Analysis of Cacao Supply in the Philippines, 1990-2019

Date

1-2021

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Antonio Jesus A. Quilloy

Committee Member

Antonio Jesus A. Quilloy, Agham C. Cuevas

Abstract

The local and global demands of cacao and its products have been increasing for the past years. On the other hand, the local supply could barely meet the local demands. There is then a need to identify the factors affecting the supply of cacao in the Philippines and two of its major-producing regions to aid in boosting its production for the next years. The study intended to analyze the supply of cacao in the country. It specifically aimed to 1) analyze the trend in cacao output in the Philippines; 2) analyze the trends in input use in cacao production in the Philippines; 3) analyze the input and output price trends in cacao production in the Philippines and its top-producing regions; 4) compare the supply estimates of the top cacao producing regions; and 5) determine the economic and environmental factors that affect caco supply. To satisfy these objectives, the study used and sourced its data from the Philippine Statistics Authority (PSA) and the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) and ran it through STATA. The models that were considered were linear, linear-logarithmic, logarithmic-linear, and logarithmic-logarithmic. Among these, the double logarithmic was deemed the most appropriate model to use.

The double logged model for the quantity supplied of cacao in the Philippines revealed that at 95% confidence level, the number of bearing trees significantly affects the dependent variable. For Davao, the model showed that at 95% significance level, the quantity supplied of cacao in the region is significantly affected by its area harvested and the retail price of ammonium phosphate. Lastly, for Caraga, the model showed that at 95% significance level, the quantity supplied of cacao is significantly affected by its area harvested and the retail price of ammonium phosphate. Meanwhile, at 90% significance level, the annual average amount of rainfall affects the quantity supplied of cacao in Caraga Region.

Based on the findings of the study, it was then recommended to provide training that focuses on rafting cacao trees to replace the old ones that significantly affect the productivity of cacao. For the area harvested of cacao, the author recommended intercropping with crps like coconut, for the expansion of area planted.other than this, intercropping could also help generate additional income for cacao farmers. It was also recommended for future researchers to include farmers' participation to gain a deeper understanding of what and how the considered independent variables affect the production of cacao. From this, specific recommendations could boost production in particular cacao-producing regions.

Language

English

LC Subject

Cacao Supply

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2021 A14 Q56

Document Type

Thesis

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