Ocean commercial fishing dominates the fishing sector

1. In 2006, there were a total of 431 establishments engaged in fishing activities. More than 50 percent (283 establishments) of these were accounted by establishments with ATE of less than 20, while the remaining 148 establishments (34.3%) were establishments with ATE of 20 and over.
2. By industry, ocean commercial fishing, using vessels over 3 tons, accounted for the highest count of establishments at 194 or 45 percent of the total. Fishpen and fishcage operation, with 71 establishments (16.5%), placed second while catching fish crabs and crustaceans in inland waters and fishpond operation, except fish breeding farm and nurseries, came third, with 50 establishments (11.6%). Figure 1 shows the distribution of the number of establishments by industry class for all employment sizes of the fishing sector.
    

Ocean commercial fishing employs the most number of workers

3. Employment in 2006 reached a total of 21,941. Out of this total, 21,161 (96.4%) were paid employees while the remaining 780 (3.6%) were working owners and unpaid employees.
4. Industrywise, ocean commercial fishing, using vessels over 3 tons, having the highest number of establishments, employed the largest number of employees with 17,043 (77.7 %). Catching fish crabs and crustaceans in inland waters and fishpond operation, except fish breeding farms and nurseries, with 1,513 employees (6.9%) ranked second. Operation of fish breeding farms and nurseries hired the least number of workers with only 58 employees (0.3%). Figure 2 displays the distribution of employees by industry class for the fishing sector.

Workers in pearl culture and pearl shell gathering are top earners in 2006

5. The total compensation paid by fishing sector in 2006 amounted to PhP1.8 billion, equivalent to an average annual pay of PhP87.3 thousand per worker. Of the total, PhP1.7 billion (94.2 %) comprised the salaries and wages while the remaining PhP0.1 billion (5.8 %) went to employer's contribution to SSS/GSIS and the like.
6. Among the industries, pearl culture and pearl shell gathering paid the highest compensation in 2006 with an average annual pay of PhP177.9 thousand. Ocean commercial fishing, using vessels over 3 tons, followed next with PhP88.9 thousand. The lowest average annual remuneration was paid by seaweeds farming and other fishing services activities with PhP6.2 thousand.
    

Ocean commercial fishing industry generates the highest revenue

7. Revenue earned in 2006 by all fishing establishments reached PhP11.5 billion. Ocean commercial fishing, using vessel over 3 tons, was the top earner with revenue of PhP9.2 billion or 80.0 percent of the total. Catching fish crabs and crustaceans in inland waters and fishpond operation, except fish breeding farms and nurseries, placed second with PhP1.2 billion (10.8 %), while pearl culture was the third top earner, with PhP0.6 billion (4.9 percent).
    

Value of output amounts to PhP 11.5 billion

8. Total value of output for the fishing sector in 2006 amounted to PhP11.5 billion with ocean commercial fishing, using vessels over 3 tons, contributing the highest among industries with PhP9.2 billion (80.1 %). Catching fish crabs and crustaceans in inland water and fishpond operation, except fish breeding farms and nurseries, followed next with PhP1.2 billion or 10.6 percent.
9. Total operating cost for the fishing sector summed up to PhP9.4 billion.
10. Ocean commercial fishing, using vessels over 3 tons, incurred the highest cost with PhP7.4 billion (79.3 %). This was followed by catching fish crabs and crustaceans in inland water and fishpond operation, except fish breeding farms and nurseries, with PhP1.1 billion (12.1%). Cost of materials, fuels and electricity consumed and industrial services done by others reached PhP8.0 billion, representing 85.0 percent of total cost.
     

Seaweeds farming and other fishing service activities records the highest returns

11. Revenue-cost ratio, the revenue generated per PhP1.00 cost, amounted to 1.23 for the fishing sector in 2006. Among industries, seaweeds farming and other fishing service activities recorded the highest with 2.32 revenue-cost ratio. The next highest return was recorded by pearl culture with 1.56, followed by coastal municipal fishing, using vessels over 3 tons, and fish corral fishing, with 1.47 revenue-cost ratio
     

Pearl culture industry is the most productive

12. The ratio of value added per total employment was estimated at PhP140.7 thousand. Among industries, pearl culture recorded the highest labor productivity at PhP286.3 thousand. Ocean commercial fishing, using vessels over 3 tons, ranked second with PhP150.2 thousand, catching fish crabs and crustaceans in inland waters and fishpond operation, except fish breeding farms and nurseries, followed with PhP122.3 thousand.

13. Change in inventories, defined as the value of ending inventory less the beginning inventory, amounted to PhP72.4 million in 2006. Among industries, ocean commercial fishing, using vessels over 3 tons, recorded the highest total change in inventory with PhP82 million.
     

Gross addition to fixed assets reaches PhP513.4 million

14. Gross addition to fixed assets in 2006 was estimated at PhP513.4 million, with ocean commercial fishing, using vessels over 3 tons, accounting for the largest with PhP413.7 million (80.6%).
     

Subsidies in 2006 reached PhP0.3 million

15. Subsidies in 2006 reached PhP0.3 million. Pearl culture industry received the highest amounting to PhP0.2 million (77.4%) and prawn culture the least with PhP14.0 thousand (24.9 percent).
     

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:
 

• 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 fishing sector.The sector is composed of eleven industry class, namely:
 

• Ocean commercial fishing (using vessels over 3 tons)
• Coastal fishing municipal (using vessels of less than 3 tons)
• Fish corral fishing
• Catching fish crabs and crustaceans in inland waters
• Prawn culture
• Fishpond operation (except fish breeding farms and nurseries)
• Fishpen and fish cage operation
• Operation of fish breeding farms and nurseries
• Pearl culture
• Seaweeds farming
• Service activities incidental to fishing

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)

Sampling Design

For the fishing sector, all establishments were taken on a 100 percent basis.
 

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.
• 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.
• Government Corporation is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government.
• Private Corporation is a corporation organized by private persons.
• Cooperative

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: C - Mining and quarrying
10 - Metallic ore mining
109 - Metallic ore mining, n.e.c
1091 - Iron ore mining
10910 - Iron ore mining

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.

Response

A total of 966 out of 1001 or 96.5 percent of sample establishments responded. 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 44.2 percent for the fishing sector.

Concepts and Definitions

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, 2005. The concept of employment as of the payroll November 15 was adopted for the first time in the 2002 ASPBI (reference year 2001).

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 employee's 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).

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).

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 and equipment, furniture, fixtures, and other fixed assets.

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

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.

Source:   National Statistics Office
                 Manila, Philippines