THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

CHAPTER 1

INTRODUCTION

The Municipality of Conner is part of the Old Mountain Province. It was administrative under Kalinga Apayao at that time until it was created as a regular Municipality of Conner. The said municipality has a total land area of 91,384.42 square kilometers as indicated in the newly approved cadastral survey, CAD1010D. It ranks 3rd in size for the entire province representing 20.65% of the hectarage.

Conner has both surface and ground water. The former is abundantly scattered in the mountainside, which serve as watershed for the rivers. The latter is found in the lower elevated areas tranversed by the rivers. The average depth of ground water in these areas is 15 meters from the surface. This shows that the soil formation is permeable to river water. With the favourable climate, the soils of Conner are generally suitable for all kinds of agricultural plants. The municipality in particular already has established a plantation for fruit crops. High value crops such as banana, lanzones, rambutan and others are observed to thrive in different elevation in the municipality. With the abundance of these fruit crops, it will create an avenue for the province not just of the technology within the region but also of its Agri-tourism potential.

The challenge in the organization is on how to know what fruit is profitable. The benefit of this is that the people would prioritize so as lessen time, effort and money.

BACKGROUND OF THE STUDY

Business is an organization involved in the trade of goods, services, or both to consumers. It is prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services, or money. It may also be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a company.

Business can refer to a particular organization or, more generally, to an entire market sector. Compound forms such as agribusiness represent subsets of the word's broader meaning, which encompasses all activity by suppliers of goods and services. The goal is for sales to be more than expenditures resulting in a profit.

The suitable type of business in the Philippines is the agricultural business. This is a business of agricultural production. It includes agrichemicals, breeding, crop production (farming and contract farming), distribution, farm machinery, processing, and seed supply, as well as marketing and retail sales. That seminal work traces a complex value-added chain that begins with the farmer's purchase of seed and livestock and ends with a product fit for the consumer's table.

The discipline of agribusiness is changing to market centric. All agents of the food and fiber value chain and those institutions that influence it are part of agribusiness system. Within the agriculture industry, "agribusiness" is used simply as a portmanteau of agriculture and business, referring to the range of activities and disciplines encompassed by modern food production. There are academic degrees in and departments of agribusiness, agribusiness trade associations, agribusiness publications, and so forth, worldwide.

The UN's Food and Agriculture Organization (FAO) operates a section devoted to Agribusiness Development which seeks to promote food industry growth in developing nations.

In the context of agribusiness management in academia, each individual element of agriculture production and distribution may be described as agribusinesses. However, the term "agribusiness" most often emphasizes the "interdependence" of these various sectors within the production chain.

There are a lot of agricultural businesses in the Philippines; one of this is the fruit and vegetable farming and the resale of such fruits and vegetables to the consumers which is the focus of this study.

Fruit Business is a regulated business with specific rules and guidelines regarding fruit grade, method of transportation, storage requirements and freedom from disease or insect infestation.Most fruit brokers distribute fruit locally, which commonly they used in Conner Apayao, although some may have distribution on the national level. It is always best to start out small, at the local level, and expand your business slowly.Then you need to be careful on choosing what fruit should be purchased most. This is the most crucial step in forming a fruit business because this might be the cause of your profitability or losses in the future.

With the soil suitability and capability, fruit bearing crops are abundant in the Municipality of Conner-Apayao, the focused of the study. Having such capacity would mean a high dependence on establishing their own fruit business. Fruit business is very essential in the community, it would give opportunity not just to those average income earners but to those who cannot be employed, physically challenge can earned income through this.

The risk of having this business in the community specifically in the municipality of Conner is that we all knew that fruits are produced seasonally, but the market requires products throughout the year. Although this problem of matching product availability with consumer demand was solved in two ways: First, selling fresh products during harvest and shortly thereafter and second, processing the rest to meet demand during the rest of the year. But the next challenge in the community is on how they would know what fruit would give a high profit in the future. Thus, the vendors should make a preliminary study on the choices of the people despite the fact that it is not seasonal.

This study, the profitability of fruit business in the municipality of Conner, Apayao would give the vendors guidance in the near future for their upcoming peak of business and additional knowledge that would be helpful for their fruit business. This would be a guiding path for every vendors goal- profit oriented and fruit specification that would give a lot of profit.

People in urban areas might not appreciate this study because they might question the place itself. They might say this study would be helpful but would it be really helpful in the real world knowing Apayao was a bit an unknown to place.

But for everybodys knowledge, the problem on accessibility would not be a big deal in the Municipality of Conner because it is seventy three (73) kilometers drive from Tabuk City, which is the center of Commerce in the Kalinga. Other than the Cagayan Valley through a ninety four (94) kilometers drive from Tuguegarao City, known as the hottest city in the Philippines, via Tuao.

PURPOSE OF THE STUDY

In this study, the profitability of fruit business in the municipality of Conner Apayao, with a goal to help the community/farmers to prioritized which fruit should plant most as an effect it would lessen time, effort and money. Through this study, the community might use this as tool in the future as door towards agricultural business improvement not just in the community alone but towards exportation to other places. This study will also create an avenue for the province not just as a Commerce Industry but in the region as an Agri-tourism potential.

As an affect the competitive performance of a business concern, and the manner in which changes in technology affect the organisation's structure, long-term business strategy, product development, manufacturing, supply chains, distribution network, information needs and standard systems.

SIGNIFICANCE OF THE STUDY

A business, also known as an enterprise or a firm, is an organization involved in the trade of goods, services, or both to consumers.[1] Businesses are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services, or money. It can refer to a particular organization or, more generally, to an entire market sector, which encompasses all activity by suppliers of goods and services. The goal is for sales to be more than expenditures resulting in a profit. Getting profit from your business would be a question and maintaining it would a lot be a hard work.

The municipality of Conner Apayao having a favorable weather conditions for the past harvest crops helps mobilize all other resources within the area where large plantation exists. Through this, we all know that profit of fruit basket should be at its peak but how would the people maintain such if after the season of a certain fruit, the vendors will incur loss.

This study helps fruit business owners to have a proper planning that necessary to reach the target by identifying which is the most profit giving fruit and which is not. It would also give understanding on the demand of the people. As a result your educated guesses will be better and you can better plan and manage cash for.

As for the farmers, they would know the demand ability of consumers and they would predict what should be planted. Other than the entering of technology would be open because the farmers would think of what to use in order to plant even not in its harvest season.

For the community as a whole, they will no longer travel going to Tabuk City or Tuguerarao City because fruits that they are needed are available in there market. In would give them less expense and less time because the travelling alone would be 4 to 5 hours in one way and costs P150.

For the planning investors of fruit business, this would give knowledge for the success of their business.

Other than that, the place would be an avenue for a big market because entrepreneurs in neighborhood places would get fruits in the said place which are not available in their own market. Exportation is at its peak.

CONCEPTUAL FRAMEWORK

The approach use in this study is to give a background in the past harvest crops profit in different fruit bearing tree. It would include lanzones, rambutan, banana and citrus crops. Chapter 2 presents a review of literature of each crop, business continuity, and scenario futuring fields to provide a foundation for the study. Chapter 3 is comprised of an examination of the profitability of each crop, its continuity and scenario futuring fields. In Chapter 4, these gathered data are synthesized so as to compare each result with the other fruit crops. Chapter 5 presents the conclusion and recommendations.

The basis for conceptualizing the profitability of fruit basket in the municipality of Conner Apayao is to provide an option and guide to every fruit business owners, farmers, planning investors of the said business on what fruit has the greatest demand ability and can lead to a path to entrepreneurship and income generation aside from the basic knowledge that they knew from incurring profit through the season of a certain fruit but incurring also losses after such time.

Fruit Business is full of uncertainties in order to minimize such uncertainties; we need to have a proper planning in the business.

As experience for the past years, the fruit business owners would sell fruits that are available and planted by the farmers. Then after which, they will sell it to the consumers. The problem here is that, the farmers will just plant what they think is appropriate and if a lot of farmers would harvest the same fruit, it would fluctuate in the community resulting to low price and low profit. The big question would be, are the consumers really interested in such fruit? What if no, the effect would be loss on the part of the fruit business owners. It is because when the market is available of a certain fruit, they-the fruit business owners need to buy such thinking it would be what the consumers wants to buy. Then, it would be store in the warehouse or storage area for quite some time just enough passed the low price in the market due to abundant harvest of such fruit.

After which, the fruit business owner will then put it in his business. Commonly, the people would no longer be interest with the said fruit because it might be that the low price of abundant harvest of such is still in the market or it is not really the demand in the society. Due to obsolescence, the fruit business owner will just sell it at a price in which it cost him to buy such or at a worst case, lower of its original price. This study will focus on what is really demand fruit in the society that even in a high price; consumers would be willing to buy it.

Paradigm

INDEPENDENT VARIABLE:

Consumers Demand ability to a certain fruit.

Price and the less fluctuation of numbers of fruits in the community.

DEPENDENT VARIABLE:

Profit on Fruit Business Vendors and Farmers.

The paradigm illustrates the conceptual framework of the study and how profitability can be incorporated. This study will link between the two variables. As you can see, the price is one of the independent variable because through this study, the price will be at the hand of the vendors because of its demand ability.

The incorporation in the fruit business owners and farmers and its proper application with the end recipient of the study to be the consumers as such opening a pathway to career and lifelong profit.

THEORETICAL FRAMEWORK

The theory of supply and demand in classical economics, factors that are said to determine price, by correlating the amount of a given commodity producers hope to sell at a certain price (supply), and the amount of that commodity that consumers are willing to purchase (demand). Supply refers to the varying amounts of a good that producers will supply at different prices; in general, a higher price yields a greater supply. Demand refers to the quantity of a good that is demanded by consumers at any given price. According to the law of demand, demand decreases as the price rises. In a perfectly competitive economy, the combination of the upward-sloping supply curve and the downward-sloping demand curve yields a supply and demand schedule that, at the intersection of the two curves, reveals the equilibrium price of an item. More recent theories, such as indifference-curve analysis and revealed preference, offer more flexibility to the supply and demand theories created by proponents of marginal utility. The theory of elasticity is significant as well: it shows how certain commodities will bear a substantial rise in price if there is not an equitable substitute available, while other easily replaceable.

In this study, the theory of supply and demand is used, the only difference is that the farmers and fruit business owners will demand for a certain price not the consumers. To illustrate further in addition to the paradigm above is the illustration below.

Note that in the diagram, there is no arrow from diversity directly to profitability. This means that if we control for innovativeness, diversity is unrelated to profitability. Diversity on the different fruits. One that decreases price is the abundant number of a certain fruit. The farmers should stick on maintaining a number of fruits harvest and harvest more to which is in the demand.

If we look at the relationship between diversity and profitability, we might find that the more diverse companies have, on average, higher profitability than the less diverse companies. In lieu with the study, if we make diversity on fruit it means profitability. When the market is homogenous meaning one fruit at that season, people would go out of the market and find for other market that satisfies their demand.

The innovativeness of the farmers and the fruit business vendors would be the greatest tool for the profitability. Innovative in such a way that what is proper for the season but not really abundant at time, available in the community and can name price.

STATEMENT OF THE PROBLEM

The purpose of this study is to develop a guide that would entail profitability of fruit business in the Municipality of Conner Apayao.

1. What will be the fruit that give most profit?

2. How could the fruit business vendors and farmers integrate this study to have more profit.

HYPOTHESIS

(HA) As a result of study, there will be a profitability of fruit business in the Municipality of Conner Apayao?

(HO) As a result of study, there will be no profitability of fruit business in the Municipality of Conner Apayao?

LIMITATIONS

This study is specifically address in Conner Apayao. This study does not applicable to all fruit crops of bananas, rambutans, lanzones and citrus of other places due to the differences in the weather ,their topographical area and the fertility of the soil.

CHAPTER 2-DESIGN AND METHODOLOGY

RESEARCH AND DESIGN

LOCALE AND POPULATION

DATA GATHERING PROCEDURE

DATA GATHERING INSTRUMENT

VALIDITY AND RELIABILITY OF QUESTIONNAIRE

TREATMENT OF DATA

STATISTICAL TOOL