Based on the most recent data gathered, utilization of crop protection chemical products continues to become more prevalent among Filipinos. The most extensively used pesticides in the Philippines now include insecticides, which account for 51% of the total market: 21% herbicide, 14% fungicide, and the remaining 14% are others.

These agricultural chemicals are used in crops such as rice, which constitutes 3.3 million hectares plantation area; corn that constitutes 3.2 million hectares; pineapple that constitutes 67,000 hectares of plantation area; and banana, which constitutes 25,000 hectares of plantation area.


Crop Protection Association of the Philippines (CPAP)

At the mainstream of this industry sub-sector is the Crop Protection Association of the Philippines (CPAP), the leading trade association of agricultural chemical businesses in the country. CPAP spearheads the efforts of making available the different types of crop protection products. Its primary mandate includes the manufacture, importation and sales to distributors or end-users of these products. Composed of 19 members, CPAP's vision is to ensure better harvest, health and environment through the proper use of agricultural chemicals.

CPAP works together with the Fertilizer and Pesticides Authority (FPA), a government regulatory and licensing body that oversees the distribution of crop protection products.

The fertilizer industry in the Philippines has shown a modest growth of about 8 percent per year during the last ten years. The annual consumption of fertilizers consists of 55% urea and ammonium sulfate, 40% phosphatic fertilizers, and 5% potash, amounting to more than 1.5 million metric tons per year. Urea, potash and half of the ammonium sulfate are imported while all the phosphatic grades (NP/NPK) and the rest of the ammonium sulfate are produced locally.

The industry has been liberalized in 1987 fostering free competition particularly in the urea market. The tariff on imported finished fertilizers, which was fully subsidized by the government through the Fertilizer and Pesticide Authority was restored at 3% for urea, ammonium sulfate and potash, and 5% for the phosphatic grades. As further incentive for the local producers of fertilizers, the government continues to provide subsidy for the tariff on raw materials.


Producers of Compound Fertilizers

There are presently four producers of compound phosphatic fertilizers in the country with a combined capacity of 1.52 million metric tons per year.

PHILPHOS currently exports 70 percent of its output into South East Asia. The balances, together with the output of the other producers are consumed locally.