Cost and Return Analysis of Strawberry Production in La Trinidad, Benguet
BIBLIOGRAPHY
SAYAP JR., EUGENE C. MARCH 2006. Cost and Return Analysis of
Strawberry Production in La Trinidad, Benguet, Benguet State University, La Trinidad,
Benguet.
Adviser: Evangeline B. Cungihan, MS
ABSTRACT
This study was conducted to determine the technologies used by farmers in
strawberry production and from whom was the technology learned, to determine the
varieties of strawberry grown, determine their volume of production, the cost and return
from production, and to find out the problems encountered by strawberry farmers in
cultivating strawberry.
There were 30 respondents interviewed from 5 selected barangays of La Trinidad,
Namely: Pico, Buyagan, Balili, Puguis, and Wangal, and including the Swamp area. A
prepared survey questionnaire was used as a guide.
The technologies used by the farmers were mostly adopted or learned from other
farmers. Majority of the farmers planted the Sweet Charlie variety which most of them
bought from other farmers. The average volume produced per farm was very low due to
the small area cultivated. One limiting factor why the farmers cannot expand their area
cultivated was the lack of capital. There were other problems pointed out by the farmers
that lead to a low net income and a negative return to operator’s labor and management
like low price of the product, high cost of farm inputs, and pest and diseases are difficult
to control.
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TABLE OF CONTENTS
Page
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract. . . . . . . . . . . . . . . . . . . . . . . . . . . … … … . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Rationale of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Scope and Limitation of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
REVIEW OF LITERATURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Locale and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Data to be Gathered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
RESULTS AND DISCUSSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Profile of the Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Sources of Technology Used by
the Farmers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
iii
Varieties of Strawberry Planted by
the Farmers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Sources and Types of Planting Materials Used. . . . . . . . . . . . . . . . . . . .
10
Use of Plastic Mulching and Source of
the technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Schedule of Planting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Type and Source of Irrigation Used . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
Sources of Capital for Strawberry Production . . . . . . . . . . . . . . . . . . . .
14
Market Outlet of Strawberry Produce. . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Mode of Selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Volume of Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Average Price of Strawberry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Costs and Returns from Strawberry Production . . . . . . . . . . . . . . . . . . .
19
Problems Met by the Farmers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
SUMMARY, CONCLUSIONS AND
RECOMMENDATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
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INTRODUCTION
Rationale of the Study
The history of strawberry cultivation in the Philippines maybe traced back to the
early 20th century when the Americans, in their effort to modernize the country’s
agriculture after taking over from the Spaniards, may have introduced the plant in
Mountain Province, Baguio and Benguet. Later, they started growing the crop in the
newly established Trinidad Farm School now Benguet State University (BSU) after it has
been observed to be adapted to this locality. At present, strawberry is the number one and
the most popular fruit produced in Baguio City and Benguet Province. It is estimated to
rank no. 6 in money value among the crops grown in the area, surpassed by potatoes,
cabbage, carrots, Chinese cabbage, beans, brocolli, and lettuce (Benguet Strawberry
techno guide, 1996) .
The demand for strawberry is high among tourist and processing factories such as
Magnolia Dairy Products, Inc., Ladys Choice Consolidated Food Company and including
local jam and wine processors.
Strawberry shortage occurs during the typhoon months of July to October. The
same is true during Christmas and summer seasons when demand is on its peak.
Strawberry maybe processed into jam, jelly, wine, cake and candies. It may also be made
into various recipes like fruit salad and fruit shake.
Strawberry is successfully grown in Benguet because of the cool climate.
However, continuous heavy rains destroys the flower and fruits. Strawberry grows best in
fields at temperature ranging from 14 to 23oC. Temperatures higher than 23oC may
reduce flower development in most strawberry cultivators.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
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In La Trinidad, many farmers had already shifted from backyard cultivation to
commercial growing of strawberry, hence the place is becoming one of the leading
producers of strawberries in the country. Due to the increasing worldwide demand,
strawberry fruit is an excellent product for export and can be a dollar earner for local
economy, provided that there is constant large volume of produce. A single farmer maybe
unable to produce the necessary volume alone but if a cooperative unit of strawberry
growers collaborate toward this end, they maybe able to produce the required volume
regularly demanded by consumers as well as the processors.
To be able to catch up with the increasing demand for strawberry, farmers have to
either improve their technique of production, increase the area planted to strawberry, or
both. In either case, farmers have to increase their investment on strawberry production.
This study therefore will be conducted to look into the costs incurred by the farmers and
the returns they get from strawberry production and analyze the profitability of the
activity.
Statement of the Problem
1. What are the technologies used by farmers in strawberry production and from
whom was the technology learned?
2. What is the volume of production?
3. How much is the cost and return from strawberry production?
4. What are the problems encountered by strawberry farmers in producing
strawberry ?
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
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Objectives of the Study
1. To determine the following:
a. technology used
b. volume of production
c. costs of production
d. returns from production
2. To find out the problems encountered by strawberry farmers in cultivating
strawberry.
Importance of the Study
The result of this study would give information to the farmers regarding the cost
and returns of strawberry production, which could help them in making plans and
decisions in their production activity. This would also provide data to other researchers
conducting studies on strawberry to formulate programs and projects that would promote
the production of quality and safe strawberry fruits.
Scope and Limitation
The study focused on the production practices including the type of technologies
adopted by the farmers and the sources of the technology. A cost and return analysis was
also done to find out how much the farmer was getting for the use of his resources. It also
identified the problems encountered by farmers in producing strawberry.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
REVIEW OF LITERATURE
McConnell (1975) stated that the production of any good requires the use of
economic resources which, because of their relative scarcity, bear price tags, the amount
of any product which a firm is willing to supply in the market depends upon the prices
(costs) and the productivity of the resources essential to its production, on the one hand
and the price which the product will bring to the market on the other.
According to Browne and Hoag (1980), understanding economic analysis is an
appropriate supplement in advance economic courses. This are valuable to a large degree
only when they are practiced and refined.
Michas and Reynolds (1983) concluded that production of each good should be
carried to the point at which the benefits yielded by the last unit just equals the cost of
producing it. This principle guide the producer in making decision as to how many units
of the resource inputs to be used in the production of a product. The quantity of the input
used would in turn determine the volume of the output to be produced.
Tibao (2001) stated that the successful farmers do not only select his own product
or enterprise, which gives him a well balance, efficient value, but also give him
reasonable income from business. Income of a particular farmer depends on his volume
of production, the price he gets and his cost of production. It is within the power of the
farmers, to some extent, to increase their average income.
Goronel(1983) as cited by Anton(1995) stated that strawberry is a perennial herb
of the genus Fragaria, a latin name which refers to the fragrance of the berries. It belongs
to the Rosacea family. It is a lucrative source of income for farmers. It produces sweet
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
5
juicy fruit, one of the highly priced commodities in Baguio City and Benguet because of
the unique temperate climate suited for strawberry production.
According to Shoemaker (1975), it grows vegetatively in its first growing season.
During this stage, the plant grows and produces runners and stocks. These plants are
collected as planting materials. During the second cycle, the plant grows vegetatively and
also initiate and differentiate flower buds and eventually fruits.
Moron (1992) stated that farmers encountered problems in marketing. Problems
include erratic price and high perishability of fruits. She added that places with poor farm
to market roads, farmers may find it difficult to transport berries and much berries can be
damaged, a situation that leads to low price.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
METHODOLOGY
Locale and Time of the Study
This study was conducted in the different strawberry producing areas of La
Trinidad, Benguet specifically Puguis, Pico, Buyagan, Wangal, Balili and the Swamp
area. This was conducted on January 2006.
Respondents of the Study
The study took 30 respondents from the strawberry producing farmers from the
different areas of La Trinidad, Benguet.
Research Instrument
All data was gathered through a survey questionnaire, which was administered
personally by the researcher.
Data to be Gathered
The data gathered included production practices of the farmers, input utilization
data, production data and prices of both inputs and the strawberry. It also collected
information regarding the problems of strawberry farmers that were affecting their
production activity.
Data Analysis
The data collected were analyzed using descriptive statistics such as frequency,
percentage and average. A cost and returns analysis was also done.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
RESULTS AND DISCUSSION
Profile of the Respondents
Table 1 presents the general profile of the respondents in terms of civil status,
age, sex, educational attainment and number of family members.
Civil status. Majority ( 93.33%) of the respondents were married and only 6.67%
were single. This finding indicates that majority of the strawberry farmers are married
and with family to support.
Age. There were 7 or 23.33% respondents that belonged to the 20 – 30 years old
bracket, 12 or 40% belonged to the 31 – 40 years old bracket, 4 or 13.33% to the 51 – 60
years old, 6 or 20% to the 51 – 60 years old and only 1 or 3.33% to the 61 – 70 years old
bracket. This finding implies that majority of the farmers are still young.
Sex. Majority (93%) of the respondents was male and only 7% was female. The
result shows that more male were engage in strawberry farming than female.
Educational attainment. Majority (53.34%) of the respondents reached high
school level or high school graduates, while 23.33% each were elementary graduate and
college graduate. This implies that majority of the farmers in the different areas of La
Trinidad, Benguet have not reached college.
Number of family members. Majority (56.6%) of the respondents had 2 – 5
number of family members, 36.67% had 6 – 10 members and only 6.67% had 11 – 15
number of family members. The result shows that majority of the farmers had few family
members.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
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Table 1. Profile of respondents
CHARACTERISTICS
FREQUENCY
PERCENTAGE
a. Civil Status
Married
28
93.33
Single
2
6.67
Total
30
100
b. Age
20 - 30
7
23.33
31 – 40
12
40.00
41 – 50
4
13.33
51 – 60
6
20.00
61 - 70
1
3.33
Total
30
100
c. Sex
Male
28
93
Female
2
7
Total
30
100
d. Educational Attainment
Elementary
7
23.33
High School
16
53.34
College
7
23.33
Total
30
100
d. Number of Family Members
2 – 5
17
56.67
6 – 10
11
36.67
11 - 15
2
6.66
Total
30
100
Mean
6
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
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Source of Technology Used by the Farmers
Table 2 shows the sources of technology being used by the strawberry farmers of
La Trinidad, Benguet. It shows that 36.67% of the respondents developed their own
technology, 20% mentioned that the technology they were using comes from Benguet
State University (BSU), 30% mentioned that the technology they were using was
recommended by the Department of Agriculture (DA), another 20% said that the
technology they were using was recommended by technicians of chemical companies
while majority (53.33%) were adopted from other farmers. This finding shows that there
are farmers who do their own research, though not in a scientific way, and develop their
own technology. The finding also implies that farmers observe the practices of their co-
farmers and adopt their practices which they think are good and effective.
Table 2. Source of technology being used by the respondents
SOURCE
FREQUENCY
PERCENTAGE
Own Technology
11
36.67
Recommended by BSU
6
20.00
Recommended by DA
9
30.00
Recommended by Technicians
6
20.00
Adopted from other farmers
16
53.33
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
10
Varieties of Strawberry Planted by the Farmers
Table 3 presents the varieties grown by the farmers. There were only two varieties
of strawberry planted by the respondents. These were Sweet Charlie and Aliso. However,
there were only 3 or 10% that planted the Aliso while 100% of the respondents planted
the Sweet Charlie variety. The table further shows that majority of the farmers were
producing the variety which they used to grow. Only 27% of the respondents tried to
plant a new variety.
Table 3. Strawberry varieties grown by the respondents
VARIETIES
FREQUENCY
PERCENTAGE
Sweet Charlie
30
100
Aliso
3
10
Is the variety new to you?
Yes
8
27
No
22
73
Total
30
100
Sources and Types of Planting Materials Used
Table 4 presents the sources and types of planting materials planted by the
farmers. The result shows that majority (67%) of the respondents got their planting
materials from other farmers. Nine of the respondents propagated their own planting
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
11
materials while 5 or 16.67% got them from the Department of Agriculture. Two of the
respondents bought their planting materials from traders.
As to type of planting material planted, 87% planted the runners while 43% of the
respondents planted the mother plant. According to them, they use the mother plant when
the runners are not enough.
Table 4. Sources and type of planting material used
PARTICULAR
FREQUENCY
PERCENTAGE
a. Source
Other Farmers
20
66.67
Traders
2
6.67
Propagate it myself
9
30.00
Department of Agriculture
5
16.67
B. Type
Runner
26
86.67
Mother plant
13
43.33
Use of Plastic Mulching and source of the Technology
Table 5 shows that all the respondents were using the black plastic for mulching.
This technology was adopted by the respondents from different sources. These sources
were their co-farmers, BSU, DA and technicians of chemical companies. It was found
that majority of respondents adopted this from their co-farmers who first adopted it. Fifty
percent mentioned that they adopted it directly from BSU. Seven of the respondents
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
12
mentioned that they adopted it from the DA while one of them said that he adopted the
technology from the technicians of chemical company.
Table 5 . Use of plastic as mulching material
PARTICULAR
FREQUENCY
PERCENTAGE
Use plastic for mulching
30
100
Source of the Technology
Co-farmers
16
53.33
BSU
15
50.00
DA
7
23.34
Technicians of chemical company
1
3.33
Schedule of Planting
Table 6 shows that farmers do not plant their strawberry on the same month. The
schedule for planting of strawberry started from July to November. There were 2 farmers
that planted their strawberry in July , 6 or 20% in August, 13 or 43.33% in September, 8
or 26.67% in October, and 1 or 3.33% in November. This finding shows that most of the
farmers plant their strawberry on the month of September followed by October. Very few
farmers plant it on the month of July and November.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
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Table 6. Month of planting
MONTH
FREQUENCY
PERCENTAGE
July
2
6.67
August
6
20.00
September
13
43.33
October
8
26.67
November
1
3.33
Total
30
100
Type and Source of Irrigation used
He different types of irrigation used by the strawberry farmers were drip
irrigation, flooding, and overhead irrigation. The most common way of irrigating
strawberry farm practiced by the farmers was the overhead type. Since majority of the
farmers get their irrigation water from the canal the farmers use manual labor to carry the
water using watering cans and pour the water over the strawberry plants. There were 5
farmers that used flooding and only 3 farmers used the drip type of irrigation.
As to sources of irrigation, 67% of the farmers get there irrigation water from
canals, 13 farmers get it from river, 4 farmers used water pump and 5 get their water from
the spring with the use of hose. The farmers who used water pump still get their water
from the river or from the canal.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
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Table 7. Type and source of irrigation used
PARTICULAR
FREQUENCY
PERCENTAGE
a. Type of irrigation
Drip
3
10.00
Flooding
5
16.67
Overhead
28
93.33
b. Source of Irrigation
Canal
20
66.67
River
13
43.33
Water pump
4
13.33
Spring
5
16.67
Source of Capital for Strawberry Production
Strawberry farmers sourced out their capital from various sources. Majority
(60%) for the respondents used their personal savings, 9 or 30% borrowed from their
relatives and 6 or 20% borrowed from the cooperative or from the bank.
Table 8. Source of capital for strawberry production
SOURCE
FREQUENCY
PERCENTAGE
Personal savings
18
60
Borrowed from relative
9
30
Borrowed from cooperative/bank
6
20
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
15
Market Outlet of Strawberry Produce
There were three market outlet used by the strawberry growers , trading post at La
Trinidad, the traders, contract grower financer as presented in Table 9. Majority (70%) of
the farmers sell their strawberry produce to traders in Baguio and La Trinidad. Two of the
growers sell their products to retailers at the trading post while 8 or about 28% sell their
strawberry to contract growing financers. These farmers borrowed money from the
financer as capital in the production of strawberry and signed a contract to sell their
strawberries to the financer. The financer is responsible in bringing the fresh strawberry
to buyers in Metro Manila.
Table 9. Market outlet of strawberry produce
MARKET OUTLET
FREQUENCY
PERCENTAGE
Retailers at the Trading Post
2
6.67
Traders
21
70.00
Contract growing financer
8
26.67
Total
30
100
Mode of Selling
The finding shows that the strawberry producers either sell their products on cash
basis, credit or consignment. Table 10 presents that majority ( 53%) of the farmers sell
their strawberry on cash basis. This was followed by 44% that sell their product on
consignment basis. The consignment arrangement is just like the credit arrangement
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
16
because there were no cases where the buyer returned the unsold strawberries to the
farmers.
Table 10. Mode of selling product
MODE OF PAYMENT
FREQUENCY
PERCENTAGE
Cash
16
53
Credit
1
3
Consignment
13
44
Total
30
100
Average Area Planted
Table 11 presents that 17 or 56.67% of the respondents planted an area of 500 –
1,000 square meters. The area planted by 13.33% ranged from 1,001 – 1,500 square
meters. The same number of respondents planted an area of 1,501 – 2,000 square meters
while 16.67% planted an area that ranged from 2,001 – 2,500 square meters. The average
area planted to strawberry by all the respondents was 1,308 square meters.
This finding presents that in the five barangays of La Trinidad, Benguet
considered in this study, only few farmers were cultivating an area of more than 2,500
square meters.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
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Table 11. Average area planted to strawberry
AREA
FREQUENCY PERCENTAGE
( in Sq. Meters)
500 – 1,000
17
56.67
1,001 – 1,500
4
13.33
1,501 – 2,000
4
13.33
2,001 – 2,500
5
16.67
Total
30
100
Mean area
1,308 sq. meters
Volume of Production
Table 12 shows the volume of strawberry produced by the respondents. There
were 6 or 20% that produced less than 500 kilograms, 33.33% produced about 500 –
1,000 kilograms, 26.67% produced 1,001 – 1,500 kilograms, only 2 or 6.67% produced
1,501 – 2,000 kilograms and there were 4 0r 13.33% that produced more than 2,000
kilograms. These were the farmers with wider area planted. The average volume of
production by all the respondents was 1,225.77 kilograms while the average volume
produced per 1,000 sq. meters per cropping was only 937 kilograms. This finding implies
that very few of the strawberry farmers produce more than 1,500 kilograms.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
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Table 12. Average volume of strawberry produced
VOLUME PRODUCED
FREQUENCY PERCENTAGE
( in Kilograms)
Less than 500 kilograms
6
20.00
500 – 1,000
10
33.33
1,001 – 1,500
8
26.67
1,501 – 2,000
2
6.67
More than 2,000 kilograms
4
13.33
Total
30
100
Average volume per farmer
1,225.77 kilograms
Average volume per 1,000 sq. meters
937 kilograms
Average Price of Strawberry
Table 13 shows the prices received by the respondents. Five or about 17% sold
their strawberry for a price ranging from P39 – P54 per kilogram. The same number of
farmers received a price ranging from P55 – P70 per kilogram for their strawberry. Three
or 10% each received P71 – P86 per kilogram, P103 – P118 per kilogram and P119 –
P134 per kilogram. The average price received per kilogram per farmer was P84.47.
This finding shows that majority of the farmers received less than P100 per
kilogram for their strawberry. This is because when the price of strawberry is at its
lowest it can go as low as P30.00 per kilogram. On the other hand when price is high it
can go as high as P115 pesos per kilogram.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
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Table 13. Prices received by the respondents
AVERAGE PRICE
FREQUENCY PERCENTAGE
( in pesos)
39 - 54
5
16.67
55 – 70
5
16.67
71 – 86
3
10.00
87 – 102
11
36.67
103 – 118
3
10.00
119 – 134
3
10.00
Total
30
100
Mean Price
P 84.47
Costs and Returns from Strawberry Production
The cost and returns analysis presents the total returns per farm and the total
expenses or cost of producing strawberry. Table 14 showed an average sales per farmer
amounting to P79,082.33 per cropping. The expenses incurred by the farmers in
producing strawberry included mulching material, which is the black plastic commonly
used by the farmer in the study area; land rent including the opportunity cost of owned
land, depreciation cost of farm tools and equipment, planting materials including the
value of framer-grown planting materials, farm supplies, and labor cost. Unpaid family
labor was valued using the current farm wage rate.
The total cost of production per farm, excluding family labor, was P61,692.17. Of
this total cost , land rent was the highest with P15,053 or 24.4% of total cost. This was
followed by hired labor cost with P12,445.83 or 20.17% then cost of planting materials
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
20
with P9,658 or 15.65%, and mulching material with P7,233.33 or 11.72% of the total
cost. The net income before deducting unpaid family labor was P17,390.17. If family
labor cost and interest on capital is deducted from the net farm income, the return to farm
operator’s labor and management is (P313.06). This finding shows that the income from
strawberry production could not pay for the operator’s labor and management. In fact the
return is negative. It could be that the average yield per farm is very low or the average
farm size was very small that made operator’s labor and management inefficient.
Table 14. Costs and returns from strawberry production
PARTICULAR
VALUE PERCENT
Average Sales
P79,082.33
Expenses or Costs:
Mulching material (1,096 m )
P 7,233.33
11.72
Land rent (
15,053.67
24.40
Depreciation
2,255.32
3.65
Planting material (5,117 pcs)
9,658.33
15.65
Fertilizer
5,879.65
9.53
Insecticide
4,467.97
7.24
Fungicide
3,215.00
5.20
Flower Inducer
471.43
7.24
Other supplies
1,041.43
5.20
Hired Labor
12,445.83
20.17
Total Cost
P 61,692.17
100
Net Farm Income
P 17,390.16
Unpaid Family Labor
P 16,616.68**
Interest on Average Inventory
P 1,086.54*
Returns to operators labor and management
( P 313.06)
** valued at current wage rate *Assuming a 16% interest rate per annual
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
21
Problems Met by the Farmers
Table 15 presents the problems encountered by the strawberry farmers. Almost all
the farmers mentioned they have problems on pest and disease control. According to
them, the pest and diseases of strawberry are difficult to control and so they have to use
strong chemicals to control these pests and diseases. These chemicals are very expensive
and so they have to spend much money to buy chemicals. The same number of farmers
pointed out that they have problem on low price of strawberry. The prices of inputs used
in production keep on increasing according to the farmers but the price of strawberry do
not increase also. The price is only high when there are few supply in the market but
during peak harvest season, the price usually go down. The other problems mentioned
were lack of capital as mentioned by 53%, marketing problem by 30%, lack of irrigation
by 37%, and perishability of the fruit as said by 27%.
Table 15. Problems encountered in strawberry production
PROBLEMS
FREQUENCY
PERCENTAGE
Pest and diseases are difficult to control
28
93
Lack of capital
16
53
Low price of strawberry
28
93
Lack of irrigation
11
37
High cost of farm inputs
24
80
Marketing
9
30
Perishability of product
8
27
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study on cost and return analysis of strawberry production in La Trinidad,
Benguet was conducted to determine the technologies used by farmers in strawberry
production and from whom was the technology learned, to determine the varieties of
strawberry grown, determine their volume of production, the cost and return from
production, and to find out the problems encountered by strawberry farmers in cultivating
strawberry.
There were 30 respondents interviewed from 5 selected barangays of La Trinidad,
Namely: Pico, Buyagan, Balili, Puguis, and Wangal, and including the Swamp area. A
prepared survey questionnaire was used as a guide.
Majority of the farmers were males, and married. Majority planted the Sweet
Charlie variety and adopted their technology from other farmers. They used runners and
mother plant for planting materials and the main source of their planting material is from
other farmers. All of the respondents used the black plastic as mulching material. They
learned this technology from other farmers.
Finding shows that the volume of strawberry produced by each farmer was
1,225.77 kilograms per cropping. The very low volume of production was due to the
small area planted per farmer. The average volume produced per square meter as
estimated was 937 kilograms. The finding implies that very few farmers produced more
than 1,500 kilograms.
The total cost of production per farm, excluding family labor was P61,692.17. Of
amount, land rent was the highest amounting to P15,053 or 24.24% of the total cost. This
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
23
was followed by hired labor cost with P12,445.83 or 20.17%. Cost of planting materials
and cost of mulching material comprised 15.65% and 11.72%, respectively. The average
net income before deducting unpaid family labor was only estimated at P17,390.17 . Iflue
of family labor and opportunity cost of capital would be deducted from the net farm
income, returns to operators labor and management would be negative, (P131.06). This
finding reveals that strawberry production could not even pay for the labor and
management effort of the farmer.
The major problems met by the farmers on their production activity were; pest and
diseases are difficult to control, low price of strawberry, high cost of farm inputs and lack
of capital to expand the area in order to increase the volume produced.
Conclusions
1. Majority of the farmers were male, married, adopted technology from other farmers
and used Sweet Charlie variety for production. All of them used plastic mulch in their
production.
2. Very few farmers harvested more than 1,500 kilograms of strawberry because of the
very limited area cultivated. This also lead to the very low net income per farm and a
negative return to operator’s labor. Lack of capital was a limiting factor in the
expansion of area cultivated.
3. Apart from limited capital, the farmers were also beset by problems like pest and
diseases are difficult to control, low price of strawberry, and high cost of farm inputs. All
of these problems contributed to the low production and income of farmers.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
24
Recommendations
1. The farmers should seek the technical assistance of technical people or experts in
strawberry production to assist them inorder to increase the yield of their crop.
2. The farmers should organize themselves into an association or become a member of a
ir cooperative, like the BSUMPC, that could help them finance their production activity
and at the same time make a tie-up with the cooperative for the marketing of their
produce. In this way they would be assured of a market and a reasonable price.
3. The farmers should increase the area they cultivate inorder to increase the volume of
their produce so that all the cost of production could be recovered plus a higher return to
their labor and management.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
LITERATURE CITED
ANTON, M.D. 1995. Strawberry production in Longlong, La Trinidad, Benguet. BS
Thesis. Benguet State University, La Trinidad, Benguet. Pp. 1-2
BSU/HARDC. 1996. Benguet Strawberry Technoguide. Benguet State University, La
Trinidad, Benguet. P.1.
BROWNE, N. and B. HOAG (1980). Understanding Economic Analysis. P. 159
McCONELL, C. R. 1975. Economic Principles, Problems, and Policies. 10t ed. P.521.
MICHAS. N. A. and L. G. REYNOLDS. 1983. Principles of Economics. 4th ed.
Homewood, Illinois. Northern Illinois University. P. 17.
MORON, P.L. 1991. Evolution and importance of strawberry production in the province
of Benguet. A documentation. BS. Thesis. Benguet State University, La Trinidad,
Benguet. P.7.
SHOEMAKERS, J. S. 1979. Strawberry Growing in Practical Horticulture. 2nd ed. New
York: Delmar Publisher, Inc. P. 351.
TIBAO, J.Y. 2001. Survey on postharvest handling and marketing of statice growers in
La Trinidad, Benguet. BS. Thesis. Benguet State University, La Trinidad,
Benguet.P.11.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
SAYAP JR., EUGENE C. MARCH 2006. Cost and Return Analysis of
Strawberry Production in La Trinidad, Benguet, Benguet State University, La Trinidad,
Benguet.
Adviser: Evangeline B. Cungihan, MS
ABSTRACT
This study was conducted to determine the technologies used by farmers in
strawberry production and from whom was the technology learned, to determine the
varieties of strawberry grown, determine their volume of production, the cost and return
from production, and to find out the problems encountered by strawberry farmers in
cultivating strawberry.
There were 30 respondents interviewed from 5 selected barangays of La Trinidad,
Namely: Pico, Buyagan, Balili, Puguis, and Wangal, and including the Swamp area. A
prepared survey questionnaire was used as a guide.
The technologies used by the farmers were mostly adopted or learned from other
farmers. Majority of the farmers planted the Sweet Charlie variety which most of them
bought from other farmers. The average volume produced per farm was very low due to
the small area cultivated. One limiting factor why the farmers cannot expand their area
cultivated was the lack of capital. There were other problems pointed out by the farmers
that lead to a low net income and a negative return to operator’s labor and management
like low price of the product, high cost of farm inputs, and pest and diseases are difficult
to control.
ii
TABLE OF CONTENTS
Page
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract. . . . . . . . . . . . . . . . . . . . . . . . . . . … … … . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Rationale of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Scope and Limitation of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
REVIEW OF LITERATURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Locale and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Data to be Gathered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
RESULTS AND DISCUSSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Profile of the Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Sources of Technology Used by
the Farmers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
iii
Varieties of Strawberry Planted by
the Farmers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Sources and Types of Planting Materials Used. . . . . . . . . . . . . . . . . . . .
10
Use of Plastic Mulching and Source of
the technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Schedule of Planting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Type and Source of Irrigation Used . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
Sources of Capital for Strawberry Production . . . . . . . . . . . . . . . . . . . .
14
Market Outlet of Strawberry Produce. . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Mode of Selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Volume of Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Average Price of Strawberry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Costs and Returns from Strawberry Production . . . . . . . . . . . . . . . . . . .
19
Problems Met by the Farmers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
SUMMARY, CONCLUSIONS AND
RECOMMENDATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
iv
INTRODUCTION
Rationale of the Study
The history of strawberry cultivation in the Philippines maybe traced back to the
early 20th century when the Americans, in their effort to modernize the country’s
agriculture after taking over from the Spaniards, may have introduced the plant in
Mountain Province, Baguio and Benguet. Later, they started growing the crop in the
newly established Trinidad Farm School now Benguet State University (BSU) after it has
been observed to be adapted to this locality. At present, strawberry is the number one and
the most popular fruit produced in Baguio City and Benguet Province. It is estimated to
rank no. 6 in money value among the crops grown in the area, surpassed by potatoes,
cabbage, carrots, Chinese cabbage, beans, brocolli, and lettuce (Benguet Strawberry
techno guide, 1996) .
The demand for strawberry is high among tourist and processing factories such as
Magnolia Dairy Products, Inc., Ladys Choice Consolidated Food Company and including
local jam and wine processors.
Strawberry shortage occurs during the typhoon months of July to October. The
same is true during Christmas and summer seasons when demand is on its peak.
Strawberry maybe processed into jam, jelly, wine, cake and candies. It may also be made
into various recipes like fruit salad and fruit shake.
Strawberry is successfully grown in Benguet because of the cool climate.
However, continuous heavy rains destroys the flower and fruits. Strawberry grows best in
fields at temperature ranging from 14 to 23oC. Temperatures higher than 23oC may
reduce flower development in most strawberry cultivators.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
2
In La Trinidad, many farmers had already shifted from backyard cultivation to
commercial growing of strawberry, hence the place is becoming one of the leading
producers of strawberries in the country. Due to the increasing worldwide demand,
strawberry fruit is an excellent product for export and can be a dollar earner for local
economy, provided that there is constant large volume of produce. A single farmer maybe
unable to produce the necessary volume alone but if a cooperative unit of strawberry
growers collaborate toward this end, they maybe able to produce the required volume
regularly demanded by consumers as well as the processors.
To be able to catch up with the increasing demand for strawberry, farmers have to
either improve their technique of production, increase the area planted to strawberry, or
both. In either case, farmers have to increase their investment on strawberry production.
This study therefore will be conducted to look into the costs incurred by the farmers and
the returns they get from strawberry production and analyze the profitability of the
activity.
Statement of the Problem
1. What are the technologies used by farmers in strawberry production and from
whom was the technology learned?
2. What is the volume of production?
3. How much is the cost and return from strawberry production?
4. What are the problems encountered by strawberry farmers in producing
strawberry ?
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
3
Objectives of the Study
1. To determine the following:
a. technology used
b. volume of production
c. costs of production
d. returns from production
2. To find out the problems encountered by strawberry farmers in cultivating
strawberry.
Importance of the Study
The result of this study would give information to the farmers regarding the cost
and returns of strawberry production, which could help them in making plans and
decisions in their production activity. This would also provide data to other researchers
conducting studies on strawberry to formulate programs and projects that would promote
the production of quality and safe strawberry fruits.
Scope and Limitation
The study focused on the production practices including the type of technologies
adopted by the farmers and the sources of the technology. A cost and return analysis was
also done to find out how much the farmer was getting for the use of his resources. It also
identified the problems encountered by farmers in producing strawberry.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
REVIEW OF LITERATURE
McConnell (1975) stated that the production of any good requires the use of
economic resources which, because of their relative scarcity, bear price tags, the amount
of any product which a firm is willing to supply in the market depends upon the prices
(costs) and the productivity of the resources essential to its production, on the one hand
and the price which the product will bring to the market on the other.
According to Browne and Hoag (1980), understanding economic analysis is an
appropriate supplement in advance economic courses. This are valuable to a large degree
only when they are practiced and refined.
Michas and Reynolds (1983) concluded that production of each good should be
carried to the point at which the benefits yielded by the last unit just equals the cost of
producing it. This principle guide the producer in making decision as to how many units
of the resource inputs to be used in the production of a product. The quantity of the input
used would in turn determine the volume of the output to be produced.
Tibao (2001) stated that the successful farmers do not only select his own product
or enterprise, which gives him a well balance, efficient value, but also give him
reasonable income from business. Income of a particular farmer depends on his volume
of production, the price he gets and his cost of production. It is within the power of the
farmers, to some extent, to increase their average income.
Goronel(1983) as cited by Anton(1995) stated that strawberry is a perennial herb
of the genus Fragaria, a latin name which refers to the fragrance of the berries. It belongs
to the Rosacea family. It is a lucrative source of income for farmers. It produces sweet
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
5
juicy fruit, one of the highly priced commodities in Baguio City and Benguet because of
the unique temperate climate suited for strawberry production.
According to Shoemaker (1975), it grows vegetatively in its first growing season.
During this stage, the plant grows and produces runners and stocks. These plants are
collected as planting materials. During the second cycle, the plant grows vegetatively and
also initiate and differentiate flower buds and eventually fruits.
Moron (1992) stated that farmers encountered problems in marketing. Problems
include erratic price and high perishability of fruits. She added that places with poor farm
to market roads, farmers may find it difficult to transport berries and much berries can be
damaged, a situation that leads to low price.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
METHODOLOGY
Locale and Time of the Study
This study was conducted in the different strawberry producing areas of La
Trinidad, Benguet specifically Puguis, Pico, Buyagan, Wangal, Balili and the Swamp
area. This was conducted on January 2006.
Respondents of the Study
The study took 30 respondents from the strawberry producing farmers from the
different areas of La Trinidad, Benguet.
Research Instrument
All data was gathered through a survey questionnaire, which was administered
personally by the researcher.
Data to be Gathered
The data gathered included production practices of the farmers, input utilization
data, production data and prices of both inputs and the strawberry. It also collected
information regarding the problems of strawberry farmers that were affecting their
production activity.
Data Analysis
The data collected were analyzed using descriptive statistics such as frequency,
percentage and average. A cost and returns analysis was also done.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
RESULTS AND DISCUSSION
Profile of the Respondents
Table 1 presents the general profile of the respondents in terms of civil status,
age, sex, educational attainment and number of family members.
Civil status. Majority ( 93.33%) of the respondents were married and only 6.67%
were single. This finding indicates that majority of the strawberry farmers are married
and with family to support.
Age. There were 7 or 23.33% respondents that belonged to the 20 – 30 years old
bracket, 12 or 40% belonged to the 31 – 40 years old bracket, 4 or 13.33% to the 51 – 60
years old, 6 or 20% to the 51 – 60 years old and only 1 or 3.33% to the 61 – 70 years old
bracket. This finding implies that majority of the farmers are still young.
Sex. Majority (93%) of the respondents was male and only 7% was female. The
result shows that more male were engage in strawberry farming than female.
Educational attainment. Majority (53.34%) of the respondents reached high
school level or high school graduates, while 23.33% each were elementary graduate and
college graduate. This implies that majority of the farmers in the different areas of La
Trinidad, Benguet have not reached college.
Number of family members. Majority (56.6%) of the respondents had 2 – 5
number of family members, 36.67% had 6 – 10 members and only 6.67% had 11 – 15
number of family members. The result shows that majority of the farmers had few family
members.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
8
Table 1. Profile of respondents
CHARACTERISTICS
FREQUENCY
PERCENTAGE
a. Civil Status
Married
28
93.33
Single
2
6.67
Total
30
100
b. Age
20 - 30
7
23.33
31 – 40
12
40.00
41 – 50
4
13.33
51 – 60
6
20.00
61 - 70
1
3.33
Total
30
100
c. Sex
Male
28
93
Female
2
7
Total
30
100
d. Educational Attainment
Elementary
7
23.33
High School
16
53.34
College
7
23.33
Total
30
100
d. Number of Family Members
2 – 5
17
56.67
6 – 10
11
36.67
11 - 15
2
6.66
Total
30
100
Mean
6
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
9
Source of Technology Used by the Farmers
Table 2 shows the sources of technology being used by the strawberry farmers of
La Trinidad, Benguet. It shows that 36.67% of the respondents developed their own
technology, 20% mentioned that the technology they were using comes from Benguet
State University (BSU), 30% mentioned that the technology they were using was
recommended by the Department of Agriculture (DA), another 20% said that the
technology they were using was recommended by technicians of chemical companies
while majority (53.33%) were adopted from other farmers. This finding shows that there
are farmers who do their own research, though not in a scientific way, and develop their
own technology. The finding also implies that farmers observe the practices of their co-
farmers and adopt their practices which they think are good and effective.
Table 2. Source of technology being used by the respondents
SOURCE
FREQUENCY
PERCENTAGE
Own Technology
11
36.67
Recommended by BSU
6
20.00
Recommended by DA
9
30.00
Recommended by Technicians
6
20.00
Adopted from other farmers
16
53.33
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
10
Varieties of Strawberry Planted by the Farmers
Table 3 presents the varieties grown by the farmers. There were only two varieties
of strawberry planted by the respondents. These were Sweet Charlie and Aliso. However,
there were only 3 or 10% that planted the Aliso while 100% of the respondents planted
the Sweet Charlie variety. The table further shows that majority of the farmers were
producing the variety which they used to grow. Only 27% of the respondents tried to
plant a new variety.
Table 3. Strawberry varieties grown by the respondents
VARIETIES
FREQUENCY
PERCENTAGE
Sweet Charlie
30
100
Aliso
3
10
Is the variety new to you?
Yes
8
27
No
22
73
Total
30
100
Sources and Types of Planting Materials Used
Table 4 presents the sources and types of planting materials planted by the
farmers. The result shows that majority (67%) of the respondents got their planting
materials from other farmers. Nine of the respondents propagated their own planting
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
11
materials while 5 or 16.67% got them from the Department of Agriculture. Two of the
respondents bought their planting materials from traders.
As to type of planting material planted, 87% planted the runners while 43% of the
respondents planted the mother plant. According to them, they use the mother plant when
the runners are not enough.
Table 4. Sources and type of planting material used
PARTICULAR
FREQUENCY
PERCENTAGE
a. Source
Other Farmers
20
66.67
Traders
2
6.67
Propagate it myself
9
30.00
Department of Agriculture
5
16.67
B. Type
Runner
26
86.67
Mother plant
13
43.33
Use of Plastic Mulching and source of the Technology
Table 5 shows that all the respondents were using the black plastic for mulching.
This technology was adopted by the respondents from different sources. These sources
were their co-farmers, BSU, DA and technicians of chemical companies. It was found
that majority of respondents adopted this from their co-farmers who first adopted it. Fifty
percent mentioned that they adopted it directly from BSU. Seven of the respondents
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
12
mentioned that they adopted it from the DA while one of them said that he adopted the
technology from the technicians of chemical company.
Table 5 . Use of plastic as mulching material
PARTICULAR
FREQUENCY
PERCENTAGE
Use plastic for mulching
30
100
Source of the Technology
Co-farmers
16
53.33
BSU
15
50.00
DA
7
23.34
Technicians of chemical company
1
3.33
Schedule of Planting
Table 6 shows that farmers do not plant their strawberry on the same month. The
schedule for planting of strawberry started from July to November. There were 2 farmers
that planted their strawberry in July , 6 or 20% in August, 13 or 43.33% in September, 8
or 26.67% in October, and 1 or 3.33% in November. This finding shows that most of the
farmers plant their strawberry on the month of September followed by October. Very few
farmers plant it on the month of July and November.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
13
Table 6. Month of planting
MONTH
FREQUENCY
PERCENTAGE
July
2
6.67
August
6
20.00
September
13
43.33
October
8
26.67
November
1
3.33
Total
30
100
Type and Source of Irrigation used
He different types of irrigation used by the strawberry farmers were drip
irrigation, flooding, and overhead irrigation. The most common way of irrigating
strawberry farm practiced by the farmers was the overhead type. Since majority of the
farmers get their irrigation water from the canal the farmers use manual labor to carry the
water using watering cans and pour the water over the strawberry plants. There were 5
farmers that used flooding and only 3 farmers used the drip type of irrigation.
As to sources of irrigation, 67% of the farmers get there irrigation water from
canals, 13 farmers get it from river, 4 farmers used water pump and 5 get their water from
the spring with the use of hose. The farmers who used water pump still get their water
from the river or from the canal.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
14
Table 7. Type and source of irrigation used
PARTICULAR
FREQUENCY
PERCENTAGE
a. Type of irrigation
Drip
3
10.00
Flooding
5
16.67
Overhead
28
93.33
b. Source of Irrigation
Canal
20
66.67
River
13
43.33
Water pump
4
13.33
Spring
5
16.67
Source of Capital for Strawberry Production
Strawberry farmers sourced out their capital from various sources. Majority
(60%) for the respondents used their personal savings, 9 or 30% borrowed from their
relatives and 6 or 20% borrowed from the cooperative or from the bank.
Table 8. Source of capital for strawberry production
SOURCE
FREQUENCY
PERCENTAGE
Personal savings
18
60
Borrowed from relative
9
30
Borrowed from cooperative/bank
6
20
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
15
Market Outlet of Strawberry Produce
There were three market outlet used by the strawberry growers , trading post at La
Trinidad, the traders, contract grower financer as presented in Table 9. Majority (70%) of
the farmers sell their strawberry produce to traders in Baguio and La Trinidad. Two of the
growers sell their products to retailers at the trading post while 8 or about 28% sell their
strawberry to contract growing financers. These farmers borrowed money from the
financer as capital in the production of strawberry and signed a contract to sell their
strawberries to the financer. The financer is responsible in bringing the fresh strawberry
to buyers in Metro Manila.
Table 9. Market outlet of strawberry produce
MARKET OUTLET
FREQUENCY
PERCENTAGE
Retailers at the Trading Post
2
6.67
Traders
21
70.00
Contract growing financer
8
26.67
Total
30
100
Mode of Selling
The finding shows that the strawberry producers either sell their products on cash
basis, credit or consignment. Table 10 presents that majority ( 53%) of the farmers sell
their strawberry on cash basis. This was followed by 44% that sell their product on
consignment basis. The consignment arrangement is just like the credit arrangement
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
16
because there were no cases where the buyer returned the unsold strawberries to the
farmers.
Table 10. Mode of selling product
MODE OF PAYMENT
FREQUENCY
PERCENTAGE
Cash
16
53
Credit
1
3
Consignment
13
44
Total
30
100
Average Area Planted
Table 11 presents that 17 or 56.67% of the respondents planted an area of 500 –
1,000 square meters. The area planted by 13.33% ranged from 1,001 – 1,500 square
meters. The same number of respondents planted an area of 1,501 – 2,000 square meters
while 16.67% planted an area that ranged from 2,001 – 2,500 square meters. The average
area planted to strawberry by all the respondents was 1,308 square meters.
This finding presents that in the five barangays of La Trinidad, Benguet
considered in this study, only few farmers were cultivating an area of more than 2,500
square meters.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
17
Table 11. Average area planted to strawberry
AREA
FREQUENCY PERCENTAGE
( in Sq. Meters)
500 – 1,000
17
56.67
1,001 – 1,500
4
13.33
1,501 – 2,000
4
13.33
2,001 – 2,500
5
16.67
Total
30
100
Mean area
1,308 sq. meters
Volume of Production
Table 12 shows the volume of strawberry produced by the respondents. There
were 6 or 20% that produced less than 500 kilograms, 33.33% produced about 500 –
1,000 kilograms, 26.67% produced 1,001 – 1,500 kilograms, only 2 or 6.67% produced
1,501 – 2,000 kilograms and there were 4 0r 13.33% that produced more than 2,000
kilograms. These were the farmers with wider area planted. The average volume of
production by all the respondents was 1,225.77 kilograms while the average volume
produced per 1,000 sq. meters per cropping was only 937 kilograms. This finding implies
that very few of the strawberry farmers produce more than 1,500 kilograms.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
18
Table 12. Average volume of strawberry produced
VOLUME PRODUCED
FREQUENCY PERCENTAGE
( in Kilograms)
Less than 500 kilograms
6
20.00
500 – 1,000
10
33.33
1,001 – 1,500
8
26.67
1,501 – 2,000
2
6.67
More than 2,000 kilograms
4
13.33
Total
30
100
Average volume per farmer
1,225.77 kilograms
Average volume per 1,000 sq. meters
937 kilograms
Average Price of Strawberry
Table 13 shows the prices received by the respondents. Five or about 17% sold
their strawberry for a price ranging from P39 – P54 per kilogram. The same number of
farmers received a price ranging from P55 – P70 per kilogram for their strawberry. Three
or 10% each received P71 – P86 per kilogram, P103 – P118 per kilogram and P119 –
P134 per kilogram. The average price received per kilogram per farmer was P84.47.
This finding shows that majority of the farmers received less than P100 per
kilogram for their strawberry. This is because when the price of strawberry is at its
lowest it can go as low as P30.00 per kilogram. On the other hand when price is high it
can go as high as P115 pesos per kilogram.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
19
Table 13. Prices received by the respondents
AVERAGE PRICE
FREQUENCY PERCENTAGE
( in pesos)
39 - 54
5
16.67
55 – 70
5
16.67
71 – 86
3
10.00
87 – 102
11
36.67
103 – 118
3
10.00
119 – 134
3
10.00
Total
30
100
Mean Price
P 84.47
Costs and Returns from Strawberry Production
The cost and returns analysis presents the total returns per farm and the total
expenses or cost of producing strawberry. Table 14 showed an average sales per farmer
amounting to P79,082.33 per cropping. The expenses incurred by the farmers in
producing strawberry included mulching material, which is the black plastic commonly
used by the farmer in the study area; land rent including the opportunity cost of owned
land, depreciation cost of farm tools and equipment, planting materials including the
value of framer-grown planting materials, farm supplies, and labor cost. Unpaid family
labor was valued using the current farm wage rate.
The total cost of production per farm, excluding family labor, was P61,692.17. Of
this total cost , land rent was the highest with P15,053 or 24.4% of total cost. This was
followed by hired labor cost with P12,445.83 or 20.17% then cost of planting materials
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
20
with P9,658 or 15.65%, and mulching material with P7,233.33 or 11.72% of the total
cost. The net income before deducting unpaid family labor was P17,390.17. If family
labor cost and interest on capital is deducted from the net farm income, the return to farm
operator’s labor and management is (P313.06). This finding shows that the income from
strawberry production could not pay for the operator’s labor and management. In fact the
return is negative. It could be that the average yield per farm is very low or the average
farm size was very small that made operator’s labor and management inefficient.
Table 14. Costs and returns from strawberry production
PARTICULAR
VALUE PERCENT
Average Sales
P79,082.33
Expenses or Costs:
Mulching material (1,096 m )
P 7,233.33
11.72
Land rent (
15,053.67
24.40
Depreciation
2,255.32
3.65
Planting material (5,117 pcs)
9,658.33
15.65
Fertilizer
5,879.65
9.53
Insecticide
4,467.97
7.24
Fungicide
3,215.00
5.20
Flower Inducer
471.43
7.24
Other supplies
1,041.43
5.20
Hired Labor
12,445.83
20.17
Total Cost
P 61,692.17
100
Net Farm Income
P 17,390.16
Unpaid Family Labor
P 16,616.68**
Interest on Average Inventory
P 1,086.54*
Returns to operators labor and management
( P 313.06)
** valued at current wage rate *Assuming a 16% interest rate per annual
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
21
Problems Met by the Farmers
Table 15 presents the problems encountered by the strawberry farmers. Almost all
the farmers mentioned they have problems on pest and disease control. According to
them, the pest and diseases of strawberry are difficult to control and so they have to use
strong chemicals to control these pests and diseases. These chemicals are very expensive
and so they have to spend much money to buy chemicals. The same number of farmers
pointed out that they have problem on low price of strawberry. The prices of inputs used
in production keep on increasing according to the farmers but the price of strawberry do
not increase also. The price is only high when there are few supply in the market but
during peak harvest season, the price usually go down. The other problems mentioned
were lack of capital as mentioned by 53%, marketing problem by 30%, lack of irrigation
by 37%, and perishability of the fruit as said by 27%.
Table 15. Problems encountered in strawberry production
PROBLEMS
FREQUENCY
PERCENTAGE
Pest and diseases are difficult to control
28
93
Lack of capital
16
53
Low price of strawberry
28
93
Lack of irrigation
11
37
High cost of farm inputs
24
80
Marketing
9
30
Perishability of product
8
27
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study on cost and return analysis of strawberry production in La Trinidad,
Benguet was conducted to determine the technologies used by farmers in strawberry
production and from whom was the technology learned, to determine the varieties of
strawberry grown, determine their volume of production, the cost and return from
production, and to find out the problems encountered by strawberry farmers in cultivating
strawberry.
There were 30 respondents interviewed from 5 selected barangays of La Trinidad,
Namely: Pico, Buyagan, Balili, Puguis, and Wangal, and including the Swamp area. A
prepared survey questionnaire was used as a guide.
Majority of the farmers were males, and married. Majority planted the Sweet
Charlie variety and adopted their technology from other farmers. They used runners and
mother plant for planting materials and the main source of their planting material is from
other farmers. All of the respondents used the black plastic as mulching material. They
learned this technology from other farmers.
Finding shows that the volume of strawberry produced by each farmer was
1,225.77 kilograms per cropping. The very low volume of production was due to the
small area planted per farmer. The average volume produced per square meter as
estimated was 937 kilograms. The finding implies that very few farmers produced more
than 1,500 kilograms.
The total cost of production per farm, excluding family labor was P61,692.17. Of
amount, land rent was the highest amounting to P15,053 or 24.24% of the total cost. This
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
23
was followed by hired labor cost with P12,445.83 or 20.17%. Cost of planting materials
and cost of mulching material comprised 15.65% and 11.72%, respectively. The average
net income before deducting unpaid family labor was only estimated at P17,390.17 . Iflue
of family labor and opportunity cost of capital would be deducted from the net farm
income, returns to operators labor and management would be negative, (P131.06). This
finding reveals that strawberry production could not even pay for the labor and
management effort of the farmer.
The major problems met by the farmers on their production activity were; pest and
diseases are difficult to control, low price of strawberry, high cost of farm inputs and lack
of capital to expand the area in order to increase the volume produced.
Conclusions
1. Majority of the farmers were male, married, adopted technology from other farmers
and used Sweet Charlie variety for production. All of them used plastic mulch in their
production.
2. Very few farmers harvested more than 1,500 kilograms of strawberry because of the
very limited area cultivated. This also lead to the very low net income per farm and a
negative return to operator’s labor. Lack of capital was a limiting factor in the
expansion of area cultivated.
3. Apart from limited capital, the farmers were also beset by problems like pest and
diseases are difficult to control, low price of strawberry, and high cost of farm inputs. All
of these problems contributed to the low production and income of farmers.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
24
Recommendations
1. The farmers should seek the technical assistance of technical people or experts in
strawberry production to assist them inorder to increase the yield of their crop.
2. The farmers should organize themselves into an association or become a member of a
ir cooperative, like the BSUMPC, that could help them finance their production activity
and at the same time make a tie-up with the cooperative for the marketing of their
produce. In this way they would be assured of a market and a reasonable price.
3. The farmers should increase the area they cultivate inorder to increase the volume of
their produce so that all the cost of production could be recovered plus a higher return to
their labor and management.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
LITERATURE CITED
ANTON, M.D. 1995. Strawberry production in Longlong, La Trinidad, Benguet. BS
Thesis. Benguet State University, La Trinidad, Benguet. Pp. 1-2
BSU/HARDC. 1996. Benguet Strawberry Technoguide. Benguet State University, La
Trinidad, Benguet. P.1.
BROWNE, N. and B. HOAG (1980). Understanding Economic Analysis. P. 159
McCONELL, C. R. 1975. Economic Principles, Problems, and Policies. 10t ed. P.521.
MICHAS. N. A. and L. G. REYNOLDS. 1983. Principles of Economics. 4th ed.
Homewood, Illinois. Northern Illinois University. P. 17.
MORON, P.L. 1991. Evolution and importance of strawberry production in the province
of Benguet. A documentation. BS. Thesis. Benguet State University, La Trinidad,
Benguet. P.7.
SHOEMAKERS, J. S. 1979. Strawberry Growing in Practical Horticulture. 2nd ed. New
York: Delmar Publisher, Inc. P. 351.
TIBAO, J.Y. 2001. Survey on postharvest handling and marketing of statice growers in
La Trinidad, Benguet. BS. Thesis. Benguet State University, La Trinidad,
Benguet.P.11.
Cost and Return Analysis of Strawberry Production
in La Trinidad, Benguet / Eugene C. Sayap Jr. 2006
Document Outline
- Cost and Return Analysis of Strawberry Production in La Trinidad, 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
- REVIEW OF LITERATURE
- METHODOLOGY
- Locale and Time of the Study
- Respondents of the Study
- Research Instrument
- Data to be Gathered
- Data Analysis
- RESULTS AND DISCUSSION
- Profile of the Respondents
- Source of Technology Used by the Farmers
- Varieties of Strawberry Planted by the Farmers
- Sources and Types of Planting Materials Used
- Use of Plastic Mulching and source of the Technology
- Schedule of Planting
- Type and Source of Irrigation used
- Source of Capital for Strawberry Production
- Market Outlet of Strawberry Produce
- Mode of Selling
- Average Area Planted
- Volume of Production
- Average Price of Strawberry
- Costs and Returns from Strawberry Production
- Problems Met by the Farmers
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- Summary
- Conclusions
- Recommendations
- LITERATURE CITED