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The Ricetourant: An Entrepreneurial Venture Report
No full textThe Ricetourant is a food and service business that serves Filipino food fusion with flavors from different local and internal cuisines. From its name, the business highlights rice, the main ingredients of all its products. The venture currently offers three product categories: Pinoy Fried Rice, Southeast Asian Fried Rice, and various Silog meals. All of which are available online, through a pre-ordering system.
Rooting from the brand\u27s vision and core values, the venture aims to kindle people to travel and connect by serving delicate Filipino cuisines incorporated with flavors inspired from the international cuisines and vice versa. With the unique food offerings, it lets the consumers travel around the different parts of the world, and helps them understand different cultures through food, providing them with exceptional experiences.
The market of the Ricetourant are household members who are curious, open, and enjoy unique food and food combo. They are also the ones who prioritize value added on the products rather than value for money. Furthermore, the business is located in Cabuyao City, Laguna where 32% of the population fit its target market. It is being run by two employees that operates a bimonthly production, where collection of orders are done in advanced through the The Ricetourant\u27s social media accounts. Orders are available for direct delivery to the customer\u27s doorstep.
With the business effectively targeting its market, there has been a continuous rise in sales, gaining them a total of Php 17,486.75 positive net income within its six months of operations. The earned profit is currently being used in financing the various operations of the business.
Given the promising opportunities for the venture, The Ricetourant plans to grow and expand its business in the future. It aims to establish its own physical store, and branch out more in the years to come
Good Manufacturing Practices Readiness of Micro and Small Fish Processors in Balanga City, Bataan
No full textFood safety on fish and fish products is becoming a major global concern as microbiological safety hazards are continuously emerging. The production and supply chain of fish is vulnerable to the introduction of pathogenic and spoilage microorganisms (Sheng and Wang, 2020). The presence of microbiological safety hazards in seafood is an indication that the food is produced in an unsanitary manner for these are not inherent among seafood products (AFDO, 2019). Microbiological safety hazards, specifically Salmonella spp. and Escherichia coli, are found in smoked fish among fish processors in Nigeria (Abegunde, 2015), Indonesia (Ariyani et al., 2018), Bangladesh (Dutta et al., 2018), and the Philippines (Abalayan, 2022). Due to the increasing incidence of food-borne outbreaks globally, consumers demand for safer foods. As a result, stricter compliance on food safety is being implemented in fishery products in the international and local markets.
However, fish processors in the Philippines are dominated by micro, small, and medium enterprises (MSMEs) that are mainly using traditional fish processing methods such as drying, salting, and smoking. MSME fish processors are swamped with many challenges that limit them from complying with food safety regulations such as Good Manufacturing Practices (GMP). The GMP presents the basic guidelines expected of food processors to comply with safe and quality standards from input up to the final product to ensure that the processors are producing safe and quality foods under sanitary conditions (Anggraini & Yuhastuti, 2014).
As the gap in the acquisition of knowledge and compliance with GMP of fish processors exist in the Philippines, harnessing global opportunities in the industry is a challenge. This gap is reflected in a very low number of fish processing plants that are GMP certified as reported by BFAR (2018). With the continuous threat on food safety in the global and local arena of the industry, this accentuates the importance of adhering to food safety regulations. However, the identification of the contributing factors in the context of the fish processing industry is an under-explored area. Therefore, the study aims to determine the fish processors’ readiness for GMP adoption.
This was done by identifying the current extent of compliance on food safety practices using GMP standards and the factors affecting its compliance among micro and small fish processors in Balanga City, Bataan. Specifically, the study aimed to (a) present the socio-demographic and enterprise profile of fish processors; (b) discuss the fish processors’ understanding of Good Manufacturing Practices, their current extent of food safety management practices and their level of agreement with the importance of GMP; (c) explain the association of fish processors’ profile in the compliance of food safety management practices; (d) identify the respondents’ perceived barriers and drivers affecting the readiness on GMP adoption; (e) describe the role of government support and industry pressure in realizing GMP adoption among fish processors; and (f) assess the fish processors’ motivational factors and its link to their attitude towards GMP adoption.
The study adopted the conceptual framework used by Najmi et al. (2023) and Arapnutud et al. (2009) in their study on the readiness of the firms for halal standards adoption and factors influencing food safety management system adoption respectively. The framework shows that the compliance to food safety management practices is affected by external and internal factors which consequently affect the readiness of the processors for GMP adoption. External factors refer to external pressures that compel firms to comply with standard practices. These include government regulations, consumer pressure, industry competition, and government support. The internal factors, on the other hand, are socio-demographic profile, enterprise profile, motivational factors, and the degree of interconnectedness.
Descriptive and correlation research design were applied in the study while the sampling method used is purposive sampling. The sample is composed of equal numbers of smoked and dried fish processors. A total number of 34 fish processors were interviewed in-person using a survey questionnaire. The primary data is comprised of respondents’ profile, level of awareness towards GMP, the extent of compliance, level of agreement to food safety/GMP importance, adequacy of GMP information, and the level of agreement to GMP adoption in relation to motivational factors, likeliness to adopt GMP due to industry pressures and government involvement. These were analyzed using descriptive statistics. On the other hand, the relationship between respondents’ profile and compliance to food safety practices are analyzed using Spearman’s correlation for interval variables and Chi-Square test of independence for categorical variables.
The data revealed that the most reported age of fish processors in Balanga City is 40 years old and 79.41% are female. The years of experience of respondents in fish processing range from 7-65 years and with 0 as the most frequently reported years. Almost all the fish processors are micro enterprises, constituting 91.18% while the remaining are considered as small enterprises. The years of their enterprise in the fish industry vary from 3-50 years, with 20 as the most frequently reported years. They processed 7 different kinds of fish for tinapa and tuyo in which most of them (64.71%) are distributing across Luzon. The strong distribution lines of the fish processors are Bicol Region, Baguio, Nueva Ecija, Pangasinan, Pampanga, and Zambales.
Moreover, it was revealed that fish processors have a low degree of interconnectedness to GMP or the extent to which they are exposed to information regarding food safety practices, particularly to GMP. This is evident in the reported level of awareness of the respondents showing that most of them (85.29%) do not know what GMP is. It is also supported with a low number of fish processors who were able to attend food safety or GMP-related training and seminars with the aim of formalizing their knowledge on safe food handling and processing of fish products. Those who answered that they understand what GMP is relate the practices towards sanitation of equipment and utensils as well as following the appropriate practices in processing the fish. Sanitation and proper processing practices are part of the components of GMP. The low awareness on GMP is also supported with 58.82% respondents that strongly disagree with the statement saying that they have adequate information about GMP.
Although fish processors are generally not well-informed regarding GMP, they show a positive attitude towards adopting GMP in ensuring that the fish is being processed under sanitary conditions, adhering to the standards of manufacturing fish products for safe consumption. This is evident to the reported overall agreement mean of 4.5 with a descriptive analysis of strongly agree. As food handlers, they also agree that it is part of their responsibility to comply with GMP and other food safety practices standards. Otherwise, their employees and consumers may be put at risk on health and safety issues. Additionally, they are also willing to change their incorrect food handling practices and 73.53% of them strongly agree that attendance in training/seminars regarding GMP or food safety is important.
Food safety presented in the study are based on GMP standards for fish processing. It was adopted from the study of Bigueja (2020) that was patterned after the Philippine National Standards (PNS). There are 6 main components of GMP that the study focuses on, and these are raw materials, equipment, facility and premises, sanitation and hygiene, personnel, and production and process control. The practices under each component are determined on how frequent these practices are being complied by the fish processors. Generally, fish processors have an overall weighted mean of 3.49 which constitutes an often-complied adjectival rating. The most complied components are sanitation and hygiene, and facility and premises.
Although fish processors have high compliance on food safety practices, gaps exist in the compliance of practices in other components such as production and process control, personnel, raw materials, and equipment. These gaps in the compliance to food safety practices using GMP standards shows that fish processors in Balanga City are not yet ready for GMP adoption as compliance to some practices still need to improve. One of the steps to analyze the compliance of the fish processors is by identifying the factors affecting it. Using Spearman’s correlation and Chi-Square test of independence, the variables that show a significant relationship to food safety practices compliance are the kinds of distribution and affiliation with other organizations.
With a p-value of 0.023 and Cramer’s value of 0.472, affiliation with other organizations shows an extremely significant relationship with compliance and this shows that being affiliated to various organizations, the higher the compliance or adoption to standard practices will be. Affiliation to different groups provide an avenue for higher exposure to food safety information, thereby increasing the degree of interconnectedness. Similarly, the distribution to various markets shows a significant relationship to compliance, revealing that as the fish processors are doing various distribution modes, the higher the compliance or adoption to the practices will be. Distributing to various markets allows fish processors to use different modes of distribution such as wholesale and retail. The pressure coming from consumers drives the efforts for compliance across all areas of GMP components.
Furthermore, respondents have identified the drivers and barriers to their compliance on food safety practices that affect their readiness for GMP adoption. There are six main drivers reported by the respondents, and these include required by the authority, adequate government support, more informed employees, favorable results of compliance, enough and available training, and adequate financial capacity. Respondents specifically enumerated the favorable results of compliance, and these involve expansion of business to grocery stores, open export opportunities and having better product quality. Meanwhile, adequate government support includes financial support, free assistance in adoption, and equal support for all fish processors.
On the other hand, 44% of the respondents were having difficulty adhering to food safety practices based on GMP standards and the barriers identified by fish processors to this are the lack of capital resources, inadequacy of skills and knowledge of the management, the lack of government support, and the bureaucratic process of acquiring certifications. The lack of capital resources includes the limited financial capacity, lack of facilities expected to a processing enterprise, and limitations due to the size of the business which hinders the respondents from fully adopting the practices. Although faced with several barriers in compliance, fish processors show a positive attitude on GMP adoption relative to industry pressures coming from various stakeholder in the business environment, These include employees, customers, competitors, regulatory bodies and government. With an agreement mean of 4.2, fish processors are likely to adopt GMP when their customers demand them to do so and when they see their competitors adopting it. Along with this, fish processors are very likely to adopt GMP due to the pressure from implementing government bodies.
Similarly, respondents show positive attitude towards GMP adoption and certification if it will yield favorable results for their business such as having larger market scope, producing more quality products, and considered as an advantage over their competitors. These motivational factors of respondents positively affect the attitude of fish processors in adopting GMP. This information provided the baseline on the readiness of the fish processors for GMP adoption, and this also provided an overview of the gaps and challenges that contribute significantly to their struggle towards readiness for GMP adoption. Thus, recommendations for easing the pain points are vital.
Affiliation to groups is found to be a significant factor in compliance with food safety management practices. With that, the fish processors of Balanga City should participate in the formation of the cooperative as this can serve as an avenue for channeling support in finances, equipment, building of networks, information dissemination, and facilitating training/ seminar. Being a member of the cooperative allows exposure to new market opportunities, food safety information, and government support which are the respondents\u27 drivers and motivational factors of GMP compliance. In addressing the low awareness of GMP information, government agencies, particularly BFAR, should capacitate fish processors by leveraging their food safety awareness to that of consumers. It can be done through providing training and seminars regarding GMP for it is a vital step in addressing inadequacy in skills and knowledge of the members of the organization to food safety practices. This will also increase the degree of interconnectedness of the fish processors to GMP information. The introduction of formal knowledge regarding GMP should be done gradually, per component and it is suggested that the focus should first be on the practices under personnel as these have the lowest level of compliance. Similarly, the local government of Balanga City should provide assistance in GMP certification, from application up to the successful acquisition of certificate and bridge them to market opportunities as a response from industry pressures
The influence of large chain supermarkets on food purchasing and its association with the diet quality of the consumers in Metro Manila
No full textPhilippines is a developing country that is undergoing rapid industralization and with this comes the growth of its food-retail sector. One commercial food-retailer that has been showing its dominance in the food-retail market is supermarket chains due to its rapid rise in branches in the urban and rural setting. This study examined the diet quality of food purcahses and typical diet of the regular consumers of known supermarket chain within Metro Manila. The research is a quantitative study that used a correlational study design. This research was able to collate data from 51 eligible respondents. Pertinent findings of the study revealed that regular shoppers patroinize supermarkets due to the location, variety, cleanliness, and price, quality of the product, convenience, and wholesale. Furthermore, food purchases was analyzed revealing that the leading purchases of consumers were ultra-processed food items such as snacks, sweetened beverages, and canned meat while fresh produces such as vegetables, fruits, and whole grains received low patronage. To determine the extent to which food purchases affect typical diet quality the correlation of HEI Purcahsed and HEI consumed were analyzed. Data revealed that out of the 13 components of the HEI, only one was positively associated which is added sugars (p=0.045)
Laboratory-scale investigation of saltwater intrusion dynamics in confined aquifers
No full textSaltwater intrusion is a major constraint to the optimal use of fresh groundwater from coastal confined aquifers. Excessive groundwater abstraction to meet growing demands from an increasing coastal population and the projected rise in mean sea level from global warming will cause seawater to encroach farther inland and threaten the available groundwater supply. There is not enough information to the distribution and extent of saltwater encroachment. Actual field monitoring is difficult and expensive. Laboratory-scale experiments provide a cheap and easy method to investigate saltwater intrusion. This study aimed to investigate the flow dynamics of saltwater intrusion, including the effects or recharge, using a laboratory-scale confined aquifer setup. A confined aquifer system with pumping and recharge wells was simulated through a flow tank using sand as the porous medium. First, the behavior of the saltwater intrusion was observed using two hydraulic gradients. The higher the hydraulic gradient, the smaller is the saltwater wedge and the lower is the intrusion rate. This followed available mathematical equation of saltwater intrusion in confined aquifers. A difference between the experimental and theoretical toe positions was observed attributed to laboratory scaling effect. Pumping experiment were done at two points with different extraction rates. Results showed that as the pumping rate increases the farther is the advance of the saltwater wedge, indicating a landward migration of the saltwater wedge. A faster rate of advance was also observed with higher extraction rate, but it took longer time to attain equilibrium. Moreover, it was observed that the closer the pumping well to the toe of the saltwater wedge, the farther the induced advance of the saltwater toe. The process of saltwater up-coning into wells near the saltwater wedge was observed during very high extraction rates. Recharge injection were also done at the same two points with different recharge rates. Farther retreats of the saltwater wedge were observed with higher recharge rates and if the recharge well is closer to the toe of the saltwater wedge. These results indicate a more effective control of saltwater intrusion. These results will help in future planning and design of control measures of saltwater intrusion
Ex-ante analysis of PCAARRD [Phlippine Council for Agriculture, Aquatic and Natural Resources Research and Development] Industry Strategic S [Science] and T [Technology] plan for coconut
No full textThe coconut industry provides the vital economic support to over 3.4M coconut farmers who are highly dependent on coconut farming. However, due to the current major challenges that the industry faces, it become difficult for the coconut farmers to cope up with these struggles. As a result, the farmer\u27s poor income, low palm productivity, limited supply of high yielding varieties, pests diseases, non-application of fertilizer and rampant cutting of palms were just among the effects of such phenomena (PCAARRD, 2012). It is in this light that the PCAARRD industry Strategic S&T Plans (ISP) for Coconut is conceived. The ISP aims to increase the nut yield from 46 nuts/tree/year to 150 nuts/tree/year; increase are planted from 3.56 M by additional 1M ha coastal areas with the utilization of somatic seedlings; and increase farmer\u27s income from PhP33,300.00 or PHP 111.00/day to 44% or PhP 47,876.00 from off-farm high value products. The baseline, benchmarks and targets of the coconut ISP were also validated from secondary data and experts\u27 opinion. Results of the validation showed that the baseline yield 46nuts/tree/year is applicable at the national level. However, at the regional level yields vary and its recommended that baselines should also be done for the regional level as well. The baseline area is also acceptable but the baseline income of farmers is consistent with the data gathered by the ICREDEP 5 projects in Mindoro. For the benchmark, the data used was 120nuts/trees on the production in India that uses hybrid and irrigation. However, from the validation with experts, we can use the data from the Philippines for farmers, who plant pre-selected varieties and practice good agricultural practices, whose average yield is already 130 nuts/tree/year. Indonesia with coconut area of 3.57M hectares was used as benchmark for area. However, it was suggested that we do away with using Indonesia as benchmark since this country has wider area compared with the Philippines. Instead, we have to emphasize the increase in coastal areas for coconut. For income, the benchmark used was from the Cogent data for Vietnam of PhP221/day. However, there are farmers in the Philippines that could earn more than this value especially those who practice good agricultural practices for coconut. The target yield of 150nuts/trees/year, as per validation with experts is achievable at the national level since there are already PCA hybrids that yield from 114-220 nuts/tree/year. However, with the regional variations in yield, the regional target must be adjusted base on the regional baseline yields. The additional 1 million expansion area must be specified that it will be for additional coastal areas. On the other hand, the target income is achievable if the farmers will do intercropping under coconut and adopt good management practices for coconut. With the on-going planned programs/project included in the ISP for the coconut, an ex-ante assessment is necessary to estimate the success of the ISP to meet the target goals as well as its modification or improvement. Thus, this emphasize the importance of conducting such evaluation for Coconut ISP. Thorough ex-ante assessments can measure expected economic value of the strategies. The Ex-Ante Analysis aims to estimate the economic value of the Coconut ISP to rationalize the use of PCAARRD-DOST funds. Specifically, the Ex Ante Analysis aims to validate the assumptions related to the indicators used in the proposed specific interventions of the particular Crops ISPs; trace and analyze the pathways by which the Science and Technology (S and T) interventions will, individually and collectively, result in the projected changes in the target sector; and identify quantity and estimate in monetary terms where possible the likely benefits and costs of the interventions for each specific ISP. Based on the strategies and interventions identified to achieve the targets of the ISP for coconut, the projects were bundled into six namely: 1)Varietal improvement selection; 2)Production of planting materials;3)Cropping system; 4)nutrients and water management; 5)Pest management; and 6)Processing/value adding based on the strategies and projects identified to achieve its targets. Analysis was carried out by bundle and then aggregated for the whole ISP. Results of the analysis showed that the ISP on coconut is worth pursuing. At 6% discount rate the NPV of the ISP from 2012 to 2020 would amount to PhP539.52M with an IRR at 47%. Extending the period of analysis to 2025 showed that the NPV will increase to PhP1,451.50M with an IRR of 54% Bundles 1,2 and 3 would have the major contributors to the aggregate NPV of the coconut IS. Although each bundle of intervention has different payback periods ranging from 2-9.24 years, the whole ISP has a payback period of 7.5 years. Bundle 5 would have the longest payback period of 9.24 years while bundle 3 has the lowest with only two years. To take care of uncertainties and determine what will happen to the economic indicators, sensitivity analysis was done for each intervention bundle. From the above results, it can be concluded that the investments in the coconut ISPs are worth pursuing even if some uncertainties are considered
Determining the Factors of Bitcoin Price Volatility
No full textThe presence of electronic wallets, online banking, and virtual currencies in the present shows how the world’s technology constantly evolves regarding accessibility and security. One of the popular currencies right now is cryptocurrencies, which are part of virtual currencies. Bitcoin, the mother of all cryptocurrencies, has already been used by millions of people and thousands of companies as an investment or for financial transactions. However, different governments are still weary of it due to its high price volatility, which is why this study attempts to determine the factors that affect its volatility.
The study introduced Bitcoin’s background and history of its creator, and how it came about. Several studies regarding Bitcoin and its mechanisms were discussed, such as its characteristics of a fixed supply and its highly volatile price. From the different studies, researchers chose several factors and various methods to measure Bitcoin’s volatility. This study specifically tested the following factors: Demand for Information, Bitcoin Trade Volume, World Market Index, Trend of Acceptance, and Event effects. The study tested these factors through the distributed lag model, and different lag periods of factors were significant.
The results showed that determining the factors affecting Bitcoin’s price volatility can be achieved and that Bitcoin investors can minimize the risk of investing in Bitcoin by studying the said factors. Hopefully, with the increasing knowledge of Bitcoin on hand, governments start to officially recognize Bitcoin as a legal tender, such as in the case of the country El Salvador
Assessment of the Financial Literacy and Loan Repayment of Rice Farmer-Borrowers of Gabay sa Kaunlaran Agricultural Cooperative in Calapan City, Naujan, Oriental Mindoro, 2023
No full textThis study assessed the financial literacy and loan repayment of rice farmer-borrowers of Gabay sa Kaunlaran Agricultural Cooperative in Calapan City and Naujan, Oriental Mindoro. The rice farmer-borrowers were categorized into two groups: good and poor borrowers based on the classification set by the cooperative itself. The financial literacy level of all 85 active rice farmer-borrowers of the cooperative was assessed based on their financial knowledge, financial attitude, and financial behavior. The socio-economic characteristics and participation in products and services of the selected cooperative were described using descriptive analysis and measured its association with financial literacy level. The Mann Whitney U Test was used to determine the significant difference between the rank-sum of the selected socio-economic characteristics of the rice farmers-borrowers of the cooperative. The loan repayment rate was also determined and classified based on the FICO credit scoring system. The association of loan repayment rate and financial literacy components was tested. The tests of association were conducted using Fisher\u27s exact test.
Based on the standard classification of financial literacy level from OECD (2013), the rice farmer-borrowers of Gabay sa Kaunlaran Agricultural Cooperative have a medium level of financial literacy, applicable to all components (i.e., financial knowledge, financial attitude, financial behavior). The study found that 19 rice farmer good borrowers have been classified with poor and excellent loan repayment rates while 26 rice farmer poor borrowers have been classified with poor loan repayment rates. Overall, 85 rice farmer-borrowers were considered poor loan repayors.
The result of Fisher\u27s exact test showed that there was a moderate association between both financial knowledge and financial behavior with loan repayment rates at a\u3c0.05 and a\u3c0.01, respectively. In contrast, the financial attitude was found to have no significant association with the loan repayment rate of active rice farmer-borrowers. In terms of the association between socio-economic characteristics and participation in products and services of the cooperative and financial literacy level, income, source of loan and availment of savings products showed a significant positive association with financial literacy with values of Fisher\u27s exact of 0.047, 0.024, and 0.003 at a\u3c0.10, a\u3c0.05, and a\u3c0.01, respectively.
Moreover, the problems encountered by the respondents influenced their financial literacy and loan repayment performance. These problems include eligibility for a loan, unstable price of inputs, unsecured crop production, and low price of palay.
Based on the results, the study recommended the cooperative to conduct training and seminars as a refresher on several financial topics while rice farmer-borrowers should increase their engagement in financial programs provided by the selected cooperative. Gabay sa Kaunlaran Agricultural Cooperative should also be able to reclassify their farmer-borrowers based on the FICO credit scoring system to properly craft their activities and programs. For future studies, it is recommended to include other independent variables such as financial management, years of experience in farming, and income allocation to assess the financial literacy of the farmer-borrowers. The study may also be expanded to include other cooperatives and barangays to test whether the results apply to the whole municipality and other cooperatives
Demand Analysis for Red Creole Onion and Garlic in the Philippines, 2018
No full textRed creole onion and garlic are of the allium family of vegetables commonly used in Filipino households. They are also known to reduce risk of certain ailments such as cancer and cardiovascular diseases. However, even though red creole onion and garlic are commonly consumed, and their demand continues to increase, studies regarding their demand are still few and outdated.
As the government continuous to protect the local onion and garlic industry, development and research centers dedicated for both commodities are considered important to improve the varieties and meet the local demand. Hence, the study was conducted to analyze the demand for red creole onion and garlic. Specifically, the study: characterized the selected household respondents of the 2018 Family Income and Expenditure Survey; determined the relationship between red creole onion and garlic; compared the demand for onion and garlic by socio-economic factors and barangay classification; identified the factors affecting the demand for red creole onion and garlic; and drawn policy implications and provided recommendations.
The study used secondary data from the 2018 Family Income and Expenditure Survey. The 2018 FIES sampling frame was also used int he study thus the 17 regions of the country were considered as the study area. Analytical procedures used descriptive and market basket analyses, t-test of means, ANOVA and LSD test, and multiple regression analysis.
The market basket analysis showed that there is an interdependence between red creole onion and garlic with a lift value of greater than one. The multiple regression analysis revealed that the demand for red creole onion and garlic were significantly influenced by their own price, price of complements, price of substitutes, income, household size, sex, educational attainment and barangay classification. Male headed households had higher demand for red creole onion and garlic than female-headed households. Households living in rural areas also had higher demand for both commodities. Households with higher income and higher educational attainment also had higher demand for both commodities. Among the socio-economic characteristics, only age was found insignificant. Own price elasticities showed that red creole onion and garlic had an inelastic demand. Garlic and carrot were considered substitutes of red creole onion while okra, malunggay, and tilapia were considered complements of garlic. Their income elasticities showed that both commodities are necessities.
The study recommends that the government policies pertaining to pricing decisions should carefully weigh how much price increase can the consumers tolerate to pay without them sacrificing their needed level of consumption. Also, when studying the repercussions if intended price policies, the likely responses in the rural areas should also be a carefully considered. They may also make appropriate demand projections using this forecast
Willingness to Pay for Groundwater for Irrigation Use on Rice Production in Santa Cruz, Laguna, 2022
No full textGroundwater, a vital but often undervalued natural resource, plays a crucial societal role. In the Philippines, the economically ground water resources remain constant, while the demand for agriculture, especially in downstream rice production, continues to rise. However, there is a lack of economic valuation studies focusing on understanding the value of groundwater in rice production, hindering effective resource management. The misallocation and unsustainable extraction of groundwater pose significant challenges that necessitate an in-depth economic valuation study to understand its value on rice production.
This study estimated the willingness to pay of farmers for groundwater for irrigation use on rice production in Santa Cruz, Laguna during the dry season of 2022. Primary data were collected from 52 rice farmers who used groundwater to irrigate rice fields through a pre-tested questionnaire administered via personal interviews. The financial price of groundwater was estimated using the cost of extracting ground water. Additionally, the study employed Contingent Valuation Method (CVM) with a single-bound dichotomous choice to estimate the willingness to pay for groundwater through a seasonal charge ranging from Php 500 to P 3,500 in support of the groundwater conservation project. The study used Turnbull estimator and sample mean estimator for the computation of the willingness to pay. Binary logistic regression model was used to determine significant explanatory variables affecting willingness to pay.
The financial price of groundwater was Php 9,759.13 per hectare, including costs of pumping equipment, fuel, lubricants, labor, and repair. Fuel cost constituted the largest expense, reflecting the fuel-intensive nature of extraction and their heavy reliance on groundwater irrigation. The willingness to pay for groundwater using Turnbull estimate and sample means estimate was Php 1,570.51 per hectare and Php 2,011.43 per hectare, respectively. In comparison with the financial price, these were lower by up to 6.2 times. Bid price, non-farming work, farming experience, sex, individual income per cropping season, and participation in groundwater conservation were found to be significant variables affecting the willingness to pay.
In conclusion, the low direct use value of groundwater reflected by the willingness to pay was due to farmers\u27 lack of knowledge on the volume of groundwater extracted, low conservation efforts and understanding of the economic importance of groundwater resources. This also prevented them from reducing the financial cost of groundwater extraction.
Based on the findings, the following were recommended: (a) installation of water pumps and employing pump schedule, (b) providing farmers with incentives for off-farm work, (c) barangay-based projects for sustainable groundwater extraction, and (d) educating rice farmers about the economic benefits of groundwater conservation
A Case Study on the Product Diversification of the Copra Business of Bato-bato Mana Corporation, Inc. in San Isidro, Davao Oriental
No full textBato-bato Mana Corporation, Inc. (BMCI) is a family-owned copra business in San Isidro, Davao Oriental, focusing on producing and managing coconut properties since 2004. In its 19 years of business, the company has already built an efficient co production system resulting in high outputs at low costs. However, even with BMCI’s efficient system, profit remains low due to the final product heavily relying general market price and demand of other processed copra products. This case study focused on the owner’s motivation for product diversification and the researcher’s ta on the company’s readiness to produce refined coconut oil.
The purpose of this case study was to evaluate the current performance of Bato-bato Mana Corporation, Inc. (BMCI) and assess if the company can enter a new market of processed products made from copra, specifically refined coconut Specifically, aimed to (1) Examine the external environment of the coconut industry the Philippines; (2) observe and describe the internal environment of BMCI; (3) assess the readiness of BMCI to expand its operations to Refined Coconut Oil production; a (4) recommend strategic action steps for BMCI to implement its chosen diversification strategy successfully.
The researcher employed a generic single case study design to present an in-depth business analysis through a qualitative case study design and a quantitative analysis of its financial performance. The researcher used primary and secondary data collect relevant information to answer the research objectives. An interview was conducted with the Operations Manager and Figurehead to obtain current business strategies, the business functions, challenges and issues the company faces, and motivation for diversification. For the secondary data, an external analysis of PEST and Porter’s Five Forces, the company’s history, profile, financial statements, opera records, and salary and wages were used to determine the company’s capability to enter the new market of producing coconut oil based on its current operations.
Based on the analysis of the collected data, the external environment shows that the coconut oil industry is attractive due to its versatility as a product but is competitive in nature due to its undifferentiated and standardized production process. On the oth hand, the current internal environment of the company was discussed through the four business functions. For the marketing 4Ps, copra is sold as a final product to local bu copra buyers in Mati City or Davao City, with prices depending on the daily commodity release by the Philippine Coconut Authority. Its current operations do not do any promotions but engage in buy and sell with small-scale farmers through word of mouth. In terms of operations, BMCI outsources its copra production activities, such as harvesting, hauling, dehusking, drying, and weeding, to contractual farmers, which amounts to a cost of production of PHP 6.27 per kilogram of copra. Its efficient operation system reflects the high outputs gained by the company through its locally grown talent. The human resources of BMCI revolve around the eleven regular employees that have been with them since the beginning. In its 19 years in the business, most of the employees have adapted to BMCI’s work culture and the work experiences provided to them. In the financial aspect, it is seen that even though BMCI produces yearly profit, financial ratio analysis shows that BMCI cannot cover its short-term obligations, t company does not efficiently use its assets to gain sales, and BMCI can cover operations from its assets, but stockholders have little control over it. The low copra market price affects the business’s gross profit and return on investment.
Moving to the business readiness assessment, the researcher created a similar content from the business functions to foresee the needed action steps for the proposed strategic direction of producing refined coconut oil as one of BMCI’s final products terms of the marketing 4Ps, the company must put in more effort into its branding, sal quotas, physical and online stores, and several packaging priced at a reasonable amount that is lower than the national average. For the operations, a 90 square meter factory will be built with a capacity of 700 liters of refined coconut oil per day located near BMCI office and copra processing plant in San Isidro, Davao Oriental. A forward integration will be adopted wherein 70% of the current copra production will be used for the refine coconut oil production, which will use approximately 60% of the refined coconut o plant capacity. To handle this production factory is seven new talents, with one person leading the operations and four labor workers that can be sourced from BMCI’s current talent pool. In terms of finances, the researcher computed the cost and revenue assumptions, projected initial investment, net cash flow, net present value (NPV), a internal rate of return (IRR) to determine the profitability of the product diversification. Based on the results, a PHP 194,139.64 NPV and a 22.17% IRR shows that the proposed strategic direction ensures that BMCI is expected to earn more than its expected costs.
Before discussing the best course of action for BMCI, the researcher also conducted a sensitivity analysis with two additional scenarios: maximum production capacity of refined coconut oil and potential copra increase in the future. The form scenario opts to outsource copra from other suppliers to attain 100% refined coconut oil factory capacity. With a cost of production amounting to PHP 30.79 per liter of refined coconut oil, this scenario resulted to a lower NPV and IRR compared to the base scenario of only 60% factory capacity. On the other hand, in looking at the probability of copra increase, profits will increase compared to the provided financial statements however the base scenario shows a much larger increase in net cash flow.
Based on the researcher’s findings and as an external analyst of the company, it is recommended that BMCI take advantage of the refined coconut oil industry by competing with a locally-made product that provides health value and is sold at a reasonable price. The go-to-market strategy for BMCI is to produce refined coconut oil with varying packages depending if it is intended for the direct or indirect channel.
In terms of recommendations, BMCI must hire a skilled and knowledgeable manager to spearhead the product diversification to pinpoint potential lapses in this case study. Also, the researcher recommends that a thorough market research is done to determine the lack of secondary data for market demand, consumption, and opportunities. In conclusion, BMCI is ready to enter the new market based on the economic, financial, and realistic implication that producing refined coconut oil is a sustainable and profitable move for the copra business of the company