Analysis of contractual arrangements among mango growers in selected municipalities of Zambales, 2011

Date

4-2012

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Cesar B. Quicoy

Committee Member

Alessandro A. Manilay, Antonio Jesus A. Quilloy

Abstract

The study was conducted to analyze the contractual arrangements among mango growers in the selected municipalities of Zambales. Specifically, it aimed to: a) describe the socio-demographic characteristics of mango farmers in the selected municipalities of Zambales, b) identify the different contractual arrangements existing in the said area, c) compare the profitability of different contractual arrangements engaged by mango farmers in the study area, d) identify the problems attributed in engaging in the contractual arrangements and recommend possible solutions to the existing problems portrayed with the engagement to the said schemes. The study used the descriptive method and cost and return analysis as means in analyzing and solving for the data gathered. Thirty-one respondents were interviewed coming from the four municipalities of Zambales where mango farming is dominant and contractual arrangements do exist. Contractual arrangements have become one of the accessible and dependable avenues for mango farmers in resolving their issues on capital (i.e., providing inputs for production). The most adopted, widely used and agreed upon term in the contractual arrangement was the output-sharing or the sharecropping with a sharing scheme of 70:30. This means that 30 percent of the net income goes to the farmer-contractor while the remaining 70 percent goes to the contractor or the sprayer-trader. Results of the study showed that farmer-growers have higher net income compared to farmer-contractors. Average yield of mango farms under contractual arrangement is lower than the farms of the mango farmer-growers because they cannot share in the maintenance of the mango trees and there is less supervision by the contractors. Average price received by the farmer-growers was higher than the farmer- contractors. However, total cash costs of farmer-growers were higher compared to the farmer-contractors. The problems encountered by the mango farmer-growers were variability in output prices and input prices, availability of alternative inputs and the adverse weather condition. On the other hand, farmer-contractors said that their problems were the postponement of scheduled harvest periods in order to have a lower price for the harvested mangoes and in some cases, agreed transactions and contracts are not carried out because they are merely based on verbal agreements. The following policy directions and recommendations are for the benefit of the mango farmers: a) discourage them from engaging the contractual scheme and instead technology transfer should be extended to the mango farmers; b) post-harvest and marketing should be strengthened and developed; c) credit assistance by the government through cooperatives; and d) technical assistance and monitoring by the government agencies concerned on the different aspects of mango farming.

Language

English

Call Number

Thesis

Document Type

Thesis

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