TYPES OF INDUSTRIES ZANETA E.

CATURAS, MBA
SPECIFIC OBJECTIVES
At the end of the lesson, the learners will be able to:
1. Identify the different types of industries;
2. Distinguish the different services/products of business and
industry; and
3. Identify the top ten exports and import product of the country.
 THE AGRIBUSINESS
A business that earns most or all of its revenues from agriculture. An
agribusiness tends to be a large-scale business operation and may
experiment in farming, processing and manufacturing and / or the
packaging and distribution of products.
About 12 million Filipinos work in the agriculture sector. If the country can
significantly increase its exports and imports of agricultural goods,
agricultural provinces would generate much greater revenue, provide more
employment opportunities, and lessen poverty in rural areas. This is
especially important for Mindanao, the country’s breadbasket that has
great underdeveloped potential for agricultural exports.
The Philippine agricultural sector comprised 19% of GDP in 2009 and
employed 34% of the labor force. Yet agricultural products made up only
8.3% of total Philippine agricultural exports and Philippine agricultural
exports were the smallest of the ASEAN-5. table 22 contains agricultural
exports and imports of the ASEAN-6 (less Singapore) for 2009 and shows
that the Philippines exported US$3.2 billion, a very small amount
compared to Indonesia, Malaysia, Thailand, and Vietnam. On the five
economies, only the Philippines imported more agricultural goods than it
exported. Agricultural exports for the other four economies made
significant, positive contributions to their trade balances.

About 12 million Filipinos work in the agricultural sector. If the country can
significantly increase its exports and imports of agricultural goods,
agricultural provinces would generate much greater revenue, provide more
employment opportunities, and lessen poverty in rural areas.
This is especially important for Mindanao, the country’s breadbasket that
has great underdeveloped potential for agricultural exports.
New free trade agreements coming into effect in ASEAN presents both
challenges and opportunities to the agricultural sector.
Luzon is the country’s largest island. It hosts many agribusiness cluster and
account for about 55 million out of 103 million of the Philippine market.
Metro Manila, Laguna, Cavite, Rizal and Bulacan (“Expanded Metro
Manila”) have some 24 million consumers.
Central Luzon and Calabarzon supply food to over 12 million Metro
Manilans. The regional firms are mostly domestic market-oriented in
contrast to Mindanao’s agribusinesses. Central Luzon accounted for 13.7%
of the total national agriculture production in 2013, followed by Socsargen
9.3%, and Calabarzon 8.8%. Similar ranking apply for the fisheries
subsector.
Calabarzon has 40% of the country’s total manufacturing output, Metro
Manila 21%, and Central Luzon 13%. No breakdown for food manufacturing,
but Calabarzon should be leading other regions like the Central Visayas and
Davao. The four leading agribusiness provinces are Bulacan, Laguna, Batangas
and Pampanga. Outward expansion are in Cavite, Rizal, Tarlac, Pangasinan
and Quezon.

The provinces around Metro Manila have benefited from large local markets
as well as good logistics. However, prices for land and labor are rising. The
rising cost of property and the encroachment of subdivisions could mean that
owners of hogs and poultry farms in Bulacan, Batangas, and Laguna will sell
out and look for another locations, or altogether get out of the business.
Expansion to other areas faces bureaucratic red tape from barangay officials
who have the major say in approvals. There are already cases of fishpond
expansion in the South whose permit takes over one year to secure. Local
governments have become stumbling blocks to investment and job creation.
Philippine agriculture needs to fully explore the multitude of new market
opportunities these Free Trade Agreements (FTAs) present. The Philippine
Government has the means to inform the agricultural sector of the best new
export opportunities, while also developing – in consultation with the
private sector – strategies to deal with potential threats to domestic
production. For example, what should be done when an influx of lower cost
processed poultry and pork arrives from neighboring countries such as
Thailand? Are these models for local farmer to enable them to continue their
present businesses of raising chicken and pigs?

Competitiveness also requires a level of playing field for Philippine

exporters. By contrast with the EU – where there are constant efforts to
level the playing field among member countries – the ASEAN region lacks
appropriate policies and rules.
Filipino farmers are capable farmers. However, they face high domestic
transport, labor, and other production costs. The cost of Philippine labor
is many times lesser than in our neighboring countries. Insecticides cost
twice as much in the Philippines as elsewhere in the region.

Because the country is archipelagic, domestic transportation costs are

high. Bureaucratic “overkill” is also a problem. Why does a new ethanol
plant need Department of Agriculture (DA), Bureau of Internal Revenue
(BIR), Department of Environment and Natural Resources (DENR), and
other government personnel to often “inspect” it? Aggressive steps by
both the public and private sectors are needed to solve these problems.
Some local Philippine poultry integrators and commercial hog raisers
have the potential to export to new FTA markets. The Philippines enjoys an
advantage because some parts of the country are free from foot-and-
mouth disease (FMD), and the whole country may be declared FMD free in
the future.

The Philippines has also been free of Avian Influenza. Although

production costs for hogs and poultry are relatively higher in the
Philippines, the most efficient local commercial farms are able to reduce
costs significantly and can be competitive.

Backyard farms, which raise only a few animals, face a more serious
challenge under the new FTA trading regime. They are less efficient yet
comprise 60% of the subsector according to industry experts. Their small
scale deprives them of efficiencies needed for competitive export
production and marketing.
Although once ahead, the Philippines is now many years behind Thailand
in integrating small farms into larger agribusiness enterprises. Nevertheless,
the Philippines has successfully demonstrated that large agribusiness
ventures that harness many small farmers are possible.

SMC proved this form of partnership with its Cassava Assembler

Program. Over 4-5 years, 30,000 hectares were put into production by
small farmers, 80% in Mindanao and the rest in Luzon and growers,
services the loans from cassava crops, and provides technical and some
administrative support. In this model, the cassava may be used for ethanol
for domestic fuel blending.
Thailand’s leading agribusiness firm Charoen Pokphand Foods (CP) has
started operations in the Visayas and is another example of how the
model of integration with small farmers can succeed in this country. CP
integrates small farmers within its corporate system. All farm infrastructure
is in the hands of the farmers. CP owns the supply of hogs the farmers
grow. Farmers are partners. This model has made Thailand an agricultural
powerhouse. The integration is deep and extensive, and includes farmers
sitting on corporate boards.

Another local example of integration is the business relationship of Nestle

with 30,000 small Filipino coffee growers. A non-automotive division of
Toyota Tsusho Corporation, which deals in energy and food products, is
reportedly discussing with DOLE the sourcing of biodiesel from jatropha
plants to be grown at least 200,000 hectares in southern Mindanao for
export to Asian and European markets. Jatropha was chosen because it
requires minimal water and does not compete with edible crops.
Jatropha is a species of
flowering plant in the splurge
family, Euphorbiaceae, that is
native to American tropics. When
jatropha seeds are crushed, the
resulting jatropha oil can be
processed to produce a high-
quality biofuel or biodiesel that
can be used in a standard diesel
car or further processed into jet
fuel, while the residue (press
cake) can also be used as
biomass feedstock to power
electricity plants, also used as
fertilizer (contains nitrogen,
phosphorus and potassium), or as
animal fodder.
There is an interesting model in
Mindanao in the Middle of a conflict
area. This model reverses the usual
pattern of achieving peace before
development is possible. Agribusiness
firms Unifrutti and La Frutera brought
development and peace to several
municipalities of Sultan Kudarat and
Maguindanao. They found local
champions in the late Moro Islamic
Liberation Front (MILF) leaders Hashim
Salamat and Datu Paglas who wanted to
see investment and job creation for their
communities.
Underdeveloped lands were planted to
export bananas and several thousand
jobs were created and the project has
prospered for over a decade. There
are large tracts of agricultural lands in
southern Bukidnon province and in
Autonomous Region of Muslim
Mindanao (ARMM) where similar
partnership projects could be initiated.
LIST OF AGRIBUSINESS IN THE PHILIPPINES
A lot of people do not want to engage in soil tilling, dirt shoving and
back breaking task in the farming fields because they think it’s not worth
it, low income, dirty job, no nightlife. Well…think again because the
truth is most of the agriculture business in the Philippines are profitable
business, a good money maker and enjoyable and exciting career…and
yes, farmers have nightlife too!

In this blog post we will talk about one of the money making business
ideas in the Philippines; the agricultural business, so go get a cup coffee
or a tea, a few cookies to chew and prepare to absorb the information
that will help you to decide about your chosen agricultural business.
1. Hog Raising

Many people use pork meat to cook

their favorite viands. Actually it is one
of the most consumed meat in the
Philippines which means there will
always be a huge chunk of market for
hog raisers.
2. Poultry Raising

Everybody loves fried chicken! Who doesn’t?

poultry meat especially chicken meat have a
huge market share in Filipino marketplaces
(palengke) and supermarkets. That is why
poultry raising is a good money maker
especially if you will learn the advance
techniques, right now there are chickens who
are ready to be sold in less than 45 days!
Chickens can also be raised for its egg, and
that a different story.
Finding the best supplier of chicks in your area is a must, sturdy
chicks means lower mortality rate and higher sales. Next thing you
need to learn is the use of the right dosage of antibiotics and
vitamins also the proper feeding methods, this way you can save
money and resources. Of course learning how to market your farm
produce is a must, it will be hard but rewarding in the long run
because you will get more profit for your products.
3. Cattle Raising
Tagged as best source of protein,
cattle raising is also considered to be a
great money maker because you only
need a good pasture which consist of
different healthy grass and proper
care for your cattles and you will
surely get a nice profit worthy of your
time especially if you’re breeding your
own cattle. You can either raise a cattle
for its meat and raising dairy for milk.
Both can deliver money in your pocket
as long as you learn the methods of
taking care of it.
Mastering the breeding methods and upgrading the breed of your
cows is a must for maximum profit acquisition. Check out legitimate
cattle breeders in the Philippines that offers AI insemination, this way
you can upgrade your cattles. Also learn how you improve your
pasture, most backyard cattles get lack of nutrition from poor
grazing, growing different kinds of nutrition rich grass in the pasture
can make your cattles healthier and grows faster. Nutrients rich
pasture fields is extremely important if your raising dairy cows, lack
of nutrition will halt their milk production.
4.Goat Raising
Known for being a delicacy in some parts
of the country, goat meat is steady
gaining popularity in Metro because of its
delicious and tender milk and incredibly
healthy milk known to match the nutrient
content of mother’s milk.
Raising goat in the Philippines is not that hard, just like cattle raising,
you need to improve your breed, Boar goat breeds are best suited
for meat production while Anglo-Nubian is great milk producer. Since
the goat are part of the ruminant family, a steady supply of fresh
grass is a must in order to get maximum nutrition for faster growth
and better meat or milk produce. Sell your produce in the
marketplace, goat meat have its niche market in big marketplace so if
your selling in bulk make sure to find goat meat vendors and offer it
to them.
5. Rice Farming

Every Pinoy eats rice. Have you not?

Despite a lot of issues about rice farming in
the Philippines being dead because of the
little support coming from the Government,
rice farming is still a great agricultural
business in the Philippines.
If you want to become a rice farmer but
you don’t possess a huge farming fields,
then consider renting from other farmers.
Some farmers are renting their farming
fields, it can to your operations expenses
but it can be recovered once harvest time
approaches.
To further increase your grain harvest, try visiting the International
Rice Research Institute (IRRI) in Los Baños Laguna just in front of
South supermarket. Learn the most advance methods of rice
farming which includes the best variety of rice to grow in a certain
weather or irrigation conditions, pest resistant varieties and fruitful
varieties. Learning the modern agriculture technology can boost
your income in any agricultural business.
6. Vegetable Farming

Do you have a green thumb? Do you

love growing vegetables? Or maybe
you’re planning to start growing
vegetables for profit? Planting veggies
is a good agribusiness if you learn how
to plant off-season varieties. This way
you can avoid selling your products on
a dirt cheap price, which means higher
profit for aspiring farmer like you.
To ensure a more yields and pest resistant variety, choose a hybrid
vegetable seeds from your local seeds supplier. There are many high
value vegetables in the Philippines that you can grow some of them
are:
a. Tomato
b. Sweet Bell Pepper
c. Cucumber
d. Bitter Gourd or Ampalaya
e. String Beans
f. Egg Plant or Talong etc.
7. Fish Pens

Raising your own catfish, oyster,

pranws, pangasius, bangus or tilapia is
fun and exciting business, each species
needs different environment to grow
either fresh or salt water. If you want
to start your own fish pen business then
you must learn a lot about the fish that
you want to raise and the desired area
where you will put your fish pen.
Since the waters in Bulacan and Cavite area also the Laguna de
Bay are not the same 10 years ago, you need to study carefully.
Though there are still good waters in other parts of the country that
can be suitable for fish pens. Consulting the Bureau of Fisheries and
Aquatic Resources can help a lot if you really want to pursue your
fishing business.
8. Corn Farming

Corn always have a market so it’s

good idea to try growing some, a
hybrid corns can yield more than
ordinary ones so make sure to consult
your seeds supplier what hybrid corn
seeds are best in your location. You can
either grow corn that are used for
animal feeds or sweet corn used for
human consumption.
It will be better to find someone who will buy your products once
harvest time arrive, especially if you’re growing on a large scale
production and still a newbie. But its much wiser if you will be the
one to market your own farm produce, learning the techniques of the
“biyahero” and applying it four your own use. This way you can get
more profit and enjoy the luxury of being a farmer, remember that
agriculture business is not just farming but marketing and proper
planning and strategy is also a must.
That’s just some of the in-demand agricultural business in the
Philippines, there are still a lot of profitable agribusiness out there.
These are:

a. Processed Fruit and e. Mango Seed Oil

Vegetables f. Fisheries
b. Seaweeds g. Dairy
c. Tropical Fruit Purees and h. Bioethanol
Juices i. Biofuels
d. Fresh Tropical Fruits j. Coco Methyl Ester
 THE MANUFACTURING
The process of converting raw materials, components, or parts into
finished goods that meet a customer’s expectations or specifications.
Manufacturing commonly employs a man-machine setup with division of
labor in a large scale production.
To establish a small manufacturing enterprise, entrepreneur needs to
be strong manufacturing enterprise, an entrepreneur needs to be a
strong willed person who has the desire to succeed no matter the many
predicaments that may arise.
For one, there are many laws and regulations that govern the
manufacturing industry. The entrepreneur will be required to conform to all
the licensing bodies may it be the government or the local authority’s
requirements. Add to this, there are numerous licenses required, depending
on the line of manufacturing you are contemplating to enter to.
These requirements are not limited to small companies alone but to the
whole manufacturing industry. It does not matter where you are based in
the world, you will have to adhere to the requirements, otherwise, you will
not be allowed to carry out your manufacturing business.
These rules, laws and manufacturing regulations are mostly concerned
with health, any type of pollution and the quality of the manufactured
products. What a person or a group need to know is that getting all these
very necessary documents may take time, so they have to be patient.
Some of the best small manufacturing ideas that can be carried out
at you home include:

1. Furniture Making

This falls under small home based

manufacturing section of an enterprise.
Furniture such as lockers, bookshelves,
showcases, chairs, tables etc. will
always be required by the society at
large. This being so, it is a very viable
option to start yourselves a furniture
manufacturing business, in fact, you are
going to do very well in it.
2. Drinking Water Business
Every living organism uses water to quench its
thirst. Human beings are not left, they need water
regularly to purify and cool their body systems.
There is no other quencher than pure natural
water. Here, a person could earn good money by
tapping into this everlasting natural mineral that
is very essential for human survival. Without
sweet water, there is no life anywhere. Now-a-
days, it has become the norm to see people
carrying small bottles of mineral water which
they buy in stores. This being the case, one can
start their own water packing business at their
own home to sell these packages to stores.
3. Soap Manufacturing Business
This is another business a person may
venture in. if you go to the shopping
mall, it is full of different soap brands.
This should deter you from
manufacturing another broad of soap
but if you can come up with a unique
soap you are always going to have a
market ready for your product.
Furthermore, this type of manufacturing
entity does not require a huge amount
of startup capital.
4. Commercial Bread Baking

Everybody from kids to their

grandparents loves bread. They use
this product daily and on regular
intervals. This makes it a very viable
business consideration for any business
minded entrepreneur. One advantage
of starting this business is, the start-up
capital is minimal, and, you can do it at
your own home comfortably.
The large number of small and medium enterprises (SMEs) greatly
contributes to the economic growth and industrial progress of developing
countries. They are valuable to the manufacturing industry of the
Philippines. Globe expansion and growing economic integration allows
SMEs to be potential product exporters. Through using locally available
materials, SMEs have the opportunity to manufacture food and non-food
products in small and medium scale.

Manufacturing remains a critical force in both advanced and developing

economies. But the sector has changed, bringing new opportunities and
challenges to business leaders and policy makers.
 MANUFACTURING THE FUTURE
The next era of global growth and innovation, presents a clear view of
how manufacturing contributes to the global economy today and how it
will probably evolve over the coming decade.
Findings indicates the following points:

1. Manufacturing’s Role is Changing. The way it contributes to the

economy shifts as nations mature: in today’s advanced economies,
manufacturing promotes innovation, productivity, and trade more than
growth and employment. In these countries, manufacturing also has begun
to consume more services and to rely more heavily on them to operate.
Globally, manufacturing continues to grow. It now accounts for
approximately 16 percent of global GDP and 14 percent of
employment. But the manufacturing sector’s relative size in an economy
varies with its stage of development. It is found out that when economies
industrialize, manufacturing employment and output both rise rapidly,
but once manufacturing’s share of GDP peaks–at 20 to 35 percent of
GDP–it falls in an inverted U pattern, along with its share of
employment. The reason is that as wages rise, consumers have more
money to spend on services, and that sector’s growth accelerates,
making it more important than manufacturing as a source of growth and
employment.
2. Manufacturing is not Monolithic. It is a diverse sector with five distinct
groups of industries, each with specific drivers of success. No two
manufacturing industries are exactly alike; some are more labor- or
more knowledge-intensive. Some rely heavily on transportation, while
for others, proximity to customers is the critical issue. It identified five
broad manufacturing segments and analyzed how different production
factors influence where they build factories, carry out R&D, and go to
market.

The largest segment by output (gross value added) includes industries such
as autos, chemicals, pharmaceuticals. These industries depend heavily on
global innovation for local markets – they are highly R&D intensive – and
also require close proximity to markets. The second-largest segment is
regional processing, which includes industries such as printing and food
and beverages, the smallest segment, with just 7% of global
manufacturing value-added, produces labor-intensive tradable.
3. Manufacturing is entering a dynamic new phase. As a new global
consuming class emerges in developing nations, and innovations spark
additional demand, global manufacturers will have substantial new
opportunities – but in a much more uncertain environment. By 2025, a
new global consuming class will have emerged, and the majority of
consumption will take place in developing economies. This will create
rich new market opportunities. Meanwhile, in established markets,
demand is fragmenting as customers ask for greater variation and
more types of after-sale service. A rich pipeline of innovations in
materials and processes – from nanomaterials to 3-D printing to
advanced robotics – also promises to create fresh demand and drive
further productivity gains across manufacturing industries and
geographies.
 NEW APPROACHES FOR MANUFACTURERS
Companies must develop a highly detailed understanding of specific
emerging markets, as well as the needs of their existing customers. They will
also require agile approaches to the development of strategy – using
scenario planning rather than point forecasts, for example. And they will
have to make big bets on long-range opportunities, such as tapping new
markets in developing economies or switching to new materials, but must do
so in ways that minimize risk.
A critical challenge for manufacturers will be able to approach footprint
decision in a more nuanced way. Labor-intensive industries will almost always
follow the path of low wages, but others, with more complex needs, must
weigh factors such as access to low cost transportation, to consumer insights,
or to skilled employees. The result could very well be a new kind of global
manufacturing company – a networked enterprise that uses “big data” and
analytics to respond quickly and decisively to changing conditions and can
also pursue long-term opportunities.
For policy makers, supporting manufacturing industries and competing
globally means that policy must be grounded in a comprehensive understanding
of the diverse industry segments in a national or regional economy, as well as
the wider trends affecting them. For example, shapers or energy policy need
to consider which segments will be affected by higher or lower energy costs,
how great the impact is likely to be, and what magnitude or difference will
trigger a location decision. Policy makers should also recognize that their
long-term goals for growth, innovation, and exports are best served by
supporting critical enablers for manufacturers (such as investing in modern
infrastructure) and by helping them forge the connections they will need to
access rapidly growing emerging markets.
Two key priorities for both governments and businesses are education and the
development of skills. Companies have to build R&D capabilities, as well as
expertise in data analytics and product design. They will need qualified,
computer-savvy factory workers and agile managers for complex global
supply chains. In addition to supporting ongoing efforts to improve public
education – particularly the teaching of math and analytical skills – policy
makers must work with industry and educational institutions to ensure that
skills learned in school fit the needs of employers.
 RETAIL AND SERVICES
Retail is the process of selling consumer goods or services to customers
through multiple channels of distribution to earn a profit. Demand is
created through diverse target markets and promotional tactics, satisfying
consumers’ wants and needs through a lean supply chain. In the 2000s, an
increasing amount of retailing is done online using electronic payment and
delivery via a courier or post mail. Retailing includes subordinated services,
such as delivery. The term “retailer” is also applied where a service
provider services the small orders of a large number of individuals, rather
than large orders of a small number of wholesale, corporate or
government clientele.
Shops may be on residential streets, streets with few or no houses,
or in a shopping mall. Shopping streets may be for pedestrian
only. Sometimes a shopping street has a partial or full roof to
create a more comfortable shopping environment protecting
customers from various types of weather conditions such as extreme
temperatures, winds or precipitation. Online retailing, a type of
electronic commerce used for business-to-consumer (B2C)
transactions and mail order, are forms of non-shop retailing.
 TYPES OF RETAIL PRODUCTS
Retail is usually classified by the following type of products:
1. Food products – typically require cold storage facilities.
2. Hard goods or durable goods hardline retailers – automobiles,
appliances, electronics, furniture, sporting goods, lumber, etc., and parts
for them. Goods that do not quickly wear out and provide utility over time.
3. Soft goods or consumables – clothing, other fabrics, footwear, cosmetics,
medicines and stationery. Goods that are consumed after one use or have
a limited period (typically under three years) in which you may use them.
4. Arts – Contemporary art galleries, bookstores, handicrafts, musical
instruments, Gift shops, and supplies for them.
 INTERNATIONAL TRADE
International trade is the exchange of capital, goods, and services across
international borders or territories, which could involve the activities of the
government and individual. In most countries, such trade represents a
significant share of gross domestic product (GDP). While international trade
has been present throughout much of history its economic, social, and political
importance has been on the rise in recent centuries. It is the presupposition of
international trade that a sufficient level of geopolitical peace and stability
are prevailing in order to allow for the peaceful exchange of trade and
commerce to take place between nations.
Trading globally gives consumers and countries the opportunity to
be exposed to new markets and products. Almost every kind of
product can be found on the international market: food, clothes,
spare parts, oil, jewelry, wine, stocks, currencies and water. Services
are also traded: tourism, banking, consulting and transportation. A
product that is sold to the global market is an export, and a
product that is bought from the global market is an import. Imports
and exports are accounted for in a country’s current account in the
balance of payments. (Samuelson, 2001).
Historically, the Philippines have been an important center for commerce
for centuries for its ethnic minority, namely, the Chinese who were also its
first occupants. The archipelago has also been visited by Arabs and
Indians for the purpose of trading in the first and early second millennium.
As of 21st century, the country is member in several international trade
organizations including the Asia-Pacific Economic Cooperation (APEC),
Association of Southeast Asian Nations (ASEAN), and the World Trade
Organization (WTO).
Since 1980s, the Philippines have opened their economy to foreign
markets, and established a network of free trade agreements with several
countries. The United States is one of the Philippines top trading partner. In
2010, according to US Department of Commerce, trade between the
Philippines and US amounts to US$15.4 billion. US is also the Philippines
largest foreign investor, with foreign direct investment close to US$10
billion at the end of 2014.
Under the Aquino administration, the government opened up the country
to more foreign investment in industries such as business processing
operations, mining and tourism. However, this move may be hindered by
restrictions such as a prohibition of foreign ownership of land and public
utilities.

The country’s total external trade in goods in 2014 reached $127.500

billion, expanding by 7.0 percent from $119.108 billion in 2013. the
positive growth of the external trade was due to the increase of both
inward and outward trading of goods. Total imports went up by 4.8% to
$65.398 billion in 2014 from $62.411 billion in 2013. Likewise, total
export receipts accelerated by 9.5% from $56.698 billion in 2013 to
$62.102 billion in 2014. the country’s balance of trade in goods (BOT-G)
registered a $3.296 billion deficit in 2014 from $5.713 billion deficit in
2013 (Philippine Statistics Authority).
 TOP 10 EXPORTS ACCOUNTED FOR 82.0% OF
TOTAL EXPORT RECEIPTS
Export sales from the top ten exported commodities totaled to $50.913
billion, accounting for 82.0% of the total export revenue in 2014. this
registered an increase of 12.3% from $45.334 billion in 2013.
Electronic Products continued to be the top earner and major exported
commodity for 2014 with 43.1% of the total exports and which
accelerated by 11.9% from $23.931 billion in 2013 to $26.790 billion.
Other Manufacturers placed second with a share of 8.2% and a total
receipt of $5.079 billion. It declined by 7.5% from the 2013 value of
$5.491 billion.
Machinery and Transport Equipment contributing 6.4% of the total
export receipts, was the third top export in 2014 with revenue amounting
to $3.978 billion, posting the highest increase of 90.5% among the top
ten exports.

Woodcrafts and Furniture, which ranked fourth with a share of 5.4%,

declined by 0.1% from $3.337 billion to $3.334 billion in 2014.

Other Mineral Products with share of 4.3%, ranked fifth with export
receipts of $2.645 billion. It increased by 41.8% from the 2013 value of
$1.865 billion.
Rounding up the List of top 10 exports for 2014 were:

1. Chemicals with an export value of $2.603 billion, decreased by

0.6% from $2.620 billion in 2013;
2. Ignition Wiring Set and Other Wiring Sets Used in Vehicles, Aircrafts
and Ships with proceeds billed at $2.050 billion, gained by 18.4%
from $ 1.731 billion in 2013.
3. Articles of Apparel, worth $1.854 billion, expanded by 17.3%.
4. Metal Components with $1.377 billion export receipts, decreased by
18.3%; and
5. Coconut Oil, worth $1.203 billion, rose by 19.6% from $1.006 billion
export receipts in 2013.
 TOP 10 IMPORTS ACCOUNTED FOR 74.*% OF
IMPORT BILL
Total payment for the country’s top ten imports for 2014 reached
$48.888 billion or 74.8% of the total import payment, registering a
positive growth of 4.6% from $46.738 billion in 2013.
Electronic Products, remained as the top imported commodities for 2014,
accounting for 23.4% of the total import bill. It posted a decrease of
1.4% from $15.511 billion in 2013 to $15.297 billion in 2014.
Mineral Fuels, Lubricants and Related Materials ranked second with
20.2% share and increased by 0.4% to $13.189 billion in 2014 from
$13.140 billion in 2013.
Transport Equipment which ranked third, comprised 9.5% of the total
imports, and increased by 0.2% from $6.223 billion in 2013 to $6.238
billion in 2014.
Industrial Machinery and Equipment, ranked fourth, recorded a 5.0%
share and grew by 1.5% to $3.243 billion worth of imports from
$3.194 billion recorded value in 2013.
Other Food and Live Animals ranked fifth with 3.4% share of the total
imports worth $2.237 billion, higher by 23.5% from $1.812 billion in
2013.
Rounding up the List of top 10 imports for 2014 were:

1. Plastics in Primary and Non-Primary Forms, $2.076 billion, registering

the highest increase among the top ten imports by 38.8%;
2. Iron and Steel, $1.809 billion, increased by 24.0%;
3. Miscellaneous Manufactured Articles, $1.709 billion, expanded by
25.7%;
4. Cereals and Cereal Preparations, $1.702 billion, went up by 33.3%;
and
5. Telecommunication Equipment, $1.388 billion or an increase of 9.5%.
 JAPAN ACCOUNTED FOR 15.0% OF THE TOTAL TRADE
The country’s top 10 trading partners contributed a total trade worth
$98.145 billion or 76.7% of the total external trade in 2014. this
comprised a total export receipt of $52.170 billion or 84.0% of the total
exports and total import bill of $45.975 billion or 69.7% of the total
imports. This registered a favorable balance of trade-in goods (BOT-G)
which amounted to $6.195 billion.
Japan was the country’s top trading partner in 2014, accounting for a
total trade worth $19.154 billion or 15.0% of the country’s total trade.
Exports to Japan totaled $13.901 billion while imports were valued at
$5.252 billion, posting a trade surplus of $8.649 billion.
Electronic Products got a large share of 22.5% of the total exports to
Japan valued at $3.129 billion, followed by Woodcrafts and Furniture
at $3.023 billion or 21.7%. On the other hand, majority of the imported
products from Japan were Electronic Products billed at $1.714 billion or
32.6% and Transport Equipment with $928.95 million or 17.7%.

People’s Republic of China was the country’s second largest

trading partner in 2014 with total trade worth $18.337 billion or
14.3% of the total trade. Export receipts from China stood at $8.467
billion while payment for imports was valued at $9.870 billion, resulting
to a $1.402 billion trade deficit. Export-wise, the biggest sales came
from Electronic Products at $3.935 billion or 46.5% of the country’s
exports to China. Other Mineral Products followed with total receipts of
$1.681 billion or 19.9%.
Imported goods purchased from China consisted of Electronic Products
worth $1.889 billion or 19.1% of the country’s total imports. Minerals,
Fuels, Lubricants and Related Materials followed with imports of
$947.79 million or a share of 9.6%.

USA placed third accounting for 11.2% or 414.339 billion total trade
in 2014. Receipts from exports to USA were valued at $8.661 billion
while payment for imports totaled to $5.738 billion, reflecting a trade
surplus of $2.922 billion. Majority of the exports were Electronic
Products worth $3.180 billion or 36.7% of the total exports to USA and
Articles of Apparel with $1.125 billion or 14.0% share. Major inward
shipments from USA were Electronic Products with payment worth
$2.445 billion or 42.6% of the total. Cereals and Cereal Preparation
ranked second and valued at $553.99 million or 9.7% of the total.
Singapore ranked as the fourth largest trading partner of the
country for 2014 with a total trade amounting to 9.043 billion or a
share of 7.1% to total trade. Total outward shipments were valued at
$4.451 billion while import payments reached $4.592 billion, recording
a trade deficit of $140.77 million. Electronic Products and Petroleum
Products were the country’s major exports to Singapore with earnings of
$3.120 billion or 68.7% share and $356.51 million or 7.9% of the total
exports, respectively. The bulk of inward commodities from this country
were Electronic Products with import bill of $1.884 billion of 41.0%
share, and Mineral Fuels, Lubricants and Related Materials worth
$908.34 million or 19.8% share.
Republic of Korea was the country’s fifth largest trading partner in
2014 with total trade worth $7.664 billion or 6.0% of the total external
trade. Export revenues from this country stood at $2.561 billion while
payment for imports was valued $5.083 billion, resulting to a $2.523
billion trade deficit. The major exported goods were Electronic Products
at $816.30 million or 31.9% and other manufacturers with total receipts
of $774.09 million or 31.9% and Other Manufacturers with total
receipts of $774.09 million of 30.2% of the country’s export to Korea.
However the main imports from this country were Minerals, Fuels,
Lubricants and Related Materials which worth $2.286 billion or 45.0%
and Electronic Products with import payments valued at $1.068 billion
or 211.0%.
 FIGURE 4: MAJOR TRADING PARTNERS OF THE
PHILIPPINES OF 2014
Imports from
Exports to

Malaysia, China, Peoples

1.90%
Thailand, Republic of,
Others, 16.00% Others, 30.30% 15.00%
3.80% Japan, 22.40%
USA, 8.70%

Taiwan, 3.90% Japan, 8.00%

USA, 13.90%
Korea, Republic
Singapore, of, 7.70%
China, People's Thailand, 5.30% Singapore,
7.20%
Republic of, Hong 7.00%
Hong Kong, 13.60% Taiwan, 6.70%
8.90% Kong,
Korea, Republic 2.50%
of, 4.10%
Germany,
Germany, 4.10%
4.30%
Malaysia,
4.70%