AGRICULTURE and
AGRI-BUSINESS
NEGROS OCCIDENTAL!
Provincial Overview
The Agribusiness sector of the Province of Negros Occidental is one of the main drivers of the province’s economy. Negros Occidental has always been known for its dominant role in the sugar industry and its emergence in organic farming. With over half of its land dedicated to agriculture, the province is a major producer of various crops, livestock, and fishery products. Negros Occidental, for the longest time, has built its economy from sugar, contributing more than half of the country’s total sugar production (PCIP 2017-2022).
Based on DENR’s vegetative land area cover, Negros Occidental’s production area is estimated at 501,838.03 hectares as declared in the 2023-2028 Negros Occidental Provincial Development and Physical Framework Plan (PDPFP). Production lands are categorized into croplands, fishponds, agro-forestry, and production forests. Croplands are mainly utilized for the production of sugarcane, rice, corn, coconut, and other food crops. The Bureau of Fisheries and Aquatic Resources (BFAR) declared that the fishpond area of Negros Occidental totals 12,339 hectares, 3,573.609 hectares under Fishpond Lease Agreement.
Commodity Investment Planning: According to the Negros Occidental’s Provincial Commodity Investment Plan (PCIP), the Province’s priority commodities for investment planning are muscovado, coconut, coffee, swine, native chicken and goat. Each of these priority commodities have its corresponding Value Chain Analysis (VCA) to identify the investment opportunities.
Sector Overview
Agriculture, forestry and fisheries shared 25% in the economy of Negros Occidental and contributed 1.1% in the Gross Provincial Domestic Product (GPDP) according to the Provincial Development and Physical Framework Plan (PDPFP) for 2023-2028. Prior to the creation of the Negros Island Region, Negros Occidental has been the top producer in the agriculture industry for Western Visayas, 33.8% share for Region 6 in 2021.
The Provincial Commodity Investment Plan (PCIP) of Negros Occidental, a 3-year rolling plan based on the value chain analysis (VCA) of the commodities conducted with strong participation from various stakeholders in the chain. The document rationalizes the interventions within the various segments of the value chain commodities. It is one of the requirements of the Philippine Rural Development Program (PRDP), a six-year program that aims to develop an inclusive, market oriented, climate-resilient agri-fishery sector by strategically investing in priority value chains.
Identifying the commodities all starts with the approval of VCAs that is prepared by the Regional Project Coordinating Office and the I-PLAN Component. Priority commodities are ranked according to the Commodity Prioritization Tool provided by PRDP as a guide. A No Objection Letter (NOL) for the VCAs will then be provided by the National Project Coordinating Office (NPCO) and that will signal the start of the formulation of the PCIP.
Priority Commodities - Crops
1. Coffee
Overview: The coffee sector in the Philippines is vital to agriculture, though it relies on only four commercially viable global species. Robusta dominates national production, accounting for 76% of the output. This is driven by high domestic demand, as instant coffee accounts for roughly 90% of national coffee consumption.
Current Situation: National coffee production is increasing, largely led by the SOCCSKSARGEN region (31,979 MT total in 2024). Western Visayas (including Negros Occidental) is declining, with output falling from 1,943 MT in 2021 to 1,235 MT in 2024. Negros Occidental offers a major opportunity for expansion, as 1,855 ha of suitable land remain unutilized.
Regional Performance: The Philippines has approximately 75 million bearing coffee trees. In Negros Occidental, production is concentrated in:
| Municipality | Area (Ha) | Yield (MT) |
|---|---|---|
| La Castellana | 518.6 ha | 10.37 MT |
| Sipalay | 460.5 ha | 9.21 MT |
| Murcia | 294 ha | 5.88 MT |
Trends & Challenges: Growing demand for locally sourced specialty coffee and government initiatives under the Philippine Coffee Industry Roadmap (2021–2025) aim to strengthen sustainability. Challenges include declining yields, aging trees, fragmented supply chains, and low mechanization.
Opportunities: Increasing yields from 0.8 kg to 2 kg per tree (as targeted by the DA) could reduce import dependence. Negros Occidental has potential for niche specialty coffee and eco-tourism integration.
2. Coconut
Common name: Coconut | Scientific name: Cocos nucifera
The coconut industry is a key contributor to the Philippine economy, covering 69 of 82 provinces and employing about 3.6 million farmers across 3.2 million hectares. In 2022, national production reached 14.93 million metric tons. In Negros Occidental, 2024 data from the PCA show 26,441 farmers cultivating 52,198 hectares with over 5.2 million trees.
Global & Regional Production: The Philippines ranks second globally to Indonesia. Mindanao remains the top producer. In the Visayas, the Negros Island Region (NIR) began separate reporting in 2024, contributing 284,373.36 metric tons, with Negros Occidental as the main producer.
Top Producers in Negros Occidental (2024): Calatrava (₱50.03M), Cadiz (₱25.54M), Hinoba-an (₱19.21M).
Strategic Programs (2022-2026): Organic Farm Development (₱10M), Seed Farm Development in Bago City (₱1.73M), Coconut Hubs in Hinoba-an and Sagay, Intercropping and Animal Integration, and Partnership with CPSU.
Market Demand (Top Exports CY 2022): Crude Coconut Oil (USD 1.37B), Desiccated Coconut (USD 369.97M), RBD Oil (USD 339.90M).
Priority Commodities - Aqua-fisheries
1. Sardines
Sector Overview: Negros Occidental is abundant in Sardinella lemuru (tuloy) yet has no existing local sardine canning facility. All canned sardines are imported. To ensure food security, the PGNO proposes the establishment of a Canned Sardines Manufacturing Facility.
Proposed Production
● Capacity: 1 ton/hour → 132,000 cans/day
● Annual output: 10,560,000 cans
● Sales: ₱274.56 million/year
Financial Overview
● Total Cost: ₱192.4 Million
● ROI (Year 1): 30.4%
● Break-even: 1.8 Million cans
Market Demand: Projected demand in Negros Occidental for 2024 is 88.5 million cans. Procurement data show a peak during 2020–2021 calamities (226,300 cans for packs).
Outlook: The proposed facility is financially viable and strategically aligned with development goals. With government support, the province can develop a self-sufficient, competitive sardine industry.
Other Business Opportunities
Investments & FDI
Foreign direct investments (FDI) are promoted by the BOI under the DTI. BOI actively supports investors, offering one-stop-shop services, including advisory, implementation, and aftercare. All information regarding governmental incentives, such as tax holidays, and duty exemptions can be found on their website.
Agri-tech and Agri-IT Sectors
Technology innovations can play a key role in transforming value chains. In the last few years, high-end technologies became available for smaller farmers, for example, the development of an unmanned ground vehicle drone-aided system with vis-NIR sensors for soil nutrient mapping of coffee farms.
Recommendations and Trends
For Negrense MSMEs
The Philippines is a top ASEAN consumer market. Challenges include poor FMR, inadequate post-harvest facilities, limited market access, and negative climate change impacts. There is a weak access to financing and insufficient laboratories for standards testing.
Development Directions
Focus on Innovation and technological adaptation. Climate change will force adaptation through new varieties and skills. More FMR construction and local logistics development are critical. Foreign investors bringing new technologies and market access are welcomed.
