Economy
[edit]
Poverty incidence of Ilagan
10
20
30
40
50
2000 40.69
2003 26.44
2006 21.60
2009 15.33
2012 17.86
2015 13.27
2018 13.85
2021 14.00
Source: Philippine Statistics Authority
At present, Ilagan has been one of the fastest-growing economies in the province of Isabela as well as in the whole Cagayan Valley over the past years. The city is the primary growth center and investment hub of the region due to the rapid commercialization and stabilization of the different sectors involved in its economy.
The transformation of Ilagan into a fast-growing city in Cagayan Valley became evident upon the assumption into office of then Mayor Josemarie L. Diaz, the re-structuring of the economic landscape of the city and the eventual transformation of its business climate into a business-friendly environment successfully lured multi-national companies in investing their capitals into its market. The economic boom began to engulf Ilagan with the entry of eight banks and financial institutions in just several months.
The Local Government of Ilagan responded positively to these developments by the enactment of legislative measures including the provision of the Investment Incentive Code which provided for tax incentives to investments. These measures eventually opened the floodgates for big investments to enter the local market that included the establishments of malls like the Xentro Mall (formerly called Northstar Mall) and Talavera Square Mall.
There are also thousands of commercial establishments composed of distributors, retail and wholesale. Pawnshops, lending companies, insurance agencies, cooperatives, and other financial institutions are spread all over the city.
Agriculture, fishery, and animal industry[edit]
Agriculture and fishery remain the main backbone of Ilagan's economy. There are almost 23,803 hectares that are cultivated land and 314 hectares are utilized for fish culture. However, the suitable farm area of Ilagan is 32,153.19 hectares with potential for crops, livestock, and fish production. This figure shows that a significant percentage (24.99%) is not being fully utilized for agricultural production leaving them idle and underutilized.
Most of the industries in the city are agri-based. For the last ten years, there has been a great number of local investment in poultry and hog raising. There are seven poultry contract growers and 33 small and medium-scale hog raisers in Ilagan. Other support facilities, warehouses, and small rice mills, strategically located in different barangays to address the storage needs of farmers during the harvest season.
Of all cities in the country, Ilagan ranks as the top producer of corn. As an agriculture-based city, it produces ample supply of corn, rice, vegetables, and legumes. Fruits like bananas are year-round products, especially in the mountainous areas of the city. Ilagan also produces seasonal fruits such as mangoes and pomelo.
The Cagayan Valley Research Center (CVRC) is an attached agency of the Department of Agriculture (DA) that serves as the primary plant breeding institution in Cagayan Valley. It is one of the Bureau of Agricultural Research’s active partners in research and development in the region. Ilagan has rich forest resources. Hectares of forest land are strictly protected by authorities like the Department of Environment and Natural Resources (DENR), several NGOs, and the Local Government Unit.
In 2018, the Department of Agriculture Regional Field Office No. 02 has pledged to intensify the promotion of mushroom production in Cagayan Valley through the establishment of the region's research and development center for the mushroom industry. The DA's Bureau of Agricultural Research (BAR) funded the construction of the Cagayan Valley Mushroom Research and Development Center which aims to support the agency's activities on processing of agricultural waste into sustainable and competitive mushroom production towards food security and safety in the region. The Department of Agriculture, through its research centers and experiment stations, had already initiated trainings on production and processing to interested farmers, cooperatives and local government units. The modern facility is located at the DA-Regional Crop Protection Center (RCPC). Its inauguration is part of DA-initiated Panagdadapun and first Makan Festival. It was done simultaneously with the inauguration of Luzon's first-of-a-kind Plant Genetic Resources (PGR) Center that was launched on May 16, 2018.
The Department of Agriculture Regional Field Office 2 (DA-RFO2) and the city government of Ilagan had agreed to establish an i-Corn Complex worth P199.2 million. The agreement was reached after a consultation meeting led by the DA Region 2 officials and representatives from other concerned government agencies. The Department of Agriculture will provide P107 million while the city government of Ilagan will provide P92.2 million for the said complex that will serve as a one-stop agri-commercial center once completed. The i-Corn Complex will serve Ilagueño corn farmers including those from Isabela and the rest of Cagayan Valley.
The establishment of the facility is also aimed to solve problems in corn production, particularly drying during the wet season. The construction of the corn complex is in support of the Agriculture and Fisheries Modernization Act (AFMA), which aims to strengthen the agri-fisheries sector in a modernized perspective to attain food security, poverty alleviation, income enhancement and profitability, global competitiveness, and sustainability. The complex is designed to be used as a post-harvest, processing, and research facility that will ensure product quality and thus boost the income of farmers. It is expected to be operational by February 2024 with the operation of the Corn Innovation Center whose construction and implementation started in August 2023. The mechanical drying facility as one of its components will help farmers cope with losses and damage during calamities. The city government donated a lot for the construction of corn complex facility.
The Corn Innovation Center is one of the flagship agri-support projects of the City Government of Ilagan's thrust for the next three years on food sufficiency and producing finished corn products as Ilagan affirms its Corn Capital title. The groundbreaking ceremony was held on July 12, 2022, led by top officials and executives of the city of government alongside officials and representatives from the Department of Agriculture Regional Office 2 and Bureau of Agricultural Research. The City Government of Ilagan pledged P10 Million as its counterpart, in addition to the P10 Million from the Department of Agriculture itself. The facility will be utilized as a training center for farmers. It is also envisioned to be the city's Tech-Hub Demonstration Center to showcase new technological advancements in corn processing and other commodities. The completion of its construction is set by the first quarter of 2024.
On December 2, 2020, then Agriculture Sec. William Dar attended the Inauguration of the P500 million 2,400 Sow level Swine Breeding Complex of the Thai-based Agro-Industrial Company, Charoen Pokphand Foods Philippines, Inc. in partnership with Sagittarian Agricultural Philippines. The Department of Agriculture also signed the Memorandum of Understanding with the City Government of Ilagan for the establishment of the P270 million Ilagan Corn Processing Center and a Memorandum of Agreement (MOA) for the implementation of the Urban Agriculture project. A joint venture of projects that is envisioned to transform the agricultural landscape of city and to support its farmers with their livelihood.
On June 20, 2023, the contract signing was held at the Ilagan City Hall for the Phase II of the 5,400 Sow level Swine Breeding Complex investment in Ilagan by Charoen Pokphand Foods Philippines, Inc., Thailand's largest agriculture conglomerate and homegrown investor Sagittarian Agricultural Philippines Incorporated. The initial capitalization of the joint venture was valued at around P1 billion and set to be completed by 2024. The groundbreaking ceremony of the said project was held on the same day.
Thai conglomerate Charoen Pokphand Group Company Ltd. through its Philippine subsidiary, Charoen Pokphand Foods Philippines, Inc. in partnership with homegrown company Sagittarian Agricultural Philippines, Inc. and the Land Bank of the Philippines is pouring in more than P1.8 billion worth of investments for the establishment of its huge animal feeds milling facility in Ilagan. The construction of the project is expected to begin by the 3rd quarter of 2024. The feed mill will be situated in a 10-hectare land that the company acquired. It will be the biggest feed mill of its kind in Northern Luzon as their Central Luzon operation is already saturated. Ilagan is known as the largest producer of yellow corn used for animal feed, earning its title as the Corn Capital of the Philippines in 2015. The average production of quality corn in Ilagan is at approximately 200,000 metric tons per year coming from its 33,500 hectares of production areas which will definitely compensate the minimum requirement for the raw materials needed by the feed mill once it becomes operational. The groundbreaking ceremony of the City of Ilagan Feed Mill Complex and the signing of the Memorandum of Agreement between Charoen Pokphand Foods, Sagittarian Agricultural Phils., Inc. and Kasetphand Group was held on May 17, 2024. This kind of joint venture between the government and private sector is essential for the delivery of basic services and business matching opportunities specifically for corn farmers who will be the primary recipient of the project. It also aims to generate more jobs and employment opportunities for Ilagueños and to spur development in the countryside.
Ilagan, known as the Corn Capital, boasts an annual corn production of 200,000 metric tons sourced from its expansive 33,500 hectares of cultivation areas. Additionally, the city yields 80,000 metric tons of rice annually from 15,000 hectares of rice fields, with fisheries contributing 250 metric tons per year from local rivers, streams, and fishponds. The dairy sector is burgeoning, evidenced by the emergence of dairy farms capable of producing 2,000 liters per hour of milk, attracting investments such as Mr. Moo Production Corporation's establishment of manufacturing facilities in the province.
Banks[edit]
As of April 15, 2024, Ilagan has a total of 22 banks with a total volume of bank deposits at ₱15.7 billion. Government banks such as Landbank of the Philippines (LBP), and Development Bank of the Philippines (DBP) are present in the city. Security Bank opened its 328th branch in this city.
Commerce and trade[edit]
There were even more establishments in 1995 with a total of 1,877 in all. The trend shows that from 1995 to 2000, there was a growth of 2.94%, but from 2000 to 2006 a decreasing growth rate of -1.75% was registered. For the year 2000, commercial trade was at 1,996 revealing that there were more or less than 201 establishments that had been closed down within the period 2000–2006. Commerce and trade are the second economic-based income of the people of Ilagan.
In the year 2006, statistics showed that there are currently 1,795 registered business establishments. Just like the past years, for the year 2006, commercial activities within the municipality are classified into wholesale, retail, and service-oriented businesses.
Food and beverage[edit]
There are several food and beverage companies in the city. The largest of which is the Coca-Cola Beverages Philippines, Inc. (CCBPI) which operates a softdrink bottling plant. Another is a vinegar and soy sauce fermentation company locally known as 'Best Choice', which is operated and owned by Robelly's Food Products and also the Jack Confectionery, which operates a wine fermentation plant. There are 15 bakeries/bakeshops and 1 ice cream/ice drop company. Aside from the increasing number of local cafés, restaurants, and several multi-national fast-food companies opened their respective branch[es] in the city.
Sagittarian Agricultural Philippines is a homegrown private agricultural company duly registered with the Securities and Exchange Commission. Established on July 18, 2016, with an initial line of business consisted of poultry production, hog-raising, fish production, and grains trading. In 2017, the company's rapid growth allowed it to expand its business into grains and meat processing, trucking, construction and real estate. The company currently operates a modern dressing plant and state-of-the-art machinery for grains processing. In 2018, it expanded its meat processing unit and launched several The Chicken Place food counter outlets within Ilagan and nearby towns. It is also the manufacturer and official distributor of frozen poultry products which include Dragon's Prime Juicy Delight and Super Fresh.
On March 14, 2024, the courtesy meeting and signing of the Memorandum of Understanding was held between the City Government of Ilagan and YCH Logistics Philippines, Inc. - IGLOO Supply Chain Philippines, Inc. for the construction of a 1-billion worth cold storage facility in Ilagan City. YCH-IGLOO is one of the best cold supply chain service provider in the Philippines and Asia Pacific Region. The joint venture between the two entities aims to provide the most cost efficient, quality and safe food handling supply chain solution in the city. It is expected to produce a domino effect in the different sectors at stake especially to manpower development, employment opportunities, expansion of agri-food processing, agro-industrial modernization and development, banking and finance, foreign direct investments, technology transfer, tourism, and compliance with the UNDP Sustainable Development Goals (SDG) - all in line with the vision of becoming a liveable city by 2030. On May 4, 2024, the groundbreaking ceremony and signing of the Framework Agreement between the City Government of Ilagan, Department of Agriculture Regional Office 02 and YCH Logistics Philippines was held during the 338th Aggaw na Ilagan celebration.
Mr. Moo's Dairy Products Incorporated is a Metro Manila-based dairy company that operates a dairy farm and manufacturing facility in Ilagan. It is an authorized distributor of a wide range of dairy products. The company purchases raw milk from local farmers and cooperatives to manufacture and produce their dairy products. On February 1, 2024, the company opened its first Mr. Moo's Milk Planet outlet in the city located along Maharlika Highway. The second outlet in Isabela was formally inaugurated on April 6, 2024, in Cauayan City.
Furniture making[edit]
One major industry is furniture making. Several furniture shops manufacture and sell furniture made of quality narra and gmelina wood once dubbed as "Butaka City" of Ilagan, where the Guinness Book of Records' entry for the biggest lounge chair in the world, the Butaka, was manufactured.
Industrial sector[edit]
The industrial sector of the municipal economy comprises 210 establishments in the year 2006 as compared with 207 in 2000. This reflects a 2.4% increase in industrial activities over six years (2000–2006). The existing industries are mostly on a micro-scale except for the Coca-Cola Bottlers Philippines, Inc. which is the only significant employment generator within the locality at that time. Following the previous year's trend, industries currently operating are agro-industries, wood-based manufacturing, or service-oriented industries.
The commercial area includes areas that are occupied by public markets, wholesale and retail stores, restaurants, banks, shops, and other establishments or structures engaged in commercial activities. The bulk of those who are engaged in trade and commerce are found in the public markets. The area covered by the commercial area is approximately 90.56 hectares or 2.62% of the urban core.
As compared to the 2000 existing commercial area of 17 hectares, the increase of 73.56 hectares in 2007 is an indication that Ilagan is racing towards commercialization.
Jeep and tricycle body building[edit]
There are nine motor vehicle assembly shops in Ilagan; five jeepney assembly shops and four tricycle side-car makers. These motor vehicle assembly shops respond to the increasing need for transportation services in the city.
Car dealership[edit]
On May 4, 2021, the local government officials and personnel of the Ilagan City Police Station attended the ribbon cutting and opening of the Mitsubishi Freeway Motors Sales Office. The establishment is the first sales office and showroom of its kind in the city.
Public markets[edit]
The city has two major public markets: the old Pamilihang Bayan ng Ilagan (now called Xentro Market) and the multi-million pesos New Ilagan Public Market Complex. In front of the public market is a three-story structure called Ilagan City Mall, the first LGU-owned and operated mall in the city. The increasing number of market-goers coming from the different regions of the city and adjacent municipalities prompted city officials to facilitate the construction of the modern market.
On November 23, 2023, the city government held the groundbreaking ceremonies of San Antonio Public Market and Marana 1st Public Market with an initial capitalization of P25 million and P50 million, respectively. Each public market is expected to cater residents from the far-flung barangays located in San Antonio Cluster and Eastern Cluster to spur growth and development in their respective communities. The target completion of the two public markets is set in 2024.
Real estate[edit]
Ilagan is home to numerous subdivisions which include Francisca Village, South Francisca Village, City Homes Subdivision, New Villa Jesusa Subdivision, Capitol Hills Subdivision, Richmond Hills Subdivision, California Homes Subdivision, Amurao Homes, Green Meadows Subdivision, Parkville Subdivision, St. Andrews Village, Big Prime Hills Exclusive Village, and Providers City San Felipe. These projects are owned by homegrown real-estate developers such as Brent Nathan Realty and Development Corporation, ITP Properties Corporation, Emmanuel Realty Services and Development Corporation, R.P. Alingog Development Corporation, CCL BIG Prime Hills, Vester Corporation and Providers Multi-Purpose Cooperative. On March 5, 2024, real estate giant, Ayala Land officially launched Greenlane Settings which is the first Avida Land development in the province of Isabela.
Retail industry[edit]
On March 19, 2021, home-grown retail giant Talavera Group of Companies expanded their presence in Ilagan with the opening of Talavera Hypermart and Homebuilders Depot located at the former Ilagan Bowling Alley.
On April 8, 2024, one of the leading and fastest-growing construction retail stores in the Philippines opened its 103rd CitiHardware store, the first in Ilagan as well as in the province of Isabela. It holds the title of being the company's largest store in the island of Luzon.
Textile industry[edit]
On June 23, 2023, the Department of Science and Technology - Philippine Textile Research Institute (DOST-PTRI), Isabela State University (ISU) - City of Ilagan Campus, DOST - Philippine Council for Industry, Energy and Emerging Technology Research and Development (DOST PCIEERD), DOST Region II, City Government of Ilagan, and the Provincial Government of Isabela inaugurated the P40 million Regional Yarn Production and Innovation Center in the province of Isabela. The production and innovation facility located at the Isabela State University (ISU) - City of Ilagan Campus is under the DOST-GIA project - DOST Inclusive Innovation Textiles Empowering Lives Anew or i2TELA Program, which is the first of its kind in Northern Luzon. The establishment of the facility is aimed to strengthen the local textile ecosystem and bridge the gaps in textile supply chain by enabling the conversion of natural raw materials into spinnable fibers for yarns from blends of natural fibers including abaca, banana, bamboo and pineapple leaf, in combination with cotton. It is designed to operate as a micro-scale yarn-spinning facility that can produce 50 kilograms of yarn per day, which is equivalent to 270 meters of handloom fabrics.
Tobacco industry[edit]
Ilagan became one of the largest producers of tobacco during the Spanish time. The tobacco monopoly caused the valley to languish in poverty from 1785 to 1797. The lifting of the monopoly was caused by the heavy loss incurred by the government. A royal decree was released in 1882 which aimed to abolish the monopoly and attracted foreign capitalists to invest in the country.
In Ilagan, the Compañía General de Tabacos de Filipinas also known as La Tabacalera was established in 1881 and produced the famous La Flor de la Isabela which was the largest company of its kind in the world at that time. The Tabacalera acquired two haciendas in Ilagan which were Hacienda San Antonio and Hacienda Santa Isabel. The majority of the western barangays of the municipality are planting tobacco other than rice, corn, and high-value crops. The National Tobacco Administration is the attached agency under the Department of Agriculture that is mandated to conduct series of efficacy trials, scientific experiments and tests on new agricultural products, inputs, systems, and processes being introduced. They recommend and certify the applicability and efficacy of the recommended tobacco technologies.