Status, Problems, and Prospects of Tilapia Industry in the Municipality of Sasmuan, Pampanga

Date

5-2018

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Faustino Q. Arrienda II

Committee Member

Nohreen Ethel P. Manipol, Glenn N. Baticados, Agnes T. Banzon, Normito R. Zapata, Jr.

Abstract

Sasmuan is one of the six (6) coastal municipalities of Pampanga, the country’s number one producer of tilapia. It is comprised of 12 barangays with livelihood and economic growth heavily anchored on fisheries and aquaculture. The municipality boasts a massive area devoted to fishpond culture with tilapia as the main aquatic species grown and raised.

The study was conducted to describe and analyze the status, problems, and prospects of the tilapia industry in the municipality of Sasmuan, Pampanga. Specifically, it aimed to: (1) describe the profile of the key industry players (tilapia growers and traders) as well as tilapia farm and trading enterprises in Sasmuan, Pampanga; (2) present the structure and performance of the tilapia industry in the municipality; (3) determine the problems of the tilapia industry in the area; (4) identify strengths and weaknesses as well as investment opportunities and development entry points for entrepreneurs, government, and non- government organizations; (5) enumerate key success factors in the industry; and (6) formulate recommendations and strategic decisions for the participants of tilapia industry in Sasmuan, Pampanga to attain industry’s full potential, viability, and sustainability.

A total of 33 respondents composed of 30 tilapia growers and 3 tilapia traders were personally interviewed for the study. Additional primary data were obtained from various key informants such as heads of government institutions, agents of trading enterprises, vendors of tilapia, as well as a local engineer. Secondary information were also gathered from unpublished undergraduate thesis, scholarly journals, books, records, and websites of government and private institutions.

Most of the fishpond operators were male, married, and with an average age of 50 years old. Majority of these respondents reached primary level of education, has not attended any trainings and seminars related to tilapia farming, relies on personal experience in running the business, and does not have alternative sources of income besides fish farming. Tilapia traders interviewed were mostly males, aged averagely at 50, married, and acquired secondary level of education. Attendance to trainings and seminars were also low and their only source of income is the trading of tilapia.

Most of the fish farms surveyed, on the other hand, were solely owned. Majority had been in operations for one to ten years and are small in terms of size (1 to 10 hectares). The surveyed trading enterprises had been operating for five to six years with most of them managed under sole-proprietorship.

Tilapia was marketed in the municipality in live and fresh forms. Two types of traders also exist – consignations (“consignacion”) and aerators (“viajeros”). Consignation offices were located at the Sta. Lucia Trading Center whereas aerators go to the fish ports situated in barangays Sta. Monica, Sta. Lucia, and San Nicolas. Tilapia harvests are brought to these traders by boat. Small-scale farms mostly cater to consignations while medium to large-scale farms often prioritize dealing with aerators. Consignations do not determine quality of tilapia procured unlike aerators who submit specific orders of the volume and size of tilapia they demand. Consignations buy tilapia at P65-P75/kg for Class A (four to five pieces per kilo), P50-P60/kg for Class B (six to seven pieces per kilo), P35-P40/kg for Class C (seven to eight pieces), and P250/container for Class D of extremely small sizes. Aerators, on the other hand, purchase tilapia at P70-P85/kg for Class A and P60-P70/kg for Class B. Tilapia procured by consignations were sold to bidders/retailers from neighboring municipalities and provinces in Central Luzon while aerators originate from as far as Metro Manila. These tilapia, upon reaching wet markets, were sold for P90 to P120 per kilogram.

Inputs required in production commonly include tilapia fingerlings and feeds which can be sourced at an average price of P0.35 centavos per piece and P750/sack respectively. Fishpond operations begin with pond preparation to stocking of fingerlings in the pond, feeding and growing out, harvesting, and marketing.

Various problems in the industry were identified including shortage of fingerlings supply, proliferation of low quality fingerlings, high cost of inputs, equipment and infrastructure maintenance, insufficiency of capital, fluctuating prices of tilapia, unpredictable climate, and river pollution and siltation. However, prospects are still available for the industry due to the growing demand for fresh and processed tilapia locally and internationally. Products made from tilapia by-products are also being made such as leather goods, clothing, and ornaments.

Based on the results of the study, the industry of tilapia in Sasmuan, Pampanga is still attractive for investments. It shows potential room for growth and development with the expanding local and global market, availability of existing knowledge in tilapia culture, as well as the strong support being given by government and non-government institutions.

For the growth and expansion of the industry, recommendations were provided for both tilapia growers and traders and the local government and other institutions. For the tilapia growers and traders, a production or processing cooperative must be established to increase their bargaining power against buyers and suppliers. Putting up a processing cooperative would help them capture the demand for value-added tilapia products in the international market. Other recommendations include the performance of vertical integration in their business, application of product development strategies, and establishment of an organized harvesting schedule to avoid the decline of the price of tilapia due to supply surplus. Recommendations for the government and other institutions, on the other hand, include the organization of more seminars and workshops for growers of tilapia, provision of subsidies or connecting tilapia growers to existing financial programs, introduction of new technologies and new breeding strains, and the orchestration of a solution to the siltation problem of the Pasac-Guagua-Batasan river system.

Language

English

LC Subject

Tilapia, Fish trade--Philippines

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2018 M17 B47

Notes

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Document Type

Thesis

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