Analysis of Marketing and Financial Performance of Rice Farmers in San Miguel, Bulacan: The Case of Samahan ng Magsasaka ng Buliran

Date

7-2022

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Remund Jordan D. Labios

Committee Member

Normito Zapata, Jr., 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

This study is an analysis of marketing challenges, market access, and profitability of rice farmers from Samahan ng Magsasaka ng Buliran. Rice production is the primary source of income for the members of the studied farmers' association. Although commercial farmers have the necessary equipment and technology to maximize their production and profit, this is not the case for small and marginal farmers in the rural are who face key challenges from product/production, price, distribution to promotion which prevent them from improving their profits and reaching market that the offer better prices.

Specifically, this study probed on the socio-economic characteristics of the members, marketing challenges, available market, their access to market information, way of transport, selling prices, quantity produced and sold, use of advertisement, and profitability with a view on proposing strategies and trainings. A semi-structured survey questionnaire has to be answered by 15 respondents through interview session to determine the key challenges they faced, their market access condition, and farm expenses. To achieve the research objectives, a descriptive research design was adapted. This type of approach was found appropriate since it uses both quantitative and qualitative data to provide accurate information which is necessary for the small sampling population used in the study.

The role of the association was found vital in addressing the challenges the members faced in marketing their produce as well as in improving the market access and increasing the profits of the members. Hence, there was the need to improve the role of the organization based on the four dimensions of management for farmers organizations: Organizational Dimension, Socio-political Dimension, Productive Dimension, and Entrepreneurial Dimension as described in the study. Based on the analysis, the current role and enhanced role of the association were illustrated to emphasize the areas for improvement.

Correspondingly, the data analysis showed that the association should establish their own storage and drying facilities to increase the selling prices of their paddy rice. It was found through the study that all members have no adequate storage and drying facilities that they could use which led them to selling their produce fresh and right after harvest. The insights and recommendation revolved around trainings and strategies that could improve their market access and profitability. One aspect would be provision of trainings about vegetable production to increase market share and productivity of land through crop rotation, thus helping them acquire a wider market and meet the demand of their buyers.

Joining Agri Mentorship Programs like Kapatid Agri Mentor Me Program is also another way to increase market access through the improvement of skills of the members not just in the production aspect but also in marketing, basic accounting, and finance which are essential for attracting buyers that offer better prices as well as training them to be financial literate that can make and execute better financial decisions. Another way to improve market access and rice prices is to establish a Community-Shared Agriculture (CSA) Program which can build a connection between the producer and buyer through a shared risk in production with the use of subscription/membership plan.

The profitability determination also showed that the members have an average gross profit margin of 19% and an even lower operating margin of 8% which indicates that they are having trouble in managing their expenses which lead to low profits. Increase participation in government efforts is also recommended such as directly tapping the designated agencies involved with agricultural programs such as Rice Competitiveness Enhancement Fund (RCEF) to make the members part of its beneficiaries to enhance the infrastructures in the study area such as their irrigation system, transport system, Research and Development, and storage and drying facilities.

Language

English

LC Subject

Farmers, Social groups--Research, Marketing--Management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2022 M17 C69

Document Type

Thesis

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