Number of Establishments

About 1,280 Agriculture, Hunting and Forestry establishments in business operation nationwide were covered in the 2009 Annual Survey of Philippine and Business and Industry.

Among industry groups, Hog farming comprised the highest number of establishments at 345 or 27.0 percent of the total. Other industries with most number of establishments were as follows:

• Growing of sugarcane including muscovado sugar making in the farm with 257 establishments (20.1%)
• Chicken broiler production including operation of chicken hatcheries with 108 establishments (8.4%)
• Growing of banana with 106 establishments (8.3%)
• Growing of palay with 97 establishments (7.6%)
• Egg production with 80 establishments (6.3%).

The remaining 22.3 percent (287 establishments) of the total were engaged in other agricultural activities. Figure 1 shows the percent distribution of Agriculture, Hunting and Forestry establishments for all employment sizes by industry group in 2009.

Employment

Agriculture, hunting and forestry establishments hired a total of 118,500 workers in 2009. Of the total workforce, 99.0 percent (117,280 workers) were paid employees and the rest were working owners and unpaid workers.

By industry group, Growing of banana employed the largest number of workers with 44,549 or 37.6 percent of the total. Growing of sugarcane including muscovado sugar making in the farm provided job for 30,562 workers (25.8%). Hog farming came in third with 8,695 workers (7.3%) while Operation of irrigation systems through cooperatives and non-cooperatives ranked fourth with 7,076 workers (6.0%). Fifth top employer was Growing of fruits and nuts with 6,778 workers (5.7%). The remaining 20,839 workers or 17.6 percent were employed in other agricultural activities.

The average number of workers per establishment for the sector was recorded at 93. Industries with highest average number of workers per establishment were as follows:

• Growing of banana (420 workers per establishment)
• Services to establish crops, promote their growth and protect them from pests and diseases (315 workers per establishment)
• Operation of irrigation systems through cooperatives and non-cooperatives (244 workers per establishment)
• Growing of fruits and nuts (242 workers per establishment)
• Growing of corn except young corn (166 workers per establishment).

On the contrary, Harvesting, threshing, grading, bailing and related services posted the lowest average with 13 workers per establishment. Figure 2 shows the distribution of employment of Agriculture, Hunting and Forestry sector for all employment sizes by industry group in 2009.

Compensation

Total compensation paid by all Agriculture, Hunting and Forestry establishments in 2009 amounted to PHP13.4 billion, equivalent to an average annual compensation of PHP113,868 per worker.

The highest compensation was received by workers engaged in Services to establish crops, promote their growth and protect them from pests and diseases with average annual pay of PHP376,059. Workers engaged in Growing of corn except young corn and Operation of irrigation systems through cooperatives and non-cooperatives, were the second and third highest earners, with average annual compensation of PHP247,419 and PHP230,359, respectively. This was followed by workers engaged in Growing of vegetables, roots and tuber crops, horticultural specialties and nursery products with average pay of PHP175,324 annually and Growing of banana with average compensation of PHP153,548 per year. On the other hand, workers engaged in Growing of palay received the lowest average pay with PHP5,482 annually. Figure 3 shows the average annual compensation of workers of Agriculture, Hunting and Forestry sector for all employment sizes by industry group in 2009.

Value of Output

Value of output generated in 2009 by all Agriculture, Hunting and Forestry establishments reached PHP69.8 billion.

By industry group, Growing of banana generated an output value of PHP34.0 billion comprising almost half (48.7%) of the total. The other industries in the top five in terms of value of output and their corresponding share were as follows:

• Hog farming with PHP13.0 billion (18.6%)
• Chicken broiler production including operation of chicken hatcheries with PHP5.6 billion (8.1%)
• Growing of fruits and nuts with PHP3.5 billion (5.0%)
• Growing of sugarcane including muscovado sugar making in the farm with PHP2.9 billion (4.1%).

Combined output value of other industries reached PHP10.8 billion or 15.5 percent of the total. Figure 4 shows the percent distribution of value of output of Agriculture, Hunting and Forestry sector for all employment sizes by industry group in 2009.

Cost

Total cost incurred in 2009 by all Agriculture, Hunting and Forestry establishments in their business operation summed up to PHP54.4 billion.

Among industry groups, Growing of banana incurred the highest cost amounting to PHP26.9 billion or 49.4 percent of the total. Hog farming ranked a far second with PHP10.5 billion (19.4%) followed by Chicken broiler production including operation of chicken hatcheries with PHP4.9 billion (9.0%). The fourth and fifth highest spender were Growing of fruits and nuts and Growing of sugarcane including muscovado sugar making in the farm with PHP2.1 billion (3.9%) and PHP1.7 billion (3.2%), respectively. The remaining 15.0 percent (PHP8.2 billion) of the total cost was spent by other industry groups.

Revenue per Cost

The ratio of total revenue to total cost in 2009 was 1.30, which implies that for every peso spent PHP1.30 was realized in terms of revenue.

By industry groups, Rental of machinery with drivers and crew registered the highest revenue per peso cost of 2.43. Other top industries in terms of revenue-cost ratio were as follows:

• Growing of coconut including copra-making, tuba gathering and coco-shell charcoal making in the farm (2.28 revenue per peso cost)
• Growing of palay (2.16 revenue per peso cost)
• Growing of other crops (1.83 revenue per peso cost)
• Operation of irrigation systems through cooperatives and non-cooperatives (1.76 revenue per peso cost).

Value Added

Value added for all Agriculture, Hunting and Forestry establishments in 2009 was estimated at PHP21.8 billion.

Among industries, Growing of banana contributed the biggest share to value added accounting for 42.1 percent (PHP9.2 billion) of the total. Value added contribution of Hog farming amounting to PHP3.2 billion accounted for 14.5 percent of the total. Operation of irrigation systems through cooperatives and non-cooperatives with a percent share of 7.8 (PHP1.7 billion) to total value added placed as third highest contributor. Growing of fruits and nuts and Growing of sugarcane including muscovado sugar making in the farm, were the fourth and fifth highest contributor to value added, with PHP1.6 billion (7.2%) and PHP1.4 billion (6.5%), respectively. Combined value added of other industries reached PHP4.7 billion or 21.9 percent of the total.

Labor Productivity

Labor productivity, defined as the ratio of value added to total employment, was recorded at PHP183,590 per worker. Among industries, the most labor productive were as follows:

• Growing of corn except young corn (PHP1,206,029 per worker)
• Growing of vegetables, roots, and tuber crops, horticultural specialties and nursery products (PHP427,123 per worker)
• Hog farming (PHP363,772 per worker)
• Chicken broiler production including operation of chicken hatcheries (PHP339,564 per worker)
• Operation of irrigation systems through cooperatives and non-cooperatives (PHP241,127 per worker).

On the other hand, Growing of palay was the least labor productive with PHP19,535 per worker. Figure 5 shows the value added per worker of Agriculture, Hunting and Forestry sector for all employment sizes by industry group in 2009.

Gross addition to tangible fixed assets

Gross addition to tangible fixed assets acquired by all Agriculture, Hunting and Forestry establishments was estimated at PHP3.0 billion in 2009.

Among industries, Growing of banana acquired the biggest addition to its fixed assets amounting to PHP1.2 billion or 41.1 percent of the total. Other industries with highest addition to fixed assets were as follows:

• Operation of irrigation systems through cooperatives and non-cooperatives with PHP580.2 million (19.2%)
• Hog farming with PHP482.1 million (15.9%)
• Growing of fruits and nuts with PHP208.2 million (6.9%)
• Egg production with PHP96.3 million (3.2%).

The remaining 13.7 percent (PHP416.9 million) of the total gross addition to tangible fixed assets was acquired by other industry groups.

Change in Inventories

Change in inventories, defined as the value of ending inventory less the beginning inventory, amounted to PHP607.2 million in 2009. Among industries, Hog farming recorded the highest change in inventory worth PHP217.6 million (35.8%). Growing of corn except young corn with PHP194.2 million (32.0%) ranked second. Growing of vegetables, roots and tuber crops, horticultural specialties and nursery products came next with PHP187.2 million (30.8%) followed by Growing of fruits and nuts with PHP112.1 million (18.5%) and Egg production with PHP93.4 million (15.4%), for the fourth and fifth place, respectively. On the other hand, five industries reported a negative change in inventory with combined amount of PHP397.2 million.

Subsidies

Total subsidies received by Agriculture, Hunting and Forestry establishments from the government to support their operation summed up to PHP1.1 billion in 2009.

By industry group, Agricultural services to establish crops, promote their growth and protect them from pests and diseases received an amount of PHP585.0 million (55.0%) from the government, accounting for the highest subsidy. Operation of irrigation systems through cooperatives and non-cooperatives received PHP434.7 million (40.9%) subsidy. The remaining 4.1 percent (PHP43.3 million) of the total subsidy was received by other agricultural industries.

TECHNICAL NOTES

Introduction

The 2009 Annual Survey of Philippine Business and Industry (ASPBI), conducted in 2010 with 2009 as reference year, is a continuing activity of the National Statistics Office (NSO). It is a nationwide undertaking which aims to provide data on the structure and trends of economic activities in the country.

The data collected from 2009 ASPBI serves as reliable bases upon which the government and the private sector can formulate policies and evolve economic development plans. Specifically, the survey results are used in constructing the national and regional income accounts of the Philippine economy; formulating development strategies and monitoring plans/policies in the attainment of national and regional goals; determining and comparing regional economic structures and performance; valuating conditions of the economy, employment and income perspective in order to make more informed decisions; evaluating business options, assessing opportunities for new investments and estimating market shares of industries; and providing updates for the frame of establishments.

Legal Authority

The legal authority for the conduct of the economic census and surveys is provided by various legislative acts and directives.

Commonwealth Act No 591 of 1940 is the law that created the Bureau of Census and Statistics (now the National Statistics Office). This organic law empowers the Bureau, among other things, to prepare for and undertake all census of population, agriculture, industry and commerce.

Confidentiality of Information. Section 4 of CA 591 states that: “Data furnished to the Bureau of Census and Statistics . . . shall not be used as evidence in court . . .; nor shall such data or information be divulged to any person except to authorized employees of the Bureau of Census and Statistics...”. This is to assure local businesses and industries operating in the country that as required by law, all data reported to NSO will be kept strictly confidential. All of the survey data products that will be published will include only summary information, and these will not identify any individual business.

E.O. 352 (Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1,1996) approves the ASPBI, and other major censuses and surveys of the agency, as designated statistical activities of the Government whose data are considered critical in the formulation of economic development plans and policy decision making.

Other legislative acts and presidential directives, as follows, were enacted to strengthen the mandate of NSO.

PD 418 (Reconstituting the Bureau of the Census and Statistics, to be known as National Census and Statistics Office, under the administrative supervision of the National Economic and Development Authority, dated March 20, 1974)

EO 121 (Reorganization Act of the Philippine Statistical System, dated August 4, 1987)

EO No 5 (Strengthening the National Statistics Office, dated July 29, 1998).

Scope and Coverage

The 2009 ASPBI covered establishments engaged in 14 economic sectors classified under the amended 1994 Philippine Standard Industrial Classification (PSIC), namely:

• Agriculture, Hunting and Forestry (A)
• Fishing (B)
• Mining and Quarrying (C)
• Manufacturing (D)
• Electricity, Gas and Water Supply (E)
• Construction (F)
• Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles and Personal and Household Goods (G)
• Hotels and Restaurants (H)
• Transport, Storage and Communications (I)
• Financial Intermediation (J)
• Real Estate, Renting and Business Activities (K)
• Private Education (M)
• Health and Social Work (N)
• Other Community, Social and Personal Service Activities (O)

The scope of the survey was confined to the formal sector of the economy, which consists of the following:

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

Unit of Enumeration

Like all other establishments surveys conducted by the NSO, the 2009 ASPBI unit of enumeration is the establishment. The establishment is defined as a unit which engages, under a single ownership or control, in one, or predominantly one kind of activity at a single fixed location.

In actual practice, however, there are difficulties in applying the ideal definition so the establishment is defined in operational terms to take into account the organization and record-keeping practices of certain sectors by making the single location and activity criteria more flexible. This necessitates the use of the kind-of-activity unit for certain sectors as the single location restriction is eliminated.

Taxonomy of Establishments

An establishment may be classified according to its: economic organization, legal organization, industry, employment size, and geographic location.

The Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.

The Legal Organization (LO) refers to the legal form of the economic entity which owns the establishment. An establishment may be Single Proprietorship, Partnership, Government Corporation, Stock Corporation, Non-Stock Corporation, and Cooperative.

According to industrial classification, the main activity of an establishment is determined by the activity from which it derives its major income or revenue. The amended 1994 PSIC, based on the International Standard Industrial Classification (ISIC) Rev3.1 was used to classify economic units according to their economic activities.

The size of an establishment is determined by its total employment (TE). Listed below are the employment size classifications and the corresponding codes used in the 2009 ASPBI.

Establishments are also classified by geographic area using the Philippine Standard Geographic Classification (PSGC). The PSGC is a systematic classification and coding of geographic areas of the Philippines. It contains the latest updates on the official composition of regions, provinces, cities, municipalities and barangays in the Philippines. The 2009 ASPBI adopted the PSGC as of December 31, 2009.

The 2009 ASPBI Questionnaires

The 2009 ASPBI utilized five types of questionnaires. These questionnaires were designed after taking into consideration the requirements of the main users. The questionnaires are listed below:

Establishments were asked to provide the following information:

Frame of Establishments

The 2009 ASPBI sampling frame was extracted from the 2009 List of Establishments (LE).

There were about 781,000 establishments in operation in the country in 2009. Distribution of these establishments reveals that about 609,000 establishments are classified as the informal sector and the remaining 172,000 establishments are classified as the "formal" sector. However, around 90% (154,000) of establishments classified in the "formal" sector are within the coverage of the 2009 ASPBI and thus, comprise the frame of the survey.

Sampling Design

The 2009 ASPBI used stratified systematic sampling with five-digit PSIC serving as first stratification variable and TE as the second stratification variable.

Geographic Domain. For establishments with TE of 20 and over, the geographic domain were the regions. For establishments with TE of less than 20, the whole country served as the geographic domain.

Industry Domain. The industry domain comprised 1,036 sub-classes (5-digit PSIC), regardless of employment size.

Employment Stratum. Some employment sizes were combined to comprise an employment stratum and were limited to only five strata for all sectors. The basic consideration for grouping was the concentration of establishments in the employment sizes.

Within the industry domains for each sector, the establishments were grouped according to the following employment stratum:

Sample size. For establishments with employment of less than 20, the sample size was obtained by applying the specific sampling rates for each employment stratum of the industry domain at the national level. The total sample size for establishments with employment of less than 20 was 11,466 establishments. For the Agriculture, Hunting and Forestry sector, the estimated total sample size for TE of less than 20 was 152.

For establishments with employment of 20 and over, the sample size was obtained by applying the specific sampling rates for the i^th employment stratum in the j^th industry stratum at the national level and allocating to the regions. The aggregate sample size for employment of 20 and over in all sectors was 17,242 establishments. For the Agriculture, Hunting and Forestry sector, the estimated sample size for TE of 20 and over was 746.

Response Rate

A total of 844 out of 898 or 94.0 percent sample establishments responded in Agriculture, Hunting and Forestry sector. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Concepts and Definitions of Terms

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

Capital expenditures for tangible 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.

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

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

Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.

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

Intermediate cost refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased, and agricultural/forestry/fishery and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.

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 is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.

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

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.

Social contributions paid by employers refer to payments made by the establishment on behalf of the employees. Examples are SSS, GSIS, Employees Compensation Commission (ECC), Philhealth and PAG-IBIG.

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.

Total employment is the number of persons who worked in for the establishment as of November 15, 2009.

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

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

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.

Value added is gross output less intermediate cost. Gross output for the Agriculture, Hunting and Forestry sector is value of output plus non-industrial services done for others (except rent income from land). Intermediate input is intermediate cost plus non-industrial services done by others (except rent expense for land) and other costs.

Value of output represents the sum of the receipts from products and by-products sold, agricultural/forestry/fishery services rendered, industrial services, and goods sold in the same condition as purchased less the cost of goods sold; and value of fixed assets produced on own account and change in inventories of finished products and work-in-progress.