Profitability Analysis of Custom Hiring Service Providers in Top Rice Producing Areas in Nueva Ecija, 2021-2022

Date

6-2023

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jaymee A. Cabangbang

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

The analysis of the profitability of custom hiring service providers in the top rice producing areas in Nueva Ecija was done in conjunction with the DOST-PCAARRD funded project, "Assessing the Economics and Policy Environment of custom Hiring of Rice Mechanization Service in the Philippines. The study focused on the analysis of the profitability of government-supported and private CHS providers in top rice producing areas in Nueva Ecija. Specifically, the study described the CHS providers in the top rice producing areas in Nueva Ecija and determined the factors that affect the profitability of CHS providers. In addition, profitability, and sustainability of government-supported and private CHS providers were determined and compared. The constraints of CHS providers were identified and recommendations to improve the profitability and sustainability of CHS Providers.

Complete enumeration of CHS providers in top rice producing areas in Nueva Ecija. A total of 51 CHS providers-respondents were interviewed for the study. The analytical tools used to support the objectives of the study were descriptive analysis, net profit and operating profit margin, revenue and expenses, cost analysis, break-even point, t-test analysis, cash flow analysis, financial analysis, and SWOT analysis.

Gathering of data for the study was done during the years 2021-2022 during the COVID-19 pandemic; as such, the results of the study may not fully reflect conditions in the absence of the pandemic. The study only focused on the provision of machines for specific farm operations, land preparation and harvesting.

Results showed that government-supported and private CHS providers were profitable and able to sustain their operations by hiring out machines to the rice farmers in the top rice producing areas in Nueva Ecija. The main factor affecting the profitability and sustainability of government-supported and private CHS providers.

CHS providers are recommended to provide machinery not available but suitable in the area. Moreover, they are advised to maximize the training and seminars offered by the government. Researchers interested in custom hiring services were recommended to compare the profitability of CHS providers in different areas.

Language

English

LC Subject

Rice trade, Profit

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 P33

Notes

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Document Type

Thesis

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