Agribusiness refers to agriculture-related activities that put farmers, processors, distributors, and consumers within a system that produces, processes, transports, markets, and distributes agricultural products.
The transformation of agricultural farming into a thriving agribusiness-driven sector entails acquiring farming technologies, training in more sophisticated farming techniques, creating stable supply chains, establishing transport and agricultural infrastructure, investing and research and development, and securing a reliable property rights regime.
These activities can contribute not only in diversifying and increasing the value of agribusiness outputs, but also contribute to the inclusive growth and rural development agenda of the Philippine government. Because of this, the agribusiness sector is positioned to largely contribute to the industrial development of the Philippine economy.
The vision is to transform and upgrade the agriculture sector from traditional farming to agribusiness or industrial clusters to take advantage of opportunities in rubber, coconut, mangoes, bananas, coffee, palm oil, cacao, and other emerging high value crops.
Short-run (2014-2017) Goals:
Medium-run (2018-2021) Goals:
Long-run (2022-2025) Goals:
Growth Performance
The agricultural sector, as a whole, has only grown by an average of 1.1% in the last five years in terms of value added. At the sub-sector level, the fishery sector has registered the fastest growth of the three components, with an average value added growth of 9.2% from 2009 to 2013. It is followed by the agriculture (crops, livestock and poultry) sub-sector, with an average value added growth of 1.4%. In this sub-sector, the cassava and poultry segments, which have registered average value added growth rates of more or less 4%, are the top performers. The forestry sector contracted, on the average, by 0.3% during the same period.
Value Added Growth Performance (in percent)
Year | 2009 | 2010 | 2011 | 2012 | 2013 | 2009-2013 |
TOTAL INDUSTRY | -0.7 | -0.2 | 2.6 | 2.8 | 1.1 | 1.1 |
AGRICULTURE | -1.6 | 0.2 | 4.2 | 3.6 | 0.9 | 1.4 |
Palay | -1.2 | -2.4 | 5.9 | 8.0 | 2.2 | 2.5 |
Corn | 1.4 | -8.9 | 9.5 | 6.3 | -0.4 | 1.6 |
Coconut with Copra | 2.1 | -0.6 | -2.2 | 4.2 | -3.5 | 0.0 |
Sugarcane | -6.3 | -15.7 | 59.7 | -8.9 | -6.9 | 4.4 |
Banana | 4.2 | 0.6 | 0.7 | 0.7 | -6.3 | 0.0 |
Mango | -12.5 | 6.9 | -4.6 | -2.6 | 6.2 | -1.3 |
Pineapple | -1.1 | -0.3 | 3.2 | 7.1 | 2.8 | 2.3 |
Coffee | -1.2 | -2.0 | -6.8 | 1.4 | -11.6 | -4.1 |
Cassava | 3.2 | 4.8 | 5.1 | 1.1 | 6.3 | 4.1 |
Rubber | -5.1 | 1.3 | 7.8 | 4.0 | 0.4 | 1.7 |
Other Crops | -0.5 | 2.7 | -3.2 | 1.5 | 0.2 | 0.2 |
Livestock | -1.0 | 0.6 | 2.0 | 1.1 | 1.8 | 0.9 |
Poultry | -2.0 | 7.7 | 4.4 | 4.6 | 4.2 | 3.8 |
Agricultural Service | -8.6 | 3.3 | 3.0 | 2.1 | 0.6 | 0.1 |
FORESTRY | 3.0 | -0.5 | -4.3 | -0.4 | 0.7 | -0.3 |
FISHERY | -2.0 | -31.3 | 40.5 | 2.3 | 36.7 | 9.2 |
Source: Bureau of Agricultural Statistics
Value Added Contribution The value added
The value added share of agriculture to GDP has been the lowest among the three major sectors of the economy since 2008. At the sub-sector level, agriculture (crops, livestock and poultry) has the largest average value added contribution, with an 80% average share from 2008 to 2013, whereas the fishery sector has the lowest contribution, with only a marginal average share of 0.6% for the same period. The top contributors for the agriculture sub-sector are palay, livestock and poultry, with more than 10% contribution to the total agricultural industry value added share.
Agriculture Value Added Contribution (in percent)
Year | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2008-2013 |
Industry | 32.8 | 31.8 | 33.6 | 32.1 | 32.1 | 32.8 | 32.5 |
Services | 48.9 | 50.1 | 49.7 | 56.4 | 56.9 | 56.8 | 53.1 |
Agriculture | 18.3 | 18.1 | 16.8 | 11.5 | 11.1 | 10.4 | 14.4 |
AGRICULTURE (crops, livestock and poultry) | 79.5 | 78.8 | 79.0 | 80.2 | 80.8 | 80.7 | 79.8 |
Palay | 19.1 | 19.0 | 18.6 | 19.2 | 20.1 | 20.4 | 19.4 |
Corn | 5.6 | 5.7 | 5.2 | 5.6 | 5.8 | 5.7 | 5.6 |
Coconut with Copra | 4.4 | 4.5 | 4.5 | 4.3 | 4.4 | 4.2 | 4.4 |
Sugarcane | 2.2 | 2.0 | 1.7 | 2.7 | 2.4 | 2.2 | 2.2 |
Banana | 4.7 | 5.0 | 5.0 | 4.9 | 4.8 | 4.5 | 4.8 |
Mango | 2.4 | 2.1 | 2.3 | 2.1 | 2.0 | 2.1 | 2.2 |
Pineapple | 2.1 | 2.1 | 2.1 | 2.1 | 2.2 | 2.2 | 2.1 |
Coffee | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.4 | 0.5 |
Cassava | 1.1 | 1.1 | 1.2 | 1.2 | 1.2 | 1.3 | 1.2 |
Rubber | 0.5 | 0.4 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
Other Crops | 6.1 | 6.1 | 6.3 | 6.0 | 5.9 | 5.8 | 6.1 |
Livestock | 13.6 | 13.5 | 13.7 | 13.6 | 13.3 | 13.4 | 13.5 |
Poultry | 9.7 | 9.6 | 10.3 | 10.5 | 10.7 | 11.0 | 10.3 |
Agricultural Service | 7.5 | 6.9 | 7.1 | 7.2 | 7.1 | 7.1 | 7.2 |
FORESTRY | 19.9 | 20.7 | 20.6 | 19.2 | 18.6 | 18.5 | 19.6 |
FISHERY | 0.6 | 0.6 | 0.4 | 0.6 | 0.6 | 0.7 | 0.6 |
Source: Bureau of Agricultural Statistics
Employment Contribution
The agriculture sector, as a whole, has been the second biggest employment contributor to total employment since 2008, with an average share of 33.65% from 2008 to 2013. The top contributor for the same period is the services sector, with an average share of more than 50%. In the sub-sector level, the agriculture (crops, livestock and poultry), hunting and forestry segment, with an average employment share of 30%, has the bigger share than the fishery segment with only a 4% average contribution to total employment for 2008 to 2013. Employment Contribution of Agriculture (in percent)
Year | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2008-2013 |
TOTAL AGRICULTURE | 35.1 | 35.3 | 34.3 | 33.0 | 32.2 | 31.1 | 33.5 |
Agriculture, Hunting and Forestry | 30.8 | 31.1 | 30.2 | 29.0 | 28.4 | 27.4 | 29.5 |
Fishery | 4.3 | 4.2 | 4.2 | 3.9 | 3.8 | 3.7 | 4.0 |
Industry | 15.3 | 14.8 | 14.5 | 14.9 | 15.3 | 15.6 | 15.1 |
Services | 49.6 | 49.9 | 51.1 | 52.1 | 52.6 | 53.4 | 51.5 |
Source: Yearbook of Labor Statistics (2014)