Assessment of Credit Needs of Maliputo (Caranx Ignobilis) Farmer-Operators in Taal and Lemery, Batangas, 2023

Date

6-2023

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Christian Paul L. Fang

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

Fishing is one of the main sources of livelihood for the residents of Taal and Lemery, Baangas. Among the aquaculture product in the area, maliputo cage production stands out. However, no studies have been conducted to assess the credit needs of maliputo farmer-operators in the region. Therefore, the objective of this study was to assess the credit requirements of maliputo farmer-operators, focusing on five specific goals: (1) describe the socio-economic and credit-specific characteristics of these operators, (2) determine the capital requirements for maliputo production, (3) analyze the cash flow of maliputo farmer-operators, (4) examine the factors influencing their credit needs, and (5) identify the current challenges faced by farmer-operators in maliputo production and credit availment.

The study was conducted in five barangay in Lemery and one barangay in Taal. Interviews were conducted with 60 maliputo farmer-operators using a pre-tested questionnaire. Descriptive analysis, capital requirements, cash flow analysis, and multiple regression analysis were employed as analytical tools.

The capital requirements for maliputo production were determine by estimating the operating and investment costs involved in the production. Operating costs for a 6-month production period totaled to Php 101,425, with the assumptions that the maliputo farmer-operators do not skip feeding. Investment costs which include the items for cage construction that will fit the standard cage dimension of 4m x 4m x 3m amounted to Php 42,950. Cash flow analysis was used to assess the credit needs, considering various maliputo production, non-maliputo production and financing activities of the operators. Fourteen different categories were identified as the respondents did not have a similar production cycle. The credit needs varied across different categories, ranging from Php 21,550 to Php 240,514. This implies the high needs for credit of maliputo farmer-operators for their succeeding production cycles. Results from the multiple linear regression showed that household size, culture period, and number of cages positively affect the credit needs while income from other sources negatively affect credit needs.

The study also identified challenges faced by maliputo farmer-operators, including the lack of capital, high feed and fingerling prices, and shortages of wild-caught fingerlings. Prices of inputs were increasing, making it difficult for them to generate profits without adjusting selling prices.

In conclusion, financial constraints resulting from high input costs and household expenditures were found to be key factors driving the credit needs of maliputo farmer-operators. Insufficient household income and negative perceptions of borrowing from credit sources contributed to these constraints. Addressing these challenges by providing suitable credit options and promoting and improving financial literacy will support the productivity and sustainability of maliputo farming in the region, as well as uplift their economic well-being.

Language

English

LC Subject

Fish trade, Credit analysis

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 R37

Notes

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Document Type

Thesis

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