MARKETING OF AGRICULTURAL PRODUCTS AT BARANGAY

SAN PEDRO, PUERTO PRINCESA CITY,

PALAWAN1

SHEILA S. APAITAN2

CHAPTER I

INTRODUCTION

Marketing is an activity, set of institutions and a

process of creating, communicating, delivering, and

exchanging offerings that have value for customers, client

partners and society at large. It involves the suppliers,

middlemen, retailers and the consumers. The consumers

purchased goods for their wants and needs to make them

satisfied.

The practicum student engaged in marketing of

agricultural products, who retailed rice, banana (Tundan

and Lakatan), camote tops and cooking oil. These products

are demanded in the project area, central part of Barangay

San Pedro which is populated by many residents.

__________________
1A
practicum project result submitted to the Practicum
Commitee of the College of Agriculture, Forestry and
Environmental Sciences, Western Philippines University, Puerto
Princesa Campus as partial fulfillment of the requirements for
the degree of Bachelor of Science in Agricultural Business under
the supervision of Dr. Maria Asela B. Sebido.
2A
fourth year student taking up Bachelor of Science in
Agricultural Business of western Philippines University, Puerto
ptincesa Campus, Sta Monica, Puerto Princesa City.
 The project on Marketing of Agricultural Products was

conducted at Abanico Road, Barangay San Pedro, Puerto

Princesa City from June to November 2018.

Objectives of the Project

The practicum project was conducted to:

1. Apply the knowledge and skills learned in the

classroom into actual marketing of agricultural

products business;

2. Earn profit from the marketing of agricultural

products business.
 CHAPTER II

IMPLEMENTATION OF THE PROJECT

A. MANAGEMENT ASPECT

Project Description

The practicum project on “Marketing of Agricultural

Products in Abanico Road, Barangay San Pedro, Puerto

Princesa” was conducted from June to November 2018. The

agricultural products bought and sold were rice, banana

(Tundan and Lakatan), camote tops and cooking oil. These

products were demanded by the residents in the project

area.

Organizational structure of the Project

A sole proprietorship was the business form adopted

by the practicum student. The practicum student was the

one responsible in managing the project such as planning,

budgeting, buying, selling and record keeping of the

activities, products bought and sold. She was monitored

and supervised by her adviser. Her family supported her

financially and morally. Table 1 shows the accomplished

calendar of activities and Figure 1 shows organizational

structure of the project.

Table 1. Accomplished calendar of activities
Activities Date
Securing of permit June 29, 2018
Preparation of the stall June 29, 2018
Buying of supplies and materials June 30, 2018
needed in the project
Canvassing of supplies and
prices agricultural products to
be sold
Rice July 1,17, 2018
Banana July 6,2018
Camote tops August 31,2018
Cooking oil September 4,2018
Buying of agricultural products
for sale
Rice July 2, 17, 29,2018
August 13, 21, 28, 2018
September 4, 23, 2018
October 9, 2018
November 11, 16, 18-
20,23, 25, 29,2018

Banana June 30, 2018

July 6, 13, 20, 27,
August 3, 16, 24, 31,
September 10, 20, 24,
October 1, 12, 19, 19,
November 5, 12, 19 and
26, 2018

Camote tops August 31,2018

September 1, 2, 10, 13,
21, 23, 27, 29,2018
October 7, 8, 14, 16,
19, 22,2018

Cooking oil September 4 ,9 ,15 ,22

,26, 29,2018
October 1, 4, 9, 16, 19,
28,2018
November 5,18,2018
Selling of agricultural products
Rice and Banana June 30,2018
July 1-31,2018
August 1-31,2018
September 1-30,2018
October 1-31,2018
 November 1-30,2018

Camote tops August 1-31,2018

September 1-30,2018
October 1-31,2018

Cooking oil September 1-30,2018

October 1-31,2018
November 1-30,2018

PRACTICUM STUDENT ADVISER

FAMILY MEMBER

Figure 1. Organizational structure of the project

B. TECHNICAL ASPECT

Securing of permit. Permit to operate the practicum

project was secured from the Barangay Captain of San

pedro, Puerto Princesa City to legalize the business.

Preparation of the stall. A pre-existing stall owned

by the mother of the practicum students was rented. It

was prepared by repairing and cleaning the stall.

Canvassing of the supplies and prices of the products

to be sold. The supply and prices of rice, tundan,

lakatan, camote tops and cooking were canvassed from the

local suppliers at San Jose market and Barangay San

Pedro, Puerto Princesa City.

Buying of the agricultural products for sale. Rice

was bought at CBY Trading and Mikay Store at Barangay

San Pedro; Bananas and cooking oil were bought at San

Jose Market; and camote tops were gathered at the

project area.

Selling of the agricultural products. Rice, Tundan,

Lakatan, camote tops and cooking oil were sold at retail

basis at Abanico Road, near the Catholic Chapel, San

Pedro, Puerto Princesa City. Figure 2 shows the project

location.
C. MARKETING ASPECT

The agricultural products such as rice, tundan,

lakatan, camote tops, and cooking oil were bought at San

Jose Market and at the stores in the project area. These

products were sold to the residents of Abanico Road, San

Pedro, Puerto Princesa City on retail basis. Figure 3

shows the marketing channel of the agricultural products

at the project area.

San Jose Market

Practicum student Consumers

Stores at
San Pedro

Figure 3. Marketing channel of agricultural products

Table 2 shows the volume of rice, tundan, lakatan,

camote tops and cooking oil bought and sold for five (5)

months (June to November 2018).

Table 2. Volume of rice, tundan, lakatan, camote tops, and

cooking oil bought and sold from June to November
2018
Products/ Quantity Total Cost Total Selling
Month of Goods (P) Sales (P) Profit (P)
Rice
July 20 46,190.00 50,250.00 4,060.00
August 15 38,550.00 41,550.00 3,000.00
September 14.5 36,200.00 39,925.00 3,725.00
October 7 15,350.00 17,200.00 1,850.00
November 1 2,000.00 2,400.00 400.00
2 4,100.00 4,800.00 700.00
Subtotal 59.50 142,390.00 156,125.00 13,735.00
Tundan
July 253 6,325.00 10,120.00 3,795.00
August 169.5 4,237.50 6,780.00 2,542.50
44 1,232.00 1,760.00 528.00
September 205.5 5,137.50 8,220.00 3,082.50
October 243 6,075.00 9,720.00 3,645.00
November 237.5 5,937.50 9,500.00 3,562.50
Subtotal 1152.5 28,944.50 46,100.00 17,155.50
Lakatan
July 25 875.00 1,250.00 375.00
August 45 1,575.00 2,250.00 675.00
13 520.00 650.00 130.00
September 11.35 397.25 567.50 170.25
11 330.00 550.00 220.00
7 280.00 350.00 70.00
October 14.55 552.90 727.50 174.60
Subtotal 126.9 4,530.15 6,345.00 1,814.85
Camote
Tops
August 16 48.00 80.00 32.00
September 111 333.00 555.00 222.00
October 77 231.00 385.00 154.00
Subtotal 204 612.00 1,020.00 408.00
Cooking
Oil
September 110 2,200.00 2,860.00 660.00
October 140 2,800.00 3,640.00 840.00
November 30 600.00 780.00 180.00
Subtotal 280 5,600.00 7,280.00 1,680.00
Grand 1,822.9 182,076.65 216,870.00 34,793.35
Total
Table 2a. Volume of rice bought and sold per operation
Month Quantity Buying Total Cost Selling Total Selling
(Sacks/kg) Price (P) Price Sales Profit
(P) /kg (P) (P)
July
1st
Operation
XQ 6 Sacks 2,200.00 13,200.00 2,400.00 14,400.00 1,200.00
2nd
Operation
SM 3 Sacks 2,180.00 6,540.00 2,400.00 7,200.00 660.00
Premium 5 Sacks 2,350.00 11,750.00 2,550.00 12,750.00 1,000.00
3rd
operation 6 Sacks 2,450.00 14,700.00 2,650.00 15,900.00 1,200.00
Imported
Sub-Total 20 Sacks 46,190.00 50,250.00 4,060.00
August
5th 6 Sacks 2,550.00 15,300.00 2,750.00 16,500.00 1,200.00
Operation
Sinandomeng
6th 6 Sacks 2,550.00 15,300.00 2,750.00 16,500.00 1,200.00
Operation
7th 3 Sacks 2,650.00 7,950.00 2,850.00 8,550.00 600.00
Operation
Sub-Total 15 Sacks 38,550.00 41,550.00 3,000.00
September
9th
Operation
SM 6 Sacks 2,500.00 15,000.00 2,750.00 16,500.00 1,500.00
10th
Operation
XQ 6 Sacks 2,500.00 15,000.00 2,750.00 16,500.00 1,500.00
SM 1.5 Sacks 2,300.00 3,450.00 2,550.00 3,825.00 375.00
Aroma 1 Sack 2,750.00 2,750.00 3,100.00 3,100.00 350.00

Total: 14.5 Sacks 36,200.00 39,925.00 3,725.00

October
13th
Operation
SM 6 Sacks 2,100.00 12,600.00 2,350.00 14,100.00 1,500.00
Aroma 1 Sack 2,750.00 2,750.00 3,100.00 3,100.00 350.00

Total: 7 Sacks 15,350.00 17,200.00 1,850.00

November
17th
operation
Red rose 1 Sack 2,000.00 2,000.00 2,400.00 2,400.00 400.00
15 kg 41.00 615.00 48.00 720.00 105.00
18th 20 kg 41.00 820.00 48.00 960.00 140.00
operation
19th 30 kg 41.00 1,230.00 48.00 1,440.00 210.00
operation
20th 35 kg 41.00 1,435.00 48.00 1,680.00 245.00
operation
Total: 3 sacks 6,100.00 7,200.00 1,100.00
Grand
Total: 59.5 sacks 142,390.00 156,125.00 13,735.00
Table 2b. Volume of banana (tundan and lakatan) bought and sold per operation
Month Quantity Buying Total Cost Selling Total Selling
(Sacks/kg) Price (P) Price Sales Profit
(P) /kg (P) (P)
July
1st
Operation
Tundan 36 25.00 900.00 40.00 1,440.00 540.00
2nd
Operation
Tundan 85 25.00 2,125.00 40.00 3,400.00 1,275.00
Lakatan 19 35.00 665.00 50.00 950.00 285.00
3rd
operation
Tundan 66 25.00 1,650.00 40.00 2,640.00 990.00
Lakatan 6 35.00 50.00
4th
operation
Tundan 66 25.00 1,650.00 40.00 2,640.00 990.00
Total: 278 7,200.00 11,370.00 4,170.00
August
5th
operation
Tundan 60 25.00 1,500.00 40.00 2,400.00 900.00
Lakatan 13 35.00 455.00 50.00 650.00 195.00
6th
operation
Tundan 62 25.00 1,550.00 40.00 2,480.00 930.00
Lakatan 12 35.00 420.00 50.00 600.00 180.00
7th
operation
Tundan 47.5 25.00 1,187.50 40.00 1,900.00 712.50
Lakatan 20 35.00 700.00 50.00 1,000.00 300.00
8th
operation
Tundan 44 25.00 1,232.00 40.00 1,760.00 528.00
Lakatan 13 40.00 520.00 50.00 650.00 130.00

Total: 271.5 7,564.50 11,440.00 3,875.50

September
9th
operation
Tundan 61.2 25.00 1,530.00 40.00 2,448.00 918.00
Lakatan 11.35 397.25 50.00 567.50 170.25
10th 35.00
operation
Tundan 48.3 25.00 1,207.50 40.00 1,932.00 724.50
11th
operation
Tundan 40 25.00 1,000.00 40.00 1,600.00 600.00
Lakatan 11 30.00 330.00 50.00 550.00 220.00
12th
operation
Tundan 56 25.00 1,400.00 40.00 2,240.00 840.00
Lakatan 7 40.00 280.00 50.00 350.00 70.00
Total: 234.85 6,144.75 9,687.50 3,542.75
October
13th
operation
Tundan 64 25.00 1,600.00 40.00 2,560.00 960.00
Lakatan 14.55 38.00 552.90 50.00 727.50 174.60
14th
operation
Tundan 126 25.00 3,150.00 40.00 5,040.00 1,890.00
15th
operation
Tundan 53 25.00 1,325.00 40.00 2,120.00 795.00
Total: 257.55 6,627.9 10,447.5 3,819.6
November
17th
operation
Tundan 59 25.00 1,475.00 40.00 2,360.00 885.00
18th
operation
Tundan 81.5 25.00 2,037.50 40.00 3,260.00 1,222.50
19th
operation
Tundan 36 25.00 900.00 40.00 1,440.00 540.00
20th
operation
Tundan 61 25.00 1,525.00 40.00 2,440.00 915.00
Total: 237.5 5,937.50 9,500.00 3,562.50
Grand
total: 1279.4 33,474.65 52,445 18,970.35
Table 2c. Volume of camote tops bought and sold per operation
Month Bundle Buying Total Cost Selling Total Selling
Price (P) Price Sales Profit
(P) /kg (P) (P)
August
8th 16 3.00 48.00 5.00 80.00 32.00
Operation
September
9th 20 3.00 60.00 5.00 100.00 40.00
Operation
10th 30 3.00 90.00 5.00 150.00 60.00
operation
11th 28 3.00 84.00 5.00 140.00 56.00
operation
12th 33 3.00 99.00 5.00 165.00 66.00
operation
October
13th 27 3.00 81.00 5.00 135.00 54.00
operation
14th 25 3.00 75.00 5.00 125.00 50.00
operation
15th 25 3.00 75.00 5.00 125.00 50.00
operation
Sub-Total 204 612.00 1,020.00 408.00
Table 2d. Volume of cooking oil bought and sold per operation
Month No. of Buying Total Cost Selling Total Selling
bottle Price (P) Price Sales Profit
(P) /kg (P) (P)
September
9th 20 20.00 400.00 26.00 520.00 120.00
Operation
10th 20 20.00 400.00 26.00 520.00 120.00
operation
11th 40 20.00 800.00 26.00 1,040.00 240.00
operation
12th 30 20.00 600.00 26.00 780.00 180.00
operation
October
13th 20 20.00 400.00 26.00 520.00 120.00
operation
14th 40 20.00 800.00 26.00 1,040.00 240.00
operation
15th 40 20.00 800.00 26.00 1,040.00 240.00
operation
16th 40 20.00 800.00 26.00 1,040.00 240.00
operation
November
17th 10 20.00 200.00 26.00 260.00 60.00
operation
18th 20 20.00 400.00 26.00 520.00 120.00
operation
Sub-Total 280 5,600.00 7,280.00 1,680.00
D. ECONOMIC ASPECT

The following tables shows the cost of goods traded

(Table 3), supplies and materials needed in the operation

of the business (Table 4), labor (Table 5), miscellaneous

and other expenses (Table 6).

Table 3. Cost of goods traded.

Item Quantity Unit Price Total Cost
(P) (P)
Rice 59.50 23,731.67 142,390.00
Tundan 1152.5 4,824.08 28,944.50
Lakatan 126.9 647.16 4,530.15
Camote Tops 204 204 612.00
Cooking Oil 280 1,866.67 5,600.00
Total 1,822.9 31,273.58 182,076.65

Table 4. Cost of supplies and materials.

Item Quantity Unit Price Total Cost

(P) (P)
Record book 3 pcs 10.00 30.00
Ballpen 1 pc 8.00 8.00
Scissor 1 pc 20.00 20.00
Marker 1 pc 20.00 20.00
Cellophane
(mini Ultra) 4 packs 17.00 68.00
9 packs 13.00 117.00
3 packs 16.00 48.00
(Tiny J.R) 1 pack 35.00 35.00
1 pack 22.00 22.00
2 packs 23.00 46.00
(medium) 1 pack 45.00 45.00
(Ultra 1 pack 70.00 70.00
medium)
(Large) 2 packs 65.00 130.00
(Extra Large) 1 pack 115.00 115.00
Roll bag 5 roll 16.00 80.00
Roll bag 1 roll 17.00 17.00
Weighing 1 pc 150.00 150.00
Scale
(rental)
Basin 2 pcs 50.00 100.00
 Scoop 1 pack 10.00 10.00
Total 41 722.00 1,131.00

Table 5. Cost of labor.

Item No. of Rate/hr Total Cost
hours (P) (P)
Securing of permit 1 25.00 25.00
Preparation of the 2 25.00 50.00
stall
Buying of supplies 2 25.00 50.00
and materials
Canvassing of 2 25.00 50.00
products
Buying of products 36 25.00 900.00
for sale
Selling of 399 25.00 9,975.00
products
Payment collection 4 25.00 100.00
Total 444 11,100.00

Table 6. Miscellaneous and other expenses.

Particulars Total Amount
(P)
Securing permit 25.00
Transportation 4,030.00
Meals 750.00
Communication 750.00
Stall rental 500.00
Total 6,055.00

The following exhibits show the economic feasibility

of the business on trading agricultural products at Abanico

Road, San Pedro, Puerto Princesa City. It includes the

project working capital (Exhibit 1), income statement of

the project (Exhibit 2), Cash flow statement of the project

(Exhibit 3), Balance sheet (Exhibit 4) and return on

investment (Exhibit 5).

 EXHIBIT I
WORKING CAPITAL
Marketing of Agricultural Products at Abanico Road,
San Pedro, Puerto Princesa City
June to November 2018

ITEMS TOTAL AMOUNT

(P)
Stocks 14,100.00

Supplies and materials 476.00

Labor 812.50

Miscellaneous and other 565.00

expenses

Total 15,953.50
 EXHIBIT II
INCOME STATEMENT
Marketing of Agricultural Products at Abanico Road,
San Pedro, Puerto Princesa City
June to November 2018

ITEMS TOTAL AMOUNT

(P)
Revenue
Sales
Rice 156,125.00
Banana 52,445.00
Camote Tops 1,020.00
Cooking oil 7,280.00
Total 216,870.00
LESS: Expenses
Stocks 182,076.65
Supplies and materials 1,131.00
Labor 11,100.00
Miscellaneous and other 6,055.00
expenses
Total 200,362.65
Net Profit 16,507.35
Retained Earnings
 EXHIBIT III
CASH FLOW STATEMENT
Marketing of Agricultural Products at Abanico Road,
San Pedro, Puerto Princesa City
June to November 2018

Items July August September October November

Cash inflow
Capital 15,953.50
Sales
Rice 50,250.00 41,550.00 39,925.00 17,200.00 7,200.00
Banana 11,370.00 11,440.00 9,687.50 10,447.50 9,500.00
Camote Tops - 80.00 555.00 385.00 -
Cooking oil - - 2,860.00 3,640.00 780.00
Total Cash inflow 77,573.50
Cash Outflow
Stocks 53,390.00 46,162.50 44,877.75 25,008.90 12,637.50
Supplies and
materials 599.00 283.00 155.00 55.00 39.00
Labor 2,762.50 2,387.50 2,562.50 2,612.50 775.00
Miscellaneous and 830.00 600.00 570.00 680.00 3,375.00
other expenses
Total Cash Outflow 57,581.50 49,433.00 48,165.25 28,356.40 16,826.50

Net Cash flow 19,992.00 3,637.00 4,862.25 3,316.10 653.50

Beginning balance - 19,992.00 23,629.00 28,491.25 31,807.35
Ending balance 19,992.00 23,629.00 28,491.25 31,807.35 32,460.85
 EXHIBIT IV
BALANCE SHEET
Marketing of Agricultural Products at Abanico Road,
San Pedro, Puerto Princesa City
June to November 2018

Particulars Total Amount

(P)
ASSETS

Cash on Hand 32,460.85

TOTAL ASSETS 32,460.85

LIABILITY

Equity 15,953.50

Retained Earnings 16,507.35

TOTAL LIABILITY 32,460.85

 EXHIBIT V
RETURN ON INVESTMENT
Marketing of Agricultural Products at Abanico Road,
San Pedro, Puerto Princesa City
June to November 2018

Net Income
ROI = ------------------- x 100
Total expenses

P 16,507.35
ROI = ------------------- x 100
P 15,953.50

ROI = 103.47%
 PROBLEMS ENCOUNTERED AND SOLUTIONS MADE

The following were the problems encountered during the

project operation:

1. There are many competitors in the project area;

2. No storage facility for the stocks of rice and banana;

and

3. Limited capital.

The solutions made were as follows:

1. Ensure that the agricultural products being sold is of

good quality so that consumers will prefer to buy at

my stall;

2. Used part of the stall as storage area for the

agricultural products for sale; and

3. Borrowed money from her family as starting capital for

the project.
 CHAPTER III

SUMMARY, CONCLUSION AND RECOMMENDATION

Summary

A practicum project entitled “Marketing of

Agricultural Products at Abanico Road, San Pedro, Puerto

Princesa City” was conducted from June to November, 2018.

a sole proprietorship of business was adopted in the

project. Agricultural products such as rice, banana

(Tundan and Lakatan), camote tops and cooking oil were

bought in wholesale basis and sold to consumers in the

project area on retail basis.

An initial capital of P 15,953.50 was used to start

the business. The total revenue incurred in the project
amounted to P 216,870.00. The project spent P 200,362.65
to operate the project and it earned P 16,507.35 profit for
five (5) months. The return on investment realized was
103.47% which means that for every peso invested, it will
earn P 1.0347 centavos.

Conclusion

Based on the economic analysis of the business, it can

be concluded that marketing of agricultural products is a

profitable business, especially if more quantity and

variety of agricultural products will be traded.

Recommendation

Since the business is a profitable one, it is

recommended to those interested people as additional income

for the family.