Supply Response of Coconut 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

Coconut is considered a major export, contributing about 3.6% of the Philippines agricultural gross value-added (GVA) but there are still problems and difficulties evident in the industry. One of the major problems is its low productivity that is further aggravated by many factors including the growing area of senile coconut and numerous pests and diseases that reduced its productivity. The specific objectives of the study were to analyze the trends in the production of coconut in the Philippines and output price of coconut and prices of related inputs, and to determine the factors that affect the production and supply of the coconuts. Descriptive statistics was used to analyze the trends. Parameters in multiple regression models was estimated using the Ordinary Least Squares (OLS) estimation method and multiple linear regression was used to determine the factors that influence the supply of coconut and the response of coconut supplies to changes in prices.

The results of the Multiple Linear Regression (MLR) showed that the number of coconut bearing trees, and the retail price of potassium chloride (muriate of potash) are statistically significant variables affecting the supply of coconut in the Philippines from 1990 to 2019. It also showed that the number of bearing trees, the retail price of potassium chloride (muriate of potash) fertilizer, and rainfall had a positive relationship with the supply of coconut in the Philippines. Conversely, the temperature, the farm gate and the lagged prices of mature coconuts showed a negative relationship. One of the major factors that affects the supply is the

increasing amount of senile coconut trees and rainfall in the Philippines. With these, the cut and replanted senile trees may be used as coconut lumber, which would be available for economic utilization. As for the latter, the Department of Agriculture, through the Philippine Coconut Authority, maximizes its current resources in order to prioritize and respond to the needs of coconut farmers in the typhoon-affected communities and help them recover.

Language

English

LC Subject

Suppl Response, Coconut

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2021 A14 E45

Document Type

Thesis

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