A Case Study of the Batangas Christian Dairy Foundation: A Social Enterprise

Date

3-2012

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dinah Pura T. Depositario

Committee Member

Agnes T. Banzon, Normito R. Zapata, Jr., Reynaldo L. Tan

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Abstract

Dairy milk production in the Philippines has traditionally been one of the most productive economic activities. Two decades ago, it was second only to China in terms of being the top producer in South East Asia. Unfortunately, total production has declined through the years as the Philippine government lowered taxes imposed on dairy imports to urge Filipinos to consume more milk.

At present, most local dairy farmers are hesitant to adopt balanced feeding, effective pasture management and herd management as these practices require high investment. As the amount of investment is a major concern for smallholder dairy farmers, quite a number adopt backyard farming as promoted by the National Dairy Authority.

Backyard farming appears as a convenient practice for most smallholder dairy famers; however, it is only through proper nutrition and management that optimal and profitable dairy farming can be achieved. These smallholder farms can achieve high levels of milk production if they collaborate with a core farm, as well as government and banking institutions through a system known as satellite farming.

BCDFI is a foundation located at Brgy. Pinagkawitan, Lipa City, Batangas which envisions to assist its members by promoting the establishment of satellite dairy farms in the country. The study deals with addressing the issue of sufficiency of the Batangas Christian Dairy Foundation, Inc. (BCDFI) as a social enterprise. This case study specifically aims to: 1) present the historical background and development of the foundation and its dairy farm enterprise; 2) evaluate the five business functions of the dairy farm enterprise of BCDFI; 3) discuss the opportunities and relevant business issues facing BCDFI; and 4) present strategies to make the satellite farming system of BCDFI more viable and sustainable.

A descriptive type of research design was used to assess the foundation’s five functional areas namely: marketing, production, personnel, financial and general management. Primary data were obtained from interviews with the Chief Executive Officer (CEO), Pastor Roger Alcantara, surveys of the members of the organization as well as personal interview with a dairy farm partner. Secondary data were gathered as published materials from the Securities and Exchange Commission (SEC); reports of Dr. Roy D. Chapin; and other books. Unpublished materials were obtained from special problems of the University of the Philippines Los Baños, and from institutional websites such as National Dairy Authority (NDA), Department of Agriculture (DA), and Bureau of Animal Industry (BAI) and other websites containing business journal articles and lectures.

BCDFI, formerly known as The Farm of The Santa Cruz Baptist Church of Sto. Tomas, Batangas, was established to provide funds for its members and social activities. With its wholistic mission to serve the Filipino communities, it has gained support from international churches and institutions.

Pastor Alcantara, the President of BCDFI, envisioned the widespread replication of the farm’s balanced feeding, herd and pasture management to address the potential for the Philippine Dairy Industry. Dr. Roy Chapin, an Animal Nutritionist from Oregon, USA, created a formula to supplement the nutrient requirement of dairy cows. The formula consists of the nutrients which are lacking in the pasture. There are 13 microelements needed by cows, 8 of which can be found in pasture, while the other 5 are obtained through supplementation. Through Mr. Carlos Carmona’s study on the Dr. Roy Chapin’s formula, Batangas Christian Dairy Foundation, Inc. (BCDFI) was the first in the Philippines to employ Dr. Roy Chapin’s balance feeding ration in cows. With this, Pastor Alcantara has established five satellite partners located across the country, particularly Bicol, Guimaras, Lanao del Norte, Davao and Batangas.

The study revealed the issue that the satellite farming system as adapted by BCDFI is not the ideal satellite farming setup as defined in a Managed Farm Development Enterprise (MFDE). It operates more of a consultancy type of farm without charging extra fees.

To address the need for change to generate revenues to sustain its social mission, it is recommended that BCDFI adopt all the elements of an ideal satellite farm wherein financial, technical and logistical assistance will be provided by BCDFI and raw millk will be supplied by the satellite farms to BCDFI processing plants. BCDFI will formally serve as a core farm by providing charged services to large-scale commercial farms and free-of-charge services to smallhold (i.e., NGO and private) farms–which will be called BCD Scheme. In the long run, the milk produced will be supplied to BCDFI for further processing.

The ideal satellite farming setup can only be achieved on a long-term basis. As the company expands its operations though satellite farm, the large volume of milk produce will be further processed to address the needs of the Philippine market. The company should first focus on catering to the local market. Although the industry processors are mostly dominated by international companies, the business will employ its own processing plant to implement a purely Filipino company. In the coming years, processing plants should be established in strategic locations across Luzon, Visayas and Mindanao.

The foundation should also reinforce the link of its BCD Scheme with its other socio- civic initiatives such as BCD Speak, which employs educational tours to students and dairy farmers and BCD Society, a project on milk feeding programs marginalized sectors of the country. In the process, BCDFI will become a true social enterprise.

Language

English

LC Subject

Dairy products industry, Business enterprises

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2012 M17 G67

Notes

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Document Type

Thesis

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