1

Chapter 1 INTRODUCTION
Aquaculture in the Philippines has a long history and involves many species and farming practices in diverse ecosystems. Most of the production comes from the farming of seaweed, milkfish, tilapia, shrimp, carp, oyster and mussel. Aquaculture contributes significantly to the country's food security, employment and foreign e change earnings. Aquaculture is growing much faster than capture fisheries. !owever, the global position of the Philippines in aquaculture production has fallen steadily from " th place in 1#$% to 1&th place today. 'he Philippines now contributes only a little over one percent of global farmed fish production compared to five percent previously. According to the &((& )ensus of *isheries of the +ational ,tatistics -ffice, there was a total of &&. 1#% aquaculture operators working in/ fishpond operation 01&. $#"1, seaweeds farming 023 %"#1, fish pen operation 0% 3&%1, oysters farming 03 ("11, mussel farming 0& "&&1 and others 01" #."1. ,eaweeds industry leaders estimate that almost 1$( ((( families are directly dependent on seaweed farming. 'here is no available data on gender and employment in the aquaculture sector, but women are an integral part of the production and post harvest activities. 'he various grow4out and hatchery system require skilled labor and technician personnel. 'here are important links with the various sectors supplying the inputs/ fry5fingerling production5gathering and trade, fertili6er and

&

chemical, construction materials and feed ingredients, and feed manufacture, transport and storage. Many people work in the associated sectors/ post4harvest processing, transport and storage, marketing and financing. !ighly trained staffs are involved in research, development and e tension. 'he few studies available on some farming system give some kind of picture of the human resources in aquaculture. 0http/55www.bfar.com.ph1 Aquaculture in the Philippines is carried out in diverse ecosystems 0freshwater, brackish water and marine1 using various culture systems with different degrees of intensification. *or e ample, milkfish is cultured in brackish water ponds, fish pens in freshwater lakes, fish pens in shallow bays, fi ed or floating lake4based cages, and sea4based cages. Probably no other aquaculture species is produced under a wider range of environment and culture systems. Aquapolyculture is the practice of culturing more than one species of aquatic organism in the same pond. 'he motivating principle is that fish production in ponds may be ma imi6ed by raising a combination of species having different food habits. 'he mi ture of fish gives better utili6ation of available natural food produced in a pond. 'he aquapolyculture systems put considerable emphasis on the natural productivity of the water bodies. Photosynthetic and heterotrophic food chains operate in the process of energy transfer from solar radiation to the fish biomass. Producers, consumers and decomposers are the key players in these chains. 7n a photosynthetic food chain, the primary producers 0phytoplankton and bacterioplankton1 synthesi6e organic matter and utili6e inorganic nutrients in the

presence of solar radiation. 'hese are gra6ed by the 6ooplankters 0primary consumer level1 which, in turn, are preyed upon by the higher level consumers like fish and shellfish. 'he heterotrophic food chain is characteri6ed by intense activity of the decomposers. 'hese decomposers degrade organic matter into simpler compounds that are further minerali6ed into inorganic nutrients. 'he detritus resulting from the process becomes an important food source for fish and shellfish. 'his also reduces the number of steps in the energy transfer process, enabling higher productivity levels. 'he future growth of Philippine aquaculture may not be sustained unless new markets are developed, market competitiveness is strengthened and farming risks are reduced. 7n this age of international trade and competition, the Philippine aquaculture industry needs to plan and implement a development and management programme with a global perspective. 'he Philippine government and the private sector are in the process of preparing a national fisheries development plan which includes aquaculture. 'he main aim of this study is to determine the current status of the milkfish, crab and shrimp production particularly in 8e 9a )ru6 Aqua *arm in 7nfanta, :ue6on. !owever, no studies had been conducted to determine the present situation in the said activity. !ence, this study was conducted.

"

,tatement of the Problem 'he main concern of the study is to determine the status of 8e 9a )ru6 Aqua *arm in 7nfanta, :ue6on. ,pecifically to answer the following questions;

1. <hat is the demographic profile of the respondents= &. <hat is the historical background of 8e 9a )ru6 Aqua *arm in 7nfanta, :ue6on= 3. <hat are the species raised in 8e 9a )ru6 Aqua *arm in 7nfanta, :ue6on= ". <hat are the production and marketing practices employed in the business= %. <hat is the financial status of the business= .. <hat are the problems encountered by the business and the solution applied to solve the problems= -b>ective of the ,tudy 'he study is mainly concerned with the presentation and analysis of 8e 9a )ru6 Aqua *arm in 7nfanta, :ue6on. ,pecifically it aims to/ 1. present the demographic profile respondents; &. determine the historical background of 8e 9a )ru6 Aqua *arm in 7nfanta, :ue6on; 3. identify what species are raised in 8e 9a )ru6 Aqua *arm in 7nfanta, :ue6on;

". determine the production and marketing practices employed in the business; %. present the financial status of the business; and .. identify the problems encountered by the business and the solution applied to solve the problems.

,ignificance of the ,tudy 'he result of the study on 8e 9a )ru6 Aqua *arm in 7nfanta, :ue6on will provide specific information which may help possible future entrepreneur in their decision making. ,tudent and researcher as the result could provide relevant information and data needed in their study. 'he 9ocal ?overnment @nit of 7nfanta, :ue6on in determining the situation, condition or status of production, marketing, financial aspect and precautionary solutions to problems in farming by a well known e perienced farmers. Moreover, the result could benefit the 9aguna ,tate Polytechnic @niversity particularly the fishery prospect as the results could be a source of information for the improvement of the pro>ect.

,cope of the ,tudy 'he study focuses on the status of 8e 9a )ru6 Aqua *arm in 7nfanta, :ue6on. 7t included the discussion on the production and management

operations of the farm. 'he financial status and problems encountered by the farm are also discussed. 'his study was conducted from 8ecember &(($ to *ebruary &((#.

9imitation of the ,tudy 'he study is limited by the accessibility of the study area and the e actness of the data in terms of financial status.

)onceptual *ramework of the ,tudy *igure 1 ,hows the conceptual model of the study, it shows that the status of the 8e 9a )ru6 Aqua *arm in 7nfanta :ue6on is affected by the demographic profile of the respondents like se , age, educational attainment and trainings; quality and quantity of product, and the employed by the respondents. production and marketing practices

8efinition of 'erms 'erms used in the study will serve as the basis of understanding the following, most of this definition have been adopted the used of references in technical, operational meaning used in profile on the production of 8e 9a )ru6 Aqua *arm in infanta, :ue6on. Aquaculture is the farming of freshwater and saltwater organisms including mollusks, crustaceans and aquatic plants. @nlike fishing, aquaculture, also known as aqua farming, implies the cultivation of aquatic populations under controlled conditions. Aquaculture is divided in three distinct environment as/ *resh, Arackish, ,alt water Brackish Water is a combination between fresh and salt water that are found in swamp area capable of supporting aquaculture. Demographic Profile refers to the personal information about the respondents as age, se , educational attainment, civil status, year in business and source of capital of the respondents. i!a!cial "tatus refers to the actual condition of the farm regarding their financial performance. 7t may be indicated by the profitability, solvency and liquidity ratios as tools for the analysis.

#arketi!g Practices $ "trategies the application of proper wholeselling direction and encouraging the flow of goods milkfish, shrimp, and crab from producer to consumer. Pol%culture is a strategy to utili6e the different food niches in an aquatic system and harness ma imum possible amounts of nutrients and energy in the form of fish. Aimed at harvesting the productivity at different tropic levels, the approach incorporates different fish species, based on the availability of food and the feeding habits of the species in this case. Pro&uctio! Practices refers to feeding, harvesting, stocking water management, post harvest handling of milkfish, shrimp, and crab. Profita'ilit% is the ability to make enough profit to attract and hold investment capital to determine whether the profit that can be earned is satisfactory e pressed in this terms. Pro'lems difficulties encountered by the managers, owners, workers of the business that needs to worked out. "olutio!s answers to an problem, method or process by which answers is obtained. "pecies group of individuals closely related in structure, capable of breeding within the group but normally outside it.

1(

Chapter ll R()I(W O R(*AT(D *IT(RATUR(

'he fisheries sector of the Philippines is a significant contributor to its economy providing livelihood and foreign e change. 'hus, several studies

conducted by different researcher were presented as follows to emphasi6e that aquaculture is one of the lucrative enterprises in the country. )ru6 01##21 Most of the fishponds in the Philippines are brackish water ponds 0&3# 3&3 ha1 developed out of mangrove swamps. 9and is a premium commodity in the Philippines, so it is rare to convert good agricultural land into fishponds because this would lower the market value of the land. Bap 01###1 <hile much of the country's arable land is already being utili6ed for agriculture, vast areas, particularly marine waters, are still under4 utili6ed with respect to aquaculture. <ith over 12 ".( km of coastline, &". (.3 ha of swamplands, &(( ((( ha of lakes, 31 ((( ha of rivers and 1# ((( ha reservoirs, the Philippines has one of the most e tensive water resources in the world. <ith the intensification of fishpond production and increasing utili6ation of coastal waters for cage and pen aquaculture, there is now increasing demand for feeds as opposed to fertili6ers. 'he supply of most locally available feedstuffs is already limited. ,easonal availability and natural disasters compound this problem. 'he industry continues to be dependent upon the use of imported raw materials such as fishmeal and soybean oil meal. 8ure6a 01##%1 According to a 1##% assessment of the milkfish industry most traditional milkfish farmers were not aware of proper milkfish farming

11

practices. !owever, progressive, educated and well4read milkfish farmers are willing to e plore new technology to improve production and profitability. 'hey employ semi4intensive and intensive milkfish culture systems, and some of them even carry out milkfish hatchery. 7n milkfish breeding and hatchery technologies most technicians lack the necessary skills and knowledge to carry out such activities. 'hose involved in milkfish processing do not have adequate knowledge of how to process value4added products. A 1##. study of tilapia grow4out pond operators showed that farmers had an average age of "2. ,mall farm 0below "."3 ha1 operators are on average younger 0"" years old1, with a high percentage 3( "( years old. 9arge farm 0"."3 ha and above1 operators are older 0%1 years old1. 'he average number of completed years of education of small and large farm operators is 1( and 11 years, respectively. About "1 percent of the large operators and "2 percent of the small operators have a college degree. Aquaculture species cultured include milkfish 0 Chanos chanos1, +ile tilapia 0Oreochromis niloticus1, Mo6ambique tilapia (Oreochromis
mossambicus),

common

carp 0Cyprinus carpio1, bighead carp 0Aristichthys nobilis1 and others, walking catfish (Clarias (Channa
striata1, batrachus),

+orth African catfish (Clarias

gouramy),

gariepinus),

snakehead murrel

giant gourami (Osphronemus spp.1,

barramundi (Lates calcarifer1, spinefoot 0Siganus

guttatus1,

grouper

(Epinephelus

orange4spotted
vermiculatus1,

vermiculated spinefoot 0Siganus

spotted scat (Scatophagus

argus1,

giant

tiger prawn (Penaeus monodon), other penaeid prawns/ 7ndian white prawn (Penaeus ndicus1, banana prawn 0Penaeus
merguiensis),

greasyback shrimp

1&

(!etapenaeus

ensis),

mud crab 0Scylla

serrata, Scylla oceanica),

giant freshwater prawn

0!acrobrachium rosenbergii1, lobsters 0Panulirus spp.1, slipper cupped oyster 0Crassostrea iredalei, Saccostrea spp.1, green mussel 0Perna viridis), abalone 0"aliotis asinine), and seaweed (Eucheuma spp., #racilaria spp., Caulerpa spp.1. 'he three ma>or polyculture species in the Philippines are/
1. Milkfish (Chanos chanos)$ 2. ,hrimp 0mainly giant tiger prawn Penaeus monodon)$

3. )rab 0mainly alimasag %eptunus pelagicus1 )orre 01##%1 ,hrimp farming in the Philippines uses a variety of systems which are affected by the climate, availability of capital, site location, sources of water supply, the marketing of harvested products and the availability and cost of farm inputs. ,hrimp farming follows the traditional, semi4intensive and intensive system. ?allardo 0&((11 -yster and mussel farming takes place in open coastal waters. 'he methods commonly used for oyster culture are bottom, stake and hanging either from a rack or raft4rack. 'he stake method is the most commonly used. 7n terms of productivity, the hanging method is the most productive, followed by the stake, then the bottom method. Aottom and stake methods are used in shallow 0intertidal1 areas, whereas the hanging method is used in deeper areas. )ru6 0&(("1 appro imately 1$ percent of the food fish supply currently comes from aquaculture. Milkfish and tilapia represent the bulk of aquaculture

13

production. *rom 1##$ to &((&, milkfish and tilapia production registered an annual average growth of 11.2 percent, compared to only &.. percent for capture fisheries. 7n &((&, the combined production of milkfish and tilapia of 3." &$# tonnes represented $ 4 # percent of total animal meat consumption. 'he prospects for further increasing aquaculture production are therefore enormous. 7n the last five years, abundant production from aquaculture has made farmed fish increasingly more affordable compared to wild4caught fish. -ver a ten4year period, milkfish and tilapia prices increased by an average of 3." percent and 1.2 percent respectively, as compared to 2.3 percent for the small pelagic shortfin scad &ecapterus macrosoma$

Chapter III #(T+ODO*O,-

1"

'his chapter includes the discussion of the research design, the sub>ect of the study and sampling process, the research materials and instrument that will be used in the study, the procedure in data gathering and analysis of data in order to solve the chosen problem. Cesearch 8esign Method of research applying case study technique was used in this study. 8escriptive method is designed for the investigator to gather information about the present e isting conditions. 'he principle aims in employing this method to describe the nature of a situation as it e ist at the time of the study and to e plore the causes of the particular phenomena 0'ravers 1#2$1. A descriptive study determines and report the way things are. Dust a historian research has no control over what was descriptive research has no control over what is and it can only measure what already e ist. <hen detailed study is made about one person or unit over a considerable period of the time, the research is engaging in what is known as a case study. 'he ,ub>ect 'his study was conducted at 8e 9a )ru6 farm in Aarangay Abiawin 7nfanta, :ue6on. 'he owner of the business and all of the laborers served as the respondents of this study.

1%

Cesearch Materials and 7nstrument 'o attain the ob>ective of this study an interview was conducted with self formulated questions as a guide to gather the necessary information needed in the study. 'he question for the producers was divided into personal and business information. :uestions were prepared in *ilipino particularly 'agalog to facilitate collection of information. 8ata ?athering Procedure 'he business owner and hired laborers was interviewed to gather necessary information regarding the technical, marketing and financial aspect of the firms as well as the problems encountered and the corresponding solutions applied. 9ikewise periodic visitation on the farm was done to observe and gather additional information relevant to the study. 7n addition, the financial records of the firms were also evaluated. Analysis of 8ata 'he data on production and marketing was organi6ed and analy6ed using the means and standard deviation. *inancial analyses were computed using the following ratios. 'he formulas that were used in the analysis of data is presented below as follows/

1.

'he profitability of the business was determined using profitability ratio such as Ceturn on ,ales 0C-,1 and Ceturn on Assets 0C-A1. 'he formulas profitability ratios/ 1. Profitability Catio +et 7ncome ,ales 1((

Ceturn on ,ales E

Ceturn on Assets E

+et 7ncome Assets

1((

2. ,olvency Catio 'otal Assets turn4overE ,ales Assets 1((

12

Chapter I) R("U*T" AND DI"CU""ION

'his chapter presents the information gathered from the respondents such as demographic profile of the respondents, production practices, marketing practices, financial aspect, problem encountered and solutions applied.

!istorical Aackground 8e 9a )ru6 Aqua *arm is located in Aarangay Abiawin ,ur, 7nfanta, :ue6on. 'he farm is presently owned and managed by Mr. 9a Ferne -. 8e 9a )ru6, fondly called GMang AoyH. Mang Aoy is %( years old a A,M7I graduate from Mapua 7nstitute of 'echnology, married to Ilsa 8e 9a )ru6 and blessed with three children. !e was a former member of Philippine Army. -riginally, the farm is owned and managed by Mr. Ficente -campo Mang AoyJs paternal grandfather. 'he farm operation actually started in 1#%. and had milkfish and prawn for its products. As 9olo Ficente grew older, his son in law Mr. !ugo 8e 9a )ru6 Mang AoyJs father assisted him and later managed their &$ hectare farm on his own. 8e 9a )ru6 farm continuously grew as time goes by. 7n 1#$( from his resignation from Philippine Army Mang Aoy started operating and managing the farm with Php1((,(((.(( additional capital. -ne of the main reasons why they engaged in this business is that Mr. 9a Ferne 8e 9a )ru6 knows the proper management of the farm and they wanted to supervise the said business personally. Although he has brothers and sisters he

1$

is the only one who stayed here in the Philippines. Aside from that, they wanted to support their three children through this business. At present, their daughter is now a nurse and his second daughter is a graduating nursing student in *ar Iastern @niversity.

9ocation and 8escription of the *arm 'he 8e 9a )ru6 aqua farm is located at Argy. Abiawin ,ur, 7nfanta, :ue6on. 'he farm has an area of &$ hectares. <ater is not a problem because of the river that is connected to the pond through irrigation system. 'he owner has two nurseries for the new fingerlings. 'here is a pond for rearing, transition, option pond, bangus pond, shrimp pond, catching pond and polyculture pond. 'he map of :ue6on Province, 7nfanta, :ue6on, Argy. Abiawin 7nfanta, :ue6on and the location map of the 8e 9a )ru6 Aqua *arm and the farm lay4out of the 8e 9a )ru6 Aqua *arm are shown in *igures &,3,",% and ..

1#

*igure &. Map of :ue6on Province

&(

*igure 3. Map of 7nfanta, :ue6on

&1

*igure ". Map of Aarangay Abiawin, 7nfanta, :ue6on

&&

&3

&"

-rgani6ational ,tructure of the *arm *igure 2 presents the organi6ational structure of the business. 7t is composed of the owner, manager and the laborer as presented in organi6ational chart. 'he owner manages the production, while the manager in the marketing of the products. Mr. 9a Ferne -. 8e 9a )ru6 being the owner and manager of the farm, he is responsible for all the production and financial management of the farm. As the manager, he monitors and supervises all the farm activities. 'he laborers are responsible in performing all the manual activities in the 8e 9a )ru6 aqua farm.

OWN(R a!& #ANA,(R .*a )er!e O/ De *a Cru01

#AR2(TIN, #ANA,(R 0Ilsa 8e 9a )ru61

9AA-CIC 0Conel )onchada1

9AA-CIC 0Ariel Pradillada1

9AA-CIC 0)ali to Cosas1

9AA-CIC 0Ansel Cosas1

9AA-CIC 0Armando )aller1

*igure 2. -rgani6ational )hart of 8e 9a )ru6 Aqua *arm

&%

8emographic Profile of the Cespondents 'able 1 shows the demographic profile of the respondents. 'he record shows that all there is only one female and the rest is male. All respondents are residing in 7nfanta, :ue6on. 7n terms of educational attainment, the owner was the only one who obtained college degree and the rest of the respondents or the laborers had taken basic education either elementary and high school level only.

'able 1. 8emographic profile of the respondents.

CI,P-+8I+', CI,78I+)I A?I )7F79 ,'A'@, ?I+8IC I8@). A''A7+MI+' BIAC, -* IKPIC7I+)I

-wner -wner 9aborer 1 9aborer & 9aborer 3 9aborer " 9aborer %

7nfanta, :ue6on 7nfanta, :ue6on 7nfanta, :ue6on 7nfanta, :ue6on 7nfanta, :ue6on 7nfanta, :ue6on 7nfanta,

%( "2 3& "( &% 3% "%

M M M M M M M

M * M M M M M

)ollege )ollege Ilementary !igh ,chool !igh ,chool !igh ,chool !igh ,chool

&$ &% 1 &( 1( 1% 1%

&.

Production 'his part discusses all the production activities performed in 8e 9a )ru6 aqua farm.

7nputs 'able & shows the production inputs of 8e 9a )ru6 aqua farm. 7t shows that the inputs are grouped into stocks consisting of fingerling, crablets and fry; tools and equipments.

'able &. 'he production inputs of 8e 9a )ru6 aqua farm. STOCKS *ingerlings TOOLS +ets
FEEDS / FOOD BIOLOGICAL

*ry Mash

)rablets

+ets

*ry Mash *ry Mash

*ry Practices Pond Preparation

+ets

Preparation of the pond is very important for any pond culture operation. 7t is purposely carried out to condition the milkfish fingerlings, crablets and shrimp fry for successful growth of food organism. 7t consist of draining the pond,

&2

application of chicken dung and treating pond to prevent predators and parasite which destroys the natural food of fish and crabs. 8uring low tide the water in the pond is totally drained through opening the pond gate to capture the predators which remain at the bottom of the and prevent pond the entrance of new water and predators. After eliminating the predators the pond supplied with organic fertili6er like chicken dung or some other animal manure available. Application of fertili6er is done for " to 2 days. 'he water was introduced at the pond at a dept of 1% t( &(cm when Glab4labH seen growing in the water, level of water is increased and maintained at 2( to $(cm at the proper pond water level is 1&(413(cm at the canal portions.

Plate 1. 'he laborers checking the level of the water. ,tocking Mang Aoy bought milkfish fingerlings from *ry ?rounds along coastal area at Aarangay 9ib>o, 7nfanta, :ue6on while the shrimp fry and crablets are bought from Aarangay Abiawin in Gpa'atan($

&$

'able 3. ,ource, ,i6e, Price, Folume, *requency of Procurement and ,tocks.

*CI:@I+)B -* PC-)@CIMI+'

,-@C)I -* ,'-)L,

,7MI

@+7' PC7)I 0P!P1

F-9@MI

*ingerlings )rablets *ry

"cm 1.2cm (.%cm

".% . 1&cents

"(,((( %,((( %(,(((

1 1 3

'he fingerlings, shrimp fry and crablets are stocked in the nursery ponds for a few days then transferred, separately to a bigger pond to provide wider spaces for growth. polyculture method. 'wo ponds are for the stock to a condition the three in

Plate &. 'he owner selecting and buying milkfish fingerlings. *eeding

&#

'he fingerlings are fed twice a day in morning and in the afternoon using automatic feeder. 'he feeds dispersed automatically as the milkfish, crab and shrimp touches the pipe attached to it. -ne compartment contained "(,((( fingerlings and the laborer provides commercial feed like fry mash. <hen the production of natural fish food organism went down in the ponds addition of supplementary feeds was done. )ommercial feeds, is fed to the growing milkfish, shrimp and crab to enhance their growth. )ommercial feeds are given for 12 weeks. 'he feeds are broadcasted on the pond everyday.

Plate 3. 'he owner showing the automatic feeder.

!arvesting 'he fish were harvested at the age of four months. At this stage the milkfish is about & to 3 pieces per kilogram while the shrimp and crabs are harvested depending on their si6es. 'he crabs are harvested when they are the si6e of an adult closed fist. 'he shrimp are about 3(( grams per pieces. 8uring low tide they open the main gate of the G lobo)lobo( canal and let the water flow until it is drain. 7n catching the milkfish they use a net, they will surround the pond with net to catch the milkfish.

3(

8uring the high tide when the canal is filled with water the gate of grown out pond is opened and the water is allowed to enter, forcing the fishes to enter in the canal. 'hen the gate is closed. 'his method of harvesting of milkfish is called Gpasabang(. 'hey used Glumpot( bag net for the final harvesting. Lumpot is attached in one end of the gate and serve as bag for catching milkfish. <hile in harvesting the shrimp they used also G lumpot( when they catch the shrimp they pick out the small shrimp and put back in the pond. 'hey only harvest shrimp in perfect marketable si6e. 7n harvesting crab they used cage type net. 'hey put the cage into the pond to catch crab the average si6e of the crab is & pieces per kilo.

Plate ". !arvesting the bangus, shrimp and crab.

31

Marketing Practices Marketing )hannel Mode of selling done by the owner4respondents is in wholesale at retail basis paid by cash of financing. Marketing of milkfish is done twice a year. <hile the shrimp and crab is done three times a year.

)ontact Auyers <holesale

)ustomers and Auyers Cetailers

*igure $. Marketing )hannel of 8e 9a )ru6 Aqua *arm

3&

Mode of Pricing 'he prices of milkfish, crab and shrimp depend on the current market demand and supply. 'able & shows the prices of milkfish, crab and shrimp from the year &((. to &(($. 'able ". Price per kilogram of milkfish, crab and shrimp for the last three years in Php PC-8@)' Milkfish )rab ,hrimp &((. %(.(( 1%(.(( 1((.(( &((2 .(.(( &((.(( 1&(.(( &(($ $(.(( 3((.(( 1%(.((

'able %. Present price of milkfish, crab and shrimp in terms of wholesaling and retailing PC-8@)' Milkfish )rab ,hrimp <!-9I,A9I PC7)I5L? Php2(.(( Php3((.(( Php&%(.(( CI'A79 PC7)I5L? Php1((.(( Php"((.(( Php3%(.((

Mode of Payment

33

According to Mr. 9a Ferne -. 8e 9a )ru6, after he and the buyers agreed on the price of the milkfish, shrimp and crab, the buyers pay him in cash.

Marketing ,trategy 'he owner5manager used personal selling as their marketing strategy, they sell their product to the wholesaler and retailer. ,ometimes they sell their products directly to the consumers.

*inancial Analysis 'he financial statement of 8e 9a )ru6 Aqua *arm is presented on 'ables " and %. 7t shows the income statement and balance sheet for the year &((.4 &(($. 'he data presented in the tables were base on the assumptions provided by the respondents due to unavailability of written financial records of the farm. 'able " shows the income statement for the year &((. to &(($. 7t indicates an increase in sales and net income of the farm. 'he net income for the year &((., &((2 and &(($ were Php&,2&",(((.((, Php3,""(,&((.(( and Php",3#.,"((.(( respectively. 'able % shows the balance sheet for the year &((. to &(($. 7t indicates that the total current assets of the farm for the year &((. is Php1,3(",(((.((; &((2 Php1,.3(,(((.((; and Php&,(32,%((.(( for &(($; this the total cash of 8e 9a )ru6 Aqua *arm.

3"

'able .. 7ncome ,tatement of 8e 9a )ru6 aqua farm as of 8ecember 31, &(($. 0in Million Php1 PAC'7)@9AC, ,ales Milkfish ,hrimps )rabs 3.((( (."(( (.1%( 3..(( (."$( (.&(( ".$(( (.3%( (.1(( &((. &((2 &(($

'otal ,ales/

3.%%(

".&$(

%.&%(

I penses )ost of )hicken 8ung *ertili6er 'ransportation 9abor 'a *ry4Aangus ,hrimps Miscellaneous

(.(.# (.&(2 (.(3. (.1"" (.(1( (.1%( (.&(( (.(1(

(.($3 (.&(2 (.(3. (.1"" (.(1( (.1%( (.&(( (.(1(

(.(#2 (.&(2 (.(3. (.1"" (.(1( (.1%( (.&(( (.(1(

3%

'otal I penses/

(.$&.

(.$"(

(.$%"

+et 7ncome

&.2&"

3.""(

".3#.

'able 2. Aalance ,heet of 8e 9a )ru6 aqua farm as of 8ecember 31, &(($. 0in Million Php1 PAC'7)@9AC, A,,I', )urrent Assets )ash 'otal )urrent Assets *i ed Assets 9and 8ikes and ?ates Iquipments 'otal *i ed Assets '-'A9 )@CCI+' A+8 *7KI8 A,,I', 97AA797'7I, 8e 9a )ru6 )apital Add/ +et 7ncome 'otal )apital Aalance 9ess/ Personal <ithdrawals '-'A9 97AA797'7I, A+8 )AP7'A9 (.&(( &.2&" &.#&" (.(2% &.$"# (.&%( 3.""( 3..%% (."$( 3.12% (.313 ".3#. ".2%# 1.12. 3.%$3 1.((( (.%(( (.("% 1.%"% 1.((( (.%(( (.("% 1.%"% 1,((( (.%(( (.("% 1.%"% 1.3(" 1.3(" 1..3( 1..3( &.(3$ &.(3$ &((. &((2 &(($

&.$"#

3.12%

3.%$3

3.

'able $. *inancial Assumption of 8e 9a )ru6 Aqua *arm for the Bear &((. to &(($ 0amount in Php1 ASSUMPTION &((. &((2 &(($
Chicken dung Fertili er !iking "nd Phil#h$% Fingerling%

&2.( sacks N &%.(( E .#,(((.((

331& sacks N &%.(( E $&,$((.((

3$." sacks N &%.((E#.,.((.((

2% bottles N &,2.( E &(2,(((.(( "(,((( N ".% E1$(,(((.(( %,((( N . E 3(,(((.(( %(,((( N .1& E .,(((.(( % N &(( E 1((( 1((( N 1"" days E1"",(((.((

2% bottles N &,2.( 2% bottles N &,2.( E &(2,(((.(( E &(2,(((.(( "(,((( N ".%( E1$(,(((.(( %,((( N . E 3(,(((.(( %(,((( N .1& E .,(((.(( % N &(( E 1((( 1((( N 1"" days E1"",(((.(( 3.,(((.(( &(,(((.(( 1.,(((.(( "(,((( N ".%( E 1$(,(((.(( %,((( N . E 3(,(((.(( %(,((( N .1& E .,(((.(( % N &(( E 1((( 1((( N 1"" days E1"",(((.(( 3.,(((.(( &(,(((.(( 1.,(((.((

Cr"&let%

Shri'# Fr(

L"&$r

Tr"n%#$rt"ti$n G"%$line M"inten"nce T") Bu%ine%% Per'it

3.,(((.(( &(,(((.(( 1.,(((.((

1(,(((.((

1(,(((.((

1(,(((.((

32 Mi%cell"ne$u% E*ui#'ent +e#"ir

1(,(((.((

1(,(((.((

1(,(((.((

Profitability ratios 'able . shows the analysis of return on sales of the business for the year ended &((., &((2 and &(($. 'he results shows that for three consecutive years of the operation they got an average of the return on sales means that every Php1.(( of sales there are Php(.22, Php(.$( and Php(.$3 net income respectively in the year &((. to &(($.

'able #. Ceturn on sales of 8e 9a )ru6 Aqua *arm in Php 7'IM, +et 7ncome ,ales Ceturn on ,ales Ceturn on Assets 'able 2 shows that rate of return on assets of 8e 9a )ru6 Aqua *arm for the year &((. to &(($/ Php(.#%, Php1.($ and Php1.&$ respectively. &((. &,2&",(((.(( 3,%%(,(((.(( (.22 &((2 3,""(,&((.(( ",&$(,(((.(( (.$( &(($ ",3#.,"((.(( %,&%(,(((.(( (.$3

'able 1(. Ceturn on assets of 8e 9a )ru6 Aqua *arm in Php

3$

7'IM, +et 7ncome 'otal Assets Ceturn on Assets

&((. &,2&",(((.(( &,$"#,(((.(( (.#%

&((2 3,""(,&((.(( 3,12%,(((.(( 1.($

&(($ ",3#.,"((.(( 3,%$&,%((.(( 1.&$

Asset 'urn4-ver 'otal assets turn4over indicates the farm ability to generate sale in relation of fi ed assets. 'able $ shows that rate on sales of 8e 9a )ru6 Aqua *arm for the year &((. to &(($, Php1.&", Php1.3" and Php1."2 respectively.

'able 11. 'otal Assets 'urn4-ver of 8e 9a )ru6 Aqua *arm in Php 7'IM, ,ales 'otal Assets 'otal Assets 'urn4 -ver &((. 3,%%(,(((.(( &,$"#,(((.(( &((2 ",&$(,(((.(( 3,12%,(((.(( &(($ %,&%(,(((.(( 3,%$&,%((.((

1.&"

1.3"

1."2

Problems Incountered and ,olution Applied 'able # shows the problem encountered by the farm and solution applied. )limate which affects the growth of milkfish, crab and shrimp. Firal diseases that affect the immune system of crab and shrimp.

3#

'able 1&. Problem encountered and solution applied in 8e 9a )ru6 aqua farm. )A'I?-CB #ilkfish )limate Pest and 8iseases !arvesting Pricing *inancial -thers CRAB )limate Pest and 8iseases !arvesting Pricing *inancial -thers "+RI#P )limate Pest and 8iseases 8ry Aacterial and Addition of water in the pond +one 8ry Aacterial and viruses !igh tide Aarat 9ack of capital Indemic5snails Addition of water in the pond +one <ater pump ,trict monitoring Aarrowing capital from the bank Proper designing of the pond Cain Application dung of chicken PC-A9IM ,-9@'7-+

Aarat 9ack of capital Indemic5snails

,trict monitoring Aarrowing capital from the bank Proper designing of the pond

"(

!arvesting Pricing *inancial -thers

viruses !igh tide Aarat 9ack of capital Indemic5snails

<ater pump ,trict monitoring Aarrowing capital from the bank Proper designing of the pond

Chapter ) "U##AR-3 CONC*U"ION AND R(CO##(NDATION

'his case study about 8e 9a )ru6 aqua rarm was conducted at Aarangay Abiawin ,ur, 7nfanta, :ue6on from 8ecember &(($ to *ebruary &((#. 'he general ob>ectives of this study was to present the demographic profile of the respondents, specifically it aims to determine the historical background of the 8e 9a )ru6 aqua farm; to identify what species are raised farm; determine the production and marketing practices employed in the business; to present the financial status of the business; and to identify the problems encountered by the business and the solution applied to solve the problems. 'his study used an interview schedule as a guide to gather relevant information and periodic observation on the operations of the farm to gather additional information. Mr. 9a Ferne -. 8e 9a )ru6 0also known as Mang Aoy1 and his wife, Mrs. Ilsa 8e 9a )ru6 are the present owners 4 managers of the farm. 'he production of 8e 9a )ru6 aqua farm was started in the year 1#%.. -riginally, the farm is owned and managed by Mr. Ficente -campo, Mang AoyJs paternal grandfather.

"1

7n 1#$(, from his resignation from the Philippine Army Mang Aoy started operating and managing the farm with Php1((,(((.(( additional capital. Aeing the owner 4 manager of the farm, he is also responsible for all the ma>or aspect involved in the farm operation. 8e 9a )ru6 aqua farm is composed of five laborers and the owner 5 manager of the farm. All of the laborers in the farm are responsible for the manual operation of the farm. 'he business followed different production from the preparation of the pond up to post harvest activities. Preparation of the pond is important for any pond culture operation. 7t is purposely carried out to condition the milkfish fingerlings, crablets and shrimp fry. 'he fingerling, shrimp fry and crablets are stocked in the nursery ponds for a few days then transferred, separately to a bigger pond to provide wider spaces for growth. 'he fingerlings are fed twice a day in the morning and in the afternoon. -ne pond compartment contained "(,((( fingerlings. 'he laborer provides commercial feeds like fry mash. 'he fish is harvested at the age of four months, this stage the milkfish is about & to 3 pieces per kilogram while the shrimps and crabs are harvested depending on their si6es. )rabs are ready for harvest when they are the si6e of an adult closed fist. 'he shrimps are about 3(( grams per pieces and 1%( pieces per kilogram. -n the marketing practices, the harvested milkfish, shrimp and crab is sold to the direct buyers in 7nfanta and Ceal :ue6on public market. Pricing of milkfish, shrimp and crab are depend on the trend in the market and sale on per

"&

kilogram basis with milkfish 0Php2(.((4Php1((.((1 crab 0Php3((.((4Php"((1 and shrimp 0Php&%(.((4Php3%(.((1. 7n computing the financial analysis of the farm the researcher used profitability and solvency ratio. Aased on the analysis of 7ncome ,tatement and Aalance ,heet from the year &((. to &(($, the Ceturn on ,ales were computed as (.22, (.$( and (.$3 respectively, were the Ceturn on Assets were (.#%, 1.($ and 1.&$ respectively, and 'otal Asset 'urn4-ver were 1.&", 1.3" and 1."2 respectively. 'he problems encountered by the farm are the occurrence of viral diseases that attack the crab and shrimp immune system. 7n this case crab and shrimp are dying before it is harvested. 'he viral disease attack when the weather is changing. Mang Aoy doest have a solution to the problem affecting the crab and shrimp. Aecause in this case the 8epartment of Agriculture of 7nfanta, :ue6on those not have a scientific study if what virus attack the crab and shrimp. All pond operator also encountered this problem concerning crab and shrimp. Aased on the results of the study, considering the management, production, marketing and financial aspects, the business is profitable. 7t is therefore concluded that 8e 9a )ru6 aqua farm is earning a good profit. Mr. 9a Ferne -. 8e 9a )ru6 recommended that if you start in this type of business you must have a well develop pond to increase profit.

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