PERFIL

 

 
CITY SOCIO ECONOMIC PROFILE
 

Volume II Part I
POPULATION AND LAND USE

Chapter III
The Local Economy

 

2.3.2.5        Agricultural Marketing

         Palay Marketing

It was cited that about 70% of the local requirement for palay is being imported from General Santos City, Iloilo City and Zamboanga del Sur. However, during peak season of harvest for palay production, palay is exported to Basilan, Jolo, Tawi-Tawi, and Zamboanga del Norte (Siocon).

 

        Vegetable Marketing

Discussions on vegetable marketing are directly drawn from the marketing and Information Needs Assessment Report, Zamboanga City of the Bureau of Agricultural Statistics (1994).

Vegetables are mostly produced in barangay La Paz in Zamboanga City. Vegetables raised include Baguio beans, cabbage, carrots, Chinese petchay, and native pechay.

Vegetables are sold by the farmers on wholesale basis at the farm level to traders and middlemen and are available the whole year round. The peak of production and trading are during the months of November to January. Vegetables produced in Zamboanga City are traded in Sulu, Basilan and Tawi-Tawi.

During lean months (February to October), the city imports vegetables from other areas like Cagayan de Oro City, Negros Oriental, Metro Manila and Zamboanga del Sur. Vegetables are also imported from Pagadian (tomato) and General Santos City (e.g., cabbage, Baguio beans).

There are several participants in the marketing of vegetables in Zamboanga City. The farmers produce the vegetables in their own farms. These are normally purchased from them on wholesale basis by the barangay assembler. A barangay assembler buys vegetables from one barangay and sells it to traders. There are also interregional distributors who source vegetables from two or more regions and sell to retailers as well as to buyers outside the province.

There are suppliers or buyers outside the province who buy vegetables from Zamboanga city and sell vegetables in their province. Retailers sell vegetables directly to the consumers, the end users.

 

          Banana Marketing

There are at least four varieties of banan grown in Zamboanga city. These are the latundan, lakatan, and bungulan, and gardaba.

Bananas are grown in Zamboanga City the whole year round. The peak-trading season is from August to October. Lean months are from January to April. Farmers produce the banana in their own farms and sell their produce to large distributors. There are also farmers who sell their produce to large distributors and buyers outside of the province. The retailers buy banana from large distributors and sell in the market (BAS, 1994).

Geographically, though, bananas are being traded in Zamboanga City and then supplied within the city, Zamboanga del Norte and Metro Manila.

 

 

         Fish Marketing

Most of the fish produced at the commercial level in Zamboanga city is unloaded at the Sangali Fish landing Center. Tuloy and galunggong are the major species. Fish species handled for the export market include squid, octopus, lobster and other large fish species

The Boulevard Fish Landing Center is a small fish-landing center that can accommodate only two vessels at a time. The said landing center handles many small fish species in small volumes. The fish species commonly landed are tuloy and galunggong.

Small fisherman sells to the assemblers, exporters, and retailers or directly to the consumers. The commercial fisherman sells to exporters, buyers outside of the province to buy the fish. The retailers sell fish to consumers and usually have stalls in the market.

Geographically, fish are traded in Zamboanga City. These are distributed to Zamboanga City, Metro Manila, Zamboanga del Norte, Cagayan de Oro City, and Lanao del Norte.

 

2.3.2.6        Agrarian Reform

              Scope of the Comprehensive Agrarian Reform Program (CARP)

A total of 187, 839 hectares of agricultural lands are considered under the CARP. Of these, 110, 257 hectares are private agricultural lands (PAL) and 87, 582 hectares are classified as non-PAL1. Private agricultural lands tenanted rice and corn lands covered by presidential Decree No. 27, Voluntary Offer to Sell (VOS), Voluntary Land transfer (VLT0, lands foreclosed by Government Financial Institutions (GFIs), and lands under Compulsory Acquisition (CA).2

 

              CARP Accomplishment

As of first semester of 1997, a total of 176, 782 hectares of agricultural lands have already been acquired and distributed under the CARP in Zamboanga City. These constitute about 94% of the targeted CARP scope in the City.

Disaggregation of date on accomplishment by type of land revealed that the land tenure improvement (LTI) aspect of the CARP has been completed (i.e., 100% accomplished) among non-PAL (both KKK lands and settlements). Moreover, there are 100% CARP accomplishments among tenanted rice and corn lands under the PD 27 Agrarian Reform Program.

High percentages of accomplishment are also noted for land under the VLT (97%), GFIs (96%), and VOS (90%). The unfinished business of agrarian reform mainly involves lands for compulsory acquisition of greater than 24 to 50 hectares in which only about one-third of the target has been acquired and distributed. These are the medium-sized agricultural lands, which are quite difficult to acquire.

 

 

            Figure III-12.   Market Channels for Vegetables, Zamboanga City

 

            Figure III-13.   Geographic Flow of Banana, Zamboanga City

 

 

            Figure III-14.   Market Channels for Fish, Zamboanga City

 

 

            Figure III-15.   Geographic Flow of fish, Zamboanga City

 

 

Table III-17.   Land Distribution Status By Land Type/Mode Of Coverage, 1972 – 1st Semester 1997

Land Type

CARP Scope

Accomplish-
ment

(%)

Balance

Tenanted Rice/Corn

VOS

VLT

GFI-owned

CA (greater than 50 (has)

CA (greater then 25-50 has)

CA (greater then 5-24 has)

       Total (PAL)

KKK Lands

Settlements

      Total (Non-PAL)

Grand Total

10, 820. 00

22, 746. 00

31, 357. 00

9, 985. 00

6, 914. 00

5, 924. 00

12, 493. 00

100, 257. 00

63, 772. 00

23, 810. 00

87, 582. 00

187, 389. 00

10, 820. 00

20, 542. 00

30, 473. 00

9, 545. 00

5, 281. 00

1, 851. 00

10, 688. 00

89, 200. 00

63, 772. 00

23, 810. 00

87, 582. 00

176, 782. 00

 

100. 00

90. 31

97. 18

95. 59

76. 38

31. 15

85. 55

88. 97

100. 00

100. 00

100. 00

94. 11

0.00

2, 204. 00

884. 00

440. 00

1, 633.00

4, 091. 00

1, 805. 00

11, 057. 00

0.00

0.00

0.00

11, 057. 00

 

  

            Land for Acquisition and Distribution

To date, there are 11, 057 hectares of land for acquisition and distribution under the CARP in Zamboanga city. These mostly include some 7, 529 hectares of land under Compulsory Acquisition and 2, 204 hectares of land under the Voluntary land Transfer.

 

            Agrarian Reform Communities (ARCs)

To date, there are four ARCs in Zamboanga City. These are located in the barangays of Buenavista, Sta. Rita, Lumayang, and Patalon. These are the areas where there is 100% accomplishment on LTI, i.e., and the delivery of support services to CARP beneficiaries are focused on these ARCs. It could be noted that the delivery of support (and even social) services in these areas ARCs are anchored on the cooperatives existing in the respective areas.

 

            Land Use Conversion

There are eight applications for land use conversion with the DAR from January 1991-August 1997. About 146. 58 hectares of land are being applied for conversion. Of these areas, about 73% are being applied for conversion to industrial areas. The rest of the areas are for residential purposes. While the area being applied for conversion may appear very minimal. There may also be cases of illegal and/or undocumented land use conversion.

 

 

2.3.3   Trade and Industry

2.3.3.1 Business Establishments

Based on the recent Barangay land Use Survey, actual count of business establishments total 8, 121. The breakdown of which is shown in Table III-18.

 

Table III-18.   Business Establishments, Zamboanga City
 

Functions/Services

No. Of Establishments

TOTAL

8, 121

 

 

Manufacturing:

422

            Agro-processing

179

            Handicrafts

26

            Bakery

208

            Coco-oil Mill

9

 

 

Agriculture:

485

             Agri-aqua farm

322

             Lower Farms

43

             Poultry/Piggery

120

 

 

Trade:

5, 112

              Sari-sari Store

4, 591

              Grocery

161

              Shopping mall

18

              Supermarket

4

              Flea market

84

              Pamilihang Bayan

5

              Drugstore

81

              Hardware

82

              Appliance Store

37

              Flower shop

49

 

 

Transportations and Communications:

131

              Trucker/Cargo Handling

51

              Oil/Gas Depot

20

              Shipyard

6

              Radio Station

30

              TV Station

7

               Boating Facilities

17

 

 

Table III-18.   (Cont’d) Business Establishments, Zamboanga City
 

Functions/Services:

No. Of Establishments

 

 

Tourism-Related

188

              Resorts

23

              Travel Agency

15

              Disco Club/Ballroom

10

              Pension House

10

              Swimming Pool

7

              Hotel

6

              Inn

3

              Cultural Center

3

              Sports Complex/Stadium

4

              Lodging House

15

              Restaurant

92

 

 

Agriculture Support

225

              Rice Mill

90

              Corn Mill

15

              Slaughter House

9

              Warehouse (palay)

111

 

 

Community, Social and Personal

1, 558

              Movie house

57

              Cockpit

8

              Motel

17

              Bowling Alley

2

              Karaoke/Videoke

86

              Beerhouse

129

              Carinderia

449

              Others

810

 

 

2.3.3.2  Industries

Major Industries

Based on export figures for almost a decade (1989-1997), there are four (4) major industries in the city. These are as follows:

            Processed marine-based products

            Coconut-based products

            Furniture and wood products

            Gifts, toys and house wares

Table III-19 below shows that the processed marine-based products (composed primarily of canned tuna and other marine/aquaculture products) compose almost 60% of the total exports; followed by coconut-based products, 32%; furniture/wood products, 6%; and gifts, toys and house wares, 1%.

Table III- 19.   Export Performance, FOB Value (In Million US$), Zamboanga City,
1989-1997 (January-July)

Major Industries

1989

1990

1991

1992

1993

1994

1995

1996

1997

Total

% Share

Coconut-Based Products

 

 

32.687

20.02

30.085

44.81

77.182

56.478

43.848

313.11

32.52

Processed Aqua-marine Products

30.63

29. 46

55.682

54.02

61.591

74.536

98.543

93.234

78.517

576.22

59.85

Processed Food

 

 

 

0.001

 

0.032

0.503

0.306

0.166

1.008

0.10

Gifts, Toys and House wares

0.819

0.956

1.161

1.721

2.102

1.65

1.396

1.755

1.046

12.606

1.31

Furniture/ Wood Products

16.82

18.44

11.298

5.721

2.269

4.115

0.204

0.892

 

59.767

6.21

Total

48.27

48.87

100.82

81.48

104.04

125.14

177.82

152.66

123.57

962.71

100%

 

 

Figure III-18 shows the trading flows of these commodities from Zamboanga City

 

 

 

Figure III-16.  Export Performance, FOB Values, Zamboanga City

 

 

 

 

 

Figure-17.   Export Performance of Major Industries,

Zamboanga City, 1987-1996

 

 

 

 

Figure III-18.   Export Trade for Zamboanga City, January-June, 1997

                                    (In Million Dollars)

 

 

 

Processed Marine Products

Marine-based products processors have continuously been in the major export earners of the city. For the past five years, exports of processes marine-based products averaged 50, 000 MT annually. In 1997, January-June exports figures reveal that the city has already exported 41, 842 MT. Thus, it is expected that it will surpass the average annual exports for the year.

Table III-20. Average Annual Exports, Processed Marine Products (Volume In Million Kgs.), Zamboanga City, 1992-1996

Product

1992

1993

1994

1995

1996

Total

Average

Canned Tuna

46. 708

25. 036

27. 283

35. 720

34. 067

168. 814

33. 763

Bottled Sardines

 

 

 

0. 001

0. 001

0. 002

0. 001

Pet foods

3.761

7. 572

5.899

5. 633

6. 674

29. 559

5. 912

Fish Meat

 

1. 834

0. 504

0. 398

 

2. 736

0. 912

Fresh/Dried Fish

0. 098

0. 032

0. 079

0. 010

0. 007

0. 226

0. 045

Dried Sea cucumber

 

 

 

0. 016

0. 024

0. 040

0. 020

Processed Marine Products

2.420

1.515

4. 165

5. 023

3. 589

16. 712

3. 342

Seaweeds

0.512

1.530

4. 354

8. 866

13. 511

29. 273

5. 855

Total

53.519

37.519

42. 784

55. 667

57. 873

247. 362

49. 850

 

The top export is canned tuna, which totaled US$ 414. 55 million or 72% of the exports of the industry and followed by pet food, fish meal and bottled sardines for the same period. Other products are either fresh or semi-processed as dried and frozen. These are exotic marine products such as octopus, cuttlefish, squid, lobster, oyster, seaweeds, sea sponges, sea cucumber, shark fin/liver oil/meat/skin and a variety of exotic shells.

At present, there are 46 registered producers in the city, either selling in the domestic market or exporting worldwide.
 

Table III-21.   Export Performance, FOB Value (In Million US$), Processed marine-Based products, Zamboanga City, 1989-1997 (January-July)

Products 1989 1990 1991 1992 1993 1994 1995 1996 1997 Total Ave. % Share
Canned Tuna 26. 168 22.640 48.810 42.647 46.400 53.631 67.507 65.479 41.267 414.549 46.061 71.91%
Bottled Sardines             0.001 0.001   0.002 0.001 0.00
Pet Food 0.865 1.691 1.312 4.125 8.064 7.318 7.499 7.443 2.856. 41.173 4.575 7.14
Fish Meal         1.299 0.209 0.138     1.646 0.549 0.29
0.045 0.045 0.0244 0.064 0.053 0.035 0.436 0.038 0.070   0.985 0.123 0.17
Dried Sea Cucumber             0.029 0.072   0.101 0.051 0.02
Processed Marine Products 3.320 4.312 5.300 7.170 5.096 10.443 16.511 18.899 28.554 99.515 11.057 17.26
Seaweeds 0.326 0.582 0.196 0.250 0.697 2.499 6.821 1.270 5.840 18.481 2.053 3.21
Total 30.634 29.469 55.682 54.245 61.591 74.536 98.544 93.234 78.517 576.452 64.470 100.00%
Source: DTI

Seven (7) producers exporting 33, 763 metric tons to U.S.A., Canada, Japan are producing canned tuna, and European Union markets. Pet foods and seaweeds are exported to Japan, New Zealand, Australia, U.S.A., Canada and France in increasing volume.

 

            Figure III-19.   Export Performance, FOB Value (In Million US$)

                        Processed Marine-Based Products, Zamboanga City

 

There are 26 producers of other processes marine products who export to U.S.A., European Union, (Spain, Germany, Finland), Japan, HongKong, Taiwan, China, South Korea and Canada.

Table III-22.   Market/Production Profile, Processed Marine Products, Zamboanga City

Product

No. Of Producers

Production

Ave. Annual Exports (kg)

Market

Canned Tuna

7

21, 600 mt/year

190 tons/day

10, 000 boxes/month

33, 763

U.S., Canada, Japan, EU (UK, Belgium, W. Germany, Switzerland, Sweden), Domestic Market

Bottled Sardines

1

n. d.*

0.001

n. d.

Pet Food

1

n. d.

5. 912

Japan

Fish Meal

2

n. d.

9.12

n. d.

Fresh/Dried Fish

6

10, 000 Boxes/mo.

0. 045

Davao, Cebu, Manila, Cotabato

Processed Marine Products

26

n. d.

3. 362

U.S.A., Canada, Japan

Seaweeds

11

1,440 mt

5. 855

New Zealand, Australia, Japan, U.S.A., Canada, France, Domestic Market

Non-Precious Corals/ Sea shells

19

n. d.

0. 401

S. Korea, U.S.A., Japan, Canada, EU

(Italy, U.K., France, Germany)

 

*n. d. – no date

The area around the City is known to have exotic marine resources, thus allowing the industry to enjoy an adequate supply of raw materials

Aside from the abundance of raw materials, the City has a fishing port complex with a refrigeration capacity of 815 MT, and which could provide the much needed support facility for the industry. However, this is not enough. Refrigerated vans are inadequate to transport the products abroad. There is also a concern for poor handling and lack of skilled labor in the industry

The industry has high potentials as evidenced by recent investments (See Table III-23 below):

Table III-23.   Processes Marine-Based Products, BOI-Registered Investments, Zamboanga City, 1994-1997

Year

Product/Activity

Type of project

Project Cost (In P million)

Employment

1994

Export producer on Prawn

Processed Food or Canned Tuna

Cold Storage

Canned Pet Foods

Existing

 

 

New

 

New

New

8.2

 

 

72.628

 

11. 716

77. 742

 

 

 

2, 035

 

8

50

1996

Tuna Fishing

New

171. 6

168

1997

Refined Carrageenan, Semi-carrageenan & Chips

New

190

100

Total

 

 

531. 886

2, 361

 

            Coconut Based Products

 

There are three (3) major registered coconut producers capable of crushing 1, 030 metric ton copra per day.

Products of the city include coconut oil, coconut-solvents/pellets. Coconut oil is exported mainly to China, Europe and U.S.A. For almost a decade, the industry has already exported US$ 313.112 million worth of products or an average of US$ 34. 79 annually. Exports have been erratic though, with 1995 as the banner year, registering US$ 77. 182 million exports. From 1992-1995, the volume of exports increased, but it dropped in 1996 to 98.588 metric tons from the previous years of 190. 489 metric tons.

 

Table III-24.   Export Performance, Coconut-Based Products, FOB Value (In Million US$), 
             Zamboanga City, 1989-1997 (January-July)

Product 1989 1990 1991 1992 1993 1994 1995 1996 1997 Total Ave. Share
Coconut Oil     27.620 20.022 31.944 39.937 70.970 52.260 37.723 280.476 40.068 89.27
Coco Solvents/Pellets     5.071 2.813 4.402 4.872 6.212 4.218 2.621 30.209 4.316 12.36
Deodorized Oil                 0.824 0.824 0.824 2.36
Coconut Oil                 2.670 2.670 2.670 7.65
Coco Acid Oil Distillates 0               0.011 0.011 0.011 0.03
Total .000 0.000 32.691 22.835 36.346 44.809 77.182 56.478 43.849 314.190 34.910 100.00
Source: DTI

In 1997, the industry has diversified to exporting deodorized oil, Cochin oil and coco-acid distillates, which together with the usual exports of coconut and coco solvents/pellets generated 88, 516 metric tons of exports for January-July.

 

Table III- 25.   Export Performance, Coconut-Based Products (Volume in Million Kg.), Zamboanga City, 1992-1997 (January-July)

 

Product

1992

1993

1994

1995

1996

1997

Total

Ave.

Share

Coconut Oil

Coco Solvents/Pellets

Deodorized Oil

Coconut Oil

Coco Acid Oil Distillates

Total

32.250

24.500

 

 

 

56.750

72.078

40.950

 

 

 

113.028

82.041

54.045

 

 

 

136.086

117.533

72.956

 

 

 

190.489

69.109

29.179

 

 

 

98.288

56.899

26.400

1.200

4.000

0.017

88.516

429.910

248.030

1.200

4.000

0.017

683.157

71.652

41.338

0.200

0.667

0.003

113.860

62.93

36.31

0.18

0.59

0.00

100.00

 

Source: DTI

In 1995, a newcomer to the industry invested P1.43 million for the processing of organic chemicals: Cauric Acid, glycerine, and short chain fatty acid, employing 500 persons.

 

Furniture and Wood Products

The industry is a sunset industry in Zamboanga City. Export figures show that the industry has generated nil exports earnings for the past two years. In previous years, products exported included plywood, veneer, and other wood products, rattan components, furniture components, wood tiles and others. Since 1995, exports of wooden furniture have generated US$ 1.332 million for 413 metric tons of products.

 

 

 

 

Figure III-20.   Export Performance, Coconut-Based Products,

FOB Value (In Million US$), Zamboanga City, 1989-1997 (January-July)

 

 

 

Figure III-21.   Export Performance, Coconut-Based production

Volume in Million Kg.), Zamboanga City, 1992-1997 (Janueary-July)

 

Table III-26.   Export Performance, Furniture and Wood Products, FOB Value (In Million US $), Zamboanga city, 1989-1997 (January-July)

Product

1989

1990

1991

1992

1993

1994

1995

1996

1997

Total

Ave.

Share

Plywood

6.314

12.429

5.832

2.836

1.619

 

 

 

 

29.021

5.804

46.89

Lumber

6.760

 

 

 

 

 

 

 

 

6.760

6.760

10.92

Veneer

3.659

6.797

4.518

2.659

0.885

3.793

 

 

 

22.311

3.719

36.05

Wooden Spacer

0.001

 

 

 

 

 

 

 

 

0.001

0.001

0.00

Other Wood Products

 

0.072

0.484

0.002

0.038

0.247

 

 

 

0.843

0.169

1.36

Charcoal

0.010

0.050

 

 

0.658

 

 

 

 

0.718

0.239

1.16

Lumber Core

 

 

0.005

0.156

 

0.053

 

 

 

0.214

0.071

0.35

Platform Lumber

 

 

0.469

0.068

 

 

 

 

 

0.537

0.269

0.87

Wood Tile

 

 

 

 

0.55

0.022

 

 

 

0.077

0.039

0.12

Wooden Furniture

 

 

 

 

 

 

0.204

0.892

0.236

1.332

0.444

2.15

Rattan Components

0.073

 

 

 

 

 

 

 

 

0.073

0.073

0.12

Furniture Components

0.006

 

 

 

 

 

 

 

 

0.006

0.006

0.00

Total

16.823

19.348

11.299

5.721

3.255

4.115

0.204

0.892

0.236

61.893

17.593

100.00

 

Source: DTI

 

There are five (5) registered producers of lumber, veneer, plywood and parquet in the City, and two (2) furniture makers. Some investments on related products are as follows:

Table III-27.   Registered Producers of Wood-Related Products

Year

Product/Activity

Type of Project

Project Cost (In P million)

Employment

1994

Particle Board

New

129.84

61

1996

Stainless Steel Panel Board

New

4.00

40

Total

 

 

133.84

101

 

                Source: DTI

 

Within the recent economic development in the city brought about by the Regional Agro-Industrial Center (RAIC), the ZAMBOECOZONE and BIMP-EAGA initiatives, the industry could provide the needed backward linkages for a construction industry. Wood manufacturers such as furniture components, parts and furnishings have high potentials.

 

Gifts and Housewares

At present there are 46 producers in the gifts and Housewares industry which include producers of woodcraft, shell craft, ceramics, leather craft, novelty items, hand-woven cloth, dried and artificial flowers/plants, Christmas decors and other manufactures gift items. It is reportedly dominated by cottage-type enterprises due to the low capital requirement of its operation.

The industry is one of the dollar earners for the city with exports amounting to US$ 12.274 million for almost a decade now. The highest exports were registered in 1993 when US$ 2.102 million products were sold abroad. Button blanks, rubber cup lump and shell craft dominated the exports of the industry to U.S.A., Japan and European Union (Greece, Italy and Netherlands).

 

Table III-28.   Export Performance, Gifts and Housewares Industry, FOB Value (In Million US$), Zamboanga City, 1989-1997 (January-July)

Product

1989

1990

1991

1992

1993

1994

1995

1996

1997

Total

Ave.

%Share

Button Blanks

0.451

0.580

0.665

0.319

0.985

0.660

0.389

0.445

0.134

4.628

0.514

37.70

Shell Craft

0.291

0.233

0.401

0.207

0.320

0.723

0.692

0.641

0.367

3.875

0.431

31.57

D. Cowhide

0.010

0.058

0.079

0.091

0.110

0.110

0.130

0.130

0.075

0.793

0.088

6.46

Carabao Horn Stick

 

0.012

0.016

0.033

 

 

 

 

 

0.061

0.020

0.50

Handicraft

0.012

0.018

 

 

 

 

 

 

 

0.030

0.015

0.24

Retort Wheels

0.016

 

 

 

 

 

 

 

 

0.016

0.016

0.13

Woodcraft

0.028

 

 

 

 

 

 

 

 

0.028

0.028

0.23

Electric Switchboard

0.003

 

 

 

 

 

 

 

 

0.003

0.003

0.02

Brassier

0.001

 

 

 

 

 

 

 

 

0.001

0.001

0.00

Paint

0.000

 

 

 

 

 

 

 

 

0.000

0.000

0.000

Decoration Stones

0.006