Profitability Analysis of Market Choices for Selected Lowland (Pinakbet) Vegetables in Nagcarlan, Laguna, 2019

Date

6-2021

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Julieta A. Delos Reyes

Committee Member

Agham C. Cuevas

Abstract

This study analyzed the profitability of pinakbet vegetable farmers in Nagcarlan, Laguna in terms of selling to either direct or indirect market outlet types. Specific objectives were to describe the pinakbet vegetable farmers in Nagcarlan, Laguna and their choice of markets; determine the farmers’ criteria in choosing markets for their vegetables; evaluate the farmers’ profitability with each market outlet; determine which factors influence their choice of market outlet; and identify the problems farmers encounter in the selection of a market and recommend a better alternative.

Primary data were collected through interviews using a pre-tested questionnaire. A total of 68 farmers were chosen using simple random sampling to represent those who preferred either option. Descriptive analysis, multi-criteria decision analysis, costs and returns analysis, t-test of independence of two sample means and binary logistic regression were used as analytical tools for the study.

Results showed that indirect selling was more favored by farmers than direct selling. The farmers’ top criteria were: the outlet offering fresh and a wide array of vegetables, regular buying frequency, and immediate and in-cash payments. Farmer-respondents preferred indirect selling because the middlemen purchase regularly. However, cost and returns analysis results showed that it is more profitable to sell the five vegetable types directly based on higher net incomes with net profit per 10 kg of ₱135.53 for squash, ₱336.62 for bitter gourd, ₱213.47 for eggplant, ₱133.72 for okra, and ₱212.20 for sitao. Meanwhile, income for 10 kg of tomato was a higher ₱144.30 for indirect sellers. Results of the t-test, however, showed mean differences between the net incomes generated from the two options, whichever season and vegetable type were insignificant. The variables market knowledge and distance to the nearest market had negative coefficients and were proven to be significant in influencing the farmers’ market choice while volume had a positive influence.

Recommendations made based on the results were: forming farmer groups for consolidation and faster spread of market knowledge; connecting with at least two middlemen for farmers who can only indirectly sell because of transportation costs; strategizing locations for assembly areas so that they are more accessible to farmers; and conduct of furtherstudies.

Language

English

LC Subject

Vegetables -- Marketing

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2021 A14 N33

Notes

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Document Type

Thesis

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