BIBLIOGRAPHY AP-AP, MARISSA C. APRIL 2008. A...
BIBLIOGRAPHY
AP-AP, MARISSA C. APRIL 2008. A Documentation on Ube Wine Processing
Enterprise in Sablan, Benguet. Benguet State University, La Trinidad, Benguet.
Adviser: Jovita M. Sim. MSc.
ABSTRACT
This study was conducted to determine the ube wine processing and marketing
practices of the cooperative, determine the problems encountered by the cooperative,
determine the factors affecting the success of the enterprise and enumerate possible
solutions to the problems encountered by the enterprise.
This research study made use of descriptive method of research. A total of thirty
seven (37) processors served as source of information for this study.
For the processing practices, the processors apply fermentation at 30-45 degrees
celsius temperature of ube and ferment the wine for 3 to 4 months. But to increase
alcohol content of wine, they extend fermentation to 5-6 months. The cooperative is
producing 120-160 bottles of ube wine from 80-100 kilograms of ube tubers for one
preparation.
The cooperative market their ube wine produce mostly to wholesalers and
retailers from Baguio City and Manila. The ube wine were priced based on the
production cost and sold on cash basis and credit. The ube wines were transported to
market outlets through tricycle, public utility vehicles and buses.
The major problems on ube wine processing are lack of capital, no building and
lack of processing facilities. Delay of payment of wine, increasing competition and lack
of promotional activities were also the major problems encountered in marketing.
Management problems include lack of information dissemination on the activities, lack of
cooperation of members and improper payment of funds.
Possible solutions to problems suggested by respondents were access of funds
from funding agencies, attendance to conventions/conferences on managerial skills,
develop activities that motivate members to cooperate and members to more hands-on
trainings and seminars on wine processing.
Recommendations includes increase of ube wine production for unexpected
markets, conduct seminars to encourage members and officers to become more active and
responsible, look for capital build-up activities to increase capital and regional offices of
DAR and DTI should continue supporting cooperatives especially into product
development of crops.
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TABLE OF CONTENTS
Page
Bibliography…………………………………………………………………… i
Abstract………… ……………………………………………………………...
i
Table of Contents ……………………………………………………………….
iii
INTRODUCTION
Rationale of the Study……………………………………………………
1
Statement of the Study…………………………………………………...
2
Objectives of the Study…………………………………………………..
2
Importance of the Study………………………………………………….
3
Scope and Limitation of the Study……………………………………….
3
REVIEW OF LITERATURE
The Crop………………………………………………………………...
4
Importance of Yam……………………………………………………...
5
Advantages in Yam Production…………………………………………
5
Yam Processing…………………………………………………………
6
METHODOLOGY
Locale and Time of the Study…………………………………………..
8
Research Instrument……………………………………………………
8
Respondents of the Study……………………………………………...
8
Data Collection………………………………………………………...
8
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Data Analysis………………………………………………………….
10
RESULTS AND DISCUSSION
Historical Background of the Cooperative…………….........................
11
The Respondents………………………………………………………
12
Processing Practices of the Cooperative……………………………….
12
Marketing Practices of the Cooperative……………………………….
13
Processing Problems Encountered
14
by the Cooperative……………………………………………………
Marketing Problems Encountered
15
by the Cooperative…………………………………………………….
Management Problems Encountered
15
by the Cooperative…………………………………………………….
Factors Affecting the Success of the Enterprise
17
as Perceived by the Processors………………………………………...
Factors Affecting the Success of the Enterprise………………………
18
Possible Solutions to Problems Suggested
by Respondents…………………………………………………….….
20
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary…………………………………………………………….... 23
Conclusions…………………………………………………………….. 24
Recommendations……………………………………………………… 25
LITERATURE CITED………………………………………………………..
27
APPENDICES
Appendix A. Letter to the Respondents……………………………..
28
Appendix B. Survey Questionnaire………………………………….
29
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INTRODUCTION
Rationale of the Study
Yam, locally known as Ube (Discorea alata) thrives in Benguet especially in the
municipality of Sablan. Sablan is one of the smallest towns in Benguet. The Municipality
of Sablan is located at the Midwestern side of the Province of Benguet. It is bounded on
the north by Kapangan, Benguet and Burgos, La Union, on the south by Tuba and the
City of Baguio, on the eastern part by Tublay and La Trinidad, Benguet and on the west
by municipalities of Naguilian and Aringay, La Union (Caliging, 2005).
Sablan is also becoming the root crop center in the province of Benguet (Tandoc,
1994). Ube is one of the many crops that is commonly grown in the barangays of Sablan.
Sablan is one main producers of ube in Benguet (Kawili, 2007).
Sablan is basically an agricultural town. Due to its humid and temperate climate
during wet and dry seasons, it is ideal to some farming system. It is suitable for all kinds
of crops like ube and other root crops, orchard crops like coffee, santol, mango, avocado,
citrus, and some other fruits (Caliging, 2005).
Ube is usually boiled and served as snack or as substitute for rice. Others mash
and mix it with sugar and or milk. With the development of processing technology, ube is
now counted as a priority crop with potential value (Sonay, 2004).
Ube processing is one way of lengthening/prolonging the availability of this
seasonal crop for the whole year. Processed ube is kept and consumed even if it’s not in
season.
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Statement of the Problem
This study focused on the ube wine processing enterprise. Specifically, the study
aimed to answer the following questions:
1. What are the ube wine processing and marketing practices of the cooperative?
2. What are the problems encountered by the cooperative?
3. What are the factors affecting the success of the cooperative?
4. What are the suggested possible solutions to the problems encountered by the
cooperative?
Objectives of the Study
The study aimed to:
1. Determine the ube wine processing and marketing practice of the cooperative.
2. Determine the problems encountered by the cooperative.
3. Determine the factors affecting the success of the cooperative.
4. Determine the suggested possible solutions to the problems encountered by the
cooperative.
Importance of the Study
The result of the study would serve as an instrument to encourage and further
develop the potentials of a Food Processing Enterprise. It will also provide insight to
researchers, processors, trainers and some “tricks of the business” for a successful
business project. The results of the study will also provide a picture on the profile of the
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ube processing industry in Sablan. It is also expected to orient interested individuals in
ube processing. Furthermore, results can be a guide for further research and analysis.
Scope and Limitation of the Study
The study is limited in documenting the ube wine processing and marketing
practices of ube wine processing enterprise in Bayabas, Sablan, Benguet.
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REVIEW OF LITERATURE
The Crop
Yam, locally known as “ube” (Discorea alata) is a tuber crop under Dioscoreacea
family. It is a herbaceous climber and slender twining crop that needs trellis to serve as
stand support (Sonay, 2004). Yam is also defined as a twining tuber with winged vines
and petioles, and heart shaped leaves (Sim and Meldoz, 1998).
Ube or water yam is a vine which produces both aerial tubers called bulbils and
underground tubers or roots. The bulbils, weighing a few grams to over a kilogram, come
out of the leaf axile 3 months after planting. On the other hand, the underground tuber,
weighing from one kilogram to six kilograms can be harvested six (6) months after
planting (Caliging, 2005).
Ube is usually grown in small patches as an intercrop to highland rice and other
root crops. Its tubers are mainly used in the preparation of food delicacies such as ice
cream, candies, jam, and bakery products (Sonay, 2004).
During harvest season, a spade and crowbar “bareta” are needed to dig out the
tubers. The tubers come in different shapes and sizes depending on the variety (Tandoc,
1994). This maybe globular, long, flattened or palmate shape, but generally large in size.
Yam tubers appear in two colors. These maybe white or purple depending again
on variety. The kinampay variety is purely purple while others are a mixture of white and
purple (Sonay, 2004).
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Importance of Yam
Yam is valued for its nutritional value as a source of starch, carbohydrates,
vitamin C and amino acids. It also has pharmaceutical conditions in the field of medicine
(Tandoc, 1994). In the Philippines, it is grown as staple food or substitute for rice mostly
in the Northern Luzon regions.
Ube is relished by most Filipinos who usually grow it as a backyard crop. Ube has
a fair amount of iron and has been found to be a good source of vitamins B and C and a
substantial amount of minerals. Ube is very variable in size and vigor (Jamora, 1975).
Market demand for ube is very high. Yam has a potential value in the processing
industry. It is processed into flour, crisps, chips, and flakes, etc. (Sonay, 2004). Yam
tubers are used mainly in the preparation of food delicacies such as jams, candies and ice
cream or bakery product additives (Sim and Meldoz, 1998).
Yam flour has high amounts of energy and iron, moderate amount of protein and
low calorie and fat contents. The flour can be made into “ube” cakes, break, ice cream,
muffin, tart, shakes, juice drinks, coolies, candies, haleya or paste, oriental dish, natural
and healthy food coloring and dietary supplements (Sonay, 2004).
Advantages in Yam Production
Ubi thrives anywhere in the Philippines and in wide range of soil types of
elevation because it can tolerate adverse conditions such as droughts, and pest
infestations (Sonay, 2004). Single yield harvests are satisfactory even without staking or
applying fertilizers. The tubers have relatively highly matter content at 40% and can be
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stored without refrigeration. The crop can be intercropped with other root crops like
sweetpotato and ginger (Sonay, 2004).
Ube can be grown anytime of the year. But for the best result, planting should be
done at the beginning or just after the rainy season where it can obtain all the moisture it
needs for the growth (Tandoc, 1994).
Yam can be processed into a variety of marketable products such as food
flavoring, yam powder and preservatives. To date, yam production has a potential in the
national market because big volumes are demanded by ice cream manufacturers and
small scale industries (Sonay, 2004).
Yam Processing
In the Cordillera, “ube” is usually boiled and serve as food eaten as snack or as
substitute for rice. Others mash and mix it with sugar and or milk with the development
of processing technology, ube is now counted as a priority crop with processing potential.
The ube processing is one way of lengthening the availability of this seasonal crop for the
whole year (Sonay, 2004).
Godwin (2000), estimated 30% of the harvested yam tubers are wasted due to
non-processing and non-preservation. Thus, researches are conducted to find means to
increase output as well as provide good quality finished products from yam. One of
which is through processing that adds value to the tuber before it is exported to enhance
its economic value (Sonay, 2004).
The suitability also of yam to be preserved can help stabilize the prices during off
harvest seasons. It reduces post harvest and transportation cost and enables the farmer to
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grow small tuber varieties that thrives in less fertile soils and reduces labor cost and
management (Vernier, 1998).
According to Salda (1999), ube flour is now a growing market demand and was
found to be a good partial substitute to wheat flour. Based on studies, 50-100%
substitution was possible in the preparation of baked products like pancakes, cupcakes,
cheese cracker, cookies, doughnut, fried cheese sticks, cinnamon, and ube rolls,, buter
cake, pandesal, muffins, soy sauce, puffed products, polvorons, pastilles, haleya, tarts,
candies and candy coating, shakes, juice drinks, and other oriental dishes (Sonay, 2004).
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METHODOLOGY
Locale and Time of the Study
The study was conducted in the municipality of Sablan, specifically in Barangay
Bayabas Province of Benguet. This area is where the processing enterprise stands. The
study was conducted on December 2007 to January 2008.
Research Instrument
An interview schedule was prepared and was used in collecting data and relevant
informations. Questionnaires were developed and distributed to the respondents to
supplement the personal interview.
Initial interviews with some key informant interviewee were done in furnishing
the realization of the thesis proposal.
Respondents of the Study
The respondents of the study were the ube processors in Bayabas, Sablan,
Benguet. There were 37 members that were selected at random from the list of members
of the enterprise-cooperative firm.
Data Collection
Primary data were gathered through personal interview with the used of open and
close ended questionnaire. Secondary data were gathered through library research. These
tools helped the researcher to come up in an accurate generalization and conclusions in
solving the proposed study.
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Figure 1. Map of study area
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Data Analysis
The study make used of the descriptive method of research which dealed more on
fact-finding with adequate analysis and interpretation. The data obtained were
consolidated, categorized and tabulated. Descriptive statistics such as percentage and
frequency counts were employed to interpret the results.
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RESULTS AND DISCUSSION
Historical Background of the Enterprise
Kayabang Multipurpose Cooperative (KMPC) or the Ube Wine Processing
Enterprise started when the local government of Sablan gave financial assistance to
cooperatives. The KMPC was conceptualized in 2003 thru the leadership of Mr. Eugenio
Cales, a member of the barangay council. It started with thirty two (32) initial members
mostly farmers of Barangay Bayabas. That same year, the cooperative was registered
under Reg. no. CEO 1208 with the Cooperative Administrative Office (CAO). It started
with fund given by the local government and the one thousand pesos (Php 1,000) initial
share capital contribution from each member (Personal Communication, Mr. Ben Lorena,
2007).
To help the shareholders, the cooperative started to sell farm inputs like fertilizer
and pesticide. The members were allowed to pay their credits after harvest. But this
didn’t prosper for long due to unpaid debts which caused the cooperative to stop its
operations in the meantime.
In 2005, the cooperative entered into Food Processing Industry. They have
thought of processing ube. The cooperative tapped the support/assistance of the
Department of Agrarian Reform (DAR) and the Department of Trade and Industry (DTI)
for them to adopt the ube wine processing technology. The members of the cooperative
had undergone workshop, seminar and hands-on training on ube wine processing. The
same year the cooperative started processing ube wine. Temporarily, the production site
was at the residence of the appointed secretary.
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The following year the cooperative joined the nationwide competition on Best
Ube Food Products during the 12th anniversary of the CARP-Philippine Fruits and
Vegetables, Inc. in Manila. In the search for Best Product, the cooperative won the title
“Best Rookie Food Product of the Year” for their ube wine. This was featured in media.
They have also joined the 2006 Adivay Trade Fair to further promote their product.
The cooperative also tried to process other products. The cooperative is also into
product development of crops grown in the area such as banana and pineapple. The
cooperative have tried processing banana vinegar, pineapple vinegar and ube candy.
The cooperative have tried requesting a building for the production site and is
under negotiation with the national government. Today KMPC has a total membership of
64.
The Respondents
The respondents of the study were the members of the Ube Wine Processing
Enterprise. There were thirty-seven (37) members interviewed. These were the initial
members of the cooperative.
Processing Practices
The Ube Wine Processing Enterprise process 80-100 kilograms of ube in one
preparation. The violet variety of ube such as kinampay, deking and sampiro is used in
ube wine making. The cooperative used the violet variety to produce red colored wine.
Sim (2007), mentioned, the variety affects the quality of the product.
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The steps in ube wine processing are as follows: first, 1) the ube tubers are
cleaned, cubed and boiled. The ube cubes were boiled for 25 minutes. The ratio of
chopped ube to water is 20 kilos to 44 liters of water. After boiling, the ube juice is
cooled, strained and placed in a jar then mixed with 12 kilos brown sugar and 4 teaspoon
yeast. After mixing, the jar will be covered with cloth and let it stand for 14 days.
Fermentation is applied at 30-45 degrees celsius temperature of ube. After 2 weeks, the
wine is transferred to a transparent plastic jar for aging fermentation of wine. Here, the
jar is connected with hose used for filtration. The wine is packed/bottled after 3-4
months. But to increase alcohol content of wine, they extend fermentation for 5-6
months. The bottles used were sterilized/boiled for 20 minutes. In one preparation, 120-
160 bottles (750 ml.) of ube wine were usually produced.
Marketing Practices
Ube wine marketing practices covers some information on market outlets of ube
wine, types of buyers, method of selling and transporting the products and pricing.
Market
outlets. The ube wines were largely disposed to store owners in the
locality and to direct consumers. They also have big markets from Baguio City
middlemen and from Manila which they met during the Search for Best Ube Food
Products and with the help of the media in promoting their product. They also sell during
fiestas like Adivay and Sablan Foundation Day, trade fairs/market encounters to further
promote their product. The enterprise produces and increase production during these
occassions.
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Types of buyers. The ube wine were largely sold to wholesalers and retailers from
Manila and Baguio City. Consumers also buy from the enterprise directly to get a lower
price of the product. Members of the cooperative also buy wine for consumption
especially during special occasions and also sell to friends to promote the product.
Method of selling. The study shows that there were three methods of selling
practiced by the enterprise; cash, credit and consignment. The ube wine were sold on
cash basis. They also consider credit but should be paid within a week. They sell on
consignment to middlemen.
Methods of transporting. Tricycle is widely used in transporting their ube wine
product to market outlets within the area. For outlets outside the area like Baguio City
and Manila, they used public utility vehicles (PUV), private vehicles and bus. They
transport product in bulk to reduce transportation cost.
Pricing. Pricing is the manual or automatic process of applying prices to purchase
and sales orders. There were several methods used in pricing a product. For the
cooperative, they priced the ube wine based on the production cost plus 20% mark-up.
They consider the cost/price of the raw materials, the overhead expenses and other
expenses incurred.
Processing Problems Encountered by the Enterprise
Table 1 presents the important problems encountered in ube wine processing.
Major problems identified by the respondents includes lack of capital (89.19%), no
building (83.78%), lack of facilities (78.38%), insufficient training in wine processing
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(40.54%), availability of the processors (35.14%), availability of raw materials (21.62%),
and quality of ube tubers because of pests and diseases (18.92%).
Marketing Problems Encountered by the Enterprise
Table 2 presents the problems encountered in marketing. There were six problems
enumerated by the respondents. Delay of payment (83.78%), increasing competition
(70.27%) and lack of promotional activities (51.35%) were the major problems
encountered by the enterprise. Some of the respondents also mentioned the poor farm-to-
market road (35.14%), high transportation cost (24.32%), and low buying price (13.52%)
as some problems in marketing.
Table 1. Problems encountered in ube wine processing
PARTICULARS FREQUENCY
PERCENTAGE
(F)
(%)
Lack of capital
33
89.19
Lack of facilities
29
78.38
Quality of raw materials
7
18.92
Insufficient training in wine processing
15
40.54
Availability of the processors
13
35.15
Availability of raw materials
8
21.62
No building
31
83.78
*Multiple response
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Table 2. Problems encountered in marketing
PARTICULARS FREQUENCY
PERCENTAGE
(F)
(%)
Delay of payment
31
83.78
Low buying price
5
13.51
High transportation cost
9
24.32
Poor farm-to-market road
13
35.14
Increasing competition
26
70.27
Lack of promotional activities
19
51.35
*Multiple response
Management Problems Encountered by the Enterprise
Table 3 shows the management problems encountered by the enterprise. There
were 7 problems enumerated by the respondents. These were the lack of information
dissemination of the activities (67.16%), lack of cooperation (64.86%), improper
management of funds (62.16%), low income (45.95%), lack of qualified and competent
officers (35.14%), lack of management (29.73%) and disloyalty of the members
(13.51%).
Table 3. Management problems encountered by the cooperative
PROBLEMS FREQUENCY
PERCENTAGE
(F)
(%)
Lack of qualified and competent officers
13
35.14
Lack of cooperation
24
64.86
Lack of management
11
29.73
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Table 3. Continued…
PROBLEMS
FREQUENCY PERCENTAGE
(F)
(%)
Improper management of funds
23
62.16
Low income
17
45.95
Disloyalty of the members
5
13.51
Lack of information dissemination on the
15 67.57
activities
*Multiple response
Factors Affecting the Success of the Enterprise
as Perceived by the Processors
As mentioned by the respondents, limited/lack of capital was the major factor that
affect the success of the enterprise. Capital is the major resource for production. It is
needed for the purchase of facilities and construction of processing plant/building.
Participation of the members is another factor as mentioned by 72.97% of the
respondents. For group endeavor, participation of members is necessary. Like a
cooperative, the major ingredient is cooperation in all activities inorder to progress.
Other factors perceived by the respondents includes: technology/skills (40.54%),
availability of raw materials for processing (27.03%) and availability of varieties for
processing (18.92%). As mentioned by Sim (2007), the variety affects the quality of a
product. In her study on sweetpotato processing, the dryness and flesh color of
sweetpotato affects the texture of bread produced or wine produced from sweetpotato.
She further mentioned that purple flesh color of sweetpotato is best for wine processing
because outcome is dark red colored wine, it is a natural color. This may also be true for
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ube, a dark purple ube will produce red colored wine. Ube production is seasonal thus
production of ube wine may also be seasonal, thus, the year round supply of ube tubers is
needed for continuous and sustainable processing venture.
Factors Affecting the Success of the Enterprise
The respondents ranked the factors affecting the success of the enterprise as
shown in Table 5. Based on the ideas/analysis of the members of the enterprise, the
common factors that affects the success of the enterprise are adherence to cooperative
laws (54.05%) which was ranked number one, followed by proper record keeping
(43.24%) ranked number two, auditing has been conducted (37.84%) ranked number
three, policies are implemented (35.14%) ranked number four, efficient leaders (29.73%)
ranked number five, active participation of members (27.03%) ranked number six and
government agency facilitation (13.51%) which was ranked number seven.
Results imply that the members in the enterprise have different opinions regarding
the factors affecting the success on an enterprise.
Table 4. Factors affecting the success of the enterprise as perceived by the processors
FACTORS FREQUENCY
PERCENTAGE
(F)
(%)
Availability of supply
10
27.03
Availability of varieties for processing
7
18.92
Technology/skill in processing
15
40.54
Capital 33
89.19
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Table 4. Continued...
FACTORS FREQUENCY
PERCENTAGE
(F)
(%)
Participation of the members
27
72.97
Availability of infrastructures and
31 83.78
facilities
*Multiple response
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Table 5. Factors affecting the success of the enterprise
RATING
PARTICULARS
R1
%
R2
%
R3
%
R4
%
R5
%
R6
%
R7
%
Adherence to cooperative laws
20 54.05 2 5.40 - - 6 16.22 5 13.51 1 2.70 3 8.11
Proper
record
keeping
- - 16 43.24 9 24.32 3 8.11 5 13.51 2 5.41 2 5.41
Auditing
has
been
conducted
2 5.41 6 16.22 14 37.84 4 10.81 7 18.92 4 10.81 - -
Policies
are
implemented
4 10.81 3 8.11 4 10.81 13 35.14 7 18.92 6 16.32 - -
Efficient
leaders
1 2.70 5 13.51 7 18.92 9 24.32 11 29.73 4 10.81 - -
Active participation of the members
3
8.11
7 18.92 3 8.11 5 13.51 9 24.32 10 27.03 2 5.41
Government agency facilitation
-
-
-
- - - 1 2.70 1 2.70 5 13.51 3 8.11
*Multiple response
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Possible Solutions to Problems Suggested
by Respondents
Table 6 shows the suggestions/possible solution suggested by the respondents to
address the problems encountered by the enterprise. There were six (6) problems noted
below including the different possible solutions mentioned by the members of the
enterprise. The suggested possible solutions on lack of capital were access/solicit funds
from funding agencies/offices (51.35%), members will contribute additional share capital
(27.03%), develop capital build-up activities (18.92%) and look for other source of
income (2.70%). There were also three (3) possible solutions on the lack of cooperation
enumerated by the respondents which develop more activities to motivate members of the
cooperative to cooperate (21.62%). Two possible solutions on lack of technology/skill in
processing are consult the concerned agencies for more updates on technologies (70.27%)
and members to attend more seminars and trainings on ube wine processing (24.32%).
Possible solutions to problem on lack of qualified and competent officers are officers’
attendance to conferences/conventions on managerial skills (40.54%) and officers to
undergo trainings/seminars on management skills (13.51%) and elect competent and
qualified officers (8.11%). The possible solutions suggested by respondents on
availability of supply are coordinate with farmers who are planting ube (35.14%) and
members of the enterprise should encouraged to plant ube (10.81%). The problem on
improper payment of fund is on regular collection of payments (24.32%).
Most of the respondents have limited ideas/opinions/analysis on giving possible
solutions to problems.
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Table 6. Possible solutions to problems suggested by respondents to address problems
encountered by the enterprise
PARTICULARS SOLUTIONS F
%
Lack of Capital
Members will contribute additional share
10
27.03
capital
Access/Solicit funds from funding
19
51.35
agencies/offices
Look for other source of income
1
2.70
Develop capital build-up activities
7
18.92
Lack of Qualified
Officers will attend more
and Competent
conventions/conferences that deals with
Officers
managerial skills
15
40.54
Elect competent and qualified officers
3
8.11
Officers will undergo trainings/seminars on
5
13.51
management skills
Lack of
Develop more activities to motivate
Cooperation
members to cooperate
17
45.95
Regular meetings will be done to update
the members on the developments of the
cooperative
12
32.43
Encourage members to cooperate
8
21.62
Improper Payment
Regular collection of Payments
9
24.32
of funds
Availability of the
Coordinate with farmers planting ube
13
35.14
Supply
Members of the enterprise will be
encouraged to plant ube
4
10.81
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Table 6. Continued…
PARTICULARS SOLUTIONS
F
%
Lack of
Members will attend more seminars
9
24.32
Technology/Skill in a inings on ube wine processing
Processing
Consult the concerned agencies for more
26
70.27
updates on technologies
*Multiple response
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the ube wine processing and marketing
practices of the cooperative, determine the problems encountered by the cooperative,
factors affecting the success of the enterprise and enumerate possible solutions to the
problems encountered by the enterprise. A total of thirty seven (37) processors of the ube
wine processing enterprise from Bayabas, Sablan, Benguet served as respondents. The
respondents were personally interviewed with the aid of open and close ended
questionnaire. The data obtained were consolidated, categorized and tabulated using
descriptive statistics such as frequency countages and percentage. Majority of them were
the initial members of the cooperative.
For the processing practices, they apply fermentation on a 30-45˚C temperature
and usually ferment the wine up to 3-4 months but to increase alcohol content of wine,
they extend to 5-6 months of fermentation. The cooperative is producing 120-160 bottles
(750 ml) of ube wine from 80-100 kilograms of ube tubes for every preparation.
The cooperative market their ube wine mostly to wholesalers and retailers from
Baguio City and Metro Manila. Individual consumers and members of the cooperative
also buy from the enterprise for consumption. The ube wine were priced based on the
production cost and sold on cash basis on credit. The ube wine were transported to
market outlets inside the area through tricycle and public utility jeepneys (PUJ), private
vehicles and bus to market outlets outside the area.
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The respondent has identified seven main problems in processing. These were the
lack of capital, no building, lack of facilities, insufficient training in wine processing, and
availability of the processors, availability of raw materials and quality of raw materials.
The marketing problems mentioned by the respondents were delay of payment,
increasing competition, lack of promotion, poor farm-to-market road, high transportation
cost and low buying price.
The respondents have also identified some management problems encountered by
the cooperative. These were the lack of information dissemination on the activities, lack
of cooperation improper payment of funds, low income, lack of qualified and competent
officers, lack of management and disloyalty of the members.
There were six identified factors affecting the success of the enterprise as
perceived by the processors which includes capital, availability of infrastructures
facilities and participation of members, technology/skill in processing, availability of
supply and availability of varieties for processing.
Conclusions
Based on the results of the study, the following conclusions were drawn:
1. The cooperative is producing 120-160 bottles (750 ml.) of ube wine in every
preparation.
2. The ube wine were mostly sold to middlemen and priced based on the
production cost. The ube wine were sold on cash and credit.
3. Limited/lack of capital was a major processing problem encountered by the
enterprise.
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4. The cooperative encountered problems regarding the collection of payments of
the product from traders. Increasing competition and lack of promotional
activities is also a problem to the cooperative.
5. Lack of information dissemination of the activities, lack of cooperation and
improper payment of funds were the major management problems
encountered by the enterprise.
6. The three main factors affecting the success of the enterprise were availability of
capital, participation of the members, and availability of infrastructure and
facilities.
Recommendations
Based on the conclusion, the following recommendations were made:
1. The cooperative should increase ube wine production to have available stocks.
2. Training should be provided to the processors with emphasis on marketing
and processing.
3. The cooperative should look for capital build-up programs and activities to
increase income.
4. The cooperative should develop more promotional activities to reduce the
problem on competition.
5. The cooperative should conduct seminars designed to encourage officers and
members especially those who do not perform their functions well to become
more active and responsible.
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6. The regional offices of DAR and DTI should continue assisting cooperatives
especially into product development of crops grown in the locality.
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LITERATURE CITED
ANONYMOUS. 1986. Agriculture and Fisheries Information Service, DA RFU CAR,
Regional Agriculture Fisheries Information Division, Guisad, Baguio City.Pp 5-
6.
CALIGING, E.S. 2005. History of Sablan: Municipal Planning and Development Office.
Pp
1-2.
CALIGING, E.S. 2005. Sablan Socio-Economic Profile: Municipal Planning and
Development Office. Pp 2-4.
GODWIN, U. 2000. Setting Up Yams for Producing Exports. Business This Day.
(Article). http:// www.thisdayonline.com/business/20031119bus30.html.
JAMORA, D.S. 1975. Root Crops for profit: Agrix Publishing Corporation
Rodrigues Cor. Gilmore Ave., Quezon City. Pp 2-3.
KAWILI. Personal Communication: October, 2007.
LORENA, B. Personal Communication: December, 2007.
SALDA, V.B. 1999. Ethnobotany and Food Use of Philippine Highland Yams. Ph.D.
Thesis. The University of Hongkong. Pp. 4-9.
SIM, J. M. 2007. In: PARRFI Professorial Chair Papers 1992-2006.Philippine
Agriculture and Resources Research Foundation Inc. Los Banos, Laguna. Pp.
222-223.
SIM, J. M.AND D.T. MELDOZ .1998. Nutritional Composition of Potato, Sweet potato,
Yam, Taro and Cassava, NPRCRTC BSU, L.T.B.
SONAY, C.Q. 2004. Yam Processing Technologies used at the NPRCRTC,
Benguet State University. B.S. Thesis. Benguet State University, La Trinidad,
Benguet. Pp 4- 8; 13-15.
TANDOC, A.M. 1994. An Assessment of the Cultural Management Practices of Ube
Production in Sablan, Benguet.B.S.Thesis. Benguet State University, La Trinidad,
Benguet. Pp 1-2; 5.
VERNIER,P. 1998. Yam Chip Production in West Africa. Postharvest Systems.
http://www.iita.org/info/ph2/feb.
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APPENDIX A
Letter to the Respondents
Benguet State University
Department of Agricultural Economics
and Agribusines Management
College of Agriculture, Benguet State University
La Trinidad, Benguet
December, 2007
Dear Respondents,
Warm greetings!
I am a graduating student of Benguet State University taking up Bachelor of
Science in Agribusiness major in Enterprise Management. As part of the course
requirement, I am presently conducting an undergraduate research study entitled “A
DOCUMENTATION ON UBE WINE PROCESSING ENTERPRISE IN SABLAN,
BENGUET”.
In this connection, may I ask permission to document the processing and
marketing practices of the Kayabang Multi-purpose Cooperative. Rest assured that all the
information you will provide shall be treated with outmost confidentiality.
Your favorable approval is highly appreciated.
Thank you for your kindness and cooperation. May God bless You!
Sincerely yours,
MARISSA C. AP-AP
Researcher
Noted by:
JOVITA M. SIM
Adviser
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APPENDIX B
Survey Questionnaire
A. Profile of the Respondents
1. Name: ________________________________
B. Problems Encountered in Processing
___ Lack of Capital
___ Lack of Facilities
___ Occurrence of Pest and Diseases
___ Insufficient Training in Wine Processing
___ Availability of the Processors
___ Availability of the Raw Materials
___ Lack of Processing Building
___ Others specify: _________________________________________
C. Problems Encountered in Marketing
___ Delay of Payment
___ Low Buying Price
___ High Transportation Cost
___ Poor to Farm-to-Market Road
___ Increasing Competition
___ Lack of Promotion
___ Others specify: _________________________________________
D. What are the Problems encountered by the enterprise?
___ Lack of Qualified and Competent Officers
___ Lack of Cooperation
___ Lack of Management
___ Improper Payment of Funds
___ Availability of Supply
___ Lack of Knowledge/Skill in Processing
___ Lack of Capital/ Low Income
___ Disloyalty of the Members
___ Lack of Information Dissemination
___ Availability of the Processors
___ Others specify: _________________________________
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E. Factors Affecting the Success of the Enterprise (pls. rank them from the most
grievous factors to the least)
FACTORS
RANK
1. Efficient Leaders
______
2. Proper Record Keeping
______
3. Auditing has been conducted
______
4. Policies are implemented
______
5. Active Participation of the members
______
6. Adherence to Cooperative Laws
______
7. Government Agency Facilitation
______
8. Others (pls. specify) ____________________
______
________________________________
______
F. Factors Affecting the Success as Perceived by the Processors
___ Availability of Supply
___ Availability of Varieties for Processing
___ Lack of Technology/Skill in processing
___ Lack of Capital
___ Lack of Processing Building
___ Active Participation of Members
___ Others specify: _________________________________
G. What possible solutions to problems do you suggest?
PROBLEMS
: SOLUTIONS
Lack of Funds/Capital
: _________________________
Lack of Qualified and Competent Officers : _________________________
Lack of Cooperation
: _________________________
Improper Payment of Funds
: _________________________
Availability
of
Supply
: _________________________
Lack of Technology/Skill in processing : _________________________
Others specify:________________________: _________________________
THaNk yOu vErY mUcH!!!
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Guide Questions
A. Processing Practices
a. How may kilos you need in one operation? ___________________
b. What specific temperature to apply fermentation? ______________
c. How many months do you ferment the wine? _________________
d. How many bottles could you produce in one preparation? _______
B. Marketing Practices
a. Market Disposing Place of Ube Wine
___ Outside the locality: ___ Baguio
___ Manila
___ Others specify: __________________
___ Inside the locality
b. To whom do you sell wine?
___ Wholesaler
___ Middlemen
___ Retailers
___ Others specify: __________________
c. What is the method of sale? _______________________________
___ Cash
___ Barter
___ Credit
___ Others specify: __________________
d. Where do you dispose your product?
___ Municipal Public Market
___ Storeowners
___ Others specify: ______________________________________
e. What are the methods used in transporting your product?
___ Passenger’s jeep ___ Tricycle
___ Owner type jeep ___ Others specify: ___________________
f. How do you price the product you sell?
___ Based on the prevailing market price
___ Based on the price dictated by the buyer
___ Mutually agreed price
___ Based on the cost of raw materials
___ Others specify: _______________________________________
A Documentation on Ube Wine Processing Enterprise
in Sablan, Benguet / Marissa C. Ap-ap. 2008
AP-AP, MARISSA C. APRIL 2008. A Documentation on Ube Wine Processing
Enterprise in Sablan, Benguet. Benguet State University, La Trinidad, Benguet.
Adviser: Jovita M. Sim. MSc.
ABSTRACT
This study was conducted to determine the ube wine processing and marketing
practices of the cooperative, determine the problems encountered by the cooperative,
determine the factors affecting the success of the enterprise and enumerate possible
solutions to the problems encountered by the enterprise.
This research study made use of descriptive method of research. A total of thirty
seven (37) processors served as source of information for this study.
For the processing practices, the processors apply fermentation at 30-45 degrees
celsius temperature of ube and ferment the wine for 3 to 4 months. But to increase
alcohol content of wine, they extend fermentation to 5-6 months. The cooperative is
producing 120-160 bottles of ube wine from 80-100 kilograms of ube tubers for one
preparation.
The cooperative market their ube wine produce mostly to wholesalers and
retailers from Baguio City and Manila. The ube wine were priced based on the
production cost and sold on cash basis and credit. The ube wines were transported to
market outlets through tricycle, public utility vehicles and buses.
The major problems on ube wine processing are lack of capital, no building and
lack of processing facilities. Delay of payment of wine, increasing competition and lack
of promotional activities were also the major problems encountered in marketing.
Management problems include lack of information dissemination on the activities, lack of
cooperation of members and improper payment of funds.
Possible solutions to problems suggested by respondents were access of funds
from funding agencies, attendance to conventions/conferences on managerial skills,
develop activities that motivate members to cooperate and members to more hands-on
trainings and seminars on wine processing.
Recommendations includes increase of ube wine production for unexpected
markets, conduct seminars to encourage members and officers to become more active and
responsible, look for capital build-up activities to increase capital and regional offices of
DAR and DTI should continue supporting cooperatives especially into product
development of crops.
ii
TABLE OF CONTENTS
Page
Bibliography…………………………………………………………………… i
Abstract………… ……………………………………………………………...
i
Table of Contents ……………………………………………………………….
iii
INTRODUCTION
Rationale of the Study……………………………………………………
1
Statement of the Study…………………………………………………...
2
Objectives of the Study…………………………………………………..
2
Importance of the Study………………………………………………….
3
Scope and Limitation of the Study……………………………………….
3
REVIEW OF LITERATURE
The Crop………………………………………………………………...
4
Importance of Yam……………………………………………………...
5
Advantages in Yam Production…………………………………………
5
Yam Processing…………………………………………………………
6
METHODOLOGY
Locale and Time of the Study…………………………………………..
8
Research Instrument……………………………………………………
8
Respondents of the Study……………………………………………...
8
Data Collection………………………………………………………...
8
iii
Data Analysis………………………………………………………….
10
RESULTS AND DISCUSSION
Historical Background of the Cooperative…………….........................
11
The Respondents………………………………………………………
12
Processing Practices of the Cooperative……………………………….
12
Marketing Practices of the Cooperative……………………………….
13
Processing Problems Encountered
14
by the Cooperative……………………………………………………
Marketing Problems Encountered
15
by the Cooperative…………………………………………………….
Management Problems Encountered
15
by the Cooperative…………………………………………………….
Factors Affecting the Success of the Enterprise
17
as Perceived by the Processors………………………………………...
Factors Affecting the Success of the Enterprise………………………
18
Possible Solutions to Problems Suggested
by Respondents…………………………………………………….….
20
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary…………………………………………………………….... 23
Conclusions…………………………………………………………….. 24
Recommendations……………………………………………………… 25
LITERATURE CITED………………………………………………………..
27
APPENDICES
Appendix A. Letter to the Respondents……………………………..
28
Appendix B. Survey Questionnaire………………………………….
29
iv
INTRODUCTION
Rationale of the Study
Yam, locally known as Ube (Discorea alata) thrives in Benguet especially in the
municipality of Sablan. Sablan is one of the smallest towns in Benguet. The Municipality
of Sablan is located at the Midwestern side of the Province of Benguet. It is bounded on
the north by Kapangan, Benguet and Burgos, La Union, on the south by Tuba and the
City of Baguio, on the eastern part by Tublay and La Trinidad, Benguet and on the west
by municipalities of Naguilian and Aringay, La Union (Caliging, 2005).
Sablan is also becoming the root crop center in the province of Benguet (Tandoc,
1994). Ube is one of the many crops that is commonly grown in the barangays of Sablan.
Sablan is one main producers of ube in Benguet (Kawili, 2007).
Sablan is basically an agricultural town. Due to its humid and temperate climate
during wet and dry seasons, it is ideal to some farming system. It is suitable for all kinds
of crops like ube and other root crops, orchard crops like coffee, santol, mango, avocado,
citrus, and some other fruits (Caliging, 2005).
Ube is usually boiled and served as snack or as substitute for rice. Others mash
and mix it with sugar and or milk. With the development of processing technology, ube is
now counted as a priority crop with potential value (Sonay, 2004).
Ube processing is one way of lengthening/prolonging the availability of this
seasonal crop for the whole year. Processed ube is kept and consumed even if it’s not in
season.
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Statement of the Problem
This study focused on the ube wine processing enterprise. Specifically, the study
aimed to answer the following questions:
1. What are the ube wine processing and marketing practices of the cooperative?
2. What are the problems encountered by the cooperative?
3. What are the factors affecting the success of the cooperative?
4. What are the suggested possible solutions to the problems encountered by the
cooperative?
Objectives of the Study
The study aimed to:
1. Determine the ube wine processing and marketing practice of the cooperative.
2. Determine the problems encountered by the cooperative.
3. Determine the factors affecting the success of the cooperative.
4. Determine the suggested possible solutions to the problems encountered by the
cooperative.
Importance of the Study
The result of the study would serve as an instrument to encourage and further
develop the potentials of a Food Processing Enterprise. It will also provide insight to
researchers, processors, trainers and some “tricks of the business” for a successful
business project. The results of the study will also provide a picture on the profile of the
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ube processing industry in Sablan. It is also expected to orient interested individuals in
ube processing. Furthermore, results can be a guide for further research and analysis.
Scope and Limitation of the Study
The study is limited in documenting the ube wine processing and marketing
practices of ube wine processing enterprise in Bayabas, Sablan, Benguet.
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REVIEW OF LITERATURE
The Crop
Yam, locally known as “ube” (Discorea alata) is a tuber crop under Dioscoreacea
family. It is a herbaceous climber and slender twining crop that needs trellis to serve as
stand support (Sonay, 2004). Yam is also defined as a twining tuber with winged vines
and petioles, and heart shaped leaves (Sim and Meldoz, 1998).
Ube or water yam is a vine which produces both aerial tubers called bulbils and
underground tubers or roots. The bulbils, weighing a few grams to over a kilogram, come
out of the leaf axile 3 months after planting. On the other hand, the underground tuber,
weighing from one kilogram to six kilograms can be harvested six (6) months after
planting (Caliging, 2005).
Ube is usually grown in small patches as an intercrop to highland rice and other
root crops. Its tubers are mainly used in the preparation of food delicacies such as ice
cream, candies, jam, and bakery products (Sonay, 2004).
During harvest season, a spade and crowbar “bareta” are needed to dig out the
tubers. The tubers come in different shapes and sizes depending on the variety (Tandoc,
1994). This maybe globular, long, flattened or palmate shape, but generally large in size.
Yam tubers appear in two colors. These maybe white or purple depending again
on variety. The kinampay variety is purely purple while others are a mixture of white and
purple (Sonay, 2004).
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Importance of Yam
Yam is valued for its nutritional value as a source of starch, carbohydrates,
vitamin C and amino acids. It also has pharmaceutical conditions in the field of medicine
(Tandoc, 1994). In the Philippines, it is grown as staple food or substitute for rice mostly
in the Northern Luzon regions.
Ube is relished by most Filipinos who usually grow it as a backyard crop. Ube has
a fair amount of iron and has been found to be a good source of vitamins B and C and a
substantial amount of minerals. Ube is very variable in size and vigor (Jamora, 1975).
Market demand for ube is very high. Yam has a potential value in the processing
industry. It is processed into flour, crisps, chips, and flakes, etc. (Sonay, 2004). Yam
tubers are used mainly in the preparation of food delicacies such as jams, candies and ice
cream or bakery product additives (Sim and Meldoz, 1998).
Yam flour has high amounts of energy and iron, moderate amount of protein and
low calorie and fat contents. The flour can be made into “ube” cakes, break, ice cream,
muffin, tart, shakes, juice drinks, coolies, candies, haleya or paste, oriental dish, natural
and healthy food coloring and dietary supplements (Sonay, 2004).
Advantages in Yam Production
Ubi thrives anywhere in the Philippines and in wide range of soil types of
elevation because it can tolerate adverse conditions such as droughts, and pest
infestations (Sonay, 2004). Single yield harvests are satisfactory even without staking or
applying fertilizers. The tubers have relatively highly matter content at 40% and can be
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stored without refrigeration. The crop can be intercropped with other root crops like
sweetpotato and ginger (Sonay, 2004).
Ube can be grown anytime of the year. But for the best result, planting should be
done at the beginning or just after the rainy season where it can obtain all the moisture it
needs for the growth (Tandoc, 1994).
Yam can be processed into a variety of marketable products such as food
flavoring, yam powder and preservatives. To date, yam production has a potential in the
national market because big volumes are demanded by ice cream manufacturers and
small scale industries (Sonay, 2004).
Yam Processing
In the Cordillera, “ube” is usually boiled and serve as food eaten as snack or as
substitute for rice. Others mash and mix it with sugar and or milk with the development
of processing technology, ube is now counted as a priority crop with processing potential.
The ube processing is one way of lengthening the availability of this seasonal crop for the
whole year (Sonay, 2004).
Godwin (2000), estimated 30% of the harvested yam tubers are wasted due to
non-processing and non-preservation. Thus, researches are conducted to find means to
increase output as well as provide good quality finished products from yam. One of
which is through processing that adds value to the tuber before it is exported to enhance
its economic value (Sonay, 2004).
The suitability also of yam to be preserved can help stabilize the prices during off
harvest seasons. It reduces post harvest and transportation cost and enables the farmer to
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grow small tuber varieties that thrives in less fertile soils and reduces labor cost and
management (Vernier, 1998).
According to Salda (1999), ube flour is now a growing market demand and was
found to be a good partial substitute to wheat flour. Based on studies, 50-100%
substitution was possible in the preparation of baked products like pancakes, cupcakes,
cheese cracker, cookies, doughnut, fried cheese sticks, cinnamon, and ube rolls,, buter
cake, pandesal, muffins, soy sauce, puffed products, polvorons, pastilles, haleya, tarts,
candies and candy coating, shakes, juice drinks, and other oriental dishes (Sonay, 2004).
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METHODOLOGY
Locale and Time of the Study
The study was conducted in the municipality of Sablan, specifically in Barangay
Bayabas Province of Benguet. This area is where the processing enterprise stands. The
study was conducted on December 2007 to January 2008.
Research Instrument
An interview schedule was prepared and was used in collecting data and relevant
informations. Questionnaires were developed and distributed to the respondents to
supplement the personal interview.
Initial interviews with some key informant interviewee were done in furnishing
the realization of the thesis proposal.
Respondents of the Study
The respondents of the study were the ube processors in Bayabas, Sablan,
Benguet. There were 37 members that were selected at random from the list of members
of the enterprise-cooperative firm.
Data Collection
Primary data were gathered through personal interview with the used of open and
close ended questionnaire. Secondary data were gathered through library research. These
tools helped the researcher to come up in an accurate generalization and conclusions in
solving the proposed study.
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Figure 1. Map of study area
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Data Analysis
The study make used of the descriptive method of research which dealed more on
fact-finding with adequate analysis and interpretation. The data obtained were
consolidated, categorized and tabulated. Descriptive statistics such as percentage and
frequency counts were employed to interpret the results.
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RESULTS AND DISCUSSION
Historical Background of the Enterprise
Kayabang Multipurpose Cooperative (KMPC) or the Ube Wine Processing
Enterprise started when the local government of Sablan gave financial assistance to
cooperatives. The KMPC was conceptualized in 2003 thru the leadership of Mr. Eugenio
Cales, a member of the barangay council. It started with thirty two (32) initial members
mostly farmers of Barangay Bayabas. That same year, the cooperative was registered
under Reg. no. CEO 1208 with the Cooperative Administrative Office (CAO). It started
with fund given by the local government and the one thousand pesos (Php 1,000) initial
share capital contribution from each member (Personal Communication, Mr. Ben Lorena,
2007).
To help the shareholders, the cooperative started to sell farm inputs like fertilizer
and pesticide. The members were allowed to pay their credits after harvest. But this
didn’t prosper for long due to unpaid debts which caused the cooperative to stop its
operations in the meantime.
In 2005, the cooperative entered into Food Processing Industry. They have
thought of processing ube. The cooperative tapped the support/assistance of the
Department of Agrarian Reform (DAR) and the Department of Trade and Industry (DTI)
for them to adopt the ube wine processing technology. The members of the cooperative
had undergone workshop, seminar and hands-on training on ube wine processing. The
same year the cooperative started processing ube wine. Temporarily, the production site
was at the residence of the appointed secretary.
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The following year the cooperative joined the nationwide competition on Best
Ube Food Products during the 12th anniversary of the CARP-Philippine Fruits and
Vegetables, Inc. in Manila. In the search for Best Product, the cooperative won the title
“Best Rookie Food Product of the Year” for their ube wine. This was featured in media.
They have also joined the 2006 Adivay Trade Fair to further promote their product.
The cooperative also tried to process other products. The cooperative is also into
product development of crops grown in the area such as banana and pineapple. The
cooperative have tried processing banana vinegar, pineapple vinegar and ube candy.
The cooperative have tried requesting a building for the production site and is
under negotiation with the national government. Today KMPC has a total membership of
64.
The Respondents
The respondents of the study were the members of the Ube Wine Processing
Enterprise. There were thirty-seven (37) members interviewed. These were the initial
members of the cooperative.
Processing Practices
The Ube Wine Processing Enterprise process 80-100 kilograms of ube in one
preparation. The violet variety of ube such as kinampay, deking and sampiro is used in
ube wine making. The cooperative used the violet variety to produce red colored wine.
Sim (2007), mentioned, the variety affects the quality of the product.
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The steps in ube wine processing are as follows: first, 1) the ube tubers are
cleaned, cubed and boiled. The ube cubes were boiled for 25 minutes. The ratio of
chopped ube to water is 20 kilos to 44 liters of water. After boiling, the ube juice is
cooled, strained and placed in a jar then mixed with 12 kilos brown sugar and 4 teaspoon
yeast. After mixing, the jar will be covered with cloth and let it stand for 14 days.
Fermentation is applied at 30-45 degrees celsius temperature of ube. After 2 weeks, the
wine is transferred to a transparent plastic jar for aging fermentation of wine. Here, the
jar is connected with hose used for filtration. The wine is packed/bottled after 3-4
months. But to increase alcohol content of wine, they extend fermentation for 5-6
months. The bottles used were sterilized/boiled for 20 minutes. In one preparation, 120-
160 bottles (750 ml.) of ube wine were usually produced.
Marketing Practices
Ube wine marketing practices covers some information on market outlets of ube
wine, types of buyers, method of selling and transporting the products and pricing.
Market
outlets. The ube wines were largely disposed to store owners in the
locality and to direct consumers. They also have big markets from Baguio City
middlemen and from Manila which they met during the Search for Best Ube Food
Products and with the help of the media in promoting their product. They also sell during
fiestas like Adivay and Sablan Foundation Day, trade fairs/market encounters to further
promote their product. The enterprise produces and increase production during these
occassions.
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Types of buyers. The ube wine were largely sold to wholesalers and retailers from
Manila and Baguio City. Consumers also buy from the enterprise directly to get a lower
price of the product. Members of the cooperative also buy wine for consumption
especially during special occasions and also sell to friends to promote the product.
Method of selling. The study shows that there were three methods of selling
practiced by the enterprise; cash, credit and consignment. The ube wine were sold on
cash basis. They also consider credit but should be paid within a week. They sell on
consignment to middlemen.
Methods of transporting. Tricycle is widely used in transporting their ube wine
product to market outlets within the area. For outlets outside the area like Baguio City
and Manila, they used public utility vehicles (PUV), private vehicles and bus. They
transport product in bulk to reduce transportation cost.
Pricing. Pricing is the manual or automatic process of applying prices to purchase
and sales orders. There were several methods used in pricing a product. For the
cooperative, they priced the ube wine based on the production cost plus 20% mark-up.
They consider the cost/price of the raw materials, the overhead expenses and other
expenses incurred.
Processing Problems Encountered by the Enterprise
Table 1 presents the important problems encountered in ube wine processing.
Major problems identified by the respondents includes lack of capital (89.19%), no
building (83.78%), lack of facilities (78.38%), insufficient training in wine processing
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(40.54%), availability of the processors (35.14%), availability of raw materials (21.62%),
and quality of ube tubers because of pests and diseases (18.92%).
Marketing Problems Encountered by the Enterprise
Table 2 presents the problems encountered in marketing. There were six problems
enumerated by the respondents. Delay of payment (83.78%), increasing competition
(70.27%) and lack of promotional activities (51.35%) were the major problems
encountered by the enterprise. Some of the respondents also mentioned the poor farm-to-
market road (35.14%), high transportation cost (24.32%), and low buying price (13.52%)
as some problems in marketing.
Table 1. Problems encountered in ube wine processing
PARTICULARS FREQUENCY
PERCENTAGE
(F)
(%)
Lack of capital
33
89.19
Lack of facilities
29
78.38
Quality of raw materials
7
18.92
Insufficient training in wine processing
15
40.54
Availability of the processors
13
35.15
Availability of raw materials
8
21.62
No building
31
83.78
*Multiple response
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Table 2. Problems encountered in marketing
PARTICULARS FREQUENCY
PERCENTAGE
(F)
(%)
Delay of payment
31
83.78
Low buying price
5
13.51
High transportation cost
9
24.32
Poor farm-to-market road
13
35.14
Increasing competition
26
70.27
Lack of promotional activities
19
51.35
*Multiple response
Management Problems Encountered by the Enterprise
Table 3 shows the management problems encountered by the enterprise. There
were 7 problems enumerated by the respondents. These were the lack of information
dissemination of the activities (67.16%), lack of cooperation (64.86%), improper
management of funds (62.16%), low income (45.95%), lack of qualified and competent
officers (35.14%), lack of management (29.73%) and disloyalty of the members
(13.51%).
Table 3. Management problems encountered by the cooperative
PROBLEMS FREQUENCY
PERCENTAGE
(F)
(%)
Lack of qualified and competent officers
13
35.14
Lack of cooperation
24
64.86
Lack of management
11
29.73
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Table 3. Continued…
PROBLEMS
FREQUENCY PERCENTAGE
(F)
(%)
Improper management of funds
23
62.16
Low income
17
45.95
Disloyalty of the members
5
13.51
Lack of information dissemination on the
15 67.57
activities
*Multiple response
Factors Affecting the Success of the Enterprise
as Perceived by the Processors
As mentioned by the respondents, limited/lack of capital was the major factor that
affect the success of the enterprise. Capital is the major resource for production. It is
needed for the purchase of facilities and construction of processing plant/building.
Participation of the members is another factor as mentioned by 72.97% of the
respondents. For group endeavor, participation of members is necessary. Like a
cooperative, the major ingredient is cooperation in all activities inorder to progress.
Other factors perceived by the respondents includes: technology/skills (40.54%),
availability of raw materials for processing (27.03%) and availability of varieties for
processing (18.92%). As mentioned by Sim (2007), the variety affects the quality of a
product. In her study on sweetpotato processing, the dryness and flesh color of
sweetpotato affects the texture of bread produced or wine produced from sweetpotato.
She further mentioned that purple flesh color of sweetpotato is best for wine processing
because outcome is dark red colored wine, it is a natural color. This may also be true for
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ube, a dark purple ube will produce red colored wine. Ube production is seasonal thus
production of ube wine may also be seasonal, thus, the year round supply of ube tubers is
needed for continuous and sustainable processing venture.
Factors Affecting the Success of the Enterprise
The respondents ranked the factors affecting the success of the enterprise as
shown in Table 5. Based on the ideas/analysis of the members of the enterprise, the
common factors that affects the success of the enterprise are adherence to cooperative
laws (54.05%) which was ranked number one, followed by proper record keeping
(43.24%) ranked number two, auditing has been conducted (37.84%) ranked number
three, policies are implemented (35.14%) ranked number four, efficient leaders (29.73%)
ranked number five, active participation of members (27.03%) ranked number six and
government agency facilitation (13.51%) which was ranked number seven.
Results imply that the members in the enterprise have different opinions regarding
the factors affecting the success on an enterprise.
Table 4. Factors affecting the success of the enterprise as perceived by the processors
FACTORS FREQUENCY
PERCENTAGE
(F)
(%)
Availability of supply
10
27.03
Availability of varieties for processing
7
18.92
Technology/skill in processing
15
40.54
Capital 33
89.19
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Table 4. Continued...
FACTORS FREQUENCY
PERCENTAGE
(F)
(%)
Participation of the members
27
72.97
Availability of infrastructures and
31 83.78
facilities
*Multiple response
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Table 5. Factors affecting the success of the enterprise
RATING
PARTICULARS
R1
%
R2
%
R3
%
R4
%
R5
%
R6
%
R7
%
Adherence to cooperative laws
20 54.05 2 5.40 - - 6 16.22 5 13.51 1 2.70 3 8.11
Proper
record
keeping
- - 16 43.24 9 24.32 3 8.11 5 13.51 2 5.41 2 5.41
Auditing
has
been
conducted
2 5.41 6 16.22 14 37.84 4 10.81 7 18.92 4 10.81 - -
Policies
are
implemented
4 10.81 3 8.11 4 10.81 13 35.14 7 18.92 6 16.32 - -
Efficient
leaders
1 2.70 5 13.51 7 18.92 9 24.32 11 29.73 4 10.81 - -
Active participation of the members
3
8.11
7 18.92 3 8.11 5 13.51 9 24.32 10 27.03 2 5.41
Government agency facilitation
-
-
-
- - - 1 2.70 1 2.70 5 13.51 3 8.11
*Multiple response
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Possible Solutions to Problems Suggested
by Respondents
Table 6 shows the suggestions/possible solution suggested by the respondents to
address the problems encountered by the enterprise. There were six (6) problems noted
below including the different possible solutions mentioned by the members of the
enterprise. The suggested possible solutions on lack of capital were access/solicit funds
from funding agencies/offices (51.35%), members will contribute additional share capital
(27.03%), develop capital build-up activities (18.92%) and look for other source of
income (2.70%). There were also three (3) possible solutions on the lack of cooperation
enumerated by the respondents which develop more activities to motivate members of the
cooperative to cooperate (21.62%). Two possible solutions on lack of technology/skill in
processing are consult the concerned agencies for more updates on technologies (70.27%)
and members to attend more seminars and trainings on ube wine processing (24.32%).
Possible solutions to problem on lack of qualified and competent officers are officers’
attendance to conferences/conventions on managerial skills (40.54%) and officers to
undergo trainings/seminars on management skills (13.51%) and elect competent and
qualified officers (8.11%). The possible solutions suggested by respondents on
availability of supply are coordinate with farmers who are planting ube (35.14%) and
members of the enterprise should encouraged to plant ube (10.81%). The problem on
improper payment of fund is on regular collection of payments (24.32%).
Most of the respondents have limited ideas/opinions/analysis on giving possible
solutions to problems.
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Table 6. Possible solutions to problems suggested by respondents to address problems
encountered by the enterprise
PARTICULARS SOLUTIONS F
%
Lack of Capital
Members will contribute additional share
10
27.03
capital
Access/Solicit funds from funding
19
51.35
agencies/offices
Look for other source of income
1
2.70
Develop capital build-up activities
7
18.92
Lack of Qualified
Officers will attend more
and Competent
conventions/conferences that deals with
Officers
managerial skills
15
40.54
Elect competent and qualified officers
3
8.11
Officers will undergo trainings/seminars on
5
13.51
management skills
Lack of
Develop more activities to motivate
Cooperation
members to cooperate
17
45.95
Regular meetings will be done to update
the members on the developments of the
cooperative
12
32.43
Encourage members to cooperate
8
21.62
Improper Payment
Regular collection of Payments
9
24.32
of funds
Availability of the
Coordinate with farmers planting ube
13
35.14
Supply
Members of the enterprise will be
encouraged to plant ube
4
10.81
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Table 6. Continued…
PARTICULARS SOLUTIONS
F
%
Lack of
Members will attend more seminars
9
24.32
Technology/Skill in a inings on ube wine processing
Processing
Consult the concerned agencies for more
26
70.27
updates on technologies
*Multiple response
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the ube wine processing and marketing
practices of the cooperative, determine the problems encountered by the cooperative,
factors affecting the success of the enterprise and enumerate possible solutions to the
problems encountered by the enterprise. A total of thirty seven (37) processors of the ube
wine processing enterprise from Bayabas, Sablan, Benguet served as respondents. The
respondents were personally interviewed with the aid of open and close ended
questionnaire. The data obtained were consolidated, categorized and tabulated using
descriptive statistics such as frequency countages and percentage. Majority of them were
the initial members of the cooperative.
For the processing practices, they apply fermentation on a 30-45˚C temperature
and usually ferment the wine up to 3-4 months but to increase alcohol content of wine,
they extend to 5-6 months of fermentation. The cooperative is producing 120-160 bottles
(750 ml) of ube wine from 80-100 kilograms of ube tubes for every preparation.
The cooperative market their ube wine mostly to wholesalers and retailers from
Baguio City and Metro Manila. Individual consumers and members of the cooperative
also buy from the enterprise for consumption. The ube wine were priced based on the
production cost and sold on cash basis on credit. The ube wine were transported to
market outlets inside the area through tricycle and public utility jeepneys (PUJ), private
vehicles and bus to market outlets outside the area.
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The respondent has identified seven main problems in processing. These were the
lack of capital, no building, lack of facilities, insufficient training in wine processing, and
availability of the processors, availability of raw materials and quality of raw materials.
The marketing problems mentioned by the respondents were delay of payment,
increasing competition, lack of promotion, poor farm-to-market road, high transportation
cost and low buying price.
The respondents have also identified some management problems encountered by
the cooperative. These were the lack of information dissemination on the activities, lack
of cooperation improper payment of funds, low income, lack of qualified and competent
officers, lack of management and disloyalty of the members.
There were six identified factors affecting the success of the enterprise as
perceived by the processors which includes capital, availability of infrastructures
facilities and participation of members, technology/skill in processing, availability of
supply and availability of varieties for processing.
Conclusions
Based on the results of the study, the following conclusions were drawn:
1. The cooperative is producing 120-160 bottles (750 ml.) of ube wine in every
preparation.
2. The ube wine were mostly sold to middlemen and priced based on the
production cost. The ube wine were sold on cash and credit.
3. Limited/lack of capital was a major processing problem encountered by the
enterprise.
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4. The cooperative encountered problems regarding the collection of payments of
the product from traders. Increasing competition and lack of promotional
activities is also a problem to the cooperative.
5. Lack of information dissemination of the activities, lack of cooperation and
improper payment of funds were the major management problems
encountered by the enterprise.
6. The three main factors affecting the success of the enterprise were availability of
capital, participation of the members, and availability of infrastructure and
facilities.
Recommendations
Based on the conclusion, the following recommendations were made:
1. The cooperative should increase ube wine production to have available stocks.
2. Training should be provided to the processors with emphasis on marketing
and processing.
3. The cooperative should look for capital build-up programs and activities to
increase income.
4. The cooperative should develop more promotional activities to reduce the
problem on competition.
5. The cooperative should conduct seminars designed to encourage officers and
members especially those who do not perform their functions well to become
more active and responsible.
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6. The regional offices of DAR and DTI should continue assisting cooperatives
especially into product development of crops grown in the locality.
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LITERATURE CITED
ANONYMOUS. 1986. Agriculture and Fisheries Information Service, DA RFU CAR,
Regional Agriculture Fisheries Information Division, Guisad, Baguio City.Pp 5-
6.
CALIGING, E.S. 2005. History of Sablan: Municipal Planning and Development Office.
Pp
1-2.
CALIGING, E.S. 2005. Sablan Socio-Economic Profile: Municipal Planning and
Development Office. Pp 2-4.
GODWIN, U. 2000. Setting Up Yams for Producing Exports. Business This Day.
(Article). http:// www.thisdayonline.com/business/20031119bus30.html.
JAMORA, D.S. 1975. Root Crops for profit: Agrix Publishing Corporation
Rodrigues Cor. Gilmore Ave., Quezon City. Pp 2-3.
KAWILI. Personal Communication: October, 2007.
LORENA, B. Personal Communication: December, 2007.
SALDA, V.B. 1999. Ethnobotany and Food Use of Philippine Highland Yams. Ph.D.
Thesis. The University of Hongkong. Pp. 4-9.
SIM, J. M. 2007. In: PARRFI Professorial Chair Papers 1992-2006.Philippine
Agriculture and Resources Research Foundation Inc. Los Banos, Laguna. Pp.
222-223.
SIM, J. M.AND D.T. MELDOZ .1998. Nutritional Composition of Potato, Sweet potato,
Yam, Taro and Cassava, NPRCRTC BSU, L.T.B.
SONAY, C.Q. 2004. Yam Processing Technologies used at the NPRCRTC,
Benguet State University. B.S. Thesis. Benguet State University, La Trinidad,
Benguet. Pp 4- 8; 13-15.
TANDOC, A.M. 1994. An Assessment of the Cultural Management Practices of Ube
Production in Sablan, Benguet.B.S.Thesis. Benguet State University, La Trinidad,
Benguet. Pp 1-2; 5.
VERNIER,P. 1998. Yam Chip Production in West Africa. Postharvest Systems.
http://www.iita.org/info/ph2/feb.
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APPENDIX A
Letter to the Respondents
Benguet State University
Department of Agricultural Economics
and Agribusines Management
College of Agriculture, Benguet State University
La Trinidad, Benguet
December, 2007
Dear Respondents,
Warm greetings!
I am a graduating student of Benguet State University taking up Bachelor of
Science in Agribusiness major in Enterprise Management. As part of the course
requirement, I am presently conducting an undergraduate research study entitled “A
DOCUMENTATION ON UBE WINE PROCESSING ENTERPRISE IN SABLAN,
BENGUET”.
In this connection, may I ask permission to document the processing and
marketing practices of the Kayabang Multi-purpose Cooperative. Rest assured that all the
information you will provide shall be treated with outmost confidentiality.
Your favorable approval is highly appreciated.
Thank you for your kindness and cooperation. May God bless You!
Sincerely yours,
MARISSA C. AP-AP
Researcher
Noted by:
JOVITA M. SIM
Adviser
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APPENDIX B
Survey Questionnaire
A. Profile of the Respondents
1. Name: ________________________________
B. Problems Encountered in Processing
___ Lack of Capital
___ Lack of Facilities
___ Occurrence of Pest and Diseases
___ Insufficient Training in Wine Processing
___ Availability of the Processors
___ Availability of the Raw Materials
___ Lack of Processing Building
___ Others specify: _________________________________________
C. Problems Encountered in Marketing
___ Delay of Payment
___ Low Buying Price
___ High Transportation Cost
___ Poor to Farm-to-Market Road
___ Increasing Competition
___ Lack of Promotion
___ Others specify: _________________________________________
D. What are the Problems encountered by the enterprise?
___ Lack of Qualified and Competent Officers
___ Lack of Cooperation
___ Lack of Management
___ Improper Payment of Funds
___ Availability of Supply
___ Lack of Knowledge/Skill in Processing
___ Lack of Capital/ Low Income
___ Disloyalty of the Members
___ Lack of Information Dissemination
___ Availability of the Processors
___ Others specify: _________________________________
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E. Factors Affecting the Success of the Enterprise (pls. rank them from the most
grievous factors to the least)
FACTORS
RANK
1. Efficient Leaders
______
2. Proper Record Keeping
______
3. Auditing has been conducted
______
4. Policies are implemented
______
5. Active Participation of the members
______
6. Adherence to Cooperative Laws
______
7. Government Agency Facilitation
______
8. Others (pls. specify) ____________________
______
________________________________
______
F. Factors Affecting the Success as Perceived by the Processors
___ Availability of Supply
___ Availability of Varieties for Processing
___ Lack of Technology/Skill in processing
___ Lack of Capital
___ Lack of Processing Building
___ Active Participation of Members
___ Others specify: _________________________________
G. What possible solutions to problems do you suggest?
PROBLEMS
: SOLUTIONS
Lack of Funds/Capital
: _________________________
Lack of Qualified and Competent Officers : _________________________
Lack of Cooperation
: _________________________
Improper Payment of Funds
: _________________________
Availability
of
Supply
: _________________________
Lack of Technology/Skill in processing : _________________________
Others specify:________________________: _________________________
THaNk yOu vErY mUcH!!!
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Guide Questions
A. Processing Practices
a. How may kilos you need in one operation? ___________________
b. What specific temperature to apply fermentation? ______________
c. How many months do you ferment the wine? _________________
d. How many bottles could you produce in one preparation? _______
B. Marketing Practices
a. Market Disposing Place of Ube Wine
___ Outside the locality: ___ Baguio
___ Manila
___ Others specify: __________________
___ Inside the locality
b. To whom do you sell wine?
___ Wholesaler
___ Middlemen
___ Retailers
___ Others specify: __________________
c. What is the method of sale? _______________________________
___ Cash
___ Barter
___ Credit
___ Others specify: __________________
d. Where do you dispose your product?
___ Municipal Public Market
___ Storeowners
___ Others specify: ______________________________________
e. What are the methods used in transporting your product?
___ Passenger’s jeep ___ Tricycle
___ Owner type jeep ___ Others specify: ___________________
f. How do you price the product you sell?
___ Based on the prevailing market price
___ Based on the price dictated by the buyer
___ Mutually agreed price
___ Based on the cost of raw materials
___ Others specify: _______________________________________
A Documentation on Ube Wine Processing Enterprise
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Document Outline
- A Documentation on Ube Wine Processing
Enterprise in Sablan, Benguet
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- Rationale of the Study
- Statement of the Problem
- Objectives of the Study
- Importance of the Study
- Scope and Limitation of the Study
- REVIEW OF LITERATURE
- The Crop
- Importance of Yam
- Advantages in Yam Production
- Yam Processing
- METHODOLOGY
- Locale and Time of the Study
- Research Instrument
- Respondents of the Study
- Data Collection
- RESULTS AND DISCUSSION
- Historical Background of the Enterprise
- The Respondents
- Processing Practices
- Marketing Practices
- Processing Problems Encountered by the Enterprise
- Marketing Problems Encountered by the Enterprise
- Management Problems Encountered by the Enterprise
- Factors Affecting the Success of the Enterpriseas Perceived by the Processors
- Factors Affecting the Success of the Enterprise
- Possible Solutions to Problems Suggestedby Respondents
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- Summary
- Conclusions
- Recommendations
- LITERATURE CITED
- APPENDICES