Status, Problems and Prospects of Agricultural Cutting Tools Manufacturing and Trading in Selected Areas in Taal, Batangas

Date

5-2015

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nimfa Beatris D. Montes

Committee Member

Nohreen Ethel P. Manipol, Jeanette Angeline B. Madamba, Reynaldo L. Tan, Dinah Pura T. Depositario

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Abstract

The agricultural sector seemed to be promising due the increasing growth of population all over the word. In return, an increase in demand for agricultural equipment for the rapid developing countries particularly China, Brazil and India. This is to address he food security for the growing population. However, the agricultural cutting tools industry has worsened due to diminishing skill work force, inconsistency of products, lack of working capital and lack of collective marketing system.

Agricultural cutting tools manufacturing and trading enterprises in Taal, Batangas are mostly small scale operations. They distribute thier products locally and to neighboring towns and provinces of Batangas. The agricultural cutting tools craft has been present since 1800s in the selected study area. However, there has been minimal support from the local and provincial government and lack of documentation was done in order to ensure the sustainability of the industry.

This study focuses on the current status, problem and prospects faced by the agricultural cutting tools industry. The study aimed for the researcher to: 1) present the profile of the key industry player; 2) describe the practices employed the key player in the four business functions; 3) identify problems, weaknesses and gaps encountered in aspect of the industry; 4) pinpoint opportunities and/or development of entry points in the industry for entrepreneurs and government and/or non-government organizations; and 5) provide suggestions and recommendations to address the strategic issues plaguing the industry.

The study was conducted from December 2014 up to April 2015. Data gathered regarding the actual management and operation was done through personal interviews on the activity involved in the four business employ by the key players of the industry.

A profitability assessment was conducted to analyze the profitability potentials of the industry. Also, Michael Porter’s Five Forces Model and Key Factors for Competitive Success or Failure was further done to have an integrated analysis.

The key players involve are mainly the agricultural cutting tools manufacturers and traders located in four barangays in Taal, Batanagas – this includes Poblacion 6, Poblacion 10, Buli and Balisong. Both of the key players operate on small-scale.

Knowledge of the craft was gained from the parents and ancestors of the manufacturers. The manufacturing of agricultural cutting tools involves nine processes namely: scrap leafspring, cutting, thickness reduction, trimming, cutting edge preparation, rough grinding, curving, finishing/sharpening, and handle installation.

Most of the enterprise have major concerns in were manufacturing and marketing which includes: a) Low manufacturing productivity and consistency; b) Lack of younger work force involvement c) Absence of collective marketing systems for the key players; and d) Lack of working capital. All these were commonly faced by the industry players.

The study identified several opportunities/and or developmental entry points for the key players, the government and other interested individual or institutions which can a determinant of the critical success of failure of the business.

Currently, the status of the agricultural cutting tools manufacturing and trading is stable. However, if nothing will be to ensure the sustainability of the craft by the government and younger generation in Taal, Batangas the industry may die eventually.

Using the findings of the environmental analysis, a problem analysis was made to identify the firm’s critical strategic issue. It was found that the common major issues were the manufacturers’ inability to produce at a high level due lack of skilled workforce and low level of technologies used. The manufacturing practices done were all still manual which have a need on the consistency in the quality of the product.

A SWOT analysis was conducted to evaluate the industry’s key internal strengths and weaknesses and key external opportunities and threats that was present. Using the findings of the internal and external environment, a problem analysis was made to identify the industry’s critical issue. It was found that the key to addressing the major issue was to increase availability of the work force. Being a labor intensive industry, productivity is high dependent on the availability of the work force.

The recommendation strategy to address the problem of lack of skilled work force and involvement of the younger work force is to tap government institution to create awareness to the youth about the potentials of the industry and involve Technical Education and Skills Development Authority (TESDA) to introduce a vocational course of blacksmithing.

Language

English

LC Subject

Agricultural surveys, Cutting tools

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2015 M17 C33

Notes

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Document Type

Thesis

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