BIBLIOGRAPHY PAYACDA, ELY ROSE P. APRIL...
BIBLIOGRAPHY
PAYACDA, ELY ROSE P. APRIL 2012. Assessment of the winemaking industry in Bila,
Bauko, Mountain Province. Benguet State University, La Trinidad, Benguet.
ADVISER: Hilario C. Perez, MSc.
ABSTRACT
The study was conducted to determine the socio-economic profile of the
respondents, the production and marketing practices of the industry and the problems they
encountered in the production of the wine products.The respondents were 20 wine
producers for the last 5 years.Result of the study showed that majority of the respondents
were in middle age, females, mostly married, had undergone formal education, majority
were Anglicans, Farmers, considered their business as family owned, and registered their
business.The common production practices of the respondents were: they utilized 30
kilograms of fruits in preparing 3-4 jars of wine, obtained capital from loans coming from
lending institutions, had a capital range of P26,000.00-P30,000.00, gained their knowledge
from the Department of Trade and Industry (DTI), and they had an average production of
401-500 bottles in one year.
Most of the respondents claimed that they market their products through wholesale-
retail basis; and sold their products on cash and installment basis; they priced their products
based on the prevailing of the industry.
The problems encountered by the respondents were: lack of packaging materials,
lack of capital, seasonality of fruits for processing, and high transportation cost.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
RESULTS AND DISCUSSION
Socio-economic Profile of the Respondents
Table 1 presents the socio economic profile of the respondents that include the age,
civil status, educational attainment, religion, their source of livelihood, the number of years
they were engaged in winemaking, and the type of ownership they have.
Age. The data revealed that most of the respondents belonged to the age bracket of
41-50 years old; 15% between 51-60 years old and from the age bracket of 61-70 and 30-
40 years old is 10%. This indicates that majority of the respondents are at their middle ages.
Sex. The respondents of the study were all females.
Civil status. Majority of the respondents (95%) were married and few (5%) were
widowed.
Educational attainment. As shown in Table 1, 50% of the respondents were college
graduates; while 45% finished high school; and only 5% reached elementary. This shows
that all the respondents are literate and receptive to the adoption of innovations introduced
to them.
Religion. Majority (60%) of the respondents were Anglicans while 40% are Roman
Catholics.
Livelihood source. As shown in Table 1, most (65%) of the respondents were
engaged in farming; 15% in winemaking; 10% of them were either a bank employee or a
government employee; and 10% are storekeepers. This indicates that the respondents had
other sources of income other than fruit wine production.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Number of years in winemaking. Among the 20 respondents, nine were engaged in
winemaking for the last 8 years; while seven for the last 5 years and only four for the last
10 years.
It was noted that the respondents produced cherry, roselle, rice, bugnay, santol, and
strawberry wines. Hence, all of them registered their business.
Table1. Socio-economic profile of the respondents.
PARTICULAR NO. OF RESPONDENTS PERCENTAGE (%)
Age
41 to 50
13
65
51 to 60 3
15
30 to 40
2
10
61 to 70
2
10
TOTAL
20
100
Civil Status
Married
19
95
Widowed
1
5
TOTAL
20
100
Educational Attainment
College
15
75
Secondary
4
20
Elementary
1
5
TOTAL 20
10
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Table1. Continued…
PARTICULAR
NO. OF RESPONDENTS
PERCENTAGE
N=20
(%)
Religion
Anglican 12
60
Roman Catholic
8 40
TOTAL
20
100
Livelihood Source
Farming
13
65
Winemaking
3
15
Storekeeping
2
10
Bank employee
1
5
Gov’t employee
1
5
TOTAL
20
10
No. of years in winemaking
8 years
9
45
5 years
7
35
10 years
4
20
TOTAL
20
100
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Production Practices.
Table 2 presents the production practices of the respondents in the wine industry.
Kilos of fruits needed. The quantity of fruits needed to produce 3- jars of wine is
shown in Table 2. 70% of the respondents utilized 30 kilograms of raw fruits while 20%
used 21-25 kilograms and 10% of them used 16-20 kilograms.
Source of capital. Majority (75%) of the respondents obtained their capital from the
loans coming from lending institutions and 25% used their own savings.
Capital range. The data shows the capital range needed by the respondents in their
production. Majority (50%) of them had a capital which ranges from P26, 000.00-P30,
000.00 which is the highest capital range while only few (5%) had the lowest capital range
which is P5, 000.00-P10, 000.00. this indicates that wine production really needs capital in
order to operate.
Source of knowledge in winemaking. As shown in Table 2, some of the
respondents gained their knowledge from the Department of Trade and Industry (DTI);
others from their own experiences and training and from the Department of Agriculture
(D.A); and only a few from formal education. This implies that the respondents gained
their knowledge from various sources.
Average production per bottle (750ml) in one year. The table shows that 45% of
the respondents produced an average range of 401-500 bottles which is the highest
production in one year while only few had the lowest production range which is 100-200
bottles. This indicates that the producers do not have uniform quantity of produce.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Table 2. Production practices of the wine industry.
PARTICULAR
NO. OF RESPONDENTS
PERCENTAGE
N=20
(%)
Kilos of fruit needed
30 and above
14
70
21 to 25
4
20
16 to 20
2
10
TOTAL
20
100
Source of capital
Loans from Institutions
15
75
Savings
5
25
TOTAL
20
100
Range of capital
P 26, 000.00- P 30, 000.00
10
50
P 21, 000.00- P 25, 000.00
6
30
P 11, 000.00- P 20, 000.00
3
15
P 5, 000.00- P 10, 000.00
1
5
TOTAL
20
100
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Table 2. continued…
PARTICULAR
NO. OF RESPONDENTS
PERCENTAGE
N=20
Source of knowledge
Department of Trade and Industry 10
50
Experiences and training
6
30
Department of Agriculture
3
15
Formal Education
1
5
TOTAL
20
100
Average production per bottle (750ml) in one year
401 to 500
9
45
501 to 600
6
30
201 to 300
3
15
100 to 200
1
5
301 to 400
1
5
TOTAL
20
100
Market Outlet
The wholesale-retail method is commonly practiced by most respondents as
indicated by a mean of 3.75. In this way, most of the profit will go directly to the fruit
processor. Thus, selling through wholesale-retail means more profit since the products can
be easily disposed.
Marketing through middlemen is also practiced by the producers as indicated by a
mean of 2.40. This is only practiced when middlemen come to the locality to buy the wine
products at a pick-up price.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Consignment is also practiced by the respondents. However, the respondent and the
consignee should establish a good relationship and should have mutual understanding as
to the marketing of the product.
These findings imply that the wine producers prefer to market their products
through wholesale-retail basis since based on their experience it was the most profitable
way of disposing their product compared to other methods.
Table 3. The marketing practices as to the marketing outlet of the wine products.
MARKET OUTLET MEAN DESCRIPTION
Wholesale-retail
3.75
High
Consignment
2.95
Moderate
Middlemen
2.40
Fair
Average Weighted Mean
3.03
Moderate
Legend:
Statistical Limits
Description
4.5 and above
Very High (VH)
3.5-4.49
High (H)
2.5-3.49
Moderate (M)
1.5-2.49
Fair (F)
1.49 and below
Low (L)
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Mode of Payment
Table 4 shows that the respondents preferred cash as the mode of payment of their
products as indicated by a mean of 3.70
Payment through installment basis was also practiced since cash was not always
available and the payment was taken through the sales of produce that was sold.
Other respondents had no choice but to market their products through credit. The
respondents claimed that they were encountering problems in terms of collecting when the
payment terms are all in credit. But they said that they cannot do away with credit if they
want to dispose their product.
Table 4. The Mode of payment by the respondents.
MODE OF PAYMENT MEAN DESCRIPTION
Cash
3.70
High
Installment
3.50
High
Credit
3.35
Moderate
Average Weighted Mean
3.51
High
Legend:
Statistical Limits
Description
4.5 and above
Very High (VH)
3.5-4.49
High (H)
2.5-3.49
Moderate (M)
1.5-2.49
Fair (F)
1.49 and below
Low (L)
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Ways of Pricing their Product.
Table 5 presents the pricing of the product. The respondents claimed that they price
their product based on the prevailing price which is the normal practice in business.
Some favor the mutually agreed price where the respondent negotiate with their regular
customers. And this can also be advantageous especially if the customer purchases more
products.
A few claimed that the price is sometimes dictated by the buyer which is sometimes
beyond the control of the respondent because they want to dispose their product even it
means taking the risk.
Table 5. The ways of pricing wine products by the respondents.
PARTICULAR
NO. OF RESPONDENTS
PERCENTAGE
N=20
(%)
Based on the
16
80
prevailing price
Mutually agreed
2
10
Price
Price dictated by
2
10
the buyer
TOTAL
20
100
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Table 6. The price of 750ml bottle of wine produced by the respondents.
PARTICULAR
NO. OF RESPONDENTS
PERCENTAGE
N=20
(%)
P100.00-P120.00
18
90
P80.00-P100.00
2
10
TOTAL
20
100
Price of 750 ml Bottle of Wine.
Table 6 presents how the respondent’s price a bottle of their product.
Almost all of the respondents (90%) priced their products from P100.00-P120.00 per
bottle. Although the price can increase based on the availability of capital and raw
materials.
Only a few of them sold at P80.00-P100.00. This implies that some respondents take
the risks of lowering the price just to dispose their products.
Production Problems
Table 7 reflects the problems encountered by the respondents in their production.
The lack of capital and high transportation cost were considered serious problems
since they need cash to buy all the materials needed for wine processing. Transportation
cost is also considered since they spend so much in transporting their products to other
places.
The seasonality of fruits for processing was also considered serious since it is only
on the months of June and July that these fruits are available , the respondents cannot
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
sustain their production the whole year round due to the in availability of fruits to be
processed.
The lack of packaging materials is also a serious problem due to the lack of supply
of packaging materials such as bottles, caps, and boxes sometimes.
Table 7. The problems encountered by the respondents of the winemaking industry.
PARTICULAR MEAN DESCRIPTION
Lack of capital
4.05
Serious
High transportation cost
4.05
Serious
Seasonality of fruits
3.85
Serious
for processing
Lack of packaging
3.60
Serious
materials
Average Weighted Mean
3.78
Serious
Legend:
Statistical Limits
Description
4.5 and above
Very Serious (VS)
3.5-4.49
Serious (S)
2.5-3.49
Moderately Serious (MS)
1.5-2.49
Fairly Serious (FS)
1.49 and below
Less Serious (LS)
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted from October to December 2012 in Barangay Bila,
Bauko, Mountain Province to determine the socio-economic profile of the respondents, the
production practices of the industry, their marketing practices, and the problems they
encountered in their wine production.
The findings of the study are as follows:
As to the socio-economic profile of the respondents, the findings showed that
majority of the respondents were 41-50 years old, females, majority were married, had
undergone formal education, and were Anglicans. It was also shown that majority of them
were farmers and winemaking is an alternative source of income for them. They considered
their business as family owned which was registered as their own business.
With a capital of P26, 000.00-P30, 000.00, they were able to produce 3-4 jars of
wine with the use of 30 kilograms of raw fruits. Furthermore, their knowledge in the
production of wine was obtained through the assistance from the Department of Trade and
Industry.
The marketing outlet of their produce is either through wholesale-retail method,
middlemen, and consignment basis. As to the mode of payment, either through cash or
installment basis depending on the availability of cash and based on their sales. The price
range of a bottle of their produce ranges from P100.00-P120.00 per bottle and they based
their price from the prevailing price of the industry.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
On the production problems, the most common problems encountered by the
respondents were lack of packaging materials, lack of capital, seasonality of fruits for
processing, and high transportation cost.
Conclusions
Based on the findings of the study, the following conclusions were drawn:
1. The respondents were in their middle age females, mostly married, had undergone
formal education, they were Anglicans, farmers, considered their business as family
owned, which was registered as their own business, and winemaking is their alternative
source of income.
2. Winemaking industry considers a big capital and is dependent on the availability
of fruits to process.
3. The winemaking industry markets their products through wholesale-retail basis
and adopts cash and installment as their mode of payment which is dependent on the
availability of cash and based on their sales.
4. The wine industry is face by many problems which should be addressed in order
to make it a more feasible enterprise as a major source of livelihood.
Recommendations
Based on the conclusions, the following recommendations are offered:
1. Knowledge and skills on fruit wine production should be improved. Technology
on production of off season fruits to ensure an all year round supply of fruits.
2. The technology supports of the fruit wine production need to be strengthened by
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
the local government and other concerned agencies. They can offer technical assistance by
implementing training programs to enhance the capability of processors.
3. A common trading center should be established within the barangay for the wine
producers to advertise and market their products.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
LITERATURE CITED
ANDERSON, K. and M. G. LARGE 2003.The Mid-Atlantic Wine Growers Guide. North
Carolina State University, Raleigh .P. 126.
ANONYMOUS 2004.http: // www. en Wikipedia./ Fermented Beverage production.
October 16, 2011.
ARAULLO, A. 1990. Beyond Manila. PCARRD Research Highlights. UPLB College,
Los Banos, Laguna. P. 10.
BAUTISTA, O. K. 1988. Post harvest handling of fruit and vegetable in ASEAN: An
overview of current problems on fruits and vegetable Philippine Council for
Agriculture forestry and Natural Resources Research Development, Book series
No. 60.
BAWANG, S. S. 1990. Marketing operations of stall owners of Trading Post, La
Trinidad, Benguet. B.S Thesis, Benguet State University, La Trinidad
Benguet. P.4-5.
BEAZLEY, M. L. 2001. The cost growing of wine grapes in Virginia. Virginia
Cooperative Extension Publication. P.463-466
CONSOLACION, L. C. 1985. Ethnographic studies of implication for development
strategy. MSAC-NRCP Research Project, La Trinidad, Benguet. P.8.
FAR EASTERN AGRICULTURE 2002. Annual Buyer’s Guide.Far Eastern Agriculture.
27 Wilfred St. London SWIE, GPR, UK.
GUINABANG, L. I. 2005. Status of the fruit processing industry in Mountain
Province. Ph.D. Thesis. Benguet State University, La Trinidad, Benguet.
JUHLIN, R. L. 1999. Dormant pruning and training of grape vines in Virginia. Virginia
Cooperative Extension Publication.P.463
KELLER, J. M. 2002. Introduction of winemaking in Pennsylvania. Pennsylvania
Quarterly journal of studies on alcohol. Pp. 153-154
KHOLS, R. L. and D.W DOWNEY. 1998. Marketing Agricultural Product. New York
4th Edition: Macmillan Publishing Corporation.
TANDEHAHERUM, P. L. 1997. Fundamentals of marketing. 2ndEdition.New York Mc.
Grill Book Corporation Incorporated. P. 617.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
PAYACDA, ELY ROSE P. APRIL 2012. Assessment of the winemaking industry in Bila,
Bauko, Mountain Province. Benguet State University, La Trinidad, Benguet.
ADVISER: Hilario C. Perez, MSc.
ABSTRACT
The study was conducted to determine the socio-economic profile of the
respondents, the production and marketing practices of the industry and the problems they
encountered in the production of the wine products.The respondents were 20 wine
producers for the last 5 years.Result of the study showed that majority of the respondents
were in middle age, females, mostly married, had undergone formal education, majority
were Anglicans, Farmers, considered their business as family owned, and registered their
business.The common production practices of the respondents were: they utilized 30
kilograms of fruits in preparing 3-4 jars of wine, obtained capital from loans coming from
lending institutions, had a capital range of P26,000.00-P30,000.00, gained their knowledge
from the Department of Trade and Industry (DTI), and they had an average production of
401-500 bottles in one year.
Most of the respondents claimed that they market their products through wholesale-
retail basis; and sold their products on cash and installment basis; they priced their products
based on the prevailing of the industry.
The problems encountered by the respondents were: lack of packaging materials,
lack of capital, seasonality of fruits for processing, and high transportation cost.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
RESULTS AND DISCUSSION
Socio-economic Profile of the Respondents
Table 1 presents the socio economic profile of the respondents that include the age,
civil status, educational attainment, religion, their source of livelihood, the number of years
they were engaged in winemaking, and the type of ownership they have.
Age. The data revealed that most of the respondents belonged to the age bracket of
41-50 years old; 15% between 51-60 years old and from the age bracket of 61-70 and 30-
40 years old is 10%. This indicates that majority of the respondents are at their middle ages.
Sex. The respondents of the study were all females.
Civil status. Majority of the respondents (95%) were married and few (5%) were
widowed.
Educational attainment. As shown in Table 1, 50% of the respondents were college
graduates; while 45% finished high school; and only 5% reached elementary. This shows
that all the respondents are literate and receptive to the adoption of innovations introduced
to them.
Religion. Majority (60%) of the respondents were Anglicans while 40% are Roman
Catholics.
Livelihood source. As shown in Table 1, most (65%) of the respondents were
engaged in farming; 15% in winemaking; 10% of them were either a bank employee or a
government employee; and 10% are storekeepers. This indicates that the respondents had
other sources of income other than fruit wine production.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Number of years in winemaking. Among the 20 respondents, nine were engaged in
winemaking for the last 8 years; while seven for the last 5 years and only four for the last
10 years.
It was noted that the respondents produced cherry, roselle, rice, bugnay, santol, and
strawberry wines. Hence, all of them registered their business.
Table1. Socio-economic profile of the respondents.
PARTICULAR NO. OF RESPONDENTS PERCENTAGE (%)
Age
41 to 50
13
65
51 to 60 3
15
30 to 40
2
10
61 to 70
2
10
TOTAL
20
100
Civil Status
Married
19
95
Widowed
1
5
TOTAL
20
100
Educational Attainment
College
15
75
Secondary
4
20
Elementary
1
5
TOTAL 20
10
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Table1. Continued…
PARTICULAR
NO. OF RESPONDENTS
PERCENTAGE
N=20
(%)
Religion
Anglican 12
60
Roman Catholic
8 40
TOTAL
20
100
Livelihood Source
Farming
13
65
Winemaking
3
15
Storekeeping
2
10
Bank employee
1
5
Gov’t employee
1
5
TOTAL
20
10
No. of years in winemaking
8 years
9
45
5 years
7
35
10 years
4
20
TOTAL
20
100
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Production Practices.
Table 2 presents the production practices of the respondents in the wine industry.
Kilos of fruits needed. The quantity of fruits needed to produce 3- jars of wine is
shown in Table 2. 70% of the respondents utilized 30 kilograms of raw fruits while 20%
used 21-25 kilograms and 10% of them used 16-20 kilograms.
Source of capital. Majority (75%) of the respondents obtained their capital from the
loans coming from lending institutions and 25% used their own savings.
Capital range. The data shows the capital range needed by the respondents in their
production. Majority (50%) of them had a capital which ranges from P26, 000.00-P30,
000.00 which is the highest capital range while only few (5%) had the lowest capital range
which is P5, 000.00-P10, 000.00. this indicates that wine production really needs capital in
order to operate.
Source of knowledge in winemaking. As shown in Table 2, some of the
respondents gained their knowledge from the Department of Trade and Industry (DTI);
others from their own experiences and training and from the Department of Agriculture
(D.A); and only a few from formal education. This implies that the respondents gained
their knowledge from various sources.
Average production per bottle (750ml) in one year. The table shows that 45% of
the respondents produced an average range of 401-500 bottles which is the highest
production in one year while only few had the lowest production range which is 100-200
bottles. This indicates that the producers do not have uniform quantity of produce.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Table 2. Production practices of the wine industry.
PARTICULAR
NO. OF RESPONDENTS
PERCENTAGE
N=20
(%)
Kilos of fruit needed
30 and above
14
70
21 to 25
4
20
16 to 20
2
10
TOTAL
20
100
Source of capital
Loans from Institutions
15
75
Savings
5
25
TOTAL
20
100
Range of capital
P 26, 000.00- P 30, 000.00
10
50
P 21, 000.00- P 25, 000.00
6
30
P 11, 000.00- P 20, 000.00
3
15
P 5, 000.00- P 10, 000.00
1
5
TOTAL
20
100
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Table 2. continued…
PARTICULAR
NO. OF RESPONDENTS
PERCENTAGE
N=20
Source of knowledge
Department of Trade and Industry 10
50
Experiences and training
6
30
Department of Agriculture
3
15
Formal Education
1
5
TOTAL
20
100
Average production per bottle (750ml) in one year
401 to 500
9
45
501 to 600
6
30
201 to 300
3
15
100 to 200
1
5
301 to 400
1
5
TOTAL
20
100
Market Outlet
The wholesale-retail method is commonly practiced by most respondents as
indicated by a mean of 3.75. In this way, most of the profit will go directly to the fruit
processor. Thus, selling through wholesale-retail means more profit since the products can
be easily disposed.
Marketing through middlemen is also practiced by the producers as indicated by a
mean of 2.40. This is only practiced when middlemen come to the locality to buy the wine
products at a pick-up price.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Consignment is also practiced by the respondents. However, the respondent and the
consignee should establish a good relationship and should have mutual understanding as
to the marketing of the product.
These findings imply that the wine producers prefer to market their products
through wholesale-retail basis since based on their experience it was the most profitable
way of disposing their product compared to other methods.
Table 3. The marketing practices as to the marketing outlet of the wine products.
MARKET OUTLET MEAN DESCRIPTION
Wholesale-retail
3.75
High
Consignment
2.95
Moderate
Middlemen
2.40
Fair
Average Weighted Mean
3.03
Moderate
Legend:
Statistical Limits
Description
4.5 and above
Very High (VH)
3.5-4.49
High (H)
2.5-3.49
Moderate (M)
1.5-2.49
Fair (F)
1.49 and below
Low (L)
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Mode of Payment
Table 4 shows that the respondents preferred cash as the mode of payment of their
products as indicated by a mean of 3.70
Payment through installment basis was also practiced since cash was not always
available and the payment was taken through the sales of produce that was sold.
Other respondents had no choice but to market their products through credit. The
respondents claimed that they were encountering problems in terms of collecting when the
payment terms are all in credit. But they said that they cannot do away with credit if they
want to dispose their product.
Table 4. The Mode of payment by the respondents.
MODE OF PAYMENT MEAN DESCRIPTION
Cash
3.70
High
Installment
3.50
High
Credit
3.35
Moderate
Average Weighted Mean
3.51
High
Legend:
Statistical Limits
Description
4.5 and above
Very High (VH)
3.5-4.49
High (H)
2.5-3.49
Moderate (M)
1.5-2.49
Fair (F)
1.49 and below
Low (L)
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Ways of Pricing their Product.
Table 5 presents the pricing of the product. The respondents claimed that they price
their product based on the prevailing price which is the normal practice in business.
Some favor the mutually agreed price where the respondent negotiate with their regular
customers. And this can also be advantageous especially if the customer purchases more
products.
A few claimed that the price is sometimes dictated by the buyer which is sometimes
beyond the control of the respondent because they want to dispose their product even it
means taking the risk.
Table 5. The ways of pricing wine products by the respondents.
PARTICULAR
NO. OF RESPONDENTS
PERCENTAGE
N=20
(%)
Based on the
16
80
prevailing price
Mutually agreed
2
10
Price
Price dictated by
2
10
the buyer
TOTAL
20
100
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
Table 6. The price of 750ml bottle of wine produced by the respondents.
PARTICULAR
NO. OF RESPONDENTS
PERCENTAGE
N=20
(%)
P100.00-P120.00
18
90
P80.00-P100.00
2
10
TOTAL
20
100
Price of 750 ml Bottle of Wine.
Table 6 presents how the respondent’s price a bottle of their product.
Almost all of the respondents (90%) priced their products from P100.00-P120.00 per
bottle. Although the price can increase based on the availability of capital and raw
materials.
Only a few of them sold at P80.00-P100.00. This implies that some respondents take
the risks of lowering the price just to dispose their products.
Production Problems
Table 7 reflects the problems encountered by the respondents in their production.
The lack of capital and high transportation cost were considered serious problems
since they need cash to buy all the materials needed for wine processing. Transportation
cost is also considered since they spend so much in transporting their products to other
places.
The seasonality of fruits for processing was also considered serious since it is only
on the months of June and July that these fruits are available , the respondents cannot
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
sustain their production the whole year round due to the in availability of fruits to be
processed.
The lack of packaging materials is also a serious problem due to the lack of supply
of packaging materials such as bottles, caps, and boxes sometimes.
Table 7. The problems encountered by the respondents of the winemaking industry.
PARTICULAR MEAN DESCRIPTION
Lack of capital
4.05
Serious
High transportation cost
4.05
Serious
Seasonality of fruits
3.85
Serious
for processing
Lack of packaging
3.60
Serious
materials
Average Weighted Mean
3.78
Serious
Legend:
Statistical Limits
Description
4.5 and above
Very Serious (VS)
3.5-4.49
Serious (S)
2.5-3.49
Moderately Serious (MS)
1.5-2.49
Fairly Serious (FS)
1.49 and below
Less Serious (LS)
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted from October to December 2012 in Barangay Bila,
Bauko, Mountain Province to determine the socio-economic profile of the respondents, the
production practices of the industry, their marketing practices, and the problems they
encountered in their wine production.
The findings of the study are as follows:
As to the socio-economic profile of the respondents, the findings showed that
majority of the respondents were 41-50 years old, females, majority were married, had
undergone formal education, and were Anglicans. It was also shown that majority of them
were farmers and winemaking is an alternative source of income for them. They considered
their business as family owned which was registered as their own business.
With a capital of P26, 000.00-P30, 000.00, they were able to produce 3-4 jars of
wine with the use of 30 kilograms of raw fruits. Furthermore, their knowledge in the
production of wine was obtained through the assistance from the Department of Trade and
Industry.
The marketing outlet of their produce is either through wholesale-retail method,
middlemen, and consignment basis. As to the mode of payment, either through cash or
installment basis depending on the availability of cash and based on their sales. The price
range of a bottle of their produce ranges from P100.00-P120.00 per bottle and they based
their price from the prevailing price of the industry.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
On the production problems, the most common problems encountered by the
respondents were lack of packaging materials, lack of capital, seasonality of fruits for
processing, and high transportation cost.
Conclusions
Based on the findings of the study, the following conclusions were drawn:
1. The respondents were in their middle age females, mostly married, had undergone
formal education, they were Anglicans, farmers, considered their business as family
owned, which was registered as their own business, and winemaking is their alternative
source of income.
2. Winemaking industry considers a big capital and is dependent on the availability
of fruits to process.
3. The winemaking industry markets their products through wholesale-retail basis
and adopts cash and installment as their mode of payment which is dependent on the
availability of cash and based on their sales.
4. The wine industry is face by many problems which should be addressed in order
to make it a more feasible enterprise as a major source of livelihood.
Recommendations
Based on the conclusions, the following recommendations are offered:
1. Knowledge and skills on fruit wine production should be improved. Technology
on production of off season fruits to ensure an all year round supply of fruits.
2. The technology supports of the fruit wine production need to be strengthened by
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
the local government and other concerned agencies. They can offer technical assistance by
implementing training programs to enhance the capability of processors.
3. A common trading center should be established within the barangay for the wine
producers to advertise and market their products.
Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012
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Assessment of the winemaking industry in Bila, Bauko, Mountain Province |
PAYACDA, ELY ROSE P. APRIL 2012