Analysis of virgin coconut oil value chain financing in Quezon, 2016

Date

6-2016

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nora DM. Carambas

Abstract

This study analyzes the virgin coconut oil (VCO) value chain financing in Quezon. It aimed to describe the socio-economic characteristics determine the value-adding activity as well as its profitability determine capital investment and operating capital requirement assess credit requirement, credit cost, credit utilization, credit repayment and determine the credit-related problems faced by VCO value chain actors. The data were collected from 50 respondents who were composed of coconut farmers, coconut assembler-wholesalers, VCO processors and VCO assembler-wholesaler from two municipalities in Quezon through personal interview and questionnaires. The VCO assembler-wholesaler incurred the highest capital investment (Php4, 444,300) since facility and expensive machineries were needed to engage in this business. On the other hand, small-scale VCO processor incurred the lowest capital investment (Php23, 736). The highest operating capital requirements per cycle was also found in VCO assembler-wholesaler (PhP447, 167) while coconut farmers incurred the lowest operating capital requirements (PhP2, 388.) Among the VCO value chain actors, VCO assembler-wholesaler generated the highest annual net income (PhP4, 920,284). It was followed by large-scale VCO processor (PhP2, 697,846), coconut-assembler-wholesaler (PhP485, 681), medium scale VCO processors (PhP 368, 961), small scale VCO processor (PhP 105, 178), and lastly, by coconut farmers (PhP44, 494). VCO assembler-wholesaler also incurred the highest amount of operating credit requirement (PhP 395, 914) while coconut farmers incurred the lowest (PhP6, 420). The coconut farmers and VCO processors tend to borrow from informal lenders while all of the coconut assemble-wholesalers and VCO assembler-wholesaler tends to borrow from banks. Also, most of the VCO value chain factors availed credit in cash. This allowed them to use the credit even in non-coconut related activities hence poor credit utilization was observed for most of the respondents. However, high repayment rate was observed among respondents. The highest credit lost, on the other hand, was observed among coconut farmers. Among the activities in the VCO value chain, it was found that VCO trading is the most profitable. Small scale VCO processing was the least profitable activity in the VCO value chain in Quezon.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2016 A14 H56

Document Type

Thesis

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