Economics of Post-Production Practices of Barako Coffee (Coffea Liberica) Growers Using Dry and Wet Methods, Lipa City, Batangas, 2019

Date

7-2020

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Christian Paul L. Fang

Committee Member

Christian Paul L. Fang, Antonio Jesus A. Quilloy, Agham C. Cuevas

Abstract

The study analyzed the post-production practices of Barako coffee growers using dry and wet methods in Lipa City, Batangas. Specifically, the study (1) described the post-production activities performed by coffee growers under dry and wet methods, (2) compared the quantity and quality losses, total returns, total costs and net farm incomes incurred by coffee growers under dry and wet methods, (3) estimated the changes in the net farm incomes of coffee growers under dry and wet methods from adopting interventions associated with post-production losses, ( 4) identified the factors that affect the decision of coffee growers in choosing what primary processing method to employ, and (5) listed down the problems faced by the growers in their post-production activities, and recommended possible solutions.

Proportionate stratification was done in choosing the 75 Barako coffee grower respondents, consisting of 33 Barako coffee growers adopting dry method and 42 Barako coffee growers adopting wet method. Both primary and secondary data were utilized in the study.

Descriptive analysis was used to describe the socio-economic and farm characteristics of the growers, the two primary processing methods adopted by the growers, the quality and quantity losses incurred by the growers, and the problems encountered by the growers. The volumes and values of quantity and quality losses incurred by the growers were also estimated. Cost and return analysis were used to measure and compare the total returns, total costs and net farm incomes incurred by the growers. The potential changes in the net farm incomes of coffee growers should they adopt the suggested interventions were estimated using the partial budget analysis. The Wilcoxon-Mann-Whitney test was also used to determine the significant differences in the selected socio-economic and farm characteristics, farm.gate prices, volumes sold, volumes and values of quantity and quality losses, total returns, total costs, and net farm incomes received by coffee growers under dry and wet methods. Binary logistic regression was used to identify the factors affecting the decision of a coffee grower in choosing what method to adopt.

Results of the study showed that the annual household income, amount of credit availed, selling prices of Class A and B Barako coffee beans, volume and value of quantity losses (rejects), total returns, total costs, and net farm income incurred by Barako coffee growers adopting wet method are significantly higher compared to those adopting dry method. On the other hand, age, household size, and volume of quality losses (Class B) incurred by Barako coffee growers adopting dry method are significantly higher compared to those adopting wet method. It is also apparent that the net farm income of coffee growers adopting dry method will increase should they sort the harvested coffee berries before drying, and if they shift to wet method. On the other hand, the net farm income of those adopting the wet method will increase if they also sort the harvested coffee berries before de-pulping and if they use additional de-pulper that can accommodate large-sized coffee beans. Lastly, credit awareness, credit availment, annual household income, and attendance to trainings and seminars are the significant variables that affect the growers' decision on what method to adopt.

Based on the results, the study recommended the following: (1) sorting of bean sizes should be included in post-production activities, (2) growers who are adopting dry method can shift to wet method, (3) wastes from the fermentation process should be properly disposed, ( 4) additional community de-pulper should be purchased to accommodate all bean sizes, ( 5) the local government units should conduct trainings and seminars that are topic-specific and accessible to all coffee growers, and (6) further studies on post-production activities in Barako coffee production should be crafted.

Language

English

LC Subject

Agriculture, Agricultural Production

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2020 A14 L56

Document Type

Thesis

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