Number of establishments up by 60.2 percent

The final results of the 2012 Census of Philippine Business and Industry (CPBI) showed that there were 2,461 establishments engaged in agriculture, forestry and fishing activities in the formal sector of the economy. More than half (50.7% or 1,247 establishments) of the total count were establishments with total employment of less than 20 while the remaining 49.3 percent (1,214 establishments) were establishments with total employment of 20 and over.

Among industries, hog farming led the sector with 397 establishments or 16.1 percent of the total count. Growing of sugarcane including muscovado sugar-making in the farm ranked second with 309 establishments or 12.6 percent share, followed by chicken broiler production with 273 establishments (11.1%). Other leading industries with more than five percent share in terms of number of establishments were as follows:

• Commercial ocean fishing, 220 establishments (8.9%)
• Contract animal growing services on a fee basis, 183 establishments (7.4%)
• Growing of cavendish banana, 153 establishments (6.2%)

The number of agriculture, forestry and fishing establishments in 2012 was higher by 60.2 percent compared with 1,536 establishments reported in 2010. The positive growth was mainly brought by the newly listed establishments in the 2011 and 2012 List of Establishments.

Figure 1 displays the percentage distribution of all agriculture, forestry and fishing establishments by industry sub-class in 2012.

By region, Central Luzon recorded the highest number of agriculture, forestry and fishing establishments with 463 or 18.8 percent of the total. Western Visayas followed next with 384 establishments (15.6%). Other leading regions in terms of number of establishments were as follows:

• CALABARZON, 314 establishments (12.8%)
• Davao Region, 299 establishments (12.1%)
• Northern Mindanao, 197 establishments (8.0%)
• Central Visayas, 178 establishments (7.2%)

Figure 2 shows the distribution of all agriculture, forestry and fishing establishments by region in 2012.

Growing of cavendish banana industry employs the highest number of workers

Total employment of all agriculture, forestry and fishing establishments reached 164,706 in 2012, an increase of 27,458 workers or 20.0 percent from 137,248 workers recorded in 2010.

The top five industries in terms of employment generation comprised 70.2 percent of the total workforce of the sector. Growing of cavendish banana employed the highest with 46,555 workers or 28.3 percent of the total, followed by growing of sugarcane including muscovado sugar-making in the farm with 34,508 workers or 21.0 percent share. Commercial ocean fishing came in third place with 16,475 workers (10.0%).  Hog farming and growing of pineapple followed next with 10,506 workers (6.4%) and 7,642 workers (4.6%), respectively. Listed below are other industries that employed more than five thousand workers.

• Chicken broiler production, 6,702 workers (4.1%)
• Growing of rubber tree, 5,581 workers (3.4%)
• Operation of irrigation systems through non-cooperatives, 5,371 workers (3.3%)

Figure 3 shows the percentage distribution of employment for all agriculture, forestry and fishing establishments by industry sub-class in 2012.

By region, Davao Region emerged as the largest employment generator in 2012 with 38,079 workers or 23.1 percent of the total. This was followed by Western Visayas with 29,571 workers (18.0%) and SOCCSKSARGEN with 18,459 workers (11.2%). Northern Mindanao and National Capital Region (NCR) came next with 17,049 workers (10.4%) and 12,411 workers (7.5%), respectively.

The average number of workers per establishment for the sector was recorded at 67 in 2012. Operation of irrigation systems through non-cooperatives recorded the highest ratio with 1,343 workers per establishment, distantly followed by growing of pineapple with 382 workers per establishment.

Employees in services to establish crops, promote their growth and protect them from pests and diseases, n.e.c. earn the highest average annual compensation

Total compensation paid by the sector to its employees in 2012 amounted to PHP22.2 billion, an increase of 31.4 percent from PHP16.9 billion in 2010.

Among industries, growing of cavendish banana paid the highest total compensation of PHP9.8 billion comprising more than two-fifths (44.1%) of the total. Commercial ocean fishing ranked second with PHP2.1 billion (9.5%). Operation of irrigation systems through non-cooperatives placed third with PHP1.7 billion (7.6%).

The sector posted an average annual compensation of PHP137,111 per employee in 2012, higher by 10.1 percent than the previous level of PHP124,549 in 2010. Employees in services to establish crops, promote their growth and protect them from pests and diseases, n.e.c. reported the highest average annual compensation with PHP521,345 per employee. This was followed by employees in growing of mango and papaya^1/, earning more than twice as much of the sector average in 2012, with an average annual compensation of PHP344,035 per employee.

Figure 4 presents the average annual compensation of employees for all agriculture, forestry and fishing establishments by industry sub-class in 2012.

At regional level, National Capital Region (NCR) led the sector with an average annual compensation of PHP272,379 per employee. SOCCSKSARGEN and Caraga followed with respective average compensation of PHP195,817 and PHP189,227.

Growing of cavendish banana generates highest value of output

In 2012, the value of output generated by the sector reached PHP137.4 billion, reflecting an increase of 59.5 percent from PHP86.2 billion in 2010.

The top five industries in terms of value of output generated PHP106.3 billion or more than three-fourths (77.3%) of the total. Growing of cavendish banana led the sector with output value of PHP56.9 billion accounting for 41.4 percent, followed by hog farming which generated an output value of PHP19.5 billion or 14.2 percent of the total. Other industries comprising the top five slots in terms of value of output generation were as follows:

• Commercial ocean fishing, PHP13.6 billion (9.9%)
• Chicken broiler production, PHP12.4 billion (9.0%)
• Growing of sugarcane including muscovado sugar-making in the farm, PHP4.0 billion (2.9%)

Figure 5 shows the percentage distribution of value of output for all agriculture, forestry and fishing establishments by industry sub-class in 2012.

Across the country, establishments in Davao Region shared the biggest output value generating PHP32.0 billion or 23.3 percent of the total, followed by SOCCSKSARGEN with PHP27.8 billion or 20.2 percent. On the other hand, establishments in Cordillera Administrative Region produced the least value of output with PHP28.5 million or less than 0.1 percent of the total.

Total expense amounts to PHP140.7 billion in 2012

Total expense, including compensation, incurred in business operation by all agriculture, forestry and fishing establishments amounted to PHP140.7 billion in 2012.

Almost half (46.0%) or PHP64.7 billion of the total expense was incurred by growing of cavendish banana, the highest among industries. Hog farming ranked a far second with PHP17.1 billion (12.2%), followed by commercial ocean fishing with PHP13.4 billion (9.6%). Chicken broiler production placed fourth with total expense of PHP11.4 billion (8.1%) and growing of sugarcane including muscovado sugar-making in the farm ranked fifth with PHP4.2 billion (3.0%).

Agriculture, forestry and fishing establishments located in Mindanao area spent the most in 2012. The following were the top three regions which comprised 60.7 percent of the total expense of the sector:

• Davao Region, PHP33.6 billion (23.9%)
• SOCCSKSARGEN, PHP29.6 billion (21.0%)
• Northern Mindanao, PHP22.3 billion (15.8%)

Growing of cavendish banana produces highest value added

In 2012, value added generated by all agriculture forestry and fishing establishments reached PHP32.1 billion, grew by 15.8 percent from PHP27.8 billion produced in 2010.

Among industries, growing of cavendish banana contributed the biggest share in value added with PHP8.5 billion or 26.3 percent of the total. Commercial ocean fishing placed second with PHP4.1 billion or 12.7 percent, followed by operation of irrigation systems through non-cooperatives with PHP3.4 billion or 10.7 percent. The value added of other leading industries with at least five percent share to the total were listed below.

• Hog farming, PHP3.0 billion (9.5%)
• Chicken broiler production, PHP2.3 billion (7.1%)
• Growing of sugarcane including muscovado sugar-making in the farm, PHP1.8 billion (5.6%)
• Growing of pineapple, PHP1.8 billion (5.5%).

At the regional level, Davao Region recorded the biggest share to value added amounting to PHP7.7 billion or 23.8 percent of the total, followed by SOCCSKSARGEN with PHP5.1 billion (15.8%) and NCR with PHP4.8 billion (14.8%). Central Luzon came in fourth with PHP3.6 billion (11.3%).

Culture of freshwater crustaceans (except prawns), bivalves, and other mollusks yields the highest productivity

Ratio of value added to employment, a simple measure of labor productivity, was recorded at PHP195,074 per worker, a slight decrease of 3.5 percent  from PHP202,197 in 2010.

The highest labor productivity among industries was recorded in culture of freshwater crustaceans (except prawns), bivalves, and other mollusks, valued at PHP1.5 million per worker. Growing of corn, except young corn (vegetable) ranked second with PHP1.2 million per worker. This was followed by growing of paddy rice in lowland, irrigated and rainfed^4/ with PHP776,338 per worker.

Figure 6 shows the labor productivity for all agriculture, forestry and fishing establishments by industry sub-class in 2012.

The highest productivity among regions was recorded in NCR, estimated at PHP382,936 per worker, followed by Central Luzon with PHP365,430 per worker and CALABARZON with PHP294,243 per worker.

Gross addition to tangible fixed assets reaches PHP10.0 billion

Gross addition to tangible fixed assets, defined as capital expenditures less sale of fixed assets, rose by 106.8 percent to PHP10.0 billion in 2012 from PHP4.9 billion in 2010.

Among industries, growing of cavendish banana acquired PHP2.7 billion or 27.3 percent of the total value of gross addition to tangible fixed assets, followed by operation of irrigation systems through non-cooperatives with PHP2.2 billion or 21.6 percent share.

NCR led all regions with a total value of PHP2.4 billion or 23.4 percent of the total, followed closely by SOCCSKSARGEN with PHP2.2 billion (22.0%). Other regions accounting for the biggest shares were as follows:          

• Davao Region, PHP1.5 billion (15.2%)
• Northern Mindanao, PHP1.1 billion (11.0%)
• Central Luzon, PHP1.0 billion (9.9%)

Total subsidies received amounts to PHP3.6 billion

Subsidies granted by the government to support the business operation of all agriculture, forestry and fishing establishments in 2012 amounted to PHP3.6 billion, grew more than five times (470.9%) than PHP622.8 million in 2010.

Combined value of the top two industries in terms of subsidies received, amounted to PHP3.5 billion accounting for 98.1 percent of the total. Operation of irrigation systems through non-cooperatives received the highest with PHP2.3 billion or 64.9 percent of the total subsidies. Services to establish crops, promote their growth and protect them from pests and diseases, n.e.c. followed with PHP1.2 billion (33.3%).

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2012 Census of Philippine Business and Industry (CPBI) for the Agriculture, Forestry and Fishing Sector.

The 2012 CPBI is a forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census provide information on the levels, structure, performance, and trends of economic activities of the country. It also serves as benchmark information in the measurement and comparison of national and regional economic growth.

The census was conducted nationwide in April 2013 with the year 2012 as the reference period of data, except for employment which is as of November 15, 2012. 

The income and expense account in the Financial Statement of establishment was adopted in the design of sectoral questionnaires to capture data for the 2012 CPBI. This allowed respondents of the census an ease in accomplishing the questionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred by the establishment treated on a consumed basis.

Data are presented at the national, regional and industry sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC) for the sector.   

Legal Authority

The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:

• Commonwealth Act No. 591 (An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein)

• Presidential Decree No. 418 (Reconstituting the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office, under the administrative supervision of the National Economic Development Authority)

• Executive Order No. 121 (Reorganization Act of the Philippine Statistical System)

• Executive Order 352 (Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector)

• Executive Order 5  (Strengthening the National Statistics Office)

Scope and Coverage

The 2012 CPBI covered establishments engaged in the formal sector of the economy classified by economic activity 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 of Motor Vehicles and 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 Work Activities (Q)
• Arts, Entertainment, and Recreation (R)
• Other Service Activities (S)

The census was confined to the formal sector of the economy, which consists of the following:

• All establishments with total employment (TE) of 10 and over
• All establishments with TE of less than 10, except those with legal organization classified as single proprietorship and economic organization classified as single establishments.

Unit of Enumeration

The units of enumeration for the 2012 CPBI are the establishment and enterprise. However, this special release is confined to the results of mining and quarrying sector with establishment as the unit of enumeration.

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 a specific date. 

Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification.

Methodology

All establishments in the formal sector for the Agriculture, Forestry and Fishing Sector were covered on a 100 percent or on a certainty basis because of their relatively small number.

The estimate of the total of a characteristic in an industry domain in each geographic domain (region) is

where:

p = 1, 2,..., 17 regions (geographic domains)

x_pj = value of the j^th establishment in an industry domain within each region

j = 1, 2, 3, …, m_p establishments

m_p = number of establishments in an industry domain within each region

National level estimate of a characteristics by industry domain was obtained by aggregating separately the estimates for the particular industry domain from all the regions.

Response Rate

Response rate for Agriculture, Forestry and Fishing Sector was 89.61 percent (3,001 out of 3,349 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or transferred, out of scope, refusals, duplicates and referrals.

Reports of the remaining non-reporting establishments were imputed based on established imputation methods and from other available administrative data sources.  However, reports of establishments which were found to be duplicates and out of business in 2012, were not imputed.

Limitation of Data

The 2012 CPBI covered only the formal sector of the economy.

Concept and Definitions of Terms

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.

Total employment is the number of persons who worked in for the establishment as of November 15, 2012.

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.

Compensation includes 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.

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.

Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.

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 on-line system. Excluded are orders received from telephone, facsimile and e-mails.

Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser prices including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.

Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.

Intermediate expense are expenditures incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity and water purchased, agricultural/forestry/fishery  and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.

Value added is gross output less intermediate cost. Gross output for the agriculture, forestry and fishing sector is value of output plus non-industrial services done for others (except rent income from land). Intermediate input is intermediate expenses plus non-industrial services done by others (except rent expense for land) and other costs.

Value of output represents the sum of the receipts from products and by-products sold, agricultural/forestry/fishery services rendered, industrial services, and goods sold in the same condition as purchased  less the cost of goods sold; and  value of fixed assets produced on own account and change in inventories of finished products and work-in-progress.

Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

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.

Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.

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 assets are resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishment.