Animal production leads the sector in terms of number of establishments
The final results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 2,995 establishments in the formal sector of the economy were engaged in agriculture, forestry and fishing in 2017. This represents a 5.6 percent increase from the 2,835 establishments recorded in 2016. Animal production led the sector in terms of number of establishments with 1,238 or 41.3 percent of the total. (Figure 1 and Table A)
Growing of perennial crops employs the highest number of workers
The sector generated a total employment of 170,186, an increase of 2.9 percent from the total employment recorded in 2016. The average workers per establishment was registered at 57 with growing of perennial crops posting the highest average employment of 200 workers per establishment. Growing of perennial crops with 60,962 or 35.8 percent, recorded the highest number of employees among industry groups. (Figure 2, and Tables A, 1 and 2)
Average annual compensation reaches PhP161,189 per paid worker
The sector paid a total compensation of PhP27.0 billion in 2017, which translates to an average annual compensation of PhP161,189 per paid worker. Workers in support activities to agriculture and post-harvest crop activities were paid the highest with an average annual compensation of PhP235, 276 per paid worker. (Figure 3 and Table A)
Growing of perennial crops yields the highest total value of output while animal production incurs the highest intermediate expense
Total value of output generated by the sector reached PhP166.2 billion in 2017, an increase of 13.5 percent from the PhP146.4 billion value of output reported in 2016. Growing of perennial crops generated the highest value of output which amounted to PhP65.6 billion (39.5%). This was followed by animal production with PhP56.7 billion (34.1%). (Figure 4 and Table A)
The total intermediate expense incurred by the sector amounted to PhP96.6 billion in 2017, a 15.7 percent increase from the previous year’s expense of PhP83.5 billion. Animal production with PhP38.2 billion (39.6%) incurred the highest expense, followed by growing of perennial crops with PhP32.2 billion (33.3%). (Figure 4 and Table A)
The income per peso expense generated by the sector stood at 1.11, higher than the 1.06 ratio in 2016. This implies that for every peso spent in 2017, an income of PhP1.11 was generated. (Table A)
Value added for the sector amounts to PhP55.4 billion
Value added generated by the sector reached PhP55.4 billion, a 24.3 percent increase from the PhP44.6 billion value added reported in 2016. Growing of perennial crops with PhP27.6 billion (49.8%) accounted for almost half of the total value added for the sector. (Tables A and 1)
Labor productivity, defined as the ratio of value added to total employment, was recorded at PhP325,587 per worker. This was higher by 20.8 percent than the labor productivity posted in 2016. (Table A)
Gross additions to tangible fixed assets reaches PhP12.7 billion
Gross additions to tangible fixed assets acquired by the sector reached PhP12.7 billion in 2017, higher by 39.5 percent than the previous year’s record of PhP9.1 billion. Among industry groups, animal production contributed the highest gross addition to tangible fixed assets at PhP5.3 billion or 41.5 percent of the total. (Table 1)
Government subsidy amounts to PhP3.7 billion
Subsidy granted by the government for the sector amounted to PhP3.7 billion which was more than twice the amount granted in 2016. Support activities to agriculture and post-harvest crop activities with subsidies of PhP3.6 billion (97.5%) received almost all of the subsidy. (Table 1)
(Sgd.) ROSALINDA P. BAUTISTA
Deputy National Statistician
Sectoral Statistics Office
This Special Release presents the final results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for all Agriculture, Forestry and Fishing establishments (Sector A).
The 2017 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance and trends of economic activities of the formal sector in the entire country for the year 2017.
The survey was conducted nationwide in 2018 with the year 2017 as the reference period of data, except for employment which is as of 15 November 2017.
Establishment Data Management System (EDMS) was still utilized in the decentralized processing of the 2017 ASPBI questionnaires in the provinces as well as the online accomplishment of questionnaire through PSA website.
Data are presented at the national and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC).
Data are also generated at the regional level.
The conduct of the 2017 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.
Scope and Coverage
The 2017 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:
- Agriculture, Forestry and Fishing (A)
- Mining and Quarrying (B)
- Manufacturing (C)
- Electricity, Gas, Steam, and Air Conditioning Supply (D)
- Water Supply; Sewerage, Waste Management and Remediation Activities (E)
- Construction (F)
- Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles (G)
- Transportation and Storage (H)
- Accommodation and Food Service Activities (I)
- Information and Communication (J)
- Financial and Insurance Activities (K)
- Real Estate Activities (L)
- Professional, Scientific and Technical Activities (M)
- Administrative and Support Service Activities (N)
- Education (P)
- Human Health and Social Activities (Q)
- Arts, Entertainment and Recreation (R)
- Other Service Activities (S)
The survey was confined to the formal sector of the economy, which consists of the following:
- Corporations and partnership
- Cooperatives and foundations
- Single proprietorship with employment of 10 and over
- Single proprietorships with branches
Hence, the 2017 ASPBI covered only the following economic units:
- All establishments with total employment (TE) of 10 and over, and;
- All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).
Frame of Establishments
The frame for the 2017 ASPBI was extracted from the 2017 List of Establishments (LE). The estimated number of establishments in operation in the country in 2017 totaled to 917,582. About 228,112 establishments (24.9%) of the total establishments comprised the establishment frame or are within the scope and coverage of the 2017 ASPBI.
Unit of Enumeration
The unit of enumeration for the 2017 ASPBI is the establishment. An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location.
Classification of Establishments
An establishment is categorized by its economic organization, legal organization, industrial classification, employment size, and geographic location.
Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.
Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.
The industrial classification of an economic unit was determined by the activity from which it derives its major income or revenue. The 2009 PSIC was utilized to classify economic units according to their economic activities.
The size of an establishment is determined by its total employment (TE) as of specific date.
Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification.
The 2017 ASPBI used stratified systematic sampling with 5-digit PSIC serving as first stratification variable and employment size as the second stratification variable.
a. Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99)
The estimate of the total of a characteristic for the non-certainty employment strata in an industry domain in each region,
s = denotes the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99
p = 1, 2,...17 regions (geographic domains)
xspj = value of the jth establishment in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 for an industry domain in each region
j = 1, 2, 3,…nsp establishments
Wspj = weight of the jth establishment in the non-certainty employment strata with TE 20 to 49 and TE 50 to 99 for an industry domain in each region
Nsp = total number of establishments in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE of 20 to 49 and TE of 50 to 99 for an industry domain in each region
b. Certainty Stratum (TE 100 and over)
The value of the total of a characteristic for the certainty employment stratum in an industry domain in each region,
c = denotes the certainty employment strata in TE of 100 and over
p = 1, 2,...17 regions (geographic domains)
xcpj = value of the jth establishment in the certainty employment strata in TE of 20 and over in an industry domain within each region
j = 1, 2, 3, …mcp establishments
mcp = number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within each region
c. Total Estimate for TE of 20 and Over
The estimate of the total of a characteristic for the industry domain in each region (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,
where dp denotes the industry domains in each region.
National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates for the particular industry domain from all the regions.
For Establishments with TE of Less Than 20
a. Non-Certainty Stratum
The estimate of the total of a characteristic for the non-certainty employment stratum TE less than 20 in the sth industry domain was
s = denotes the non-certainty employment strata in TE of less than 20
Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
j = 1,2,3...ns establishments
Wsj = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain
Ns = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
ns = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain
Weight Adjustment Factor for Non-Response
To account for non-response in the non-certainty strata, the adjustment factor (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight, defined as N/n, was recomputed as
Thus, the adjusted weight (W’sj) for employment stratum in TE 1-9 or TE 10-19 was
Ns = total number of establishments in the non-certainty employment stratum with TE 20-99 for the industry domain within each geographic domain (region)
n’s = number of responding establishments in the non-certainty employment stratum with TE 20-99 for the industry domain within each geographic domain (region)
For the non-certainty employment stratum for the selected industry domain with TE 20-99, the adjusted weight (W'spj) was
Nsp = total number of establisments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)
n'sp = number of responding establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)
Response rate for Agriculture, Forestry and Fishing Sector was 90.0 percent (1054 out of 1171 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 24 establishments responded online.
Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2017.
Limitation of Data
Only the formal sector was covered in the survey.
Concepts and Definitions of Terms
Change in inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.
Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.
E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network or other online system. Excluded are orders received from telephone, facsimile and e-mails.
Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.
Establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location.
Expense refers to cost incurred in an enterprise effort to generate revenue, representing the cost of doing business. This is treated on a consumed basis. It excludes cost incurred in the acquisition of income generating assets.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.
Intermediate expense are expenditures incurred in the production of goods such as materials and supplies used; fuels, lubricants, oils and greases used; electricity and water purchased, and industrial services done by others.
Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.
Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay and other benefits.
Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.
Total employment is the number of persons who worked in or for the establishment as of 15 November 2017.
Value added is gross output less intermediate input. Gross output for the agriculture, forestry and fishing sector is value of output plus income from non-industrial services done for others (except rent income from land). Intermediate input is intermediate expense plus expense for non-industrial services done by others (except rent expense for land) and all other expenses.
Value of output represents the sum of the receipts from revenue from main activity, income from industrial services done for others, goods sold in the same condition as purchased less the cost of goods sold and value of fixed assets produced on own account.