AGRICULTURAL ENTERPRISE

WHAT IS AGRICULTURE?
 It is thus described as both an art and a science (needs skill and founded on scientifically verified
facts) and thus includes specialized disciplines; the words “growing” and “raising” are
descriptive of enterprise, activity or practice. It has two main divisions: plant or crop
production and animal or livestock production; and it’s ultimate purpose is for food production,
other human needs such as clothing, medicines, tools, artistic display, dwelling, and feed for
animals, or for economic gain or profit.
 "Agriculture is the art and science of growing plants and other crops and raising animals for food,
other human needs, or economic gain."

WHAT IS AN ENTERPRISE?
 business activities directed at profit: organized business activities aimed specifically at growth
and profitMicrosoft® Encarta® 2009. © 1993-2008 Microsoft Corporation. All rights reserved.
Status of Philippine Agricultural
enterprise
SURVEY OF FOOD DEMAND
FOR AGRICULTURAL
COMMODITIES IN THE
PHILIPPINES
Republic of the Philippines
Department of Agriculture
BUREAU OF AGRICULTURAL STATISTICS
JUNE 2010
concepts and definitions, coverage and
classification system.

 Household refers to a person or a group of persons, generally but not necessarily bound by ties
of kinship, who live together under the same roof and eat together or share in common
household food.

 ♦ Socio-economic classification of households were classified as follows1

 AB (Upper Class) – the most affluent group whose homes and lifestyle exude an obvious
disregard for or lack of economizing. C (Upper/Middle Class) – those households whose homes
and lifestyle reflect comfortable living and the capacity to indulge in a few luxuries. D (Lower
Class) – those households who have some comfort and means but basically thrive on a hand-to-
mouth existence. E (Extremely Lower Class) – those households who evidently face great
difficulties in meeting their basic survival needs.
 concepts and definitions, coverage and
classification system.

 Classification of Barangays2
 Urban areas fall under the following categories:
 1. In their entirety, all municipal jurisdictions which, whether designated chartered cities, provincial
capital or not, have a population density of at least 1,000 persons per square kilometer: all barangays;
 2. Poblaciones or central districts of municipalities and cities, which have a population density of at least
500 person’s square kilometer;
 3. Poblaciones or central districts not included in (1) and (2) regardless of the population size which
following:
 o Street pattern or network of streets in either parallel or right angel orientation;
 o At least six establishments (commercial, manufacturing, recreational and/or personal services);
concepts and definitions, coverage and
classification system.
 At least three of the following: o A town hall, church or chapel with religious service at
least once a month;
 o A public plaza, park or cemetery;
 o A market place, or building, where trading activities are carried on at least;
 o A public building, like a school, hospital, puericulture and health center or library.

 Barangays having at least 1,000 inhabitants, which meet the conditions, set forth in (3)
above and where the occupation of the inhabitants is predominantly non-farming or
fishing.
 Rural Areas - All poblaciones or central districts and all barrios that do not meet the
requirements for classification of urban.
Food commodities covered in the survey:

 1. Rice (plain) refers to cooked rice converted in original raw form. Rice consumed includes the
quantity of leftover rice which were wasted/spoiled and fed to animals/pets. Rice purposely
cooked for pets and other animals raised by the household are excluded.

 2. Corn includes corn in cob, corn grits and shelled corn. Corn in cob includes raw, boiled or
roasted. Popcorn, cornick, fried corn and “binatog” fall under shelled corn. Corn in cob and corn
grits were converted into shelled equivalent.

 3. Vegetables, legumes, condiments and root crops are those acquired fresh. They may be
eaten/consumed fresh or cooked. Likewise, fruits are consumed fresh or ripe. Green or unripe
papaya and jackfruit are considered as vegetables.
Food commodities covered in the survey:

 4. Meat are those acquired fresh and cooked/prepared in the household. Cooked meat took
home from outside (bought or free) like fried, boiled or roasted and consumed in the
household are also included. Processed meat e.g., tapa, tocino, longaniza, and similar
products are included only if they are prepared at home.
 5. Egg refers to table (fresh) egg coming from chicken.

 6. Fish such as milkfish, tilapia and galunggong are in fresh form.

 7. Noodles includes bihon, pasta, canton, fresh miki, instant noodles while bread covers only
pandesal, refer to food items that have undergone some processing.
SURVEY RESULTS

 At the national level, the average per capita consumption of rice was 119.08 kilograms per year. Across
regions, the annual per capita consumption of rice was highest in ARMM at 144.66 kilograms.
SOCCSKSARGEN ranked next with 136.50 kilograms. On the other hand, the least consumption was
observed in Central Visayas at 95.21 kilograms.

 ♦ The annual per capita consumption of corn was 7.07 kilograms at the national level. Estimates were
higher at 37.08 kilograms for Central Visayas, 33.96 kilograms for Northern Mindanao and 32.55
kilograms for Zamboanga Peninsula. On the contrary, less than 1.00 kilogram of corn was consumed by
each person every year in NCR, Ilocos Region, Central Luzon, CALABARZON, MIMAROPA, and ARMM.

 ♦ The highest annual per capital consumption of camote among the regions was noted in Northern
Mindanao at 9.00 kilograms. In NCR, it was estimated at only 0.73 kilogram annually. Countrywide, the
annual per capita consumption stood at 4.06 kilograms.
 SURVEY RESULTS
 ♦ Across regions, Cagayan Valley had the highest annual per capita consumption of eggplant at 5.93
kilograms while in Central Luzon consumption of tomato averaged 4.58 kilograms per year. These regions
also recorded the highest yearly per capita consumption of ampalaya at 3.54 kilograms each. The
national level estimates were 4.21 kilograms for eggplant, 2.60 kilograms for tomato and 2.55 kilograms
for ampalaya.

 ♦ For banana, Northern Mindanao posted the biggest annual per capita consumption at 28.44 kilograms.
It was least in Ilocos Region at 10.35 kilograms. At the national level, per capita consumption was 16.69
kilograms per year.

 ♦ The highest estimates of average annual per capita consumption of pork and chicken were reported in
CALABARZON and NCR at 11.65 kilograms each. Lowest records were observed in ARMM for pork at 0.57
kilogram and in Central Visayas for chicken at 4.37 kilograms. The country level estimates were 9.15
kilograms for pork and 7.90 kilograms for chicken.
SURVEY RESULTS
 Roundscad was consumed more compared to other fishery products. In Eastern Visayas, the yearly
per capita consumption averaged 8.06 kilograms. CAR reported the least per capita consumption at
2.44 kilograms. The national level estimates was 5.36 kilograms.

 ♦ Average annual per capita consumption of instant noodles ranged from 1.82 kilograms in
Zamboanga Peninsula to 4.11 kilograms in Ilocos Region. At the national level, it was 2.86
kilograms.

 ♦ On the average, per capita consumption of pandesal was highest in NCR and CALABARZON at 6.03
kilograms each per year. It was least in MIMAROPA at 1.61 kilograms annually. The average for the
country was 4.16 kilograms.

 Across socio-economic classes, Class AB households of SOCCSKSARGEN had the biggest per capita
consumption of rice at 162.66 kilograms annually. Class E households of Zamboanga Peninsula
recorded the lowest at 87.98 kilograms per year.
SURVEY RESULTS

 Class E households of Northern Mindanao had the highest annual per capita consumption of corn at
51.06 kilograms. It was lowest among Class E households in NCR and Class AB households in MIMAROPA,
Eastern Visayas and ARMM at less than 0.001 kilogram per person per year.
 ♦ Class E households in Caraga had annual per capita consumption of camote at 10.04 kilograms. Class
AB households in NCR consumed less camote with annual consumption of 0.31 per person per year.

 ♦ Class AB households recorded higher annual per capita consumption of vegetables; eggplant at
10.71 kilograms in Zamboanga Peninsula; ampalaya at 8.74 kilograms in SOCCSKSARGEN, and tomato
at 9.26 kilograms in CARAGA.

 ♦ Higher per capita consumption of banana was noted among Classes AB and C households in all
regions in Zamboanga Peninsula, Class AB’s annual per capita consumption reached as high as 53.46
kilograms and Class C households at 37.34 kilograms. Least consumption was noted in Ilocos Region at
4.68 kilograms per person per year.
 SURVEY RESULTS

 ♦ Class AB households in most regions reported higher consumption of pork and chicken. In Cagayan Valley,
annual per capita consumption of pork was highest at 26.05 kilograms. For chicken, biggest consumption was
reflected by the most affluent class (AB) of households in NCR at 21.48 kilograms. The least per capita
consumption of pork at 0.47 kilogram was noted among Class E households in ARMM. For chicken, Class E
households in Eastern Visayas had the least per capita consumption of 2.44 kilograms per year.

 ♦ In the case of roundscad, Class AB households in Zamboanga Peninsula and ARMM had per capita consumption a
year of more than 12.00 kilograms. The lowest was observed in Class E households in CAR at 1.14 kilograms.
 Class AB households of Ilocos Region had the biggest per capita consumption of instant noodles at 5.30 kilograms
annually. In Central Visayas and Northern Mindanao, however, households from the same socio-economic class
posted the least per capita consumption at 1.04 kilograms per annum. The same regional average consumption
was exhibited by Class E households in Zamboanga Peninsula.

 ♦ For pandesal, Class AB households in Caraga and ARMM reported the biggest annual per capita consumption
averaging 9.36 and 9.05 kilograms, respectively. In Caraga, Class E households had per capita consumption of
0.88 kilogram annually. The same level of consumption was reported among Class AB in Davao Region.
 SURVEY RESULTS
 By classification of barangays, urban and rural areas in ARMM recorded the biggest yearly per capita
consumption of rice at 149.50 kilograms and 142.64 kilograms, respectively. Rural households in Lanao del
Norte exhibited even higher consumption of rice at 182.99 kilograms per year. It was least in Central
Visayas at 95.21 kilograms. This was true also in Cebu, particularly in rural barangays where average
consumption was only 73.27 kilograms per annum.

 ♦ Rural barangays in all regions, excluding CAR, registered higher consumption of corn than in urban areas.
Leading corn consumers where noted in the rural areas of Central Visayas at 46.59 kilograms per person
per year. Across provinces, rural barangays in Cebu posted the highest per capita consumption of corn at
66.35 kilograms annually.

 ♦ Regionwide, camote registered the highest per capita consumption among the rootcrops covered in the
survey. Rural barangays in Northern Mindanao ranked first in terms of per capita consumption at 10.56
kilograms a year. Bigger per capita consumption was reflected in the rural barangays in Lanao del Norte
with an average of 27.87 kilograms annually. The least consumption was noted in NCR District lll at 0.10
kilogram.
SURVEY RESULTS
 ♦ Eggplant consumption was highest in Cagayan Valley, particularly, in the rural areas at 6.03 kilograms per
person a year. For tomato, it was highest in Central Luzon with an average per capita consumption of 4.63
kilograms. These regions also recorded the highest yearly per capita consumption of ampalaya at more than
3.00 kilograms each. Rural barangays in Aurora recorded the highest yearly per capita consumption of
eggplant at 9.10 kilograms. Nueva Viscaya was highest for tomato at 8.06 kilograms while it was Tarlac for
ampalaya at 4.73 kilograms.

 ♦ The rural barangays in Northern Mindanao posted the highest per capita consumption of banana at 32.50
kilograms a year. Urban barangays in Ilocos Region had the least per capita consumption of this fruit at 7.96
kilograms. Rural barangays in Misamis Oriental had per capita consumption of 50.60 kilograms annually. The
lowest consumption of banana was registered in urban barangays in Pangasinan at 6.66 kilograms.

 ♦ Pork and chicken were the most preferred meat products across the country. Urban barangays in
CALABARZON and NCR had the highest average annual per capita consumption of pork and chicken estimated
at 12.74 kilograms and 11.65 kilograms, respectively. Higher per capita consumption of pork was noted in
urban barangays of Batangas at 17.73 kilograms a year. Consumption of pork was significantly lower for both
urban and rural dwellers in ARMM, specifically rural households in Basilan, Lanao del Norte and Tawi-Tawi at
0.05 kilogram each a year. For chicken meat, the lowest consumption was reported in rural barangays of
Bohol at 3.02 kilograms per person per year.
SURVEY RESULTS
 ♦ Across regions, roundscad was consumed more in urban areas in Eastern Visayas compared to other
fishery products. This was true in Biliran where yearly per capita consumption averaged 28.55
kilograms. In CAR, urban households, particularly, in Ifugao consumed roundscad at 0.47 kilogram per
person each year.

 ♦ The annual per capita consumption of instant noodles in urban areas ranged from 2.60 kilograms in
Zamboanga Peninsula to 4.16 kilograms in Ilocos region. In Zamboanga del Sur and La Union,
estimates were placed at 1.14 kilograms and 9.15 kilograms per person per year.

 ♦ Households in urban areas were the biggest consumer of pandesal, particularly, in CALABARZON
where per capita consumption was recorded at 7.64 kilograms annually. By province, urban barangays
in Cavite registered even higher consumption of this product at 8.94 kilograms. The least
consumption was registered in rural barangays in Marinduque at 0.88 kilogram.
Agricultural Indicators System
(IAS)
PRICES AND MARKETING OF
AGRICULTURAL COMMODITIES

PHILIPPINE STATISTICS AUTHORITY

Marketed Volume of Palay and Corn
 The “marketed volume of farmers’ produce” is an indicator that provides a measure of the
farmers’ level of operation on the quantity of the agricultural production that is sold by the
farmers for a given period.
 The proportion of total marketed volume of palay to total palay production slightly increased to
61.21 percent in 2016 from the 60.02 percent record in 2015.
 Among regions, the biggest proportions of marketed palay were recorded in ARMM at 76.89
percent and Cagayan Valley at 76.08 percent.
 The proportion of volume of corn sold to the country’s total harvests went up from 82.03 percent
in 2015 to 86.57 percent in 2016.
 Ilocos Region showed the biggest proportion of marketed corn at 99.98 percent.
Government Procurement and Injection of Palay
Procurement
refers to the volume of government purchases directly from the farmers and farmers’ organizations at
support price. This is being done to stabilize consumer price and to have continuous supply of the
commodity.
 The volume of palay procurement decreased to 118,257 metric tons in 2016 by 48 percent from the
2015 level of 227,935 metric tons.
 The biggest volume of palay procurement was reported in MIMAROPA at 57,451 metric tons
Injection
is the distribution by the government in the market through direct selling to end-user or to accredited
outlets. The indicators of government procurement and injection show the extent of government
intervention in palay marketing.
 The volume of rice injection in 2016 reached 1,144,220 metric tons or higher by 21 percent from
the 2015 level of 942,656 metric tons.
 The National Capital Region (NCR) had the biggest rice injection at 227,934 metric tons
Producer Price Index (PPI)
 describes the movement of farm prices by commodity and commodity groups in a given year
compared to a base year (2006).
 In 2016, the average PPI for agriculture increased to 149.8 percent. This indicates that the
average farm price in 2016 was 49.8 percentage points higher than the base year level.
 Among the commodity groups, PPI for fruits continued to be the highest at 195.2 percent in
2016. Banana bungulan green garnered the biggest and increasing PPI at 303.3 percent.
Consumer Price Index (CPI)

 presents comparison of the changes in the average retail prices of the different groups of the
commodities commonly consumed by the households.
 From 2012 to 2016, the CPI for all items continued its uptrend from 130.1 percent to 144.0
percent.

Price Gap
 The price gaps or mark ups of the different crops between the farmgate and the wholesale and
retail levels indicate the formation of prices and the shares of market participants in the prices
paid by the consumers.
 In 2016, the farm-wholesale price gap of rice slowed down to 143 percent.This indicates that the
price mark-up of rice from farm to wholesale level was 143 percent of the farm price.
Producer’s Share in Consumer Peso
 This indicator presents the proportion of the prices received by the farmers to the final price of the
commodity. It gives a measure of the share of the producers compared to the share of the traders.
It also indicates which commodity gives the farmer, the bigger share.
 The share of rice producer in 2016 was maintained at 38 percent of the commodity’s retail price.
 Coconut producer’s share went up to 35 percent in 2016.
Role of Farmers as an Entrepreneur
 farmers should be recognised as central players in agricultural transformation. It argues, contrary to
popular perceptions, that farmers are not just users of technologies developed elsewhere but they
perform entrepreneurial functions that involve the transformation of knowledge into goods and
services.
 Carter 1998 & et.al states that , farmers have traditionally been entrepreneurial,
 Carter and Rosa (1998), argue that farmers are primarily business owner- managers and that farms can
be characterised as businesses.
 Gray’s definition of entrepreneur, which is most appropriate and relevant to the farm sector.
‘….individuals who manage a business with the intention of expanding that business and with the
leadership and managerial capabilities for achieving their goals’ (2002.61)
Schiebel (2002) showed that successful farmers differ from others in terms of three personality traits.
They have more:
1. belief in their ability to control events;
2. problem-solving abilities;
3. social initiative (expressed through dominance, liveliness and social skills boldness).
References

1. PHILIPPINE STATISTICS AUTHORITY

URL: http://psa.gov.ph
Department of Agriculture

2. BUREAU OF AGRICULTURAL STATISTICS

info@bas.gov.ph
URL: http://bas.gov.ph

3. https://www.g-fras.org/en/agripreneurship/resources.html?download=470:the-
enterprising-farmer-a-review-of-entrepr