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.

Valuation of a Pre-Revenue Startup: The Case of a Philippine Software Company

Cris Edwin B. Bonalos(Cris Edwin B. Bonalos ),Dinah Pura T. Depositario(Dinah Pura T. Depositario ),Normito R. Zapata Jr.(Normito R. Zapata Jr. ) 아시아무역학회 2022 Journal of Asia Trade and Business Vol.9 No.2

Purpose - This study aimed to valuate a pre-revenue software startup in the Philippines by applying various valuation tools. Also, it aimed to verify these tools’ advantages and disadvantages in the context of a pre-revenue startup. Design/Methodology/Approach - The study employed a case study approach. Valuation methods used were the Venture Capital Method, Chicago Method, Development Milestone Method, and Cayenne Consulting Calculator. In performing these methods, quantitative and qualitative data were used. Such data were mostly provided and validated by the company’s executive management or offices. Findings - Based on the comparisons made among the pre-revenue valuation methods, the Chicago Method is determined to be the most recommended method. This method considered various factors relating to where the company is currently, and weighed different scenarios the in which the company could be. Research Implications - Further research on possible strategies for the startup’s sustainability and survivability is recommended. Such strategies may include further evaluating and recalibrating operations, and sourcing capital from angel investors.

Seeking a Path Towards Philippine Rural Economic Development : Value-added Agriculture in the Goat Milkbased Food Industry

Nimfa Derige Montes,Normito R. Zapata Jr. 한국무역연구원 2010 The International Academy of Global Business and T Vol.6 No.2

With economic recession felt in 2007 and onwards, rural poverty in the Philippines is expected to worsen. Goat production enterprises proved to be an attractive alternative venture, providing affordable meat and milk for the poor man’s family needs and simultaneously, providing a good income. The Philippines is still an insignificant producer of goat’s milk compared to major goat milk producing countries such as India, Bangladesh, and Sudan. Through strategic alliances, small farmers and their respective farmers’ cooperatives may explore the prospects of value added products and “niche” markets in goat milk-based drinks and food products and thus, help improve marketability and income. This study focused on goat milk-based drinks and food products such as pasteurized goat milk and cheese for reasons of nutrition. It aims to show how value-added agriculture can improve the profitability of farmers. The gross margin and capital budgeting approach was used to illustrate the impact of value-adding activities. This conceptual paper on value-added agriculture has been done already in many developed countries such as New Zealand and Australia. However, this paper is an initial attempt to explore value-added agriculture through goat milk-based products in the Philippines.

Opportunities and Challenges in The Emerging Global Herbal Medicine Industry

Nimfa D. Montes,Normito R. Zapata Jr. 한국무역연구원 2012 The International Academy of Global Business and T Vol.8 No.2

Herbal medicine plays a major role in the health and wellbeing of consumers. Global Industry Analysts, Inc. (GIA) reported that the herbal supplements and remedies market will reach an estimated US $107 billion in 2017. Rapid market growth is caused by an aging population and consumers’ inclinations toward a healthier lifestyle. Some intrinsic benefits from using natural herbs and botanical derivatives such as efficacy, little or no side effects and economy are realized. However, evidence of product safety founded on scientific research and clinical trials will remain a crucial factor to ensure long-run industry success. With the growing interest in herbal medicine, a country’s entrepreneurs manufacture herbal products to obtain a fair market share through licensing. Consequently, they must address the limited supply of quality raw materials at competitive costs. Hence, this paper determines the vision and mission of the industry and enterprises; identifies key opportunities and threats as well as key strengths and weaknesses; and formulates effective strategies through SWOT analysis. Concrete measures must be undertaken: a) pursue an effective strategic alliance between pharmaceutical companies and farmers; b) determine quality standards for raw materials and finished products; c) utilize appropriate technologies; d) enhance the role of consolidators; and e) engage new product development.

GLOBAL PRACTICES AND PERSPECTIVES FOR TOURISM SUSTAINABILITY: PARTICIPATORY STRIDES TAKEN TOWARDS ADOPTION OF THE WORLD CHARTER FOR SUSTAINABLE TOURISM + 20

Arnelie G. Laquidan,Jeanette Angeline B. Madamba,Normito R. Zapata, Jr. 한국무역학회 2019 한국무역학회 국제학술대회 Vol.2019 No.08

This paper delved on and reviewed sustainable tourism practices and experience of selected Asian countries using secondary data and content analysis in the context of the World Charter for Sustainable Tourism + 20 which focuses on preserving national heritage, supporting biodiversity, coping with climate change, empowering local communities and promoting peace and coexistence. While the focus of the extant sustainable tourism literature for each country appears to be highly variable, findings revealed that though tourism sustainability awareness is evident in 11 Asian countries, each country approached the concept of sustainable tourism differently. Common patterns seen include the focus on preserving the national heritage and promoting inclusive development. Among the 11 countries, Singapore, South Korea and Taiwan appear to be leading the way in terms of sustainable tourism while the other countries continue to grapple with issues such as preserving biodiversity, combatting climate change and promoting peace and coexistence.

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 Affecting Entrepreneurial Intention and Behavior among the Indigenous Farming Community in Mountain Province, Philippines

Hanna A,Canillo,Jeanette Angeline B,Madamba,James Roldan S,Reyes,Normito R,Zapata,Jr,Agnes T,Banzon 한국무역연구원 2020 The International Academy of Global Business and T Vol.16 No.1

Purpose – With the shift of the Philippine economy towards an agribusiness-driven sector from mere production-oriented farming, indigenous people have been encouraged to engage in entrepreneurship as it is seen as a means to improve their socio-economic status and their community. This study attempted to fill the gap in indigenous entrepreneurship research as it delved on the factors influencing entrepreneurial intention and behavior in an indigenous rice farming community in the northern Philippines. Design/Methodology/Approach – This study assessed the factors affecting the entrepreneurial intention and behavior among indigenous rice farmers in Bun-ayan, Sabangan, Mountain Province, Philippines by analyzing the entrepreneurial indicators and predictors through correlation and multiple regression analysis of responses from 74 indigenous rice farmers. Findings – Among all the entrepreneurship predictors in this research, age, educational attainment, years in farming, occupation of the farmer’s father and mother, entrepreneurial inclination, entrepreneurial role model, entrepreneurial education, personal attitude, subjective norm and perceived behavioral control were significantly related to entrepreneurial intention. Among the significant variables extracted from the correlation analysis, the following factors affecting entrepreneurial intention and behavior are age, father’s occupation and entrepreneurial inclination. Furthermore, it was found that socio-demographic factors and entrepreneurial inclination determine the intention of indigenous rice farmers to engage in entrepreneurial activities. The Theory of Planned Behavior indicators become insignificant when other predictors are incorporated with it. Research Implications – Though there is evidence of a high level of entrepreneurial intention among the indigenous farming community, challenges pertinent to culture preservation vis-a-vis the indigenous farming community’s capacity to translate such intention into entrepreneurial behavior need to be addressed.

Climate Change and Philippine Agribusiness : The Case of a Sweet Corn Producing Company

Dinah Pura T. Depositario,Len Augusto V. Valera,Reynaldo L. Tan,Normito R. Zapata Jr. 한국무역연구원 2010 The International Academy of Global Business and T Vol.6 No.1

This paper describes how an agribusiness enterprise in the Philippines has been adapting to climate change. Climate change adaptation refers to the ability of an entity to adjust to climate change, or to cope with its consequences. Pentagon Agribusiness, Inc., like any other company engaged in crop production, has not been exempt from the effects of climate change. Pentagon is an agribusiness company which produces sweet corn on a daily basis. In a span of twenty years, the company has managed to become highly regarded in the sweet corn production industry. At present, the company produces corn in more than 200 hectares of land in Luzon, the biggest island in the Philippines. The case study method was used to describe how climate change became a business issue for Pentagon Agribusiness Inc. and also to elaborate on the company’s response strategies to climate change. The major effects of climate change include a decrease in sweet corn productivity rates and a decrease in profitability. The company experienced an increase in sales from PhP19 million in 2003 to PhP39 million in 2007. However, in 2008, the company generated annual sales of PhP30 million only which is a 30% decrease from the 2007 figure.

THE ASIAN ORGANIC FERTILIZER INDUSTRY

Ma,Khristine T,Helera,Jimmy B,Williams,Jeanette Angeline B,Madamba,Normito R,Zapata Jr 한국무역연구원 2013 貿易 硏究 Vol.9 No.2

Over the years, the market for organic fertilizers has expanded rapidly. The number of commercially produced organic fertilizers has increased in a number of Asian countries. In the Philippines, considerable advancements have already been achieved relative to organic fertilizer production. The demand for organic fertilizer is largely influenced by the development in the organic agriculture industry. Consumers have placed so much value on the nutritive and safety aspect of organically produced foods. In Asia, China has the largest production capacity when it comes to organic fertilizer. The largest importer of organic fertilizer in Asia, on the other hand, is Japan. The pelletized chicken manure fertilizer is one product Philippine poultry producers can bank on to enter the export market. This paper not only showed that it is feasible to put up a pelletized poultry manure fertilizer production plant in the country, but that the potentials for this underexplored product have tremendous profit implications for the Philippines.

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.