Major Industries, Export and Economic Activities

Commodity Flow1

In 2017, total quantity of domestic trade in 2017 was recorded at 23.40 million tons, representing a
decrease of 3.9 percent from the 24.35 million tons posted in 2016. Food and live animals commodity
section was the highest in quantity with 6.57 million tons or 28.1 percent of all the traded commodities
while animal and vegetable oils, fats and waxes had the least with less than 0.11 million tons. Total value
of domestic trade in 2017 fell by 12.2 percent, from PHP871.67 billion in 2016 to PHP765.38 billion in
2017, machinery and transport equipment posted the highest value amounting to PHP269.99 billion in
2017; while animal and vegetable oils, fats and waxes commodities recorded the least at PHP6.01 billion.

The top 5 commodities with the highest value of domestic trade in the country are the following:

1. Machinery and transport equipment - PHP269.99 billion;

2. Food and live animals - PHP172.96 billion;
3. Manufactured goods classified chiefly by materials - PHP92.58 billion;
4. Mineral fuels, lubricants and related materials - PHP68.86 billion; and
5. Chemical and related products, n.e.c. - PHP48.94 billion.

National Capital Region (NCR) accounts for 27.0 percent of total domestic trade, which is the largest share
to the total domestic trade value amounting to PHP206.40 billion. Central Luzon placed in seventh, at
PHP50.33 billion. MIMAROPA Region were lagging behind with PHP4.19 billion and CALABARZON
contributed the least share with only PHP845.02 million. There were no transactions from CAR and Region
II noted. The figure below shows the domestic trade values per region.

1
https://psa.gov.ph/sites/default/files/2017%20Commodity%20Flow%20in%20the%20Philippines.pdf
Source: PSA

Region 1:

Ilocos Region is composed of 4 provinces: Ilocos Norte, Ilocos Sur, La Union and Pangasinan. Economy in
the region is anchored both on agriculture and agro-industrial sectors. Its provinces are famous for agro-
industrial businesses such as milkfish (bangus) cultivation and processing, livestock raising, fish paste
(bagoong) processing, among others. Income in the Ilocos provinces also come from cultivating rice,
tobacco, corn, sugarcane, and fruits; and from raising livestock such as pigs, chicken, goats, and carabaos.2
Services and light manufacturing industries are concentrated in the cities. Tourism industry is driven by
local airlines and land transportation firms, focusing on coastal beaches and eco-tourism. The region is
also rich in crafts, with renowned blanket-weaving and pottery. The Ilocanos' burnay pottery is well known
for its dark colored clay.3

Products and industries in the area ae the following:

Coffee
Dragon Fruit
Wearables and Homestyle
Calamansi
Bangus
Meat Processing

2
https://www.dti.gov.ph/regions/region1
3
https://www.dti.gov.ph/regions/region1/r1-profile-of-region
Chichacorn
Veggie Noodle
Information Communication Technology (ICT)
E-bamboo (Engineered Bamboo)

In Ilocos Region, coffee is grown in the upland municipalities of Ilocos Norte, Ilocos Sur and La Union. Fifty-
four (54) percent of coffee produced is Robusta while thirty-nine (39) percent is Arabica. Excelsa and
Liberica varieties, which reflect about six (6) percent and one (1) percent respectively, are produced only
in the province of Ilocos Sur.4 Coffee was grown for home consumption, but through the years, areas
planted for coffee had significantly grown due to distribution of coffee seedlings by various government
agencies and the Sacred Heart Savings and Development Cooperative of Ilocos Sur through its Coffee Loan
Project.

The figure below indicates the top three local buyers within and outside the region.

Figure 1. TOP 3 LOCAL BUYERS (WITHIN AND OUTSIDE THE REGION, 2012-2014)

Below is the production volume of the dried berries per year in metric tons.

4
https://drive.google.com/file/d/0B0ilL7KAK3i5Mm1PUWw1SUsyT1U/view
 Figure 2. PRODUCTION VOLUME

Source: PSA, Country Stat Philippines

La Union

With its proximity to the trading centers of Luzon such as Baguio, Laoag, Vigan, Dagupan and Urdaneta,
and the location of Poro Point Special Economic & Freeport Zone, formerly Wallace Air Station, La Union
is considered a premiere economic growth center in Northern Luzon. La Union’s vision is to be the “Heart
of Agri-Tourism in Northern Luzon” by 2025.

Agri-tourism in La Union’s definition are clustered attractions that either have agriculture or tourism
elements, or both combined. Clustered attractions are called CIRCUITS. They have divided the agri-tourism
circuits into 6 areas:

1. Northern Circuit: composed of Sudipen, Bangar, Luna, Balaoan, Santol

2. Central Circuit: composed of Bacnotan, San Gabriel, San Juan, San Fernando
3. Central Eastern Circuit: composed of Bagulin, Burgos, Naguilian, Bauang
4. Southern Circuit: composed of Caba, Aringay, Agoo
5. South Eastern Circuit: composed of Tubao, Pugo, Santo Tomas, Rosario

Major industries of the province include: tabacco, basi (local wine derived from sugar cane), bamboo
furniture, antique furniture making, cement, feeds, GI sheets and fertilizers.5

5
https://launion.gov.ph/business/investment-opportunities/
DTI’s One Town One Product (OTOP) enables localities and communities to determine, develop, support,
and promote products or services that are rooted in its local culture, community resource, creativity,
connection, and competitive advantage. OTOP covers only tangible products and skills-based services.6

The list below enumerates the featured products of each municipality/city.

1. Agoo – mushroom
2. Aringay – bangus/milkfish
3. Bacnotan – honey
4. Bagulin – soft broom
5. Balaoan – sea urchin
6. Bangar – handloom weaving
7. Bauang – grape farm
8. Burgos – colored soft brooms
9. Caba – bamboo industry
10. Luna – pebble beach/tourism
11. Naguilan – basi
12. Pugo – furnishing products
13. Rosario – furnitures
14. San Fernando City – soft broom
15. San Gabriel – highland vegetables
16. San Juan – pottery
17. Santol – Labtang baskets
18. Sto. Tomas – daing
19. Sudipen – baskets
20. Tubao – corn

Pangasinan

Pangasinan is the largest province in Region I, composing 58% of the regional population, 42% of its area
and 61% of its economy. It is the third largest rice-producing province in the country, beaten by the
provinces of Nueva Ecija and Isabela, respectively.7 In Region I, it shares 62% of the total regional rice
production.

Its corn production is the highest observed in the country, named as sixth highest-producing province in
the Philippines. Pangasinan is also the leading producer of mongo (48%), watermelon (76%), tomatoes
(24%), sweet potatoes (52%) and cassava in the region.8

Pangasinan is also known as the Fish Bowl in Region I, with 117% fish sufficiency and the top milkfish
(bangus) producing province and number 4 in producing tilapia in the Philippines. Pangasinan alone
produced 135,737 metric tons of fish out of the regional output of 157,275 metric tons or 86 percent.

6
https://www.dti.gov.ph/programs-projects/otop
7
https://psa.gov.ph/sites/default/files/MajorCrops10-14.pdf
8
http://www.pangasinan.gov.ph/ppdo/2016/07/21/social-service-profile/
The tables below list the leading product and industries of the province. Figure 3 maps out the locations
of the respective leading industries in Pangasinan.

AGRI/NON-MANUFACTURED PRODUCTS
PRODUCT LOCATION
Rice Province-wide
Yellow Corn Malasiqui, Bayambang, Basista, Alcala, Urbiztondo, Sto.
Tomas, San Jacinto
Vegetables (Fruits and Leafy) Asingan, Sta. Maria, Villasis, Tayug, Urdaneta City, Sta.
Okra, squash, eggplant, tomato, beans, ampalaya, etc. Barbara, Rosales

Mango Sta. Barbara, San Carlos City, Malasiqui, Sual, Aguilar,

Labrador, Calasiao, Bugallon, Manaoag,
Aquaculture products (bangus, malaga) San Fabian, Dagupan City, Bani, Binmaley,
Labrador, Lingayen, Bolinao
Bamboo Burgos, Agno, San Carlos City, Sta. Barbara, Urbiztondo
Onion Alcala, Bayambang, San Manuel

MANUFACTURED/PROCESS GOODS
PRODUCT LOCATION
Buri-rattan Basketwares Manaoag, Pozorrubio, Calasiao, San Carlos City
Bamboo-based Home Furnishings San Carlos City, Basista, Urbiztondo, Sta. Barbara,
Burgos
Antique Reproduction (home furnishings) Sison, Bugallon, Dagupan City
Carved Wooden Furniture Lingayen, Binmaley, Sison, San Carlos City
Bricks, Clay Tiles & Potteries Sta. Barbara, Binmaley, San Carlos City, San Nicolas
Cutleries (swords, knives & bolos) Calasiao, Mangaldan, Pozorrubio
Coco Pastile (bocayo) Dagupan City, Lingayen
Noodles (bijon) Calasiao, Dagupan City, Alaminos City, Urdaneta City,
Binmaley
Sugar Cane/Palm Vinegar/Fruit Wine/Vinegar Binalonan, Bugallon, Lingayen, Laoac,
San Fabian, Dasol, Villasis, Anda
Fish Paste/Sauce (bagoong/patis) Lingayen, Bolinao, Mangaldan
Salt Anda, Dasol, Infanta, Bani, Bolinao, Alaminos City, San
Fabian
Cement Sison
Deboned/Processed Bangus Dagupan City, San Fabian, Binmaley, Calasiao,
Alaminos City
Feeds Binalonan, Villasis
Cornik Binalonan
Native Cake Calasiao (puto), Mangaldan, Villasis, Mangatarem
(tupig)
Sawali Bugallon, Labrador
Dried Fish San Fabian, Sual, Bolinao
Candles Manaoag, Sta. Barbara, Alcala
Processed Meat Mangaldan, Alaminos City, Lingayen
Nata de Coco Sta. Barbara
Duhat/ Bignay Wine Dasol, Bugallon, Villasis, Binalonan (basi/tuba)
Fish Cracker Bayambang
Hollow Blocks Aguilar, Labrador
 Walis Tambo Bautista

Figure 3. LEADING INDUSTRIES OF PANGASINAN

Figure 4 illustrates the investment priorities of the province as determined by the Department of Trade
and Industy and the local government.

Figure 4. INVESTMENT PRIORITY AREAS OF PANGASINAN

BAGUIO
Baguio City is known as the Summer Capital of the Philippines and remain to be a prime tourist destination
area of Northern Luzon. In Cordillera Autonomous Region, 89% of tourist arrivals accounted for are in
Baguio City. Almost always, tourists either come to the City or pass through on their way to other
destinations.

Region 3

Region 3, also known as Central Luzon is known as the Rice Bowl of the Philippines.

Sto. Tomas, Pampanga

Sto. Tomas is a 4th class municipality, is the smallest and youngest in the province of Pampanga. The
capital city of San Fernando bounds it on the north-west the municipality of San Simon on the north-east,
the municipality of Minalin on the south-east and Bacolor on the west.

It is politically subdivided to 7 barangays. It is mainly an agricultural and fishing community, with ceramics,
carpentry, casket-making, trading and agriculture as their main industries. Also known as the “Casket
Capital of Central Luzon”, it houses 300 family-owned casket businesses, producing 24,000 caskets per
month.

The local government also promotes the industry through the Sabuaga Festival, which has been held every
Easter Sunday since 2010, featuring the products of the villages: Pottery in Sto. Niño Sapa, agriculture in
Sto. Rosario, fishery in Poblacion, garments in Moras dela Paz, caskets in San Vicente, stainless jeepneys
in San Matias, and poultry in San Bartolome.9

Balagtas, Bulacan

Balagtas is a first-class municipality in the province of Bulacan. It is 30 km away from Manila and 15 km
away from the provincial capital, Malolos. It is surrounded by the towns of Guiguinto, Plaridel, Pandi,
Bocaue and Bulacan. It was formerly known as Bigaa and was renamed in honor of the poet Francisco
Balagtas, in which the town is his birth place. It is composed of 9 barangays, all classified as urban. Its
major industries were agriculture, fishing, ceramics/pottery, furniture, garments, gifts/houseware/decors
making and metalcraft.

The North Food Exchanged, which was conceived in the late 1990s, had a groundbreaking ceremony in
2008 led by President Arroyo. The 5.2-hectare site in Balagtas as designed to become the processing,
storage and trading center of agricultural products from provinces north of Metro Manila.10 State-run
Development Bank of the Philippines approved the P536.3-million loan to finance the agricultural
trading center that would construct three buildings, housing around 969 stalls for agricultural, fishery,
poultry and livestock products; groceries; processed foods; as well as fast food and commercial

9
https://business.inquirer.net/217855/coffin-capital-of-ph-stays-alive
10
https://www.philstar.com/nation/2008/12/08/421724/gma-lead-groundbreaking-north-food-exchange-
today#RWbWKhO7T4fmivO9.99
establishments, among others. It would also host also host grain terminals, freezers, warehouses,
slaughterhouses, wet markets, as well as transportation and recreational support facilities.11

In 2012, DoTC announced the rehabilitation and construction of 31 municipal ports in different parts of
the country in anticipation of the increased passengers and cargo throughput in the Philippines.12 In
2013, DoTC awarded to L.R. Tiqui Builders the contract of implementation of the Balagtas Port
Development in constructing the Balagtas Municipal Port located between the barangays San Juan and
Wawa in Balagtas, Bulacan.13 The port terminal is said to ferry passengers and goods along the Balagtas
River.

The latest development would be the phase 3 of the Plaridel Bypass road funded under an extended
financial assistance of JICA to the Philippines through loan agreement PH-P266 amounting 9.399 Billion
Japanese Yen signed on February 2018.14 Bulacan is seen as instrumental in the thriving economy of
Central Luzon according to NEDA, after posting 9.5% increase in its contribution to the GDP in 2016. The
proposed new road networks to be constructed are seen to help boost the economy of Central Luzon,
one of which would be a development of the full Balagtas interchange. Northbound and southbound
access roads from the Balagtas interchange would also be constructed. 15

11
http://www.bworldonline.com/content.php?section=Economy&title=dbp-approves-p536-m-loan-for-bulacan-
farm-trading-center&id=34073

12
http://www.officialgazette.gov.ph/2012/08/30/dotc-to-construct-refurbish-31-municipal-ports/

13
http://dotr.gov.ph/images/Public_Bidding/CivilWorks/Maritime_Sector/2012/BalagtasBulacanPDP/NTP.pdf

14
http://www.dpwh.gov.ph/dpwh/news/13239

15
https://www.rappler.com/business/209142-look-bulacan-road-network-improvement-projects
Additional sources used:

Figure 5. PALAY: VOLUME OF PRODUCTION IN METRIC TONS, PER REGION, BY PROVINCE

Source: Major Crop Statistics of the Philippines 2010-2014, PSA

Figure 6. TOP RICE PRODUCING PROVINCES