Analysis of Economic Impact of Adopting Food Safety for Chicken Eggs in Lipa, Batangas, 2019

Date

6-2021

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Salvador P. Catelo

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

This study aimed to evaluate the economic effects of practicing food safety in chicken eggs in Lipa, Batangas. Specifically, the study aimed to: (1) describe the food safety handling practices by the chicken egg producers; (2) determine the profitability of performing food safety handling practices in the farm for chicken eggs; and (3) provide possible solutions to food safety issues in chicken eggs.

Complete enumeration was used in interviewing all 12 active farms in Lipa. With the help of mean absolute percentage error, the respondents’ level of food safety adoption towards standards was evaluated. Cost and return analysis was also used to determine the profitability of chicken egg production while partial budget analysis was carried out to analyze the financial effect of changes in adopting food safety practices.

Using the mean absolute percentage error, the study found out that layer farms in Lipa, Batangas do not strictly adhere to the majority of the standard food safety practices. However, the frequency of collection, delivery to packaging stations, and days in storage room have a percentage error of 0 percent, 0 percent, and 8 percent, respectively. The results imply that among the food safety practices imposed by the recommended food safety standards, only these three practices were done by producers.

Based on the cost and returns analysis, farms spent PhP3.70 to produce an egg. Sold at an average farmgate price of PhP5.05, net income was PhP1.35 or PhP40.50 per tray with 30 pieces of egg. This translates to a return on investment of 36 percent which is higher than the less than 1 percent that most banks offer for savings.

Partial budget analysis was also used to calculate the profit change once food safety practices were adopted. Given the results, it is implied that the adoption of food safety practices is profitable. Among the postharvest practices employed with food safety practices, it is found that cleaning, sorting and grading, and storing have a positive income of PhP1.55, PhP3.45, and PhP1.99 per tray, respectively. On the other hand, collecting, packaging, and transporting have negative income of PhP0.27, PhP0.24, and PhP1.44 per tray, respectively. Despite the negative return, these practices will lessen the number of shell breakage and spoilage which directly affect the volume sold. Overall, if food safety practices are properly done, a gain of 12 percent or PhP5.04 per tray will be achieved.

Farms with less than 15,000 heads do not practice food safety due to limited budget to acquire the necessary equipment, while larger farms neglect other food safety practices since they have guaranteed market even if the quality of eggs is inferior. Thus, the study recommended the farms to consider other alternatives to turn losses into gains without compromising the quality of egg. These include: (1) arranging pick-ups in the farm instead of delivering to the market; (2) educating the farmers on the merit of using food safety practices in terms of health aspect and marketing opportunities; and (3) organizing the layer farmer association in such a way that collective marketing will be promoted to reduce costs on marketing and food safety.

Language

English

LC Subject

Eggs -- analysis

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2021 A14 D45

Notes

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Document Type

Thesis

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