Business Continuity and Resilience Among Selected Organic Farms in Laguna: Coping and Adaptation from Covid-19

Date

5-2024

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Eliza C. Aquino

Committee Member

Jeanette Angeline B. Madamba, Rei Chino C. Pua, Melodee Marciana E. De Castro

Restrictions

Restricted: Not available to the general public and to those bound by the confidentiality agreement. Access is available only after consultation with author/thesis adviser.

Abstract

The agribusiness sector faced unprecedented challenges during the COVID-19 pandemic, such as supply chain disruptions, labor shortages that led to business closures, and altered consumer behaviors, which emerged as critical concerns for organic farms. Moreover, the ongoing global changes, including the COVID-19 pandemic and El Niño, have brought to light the need for adaptability and resilience in agriculture, given that organic farming is a volatile industry and is too risky to continue without any assurance of what the next steps are. Laguna has been an important hub for organic agriculture given how universities and government organizations in the area are key players in the adaptation of organic agriculture, leading to the creation of Samahan ng Organikong Industriya ng Laguna (SOIL), which was given an accreditation certificate for being the first organic-certifying body in Laguna and fourth in the country under the Participatory Guarantee System (PGS).

The study aimed to determine the factors that affected the business continuity and resilience of selected organic farms in Laguna during the COVID-19 pandemic. It specifically aimed to: (1) present the socio-demographic profile of the selected Organic Farms and Organic Farmer Practitioners in Laguna; (2) classify the coping and adaptation strategies along with issues and problems among the Organic Farms during the COVID-19 Pandemic; (3) assess the existing Business Continuity and Resilience levels of the Organic Farms; and (4) formulate recommendations to address issues and challenges in developing a Business Continuity Plan for Organic Farm Businesses.

A descriptive qualitative research design was used for the study to classify the coping and adaptation strategies and to what extent they have been implemented or affected the farms. The research utilized a purposive sampling method due to the limited number of organic farms present in Laguna. The Brief Resilience Scale (BRS) was also used in identifying the resilience levels of the organic farm practitioners.

The majority of the respondents belonged to the Millennial generation. 49% of the respondents were able to finish college. Their main source of income came from their own farms (77%), and 43% of the respondents have been in the field of being an organic farming practitioner for 6 to 10 years. A large percentage of the farms are found to be large (3.00+ ha) (41%) in size, and the majority of the farms have been operating for 8 to 9 years (35%). 82% of the farms both utilize crops and livestock, wherein, vegetables (91%), along with swine (63%), and poultry (63%), are the most produced crops and livestock. The majority of the farms have never been certified (71%); only 4 out of the 17 farms will be certified organic in 2024.

It was determined that respondents did have problems with lockdown restrictions similar to what Chaudhry & Khalid (2023) claimed: restrictions and checkpoints limit farm labor accessibility. Negative impacts, such as the spoilage of vegetables due to prolonged delivery time from stopping at different checkpoints. Farms that offer agri-tourism were also heavily impacted by the loss of customers, mainly due to the very limiting protocols. Business closures, especially in restaurants, have affected the supply chain. Some of the surviving restaurants removed top-of-the-line products or dishes from the menu because no one would buy them due to the prioritization of staple foods in terms of primary needs. Support from the government, specifically the DA and MAO, was still a struggle despite being given aid and assistance. Money problems are also a major problem resulting from some of the respondents using their own money rather than money from the farm’s income.

Actions taken by the respondents during the pandemic were categorized as their coping strategies. Respondents utilized Facebook and FB Marketplace in promoting and advertising their products due to limited options for selling products. It could be concluded that Facebook is the top platform used by the respondents, which helped them during the pandemic. This became relevant due to the increasing usage of online platforms due to the restrictions of the pandemic. Using Shopee and Lazada was also revealed to help sell products such as Vermicast that were in demand during the “Plantito & Plantita” era. The shift in demand for healthier and organic products helped the businesses somewhat cope as they found the demand for the crops and livestock they produce.

Improvement of actions through learning and reflection was classified as the adaptation strategy of the respondents. According to 91% of the respondents, there were significant changes in the farms’ business function, which was to shift production from high-value crops to lowland vegetables; this is considered to be an action to adapt to the changing market demands. It could be implied that the respondents have eventually learned how to respond and mitigate the effects, which could be an indicator of how resilient these farm owners and managers are in terms of mitigation even without being prepared for these unforeseen events.

Respondents have found out how they could recover from the pandemic through four main strategies: government assistance programs, insurance coverage, collaborative efforts with other farmers, and having an emergency fund. In implementing a business continuity measure (BCM), challenges similar to what the respondents have experienced during the COVID-19 pandemic, involving insufficient funds, a lack of government assistance, and a lack of planning, were found to be the major concerns that restricted them from practicing BCM. Certification is the main goal of these respondents for their farm, which could increase marketing credibility and increase their pricing as they could market it as certified organic products. Some of them also envision their farms as an agri-tourism spot and have a restaurant for integration as they promote a seed-to-table supply chain.

It could be implied that the respondents are committed to continuous improvement that would help them navigate the farm for sustainability by participating in training programs to enhance their knowledge of sustainability. Additionally, 89% of the respondents said they were training people for the continuity of their businesses. The overall impact of the pandemic severely affected (40%) the business continuity and resilience of their farms, indicating how MSMEs like these farms have indeed been affected by the pandemic and are still recovering from the event.

Using the Brief Resilience Scale (BRS) (Smith et al., 2008), it was determined that the majority of the respondents showcased a normal resilience level when dealing with unforeseen events. The percentage of respondents with high resilience levels is also higher than those with low resilience levels, proving that most of the respondents could still have the ability to cope with a crisis and recover despite the negative effects.

The Business Continuity Plan (BCP) outlined four key Phases: Planning, Implementation, Monitoring, and Maintenance & Improvement. By systematically following these phases, organizations can enhance their ability to mitigate risks, minimize the impact of disruptions, and ensure the continuity of critical business operations. The farms were categorized into different groups based on various factors which would give a deeper insight into the unique challenges, opportunities, and needs specific to each group. Overall, the categorization approach facilitated a more nuanced understanding of the organic farming sector and enabled the formulation of more effective and targeted strategies to support the growth and development of organic farming enterprises.

Language

English

LC Subject

Organic farming—Philippines, COVID-19 Pandemic, 2020-2023

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2024 M17 P47

Document Type

Thesis

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