Production, Marketing and Financial Practices of Tilapia Hatchery Farmers in Sto. Domingo, Bay, Laguna

Date

1-2022

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Arlene C. Gutierrez

Committee Member

Arlene C. Gutierrez, Nanette A. Aquino, Jeannette Angeline B. Mandamba

Abstract

The study analyzed the production, marketing, and financial practices of tilapia hatchery operators in Sto. Domingo, Bay, Laguna. The objectives of the study were to (i) Define the macro and microenvironment of the tilapia hatchery farms in Sto. Domingo, Bay, Laguna. (ii) Provide the socio-economic profile of the Tilapia Hatchery Farmers in Sto. Domingo, Bay, Laguna (iii) Discuss the current production process and financial and marketing practices of tilapia fingerlings farmers (iv) Analyze the problems, strengths, and weaknesses encountered in the production, marketing, and financial practices. (v) Determine prospects and opportunities for tilapia fingerlings production, marketing, and financial practices, and (vi) Recommend solutions to identified problems and actions to address prospects in tilapia fingerlings production, marketing, and financial practices.

The interviewed respondents were mostly married males aged 31 years and above. The study analyzed the macro and microenvironment of the tilapia hatchery operators and analyzed their current production, marketing, and financial practices by tilapia fingerlings farmers in the area as well as their respective problems during the COVID-19 pandemic. Results of the macro and microenvironment analysis showed that numerous government agencies will provide support to the tilapia fingerlings operators while the economy of the tilapia fingerlings industry was affected by the COVID-19 pandemic. In addition, the microenvironment analysis showed that tilapia hatchery operators can obtain bulk discounts to operators if they order collectively and that tilapia fingerlings operators must maintain the quality of their fingerlings to retain the loyalty of their customers. Lastly, the members of the organization are also their competitors as customers will look for other operators who have their desired quantity and quality of tilapia fingerlings.

The research also analyzed the current production, marketing, and financial practices of tilapia hatchery operators in the area. Results of the study showed that the production of tilapia fingerlings is heavily affected by environmental variables such as temperature, which makes the production level unstable as its prices in the market affect the profitability of the business. However, the current net income of the tilapia fingerlings farmers interviewed is positive, indicating good financial performance. The income per pond of the respondents was 662 to 801.71 pesos, with the Return on Investment of the respondents at 28%.

Furthermore, the results of the study showed that they can collectively order their feeds so they can get discounts from their suppliers. With this arrangement, they have other operators to share the cost of wholesale farm inputs with; however, they must shoulder the marketing costs all on their own. At the end of the production cycle, the tilapia fingerlings operator's main customers are "ahentes". However, they do not have a consistent number of customers due to the fluctuating production levels in one season.

In terms of marketing, they make use of Facebook posts entirely, as they have no other marketing activities to promote their fingerlings to customers. Furthermore, they receive no marketing support from the government. The sizes of the tilapia fingerlings that are produced are 0.12, 0.14, 0.17, 0.20, 0.22, and 0.24 centimeters, which are priced at Php 1.00, Php 0.75, Php 0.50, Php 0.40, Php 0.35, and Php 0.35 respectively. Size 22 to 20 fingerlings are usually produced and sold in the months of May to August, while size 14 to 12 fingerlings are more common from September to October.

The main production problems they encounter are the seasonality of the fingerlings as well as the virus of tilapia that cause scarring on the tilapia fingerlings. The operators also lack quality documentation, that is why at the end of every production cycle, they incur a production loss of 3 to 5%. To minimize the scarring and production losses, they apply rock salt into the ponds as well as incubate the eggs of the tilapia. Furthermore, the integrated analysis also showed that the COVID-19 pandemic affected the tilapia fingerlings industry as it limited the movement of the delivery trucks of the operators.

Based on the integrated analysis, there is an increase in the number of competitors because of the decline in the number of tilapia fingerlings operators in the area. The identified threats of the tilapia fingerlings industry are substitute products, product differentiation, switching costs, and people who have the knowledge and financial capability to finance the hatchery operations. The barriers of entry are low because the areas in the barangay are readily available and can be used as production areas. The barriers to exit are also low because the equipment for tilapia fingerlings production is not specialized. Lastly, there are numerous opportunities for the tilapia fingerlings industry in Barangay Sto. Domingo. Some of these opportunities include increased income due to the supply deficit in the country, and an increased customer base because other provinces have difficulty sourcing out fingerlings. This makes it easier for the operators to dispose of their supplies.

The researcher recommended that they establish a marketing cooperative to boost their marketing activities, decrease their production costs and increase their profits by improving their bargaining power with suppliers. However, based on the readiness analysis, it was determined that they were willing to establish a marketing cooperative but were not yet ready since they lack the technical knowledge on how to run a cooperative. Moreover, they also currently lack the financial resources to start the operation of a marketing cooperative since some of the respondents still lack the income to provide for the needs of their families. These hindrances can be overcome by having operators attend seminars on how to run an agricultural marketing cooperative, while the financial barriers can be overcome by obtaining funding support from government agencies, financial institutions, or through crowdfunding to kickstart the initial operations of the cooperative.

Language

English

LC Subject

Farm produce, Marketing

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2022 M17 A54

Document Type

Thesis

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