Credit Needs and Credit Utilization of Marine Municipal Fisherfolks in Dipolog City, Zamboanga Del Norte, 2018

Date

6-2021

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Marilyn M. Elauria

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

The sardines industry in the Zamboanga Peninsula is a multi-million industry creating jobs for the many people in the region. The industry employs about 35,000 workers per annum and disburses about Php245 million per month. However, the low income derived from fishing is generally not enough to support a poor fishing household's needs. Aside from resorting to alternative sources of income, credit is usually acquired. This study was conducted to assess the credit needs and credit utilization of marine municipal fisherfolks in Dipolog City, Zamboanga de Norte.

Using stratified random sampling, 42 respondents from a population of 405 fisherfolks were randomly selected and interviewed using a pre-tested questionnaire. The respondents consisted of 25 borrowers and 17 non-borrowers. Descriptive analysis was used to describe the socio-demographic and economic characteristics of respondent. To better understand why there were 17 non-borrower-fisherfolks, their cost and return, and cash flow were assessed. The result showed that non-borrower-fisherfolks have the necessary equity to cover all their financial requirements.

Cost and returns analysis of the borrower-fisherfolks was then conducted. Despite longer months for lean season, the fish catch is fairly low. Also, it is worth noting that despite the higher cost for the peak season, borrower-fisherfolks reported having higher net income from the said season. During the lean season, borrower-fisherfolks had an average negative net fishing income amounting to Php2,330. Meanwhile, during peak season, they had an average net fishing income of Php1,711. Results showed that the average monthly non-fishing income for both seasons was higher than the net fishing income. This implies that similar to the situation of non-borrower-fisherfolks, the other sources of income of borrower-fisherfolks play a significant role in providing funds to finance both household and fishing expenses. Furthermore, the calculated monthly credits needs of borrower-fisherfolks were Php3,640 and Php8,091 for lean and peak seasons, respectively. Regression analysis showed that annual fishing operation expenses during peak season (Php/year) and years of formal schooling have significant positive effects on credit needs. Meanwhile, total household income (Php/year) has a significant negative effect on the credit needs of respondents.

Based on the results, it can be concluded that financial incapacity is the main driver behind the fisherfolks' credit needs. The incapacity stems from the low average household income of fisherfolks, which was found out to be even lower than the region's average. Moreover, based on the evidence gathered, borrower-fisherfolks, regardless of the source of credit, are mindful and responsible for allocating the loaned money. Drawing from the results of the study, recommendations were formulated. Awareness building programs for fisherfolks on the potential use and proper management of credit must be provided. Moreover, borrowing from formal credit sources must be promoted through awareness-building lectures or Information, Education, Communication (IEC) materials. Lastly, with regard to credit applications, formal sources such as rural banks and cooperatives should consider simplifying their documentary requirements to make loan applications easier for borrowers.

Language

English

LC Subject

Credit, Fisheries

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2021 A14 Y87

Notes

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Document Type

Thesis

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