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ANALYSIS OF AGRICULTURAL MARKETS

PRESENTED BY: Noralyn De Guzman Zadelyn Francisco Harlene Ferrer Hazel Paasa Ma. Steely Ann Raga

OVERVIEW
Agriculture plays a significant role in the Philippine economy. Roughly 70% of the countrys population is in the rural areas and agriculture contributes about 12% to the countrys GDP.

Almost 5 million farmers cultivate 9.7 million hectares, or about 30 per cent of the total land area of the country. Coconut, rice, maize and sugarcane are the top four crops cultivated.

Coconut was traditionally the major export earner, but with depressed prices for copra and other coconut products, production has decreased, particularly as trees have not been replaced. Banana, coconut oil, tuna, pineapple, tobacco and seaweed are the top exports. High quality robusta and excelsa coffees are produced in the country but very little is exported.

Agricultural Production: rice, corn, livestock, & poultry Major Philippines Agricultural Exports: wood products, coconut oil and other coconut products, bananas and plantains, milk and cream powder, fish and seafood
Major U.S. Agricultural Exports to the Philippines: grains, wheat, soybean meal, dairy products, red meats, rice

PERFORMANCE OF PHILIPPINE AGRICULTURE


AGRICULTURE
2.34

2.5 2 PERCENT 1.5 1 0.5 0 -0.5 2010


-0.28

2011

Agriculture grew by 2.34 percent in 2011. Production in the crops, livestock and poultry subsectors expanded by 4.15 percent. However, fisheries production declined by 4.07 percent. Agriculture grossed P1.4 trillion at current prices, representing an 11.52 percent increase from last years record.

CROPS
4.82

5 4 3 PERCENT

2
1 0 -1 -2 -3 2010 2011
-2.65

The crops subsector registered a 4.82 percent increase in production this year. It contributed 49.62 percent to total agricultural output. Production of palay and corn grew by 5.78 percent and 9.32 percent, respectively. Sugarcane production went up significantly by 58.27 percent. Higher output increases were noted for mongo at 21.80 percent, tobacco, at 10.93 percent and rubber, at 7.70 percent. Gross value of crop production amounted to P804.0 billion at current prices or 19.45 percent more than the year ago level.

According to the Department of Agriculture, the use of quality seeds, rehabilitation of irrigation facilities, improved fertilization, a reduction in pests and diseases, favorable weather conditions, increases in area harvested, and higher prices all contributed to the increases.

LIVESTOCK AND POULTRY


4.34 3.80

4.5 4 3.5 3 Percent

2.5
2 1.5 1 0.5

1.47

1.99

2010

2011

2010

2011

The livestock subsector which produced 15.97 percent of total agricultural output came up with 1.99 percent more output this year. Hog production went up by 2.22 percent. Cattle and dairy outputs increased by 1.79 percent and 3.72 percent, respectively. The subsector grossed P212.9 billion at current prices. This was 1.14 percent higher than last years record.

The poultry subsector grew by 4.34 percent. It accounted for 13.71 percent of total agricultural output. Production increases were noted for chicken at 4.52 percent and chicken eggs at 4.16 percent. The gross value of output amounted to P158.8 billion at current prices, up by 4.83 percent in 2011.

FISHERIES
1.45

2
1 0 Percent -1 -2 -3 -4
-4.07

-5
2010 2011

The fisheries subsector with 20.70 percent contribution to total agriculture posted a 4.07 percent drop in output during the year. While production in aquaculture grew by 2.44 percent, that of commercial and municipal fisheries decreased. The subsector grossed P225.1 billion at current prices or 1.85 percent higher than the 2010 level.

IMPORT PROCEDURES
STEP 1
Only accredited and/or registered individuals or businesses may import food products into the Philippines. Importers must obtain accreditation from relevant Philippine regulatory bodies.

STEP 2

Determine whether food or agriculture products can enter the Philippines. Only acceptable countries as determined by the relevant regulatory body may export food and agriculture products to the Philippines.

STEP 3

In the case of meat and poultry, imports can only be made from foreign meat establishments (i.e. abattoirs/slaughterhouses), which are accredited by the Department of Agriculture. All U.S. federally inspected and approved meat establishments located in the United States are eligible to export to the Philippines.

STEP 4

Import licenses/permits must be obtained from the relevant regulatory body for the goods to be imported to the Philippines before the products are shipped from the exporting countries.

STEP 5

All agricultural and food products entering the Philippines must be accompanied by a phytosanitary or health certificate issued by the regulatory body in the exporting country. This is required to be submitted for inspection along with the import permit to facilitate physical inspection of the goods and customs clearance at the port of entry.

REQUIREMENTS AND STANDARDS FOR FOOD AND AGRICULTURAL IMPORTS INTO PHILIPPINES
CERTIFICATION/OTHER REQUIREMENTS: License to Operate (LTO) Certification of Product Registration Certificate of Free Sale International Health Certificate for Fishery/Aquatic Products Veterinary Quarantine Clearance (VQC) certificate

Quarantine Clearance/Import Licenses


Phyto-Sanitary/Health Certificate (issued by the regulatory body in the country of origin

LABELING REQUIREMENTS Product Specific Labeling Requirements: Name of product List of ingredients used in product (in decreasing order of proportion), including additives, flavorings, and preservatives used Net content Name and address of manufacturer/packer or distributor, including country of origin for imported products and name and address of Philippine importer/distributor

Lot identification

IMPORT REQULATIONS
All imported food and agricultural products are required to comply with the Philippines food health and phytosanitary laws. In general, none of these products is allowed to enter the Philippines if it is deemed to pose a danger to human life or well-being, either directly or indirectly.
All food and agricultural products, including plant products that enter the Philippines, are required to pass through procedures designed to check that they are not contaminated with any pest and that they are fit for their intended use.

The health and phytosanitary regulations and procedures applied on imported agriculture and food products are broadly similar for all types of products. Under Philippine import laws, it is the responsibility of the importer to ensure that any product entering the countrys customs territory is in full compliance with Philippine health and phytosanitary regulations. The enforcing authorities will check for compliance by inspecting the goods and relevant import/export documentation and decide on whether the goods may enter the Philippines.

In cases of non-compliance, the goods may be required to be treated before being released or they may be rejected and ordered destroyed or disposed of outside the Philippines. It is therefore very important that importers and exporters ensure that compliance is achieved before the goods are shipped to the Philippines.