Analysis of the Production and Marketing of Tomato in Selected Barangays in Majayjay, Laguna

Date

12-2019

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Mar B. Cruz

Committee Member

Normito R. Zapata, Jr., Agnes T. Banzon

Abstract

This research study was conducted to analyze the current performance of the production and marketing of tomato in the top-producing barangays of Majayjay, Laguna. Specifically, it aimed to (1) describe the profile of the key players in tomato production and marketing in Majayjay; (2) describe the production and marketing practices of the players, namely, the farmers and traders; (3) determine the problems and issues faced in production and marketing of tomato; (4) identify prospects and opportunities for tomato production and marketing; and (5) recommend solutions to identified problems and actions to address prospects in tomato production and marketing.

Forty-eight farmers and five traders from Barangays Gagalot, Taytay, Bukal, and Oobi were identified through Referral Sampling and interviewed using a Survey Instrument. The information gathered from the survey includes (1) the profile of the players; (2) management practices of farmers in production, marketing, finance, and personnel; (3) the relationship between the farmers and their traders; and (4) major problems and issues faced by farmers in production and marketing. Integrated Analysis was done using Analysis of Dominant Economic Traits, Analysis of Key Success Factors, Analysis of Strong and Weak Points, and Cost and Returns Analysis.

Results of the study indicate that tomato farming in the area is from January to July of each year, with the majority of farmers planting in March. The farmers sell their harvests either to local traders who have their own buyers or to direct buyers who visit the area and sell further to many markets like Balintawak and Divisoria, in Metro Manila. It was noted further that during the harvest season, tomatoes from other provinces/regions also reach these same markets causing oversupply and reducing market prices, forcing farmers to sell at even lower farmgate prices.

Farmers’ practices regarding fertilizer and pesticide application were also found to be inefficient when compared to established standards, such as the practice of mixing multiple pesticides into a “cocktail” to be able to apply these with just a single spray. Despite these inadvisable practices, however, farmers still produce bountiful harvest of high-quality tomatoes.

Finally, the study identified extremely low profitability as the major problem in tomato farming in the area. Cost and Returns Analysis indicates that the major cost incurred by farmers is for hired labor contributing 60 to 70 percent of total costs. Farmers can sell their produce at prices ranging from PHP 5.00 to PHP 60.00 and analysis shows that farmers must sell at a minimum of PHP 20.00 per kilogram, in order to earn a profit. Unfortunately, farmers usually have to sell at a low price of PHP 5.00-10.00 per kilogram because of the prevailing market forces. The primary reason for low profitability, therefore, is the rock-bottom price farmers are forced to sell their produce for, when there is an oversupply of tomato in the market.

The study recommends the following for both farmers and local traders: (1) improvement production practices, (2) development of a cooperative, (3) increasing and diversification of distribution/market areas, and (4) utilization of the processing plant facility and other infrastructure built by DA-BAR in coordination with the local government of Majayjay. For the local government, it is recommended (1) to build a circumferential road to provide easy access to the high-elevation barangays; and (2) to establish trading posts for farmers, particularly in conjunction with the proposed establishment of a new municipal hall. Finally, for agricultural firms, it is recommended (1) to provide cheaper seedlings, and (2) to develop pesticides that can be mixed together without losing product effectiveness.

This study hopes to contribute some measures to address wastage in tomato production and marketing in this top-producing municipality of Majayjay, Laguna, especially during periods of oversupply, to keep tomato farmers from incurring a net loss in profit.

Language

English

LC Subject

Tomato industry, Marketing--Costs, Production control

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 T53

Notes

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Document Type

Thesis

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