Integrated Agribusiness Operations: The Case of Melendres Farm

Date

5-2019

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Glenn N. Baticados

Committee Member

Juan Paulino S. Trespalacio, Junior, Jewel Joanna S. Cabardo, Jeanette Angeline B. Madamba, Normito R. Zapata, Jr.

Abstract

Melendres Farm is located in Maguey Road, Sitio Fatima Village, Antipolo City about a kilometer away from the city proper in the vicinity of Antipolo Cathedral. It is a 3.4- hectare land established by Michael Melendres back in 2001. It was started as an oyster mushroom culture project but eventually turned into an organic vegetable farm that produces good quality organic products. Melendres Farm is a certified organic farm approved by the Organic Certification Center of the Philippines (OCCP) and is one of the organic farms that produce and distribute tons of organic vegetables to the market.

The farm aims to form the largest, most efficient and most trusted farm network in terms of producing organic products. The farm inspires and helps to promote organic plants to the farmers and those who want to venture into farming. Thus, this study determined the status of the farm as well as its business performance. The researcher identified the problem in production in which the farm has lower productivity of organic vegetables that has resulted in unmet needs in the market, and customer’s dissatisfaction leading to a decrease in sales and profits. This study could help the farm in decision making as well as considering other options for the betterment of the business.

The general objective of this study was to determine and assess the present management, operations and income of Melendres Farm. The specific objectives were to: 1.) present the current business environment of Melendres Farm; 2.) discuss the farm in terms of its four business functions; 3.) analyze the problem confronting Melendres Farm; 4.) identify the main problem of the farm, and 5.) recommend strategies to improve the farm’s business performance.

The primary data were gathered through actual visits on the farm site and interviews with the owner with the guide of questionnaires. The secondary data included the related topics from undergraduate special problem reports and theses at the College of Economics and Management (CEM) Library. Sources of information were tapped and used from the University of the Philippines Los Baños (UPLB) Main Library, Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development (PCAARRD). Other information came from the Internet and books.

Melendres Farm’s strengths, weaknesses, opportunities, and threats were identified. The strengths include: 1.) Melendres Farm is a certified organic farm by OCCP, 2.) Melendres Farm has its own marketing company (identified as Organic Options), and 3.) Melendres Farm used greenhouses for protection from extreme weather conditions and pest control. The farm’s weaknesses include: 1.) Their organizational structure is confusing; and 2.) They have only as four (4) limited labor employees have a specialization on organic planting.

The opportunities include: 1.) Technology is fast improving, thus bringing efficiency and effectiveness to the organic farms; 2.) The trend is towards engaging people to buy organic products locally and globally as well as cultivating awareness and changing preferences of people into practicing healthier lifestyles.

The threats include 1.) Easy entry into organic farm business; and 2.) Increasing of competitors.

The problems of the farm were evaluated through each of the business functions and then the use of problem tree analysis was employed to address the main problem and its cause and effects.

Based on the given data and the projected project cash flow done by the researcher, Melendres Farm should continue its production expansion since this will gain more profit for the farm. Moreover, the internal rate of return (IRR) of the farm is high at 43. 0366% and the return of cash from investment is shorter at 2 years.

The recommended strategies of the researcher in addressing the problem are production expansion, product development, acquisition of other companies and change their organizational structure since it is confusing and hire competent people.

Language

English

LC Subject

Vegetable gardening--Philippines, Vegetable trade--Management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 A43

Notes

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Document Type

Thesis

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