Analysis of Onion Farmers' Market-Oriented Production Planning and its Implication on Profitability, Bongabon, Nueva Ecija, 2024

Date

6-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Charis Mae T. Neric

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

Abstract

This study assessed the farmers’ adoption toward market-oriented production planning and its implications on profitability in Bongabon, Nueva Ecija. The specific objectives were to: describe onion farmers' production and marketing practices, assess their knowledge, attitudes, and practices regarding market-oriented production planning, determine their costs and returns, analyze factors influencing their attitudes and practices, assess their production and marketing decisions, identify issues and constraints they encounter, and recommended actions to address them. For methods, both primary and secondary data were used in the study. A total of 92 onion farmer respondents in Brgy. Pesa Bongabon, Nueva Ecija were interviewed using structured questionnaires. Using the Knowledge, Attitude, and Practices (KAP) survey, 66 respondents were classified as market-oriented production farmers while 26 respondents were classified as non-market- oriented production farmers. The study used the following analytical tools: descriptive analysis, cost and returns analysis, binary logistic regression, comparison of means using t-test, and two-way analysis of variance.

Results of the study showed that the practices conducted by onion farmers in Bongabon include growing, harvesting, storing, transporting, and selling onions. Planting season is from late September to November, while harvesting occurs between December and February. Farmers transport their harvest to trading centers or the nearest market, while buyers and agents commonly visit farms to purchase onions per kilogram or bag. The cost and returns analysis per hectare and per farm showed that market-oriented production farmers received higher returns and net farm income. The findings meant that the market- oriented production farmers are more profitable and more efficient at converting sales into actual profit. The binary logistic regression model revealed that socio-economic factors such as household income and behavioral factors such as membership in associations and attendance at MAO-sponsored trainings, significantly influenced farmers' adoption toward market-oriented production planning. Using two-way ANOVA test, it was revealed that market-oriented production farmers obtained higher profits given available capital, were not engaged in contractual agreements, not practice storing, transporting, and selling onions to regular buyers. The significant problems in onion production and marketing encountered by farmers include lack of irrigation, high losses due to pest infestation, unfavorable weather conditions, high input costs, and price competition with imported onions. The study concluded that adopting market-oriented production planning positively impacts the profitability of onion farmers.

Given the results, the study mainly recommended providing continuous training and support from Local Government Units (LGUs) by offering subsidized inputs and small-scale irrigation systems to help onion farmers reduce their production costs. Additionally, the study recommended to encourage farmers to join associations and trainings, which would enable them to make more informed decisions regarding market- oriented production planning.

Language

English

LC Subject

Vegetable trade, Production planning

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 M36

Notes

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Document Type

Thesis

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