Agro-Industrial Cooperative of Mataas na Kahoy, Batangas: A Case Study Focusing on Feed Milling Operations

Date

12-2018

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, Rachelle A. Mariano, Agnes T. Banzon, Normito R. Zapata, Jr.

Abstract

Considered as an agricultural municipality, Mataasnakahoy, Batangas serves as a place where agricultural - related ventures continues to flourish. Common crops produced in the area includes coffee, and coconut while livestock products includes poultry. Most livestock and poultry owners are included in small-scale operations and only a handful are part of large-scale farm operations. Being a member of a cooperative proves to be useful for the farmers since it gives them opportunities to avail products at a lower cost without compromising quality. This can greatly help them in day-to-day farm operations.

This study attempted to present and assess the overall performance of Agro-Industrial Cooperative of Mataasnakahoy (AICOM). Evaluation of the key internal and external factors prevailing at the time of the study was the key activity in determining issues and problems being faced by AICOM. Other aspects included is studying the impact of the cooperative to the small farmers or livestock raisers in the municipality of Mataasnakahoy. Careful evaluation of the discovered strategic issues was done to provide the needed alternative solutions and came up with actions and recommendations that will aid the cooperative.

Data gathering was primarily done through personal interviews with one of the Board of Directors, the General Manager, and the Employees of AICOM. Secondary data including production values, financial statements, profiles, and policies were obtained through existing documents given by the cooperative. Further data like statistics and trends were observed from institutions like the Philippine Statistics Authority, and the Credit Development Authority.

The major problem discovered was the high number of receivables and liabilities. This, together with increase in price of raw materials, lack of promotion, outdated technology, and municipal ordinances turning Mataasnakahoy into a tourism-based area led to qualms not just in production but to the whole cooperative as well. The discovered issues proved to be a barrier for the plans of the cooperative such as further distribution and plant and office expansion. The Strategic issue discovered was the decrease in market shares of the cooperative due to the increase in the number of dormant members and the decrease in the influx of new members.

This study recommends improvement towards a lot of the business activities by the cooperative. The solution presented to solve the strategic issue is through the strengthening of relationship to cooperative and its members as well as the integration of agriculture and tourism in the municipality. Alternative to lessen the number of receivables not being collected includes increasing the current interest from 3% to 5-7% incurred when the feeds are not paid on time. Next would be improvement in information dissemination, promotion to attract more members and consumers, partnership with affiliated organizations and the local government to further increase the knowledge regarding livestock and poultry, business ownership, and other sources of income. These will not only help the officers and members of the cooperative but the whole municipality as well. Addition of distribution channels will also help the cooperative in promoting their products and services throughout the municipality.

Contingency plans were also presented in case the chosen strategies failed to address the given issues. Alternatives like building a livestock and poultry production for rent to members to maximize the use of land owned by the cooperative, increased funding on research and development to further improved the feeds produced and opening the feed products to non-members of the cooperative to increase the current market of the products. These alternatives prove to be effective but the main problem regarding them is the cost of implementation.

Language

English

LC Subject

Feed mills--Management, Cooperative societies--Case studies

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2018 M17 V47

Notes

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Document Type

Thesis

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