21/02/2022

ABME 103:
PRODUCTION
SUBSYSTEM • Define what Production Subsystem is
• Present the elements in an efficient Agribusiness
Maria Noriza Q. Herrera
Assistant Professor
Objectives Production Subsystem
• Discuss the Characteristics of the Farm Sector
Department of Agribusiness Management &
Entrepreneurship
College of Economics and Management

Source: Abonete, 2019

Source: PUM Netherlands Senior Experts, 2017

Source: Abonete, 2019

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Production Sector

Agriculture Fishery Forestry

subsector subsector subsector

 Core of agribusiness
 Closely interlinked with the input,
processing and marketing sectors

Source: Croft, 2015

• Dominated by small scale producers

•
Elements in an Market orientation • Highly dependent on uncontrollable production conditions
• Location Characteristics (production risks)
Efficient • Access to the right technology
of the Farm
• Subject to high market risks due to the variability, seasonality and
perishability of produce
•
Production •
Timely availability of resources
Systems approach to management Sector
• Due to smallness of operations, the sector is weak in relation to
its backward (input) and forward (markets) links

Subsystem • •

• Source: Business World, 2021

Source: Business World, 2022

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Source: Habito, 2020 Source: Habito, 2020

Crops’ Volume of Production in the Area of Crops Planted (in hectarage) in

the Philippines (2014-2018)
Philippines (2014-2018)

• Source: PSA, 2020

• Source: PSA, 2020

Crops’ Value (in Million pesos) in

the Philippines (2014-2018)
Individual Corporate

Farm
Classification
according to Cooperative Partnership
• Source: PSA, 2020 Legal Status
Government Private
Institution Institution

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Owned Subsistence farms – production-

Farm oriented farms managed by the
Farm Partly Owned household
Classification
Classification Small portion goes to the market

according to according to Commercial farms – producing

mainly for sales
Tenure Tenanted Management Collective farms – managed by
Systems centrally planned economies

Leased

Farm Monocrop farms - usually observed in large

estate farms with processing components
Classification Mixed crop farms – done to maximize land • Farming System – a more or less coherent
according to productivity Farms and combination in time and space of some
Farming quantities of labor and various means of
Crops/ Relay crop farms – succession planting done
to maintain soil fertility System production in order to get different
agricultural products
Livestock
Integrated farm – different farm units
Raised support each other

Farming systems represent an appropriate Factors Affecting the

combination of farm enterprises, cropping Use of Agricultural Land
systems, livestock, fisheries, forestry,
poultry and the resources available to the
Farms and farmer to raise them for food and/or
profitability
Farming • Source: Cintina and Pukite, 2018

System One or different farming systems could be

adopted in one farm

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Tenure – owner operators have

more freedom to choose Factors Affecting Choice of Farming System
Factors crop/livestock combination
Affecting Farm characteristics – size,
Choice of topography, location, soil type,
climate, relief
Farming CAPITAL/INCOME FARMER’S CHOICE LABOR
Market risks – after choice
System between monocropping and mixed
OPPORTUNITIES

cropping and integrated farming

FACTORS AFFECTING
VOLUME OF PRODUCTION

Weather Conditions/ Disturbances

Distribution of quality seeds
Government/ LGU

Unfavorable – tropical storms or typhoons and other planting materials

and excessive heat
Favorable – sufficiency of rainfall provides
enough moisture; absence of major weather Fertilization (fertilizer dole-
Programs

disturbances outs and subsidies), irrigation,

and vaccination programs

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Input Sourcing/ Application

Presence/ Pests – weevils, rats, locust

Costs of inputs degree of
Diseases – mosaic diseases, rotten
pods (as caused by excessive rainfall),
Access to input sources damage of powdery mildew, swine flu, hog
cholera, FMD, AH1N1
Information on input choices and use pests
and diseases

Better/improved
Poultry Management
Crop and Livestock &

(efficiency of) practices

Awareness on new
production technologies Production Area
Increase / decrease in harvested or pasture area

Maintenance during
production

Marketing Aspect
(Demand and Crop Shifting
Prices of Crops)
 Change in domain crops as
Expansion of contract affected by other factors
growing
Demand for commodity
(local and export)
Prices of commodity and
substitute products
Competition
Product differentiation
Marketing infrastructures

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Global

Supply US-China trade spat- impact on commodity

prices especially grains and meat
Chain African swine fever- pork supply/prices

Other factors Disruptions

Delayed milling schedules, (Dy, 2019) US-Iran conflict- oil prices

quality of harvests
Brexit EU trade; Philippine export

• Local
 Meat processing raw materials –
import ban of EU meat
Transaction Costs – toll from town
Supply Chain to town KEY ISSUES
Low coconut prices – impact on
Disruptions harvest
Rice Tariffication Act – smuggling;
(Dy, 2019) farm production

Lack of control over production

Limited quality
seeds/seedlings – High cost of inputs conditions
availability and use
Farm maintenance during production
Lack of process
Inappropriate information on
Input Sourcing fertilizer use input choices and
Production

use Lack of awareness on new

production technologies
Limited credit Insufficient
access irrigation
Inefficient water management

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Low farm Low

mechanization productivity

Production Post-harvest
Limited
Poor extension
replanting of
activities Cost-effective, farm-based
senile trees
facilities

Low recovery
Lack of markets
Lack of product differentiation
Poor marketing infrastructure
Underutilized capacity Marketing Lack of market information
Processing

Low export share

Inconsistent product
quality

Inadequacy of and Lack of production

poor access to and marketing
Support- credit infrastructures
services
related
Inefficiency of
support programs Strategic Options

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STRATEGIC OPTIONS

Fishery Sector
COLLECTIVE ACTIONS INTEGRATIVE COMPLIANCE TO INNOVATIONS
AMONG THE PLAYERS ARRANGEMENTS QUALITY STANDARDS

WORLD FISHERY SECTOR AT A GLANCE, 2018

WORLD FISHERY
SECTOR STATUS AT A GLANCE

FAO, 2020

Top 10 Global
CaptureProducers,2018
WORLD
CAPTURE
FISHERIES AND
AQUACULTURE
PRODUCTION,
2018

FAO, 2020

• FAO, 2020

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Marine 11th in Rank

PHILIPPINE FISHERY SECTOR
Producing
Countries STATUS AT A GLANCE

FAO, 2020

PSA, 2020

PSA, 2020
` FISHERIES STATISTICS OF THE PHILIPPINES, 2016-2018

FIGURE 4. Percent Contribution of Fishery Sectors to Total Value of

Fish Production, Philippines: 2016

Aquaculture
40%

Com mercial
26%

Municipal ` FISHERIES STATISTICS OF THE PHILIPPINES, 2016-2018

` 34%
FISHERIES STATISTICS OF THE PHILIPPINES, 2016-2018
% Contribution of Fishery Sectors to Total Value of Fish Total Aquatic Resources in the Philippines, 2018
TABLE 1 Total Aquatic Re s our ce s , Philippine s : 2018

Production in Philippines in 2016 and 2018 Re s ource s Are a

A. M arine Re s our ce s

FIGURE 4. Percent Contribution of Fishery Sectors to Total Value of 1. Total Territorial Water A rea (including the EEZ) 2,200,000 sq.km.
Fish Production, Philippines: 2016
FIGURE 5. Percent Contribution of Fishery Sectors to Total Value of a. Coastal 266,000 sq.km.
Fish Production, Philippines: 2018 b. Oceanic 1,934,000 sq.km.

2. Shelf A rea (Depth 200 m.) 184,600 sq.km.

3. Coral Reef Area 27,000 sq.km.

Com mercial
Aquaculture
23% 4. Coastline (Length) 17,460 km.
40%

B. Inland Re s our ce s
Com mercial Aquaculture
26% 42% 1. Sw amplands 246,063 ha.
a. Freshw ater 106,328 ha.
/1
b. Brackishw ater 139,735 ha.

2. Existing Fishponds 253,854 ha.

a. Freshw ater 14,531 ha.
/2
b. Brackishw ater 239,323 ha.

3. Other Inland Resouces 250,000 ha.

a. Lakes 200,000 ha.
Municipal Municipal
b. Rivers 31,000 ha.
34% 35%
c. Reservoirs 19,000 ha.

2016 2018 Source: BFA R 2000

NA MRIA , 1990 /1

/2
1 992 Inventory of Brackishw ater Fishponds

FIGURE 5. Percent Contribution of Fishery Sectors to Total Value of

PSA, 2020
Fish Production, Philippines: 2018

Com mercial 16
23%

Aquaculture
42%

Municipal
35%

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TOTAL Fisheries production –

 The Philippines is 5th among the top 25 aquaculture
producers in the world (2.31% share) VALUE AND 4,356, 874.77 MT
 The country is 3rd among the aquaculture producers in
Southeast Asia (10.37% share)
VOLUME OF • Aquaculture: 53%
PHILIPPINE • Capture (Municipal and
Commercial): 47%
FISHERY
Value of Production –
Source: Philippine Fisheries Situation (PSA, 2017)
SECTOR IN
2018 ₱ 265 B

Volume (MT) of Fish

Production by Sector `
in the Philippines, FISHERIES STATISTICS OF THE PHILIPPINES, 2016-2018
2016-2018 Value (in M
` pesos) of Fish
FISHERIES STATISTICS OF THE PHILIPPINES, 2016-2018
Production by
• PSA, 2020 Sector in the
Philippines,
2016-2018
FIGURE 10. Percent Contribution of Top Species to Total Value of
FIGURE 8. Percent Contribution of Top Species to Total Value of Inland FIsh Production, Philippines: 2016
Marine Production, Philippines: 2016
Roundscad Bali Sardinella
5% 3% Freshwater goby
Yellow fin tuna
PSA, 2020
(Biya)
5% Big head carp
3% Milkfish (Bangus)
Squid 1% 4%
5% Freshwater shrimp
(Hipon) Tilapia
5% 31%
Frigate Tuna
6%
Catfish (Hito)
Others Threadfin bream 6%
58% 5%
Mudfish (Dalag)
Skipjack 10%
3%

Big-eyed Scad
Indian Mackerel 6% Mudfish
4% 10%
Others
29%

FIGURE 9. Percent Contribution of Top Species to Total Value of

Marine Producton, Philippines: 2018
FIGURE 11. Percent Contribution of Top Species to Total Value of
Inland Fish Production, Philippines: 2018

Roundscad Freshw ater

5% Bali Sardinella
3% Yellow fin tuna
5%
% Contribution of Big head carp
1%
shrim p (Hipon)
5%
Freshw ater goby
(Biya)
Threadfin bream
Top Species to Catfish (Hito) 3%
Tilapia
4% 6%
% Contribution
Total Value of 30%
Milkfish (Bangus)
of Top Species to Frigate Tuna
6% Inland Production, 5%
Total Value of
Marine Others
59%
Big-eyed Scad
6% Philippines, 2018
Production, Carp
Philippines, 2018 12%
Skipjack PSA, 2020
3%

Indian Mackerel Mudfish (Dalag)

4% 10%
Squid Others
5% 28%

PSA, 2020

98

97

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 Mud crab
7%
21/02/2022
Seaw eed
7%

Tilapia
22% Milkfish
35%

% Contribution of Top FIGURE 13. Percent Contribution of Top Species to Total Value of
Aquaculture Production, Philippines: 2018
Bio-security risks in aquaculture (food safety,
Species to Total Value of transboundary aquatic animal disease,
Grouper Tiger Prawn
Aquaculture Production, 0% 21%
aquaculture issues on aquatic GMOs)
Philippines, 2018

• PSA, 2020
Mud crab
9% Challenges
Climate Change
Seaw eed
13%
in the
Fisheries Sustainable management and protection of
production areas
Tilapia
21%
Milkfish
36%
Sector
Marketability of fishery products

238

Aquaculture Technologies
Rehabilitation of irrigation systems and
mariculture areas • Rope frame cage technology

Climate-resilient technologies

• Rope-framed cage technology

Opportunities • HDPE pond liner technology

Fish breeding and hatcheries

• HDPE pond liner technology
Fabrication of sea cages and other
equipment (mariculture zones/parks)

Tension leg cage technology

Philippine’s Buhi (fish

hibernation) Technology • Agriculture.ph, 2008
(2005) by Engr. Bonifacio
Comandante

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Opportunities

Offshore Mariculture Post-harvest facilities Fish Processing Plants Feedmills and Logistics
Tension Leg Cage Technology

Fish Information Israel’s Recirculating Aquaculture System (RAS) for

land-based freshwater shrimps
Services, 2019

References References
 Agriculture, ph. 2008. Fish Hibernation. https://www.youtube.com/watch?v=iXSkYLnVUtA. Food and Agriculture Organization (FAO). 2020. The State of World Fisheries and Aquaculture.
 Abonete, P.J. 2019. Photo credit during fieldwork from Hebrew University, Israel. http://www.fao.org/state-of-fisheries-aquaculture/en/
 Dar, W.D. 2020. Ensuring Food Security Amid COVID-19 Pandemic. A Webinar Series of the College of Economics Mojica, L.E., G.N. Baticados, M.B. Cruz, J.J.S. Cabardo Lecture Notes
and Management, University of the Philippines Los Baños, Los Baños, Laguna. Philippine Statistics Authority (PSA). 2020. Fisheries Statistics of the Philippines, 2016-2018.
https://www.facebook.com/uplbcem/videos/329353148116896
https://psa.gov.ph/content/fisheries-statistics-philippines
 Dy, R.T. 2017. Agribusiness and Rural Progress: Actions for Poverty Reduction. Center for Food and
Agribusiness,University of Asia and the Pacific. Philippine Statistics Authority (PSA). 2020. Performance of Philippine Agriculture, Second Quarter 2020.
https://psa.gov.ph/content/performance-philippine-agriculture-0
 Habito, C.F. 2020. Philippine Economy in Recession: Agriculture in the New Normal. A Webinar Series of the College
of Economics and Management, University of the Philippines Los Baños, Los Baños, Laguna. Retrieved August Video credit to PUM Netherlands Senior Experts. 2017. From Tree to Chocolate.
14,2020 from https://www.facebook.com/uplbcem/videos/329353148116896 https://www.youtube.com/watch?v=5lUa3-Y-HII
 Fish Information System FIS. 2019. Innovative RAS Technology to Farm Shrimps on Land available on 2020. Video credit to John Croft. 2015. Malagos Chocolate from Tree to Bar. Retrieved
https://www.fis.com/fis/worldnews/worldnews.asp?country=0&monthyear=&l=e&id=104963&ndb=1&df=0 https://www.youtube.com/watch?v=I3645b8ciLs&t=4s
ABS-CBN.2019. Matanglawin’s Episode on Malagos Chocolate Museum. Retrieved August
https://www.youtube.com/watch?v=JmtZIR8w5Yg

Thank you
for listening!
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Office of the Chancellor

University of the
University Philippines
of the Los
Philippines Los Baños
Baños, www.uplb.edu.ph | learnmore@uplb.edu.ph
College,
College, Los Baños, Laguna Laguna, 4031 Philippines
4031 Philippines

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