Analysis of variation in chicken egg prices in Batangas, 2003-2015

Date

5-2016

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Julieta A. Delos Reyes

Abstract

The study analyzed the variation of chicken egg prices in Batangas from 2003 to 2015. It specifically aimed to determine the trend in volume of chicken egg production, egg price, and prevailing temperature and sun hours in Batangas to determine the effect of seasonality in production to prices of chicken eggs to analyze the response of chicken egg producers to variations in prices and to recommend courses of action to stabilize chicken egg prices. Secondary data of the farm, retail, and wholesale prices of eggs in Batangas and NCR were utilized in the study. Primary data on chicken egg production in San Jose, Batangas was also used. These were analyzed using trend analysis, ratio to moving average method, residual method, and Pearson correlation. From 2003 to 2015, trend in production was generally increasing throughout the years as shown by the positive growth rate of 4.76% per annum. It averaged 26, 142.17 metric tons annually during the period. Prices of chicken eggs in the farm, retail NCR, retail IVA, and wholesale were generally increasing as well as having growth rates of 4.20%, 4.18%, and 4.55%, and 5.37%, respectively and this was attributed to increase in the demand for chicken eggs which signaled the producers to produce more. The trend in temperature and sun hours was fluctuating over time and this attributed to seasons present in the country. Low seasonality indices were recorded in summer months such as March, April, and May. This may be attributed to low supply of and demand for chicken eggs. Supply was low during summer months because layers tend to drink more water in order to regulate their body temperature. Since layers do not have stomachs, feeds that were consumed were just flushed out their bodies therefore nutrients were not fully utilized resulting to low quality and low supply of eggs. There was also low demand for eggs during summer because it is the vacation of most of the students. On the other hand, high seasonality indices were recorded in cold months especially in December due high months because layers tend to eat more feeds so nutrients are utilized by the body resulting to high quality produce. There was also high demand during these months due to school days and holiday seasons The results of the Pearson correlation revealed that production and chicken eggs prices were positively correlated with each other. This conformed to the results of the seasonality indices that during summer months, when production was low and poor quality eggs were produced, low prices were located while during cold months when production was high quality eggs were produced, high prices were recorded. From the results, it can be concluded that there was indeed seasonality in the supply of chicken eggs which led to fluctuations and volatility in chicken egg prices. However, since prices were correlated with production, it was recommended that production should be controlled to match the supply with the demand and lessen the volatility of chicken egg prices. The supply can be controlled by implementing management practices e.g. feed formulation and artificial lighting.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2016 A14 F75

Document Type

Thesis

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