Decision Factors in Organic Vegetable Farming in Selected Areas of Luzon, Philippines

Loida E. Mojica,Jeanette Angeline B. Madamba,Rodolfo R. Sabado. Jr. 한국무역연구원 2010 The International Academy of Global Business and T Vol.6 No.2

Organic farming has been touted as a way to address the alarming rate of environmental degradation and changing health lifestyles of consumers the world over. This exploratory study attempted to identify the decision factors in organic vegetable farming; specifically, the motivators of vegetable farmers for engaging in and sustaining organic farms. This study also sought to determine the motivators and constraints in shifting from organic farming to conventional farming. Results showed that personal and philosophical factors and environmental factors essentially served as motivators for vegetable farmers to go into organic farming while economic and business factors figured prominently as motivators for organic vegetable farmers to sustain operations. No dominant motivating factors were noted for potential shifters to organic vegetable farming in view of numerous constraints such as the lack of awareness and information on organic farming technology, lack of financing, lack of sources of organic fertilizer, need for additional labor, land and soil-related constraints and lack of post-harvest handling facilities. Recommendations to mitigate these constraints included the provision of financial support at the start-up and implementation phases of organic farming and mentoring by established organic vegetable producers.

Strategic Sourcing Patterns of Philippine Agribusiness and Multinational Enterprises

Loida E. Mojica,Jeanette Angeline B. Madamba 한국무역연구원 2011 The International Academy of Global Business and T Vol.7 No.2

This paper examined the strategic sourcing patterns of agribusiness and multinational enterprises in the Philippines and drew insights from an emerging market’s perspective based on ten explorative case studies. Findings confirmed the extant literature relative to multinational enterprises not actively pursuing local sourcing options presented by their host country. Mango processing and export companies in the Philippines primarily sourced locally from multiple locations based on the seasonality of raw material supply. Some firms employed intrasourcing in combination with external sourcing. A majority of the firms adopted sourcing strategies depending on export market specifications. In addition, foreign sourcing was still the predominant practice with imported supplies accounting for the bulk of the procurement operation due to low cost, high and consistent quality and volume flexibility considerations. Sourcing strategies employed by firms were more reactive rather than strategic. The results imply a lack of embeddedness of purchasing and supply management strategy in the overall corporate strategy of some Philippine agribusiness and multinational enterprises.

E-commerce Adoption in Selected Agribusiness Micro, Small and Medium Retail Enterprises (MSMEs) in Laguna, Philippines

Loida E. Mojicaa,Jannie Gracelyn P. Avilesb,Jeanette Angeline B. Madambac,Agnes T. Banzond 아시아무역학회 2018 Journal of Asia Trade and Business Vol.4 No.2

Agribusiness has to be at par with other businesses in adapting to the globalized market environment to take advantage of the new opportunities brought about by the new market reach. With the increased internet and social media penetration in the Philippines as shown in the digital statistical indicators in 2016 and 2017, and the support of telecommunication service providers, opportunities for adoption of e-commerce are available for agribusiness companies.E-commerce becomes increasingly important to business organizations as businesses connect with the other players in the supply chain. Although e-commerce has been found to benefit businesses, and there is awareness among agribusiness MSMEs of these benefits, adoption of e-commerce agribusiness retail micro, small and medium Enterprises (MSMEs) in Laguna, Philippines is relatively slow compared to big businesses. The traditional way of doing business, specifically, the personalized interaction with the customers that the MSMEs would like to maintain, the generally small business size, the cost of investing, implementing and maintaining e-commerce infrastructure and people and the lack of knowledge of e-commerce among agribusiness retail MSMEs were the barriers to e-commerce adoption among retail MSMEs.

Accounting Practices and International Accounting Standard (IAS)/Philippine Accounting Standard (PAS) 41 Compliance of Cattle Farms: Evidence from the Philippines

Hanna D,Miranda,Loida E,Mojica,Jeanette Angeline B,Madamba,Normito R,Zapata Jr The International Academy of Global Business and T 2017 The International Academy of Global Business and T Vol.13 No.1

IAS/PAS 41, a set of accounting standards which regulates the accounting treatment of agricultural activities, provides the accounting benchmark relative to agricultural activity and includes the transformation of biological assets to agricultural produce. In the Philippines, it was implemented in 2005, but many companies were not yet compliant then with the required accounting treatment. Given that there is a dearth of studies about IAS/PAS 41 compliance, this study was conducted to assess the accounting practices of cattle farms based on the provisions of IAS/PAS 41, including their IAS/PAS 41 compliance relative to past international studies, determine the factors that influence adoption of such accounting practices and capture cattle farmer perceptions on IAS/PAS 41. A descriptive research design was employed involving the conduct of a survey of 81 cattle farms, frequency analysis and an evaluation of compliance vis-à-vis an IAS 41 checklist. Study findings show diversity in the accounting practices of cattle farms depending on the size of operation, business organization and nature of business. Backyard farmers did not maintain records and, therefore, were not IAS/PAS 41 compliant but used the fair market value approach utilized by commercial farms in the valuation of cattle inventories.

Disaggregating the Coffee Supply Chain Network in Benguet, Philippines

Dia Noelle F. Velasco,Jeanette Angeline B. Madamba,Loida E. Mojica,Jimmy B. Williams The International Academy of Global Business and T 2016 The International Academy of Global Business and T Vol.12 No.1

Baguio City and the municipality of La Trinidad are the centers of coffee trading in Benguet and the Cordillera Region in the Philippines. The study examines the coffee supply chain network in both places while providing an overview of the global, national, and local coffee industry, explaining the relationships among the players in the supply chain network at the disaggregate level, determining the issues, weaknesses, and gaps, and offering recommendations for each supply chain and the entire network. Methodologies employed were key informant interviews of farmers, traders and coffee shop operators, visual observations and secondary data gathering, and descriptive analysis. Findings reveal that Benguet coffee supply chains have a complex and complicated networks of chain participants, interactions, and relationships. Seven supply chains which comprise the whole supply chain network in the area were identified with varying degrees of relational ties. Recommended interventions include developing road networks in the area, providing good quality planting materials, and utilizing financing products or schemes that are friendly to chain participants. Some investment entry points at the network level are the establishment of a coffee institute or center and coffee processing and/or warehousing or storage facilities.

An Assessment of the Diversification More Choices and Strategies of Coffee Farmers in Lipa City, Batangas, Philippines

Bethzaida Genesis F. Girang,Jeanette Angeline B. Madamba,Loida E. Mojica,Arlene C. Gutierrez,Nohreen Ethel P. Manipol 아시아무역학회 2020 Journal of Asia Trade and Business Vol.7 No.2

Purpose – The volume of local coffee production in the past 10 years has been declining. Despite this, several smallholder coffee farmers are still able to subsist in the industry through various diversification modes and strategies. This study primarily assessed the different diversification mode choices and strategies of coffee farmers in Lipa City, Batangas, Philippines. Design/Methodology/Approach – This study utilized a field survey of 60 respondents and descriptive analysis. Findings - Results revealed that majority of the farmers in Lipa City, Batangas, Philippines already practiced either on-farm diversification (85% of farmers) exclusively or mixed diversification (15% of farmers) in their farms. Specifically, farmers plant several types of crops and practice 34 cropping combinations that would benefit the farming business. The top five of these crop combination choices are (1) Coffee – Banana – Coconut – Guyabano (Soursop), (2) Coffee – Black Pepper – Rambutan – Cacao – Lanzones – Sinturis – Jackfruit – Chico (Sapodilla) – Santol (Cotton Fruit), (3) Coffee-Banana-Coconut-Black Pepper-Lanzones, (4) Coffee – Banana – Coconut – Black Pepper – Rambutan – Lanzones – Ginger, and (5) Coffee – Banana – Coconut – Black Pepper – Ube (Purple Yam) – Ginger. The decision of the farmer to choose the diversification mode (on-farm, off-farm, and/or non-farm diversification) to be implemented in the farm was affected by socio-demographic characteristics (i.e., age and household), farm characteristics, personal and philosophical factors, economic/business factors, and market factors. However, the decision of the farmer to choose the diversification strategy (crop combination) to be implemented was equally affected by the seasonality of the crops, income stream, cash flow, and other market factors. Research Implications – Diversification mode choices and strategies chosen by farmers including crop combination decisions appear to be influenced by a number of factors and thus, since each farm situation is unique, the decision is primarily the farmer’s choice.

Exploring the Market Opportunities for a Philippine Biotechnology Product: The Case of a Coconut-Based Plant Growth Regulator

Ailene M. Florece,Dinah Pura T. Depositario,Normito R. Zapata Jr.,Loida E. Mojica 한국무역연구원 2013 The International Academy of Global Business and T Vol.9 No.1

Cocogro is an organic plant growth regulator (PGR) or promoter that is derived from coconut water or milk. Despite being available on the market since 1996, Cocogro remains to be little known even to the locals of Los Baños, where BIOTECH is located. This study was conducted to explore potential for the market of Cocogro among field-cut flowers and ornamental growers in Los Baños and Calamba, two towns in the province of Laguna which are located in the Philippines. Data on the respondents’ demographic and farm enterprise profile, level of awareness on plant growth regulators (PGRs) and their buying and usage behavior were analyzed using descriptive statistics. The Chi-square test, Pearson correlation and the market buildup method were also utilized. PGRs were found to be associated by the respondents with other terms such as ‘growth stimulant’, ‘growth promoter’, or ‘root booster’ among ornamental growers and `phytohormones’ among field-cut flower growers. Field-cut flower growers used PGRs on a seasonal basis while ornamental growers used PGRs all throughout the year. There were significant relationships found to exist between the decision to buy PGRs and two variables; the size of production area and the age of respondents. It is recommended that the product and the process involved in manufacturing the product still be further refined.

Factors Influencing Farmers’ Decisions in Farm Machineries Usage: The Case of Vegetable Farmers in Quezon Province, Philippines

Fritz Jerald V. Principe,Jeanette Angeline B. Madamba,James Roldan S. Reyes,Loida E. Mojica,Mar B. Cruz 아시아무역학회 2020 Journal of Asia Trade and Business Vol.7 No.2

Purpose – The study assessed the influence of some variables relevant to vegetable farmers’ decisions in farm machinery usage. The decision of farmers in using farm machineries is determined by a number of social, technical, environmental and economic factors. Design/Methodology/Approach – The binary logit model was employed to determine the relationship of the predetermined factors on farmers’ use of a single-specific farm machine. Furthermore, the study utilized negative binomial regression to assess the factors influencing the decisions of farmers in using various farm machineries in their farming operations. Findings – Results showed that majority of the farmers still follow traditional farming methods using very limited farm technologies. Farmers face the challenge of optimizing their land use, and this includes their decision whether or not to use farm machineries in their farming operations in order to boost production. Various factors are considered, more than just the cost of technology. Thus, a combination of household-specific, economic, technology, institutional and moderating factors influences the technology adoption decisions of vegetable farmers. Moreover, it was revealed that formal education, household size, household income, cash availability, farm size, access to extension workers, attendance in seminars, trainings and workshops, and on-farm demo participation are all positively related to the probability of farmers’ usage of identified farming machines. Conversely, farming experience, cost of technology, technology triability, credit access, and farm distance to market are all found to be negatively related to the probability of farmers’ usage of farm machineries. Research Implications – Various recommendations were offered to address challenges encountered by farmers in terms of farm machinery usage including changing the farmers’ mindset from a traditional perspective to a market-oriented one via the R.E.S.E.T. model.

Feed Supply Sourcing Practices and Strategies of Commercial Swine Farms in the Philippines: Trade Insights and Implications

Noel Joy T,Orias,Jeanette Angeline B,Madamba,Loida E,Mojica,Agnes T,Banzon 한국무역연구원 2019 The International Academy of Global Business and T Vol.15 No.1

Purpose - Feeds comprise the majority of swine production expenses, and it has been the goal of livestock farmers to acquire feeds with the best value. This paper identified and analyzed the feed supply sourcing practices and strategies of commercial swine farms in a major hog-producing municipality in Bulacan, a province in the northern Philippines. Design/Methodology/Approach - Small, medium, and large commercial swine farms from Sta. Maria municipality in Bulacan province, 34 in all, were the study subjects. A descriptive method of inquiry/investigation was employed in the study using questionnaires in data gathering. Data was analyzed through mean, mode, frequency counts, and cross tabulation while a Chi-square Test of Independence and Cramer’s V were also used to scrutinize relationships between significant data results. Findings - Four feed supply sourcing strategies were identified in the study, namely (1) self-production of feeds (64.7% of the farms), (2) buying unbranded feeds (23.5%), (3) buying branded feeds only for piglets’ pre-starter and booster feeds while self-producing the rest (23.5%), and lastly, (4) buying feeds from commercial feed mills (11.8%). As the scale of an operation increases, self-production of feeds becomes more prominent due to its overall lower cost, while for farms with a smaller scale of operation, buying unbranded feeds is the more dominant practice due to its lower capital requirement and the relatively lower cost of unbranded feeds compared to those branded. Balance (quality and price) is the decision criterion mostly used by swine farms when choosing feed suppliers. Scale of operation, type of ownership, and years in operation are significant variables associated with the feed sourcing strategy used by commercial swine farms. Research Implications - Few studies focus on the feed supply sourcing of swine farms. Many of the recent studies focus on production, success factors, profitability, technologies, and new farming systems. This study addresses the feed supply sourcing research gap by focusing on the different practices and strategies pertaining to the feed supply sourcing of commercial swine farms. Such insights have crucial and strategic trade implications on the part of feed ingredient and feed suppliers in the country, and it defines specific opportunities for government support as well.

An Analysis on the Market Potential of Cacao Charcoal Briquettes in Los Baños, Laguna, Philippines

Tisha-an Lyka J. Ambal,Arlene C. Gutierrez,Agnes T. Banzon,Loida E. Mojica The International Academy of Global Business and T 2017 The International Academy of Global Business and T Vol.13 No.2

Due to increasing cacao production in the Philippines, agricultural waste from chocolate production also increased. With this, the CocoaPhil Foundation developed cacao husks into new products, namely charcoal briquettes, to fully utilize cacao waste and provide an alternative to wood charcoal. The study aimed to analyze the market potential of cacao charcoal briquettes in Los Banos, Laguna. Specifically, it aimed to assess the potential demand and devise strategies for commercialization. A survey was conducted among 19 large-scale vendors, 41 small-scale vendors, and 50 household consumers. Focus group discussions, usage, an attitude and image study, price point analysis and product attribute ranking were used to assess the data. Results showed that there was a very low awareness level among all segments. Household consumers exhibited a higher level of willingness to purchase and use the product compared to the other two segments. The study revealed that the major factors affecting consumers’ decision were price and availability of the product. After evaluating the market potential of the product in Los Banos Laguna, it was concluded that there was potential for cacao charcoal briquettes, but to fully commercialize the product, positioning should be changed to better fit the market.