2003 Annual Survey of Philippine Business and Industry (ASPBI) - Agriculture, Hunting And Forestry Sector : Final Results

Reference Number: 220
Release Date: 21 March 2006

 

 

Number of Agriculture and Forestry Establishments Decreases

  1. In 2003, there were 2,951establishments engaged in business operations in the agriculture, hunting and forestry sector according to the 2003 Annual Survey of Philippine Business and Industry. The number of establishments decreased by 2.4 percent from 3,022 establishments recorded in the year 2001. More than three-fourths (76.0% or 2,242) of these establishments have an average total employment (ATE) of less than 20 workers and the remaining 24.6 percent accounted for establishments with ATE of 20 workers or more. 
     
  2. More than one-fourth (26.1% or 185 establishments) of the total establishments with ATE of 20 or more workers were located in Western Visayas (Region 6). Davao (Region 11) came in second with 130 establishments or 18.3 percent. 
     
  3. Animal farming industry dominated the sector with establishments count of 1,376 or 46.6 percent of the total. This was followed by establishments engaged in growing of crops, (32.3%), agricultural services (19.1%), and forestry related activities (2.0%). However, there was no establishment engaged in hunting, trapping and game propagation and related service activities in 2003. Figure 1 shows the distribution of establishments by industry division in 2003 for the agriculture, hunting and forestry sector.

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Employment Grows by 2.5 percent 
 

  1. In 2003, total employment of the sector was 115,691 workers. This represents an increase of 2.5 percent from the employment figure of 112,823 recorded in 2001. 
     
  2. Although Davao (Region 11) ranked second in terms of the number of establishments with ATE of 20 or more workers, the region continued to generate the biggest employment of 32,506 workers. 
     
  3. Establishments engaged in growing of crops employed the biggest number of workers at 83,521, which is equivalent to 72.2 percent of total employment for the sector. Figure 2 shows a comparison of employment by industry division for the agriculture, hunting and forestry sector in 2003 and 2001.

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Average Annual Pay was P75,012 per Worker

  1. Total compensation paid during the year 2003 amounted to P8.3 billion, indicating an average annual compensation of P75,012 per paid agricultural and forestry worker. Compared to the average annual compensation of P65,204 in 2001, average pay increased by 15.0 percent. In real terms, however, average pay per worker increased by only 8.0 percent.

 

  1. Among industries, agricultural services paid the highest average annual compensation of P87,174 per paid worker. Figure 3 compares the average annual compensation by industry division for the agriculture, hunting and forestry sector in 2003 and 2001.

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Revenue Posts 14.5 Percent Growth 
 

  1. Revenue generated by the sector in 2003 was estimated at P39.7 billion, posting a growth of 14.5 percent from P34.7 billion registered in 2001. Industry comparison showed that establishments engaged in growing of crops earned the biggest revenue for the sector amounting to P22.6 billion or 57.1 percent to total revenue.

 

Labor Productivity is P119,500 
 

  1. Labor productivity for the sector, measured as the ratio of value added per paid employee, was estimated at P119,500.

 

  1. Labor productivity for animal farming was the highest among industries valued at P202,041 per worker while it was lowest for agricultural services at P95,532. Figure 4 shows a comparison of the labor productivity by industry division for the agriculture, hunting and forestry sector.

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TECHNICAL NOTES

Scope and Coverage

The 2003 Annual Survey of Philippine Business and Industry (ASPBI) aimed to collect and generate information on the levels, structure and trends of industries and businesses in the entire country. It has the calendar year, 2003, for its reference period. One of the 14 sectors covered in the survey is the agriculture, hunting and forestry sector.

Sample establishments of the 2003 ASPBI were selected using one-stage stratified systematic random sampling.

Response Rate

The response rate for 2003 ASPBI for the agriculture, hunting and forestry sector is 88.4 percent of the 965 sample establishments. Adjustments for non-response were made through imputations.

Concepts and Definition of Terms

Establishments An economic unit under single ownership or control, i.e., under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location, and having permanency of assets in its premises during the operation. It is also defined as the unit that is engaged in the production of the most homogenous group of goods and services, usually at one location, but sometimes over a wider area, for which separate records are available that can provide data concerning the production of these goods and services and the materials, labor and physical resources used in this production.

Agricultural Establishments Farm, plantation, hacienda, ranch or company engaged in the production of agricultural crops, livestock, poultry and other animals including animal products; firm providing agricultural, animal and horticultural services.

Forestry Establishments - A company engaged in logging operation; planting, replanting and conservation of forest; hunting, trapping and game propagation

Economic activity or business is the activity of the establishment as classified under the 1994 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.

Average total employment (ATE) is the sum of the number of persons who worked in or for this establishment for all months of the year divided by 12, regardless of the number of months the establishment is in operation.

Total Employment includes all persons who worked in or for the establishment as of November 15, 2003.

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, workers receiving pure commissions only and workers on indefinite leave.

Working owners are owners who are actively engaged in the management but do not receive regular pay, i.e., not included in the payrolls. Managers and directors of corporations working for pay are reported as managers.

Unpaid workers are persons working for at least one-third of the working time normal to the establishment and do not receive regular pay.

Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employees contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay and other benefits.

Overtime pay are payments given for extra hours worked.

Other benefits include bonuses, cost of living allowances, commutable transportation and representation allowances, food, housing, commissions paid to salaried employees, separation, retirement, terminal pay, gratuities, etc. Excluded are cost of uniform/working clothes and reimbursable transportation and representation allowances.

Employer's Contribution to SSS/GSIS and the like refers to payments made by the establishment on behalf of the employees. Examples are SSS, GSIS, Employees Compensation Commission (ECC), Philhealth and PAGIBIG.

Revenue includes cash received and receivables for goods sold and services rendered. Valuation is at producer's prices (ex-establishment), net of discounts and allowances, including duties and taxes but excluding subsidies.

Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at market 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.

Indirect taxes refer to all taxes, other than income tax, incidental to the production or sale of goods and services, which are chargeable as expenses including business license, BIR stamps, real estate tax and other local taxes.

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 or production and to protect it against competition.

Fixed assets are physical assets expected to have productive lives of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, computers and peripherals, telecommunications equipment and apparatus, other machinery and equipment including furniture and fixtures, and cultivated assets.

Cultivated assets include livestock for breeding, layers, dairy and working animals, orchards and other plantation of trees, standing timber and permanent crops.

Book value of fixed assets is the initial value or acquisition cost of fixed assets less the accumulated depreciation.

Depreciation is the total amount set aside for the year to cover the decrease in value of fixed assets owned by the establishment because of foreseen obsolescence, wear and tear as a result of operation and normal amount of accidental damage.

Capital expenditures for fixed assets include cost of acquisition of new and used fixed assets; fixed assets produced by the establishment for its own use; major alterations, additions and improvements to fixed assets, whether done by others or on own account. Fixed assets received from other establishments belonging to the same enterprise are valued as though purchased.

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

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 should be at current replacement cost in purchasers (market) prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.

Finished products inventory refer to the goods made by the establishment which are ready for sale/shipment as of a reference date. Valuation is at producers price.

Work-in-process inventory refers to the value of all materials which have been partially processed by the establishment but which are not usually sold or turned over to other establishment without further processing. Valuation is at producers price.

Change in inventories is computed as the total value of ending inventory less the total beginning inventory.

Census value added represents the difference between the value of output and total costs of materials and supplies consumed, fuels purchased, electricity purchased, industrial services done by others and goods purchased for resale.

Value added represents the sum of census value added and value of non-industrial services done for others less the cost of non-industrial services done by others and other costs.

Detailed Statistical Tables

The detailed tables at the national and regional levels are available upon request from the Industry Statistics Division, National Statistics Office, 4th Floor Solicarel Bldg II, Ramon Magsaysay Blvd., Sta. Mesa, Manila Tel. No. (062) 716-39-32.

 

Source:   National Statistics Office
                 Manila, Philippines

 

Agriculture, Fishing, Forestry and Hunting by Year Published

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