Profitability analysis of smallhood swine production in selected towns of Laguna, 2012.

Date

4-2013

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Catelo, Salvador P.

Co-adviser

Quicoy, Cesar B.

Committee Member

Pabuayon, Isabelita M.

Abstract

The study assessed the profitability of smallhold swine production in selected towns of Laguna. Specifically, it was conducted to: compare the management practices adopted by smallhold swine producers; compare the marketing system of smallhold swine producers; analyze the productivity, efficiency, and profitability of smallhold swine farms; and formulate recommendations to improve the production and marketing performance of smallhold swine producers. A total of 60 smallhold farrow-to-finish swine producers in Bay, Calauan, Pila, and Victoria were interviewed. Half or thirty of them were smallhold backyard producers raising 21 heads or less. The other thirty respondents were smallhold semi-commercial producers who raised 21 to no more than 100 pigs. Descriptive statistics such as frequency counts and means were used. Productivity and efficiency were calculated to compare the performance of the smallhold backyard and semi-commercial producers. Productivity was measured in terms of litter size and average daily gain, and efficiency was measured in terms of feed conversion ratio. Cost and return analysis was used to determine the net farm income and profit margin ratio. T-test on independent samples was used to compare the productivity, efficiency, and profitability indicators. The study enumerated the different management practices by both groups of swine raisers. It was found that both had the same management practices except in the selection of parental breed, health management, and sow feeding management which were more appropriate among the smallhold semi-commercial raisers. Litter size and average daily gain of smallhold semi-commercial farms were, on the average, 1.2 piglets and 0.02kg higher than the smallhold backyard farms, respectively. On the other hand, the mortality rate and feed conversion ratio of the smallhold backyard farms were 2% and 0.18 higher than the smallhold semi-commercial farms, respectively. The differences of these indicators were statistically significant. In terms of marketing practices, both groups of raisers practices were similar in their pricing system and mode of sale. However, unlike the smallhold semi-commercial raisers, majority of the smallhold backyard raisers always relied on middleman in marketing their produce. Results showed that smallhold semi-commercial farms generated a net income of Php 960 per pig. This amount is Php 446 higher than the smallhold backyard raisers and their difference is statistically significant. In terms of profit margin ratio, 11% of the total revenue ofsmallhold backyard raisers went to profit. This is 3% lower than of the vii semi-commercial raisers. Similarly, it was found out that the difference is statistically significant. The problems encountered by smallhold raisers included high cost of feeds, lack of capital, inadequate equipment, lack of drugs, high occurance of disease, and high infant mortality. In the area of marketing, the common problems were the low price and limited market outlet. The study recommends the following: (1) encourage smallhold backyard raisers to expand their scale of operation; (2) encourage smallhold raisersto join cooperatives such as SIDC and UHRC; (3) promote mobility of veterinarians and auxiliary staff for effective delivery of services and extension activities and, (4) improve their production management such as feeding, and choice of parental stock to improve the quality of marketable pork and market prices.

Language

English

Location

UPLB College of Economics and Management

Call Number

Thesis

Document Type

Thesis

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