Growing of sugarcane accounts for the biggest number of establishments

The preliminary results of the 2006 Census of Philippine Business and Industry (CPBI) conducted nationwide reported a total of 751 Agriculture and Forestry establishments with average total employment (ATE) of 20 and over (Table 1).

Growing of sugarcane including muscovado sugar-making in the farm dominated the Agriculture and Forestry establishments with (ATE) of 20 and over with 222 establishments or 29.6 percent of the total. Hog farming was second with 129 establishments (17.2%) while growing of cavendish banana was third with 81 establishments (10.8%). Ranking fourth was operation of irrigation systems through non-cooperatives with 63 establishments (8.4%). Completing the top five was chicken broiler production including operation of chicken hatcheries with 61 establishments (8.1%). Moreover, certain industries for the Agriculture and Forestry establishments with ATE of 20 and over not appearing in the statistical tables indicate that there were no establishments engaged in such activities. Figure 1 shows the distribution of Agriculture and Forestry Establishments with ATE of 20 and over by industry class.

By region, Western Visayas accounted for the most number of establishments with 186 or 24.8 percent of the total number of establishments with ATE of 20 and over. This was followed by Davao with 135 establishments (18.0%) and Central Luzon with 86 establishments (11.5%). Cordillera Administrative Region (CAR), with only four reported establishments, had the least count (Table 2).
 

Growing of cavendish banana generates the highest employment

Employment in Agriculture and Forestry establishments with ATE of 20 and over reached a total of 118,811.

Among industries, growing of cavendish banana recorded the highest employment count, numbering 40,817 or 34.4 percent of the total. Growing of sugarcane including muscovado sugar-making in the farm ranked second with 38,011 (32.0%). This was followed by growing of pineapple and hog farming with respective shares of 6.7 percent and 6.1 percent to total employment. Figure 2 shows the distribution of employment by industry class for the Agriculture and Forestry establishments with ATE of 20 and over.

Regionwise, the biggest workforce was in Davao with 38,802 workers or 32.7 percent of the total. Western Visayas, although having the most number of establishments, ranked second with 27,629 workers (23.3%). CAR had the least number of workers with only 164 (0.1%).

Agricultural services such as plowing, seeding, weeding thinning, pruning, and other services to establish crops, promote their growth and protect them from pests and diseases pays the highest compensation

Total compensation paid amounted to Php11.7 billion, translating to an average annual compensation of Php98,624 per worker (Table 3).

Across industries, agricultural industries such as plowing, seeding, weeding thinning, pruning, and other services to establish crops, promote their growth and protect them from pests and diseases paid the highest compensation per worker with an annual average compensation of Php384,556. This was followed by growing of corn except young corn, and operation of irrigation system through non-cooperatives with average annual compensation of Php211,579 and Php183,392, respectively. On the other hand, growing of mango, paid the lowest average annual compensation amounting to only Php16,643.

Among regions, workers in Cagayan Valley were the highest paid receiving an average annual compensation of Php197,463. Workers in SOCCSKSARGEN and National Capital Region (NCR) received an average annual compensation of Php148,835 and Php145,450, respectively (Table 4) .

Total revenue amounts to Php58.5 billion, cavendish banana growing produces the largest

Gross revenue earned by Agriculture and Forestry establishments with ATE of 20 and over was estimated at Php58.5 billion.

Industrywise, growing of cavendish banana captured the biggest share to total revenue as it grossed Php27.8 billion or 47.5 percent. This was followed by hog farming with a revenue of Php9.5 billion or 16.3 percent of total revenue.

Other industry top grossers and their corresponding revenue shares were as follows:

• chicken broiler production including operation of chicken hatcheries (Php6.5 billion or 11.2%)
• growing of sugarcane including muscovado sugar-making in the farm (Php3.3 billion or 5.7%)
• growing of pineapple (Php2.0 billion or 3.5%)

Figure 3 shows the distribution of revenue by industry class for Agriculture and Forestry establishments with ATE of 20 and over.

Among regions, Davao generated the highest revenue for establishments with ATE of 20 and over amounting to Php23.8 billion or 40.6 percent of the total revenue. This was followed by SOCCSKSARGEN and Central Luzon with Php7.9 billion (13.5%) and Php7.2 billion (12.3%), respectively. CAR had the least revenue with Php0.04billion (0.1%).

Total cost reaches Php46.4 billion, cavendish banana growing spends the highest

Total cost incurred by establishments with ATE of 20 and over summed up to Php46.4 billion. Growing of cavendish banana being the biggest earner was also the biggest spender incurring Php22.6 billion or 48.7 percent of the total cost. Trailing behind was hog farming with Php8.5 billion (18.3%) and chicken broiler production including operation of chicken hatcheries with Php5.5 billion (12.0%). Figure 4 shows the distribution of cost by industry class for Agriculture and Forestry establishments with ATE of 20 and over.

By region, Davao spent the largest operational expense as it incurred Php18.7 billion (40.3%). SOCCKSARGEN and Central Luzon followed next with Php6.6 billion (14.3%) and Php6.1 billion (13.2%), respectively.

Revenue-cost ratio amounts to Php1.3, operation of irrigation system through non-cooperatives records the highest returns

The ratio of total revenue to total cost was estimated at Php1.3, which means that for every peso spent Php1.3 was realized in terms of revenue.

Among industries, operation of irrigation system through non-cooperatives recorded the highest revenue per peso cost ratio of Php3.3. This was followed by growing of other crops and growing of rubber tree with a ratio of Php3.0 and Php2.3 respectively. Growing of leafy and stem vegetables, on the other hand, recorded the lowest rate of return with only Php1.1. Figure 5 shows the revenue per peso cost by industry class for Agriculture and Forestry establishments with ATE of 20 and over.

Cavendish banana growing accounts for the largest value of output

Value of output for the Agriculture and Forestry establishments with ATE of 20 and over was estimated at Php57.4 billion. Growing of cavendish banana produced the biggest output value estimated at Php27.5 billion or 48.0 percent of the total. The shares of hog farming and chicken broiler production including the operation of chicken hatcheries were 16.7 percent (Php9.6 billion) and 10.6 percent (Php6.1 billion) respectively.

Value added reaches Php15.5 billion

Value added generated in 2006 by Agriculture and Forestry establishments with ATE of 20 and over reached Php15.5 billion.

Among industries, about half (45.4%) of the total value added was contributed by growing of cavendish banana as it reached Php7.0 billion. Other industries with value added exceeding a billion mark were growing of sugarcane including muscovado sugar-making in the farm (P1.8 billion) and hog farming (P1.5 billion). Figure 6 shows the distribution of value added by industry class for Agriculture and Forestry establishments with ATE of 20 and over.

Among regions, Davao registered the highest value added amounting to Php6.2 billion or 40.0 percent of the total value added. SOCCKSARGEN followed next contributing Php2.1 billion (13.8%). On the other hand, the share to total value added of MIMAROPA (Php990 thousand) was almost nil.

Growing of corn recorded the highest labor productivity

The ratio of value added to total employment was estimated at Php130.2 thousand. The highest labor productivity was recorded by growing of corn except young corn amounting to Php805.5 thousand and it was lowest for growing of coffee and cacao at Php25.9 thousand.

Among regions, this indicator was highest in CALABARZON estimated at Php283.8 thousand. This was followed by NCR and Caraga at Php252.4 thousand and Php245.0 thousand. The least labor productivity was recorded by MIMAROPA at Php3.5 thousand.

Gross additions to fixed assets amounts to Php1,845.7 million

Gross additions to fixed assets for Agriculture and Forestry establishments with ATE of 20 and over was estimated to be Php1,845.7 million.

Among industries, growing of cavendish banana reported the largest gross addition to fixed assets amounting to Php929.5 million or 50.4 percent of the total. This was followed by hog farming and chicken broiler production including the operation of chicken hatcheries with gross addition to fixed assets worth Php184.5 million (10.0%) and Php144.2 million (7.8%), respectively.

Subsidies provided by the government reaches Php174.0 million

Total subsidies provided by the government to support the operation of Agriculture and Forestry establishments with ATE of 20 and over reached Php174.0 million. Operation of irrigation system through non-cooperatives received Php138.5 million or 79.6 percent of the total. Agricultural services such as plowing, seeding, weeding thinning, pruning, and other services to establish crops, promote their growth and protect them from pests and diseases followed with Php6.8 million (13.0%) in government subsidy.

Other industries that received subsidy from the government were as follows:
 

• growing of pineapple (Php6.8 million or 3.9%)
• combined industries of beef cattle and other livestock farming; crocodile farming; and raising of semi-domesticated animals (Php3.0 million or 1.7%)
• hog farming (Php2.2 million or 1.3%)
• growing of sugarcane (Php0.6 million or 0.4%)
• growing of rubber tree (Php0.1 million or 0.1%)

TECHNICAL NOTES

Introduction

The 2006 Census of Philippine Business and Industry (CPBI) is a comprehensive collection, compilation, evaluation and analysis of data about economic activities of the country. It will be a vital source of information for establishing benchmark levels of measurement and comparison of national, regional and provincial economic growth for the year 2006.

The field operations for the 2006 CPBI was undertaken in 2007. It covered 14 sectors of the economy namely:
 

• Agriculture, hunting and forestry
• Fishing
• Mining and quarrying
• Manufacturing
• Electricity, gas and water
• Construction
• Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods
• Hotels and restaurants
• Transport, storage and communications
• Financial intermediation
• Real estate, renting and business activities
• Education
• Health and social work
• Other community, social and personal service activities.

The census was undertaken by authority of five (5) legislative acts and presidential directives namely: Commonwealth Act 591, Presidential Decree 418, Executive Order No 121, Executive Order No. 352 and Executive Order No.5.

This Special Release presents the preliminary results of the census for agriculture and forestry establishments with ATE of 20 and over.

2006 CPBI Design

Scope and Coverage

The unit of enumeration is the establishment. It is defined as an "economic unit under a 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".

The scope of the census was confined to the formal sector and it consists of the following:
 

• Corporations and partnership
• Cooperatives and foundations
• Single proprietorships with employment of 10 and over
• Single proprietorship with branches.

Specifically, the 2006 CPBI covers the following:
 

1. All establishments with Average Total Employment (ATE) 10 or more, and
2. All establishments with ATE less than 10, except those with Legal Organization (LO=1, single     proprietorship) and Economic Organization (EO=1, single establishment)

that are engaged in economic activities by sectors mentioned above.

Classification Systems

An establishment is categorized by its economic organization, legal organization, employment size, industrial classification, and geographic location.

Economic Organization

Economic Organization relates to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
 

• Single establishment is an one which has neither branch nor main office
• Branch only is an establishment which has a separate main office located elsewhere.
• Establishment and main office, both located in the same address and with branch/es elsewhere.
• Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise.
• Ancillary unit other than Main Office is the unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides goods or services that support but do not become part of the output of those establishments. Examples are warehouse of plants or wholesale establishments, repair shops or garage or terminals of transport establishments.

Legal Organization

The Legal Organization provides the legal basis for ownership of the establishment. The following are the types of legal organization:
 

• Single Proprietorship refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. The establishment name is that of a person, or it has words such as Owner, Proprietor or Operator
• Partnership refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves. The establishments name includes words such as Owners, Partners, Limited or LTD., Associates or ASSOCS.
• Government Corporation is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government. The establishment name included words such as Corporation or CORP., Incorporated or INC.
• Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC
• Cooperative - the establishment name includes words such as Cooperative or COOP

Size of Establishments

The size of the establishment is determined by its average total employment (ATE). The following are the employment size classification used in the 2006 CPBI:

Industrial Classification

The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The amended 1994 Philippine Standard Industrial Classification (PSIC) is utilized to classify units according to their economic activities.

The amended 1994 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major division, is denoted by the characters A to Q. The first two numeric digits represent the division; the first three numeric digits, the group; the first four digits, the class; and the 5 digits, the sub-class.

Example: A - Agriculture, hunting and forestry
 

01 - Growing of crops
017 - Growing of vegetables, roots and tuber crops, horticultural specialties and nursery        products
0178 - Production or growing of horticultural specialties and nursery products
01781 - Growing of orchids

Geographic Classification

The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 30, 2006. The PSGC contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.

The geographic domains of the 2006 CPBI for establishments with average total employment (ATE) of 20 and over are the provinces, independent component cities, chartered cities and highly urbanized cities and municipalities. On the other hand, the geographic domains for establishments with ATE of less than 20 are the regions.

Hence, the samples of the 2006 CPBI with ATE 20 and over shall provide data for 17 administrative regions, 81 provinces, 39 cities and municipalities. For samples with ATE less than 20, the data that will be presented is limited only for regional levels.

Sampling Design

The 2006 CPBI used stratified systematic sampling with 5-digit or group of 5-digit PSIC and/or 4-digit or group of 4-digit PSIC served as the first stratification variable and employment size (ATE) as the the second stratification variable.

For the Agriculture and Forestry sector, all establishments with ATE of 20 and over were taken on a 100 percent basis except for employment stratum of ATE of 20-99 for the following industries where 50 percent of the establishments is taken.

• growing of banana, cavendish
• growing of sugarcane including muscovado sugar-making in the farm
• hog farming

Sample Size

For Agriculture and Forestry sector, the sample size was 1,637 establishments broken down by ATE of 20 and over (651) and ATE of less than 20 (986).

Response Rate

The overall response rate for ATE of 20 and over is 88.3 percent or 575 out of 651. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments. However, the effective response rate is 88.6 percent.

Concepts and Definitions of Terms

Economic activity or business is the activity of the establishment as classified under the amended 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.

Employment is the number of persons who worked in or for this establishment as of November 15, 2006.

Average total employment 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.

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.

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.

Value of output represents the sum of the total value of products sold, receipts from contract work and industrial services done for others, receipts from goods sold in the same condition as purchased less cost of goods sold, fixed assets produced on own account, and change in inventories of finished products and work-in-progress (ending less beginning). In the past surveys/censuses, estimation of value of output was not net of cost of goods sold but included change inventory (ending less beginning) of good for resale.

Cost of materials, fuels and electricity consumed and industrial services refers to expenses incurred in the production of goods and industrial services such as materials and supplies purchased, fuels purchased, electricity purchased and industrial services done by others and change in inventory of materials, supplies and fuels (beginning less ending). In the past surveys/censuses, cost of materials, fuels and electricity consumed and industrial services also include goods purchased for resale.

Census value added represents the difference between the value of output and total cost of materials, fuels and electricity consumed and industrial services.

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.

Revenue is the value of goods, products/by-products sold and/or services rendered to others whether paid in cash or is considered receivable by the establishment. Valuation of products/by products sold should be in producer's price (ex-establishment), net of discounts and allowances, including duties and charges but excluding subsidies. It also include goods transferred and/or services rendered to other establishment belonging to the same enterprise as the said establishment which should be treated as sales or as if sold to a customer, and revenue from products on a contractual basis from materials supplied by the establishment.

Cost refer to all expenses incurred during the year whether paid or payable. Valuation should be at market price including taxes and other charges, net of discounts, rebated, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.

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, machinery, tool, furniture, fixtures, office equipment and other fixed assets.

Gross addition to fixed assets is the sum of costs of new and used fixed assets acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment less the value of sales of fixed assets during the year.

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

Inventories refer to the stocks 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 price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.

Change in Inventories is equivalent to the total value of inventories at the end of the year less the value at the beginning of the year.

Subsidies are 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.

Source:   National Statistics Office
                 Manila, Philippines