Analysis of the Production and Marketing of Burong Isda in Selected Municipalities in the Fourth District of Pampanga

Date

5-2018

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nanette A. Aquino

Committee Member

Gemma U. Reyes, Rachelle A. Mariano, Agnes T. Banzon, Normito Zapata, Jr.

Abstract

Burong isda or fermented fish in rice and its variants are the famous traditional fermented food products that are widely accepted in the diet of many Filipinos, particularly in the province of Pampanga. The general objective of this study was to present and analyze the current status, problems, and formulate recommendations for the improvement of the production and marketing of burong isda in the Fourth District of Pampanga. Specifically, this study aimed to present the individual profiles of the key players involved in the production and marketing of burong isda. It also described the production and marketing of the producers of buro and analyzed the profitability of its production, as well as the dynamics and performance of burong isda. Moreover, it also determined the problems encountered in the production and marketing and recommended solutions to address the problems identified.

There were three key players interviewed in this study, namely consignacion operators, buro processors, and buro retailers. A total of thirty-four (34) were interviewed: (3) consignacion operators, twenty-three (23) buro processors, and eight (8) buro retailers. Primary data pertaining to information related to buro were gathered from these key players using snowball or referral method. On the other hand, secondary data and other information related to burong isda were gathered from the key informants of burong isda through interviews, and from the government records of the related industry such as DOST, DA- BFAR, and DTI. The descriptive type of research design was used in order to integrate different analyses performed in this study such as the dominant economic traits, product flow analysis, porter’s framework, cost and return analysis, key success factors, and strong and weak points of the production and marketing of burong isda.

Results showed that most or 85% of the key players of burong isda are females. Moreover, these individuals engaged in the production and marketing of burong isda did not finish their education and rely mostly on selling the commodity as source of their daily income. In the fourth district of Pampanga, Apalit and Candaba are the municipalities where most key players operate. It was also identified that the key players presented in this study are sole proprietors of their businesses. Thirty-three out of thirty-four respondents said that they are sole proprietors while one (1) respondent said they are operating as a corporation.

There are two variants of buro in this study. These are burong isda and burong hipon or balao-balao. In the production and processing of buro, processors are the actual operators involved. They are categorized into small, medium, and large scales processors. Fourteen (14) small-scale, eight (8) medium-scale, and one (1) large-scale pocessors were interviewed. Production and processing practices include cleaning, scaling, and eviscerating of fish or shrimp, washing, series of salting, draining, cooking of rice, fermentation process, and packaging. Other production related aspects such as seasons of processing, processing periods, volume of production were also discussed in this research. As for the marketing aspect, most of the key players consider only operating within Pampanga while one key player which is Navarro Foods International Inc, the large-scale processor, is able to penetrate a leading supermarket, and restaurants. Most buro key players, specifically buro processors and retailers, only consider the public market as their main market outlet of their products. It is interesting to note that these key players are also engaged in selling other commodities such as fish products, meat, and vegetables. Aside from the production and marketing aspects, financial and personnel aspects were also considered in this study.

In the cost and return analysis, the net income obtained based on the assumptions for the small-scale operation was P1,700.00 per week. As for the medium-scale operation, given the assumptions, the net income obtained was P28,080.00 per month. Lastly, the net income obtained from the assumptions for the large-scale operation wasP1,511,599.00 per year.

The problems identified in the production of buro are expensive prices of fish and rice inputs, environmental issues such as flooding, low productivity due to age, lack of technology, and lack of good manufacturing practices and food safety standards. On the other hand, the identified marketing problems were fluctuation of demand due to occasions, and festivities, lack of permanent market outlet, poor image of buro due to appearance, low profit potential because of low pricing, high bargaining power of buyers, and high bargaining power of suppliers. Prospects, as well as, development and investment entry points were also identified by the researcher.

From the information and analyses, recommended solutions for the problems of burong isda production and marketing were generated. Recommendations were presented depending on the scale of operations of the key players. For the small and medium-scale buro processors and retailers, they can stock burong isda and/or fish raw materials for future use during flood prone months. Market development is also one option they can engage in such as institutional markets. Moreover, the researcher also recommended them to tap existing government support and reduce hesitation in obtaining support. On the other hand, medium-scale processors can apply to DOST and DTI’s Small Enterprise Technology Upgrading Program. The large-scale processor should continue seeking consultations regarding its production and marketing activities from the regional government units. Lastly, it is of a great importance to establish an association solely for buro key players to increase productivity and added value. For the government units and other institutions, monthly roam around of public markets should be facilitated by representatives of the regional government to enhance promotion of the benefits they provide to the public market MSMEs. Also, information dissemination of the microfinancing programs is necessary in order for the MSMEs to be knowledgeable of the suitable financing program for them. In addition, there is also a need for seminars on good manufacturing practices and other marketing support.

Language

English

LC Subject

Fermented fish, Fermented foods--Philippines, Production Control, Marketing

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2018 M17 D45

Notes

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Document Type

Thesis

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