Performance of Philippine Agriculture

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AGRO STRATUM

1

RESULTS

  1. Background Information

Figure 1: Performance of Philippine Agriculture (2013-2014)

Source: http://www.bas.gov.ph/?ids=agriperformance

Figure 2: Performance of Agriculture

Agriculture posted a 0.67 percent output increment in the first three (3) months of 2014. The slowdown in the sector's growth could be traced to the devastating effects of typhoons that hit the country in 2013. The output increases noted in the crops, livestock and poultry subsectors were negated by the contraction in the fisheries subsector. Gross earnings amounted to P386.7 billion at current prices. This represented a 10.75 percent increase from last year’s gross receipts.

Figure 3: Performance of Crops Subsector

The crops subsector grew by 1.53 percent. It contributed 54.40 percent to the total agricultural production. Production of palay went up by 3.28 percent while that of corn increased by 1.33 percent during the reference period. Significant increases were noted in the production of sugarcane, pineapple, cassava and onion. At current prices, the subsector grossed P225.8 billion or 17.58 percent higher than last year’s record.

Figure 4: Performance of Livestock Subsector

Production in the livestock subsector went up by 1.20 percent. The subsector shared 15.44 percent in the total agricultural output. The major source of growth was the hog industry which expanded by 1.25 percent. All other livestock components recorded increases in production. The subsector grossed P57.4 billion at current prices or 5.59 percent more than last year’s level.

The poultry subsector with its 14.46 percent contribution to total agriculture grew by 1.33 percent. Production gains in chicken at 2.50 percent and duck at 0.10 percent helped in sustaining the subsector’s growth. At current prices, the subsector’s gross value of production amounted to P45.7 billion. This indicated a 5.29 percent improvement from last year’s record.

Figure 5: Performance of Fisheries Subsector

The fisheries subsector contracted by 3.25 percent. The subsector accounted for 15.70 percent of total agricultural production. Reduced production was noted among all species except skipjack which registered a 4.62 percent output increase. The subsector grossed P57.8 billion, down by 2.64 percent from last year’s record.

Figure 6: Farmgate Prices

On the average, prices received by farmers increased by 10.01 percent from last year's quotations. In the crops subsector, prices expanded by an average of 15.81 percent from the 2013 levels. The livestock and poultry subsectors posted average price gains of 4.34 percent and 3.90 percent, respectively. Prices in the fisheries subsector went up by an average of 0.62 percent this year.

Table 1: Number and Area of Farms by Region: Philippines, 1991 and 2002

Region

Number of Farms

Area of Farms

2002

1991

2002

1991

Philippines

4,822,739

4610041

9,670,793

9974871

National Capital Region(NCR)

22,820

15136

71,632

53646

Cordillera Administrative Region

120,104

108251

177,839

155581

I. Ilocos region

276,766

311757

270,664

324501

II. Cagayan Valley

321,755

285721

540,812

530143

III. Central Luzon

341,466

350786

552,104

632493

IVA. CALABARZON

282,746

319865

588,516

703256

Region

Number of Farms

Area of Farms

2002

1991

2002

1991

IVB. MIMAROPA

220,967

209248

542,218

569814

VIII. Eastern Visayas

330,750

321456

723,048

695711

IX. Zamboanga Peninsula

252659

235674

785,294

675723

X. Northern Mindanao

319157

289469

746,901

768290

XI. Davao Region

229966

267224

758,335

795893

XII. SOCCSKSARGEN

330571

264095

775,309

746702

XIII. Caraga

210184

189600

523,407

517446

XIV. ARMM

248528

227571

533,410

565219

Source: National Statics Office, 1991 Census of Agriculture and Fisheries and 2002 Census of Agriculture

In 2002, the Philippines registered a total of 4.8 million agricultural farms, covering 9.7 million hectares. The total agricultural land area constituted 32.2 percent of the country’s total land area. Although the number of farms was 4.6 percent higher than the 4.6 million farms reported in 1991, the country’s total farm area decreased by three percent after a period of more than one decade. The decrease in total farm area could be attributed to the conversion of farmlands to residential and commercial purposes. As a result, the average farm size declined from 2.2 hectares per farm in 1991 to two hectares per farm in 2002.

Table 2: Temporary Crops of Philippines

Crops

Number of Farms

Area of Farms

Rice

2,149,971

3,922,522

Corn

1,458,446

2,439,067

Tubers, Roots, Bulbs

1,364,276

277,153

Sugarcane

167,186

344,670

Fruit Bearing Vegetables

1,088,913

92,220

Source: http://www.census.gov.ph/old/data/sectordata/sr0414402.htm

The table indicates that rice was consistently the major temporary crop of the Philippines accounting for 2.1 million farms with a combined area of 3.9 million hectares in 2002.This shows that the rice was the major temporary crop of the designated/allotted with a larger plantation area whenever planned to the Agri-complex to consistently gain the number/yield of production as the top temporary crop of the country followed by corn having 1.5 million farms, third are the tubers, roots and bulbs followed by the fruit bearing vegetables, sugarcane, leguminous plants, tobacco, leafy vegetables, stems, flower and peanuts.

Table 3: Yield comparisons of Hydroponics and Traditional Farming

Name of Crops

Hydroponic

Yield (per acre)

Traditional Farming

Yield (per acre)

Rice

12,000 lbs

750-900lbs

Tomatoes

180 tons

5-10 tons

Lettuce

21,000 lbs.

9,000 lbs

Name of Crops

Hydroponic

Yield (per acre)

Traditional Farming

Yield (per acre)

Cucumber

28,000 lbs

7,000 lbs

Potatoes

70 tons

8 tons

Cabbage

18,000 lbs

13,000 lbs

Cauliflower

30,000 lbs

15-30,000 lbs

Wheat

8,000 lbs

5,600 lbs

Source: http://www.ahga.org

The table shows that farming with the use of technology such as hydroponics can produce higher amount of yield than a traditional farming. Both results were based on 1-acre area, which is equivalent to 4,046.85 square meters. The table results show that the hydroponics system is more efficient than the traditional planting for the yield it can produce and less consumption of space to be applied to the Agri-complex. The table will also serve as basis for the allocation of area of the plantation/production area of the Agri-complex per floor

Figure 7: Share of Agriculture in Total Employment in Central Luzon, 2012

The figure above shows that the share of agriculture in total employment was declining. In 2012, the share went down to 32 percent.

Table 4: Daily Agricultural Wage Rate by Sex, Central Luzon, 2012

SEX

NOMINAL

REAL

Male

312.40

237.02

Female

260.91

197.96

Both

307.36

233.20

Source: http://countrystat.bas.gov.ph/?cont=16&r=3

The table shows the region's total employment in 2012 and about 21 percent was in the agriculture sector. Of this, 80 percent engaged in agricultural were male workers.

Total Employment (CY2012) = 3,877,000 persons

Agricultural Employment= 820,000 persons

Figure 8: Distribution of employment for Agriculture establishments by industry group in 2010

Source: National Statistic Office

Agriculture, Forestry and Fishing establishments employed a total of 128,767 workers in 2010. Of the total workforce, 127,944 workers or 99.4 percent were paid employees and the rest were working owners and unpaid workers.

By industry group, growing of perennial crops employed the largest number of workers with 55,747 or 43.3 percent of the total followed by growing of non-perennial crops providing jobs to 32,860 workers (25.5%). Fishing came in third with 15,482 workers (12.0%) while animal production ranked fourth with 11,434 workers (8.9%).

Table 5: Number of occurrences of typhoons in the Philippines by year and by region, 2007–2010

REGION

2007

2008

2009

2010

Total

Annual Ave.

Philippines

13

21

22

11

67

17

Cordillera Administrative Region

5

10

10

3

28

7

I. Ilocos Region

5

11

11

4

31

8

II. Cagayan Valley

8

11

12

4

35

9

III. Central Luzon

6

10

9

3

28

7

IVA. CALABARZON

4

6

7

2

19

5

IVB. MIMAROPA

3

9

4

2

18

5

V. Bicol Region

4

6

4

1

15

4

VI. Western Visayas

2

6

1

0

9

2

VII. Central Visayas

1

6

3

0

10

3

VIII. Eastern Visayas

2

7

3

0

15

4

REGION

2007

2008

2009

2010

Total

Annual Ave.

IX. Zamboanga Peninsula

0

1

0

0

1

0

X. Northern Mindanao

1

3

2

0

6

2

XI. Davao Region

0

2

0

0

2

1

XII. SOCCSKSARGEN

0

1

0

0

1

0

XIII. Caraga

1

5

3

0

9

2

XIV. ARMM

0

1

0

0

1

0

Source: PAGASA

The typhoons counted were only those with assigned signals. From 2007 to 2010, the Philippines experienced a total of 67 typhoons or an average of 17 typhoons yearly (Row 1). The number of typhoons increased in 2008 and 2009 and then abruptly decreased in 2010. The most number of typhoons occurred in 2009 at 22 while the least happened in 2010 at 11.

Table 6: Crops and Floor Space Requirements Computation

Crops

Yield per year

Floors (1 Ha)

Floors (3 Layers/Floor)

Rice/ Wheat / Cereal

1000000

9.29

3.09

Tubers, Roots, Bulbs

3499380

32.51

10.84

Fruit

1801337

16.80

5.60

Leguminous Plants

532814

4.95

1.65

Leafy Vegetables

3036499

28.40

9.47

Fruit Bearing Vegetables

1316426

12.23

4.08

TOTAL

11193456

104.18

34.73

Source: http:// www.ahga.org

  1. Market Study

As the study focuses on the architectural data analysis, it is delimited to provide detailed feasibility study. Although as part of the analysis of its architecture, estimated market study was analyzed based on the study of urban agricultural architecture structures that has been proposed in other country such as the Vertical Farming of Dr. Dickson Despommier, one of the participants of the study.

Table 7: Construction and Building Technology Cost Estimate of Vertical Farm

PROJECT COST

Project

Cost in dollar

Cost in peso

Sub-structure and Electochromic Glass Shell

$ 25,000,000

1,097,000,000

1000 ton Geothermal HVAC

$ 2,500,000

109,700,000

400 ton Chiller + Cooling Tower

$ 500,000

21,940,000

Living Machine-based Water Recycling System

$ 11,000,000

482,680,000

800 kWh/day tracking Photovoltaic Array

$ 500,000

21,940,000

4,500 kW Water-cooled lighting System

$ 2,000,000

87,760,000

Energy Infrastructure and Automatic System

$ 13,000,000

570,440,000

Floating Garden Hydroponic System

$ 1,700,000

74,596,000

Office and Laboratory Facilities

$ 5,000,000

219,400,000

TOTAL

$ 61,200,000

2,685,456,000 Php

Source: Medical Ecology – Spring 2006, Dickson Despommier, Ph. D, Vertical Farming Entrepreneurship Article

Table 8: Estimated Net Profit and Associated Calculation:

ESTIMATED EXPENDITURES

Project

Cost in dollar

Cost in peso

Total Labor Costs (includes benefits + insurance)

$2,135,000

93,683,800

Total Electricity Costs @ 95% Biogas Reliability

$130,000

5,704,400

Total Electricity Costs @ 5% Extreme Climate Conditions

$100,000.

4,388,000

Production Supplies

$700,000

30,716,000

Modified Atmosphere Packaging

$500,000

21,940,000

Biogas & Living Machine Operational Costs

$650,000

28,522,000

Building and Facilities Maintenance (0.75% per year)

$628,000

27,556,640

TOTAL

$ 4,843,000.

212,510,840 Php

Source: Medical Ecology – Spring 2006, Dickson Despommier, Ph. D, Vertical Farming Entrepreneurship Article

Total

$18,605,000

-$4,843,000

EBIT (Earnings before income taxes)

$13,762,000

Net Profit (after 10% income tax)

$12,385,800

Projected Return of Investment

Total Building Cost

$ 61,200,000.00

Annual Net Profit

$ 12,206,000.00

ROI:

4.94 ≈ 4 Years

As analyzed within the market study, the designing of agricultural tower shows the result of gaining the return of investment within the 4th year of its operation. Therefore, the study shows that building such facility is feasible and anticipated to be supported by the NGOs which aims are in line with the study

  1. Interview Results

The researcher conducted an interview to Agricultural participants and professionals to support and materialize the proposal

  • Dr. Ernesto D. Supan, PhD

Director, Extension and Training

Pampanga Agricultural College

Date interviews: July 18, 2014 around 5:18 pm

  1. Do you think this kind of proposal will promote and uplift the Philippine Agriculture to mankind?

Yes

  1. Do you think, having a greenhouse is economically friendly than in a traditional planting?

Yes of course, it will protect your crops from unexpected climate conditions such as typhoons, floods and pests. And with this, you’ll harvest more. Vegetables are weak in too much water while typhoons and winds hinder the plants to flower that will became the fruit.

  1. Do you have any comments, reactions and suggestions regarding to the proposal?

In terms of organic and greenhouses, animals can also be employ. Having a greenhouse in raising animals such as pigs, chicken, fish can beneficial too, resulting an organic food.

  • Dr. Virgilio M. Gonzales, Phd

Director, Extension and Training

Pampanga Agricultural College

Date interviews: July 23, 2014 around 10:40 am

  1. Do you think this kind of proposal will promote and uplift the Philippine Agriculture to mankind?

Yes, and I will produce crops all year round yet without using so much man power.

  1. Do you have any comments, reactions and suggestions regarding to the proposal?

Good luck to your project

  1. What other facilities or features in the proposal that you may suggest to promote and to uplift Philippine Agriculture?

If you will promote ecotourism, I think you should allow customers, buyers, or consumers can individually pick freshly crops directly to the plantation.

  • Arch. Michaela Rossette Santos, uap

Chair for the Committee on Environment, Ecology & nationwide Tree Planting, United Architects of the Philippines, LEED (Leadership Energy & Environmental Design) AP

Holy Angel University

Date interviews: July 31, 2014 around 4:15pm

  1. Do you think this kind of proposal will promote and uplift the Philippine Agriculture to mankind?

Yes, and I’m sure that it will encourage more youth to engage in agriculture

  1. Do you have any comments, reactions and suggestions regarding to the proposal?

Maximize the use of greeneries and ensure food security. Use fruit bearing plants as a landscape providing a farm garden that will address a healthy living community.

  1. What other facilities or features in the proposal that you may suggest to promote and to uplift Philippine Agriculture?

Provide camp training and team building facilities that will add enticement to your target user. Use or apply the technology were Koreans used in rice farming were can minimize the use of man power.

  1. What is the very first thingthat comes to your mind when you hear the word Agriculture?

Kalabaw (carabao). Poor people who work hard directly on heat of the sun, just to provide and to support their own family.

  • Dr. Arturo Figueroa

Licensed Agri-Engineer

Holy Angel University

Date interviews: July 31, 2014 around 11:45am

  1. Do you think this kind of proposal will promote and uplift the Philippine Agriculture to mankind?

Definitely, to reinstate the Philippine the title as an Agricultural Country especially your site Tarlac known as the “Melting Pot of the Philippines”.

  1. Do you have any comments, reactions and suggestions regarding to the proposal?

You can use building materials within the vicinity to minimize carbon footprint. I suggest using bamboo as your building material as known to be a super material. If not available, provide a plantation of bamboo, because this plant is very resilient, fast growing.

  1. What other facilities or features in the proposal that you may suggest to promote and to uplift Philippine Agriculture?

Providing and proper location of Sewage treatment plant is important to your development. I’ll suggest having an area where you can raise earthworms to decompose such garbage and yet produce fertilizers from your plantations.

  1. Survey Results

The survey aims to identify if the project is considered necessary and accepted by the society. The researcher use Purposive Method in gathering data, having 100 respondents. 75 of the respondents are students and professionals in the field of agriculture which is the future operator of the proposal, while the 25 respondents are merely students which is target of the study. The researcher were gathered both online and questionnaires. The sample questionnaire can be viewed on APPENDIX O of the book.

Significance of the Topic

  1. Do you think that it is time for the agricultural sector to gain a greater impression to the society?

  1. Is it important for the youth/student to educate and engaged in agricultural activities?

Interest in the Topic

  1. Would it be interesting for you to learn agriculture through camps/lessons?

Viability of the Proposal

  1. Would it be helpful for our country if we have a convention center, museum, research and development center, or similar facilities dedicated for agriculture?

  1. What system of farming do you prefer in agriculture?

  1. Under what facilities would you like to see in the proposed AGRI COMPLEX AND RECREATION HUB?

  1. Would it be helpful and productive to the country if we apply technology and new techniques in agricultural sector?

  1. Do you think the government is providing enough support to Philippine Agriculture?

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