Despite receiving minimal assistance and subsidy from the national government, the Philippine hog industry is considered the second leading contributor to the Philippine agricultural sector, coming only after rice production. It was estimated that in 2009, hog business raked in about PhP 160 billion in sales.

As of 1 January 2008, the country’s swine total inventory was estimated at 13.7 million heads, up by 1.8 percent compared to previous year’s level. Backyard farm initial stocks, however, was observed to experience a glut as total heads went down by as much as 1.00 percent. On the other hand, commercial farms inventory registered a 9.37 percent increase against initial stocks of 2007. About 71 percent of the total swine population are raised in backyard farms while 29 percent are in commercial farms.

The swine industry which accounted for 80 percent of total livestock production registered a 2.72 percent growth in 2007. The gain in production was noted during the 2nd and 4th quarters of 2007 when more animals were slaughtered.

In that same year, the average annual price received by farmers was PhP 71.26, or about 2.83 percent higher than the 2006 price. Similarly, the average wholesale price of live hogs in Metro Manila went up by 0.77 percent. Annual average retail price in Metro Manila increased by 0.83 percent from the record set the previous year.

The Bureau of Agricultural Statistics (BAS) stated that Philippine hog production dipped slightly from 1.89 tons in 2007 to 1.86 tons in 2008. The most notable decrease in stocks was due to the numerous losses caused by diseases like hog cholera, PRRS, Pseudorabies, Swine Flu and Circovirus. The disease scare was considered a major catastrophe by Luzon farmers that it forced many of them to sell their pigs prematurely for fear of getting hit by the continuing drop in market price while feeling the increase in prices of commercial feed as well as the basic ingredients like corn.

In terms of value, however, the pig sector posted an 11.29 percent increase with PhP 149.59 billion (US$ 3.16 billion) from PhP 134.42 billion (US$ 2.84 billion) in 2007. The BAS attributed the growth to improved farm prices which averaged PhP 80.61 (US$ 1.70) per kg in 2008 compared to PhP 71.27 (US$ 1.51) per kg in 2007.

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Everyone in the United States are expecting a total shopping chaos this coming weekend when the consumers take advantage of bargains offered by Black Friday and Cyber Monday deals. It was estimated that about 60 million shoppers will troop to their nearest shopping mall and online stores to get the best price available.

With U.S. economic conditions weak and as some leading retailers announced that they will open their bargain doors only on Thanksgiving Day this year, the competition for tight consumer dollars will be sharper than ever. This is an incentive enough to drive business owners to upgrade their infrastructure and transaction systems both at the brick and mortar stores and on their mobile online sites.

This year mobile Websites will be under an enormous pressure than ever before to perform fast and reliably given a new report from InMobi which reports that Black Friday and Cyber Monday will see an estimated 20-30 million consumers using their mobile devices to shop, research purchases or seek retail information.

For consumers Black Friday and Cyber Monday deals will mostly be dominated by electronics sale. It has been the most attractive category for several years now and everyone have seen some very low prices on laptops, digital cameras, cell phones and plasma televisions. This is also the ideal category for the savvy shopper who knows how to stretch their holiday shopping dollars.

To get ahead of other consumers, there are only two basic things that shoppers need to do. Try to organize their shopping and to anticipate crowds. Shopping on Black Friday is not a typical day at a shopping mall. The crowd may be two or even three times larger compared to ordinary days. Hence, it is even more important to know where to go and ho to go there. There are several Black Friday circulars already available and anybody can see this online to find the very best deals days or weeks before the sale. Taking the time to do this can help find exactly what product to purchase in time for the Christmas holiday.

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They say that in business, price is a major leg-breaker. Hence, the pricing method you select provides direction on how you want to set your product price in the market. The way you set prices in your business will eventually change for many reasons. And as you learn more about your customers and competition, you may decide to change your pricing method. Usually changes in the industry or the development stage of your product are the most significant indicator on whether it is time to review your pricing strategy.

Simply, pricing methods are a way to determine how a product will be priced. The following are the most common methods adopted to simplify the process of setting the price of products and services:

1. Cost-plus pricing
   
   This method allows you to cover all direct cost and then generate a profit. For example, you want a 20 percent profit from 100 units of a product that cost you PhP 1,000.00. You should sell the product for PhP 12.00.


2. Cost-based pricing
   
   This method uses unit costs of direct and indirect costs to determine the price. The cost-based pricing formula is [(VC x units sold) + FC = price per unit x units sold] x (100 + profit margin, expressed in percentage).
   
   Let us say your variable cost is PhP 30.00; fixed cost, PhP 500.00; units sold, 100; and target profit, 20 percent. Using the formula, your selling price must then be PhP 42.00 per unit, to cover your cost and make a 20 percent profit.
   
   Note that the price per unit, before adding the profit margin, is also the break-even point. The selling price must be PhP 42.00 to cover costs and make a 20-percent profit.


3. Percent food cost pricing
   
   This is a method based on the theory that food cost makes up about 40 percent of the product price. Using this method, simply multiply the food cost by 2.5 (40 percent x 2.5 = 100 percent).


4. Contribution pricing
   
   This method allows you to cover all direct cost (per product), and also allows a contribution toward indirect cost and profit. Let us say your indirect cost amount to PhP 1,000.00; desired profit, 30 percent (PhP 300.00); and contribution of PhP 20.00.
   The formula to follows is (IC + profit) / contribution = units to sell. Using this formula, you need to sell 65 units of the product to cover indirect costs and make a PhP 300.00 profit.


5. Working-back method
   
   This method is most useful for small businesses as it computes for the total costs and desired profits first. Use this formula: (total costs + profit) / units sold = price per unit.
   
   Let's say your total cost is PhP 1,000.00; units sold, 100; and desired profit is 50 percent (PHP 500.00). Your price per unit would be PhP 15.00. If this turns out to be higher than the price offered by your competitor, offer something more to the consumer to compensate for the higher price (i.e. free pick-up or delivery).

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Most foreigners and a few local residents of the Philippines are still thinking that the country is primarily an agricultural economy. Data, however, will show that, strictly speaking, it is not.

Products generated by the agriculture, fishery and forestry sectors account for only one-fifth (20 percent) of the economy's aggregate domestic output (GDP). Ever since the 1960s, the direct share of agriculture in the GDP had fallen below one-third, and by 1981, the sector's share had decreased to only 23 percent. Looking at the average growth per year, agriculture average only 1.7 percent per annum, which is way below the GDP average growth of 2.6 percent annually.

The importance of agriculture appears larger when it comes to employment, with nearly two-fifths (i.e. 35.8 percent in 2006) of jobs currently coming from the sector. However, agricultural employment has been showing a declining trend (1.9 percent annual average) as it hit 33.2 percent in 2010.

The Bureau of Agricultural Statistics (BAS) reported that the bulk of agricultural employment came from the Western Visayas with 1.16 million persons employed. In comparison, Central Luzon, the Bicol region, Central Visayas, Northern Mindanao, South Cotabato-Saranggani-General Santos City (Socsargen), and the Autonomous Region in Muslim Mindanao — overall — had only employed between 800,000 and 860,000 persons.

The bureau also noted that the National Capital Region (NCR) had employed the least number of agricultural workers at 25,000 last year, an average decline of 8 percent in the last five years — whereas the annual reductions in other regions ranged only between 0.2 to 1 percent.

The BAS also reported that child-workers, 5 to 17 years old, totaled 1.35 million in the agriculture sector, corresponding to 61.3 percent of the country's total working children.

Agriculture also displays the most erratic growth among the country’s major sectors, with growth rates tending to fluctuate widely from quarter to quarter. While the sector’s 2011 real GDP growth performance is not yet available, the most recent quarters have seen dramatic slowdowns from previous quarters, due mostly to unfavorable weather conditions.

It is clear by now that after 20 years of neglect, there is an unmistakable trend of deterioration in the performance of the Philippine agricultural sector. The deterioration is much more evident when figures are taken against the performance of neighbouring countries in the region. While the picture is not devoid of some bright spots, the general picture remains disturbing, and implies only one recommendation – the urgent need for determined corrective action.

The present administration of President benign Aquino III needs to reverse the decline of the country’s primary industry by adopting a mix of policy reforms, improved implementation of existing policies and programs, capacity-building, market reforms, improved governance and strong negotiation with trading partners. These are all daunting tasks that government alone cannot undertake. It is, therefore, a no-brainer that the private sector and civil society also has to do their part to modernize Philippine agriculture. This is not the time to bicker and complain by protesting in the streets and inconvenience others. It is now the time to contribute in making Philippine farms efficient and competitive as global competition intensifies into the next century and millennium.

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Have you heard about carbon trading? Many are familiar with the money market and even gold speculative dealings, but very few are aware about carbon credit trading. Unlike the usual modes of swapping financial ownership, carbon trading involves exchanging for the right to emit a certain volume of Co2, putting a price and cap on such emissions.

Based on several references, carbon trading is a system which was initiated by the Kyoto Protocol of 1997. It involves financial instruments known as "carbon credits" and they represent one metric ton of carbon pollution.

Carbon credit units are being bought and sold the same way as any other stocks or shares – through the stock exchange. They take a number of forms like any other tradable commodity such as over-the-counter trades, spot trades, futures and even in auctions.

As a new application of the emissions trading approach, there are still a lot to be learned from carbon credit trading. JP Morgan, Morgan Stanley, Goldman Sachs and Barclays Capital, have just established their carbon trading departments and made carbon investments. Since this is an untested market, what little knowledge that can be gain will be very valuable.

Because of the knowledge gap on carbon trading, online sites like carbon-investments.co.uk is fast becoming one of the most important resource and information portals. It keeps its readers up to date on carbon credit market facts, trends, news and investment opportunities. Carbon-investments.co.uk also provides analysis on why the value of carbon credit investments can go up or down according to market conditions.

What made carbon-investments.co.uk valuable is on the way it explains and presents the information. Readers can easily understand the difference between the voluntary and compliance markets, get the rationale on why carbon credits are traded, identify the major players in both markets, and get a sense of the process in a concise and simple manner.

Prospective investors should really try to check carbon-investments.co.uk to understand carbon credit trading as an investment opportunity.

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Microinsurance in the Philippines will be facing a new promise once a simplified licensing process and procedure is introduced by the Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) program. Known as the TRACS process, the system is expected to streamline the microinsurance licensing applications of rural bank to the Bangko Sentral ng Pilipinas (BSP) and the Insurance Commission (IC).

Assisted by the United States Agency for International Development (USAID), the MABS program developed the turn-key system to assist participating rural banks in expanding their services to include microfinance product in order for microinsurance to reach low-income groups.

The TRACS Process actually stands for: Train in microinsurance basic and product mastery; Request for a no objection notice from the BSP; Assemble microinsurance core team; Choose the bank's partner-insurance provider; and, Submit complete requirements to the Rural Bankers Research and Development Foundation Inc. (RBRDFI).

The process was introduced in a two-day microinsurance basic course covers the fundamental concepts and principles of microinsurance. It also imparts practical knowledge and skills to participants on microinsurance sales and servicing.

After completion of the training, the participating rural banks must submit its No Objection Notice to the BSP. This document basically signifies the bank's compliance to the regulations and intent to pursue the distribution of regulated microinsurance products.

Participating banks are encouraged to designate members of its microinsurance team with expertise in marketing, operations and the management information system (MIS) of the bank.

In addition, the team supervisor must have completed the trainings on microinsurance basics and product mastery conducted by RBAP-RBRDFI and the bank's partner-insurance provider, respectively. Only licensed insurance companies and their authorized microinsurance products are endorsed to the member rural banks.

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Tomorrow (3 November 2011) marked the 50th Anniversary of U.S. Agency for International Development (USAID) involvement in the Philippines, including administering U.S. economic assistance to Mindanao. So far, USAID’s assistance has helped develop Mindanao’s infrastructure, provide training and technical assistance, increase agricultural productivity and economic growth, promote sustainable environmental management, improve health and nutrition, and foster democracy and decentralization.

"Mindanao is still USAID's top priority because that's where the need is greatest," said Gloria D. Steele, the Filipino-American head of the agency in the Philippines, pointing to a region where literacy and maternal and child mortality rates are highest.

"We have been working in partnership with the administration of President (Benigno) Aquino (III). We’re making sure our programs will support the President’s priority projects, mainly poverty alleviation," Steele told the Philippine Daily Inquirer in an interview.

"That's a big challenge. But if we all try, meaning with joint efforts by government and the private sector, we can make things happen. There are no guarantees, but the potential is there. With the right people working together and the availability of resources, I am optimistic we can make things happen," she said.

Overall, USAID was estimated to have pumped in about US$ 500 million between 1996 and 2009 to develop basic infrastructure in Mindanao, such as ports, roads and bridges, and assist rural banks in providing loans and deposit services to microenterprises.

To mark the historic partnership, USAID Philippines together with Peace Corps Philippines will be organizing an event entitled, "50 Years of Partnership for Peace and Development" at the SM MOA Music Hall on 4 November 2011 from 10:00 A.M. to 8:00 P.M.

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Are you and your children savvy about money? If the answer is yes, you and your family have a secure and satisfying future ahead.

Educating, motivating, and empowering children to become regular savers will help them keep more of their allowance and do more with what they have. Everyday, children are faced with temptations to buy useless or frivolous things that can affect their financial status in the future. Wouldn’t you want them to be more responsible about money?

The Real Bank, a multi-awarded thrift bank that has received local and international awards for its savings advocacy program for children, offers the following tips to help you educate your kids about personal finance and managing money:

It is never too early to teach kids about money. Introduce them to money as soon as they can count. Get them a piggy bank as early as age two and teach them to 'feed' the piggy regularly. By doing so, you teach them important lessons on caring and discipline.

As they grow older, share your values about money with your kids. Tell them how to save money, how to make it grow and how to spend it wisely. Excite them about what money that is well-earned and well-saved can do and buy. This will teach them the value of patience and looking towards a goal. Give them an incentive if they can save weekly, or when their total savings this year are bigger then the previous years.

Teach your kids to set goals while they are young. If your child wants a toy or a special item like an iPod, let him or her make it a goal that they can work for. Goal-setting teaches children to be aspirational and responsible too.

Emphasize the value of savings versus spending. Explain and demonstrate the concept of earning interest on savings to your kids. Start by paying your child interest if he or she can save his or her allowance. This shows them that regular, successful saving leads to good credit rating and other tangible rewards. This is the real way to provide for your children’s future.

Lastly, bring your child to the bank with you. It will excite him or her because they will feel that they are being prepared for bigger things. Make your children feel at home with processes and institutions that will make them savvy money managers in the future.

To help parents teach kids the wonders of saving, The Real Bank put up the Real Kiddies Savers Club, where children are encouraged to bring their piggy banks to deposit their money in a real bank.

The Real Bank has also introduced Kinabukasan Savings, a savings program that encourages people of all ages to save their money and to feed their deposits an agreed fixed amount each month. To reward the savings habit and to make the practice of regular savings an exciting activity, the bank rewards Kinabukasan Savings depositors with higher interest on their accounts as they continue to save on a regular basis.

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