Factors Affecting Business Continuity among Coffee Farms in Silang, Cavite

Date

5-2017

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Arlene C. Gutierrez

Committee Member

Loida E. Mojica, Dia Noelle F. Velasco, Agnes T. Banzon, Dinah Pura T. Depositario

Abstract

Cavite has always been known as the coffee capital of the Philippines and was labaled as one of the top performing province when the Philippines became the net exporter of coffee in the world. The town of Silang, Cavite contributed 18.10% to the total coffee harvested in the province. However, the trend of the coffee production as well as the coffee farmer’s population has been decreasing in Silang, Cavite. This study assessed the factors affecting the business continuity among coffee farms in Silang, Cavite. Specifically, this study was done to present the socio-demographic profile of small-scale coffee farmers in Silang, Cavite; to discuss the business profile of their coffee farms; to analyze the factors that affect business continuity among coffee farmers; to identify the problems and succession issues between the stakeholders in the coffee farming sector, particularly the current coffee farmers and potential successors; and to recommend solutions that may potentially solve the identified problems.

Forty-eight coffee growers, five potential successors, and twelve retired coffee farmers in the area were interviewed. Descriptive analysis was used to analyze the external and internal environmental factors that contributed to the business continuity of the farms. Furthermore, trend analysis, benchamarking and cost and return analysis were utilized in order to further assess the performance of the coffee farms.

As for the results, the average age of coffee farmers was 62 years old and the majority was male, married, and did not reach tertiary education. The majority of the respondents were 2nd generation farmers who acquired the farm from their parents. On the other hand, it was observed that the farmer’s children did not participate in the coffee farm business.

It was found that majority of the current and next-generation of coffee farmers weere becoming less intrerested in coffee farming. The current farmers, who were supposedly the primary motivators of the next generation, were the first one who was disheartened with their profession. They were either planning to leave the industry or have shifted already to other commodities. As a result, there has been a decreasing trend in the area devoted for coffee, total production, and farmers served in the coffee industry. Net income and total expenses of the coffee farms were also evaluated to determine their profitability. The income of the farmer-respondents, exclusively from coffee, averaged Php 9,680 per year.

The different factors found to affect business continuity among coffee farms in Silang, Cavite were low profitability of the farmland, low productivity, aging coffee trees, insufficient capital that led to mismanagement, poor maintenance of the coffee farms, and other uncontrollable factors such as unprecedented weather, unstable market price of coffee, high cost of inputs and unavailability of post-harvest technologies and knowledge for new techniques and practices – which restrained the farmers to explore other markets.

The coffee farming sector in Silang, Cavite could be considered as a dying industry. Nevertheless, the research assesed that there is still a chance to revive it and improve the status quo of the existing coffee farmers. To ensure the continuity and survival of the industry, an intervention must be undertaken forthwith by the different sectors to be coordinated by the government which can provide the necessary technologies and helding seminars to educate the farmers with the utilization of technology and uplift their morals with their career. Likewise, the current farmers too have a crucial role that they must fulfill. With the help of the Municipal Agricultural Officer, they can establish a strategic alliance or cooperatives. Moreover, continuous research, development and extension work must be conducted by the academe and agribusiness sector to strengthen the farm industry and entice the youth to become future ‘agripreneurs’.

Language

English

LC Subject

Coffee industry, Coffee growers

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2017 M17 T37

Notes

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Document Type

Thesis

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