Labor Shortage in Agribusiness and Food Industry: Why It’s Happening and How to Fix It

In the Philippines, the labor shortage in agribusiness and the food industry is becoming a major concern. As a result, operations managers struggle to find the right skilled farmers who can effectively grow and harvest crops.

While agriculture remains vital in the economy, younger generations lack the interest to work in this field.  As city-based industries like BPOs attract talent, the agribusiness workforce continues to shrink. 

Unless this is addressed, food security and supply chains will be at risk. But with the right manpower service strategy, agribusinesses can bounce back.

In this blog, we’ll explore the key reasons behind the labor shortage in Philippine agribusiness, its impact on day-to-day operations, and strategic steps you can take to keep your business running efficiently.

Major Decline of Employment Rate in Philippine Agriculture Over The Years

Agriculture employment in the Philippines has dropped over the years. The number of people working in the sector kept going down, and by 2023, only 11.19 million workers remained. 

As a result, the share of agriculture in the country’s total employment in the same year fell to 22 percent.

Farm labor shortage statistics from the World Bank illustrate a steady decline in the employment rate in the agriculture sector in the Philippines, from the early 1990s to the early 2020s.

Understanding Labor Shortage in the Agriculture and Food Industry

The labor shortage in agribusiness isn’t just about a declining workforce — it also threatens food security. Delays in harvesting, increased crop losses, and rising labor costs can all lead to serious food supply chain challenges.

Labor Challenges in the Philippine Agribusiness and Food Industry

Aging Farmers

Filipino farmworkers are getting older, and many are close to retirement. But there aren’t enough young people who are willing to step in to replace them.

Low and Uncompetitive Wages

Agricultural jobs often pay less than city-based roles. This wage gap makes it hard for operations managers to attract a farm workforce. The result? A growing skills shortage in agribusiness.

High Turnover Rates

Agricultural jobs are seasonal, and farmers often switch employers based on the crop cycle. This affects productivity, as new workers take time to learn the process. 

Additionally, high turnover can lead to inconsistencies in operations and a lack of quality control. 

Lack of Industry Training

In the competitive industry of agriculture, simply selling products isn’t enough. Beyond manual labor, it’s important to train workers with the right skills to keep up with modern farming and food production.

This helps customers make wise decisions based on the presented data that farms generate.

Tough Working Conditions

Farming is hard work. It often involves long hours, heat exposure, and lifting heavy loads. The job also depends on the seasons, which can be unpredictable. 

These tough conditions discourage younger generations from entering the field. Without improvements, the agriculture industry will continue to struggle with retention.

Urban Migration and the BPO Pull

Cities provide better opportunities and modern job options. Many young workers move there for more stable and respected careers. As a result, rural areas are left with an agricultural manpower shortage.

The Importance of Agriculture: Challenges and Solutions

Identifying the challenges in the agriculture sector helps economic leaders and local farmers in mitigating potential risks to business and resolving typical agricultural problems. Check out this blog to learn more about the importance of agriculture.

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Kabraso Multipurpose Cooperative: A Trusted and Reliable Partner of Sumifru Philippines

Kabraso has recently earned an impressive internal quality audit score from Sumifru Philippines. In the 2024 assessment, we achieved an impressive 92 percent rating; the highest among all Sumifru’s current roster of service providers. 

This achievement reflects our commitment to quality, compliance, and continuous improvement in every aspect of our operations and staffing solutions. A simple yet impactful step in solidifying our ability and preparedness as we move toward the future of agribusiness.

Conclusion

The labor shortage in the Philippine agribusiness and food industry is a serious concern. It threatens food security, slows production, and affects rural growth. If left unresolved, your business will continue facing rising costs and shrinking outputs.

But this challenge can be addressed. With enough support from a manpower service provider like Kabraso Multipurpose Cooperative, you can gain access to long-term staffing solutions, upskilling programs, and full-service support tailored to your needs. 

By investing in the right workforce that offers strategic solutions, the agriculture sector can boost productivity, rebuild its strength, and secure the future of agriculture in the Philippines.