The agriculture, aquatic and natural resources sectors are the source of livelihoods for about a quarter of the Philippine population but contribute to less than 10% of GDP.

There has been stagnant growth in the sectors and continuing decline in agricultural productivity, in part, due to land reform policies that have reduced average farm size by 34% and agricultural productivity by 17%. Transboundary animal diseases, plant pests and diseases, low farm productivity, market access issues, disasters and climate change impacts are key issues.

Rural communities

More than half of the Philippine population lives in rural areas, with most engaged in the agriculture, aquatic and natural resources sectors for their livelihoods. The average farmer’s age is in the range of 57 to 59 years. There are observed trends where the children of farming families increasingly shift to urban jobs or overseas work, as there are unclear incentives for young people to engage in the agriculture, aquatic and natural resources sectors. This demographic trend of losing young people from rural communities is a significant policy challenge for the Philippine government.

Political and economic environment

Recognising the important role of the agriculture sector in the economy, the government through the Philippine Development Plan 2023–2028 focuses on transformative strategies and reforms to increase productivity and farm incomes. Development partners are requested to support this plan, and these requirements align well with the objectives of ACIAR and the capabilities and comparative advantage of the Australian innovation system. To maximise the impact of ACIAR programs in the Philippines, the strategy is to engage all levels of government (national government agencies, legislative branch and local and provincial government units), broker partnerships with government, academic, non-government and business organisations as appropriate and consider convergence of research projects in provinces where there is strong political support and willingness to co-design and co-invest with ACIAR.

Climate change

The Philippines is an archipelagic country and is highly vulnerable to the impacts of climate change, including rising sea levels, rising temperatures and extreme weather events. The Philippines suffers constant exposure to cyclones, landslides, floods and droughts, and the occurrence of these is anticipated to be more frequent as a more variable climate evolves. Extreme weather events impact farming activities, coastline communities, and those whose livelihoods depend on climate-sensitive natural resources. While bearing significant impacts from climate change, the agriculture, aquatic and natural resources sectors are the second largest source of greenhouse emissions.

Food insecurity

Food insecurity is a significant issue for the poorest and most vulnerable people of the Philippines. According to the FAO’s State of Food Security and Nutrition in the World 2023 report, 44.7% of the Philippines population experiences moderate to severe food insecurity. Studies show that households that rely on agricultural livelihoods are significantly more food insecure than urban households, as their incomes are insufficient to support their daily needs.

Partnering with Australia

The Philippines is one of Australia’s long-standing bilateral partners, commemorating 78 years of diplomatic relations in 2024. Bilateral cooperation is underpinned by the Philippines–Australia General Agreement on Development Cooperation Treaty and guided by the Memorandum of Understanding on Scientific and Technical Cooperation (2009) and Record of Partnering Arrangements (2018).

In September 2023, Australia and the Philippines’ relationship was elevated, with the signing of the Joint Declaration on a Strategic Partnership by Philippine President Ferdinand Marcos Jr and Australian Prime Minister Anthony Albanese. It has 4 priority areas:

• Trade and Investment
• Defence and Security
• Development Cooperation
• People Connections

ACIAR contributes to these priorities through its research and capacity development programs in partnership with government, academe, business and non-government institutions.

The Department of Science and Technology–Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (DOST–PCAARRD) is the bilateral partner of ACIAR. The partnership between DOST–PCAARRD and ACIAR is comprehensive and strategic, characterised by joint decision-making on priorities, co-development and co-investments in research and capacity development projects, joint monitoring, evaluation and learning and knowledge exchange.

The Philippines takes a whole-of-government approach to research and development through its Harmonised National Research and Development Agenda in Agriculture, Aquatic and Natural Resources Sector, for which DOST–PCAARRD has the mandate for leading national consultation, allocation of resources and oversight for projects. Together, ACIAR and DOST–PCAARRD prioritise research areas where Australia’s expertise complements and adds value to existing in-country expertise. ACIAR and DOST-PCAARRD’s partnership continue to deepen and expand and is reviewed annually through a Partnership health check.

Country priorities

In 2024, ACIAR and DOST-PCAARRD co-developed a collaboration strategy which identifies the joint strategic goal and objectives and priority research and capacity development agenda for the next 5 years. This is anchored on the Philippines Harmonised National Research and Development Agenda for agriculture, aquatic and natural resources and aligned with the Australian Development Partnership Plan in the Philippines.

The goal of the strategy is to contribute to improvements in productivity, competitiveness and sustainability of agrifood systems for human, environmental and economic resilience, through collaborative research, capacity development and effective dissemination and uptake of research outcomes.

Through 4 strategic objectives, the strategy aims to:

• boost agricultural productivity through sustained improvements in soil health that will enable farmers to enhance and intensify productivity and quality of produce, by effective management practices for pests, water, soils and nutrients, and enhanced measurement, analysis and interpretation capacity
• improve biosecurity, food safety and on-farm productivity through integrated crop and livestock management, improved post-harvest storage and management, disease and pest management, through improved surveillance, varietal selection and disease control
• promote inclusive agrifood value chains for sustainable livelihood and income generation, with a focus on priority industries and agribusiness initiatives
• improve sustainability and biodiversity of aquatic ecosystems to enable sustainable food production, with a focus on culture systems, biodiversity in freshwater and marine ecosystems, genomics in the study of diseases and resistance to climate change.

The strategic objectives are under-pinned by cross-cutting objectives that is integral to maximising the impact of the ACIAR research program in the Philippines. These objectives aim to:

• enhance resilience of agrifood systems through adaptation to climate variability and climate change
• improve gender equity
• build scientific and policy capability of individuals and partner institutions
• promote R&D results and technology transfer.

2024–25 research program

In 2024–25, ACIAR supports 21 agricultural research-for-development projects in the Philippines, 9 of which are specific to this country and the remainder are part of regional projects.

The projects address the high-level objectives outlined in the ACIAR 10-Year Strategy 2018–2027, as well as specific issues and opportunities identified by partner countries and ACIAR.

All research investments have the underlying goal of also contributing to:

• agrifood systems and rural communities resilient to the impacts to climate change
• equitable research benefits and outcomes for all community members
• increased scientific and policy capability of individuals and partner institutions.

Current and proposed projects in the Philippines, 2024–25