Posted in July 2009.
The agricultural sector in the Philippines is known for low productivity, as it employs about 36 percent of the labor force but accounts for only 14.8 percent of gross domestic product (GDP). From 1991 to 2002, both the total number of farms and the total area of farmland decreased, respectively, from 4.6 million to 4.5 million farms and from 9.9 million hectares to 9.2 million hectares of farmland. The average size of each farm decreased from 2.2 hectares to 2.0 hectares.
In the first three quarters of 2005, crops accounted for 46.4 percent of the value of all agricultural production, livestock and poultry for 28.8 percent, and fishing for 24.9 percent. Overall agricultural production rose 1.7 percent over the same period in 2004. In order of value, major agricultural products were rice, poultry, livestock, corn, bananas, and coconuts. The national diet consists mainly of rice, fish, and vegetables, with occasional chicken and pork.
Forestry accounts for less than 1 percent of the total labor force and a minuscule share of all agricultural production, but at 72,000 square kilometers, it accounts for about 45 percent of all agricultural lands and about 25 percent of the total national land area. Once a major industry and the leading earner of foreign exchange in the 1960s, forestry has declined sharply in importance as a result of rapid deforestation. From a position as the world’s leading exporter of tropical hardwoods in the 1970s, the Philippines became a net importer of forest products by the 1990s. In 1990 the Department of Environment and Natural Resources announced a 25-year plan for the sustainable development of the nation’s forests. The Congress of the Philippines is considering a
nationwide ban on logging; such bans already have been introduced in several provinces.
Fishing consists of municipal fishing, which uses no boats at all, rafts, or boats less than three tons; commercial fishing, which uses boats of three tons or more; and aquaculture farms. In 2004 municipal fishing accounted for about 34 percent of the value of all fishing production, 31 percent of the volume, and 85 percent of the fishing labor force. Commercial fishing accounted for 36 percent of the value, 32 percent of the volume, but only 1 percent of the fishing labor force. Aquaculture accounted for 30 percent of the value, 37 percent of the volume, and 14 percent of the fishing labor force.
The production of consumer goods dominates the manufacturing sector. The leading industries are processed foods, followed by electrical machinery (mainly semiconductors), petroleum products, coal, chemical products, and garments. Industry accounted for about 32 percent and the manufacturing subsector for 23–24 percent of gross domestic product (GDP) in 2005. The number of persons employed in manufacturing and construction was about 16 percent of the total labor force in 2004.
