Farm Management Notes
Farm Management Notes
Farm Management Notes
CAREER GUIDE:
AGRIBUSINESS1
1
This career guide was written by Roderick Bugador as part of the
project Career Guides for Selected Industries, commissioned by the
Bureau of Local Employment of the Department of Labor and
Employment to the Angelo King Institute of De La Salle University.
1
TABLE OF CONTENTS
Page
EXECUTIVE SUMMARY 3
I. Nature of the Industry 5
A. Overview 5
B. Scope of Agribusiness Sector 6
C. Major Commodities 7
D. Industry Subsectors and Activities 7
a. Regional Distribution/Concentration of Subsectors 8
b. Industry Organization of the Subsectors 9
c. Type of Establishments 9
d. Recent Development and Performance 10
II. Employment 11
A. Number of Employed Workers per Sub-sector by 13
Geographical Location
B. Distribution of Employment 14
C. Type/Account of Employment 15
D. Workers’ Gender Characteristics by Region 16
E. Terms of Employment 18
III. Industry Occupations 19
A. Working Conditions 19
a. Working Environment 20
b. Occupational Injuries/Hazards 21
B. Average Earnings of Occupations 22
a. Primary Agriculture Earnings 22
b. Agricultural Manufacturing/Processing and Support 23
Earnings
C. Training and Advancement 23
a. Internal and External Training Program 23
b. Education and Training Providers 25
c. Basic Educational/Training/Skill Requirements 25
d. Professional Licensure Requirements 26
D. Specific Industry Occupations 26
a. Primary Agriculture 26
b. Agricultural Manufacturing/Processing Occupations 30
c. Agri-Entrepreneurial and Support Occupations 32
IV. In-Demand and Hard-to-Fill Occupations in the Sub- 34
Sectors
V. Job Outlook and Prospects 35
A. Industry Outlook 35
B. Employment Prospects 37
VI. References 39
2
EXECUTIVE SUMMARY
2
Agriculture Facts and Figures 2010
5
The wide variety of products produced from this sector
helps nourish even the most remote communities in the
country. Recently though, trends in the shifting of global
production networks have affected the performance of
Philippine agriculture. For example, the booming
electronics and services industry has shifted the overall
production of the Philippines from highly agricultural to
becoming industrial. It is a challenge for the Philippine
government and its related institutions to revive the
agriculture industry and continue to respond to the need
of many local communities. At present, the Philippine
government, through the Department of Agriculture
(DA) and related bureaus, pushes for the
implementation of many programs including the “Farm
to Plate” strategy for the Agribusiness sector thereby
broadening its scope and services to all the consumers.
The overarching agenda is about food security which
entails meeting the food requirements of the present
and future generations of Filipinos in substantial
quantity, ensuring the availability and affordability of
food to all, at all times.
6
C. Major Commodities. The lush tropical vegetation of
the Philippines offers variety of crops and fruits
produced and processed by the Agribusiness sector.
Palay or rice is the most widely produced in almost all
regions, especially in Luzon. This is followed by
sugarcane in Visayas, and corn, coconut, and coffee in
Mindanao. Fruits for exports such as pineapple and
banana are heavily produced in Mindanao while mango
is the primary output from Luzon. In the animal
production subsector, hog/pork occupies the largest
volume of production followed by cattle/beef, carabao,
goat and dairy. For poultry, chicken being common
followed by duck, and egg products. Most of these
livestock produce come from the Luzon. The Fishery
subsector produces heavily through Aquaculture by its
operation in fish ponds/cages/pens that produces
bangus, tilapia, prawns and other types of seafood (i.e.
oyster, mussel) and seaweed. The rest of the Fishery
subsector generates other species of fish including
Tuna (best known for export), coming from municipal
and commercial fishing in Mindanao. Lastly, the
Forestry subsector primarily produces logs, followed by
lumber, plywood and other types of veneer. These
agricultural produce are the main source of the activity
in the sector through its value-adding processes. The
direct outputs of these processes are food products
ready for consumption or numerous materials for
different utilization.
3
Bureau of Agricultural Statistics (BAS), 2009
7
commercial fishing, fish cage/pen operations and
seafood production. Animal production comes third
capturing 21% (11% livestock; 10% poultry), which
activities range from small farming to large ranches that
raise animals for sale or for animal products. Lastly,
Forestry, Logging, and Agri-support services share the
remaining activities of the industry.
a. Regional Distribution/Concentration of
Subsectors.4
Figure 1. Production in
Agriculture
ARMM
BICOL REGION
CAGAYAN VALLEY
4
Selected Statistics in Agriculture, BAS, 2010
8
subsectors, quite lower compared to Luzon.
Lastly, the Visayas region is contributing an
average of 17.11% in its overall production; this
is the lowest among the three main regional
groups. Higher production is Livestock, coming
from the Western and Central Visayas regions.
II. EMPLOYMENT
5
Source: Department of Agriculture (2009)
11
employment went down to 34.3%. The shares
contracted by an average of 1.4% annually.
Region % Region %
employed employed
in in
agriculture agriculture
Philippines 34.3 Western Visayas 40.1
NCR 0.7 Central Visayas 32.0
CAR 54.1 Eastern Visayas 45.5
Ilocos Region 39.2 Zamboanga 51.4
Peninsula
Cagayan 59.3 Northern 43.7
Valley Mindanao
Central Luzon 22.1 Davao Region 41.2
CALABARZO 17.7 SOCCSKSARGE 52.1
N N
MIMAROPA 51.3 Caraga 42.0
Bicol Region 43.1 ARMM 71.7
Table 1. Proportion of employed persons in
agriculture by region. Source: Agricultural
6
Agricultural Indicators System (AIS) Report, BAS, 2009.
13
Indicators System (2010), Bureau of Agricultural
Statistics.
14
Figure 3. Employment in
Agriculture
Crops
Animal Farming
Fishery
C. Type/Account of Employment.
15
Corporation
Own-account Workers 50.6 49.6 48.8
Self-Employed 42.9 42.2 41.6
Employer 7.7 7.4 7.2
Unpaid Family Workers 25.0 25.0 25.4
Table 2. Proportion of employed persons by
class of workers. Source: Agricultural
Indicators System (2010), Bureau of
Agricultural Statistics.
# employed # employed
Region Region
Male Female Male Female
Philippines 8,965 3,078 Western Visayas 861 294
NCR 28 3 Central Visayas 578 278
CAR 231 136 Eastern Visayas 594 162
Ilocos Region 569 165 Zamboanga 496 200
16
Peninsula
Cagayan 588 244 Northern 540 261
Valley Mindanao
Central Luzon 650 145 Davao Region 533 170
CALABARZON 600 163 SOCCSKSARGEN 628 208
MIMAROPA 449 170 Caraga 305 105
Bicol Region 689 186 ARMM 627 187
Table 3. Number of employed males and
females in agriculture in 2009 (in thousands).
Source: Agricultural Indicators System (2010),
Bureau of Agricultural Statistics.
% employed % employed
Region Region
Male Female Male Female
17
Philippines 41.9 22.5 Western Visayas 49.3 25.8
NCR 1.2 0.2 Central Visayas 37.4 24.7
CAR 57.5 49.1 Eastern Visayas 57.2 26.0
Ilocos Region 47.2 24.8 Zamboanga 57.9 39.8
Peninsula
Cagayan 65.3 48.5 Northern 50.0 34.8
Valley Mindanao
Central Luzon 28.9 10.8 Davao Region 48.9 27.6
CALABARZON 24.0 9.1 SOCCSKSARGEN 61.2 35.9
MIMAROPA 62.3 36.4 Caraga 49.5 29.1
Bicol Region 54.0 24.7 ARMM 77.4 57.5
Table 4. Proportion of employed males and
females in agriculture to total male and female
employment respectively, in 2009. Source:
Agricultural Indicators System (2010), Bureau
of Agricultural Statistics.
7
Occupational Injuries Survey, BLES, 1996.
21
(it became lesser recently). It varies from disabling
to non-disabling, caused by common injuries e.g.
cuts, lacerations, punctures, avulsions,
hematoma, abrasions, burns, etc.). With higher
possibility of getting injuries, extra care and control
is necessary to avoid them.
8
DOLE-National Wages and Productivity Commission, 2011.
22
Average Average Daily Earnings in
Daily 2011
Region
Earnings in Non-
Plantation
2009 Plantation
NCR - 389 389
CAR - 235 235
Ilocos 154.74 228 200
Central Luzon 170.26 233 213
CALABARZON 157.45 312 292
Central Visayas 95.21 235 240
Bicol - 225 205
Western Visayas 233 223
Eastern Visayas 101.37 215 198
CARAGA 122.17 235 235
Northern
118.6 226.5 220
Mindanao
Central
- 225 220
Mindanao
c. Basic Educational/Training/Skill
Requirements. The basic requirement for working
in the Agribusiness sector is a degree mostly
earned in HEIS or Tertiary educational institutions.
Some degrees/skills can also be earned from
vocational schools in the country, which may serve
as the foundation for higher degrees. These degree
courses belong to the “Agriculture, Forestry and
Natural Resources (AFNR) courses”. These are
offered from two (2) to five (5) year of full time
study in the undergraduate level. Some courses
with specialization are expected to train themselves
further after completing the initial undergraduate
course (see list below).
• Agriculture • Entomology
• Agricultural , Pest
Engineering Manageme
• Agribusiness, nt, Plant
Agribusiness Pathology
25
Management • Entreprene
• Agri-Biotechnology urial
• Agricultural Technology
Technology • Environmen
• Agricultural tal Science
Education, Rural and Natural
Sociology, Resource
Community Manageme
Development nt,
• Agricultural Landscape
Economics Architecture
• Agro-Forestry, • Fisheries,
Forestry, Forest Fishery
Ranger Technology
• Agricultural • Food
Extension Technology
• Agricultural/Develop • Marine
ment Biology
Communication • Plant
• Agricultural Breeding
Chemistry • Rubber
• Poultry-Animal Production
Husbandry, Dairy-
Animal Science
Table 2. List of Undergraduate Courses
Required in the Industry
9
Based on DOLE minimum wage rates and DBM Salary grade for entry and
middle level government employees
28
company while an
eligibility is required in
Government offices
Salary ranges from
PhP7,000 to PhP15,000
per month
Knowledgeable in the
Agricultural Engineer, theory and practice of
Entomologists, agricultural production,
Veterinarian machinery/animal care
and medication
Four (4) to six (6) years
of degree course in
tertiary level education
Professional license
required
Work is non-routinary
and done in rural or
urban settings
Working hours do not
follow 8-hour/day
Trainings are from
external providers
Tenure requires 6-12
months in a private
company while an
eligibility is required in
Government offices
Salary ranges from
PhP17,000 to
PhP25,000 per month
Farm Supervisors Knowledgeable in the
and Managers overall operations of a
farm coupled with 5-10
years of experience
Degree or Professional
license can be required
Work is non-routinary
and done in rural or
urban settings
Working hours do not
follow 8-hour/day
Trainings are from
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external providers
Tenure requires 6-12
months in a private
company while an
eligibility is required in
Government offices
Salary ranges from
PhP15,000 – PhP35,000
per month depending on
the size of the farm and
employees
b. Agricultural Manufacturing/Processing
Occupations. There are a wide number of
occupations under the service and manufacturing
operations of Agribusiness. The major activity of the
sector is agro-processing, which transforms almost
all farm products or raw agricultural harvest into
consumable goods. The Food and Agriculture
Organization (FAO) considers agro-processing as a
subset of manufacturing that processes raw
materials and intermediate products derived from
the agricultural sector between harvesting and final
use. Agro-processing is one of the major
contributors in the total performance and growth of
the agricultural industry especially on exports and
employment.
32
Basic Skills and
Requirements, Working
Top Occupations Environment, Training and
Advancement, Tenure and
Salary Range
Seed growers, Plant Knowledgeable in
breeders, Greenhouse basic agronomy and
operators farm maintenance
Two (2) years for
Technology courses
and four (4) years for
degree courses in
tertiary level education
Professional license
can be required
Work is often physically
demanding, routinary,
done indoor, and in
rural settings
Working hours do not
follow 8-hour/day
Trainings are from
external providers
Tenure depends on the
contract in a private
company
Income depends on
output/productivity or
profit
Knowledgeable in the
Agri-biotechnologists, theory and practice of
Researchers, agricultural production
Extentionists/ in a specific area of
Community expertise
development workers, Four (4) to five (5)
Economists/Bankers years of Degree course
in Tertiary level
education
Professional license
can be required
Work is non-routinary
and done in rural or
urban settings
33
Working hours may
follow 8-hour/day
Trainings are from
external providers
Tenure requires 6-12
months in a private
company while an
eligibility is required in
Government offices
Salary ranges from
PhP17,000 to
PhP25,000 per month
Knowledgeable in
Traders/Exporters, basic agricultural
Marketer/Advertisers, production or
Sales representatives, economics
Warehouse operators, A Degree can be
Cargo forwarders required
Work is often physically
demanding, non-
routinary, done
outdoor, and in rural
and urban settings
Working hours do not
follow 8-hour/day
Trainings are from
external providers
Tenure depends on the
contract in a private
company
Income depends on
output/productivity or
profit
10
PROJECT JOBSFIT, DOLE, 2010.
34
A recent study by DOLE concluded that there is a need
not only for top occupations in agribusiness but also for
related occupations link to the operations of the
agribusiness system. The increasing entrepreneurial
activities in the countryside, which boosted the number
of small and medium enterprises, also created jobs
especially for primary agricultural occupations. As
regards hard-to-fill occupations, jobs in food processing
are in great demand. Although jobs related to
management of agricultural production and trading are
also on the rise.
In-demand Occupations:
Animal Husbandry Plant Mechanic
Agricultural Economist Rice Tresher Operator-
Aqua-culturist Mechanic
Coconut Farmer Veterinarian
Entomologist (Plant) Pathologist
Farmer (Fruit, Vegetable
and Root Crops)
Hard-to-fill Occupations:
Food Processor/Food Fisherman
Technician Horticulturist
Fishery Technologist
11
Datamonitor, 2010
36
B. Employment Prospects. A significant prospect for
working in the Agribusiness sector is the field of
entrepreneurship. Many students and professionals
alike engage in entrepreneurial activities derived
from the agricultural production. These activities are
usually in the field of processing, buying and selling
and manufacturing. This may not give them
minimum wage or secured monthly income but if
their enterprises are managed well, the income is
way higher than the usual employment contract with
a particular employer. Hence, the role of formal
agricultural entrepreneurship education (diploma
courses or actual 4-year courses) is essential to the
development of the industry. Working in the
agribusiness industry does not limit students to
become farmers, but rather become agricultural
entrepreneurs, agricultural engineers and scientists
and agricultural systems developers.
37
Agribusiness sector is rising at 1% per annum while
jobs (for AFNR graduates) at .07% per annum12.
This indicates that in fact, there is steady demand of
Agribusiness workers.
12
PIDS, Synthesis for the prospects of AFNR graduates/jobs, 2011
38
Selected Sources:
Web Sources
39
Bureau of Agricultural Statistics, http://www.bas.gov.ph/
Datamonitor, 2010.
40