ANNEX A: TECHNICAL NOTES
Regional Economic Performance
A. Economic Growth
Table 1: Gross Regional Domestic Product (GRDP), Davao Region, 2011-2012
In Million Pesos, At Constant 2000 Prices
2011
Davao Region
2012
225,456
242,230
Growth Rate
(%)
7.4
2012 Target (%)
6.8
Source: NSCB
The regional economy grew by 7.4% in 2012. This is higher than the 6.8% target of the
Regional Development Plan. Growth can be attributed to steady accelerations in industry and
services sectors.
Table 2: Gross Regional Domestic Product (GRDP), By Industrial Origin, Davao Region, 2011-2012
In Million Pesos, At Constant 2000 Prices
Industry
Agriculture,
Forestry & Fishing
Industry Sector
Services Sector
2011
2012
43,278
64,516
117,662
Growth Rate
(%)
% Share
0.4
8.9
9.2
18.0
29.0
53.0
43,470
70,278
128,482
Source: NSCB
Figure 1
GRDP, By Indsutrial Origin, 2012
Percent Distribution
The agriculture sector registered a positive
growth rate of 0.4% despite the damages
caused by Typhoon Pablo in the later part of
the year. The sector accounted for 18.0% of
the region’s total output.
AHFF
18%
Services
53%
Industry
29%
B. Labor Force
Table 3: Labor Force and Employment, Davao Region, 2011-2012
In ‘000
Indicator
Labor Force
No. of Employed
No. of Unemployed
Employment Rate (%)
Unemployment Rate (%)
Source: NSO, BLES
2011
2012
2,890
1,825
152
94.6
5.4
3,043
1,874
178
94.1
5.9
% Change
5.3
2.7
17.1
(0.5)
(0.1)
Annex A
Davao Region’s labor force
grew by 5.3% from 2.890M
in 2011 to 3.043M in 2012.
In
similar
year,
employment also grew by
2.7%
bringing
total
employed to 1.874M. Of
the total employed in the
region, 38% is employed in
the agriculture sector.
Figure 2
No. of Employed, By Major Industry Group, 2012
Percent Distribution
AHFF
38%
Services
48%
Industry
14%
Davao Region’s Banana Industry
A. Economic Performance
Table 4: Volume of Production, All Varieties of Banana, Philippines, 2012
In Metric Tons
Region
PHILIPPINES
CAR
Ilocos
Cagayan Valley
Central Luzon
Calabarzon
Mimaropa
Bicol
Western Visayas
Central Visayas
Eastern Visayas
Zamboanga Peninsula
Northern Mindanao
Davao
SOCCSKSARGEN
Caraga
ARMM
Volume
9,225,997.97
25,100.14
42,559.69
308,468.80
57,584.11
116,468.53
199,267.65
81,413.60
353,137.67
202,511.80
280,439.13
240,487.16
1,718,787.39
3,785,421.69
1,155,347.63
218,804.97
440,198.01
% Share
0.27
0.46
3.34
0.62
1.26
2.16
0.88
3.83
2.20
3.04
2.61
18.63
41.03
12.52
2.37
4.77
Figure 3
Volume of Production,
All Varieties of
Banana, Philippines, 2012
In Metric Tons
Rest of
the
Country
59%
Davao
Region
41%
Source: BAS
2
Annex A
Table 5: Volume of Production, Cavendish Banana, Philippines, 2012
In Metric Tons
Region
PHILIPPINES
CAR
Ilocos
Cagayan Valley
Central Luzon
Calabarzon
Mimaropa
Bicol
Western Visayas
Central Visayas
Eastern Visayas
Zamboanga Peninsula
Northern Mindanao
Davao
SOCCSKSARGEN
Caraga
ARMM
Volume
4,694,639.61
284.30
909.25
1,647.78
896.67
192.68
145.86
1,102,389.36
2,902,973.62
505,827.31
40,886.06
138,486.73
% Share
0.00
0.00
0.01
0.00
0.02
0.00
0.00
0.04
0.02
0.00
0.00
23.48
61.84
10.77
0.87
2.95
Figure 4
Volume of Production,
Cavendish
Banana, Philippines, 2012
In Metric Tons
Rest of
the
Country
38%
Davao
Region
62%
Source: BAS
Table 6: Volume of Production, All Varieties of Banana, Mindanao, 2012
In Metric Tons
Region
MINDANAO
Zamboanga Peninsula
Northern Mindanao
Davao
SOCCSKSARGEN
Caraga
ARMM
Volume
7,559,046.85
240,487.16
1,718,787.39
3,785,421.69
1,155,347.63
218,804.97
440,198.01
% Share
3.18
22.74
50.08
15.28
2.89
5.82
Figure 5
Volume of Production,
All Varieties of
Banana, Mindanao, 2012
In Metric Tons
Source: BAS
Other
Regions
50%
Davao
Region
50%
3
Annex A
Table 7: Volume of Production, Cavendish Banana, Mindanao, 2012
In Metric Tons
Region
MINDANAO
Zamboanga Peninsula
Northern Mindanao
Davao
SOCCSKSARGEN
Caraga
ARMM
Volume
4,690,708.94
145.86
1,102,389.36
2,902,973.62
505,827.31
40,886.06
138,486.73
% Share
0.00
23.50
61.89
10.78
0.87
2.95
Figure 6
Volume of Production,
Cavendish
Banana, Mindanao, 2012
In Metric Tons
Source: BAS
Other
Regions
38%
Davao
Region
62%
In 2012, Davao Region was the top producer of Cavendish Banana in the Philippines, accounting
for 62% of the total production in the country.
Table 8: Volume of Production, All Varieties of Banana, Davao Region, 2008-2012
In Metric Tons
Year
2008
2009
2010
2011
2012
Volume
3,569,079
3,749,766
3,804,460
3,854,845
3,785,422
% Change
Average Annual
Growth Rate (%)
5.0
1.5
1.3
(1.8)
1.5
Source: BAS
Table 9: Value of Production, All Varieties of Banana, Davao Region, 2008-2012
In Million Pesos, At Constant Prices
Year
2008
2009
2010
2011
2012
Value
16,953
17,811
18,071
18,310
17,981
% Change
Average Annual
Growth Rate (%)
5.0
1.5
1.3
(1.8)
1.5
Source: BAS
4
Annex A
Table 10: Volume of Production, Cavendish Banana, Davao Region, 2008-2012
In Metric Tons
Year
Volume
2008
2009
2010
2011
2012
2,746,338
2,877,651
2,927,247
2,961,989
2,902,974
% Change
Average Annual
Growth Rate (%)
4.8
1.7
1.2
(2.0)
1.4
Source: BAS
Davao Region’s banana (Cavendish) industry slowed down in 2012 and recorded a 2.0%
decline in production due to the adverse effects of Typhoon Pablo. However, the industry
showed a satisfactory performance over the last five years in terms of production as
evidenced by a 1.4% average annual increase in total output.
B. Export Performance
Table 11: Top 10 Agricultural Exports, Philippines, 2011-2012
Quantity in ‘000 MT, FOB Value in M US$
Item
Coconut Oil
Bananas, Fresh
Tuna
Pineapple and
pineapple
products
Desiccated
Coconut
Tobacco
Manufactured
Seaweed and
Carageenan
Centrifugal Sugar
Milk and Cream
Products
Fertilizer
Manufactures
826.72
2,055.51
80.13
582.68
2011
FOB
Value
1,425.45
472.38
314.58
345.64
108.88
286.81
5.28
68.58
197.00
3.94
(31.31)
28.16
199.97
3.68
15.80
157.46
3.15
(21.26)
46.13
210.78
3.88
33.91
184.15
3.68
(12.61)
578.74
38.13
351.45
173.44
6.47
3.19
201.93
18.01
108.80
85.80
2.17
1.71
(69.04)
(50.53)
455.12
213.00
3.92
239.16
118.79
2.37
(44.23)
Quantity
% Share
Quantity
26.24
8.70
5.79
6.36
857.50
2,646.12
61.71
742.61
2012
FOB
Value
1,016.09
646.66
455.10
414.91
%
Share
20.31
12.92
9.10
8.29
Growth
Rate
(28.72)
36.89
44.67
20.04
Source: BAS
Figure 7
Top Exports, Davao Region, 2012
Percentage Distribution
Others
8%
Fresh Fruits
21%
Banana
43%
Coconut
28%
Source: DTI-XI
5
Annex A
Table 12: Cavendish Banana Annual Report per Destination, 2008-2012
In Boxes
Year
Destination
2008
2009
2010
2011
2012
5year
Ave.
(%)
Japan
50,633,406
58,073,518 51,038,528 54,455,593
53,053,283
1.7
China
26,019,941
26,863,549 31,030,072 48,179,858
33,160,358 10.7
Iran
39,240,959
35,501,963 37,142,583 31,932,439
19,626,001 (14.4)
South Korea
15,903,404
15,400,037 19,096,083 17,953,259
18,106,609
3.9
Saudi Arabia
12,118,233
11,525,681 14,376,261 16,864,973
17,609,720 10.4
Kuwait
6,513,174
7,770,196
7,489,350 10,091,055
10,198,207 12.9
U. A. E.
8,630,520
9,925,205
7,147,089
7,095,786
7,736,292 (1.2)
New Zealand
3,683,692
3,695,957
3,888,282
4,246,779
4,290,935
3.9
Russia
1,606,513
1,662,140
2,113,134
2,272,650
2,292,768
9.8
Singapore
892,587
1,128,307
1,103,902
1,161,810
1,221,438
8.7
Qatar
1,280,132
1,062,361
891,468
1,094,773
1,096,446 (2.5)
Hong Kong
424,031
710,607
623,708
631,468
662,508 15.4
Bahrain
518,925
564,585
538,218
472,135
773,266 13.9
Egypt
376,687
514,996
456,320
457,610
471,199
7.1
Oman
366,150
394,347
313,120
318,821
295,146 (4.6)
Jordan
470,156
562,982
629,971
262,457
163,345 (16.1)
Iraq
6,160
237,692
31,120
Malaysia
12,038
23,242
91,424
143,268
400,873 155.7
Indonesia
11,860
122,115
35,370
121,557
Vietnam
56,343
25,229
Brunei
6,670
11,190
10,550
10,540
9,046 11.9
Turkmenistan
6,160
Thailand
15,870
17,599
3,864
1,968
Turkey
5,440
57,603
2,500
UK
1,200
Bulgaria*
2,658
69,919
Pakistan*
206,341
Belarus*
56,504
Mongolia*
63,206
Netherlands*
1,920
9,600
Ukraine*
20,010
9,008
Syria*
5,969
1,540
6,160
Germany*
2,408
Slovenia
17,116
Afghanistan
3,080
Romania
3,080
Poland
1,200
Georgia
1,132
Libya
26,156
26,156
Italy
1,084
TOTAL
168,755,877 175,515,464 178,198,236 197,959,947 171,745,231
0.8
*New Market
Source: Plant Quarantine Service (PQS) of the Bureau of Plant Industry, Department of Agriculture
In 2012, the banana (Cavendish) industry exported 423,146 boxes to new markets. This
accounted for about 0.25% of the region’s total Cavendish Banana export.
6
Annex A
Table 13: Top 5 Destinations of Cavendish Banana, 1st Semester 2012 and 2013
In Boxes
Destination
Japan
China
South Korea
Iran
Saudi Arabia
Total
Year
2012
26,448,407
19,141,506
10,940,500
9,524,208
8,523,331
74,577,952
2013
22,312,623
10,949,188
6,937,409
5,695,844
6,466,787
52,361,851
% Change
(16.0)
(43.0)
(37.0)
(40.0)
(24.0)
(30.0)
Source: PBGEA
C. Employment
Table 14: No. of Employed Persons in the Banana Industry, All Varieties, Davao Region,
2008-2012
Year
2008
2009
2010
2011
2012
No. of Employed*
320,884
345,208
349,252
353,516
353,280
% Change
Average Annual
Growth Rate (%)
7.6
1.2
1.2
(0.1)
2.5
*estimate, computed as total area planted with banana multiplied by 4
Source: PBGEA, BAS
Table 15: No. of Employed Persons in the Banana (Cavendish) Industry, Davao Region,
2008-2012
Year
2008
2009
2010
2011
2012
No. of Employed*
182,620
189,740
192,612
194,964
194,140
% Change
3.9
1.5
1.2
(0.4)
Average Annual
Growth Rate (%)
1.6
*estimate, computed as total area planted with banana multiplied by 4
Source: PBGEA, BAS
In the last five years, employment in the banana (Cavendish) industry grew by an average
annual rate of 1.6%. There was a slight reduction in 2012 because the plantations/farms,
which were affected by Typhoon Pablo, ceased operations.
D. Wages and Productivity
Table 16: Labor Productivity, Banana Industry, Davao Region, 2008-2012
In Pesos
Year
Labor Productivity*
2008
2009
2010
2011
2012
52,832
51,595
51,742
51,794
50,897
% Change
Average Annual
Growth Rate (%)
(2.3)
0.3
0.1
(1.7)
(0.9)
*computed as value of production over number of employed
Source: PBGEA, BAS
7
Annex A
Table 17: Labor Productivity, Banana (Cavendish) Industry, Davao Region, 2008-2012
In Metric Tons
Year
Labor Productivity*
2008
2009
2010
2011
2012
15.04
15.17
15.20
15.19
14.95
% Change
Average Annual
Growth Rate (%)
0.85
0.21
(0.03)
(1.58)
(0.14)
*computed as volume of production over number of employed
Source: PBGEA, BAS
The industry experienced a 1.6% decline in labor productivity between 2011 and 2012. Over
the last five years, it registered a negative growth of 0.14% in labor productivity.
Table 18: Minimum Wage, Agriculture Sector, Davao Region, 2008-2012
In Pesos
Year
2008
2009
2010
2011
2012
Minimum Wage
244
255
262
276
288
% Change
Average Annual
Growth Rate (%)
4.5
2.7
5.3
4.2
4.2
Source: RTWPB-XI
Meanwhile, wages in the industry grew by 4.2% from 2011 to 2012 and by an average of 4.2%
in the last five years, which is high considering a downtrend in the industry’s labor
productivity.
E. Prospects
According to Mr. Stephen Antig, the Executive Director of Pilipino Banana Growers and
Exporters Association, Inc. (PBGEA), the demand for Cavendish Banana is expected to go
down by 7% in 2014. Supply, on the other hand, is projected to exceed demand following the
simultaneous recovery of Cavendish Banana producers who were severely affected by
Typhoon Pablo. In order to eliminate the expected surplus in the third quarter of 2014, the
banana industry stakeholders constantly strive to expand their customer base. The new target
markets are the United States of America, Europe and other countries that have entered into
free trade agreements. Countries that have improving economies like Russia, Kazakhstan, and
Kurdistan are also prospective markets.
8
ANNEX B: BANANA INDUSTRY VALUE CHAIN MAP
Source: Davao Region Industry Cluster Plan, 2005-2010