STRIKE OF COVID-19 TO PROVINCIAL AGRIBUSINESS: A DESCRIPTIVE-

CAUSAL COMPARATIVE STUDY ON THE IMPACTS OF THE PANDEMIC TO

THE RICE INDUSTRY OF ISABELA AND ABRA PROVINCES

A Research Paper Presented to the

Faculty of Integrated Basic Education Department

Senior High School San Beda University - Manila

In Partial Fulfillment of the Requirements for the Subject

Practical Research 2 (Quantitative Research)

Presented by:

Ciano, Mheally Sofhea C.

Ono, Ami D.
Padios, Diane Crystal V.
Ramores, Kiana Raine G.
Saludo, Kiel B.
Salvador, John Michael R.
Semanero, Bernoel B
Tusing, Charles Jordan R.
Vivar, Pauline Margaret S.
.
12 HUMSS 3

Submitted to:
Uribe, John Mar Q., LPT

November 2020
 CHAPTER 1

BACKGROUND OF THE STUDY (Vivar)

This chapter gives information about the study and its background. The

following are discussed in this chapter: Significance of the Study, Statement of the

Problem, Objectives of the Study, Scope and Delimitations, Definition of Terms,

Conceptual Framework, and Theoretical Framework.

Introduction (Vivar, Padios, with inputs from other members)

Since our country has a rich land area, rice agriculture is evidently one of our

biggest industries. According to Dejaresco, Z., as of September 2019, there are 10

million rice farmers in the Philippines. This shows that the livelihood of many

Filipinos is dependent on farming. However, due to many factors that include the

temporary suspension of mass transportation, the closure of some trading posts

(also called bagsakan), and the tightening of borders in a bid to enforce the

necessary social distancing needed to prevent the spread of the virus, farmers have

had difficulties in taking their produce to market. This may significantly impact the

workforce characteristics, costs, and profits in the said field of agriculture.

"The COVID-19 pandemic is considered the most crucial global health

calamity of the century and the greatest challenge humankind faced since the 2nd

World War," Chakraborty, et al., (2020). It emerged as a new infectious respiratory

disease in Wuhan, Hubei province, China, in December 2019 and was named by the

World Health Organization as COVID-19 (coronavirus disease 2019). It has rapidly

spread worldwide, posing enormous health, economic, environmental, and social

challenges to the entire human population. Since it requires lockdown to most areas

for quarantining purposes, it significantly affects the people's livelihood.

The pandemic resulted in movement restrictions for labor and transport of

farm inputs and produce, increase in food prices due to the unpredictable market,

and change in consumer patterns. Poverty impacts of an economic slowdown could

range from 0.96 (Vietnam) to 2.97 percent rise in poverty ratio in Indonesia, Lao

PDR, Myanmar, and the Philippines. Mobility restrictions resulting from the

imposition of community lockdowns result in quantity reduction in farm labor,

translating to an overall decrease in agricultural output. Reduced agricultural

production is also caused by farmers' limited access to farm inputs and markets to

sell produce, resulting in potential losses and wastage of farm produce (Cielito, G.

2020).

Demand suffers as consumers cut spending throughout the year. According to

Lakner (2020), the number of corporate layoffs and bankruptcies rises in the most

affected sectors throughout this year, feeding a self-reinforcing downward spiral. In

sum, in the near-term perspective of this season, for the large part, crop and animal

production may only be affected by the coronavirus crisis in isolated cases, for

example, if a farming household gets infected. This implies that food markets' status

over the next months can be unstable, and even harvests this year can substantially

decrease, feeding a self-reinforcing downward spiral. In sum, in the near-term

perspective of this season, for the large part, crop and animal production may only

be affected by the coronavirus crisis in isolated cases, for example, if a farming

household gets infected. This implies that the status of food markets can be unstable

over the next months, and even harvests this year can substantially decrease.

Although many available resources can be used to know more about this

issue, the researchers saw the lack of studies regarding this, which focuses solely on

the Philippine context. This study will describe and compare the impacts of COVID-

19 on the rice industry of Isabela and Abra provinces in terms of workforce

characteristics, costs, and profits. The research aims to conduct an in-depth study of

agriculture since it plays a massive role in our nation's sustainability and

development. The land area devoted to 'palay,' the Philippines' main staple to most

of the 100.98 million Filipinos (PSA, 2015), was 4.8 million hectares, as reported in

2018. This means that Abra and Isabela provinces, being the two leading rice

producers and suppliers in the country, also have a considerable amount of land

area for the country's' rice industry. Being one of the Cagayan Valley region's biggest

rice producers, Isabela covers 189.3 thousand hectares (PSA, 2004). As for the Abra

province, it covers a rice-growing area of 16, 478 hectares (Sajise, E., et al., 2012).

This will help people to understand better the current status of one of our

country's biggest industries, agribusiness. As stated by the Organization for

Economic Cooperation and Development (OECD) in 2020, the virus poses a serious

threat to food security and livelihoods in the poorest countries. Agricultural

production systems are more labor-intensive, and there is less capacity to withstand

a severe macroeconomic shock. Since the middle of March in the Philippines, the

situation has gotten worse because the government imposed a lockdown. Supply

chain disruptions and demand compression fanned out almost simultaneously. The

flow of goods from farms to urban markets has been affected by lockdowns, which
causes oversupply instances. Indeed, agricultural labor has faced challenges with

mobility. As families have lost purchasing power, the decrease in local demand and

export demand is pervasive. Thus, there are many farmers needing assistance.

Because of the pandemic, our nation had experienced slowdowns and

shortages. As logistics are disrupted, and efforts proceed to slow the spread of the

virus, multiple connected industry sectors are already being impacted. According to

Frabotta (2020), COVID-19 affects labor availability, consumer demand for produce,

trade deals, and supply chains for crop inputs, potentially affecting late-season

applications of non-commodity pesticides. Specialty fungicides specifically could also

see some price inflation. The measures put in place to contain the spread of the

virus are starting to disrupt the supply of agricultural products to markets and

consumers, both within and across borders. The sector is now experiencing a

substantial shift in the composition and the level of demand.

In this case, the government must now entirely focus on mitigation and

response. Providing reasonable precautions will limit the spread of the disease and

its influence on your businesses and lives. In the shortest term possible,

governments must successfully manage multiple tasks – responding to the health

crisis, addressing the consequences of the shock to the economy, and ensuring the

smooth functioning of the systems that operate in the society. Contingency planning

must be done in advance to help buffer the impact of unforeseen events. Studies like

this will help them gauge the situation and will guide them in formulating appropriate

interventions. 
Statement of the Problem (Ramores)

This study focuses on identifying the strike of COVID-19 to provincial

agribusiness. Specifically, it aims to describe and compare the rice industry's before

and current status in Isabela and Abra provinces.

This research seeks to answer the following questions (Ono):

Q1: What was the status of Abra province's rice industry before the pandemic? 

sub1: status of the workforce before pandemic 

sub2: status of cost and profit before pandemic

Q2: What is the status of Abra province's rice industry during the pandemic? 

sub1: status of workforce during pandemic 

sub2: status of cost and profit during pandemic

Q3: What was the status of Isabela province's rice industry before the pandemic?

 sub1: status of the workforce before pandemic 

sub2: status of cost and profit before pandemic

Q4: What is the status of Isabela province's rice industry during the pandemic? 

sub1: status of workforce during pandemic 

 sub2: status of cost and profit during pandemic

Q5: What are the differences/similarities between the pandemic's effects on the rice

industry in Isabela and Province?

 sub1: effects on the workforce characteristics

 sub2: effects on the cost and profit

Objectives of the study (Vivar)

This research has the certain objectives, which concisely describe what it is trying to

achieve. These are the following:

1. To describe the before and current status of the rice industry of Isabela 

2. To describe the before and current status of the rice industry of Abra

3. To compare the impacts of the pandemic to the rice industry of Isabela and Abra

provinces

Hypotheses (Ono)

1.) Abra province's rice industry's status was better shaped before the pandemic

than during the pandemic.

2.) Abra province's rice industry's status is declining during the pandemic compared

to its status before the pandemic.

3.) Isabela province's rice industry's status was better shaped before the pandemic

than during the pandemic.

4.) Isabela province's rice industry's status is declining during the pandemic

compared to its status before the pandemic.

5.) HA: There are significant differences/ similarities between the pandemic's effects

on the rice industry in Isabela and Abra provinces.

6.) H0: There are no differences/similarities between the pandemic's effects on the

rice industry in Isabela and Abra provinces.

Scope and Delimitations of the Study (Vivar, Salvador)

This study's scope is only within the Isabela and the Abra provinces, two of

the country's leading rice producers and suppliers. This study limits the respondents

to farmers who work in these provinces' rice industry, specifically before and during

the pandemic. Thus, other actors in the rice industry are beyond the scope of this

study. Since the lockdown in Isabela and Abra provinces both started in March 2020,

according to the reports, these farmers should have participated in the last cropping

and harvesting prior to the given date. To ensure that they will be able to give out

accurate information in line with the study's objectives, they will be chosen using

quota sampling. The data collection will be conducted through a structured survey

questionnaires using the Likert scale.

The study limits agribusiness to the rice industry. Thus, other agricultural

sectors are not included. This study also defines the impacts of COVID-19 on

agribusiness only in terms of workforce characteristics, costs, and profits, being two

of the essential aspects of agriculture. According to the United States National

Institute of food and Agriculture, a competitive workforce is vital to establishing a

sustainable agricultural future. At the same time, cost and profit analysis can help

management make essential decisions revealing the interrelationship among the

volume of output and sales. Thus, this study does not cover any other aspects of the

sector mentioned above. 

 

Significance of the Study (Saludo, Semanero)

"Investments in agriculture are the best weapons against hunger and poverty,

and they have made life better for billions of people" (Gates, 2012). Agribusiness is a

sector that promotes the growth of the agricultural industry, which is crucial for the

economy's growth. It also continues to play a decisive role in developing countries'

growth. Potentially, agribusiness can improve agricultural productivity, which is why

governments often offer subsidies to agricultural enterprises. Agricultural activities

also contribute to an improved system of food security and sustainable food

production and income for most of the poor in developing countries. Life around the

globe has been upended in the wake of COVID-19 within the space of a few weeks.

Industries of all kinds have been forced to change their way of operating rapidly, and

agriculture is no different. Farmers are used to adapting to situations, whether they

are droughts, floods, or pest infestations. Overcoming unpredictable hurdles goes

with the job, but the pandemic brings a range of new challenges to growing the food

people depend upon. These challenges make it clear that more must be done to

improve the resilience of our food system. This research's study seeks to let the

public understand how COVID-19 affects agribusiness in Isabela and Abra

provinces.

           This study would be a significant contribution to all the people interested and

affected by the agribusiness changes. The vital results of this paper could be highly

significant and beneficial, specifically to the following:

           Society: The findings of this research would help raise awareness among

people who are not yet fully educated about current events in the agribusiness

sector, particularly in the rice industry. It is intended to provide them with further

knowledge on this issue.

           Youth: This study aims to help students who are studying and who are

interested in agriculture. There is an increase in support for the agriculture sector.

The list of motives is endless. Attitudes toward agriculture are changing already.

Young people are also talking increasingly about why they choose agriculture. With

this research, they will learn more about how to help and support agribusinesses.

     Consumers: The findings of this research aim to serve as a guide for the

consumers who are the majority of the Filipino people depending on rice as their

staple food source, for them to have a better understanding of what happens behind

the rice trade in a more profound perspective on the Farmer's status of agricultural

business during the pandemic. Considering the coexisting relationship of the Market

as Consumers and the Farmers as the Producers.

Traders, Manufacturers, and Retailers: In the rice trade's systematic

function, the traders, manufacturers, and retailers are responsible for the distribution

of agricultural products inside and outside of the country. This study aims to lay

down a detailed and organized structure to properly show and make the distributors

of this industry apprehend what happens to agriculture during the pandemic beyond

just the economic and systematic factors.

 Farmers: This research aims to assist farmers in understanding their rights

and importance to their own field of work since the key to repeating business and

growth is their labor and presence. 

           Policymakers: They will also benefit from this study because it will help them

better understand the farmers' situation in our country. Thus, they will be more

guided in decision-making. This could be a helpful resource for program planning

and lawmaking in terms of agribusiness. 

           Future Researchers: Finally, the research aims to benefit future researchers.

This paper would bring more knowledge to researchers who are conducting a similar

study on this subject. This will also be a useful reference for them if their research

focuses on the rice industry and the effects of a future crisis on agribusiness. The

findings of this research will also help them understand the effects of COVID 19 on

farmers. 

Definition of Terms (Tusing, Ciano)

In order to have a clear understanding of the terms used in this study, the following

are defined conceptually:

Agribusiness – a business related to agricultural production, which include

production, processing, and distribution

Strike – a sudden spread of disease

Impact – effects of the pandemic through workforce and cost and profit
Pandemic – a worldwide spread of new disease

Industry – a group of businesses that are related in terms of primary activities

Workforce – farmers who are working in the rice industry

Cost – a value that the business has spent to produce something

Profit – money earned after accounting for all expenses

Land area – an area of ground used for farming

Conceptual Framework (Ono)

Figure 1. Research Paradigm

Theoretical Framework (Ono)

Figure 2: Socio-ecological Model

The Socio-ecological Model was initially introduced by Urie Bronfenbrenner in

the1970s as a conceptual model for understanding human development and was

formalized as a theory in the 1980s. Bronfenbrenner's framework applies

socioecological models that consider the complex interrelation between individual,

relationship, community, and societal and environmental factors. It was broadened in

order to tackle the relationships between humans, institutions, and natural

environments. Assumptions that are generally included in SEI as that can be

associated with the study are the following:

• Problems complex and interrelated; 

• Stress on human potential, environmental sustainability, and societal guidance; 

• Planning in small and informal groups

As mentioned in the study's objectives, the researchers aim to provide

awareness and a means or structure for a resolution to different institutions and

communities involved in the production of agricultural products and its consumers as

well that are affected by the pandemic. According to Lawrence (2000), in his feature

article Planning theories and environmental impact assessment, "Socioecological

idealism (SEI) seeks to reintegrate social and environmental substance into the

planning process." This theory and framework allow the study to be supported and

further understood by providing the hierarchical components. By identifying the

variables that fall under these components, the researchers would determine each

variable's relations and the effects it has on another. 

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