Introduction to Agricultural

Commodity and
Entrepreneurial Development
AgEntrep 313

Prepared by:ABO-ABO, JUN OLIVER LASTIMOSA

SEVANDAL, ROSEWIN LOGRONIO
Course Description:
• This course introduces the nature and kind of
agricultural commodities and how commodities can be
entrepreneurially developed. It will specifically highlight
the types of agricultural commodity and how it is
produced, processed and market

Clientele:
Bachelor of Science in Agriculture – 3rd year
• Major in Crop Science, Animal Science,
Entrepreneurship, Dairy Science and Agricultural
Education
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 Instructor/s:
SEVANDAL, ROSEWIN L.
rosewin.sevandal@ustp.edu.ph
0935-8442-854
Facebook: Wayne Logronio Sevandal
Sections Handled: BSA 3A-AgEd, 3A-Entrep,
3A-CropSci, 3A-DairySci, 3A-AnSci

ABO-ABO, JUN OLIVER L.

junoliver.abo-abo@ustp.edu.ph
0927-589-6969
Facebook: JO Lastimosa Abo-abo
Sections Handled: BSA 3B-AnSci, 3C-AnSci
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Topics Outline:
• Chapter 1 – Introduction to Agricultural Commodity
• Philippine Agriculture Today
• Problems Confronting Philippine Agriculture
• Government Agency and Private Organization in the Agriculture, Food, and Natural
Resources Industry
• State of Philippine Agricultural Commodities
• Entrepreneurial Opportunities in Agriculture
• Chapter 2 – Agricultural Commodity: It’s Kind, Type and Nature
• Why agricultural commodities important?
• What are the types and kinds of agricultural commodities?
• Chapter 3 – Business Environment and Management
• Introduction to Business and Economics
• Fund Sourcing
• Writing Business Plan
• Chapter 4 – Marketing of Agricultural Commodities
• Agribusiness Marketing
• Marketing Mix 4
Introduction to
Agricultural Commodity
CHAPTER 1

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Learning Outcomes:
At the end of the chapter, you will be able to;
1. Discuss the current situation of Philippine Agriculture
2. Identify the problems and challenges confronting
Philippine Agriculture
3. Determine the government agencies and private
organization in Agriculture, Food and Natural Resources
4. Determine the entrepreneurial opportunities in
agriculture.

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The agricultural sector has been one of the most
important components of the economy. The
increasing trend of agricultural production has
brought new challenges in terms of finding
market for surplus and to respond to the
challenges and opportunities, that the global
markets offer today.

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Philippine
Agriculture
Today
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Philippine Agriculture Today

Agriculture posted a 1.2 percent decline in the first

quarter of 2020 with crops and fisheries contributing to
the contraction for the quarter. However, livestock and
poultry both recorded increases in production.
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Philippine Agriculture Today
Crop production, which accounted
for 54.9 percent of the total
agricultural output, decreased by
2.1 percent during the quarter. Palay
and corn production went down by
3.6 percent and 3.4 percent,
respectively.

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Philippine Agriculture Today
Livestock inched up by 0.5 percent in output
this quarter. It shared 17.9 percent to the total
agricultural production. Hog production grew
by 0.7 percent.

Production of poultry was 3.9 percent higher

in the first three (3) months of 2020. It
contributed 14.3 percent to the total
agricultural output. All poultry commodities
posted production increases during the
quarter.
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Philippine Agriculture Today
• Fisheries, which contributed 12.8 percent to
the total agricultural production, dropped
by 5.2 percent during the first quarter of 2020.
Most of the major species recorded lower
production levels.
• At current prices, the value of agricultural
production amounted to PhP 441.2 billion, up
by 3.4 percent from the previous year’s level.

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Problems Confronting
Philippine Agriculture

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8 Problems of The Philippine
Agricultural Sector
The Philippines is currently facing
different problems especially in the
sector of agriculture. These are some
of the problems we think that needs
an urgent solution.

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8 Problems of The Philippine
Agricultural Sector
1. Small farm size
78% farms are less than 3 hectares.
Most of our farms are already shrunk in size
due to the fast growth of our population.
Therefore, our country needs to build more
houses, sacrificing the agricultural sector of our
country.

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8 Problems of The Philippine
Agricultural Sector
2. Land Conversion
Land is being encroached upon by the housing
and industrial sectors
This is quite the same as the first one. Basically,
this problem caused the first problem to
happen due to the same reasons.

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8 Problems of The Philippine
Agricultural Sector
3. Absence of critical programs on efficient
irrigation systems
Irrigation is an important factor in agriculture.
Irrigation helps farmers keep their crops well-
hydrated and moist, especially during the
warm seasons. Without irrigation, the soil
would become dry and the crops will wilt.

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8 Problems of The Philippine
Agricultural Sector
4. Inadequate management programs on soil,
pests and diseases

Pests and crop diseases have been a major

problem in the agricultural sector of the
Philippines. It lacks funding from the government.
If these pests and diseases were to be left out of
control, famine would crawl across our country.

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8 Problems of The Philippine
Agricultural Sector
5. Reduced farm labor
Due to the fast industrialization of our country,
many people prefer to do industrialized work
instead of planting crops for the nation to eat.
Our farmers have started to grow old, and only
few are replacing our old farmers.

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8 Problems of The Philippine
Agricultural Sector
6. Expensive and inappropriate farm
equipment for small farmers
Since we do not have much money for
spending in agricultural needs, machinery
needed for this has become a great expense
for our pockets.

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8 Problems of The Philippine
Agricultural Sector
7. Climate change and natural disasters
Our country is known to be prone to natural
disasters like typhoons and earthquakes. What
is not seen is that most of our crops cannot
resist extreme weather conditions like these.
Encroaching climate change can also affect our
agriculture due to its effects like droughts

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8 Problems of The Philippine
Agricultural Sector
8. Inadequate technology transfer
mechanisms
Our technology regarding agriculture is not
given enough attention. Our country lacks
machinery and technology to improve our
produce.

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Defects in the Marketing of
Agricultural Produce
There are many problems in the
unregulated markets such as,
• Small holdings resulting in small
quantities of marketable surplus
• Lack of infrastructure facilities.
• Lack of grading the produce.

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Defects in the Marketing of
Agricultural Produce
As a result, they do not get
remunerative price.
At present, majority of the markets are
unregulated.
The price is fixed by the Commission
agent and the retailers (Purchaser)
under the cover of cloth by making signs
on the palm, popularly called as the
“Hatta System”.
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Defects in the Marketing of
Agricultural Produce
Thus, even though the farmer is present there,
he cannot know the real price at which his
produce is sold.
The Commission agents exploit the farmers by
using many fraudulent means.
They charge heavy commission, use faulty
weights and measures and have number of
deductions.
Farmers also lack in information about other
markets and prices prevailing there.
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Government Agency and
Private Organization in the
Agriculture, Food, and
Natural Resources Industry

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Agricultural Marketing Circle
It consists of;
1 First circle. Refers to the final consumer or
targeted customer.
2 Second circle. Factors that can be controlled
known as marketing mix
(product, price, place, and promotion).
3 Third circle. Environmental factors that cannot
be controlled
(political and legal, economic, law and regulation,
social & culture,
technologies, & demographic).
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Agricultural Marketing Circle
The 3 Third circle is Environmental
factors that cannot be controlled.
This plays a vital role in developing,
linking, processing and regulating
agricultural commodities in the country
since the Government Agencies,
Private Organization, and State
Colleges and Universities for Research
and Development are under this circle.

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FAO partners in the Philippines
Government and affiliated line and
technical agencies
Department of Agriculture (DA) National Disaster Risk Reduction and Management Council
Department of Agriculture and Fisheries in the Autonomous (NDRRMC)
Region in Muslim Mindanao (DAF-ARMM) National Economic and Development Authority (NEDA)
Department of Agrarian Reform (DAR) National Nutrition Council (NNC)
Department of Environment and Natural Resources (DENR) Philippine Atmospheric, Geophysical, and Astronomical Services
Department of Foreign Affairs (DFA) Administration (PAGASA)
Department of Science and Technology (DOST) Philippine Coconut Authority (PCA)
Department of Social Welfare and Development (DSWD) Philippine Statistics Authority (PSA)
Department of Trade and Industry (DTI) Bureau of Fisheries and Aquatic Resources (BFAR)
Department of Tourism (DOT) Bureau of Animal Industry (BAI)
Department of National Defense (DND) Climate Change Commission (CCC)
Senate of the Philippines Forest Management Bureau (FMB)
House of Representatives Bangsamoro Autonomous Region in Muslim Mindanao
(BARMM)
Office of the Vice President of the Republic of the Philippines
Bangsamoro Development Agency (BDA)
Office of the Presidential Assistant for Food Security and
Agricultural Modernization (OPAFSAM) Bureau of Agricultural Statistics (BAS)
Office of the Presidential Assistant for Rehabilitation and Philippine Rice Research Institute
Recovery (OPARR) International Rice Research Institute (IRRI)
Office of the Presidential Adviser on the Peace Process (OPAPP) Technical Education and Skills Development Authority (TESDA)
Mindanao Development Authority (MINDA) DOST PAGASA- Climate Prediction Section
Ministry of Agriculture, Fisheries, and Agrarian Reform DOST Food and Nutrition Research Institute
(BARMM-MAFAR) Local Government Units
Ministry of Social Services and Development (BARMM-MSSD)
National Commission on Indigenous Peoples (NCIP)

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Selected Government Agencies and its
role in the Agricultural Sector
• The Department of Trade and Industry (Filipino:
Kagawaran ng Kalakalan at Industriya,
abbreviated as DTI) is the executive department
of the Philippine government tasked as the main
economic catalyst that enables innovative,
competitive, job generating, inclusive business,
and empowers consumers
• It also provide financial assistance and
other programs together with other
cooperating agencies
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Selected Government Agencies and its
role in the Agricultural Sector

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State of
Philippine Agriculture
Commodities

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 Agriculture increases by an average of
2.0 percent from 2000 to 2019 using
2018 base year

Following the adoption of 2018 as the new base year in the National
Accounts, the value of agricultural production covering the period
2000 to 2019 was revised and rebased. Over these years, agriculture
grew by an average of 2.0 percent at constant prices.

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Entrepreneurial
Opportunities in
Agriculture

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Entrepreneurial Opportunities in
Agriculture
• Diversification Diversification in agriculture involve
shift in cropping pattern from
traditionally grown less remunerative
crops to more remunerative crops like
oilseeds, pulses, fodder crops,
horticulture, medicinal and aromatic
plants, floriculture etc. It also includes
livestock and fishery enterprises and
small scale agro-based industries.
http://dfs.berkeley.edu/about-us/mission-goals/
Diversification increases the employment
opportunities, optimum use of resources
and profitability.
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Entrepreneurial Opportunities in
Agriculture
• Organic farming:

http://www.organicagriculture.co/indian-scenario.php

The importance of organic farming is growing very fast

particularly in international market. This sector provides
great business opportunities to agro-based entrepreneur.
Area under organic farming is increasing but unable to
meet the demand of organic produce.
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Entrepreneurial Opportunities in
Agriculture
• Food preservation, processing and packaging

food-preservation-can-jam-9-stone-fruits/
Large proportion of agricultural produce is wastage due to improper storage
and warehousing, lack of transportation and food processing facilities.
There is a significant shift in consumer food preference towards
processed food products. Entrepreneurs can add value with proper
management and marketing initiatives. The processed food market
opens a great potential for entrepreneurs be it fast food, packaged food
or organic food. 54
Entrepreneurial Opportunities in
Agriculture
• Floriculture
Floriculture is a very
lucrative sector. India's
share in world trade of
floriculture is just 0.18
per cent. This is a huge
market to be tapped
considering the rising
demand for fresh
flowers.

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Entrepreneurial Opportunities in
Agriculture
• Production of agro-inputs:

• Farmers can start entrepreneurial activities in the

production of seed, organic fertilizers and pesticides.

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References:
https://psa.gov.ph
https://www.slideshare.net/amanina_mal/mkt165-chapter1introduction?from_action=save
Undersecretary Bernadette Romulo-Puyat, June 29, 2016, The State of Philippine Agriculture,
Department of Agriculture
https://psa.gov.ph/ppa-main/id/161874
https://themendelianeconomists.wordpress.com/2017/02/13/8-problems-of-the-philippine-
agricultural-sector/

https://www.slideshare.net/amanina_mal/mkt165-chapter-1introduction?qid=8c74a1d5-8f2
4-4e5f-8e17-d17debcec506&v=&b=&from_search=2

https://commodity.com/soft-agricultural

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The End

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