Successful vegetables farming in Ilagan, Isabela, the case of Pagulayan farm

Date

2010

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Reynaldo L. Tan

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Abstract

The Philippines is primarily an agricultural country with a constantly growing population living in a third world economy. The vegetable industry plays a vital role in coping with the economic crisis of the country. Vegetables are considered as the cheapest source of nutrients that the human body needs such as proteins, fiber, vitamins and minerals. It has a great potential in contributing to the total food production of the country. It is one of the major sources of income of many Filipinos. Past studies show that most vegetable farmers have low income. Sometimes the revenue from their harvests is not even enough to pay their debts that they have utilized in their operations. Nonetheless, there are also vegetable farmers who have been successful in such ventures. In the province of Isabela, Mr. Heherson Martinez Pagulayan was recognized for his achievements in his farm. He is from Barangay Centro, San Antonio, Ilagan, Isabela. His total land area is 15 hectares which he and his wife have inherited from their parents. Both finished their college degrees with no connection in agribusiness. Even though, they decided to venture in farming instead of engaging in their field of expertise. The farm is located in Centro, San Antonio, Ilagan, Isabela which is about seven (7) kilometers away from their residential house. The vegetables that are grown are squash, eggplant, sweet corn, “siling panigang”, “siling labuyo”, tomato and ampalaya. The number of crops and the area that are grown varies depending on their season. The planting of the said crops are not simultaneously. The owner surveys what is demanded by the market and what crop is low in supply so that he can charge with higher prices. Upon harvest, the vegetables are delivered to the public markets in Urdaneta, Cabanatuan City, Balintawak and Bulacan via delivery trucks. The prices are set by the owner based on the prevailing prices in the market. This study was conducted to analyze the management practices and farming strategies that are being employed in the farm which made it successful. To accomplish this, the author assessed the farm in terms of the four business functions, namely: marketing, production, personnel and finance. The relevant elements of the business environment of the farm were also evaluated. The historical background of the farm was presented as well. The author generated and evaluated solutions to answer the problem faced by the owner. The best solution was identified and an implementation plan was designed for the chosen solution. The study of vegetable farming was conducted in Cabisera 2 and Cabisera 19 San Antonio, Ilagan, Isabela. The exploratory research design was used. The farming operations were observed. Relevant data were gathered to explain the performance of the farm. Primary data were gathered through phone and personal interviews with the identified key persons who are able to help in evaluating and assessing the status of the farm. Observations were also done during the farm operations. The Secondary data used in this study were gathered from existing previous studies, journals, books, and sites from the internet. The Business Case Analysis format was used to generate alternative strategies on how to address the mission and vision of the farm. The format includes the Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix. The impacts of the decision made on the four business functions (marketing, operations, finance and personnel) were evaluated. The gross sales of Pagulayan was increasing from 2007 to 2009. In 2007, the total sales were P6,659,249.00. In 2008, he generated gross sales of P8,572,505.40 and it reached P11,523,675.00 in 2009. In contrast with the increasing sales, the return on total investments was decreasing. Thus the owner come up with alternatives that would let the owner maximize the farm resources and to increase the farm profitability. The formulated strategies include cater to new markets (Family Choice Megamart which is not far from the farm), establish retail store and expand production area by acquiring additional farm area. Based from the decision criteria like acceptability to the owner, cost of implementation, ease of implementation and effectiveness, the recommended alternative is to cater to new market specifically institutional buyers like supermarkets. To implement the recommended alternative, the owner must set an appointment with the owner of his target market for him to know the quality required for vegetables. He should also assess the financial status of the farm for him to determine whether the current fund is sufficient or he still needs to borrow to lending institutions. Packaging facilities will be needed for the packing of the vegetables before it is delivered. In connection to this, additional workers will be hired. In implementing the said alternative, costs will be incurred due to needed facilities, increase in labor cost and increase in materials cost in the first years of operation. But since the target market for the produce is a big- time consumer, there will be no major problems in terms of payment unlike in the public markets where the payments are delayed when there are no sales. The new target market will conform to what is written in the contract. Also, the transportation costs will be lessened since the distance is not really far from the farm. Furthermore, since the displayed vegetable produce were branded (name of farm), it is possible to capture additional buyers.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2010 M17 U46

Document Type

Thesis

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