Feed Supply Sourcing Practices and Strategies of Commercial Swine Farms in Sta. Maria, Bulacan

Date

5-2018

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jeanette Angeline B. Madamba

Committee Member

Loida E. Mojica, Agnes T. Banzon, Normito R. Zapata, Jr.

Abstract

Feeds usually comprise majority of swine production expenses and it has always been a goal of profit-oriented organizations to cut costs in order to assure the organization’s survival and profitability. This is the reason why business organizations such as swine farms adhere to strategies which they believe would help them achieve their goals.

The study specifically aimed to: (1) present the profiles of the farm and farm owners of commercial swine farms in the area; (2) determine the distribution of commercial swine farms in the area in terms of production system adopted, scale of operation and priorities in sourcing feeds; (3) discuss the rankings in terms of importance given by the farmers to each of the factors affecting the feed supply sourcing of the farms in the area; (4) evaluate the current supply sourcing activities and strategies being done by the farms and; (5) recommend strategies and/or approaches to the problems and opportunities found in feed supply sourcing of small swine farms in the area.

A total of thirty-four (34) commercial swine raiser respondents from their respective farms were interviewed from different barangays of Sta. Maria, Bulacan. Thirteen (13) are small commercial swine farms, twenty-two (22) are medium commercial swine farms and only one (1) qualified as a large commercial swine farm.

This study was able to identify and present the distribution of commercial swine farms according to production system and scale of operation. It was found that most (94.1% or 32 out of 34) of the commercial swine farms involves farrow-to-finish type of swine production system although this number is distributed to those who solely apply such operation and to those who have combination with such operation. About 26.5% involved farrow-to-feeder operation while 11.8% involve farrow-to-breeder operation. Only 8.8% of the commercial swine farms are involved in growing-finishing production system.

The study was also able to present different strategies being done by the commercial swine farms in the area. The strategies were given as follows (ranked according to the proportion of farmers adhering to such strategy): (1) Self-production of feeds (64.7% of the farms with 41.2% solely using this strategy), (2) buying unbranded feeds (23.5%), (3) buying branded feeds only for piglets’ pre-starter and booster feeds while self-producing the rest (23.5%) and lastly, (4) having a well-established and longtime relationship with commercial feed mills (11.8%).

The relationship dynamics of commercial swine farms to suppliers of feed and feed ingredients such as loyalty to supplier and willingness to pay higher for a certain supplier were presented also in this paper.

Generally, the relationship dynamics of the commercial swine farms who buy their feed supply are favorable to the supplier. On the other hand, the relationship dynamics of the commercial swine farms who produce their own feeds towards their feed ingredient supplier is generally unfavorable.

Farmers strongly agree that they prioritize capability of the supplier to build good relations with the commercial swine farm, offer delivery services and let them buy on credit. Respondents agree that they prioritize capacity to supply the amount of feeds needed, capability to provide the highest quality products, provide technical guidance, offer promos and discounts, near and accessible location while they slightly agree that they prioritize lowest product prices and capability to supply other farm needs.

Among the feed attributes which are prioritized by the farms are: (1) quality or effect on performance of feeds or feed ingredients, (2) good palatability (3) good quality of packaging and (4) lowest feed prices. Contrary to findings in some literature, commercial swine farms in Sta. Maria, Bulacan disagree on the factor regarding the pelletizing of feeds. This result could be attributed to the fact that majority of commercial swine farms in the area adhere to self- production of feeds strategy.

The most common problem encountered by the swine farms are (1) high prices of feed/ feed ingredients and (2) lack of government support.

Through the use of Chi-square test of independence and Cramer’s V, among the tested variables, it was discovered that organizational variables have significant association with the strategy of the farm whether to produce or buy feeds.

Recommendations were given with regards to the type of supply sourcing strategy that should be applied by the commercial swine farms.

Language

English

LC Subject

Swine industry, Feeds--Analysis, Supply chain management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2018 M17 O75

Notes

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Document Type

Thesis

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