A Case Study of Bohol Farmers' Multipurpose Cooperative (BOFAMCO)

Date

5-2019

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Normito R. Zapata, Jr.

Committee Member

Renen Szilardo G. De Guzman, Rachelle A. Mariano, Agnes T. Banzon, Normito R. Zapata

Abstract

Reducing postharvest losses have been a growing priority for the agricultural programs in the Philippines. This has been addressed by establishing and awarding of various postharvest facilities in agricultural areas across the regions. The construction of these postharvest facilities is spearheaded by the Philippine government and often supported by foreign governments. These facilities are turned over to the management of farmers’ organizations across the country in order to empower the smallhold farmers that are members of these organizations. A cooperative managing a foreign-granted rice processing center is the Bohol Farmers’ Multipurpose Cooperative (BOFAMCO) which currently oversees the functions of the Bohol Rice Processing Center (BRPC).

This study has been conducted to evaluate the overall performance of the Bohol Farmers’ Multipurpose Cooperative and its managed Rice Processing Center. Specifically, the study aimed to present and discuss a noteworthy business issue which has implications towards the cooperative, evaluate the business environment that the cooperative was under at the time of the study, evaluate the cooperative and its subsidiary according to their business functions, formulate alternative solutions to the identified problem, identify the best solution using appropriate criteria, and design an implementation plan for the chosen solution.

Primary data were gathered through the personal interviews with the Chairperson, members, and several officers. Information about the technicalities of the rice seed production and certification were collected through an interview with the Department of Agriculture Region 7 Regional Seed Coordinator. The marketing officer of the BRPC was also interviewed via e-mail and phone calls for additional information about the operations. Secondary data were from the documents sent both by the BOFAMCO and the BRPC, especially the financial statements, history, profile, and selected marketing and operations records. Other data would include published and unpublished articles, journals, news, government records especially from concerned agencies such as, but are not limited to, the Department of Agriculture (DA), Cooperative Development Authority, Philippine Statistics Authority, and the National Food Authority (NFA).

The results from the evaluation of the data collected revealed that the turnover of the BRPC to the BOFAMCO served more benefits to the cooperative, as observed in the coop’s financial statements. However, the Bohol RPC showed problems on its profitability especially on the decreasing returns on investment which is primarily caused by the limited working capital for operations, declining profitability margins, and its non-profit perspective. The core problem continuously results to the BRPC operating at a loss, and the opportunity losses especially from entering a larger, more profitable market.

The study recommends the solution of increasing the volume of operations in order increase the net sales of the enterprise to further cover their operating and administrative expenses. Projected percentage increase in net sales were also presented to illustrate the volume and profitability of each increment. The critical activity of field testing and surveying is emphasized because of the additional volume of production that is proposed which would require additional paddy supply from individual farmers. Coordination with other farmer organizations through the initiative of the managing cooperative is also recommended to a guaranteed supply of paddy.

Language

English

LC Subject

Rice farmers--Philippines, Agricultural Farmers' cooperatives

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 L34

Notes

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Document Type

Thesis

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