OVERVIEW OF
III.
PHILIPPINE
AGRICULTURE
WHAT IS
AGRICULTURE?
Agriculture is the art and science
of cultivating the soil, growing crops,
and raising livestock. It includes the
preparation of plant and animal
products for people to use and their
distribution to markets. Agriculture
provides most of the world's food and
fabrics.
SPHERES IN AGRICULTURAL CROP FARMING
Geoponic
an art or science of cultivating the
earth
Hydroponic
the technique of growing plants using
a water-based nutrient solution rather than
soil
Aeroponic
a method of growing plants without
soil.
WHY IS AGRICULTURE
IMPORTANT?
Supporting livelihoods through food,
habitat, and jobs; providing raw
materials for food and other
products; and building strong
economies through trade.
Agriculture plays a significant role in
the Philippine economy. Involving
about 40 percent of Filipino
workers, it contributes an average of
20 percent to the Gross Domestic
Product.
a. RESOURCES
•LAND,
•WATER and
•CAPITAL
RESOURCE
S
Resources means
the land and on-farm
buildings, equipment,
manure processing and
handling facilities and
processing and handling
facilities
sugarcane, banana,
cassava, pineapple,
and vegetables.
The major livestock
products are hog,
cattle, carabao,
goat, and dairy
products. Chicken
and duck are the
leading poultry
products.
Agricultural resources
impacts society in many
ways, including:
• supporting livelihoods
through food, habitat,
and jobs;
• providing raw materials
for food and other
products;
• and building strong
economies through trade
b. PRODUCTION
SYSTEMS
Agricultural Production
Agricultural production includes these activities (when
they result in a product that will be sold at retail):
• Agriculture – cultivating soil, planting, raising and
harvesting crops, rearing, feeding, and managing
animals.
• Production is the process by which different
inputs,including capital, labor, and land, are used to
create outputs in the form of products or services.
• Production is important to ensure the efficient
use of tangible and intangible resources, the
generation of employment, and achieving economic
efficiency.
Conversion Process:
• Operations are included in the conversion process.
Manual, mechanical, or chemical operations are all
possible.
• Inputs are converted into outputs via operations.
The conversion process also involves supporting
actions that aid in the conversion process.
Output: Includes finished products, finished goods,
and services. As a result, we can say that the
production system is a union or combination of its
three primary components, input, conversion, and
output. Simply said, a production system is anything
that is done to produce goods and services or to
accomplish a production goal.
c. CHARACTERISTICS
OF SMALL
HOLD FARMING
SMALL HOLDER
A smallholder farmer is a
producer who rears livestock, raises
fish or cultivates crops on a limited
scale: In the developing world, a
smallholder farm is a family-owned
enterprise operating on up to 10
hectares, or 24 acres, with most
smallholder farmers cultivating less
than 2 hectares, or 5 acres, of land.
A smallholder farmer is often
characterized as a family farmer
since many rely on relatives’ labor
to meet production needs, and they
typically retain a portion of their
harvest for household
consumption. Smallholder farmers,
sometimes referred to as “small-
scale farmers,” include farmers who
own the land they work and those
who do not.
• Crop Diversity: The Philippines has a
wide variety of crops due to its diverse
climate and geography. Major crops
include rice, corn, coconut, sugarcane,
banana, and pineapple.
• Rice as Staple: Rice is a staple food and a
significant agricultural product. It plays a
crucial role in the country's food security.
• Smallholder Farming: The majority of
farms in the Philippines are small, family-
owned operations. These smallholders
often practice subsistence farming,
which can be vulnerable to external
factors.
• Fisheries: The Philippines is an archipelago
with abundant marine resources. Fisheries
are a vital part of the agricultural sector,
contributing significantly to both domestic
consumption and exports.
• Coconut Industry: The country is one of the
world's largest producers of coconuts,
which are used for various products like
coconut oil, copra, and desiccated coconut.
• Challenges: Philippine agriculture faces
challenges such as land reform issues,
outdated farming techniques, and
vulnerability to natural disasters like
typhoons.
• Export-Oriented: Some
agricultural products, like
bananas, pineapples, and tropical
fruits, are exported, contributing
to the country's economy.
• Government Interventions: The
government has implemented
various programs and policies to
support agriculture, including
subsidies, infrastructure
development, and land reform
initiatives.
• Climate Vulnerability: The
Philippines is susceptible to
climate change impacts, including
droughts, floods, and storms,
which can affect agricultural
production.
• Rural Employment: Agriculture
remains a significant source of
rural employment, supporting the
livelihoods of millions of Filipinos.
d. AGRIBUSSINESS
Concept and Opportunities
for the
Filipino Farmers
AGRIBUSSINES
S
Agribusiness is a combination of the
words "agriculture" and "business" and
refers to any business related to farming
and farming-related commercial
activities. Agribusiness involves all the
steps required to send an agricultural
good to market, namely production,
processing, and distribution.
Agribusiness is a broad
concept that encompasses the
various activities related to the
production, processing, marketing,
and distribution of agricultural
products. It combines agriculture
and business principles to create a
more efficient and profitable
agricultural industry.
Agribusiness includes everything from
farming and ranching to food processing,
distribution, and retail. It aims to maximize
agricultural productivity and profitability while
meeting the demands of consumers and
maintaining sustainability in the agricultural
sector. This concept recognizes that
agriculture is not just about farming but also
involves a complex network of businesses and
services that support and enhance the entire
food supply chain.
e. NEED FOR BALANCE
AND AGRO-INDUSTRIAL
GROWTH-IN
AGRICULTURAL
PRODUCTION
• Agriculture and industry have traditionally been
viewed as two separate sectors both in their
terms of their characteristics and their role in
economic growth.
• Agriculture has been considered the hallmark
of the first stage of development, while the
degree of industrialization is considered to be
the most relevant indicator of a country’s
progress along the development path.
• Agriculture itself has become a form of
industry, technology, vertical integration,
marketing and consumer preferences have
evolved along lines that closely follow the
profile of industrial sectors.
A common and traditional definition of
agro-processing industry refers to the subset of
manufacturing that processes raw materials and
intermediate products derived from the
agricultural sector.
Agro-processing industry means
transforming products originating from
agriculture, forestry and fisheries.
A very large part of agricultural production
undergoes some degree of transformation
between harvesting and final use. They range
from simple preservation (such as sun drying) and
operations closely related to harvesting to the
production, modern, capital intensive methods.
UPSTREAM and DOWNSTREAM INDUSTRIES
• Upstream industries are engaged in the
initial processing of agricultural commodities.
Ex: rice and flour milling, leather tanning, cotton
grinning, oil pressing, saw milling and, fish
canning.
• Downstream industries undertake further
manufacturing operations on intermediate
products made from agricultural materials.
Ex: bread, biscuit, and noodle making, textile
spinning and weaving, paper production and
rubber manufactures.
Agro-industries:
Promote entrepreneurship
Increase demand for agricultural
products
Link farmers to markets
Agricultural Growth
Reduced Rural Poverty
Improved food security
Motivations that influence customer’s
buying behavior in the agri-sector.
Price - It is believed that local public market provides cheaper foods
than the grocery stores in big malls.
Lifestyle - Sometimes lack of time, opportunity and
convenience (parking spaces) can be a motivation
in buying
Food Quality - Foods that are sold at the local
public market are believed to be better quality in
terms of those at the private supermarkets
freshness compared to
• Product Choice - Preference to buy
canned goods, processed meats,
condiments and other preserved foods
at the department stores
• Support for Local Farmers - Territorial
disputes in WPS has driven the
consumers to be positive in supporting
local farmers believing that it was good
to help them in every possible way
Conclusion: Opportunities and
Threats
• Climate Condition (La Niña/El Niño) - The climate of the
Philippines is highly influenced by El Niño
• Increasing population - the steadfast increase in population can be
a threat to Agriculture simply because the outputs of this sector at
present still falls short in order to attain self sufficiency.
• Land Conversion - significant agricultural lands are being
converted to various residential, community and industrial uses.
• Lack of Interest due to Low Income - Due to low income in
Agriculture and opportunities in the other industry sector, the
younger generations find it unattractive to work in the field.
