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Transcript of Predictors of Farmers’ Profitability in Sericulture 6...Predictors of Farmers’ Profitability in...
Predictors of Farmers’ Profitability in Sericulture
Pura S. Obille, Ph.D.1
The profitability of sericulture greatly depends on its capacity to continue
to live and grow sustainably. A farmer with a ¼ hectare mulberry plantation
can earn an average net income of P10,221 from fresh cocoons with an ROI of
68.55%. Other income with an average of P2,600 can be derived from the
sales of mulberry firewood, mulberry cuttings, sericulture wastes as organic
fertilizers, and intercropped vegetables. Employment can be generated up to
14 persons per year. The predictors of profitability in sericulture were
determined through Regression analysis which showed that 2 boxes of
silkworm reared in every rearing cycle with a total cocoon yield of 50kgs.
significantly influence the profitability of sericulture. Farming experience of 3
to 4 years gives the opportunity for the farmer to learn the craft hence
increasing his efficiency to manage sericulture activities. Educational
attainment of high school graduate or a college level will likewise increase
the probability of higher income in sericulture. This gives them the
opportunity to understand easily the methods and procedures in mulberry and
silkworm rearing. The use of tractor in land preparation increases the
efficiency of the mulberry plantation when proper cultivation techniques are
employed.
Key words: Sericulture, predictors, mulberry production, silkworm rearing,
profitability
1Researcher of the Don Mariano Marcos Memorial State University
(DMMMSU), Sericulture Research & Development Institute (SRDI)
Sapilang, Bacnotan, 2515, La Union, Philippines
I. RATIONALE
In the Philippine Development Plan 2011-2016 by the Aquino
administration, one of the broad strategies for inclusive growth is to pursue a
rapid and sustained economic growth and development that provides
productive employment opportunities improve the quality of life of the
Filipino, and empower the poor and marginalized sector of the society.
One of the sustainable industries in the Philippines that can provide
support to inclusive growth is Sericulture. It is an industry which has generated
appropriate technologies which are ecological-friendly as it enhances
environmental conservation, and makes use of locally available resources and
materials. Simultaneous to this, the high employment generation and labor
intensity of sericulture indicate the suitability of the industry to rural areas, and
silk production can provide long-term income generating opportunities as
evidenced by the growing market of silk in the Philippines.
Sericulture technologies work with the poor and other disadvantaged
groups and it may improve agricultural growth as it uses idle lands for the
production of mulberry as the sole food for silkworms that produced cocoons.
Hence, the creation of the Sericulture Research and Development Institute
(SRDI) by virtue of RA 7359. SRDI, being the national center for silk industry
in the Philippines, is mandated to educate and train sericulturists, conduct
researches, and extend technologies.
The competitive advantage of sericulture compared to other crops is
brought about by its environmental sustainability; within the framework of
national and regional plans and strategies; its social inclusion and gender;
ideal for smaller farmers and weaker sections of the society; suitable for
multiple crops/inter cropping; and the profitability potentials of silk by-
products produced.
In India, the sericulture industry requires low investment and it helps to
earn higher returns in short gestation period, due to this the farmers are getting
attracted to this sector and it is a best tool to improve the rural economy as
well as to improve their living standards. It is a boon to the rural population
associated with agriculture and helping them to avoid suicidal attempts by
earning very good amounts throughout the year (Jalba, 2015).
Sericulture as one of the fiber crops commodity in the Philippines should
be able to generate data that could figure out the promise of an industry in
order to meet national challenges and contribute to the regional development
plan. It is at this premise that a study on the predictors of sericulture
profitability is undertaken.
3
II. OBJECTIVES
1. To determine the profitability of sericulture in terms of the following:
a. Net income
b. Return of investment
c. Employment generation
2. To find out the factors that influence the profitability of sericulture to
wit:
a. Demographic and socio-economic characteristics of the farmers
b. Production characteristics and practices
c. Extension support services
III. CONCEPTUAL FRAMEWORK
A knowledge on the profitability of sericulture as affected by some
factors is deemed important for it seeks to develop effective and efficient
approaches for the sericulture farmers and beneficiaries to become more
productive and competent.
This investigation aimed to establish a workable machinery in
developing sericulture as a profitable enterprise. The utilization of
sericulture technology lies on the economic contribution to the development
of the industry.
The conceptual model on the next page identifies the independent
variables which include the demographic, and socio-economic variables, and
the production characteristics and practices in mulberry and cocoon
production.
The intervening variables which were hypothesized to affect the
profitability of sericulture are the support services extended by the SRDI as
to training, technology transfer and piloting and technical services. The
dependent variable conceptualized was profitability of sericulture measured
in terms of employment generation, net income, and return of investment
(ROI).
4
Independent Variables
Dependent Variable
Intervening variables
Figure 1.
Research Paradigm Of The Study
IV. REVIEW OF LITERATURE
Economic development strategies that seek to raise agricultural
output, create employment, and eradicate poverty often failed in the past
because economists and other policy advisers neglect to view the economy as
an interdependent social system where economic and non-economic forces are
continually interacting, in ways that are at times self-reinforcing and other
times contradicting (Todaro, 1989).
Jolly (1987) disclosed that the most important consideration in
sericulture is the effective utilization of family labor, particularly the aged,
handicapped, illiterate and women folk. One hectare of mulberry generates
remunerative employment to 12 to 13 persons throughout the year.
In the study conducted by Siddappaji, et. al. (1992), it was found out
that the average cocoon yield was higher when chawki worms were reared on
chopped leaves followed by chopped shoots later than that of whole leaves
offered from third instar till ripening.
Jeangpuangsri ( 1996), in her study on Thai Silk Cottage industry in
Khonkaen, Thailand, found out that a comparative data for cocoon profit for
the years 1992 – 1993, and 1993 – 1994 showed no significant variation, in
Demographic &
Socio- Economic
Variables
Production
Practices in Sericulture
Support Services
Support Services
Profitability of Sericulture
Net Income
ROI
Employment
generated
5
amount from 1992 – 1994. The change was substantial however, when it was
compared on year to year basis through T-test and the result yielded not
significant change. This result can be interpreted that the business has not
realized substantial profit for the years covered by the operation.
The salient features of sericulture and its high profitability nature can
be made known to the farmers through extension programs to popularize
sericulture. Sericulture required more labor compared to any other major crops
cultivated in the area with high labor cost incurred for mulberry cultivation
and silkworm rearing (Kumaresan and Prakash, 2001).
In the study conducted by Narasimhanna ( 1987), it was pointed out
that over 3 million people are employed in various fields of sericulture. It is an
industry that provides ample work for the womenfolk in the rural areas. Due
to the enforcing of new ideas by research institutions in mulberry and
silkworm handling among sericulturists, the industry is now practiced as a
main profession and as a major cash crop industry.
V. PROCEDURE/METHODOLOGY
A. Research Design
The study made use of the descriptive method of research. This was
used to describe the nature of a situation as it exists at the time of the
study and to explore the causes of particular phenomena ( Sevilla,
1992).
B. Population of the Study
The 28 farmer-cooperators of SRDI who had undergone mulberry
and cocoon production from 2011to 2014 were the respondents of this
investigation.
C. Data Gathering instrument
A survey questionnaire was utilized in gathering the needed data.
This was supplemented by documentary analysis, and interview of the
respondents.
D. Data Collection
The researcher conducted in-depth interviews with the farmer-
respondents. In such interviews, appropriate techniques that may serve
appealing to the respondents were applied in order to elicit correct
6
information, and create conducive atmosphere for free flow of answers
to questions asked.
E. Data Analysis
The data gathered in this questionnaire were tabulated and analyzed
using the cost and return analysis which includes all operating costs
incurred; net income; and ROI. This was computed to determine the
profitability of the sericulture industry. To determine the factors that
affect the economics of sericulture, the Regression analysis was used.
VI. DISCUSSION OF RESULTS
Production and Profitability Profile of the Respondents
Table 1 shows the production profile of the respondents from 2011 to
2014. The average area utilized for mulberry plantation was 0.26 hectare.
Most of the respondents reared at a rate of 1 – 2 rearings per year although a
smaller percentage reared for 3 – 4 rearings with an average of 2 rearings per
year with 2 boxes reared at the average. Total cocoon yield per year ranged
from 100 to 200 kgs. This comes simultaneously with the number of boxes
reared. The more boxes of silkworm reared will likely produce more cocoons.
The average cocoon yield per box is also reflected in the table of which a mean
of 25.2 kgs. per box was derived.
7
Table 1. Production Profile of the Respondents from 2011 to 2014
Indicator f %
Area utilized for mulberry plantation
.0l - .25 22 78.6
.26 -.50 3 10.7
.75 – 1.00 2 7.1
1.26 – 1.50 1 3.5
Total 28 100
Average = .26 ha.
Number of rearings
One to two 18 64.3
Three to four 8 28.6
Five to six 2 7.1
Total 28 100
Average = 2 rearings
Number of boxes reared
1 box or less per rearing 5 17.9
1.1 to 3 19 67.9
3.1 to 5 4 14.3
Total 28 100
Mean = 2
Total cocoon yield (kgs.)
100 and below 14 50.0
101 – 200 6 21.4
201 – 300 6 21.4
301 – 400 1 3.5
Above 500 1 3.5
Total 28 100
Average = 146.7 kgs.
Cocoon yield per box
10.1 – 15.0 1 3.5
15.1 – 20.0 5 17.9
20.1 – 25.0 7 25.0
25.1 – 30.0 9 32.1
30.1 – 35.0 6 21.4
Total 28 100
Average = 25.2 kgs.
8
Profitability Profile of the Respondents
The profitability of sericulture as to mulberry and cocoon production was
measured in terms of employment generation, net income, and return of
investment (ROI). Table 3 presents the profitability profile of the respondents
from sericulture. The table reveals the average net income from 2011 to 2014.
It could be gleaned from the table that the average income earned during
these years was P10,221 in a ¼ hectare mulberry plantation with an average
ROI of 68.5%. It is important to note that during mulberry production and
silkworm rearing, family labor was utilized and from the expenses identified
by the farmers, about 40% percent of the expenses went to labor inputs. Other
income in sericulture can also be derived from the sales of firewood coming
from pruned mulberry plants, mulberry cuttings, silkworm wastes during
rearing, and intercropped vegetables with an average of additional income of
P2,600 per year for a ¼ hectare mulberry plantation.
One of the indicators of the viability of sericulture is employment
generation. Based from the data gathered an average of 14 mandays can be
generated in a ¼ hectare mulberry area. The finding agrees with the finding of
Jolly (1987) when he found out that a one hectare mulberry generates
remunerative employment of 12 to 13 persons throughout the year. Among the
expenses incurred by the farmers, labor was the major input consumed and this
accounted to 40 to 45% of the operating costs.
The maximum utilization of family labor in sericulture is an indication of
economic viability. This corroborates with the finding of Kumaresan and
Prakash (2001) when they asserted that sericulture required more labor
compared to other major crops cultivated in the area with high labor cost
incurred for mulberry and silkworm rearing.
9
Table 2. Profitability Profile of the Respondents from 2011 to 2014
Indicator f %
Net income from silkworm rearing
below 1000
1001 to 10000
10001 to 20000
20001 to 30000
30001 to 40000
Total
Average = P10,221.00
Return of investment
20% and below
21 - 40%
41- 60%
61 - 80%
81 -100%
above 100%
Total
Average = 68.50%
Employment generation
1 to 5
6 to 10
11 to 15
16 to 20
21 to 25
26 to 30
Total
Average = 14
Other income in sericulture
Firewood 112,698
Cuttings 58,000
Wastes 28,707
Intercrop 133,664
Average = 2,600 per year
3
13
7
2
3
28
5
3
5
8
3
4
28
3
4
11
6
2
2
28
10.7
46.4
25.0
7.10
10.7
100
17.9
10.7
17.9
28.6
10.7
14.2
100
10.7
14.2
39.3
21.4
7.10
7.10
100
Employment generation = Average of 14
10
Predictors of Sericulture Profitability
The profitability of sericulture greatly depends on its capability to
continue to live and grow successfully. Hence, it is deemed important to
identify the predictors of its success. The factors which were included in the
study are shown in Table 3.
Table 3. Factors that might be considered as Predictors of Profitability
Personal,
Demographic and
Socio-economic
Factors
Extension Support
Services
Productivity and
Production Practices
in Mulberry
Production and
Silkworm Rearing
Age
Sex
Civil Status
Educational
Attainment
Household Size
Years in Sericulture
Farming
Number of trainings
attended
Frequency of
Extension Workers’
Visit
Number of technical
assistance extended
1. Mulberry area
2. Number of rearings
3.Number of boxes
reared
4. Total yield
5. Average yield per
¼ hectare mulberry
area
6. Farm identification
and site selection
7. Soil characteristics
and topography
8. Kind of planting
materials
9. Method of land
preparation
10. Method of
irrigation and
fertilization
11. Type and size of
rearing house
12. Method of leaf
harvesting and
preservation
13. Variety of
silkworm reared
14. Method of
silkworm feeding
15. Method of
silkworm mounting
11
Regression analysis was utilized to determine the factors that significantly
contributed to the profitability of the farmer-respondents.
Statistical analysis using the SPSS showed that of all the factors included
in table 3, only the number of boxes reared, total cocoon yield, years in
sericulture farming, educational attainment of the farmers, and method of land
preparation were found to significantly affect the profitability of sericulture.
These were manifested by the regression coefficients of .994, .987, .996, .996,
and .998 respectively which were all significant at .05 level.
From this finding, it is recommended that every possible measure to
increase cocoon production should be applied in order to uplift the income of
the farmers. These may include proper rearing management, and the full
utilization of the mulberry plantation so that additional number of boxes of
silkworm will be reared for more cocoon yield. Method of land preparation
was also an indicator of profitability.
Table 4. Summary Table for Regression Analysis on the Demographic and
Socio-economic Factors and Production Practices Affecting the
Profitability of Sericulture
Variables Regression
coefficients
Significance
Number of boxes reared
Total yield
Years in sericulture farming
Educational attainment
Method of land preparation
.994
.987
.996
.996
.998
.001
.000
.009
.040
.003
Further analysis of the Regression coefficients pointed out predictors of
sericulture profitability as shown in table 5. For a ¼ hectare mulberry
plantation, 2 boxes of silkworm reared in every rearing cycle of 3 to 5 for a
period of one year with a total cocoon yield of 50kgs. per rearing will
significantly influence the profitability of sericulture. Farming experience of 3
to 4 Farming experience of 3 to 4 years gives the opportunity for the farmer to
learn the craft hence increasing his efficiency to manage sericulture activities.
Educational attainment of the farmer could either be a high school graduate or
a college level. This gives them the opportunity to understand and comprehend
easily the methods and procedures for more efficient and effective mulberry
and silkworm rearing techniques. The use of tractor is hereby recommended as
12
this will increase the efficiency of the mulberry plantation when proper
cultivation techniques are employed.
Table 5. Predictors of Farmers’ Profitability in Sericulture
Variables Predictors
Number of boxes reared
Two boxes per rearing for ¼ hectare
Total yield
50 kgs. per rearing for ¼ hectare
Years in sericulture farming
3 to 4 years
Educational attainment Preferably high school graduate to
college level
Method of land preparation Tractor
VII. CONCLUSIONS AND RECOMMENDATIONS
Conclusions
Based from the findings, the following conclusions were derived:
1. The sericulture technologies on mulberry , and cocoon production were
profitable as evidenced by a positive ROI. The net income derived from
sericulture, although minimal is an indication of economic viability.
Employment was also generated up to 14 mandays throughout the year.
2. The total cocoon yield, number of boxes reared and higher number of
years in sericulture farming increased the probability of higher income and
ROI in sericulture. Higher level of education significantly contributed to
the economic viability of sericulture. Higher economic yield can be
obtained when tractor is used for land preparation.
13
Recommendations
From the conclusions drawn, the following recommendations are
considered:
1. The findings of this study should be used by SRDI management,
researchers and extension workers in their attempt to improve their
management skills and capabilities towards effective efforts for the
popularization of the sericulture industry.
2. To efficiently utilize the mulberry areas and fully maximize all other
resources of the farmer, an effective scheme has to be developed which
include among others a multiple land use management system and
organic farming.
3. A regular monitoring and evaluation on the programs and services
availed by the farmers should be done to enhance existing opportunities
of farmers and complement them with innovations to overcome
constraints to production.
4. The factors that were found out to have influenced profitability of
sericulture should serve as entry points for future sericulture farmers and
for the improvement of present beneficiaries.
5. There is also a need for SRDI to establish tie-up with cooperating
agencies, LGUs, private organizations to expand capitalization and
ensure synchronization of related support services.
6. The findings of this study may serve as basis for policy makers in
planning and redirecting the nature and practices in research and
extension services of research and development institutes in the
Philippines.
VII. BIBLIOGRAPHY
Jalba, Hiware. 2015. Scenario of sericulture industry in Maharashtra
State, India. Journal of Entomology and Zoology Studies. 2015.
www.entomoljournals.com. Accessed on January 15, 2016.
Jeangpuangsri, Nuntawan. 1996. “Thai Silk Cottage Industry in
Chonnabot, Khonkaen, Thailand: Its Operation and Management”.
14
M. A. Thesis in Master in Management. Gregorio Araneta
University Foundation, Caloocan City.
Jolly, Manject S. 1987. Appropriate Sericulture Techniques.
International Center for Training and Research in Tropical
Sericulture. Central Sericultural Research and Training Institute,
Mysore, India.
Kumaresan, P. and Nijaya Prakash, N. B. 2001. Economics of
Sericulture Vis-à-vis Competing Crops in Erode District of Tamil
Nadu. Research Paper in Central Sericultural Research and
Training Institute, Mysore, India.
Narasimhama, M. N. 1987. Sericulture Industry and its potential in
India. Indian Council of Agricultural Research. Rekha Printers
Pot. Ltd. New Delhi, India.
SEVILLA, C. 1992. Research Methods. Revised Edition. Manila: Rex
Printing Co. Inc.
Siddappaji, C. et. al. 1992. Advantages of Rearing Silkworms
throughout on Mulberry Shoots. University of Agricultural
Sciences, Bangalore, Karnakata, India.
THE PHILIPPINE DEVELOPMENT PLAN 2011-2016. Chapter 4:
Competitive & Sustainable Agriculture & Fisheries Sector. June
21-2011. www.ibon.org. Accessed on December 8, 2012.
Todaro, Michael. 1989. Economic Development of the Third World. 4th
Edition. New York, Longman Inc.