Production and marketing of vermiculture in Bay and Calauan, Laguna, 2015

Date

5-2016

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Marilyn M. Elauria

Abstract

Worm and compost are the two major products of vermiculture. Both products are simultaneously produced as well as demand in the market. A study of the production to marketing of vermiculture was conducted in order to have a clear understanding of the practices being performed and to come up with possible solutions to the problems in vermiculture business. The general objective of the study is to describe and analyze the production and marketing of vermiculture, From the municipalities of Bay and Calauan Laguna 20 respondents were interviewed consisting of 14 producers, two producer-traders, two traders and another two buyer respondents. Descriptive analysis was used and efficiency indicators such as marketing margin and percent markup were utilized in the study. Further, the Rate of Return on Investment (ROI) was used to assess the profitability of the vermiculture business. The production practices adopted are feeding the worms, watering, changing of beds, classifying breeder worms, and cleaning. The harvest and postharvest practices performed are harvesting, drying, handling, grading, and storing. The producer-trader respondents are producing bigger volume of products than the producer-respondents. The average monthly volume of worm and compost produced by the producers was 33 kg and 24 sacks, respectively. For producer-traders, the output was 16,000 kg worm and 7,550 sacks of compost. In marketing the products, producers sometimes act as pseudo-middlemen they buy products from other producers in order to sustain the demand of the buyers. Prices of products vary among respondents the lowest price was Php150 for both worm and compost while the highest price for worm and compost while the highest price for worm and compost respectively was Php450 and Php325. Product quality and affordable price are the major requirements of the buyers. Others are volume of products, right form, availability and accessibility. The product flow of vermiculture products is complex because of the presence of pseudo-middlemen. Moreover, the product already reached the town/provinces in Luzon, Visayas and Mindanao. Results of the cost and return analysis showed that all types of respondents earn positive profit. The ROI for the producers was 73.60% while for the traders, 68.82%. The trader-respondents had lower ROI because of the cost that they incurred upon purchasing products from producers. A higher mark-up is set by the traders to the price of compost (117%) as compared to the price of worm (67%). On the other hand, the producer-trader respondents set a mark-up of 125% for worm and still 117% for compost. The study concludes that first, there is a demand for the products yet unstable because of poor marketing practices employed by the participants. Second, there exists a wide marketing margin in the vermiculture business due to high losses and duplication of services, implying inefficiency. Third, the participants set high mark-up prices. Lastly, the profitability of engaging in the vermiculture business is relatively high.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2016 A14 E93

Document Type

Thesis

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