Analysis on the Productivity, Profitability, and Potential Adoption of Carrageenan Plant Growth Promoter in Rice Production of Pulilan, Bulacan, 2023

Date

6-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Arvin B. Vista

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

Abstract

Carrageenan is a carbohydrate in the form of polysaccharides obtained from red algae. It is commonly used for food products, medicine, pharmaceutics, cosmetics, and industrial purposes. From 2013 to 2017, carrageenan had been tested for agriculture use. The carrageenan that is used in agriculture is irradiated which has a smaller molecular weight for easier absorption of crops. Field trials and profitability analysis studies were previously conducted in the provinces of Bulacan, Nueva Ecija, Laguna, and Iloilo, and proved that the use of irradiated carrageenan in rice production can increase both the production output and profit of farmers. These studies were done when carrageenan as a plant growth promoter was not yet commercialized, and the price was still tentative. Carrageenan plant growth promoter (CPGP) was only commercialized in 2019. The mentioned studies did not reflect the actual farm practices of the farmers as well as its profitability. Hence, this study aimed to determine the current farm practices of rice farmers while using CPGP, the productivity of these practices, and its profitability given its current price.

Pulilan, Bulacan was one of the participant municipalities in the field trials and profitability analysis of irradiated carrageenan. The municipality generated notable results from these studies. Furthermore, the local government of Pulilan provided CPGP subsidy to rice farmers. While previous studies have shown the benefits of CPGP in productivity and profitability, there was still no information whether farmers only use the product because of the subsidy. Thus, this study aimed to determine the potential adoption of CPGP and the factors affecting it. For this study, adoption referred to the willingness of the farmers to use and purchase CPGP at their own expense given prevailing price.

Ninety-seven farmers from Pulilan, Bulacan were interviewed for their production input and output data during the dry season of 2023 from the months of November to April. Forty-nine of the respondents used CPGP while 48 did not. The results of the study showed that CPGP users apply more production inputs, except seeds and rodenticide, than the non- users. This result was contrary to the previous study where fertilizer use decreased afterusing CPGP. Furthermore, the respondents only applied 5.76 liters of CPGP per hectare (ha) which was lower than the recommended rate of nine liters per ha. On the other hand, using t-test for independent samples, the rice yield of CPGP users was significantly higher than that of the non-users by 1.2 metric tons (MT) per ha with the use of CPGP, along with increased use of nitrogen in fertilizer and insecticide. Moreover, gross margin or profit of the CPGP users was significantly higher by PhP15,000 per ha compared to that of the non- users. Another factor for the profitability of the CPGP users was the higher paddy price, aside from the higher rice yield. Lastly, using probit regression analysis, the identified significant factors affecting farmers’ adoption of CPGP are CPGP cost, ease of application, and farm size. The greater the difficulty of applying CPGP, the lower chances of adoption. Meanwhile, farmers with large farms were more likely to adopt than farmers with small farms. This study suggested that farmers take advantage of the CPGP subsidy program to gain benefits in productivity and profitability. Furthermore, it was recommended that the local government of Pulilan, the Department of Agriculture, as well as the suppliers of CPGP target large farms as their main market.

Language

English

LC Subject

Growth (Plants), Rice trade

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 C78

Notes

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Document Type

Thesis

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