Risk Analysis of the Operations of J&F Aquatic Resources Farming Corporation in Zambales

Date

1-2023

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jewel Joanna S. Cabardo

Committee Member

Maria Noriza Q. Herrera, Remund D. Labios, Mar B. Cruz

Restrictions

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

Abstract

Milkfish is the top aquaculture fish species produced in Zambales, accounting for approximately 93.15% or 8,531,449 kg of the overall estimated total aquaculture production in the province (BFAR, 2022). In 2022, there are 8 registered milkfish cage operators in Zambales with J&F Aquatic Resources Farming Corporation ranking 2nd with an estimate annual production of 1,249,600.00 kg.

Despite the huge socioeconomic value that the company provides to the province, it's sustainable development is still hampered by various risks arising in its operations including fish stock depletion, high input costs due to feeding requirements, price fluctuations, feed supply insufficiency, reliance on imported fry, presence of multilayered distribution channel, and vulnerability to climate change among others. Hence, risk analysis on the operations of J&F Aquatic Resource Farming Corporation was conducted to identify and assess the risks occurring in its operations as well as proposed risk mitigation strategies to boost the productivity, profitability, and resiliency of the company.

The Supply Chain Operations Reference (SCOR) model was used to identify and categorize the different business activities of J&F Aquatic Resources Farming Co. into five major processes namely plan, source, make, deliver, and return. The ISO 31000:2009 along with the House of Risk (HOR) Framework were also adapted in this study to ensure a more systematic approach to risk analysis. The latter was used to identify the critical risk agents that the company should prioritize and determine the most effective risk management strategies to be implemented. A benchmark analysis relative to selected ASEAN milkfish industries, particularly Indonesia, Vietnam, and Myanmar, was also performed in order to evaluate the performance of the company and gain a comparative analysis with the cultural management practices of the said countries in accordance with the selected parameters from Codex Code of Practice for Fish and Fishery Products (CXC 1-2003) of the International Food Standards, Philippine National Standards for fresh chilled and fresh frozen milkfish (PNS/BAFS 66:2020), and data from SEAFDEC/AQD. Data collection was done through questionnaire administration, interview, KII, and utilization of secondary data.

Risk identification results showed that there are a total of 50 risks occurring in the SCOR operations of the J&F Aquatic Resources Farming Co., 29 of which are risk events while 21 are risk agents. The finding of the risk analysis revealed that there are four (4) most critical agents based on the obtained highest Aggregate Risk Potential (ARP) and modified Pareto Diagram. These are the economic and political factors, dependence on supplier, unfavorable conditions of water quality in fish cages, and human error, which were found a cumulative percentage of 50.79% to the overall aggregate risk potential of the company. Overall, the current mitigation measures that J&F Aquatic Resources Farming Corporation implements were found to be limited in terms of the adaptation of appropriate strategies for them to remain competitive.

To mitigate these priority risk agents, 19 preventive actions were proposed and subjected to the evaluation of industry experts. Based on the evaluation, eight (8) of the proposed risk mitigation strategies were selected for the company and key industry stakeholders to implement.

Furthermore, results of the benchmark analysis demonstrated that the company has still a lot of areas to develop to ensure its compliance with the Philippine National Standards, which could be done through strengthening its implementation of Good Aquaculture Practices (GAqP) and Philippine National Standards, as well as leveraging advanced and sustainable milkfish-related technologies in order to boost its competitiveness, productivity, and profitability, and resiliency. In addition, initiatives and efforts from the key industry stakeholders are also needed to further advance the local milkfish industry and capitalize on its potential for growth and competitiveness on the international market.

Language

English

LC Subject

Agricultural industries--Philippines, Aquatic resources--Management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2023 M17 S25

Document Type

Thesis

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