Establishments Engaged in Growing of Crops Accounted for the Biggest Number of Establishments
The 2002 Annual Survey of Philippine Business and Industry (ASPBI) covered a total of 3,022 agriculture and forestry establishments nationwide. Almost three-fourths of these (73.7 percent or 2,227) were agriculture and forestry establishments with average total employment (ATE) of less than 20 workers and the remaining 26.3 percent (795 establishments) accounted for establishments with ATE of 20 or more workers.
Establishments engaged in growing of crops dominated the sector with establishments' count of 983 or 32.5 percent of the total. This is followed by establishments engaged in chicken broiler production including the operation of chicken hatcheries, agricultural services, and hog farming, with respective shares of 20.4 percent (615 establishments) and 19.8 percent (597 establishments) and 18.4 percent (556 establishments). Figure 1 displays the distribution of agriculture and forestry establishments by industry in 2001.
...and Provided the Largest Employment
Total employment by all agriculture and forestry establishments during the year 2001 was estimated to be 112,823 workers. Of the total, 96,431 workers (85.5 percent) were employed by agriculture and forestry establishments with ATE of 20 or more workers.
Establishments engaged in growing of crops, being numerous in number of establishments, employed the biggest number of workers reaching 79,886, which is equivalent to 70.8 percent of total employment for the sector. Figure 2 shows the distribution of employment by industry for the agriculture and forestry sector in 2001.
Davao (Region XI) Contributed the Bulk of Employment and Revenue
More than one-fifth (22.8 percent or 181 establishments) of the total number of establishments with ATE of 20 or more workers was located in Western Visayas (Region VI). Following were Davao (Region XI), Central Visayas (Region VII) and CALABARZON (Region IV-A) with respective shares of 16.2 percent (129 establishments), 15.8 percent (126 establishments) and 10.9 percent (87 establishments) of the total.
Although Davao (Region XI) ranked second in terms of the number of establishments with ATE of 20 or more workers, the region generated the biggest employment reaching to 29,390 workers or 30.5 percent of total employment and contributed about 44.4 percent of total revenue amounting to P14 billion.
Average Monthly Compensation of an Agricultural and Forestry Worker was P5,434
Total compensation paid in 2001 amounted to P7.0 billion or an average monthly compensation P5,434 per agricultural and forestry worker.
Among industries, agricultural services paid the highest average monthly compensation worth P6,995 per worker. On the other hand, the livestock farming industry paid the lowest average monthly compensation of P4,223. Figure 3 indicates the average monthly compensation of agriculture and forestry worker in 2001.
Total revenue earned by all agriculture and forestry establishments in the country was estimated at P34.7 billion during the year 2001. Agriculture and forestry establishments with ATE of 20 or more workers accounted for the lion's share or 90.5 percent of total revenue worth P31.4 billion.
On the other hand, the total operating cost, which is the sum total of compensation (P7.0 billion) and cost (P25.8 billion), amounted to P32.8 billion.
The revenue to operating cost for all agriculture and forestry establishments was at 1.06. Agriculture and forestry establishments with ATE of less than 20 workers indicated a better business operation as they earned on the average P1.23 for every peso spent compared with P1.04 earned by establishments with ATE of 20 or more workers.
Among industries, growing of crops accounted for more than half (55.1 percent) of the total revenue for the sector as it grossed P19.1 billion in 2001. Figure 4 displays the distribution of revenue by industry for the agriculture and forestry sector in 2001.
Labor Productivity was P116,309 per Agriculture and Forestry Worker
Labor productivity for the sector, measured as the ratio of value added per paid employee, was valued at P116,309.
Chicken broiler production recorded the highest labor productivity reaching P208,515. Figure 5 shows the labor productivity by industry for the agriculture and forestry sector in 2001.
Scope and Coverage
The 2002 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, 2001, for its reference period. One of the 14 sectors covered in the survey is the agriculture and forestry sector.
All agriculture and forestry establishments with average total employment (ATE) of 20 and more workers were covered on a 100 percent basis and those with ATE of less than 20 workers were selected using stratified systematic random sampling.
The response rate is 86.9 percent of the 672 sample establishments for the agriculture and forestry sector. 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, 2001.
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 employee's 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 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 purchaser's (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 producer's 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 producer's 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