Comparative Analysis of the Productivity and Profitability of Natural and Conventional Hog Farms in San Pablo City, Laguna, Philippines, 2018

Date

7-2020

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Arvin B. Vista

Committee Member

Antonio Jesus A. Quilloy, Agham C. Cuevas

Abstract

The study interviewed 44 hog raisers in San Pablo City, Laguna and selected based on the production system used. Each has 22 respondents, whether natural or conventional. This study primarily aims to analyze and compare the productivity and profitability of these farms. The productivity was analyzed using mortality rate, disease rate, average daily gain (ADG), and feed conversion ratio (FCR). The profitability was analyzed using costs and returns analysis, return on investment (ROI) and partial budget analysis. Other analytical tools such as t-test analysis, chi-square test, and linear regression were used in this study to determine the associations between the socio-economic characteristics and institutional services, production systems and productivity.

Hog raisers differ in cultural management practices and these are: 1) majority of natural hog farms prefer native hogs, while all the conventional hog farms prefer hybrids; 2) cutting of the umbilical cord is unnecessary; 3) natural feeds have a lower cost yet laborious, while commercial feeds are pricier and widely available; and 4) floorings in natural hog farms are ideal than cemented ones. The study showed that the production system adopted, using t-test analysis, is associated with age, farming experience, and credit availment. Based on chi-square test and Cramer’s V effect-size measure, the number of training and seminars attended has a typical/substantial effect on the production systems adopted.

The study revealed that natural hog farms are more productive than conventional hog farms. With the benchmark/best practice of the productivity measures, natural hog farms have an average mortality rate of 12 percent (vs. 7% - 12% in best practice), a disease rate of 33 percent (vs. 30% - 100% in best practice), an ADG of 0.16 kg per day (vs. 0.12 – 0.13 kg per day in best practice), and an average market-size of 248 kg per ten heads (vs. 200 - 300 kg per ten heads in best practice). The conventional hog farms have an average mortality rate of 13 percent (vs. 7% - 11% in best practice ), a disease rate of 50 percent (30-100 percent in best practice), an ADG of 0.75 kg per day (vs. 0.73 – 0.82 kg per day in best practice) and FCR of 2.01 (1.65-2.79 in best practice), and an average market-size of 913 kg per ten heads (vs. 950 - 1000 kg per ten heads in best practice). Result of t-test shows a significant difference between the mean productivity by production system adopted. Moreover, linear regression analysis reveals that the farms’ productivity is affected by the production system and age of a hog raiser. Younger and natural hog raisers prefer native hogs than hybrid hogs. The average net revenue of natural and conventional hog farms per ten heads is PhP 16,841.49 and PhP 4,928.07, respectively; and the ROI per ten heads were PhP 1.64 and PhP 0.29, respectively. The t-test result shows that the two production systems are statistically different in terms of profitability and that natural hog farms are more profitable than conventional hog farms.

The study suggests future research about hybrid pigs’ adaptation to the environment and feeding management is necessary to improve cultural management practices and animal welfare.

Language

English

LC Subject

Swine industry, Agricultural productivity

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2020 A14 C35

Notes

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Document Type

Thesis

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