BIBLIOGRAPHY CORLA, MICHELLE S. ...
BIBLIOGRAPHY
CORLA, MICHELLE S. APRIL 2013. Profitability of Tupig in Manaoag,
Pangasinan. Benguet State University. La Trinidad, Benguet.
Adviser: Jovita M. Sim, MSc.
ABSTRACT
This study was conducted to find out the profile of the producers engaged in tupig
production, find out their reasons in engaging in tupig production, determine the sales of
the tupig per production and find out the factors that affect the sales of the producers.
It was found that most of the producers were secondary and elementary graduates.
Producers engaged in tupig production as their only source of income. Tupig was a highly
demanded because lot of the tourist and devotees were looking for tupig as a “pasalubong”
or take home present or snacks. They also sell some “pasalubong” products like
“bukarilyo,” “bukayo”, banana and camote ships and “alamang” for additional profit to
maximize the use of their market location and to grab also the opportunity to offer some
products of Pangasinense to tourists.
Date and day were the major factors that affect the sales of tupig like during
Christmas and New year season, Holidays, Holy week, festival of Manaoag, Wednesday,
Friday, Saturday, and Sunday are the peak season increased sales of tupig. Weather can
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
also affect the sales of tupig because even if it is peak season if the weather is bad it can
decrease the sales of tupig.
Producers used their personal money as their capital in producing tupig. The
amount of capital they used per production is from Php 500.00 to 1,200.00 and it provided
a net gain of Php 863.00 per production or per day. Therefore, tupig production is a
profitable business in Manaoag, Pangasinan.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
INTRODUCTION
Rationale
In the late 1960’s tupig has become commercially available in the market with
several variations in preparation, taste and quality.
Tupig is widely popular in regions like Pangasinan, Ilocos Region and Cagayan,
where rice and coconut are the major agricultural products. Oral history could not
determine where tupig production originated.
Manilenios (people of Manila) loved to attend Sunday masses in Our Lady of
Manaoag Church. This church is considered one of the tourist attractions in the place
because of its century age, because of the high population of tourist going to the area,
demand for “pasalubong” products like tupig is high. Other products known as
“pasalubong” take home present are puto, “bukayo” and “bukarilyo” (these are sweetened
coconut meat/flesh) and other native delicacies.
Tupig making is an important source of livelihood in Pangasinan. Tupig is a rice
cake that has been a traditional mirienda or dessert for most Filipinos during New Year and
town festivals in Ilocandia Region.
Production of tupig is supported by the Department of Labor and Employment
(DOLE) as one of the livelihood because of the availability of raw materials in the area. It
is an alternative market for farmers producing the raw materials for tupig.
The Department of Labor and Employment (DOLE) Region 1 awarded Php
498,000.00 worth of livelihood assistance to the Tupig Makers Association of Bulangao.
The assistance is intended for the association “tupig” livelihood enhancement and
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
integrated agricultural production project, which is seen to benefit 110 “tupig” makers, rice
farmers, banana producers, and charcoal briquette makers, said Labor communication
officer Arly Valdez.
Undersecretary of DOLE Trasmonte encouraged the municipal government of
Balangao and the beneficiaries to use the livelihood assistance properly.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
REVIEW OF LITERATURE
Tupig Preparation
According to www.wordpress.com (2006) tupig is a rice cake, it is very similar to
“suman”, the difference are tupig uses glutinous rice flour while suman uses glutinous rice
sometimes mixed with a regular rice. Tupig is grilled while the suman is steamed.
Ingredients used are coconut milk, rice, sugar and usually in long forms.
People in certain municipalities in Pangasinan have different ways of making tupig
but the basic ingredient are the same; grated coconut, ground sticky flour or rice and
molasses. Sugar is used as a sweetener although most prefer coconut milk.
Tupig has been one of the favourites of devotees of Our Lady of Manaoag church
in Pangasinan, but the commercially sold tupig is very thin with only a tablespoon of mixed
ingredient wrapped in banana leaves. Through time this native delicacy has also been
develop in different flavours such as jackfruit, pandan (screw pine), guava, ube, and
strawberry.
Some towns in Pangasinan, Tarlac, and La union also produce tupig using ground
glutinous rice with coconut gratins, sugar and sesame seed then wrapped in a wilted banana
leaf. It is being cooked even. It can be stored a long period of time under room temperature.
In some cases tupig can last for two (2) weeks even without refrigeration. Its shelf
life is extended up to a month when kept frozen (Gomez and Sadumiano 2011).
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Demand of Tupig
Demand is the amount of a particular economic good or service that the consumer
or group of consumers will want to purchase at a given price. The demand curve is usually
downward sloping, since consumers will want to buy more as price decrease. Demand for
a good or service is determined by many different factors other than price, such as the price
of substitute goods andcomplementary goods. In extreme, demand may be completely
unrelated to price or nearly infinite at a given price, along with supply, demand is one of
the two key determinants of the market price (www.investorwords.com 2012).
Demand is the relation among the various amounts of a product that buyers would
be willing and able to purchase at possible alternative price during a given time, all other
things remaining the same.
Consumer demand for product and services is affected by their price and
availability and by consumer’s personal taste and discretionary income (Berkowitz, Kerin
and Rudeluis 2003).
Consumer demand for product is quite different from demand in the business
market. Unlike consumer demand, business demand is derived, inelastic, joint and
fluctuating (McDaniel, Lamb, and Hair 2004).
Demand pricing is important because it takes market response into account. The
only justification for a price increase is that it will increase profit and unless a company is
badly strapped forecast or is deliberately milking a product or service profit should be
looked at for a long-term viewpoint that is building customers loyalty and future revenues
(Keegan, Davidson and Brill 2000)
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
If the price increase could be expected to deflate profit, it should obviously not be
pursued. And if rising cost a big problem, the solution should be found through cutting cost
or increasing volume. In essence, demand pricing ignores cost. If an increase in price looks
likely to raise long term profit, it should be considered, even though cost remain stable or
decline whether or not you increase price in this situation depends on your market share
objective value rather than cost is what determines pricing (McDaniel, Lamb, Hair 2004).
The demand for tupig follows a pattern which reaches its peak during Sundays and
holiday seasons, where local people and tourist usually go to Our Lady of Manaoag, when
consumption normally take its surge as social-related activities increased during this
period.
Profitability Analysis
Profitability refers to the potential of venture to be financially successful. This may
be assessed before entering into a business or it may be used to analyse a venture that is
currently operating. Although it may be found that one set of factors is not likely to be
successful or has not been successful, it may not be necessary to abandon the venture. It
may instead be feasible to change operational factors such as pricing or costs
(www.wisegreek.com 2012).
However, www.finance.qandas.com defined profitability as a term used by
corporations and financial experts when they discuss whether to make or sell a goods or
service. It is an expectation of making more income from sales of the goods or service than
they spend performing the service or making the goods. Profitability is different from
“profit” in that profitability is an idea or expectation while the “profit” is the physical result.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Profitability controls need to measure the profitability of their various products,
territories, customer group, channels, and other sizes. This information will help
management determine whether any products or marketing activities should be expanded,
reduced, or eliminated (Kotler and Armstrong 1991).
Services are characterized by perishability because the unused service capacity of
one time period cannot be stored for future. Good marketer can handle the supply demand
problem through production scheduling and inventory techniques. Service marketers do
not have the same advantage, and they face several hurdles in trying to balance supply and
demand. They can, however plan for demand that fluctuates according to day of the week,
time of the day or season (Pride and Ferrell 2000).
According to the article in Bulatlat authored by Makilan (2006), Damascon and
Orbito earned a living by producing tupig. Damascon, 50, from Urdaneta, Pangasinan
learned making tupig from her mother who also used to sell the native “kakanin”. She was
able to send her only child to college by selling tupig. At a selling price of Php 25 per pack
of 10 pieces, she earns from Php 300.00 to Php 400.00 per day. Her customers are locals
and travellers from Manila who stop at her post to buy “pasalubong” (take home).
Meanwhile, Orbito, 34, from Carmen, Pangasinan carries a box with packed tupig.
He sells them by boarding commercial buses or at bus stop where passengers wait for buses.
His wife prepare and cook the tupig in their house. He earns Php 300.00 a day.
Tupig producers in Manaoag sell their product through direct selling, where most
buyer are commuters, tourist and devotees of Our Lady of Manaoag. Most of the vendors
sell their tupig per piece. The problem mostly they encountered in production and
marketing are lack of capital and high competition.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Tools of Profitability
Costing. According to Business dictionary.com costing is a system of computing cost of
production or of running a business, by allocating expenditure to various stages of
production or to different operations of a firm.
However, classof1.com says that costing is a technique and process of ascertaining cost.
This technique consists of principles and rules which govern the procedure of ascertaining
the cost of products service. The process of costing includes routines of ascertaining costs
by historical or conventional costing, standard costing or marginal costing.
Cost capital is the rate of return on assets that must be earned to permit the firm to meet its
interest obligation and provide the expected return to owners. The cost of capital used for
analyzing proposed expenditures is also influenced by the perceived riskiness of the
proposal being evaluated (Marshal, Wayne, Veile 2002).
Cost analysis. The act of breaking a cost summary into its constituents and studying and
reporting on each factors. The comparison of costs (as of standard with actual or for a given
period with another) for the purpose of disclosing and reporting on conditions subject to
improvement (www.merriam-webster.com).
According to Peter D. Bennett cost analysis involves the reallocation of the natural
accounting to the functional accounts of managerial accounting so that managers can
control marketing costs. This process involves breaking down marketing costs and then
assigning them to specific marketing activities or unit, such as products, geographic units,
channels of distribution, or market segments.
Marketing cost analysis is an analysis of sales and volume which is helpful in evaluating
and controlling a company marketing effort. However, management needs to proceed to
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
further and assess cost to determine the relative profitability of its territories, product lines,
or other marketing units. In the words of one researcher “As corporate profits turn down
and stocks take a plunge, leading companies are looking at marketing cost analysis to lift
their bottom line [profits].” In fact, if marketer’s expenditures are not worthwhile, their
budget maybe-in fact- should be-reduced (Petter D. Bennett).
Return on investment analysis. It is usually assigned to the rate of return calculation made
using data from financial statements. This ratio is sometimes referred to ask the return on
assets. There are many ways of defining both the amount of return and use average total
assets during the year as the amount invested (Bertwokitz, Kerin and Rudeluis 2003).
According to Marshal, Wayne, and Veile (2002) return on investment is a financial
measure based on using clearly pieces of information. The “return” represents the financial
gain beyond the initial investment. The “investment” is the total of the all expenses that
were put at risk for the purpose of generating the return. In general, each marketing
investment is expected, to contribute to the generation of profits as customers are
influenced to purchase more. Return on investment is presented as a percentage calculated
by dividing the return by the investment.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
METHODOLOGY
Locale and Time of the Study
The research was conducted in Manaoag, Pangasinan, particularly in Our Lady of
Manaoag Church. The study was conducted on December 2012.
Respondent of the Study
The repondents of the study were all the vendors of tupig near Our Lady of
Manaoag church in Manaoag, Pangasinan. Total enumeration was employed in the
selection of respondents.
Data Collection
A survey questionnaire was used in gathering the needed data. This was
distributed to the respondent. Data collected were validated through interview during
collection of questionnaire.
Data Gathered
The data gathered were reasons of going into tupig production, the cost of
production, volume and profits in tupig production.
Data Analysis
All data gathered were categorized, tabulated, analyzed and interpreted according
to the objectives of the study. A cost and return analysis was done to analyze the
profitability.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
RESULTS AND DISCUSSION
Profile of the Respondent
Source of information were thirty tupig producers in Manaoag, Pangasinan,
specifically those producers selling in the Church premises since selling of tupig is
concentrated in this area. Table 1 presents the profile of the respondents as to age, gender,
civil status, educational attainment, major source of income and number of children.
Age. Thirty seven percent of the respondents were in aged bracket of 18-28 years old, 30%
belonged to age bracket of 29-38 years old, 27% were 39-48 years old and only 6%
belonged to aged bracket of 49 to 58 years old. This results shows that more of the
respondents were young to middle aged.
Civil status. Most (77%) of the respondents were married, 2 (7%) of them were
widow and 5 (16%) of the respondents were single yet engaged in tupig production to help
their parents to send their siblings into school.
Gender. All respondents were female, however in their business, the husband of those
married respondents also helped in the business doing some of the heavy works like
grinding glutinous rice and their children were also helping them to sell their products. This
implies that tupig production and selling is a family enterprise which family labor is
utilized.
Educational attainment. Majority (73%) have finished secondary, there were 17% who
finished or reached elementary level, and there were 10% who have reached college but
were not able to finish their course.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Number of children. The children were the helpers of the parents in this livelhihood
activity. Some of the children were involved in selling their products. Majority (60%) of
the respondents have 5-7 children and 40% have 2-4 children. As mentioned by the
respondents, for a small enterprise like tupig production and selling, their income is not
enough especially if number of children is 5, it is difficult/hard for them to satisfy the needs
and wants of their children. So, even if they want their children to go to school, they cannot
send them especially in college because they cannot afford the tuition fee. Earnings in
tupig production and selling is just enough for their daily household needs especially for
food.
Table 1. Demographic profile of the respondents
PARTICULARS
FREQUENCY
PERCENTAGE
Age
18-28
11
37
29-38
9
30
39-48
8
27
49-58
2
6
TOTAL
30
100
Gender
Female
30
100
TOTAL
30
100
Educational attainment
Elementary
5
17
Secondary
22
73
College undergraduate
3
10
TOTAL
30
100
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Table 1. Continued...
PARTICULARS
FREQUENCY
PERCENTAGE
Civil Status
Single
5
17
Married
23
77
Widow
2
6
TOTAL
30
100
Number of children
2-4
12
40
5-7
18
60
TOTAL
30
100
Reasons of Respondents on Engaging
in Tupig Production
The Department of Labor and Employment (DOLE) provided livelihood assistance to some
municipalities of Pangasinan for tupig production. Though the municipality of Manaoag
was not spared with that financial assistance, some of the residents in the area have seen
the opportunity of that livelihood in their place especially that their area is considered a
tourist destination because of the Manaoag Church and Lady of Shrine. This is the reason
why their selling area is within the church premises. Tupig is considered a take home
present items “pasalubong” and snacks for the residents, tourist and devotees. Tupig is a
delicious rice cake that is why devotees and tourist are looking for this food because of its
uniqueness.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Table 2 shows that majority (57%) of the respondents considers this enterprise as
livelihood/source of income, as the main reason of engaging in tupig production and
selling.
Table 2. Reasons of respondent of engaging in tupig production and marketing
REASON
FREQUENCY
PERCENTAGE
Source of income
17
57
Additional income
10
33
High in demand
3
10
TOTAL
30
100
Thirty three percent of the respondents identified tupig production and selling as source of
additional income for the family. This is the reason why most of those engaged in tupig
production and selling were women. Husbands of these women were working as tricycle
drivers, security guards, and junkers. The income of their spouses are not enough to meet
their daily needs that is why they took the initiative to engage in tupig production to
augment income and so they can send their children to school.
Ten percent were engaged in tupig production because they have seen the opportunity of
high demand for the product.
Amount of Capital Used by the Producers per Day
Table 3 shows that four (13%) of the respondents incurred a total cash cost of
production at Php 500.00 to 700.00 per production or per day because they control the
volume of tupig they produce which depends on the demand or the peak season of
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
tourist/devotees going to the church (usually during Wednesday, Friday, Saturday and
Sundays). Five (17%) also controls production uses Php 701.00 to 900.00 per production
because tupig is just an additional products, their main products are also “pasalubong”
take
home products like “bukarilyo”, “bukayo”, “alamang”, and other specialty product of
Manaoag, Pangasinan. Nine (30%) of the respondents used a capital of Php 901.00 to
1,100.00 production to balance their sales of tupig over their other products. The 12 (40%)
of the respondents used a capital of Php 1,101.00 to 1,300.00 because tupig is their main
product and those respondents are located near the gate of Our Lady of Manaoag Church
or along the roads. They produce more tupig because most of the people pass this way
that’s why it is an advantage over the other producers and sellers selling very near the
church, because these producers do not only cater to the tourist and devotees but also to
residents in the area and other consumers and passers by who are members of other
churches. In other words these sellers caters to all types of consumers.
Table 3. Amount of capital used by the producers per day
WORKING CAPITAL
FREQUENCY
PERCENTAGE
Php 500-700
4
13
Php 701-900
5
17
Php 901-1,100
9
30
Php 1,101-1,300
12
40
TOTAL
30
100
MEAN Php 1,200
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Period of Time Spend in Production and Selling Tupig
Table 4 shows majority (57%) of the respondents mentioned that they spend 6 hours
selling tupig, the time range is from 7 in morning (AM) to 2 in the afternoon (PM). These
tupig producers and sellers sometimes do their wrapping and cooking in the selling area.
While cooking the wrapped tupig, they continue to pack/wrap the other tupig to
maximize their time. Usually sellers who spent less time in selling are also sellers who
produce less quantity. Thirteen percent of the respondent spent 7 hours in selling tupig
(Table 4). Most of these sellers are located near the gate of the church, and produces a
larger quantity of tupig. Twenty percent of the respondents spent 8 hours in selling tupig,
because they want to sell all the tupig that they produced and there are also more buyers
in the afternoon because of workers going home and other 10% respondent spent 9 hours
in selling tupig because some devotees go to the church from3 in the afternoon(PM) to 4
in the afternoon (PM) to avoid the hot temperature.
Table 4. Period of time producers spent in selling Tupig
HOURS SPENT IN
PRODUCTION AND
FREQUENCY
PERCENTAGE
MARKETING
6 hours
17
57
7 hours
4
13
8 hours
6
20
9 hours
3
10
TOTAL
30
100
MEAN 6.83 hour
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Factors Affecting the Sales of Tupig
In Table 5 the production and sales of tupig like other products has its peak and
lean season of production and sales. Factors that determines the peak and lean season of
production and sales are the Christmas and New Year, Holy Week season, Fiesta of
Manaoag and during Wednesdays, Fridays, Saturdays and Sundays and weather condition
as mentioned by the respondents.
Most (90%) of the respondents mentioned that the date and the day were the major
factors that affect the sales of tupig. The most common days tourist and devotees go to the
church is during holidays like Christmas and New Year, Holy Week season, Fiesta of
Manaoag and during Wednesdays, Fridays, Saturdays and Sundays. These are the peak
season for tourist, thus, peak season also for the business and sales turnover is high.
Production is also increased during these season thereby increasing capital and profit.
Even if peak season is favourable if the weather is bad there is a decrease in the
number of devotees going to the church, this factor also affects the sales turnover of tupig.
Three of the respondents mentioned weather as one factor that affects their sales of tupig.
Thus, some of the producers do not produce and sell tupig when weather is bad.
Table 5. Factors affecting the sales of tupig
FACTORS
FREQUENCY
PERCENTAGE
Weather
3
10
Holidays
37
90
TOTAL
30
100
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Source of Capital of the Tupig
All respondents used their personal money/savings for capital in producing tupig.
A capital of PhP 500 to 1,200 per production is not heavy for the producer to start a
business because they knew that this will be recovered in a day it will gain profit.
Cost and Return per Production
Table 6 presents that tupig production requires a small amount of capital as
mentioned in previous discussion and shown in Table 3. The computation of cost and return
was based on the most common quantity of raw materials used. Equipments used were
charcoal stove, griller, big umbrella and wooden stool with a total computed depreciation
of Php 15.00 per day.
Majority of the respondents used 5 kilograms of glutinous rice, from that 5
kilograms of glutinous rice, they need 10 kilograms of banana leaves to wrapped the tupig,
5 kilograms of sugar, 17 pieces of coconut, uses 12 packs of charcoal, and 2 packs of
plastic bags per day used for packing. Labor cost for grinding the glutinous rice is Php
12.00 per kilograms, and cost incurred for fare is Php 50.00 and market fee of Php 10.00
per day. Total cash expenses incurred in production is Php 1,160.00. Non-cash cost include
the depreciation cost of equipment at Php 15.00 per day, labor cost in grating the coconut
at Php 51.00 and imputed interest on capital of Php 116.00. Total non-cash expenses is Php
182.00. The total expenses is Php 1,342.00 per day of production.
From these expenses, the total output is 735 pieces sold at Php 3.00 per piece providing a
gross sales of Php 2,205.00. Thus, the computed net income is Php 863.00. Return above
cash cost is Php 1,045.00. This implies that tupig production is profitable providing a net
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
income of Php 863.00. Returns to labor/management is Php 385.00/day which is accepted
because it is higher than the prevailing wage rate of Php 200.00 to 250.00 per day labor
rate in the area. Results therefore shows that tupig production is profitable.
Table 6. Cost and return of the tupig production per day
UNIT
TOTAL
PARTICULAR
QUANTITY
PRICE/COST
VALUE
(Pesos)
(Pesos)
Gross Sales
735 pcs
Php 3.00/pc
2,205.00
Production Cost
Cash Cost (materials and
labor)
Glutinous rice
5 kgs
40.00
200.00
Banana leaves
10 kgs
10.00
100.00
Sugar
5 kgs
40.00
200.00
Coconut
17 pcs
20.00
440.00
Charcoal
12 packs
12.00
60.00
Plastic bag
2 packs
20.00
40.00
Grinding of glutinous rice
5 kgs
12.00
60.00
Fare
50.00
Market fee (local tax)
10.00
Total Cash Cost
1,160
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Table 6. Continued…
UNIT
TOTAL
PARTICULAR
QUANTITY
PRICE/COST
VALUE
(Pesos)
(Pesos)
Non-Cash cost
Labor (grating of coconut)
17 pcs
3.00/pc
51.00
Depreciation cost
15.00
Imputed interest of capital
116.00
Total Non-Cash cost
182.00
Total Cost
1,342.00
Net Income
863.00
Returns above Cash Cost
1,045.00
Returns to Expenses
64%
Return to labor/management
385.00
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the profitability of the tupig production,
find out the reasons of the respondents in producing tupig despite of high competition,
determine the capital needed, and find out profit derived from the amount of capital.
A total of 30 respondents were the source of information for this study. The ages
of the respondents ranged from 18 to 56 years old. Majority of them reached secondary
level and most of them were married. The respondents are engaged in tupig production as
major source of income and for some as source of additional income to augment income
of husbands while others look at it as an opportunity because of the existence of devotees
and tourist in the area since tupig is considered a take home gift “pasalubong” product.
The respondents get their capital for tupig production and selling from personal
money. Amount of capital used in production ranges from PhP 500.00 to 1,200.00 by
majority of the respondents. Amount of capital depends on the order and the peak season
of devotees and tourist going to the area.
The major factor that affect the sales turnover of tupig is the date and day, where
Wednesday, Friday, Saturday, Sunday, and holidays are the peak season of tupig. This is
the time when devotees and tourist visit the church. Bad weather also negatively affect the
sales turnover of tupig because lesser number of devotees visit the place there by
decreasing sales.
With the low cash capital requirement ranging from PhP 500.00 to 1,200.00 return
to capital is 64%.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Conclusions
From the result, it can be concluded that production and selling of tupig in Manaoag
is a profitable enterprise, and just like other enterprises it has lean and peak season. It is a
good source of income for a family as the return to labor is high as compared to the existing
wage rate in the study area.
Recommendations
Based on the conclusion, it is recommended that producers should maintain the
quality of tupig produced in order to maintain the trust and loyalty of buyers whether these
are tourist, devotees or resident in the area. On the volume/quantity of production,
producers should consider the peak and lean season in order to avoid spoilage or waste
resulting to loss instead of profit.
Producers should also consider the sustainability of the enterprise by considering
the source of raw materials like processors should also plant banana in their backyard or
idle land so they have source of banana leaves for wrapping and reduce cost of production.
Producers should look into or consider to explore on the production of other pasalubong
products that could be produced with the available materials in the area as this would not
only increase their income but also a good alternartive market of farmers producing raw
materials, thereby helping farmers.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
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10020. P. 508.
GOMEZ. O. R. and SADUMIANO. C. G. (2011). Tupig in Currimao IlocosNorte A
Source of Pride in the Norte. Don Mariano Marcos Memorial State University, Agoo La
Union. P. 1
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CORLA, MICHELLE S. APRIL 2013
KEEGAN. W. J., DAVIDSON. H. AndBRILL. E. A. (2004) Offensive Marketing.
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by Prentice-Hall, Inc. Englewood Cliif, N.J. P. 557.
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Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
CORLA, MICHELLE S. APRIL 2013. Profitability of Tupig in Manaoag,
Pangasinan. Benguet State University. La Trinidad, Benguet.
Adviser: Jovita M. Sim, MSc.
ABSTRACT
This study was conducted to find out the profile of the producers engaged in tupig
production, find out their reasons in engaging in tupig production, determine the sales of
the tupig per production and find out the factors that affect the sales of the producers.
It was found that most of the producers were secondary and elementary graduates.
Producers engaged in tupig production as their only source of income. Tupig was a highly
demanded because lot of the tourist and devotees were looking for tupig as a “pasalubong”
or take home present or snacks. They also sell some “pasalubong” products like
“bukarilyo,” “bukayo”, banana and camote ships and “alamang” for additional profit to
maximize the use of their market location and to grab also the opportunity to offer some
products of Pangasinense to tourists.
Date and day were the major factors that affect the sales of tupig like during
Christmas and New year season, Holidays, Holy week, festival of Manaoag, Wednesday,
Friday, Saturday, and Sunday are the peak season increased sales of tupig. Weather can
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
also affect the sales of tupig because even if it is peak season if the weather is bad it can
decrease the sales of tupig.
Producers used their personal money as their capital in producing tupig. The
amount of capital they used per production is from Php 500.00 to 1,200.00 and it provided
a net gain of Php 863.00 per production or per day. Therefore, tupig production is a
profitable business in Manaoag, Pangasinan.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
INTRODUCTION
Rationale
In the late 1960’s tupig has become commercially available in the market with
several variations in preparation, taste and quality.
Tupig is widely popular in regions like Pangasinan, Ilocos Region and Cagayan,
where rice and coconut are the major agricultural products. Oral history could not
determine where tupig production originated.
Manilenios (people of Manila) loved to attend Sunday masses in Our Lady of
Manaoag Church. This church is considered one of the tourist attractions in the place
because of its century age, because of the high population of tourist going to the area,
demand for “pasalubong” products like tupig is high. Other products known as
“pasalubong” take home present are puto, “bukayo” and “bukarilyo” (these are sweetened
coconut meat/flesh) and other native delicacies.
Tupig making is an important source of livelihood in Pangasinan. Tupig is a rice
cake that has been a traditional mirienda or dessert for most Filipinos during New Year and
town festivals in Ilocandia Region.
Production of tupig is supported by the Department of Labor and Employment
(DOLE) as one of the livelihood because of the availability of raw materials in the area. It
is an alternative market for farmers producing the raw materials for tupig.
The Department of Labor and Employment (DOLE) Region 1 awarded Php
498,000.00 worth of livelihood assistance to the Tupig Makers Association of Bulangao.
The assistance is intended for the association “tupig” livelihood enhancement and
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
integrated agricultural production project, which is seen to benefit 110 “tupig” makers, rice
farmers, banana producers, and charcoal briquette makers, said Labor communication
officer Arly Valdez.
Undersecretary of DOLE Trasmonte encouraged the municipal government of
Balangao and the beneficiaries to use the livelihood assistance properly.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
REVIEW OF LITERATURE
Tupig Preparation
According to www.wordpress.com (2006) tupig is a rice cake, it is very similar to
“suman”, the difference are tupig uses glutinous rice flour while suman uses glutinous rice
sometimes mixed with a regular rice. Tupig is grilled while the suman is steamed.
Ingredients used are coconut milk, rice, sugar and usually in long forms.
People in certain municipalities in Pangasinan have different ways of making tupig
but the basic ingredient are the same; grated coconut, ground sticky flour or rice and
molasses. Sugar is used as a sweetener although most prefer coconut milk.
Tupig has been one of the favourites of devotees of Our Lady of Manaoag church
in Pangasinan, but the commercially sold tupig is very thin with only a tablespoon of mixed
ingredient wrapped in banana leaves. Through time this native delicacy has also been
develop in different flavours such as jackfruit, pandan (screw pine), guava, ube, and
strawberry.
Some towns in Pangasinan, Tarlac, and La union also produce tupig using ground
glutinous rice with coconut gratins, sugar and sesame seed then wrapped in a wilted banana
leaf. It is being cooked even. It can be stored a long period of time under room temperature.
In some cases tupig can last for two (2) weeks even without refrigeration. Its shelf
life is extended up to a month when kept frozen (Gomez and Sadumiano 2011).
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Demand of Tupig
Demand is the amount of a particular economic good or service that the consumer
or group of consumers will want to purchase at a given price. The demand curve is usually
downward sloping, since consumers will want to buy more as price decrease. Demand for
a good or service is determined by many different factors other than price, such as the price
of substitute goods andcomplementary goods. In extreme, demand may be completely
unrelated to price or nearly infinite at a given price, along with supply, demand is one of
the two key determinants of the market price (www.investorwords.com 2012).
Demand is the relation among the various amounts of a product that buyers would
be willing and able to purchase at possible alternative price during a given time, all other
things remaining the same.
Consumer demand for product and services is affected by their price and
availability and by consumer’s personal taste and discretionary income (Berkowitz, Kerin
and Rudeluis 2003).
Consumer demand for product is quite different from demand in the business
market. Unlike consumer demand, business demand is derived, inelastic, joint and
fluctuating (McDaniel, Lamb, and Hair 2004).
Demand pricing is important because it takes market response into account. The
only justification for a price increase is that it will increase profit and unless a company is
badly strapped forecast or is deliberately milking a product or service profit should be
looked at for a long-term viewpoint that is building customers loyalty and future revenues
(Keegan, Davidson and Brill 2000)
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
If the price increase could be expected to deflate profit, it should obviously not be
pursued. And if rising cost a big problem, the solution should be found through cutting cost
or increasing volume. In essence, demand pricing ignores cost. If an increase in price looks
likely to raise long term profit, it should be considered, even though cost remain stable or
decline whether or not you increase price in this situation depends on your market share
objective value rather than cost is what determines pricing (McDaniel, Lamb, Hair 2004).
The demand for tupig follows a pattern which reaches its peak during Sundays and
holiday seasons, where local people and tourist usually go to Our Lady of Manaoag, when
consumption normally take its surge as social-related activities increased during this
period.
Profitability Analysis
Profitability refers to the potential of venture to be financially successful. This may
be assessed before entering into a business or it may be used to analyse a venture that is
currently operating. Although it may be found that one set of factors is not likely to be
successful or has not been successful, it may not be necessary to abandon the venture. It
may instead be feasible to change operational factors such as pricing or costs
(www.wisegreek.com 2012).
However, www.finance.qandas.com defined profitability as a term used by
corporations and financial experts when they discuss whether to make or sell a goods or
service. It is an expectation of making more income from sales of the goods or service than
they spend performing the service or making the goods. Profitability is different from
“profit” in that profitability is an idea or expectation while the “profit” is the physical result.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Profitability controls need to measure the profitability of their various products,
territories, customer group, channels, and other sizes. This information will help
management determine whether any products or marketing activities should be expanded,
reduced, or eliminated (Kotler and Armstrong 1991).
Services are characterized by perishability because the unused service capacity of
one time period cannot be stored for future. Good marketer can handle the supply demand
problem through production scheduling and inventory techniques. Service marketers do
not have the same advantage, and they face several hurdles in trying to balance supply and
demand. They can, however plan for demand that fluctuates according to day of the week,
time of the day or season (Pride and Ferrell 2000).
According to the article in Bulatlat authored by Makilan (2006), Damascon and
Orbito earned a living by producing tupig. Damascon, 50, from Urdaneta, Pangasinan
learned making tupig from her mother who also used to sell the native “kakanin”. She was
able to send her only child to college by selling tupig. At a selling price of Php 25 per pack
of 10 pieces, she earns from Php 300.00 to Php 400.00 per day. Her customers are locals
and travellers from Manila who stop at her post to buy “pasalubong” (take home).
Meanwhile, Orbito, 34, from Carmen, Pangasinan carries a box with packed tupig.
He sells them by boarding commercial buses or at bus stop where passengers wait for buses.
His wife prepare and cook the tupig in their house. He earns Php 300.00 a day.
Tupig producers in Manaoag sell their product through direct selling, where most
buyer are commuters, tourist and devotees of Our Lady of Manaoag. Most of the vendors
sell their tupig per piece. The problem mostly they encountered in production and
marketing are lack of capital and high competition.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Tools of Profitability
Costing. According to Business dictionary.com costing is a system of computing cost of
production or of running a business, by allocating expenditure to various stages of
production or to different operations of a firm.
However, classof1.com says that costing is a technique and process of ascertaining cost.
This technique consists of principles and rules which govern the procedure of ascertaining
the cost of products service. The process of costing includes routines of ascertaining costs
by historical or conventional costing, standard costing or marginal costing.
Cost capital is the rate of return on assets that must be earned to permit the firm to meet its
interest obligation and provide the expected return to owners. The cost of capital used for
analyzing proposed expenditures is also influenced by the perceived riskiness of the
proposal being evaluated (Marshal, Wayne, Veile 2002).
Cost analysis. The act of breaking a cost summary into its constituents and studying and
reporting on each factors. The comparison of costs (as of standard with actual or for a given
period with another) for the purpose of disclosing and reporting on conditions subject to
improvement (www.merriam-webster.com).
According to Peter D. Bennett cost analysis involves the reallocation of the natural
accounting to the functional accounts of managerial accounting so that managers can
control marketing costs. This process involves breaking down marketing costs and then
assigning them to specific marketing activities or unit, such as products, geographic units,
channels of distribution, or market segments.
Marketing cost analysis is an analysis of sales and volume which is helpful in evaluating
and controlling a company marketing effort. However, management needs to proceed to
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
further and assess cost to determine the relative profitability of its territories, product lines,
or other marketing units. In the words of one researcher “As corporate profits turn down
and stocks take a plunge, leading companies are looking at marketing cost analysis to lift
their bottom line [profits].” In fact, if marketer’s expenditures are not worthwhile, their
budget maybe-in fact- should be-reduced (Petter D. Bennett).
Return on investment analysis. It is usually assigned to the rate of return calculation made
using data from financial statements. This ratio is sometimes referred to ask the return on
assets. There are many ways of defining both the amount of return and use average total
assets during the year as the amount invested (Bertwokitz, Kerin and Rudeluis 2003).
According to Marshal, Wayne, and Veile (2002) return on investment is a financial
measure based on using clearly pieces of information. The “return” represents the financial
gain beyond the initial investment. The “investment” is the total of the all expenses that
were put at risk for the purpose of generating the return. In general, each marketing
investment is expected, to contribute to the generation of profits as customers are
influenced to purchase more. Return on investment is presented as a percentage calculated
by dividing the return by the investment.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
METHODOLOGY
Locale and Time of the Study
The research was conducted in Manaoag, Pangasinan, particularly in Our Lady of
Manaoag Church. The study was conducted on December 2012.
Respondent of the Study
The repondents of the study were all the vendors of tupig near Our Lady of
Manaoag church in Manaoag, Pangasinan. Total enumeration was employed in the
selection of respondents.
Data Collection
A survey questionnaire was used in gathering the needed data. This was
distributed to the respondent. Data collected were validated through interview during
collection of questionnaire.
Data Gathered
The data gathered were reasons of going into tupig production, the cost of
production, volume and profits in tupig production.
Data Analysis
All data gathered were categorized, tabulated, analyzed and interpreted according
to the objectives of the study. A cost and return analysis was done to analyze the
profitability.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
RESULTS AND DISCUSSION
Profile of the Respondent
Source of information were thirty tupig producers in Manaoag, Pangasinan,
specifically those producers selling in the Church premises since selling of tupig is
concentrated in this area. Table 1 presents the profile of the respondents as to age, gender,
civil status, educational attainment, major source of income and number of children.
Age. Thirty seven percent of the respondents were in aged bracket of 18-28 years old, 30%
belonged to age bracket of 29-38 years old, 27% were 39-48 years old and only 6%
belonged to aged bracket of 49 to 58 years old. This results shows that more of the
respondents were young to middle aged.
Civil status. Most (77%) of the respondents were married, 2 (7%) of them were
widow and 5 (16%) of the respondents were single yet engaged in tupig production to help
their parents to send their siblings into school.
Gender. All respondents were female, however in their business, the husband of those
married respondents also helped in the business doing some of the heavy works like
grinding glutinous rice and their children were also helping them to sell their products. This
implies that tupig production and selling is a family enterprise which family labor is
utilized.
Educational attainment. Majority (73%) have finished secondary, there were 17% who
finished or reached elementary level, and there were 10% who have reached college but
were not able to finish their course.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Number of children. The children were the helpers of the parents in this livelhihood
activity. Some of the children were involved in selling their products. Majority (60%) of
the respondents have 5-7 children and 40% have 2-4 children. As mentioned by the
respondents, for a small enterprise like tupig production and selling, their income is not
enough especially if number of children is 5, it is difficult/hard for them to satisfy the needs
and wants of their children. So, even if they want their children to go to school, they cannot
send them especially in college because they cannot afford the tuition fee. Earnings in
tupig production and selling is just enough for their daily household needs especially for
food.
Table 1. Demographic profile of the respondents
PARTICULARS
FREQUENCY
PERCENTAGE
Age
18-28
11
37
29-38
9
30
39-48
8
27
49-58
2
6
TOTAL
30
100
Gender
Female
30
100
TOTAL
30
100
Educational attainment
Elementary
5
17
Secondary
22
73
College undergraduate
3
10
TOTAL
30
100
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Table 1. Continued...
PARTICULARS
FREQUENCY
PERCENTAGE
Civil Status
Single
5
17
Married
23
77
Widow
2
6
TOTAL
30
100
Number of children
2-4
12
40
5-7
18
60
TOTAL
30
100
Reasons of Respondents on Engaging
in Tupig Production
The Department of Labor and Employment (DOLE) provided livelihood assistance to some
municipalities of Pangasinan for tupig production. Though the municipality of Manaoag
was not spared with that financial assistance, some of the residents in the area have seen
the opportunity of that livelihood in their place especially that their area is considered a
tourist destination because of the Manaoag Church and Lady of Shrine. This is the reason
why their selling area is within the church premises. Tupig is considered a take home
present items “pasalubong” and snacks for the residents, tourist and devotees. Tupig is a
delicious rice cake that is why devotees and tourist are looking for this food because of its
uniqueness.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Table 2 shows that majority (57%) of the respondents considers this enterprise as
livelihood/source of income, as the main reason of engaging in tupig production and
selling.
Table 2. Reasons of respondent of engaging in tupig production and marketing
REASON
FREQUENCY
PERCENTAGE
Source of income
17
57
Additional income
10
33
High in demand
3
10
TOTAL
30
100
Thirty three percent of the respondents identified tupig production and selling as source of
additional income for the family. This is the reason why most of those engaged in tupig
production and selling were women. Husbands of these women were working as tricycle
drivers, security guards, and junkers. The income of their spouses are not enough to meet
their daily needs that is why they took the initiative to engage in tupig production to
augment income and so they can send their children to school.
Ten percent were engaged in tupig production because they have seen the opportunity of
high demand for the product.
Amount of Capital Used by the Producers per Day
Table 3 shows that four (13%) of the respondents incurred a total cash cost of
production at Php 500.00 to 700.00 per production or per day because they control the
volume of tupig they produce which depends on the demand or the peak season of
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
tourist/devotees going to the church (usually during Wednesday, Friday, Saturday and
Sundays). Five (17%) also controls production uses Php 701.00 to 900.00 per production
because tupig is just an additional products, their main products are also “pasalubong”
take
home products like “bukarilyo”, “bukayo”, “alamang”, and other specialty product of
Manaoag, Pangasinan. Nine (30%) of the respondents used a capital of Php 901.00 to
1,100.00 production to balance their sales of tupig over their other products. The 12 (40%)
of the respondents used a capital of Php 1,101.00 to 1,300.00 because tupig is their main
product and those respondents are located near the gate of Our Lady of Manaoag Church
or along the roads. They produce more tupig because most of the people pass this way
that’s why it is an advantage over the other producers and sellers selling very near the
church, because these producers do not only cater to the tourist and devotees but also to
residents in the area and other consumers and passers by who are members of other
churches. In other words these sellers caters to all types of consumers.
Table 3. Amount of capital used by the producers per day
WORKING CAPITAL
FREQUENCY
PERCENTAGE
Php 500-700
4
13
Php 701-900
5
17
Php 901-1,100
9
30
Php 1,101-1,300
12
40
TOTAL
30
100
MEAN Php 1,200
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Period of Time Spend in Production and Selling Tupig
Table 4 shows majority (57%) of the respondents mentioned that they spend 6 hours
selling tupig, the time range is from 7 in morning (AM) to 2 in the afternoon (PM). These
tupig producers and sellers sometimes do their wrapping and cooking in the selling area.
While cooking the wrapped tupig, they continue to pack/wrap the other tupig to
maximize their time. Usually sellers who spent less time in selling are also sellers who
produce less quantity. Thirteen percent of the respondent spent 7 hours in selling tupig
(Table 4). Most of these sellers are located near the gate of the church, and produces a
larger quantity of tupig. Twenty percent of the respondents spent 8 hours in selling tupig,
because they want to sell all the tupig that they produced and there are also more buyers
in the afternoon because of workers going home and other 10% respondent spent 9 hours
in selling tupig because some devotees go to the church from3 in the afternoon(PM) to 4
in the afternoon (PM) to avoid the hot temperature.
Table 4. Period of time producers spent in selling Tupig
HOURS SPENT IN
PRODUCTION AND
FREQUENCY
PERCENTAGE
MARKETING
6 hours
17
57
7 hours
4
13
8 hours
6
20
9 hours
3
10
TOTAL
30
100
MEAN 6.83 hour
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Factors Affecting the Sales of Tupig
In Table 5 the production and sales of tupig like other products has its peak and
lean season of production and sales. Factors that determines the peak and lean season of
production and sales are the Christmas and New Year, Holy Week season, Fiesta of
Manaoag and during Wednesdays, Fridays, Saturdays and Sundays and weather condition
as mentioned by the respondents.
Most (90%) of the respondents mentioned that the date and the day were the major
factors that affect the sales of tupig. The most common days tourist and devotees go to the
church is during holidays like Christmas and New Year, Holy Week season, Fiesta of
Manaoag and during Wednesdays, Fridays, Saturdays and Sundays. These are the peak
season for tourist, thus, peak season also for the business and sales turnover is high.
Production is also increased during these season thereby increasing capital and profit.
Even if peak season is favourable if the weather is bad there is a decrease in the
number of devotees going to the church, this factor also affects the sales turnover of tupig.
Three of the respondents mentioned weather as one factor that affects their sales of tupig.
Thus, some of the producers do not produce and sell tupig when weather is bad.
Table 5. Factors affecting the sales of tupig
FACTORS
FREQUENCY
PERCENTAGE
Weather
3
10
Holidays
37
90
TOTAL
30
100
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Source of Capital of the Tupig
All respondents used their personal money/savings for capital in producing tupig.
A capital of PhP 500 to 1,200 per production is not heavy for the producer to start a
business because they knew that this will be recovered in a day it will gain profit.
Cost and Return per Production
Table 6 presents that tupig production requires a small amount of capital as
mentioned in previous discussion and shown in Table 3. The computation of cost and return
was based on the most common quantity of raw materials used. Equipments used were
charcoal stove, griller, big umbrella and wooden stool with a total computed depreciation
of Php 15.00 per day.
Majority of the respondents used 5 kilograms of glutinous rice, from that 5
kilograms of glutinous rice, they need 10 kilograms of banana leaves to wrapped the tupig,
5 kilograms of sugar, 17 pieces of coconut, uses 12 packs of charcoal, and 2 packs of
plastic bags per day used for packing. Labor cost for grinding the glutinous rice is Php
12.00 per kilograms, and cost incurred for fare is Php 50.00 and market fee of Php 10.00
per day. Total cash expenses incurred in production is Php 1,160.00. Non-cash cost include
the depreciation cost of equipment at Php 15.00 per day, labor cost in grating the coconut
at Php 51.00 and imputed interest on capital of Php 116.00. Total non-cash expenses is Php
182.00. The total expenses is Php 1,342.00 per day of production.
From these expenses, the total output is 735 pieces sold at Php 3.00 per piece providing a
gross sales of Php 2,205.00. Thus, the computed net income is Php 863.00. Return above
cash cost is Php 1,045.00. This implies that tupig production is profitable providing a net
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
income of Php 863.00. Returns to labor/management is Php 385.00/day which is accepted
because it is higher than the prevailing wage rate of Php 200.00 to 250.00 per day labor
rate in the area. Results therefore shows that tupig production is profitable.
Table 6. Cost and return of the tupig production per day
UNIT
TOTAL
PARTICULAR
QUANTITY
PRICE/COST
VALUE
(Pesos)
(Pesos)
Gross Sales
735 pcs
Php 3.00/pc
2,205.00
Production Cost
Cash Cost (materials and
labor)
Glutinous rice
5 kgs
40.00
200.00
Banana leaves
10 kgs
10.00
100.00
Sugar
5 kgs
40.00
200.00
Coconut
17 pcs
20.00
440.00
Charcoal
12 packs
12.00
60.00
Plastic bag
2 packs
20.00
40.00
Grinding of glutinous rice
5 kgs
12.00
60.00
Fare
50.00
Market fee (local tax)
10.00
Total Cash Cost
1,160
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Table 6. Continued…
UNIT
TOTAL
PARTICULAR
QUANTITY
PRICE/COST
VALUE
(Pesos)
(Pesos)
Non-Cash cost
Labor (grating of coconut)
17 pcs
3.00/pc
51.00
Depreciation cost
15.00
Imputed interest of capital
116.00
Total Non-Cash cost
182.00
Total Cost
1,342.00
Net Income
863.00
Returns above Cash Cost
1,045.00
Returns to Expenses
64%
Return to labor/management
385.00
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the profitability of the tupig production,
find out the reasons of the respondents in producing tupig despite of high competition,
determine the capital needed, and find out profit derived from the amount of capital.
A total of 30 respondents were the source of information for this study. The ages
of the respondents ranged from 18 to 56 years old. Majority of them reached secondary
level and most of them were married. The respondents are engaged in tupig production as
major source of income and for some as source of additional income to augment income
of husbands while others look at it as an opportunity because of the existence of devotees
and tourist in the area since tupig is considered a take home gift “pasalubong” product.
The respondents get their capital for tupig production and selling from personal
money. Amount of capital used in production ranges from PhP 500.00 to 1,200.00 by
majority of the respondents. Amount of capital depends on the order and the peak season
of devotees and tourist going to the area.
The major factor that affect the sales turnover of tupig is the date and day, where
Wednesday, Friday, Saturday, Sunday, and holidays are the peak season of tupig. This is
the time when devotees and tourist visit the church. Bad weather also negatively affect the
sales turnover of tupig because lesser number of devotees visit the place there by
decreasing sales.
With the low cash capital requirement ranging from PhP 500.00 to 1,200.00 return
to capital is 64%.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
Conclusions
From the result, it can be concluded that production and selling of tupig in Manaoag
is a profitable enterprise, and just like other enterprises it has lean and peak season. It is a
good source of income for a family as the return to labor is high as compared to the existing
wage rate in the study area.
Recommendations
Based on the conclusion, it is recommended that producers should maintain the
quality of tupig produced in order to maintain the trust and loyalty of buyers whether these
are tourist, devotees or resident in the area. On the volume/quantity of production,
producers should consider the peak and lean season in order to avoid spoilage or waste
resulting to loss instead of profit.
Producers should also consider the sustainability of the enterprise by considering
the source of raw materials like processors should also plant banana in their backyard or
idle land so they have source of banana leaves for wrapping and reduce cost of production.
Producers should look into or consider to explore on the production of other pasalubong
products that could be produced with the available materials in the area as this would not
only increase their income but also a good alternartive market of farmers producing raw
materials, thereby helping farmers.
Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013
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Profitability of Tupig in Manaoag, Pangasinan
CORLA, MICHELLE S. APRIL 2013