Agribusiness in the Philippines

AGRIBUSINESS IN THE PHILIPPINES

Globalization

Is a term used to describe the changes in societies and the world economy that are the result of dramatically increased trade and cultural exchange. In specifically economic contexts, it refers almost exclusively to the effects of trade, particularly trade liberalization or “free trade”.

“Globalization” can mean:

The formation of a global village – closer contact between different parts of the world, with increasing possibilities of personal exchange, mutual understanding and friendship between “ world citizens”.

Economic globalization – “ free trade” and increasing relations among members of an industry in different parts of the world.

Advantages

Peaceful Relations

Most of the countries have resorted to trade relations with each other in order to boost their economy. Employment

Considered as one of the most crucial advantages, globalization has led to the generation of numerous employment opportunities. Companies are moving towards the developing countries to acquire labor force.

Advantages

Communication

Every single information is easily accessible from almost every corner of the world. Circulation of informations is no longer a tedious task, and can happen in seconds. The Internet has significantly affected the global economy, thereby providing direct access to information and products. Transportation

Considered as the wheel of every business organization, connectivity to various parts of the world is no more a serious problem.

Advantages

GDP Increase

Gross Domestic Product, commonly known as GDP, is the money value of the final goods and services produced within the domestic territory of the country during an accounting year. Free Trade

Free trade is a policy in which a country does not levy taxes, duties, subsidies or quota on the import/export of goods or services from other countries. This allows consumers to buy goods and services, comparatively at a lower cost.

Globalization in the Philippines

The country is taking part in the process of globalization ever since the country signed agreements with World Trade Organization in 1995.

Now, globalization is very effective in the Philippines, it has allowed major changes in the nation like more labor, and more Filipino and foreign companies has emerged in the nation in order to help the country’s developing economy.

Updates in Agribusiness in the Philippines

Agricultural Product Rice

The 8th largest rice producer in the world, accounting for 2.8% of global rice production.

The world’s largest rice importer in 2010, nearly 15.7 million metric tons of palay (pre-husked rice) were produced in 2010, palay accounted for 21.86% percent of gross value added in agriculture and 2.37% of GNP.

Updates in Agribusiness in the Philippines

SugarRaw sugar produced in a mill in the country.There are atleast 19 provinces and 11 regions that

produce sugarcane in the Philippines. A range from 360,000 to 390,000 hectares are devoted to sugarcane production.

Updates in Agribusiness in the Philippines

CoconutPlays important role in the national economy of the

Philippines.World’s largest producer of coconuts, producing

19,500,000 tons in 200 production in the Philippines.3.5 million hectares dedicated to coconut production in

the Philippines, which accounts 25% of total agricultural land in the country.

Updates in Agribusiness in the Philippines

Fruits The Philippines is the world’s largest producer of pineapples,

producing 2,198 thousand metric tons in 2009. The Philippines was in the top three banana producing countries

in 2010, including India and China. Mangoes are the third most important fruit crop of the country

based on export volume and value next to bananas and pineapples.

Updates in Agribusiness in the Philippines

CornCorn is the second most important crop in the

Philippines. 600,000 farm households are employed in different businesses in the corn value chain.

Around 2.594 Million ha. Of land is under corn cultivation and the total production is 7.408 million metric ton.

Updates in Agribusiness in the Philippines

Rubber

There are an estimated 38,000 families dependent upon the cultivation of rubber trees.

Updates in Agribusiness in the Philippines

The Philippine livestock, feed milling and meat industries remains positive.

The livestock and poultry sub-sectors out-performed the overall Philippine Agricultural market in terms of production Value, registering increase of 1.75% and 4.20% respectively.

Livestock accounts for 16.2% while poultry follows at 14.8% of total agricultural production. Fisheries sub-sector contributes 18.0% of total agricultural output.

Updates in Agribusiness in the Philippines

Livestock Sector Pork production growth to 2016-2017 to increase 13.3% to 1.5

million tons. Growth will be driven by an increase in commercial farming, as

well as rising domestic consumption. Transform the local livestock industry from a resource-based to

technology-based industry. Enhance the market competitiveness of the local livestock and

poultry sub-sector.

Updates in Agribusiness in the Philippines

Livestock Sector The country’s meat consumption is predicted to reach three

million tons in 2015. The Philippines continues to explore possibilities of

expanding the expanding the exportation of processed meat and meat products to the United Arab Emirates, Brunei, Indonesia and Malaysia, all which require Halal Certification.