Business Continuity, Succession, and Intergenerational Transfer in Coffee Farms in Lipa City, Batangas

Date

5-2017

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nohreen Ethel P. Manipol

Committee Member

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

Abstract

This paper attempted to determine the business succession factors that affect business continuity planning of coffee farms in Lipa City, Batangas. Specifically, the research presented the socio-demographic profile of the owners of coffee farmers in Lipa City, Batangas. In addition, it discussed the profile of the coffee farms in Lipa City, Batangas. It also assessed the business succession and intergenerational transfer factors that affect the business continuity planning in coffee farms. The paper also discussed the problems and succession issues in coffee farms. Finally, the study formulated recommendations that could address the problems and succession issues identified.

Descriptive analysis was used to discuss the socio-demographic profile of coffee farmers in Lipa City, Batangas, and their business profile in relation to business succession. Moreover, other factors including communication between the owner and the successor, and experience of the successor was analyzed with respect to business succession. Primary data were gathered through an interview with coffee farm owners. With a confidence level of 90% and a margin of error of 10%, 60 respondents were selected to represent the population of coffee farmers in Lipa City, Batangas. Furthermore, Pearson Product-Moment Correlation was used to test for a linear relationships between the variables.

The conceptual framework of the study was adopted from Boateng, Kamwine, and Saan (2013). Modifications were made for the framework to become more appropriate for the study of coffee farms in Lipa City, Batangas.

The results showed that the farmers in Lipa City, Batangas were relatively old, with an average age of 64 years old. Most of the respondents were male, married, and had acquired some years of elementary schooling. It was also observed that the respondents had 39 years of farming experience and 38 years of involvement in coffee farming. Moreover, most of the respondents were not actively attending trainings, seminars, and organizations. In relation to the farm profile, the farms were 31 years old, on the average. Furthermore, the respondents did not encourage their family members to engage in coffee farming because the members were not interested in coffee farming or were busy with their own jobs. However, it was noted that the area being utilized at the time of the study for farming was planned to be passed down to their children, and that the latter would be responsible in managing and making decisions for the area.

Further, the results showed that coffee farms in Lipa City, Batangas have a problem when it came to succession and business continuity. One of the factors that greatly affected succession was the lack of interest of the younger generation to coffee farming. Some of the respondents mentioned that the children, nowadays, were not interested in working in planting coffee. Moreover, it was also mentioned by the owners that they did not want their children to suffer the difficulties that they experienced in farming.

The recommendation of the study focused on increasing the interest of the potential successors in operating and managing the coffee farms. This can be done by the government agencies, such as the Municipal Agricultural Office and the Local Government Units by showing the younger generation in Lipa City, Batangas that coffee farming can be a profitable business. Since the children are not interested in coffee farming, encouragement from the parents may help them gain interest. The Sangguniang Kabataan can also encourage the youth to engage in coffee farming by holding group discussions and showing the benefits of coffee farming.

Lastly, the offsprings of coffee farmers in Lipa City, Batangas can explore establishing linkages with Coffee Academy and coffee shops around the area. The students may be able to have hands-on experience in coffee preparation and service. On the other hand, coffee shops may be able to have a wider choice of employees for their shops once the students graduate. Academic institutions could also help by providing seminars with expert coffee farmers as speakers who can share their knowledge to current and potential coffee farmers.

Language

English

LC Subject

Coffee industry, Coffee growers

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2017 M17 T46

Notes

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Document Type

Thesis

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