Development of Agribusiness Enterprises - Asian Productivity ...

Gross Value-added of Agribusiness Enterprises
In 1999, the gross value-added of agriculture amounted to some P=528 billion or 17.63
percent of GDP and 16.74 percent of GNP. These figures show that agriculture is still a
major economic factor in the Philippine’s economy. In 1999, the industrial sector recorded
a 28.87-percent share of GNP. Manufacturing firms (largely small- and medium-sized food
processors) accounted for 20.41 percent. On the other hand, the service sector under which
agricultural and agribusiness services were lumped, recorded a remarkable share of 49.34
percent of GNP. At constant prices (1995-99), agriculture, forestry and fisheries grew by
1.61 percent, while the growth of the industrial sector registered 2.77 percent and the service
sector accounted for 4.84 percent.
In 1998, based on value-added (current prices), the significant players were leather and
leather products (15.8 percent), footwear apparel (14.0 percent), paper and paper products
(13.8 percent), furniture and fixtures (13.0 percent) and food manufacturers (11.2 percent).
In 1999, rubber products drastically increased their share by 19.1 percent over the previous
year’s -4.4 percent. Food manufacturing increased slightly with a 15.0-percent share, up
from the previous level of 11.2 percent. The other players declined. In 1999, the gross
value-added of agribusiness enterprises totaled about P=399.1 billion (NSCB, 1999).
Agribusiness Trade Performance
1. Exports
Except for mangoes, which replaced abaca, the basket of commodities comprising the
top agricultural exports had remained the same for a decade. In 1999, the top 10 agricultural
products generated total earnings of US$1.29 billion or 73.4 percent of the total receipts from
agricultural products (Table 3) (Bureau of Agricultural Statistics, 2000). Coconut oil is the
premier agricultural export product. It constitutes 19 percent of the total agricultural exports.
The major markets for this product were the United States (48 percent, US$167.81 million),
the Netherlands (29 percent, US$98.48 million) and Japan (7 percent, US$22.7 million).
Fresh bananas are a consistent second to coconut oil, with a value of US$240.70
million, FOB. The bulk of fresh Philippine bananas was shipped to Japan (64 percent), China
10 percent), the Republic of Korea (9 percent), the Republic of China (7 percent), and the
United Arab Emirates (7 percent).
Pineapples and pineapple products ranked third with a value of US$137.32 million,
FOB. Major markets for Philippine pineapples were the United States (53 percent), Japan
(18 percent), the Netherlands (6 percent), the Republic of Korea (4 percent); and Canada (3
percent).
Tuna took fourth place with a value of US$129.65 million, FOB. Its major markets
were the United States (26 percent), Japan (20 percent), Canada (10 percent), Germany (6
percent), and South Africa (69 percent).
Shrimps and prawns ranked fifth with an export value of US$127.61 million, FOB.
The bulk was channeled to Japan (78 percent), the United States (13 percent), the Republic
of Korea (3 percent), Canada (1 percent), and Hong Kong (1 percent).
Sixth were desiccated coconut exports, valued at US$89.18 million, FOB. The bulk
of the exports were to the United States (44 percent), Germany (8 percent), the Republic of
China (8 percent) the United Kingdom of Great Britain and Northern Ireland (6 percent), and
Canada (6 percent).
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