Business

opportunities
in various economic sectors
 The various perspective for business
identification we also identify the business
opportunities in the agricultural, industrial
and services sector.
 EC
agr
ind

S
Agricultu
ral sector
and
agribusin
ess
Agriculture has been defined as the science
and art of cultivating plants and producing
livestock.
❖ In the 1970s 28% of the country's Gross Domestic
Product(GDP) has been contributed by agriculture. After
more than four decades, its share in the economy GDP
has slid down to only 11%.
❖ Also a major source of employment to millions of Filipinos
in the labor force absorbing 32% (2012) of the labor force
downfor ol the 54% recorded in the 1970s.
Aside from producing the staple grains, the
agricultural sector is also the source of raw
materials supplied to the industrial sectors as
well as the product of export products for the
world market.
The sector covers the economic activities
of fishing and forestry.
Table 3.1
Gross Value Added in Agriculture,Fishery,and Forestry
(In million pesos;at current prices)

1960 1970 1980 1990 2000 2005 2010 2012

Proportion to 26% 28% 25% 21% 16% 14% 12% 12%

GDP
Data are as of May 2013.
Source: 2013 Philippine Statistical Yearbook, National Statistical Coordination Board.
 Table 3.2

Employed Persons in Agriculture, Hunting and Forestry

(In million pesos; at current prices)

1960 1970 1980 1990 2001 2005 2010 2011

proportion 61% 54% 51% 45% 34% 32% 29% 29%

to the total
labor force
Source:Philippine Statistical Yearbook, National Statistical Coordination Board.
One of the initiatives is the development of
agribusiness.
❖ For animal production, there are two types that can
be persued: Livestock ( pigs, cows, carabaos, and
goats) and Poultry production which includes
chicken, ducks, and goose.
❖ For Forestry resources the main source of income is
logging.
 In addition, some farm produce can be processed in
cottage industries located near the farm. Pork can be
processed into ham and sausages. Fish can be canned into
sardines. Vegetables can be pickled while fruits can be
sweetened or dried and duck eggs can be salted.
 Swot
analysi
Strengths
s
- Vast tracts of land for agriculture
- Large coastlines and municipal water resources for commercial fishing.
- Competitive edge in the production of commercial crops and tropical fruits.
- Use of modern technology in large scale farm production.
- Competitive edge in niche products from organic farming.
Weakness
- High cost of fertilizers and farm inputs.
- Low productivity of farmers.
- High cost in rice production.
- High cost due to post-harvest wastage.
- Inadequate irrigation facilities.
- Limited extension services.
- Narrow investments in research and development.
Oppotunities
- Shifting demand for organic produce.
- Increasing income of consumers.
- Increasing population.
- Government support in agriculture.
- Changing tastes of consumers.
- Further processing of farm produce.
- Farm implements can be rented or shared.
- ASEAN economic integration.
Threats
- Low cost rice producers in the region.
- Agricultural produce as inputs for biofuel.
- ASEAN economic integration and the liberalization of rice imports.
- Utilization of less productive marginal uplands.
- Rapid population growth.
- Climate change.
- Overfishing
- Conversion of agricultural lands into residential, commercial, and industrial purposes.
 Industrial
sector and
manufacturi
ng industries
Modern economies like Japan,United States,
Germany,and other countries in Europe

The marked expansion of the industrial sector was

observed as their agricultural sector slide in
importance.
Industrial sector composed of
manufacturing, construction, mining,
and utilities
★ Utilities includes electricity,gas and water.
★ The industrial sector is often refered to as the manufacturing
★ The industrial sector can provide employment to the
additional labor force that cannot be absorbed by the
agricultural sector
The industry use varying
technologies
● Capital-intensive technology
● Labor-intensive technology
Classification of manufacturing sector can be made according to the type of
physical plant and processing procedure.

According to the Annual Survey of Philippine Business and

Industry for 2008(ASPBI)(NSO, 2018)manufacturing can
be classified as:

❏ ❏ Cannery
Shop/factory
❏ ❏ Abbattoir
Bakery
❏ ❏ Brewery
Food establishments
❏ ❏ Foundry
Millwork
❏ ❏ Tannery
Distellery
❏ Refinery
 Swot analysis for the
manufacturing industries
Strengths
- Variety of commodities that can be manufactured.
- variety of processes that can be undertaken.
- industries can be scaled into micro, small, medium, and large enterprises
- availability of skilled laborers
- some industries are participants in global production networks
- small enterprises are opening doors to inclusive growth
- availability of raw materials
Weaknesses
- Low productivity in labor-intensive manufacturing
- insufficient investment in equipment and physical capital
- high cost of electricity and power
- poor infrastructure
- limited research and development
- slow adoption of modern techniques of production
Oppotunities
- ASEAN economic integration
- favorable investment climate in the country
- Increasing population.
- Liberalization measures
- Changing tastes of manufactures and niche products
- increasing inflow of foreign investment

Threats
- increasing labor cost
- ASEAN economic integration
- weak demand internationally
- high cost of electricity
- weak infrastructure
- cheap manufactures from China
- migration of skilled workers
 Services
sector
and retail
services
 Services
Products that are consumed when they are produced
 Various modes
of supply
● Cross border transactions
● Consumption abroad
● Commercial presence
● Movement of natural persons
What are the host of
industries that
services covers?
 Agriculture
Primarily for food production and the supply of raw materials
What is the role of services?
How can these various
sectors provide their
financial needs?
Socio