An Analysis of the Gamefowl Industry in Selected Areas in Batangas City

Date

5-2017

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jewel Joanna S. Cabardo

Committee Member

Dia Noelle F. Velasco, Hanna D. Miranda, Jimmy B. Williams, Agnes T. Banzon, Dinah Pura T. Depositario

Abstract

The Philippines is considered as the center of the gamefowl industry in the world. International derbies and expos are being held in the country and these are attended not only by the local gamefowl breeders and enthusiasts but even those from foreign countries. The gamefowl industry is estimated to be around P50 billion and is still growing. Cockfighting has been in our culture since time immemorial and provides thousands of Filipinos a source of income yet the gamefowl industry is not given the attention that it deserves.

This study was conducted to analyze the gamefowl industry in selected areas in Batangas namely, Lipa City, Rosario, Padre Garcia, Malvar, and Cuenca, Batangas. Specifically, the study aimed to: (1) describe the socio-demographic profile of the key players in the industry; (2) present the structure and status of the gamefowl industry in Batangas; (3) evaluate the performance of the industry; (4) analyze the issues and prospects of the gamefowl industry; and (5) formulate recommendations for the industry players based on the study results to sustain and improve the status of the industry.

Ten gamefowl breeders and eight input suppliers were interviewed for the study. Cockpit workers and gamefowl enthusiasts were also interviewed. Key Informant Interviews (KIIs) were utilized in the study. Different sets of questions were used for each player in the industry (breeder, supplier, cockpit worker, etc.).

SWOT Analysis was used in identifying the strengths, weaknesses, opportunities, and threats of the industry as well as in formulating corresponding recommendations. Michael Porter’s Five Forces Analysis was also employed in evaluating the competitiveness of the industry as well as in developing strategies for the industry.

All the breeders interviewed were male aged from 31 to 72 years old. Most of their farms were located within their residential areas and none was registered in any government agency. Nine out of ten breeders were members of the Batangas Breeders Club (BBC). Their farm size ranged from 300 square meters to 9 hectares. The cost of raising a single gamefowl until it became a stag was approximately Php 1,500 to Php 2,500. Gamefowls were sold for a minimum of Php 5,000 up to Php 15,000. Out of the ten breeders, four either worked in a supplier company or ha a business as a supplier of feeds. There were those who work with feed and/or veterinary companies, thereafter, decided to engage in gamefowl raising. On the other hand, there were instances when those that have a business as a supplier initially had a farm first, then decided to backward integrate to decrease their cost of inputs as well as increase their overall income.

Other players interviewed include the gaffers, informal doctors, referees, cashiers, and many others who earn from cockfighting. In Malvar Cockpit, there were around 50 personnel who were present when there was a cockfight, not including gaffers, informal doctors, and bet collectors. Most people who worked in cockpit earned a minimum income of Php 300 a day. On the other hand, the “gaters” income depends on the percentage of the cockpits income from the entrance fee.

In the SWOT Analysis, the SO Strategies that the researcher came up with were backward integration for breeders, increase in capacity or inventory for suppliers, production of better quality gamefowls, and having a segment in TV shows that tackles on the business aspect of the industry, which can be done by breeder associations and federations. The WO Strategies, on the other hand, were backward integration for breeders, forward integration for suppliers, diversification, and breeder education (teach them how to do the business aspect to control gambling). The ST Strategies were proper vaccination and sanitation as well as buyer education through TV shows and publication. Lastly, the WT Strategies were improving security measures to avoid theft, record keeping, thorough study in the academe, as well as the quality of gamefowl through breeding.

With the use of Porter’s Five Forces Framework Analysis, it is determined that there was intense competition within the industry due to the large number of existing breeders. In addition, switching cost was generally high in the industry as buying gamefowls from breeders who produce good quality fowls will give the buyers more chances of winning in cockfights. In addition, popularity and quality differences affect the number of buyers, the ability to demand higher prices, among others. Buyers had strong bargaining power, moderate switching cost, and made use of backward integration. Suppliers of inputs have moderate bargaining power, low switching cost, made use of forward integration, and their products are similar from one another. There are low barriers to entry in the industry. As of now, there was no direct substitute for the product.

The problems identified in the gamefowl industry were the prevalence of Avian disease, weather variability and disturbances, lack of support coming from the government, threats from animal welfare groups, and the importation of smuggled gamefowls and inputs. On the other hand, the prospects that were seen include the opportunities to export gamefowl to ASEAN countries; attract foreign gamefowl enthusiasts and tourists; additional income from processing of culled or losing chickens; manure production from gamefowl; farm diversification through planting fruit trees or shrubs in between teepees; increased knowledge of breeders through TV shows and print media; opportunity to sell gamefowl using the Internet, and the chance to improve financial management.

Recommendations for gamefowl breeder, suppliers, and support institutions were provided to help answer various concerns in the industry. For gamefowl breeders, improvement in the quality of gamefowls to increase their profits. With better quality gamefowls, breeders will not only have higher number of buyers but also, they can assign whatever price they deem appropriate for their fowls. An improvement in quality will also help with the plans to export gamefowls in the next few years. Record keeping should also be done by the breeder to keep track of the business situation as well as to avoid overspending on bets during cockfights. Diversification can also be done by (1) planting shrubs and trees such as calamansi in between teepees to provide shade for the gamefowls as well as profit; (2) chicken manure production to increase income; and (3) processing of culled or losing chickens by selling the feathers and feet of the chicken as raw materials for decorations and other by-products. For suppliers, it was suggested that inventory or capacity increase must be considered as well as forward integration since there is an increasing demand for gamefowls. Support institutions (i.e. associations) should consider providing fund for research to universities in order to have an in depth study about the technical aspects of the industry. They may also conduct breeder education through seminars which may benefit the breeders and the industry as a whole.

Investment/Developmental entry points were identified for existing players, new entrants and support institution. For existing players, specifically the breeder, one good investment is to acquire incubators since it may lead to economies of scale to large scale breeders. Smaller breeders may fully make use of the capacity of incubators by getting eggs from other breeders and asking them to pay for every egg hatched. For new entrants, the recommended entry point is to become an input supplier since inputs such as feeds and veterinary medicine are a necessity for a gamefowl breeder, thus, having a sure market.

Language

English

LC Subject

Chicken industry, Chicken breeds

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2017 M17 A27

Notes

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Document Type

Thesis

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