THE ECONOMY’S

PRODUCING
SECTORS
APPLIED ECONOMICS
Three main producing sectors:
1. Agriculture, Fishery and 3. Service
Forestry A. Trade
B. Transportation,
2. Industry Communication and
A. Manufacturing Storage
C. Banking and Finance
B. Construction D. Public service
C. Electricity, Gas and Water (government)
E. Real estate
D. Mining and Quarrying F. Private services
Agriculture, Fishery and
Forestry
THE ECONOMY’S PRODUCING SECTORS
Agriculture, Fishery and Forestry
The Agriculture, Fishery and Forestry sector reaps the
fruits of natural resources like the soil, water, and forests.
Agriculture
Agriculture is the practice of cultivating crops, raising
livestock, and managing natural resources to produce
food, fiber, and other essential products. It encompasses a
wide range of activities, from planting and harvesting
crops to breeding and caring for animals.
Types of Agriculture
1. Conventional Agriculture
2. Organic Agriculture
3. Agroforestry
4. Aquaponics
5. Precision Agriculture
Conventional Agriculture
Conventional agriculture refers to the prevalent and widely
practiced approach to farming. It involves the use of synthetic
inputs such as chemical fertilizers, pesticides, and herbicides to
maximize crop yields. Conventional farmers often engage in
monoculture, cultivating a single crop over a large area. While this
method can achieve high productivity in the short term, it is
associated with concerns regarding soil degradation, water
pollution, and biodiversity loss.
Organic Agriculture
Organic agriculture focuses on minimizing the use of synthetic
inputs and emphasizes the use of natural resources to promote soil
health and biodiversity conservation. Organic farmers rely on
natural fertilizers, such as compost and manure, and adopt practices
like crop rotation and integrated pest management to maintain the
long-term sustainability of their farms. Organic farming not only
reduces environmental impacts but also produces healthier food
with lower pesticide residues, attracting consumers who prioritize
sustainability and health.
Agroforestry
Agroforestry combines the cultivation of trees with agricultural
crops or livestock on the same land. This approach enhances
biodiversity, improves soil fertility, and provides ecosystem
services such as carbon sequestration, water regulation, and habitat
creation. Agroforestry systems offer numerous benefits, including
increased resilience to climate change, diversified income streams
for farmers, and improved resource efficiency through nutrient
cycling. Examples of agroforestry practices include alley cropping,
silvopasture, and windbreaks.
Aquaponics
Aquaponics is a sustainable farming technique that combines
aquaculture (fish farming) with hydroponics (soil-less plant
cultivation in nutrient-rich water). In this closed-loop system, fish
waste provides nutrients for plants, while the plants filter and
purify the water for the fish. Aquaponics conserves water,
minimizes nutrient runoff, and maximizes land productivity. This
innovative approach is gaining popularity, particularly in urban
areas, due to its potential for year-round crop production and
efficient resource utilization.
Precision Agriculture
Precision agriculture integrates technology, data analysis, and
site-specific management to optimize crop production and resource
use. It involves the use of tools such as remote sensing, GPS, and
variable-rate technology to precisely monitor and control inputs
like water, fertilizers, and pesticides. By mapping variability within
fields and applying inputs accordingly, farmers can minimize
waste, reduce environmental impacts, and maximize yields.
Precision agriculture holds great promise for increasing
productivity while minimizing resource consumption, making it
increasingly relevant in the face of global food security challenges.
The challenges of Philippine agriculture
1. Small farm size; 78 percent farms are less than 3 hectares. – Farms have
shrunk due to rapid population increase. More houses are built at the expense of
agriculture. Arguably, the land reform program was seen to address this concern
but with limited or no success.
2. Land Conversions. Almost the same as the first one. Additionally, urban
landscape and land uses have been re-defined that even agricultural areas are
now part of the so called Metropolis.
3. Lack or absence irrigation systems. Irrigation is one of the most if not, the
most important factor in agriculture. The worsening climate change impact
necessitates irrigation and its appropriate engineering and technology must be
put in place in order to make agriculture productive
The challenges of Philippine agriculture
4. Inadequate management programs on soil, pests and diseases. Impact of
climate change invites infestations as studies have shown. Without adequate
research and funding for this purpose famines might not be far at hand.
5. Reduced farm labor. Industrialization and modernization detached from
agriculture alienates many of the Filipinos especially the rural youth. While this
is a global phenomenon other countries cope to this major gap in their labor force
but not the Philippines.
6. Expensive and inappropriate agricultural and farming equipment. The
ARB’s and the Filipino farmers can only hope for the services and farm
assistance from the government. Acquisition of advanced and modern farm tools
and equipment remains a privilege
The challenges of Philippine agriculture
7. Climate change and natural disasters. Philippines is officially identified as
one of the top 20 countries prone to natural calamities notwithstanding the
dramatic decrease of forest covers, dead water tributaries caused largely human
activities.
8. Inadequate technology transfer mechanisms. Our technology regarding
agriculture is not given enough attention. Our country lacks machinery and
technology to improve our produce. We lag behind compared to South East
Asian neighbors.
Fishery
A fishery is an area where fish are caught for commercial or
recreational purposes. It can be a defined body of water or a
collection of fishing activity that have been agreed upon by
countries and fishers. You often have different fisheries for each
target species of fish or shellfish.
Philippine Fisheries
There are three types of fisheries in the Philippines:
1. inland capture fisheries
2. Aquaculture
3. marine capture fisheries
Inland capture fisheries
Inland capture fisheries involve
fishing in enclosed freshwater
areas like lakes, reservoirs, rivers,
estuaries, and natural brackish
water (mixed seawater and
freshwater) fishponds.
Aquaculture
Aquaculture refers to all
fisheries that involve culturing
and raising aquatic species under
controlled conditions in
freshwater, brackish water, and
marine water areas. One example
is the Oyster farm in Cambuhat
River, Bohol.
Marine capture fisheries
Marine capture fisheries are used to harvest a huge variety of fish
for industrial and recreational purposes. They provide food and job
security and play an important role in the global fish population
and marine ecosystems.
Marine capture fisheries are divided into two, namely, commercial
fishing and municipal fishing.
Commercial fishing
Commercial fishing is catching
fish and seafood with the use of
fishing vessels that are more than
three gross tonnages (Gross
tonnage is the total volume of a
boat). The group of fishers uses
trawls, long lines, ring nets, lift
nets, and purse seines to catch
large quantities of seafood for
commercial profit, trade or
business.
Municipal fishing
Municipal fishing is done
within municipal waters
(including lakes, streams,
inland bodies of water, etc.)
with the use of simple gears
and vessels of three gross tons
or less. Fisherfolks use
motorized or unmotorized
banca boats and gillnets,
handlines, small ring nets, and
traps.
Destructive Fishing in the Philippines
For efficiency and more catch, some Filipino fishers have depended
on destructive fishing methods. The most common in the
Philippines is cyanide and blast fishing (also known as dynamite
fishing).
Cyanide fishing
Cyanide fishing is pouring sodium
cyanide into the fish's habitat or coral
reef to paralyze the fish and make it
easier to catch alive. This practice
started in the 1960s as a way to
supply the international aquarium
trade. Soon, it became a method for
Filipino fishers who supply live fishes
for restaurants in Hongkong,
Singapore, and mainland China.
Blast fishing,
Blast fishing, or "dynamite
fishing", is another quick and
destructive method because it
kills more than just fishes. The
explosives used in this method set
off underwater and destroy the
coral reefs, leaving nothing but
rubble. It can affect the marine
biodiversity in the area, from sea
turtles to sharks and other marine
species.
The Effects of Destructive Fishing
Practices
With uncontrolled and destructive fishing practices, there will
be lesser seafood to catch in the later years. Coral reefs, fishes
and other aquatic animals can no longer live and spawn in a
healthy environment.
The seafood that we eat could be contaminated with cyanide
and other harmful chemicals. Fisheries production will deplete
since more juvenile fishes are caught every day. A few fishes
that survived do mature and spawn, but it will never be
enough to sustain and suffice the population.
Forestry
Forestry, the management of
forested land, together with
associated waters and wasteland,
primarily for harvesting timber.
Deforestation or forest clearance
is the removal and destruction of
a forest or stand of trees from
land that is then converted to
non-forest use.
 Causes deforestation in the Philippines:
1. Logging: Both legal and illegal logging contribute to deforestation. Logging operations
clear large areas of forest land, leading to habitat loss and soil erosion.
2. Forest Fires: Forest fires, often exacerbated by dry conditions, destroy large portions of
forests. These fires can be natural or human-induced.
3. Kaingin Farming (Slash-and-Burn Agriculture): Traditional slash-and-burn agriculture,
known locally as “kaingin,” involves clearing land by burning vegetation. While it provides
short-term agricultural space, it leads to long-term deforestation and soil degradation.
4. Mining Operations: Mining activities have significantly impacted Philippine forests.
Large-scale mining operations clear forested areas, leading to water contamination,
ecological destruction, and loss of biodiversity.
5. Conversion to Agricultural Land: The need to feed a growing population has led to the
conversion of forests into agricultural land. Unfortunately, this often results in unsustainable
farming practices, further contributing to deforestation.
INDUSTRY
THE ECONOMY’S PRODUCING SECTORS
Industrial Sector
The Industrial Sector supposedly processes raw materials
from agriculture, fishery, and forestry into intermediate
products that are further processed into final products.
 Categories of Industrial Sector
1. Manufacturing is processing raw materials or parts into finished goods through the use
of tools, human labor, machinery, and chemical processing.
2. Construction, the process of building and forming the structure of a building or any
other component.
3. Electricity, Gas and Water. The utilities sector includes companies that provide basic
services such as water, electricity, and gas to customers. These companies operate as
producers or distributors of power.
4. Mining. The mining sector is the industry that locates and extracts metal and mineral
reserves around the world. The mining sector produces both precious and industrial-use
metals and other raw materials that are used in jewelry-making, industrial applications,
and investments.
SERVICE
THE ECONOMY’S PRODUCING SECTORS
Service sector
The Service Sector produces the intangible supporting
and complementing production in the other sectors as
long as among its own industries.
 Categories of Service Sector
1. Trade refers to the sale and delivery of an intangible product, called a service,
between a producer and consumer.
2. Transportation, communication and storage
A. Transportation: This sector includes the provision of passenger or freight transport,
whether scheduled or not, by various means such as rail, pipeline, road, water, or
air.
B. Communication: This sector is focused on the transmission of information
through various mediums, including telecommunication networks, radio,
television, and the internet.
C. Storage: This sector deals with the warehousing and storage of goods
throughout the supply chain.
 Categories of Service Sector
3. Banking and Finance. The banking industry is the foundation of the financial
services group. It is most concerned with direct saving and lending, while the
financial services sector incorporates investments, insurance, the redistribution
of risk, and other financial activities.
4. Public Service. A public service or service of general (economic) interest is any
service intended to address specific needs pertaining to the aggregate members
of a community.
5. Real Estate. The real estate industry is the profession of buying, selling, or
renting land, buildings, or housing1. It also involves the development,
management, owning, and selling of assets.
Thank you