1

Introduction

Millions of people depend on agriculture for their livelihoods, food, and raw resources,
making it the foundation of many economies worldwide. Some commodities stand out among the
wide range of agricultural goods due to their importance on a global scale, their economic worth,
and their contribution to food security. An introduction of the major crops and animal products
that influence the agricultural landscape is provided in this book, "Introduction to Agricultural
Commodities." These include rice, corn, potatoes, coffee, bananas, cacao, tea, coconuts, dairy, and
chicken meat.
In human culture, each of these commodities has a distinct function. For a large portion of
the world's population, rice and corn are basic foods; potatoes offer vital nutrition and variety;
coffee, tea, cocoa, and bananas power significant export businesses and cultural customs; while
coconut, dairy, and poultry meat support both rural enterprise and nourishment. Collectively, they
symbolize the variety of agricultural production techniques and the complex equilibrium between
commercial and subsistence farming.

By investigating these commodities' biological traits, production methods, market

significance, and socioeconomic effects, this introductory text seeks to provide readers—students,
researchers, and agricultural enthusiasts alike—a fundamental grasp of these commodities.
Readers may learn more about the prospects for sustainable growth in the agricultural sector, the
difficulties faced by farmers, and the larger dynamics of global agriculture by examining these
cases.

Through this investigation, the book seeks to foster a deeper understanding of the function
of agricultural commodities as essential components of culture, the economy, and environmental
stewardship in addition to their position as goods.

2
 Table of Contents

Preliminaries Page

Cover page 1
Introduction 2

Rice Commodity 5
Corn Commodity 7
Potato Commodity 11

Banana Commodity 15
Coffee Commodity 18

Cacao Commodity 21
Soybean Commodity 24
Tea Commodity 27

Coconut Commodity 30
Dairy and Poultry Meat 33

3
 Rice Commodity
Production, Industry & Economic Overview
1. Introduction

Rice is a cereal grain and a staple food for more than half of the world’s population,
especially in Asia.
It is a primary source of calories and essential nutrients like carbohydrates, some
protein, and B vitamins.

Rice can be consumed as:

 Unmilled (paddy rice)

 Milled rice (white rice, brown rice, parboiled rice)
 Processed products like rice flour, rice bran oil, and rice cakes

2. Global Rice Production

Country Role in Rice Production

China Largest rice producer and consumer
India Major producer, both for domestic consumption
and export
Indonesia High domestic consumption and production

Bangladesh Significant producer, staple crop

Vietnam Major exporter (primarily white rice)
Thailand Leading rice exporter, famous for jasmine rice

Global Highlights:

 World production: ~800 million metric tons (milled rice equivalent) annually (FAO,
2024).
 Asia accounts for >90% of global rice production and consumption.
 Rice-growing regions include flood-prone lowlands and upland terraces.

3. Raw Agricultural Product

The raw product is paddy rice, harvested from rice fields. It undergoes:

1. Threshing – separating grains from the stalks

2. Drying – reducing moisture to ~14% for storage
3. Milling – producing white rice (removes husk, bran, and germ)

4
4. Types of Rice
Type Characteristics / Uses
Long-grain rice Fluffy when cooked, e.g., basmati, jasmine
Medium-grain rice Slightly sticky, good for risotto or paella
Short-grain rice Very sticky, used in sushi or rice cakes
Specialty rice Glutinous rice, aromatic varieties (e.g., Thai
jasmine, Philippine Dinorado)
Brown rice Whole grain rice retaining bran; healthier
Parboiled rice Partially boiled while husked; retains nutrients
5. Rice Industry in the Philippines

Aspect Details
Major Rice-Producing Regions Central Luzon, Cagayan Valley, Ilocos
Region, Western Visayas, Mindanao
Annual Production (2023) ~19.5 million metric tons of palay (paddy
rice)
Consumption ~12.5 million metric tons of milled rice per
year

Major Rice Varieties IR64, NSIC Rc18, Dinorado, Sinandomeng

Local Agencies Department of Agriculture (DA),
Philippine Rice Research Institute
(PhilRice)

Philippine Context

 Rice is the main staple food, accounting for ~20% of caloric intake.
 Despite high domestic production, the Philippines imports rice to meet consumption
gaps, mainly from Vietnam and Thailand.
 Rice terraces in Ifugao and other regions also serve as tourism and cultural heritage
areas.

6. Economic Importance

1. Food security – staple for majority of Filipinos and Asians.

2. Employment – millions of small farmers and laborers engaged in rice farming.
3. Rural economy – supports related industries: seed production, fertilizers, irrigation,
milling, and trading.
4. Exports – specialty rice like Dinorado and Jasmine fetch premium prices internationally.

7. Production System

5
Rice can be grown in irrigated, rainfed lowland, upland, or flood-prone areas.
Production cycle:

1. Land preparation → 2. Seed selection → 3. Planting → 4. Water management → 5.

Fertilization → 6. Pest and disease management → 7. Harvesting → 8. Postharvest
processing

8. Challenges in Rice Production

Challenges Possible Solutions

Climate change and extreme weather Develop resilient varieties, improve irrigation
High cost of inputs (fertilizer, labor) Government subsidies, mechanization
Pest and disease outbreaks Integrated pest management, resistant varieties
Post-harvest losses Better storage and milling facilities
Import dependency Boost local production and farmer support

9. Summary Table

Aspect Rice Commodity

Main Product Paddy rice → Milled rice
Top Producers China, India, Indonesia, Bangladesh, Vietnam
(World)
Philippine Situation High domestic production; imports supplement supply
Key Uses Staple food, processed products (rice flour, rice cakes, rice bran
oil)
By-products Rice bran, rice hulls, straw
Ideal Climate Warm, wet tropical; ~25–35°C
Main Issues Climate change, high input cost, post-harvest losses
Economic Importance Food security, rural employment, livelihood, exports

10. References

1. FAO – FAOSTAT: Rice Production Statistics, 2024

[Link]
2. Philippine Statistics Authority (PSA) – Rice Situation Report, 2023
[Link]
3. Department of Agriculture – Philippine Rice Program Updates, 2024
4. Philippine Rice Research Institute (PhilRice) – Rice Production & Varieties Guide
[Link]

6
 Corn (Maize) Commodity

Production, Raw Products & Industry Overview

1. Introduction

Corn (Zea mays L.), also known as maize, is one of the world’s most important cereal
crops—alongside rice and wheat.
It serves as a staple food, animal feed, and industrial raw material, playing a critical role in
global food security and trade.

Corn originated in Mesoamerica (modern-day Mexico) and has since spread globally
due to its versatility and adaptability.

2. Global Production and Trade

Rank Country Role in Corn Industry

1 United States Largest corn producer and exporter globally
2 China Major producer and consumer
3 Brazil Top exporter and leading South American producer
4 Argentina Major exporter of feed corn
5 Indonesia / 🇮🇳 India Leading Asian producers

Global Highlights

 The U.S., China, and Brazil together account for over 65% of global corn production.
 Corn is a key feed crop for livestock and poultry, a biofuel source, and an ingredient in
processed foods.
 The U.S. and Brazil dominate international corn exports.
 Mexico, Japan, and South Korea are among the largest importers.

3. Climate and Growing Conditions

Growing Requirement Ideal Range

Temperature 18–27°C
Rainfall 500–800 mm (well-distributed)
Soil Type Deep, fertile loam with good drainage
pH Range 5.8–7.0
Altitude Up to 1,500 meters

Corn is highly adaptable and grows well in both tropical and temperate regions.

4. Raw Agricultural Product

7
 The raw product harvested is the corn ear, which contains kernels (grains).
 Each ear holds hundreds of kernels, which can be dried, milled, or processed depending on their
intended use.

There are several types of corn depending on usage:

 Flint corn – Hard kernels, used for food.

 Dent corn – Soft and starchy, mainly for feed and industrial use.
 Sweet corn – Consumed as a vegetable.
 Waxy corn – Used for starch and industrial purposes.
 Popcorn – Special variety for snacks.

5. Main Products and By-products

Product / By-product Description & Uses

Corn grain Used as food (boiled, roasted, ground into flour).
Cornmeal / Corn flour Used in breads, tortillas, and other foods.
Corn oil Extracted from the germ; used in cooking and industry.
Corn starch Used in food processing, textiles, and pharmaceuticals.
Animal feed (maize bran, silage) Main livestock and poultry feed component.
Ethanol / Biofuel Major renewable energy source derived from corn.
Corn husks and cobs Used for handicrafts, biomass fuel, or compost.
🇵🇭 6. Corn Production in the Philippines

Region / Province Production Role

Region XII – SOCCSKSARGEN Top producer of yellow corn
Region X – Northern Mindanao Major producer
Region II – Cagayan Valley Leading producer of white corn
Region XI – Davao Region Expanding corn production area
Region VI – Western Visayas Notable in hybrid corn farming

Corn Types in the Philippines

 Yellow corn – Primarily for animal feed and industrial use.

 White corn – Consumed as staple food, especially in Visayas and Mindanao.

Production Statistics (PSA, 2023)

 Total corn production: ~8 million metric tons annually.

 Yellow corn accounts for around 70–75%, used mainly by feed mills.
 White corn accounts for 25–30%, used for human consumption.

7. Economic Importance

Corn plays a vital economic role both globally and locally.

8
 1. Food Crop

 Consumed in various forms: boiled corn, corn grits, polenta, tortillas, and snacks.
 Important dietary source of carbohydrates, fiber, and vitamins.

2. Feed Crop

 The largest share of corn is used in livestock and poultry feeds, supporting the meat, dairy,
and egg industries.

3. Industrial Crop

 Raw material for ethanol, starch, and sweeteners (such as high-fructose corn syrup).
 Used in bioplastics, cosmetics, adhesives, and even pharmaceuticals.

4. Export Commodity

 Generates billions of dollars annually in global trade.

 The Philippines mainly imports yellow corn feed from neighboring countries when local
production is insufficient.

8. Sustainability and Challenges

Challenges Sustainable Practices / Solutions

Climate change and drought Use of drought-tolerant hybrids
Soil degradation Crop rotation and conservation tillage
Pest and disease (e.g., fall Integrated Pest Management (IPM)
armyworm)
High input costs Promotion of hybrid and open-pollinated
varieties
Post-harvest losses Development of drying and storage facilities

9. Summary Table

Aspect Details
Scientific Name Zea mays L.
Crop Type Cereal / Grain
Largest Producer United States
Second Largest Producer China
Top Exporters USA, Brazil, Argentina
Top Philippine Regions SOCCSKSARGEN, Northern
Mindanao, Cagayan Valley
Raw Product Corn ear (kernels)
Main Processed Products Cornmeal, starch, oil, feed,
ethanol

9
 Major Uses Food, feed, industrial
applications
Ideal Climate Warm, temperate to tropical
By-products Bran, husk, cobs, corn gluten
feed
Key Issues Pests, climate stress, post-
harvest losses

Summary

Corn is a versatile and globally significant crop, serving as food, feed, and fuel.
In the Philippines, it is the second most important crop after rice, sustaining both human
consumption (white corn) and the livestock feed industry (yellow corn).
Sustainable farming practices, improved seed technology, and post-harvest innovations are key
to boosting productivity and ensuring food security.

10. References

1. FAO (Food and Agriculture Organization) – FAOSTAT: Maize Production Data 2024.
🔗 [Link]
2. USDA (United States Department of Agriculture) – World Agricultural Supply and
Demand Estimates, 2024.
🔗 [Link]
3. Philippine Statistics Authority (PSA) – Major Crops Quarterly Bulletin: Corn, 2023.
🔗 [Link]
4. Department of Agriculture – Bureau of Plant Industry (BPI) – Corn Industry
Roadmap, 2024.
5. International Maize and Wheat Improvement Center (CIMMYT) – Global Maize
Program Overview, 2023.
🔗 [Link]
6. World Bank Commodity Outlook (2024) – Global Maize Trade and Market Analysis.

10
 Potato Commodity

Production, Raw Products & Industry Overview

1. Introduction

The potato (Solanum tuberosum) is the world’s fourth most important food crop—
after rice, wheat, and maize. It is a tuber crop known for its high carbohydrate and nutrient
content, and it plays a major role in global food security.

Potatoes are used both as a staple food and as a raw material for processed foods and
industrial products. They are grown in over 150 countries, under diverse climatic conditions.

2. Global Production and Trade

Rank Country Role in Production/Trade

1 China Largest potato producer in the world
2 India Second-largest producer
3 Russia Major producer and consumer
4 United States Leading producer and exporter of processed potatoes
5 Ukraine Important European producer
6 Poland Leading EU potato producer
🌍 Global Highlights

 China and India together produce over one-third of the world’s potatoes.
 Europe has the highest per capita consumption.
 The Netherlands, Canada, and the U.S. are leading exporters of frozen and processed
potato products (like French fries).
 Global trade centers on processed potatoes rather than raw tubers due to perishability.

3. Climate and Growing Conditions

Potatoes grow well in cool, temperate climates and highland tropical regions.

Ideal Conditions Range/Requirement

Temperature 15–20°C (cool climate)
Rainfall 500–1,000 mm/year (well-distributed)
Soil Loamy, well-drained, fertile soil with good organic matter
Elevation 1,000–2,500 meters (tropical regions)

Potatoes are usually grown in highland areas in tropical countries like the Philippines, Kenya,
and Indonesia.

11
4. Raw Agricultural Product

 The raw product is the potato tuber, which develops underground from the stolons of
the potato plant.
 Tubers are harvested, graded, and stored for fresh consumption or further processing.

5. Main Products and By-products

Product/By-product Description & Uses

Fresh potatoes Consumed boiled, fried, or baked as staple food.
Processed potato products French fries, potato chips, starch, dehydrated flakes.
Potato starch Used in food manufacturing, textiles, adhesives, and paper.
Potato flour Used in bakery and food formulations.
Potato peel waste Used for animal feed or as organic compost.
Green/defective tubers Converted into bioethanol or biogas.

🇵🇭 6. Potato Production in the Philippines

 Main Producing Regions:

o Benguet – top producer and known as the “Potato Capital of the Philippines.”
o Mt. Province
o Bukidnon
o Ifugao and Nueva Vizcaya
 Climate: Potatoes in the Philippines are grown in high-altitude areas (above 1,000
meters) with cool weather.
 Varieties Commonly Grown:
o Granola, Igorota, Diamant, Atlantic (for processing).
 Uses:
o Fresh consumption (household and market)
o Raw material for chips and fries
o Seed tuber production for replanting

📦 Production Challenges in the Philippines

 Dependence on imported seed tubers (especially from the Netherlands).

 Lack of cold storage and post-harvest facilities.
 Price fluctuations and limited local processing industries.

7. Economic Importance

1. Food Security:
o Potatoes are rich in carbohydrates, fiber, vitamin C, and potassium.
o Serve as a fast-growing, high-yield crop in both temperate and tropical regions.
2. Livelihood Source:

12
 oSupports smallholder farmers in highland areas like Benguet and Bukidnon.
3. Industrial Use:
o Raw material for food processing, starch, alcohol, and pharmaceutical industries.
4. Global Trade Value:
o Potato exports (mostly frozen fries and chips) are worth over US$12 billion
annually (FAO, 2024).

8. Sustainability and Challenges

 Environmental Issues:
o Soil erosion and nutrient depletion in mountain farms.
o Overuse of chemical fertilizers and pesticides.
 Sustainability Practices:
o Crop rotation (with beans or maize)
o Use of disease-free seed tubers
o Organic potato farming adoption
o Development of drought- and pest-resistant varieties

9. Summary Table

Aspect Details
Scientific Name Solanum tuberosum
Plant Type Tuber crop (root vegetable)
Largest Producer China
Second Largest India
Top Exporters (Processed) Netherlands, USA, Canada
Philippine Major Regions Benguet, Mt. Province, Bukidnon
Raw Product Potato tuber
Main Processed Forms Chips, fries, starch, flakes
Main By-products Peels (feed/fertilizer), starch residue
Ideal Climate Cool, temperate or highland tropical
Major Uses Food, feed, industrial raw material
Key Issues High seed cost, pests, limited storage facilities

Summary

The potato is a nutrient-dense, high-yielding crop that plays a vital role in global food and
nutrition security.
In the Philippines, potato farming thrives in highland regions like Benguet and Bukidnon,
supporting rural livelihoods. However, improving seed quality, post-harvest handling, and
processing industries is key to unlocking its full potential.

10. References

13
1. FAO (Food and Agriculture Organization) – FAOSTAT: Potato Production Data,
2024.
🔗 [Link]
2. International Potato Center (CIP) – Global Potato Atlas and Production Reports,
2023.
🔗 [Link]
3. Philippine Statistics Authority (PSA) – Major Vegetables and Root Crops Quarterly
Bulletin, 2023.
4. Department of Agriculture – Bureau of Plant Industry (BPI) – Potato Commodity
Industry Profile, 2024.
5. International Trade Centre (ITC) – Trade Map: Processed Potato Exports, 2023.
6. World Bank – Commodity Markets Outlook: Root and Tuber Crops, 2024.

14
 Banana Commodity

Production, Raw Products, and Economic Overview

1. Introduction

Banana (Musa spp.) is one of the most widely consumed tropical fruits in the world. It is
grown primarily for direct consumption, processing, and export.

 Scientific names: Musa acuminata, Musa paradisiaca

 Banana plants are herbaceous perennials, not trees, and grow best in warm, humid
climates.
 They are a staple food in many tropical countries and also used in processed products
like banana chips, puree, and desserts.

2. Global Production

Country Role
India Largest producer (~30–35% of global output)
Ecuador Largest exporter globally
Philippines Top exporter in Asia, mainly Cavendish bananas
Colombia Significant exporter
Brazil Major producer for domestic consumption

Highlights:

 Asia produces the majority of bananas globally.

 Export-oriented countries focus on Cavendish variety due to transport durability.
 Tropical Africa and Latin America are major banana production zones.

3. Raw Agricultural Product

 Banana fruit bunch – the main harvested product

 By-products:
o Banana peel – compost, animal feed
o Banana pseudostem – fiber production, organic fertilizer
o Banana leaf – packaging and culinary use

4. Banana Industry in the Philippines

Aspect Details
Top Producing Davao Region (Region XI), especially Davao del Norte
Region

15
 Major Varieties Cavendish (export), Saba (cooking), Lakatan (dessert)
Consumption & Fresh fruit, banana chips, desserts, cooking
Use
Export Markets Japan, China, Middle East, Europe
Economic Provides livelihood for thousands of smallholder farmers and
Importance contributes significantly to foreign exchange

Philippine Highlights:

 Davao Region is called the “Banana Capital of the Philippines”.

 The Cavendish banana dominates export production due to its long shelf-life.
 Banana is used domestically for cooking, snacks, and processing.

5. Production System

1. Land Preparation – cleared, fertile land with proper irrigation

2. Planting – suckers or tissue-cultured seedlings planted 2–3 meters apart
3. Maintenance – weeding, fertilization, pest and disease control
4. Harvesting – fruit bunches harvested when mature but unripe for export
5. Post-harvest – washing, sorting, packaging, and cold storage for export

6. By-products and Uses

By-product Use
Banana peel Livestock feed, organic fertilizer, biogas production
Banana pseudostem Fiber for handicrafts, mats, and ropes
Banana leaf Food wrapping, packaging
Overripe banana Banana flour, jams, desserts, vinegar

7. Economic Importance

1. Food security: Staple in tropical diets

2. Export revenue: Major source of foreign exchange for the Philippines and Latin
American countries
3. Livelihood generation: Provides income for smallholder and commercial farmers
4. Value-added products: Banana chips, flour, jams, and processed snacks

8. Challenges

Challenge Possible Solution

Pests and diseases (e.g., Panama disease) Resistant varieties, proper sanitation
Post-harvest losses Improved packaging, cold chain storage
Climate sensitivity Irrigation, windbreaks, and shade management
Market fluctuations Diversified markets and value-added products

16
9. Summary Table

Aspect Banana Commodity

Scientific Name Musa acuminata, Musa paradisiaca
Raw Product Banana fruit bunch
Major Producing Countries India, Philippines, Ecuador, Colombia, Brazil

Philippine Production Davao Region, Region XI

Major Varieties Cavendish (export), Saba (cooking), Lakatan (dessert)
Uses Fresh fruit, cooking, snacks, processed products, handicrafts
By-products Peel, pseudostem, leaf
Ideal Climate Warm, humid, tropical, well-drained soil
Economic Importance Food security, export revenue, livelihood, value-added products

10. References

1. Food and Agriculture Organization (FAO). FAOSTAT: Banana Production Statistics.

🔗 [Link]
2. Philippine Statistics Authority (PSA). Banana Industry Overview, 2023.
🔗 [Link]
3. Department of Agriculture (DA). Banana Industry Development Programs.
4. International Trade Centre (ITC). Banana Export and Market Reports.

17
 Coffee Commodity

Production, Raw Products & Industry Overview

1. Introduction

Coffee is one of the most valuable agricultural commodities in the world — both
economically and culturally. It comes from the seeds (beans) of coffee cherries grown on
Coffea plants.

It is not only a global beverage staple but also a key export product for many
developing countries, especially in Latin America, Africa, and Asia.
Globally, coffee supports the livelihoods of more than 125 million people.

2. Global Production and Trade

Rank Country Role in Production/Trade

1 Brazil Largest coffee producer and exporter globally
2 Vietnam Second-largest producer (mainly Robusta coffee)
3 Colombia Leading producer of high-quality Arabica coffee
4 Indonesia Major Asian producer
5 Ethiopia Birthplace of Arabica coffee
6 India Notable producer of both Arabica and Robusta varieties
🌍 Global Highlights

 Brazil supplies about 35% of the world’s coffee.

 Vietnam dominates Robusta production (used in instant coffee).
 Colombia is famous for its mild Arabica coffee.
 Ethiopia is the origin of coffee, with thousands of heirloom varieties.
 Top Importers: United States, European Union, and Japan.

🌤️ 3. Climate and Growing Conditions

Coffee thrives in tropical highlands with mild temperatures, regular rainfall, and well-drained
soils.

Ideal Conditions Arabica Robusta

Altitude 1,000–2,000 m 0–800 m
Temperature 15–24°C 24–30°C
Rainfall 1,500–2,000 mm 2,000–2,500 mm
Flavor Smooth, aromatic Strong, bitter
Main Use Brewed coffee Instant coffee, espresso blends

4. Raw Agricultural Product

18
 The raw product harvested is the coffee cherry (fruit) from the coffee tree.
Each cherry contains two coffee beans (seeds), which are processed through dry or wet
methods to remove the pulp and obtain green coffee beans, the main export form.

🏭 5. Main Products and By-products

Product/By-product Description & Uses

Green coffee beans Primary export product; roasted for beverage use.
Roasted coffee beans Processed and packaged for brewing.
Instant coffee powder Made by drying brewed coffee extract.
Coffee husk / pulp Used as compost or animal feed additive.
Coffee grounds (waste) Used in beauty products, fertilizer, and biofuel.
Coffee oil Extracted for cosmetics and aromatherapy.

🇵🇭 6. Coffee Production in the Philippines

 The Philippines is one of the few countries that can grow all four main coffee species:
1. Arabica (Coffea arabica) – Grown in highlands (Benguet, Mt. Apo)
2. Robusta (Coffea canephora) – Most widely grown (lowlands, Mindanao)
3. Excelsa (Coffea excelsa) – Distinct strong flavor
4. Liberica (Coffea liberica) – Locally known as “Barako coffee”

🌋 Key Coffee-Producing Regions in the Philippines

Region/Province Dominant Variety Note
Davao Region (Mindanao) Robusta Largest producer
SOCCSKSARGEN Robusta For instant coffee
Benguet / Mt. Province Arabica Highland specialty coffee
Batangas & Cavite Liberica (Barako) Traditional Filipino coffee
Bukidnon Arabica & Robusta Expanding production areas
📦 Production Use

 Domestic consumption: Majority of production goes to local markets and instant coffee
manufacturing (Nestlé Philippines is a major buyer).
 Export: Small volumes, mostly specialty Arabica from Benguet and Mt. Apo.

☕ 7. Economic Importance

1. Livelihood: Provides income to smallholder farmers.

2. Domestic Market: The Philippines has one of the highest coffee consumption rates in
Southeast Asia.
3. Export Potential: Growing demand for specialty Arabica and Barako coffee.

19
 4. Industry Growth: The Philippine Coffee Roadmap 2021–2025 aims to achieve self-
sufficiency and improve productivity.

🌱 8. Sustainability and Challenges

 Challenges:
o Low farm productivity
o Aging coffee trees
o Pests and diseases (coffee rust, berry borer)
o Price fluctuations in global markets
 Sustainability Efforts:
o Replanting and rejuvenation programs
o Farmer training on good agricultural practices (GAP)
o Promotion of organic and fair-trade coffee
o Private-sector partnerships (e.g., Nestlé, ACDI/VOCA, PhilCAFE Project)

📊 9. Summary Table

Aspect Details
Scientific Name Coffea arabica, C. canephora (Robusta), C. liberica, C. excelsa
Largest Producer (World) Brazil
Second Largest Producer Vietnam
Top Importers USA, EU, Japan
Philippine Major Regions Davao Region, Benguet, Batangas
Raw Product Coffee cherry (processed into green beans)
Main Export Form Green coffee beans
Main By-product Coffee husk, pulp, spent grounds
Ideal Climate Tropical, mild temperature, high rainfall
Main Uses Brewed coffee, instant coffee, cosmetics, fertilizer
Major Philippine Variety Robusta (80% of production)

📚 10. References

1. FAO (Food and Agriculture Organization) – FAOSTAT: Coffee Production and Trade
Data, 2024
🔗 [Link]
2. International Coffee Organization (ICO) – World Coffee Outlook, 2023–2024
🔗 [Link]
3. Philippine Statistics Authority (PSA) – Major Crop Statistics: Coffee, 2023
4. Department of Agriculture (DA), Bureau of Plant Industry (BPI) – Coffee Industry
Roadmap 2021–2025
5. Nestlé Philippines – Kape’t Buhay: Coffee Sustainability Report, 2023
6. World Bank – Commodity Markets Outlook: Coffee Sector Analysis, 2024
7. Department of Trade and Industry (DTI) – Philippine Coffee Industry Cluster, 2024

20
 Cacao Commodity

Production, Raw Products, and Economic Overview

1. Introduction

Cacao (Theobroma cacao) is a tropical tree crop whose seeds are the primary raw material
for chocolate and cocoa products. It is one of the most valuable cash crops in many tropical
countries.

 Scientific name: Theobroma cacao

 Grown primarily in tropical regions within 20° latitude of the equator
 Requires warm, humid climates with well-distributed rainfall

2. Global Production

Country Role
🇨🇮 Côte d’Ivoire (Ivory Largest global producer (~40% of world output)
Coast)
🇬🇭 Ghana Second-largest producer, major exporter
🇮🇩 Indonesia Largest Asian producer
🇪🇨 Ecuador Top producer in South America, famous for fine flavor
cacao
🇳🇬 Nigeria Third in Africa, significant global share

Highlights:

 Africa dominates global cacao production (~70%).

 Latin America is historically the origin of cacao cultivation.
 Asia contributes a smaller portion but plays an important role in regional trade.

3. Raw Agricultural Products

 Cacao pod: Harvested fruit containing seeds (beans) and pulp

 Cocoa beans: Main raw product used in chocolate production
 By-products:
o Cocoa butter – extracted from beans, used in chocolate and cosmetics
o Cocoa powder – used for beverages, baking, and confections
o Cacao husk – used as mulch or animal feed

4. Cacao Industry in the Philippines

Aspect Details

21
 Top Producing Davao Region (Region XI), especially Davao del Norte
Region
Major Uses Chocolate production, cacao-based confectionery, cocoa powder
Export Markets Japan, Europe, USA
Economic Provides livelihood for smallholder farmers and contributes to export
Importance revenue

Philippine Highlights:

 Davao Region is considered the cacao capital of the Philippines.

 The country produces both bulk cacao (for export) and fine flavor cacao (niche market).
 Used domestically in products like tablea, chocolate, and cacao-based desserts.

5. Cacao Production System

1. Land Preparation: Fertile, well-drained soil with shade trees

2. Planting: Seedlings or grafted plants spaced adequately for growth
3. Maintenance: Fertilization, pruning, pest/disease control
4. Harvesting: Pods harvested manually when ripe
5. Post-Harvest Processing:
o Pod opening → removal of beans
o Fermentation: Develops chocolate flavor (~5–7 days)
o Drying: Reduces moisture for storage and shipping

6. By-products and Uses

By-product Use
Cocoa beans Primary product for chocolate, cocoa powder, beverages
Cocoa butter Chocolate production, cosmetics, soaps
Cocoa powder Beverages, baking, confections
Cacao husk Mulch, compost, animal feed

7. Economic Importance

1. Foreign exchange: Significant contributor to exports in producing countries

2. Livelihood: Provides income for millions of smallholder farmers
3. Value-added products: Chocolate, cocoa powder, cocoa butter, cosmetics
4. Food security & industry: Source of raw material for domestic confectionery industries

8. Challenges

Challenge Possible Solution

Pests & diseases (e.g., cocoa pod borer, black Resistant varieties, proper sanitation
pod disease)

22
 Climate sensitivity Shade management, irrigation, diversified
planting
Price volatility Cooperative marketing, value-added products
Post-harvest loss Proper fermentation and drying techniques

9. Summary Table

Aspect Cacao Commodity

Scientific Name Theobroma cacao
Raw Product Cacao pod → cocoa beans
Major Producing Countries Côte d’Ivoire, Ghana, Indonesia, Ecuador, Nigeria
Philippine Production Davao Region, Region XI
Major Uses Chocolate, cocoa powder, cocoa butter, confections
By-products Cocoa butter, cocoa powder, husk
Ideal Climate Warm, humid, tropical, well-drained soil
Economic Importance Export revenue, livelihood, value-added products

10. References

1. Food and Agriculture Organization (FAO). FAOSTAT: Cacao Production Statistics.

🔗 [Link]
2. Philippine Statistics Authority (PSA). Cacao Industry Overview, 2023.
🔗 [Link]
3. Department of Agriculture (DA). Cacao Industry Development Programs.
4. International Trade Centre (ITC). Cacao Export and Market Reports.

23
 Soybean Commodity

Production, Raw Products, and Economic Overview

1. Introduction

Soybean (Glycine max) is a versatile legume crop widely grown for its high protein content
and oil. It is a major raw material for food, feed, and industrial products.

 Scientific name: Glycine max

 Uses: Soybean oil, soy milk, tofu, soy sauce, animal feed, biodiesel, soy protein products
 Growth requirements: Temperate to subtropical climates, moderate rainfall, fertile,
well-drained soils

2. Global Production

Country Role
United States Largest global producer (~35% of world output)
Brazil Second-largest producer, major exporter
China Top Asian producer, high domestic consumption
Argentina Third in South America, export-oriented
India Produces soybeans primarily for domestic use

Highlights:

 South America and North America dominate global soybean production.

 China is the largest importer of soybeans due to high demand for animal feed.
 Soybean is crucial for both human consumption (tofu, soy sauce) and livestock feed.

3. Raw Agricultural Products

 Soybean pods: Harvested from the plant containing seeds

 Soybeans (seeds): Main product for processing into oil, meal, and food products
 By-products:
o Soybean meal: High-protein feed for livestock
o Soybean oil: Edible oil, biodiesel, and industrial applications
o Soy hulls: Used as animal feed and fiber source

4. Production System

1. Land preparation: Well-drained, fertile soils with neutral pH

2. Planting: Seeds sown in rows with proper spacing
3. Maintenance: Fertilization, pest and disease management
4. Harvesting: Mechanical or manual harvesting when pods mature
24
 5. Post-harvest processing: Cleaning, drying, storage, oil extraction, and meal production

5. By-products and Uses

By-product Use
Soybean seeds Edible products (tofu, soy milk, soy sauce), oil production
Soybean meal Livestock and poultry feed
Soybean oil Cooking, industrial applications, biodiesel
Soy hulls Animal feed, fiber, compost

6. Soybean Industry in the Philippines

Aspect Details
Primary Use Cooking oil, animal feed, soy-based foods
Production Area Ilocos, Cagayan Valley, Mindanao regions
Challenges Limited local production vs. high import demand; climate sensitivity
Economic Importance Supports food security and livestock industries

7. Economic Importance

1. Food industry: Base for protein-rich products like tofu, soy milk, soy sauce
2. Animal feed: Soybean meal is a critical ingredient for livestock and poultry feed
3. Industrial use: Soy oil in biodiesel and other industrial products
4. Trade: Major exported commodity for producing countries; imported to meet high
demand in Asia

8. Challenges

Challenge Possible Solution

Climate and soil sensitivity Proper irrigation, crop rotation, and soil
management
Pests and diseases (soybean rust, Resistant varieties, monitoring, pesticides
aphids)
Price fluctuations Cooperative marketing, contract farming
Dependence on imports Promote domestic production and high-yield
varieties

9. Summary Table

Aspect Soybean Commodity

Scientific Name Glycine max

25
 Raw Product Soybean pods → soybean seeds
Major Producing Countries USA, Brazil, China, Argentina, India
Philippine Production Ilocos, Cagayan Valley, Mindanao
Major Uses Food products, soy oil, livestock feed, biodiesel
By-products Soybean meal, oil, hulls
Ideal Climate Temperate with moderate rainfall, fertile soil
Economic Importance Food security, livestock feed, export revenue, industrial use

10. References

1. Food and Agriculture Organization (FAO). FAOSTAT: Soybean Production Statistics.

[Link]
2. Philippine Statistics Authority (PSA). Soybean Industry Overview.
[Link]
3. Department of Agriculture (DA). Soybean Production and Development Programs.
4. United States Department of Agriculture (USDA). World Agricultural Supply and
Demand Estimates.

26
 Tea Commodity

Production, Raw Products, and Economic Overview

1. Introduction

Tea (Camellia sinensis) is one of the most widely consumed beverages in the world,
produced from the leaves of the tea plant. It is cultivated primarily for its leaves, which are
processed into black, green, oolong, and white tea.

 Scientific name: Camellia sinensis

 Uses: Beverage production, extracts for cosmetics and supplements
 Growth requirements: Warm and humid climates, well-drained acidic soils, altitudes
between 600–2000 meters are ideal for quality tea

2. Global Production

Country Role
China Largest producer of tea globally, known for green and black teas
India Second-largest producer, famous for Assam and Darjeeling teas
Kenya Largest tea producer in Africa, mainly black tea for export
Sri Lanka Produces high-quality Ceylon tea for global export
Vietnam Significant producer of black and green teas

Highlights:

 Asia dominates global tea production.

 China and India lead both in quantity and variety.
 African countries like Kenya focus on export-oriented black tea production.

3. Raw Agricultural Products

 Tea leaves: Main raw product, harvested as fresh young leaves (flushes)
 By-products:
o Tea dust and fannings: Used in tea bags
o Spent leaves: Can be composted or used in fertilizers and animal feed

4. Production System

1. Planting: Tea is propagated via seeds or cuttings in nurseries before transplanting to

fields
2. Harvesting: Young leaves are plucked by hand or machine; usually the top two leaves
and a bud
3. Processing:

27
 o Withering: Reduces moisture in leaves
o Rolling: Breaks leaf cell walls to release enzymes
o Fermentation (oxidation): Determines type of tea (black tea fully fermented,
green tea unfermented)
o Drying: Stops oxidation and preserves leaves
4. Grading and Packaging: Leaves are sorted by size and quality before sale

5. Types of Tea

Type Characteristics Processing

Black tea Strong flavor, fully oxidized Fermented/oxidized
Green tea Mild flavor, unoxidized Steamed or pan-fired
Oolong tea Semi-oxidized Partially fermented
White tea Delicate flavor Minimal processing, only dried

6. Economic Importance

1. Global Trade: Tea is a major export commodity for countries like China, India, Kenya,
and Sri Lanka.
2. Employment: Tea plantations provide jobs in rural areas for millions of workers.
3. Industrial Use: Tea extracts are used in cosmetics, supplements, and beverages.
4. Cultural Significance: Tea is a staple beverage in many societies, influencing lifestyle
and tourism.

7. Challenges

Challenge Possible Solution

Climate change Shade management, drought-resistant varieties
Pests and diseases Integrated pest management, resistant cultivars
Labor shortage Mechanized harvesting in suitable plantations
Price fluctuations Cooperative marketing and fair-trade certification

8. Tea Industry in the Philippines

Aspect Details
Primary Areas Benguet (Cordillera region), Mt. Apo (Mindanao)
Main Variety Black tea for local consumption and specialty teas
Economic Contributes to local economy, tourism, and smallholder livelihood
Importance
Challenges Limited production compared to top producers; competition with
imports

28
9. Summary Table

Aspect Tea Commodity

Scientific Name Camellia sinensis
Raw Product Young tea leaves
Major Producing Countries China, India, Kenya, Sri Lanka, Vietnam
Philippine Production Areas Benguet, Mt. Apo
Major Uses Beverage production, extracts for cosmetics and supplements
By-products Tea dust, fannings, spent leaves
Ideal Climate Warm, humid, well-drained acidic soils, moderate altitude
Economic Importance Global trade, employment, local economy, cultural beverage

10. References

1. Food and Agriculture Organization (FAO). FAOSTAT: Tea Production Statistics.

🔗 [Link]
2. Philippine Statistics Authority (PSA). Tea Industry in the Philippines.
🔗 [Link]
3. Tea Board of India. Production, Processing, and Export Data.
4. World Tea News. Global Tea Market Overview.

29
 Coconut Commodity

Production, Raw Products, and Economic Overview

1. Introduction

Coconut (Cocos nucifera) is a versatile tropical crop grown mainly for its nuts, which
provide a wide range of products for food, industrial, and cosmetic purposes. It is often referred
to as the “tree of life” because almost every part of the plant has economic value.

 Scientific name: Cocos nucifera

 Uses: Coconut oil, coconut water, copra, desiccated coconut, coconut fiber (coir),
handicrafts, biofuel
 Growth requirements: Tropical coastal regions, sandy and well-drained soils, high
humidity, and temperatures between 25–30°C

2. Global Production

Country Role
Indonesia Largest producer of coconuts globally
Philippines Second-largest producer, major exporter of copra and coconut oil
India Significant producer, domestic consumption high
Bangladesh Important producer in South Asia
Sri Lanka Produces high-quality coconut products for export

Highlights:

 Asia is the dominant region in coconut production.

 The Philippines is known for high-quality coconut products like coconut oil, copra, and
desiccated coconut.
 Coconut cultivation is a major source of livelihood in coastal communities.

3. Raw Agricultural Products

 Coconut fruit: Main raw product, harvested as mature nuts

 Copra: Dried kernel of coconut, used to extract coconut oil
 Coconut water: Liquid inside young, green coconuts
 Coconut husk (coir): Fiber used for ropes, mats, brushes, and soil conditioners
 Coconut shell: Used for charcoal, handicrafts, and activated carbon

4. Production System

1. Planting: Coconut palms are grown from seeds (coconuts) or tissue culture in nurseries.

30
 2. Harvesting: Mature coconuts are collected by climbing the trees or using mechanical
harvesters.
3. Processing:
o Copra drying: Sun-dried or kiln-dried for oil extraction
o Oil extraction: Cold-pressed or refined methods
o Desiccation: Drying the coconut meat for food products
4. By-products utilization: Husks and shells are processed into coir, charcoal, and
handicrafts

5. Main Products

Product Use
Coconut oil Cooking, cosmetics, biodiesel
Copra Raw material for oil extraction
Coconut water Beverage, health drinks
Desiccated coconut Baking and confectionery
Coconut milk/cream Food ingredient
Coir fiber Ropes, mats, brushes, soil conditioner
Coconut shell Charcoal, crafts, activated carbon

6. Economic Importance

1. Global Trade: Major export commodity for coconut oil, copra, and desiccated coconut.
2. Employment: Provides jobs for farmers, processors, and artisans in tropical countries.
3. Industrial Use: Essential raw material in food, cosmetics, and biofuel industries.
4. Cultural Significance: Integral to food, traditional crafts, and local economies in tropical
regions.

7. Challenges

Challenge Possible Solution

Coconut pests and diseases Integrated pest management, resistant varieties
Climate change Drought-tolerant and wind-resistant cultivars
Aging coconut palms Replanting programs, modern agricultural techniques
Price volatility Cooperative marketing and value-added processing

8. Coconut Industry in the Philippines

Aspect Details
Primary Areas Quezon, Davao del Norte, Bohol, Leyte, Zambales
Main Products Copra, coconut oil, desiccated coconut, coconut water, coco coir
Economic Provides livelihood for millions of Filipino farmers; contributes to
Importance export revenue
Challenges Aging trees, pest infestations, competition from imported coconut
products

31
9. Summary Table

Aspect Coconut Commodity

Scientific Name Cocos nucifera
Raw Product Coconut fruit, copra, coconut water
Major Producing Indonesia, Philippines, India, Bangladesh, Sri Lanka
Countries
Philippine Production Quezon, Davao del Norte, Leyte, Bohol, Zambales
Areas
Main Uses Cooking oil, beverages, cosmetics, coir products, handicrafts
By-products Coconut husk, shell, fiber, coconut meal
Ideal Climate Tropical, humid, well-drained sandy soils
Economic Importance Global trade, rural employment, industrial raw material, cultural
significance

10. References

1. Food and Agriculture Organization (FAO). FAOSTAT: Coconut Production Statistics.

[Link]
2. Philippine Statistics Authority (PSA). Coconut Industry in the Philippines.
[Link]
3. Coconut Development Authority. Coconut Production and Processing.
4. World Coconut Industry Report. Global Coconut Market Overview.

32
 Dairy and Poultry Meat Commodities

Production, Industry & Economic Overview

I. Dairy Commodity

1. Introduction

Dairy production refers to the raising of cattle, buffalo, goats, or other milk-
producing animals for milk and milk-based products.
Milk is one of the most nutritious foods, containing protein, calcium, vitamins, and fats
essential for human health.

The global dairy industry supplies raw milk that is processed into butter, cheese, yogurt,
cream, powdered milk, and other dairy products.

🌍 2. Global Dairy Production

Rank Country Role in Global Dairy Industry

1 India Largest producer of milk globally
2 United States Leading exporter of dairy products
3 Pakistan Major milk producer in South Asia
4 China Rapidly growing dairy market
5 Brazil Top dairy producer in Latin America
6 New Zealand World’s leading exporter of milk and butter

Global Highlights

 Global milk production exceeds 930 million metric tons annually (FAO, 2024).
 India produces over 20% of the world’s milk.
 New Zealand, EU, and the U.S. dominate international dairy exports.
 Asia is the largest milk-consuming region.

3. Raw Agricultural Product

 The raw product is fresh milk obtained from animals such as:
o Cows (major global source)
o Buffaloes (India, Pakistan)
o Goats and sheep (Mediterranean, Africa, and Southeast Asia)

4. Main Dairy Products and By-products

33
 Product Description / Uses
Fresh milk Pasteurized for direct consumption.
Butter Made from milk fat.
Cheese Fermented milk product with various varieties.
Yogurt Produced through bacterial fermentation.
Cream High-fat component separated from milk.
Powdered milk Dehydrated milk for longer shelf life.
Whey By-product of cheese; used in protein supplements and animal feed.

🇵🇭 5. Dairy Industry in the Philippines

Aspect Details
Total Milk Production Around 30 million liters annually
(2023)
Main Dairy Animals Cows, carabaos (buffalo), and goats
Top Producing Regions CALABARZON, Northern Mindanao, Central Luzon, Davao
Region
Main Uses Drinking milk, cheese, yogurt, ice cream

Philippine Context

 The Philippines imports about 99% of its milk and dairy requirements, mainly from
New Zealand, Australia, and the U.S.
 Carabao milk and goat’s milk are popular in local dairy processing and small
enterprises.

Local Dairy Products

 Kesong puti (white cheese from carabao milk)

 Flavored milk and yogurt drinks
 Milk-based desserts like pastillas de leche

6. Economic Importance (Dairy)

1. Nutritional Value – major source of calcium and protein.

2. Livelihood Source – supports smallholder farmers and cooperatives.
3. Export Potential – dairy products are high-value items in global trade.
4. Food Processing Industry – milk is a raw material for processed foods (chocolates,
pastries, beverages).

7. Challenges and Sustainability

Challenges Solutions
Dependence on imports Expand local dairy farms and breeding programs

34
 Low productivity per animal Improved breeding and feeding practices
Lack of cold storage Establish milk collection and cooling centers
Climate stress Develop heat-tolerant dairy breeds

II. Poultry Meat Commodity

1. Introduction

Poultry refers to domesticated birds raised for meat and eggs, primarily chickens,
ducks, and turkeys.
Poultry meat is one of the most consumed animal proteins worldwide, due to its
affordability, availability, and nutritional value.

2. Global Poultry Meat Production

Rank Country Role in Poultry Industry

1 United States Largest producer and exporter of chicken meat
2 China Major producer and consumer
3 Brazil Leading poultry exporter
4 India Fast-growing producer
5 Russia Significant poultry producer in Europe

Global Highlights

 Total world poultry meat production exceeds 140 million metric tons annually (FAO,
2024).
 Chicken accounts for over 85% of total poultry meat production.
 Poultry demand continues to rise due to health consciousness and short production
cycles.

3. Raw Agricultural Product

 The raw product is the live bird, which is slaughtered and processed into:
o Whole dressed chicken
o Cut-up parts (breast, wings, thighs)
o Processed meats (hotdogs, nuggets, sausages)

4. Main Products and By-products

Product / By-product Description / Use

Broiler meat Fresh or frozen chicken meat for consumption.
Processed chicken products Nuggets, sausages, canned meats.
Duck meat Popular in Asian cuisines.

35
 Chicken eggs For direct consumption and bakery use.
Feathers and blood Used in animal feed, fertilizer, and industrial materials.

🇵🇭 5. Poultry Industry in the Philippines

Aspect Details
Major Species Chicken and duck
Main Products Broiler meat and table eggs
Top Producing Regions Central Luzon, CALABARZON, Northern Mindanao, Central
Visayas
Annual Production Over 2 million metric tons of chicken meat (PSA, 2023)
(2023)
Consumption Most widely consumed meat in the Philippines

Poultry Industry Highlights

 The broiler industry (meat-type chickens) is one of the most commercialized livestock
sectors in the Philippines.
 Duck production (for balut and itlog na maalat) remains strong in Bulacan, Pampanga,
and Nueva Ecija.
 The Department of Agriculture promotes biosecurity and contract growing systems
for small farmers.

6. Economic Importance (Poultry Meat)

1. Food Security – affordable protein source for Filipinos.

2. Employment – millions of workers in poultry farms, dressing plants, and feed mills.
3. Export – processed poultry products have potential for regional markets.
4. Agro-Industry Linkage – supports corn, soymeal, and feed industries.

7. Challenges and Sustainability

Challenges Solutions
High feed cost Local corn and soy feed development
Disease outbreaks (e.g., Avian Influenza) Strong biosecurity and vaccination programs
Import competition Promote local value-added poultry products
Climate impact on production Improve housing and cooling systems

III. Summary Table

Aspect Dairy Commodity Poultry Meat Commodity

Main Product Milk and milk-based products Chicken and duck meat
Top Producers India, U.S., New Zealand U.S., China, Brazil
(World)

36
 Philippine Situation Small local production; mostly Locally produced and widely
imported consumed
Key Uses Food, drinks, desserts Food, processed meats
By-products Whey, butter, cheese Feathers, manure, eggs
Ideal Climate Temperate to subtropical Adaptable; tropical friendly
Main Issues Low productivity, import Feed cost, disease control
dependency
Economic Nutrition, value-added processing Affordable protein, job creation
Importance

Summary

 Dairy and poultry are two of the most essential livestock commodities worldwide,
providing high-quality protein and livelihood for millions.
 In the Philippines, poultry is a major local industry, while dairy remains developing
but with strong potential for growth.
 Both sectors face challenges like feed cost, import dependence, and disease, but also
offer opportunities for innovation, sustainability, and rural development.

V. References

1. FAO (Food and Agriculture Organization) – FAOSTAT: Livestock and Dairy

Statistics, 2024.
[Link]
2. USDA (United States Department of Agriculture) – World Livestock and Poultry
Production Report, 2024.
[Link]
3. Philippine Statistics Authority (PSA) – Livestock and Poultry Situation Reports, 2023–
2024.
[Link]
4. National Dairy Authority (NDA) – Philippine Dairy Industry Roadmap 2023–2028.
[Link]
5. Department of Agriculture (DA) – Poultry and Livestock Programs Overview, 2024.
6. World Bank Commodity Markets Outlook, 2024 – Global Livestock and Dairy Price
Trends.

37