An Analysis of the Performance of the Maliputo (Caranx Ignobilis) Grow-out Culture Technology Business Incubatees and Non-Incubatees in Lemery, Batangas

Date

5-2025

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Ma. Teresa A. Acda

Committee Member

Fitz D. Jimenez, Rei Chino C. Pua, Dia Noelle F. Velasco

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Abstract

The maliputo (Caranx ignobilis) grow-out culture involves the raising of fry or fingerlings in controlled aquaculture environments such as cages, using nutritionally balanced feeds and maintaining optimal water quality until desired harvest size is achieved. In Lemery, Batangas, operators are classified into incubatees and non- incubatees. Incubatees are participants of the Aquabusiness School – Technology Business Incubation (ABS-TBI) program of the National Fisheries Research and Development Institute (NFRDI), and the non-incubatees are those who rely solely on personal initiative and resources.

The purpose of this study was to analyze the performance of maliputo (Caranx ignobilis) grow-out culture technology business incubatees and non-incubatees in Lemery, Batangas. Specifically, the objectives of the study were to: 1) present the socio- demographic and farm profiles of the maliputo grow-out culture business operators, 2) describe the management practices done by the business incubatees and non-incubatees, 3) analyze the performance of the incubatees and non-incubatees in terms of their current state and financial ratios, 4) evaluate the influence of management practices and technology business incubation program participation on performance, specifically operating profit margin, using Partial Least Squares- Structural Equation Modeling (PLS- SEM), and 5) recommend best combinations that would enhance the performance of the maliputo grow-out culture businesses in Lemery, Batangas.

There were 123 fish cage operators from five barangays of Lemery, Batangas who participated in the study. The five maliputo-growing barangays are: Sambal Ilaya, Sambal Ibaba, Wawa Ibaba, Anak Dagat and District I. Of which, 57 were incubatees and 66 were non-incubatees. Both quantitative and qualitative data were utilized in the study.

The socio-demographic and farm profiles revealed minor variations between the two groups. Age profiles were comparable which revealed that the average for incubatees is 40 years while 37 years for non-incubatees, and both groups were predominantly male and high school undergraduates. Moreover, both incubatees and non-incubatees reported similar years of experience in maliputo farming, averaging from 6 to 7 years. Non- incubatees had a higher percentage with no alternative income sources, while incubatees are more involved in organizations such as the Samahan ng Mag-aalaga ng Maliputo in Sambal Ilaya and Samahan ng Mangingisda ng Brgy. Wawa Ibaba in Wawa Ibaba. All respondents operated on a small scale (2m x 2m x1.5 m, 2m x 2m x 2m and 2m x 2m x 3 m  cage sizes), owned their aquaculture farms, and are unregistered businesses, exhibiting homogeneity in farm ownership and classification.

In the study and based on existing literatures, management practices were assessed across four business functions: production, human resource, marketing, and finance. Incubatees demonstrated stricter adherence to recommended practices, especially in terms of feeding, net maintenance, and cage monitoring. Moreover, the group exhibited more intensive operations, with higher stocking densities and yields, and achieved greater average fish weight and survival rates, despite challenges like Typhoon Kristine. For marketing, incubatees better adhered to quality standards, secured institutional buyers, and leveraged cooperative support, while most non-incubatees sold directly in wet markets. Financially, incubatees had better recordkeeping and lower reliance on credit, often supported by informal sources. In human resource practices, factor analysis grouped competencies into four dimensions: Leadership, Development, Communication, and Knowledge, indicating incubatees are generally more structured in personnel management.

Financial ratios were obtained in the study. These include the current ratio, quick ratio, total-debt-to-assets ratio, total-debt-to-equity ratio, gross profit margin, net profit margin, operating profit margin, return on assets and return on equity. The ratios revealed that incubatees had superior liquidity and profitability metrics as compared to non- incubatees. Their current and quick ratios exceeded recommended benchmarks, while non-incubatees displayed weaker liquidity. Both groups had high total-debt-to-asset ratios, raising concerns about solvency. Incubatees also posted stronger gross and operating margins, likely due to lower costs and strategic support. Return on Assets (ROA) and Return on Equity (ROE) were consistently higher for incubatees, suggesting more efficient capital and asset utilization. In addition to the analysis of performance through financial ratios, the current state of the businesses were analyzed through strategic management tools such as the Internal Factor Evaluation (IFE) Matrix and the External Factor Evaluation (EFE) Matrix. The IFE Matrix favored incubatees for strengths like technical knowledge and supply chain integration, while the EFE Matrix showed that incubatees were better positioned to exploit external opportunities and mitigate threats.

After analyzing the performance of both groups, a Partial Least Squares- Structural Equation Modeling (PLS- SEM) to evaluate the influence of management practices on performance was performed. The analysis identified production and pricing as the most influential drivers of performance in terms of the operating profit margin, with positive beta values of 0.466 and 0.376, respectively. Place and human resource practices had smaller positive effects, while product quality and promotion showed negative coefficients, possibly due to their associated costs. Crucially, participation in the TBI program (β = 0.892) had a significant direct effect on performance, underscoring the program’s value in enhancing business performance. Moderation effects revealed that incubation dampened the impact of conventional factors like human resources and place while offsetting the negative impact of costly promotional and quality-related activities. The model explained 22% of the variance in operating profit margin, confirming that incubation support and selected management practices jointly influence financial outcomes in the maliputo grow-out industry. Hence, the study affirms the pivotal role of structured support programs like the TBI in enhancing aquaculture business viability, particularly in resource-challenged environments.

From the results and discussion of the study, the researcher recommended the best combination of management practices to enhance performance for each groups. For general operators, gradual business upscaling, regular cage monitoring and maintenance, and improved access to formal credit were recommended. Upscaling, starting with business registration should be supported by local government and incubation programs to address the constraint of small cage dimensions and limited financial resources. Regular site visits, routine maintenance, and proper cage placement away from pollution sources are also essential to ensure fish health and production efficiency. In addition, improving access to formal credit. Specifically, for incubatees, the focus should be on adopting premium pricing strategies and enhancing product quality, taking advantage of their participation in the TBI program, which equips them with marketing, branding, and customer trust support. For non-incubatees, a comprehensive marketing strategy that leverages local market dynamics such as selling in barangay centers or roadside stalls, paired with targeted production efficiency through consistent recordkeeping, is recommended. By tracking feed, growth rates, and other key metrics, even without formal support, non-incubatees can improve operations and decision-making. Policymakers and government agencies are urged to expand the reach of incubation efforts, make technical training more accessible, and institutionalize regular program evaluations. Supporting non-incubatees through community-based training, open access to learning materials, and cooperative formation will help bridge gaps in support and inclusion. Coordination with the LGU of Lemery, Batangas to assist in business formalization and maintain an updated census of operators is also crucial. These recommendations collectively aim to strengthen the sustainability and competitiveness of maliputo aquaculture in the region.

Language

English

LC Subject

Fish trade--Philippines, Aquaculture industry—Management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2025 M17 A85

Notes

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Document Type

Thesis

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