Profitability Analysis of Pork Value Addition in Public Markets of Bay and Los Baños, Laguna, 2025

Date

6-2025

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Julieta A. Delos Reyes

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

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Abstract

This study analyzed the profitability of pork value-addition in public markets of Bay and Los Banos, Laguna by comparing two retailer types: those selling only fresh pork (Type 1) and those who also process their own products, namely longganisa and/or tocino (Type 2). The study aimed to (a) describe the value-adding practices performed on pork and its benefits to producers and consumers in the study areas, (b) estimate the losses (in terms of volume and value) incurred from selling pork, (c) assess the cost and added revenues of performing the identified value adding practices for pork, (d) evaluate the factors affecting the decision of the pork sellers to perform value addition, and (e) propose recommendations for enhancing the income of the pork sellers in the study areas. Primary data were obtained from 26 pork sellers using a pre-tested questionnaire.

The study employed value-added analysis, partial budgeting, cost and returns assessment, firth logistic regression, and thematic analysis to evaluate economic outcomes and understand the motivations, constraints, and decision-making factors influencing value-adding behavior.

Findings reveal that longganisa consistently delivers the highest value-added and net returns, while tocino remains profitable but less so than fresh pork. Type 2 retailers, despite incurring higher input costs, achieved significantly greater net revenues, profit margins, and profit-cost ratios than Type 1. ANOVA results confirmed statistically significant differences in all key profitability indicators (p = 0.000), and firth logistic regression identified profit margin (p = 0.001) as a significant predictor of a retailer’s likelihood to adopt processing practices. Thematic analysis of interview responses further highlighted key concerns such as price volatility, consumer preferences, market competition, and informal competition.

The study concludes that engaging in value-added production, particularly longganisa, is both economically advantageous and statistically associated with more profitable retailing strategies. It recommends that fresh pork retailers be encouraged to adopt basic, low-cost processing methods to diversify income and reduce losses from unsold pork. It also proposes targeted support from local government units (LGUs) and stakeholders, including market zoning enforcement, informal vendor formalization, and localized price monitoring. Ultimately, value addition through longganisa and tocino production offers a viable pathway to enhance income sustainability and competitiveness among small-scale pork retailers in the study areas.

Language

English

LC Subject

Pork industry and trade, Consumers' preferences, Quality of products—Evaluation

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 A14 C47

Notes

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Document Type

Thesis

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