(WDRCF/82/WP5)

ANNEX I
COUNTRY SITUATION PAPER - PHILIPPINES

The Status of the Rural Coastal Fisheries in the Philippines

by

A. Pulanco, J. Dickson, F. Gante and L. Signey

1. BRIEF BACKGROUND ON THE PHILIPPINE FISHERIES INDUSTRY

Fishing is an important lucrative industry in the Philippine archipelago of some 7 107 islands. In fact, fish is one of the staple foods of Filipinos, second to rice and is considered as one of the cheapest sources of protein. In 1980, the industry contributed 11.6 billion or 4.4 percent to the country's gross national product.

1.1 Resources

The marine waters of the Philippines has a total area of 1 666 000 sq km. About 266 000 sq km are coastal areas which cover waters from the shore to 200 m depth. The present traditional fishing grounds consist of only 126 500 sq km and the rest are practically unexploited by commercial fishing. With the declaration of the 200–mile exclusive economic zone, the Philippines has expanded its marine waters with an additional area of about 450 sq km in the China Sea and the Pacific Ocean.

1.2 Production

The total fish production of the Philippines by fishery sector from 1976–1980 is shown in Table 1. During this five-year period, total fish production in terms of quantity increased by 20 percent from 1.39 mt in 1976 to 1.67 mt in 1980 exhibiting an annual average growth rate of 4.7 percent.

CY 1980 production from the Philippine's ten major fishing areas as shown in Table 2 indicates that Visayan Sea and Moro Gulf were the two most productive fishing grounds while Table 3 reflects the ten major species of fish caught in Philippine waters with roundscad and sardines being the two most predominant species.

1.3 Foreign Trade

Exports of fish and fishery production increased from 23 974 mt in 1976 to 76 179 mt in 1980. Frozen, chilled tuna topped the exports in 1980. On the other hand, imports exhibited a declining trend from 64 110 mt in 1976 to 53 402 mt in 1980. Chief imports consisted of canned fish and fish meal.

2. THE MUNICIPAL FISHERIES SECTOR

2.1 Definition

As stipulated in Presidential Decree 704 (PD 704), otherwise known as the Fishery Decree of 1975, the term “municipal fisheries” refers to fishing that utilizes boats of 3 gross tons (gt) or less, or uses gear not requiring the use of boats. The area of operation known as municipal waters, includes not only streams, lakes and tidal waters within the municipality but also marine waters within 3 nautical miles of the municipal coastline. With the introduction of motorized boats however, the actual area of operation of vessels registered in municipalities now extends to far beyond 3 miles. Municipal fisheries thus include both marine and freshwater (inland) fishing activity and are roughly equivalent to the artisanal, small-scale or traditional fisheries referred to by other countries. All non-municipal marine fisheries activities in the Philippines are termed “commercial”.

2.2 Major Trends in Municipal Fisheries

2.2.1 Production/Contribution

The municipal fisheries sector is considered as the largest segment of the Philippine fishery industry. Its contribution to the country's annual fish production is very significant maintaining an approximate 55–60 percent share of the total catch and gaining a 36 percent production increase from 772 525 mt in 1976 to 1 047825 mt in 1980 indicating an average growth rate of 8 percent for the 5–year period (Table 4).

Table 1
Total fish production by fishery sector, 1976–1980

Year	Commercial		Fishponds		Municipal		Total production (m.t.)	Total value ()
	Quantity (m.t.)	Value ()	Quantity (m.t.)	Value ()	Quantity (m.t.)	Value ()
1976	508 197	2 697 760	112 761	845 704	772 525	3 754 471	1 393 483	7 297 936
1977	518 165	3 543 212	115 756	891 321	874 934	4 374 670	1 508 855	8 809 203
1978	505 840	3 465 214	118 682	949 456	955 882	5 062 606	1 580 404	9 477 276
1979	500 747	3 512 246	133 598	1 202 382	946 958	5 822 119	1 581 303	10 536 747
1980	488 478	3 784 734	135 951	1 386 700	1 047 825	6 472 916	1 672 254	11 644 350

Source: Fisheries Statistics of the Philippines 1980 BFAR, Quezon City

As shown in the table, marine municipal fisheries represented the major bulk of the total municipal fisheries production throughout the period with the inland municipal contributing the balance. The former exhibited an increasing trend in quantity during the first three years then dropped slightly by 5 percent in the fourth year, then increased substantially in the fifth year. In terms of value, the marine municipal subsector showed a favourable trend. The movement of the inland municipal subsector quantity-wise is positive all through the period yielding an average growth rate of 23 percent while its value dropped significantly in the third year gaining momentum in the fourth and fifth years. Production of this unit notably from Laguna de Bay and other important lakes and rivers in the country increased from 153 390 mt in 1976 to 285 420 mt in 1980.

Breakdown of marine municipal fishing production by gear is given in Table 5 with the observation that gill/ entangling net and hook and line are the two most predominantly used fishing gears.

Furthermore, marine municipal fishing production by region for CY 1980 is presented in Table 6 showing the biggest share of Region IX (29 percent) followed by Region V with 16 percent contribution.

Being the largest producer, municipal fisheries highly contribute in meeting the nutritional needs of the average Filipino. In addition to this, it contributes approximately 3 percent of the annual GNP and provide employment to about 5 percent of the Philippine working force¹. The sector is estimated to provide livelihood to some 600 000 Filipinos who live in fishing barangays scattered in coastal villages throughout the country.

2.2.2 Fishery units

Per Inventory of Fishery Units Household Survey last December 1977, jointly implemented by MNR, FIDC, NEDA and NCSO estimated number of municipal fishermen was 365 388 representing those directly engaged as full-time fishermen (Table 7). The major regions where municipal fishermen are located are Central Visayas (Region VII), Southern Tagalog (Region IV), Eastern Visayas (Region VIII) and Bicol Region (Region V) which account for 37 percent of the total.

Table 4
Municipal fisheries production, 1976–1980

Year	Marine Municipal		Inland Municipal		Total production (m.t.)	Total value ()
	Quantity (m.t.)	Value ()	Quantity (m.t.)	Value ()
1976	619 145	3 316 474	153 380	437 997	772 525	3 754 471
1977	712 514	3 825 855	162 420	548 815	874 934	4 374 670
1978	775 932	4 655 043	179 950	407 563	955 882	5 062 606
1979	737 587	5 280 212	209 371	541 907	946 958	5 822 119
1980	762 405	5 478 819	285 420	994 097	1 047 825	6 472 916

¹ Philippine Municipal Fisheries: A Review of Resources, Technology and Socio-Economics by Ian Smith. M. Puzon and C. Libunao.

* Figures by regions, not by gears

Source: Fisheries Statistics of the Philippines, 1976–1980

Source: Fisheries Statistics of the Philippines, 1980 BFAR, Quezon City

Likewise, Table 7 shows the production units under the municipal fishing sector. Out of the total number of 214 797 fishing bancas in 1977, 134 027 units or 62.5 percent were nonmotorized and 80 770 units or 37.6 percent were motorized. The highest number of fishing units were found in regions IV and VII. The bancas consist of relatively narrow-hull, the base of which is a dug-out, made of tropical hardwood, and the walls are of marine plywood. They are equipped with outriggers for stabilization. However, some are without out-riggers and only using sails and paddles. These bancas are between seven to ten meters long and if motorized, they are powered from 6 to 16 hp gasoline engines. In addition, small-scale fishermen also use bamboo rafts to carry their small gears in shallow waters of the coast where the banca cannot operate. The rafts consist of 6 to 8 season bamboos, 5 to 8 m long and tied side by side by means of a wire. The rafts are very advantageous as they are low cost and easily carried into the beach after fishing operation.

Source: Inventory of Fishery Units Household Survey, December 1977 MNR, BFAR, FIDC, NEDA and NCSO

Majority of the coastal barangays have similar fishing gears being operated by the fishermen. Usually, the type of fishing gear used depends on fish resources in the area, fish behaviour and bottom topography of the coastal fishing areas. Since they operate mainly in municipal waters using the banca, the gears are also small to suit the capacity of the craft. The fishing paraphernalia generally used in catching fish are composed of 45 types of fishing gears of which 35 types are commonly used in medium and small-scale fishing. Productive gears widely operated by municipal fishermen are 11 fishing gears namely: the gillnets, beach seines, longlines, troll lines, handlines, ringnets, baby trawl, fish coral, fish pots, bagnets and hook and line.

2.2.3 Changes experienced by small-scale fishermen

2.2.3.1 Increase in price of fuel

Fuel that is required by about 50 percent of municipal fishing boats had increased considerably. Price of regular gasoline liter in 1976 was 1.00 as compared to 4.59 per liter in 1980. Price of diesel fuel per liter was 0.92 in 1976 while in 1980, the price was 2.65 per liter.

2.2.3.2 Increase in price of fishing nets, boats, engines

The price of the above inputs for the municipal fisheries sector had increased more than three times from 1976–1980.

2.2.3.3 Introduction of new and efficient coastal gears

Several low-cost but efficient fishing gears using cheap and indigenous materials have been developed and used in the coastal fisheries. These gears include the payao (fish shelter), baby purse seine, drift gillnets, set bottom longline, stationary liftnet (new look) and the trap net (lambaklad).

2.2.3.4 Alternative sources of livelihood

Small-scale fishermen in many parts of the country are now engaged in other fishing activities other than the capture fisheries in the municipal sector. These are the fish cage fishpen culture of freshwater species in Laguna de Bay and other freshwater areas and seafarming like oyster, mussel and seaweed culture in coastal waters.

2.3 Development Undertakings for Municipal Fisheries

Major programmes and projects for municipal fisheries development as embodied in the Integrated Fisheries Development Plan (IFDP) and Expanded Fish Production Programme (EFPP) include the following:

2.3.1 Credit programme

2.3.1.1 Biyayang Dagat Programme (BDP)

The BDP Credit Programme being jointly implemented by MNR/BFAR, FIDC and PFMA in coordination with government financing institutions, i.e., rural banks, PNB, DBP, was developed for small and medium-scale fishermen in response to the President's directive to launch a type of financing similar to rice's Masagana 99 programme. The programme is granting loans for the acquisition of bancas and paraphernalia, production costs of small fishponds, seafarming activities and fry collection. Since the launching last September 1979, a total of 70 million in loans have been granted to some 5 374 fishermen-borrowers.

2.3.1.2 Kilusan sa Kabuhavan at Kaunlaran (KKK)

The KKK is a movement which envisions the transformation of each barangay into a vibrant and productive entity that plays a more active role in the creation of employment and generation of income for our people. Aquamarine or fisheries is one of the identified major prototype projects of KKK and the group of marginal fishermen is one of the priority beneficiaries of this national livelihood programme.

BFAR as lead implementing agency (LIA) for KKK is committed to: (a) provide technical assistance in the identification, activation, operationalization and supervision of viable fisheries projects; (b) provide adequate supply of fry fingerlings for aquaculture projects of private enterpreneur recipients of KKK loans, and (c) provide assistance in the form of training lecture demonstration to KKK aquamarine beneficiaries. Since its launching last September 11, 1981 a total of 35 million have been approved by KKK as loans to various fishermen fishfarmers involving 140 projects. An initial release of 8 million for some 45 projects has been granted.

2.3.1.3 Third Credit Line

Credit through DBP for financing the small and medium-scale fishermen sub-projects amounted to US$30.80 million. The World Bank DBP Third Credit Line has a total project cost of US$140.7 million. World Bank loan was negotiated last June 1980 and the loan agreement was signed 4 August 1980. Project is underway.

2.3.2 Extension services and training

2.3.2.1 Extension services

This comprises the rendering of technical assistance to sustenance fishermen on the improvement motorization of fishing bancas, fishing gear design and construction, introduction of better fishing method. Preparation of project proposal to secure loans, etc. Assistance in the formation of samahang nayon, fishermen's cooperative and fishermen's associations to facilitate acquisition of inputs and marketing of catch are also being provided. For CY 1981, BFAR extension workers covered 14 347 bancas and assisted fishermen in net construction, fishing gear operation, rigging and preparation of feasibility studies for loan purposes.

To date, the 142 fishermen's associations organized by Project FIRM in 28 provinces and 8 cities in 9 regions of the country having a total membership of 5 622 sustenance fishermen have been functioning as a conduit for development. Of the total number of FA's so far organized and registered with Securities and Exchange Commission, 57 are presently in their various stages of implementing income generating projects covering both marine and inland municipal activities which were made possible through government and private financing.

2.3.2.2 Training programme

Training of municipal fishermen on the rudiments of boat design, construction and or repair of fishing nets and gears and use of improved fishing techniques for CY 1981, a total of 2 393 sustenance fishermen were trained.

Seven regional fishermen's training centres (RFTC's) were established in Palawan, Panabo, Davao, Tabaco, Albay, Zamboanga City: Catbalogan, Samar, Carmen, Cebu and Aparri. Cagayan in coordination with MEC/EDPITAF through a World Bank loan and will be fully operational by mid-1982 to provide semi-formal fishery training aimed at transferring available skills and knowledge to fishermen to help increase their production and improve their standard of living.

2.3.3 Seafarming

To help survival fishermen find alternative sources of employment and job opportunities, 51 seafarming projects which serve as demonstration centres were established and are being operated by BFAR in strategic coastal areas of the country. Oysters, mussels, seaweeds, shrimps, pearls, lobsters and finfishes are produced in these farms. Seafarming is looked to as one of the areas where efforts of municipal fishermen can be redirected from the purely fish catching activities currently undertaken in order to reduce fishing intensity to tolerable levels.

Mussel culture undertakings at Tinagong Dagat Island, Maqueda Bay, Panay, Capiz has yielded a remarkable production of 300 m.t. per hectare. Oyster cultured undertaking at Tinagong Dagat, Wawa, Bani, Pangasinan, Bacoor, Cavite and Carmen, Cebu has also produced thousands of oyster seedlings for dispersal to interested private oyster farmers. Eucheuma culture at Sulu. Tawi-Tawi and Sacol Island, Zamboanga City has further yielded remarkable quantity of Eucheuma seedlings for free distribution to private Fucheuma farmers.

2.3.4 Research

This constitute applied research on municipal fisheries development, i.e., limnological surveys investigation of inland waters, socio-economic surveys and field testing of improved municipal fishing gears.

2.3.5 Integrated Rural Area Development Projects

These refer to a packaged programme for countryside development wherein municipal fisheries is a major component. Examples of these projects are the Bicol River Basin Development Project. Leyte Sab-a basin, Samar Leyte Integrated Project, Mindoro Rural Integrated Project, Cagayan Valley Integrated Project, etc.

2.3.6 Marketing Programme

This concerns the improvement of marketing and reducing post-harvest losses. At present, BFAR operates 28 ice plants and cold storage units to make ice available in strategic sites for efficient fish handling and distribution. Likewise, lectures and demonstrations on handling and processing are being conducted to interested persons mostly housewives, teachers, out-of-school youth and families of small fishermen.

The Philippine Fish Marketing Authority (PFMA) is currently undertaking the Municipal Port Development Programme which aims at developing quality-conscious fish marketing practices. Prioritized areas for this particular project are Coron and Culion, Northern Palawan. This is being implemented through assistance of the Asian Development Bank.

2.4 Problems Presently Confronting the Small Fishermen

The root problem of small-scale fishermen is the low standard of living, or more specifically, low income. The main causes of which are:

2.4.1 Resources Aspects

• low volume of catch caused by overfishing, dynamite fishing, use of fine-meshed nets, etc.

• destruction of coral reef areas which is estimated as source of 20 percent of municipal fisheries production.

• competition between traditional methods and more advanced methods.

2.4.2 Technology Aspect

• high prices of fishing equipment and inputs, especially fuel

2.4.3 Marketing Aspect

• difficulties in preserving fish catch; spoilage in remote areas

• distance of fish producing/processing areas to markets

• fish prices are controlled by middlemen

2.4.4 Social Aspect

• catch sharing system resulting in low income to fishing labourers who can neither own vessel or gear.

3. SUMMARY

The municipal fisheries is undoubtedly the largest component of the Philippine fisheries industry for the past two decades including the latest 5-year period 1976–1980 accounting for a major share of 60 percent over the other two sectors-the commercial and aquaculture/fishpond. Ironically, however, the low living standards of municipal fishermen has been a perennial problem. Real incomes of this group are observed to be deteriorating and recent socio-economic survey results show average cash income levels for this people to be roughly half the poverty thresholds established by the Development Academy of the Philippines (Abrera, 1976)¹. Rapid inflation since 1972 has been a major cause of declining real incomes (WB 1976), exacerbated primarily by increased fuel costs.

Indeed, the problems surrounding the low income of small-scale fishermen pose no clear cut/exclusive solution but require an interplay of many interrelated factors. It is not merely the provision of credit for the acquisition of boats and gears or solely the enforcement of fisheries administrative orders that would dispel poverty. Rather, the complexities of the situation demand a thorough planning, strong implementation mechanisms drawn from adequate and reliable municipal data base.

The government, nevertheless, does not cease in taking bolder steps in order to alleviate the plights of this most heterogeneous group of people. With the various government programmes and undertakings, all geared towards the development of municipal fisheries and with the increased participation of the private sector, coupled of course with the intense enthusiasm and cooperation on the part of the rural fishermen themselves, relief from the above dilemma would not be remote.

¹ ICLARM-FIDC Publication on Municipal Fisheries: A Review of Resources, Technology and Socio-economics.