Profitability analysis of onion production and storage in selected municipalities of Nueva Ecija, 2010.

Date

10-2012

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Aragon, Corazon

Abstract

The study was done to analyze the profitability of onion production and storage in selected municipalities of Nueva Ecija in 2010. The specific objectives of the study were to: (1) describe the socio-economic characteristics of onion growers and their cultural management practices in onion production by farm size; (2) determine the level of input utilization and production cost of onion growers by farm size; (3) describe the storage practices of the onion growers; (4) determine the economic benefits from storing onions; (5) assess the factors that account for variation in yield among onion farmers; and (6) identify problems encountered by the onion farmers and suggest recommendations to address the identified problems. Primary and secondary data were used in this study. Primary data were taken from personal interviews of 60 onion farmers which were identified using stratified random sampling. They were divided into two groups: those who sell their onion produce immediately after harvest and those who store their onion produce. Results were analyzed using descriptive analysis, cost and returns analysis, partial budget analysis and multiple linear regression analysis. The average farm size is 1.62 hectares and an average of 1.41 hectares was planted for onions. Half of the respondents sell their onion produce immediately after harvest while the other half stored their produce for better prices using air-dried storage or cold storage. Most of the farmers employing cold storage used the facility of KASAMNE in Palayan, Nueva Ecija while those who air dried their onions used the commercial dryer available in storing their produce. Length of storage for those who used cold storage is six months while for those who air-dried their produce is only three months. The cost and returns analysis showed that farmers who stored their onions have higher net farm income as compared to farmers who sell their produce immediately after harvest. In addition, the partial budget analysis showed that length and time of storage significantly affects net farm income from the onion enterprise. Multiple linear regression analysis showed that the farm size, farming experience, fertilizer cost and technology adoption are the factors that account for variation in yield among the onion farmer- respondents. Most of the problems of the non-storage farmers were on financial matter involved in onion production while those who store were related to the quality of the storage facilities and the quality of the onions after storage. Thus, it is recommended that the farmers be encouraged to practice storage. In addition, the government should encourage private sectors to establish storage facilities for onion.

Language

English

Location

UPLB College of Economics and Management

Call Number

Thesis

Document Type

Thesis

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