Assessing the Economic Benefits of Investment in Capacity Building

Normito R. Zapata Jr.,Bates M. Bathan,Nohreen Ethel P. Manipol,Garry Jay S.Montemayor The International Academy of Global Business and T 2016 The International Academy of Global Business and T Vol.12 No.1

This paper presented the results of an economic assessment study commissioned by the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development of the Department of Science and Technology (PCAARRD-DOST). Primary data on production, costs, investments, and socio-economic and farm-specific characteristics were obtained from 382 goat enterprise owners from Leyte, La Union, Isabela, and Nueva Ecija, Philippines using a pre-tested structured questionnaire. The analytical method used to measure the return on the donor’s investment is the Benefit-Cost-Analysis (BCA). The study showed that the investment on capacity building generated a Net Present Value (NPV) of Php 3.8 million, a Benefit-Cost Ratio (BCR) of 1.36 and an Internal Rate of Return (IRR) of 35.48%. It is therefore concluded that the Rural Enterprise Development (RED) project provided positive returns on the investments of PCAARRD and the participating Local Government Units (LGUs). Hence, it was recommended that the Department of Agriculture institutionalize the RED Project so that it could be replicated in other regions of the country.

Export Competitiveness Analysis of Philippine Carrageenan Products

Shantel Anne Nicole E. Chavez,Bates M. Bathan,Rona Camille M. Lizardo 아시아무역학회 2020 Journal of Asia Trade and Business Vol.7 No.2

Purpose – The Philippines is a major player in world production and trade of seaweed and carrageenan. Refined and semi-refined carrageenan are the main seaweed exports of the country. This paper analyzed the competitiveness of Philippine carrageenan exports using time-series data from 1995 to 2019. Specifically, it described the global trends in export volume and value of carrageenan products; identified the major export destinations of Philippine carrageenan products; examined the export price and quality competitiveness of Philippine carrageenan products; identified the factors affecting the comparative advantage of Philippine carrageenan products; determined the problems related to the export competitiveness of Philippine carrageenan products; and provided policy recommendations. Design/Methodology/Approach – Descriptive analysis was used to describe the trends in the export volume and value of carrageenan products. The comparisons of quality standards for raw dried seaweeds and the carrageenan products in the Philippines are against its main competitors (i.e., People’s Republic of China and Indonesia), the Joint FAO/WHO Expert Committee on Food Additives (JECFA), and its major export destinations (i.e., the United States and the European Union). Export price ratio was used as an indicator of price competitiveness. A cross-country analysis of the revealed comparative advantage (RCA) for the carrageenan exports of the Philippines, Indonesia, and China from 1995-2019 was employed to examine export competitiveness since the RCA shows the relative advantage or disadvantage of a country to export a good. Tobit regression analysis was employed to identify the factors affecting the comparative advantage of Philippine carrageenan products. Findings – Results revealed that when compared with China and Indonesia, carrageenan exports of the Philippines were cheaper and more expensive, respectively. The country complies with the requirements set by JECFA but the United States and the European Union have more stringent quality requirements for carrageenan. The People’s Republic of China has stricter microbiological requirements for carrageenan compared to the Philippines. The quality standards for carrageenan in the Philippines and Indonesia were at par. The significant determinants of revealed comparative advantage (RCA) index of the Philippines were RCA index of Indonesia, foreign exchange rate, and per capita gross domestic product of the European Union. Carrageenan processor-exporters in the Philippines experienced competition with China-based processors for raw dried seaweed input. The competition with Indonesia is also emerging as their carrageenan processing industry starts to expand. The incidence of ice-ice disease affects the quality of seaweeds for processing. Research Implications – The study recommended to: increase local seaweed production in the Philippines and strengthen market linkage between seaweed farmers and processors; provide technical assistance to farmers in order to prevent the development of non-indigenous pests and pathogens such as ice-ice disease in aquaculture areas; inclusion of specification for metal contamination in the Philippine National Standard for dried seaweed; adopt competition-based pricing to compete with carrageenan exports from Indonesia; secure position in major export markets, namely the US, Denmark, France, and Belgium; and expand on emerging markets.

Economic Impact of the ASEAN-China Free Trade Agreement on Philippine Fresh Banana Exports

Joan De Lima,Bates M. Bathan The International Academy of Global Business and T 2016 The International Academy of Global Business and T Vol.12 No.1

The study determined the economic impact of the Association of Southeast Asian Nations (ASEAN)-China Free Trade Agreement (ACFTA) on Philippine fresh banana exports covering the period 1990-2013. Results of the shift and share analysis revealed that ACFTA was not trade creating but rather diverted the trade of the Philippines from Japan to ASEAN member countries and to China. The country’s fresh banana exports to China were also not price competitive before and after the zero tariff regime in ACFTA. In terms of quality competitiveness, the Philippine fresh banana exports to China were also not competitive due to the stricter sanitary and phytosanitary (SPS) measures adopted by China for the country’s fresh banana exports. Using multiple regression analysis, the volume and value of Philippine fresh banana exports to China were significantly affected by tariff, real domestic price, trade disputes, and SPS measures. It was recommended that the Philippines should improve local production of fresh bananas, reduce marketing costs in the fresh banana chain, address trade dispute with China, improve and harmonize SPS standards, and explore other markets for fresh banana exports.

BACKYARD NATIVE CHICKEN PRODUCTION IN QUEZON PROVINCE, PHILIPPINES: PRACTICES, PRODUCTIVITY AND PROFITABILITY

Emmanuel C. Flores,Julieta A. Delos Reyes,Bates M. Bathan,Ma. Cynthia R. Oliveros,Jennifer C. Padrid 한국무역학회 2019 한국무역학회 국제학술대회 Vol.2019 No.08

This study was conducted in Quezon Province, which not only determined the productivity and profitability of native chicken raising but focused also on the effect of the type of rearing system on its productivity and the factors affecting the presence of marketable surplus (MS) to mainstream this activity as an additional source of cash income. Results of the logistic regression revealed that the quantity of output produced, and medicines used increases the probability of having MS, but the quantity of palay, coconut and commercial feeds decreases the probability of having MS of growers and roosters. Whereas, the quantity of corn fed also decreases the probability of having MS of growers and hens. Female raisers usually have MS of these types of chicken. Meanwhile, the higher the age, the higher the probability of having a surplus of growers, while the higher the mortality rate the lower the probability of having MS of roosters. Lastly, adopting the free-range rearing system increases the probability of having MS of growers but decreases the probability of having a surplus of roosters. On the other hand, results of the stochastic production frontier revealed that there is technical inefficiency in chick and rooster production. The number of starting chicks is positively related to production of chicks, growers, hens and roosters. The quantity of palay or commercial feeds given to roosters has a positive effect on its production. Whereas, the amount of corn used for growers has also a positive relationship with its production. Amount of medicines positively affected chick production. Lastly, increasing labor used for raising hens or roosters would increase its production. The TE model for chicks and roosters revealed that adoption of freerange rearing system had higher TE, as well as with higher and positive net and adjusted net income. Provision of different support services for production was recommended.

DOING AWAY WITH RICE IMPORTS: DETERMINING THE CONSUMER PREFERENCE AND POTENTIAL DEMAND FOR RICE-CORN BLEND IN THE NATIONAL CAPITAL REGION, PHILIPPINES

Padrid, J.C.,Delos Reyes, J.A.,Quicoy, C.B.,Bathan, B.M.,Lucero, B.A.G.,Tabernilla, M.E.P. 한국무역학회 2019 한국무역학회 국제학술대회 Vol.2019 No.08

Even without much attention given by the government, white corn still thrives today and continues to act as a buffer staple during critical periods of inadequate rice production. The increasing importance of white corn is seen because unlike yellow corn, even if not marketed, white corn can still be kept for home consumption. The role of white corn an still be traced to the efforts of the government towards improving food security in the country. The Department of Agriculture (DA), together with the National Food Authority (NFA) and the Philippine Maize Federation, Inc. (PhilMaize) launched the rice-corn blend in December 2017. The blend comes in three variants: the 80:20, with 80% rice and 20% white corn grits; 70:30, and 50:50. With the amount of money being allotted by the DA for a massive campaign for production and marketing of rice-corn blend, it thus becomes imperative that courses of action to this effect should be borne out of empirical studies, hence this research which determined the consumer preference and potential demand for rice-corn blend in the NCR. The study employed stratified random sampling to come up with 460 end-consumer-respondents, 160 of whom were from Malabon (35%), 148 from Quezon City (32%), and 152 from San Juan City (33%). Descriptive analysis, product testing, and Fisher’s exact test were performed. Results revealed that introducing the rice-corn blend in the markets of the National Capital Region will be a challenge. Respondents who were not willing to consume the product reported that it will be hard to introduce the blends to their children as alternative staples. The subtle starchy taste from the corn grits seem to serve as deterrent to the end-consumers. However, there are still a number of respondents who were willing to consume them because of health benefits. Highlighting this characteristic of the rice-corn blend during promotion can help improve the demand for the product. Massive information campaign can be launched by the DOH, DA, and the DepEd highlighting this can be a good starting point.