REGIONAL ECONOMIC SITUATIONER Western ... - NEDA-RDC VI

I. ECONOMIC PERFORMANCE
1. Prices
REGIONAL ECONOMIC SITUATIONER
Western Visayas Region
Third Quarter 2005
On a monthly basis, the regional average inflation rate continued a rising
trend from a low of 2.7 percent at the start of 2004 peaking at 9.4 percent on
May 2005 and leveling at 7.4 percent on September which is just even with the
high figures of the last quarter of 2004 (Fig. 1). The average inflation rate was
computed at 5.0 percent in CY 2004 and the average for the 9-month period in
CY 2005 is high at 7.9 percent.
The rising rate of inflation is due to the acceleration in the prices of fuel,
light and water (11.8 percent) (Table 1). Though the year-on-year inflation for all
items did not significantly change, the increase in prices of fuel could be the
major trigger for the continuing rise in the monthly average inflation rate as
depicted in Figure1.
10.0
8.0
6.0
4.0
2.0
0.0
Figure 1
Monthly Inflation Rate, Region VI
January 2004 to September 2005
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2004 2.7 2.5 2.8 2.8 3.5 5.1 6.1 6.5 6.5 7.4 7.4 7.4
2005 7.6 8.1 8.2 9.0 9.4 7.8 7.0 6.9 7.4
Source: National Statistics Office, Region 6
Table 1
Inflation Rate by Commodity Group, Region VI
Third Quarter 2004, Second and Third Quarters 2005
(2000 Based)
Commodity Group 3 rd Quarter 2
2004
nd Quarter 3
2005
rd Quarter
2005
All Items 6.3 8.7 7.1
I. Food, Beverage & Tobacco 4.8 9.0 8.7
A. Food 4.8 9.0 8.7
B. Beverage 4.8 8.8 8.1
C. Tobacco 2.4 7.9 8.1
II. Non-Food 8.0 8.4 5.5
A. Clothing 2.0 2.4 2.8
B. Housing & Repair 7.6 6.8 2.8
C. Fuel, Light & Water 10.6 10.3 11.8
D. Services 11.3 12.5 6.5
E. Miscellaneous 1.5 2.6 2.9
Source: National Statistics Office, Region 6
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12.0
10.0
Inflation rates among the provinces have all gone down compared to the
previous quarter, but had gone up compared to same period last year. This 3 rd
quarter, Negros Occidental registered the lowest inflation rate (5.4%) while
Antique and Guimaras registered the highest at 9.1% and 9.0%, respectively.
8.0
6.0
4.0
2.0
0.0
Figure 2
Inflation Rate, By Province, Region VI
Third Quarter 2004, Second and Third Quarters 2005
Region 6 Aklan Antique Capiz Guimaras Iloilo Neg. Occ.
3Q '04 6.4 9.2 4.4 3.5 6.4 6.8 5.1
2Q '05 8.7 7.5 10.8 6.8 9.1 10.4 6.6
3Q '05 7.1 8.2 9.1 6.5 9.0 8.1 5.4
Source: National Statistics Office, Region 6
2. Employment
As of July 2005, the labor force or population aged 15-64 years old in
Region VI is around 2,963,000. There was a big increase in employment rate in
2 nd quarter based year-on-year. For the 3 rd quarter there was a slight decrease of
0.6 percentage points. In CY 2005, a slight decrease of 1.4 percentage points
was observed from 2 nd to 3 rd quarter (Table 2).
Unemployment rates decreased largely in 2 nd quarter but slightly
increased in the 3 rd quarter based on year-on-year comparison. In CY 2005, a
1.4 percentage point increase was observed from 2 nd to 3 rd quarter.
The visible underemployment rates increased year-on-year (1.7
percentage points in 2005). Due to increasing costs of basic commodities, more
people tend to actively seek for another job on top of their existing ones causing
the visible underemployment rates to increase.
2004
April
July
2005
April
July
Difference
Year-on-Year
(July/3 rd Quarter)
Quarter-on-Quarter
(April-July 2005)
Table 2
Rates of Employment, Unemployment and
Visible Underemployment, Region VI
April/July 2004 and 2005
Employment
Rate
87.3
93.6
94.4
93.0
-0.6
-1.4
Source: National Statistics Office – Labor Force Survey
Unemployment
Rate
12.7
6.4
5.6
7.0
0.6
1.4
`
Visible
Underemployment
Rate
15.9
14.3
16.6
16.0
1.7
-0.6
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The Department of Labor and Employment, Region VI reported that
during the 3rd Quarter of 2005 a total of 80 establishments had either closed
shop or trimmed down the workforce. As a result, some 792 workers lost their
jobs. This number, though is slightly lower (3.4%) than in the same quarter last
year. Out of the 80 establishments that shut down, 27 were in the wholesale and
retail trade sector. Financial problems caused the closure and/or retrenchment of
the majority (58) of these establishments.
Table 3
Number of Shutdowns and Retrenchments
and Number of Employees Affected, Region VI
Third Quarter 2004 and 2005
3rd Quarter
2004
3rd Quarter
2005
Percent
Change
RETRENCHMENT
No. of Establishments 38 61 60.5
No. of Employees Affected
SHUTDOWN
485 494 1.9
No. of Establishments 9 19 111.1
No. of Employees Affected
TOTAL
335 298 -11.0
No. of Establishments 47 80 70.2
No. of Employees Affected 820 792 -3.4
Source: Department of Labor and Employment, Region 6
3. Agriculture Production
A. Major Crops
A year-on-year comparison is relevant for agriculture production because
seasonality affects the quarter-on-quarter analysis. A three-year analysis is shown
in Table 4.
Palay production in 3 rd quarter 2005 is lower compared to the previous two
years, i.e., 24% lower than Q3-04 and 10% less than Q3-03. July-September is
the normal harvest season for first cropping of palay in the region. The negative
production performance can be attributed to lack of water (less rain) especially
during the flowering stage resulting to a low yield. Lack of water also resulted to
stunted growth and proliferation of tungro and heat-induced plant diseases.
Corn production, on the other hand, increased significantly, i.e., 25% higher
than Q3-04 and 44% greater than Q3-03. Lack of water for palay production
probably pushed farmers to plant corn resulting to higher corn production for this
year.
Sugarcane production showed a decreasing trend of around 18%
compared to the past two years. Crop diversification and conversion of sugar lands
to other crops, especially in Negros Occidental mainly caused this declining
sugarcane output in the region.
Banana production is on the uptrend. Despite the lack of water this year,
there was a modest 2% increase over 2004 level and a respectable 6% increase
over 2003 level. Banana production (especially the high valued lakatan variety) has
replaced sugarcane in some parts of central Iloilo as plantations also continued to
expand in the provinces of Capiz, Negros Occidental and Aklan.
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Table 4
Selected Production Indicators, Region VI
Third Quarter 2003, 2004 and 2005
3rd 3rd 3rd Percent Percent
INDICATOR Quarter Quarter Quarter Change Change
2003 2004 2005 Over '03 Over '04
A. Crops (MT)
Palay 687,299 806,341 617,232 -10.2 -23.5
Corn 67,896 78,276 97,831 44.1 25.0
Sugarcane 390,692 390,848 321,412 -17.7 -17.8
Banana 39,234 40,533 41,467 5.7 2.3
Mango 3,810 3,252 3,754 -1.5 15.4
Coconuts ('000 nuts) 125,972 124,009 124,358 -1.3 0.3
B. Animal Slaughtering
(MT-Liveweight)
Carabao 4,500 4,532 4,087 -9.2 -9.8
Cattle 6,538 6,092 5,711 -12.6 -6.3
Swine 33,710 35,820 41,513 23.1 15.9
Goat 1,532 1,514 1,281 -16.4 -15.4
Chicken 14,261 15,155 16,446 15.3 8.5
Duck 1,362 1,021 902 -33.8 -11.7
C. Fisheries (MT)
Commercial 34,639 30,457 29,794 -14.0 -2.2
Municipal 28,611 29,755 31,317 9.5 5.2
Aquaculture 39,299 39,102 38,383 -2.3 -1.8
Source: Bureau of Agricultural Statistics, Region 6
Mango production in the region ranges between 3-4 million MT. For this
period, output increased by 15% compared last year, but lower by 1% compared to
2003 level. Mango production may be expected to increase over time as
plantations expand as a result of crop diversification from sugarcane.
Coconut production, on the other hand, widely ranges between 124-126
million nuts for whole region. This period’s output increased insignificantly (0.3%)
compared last year and decreased, also insignificantly (1%), compared to 2003
level. Coconut output may not be expected to dramatically increase over time
considering the continuous increasing demand for the cheap coconut lumber vis-àvis
efforts of the government to expand planting of high yielding varieties all over
the region.
B. Animal Slaughtering
Livestock and poultry production based on number slaughtered for
consumption during this period, generally decreased compared to the previous
two years, except for swine and chicken.
Carabao and cattle slaughtering declined even as demand is increasing
due to population. Factors like declining pastures and low incomes may be the
main causes of this trend. Likewise, goat production also showed a steady
decline. On the other hand, swine production steadily increased as, probably, it
represents the cheaper alternative for meat and fish consumption. Moreover,
backyard swine production has become a steady source of income for
households as it is not affected by shrinking and drying pastures.
Chicken slaughtering showed an increasing trend over the last two years.
A bumper corn production in the region could have significantly contributed to the
increase of chicken production. In contrast, duck production showed a
dramatically decreasing trend. This could be largely due to drying up of irrigation
canals and paddy fields – the main support system of duck-raising.
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C. Fishery
Commercial fishing, allowed beyond the 15-km-from-shore municipal
fishing boundary, showed a declining trend over the three-year period. Declining
fish catch could be the result of unsustainable practices such as the use of fine
mesh nets and coral destroying gears.
On the other hand, municipal fishing has an increasing trend. The
resurgence of shellfish production, especially angel wings or diwal in Capiz over
the last two years, could have contributed to this increased output.
Aquaculture output in the region, which is mainly production from inland or
river-based ponds, ranged between 38,000-40,000 MT. The slight production
decline over three years could be contributed by pollution and constriction of
river flows due to siltation.
4. Investments
Total private investments through the Business Name Registration (BNR)
for 3rd quarter 2005 increased by 13.4% compared to the same quarter last
year. A total of 414 firms registered during the quarter compared to 494 firms
registered on the previous quarter. Capiz posted the highest increase of 292%
followed by Negros Occidental with 31% and by Aklan with 26%. Guimaras had
the biggest decrease in investments of 42.5%. The registration of a memorial
park, commercial establishment and a rice mill contributed to the high investment
level in Capiz for this quarter.
Table 5
Private Investment, Region VI
Third Quarter 2004, Second and Third Quarters 2005
3rd 2nd 3rd Percent Percent
INDICATOR Quarter Quarter Quarter Change Change
2004 2005 2005 Over Q2 '05 Over Q3 '04
Business Name Registration 1,846.1 1,791.3 2,093.0 16.8 13.4
(In Million Pesos)
Aklan 80.0 137.0 100.8 -26.4 26.0
Antique 46.9 40.5 38.2 -5.7 -18.6
Capiz 66.1 85.5 258.9 203.0 291.4
Guimaras 39.5 25.3 22.7 -10.4 -42.5
Iloilo 892.8 378.7 727.8 92.2 -18.5
Negros Occidental 720.8 1,124.3 944.6 -16.0 31.0
Source: Department of Trade and Industry, Region 6
5. Tourist Arrival and Receipts
Seasonal differences also affect tourism. Compared to 2004 levels, tourist
arrivals and receipts in 2005 increased by around 13% and 29%, respectively.
However, this is lower than the previous quarter of same year. While foreign
tourists increased from 2 nd to 3 rd quarter probably due to vacation timing (July-
August is school break in the USA), domestic tourists largely declined because
3 rd quarter is already a rainy season. Domestic tourists comprise the bulk of
tourism in the region, about 84% and 72% of arrivals in the 2 nd and 3 rd quarters
of 2005, respectively.
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Table 6
Tourist Arrivals and Receipts, Region VI
Third Quarter 2004, Second and Third Quarters 2005
3rd 2nd 3rd Percent Percent
INDICATOR Quarter Quarter Quarter Change Change
2004 2005 2005 Over Q2 '05 Over Q3 '04
Total Tourist Arrivals 173,695 297,752 197,085 -33.8 13.5
Domestic 101,003 249,281 141,519 -43.2 40.1
Foreign 66,871 39,591 48,624 22.8 -27.3
OFW 5,821 8,880 6,942 -21.8 19.3
Receipts (Billion Pesos) 2.4 5.5 3.1 -42.5 29.3
Source: Department of Tourism, Region 6
II. DEVELOPMENT OUTLOOK
1. Development Issues
The discussion of potential and/or unique industries that may influence
regional economic development has been revived in this issue of the QRES. This
was made possible partly through the assistance of the GTZ for dovetailing of
monitoring and evaluation efforts toward the regional development plan
implementation and partly through the NEDA initiatives at the regional and
national levels to improve the quarterly assessment of economic performance.
Seven (7) commodities/industries are featured this quarter. From personal
interviews with key informants and secondary data, a brief background is
presented followed by the identification of development issues relative to the
industry and the regional economy.
A. Abalone
The researchers of Southeast Asian Fisheries Development Center
(SEAFDEC) based in Tigbauan, Iloilo have successfully spawned abalone (Haliotis
Asinina) in captivity in 1994. This species is called by Australian scientists as the
“fastest growing abalone in the world” and was proved here in the Philippines, in
contrast to other countries like Australia, Japan, Mexico and New Zealand where
similar species had been cultured.
Local market demand for abalone has tremendously increased since
1994. Most buyers are from Negros Occidental and high-end Chinese
restaurants in Manila where abalone sells at P2,000 to P2,500 per plate.
Like other fish stocks, however, abalone suffers from heavy fishing
pressure and SEAFDEC needs to refine its existing breeding and hatchery
techniques to produce sufficient seeds for re-stocking and to help restore the
natural abalone population in the region. SEAFDEC has very limited resources to
directly disseminate the technology to small fisherfolk. Hence, it banks on the
cooperation of BFAR and interested private groups and local government units
for partnering. Currently, several municipalities in the region have started
abalone production with the help of some business groups or non-government
organizations.
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B. Angel Wings Shellfish (Diwal)
This delectable and high value shellfish, locally called Diwal due to its
tongue-like projection and scientifically known as Pholas orientalis, has a long
and dramatic history in the region, especially in Roxas City - the Seafood Capital
of Western Visayas, where it abounds.
The 1970s are considered the years of abundance of angel wings
specifically growing in the inter-tidal zone (Barra) near the mouth of Palina and
Panay rivers. Production was year-round at average selling price of 5 centavos
per piece. In 1980-1986, harvesting became seasonal, May-August only, at
average selling price of 25 centavos per piece. In 1987, angel wings started to
disappear at a time when prawn became a sunrise industry. After a 5-year
hiatus, a 1-ha angel wings population was found in an area (Punta Cogon) very
far from its original growing site. Seasonal harvesting of limited quantity ensued
until 1998. A study for policy and management purposes was conducted by UP
Visayas with the support of the provincial government, PCAMRD and BFAR in
1996. Transplantation was done to complete the one year intensive research. In
1999, the city and provincial governments imposed the ban for collection of angel
wings and Kapis – another valuable shellfish in Roxas City. In 2003, angel wings
re-appeared in Barra. Production and collection of angel wings under the city’s
Coastal Resource Management (CRM) Program highlighted the lifting of the ban
in 2004. In July 2005, Roxas City successfully conducted the first Diwal Harvest
Seafood Festival. In 2004, around 15 MT was harvested. In 2005, it reached
almost 64 MT and sold at an average of P150/kg. According to Ms. Belinda
Garrido, the CRMP Coordinator, God replenished Roxas City waters with
abundant growth of diwal, so they are duty and faith bound to protect it.
The following causes were cited for the disappearance of angel wings: 1)
pollution from chemical discharges of prawn ponds; 2) trawling in traditional
growing areas; 3) over-harvesting of undersized angel wings; 4) strong waves
and current covered growing areas with sand leading to death of species; 5)
diseases and predators; 6) use of cyanide and dynamite in municipal fishing; 7)
siltation due to upland erosion and proliferation of structures in riverine areas.
The re-appearance of angel wings are attributed to these factors: 1) use
of chemicals abated when most fishpond owners went back to traditional bangus
culture when the prawn industry got to losing end; and 2) LGU efforts to
rehabilitate the resource through transplantation, moratorium on shellfish
gathering in 1999-2003, and establishment of shellfish reservation zone with the
passing of a new CRM ordinance and guidelines on angel wings management.
In order to sustain the increase in annual harvest of angel wings, the city
government resolves to: 1) encourage divers to become responsible stewards
through continuous advocacy and education campaign; 2) strengthen and widen
the multi-sectoral participation in the CRM program; 3) address siltation problem
in Barra area through a comprehensive approach involving the upland
communities; 4) ensure that enough volume of breeders are left in growing areas
after harvest season; and 5) strict implementation of applicable fishery and
environmental laws and rules.
C. Furniture
Production of furniture in the region this year was estimated to be about
25% less than last year. The number of buyers also decreased by about 35%
based on bookings and negotiated sales during local furniture shows. This is the
general status of the regional furniture industry according to Ms. Marianne
Tajanlangit, Executive Director of the Iloilo Furniture Manufacturing Association.
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The rising cost of oil prices caused raw materials to increase making the
country, in general, less competitive with other furniture manufacturing countries
like China and Vietnam. Political instability and the worldwide economic slump
were also cited as factors affecting the industry.
Iloilo could be as competitive as Cebu in terms of product development
and design. It has an advantage over the latter in the availability of local
materials for furniture development such as bamboo and rattan. Joining
internationally organized furniture shows (especially the rich European Union
market) would boost the sales of Iloilo furniture producers. Along this line,
government assistance is vital not just for the furniture industry, but also for
handicrafts export industry.
D. Gamefowl
The gamefowl industry contributes around P8-10 billion annually to the
national economy. If feeds and veterinary products supporting the gamefowl
industry are included, the national economic contribution could reach up to P30-
40 billion per year. This is the significance of gamefowls to the economy
according to Mr. Ricardo Palmares, President of the National Federation of
Gamefowl Breeders Associations and the Panay-Guimaras Gamefowl Breeders
Association.
Production of gamefowls from commercial farms (>100 fowls) in Region
VI has decreased by half (50%) over the last 2 years. This was mainly due to
the proliferation of small and backyard breeders now comprising around 90% of
regional and national breeders. Likewise, cockers who are normally buyers of
ready-to-fight fowls started to breed their own fowls. Industry-wide, though
gamefowl production is increasing every year. As a result there are more
cockfights but lesser sales of gamefowls.
A commercial farm economically supports 3-4 families on the average.
The Federation has now 1,500 individual members representing 12 associations
all over the country.
The ban of gamefowl breeding in the USA, save for just two states, opens
an export potential for local breeders to markets like Malaysia, Indonesia, Macau
and Mexico. In order to promote this, the government should lift restrictions on
gamefowl exports. On the other hand, the local feeds and veterinary businesses
like Thunderbird have already started exporting their products.
Gamefowls breeding and cockfighting to remain as a decent and viable
industry should be promoted, as being done by the Federation, as a sport and
tourist-attracting industry and not as a mere gambling industry. The Federation
strives to encourage breeders, big or small, to formally join the associations
where teachings of good values and attitudes formation are promoted.
E. Handmade Paper
There is a pioneering handmade paper industry in the region - Creative
Paper, owned by Mr. Davy John Barlin based in San Miguel, Iloilo. The business
started operating in 1993 with 40 personnel. Raw materials used are abaca and
salago, a weed mostly found in Aklan province.
Production peaked to almost 20,000 sheets in 2004, but it produced only
half in 2005. Demand for handmade paper declined with the emergence of
fancy paper. In order to stay competitive in the industry, a foreign-made
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machine costing around P150 million is needed by Creative Paper to produce
fancy paper which is currently growing in demand.
The export potential of handmade or fancy paper is great considering the
quality and uniqueness of the product made from locally available materials
providing a backward linkage to abaca farming and production of other local
fibers.
F. Muscovado
G. Silk
In 1970s Antique is one of the leading producers of muscovado sugar in the
Philippines. The muscovado producers formed the Antique Muscovado Sugar
Producers Association which was later reorganized into the Antique Livelihood
Development, Inc. with assistance from DTI. A grant from DTI-SMED Project
made possible the implementation of a two-year Antique Muscovado Sugar
Industry Assistance Program.
In 2001, the Antique Muscovado Sugar Producers Marketing Cooperative
was organized with the installation of a marketing system, again with the help of
DTI. The cooperative was strengthened in 2004 with the help of the Provincial
Cooperative Development Office. There are eight (8) municipalities that are into
muscovado sugar production. The Municipality of Laua-an is the leading producer
with the most number of milling facilities that are all village type sugar mills and
small processing facilities directly employing the local people.
Muscovado production is increasing with 35 MT in 2003, 40 MT in 2004
and more expected in 2005. However, it is still insufficient to meet the growing
domestic and foreign market demands. El Maestro is a company in Antique now
packaging high quality muscovado for export to California, USA. Only 3 out of
112 mills are producing export grade muscovado for this venture. Alter Trade of
Bacolod City buys most of the sugars produced by other millers. There is also a
growing demand for organically produced muscovado.
The provincial government of Antique provides financial and marketing
assistance to the industry, making it the banner project/commodity of Antique.
Agencies like the DTI, DOST and SRA continue to assist the industry. However,
upgrading of old mills, technology dissemination and insufficient financial
assistance to planters and millers remain as priority areas of support for the
muscovado industry in Antique.
Western Visayas is the largest silk producing region in the country today
contributing 80-85% of annual supply according to Mrs. Thelma Watanabe,
Manager of the Organization for Industrial, Spiritual and Cultural Advancement
(OISCA), a Japanese-assisted NGO based in Bago City, Negros Occidental.
OISCA supplied almost all the silk used in the Philippine Pavilion that won in the
2005 World Expo in Aichi, Japan.
In 2004, OISCA produced 1.7 MT compared to almost 4 MT in 2003. Two
big local cocoon producers laid low when OISCA technicians assisting them
transferred to other groups. Coupled with unfavorable weather, it led to low
production in 2004. A 5 MT production is expected next year. Silk thread and
yarn demands are strong within Region VI itself. About 90% of OISCA silk goes
to Aklan and 3% to Iloilo for weaving into textiles in combination with husi, piña,
hablon and other materials. Only 7% is sold to Jeanne Goulbourne in Manila.
The demand for silk dramatically increased after OISCA participated in the
WOW Philippines exposition held in Intramuros, Manila in 2003.
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The industry has strong support from the city of Bago and the province of
Negros Occidental. The Governor of Negros Occidental gave OISCA a P3 million
soft loan for silkworm farmers. An earlier loan of P7 million from JICA enabled
OISCA to expand assistance from 50 to 120 farmers. With the continuous
support of the LGU and the right attitude of the farmers, the industry could really
improve the lives of silkworm farmers.
Sericulture should be promoted as a priority industry in the region. A JICA
study found that OISCA silk could compete with Japanese silk in Japan market.
Importing silk worm eggs from Japan would facilitate expansion of local silk
production possibilities.
2. Recommendations
The following policy recommendations were derived during key
informants’ interviews about the national economy and as a follow through of
issues on the development of potential/unique commodities/industries in the
region for this quarter.
Generally, it is recommended that government financial and technical
support should be focused more into ventures that promote high value
agriculture and agriculture-based products for domestic and foreign markets.
Political problems should not serve as hindrance to the development of national
or local economies. Hence, it should not be the main focus of governance.
Region VI has distinct advantages with the commodities/industries
featured in this report. Silk could be produced anywhere in the country, but
OISCA had established the local silkworm breeding technology in Bago City
producing quality silk that could even be exported to Japan. The expansion of
this venture into adjacent areas in Negros Occidental should be given priority
over other areas. In support of the sericulture industry, the DA and DTI may look
into liberalization of silkworm breeders trading especially between the Philippines
and Japan.
Muscovado maybe produced in any sugarmill across the country today,
but the sugar base in Antique has unique qualities that pull traders toward the
province. The Sugar Regulatory Agency is currently stationed in Bacolod City
which is far away from Laua-an where most muscovado mills are located.
Besides financial and marketing support, Antique needs technicians to improve
its sugar output from the cane to muscovado with a quality that is specially
acceptable in the international markets.
Local weaving materials are abundant in the region and their potentials
should be fully harnessed in fashion, handicrafts and furniture industries. A set of
clear and attractive investment incentives package by local governments for the
private sector could readily give impetus for these ventures. Government support
should be continued and intensified in the fields of technology, marketing and
enterprise development. Trade liberalization should facilitate lowering of input
costs in these industries while at the same time strengthening the country’s
position in the world market for the products.
The region, particularly Roxas City has a clear comparative advantage on
angel wings production. With SEAFDEC’s presence in the region, we have a
competitive advantage in abalone production. These two products could make
the economy shine even with just local efforts, especially if government and
business sectors put their heads and resources together on this matter.
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The gamefowl industry should be allowed to emerge and promoted as a
tourist attraction venture. It has a very strong and wide backward linkage to
agriculture and industrial sectors. Production of feed components should be
import-substituting; veterinary products developed locally could be exported; and
amenities offer a wide range of possibilities like fruit production complementing
gamefowl breeding farms enhancing forestry areas for eco- or farm-tourism. This
industry should be looked more closely by government agencies like the DOT,
DOST, DENR, DA and DLR, among others.
The LGUs with the support of business and private groups should take the
opportunity with these commodities/industries to prove to the national
government that they could initiate and manage viable enterprises toward
greater decentralization.
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