JM FOUR ANGELS FARM Formatted

(AN ORGANIC VEGETABLE MARKETING CASE STUDY)

CASE STUDY
PRESENTED TO THE FACULTY OF
THE DEPARTMENT OF BUSINESS AND MANAGEMENT
COLLEGE OF MANAGEMENT AND ECONOMICS
VISAYAS STATE UNIVERSITY
VISCA, BAYBAY CITY, LEYTE

IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE DEGREE
OF BACHELOR OF SCIENCE IN AGRIBUSINESS

ANDREW BONNEL B. CHAVEZ

MAY 2019
 TRANSMITTAL

The undergraduate case study attached hereto, entitled “JM FOUR

ANGELS-AN ORGANIC VEGETABLE MARKETING CASE STUDY”

prepared by Andrew Bonnel B. Chavez in partial fulfillment of the

requirements for the degree of Bachelor of Science in Agribusiness, is

hereby accepted.

BERT PEÑALOSA, MPA

Adviser

Accepted in partial fulfillment of the requirements for the degree of

Bachelor of Science in Agribusiness.

BERT PENALOSA, MPA

Chairman
Student Research Committee

ANALITA SALABAO
Head
Department of Business Management
 VISAYAS STATE UNIVERSITY
Visca, Baybay City, Leyte

GENERAL EVALUATION OF A CASE STUDY

Title: JM FOUR ANGELS FARM (AN ORGANIC VEGETABLE MARKETING

CASE STUDY)

General Comments of the Adviser and the Head of the Department of

Business and Management.

(Please check the appropriate box and blank)

( ) Case study strongly recommend for publication.

As approved
Needs revision

Needs to be rewritten

( ) Case study strongly may be published

As approved
Needs revision
Needs to be rewritten

( ) Case study should be integrated with related studies

( ) Case study will not recommend for publication because results need further
verification.

BERT PENALOSA, MPA ANALITA SALABAO

Adviser
Department Head
 ACKNOWLEDGEMENT

To Mr. Bert Penalosa, for his unwavering support as my book adviser. It

was an honor to be your advisee sir.

To Mr. Ricardo C. Chavez, Jr. and Mrs. Imelda B. Chavez, my dear

parents, this achievement is for you all. Words are not enough to express how

grateful I am to be your son. Thank you so much for all the support and courage.

I love you very much.

To my brother, Anthon Vench Neil Chavez, and to my Tita Alma D. Malik,

thank you for all your support especially in terms of financial matters. I owe you

a lot.

To my roommates, dormmates, and kitchenmates, who haves diverse

culture but bind with faith and unity, thank you so much for all the support. Yeye,

Jesriel, Mark Jay, Adrian and Ace, you’ve been part of my colorful college life.

To my dormitory advisers, Sir JC De Paz, Sir Jairyl Oclarit, Sir Roger

Roque Bustamante, thank you so much for guiding me in my 4 years stay in the

dormitory. I really appreciate your advices and support which helped me what I

am right now.

To my Bomb squad, Erik, Leelord, Marky, Lezalde, Glen, Marka and ,

Dante, thank you for all the memories we had together. You guys have proven

me that I am a strong person.

To Ben, Paolo, Piolo, Joshua, and Jan, thank you for all the chitchat

moments we had. May God bless you people.

 To Jhelsy, Grace, Joyce, Ester, Lee Divine, Tope, Jeian, Jayboy, and to

all my high school and elementary friends, finally I’ve reached the epitome of

our dreams. Thanks for the shared memories.

To Kenn Davie, Kuya Jason, and Kuya Joel, thank you so much for

motivating me to continue what I’ve started. I’m sorry if I’ve shown you mostly

of my weaknesses. I’m very blessed to have you in my life.

To Rowell James Barbusa, thanks for all the concerns even though we’re

far from each other you’re still there to comfort me. I really appreciate all the

deep talks we had and of course I thank you for sharing with me your talent,

your songs truly helped me to escape from stress.

To CME-SSC Family, working with you as student leaders was the very

most memorable experience I had in my college journey which molded me be

to become a better and wiser leaser. Thank you so much for all the bonds.

To my Youth for Christ family, thank you for being my soul boosters my

dear brothers and sisters. Especially to Tito Eduard and Tita Babec for those

motivational quotes and advices. It helped me a lot.

To SMAP-Hindang Youth Ministry, it was an awesome experience

whenever I’m with you my dear young Christian missionaries. I’m very grateful

to be part of this ministry. Thank you.

To Donna, Angel, Lovely, Carlo, and John Claire, thank you so much for

the bonds and for teaching me how to be resilient. This is what we’re waiting

for the edge of tomorrow. May God continue to bless and guide us in our

different ways. I love you all.

 To Sir Cornelio, Sir Mamerto, and Sir Ricardo, it was a great honor to

work with you sir. Thank you for all your the undying support and love you’ve

shown to us during our OJT in Benguet. Thank you, Ssir!

To Mangeg Family, Tatay Jose and Nanay Marie, thank you for all the

love that you’veand for treatinged us as your sons and daughters. We love you

so much.

To my beloved Visayas State University, you know all my struggles, pain,

happiness, and sleepless nights. Thank you so much for molding me to be the

best version of myself. You’ve witnessed my evolution. I promise to go beyond

my borders as I put my aim to my dreams. I will not fail you.

To our Almighty God, for his guidance, enlightenment, and for the divine

assistance in making this study a success. Truly your grace is sufficient!

 DEDICATION

I heartily dedicate this piece of work to:

The ALMIGHTY GOD

MY PARENTS
Mr. Ricardo C. Chavez, Jr.

Mrs. Imelda B. Chavez

MY BROTHERS
Jovie Belegorio

Anthon Vench Neil B. Chavez

Adrian Van B. Chavez

AND
TO ALL OF MY FRIENDS AND RELATIVES

With love,
ANDREW BONNEL CHAVEZ
 TABLE OF CONTENTS

TITLE PAGE
TITLE PAGE

TRANSMITTAL

GENERAL EVALUATION OF A CASE STUDY

ACKNOWLEDGEMENT

DEDICATION

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

LIST OF APPENDICES

EXECUTIVE SUMMARY

INTRODUCTION

Objectives of the Study

Significance of the study
Scope and Limitation of the Study
METHODOLOGY
Data Gathered
Data Presentation and Analysis
THE FARM
ORGANIZATION AND MANAGEMENT
PRODUCTION
MARKETING
FNANCING
SWOT ANALYSIS
CASE ANALYSIS
Point of View
Relevant Case Facts
Generating and Classifying Problem Areas
Problem Identification and Selection
 Problem Analysis
Categorizing the Possible Causes
Alternative Courses of Action
Recommendation/ Implementation
REFERENCES
APPENDICES
 LIST OF TABLES

TABLE TITLE PAGE

1 Personnel Profile of JM Four Angels

2 Production Process Flow of the JM Four Angels

3 Product Description of JM Four Angels

4 Price schedule, JM Four Angels

5 Vertical Analysis of Comparative Income

Statement of 2017-2018

6 SWOT Matrix of JM Four Angels

7 Price Schedule, JM Four Angels

 LIST OF FIGURES
FIGURE TITLE PAGE
1 JM Four Angels- Farm Location Map Formatted: Left

2 Organizational Chart of JM Four Angels Formatted: Left

3 JM Four Angels Products Formatted: Left

4 Marketing Distribution of Spinach Formatted: Left

5 Marketing Distribution of Broccoli Formatted: Left

6 Marketing Distribution of Romaine Lettuce Formatted: Left

7 Marketing channel of JM Four Angels Formatted: Left

8 Product label of JM Four Angels Formatted: Left

 LIST OF APPENDICES
APPENDIX TITLE PAGE

A Industry notes

B Definition of Terms

C Memorandum of Understanding

D Daily Time Record

E Certificate of Completion

F Photo Documentation
 EXECUTIVE SUMMARY

CHAVEZ, ANDREW BONNEL B.: Visayas State University, Visca, Baybay

City, Leyte, May 2019. JM FOUR ANGELS FARM: AN ORGANIC
VEGETABLE MARKETING CASE STUDY
Major Adviser: Bert Penalosa

A field practice was conducted at JM Four Angels at Sitio Mankaet,

Brgy. Buyacaoan, Buguias, Benguet from February 2, 2019 to March 25, 2019

to assesassess the overall operation and management of the farm, with

particular emphasis oin the marketing aspect.

Primary data were obtained through personal interviews with the owner

and other farm workers. Actual participation and observation in the daily

routines in the farm also helped in collecting the necessary data. On the

other hand, secondary data were taken from the firm’s records and files.

Some information were taken from internet search, journals or books from

the main library of Visayas State University.

JM Four Angels Farm was established by its founder Mr. Jose

M. Mangeg located in Bayoyo, Buyacaoan, Buguias, Benguet Province. The

farm was established to utilize their land area and to generate income from it.

The farm is a single proprietorship type of business. They started operating

the farm in 1995 with a capital of Php 50,000. By that time, inorganic practices

were applied by the farm. .Having a wife and four daughters, the owner

decided to name the farm as JM Four Angels. They believed that with the

guidance of the angels, they will be honest in producing pesticide- free

vegetables for food safety and security.

 During In the case study, it was discovered that the farm was facing

faced a problem in pricing of its products in order to gain bigger higher profit.

The major cause of the problem was the lacking of seminars attended. It was

recommended that the farm must implement its pricing method applied in

pricing its products to be able to increase its profit.

 INTRODUCTION

Organic farming is a production management system excluding that

excludes of all ssynthetic off-farm inputs but and rely upon on-farm

agronomic, biological and mechanical methods like crop rotations, crop

residues, animal manures, off-farm organic waste, mineral grade rock

additives and biological system of nutrient mobilization and plant protection,

etc. which promotes and enhances biodiversity, biological cycles and agro-

ecosystem health Organic farming is a method of crop and livestock

production that involves much more than choosing not to use pesticides,

fertilizers, genetically modified organisms, antibiotics and growth

hormones. Its production is a holistic system designed to optimize the

productivity and fitness of diverse communities within the agro-ecosystem,

including soil organisms, plants, livestock and people. The principal goal of

organic production is to develop enterprises that are sustainable and

harmonious with the environment. (Hugh MartinReference)..

In a country like Philippines, most vegetables are produced from an open

field cultivation. But, in the recent years, the issues on food safety and quality

paved the way to alternative technology such as protected vegetable

cultivation. The biggest producer of vegetables in the country is the Cordillera

Administrative Region (CAR). One of the organic producerproducers of

vegetables in the region is the JM Four Angels located in Buguias, Benguet

with the a total land area of 2,500 m2square meters. The farm was able to
utilize their idle land area for crop production. With the farm’s major crops like

romaine lettuce, spinach, and broccoli, they were able to gain enough profit.

The author choose JM Four Angels to learn more about practical

knowledge and skills in operating an organic farm. In addition, to that, other

reason is the author wanted to enhance and acquire more knowledge on

organic farming practices and to be able to compare the differences between

organic and conventional farming.

Objectives of the Study

Generally, the case study aimed to observe and assess the general

operations and management practices at JM Four Angels Farm. .

Specifically, the study aimed to: Formatted: Indent: First line: 0.5"

1. Perform management-related activities in an agribusiness firm;.

2. Compare the activities with the practices in the industry;.

3. Identify and evaluate problems; and

4. Generate optimum alternatives or strategies that will resolve these

problems.

Significance of the Study

The case study enhanced the author’s basic managerial skills through

the actual operations onf organic farming. Working knowledge on the core

functions of management namely: production, marketing, organization and

management, and finance will bewere acquired and these will supplemented

and complemented the knowledge learned from the class.

Scope and Limitations

The case study focused primarily on the marketing of organic vegetables

produced by the JM Four Angels Farm. Field data were gathered from

production, finance, and management operations of the farm.

2
 METHODOLOGY

Data Gathered

The data gathered came from both primary and secondary datasources.

Primary data were obtained through personal interviews with the owner and

other workers. Actual participation and observation in the daily routines in the

farm also helped in collecting the necessary data. On the other hand,

secondary data were taken from the firm’s records and files. Some information

were taken from internet search, journals or books from the main library of

Visayas State University.

Data Presentation and Analysis

The data gathered from the case study were presented in tables, figures

and graphs. Qualitative descriptive method was used to present the

production, organization and management, and marketing aspect of the firm.

Horizontal and vertical analysis and financial ratios was also used to asses

and evaluate and the financial situation of the firm.

On the other hand, SWOT Analysis was used to assesassess the

internal and external conditions of the firm that are relevant to the study. Case

analysis was also used to in identifying the main problem and in recommending

the best alternatives courses of action..

 Formatted: Centered

THE FARM

JM Four Angels Farm was established by its founder Mr. Jose M.

Mangeg located in Bayoyo, Buyacaoan, Buguias, Benguet Province. The farm

was established to utilize their idle land area and to generate income from it.

The farm is a single proprietorship type of business. They started operating

thetheir farm operations in 1995 with a capital of Php 50,000. By that time,

inorganic practices were applied by the farm. .Having a wife and four

daughters, the owner decided to name the farm as JM Four Angels. They

believed that with the guidance of the angels they will be honest in producing

pesticide- free vegetables for food safety and security.

In 2012, the farm owner was encourageencouraged to practice

apply organic farming practices primarily due to health-related

consciousnessreasons. When they’re still practicing conventional farming,

although of minimal limit of application, family membersthey oftentimes feel

headache and nose bleeding when spraying synthetic fertilizers, pesticides,

insecticides, and herbicides during high temperatures. After theseis

ununforeseenwanted happenings, Mrs. Marie M. Mangeg, the wife of Kuya

Jose requested to shift and produce chemical-free vegetables to avoid its

negative effects. Their fFamily members chose to eat safe vegetables for

happiery and longer life. Family members bThe person believed that producing

organic vegetables assures the consumers with optimum safetysafe food

consumption.
 In the year 2016, the farm was officially registered in the

Department of Trade and Industry (DTI) giving the permit to operate the

business operations legally. At present, the farm was given a GAPGAP

certification from the Department of Agriculture showing that the farm is

practicing good agriculture practices.

On the other handAdditionally, the farm wasis also certified by the Organic Formatted: Left, Indent: First line: 0"

Certification Center of the Philippines (OCCP), a third party certification and

inspection body that gives certification to farms who practicesd organic

farming.

Farm Location and Layout

The JM Four Angels Farm was situated at Sitio Mankaet, Bayoyo,

Buyacaoan, Buguias, Benguet Province. The Municipality of Buguias was 82

kilometers km away from La Trinidad, Benguet. The town was is a 3rd class

municipality wherein several establishments were are built. The farm’s location

was 2 kilometers km away from the town proper. On its north is the town proper

where the town hall, public market, and even commercial stores were are

established. The Abatan Van Terminal, located in the Buguias Public Market

serves as the gateway of the farm products to its buyers in other places like La

Trinidad and Cubao. On its northwest resides the Loo National High sSchool

and Benguet State University-Buguias Campus. The road to the farm was

accessible to any forms of land transportation. Public utility vehicles (PUV) and

tricycles were the main utility vehicles which are accessible anywhere from

Brgy. Abatan, Buguias (town proper) going to Sitio Mankaet, Bayoyo,

Buyacaoan, Buguias. The JM Four Angels Farm Location map is showed in

Figure 1.

Formatted: Font: Bold

Formatted: Left

5
 Figure 1. JM Four Angels Farm Location Map

The total area occupied by JM Four Angels was 2,500 square metersm2: Formatted: Superscript

1,000 square metersm2 for residential purposes and approximately 1,500 Formatted: Superscript

square metersm2 was allotted for agricultural production. Different areas of Formatted: Superscript

common farms like nursery, garden plots, storage area, composting area,

packing area, washing area, and the likes were present in the farm. There’s

also tThe owner’s house is also near the farm where the family of the owner

was living.he lives together with his family.

Formatted: Left

6
Formatted: Centered
 ORGANIZATION AND MANAGEMENT

The farm business was a single proprietorship. It was a family farm

business designating the farm owner as the a farm manager, the wife and the

daughters as marketing officers and, bookkeepers. During critical activities in

the farm, the business and hiringhires a job order and farm helpers on a job

order basisduring critical activities in the farm. The first-born daughter would

help the owner in bookkeeping and for any kind of all business transactions and

as well as paper works of therelated to the farm. However, only the farm owner

who does the all the work since the wife and the daughters were living at in the

next municipality which is that was 86 kilometers km away from the farm or 4

hr travel time. with four (4) hours of ride away from the farm and hHiring of job

orders during the farm’s critical activities would not be enough for the

improvement of the production of the farm. The owner was also responsible for

all the operation and management of the farm. It would be ofa help if the owner
would decide to hire workers., Aa simple organizational structure was

recommended, as shown in the Figure 2.

Figure 2. Organizational Chart of JM Four Angels

 Formatted: Left, Indent: First line: 0", Line spacing:
Multiple 1.08 li
Presented in Table 1 are the stated duties and responsibilities of the farm
Formatted: Font: 11 pt

employees of the enterprise. The owner who occupied the highest position Formatted: Indent: First line: 0"

provided leadership for the team and developed strategic plans to widen the

market of its products. The bookkeeper is also responsible for encoding

expenses, sales, filing financial documents and drafting financial reports. The

nursery assistants were assigned to assist facilitate the production activities like

land and seedling preparation,, seedling preparation, planting of seedlings and

the likes. In the lowest hierarchy of the organizational chart are the job orders

who who will beare hired only when the firm needs extra workforce -labor for

construction and repair of the greenhouses. Their duties and responsibilities

were equal to the position they occupied as reflected in the organizational

structure of JM Four Angels as they briefly discussed in Table 1.

The farm was a family business wherein the family members were

designated as workers of the farm. Hence, there’s no record of monthly salary,

and of benefits or incentives.

8
Table 1. Personnel Profile of JM Four Angels

POSITION EDUCATIONAL LENGTH OF RESPONSIBILITIES Formatted: Centered

ATTAINMENT SERVICE

Farm owner High school 24 years  Managesd Formatted: Left

Graduate the selected Formatted: Left
overall
production
area
 Procurement
of raw
materials
 Deliversed
products
outside and
inside the
farm
 Maintains
Bookkeeper College Graduate 5 years sanitation in
the work area
 Also aAssists
in production
 Filed theFiles
Nursery financial
assistant documents
 Assists ined
the land and
seedling
preparation,
seedling
preparation,
Farm worker maintenance,
and
harvesting
 Assists ined
the land and
seedling
preparation,
seedling
preparation,
maintenance,
and
harvesting
 Also hHelps
in
reconstructing
rehabilitating

9
 damaged
greenhouses
during
typhoons
Source: JM Four Angels Farm

10
10
 PRODUCTION

JM Four Angels Farm mainly produced leafy vegetables. The

company’s major products were romaine lettuce, spinach, and broccoli. All of

these vegetables were organically- grown. They used organic compost that

came from wild sunflower, grasses, pre-decomposed chicken dung, and

carbonized rice hull that help provide the essential nutrients for plant growth.

On the other handAdditionally, the farmy’ve produced concoctions which are

applied as as an organic fertilizers tofor the plants. These homemade fertilizers

sustained the needed micro and macro nutrients of the plants. The presence of

both organic compost and concoctions really significantly helped in restoring

the health of the soil.

The farm sourced the rest of the raw materials like carbonized rice hull

and chicken manure from La Trinidad, Benguet and Cervantes, Ilocos Sur. Most

of the seeds used were purchased in nearby farm supply stores while some of

themit were given in form of assistance from the office of the Department of

Agriculture.

The steps activities in producing above-mentioned organic vegetables is

like romaine lettuce, broccoli, and spinach is presented in Table 2. It involves

the different farm activities operations from the compost making, to the

preparation of land, seedling preparationland and seedling preparation,

planting of seedlings to the plot, pot maintenance, down to the harvesting and

delivery of farm products. All of those mentioned farm activities were performed

solely by the production manager if the production assistants are not available

to carry out farm operations. .

11
11
Table 2. Production Process Flow of JM Four Angels
.

Number of
Activities Description Duration Personnel Formatted: Centered
Involved Formatted Table
Compost Mixing of raw materials 3 hourshr 1
Fertilizer Making such as wild sunflower
or grasses, rice hull,
carbonized rice hull,
and chicken dung in
the composting area
and can only use the
matured compost after
3 monthsmo.
Nursery/Seeding Production of 1 hourhr 1
Production seedlings by sowing
seeds and propagate
for a couple of
weeksSeedling
production was where
the seeds were
propagated and grown
in the nursery to
germinate for the
required days before
transplanting in the
seedbeds.
Land Preparation Cultivating thee soil in 2 hourhr 1
the plant boxes
measuring 1 m x 6 m
meters using grab hoe.
Applying of 50 kg of
compost, mixed with
the soil.
Mulching Putting of coconut husk 10 1
on the prepared minsmin.
seedbed.
Seed Sowing Sowing of seeds in the 30 mins. 1
seedbed with a min
composition of using
compost, coco dust
and garden soil.
Transplanting Transplanting of 30 mins. 1
seedlings from nursery min
to the field

12
Cultural control Cultural control
Management management is a
Practices practices are set of
care and maintenance
activities of modifying
the growing
environment towhich
includes reducinge the 2 hourshr 1
growthing and
presence of unwanted
1hour1 hr 1
weeds and pests. The
 Watering
farmSpecifically, these
are: include of
watering of plants, 1 hour hr 1
weeding, and pest
 Weeding control.ling.

Watering of plants
using watering cans or
 Pest hose with every 2 days
Control interval.
Manual weeding (hand
weeding) and using
sickle or grab hoe to
remove weeds.
Hand picking of visible
insects in the leaves of
the plant. Also spraying
‘mokusako ’ and farm-
made concoctions if
needed.
Harvesting Harvesting of lettuce 3 hourshr 1
by cutting using of
clean stainless knife. to
cut.
Postharvest Post-harvest 3 hourshr
management management practices
Practices is a practice involvesd
all activities performed
to the kinds of
treatments for all
commodities
commodity after
harvesting. It involvesd
washing, sorting,
weighing and
packaging of harvested
commoditiescrops.

13
 Source: JM Four Angels

The JM Four Angels do not have any quality controller but all workers

were trained on how to inspect and do the process of quality control. On the

other handAdditionally, the farm also practiced sanitation and proper waste

management as required by the certifying body like which is OCCP.

14
 MARKETING

Marketing is the business process of promoting and selling products as

well as services and creating relationships with andby providing costumer’s

satisfaction. The farm’s major crops were romaine lettuce, broccoli, and

spinach. Most buyers of the enterprise farm were restaurants, health-hy

conscious people, and vegetable stalls who were selling organic vegetables in

the market. The demand of these organic vegetables varyvaries sometimes due

to crop’ seasonality.

JM Four Angels marketed its products locally and sold them in retail and

accepted deliveries. The main market place were in Cubao and La Trinidad,

Benguet. Marketed products were packed neatly and assured of freshness

before transporting them to maintain its best quality.

Product

JM Four Angels produced healthy and chemical-ly free organic leafy

vegetables namely: romaine lettuce, broccoli, and spinach which were

delivered to restaurants, health-y conscious people, and vegetable stalls.

Romaine lettuce and spinach were sold green in color and broccoli were sold

green or light green in color depending on its variety. The farm made sure that

the products produced were fresh and clean by placing them in medium sizes

of labeled transparent cellophane made from virgin materials wherein it cannot

compromise the integrity of the product or ingredient placed in those containers.

These organic vegetables were packed with specific weights for each

commodity: 250 g for romaine lettuce, 250 g for spinach, and 350 g for broccoli.

In the label, some essential information were placed like the logo and address

15
of the farm, contact number of the farm owner, name of the commodity, weight,

price, and the lot number where the commodity was harvested.

A C

B D
Figure 3. JM Four Angels Products: (A and B) Broccoli),
(C) Romaine Lettuce, and (D) Spinach

Table 3. Product Description of JM Four Angels

Maturity
Commodity (Days After Length Characteristic Formatted: Line spacing: single
Sowing – DAS) Formatted Table
Romaine 35 days after 10 to -12 cm Tender with
Formatted: Line spacing: single
Lettuce sowingDAS loose bunch of
green leaves Formatted: Justified
Broccoli 1
55-75 days after 2 fteet The head are firm Formatted: Centered
2
sowingDAS and tight and the
yellow petals can
be seen.
Spinach 40-52 days after 35 to -50 cm A rosette formed Formatted: Centered
sowingDAS dark green

16
 leaves that can
be flat or crinkled.

Price
JM Four Angels adopted the cost basedcost-based pricing strategy

which was sas set by the farm owner. It and was also based on the standard

set by the certifying body, OCCP.

The farm priced the product quite expensively since it was organically

produced (Table 3). Selling price for the packed 250 g romaine lettuce and

spinach is Php 25.00 and Php 100.00 per kilo. Broccoli was priced at Php 35.00

per 250 g and Php 140.00 per kilo. Payment for of the advance orders were in

form of bank fund transfer for distant market like in Cubao and cash on delivery

(COD) for nearby markets like in Buguias, La Trinidad, and Baguio, City. If the

buyer wasn’t able to pay the delivery expenses, the farm owner still givegives

extension of 7 days to pay their accounts payable.

Table 4. Price Schedule, JM Four Angels, 2019

PRODUCT GRAMSWEIGHT (g) SELLING PRICE (Php)

Romaine Lettuce 250 25.00 Formatted: Left, Indent: Left: 0.38"
Spinach 250 25.00 Formatted: Indent: First line: 0.52"
Broccoli 250 35.00

Place of Distribution

The farm’s major products were sold in different nearby stores and

restaurants in places like Buguias, Benguet, Baguio City, La Trinidad, Benguet,

and Cubao. ForIn spinach, around 177.5 kilograms kg was harvested from the

farm. About 41.1% of the harvest or 73 kg were delivered in Buguias, 32% of

17
 3 1
the harvest or 56 4 kg were delivered to La Trinidad, 23.4% or 412 kg of the

harvest were delivered to Cubao in Quezon City and the 6.25 kg of the total

harvest was delivered to Baguio, City. The allocation distribution of the spinach

harvests is shown in Figure 4.

Distribution of Spinach Harvests

4%
23%
41.10%

32%

Buguias, Benguet La Trinidad, Benguet Cubao Baguio, City

Figure 4. Marketing Place of Distribution of Spinach Harvests

On the other handMeanwhile, broccoli is also demanded in by its buyers.

In the total harvest of 218.75 kg, majority of it (139 kg or (63.54%) of the total

Distribution of Brocolli Harvests

5.03% 5.03%

26.40%

63.54%

Buguias, Benguet Baguio,City Cubao La Trinidad, Benguet

18
harvest were delivered in Cubao, 57.75 kg (26.45%) were in La Trinidad, 11 kg

(5.03%) were in Buguias and another 11 kg (5.03%) were in Baguio City. The

allocation distribution of the broccoli harvests is shown in Figure 5.

Figure 5. Marketing Distribution of BroccoliPlace of Distribution of Spinach Harvests

In 2018, the farm harvested a total of 423 kg of organic romaine lettuce.

The biggest appropriation proportion was (312 kg or (73.75%) was delivered to

Cubao, 67.5 kg or 16% of the harvest was delivered in La Trinidad, 36 kg (8.5%)

in Buguias, and 7.5 kg (1.8%) in Baguio City. The allocation distribution of the

romaine lettuce harvests is shown in Figure 6.

Distribution of Romaine Lettuce Harvests

73.75%

1.2%

8.50%

16%

Cubao Buguias, Benguet La Trinidad Baguio, City

Figure 6. Marketing Place of Distribution of Romaine Lettuce Harvests

The delivery of their products was scheduled every Thursday to different

stores. It shows that the organic vegetables were properly distributed. The

distribution marketing channels of distribution of organic vegetables isare

shown in Figure 7.

19
 Cubao
23.4%

Buguias
Spinach
41.1%

La
Baguio Trinidad
City 32%
3.5%

Cubao
73.75
%
JM La
FOUR Romaine Trinidad
ANGELS Lettuce 16%
FARM
Baguio,
City
1.8%

Buguias
8.5%
Baguio
City
5.03%

Cubao
Broccoli
63.54
%

La
Trinidad
20 26.4%
Buguias
5.03%
 Figure 7. Marketing Distribution Channels of JM Four Formatted: Centered
Angels Farm AngelsAngels
Promotion

Promotion was is a marketing the processaspect where the products

were are introduced to the possible markets or consumers. The farms’’s major

products were promoted through word of mouth by friends, friends of friends

and visitors inof the farm. They The farm also hasve tarpaulin posters which

were posted inside farm area and they used the product labels as a promotional

tools. A sample The promotional tools of the enterprise farm were is shown in

Figure 8.

21
Figure 8. Tarpaulin poster of JM Four Angels as used as Promotional Tool

22
 FINANCING

Establishment of JM Four Angels Farm started its in organic farming

operations was started onin the year 2013 with an estimated starting capital of

seven hundred fifty thousand (PhP 750,000) sourcedcoming from the personal

savings of the owner. Bulk of Tthe capital was used mainly for in the

establishment of greenhouses and receiving or packing houses. while

iInvestment for in farm inputs and equipment were was minimal.

Comparative income statements showed that the farm’s gross income

was higher during the year 2018 relative to the previous year, 2017. This was

interestingly found out even if the total expenses during 2018 was

higherRevenue and income for the year 2018 was higher compared to 2017

even though the total expenses for the year 2018 were higher than in 2017.

Financial Operating status performance of the farm was further evaluated by

through analysing its financial statement using verticavertical analysis of its

financial statements..

Vertical Analysis

Vertical analysis reportsed each line item of a financial statement as a

representation of the percentage of the statement's farm’s main focus, which is

the gross sales. Table 5 shows the comparative income statements from the

year 2017 to 2018.

23
¶

24
 Formatted ...
Formatted ...
Formatted Table ...
Formatted ...
Table 5. Vertical Analysis of Comparative Income Statement of 2017-2018 Formatted ...
Percen Formatted ...
Perce
tage Formatted ...
ntage
(%)% Formatted
AccountsItems 2017 (% of 2018 ...
of
Gross Formatted ...
Gross
Sales) Formatted
Sales ...
Romaine 15,650 6.02 32,700 9.06 Formatted ...
Lettuce Formatted ...
Broccoli 13,450 5.17 26,400 7.32
Formatted ...
Spinach 7,875 3.03 20,990 5.82
Cucumber 13,150 5.06 17,600 4.88 Formatted ...
Pechay 4,875 1.88 5,324 1.48 Formatted ...
Cauliflower --- --- 3,740 1.04 Formatted ...
Passion Fruit --- --- 3,060 0.85 Formatted ...
Kale 3,500 1.35 986 0.27
Formatted ...
Pole Beans 1,500 0.58 --- ---
Total Sales 60,000 110, 800.00 Formatted ...
Other income 200,000 76.92 250, 000.00 69.29 Formatted ...
Gross Income 260,000 100 360, 800.00 100 Formatted ...
Less Expenses
Formatted ...
Labor 30,000 11.53 72, 000.00 19.96
Formatted ...
Seeds/Seedlings 9,000 3.46 12, 700.00 3.52
Fertilizer 13,000 5 18, 560.00 5.14 Formatted ...
Depreciation 7,100 2.73 6, 400.00 1.77 Formatted ...
expense-tools & Formatted ...
equipment
Formatted ...
Depreciation 49,000 18.85 49, 100.0 13.61
expense- Formatted ...
structure Formatted ...
Total Expense 125,000 41.57 166, 760.00 44 Formatted ...
Net Profit 134,000 58.43 194, 040.00 56
Formatted ...
Source: JM Four Angels Farm Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
25
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
 SWOT ANALYSIS

SWOT analysis is a management tool used to identify strengths and

weaknesses of the farm as well as the opportunities and threats surrounding it.

It is a planning tool needed to plan out strategies to improve its future

operations. Table 56 shows the SWOT matrix that summarized the farm’s

strengths, weaknesses, opportunities, and threats.

Strength

One of the company’s farm’s strengths is its strategic location. The

climatic condition Favorable climatic conditionis favorable for the vegetables

grown in the area (romaine lettuce, spinach and broccoli) which are the farm’s

major produce. These vegetables are housed in protected structures called

greenhouses like the farm’s major products such as romaine lettuce, spinach,

and broccoli which were housed in a protected structures called greenhouses

and . These vegetables are organically- grown taking into consideration the

health of the farmers and its consumers. The farm has lesser production costs

because they provide produce their own compost and concoctions as organic

fertilizers. In the past years, the firm farm was certified by the Organic

Certification Center of the Philippines (OCCP) and Good Agriculture Practice

(GAP). These two certifying bodydies guarantees that the production system is

inspected and conforms to the requirements of the Philippine oOrganic

26
Aagriculture Sstandards. Alongside with the above- mentioned strengths is the

company’s farm’s strong relationship with their peoplethe people they serve,

especially in their buyers because as they practiceds open and direct

communication.

Weakness

JM Four Angels also had weaknesses that somehow hindered their

operation. One of it is that, they company lack farmed workers. Since the

enterprise was a family business, most workers are members of the family and

majority of them were residingcurrently situating in La Trinidad which is far from

the farm location. This situation leavesLeaving the production manager as the

sole worker who performsed all the farm management operations. Organic

farming can help lessen the production costs but the practices that should

bewere applied were laborious and it really consumes so much time, most

especially if there’s only one workerperson to perform all the farm operations.

Aside from that, it is laborious, the farm is also far from its major market, which

require them to incur transportation costs to deliver their produce. This is an

added cost to farm operations.

and they still need to pay for a van to transport their products which added up

to their cost.

Opportunities

Consumer nowadays are more on to healthy lifestyle and healthy food

which is anare great opportunitiesy for the company farm since it is as they are

producing organically -grown vegetables. They haveThe farm also has the the

opportunity to expand their market since people in the lowlands were not

27
growing organic vegetables like romaine lettuce, spinach, and broccoliwhat the

farm produces. During natural calamities like typhoons, the demand of the

company’sfarm’s product would increase since their vegetables were placed

grown in greenhouses. It can be inferred that during such conditions, supply of

vegetables is lesser and some are damaged, commanding higher prices than

that of JM Farm’s produce. This is an opportunity of the farm to cater those

consumers that switched in their choices.

and most vegetables by that time were damaged and it can be sold at higher

prices than of the farms produced resulting to switching of choices by the

consumers.

Threats

One of the major threats identified in the company is the stiff competition

with the conventional farm produce. Some farmers in Buguias, Benguet often

deserted into conventional farming for it is easier and faster unlike organic

farming which is slow, slightly complicated, and more laborious. Since the

major markets of the farm were in long distancequite farther, delivery costs

have to be incurred to transport their produce through vanthey still need to pay

a van to deliver their produced. Additionally, Ddue to increasing national

inflation rate of oil products, transportation costs greatly added to the farm’s

operating expenses.was also considered since it will be increasing through

time.

Table 6. SWOT Matrix of JM Four Angels

STRENGTHS WEAKNESSES Formatted Table

 Lower production cost  More Llaborious

28
 Healthier for consumers  Lack of farm workers

 Favorable agro-climatic  Accessibility

condition for vegetabless  Strategically-located farm

 Accredited by prominent area location

certifying bodies (OCCP and

GAP Certified

 GAP Certified)

 Farm practiced oOpen

communication practiced in

the farm

 Has greenhousesPresence of

protected structure for

vegetables (greenhouse)

OPPORTUNITIES THREATS

 Higher demand in the market  Transportation

than conventional produce  Increasing inflation rate Formatted: Left

 Increasing number of health- through time

conscious people  Stiff competition in the trading

 Expansion of market for post Formatted: Left

potential buyers

29
 CASE ANALYSIS
Point of View

Mr. Jose M. Mangeg, owner and production manager of JM Four Angels

Farm, was responsible in making critical decisions which affecting the overall

performance of the enterprise. This problem analysis was done using his point

of view.

Relevant Case Facts

The JM Four Angels was known as one of the producers of organic

vegetables in the Cordillera Administrative Region (CAR). It is specifically

situated at Sitio Bayoyo, Buguias, Benguet. In 1995, the farm was established

by the married couple named Mr. Jose Mangeg and Mrs. Marie M. Mangeg. To

utilize their idle land, they came up with the idea of pursuing conventional

farming. HoweverHowever, in 2012, the farm switched to organic farming

practices where lesser capital was needed for the inputs.

As observed by the author, the farm wasis active in attending trainings

and seminars conducted by the Department of Agriculture (DA) that exposesd

the attendee to most organic agriculture practices. For years, the farm has been

applying organic compost and concoctions as organic fertilizers to sustain the

needed nutrients of both soils and plants. The farm is also practicingalso

practiced the washing of seeds before planting to remove the chemicals

appliedtreated. There were a numbers of methods they’ve applied in growing

organic vegetables organically. However, the farm has problems mostly in

theirmainly in marketing aspect with respect especially in theto pricing of their

products. Considering the absence of their own hauling facilities to transport

their produce and the farm to market distance, product pricing needs to be

30
adjusted. vehicle to transport its products and the distance of its market from

the farm, it calls the need to adjust its pricing. In fact,As practiced, the farm’s

was basing its pricing strategy was based fromin the standards given by the

OCCP, an organic agriculture certifying body of organic farming. Unfortunately,

the farm owner still had to hire and pay a van to deliver its products to La

Trinidad, Benguet where its bigger market was located. This transportation cost

greatly reduced the farm’s operating profit. and the transportation costs just

deducted the profit from the total sales.

Generating and Classifying Problem Areas

A problem can occur in any business operation. A business problem is

defined as anything that caused deviation from the standards between what

happened and how things happened. Below are the problems identified:

1. Poor pricing method appliedLack of price flexibility

Since most of the farm’s market are located far away from the

farm, the owner still needs to hire and pay for a vehicle to carry transport

its products to its buyers. Hence, there’s a need to increase the price to

cater cover the transportation cost expenses and to generate bigger

higher profit.

Table 7. Price Schedule, JM Four Angels

Name of SizeWeight Farm Selling Market Price

commodity (kg) Price (Php)
(Php)
Romaine lettuce 1kg 100.00 150.00

Broccoli 1kg 100.00 200.00

Spinach 1kg 100.00 180.00

31
32
2. Need to improve the pPackaging materials need improvement

Marketing of farm products is very essential in every farm to

satisfy the needs of its market. The label of a product is also a sort ofan

important promotional tool. However, the farm needs to improve or

resize its product label in order to be more attractive to customers. The

label used by the farm is shown in Figure 8.

Figure 98. Product label of JM Four Angels

there’s a need to improve and resize the product label to be more

attractive and very informative to our consumers. As shown in Figure 7,

is the label used by the farm.

3. Need to improveStrengthen market linkages

It is very essential for every enterprisesenterprise to have a better

market linkages. Stable market can guarantee the enterprise more

stable demand and attract more consumers. However,In the case of JM

33
Four Angels farm, linkages should be strengthened the farm should

focus on in strengthening its linkages so that they can find bigger and

more stable market.

34
Problem Identification

Problem identification was is the process of recognizing the factors that

affects ed the general function of the farm prior to generating the appropriate

solutions. The three identified problems encountered by the farm which were

prioritized and selected based on their degree of importance and likelihood of

success. with the use of aA number scale of 1 to 3 was used, with 1 as the

highest and 3 as the lowest. Table 11 shows the criteria for prioritizing the

problem.

Table 11. Criteria for prioritizing the problem identified

Problem Degree of Likelihood of Priority Formatted: Centered

Importance Success
Poor pricing H H 1 Formatted: Left
methodLack of price Formatted: Centered
flexibility

Improve product L M 3 Formatted: Left

packagingPackaging Formatted: Centered
materials need
improvement
Need to M H 2 Formatted: Left
improveStrengthen Formatted: Centered
market linkages

Formatted: Line spacing: single

Legend:
H-High degree of importance and likelihood of success
M-Medium degree of importance and likelihood of success
L-Low degree of importance and likelihood of success.

35
36
Problem Analysis

It was observed that the enterprise’s main problem was its lack of price

flexibility. The JM Four Angels based its product pricing strategy from standards

set by was basing its pricing of its products as set by a certifying body to organic

farming named OCCP. The prices of its products is were constant no matter

what season it would bethey are produced. On the other hand, the prices of the

conventionally- grown vegetables is are more flexible depending relative toon

theirits seasonality. and These sometimes it can be sometimeswere more

expensive to thethan organically- grown vegetables.

Table 7. Price schedule of Organic and Inorganic vegetables_. _____

Name of Formatted: Line spacing: single

Price when Organic Price when Inorganic
commodityVegetables Formatted Table
(Php per kgper kilo) (Php per kgper kilo)
Produced
Romaine lettuce Php 100.00 Php 150.00

Spinach Php 100.00 Php 180.00

Broccoli Php 100.00 Php 200.00

37
Categorizing the Possible Causes

Problem: Lack of pPrice flexibility

A. Manpower

1. Lack of marketing personnel

a. No budget allocation.

2. Multi-tasking

a. Owner has another activity.

b. Lack of workers.

B. Machines

1. Lack of machineries

a. No budget allocation

C. Materials

1. Lack of farm inputs.

a. Lack of seedlings to be planted.

D. Methods

1. Lack of product techniques

a. Inadequate Less seminars attended

2. IndadequateLack of knowledge in product assessment

a. Less Inadequate seminars attended

38
 Poor
Pricing
MethodLa
ck of
price
fleixibility
Lack of farm Lack of
inputs marketing
personnel
Lack of
seedlings to be
planted
No budget
allocation

Materials Manpower

Owner has
other Lack of
activties workers
Multi-tasking

Lack of No budget Lack of product

Machineries allocation techniques

Less seminars
attended

Machines Methods

Lack of
knowledge in
product Less
assessment seminars
attended
Others

Figure 78. Ishikawa Diagram for lack of price flexibility

39
Alternative Courses of Action (ACA’s)

Based on the identified problem, the following alternative courses of

action together with its advantages and disadvantages were undertaken in

order to solve the problem. Table 8 shows the evaluation of ACA’s.

A. Implement pricing methods

Advantages:

 Can sustain the transportation expenses

 Increase profit

 Relatively close prices between organic and conventional

Disadvantages:

 Unsure approval of its market

 Pricing is not lined with OCCP standards

B. Find potential local market distributor

Advantages:

 Lower transportation cost

 Accessible market

Disadvantages:

 Uncertain volume of orders

 The farm’s name will not be used anymore.

 Farm’s certification will be possibly used however it is not sure if

the distributor will sell pure organic vegetables.

40
Table 8. Evaluation of ACA’s. _____ (please also mention this in discussion

above)

Decision Criteria ACA 1 ACA 2

1. Ease of 25% 22% Formatted: Line spacing: single

Implementation
1. Formatted: Indent: Left: 0.5", Line spacing: single, No
2. Probability of 35% 33% bullets or numbering
success Formatted: Line spacing: single
2. Formatted: Indent: Left: 0.5", Line spacing: single, No
3. Relative 15% 12% bullets or numbering
resistance
Formatted: Line spacing: single
3.
Total 75% 67% Formatted: Indent: Left: 0.5", Line spacing: single, No
bullets or numbering

The best ACA is ACA 1.

Recommendation/ Implementation

Given the two alternative courses of action with their corresponding Formatted: Justified

advantages and disadvantages, the best alternative chosen was alternative A,

which is to adjust pricing product pricing depending on market distance. Based

on the analysis of the problem faced by the farm, the author recommends that

it is better to adjust its price of ing of its products especially those that will be

delivered in relatively farther market areass. This idea would help the farm in

gaining bigger higher profit from operations.from the total sales.

41
 REFERENCES

Ontario Ministry of Agriculture , Food, and Rural Areas. Introduction to

Organic Farming. Retrieved on May 20, 2019 from
http://www.omafra.gov.on.ca/english/crops/facts/09077.htm?fbclid=IwAR0e2iJ Formatted: No underline, Font color: Auto
j7HhlW6lxbW3sI46kondDy6BkBfiVbK89RhkAM5ekr8eZAcWa4js Field Code Changed

Sunstar Baguio. Benguet tops crop production in Cordillera. Retrieved

on May 20, 2019 from https://www.sunstar.com.ph/article/1781091 (May 20, Formatted: Font: (Default) Arial, 12 pt
2019) Formatted: Underline

Thea Kristina M. Pabuayon. Bureau of Agricultural Research. Retrieved

on May 20, 2019 fromhttps://www.bar.gov.ph/index.php/digest-home/digest- Formatted: Font: (Default) Arial, 12 pt
archives/104-2001-2nd-quarter/3364-apr-june01-the-growing-philippine-
vegetable-industry-obstacles-and-opportunities (may 20, 2019)
USDA Agricultural Marketing Service .Good Agricultural Practices (GAP)
& Good Handling Practices (GHP). Retrieved on May 25, 2019 from
https://www.ams.usda.gov/services/auditing/gap-ghp

Mangeg, Jose M. 2019. JM Four Angels Records and Files

42
APPENDICES

43
 APPENDIX A

INDUSTRY NOTES

In the first semester of the year, the Philippine Statistics Authority in the

Cordillera Administrative Region (CAR)a stated that crop production in the

region increased by 5,790 metric tonsMT in 2018 compared to the 229,629.8

MT during the same period in 2017. Vegetables accounted for the bulk, at

177,559.7 metric tonsMT, followed by non-food and industrial commercial crops

(NFICCs) and fruit crops.

Kalinga accounted for 13.2% percent of the total crop production

followed by Abra with 6.3 %percent. Crop production in Benguet province,

however, decreased by 1.4% percent during the first semester of the year

compared to the 155,554-MTmetric-ton output in 2017.The top three crops

produced by the province were cabbage with 25.4 % percent or 38,925 metric

tonsMT followed by potato with 18.7% and carrots with 11.9 %percent.

The province was the top producer in the Cordillera for several crops

including cabbage with 93.2% percent of the regional cabbage production,

white potato with 90.10 %percent, carrots with 94.2% percent and 97.78%

percent for chayote. Ifugao, Apayao and Mountain Province contributed 5.9%,

5%five, and 4.6 %percent, respectively.

PSA added that out of the crop production in the region, cabbage was

largely produced with 41,733.6 metric tonMT, potato followed with 31,744 MT,

sugarcane with 28,806.8 MT while carrots and chayote with 19,339.4 MT and

16,540 MT. Per province, Ifugao produce 13,772 MT of crops, in the province

production increased by 14.5 %percent. Top three crops produced in the

44
province composed were of cassava, banana and camote. Kalinga produced

30,986 MT which increased by 21 % percent with sugarcane, banana and

coffee as the top produce. Kalinga also topped the region’s production of

sugarcane with 97.6 percent%. Mountain Province produced 10,712.6 MT

during the first semester of 2018. The province serveserves as second top

producer for white potato, cabbage and carrots. Abra produced 14,820.8 MT,

and was the top bananas producer in the region with 38.4 percent%. Apayao

on the other hand produced 11,815 MT in the first semester which increased

by 8.7 percent % and was the top cassava producer with 61.1 %percent.

With the enactment of the Agriculture and Fisheries Modernization Act

(AFMA) in 1997, the Philippine agricultural sector has been modernizing

rapidly, establishing itself as the center of the country's economy - with a 25%

Gross Domestic Product (GDP) contribution and employing 50% of the labor

force. However, the industry as a whole continues to exist as units of small,

individually-functioning farms, most of which are producing fruits and

vegetables for home consumption or as small-time alternative income source.

Vegetables as part of Filipino subsistence, be it as food or as source of

livelihood cannot be undermined. All 43 kinds and 250 lesser-known species of

Philippine vegetables are important sources of minerals, vitamins, fiber, and

proteins. In the crop category, vegetable ranks second to ornamentals in terms

of income generated per unit area and time. Moreover, it is widely used as an

intercrop for coconut and fruit trees, and as a component of other cropping

systems. Ironically, per capita consumption is quite low at 39 kilograms kg

considering that the recommended intake is 69 kilogramskg.

45
46
Local Production

Vegetable production in the Philippines is highly seasonal, with the bulk

of production coming from Ilocos (19.05%), CAR (19%), Southern Tagalog

(12.74%), Central Luzon (9.28%), Western Visayas (6.88%) and Northern

Mindanao (6.44%) from October to November. In 1997, vegetables contributed

8% to the country's total agricultural output. From 1990 to 1997, it registered a

13.33% production growth, from 4.5 million metric tons (M MT) in 1990 to 5.1

M MT in 1997. In the same year, with only 5% of the country's total agricultural

area devoted to it, the vegetable industry contributed Php 26 billion to the

economy and accounted for 9.4% of the total agricultural production.

Beyond rice and corn production, the Philippine agricultural industry is

focused in meeting export commitments. This policy is supported by the

government and is also the reason for the increased production of vegetable

crops such as eggplant, onion, tomato, garlic, squash, and cabbage. Among

these crops, eggplant leads in value of production with P1.8 M in 1999 from just

P0.6 M in 1990. The remaining four ranks in this order: onion (P1.1 M), tomato

(P1.03 M), garlic (P0.9 M), cabbage (P0.6 M), and squash (P0.5 M). In terms

of volume, eggplant still ranks first (28%), followed by tomato (22%), squash

(18%), onion (15%), cabbage (14%), and garlic (3%).

Compared to Asian and world production, local vegetable production is

relatively low. Eggplant averaged a yield of 9.95 t ha-1/ha in 1997 which is only

half of Asia's average yield of 15.91 t ha-1/ha and the world's 16.17 t ha-1/ha.

However, our local eggplant yield fared better than Thailand (6.19 t ha-1/ha),

Indonesia (3.48 t ha-1/ha), and North Korea (1.67 t ha-1/ha). The same trend

47
goes for tomato which registered an average yield of 9.73 t ha-1/ha in 1999,

onion (7.18 t ha-1/ha), and garlic (2.6 t ha-1/ha).

Export Opportunities

As mentioned earlier, the Philippines is performing well into exporting.

Vegetables in fresh/chilled, dried and processed forms are exported. From

1993 to 1996, the value of vegetable exports rose considerably from $25 M in

1994 to $45 M in 1996, only to drop at $31 M in 1997.

In 1997, onion was the number one export in terms of value at $10.5 M

followed by shallot at $7 M. Main importers included Indonesia (55%), Malaysia

(22%), and Singapore (21%). Another major export was asparagus at 5, 660

MT. This was exported to Japan in 1996 and registered a profit or value of $13.7

M. Other exports included garlic, beans, peas, tomato, and vegetable seeds.

A large amount of tomato, pepper, eggplant, melons, and watermelons

are also exported. Aside from these, the country can also capitalize on the

export of squash, sword bean, white gourd, sitao, and radish which are also

gaining ground internationally. However, the country also imports a lot of

vegetables, oftentimes cancelling its gains in export. In 1996, total vegetable

import exceeded exports at $79. 8 M. The bulk of these imports consisted of

preserved and processed vegetables, dried, fresh, and chilled products.

Moreover, the country's vegetable seed requirement, specifically onion seeds,

crucifers, and other semi-temperate crops are also imported from USA, Japan,

the Netherlands, Thailand, and Vietnam.

48
Improving overall industry status
Although vegetables have a high potential of contributing to our farmers'

income, the government has given little priority to this industry. This, coupled

with existing problems such as the erratic supply and low quality of produce,

poor farm-to-market roads, inadequate storage facilities, limited access to

reliable market information, and lack of entrepreneurial skills among growers

and cooperatives obstruct the industry's potential in the world market.

Through BAR, a network solely dedicated to improving the vegetable

industry was created. The vegetable network, which is composed of experts

from UP Los Baños (UPLB), Benguet State University (BSU), Visayas State

College of Agriculture (ViSCA), and Central Luzon State University (CLSU),

coordinates all research, development, and extension efforts pertaining to

vegetables. Likewise, a National Integrated RDE Agenda and Program

(NIRDEAP) was drafted to state specific projects for the network.

Through the NIRDEAP, several industry goals were set to guide the

network in improving present vegetable situation such as: a stable vegetable

supply to minimize fluctuations in market prices through increased off-season

production; reduced postharvest losses by 20%; increased export by 20%; and

increased per capita vegetable consumption to 60 kg. Granting these are

achieved, the country is assured of a competitive edge in the world market

49
 APPENDIX B

DEFINITION OF TERMS

TERM DEFINITION
Organic Certification Center of the -a certification and inspection body
Philippines (OCCP) for food and food products, and
agricultural inputs to cater the
agriculture industry and the
consumers of certified products.

GAP Certification -are voluntary audits that verify that

fruits and vegetables are produced,
packed, handled, and stored as
safely as possible to minimize risks
of microbial safety.

Organic vegetables -food produced by methods that

comply with the standards of organic
farming.

Market -an area where buyers and sellers

meet for the purpose of transaction

Concoctions -mixtures of various ingredients used

as organic fertilizers.

Cost- based pricing -pricing method in which a fixed sum

or a percentage of the total cost is
added to the cost of the product to
arrive at selling price.

50
 APPENDIX C

MEMORANDUM OF UNDERSTANDING

51
 APPENDIX D

DAILY TIME RECORD

52
 APPENDIX E

CERTIFICATE OF COMPLETION

53
 APPENDX F

PHOTO DOCUMENTATION

Dinner with ABOAP President- Mr. Cornelio Benigno

Courtesy call with the Department of Agriculture- La Trinidad

54
Harvesting of mychoriza used for IMO making

Concoction making

55
 Weeding of Garden plots

Land preparation using hand tractor

56
Harvesting of spinach

Packaging of spinach

57
 Buguias Farmers' Day

Farm visit at John Josh Strawberry Farm in Mankayan, Benguet

58
Farm visit at Layog Country Farm in Mountain Province

Visit at Marky Cielo's tomb in Bauko, Mountain Province

59
Paalam Night before leaving Buguias, Benguet

Sir Bert Penalosa's farm visit

60