An Assessment of the Diversification Mode Choices and Strategies of Coffee Farmers in Batangas
Date
5-2019
Degree
Bachelor of Science in Agribusiness Management
College
College of Economics and Management (CEM)
Adviser/Committee Chair
Jeanette Angeline B. Madamba
Committee Member
Arlene C. Gutierrez, Nohreen Ethel P. Manipol, Loida E. Mojica, Agnes T. Banzon, Normito R. Zapata, Jr.
Abstract
The volume of local coffee production in the past 10 years has been declining. Despite this, several smallhold coffee farmers, who dominate coffee farming in the Philippines, was able to subsist in the industry. In order to do so, the farmers implemented several diversification strategies in their respective farms.
This study was conducted to assessthe different diversification mode choices and strategies of coffee farmers in Lipa City, Batangas. More specifically, the objectives of the study are the following: (1) present the profile of the coffee farmers and their farms; (2) describe the farming practices that the coffee farmers are historically and currently using in their farms as well as their performance; (3) determine the different diversification strategies implemented by the coffee farmers by analyzing their current and historical farming practices; (4) assess the challenges, problems, and decision factors in the diversification mode choices and strategies prevailing in their current farm practices; and (5) formulate recommendations that will help diversified coffee farmers improve their current situation.
The study presented the profile of the coffee farmers and their farms. Most of the respondents (85%) were male. Furthermore, majority (86.7%) of them were married and with household size that ranged from one to thirteen members of the family. In addition, twenty percent (20%) of the respondents were elementary undergraduates. However, around seventeen percent (16.7%) graduated from the elementary level but did not continue their studies to pursue coffee farming. Some of the farmers took up technical vocational courses and some were college graduates but were in courses not related to agriculture. On average, the farmers have been into coffee farming for 36 years, ranging from 3 years to 85 years. Most of the respondents (85%) owned the land that they farm. This is because the respondents have inherited their land from their fathers and forefathers. Most of the farmers (42.7%) owned or rented farms that are around 2-3 hectares.
Furthermore, this study has identified several diversification modes already implemented in Lipa City, Batangas. Out of the sixty respondents, fifty-one farmers (85%) were into on- farm diversification exclusively. This means that they were not engaging in any other activities which were unrelated to their farms. They perform crop diversification, that is, the practice of cultivating more than one variety of crops in a given area in the form of rotations or intercropping. The remaining nine farmers practiced mixed diversification. Four farmers (6.7%) were into on-farm and off-farm diversification and five farmers (8.3%) practice on-farm and non-farm diversification.
All of the farmers interviewed practice on-farm diversification. Intercrops with coffee included: black pepper, banana, papaya, lanzones, langka, coconut, rambutan, cacao, mango, calamansi, sinturis, suha, guyabano, ube, ginger, chico, santol, atis, tubo, mahogany, and other vegetables. Most of the respondents (15%) use the crop combination of Coffee-Banana-Coconut-Guyabano. This was followed by the crop combination of Coffee-Pepper-Rambutan-Cacao-Lanzones-Sinturis-Langka-Chico-Santol with six out of sixty farmers (10%) implementing this combination in their farms. Next are the crop combinations of Coffee-Banana-Coconut-Pepper-Lanzones, Coffee-Banana-Coconut- Pepper-Rambutan-Lanzones-Ginger, and Coffee- Banana-Coconut-Pepper-Ube-Ginger with five out of sixty farmers (8.33%) practicing each crop combination.
Upon performing a cost and return analysis, it was identified that the crop combination with the highest net income per hectare was Coffee-Banana-Coconut-Rambutan-Cacao- Lanzones-Guyabano with P70,715.00 per year. This was followed by the crop combination Coffee-Pepper-Rambutan- Suha-Atis-Other Vegetables with P60,020.00 net income per hectare. Then, the crop combination Coffee-Banana-Coconut-Pepper-Lanzones with a net income per hectare of P54,069.53. Next was the crop combination Coffee-Banana-Pepper- Other Vegetables with a net income per hectare of P49,270.00. Lastly, the crop combination Coffee-Coconut-Cacao-Calamansi comes with a net income per hectare of P43,370.00.
The different factors that drive the farmers to engage and sustain diversification modes and strategies were: personal and philosophical factors, economic/business factors, environmental factors, and market factors. Specifically, the factors identified were as follows: interest in other crops due to benefits, interest in farming and agriculture itself, availability of land, technical preparedness, inherited crops, profitable than coffee, additional income, minimize losses and risk of failure, locational factors, availability of market and distribution outlets, and stable market. In terms of personal factors, fifty-seven out of sixty coffee farmers (95%) mentioned that they went into on-farm diversification because they were interested in the benefits that other crops provide, twelve out of sixty farmers (20%) said that they planted other crops because they were interested in farming and agriculture, and fifty-one out of sixty farmers (85%) reasoned out that the availability of land made them decide to diversify on-farm. In considering the economic/ business factors, thirty-nine out of sixty coffee farmers (65%) went into on-farm diversification because they said that other crops were more profitable than mono-cropping coffee, fifty- two out of sixty farmers (86.67%) claimed that they went into on-farm diversification because they wanted additional income, and fifty out of sixty farmers (83.33%) also claimed that the reason by which they planted other crops was to have a stable source of income to minimize losses and risk of failure. Also, for the environmental factors, nine out of sixty farmers (15%) went into on-farm diversification because of the desirable location in Lipa City, Batangas. In terms of the market factors, fifty-two out of sixty farmers (86.67%) said that the availability of market and other distribution outlets encouraged them to plant crops other than coffee and forty-three out of sixty farmers (86.67%) said that they went into on-farm diversification because of the stable market.
Some problems identified with the diversification strategies implemented by the farmer in their farms were the lack new technology, insufficient output, lack of machineries and equipment, lack of financial management, high cost of labor, lack of technical skills, occurrence of pests and diseases and climate.
The decision of the farmers to diversify is affected by some of their socio-demographic characteristics such as age and household. Farmers are more likely to diversify when they are older. Additionally, farmers with children are more inclined to diversify because there is a need to support the family. Likewise, some farm characteristics drive the farmers to engage and sustain diversification modes and strategies. Farmers with smaller farms are more likely to diversify than larger farms.
Among the decision factors that drive the coffee farmers to pursue on-farm diversification are personal and philosophical factors. Specifically, their interest in diversifying because of other benefits, is the most important. Aside from providing income for the family, intercropping crops with coffee allows the farmers to create their own food supply in the household. Economic/business factors are also important driving forces in engaging and sustaining on-farm diversification. Economic/business factors such as additional income and reducing the risk of failure affect the decision of the farmers to implement on-farm diversification. Lastly, market factors are deemed to be equally important for the farmers implementing on-farm diversification. The farmers implemented on-farm diversification in their farm because there is an available and stable demand for the crops. On the other hand, farmers implementing mixed diversification (off-farm and non-farm) are driven by their interest in supporting the family, and their interest in the off-farm and non-farm work. The farmers want to provide additional support for the family aside from the income that they get from the farm.
On the contrary, there are no identified decision factors in the diversification strategies specific to each farmer. Their choice of crops to be planted in the farm are equally affected by the seasonality of the crops, income stream, cash flow, and other market factors.
Language
English
LC Subject
Coffee industry, Coffee growers
Location
UPLB College of Economics and Management (CEM)
Call Number
LG 993 2019 M17 G58
Recommended Citation
Girang, Bethzaida Genesis F., "An Assessment of the Diversification Mode Choices and Strategies of Coffee Farmers in Batangas" (2019). Undergraduate Theses. 11892.
https://www.ukdr.uplb.edu.ph/etd-undergrad/11892
Document Type
Thesis
Notes
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