Analysis of Cacao Operations and Marketing Aspects of Luisiana Cacao Growers Association and Cacao Farmers' Association of Nagcarlan

Date

5-2018

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nimfa Beatris D. Montes

Committee Member

Nanette A. Aquino, Faustino Q. Arrienda, II, Agnes T. Banzon, Normito Zapata, Jr.

Abstract

The deterioration of cacao industry resulted to insufficient supply of cacao grindings circulating in the country; consequently, local chocolate manufacturers resorted to importation. Furthermore, it was projected that there might a big possibility for massive cacao shortage worldwide in succeeding years.

The study aimed to describe, evaluate and analyze the identified strategic issues and problems of Luisiana Cacao Growers Association (LCGA) and Cacao Farmers’ Association of Nagcarlan (CFAN) and design an appropriate strategic plan in order to resolve the dilemma.

With the help of the pre-tested questionnaires in gathering the primary data interviews were conducted. A total of 30 cacao farmers (15 respondents came from LCGA and 15 from CFAN) engaged in operations and marketing of cacao-based products were interviewed. Analysis of PESTLE, SWOT, financial ratio, and cost and return were used to analyze the gathered data. Key informants (provincial and municipal agriculturists) of the DA, DTI, and Philippine Council for Agriculture, Aquatic, Natural Resources and Research and Development (PCAARRD) were interviewed regarding the cacao operations and marketing, and their experiences n the development and dissemination of information and technology.

The key external factors which greatly affected the associations’ performance were the climatic changes (i.e., changing weathers), pests and diseases, consumers’ preference and awareness, opportunities in local and international market, vast land of coconut and banana, and quality of farm inputs used (i.e., fertilizer etc.). On the other hand, key internal factors were geographic condition of LCGA and CFAN (i.e. soil type), the pricing scheme, accessibility of information, uniform processing method, branding, and as for its weakness the inadequate post-harvest facilities, limited raw materials and the insufficient promotion and publicity.

The identified strategic issues in operations and marketing were a) the low farm productivity resulted from high mortality of seedlings received and cultivated by farmers,

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can be caused by mishandling of seedlings, insufficient and not quality input (i.e., fertilizer) and/or infected by pests or diseases, adversely affects the production resulting to limited raw materials of cacao beans used in processing. Furthermore, production gap was identified between the projected productivity of a hectare land presented by the roadmap and actual farm yield; b) The weak investment of farmers and association in post-harvest equipment and facility for value addition for cacao led to members’ engagement to decline since expenses for sustaining and maintenance of cacao was costly and earnings from cacao pod itself would not be enough to cover it; and c) The lack and limited marketing linkages or distribution channels where farmers could trade their cacao based products caused eagerness to diminish as to nowhere to discharge and unload cacao output.

In conclusion, the strategic plan formulated for LCGA and CFAN’s dilemma were to continue the cultivation of cacao in order to recover the loss from the mortality of first and second batch of seedlings received, in line with this, a guideline consists of proper procedure of raising cacao should be distributed and explained by experts to avert the repetition of the phenomenon. Furthermore, to sustain the enthusiasm of farmers, the association together with DA official should conduct farm visit in order to monitor the progress of their members and be able to inspect farm inputs used whether it were appropriate or not. Thus, it would provide a proper and detailed assessment on the productivity of farm and overall status of the association. Hence, raw materials used in value-addition of cacao products would be sufficient; however a central facility for processing purposes should be built in order to centralize the production and uniformity of associations’ product. Moreover, it would encourage more farmers to engage in marketing cacao-based product thus would be profitable on their part and boost cacao’s popularity and gridnings. In connection, partnering with private institutions such as local chocolatier and/or manufacturer would also boost farmers’ enthusiasm since there would be an appropriate and legitimate destination where they could unload their cacao output.

Language

English

LC Subject

Cacao, Cacao growers, Marketing--Management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2018 M17 F56

Notes

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Document Type

Thesis

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