AGRIBUSINESS

Agribusiness is the business of agricultural production. The term

was coined in 1957 by Goldberg and Davis. It includes agrichemicals,
breeding, crop production (farming and contract farming),
distribution, farm machinery, processing, and seed supply, as well as
marketing and retail sales. All agents of the food and fiber value
chain and those institutions that influence it are part of the
agribusiness system.
 agriculture conducted on commercial principles, especially
using advanced technology.
.
 the group of industries dealing with agricultural produce and
services required in farming. 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.

Vision of the Industry

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.

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 200 200 201 201 201
8 9 0 1 2
TOTAL AGRICULTURE 35.1 35.3 34.3 33.0 32.2
Agriculture, Hunting and Forestry 30.8 31.1 30.2 29.0 28.4
Fishery 4.3 4.2 4.2 3.9 3.8
Industry 15.3 14.8 14.5 14.9 15.3
Services 49.6 49.9 51.1 52.1 52.6
Source: Yearbook of Labor Statistics (2014)

04

Industries

Cacao / Tablea

The Philippine tablea is defined as roasted, ground and

molded nibs of fermented pure (100%) cacao beans
without added ingredients and additives. It is also a cocoa
mass and cocoa liquor made from cacao beans that are
fermented, dried, roasted, ground then molded into
blocks, balls, discs, or tablets.

It is traditionally used in the Philippines to make a hot

chocolate beverage using a wooden mixing implement or
stirrer. The Cacao Industry Development Association of
Mindanao estimated that around 2,000 tons of cacao
beans is processed to tablea.

Carrageenan

Among the world's top biggest exporters, the Philippines

is a well-known and leading producer of carrageenan.
"Philippine-grade" carrageenan is one of the most reliable
inputs in meat processing, processed food, dairy
products, condiments, personal care products, and pet
food products.

Condiments
Condiments and sauces are among the country's
essential food products. In a country where eating and
dining is an important social activity, these products are
constantly profitable and will continue to experience high
levels of demand as the population increases. In this
regard, the Philippine condiments industry can enhance
its competitiveness in specialty products, as well as
explore other export markets in order to increase sales
and accelerate growth.
Processed Fruit
Dried mangoes is among the more competitive food
manufactured products in the Philippines. The country’s
brand of dried mangoes is well-recognized around the
world, with 85% of total dried mango local production
exported to key markets, such as the United States,
China, Japan, South Korea, and other Asia Pacific
countries. Because of the wide acceptability of dried
mangoes worldwide, the Philippines can reap greater
benefits by expanding its market coverage and
deepening the value of dried mango production in the
country.
Processed Meat
The Philippine processed meat industry has six different
product categories: fresh processed meat products, cured
meat pieces, raw-cooked products, pre-cooked products,
raw (dry) – fermented sausages, and dried meat. Major
export products are sausages, corned beef, bacon,
luncheon meat, and other indigenous meat products.
Processed Shrimp
Shrimp is one of the seven major aquaculture species in
the Philippines and is one of the country's two major
aquaculture exports, sent to countries such as Japan,
Korea, and the United States. Shrimp farming in the
Philippines uses a variety of systems which are affected
by the climate, availability of capital, site location,
sources of water supply, the marketing of harvested
products, and the availability and cost of farm inputs.
A business that earns most or all of its revenues from agriculture.
An agribusiness tends to be a large-scale business operation and
may dabble in farming, processing and manufacturing and/or the
packaging and distribution of products.