Philippines has scaled back sugar exports this year, but longer-term prospects for overseas sales as well as expansion in the local market could drive growth in the sector.