42

Chapter 1INTRODUCTIONAquaculture in the Philippines has a long history and involves many species and farming practices in diverse ecosystems. Most of the production comes from the farming of seaweed, milkfish, tilapia, shrimp, carp, oyster and mussel. Aquaculture contributes significantly to the country's food security, employment and foreign exchange earnings. Aquaculture is growing much faster than capture fisheries. However, the global position of the Philippines in aquaculture production has fallen steadily from 4th place in 1985 to 12th place today. The Philippines now contributes only a little over one percent of global farmed fish production compared to five percent previously. According to the 2002 Census of Fisheries of the National Statistics Office, there was a total of 226 195 aquaculture operators working in: fishpond operation (126 894), seaweeds farming (73 549), fish pen operation (5 325), oysters farming (3 041), mussel farming (2 422) and others (14 964). Seaweeds industry leaders estimate that almost 180 000 families are directly dependent on seaweed farming. There is no available data on gender and employment in the aquaculture sector, but women are an integral part of the production and post harvest activities. The various grow-out and hatchery system require skilled labor and technician personnel. There are important links with the various sectors supplying the inputs: fry/fingerling production/gathering and trade, fertilizer and

chemical, construction materials and feed ingredients, and feed manufacture, transport and storage. Many people work in the associated sectors: post-harvest processing, transport and storage, marketing and financing. Highly trained staffs are involved in research, development and extension. The few studies available on some farming system give some kind of picture of the human resources in aquaculture. (http://www.bfar.com.ph)Aquaculture in the Philippines is carried out in diverse ecosystems (freshwater, brackish water and marine) using various culture systems with different degrees of intensification. For example, milkfish is cultured in brackish water ponds, fish pens in freshwater lakes, fish pens in shallow bays, fixed or floating lake-based cages, and sea-based cages. Probably no other aquaculture species is produced under a wider range of environment and culture systems.

Aquapolyculture is the practice of culturing more than one species of aquatic organism in the same pond. The motivating principle is that fish production in ponds may be maximized by raising a combination of species having different food habits. The mixture of fish gives better utilization of available natural food produced in a pond.

The aquapolyculture systems put considerable emphasis on the natural productivity of the water bodies. Photosynthetic and heterotrophic food chains operate in the process of energy transfer from solar radiation to the fish biomass. Producers, consumers and decomposers are the key players in these chains.

In a photosynthetic food chain, the primary producers (phytoplankton and bacterioplankton) synthesize organic matter and utilize inorganic nutrients in the presence of solar radiation. These are grazed by the zooplankters (primary consumer level) which, in turn, are preyed upon by the higher level consumers like fish and shellfish.

The heterotrophic food chain is characterized by intense activity of the decomposers. These decomposers degrade organic matter into simpler compounds that are further mineralized into inorganic nutrients. The detritus resulting from the process becomes an important food source for fish and shellfish. This also reduces the number of steps in the energy transfer process, enabling higher productivity levels.

The future growth of Philippine aquaculture may not be sustained unless new markets are developed, market competitiveness is strengthened and farming risks are reduced. In this age of international trade and competition, the Philippine aquaculture industry needs to plan and implement a development and management programme with a global perspective. The Philippine government and the private sector are in the process of preparing a national fisheries development plan which includes aquaculture.

The main aim of this study is to determine the current status of the milkfish, crab and shrimp production particularly in De La Cruz Aqua Farm in Infanta, Quezon. However, no studies had been conducted to determine the present situation in the said activity. Hence, this study was conducted.Statement of the Problem

The main concern of the study is to determine the status of De La Cruz Aqua Farm in Infanta, Quezon. Specifically to answer the following questions;

1. What is the demographic profile of the respondents?

2. What is the historical background of De La Cruz Aqua Farm in Infanta, Quezon?

3. What are the species raised in De La Cruz Aqua Farm in Infanta, Quezon?

4. What are the production and marketing practices employed in the business?

5. What is the financial status of the business?

6. What are the problems encountered by the business and the solution applied to solve the problems?

Objective of the Study

The study is mainly concerned with the presentation and analysis of De La Cruz Aqua Farm in Infanta, Quezon.

Specifically it aims to:1. present the demographic profile respondents;2. determine the historical background of De La Cruz Aqua Farm in Infanta, Quezon;3. identify what species are raised in De La Cruz Aqua Farm in Infanta, Quezon;4. determine the production and marketing practices employed in the business;5. present the financial status of the business; and6. identify the problems encountered by the business and the solution applied to solve the problems.Significance of the Study

The result of the study on De La Cruz Aqua Farm in Infanta, Quezon will provide specific information which may help possible future entrepreneur in their decision making.

Student and researcher as the result could provide relevant information and data needed in their study.

The Local Government Unit of Infanta, Quezon in determining the situation, condition or status of production, marketing, financial aspect and precautionary solutions to problems in farming by a well known experienced farmers.

Moreover, the result could benefit the Laguna State Polytechnic University particularly the fishery prospect as the results could be a source of information for the improvement of the project.Scope of the Study

The study focuses on the status of De La Cruz Aqua Farm in Infanta, Quezon. It included the discussion on the production and management operations of the farm. The financial status and problems encountered by the farm are also discussed. This study was conducted from December 2008 to February 2009.Limitation of the Study

The study is limited by the accessibility of the study area and the exactness of the data in terms of financial status.

Conceptual Framework of the Study

Figure 1 Shows the conceptual model of the study, it shows that the status of the De La Cruz Aqua Farm in Infanta Quezon is affected by the demographic profile of the respondents like sex, age, educational attainment and trainings; quality and quantity of product, and the production and marketing practices employed by the respondents.

Definition of Terms

Terms used in the study will serve as the basis of understanding the following, most of this definition have been adopted the used of references in technical, operational meaning used in profile on the production of De La Cruz Aqua Farm in infanta, Quezon.

Aquaculture is the farming of freshwater and saltwater organisms including mollusks, crustaceans and aquatic plants. Unlike fishing, aquaculture, also known as aqua farming, implies the cultivation of aquatic populations under controlled conditions.

Aquaculture is divided in three distinct environment as: Fresh, Brackish, Salt water

Brackish Water is a combination between fresh and salt water that are found in swamp area capable of supporting aquaculture.

Demographic Profile refers to the personal information about the respondents as age, sex, educational attainment, civil status, year in business and source of capital of the respondents.

Financial Status refers to the actual condition of the farm regarding their financial performance. It may be indicated by the profitability, solvency and liquidity ratios as tools for the analysis.

Marketing Practices / Strategies the application of proper wholeselling direction and encouraging the flow of goods milkfish, shrimp, and crab from producer to consumer.

Polyculture is a strategy to utilize the different food niches in an aquatic system and harness maximum possible amounts of nutrients and energy in the form of fish. Aimed at harvesting the productivity at different tropic levels, the approach incorporates different fish species, based on the availability of food and the feeding habits of the species in this case.

Production Practices refers to feeding, harvesting, stocking water management, post harvest handling of milkfish, shrimp, and crab.

Profitability is the ability to make enough profit to attract and hold investment capital to determine whether the profit that can be earned is satisfactory expressed in this terms.

Problems difficulties encountered by the managers, owners, workers of the business that needs to worked out.

Solutions answers to an problem, method or process by which answers is obtained.

Species group of individuals closely related in structure, capable of breeding within the group but normally outside it.

Chapter ll

REVIEW OF RELATED LITERATURE

The fisheries sector of the Philippines is a significant contributor to its economy providing livelihood and foreign exchange. Thus, several studies conducted by different researcher were presented as follows to emphasize that aquaculture is one of the lucrative enterprises in the country.

Cruz (1997) Most of the fishponds in the Philippines are brackish water ponds (239323 ha) developed out of mangrove swamps. Land is a premium commodity in the Philippines, so it is rare to convert good agricultural land into fishponds because this would lower the market value of the land.

Yap (1999) While much of the country's arable land is already being utilized for agriculture, vast areas, particularly marine waters, are still under-utilized with respect to aquaculture. With over 17460 km of coastline, 246063 ha of swamplands, 200000 ha of lakes, 31000 ha of rivers and 19000 ha reservoirs, the Philippines has one of the most extensive water resources in the world. With the intensification of fishpond production and increasing utilization of coastal waters for cage and pen aquaculture, there is now increasing demand for feeds as opposed to fertilizers. The supply of most locally available feedstuffs is already limited. Seasonal availability and natural disasters compound this problem. The industry continues to be dependent upon the use of imported raw materials such as fishmeal and soybean oil meal.Dureza (1995) According to a 1995 assessment of the milkfish industry most traditional milkfish farmers were not aware of proper milkfish farming practices. However, progressive, educated and well-read milkfish farmers are willing to explore new technology to improve production and profitability. They employ semi-intensive and intensive milkfish culture systems, and some of them even carry out milkfish hatchery. In milkfish breeding and hatchery technologies most technicians lack the necessary skills and knowledge to carry out such activities. Those involved in milkfish processing do not have adequate knowledge of how to process value-added products.

A 1996 study of tilapia grow-out pond operators showed that farmers had an average age of 47. Small farm (below 4.43 ha) operators are on average younger (44 years old), with a high percentage 30 40 years old. Large farm (4.43 ha and above) operators are older (51 years old). The average number of completed years of education of small and large farm operators is 10 and 11 years, respectively. About 41 percent of the large operators and 47 percent of the small operators have a college degree.

Aquaculture species cultured include milkfish (Chanos chanos), Nile tilapia (Oreochromis niloticus), Mozambique tilapia (Oreochromis mossambicus), common carp (Cyprinus carpio), bighead carp (Aristichthys nobilis) and others, walking catfish (Clarias batrachus), North African catfish (Clarias gariepinus), snakehead murrel (Channa striata), giant gourami (Osphronemus gouramy), barramundi (Lates calcarifer), grouper (Epinephelus spp.), orange-spotted spinefoot (Siganus guttatus), vermiculated spinefoot (Siganus vermiculatus), spotted scat (Scatophagus argus), giant tiger prawn (Penaeus monodon), other penaeid prawns: Indian white prawn (Penaeus Indicus), banana prawn (Penaeus merguiensis), greasyback shrimp (Metapenaeus ensis), mud crab (Scylla serrata, Scylla oceanica), giant freshwater prawn (Macrobrachium rosenbergii), lobsters (Panulirus spp.), slipper cupped oyster (Crassostrea iredalei, Saccostrea spp.), green mussel (Perna viridis), abalone (Haliotis asinine), and seaweed (Eucheuma spp., Gracilaria spp., Caulerpa spp.).

The three major polyculture species in the Philippines are:

1. Milkfish (Chanos chanos).

2. Shrimp (mainly giant tiger prawn Penaeus monodon).

3. Crab (mainly alimasag Neptunus pelagicus)Corre (1995) Shrimp farming in the Philippines uses a variety of systems which are affected by the climate, availability of capital, site location, sources of water supply, the marketing of harvested products and the availability and cost of farm inputs. Shrimp farming follows the traditional, semi-intensive and intensive system.

Gallardo (2001) Oyster and mussel farming takes place in open coastal waters. The methods commonly used for oyster culture are bottom, stake and hanging either from a rack or raft-rack. The stake method is the most commonly used. In terms of productivity, the hanging method is the most productive, followed by the stake, then the bottom method. Bottom and stake methods are used in shallow (intertidal) areas, whereas the hanging method is used in deeper areas.

Cruz (2004) approximately 18 percent of the food fish supply currently comes from aquaculture. Milkfish and tilapia represent the bulk of aquaculture production. From 1998 to 2002, milkfish and tilapia production registered an annual average growth of 11.7 percent, compared to only 2.6 percent for capture fisheries. In 2002, the combined production of milkfish and tilapia of 364289 tonnes represented 8 - 9 percent of total animal meat consumption. The prospects for further increasing aquaculture production are therefore enormous. In the last five years, abundant production from aquaculture has made farmed fish increasingly more affordable compared to wild-caught fish. Over a ten-year period, milkfish and tilapia prices increased by an average of 3.4 percent and 1.7 percent respectively, as compared to 7.3 percent for the small pelagic shortfin scad Decapterus macrosoma.

Chapter IIIMETHODOLOGYThis chapter includes the discussion of the research design, the subject of the study and sampling process, the research materials and instrument that will be used in the study, the procedure in data gathering and analysis of data in order to solve the chosen problem.

Research DesignMethod of research applying case study technique was used in this study. Descriptive method is designed for the investigator to gather information about the present existing conditions. The principle aims in employing this method to describe the nature of a situation as it exist at the time of the study and to explore the causes of the particular phenomena (Travers 1978). A descriptive study determines and report the way things are. Just a historian research has no control over what was descriptive research has no control over what is and it can only measure what already exist. When detailed study is made about one person or unit over a considerable period of the time, the research is engaging in what is known as a case study. The SubjectThis study was conducted at De La Cruz farm in Barangay Abiawin Infanta, Quezon. The owner of the business and all of the laborers served as the respondents of this study.

Research Materials and InstrumentTo attain the objective of this study an interview was conducted with self formulated questions as a guide to gather the necessary information needed in the study.

The question for the producers was divided into personal and business information. Questions were prepared in Filipino particularly Tagalog to facilitate collection of information.Data Gathering ProcedureThe business owner and hired laborers was interviewed to gather necessary information regarding the technical, marketing and financial aspect of the firms as well as the problems encountered and the corresponding solutions applied.

Likewise periodic visitation on the farm was done to observe and gather additional information relevant to the study. In addition, the financial records of the firms were also evaluated.

Analysis of DataThe data on production and marketing was organized and analyzed using the means and standard deviation. Financial analyses were computed using the following ratios. The formulas that were used in the analysis of data is presented below as follows:The profitability of the business was determined using profitability ratio such as Return on Sales (ROS) and Return on Assets (ROA). The formulas profitability ratios:

1. Profitability Ratio

Return on Sales =

Return on Assets =

2. Solvency Ratio

Total Assets turn-over= Chapter IV

RESULTS AND DISCUSSION

This chapter presents the information gathered from the respondents such as demographic profile of the respondents, production practices, marketing practices, financial aspect, problem encountered and solutions applied.

Historical Background

De La Cruz Aqua Farm is located in Barangay Abiawin Sur, Infanta, Quezon. The farm is presently owned and managed by Mr. La Verne O. De La Cruz, fondly called Mang Boy. Mang Boy is 50 years old a BSMIE graduate from Mapua Institute of Technology, married to Elsa De La Cruz and blessed with three children. He was a former member of Philippine Army.

Originally, the farm is owned and managed by Mr. Vicente Ocampo Mang Boys paternal grandfather. The farm operation actually started in 1956 and had milkfish and prawn for its products. As Lolo Vicente grew older, his son in law Mr. Hugo De La Cruz Mang Boys father assisted him and later managed their 28 hectare farm on his own. De La Cruz farm continuously grew as time goes by.

In 1980 from his resignation from Philippine Army Mang Boy started operating and managing the farm with Php100,000.00 additional capital.

One of the main reasons why they engaged in this business is that Mr. La Verne De La Cruz knows the proper management of the farm and they wanted to supervise the said business personally. Although he has brothers and sisters he is the only one who stayed here in the Philippines. Aside from that, they wanted to support their three children through this business. At present, their daughter is now a nurse and his second daughter is a graduating nursing student in Far Eastern University.

Location and Description of the Farm

The De La Cruz aqua farm is located at Brgy. Abiawin Sur, Infanta, Quezon. The farm has an area of 28 hectares. Water is not a problem because of the river that is connected to the pond through irrigation system.

The owner has two nurseries for the new fingerlings. There is a pond for rearing, transition, option pond, bangus pond, shrimp pond, catching pond and polyculture pond.

The map of Quezon Province, Infanta, Quezon, Brgy. Abiawin Infanta, Quezon and the location map of the De La Cruz Aqua Farm and the farm lay-out of the De La Cruz Aqua Farm are shown in Figures 2,3,4,5 and 6.

Figure 2. Map of Quezon Province

Figure 3. Map of Infanta, Quezon

Figure 4. Map of Barangay Abiawin, Infanta, QuezonOrganizational Structure of the Farm

Figure 7 presents the organizational structure of the business. It is composed of the owner, manager and the laborer as presented in organizational chart.

The owner manages the production, while the manager in the marketing of the products. Mr. La Verne O. De La Cruz being the owner and manager of the farm, he is responsible for all the production and financial management of the farm. As the manager, he monitors and supervises all the farm activities.

The laborers are responsible in performing all the manual activities in the

De La Cruz aqua farm.

Figure 7. Organizational Chart of De La Cruz Aqua Farm

Demographic Profile of the Respondents

Table 1 shows the demographic profile of the respondents. The record shows that all there is only one female and the rest is male. All respondents are residing in Infanta, Quezon. In terms of educational attainment, the owner was the only one who obtained college degree and the rest of the respondents or the laborers had taken basic education either elementary and high school level only.Table 1. Demographic profile of the respondents.

RESPONDENTS RESIDENCE AGE CIVIL STATUS GENDER EDUC. ATTAINMENT YEARS OF EXPERIENCEOwner Infanta, 50 M M College 28

QuezonOwner Infanta, 47 M F College 25

QuezonLaborer 1 Infanta, 32 M M Elementary 1

Quezon

Laborer 2Infanta, 40 M M High School 20

Quezon

Laborer 3 Infanta, 25 M M High School 10

Quezon

Laborer 4 Infanta, 35 M M High School 15

Quezon

Laborer 5Infanta, 45 M M High School 15

Production

This part discusses all the production activities performed in De La Cruz aqua farm.Inputs

Table 2 shows the production inputs of De La Cruz aqua farm. It shows that the inputs are grouped into stocks consisting of fingerling, crablets and fry; tools and equipments.

Table 2. The production inputs of De La Cruz aqua farm.

STOCKSTOOLS FEEDS / FOOD BIOLOGICAL

FingerlingsNetsFry Mash

CrabletsNetsFry Mash

FryNetsFry Mash

PracticesPond Preparation

Preparation of the pond is very important for any pond culture operation. It is purposely carried out to condition the milkfish fingerlings, crablets and shrimp fry for successful growth of food organism. It consist of draining the pond, application of chicken dung and treating pond to prevent predators and parasite which destroys the natural food of fish and crabs.

During low tide the water in the pond is totally drained through opening the pond gate to capture the predators which remain at the bottom of the and prevent pond the entrance of new water and predators.

After eliminating the predators the pond supplied with organic fertilizer like chicken dung or some other animal manure available. Application of fertilizer is done for 4 to 7 days. The water was introduced at the pond at a dept of 15 t0 20cm when lab-lab seen growing in the water, level of water is increased and maintained at 70 to 80cm at the proper pond water level is 120-130cm at the canal portions.

Plate 1. The laborers checking the level of the water.Stocking

Mang Boy bought milkfish fingerlings from Fry Grounds along coastal area at Barangay Libjo, Infanta, Quezon while the shrimp fry and crablets are bought from Barangay Abiawin in pakatan.

SOURCE OF STOCKS SIZE UNIT PRICE (PHP)VOLUMEFREQUENCY OF

PROCUREMENT

Fingerlings4cm 4.540,000 1

Crablets1.7cm 65,000 1

Fry0.5cm 12cents50,000 3

The fingerlings, shrimp fry and crablets are stocked in the nursery ponds for a few days then transferred, separately to a bigger pond to provide wider spaces for growth. Two ponds are for the stock to a condition the three in polyculture method.

Plate 2. The owner selecting and buying milkfish fingerlings. Feeding

The fingerlings are fed twice a day in morning and in the afternoon using automatic feeder. The feeds dispersed automatically as the milkfish, crab and shrimp touches the pipe attached to it. One compartment contained 40,000 fingerlings and the laborer provides commercial feed like fry mash.

When the production of natural fish food organism went down in the ponds addition of supplementary feeds was done. Commercial feeds, is fed to the growing milkfish, shrimp and crab to enhance their growth. Commercial feeds are given for 17 weeks. The feeds are broadcasted on the pond everyday.

Harvesting

The fish were harvested at the age of four months. At this stage the milkfish is about 2 to 3 pieces per kilogram while the shrimp and crabs are harvested depending on their sizes. The crabs are harvested when they are the size of an adult closed fist. The shrimp are about 300 grams per pieces. During low tide they open the main gate of the lobo-lobo canal and let the water flow until it is drain. In catching the milkfish they use a net, they will surround the pond with net to catch the milkfish.

During the high tide when the canal is filled with water the gate of grown out pond is opened and the water is allowed to enter, forcing the fishes to enter in the canal. Then the gate is closed. This method of harvesting of milkfish is called pasabang. They used lumpot bag net for the final harvesting. Lumpot is attached in one end of the gate and serve as bag for catching milkfish.

While in harvesting the shrimp they used also lumpot when they catch the shrimp they pick out the small shrimp and put back in the pond. They only harvest shrimp in perfect marketable size. In harvesting crab they used cage type net. They put the cage into the pond to catch crab the average size of the crab is 2 pieces per kilo.

Plate 4. Harvesting the bangus, shrimp and crab.Marketing Practices

Marketing Channel

Mode of selling done by the owner-respondents is in wholesale at retail basis paid by cash of financing. Marketing of milkfish is done twice a year. While the shrimp and crab is done three times a year.

Figure 8. Marketing Channel of De La Cruz Aqua FarmMode of Pricing

The prices of milkfish, crab and shrimp depend on the current market demand and supply. Table 2 shows the prices of milkfish, crab and shrimp from the year 2006 to 2008.Table 4. Price per kilogram of milkfish, crab and shrimp for the last three years in PhpPRODUCT 20062007 2008

Milkfish50.0060.0080.00

Crab150.00200.00300.00

Shrimp100.00120.00150.00

Table 5. Present price of milkfish, crab and shrimp in terms of wholesaling and retailing

PRODUCTWHOLESALE PRICE/KGRETAIL PRICE/KG

MilkfishPhp70.00Php100.00

CrabPhp300.00Php400.00

ShrimpPhp250.00Php350.00

Mode of Payment

According to Mr. La Verne O. De La Cruz, after he and the buyers agreed on the price of the milkfish, shrimp and crab, the buyers pay him in cash.

Marketing Strategy

The owner/manager used personal selling as their marketing strategy, they sell their product to the wholesaler and retailer. Sometimes they sell their products directly to the consumers.Financial Analysis

The financial statement of De La Cruz Aqua Farm is presented on Tables 4 and 5. It shows the income statement and balance sheet for the year 2006-2008. The data presented in the tables were base on the assumptions provided by the respondents due to unavailability of written financial records of the farm.

Table 4 shows the income statement for the year 2006 to 2008. It indicates an increase in sales and net income of the farm. The net income for the year 2006, 2007 and 2008 were Php2,724,000.00, Php3,440,200.00 and Php4,396,400.00 respectively.

Table 5 shows the balance sheet for the year 2006 to 2008. It indicates that the total current assets of the farm for the year 2006 is Php1,304,000.00; 2007 Php1,630,000.00; and Php2,037,500.00 for 2008; this the total cash of De La Cruz Aqua Farm.

PARTICULARS200620072008

Sales

Milkfish 3.000 3.600 4.800

Shrimps 0.400 0.480 0.350

Crabs 0.150 0.200 0.100

Total Sales: 3.550 4.280 5.250

Expenses

Cost of Chicken

Dung 0.069 0.083 0.097

Fertilizer 0.207 0.207 0.207

Transportation 0.036 0.036 0.036

Labor 0.144 0.144 0.144

Tax 0.010 0.010 0.010

Fry-Bangus 0.150 0.150 0.150

Shrimps 0.200 0.200 0.200

Miscellaneous 0.010 0.010 0.010

Total Expenses: 0.826 0.840 0.854

Net Income 2.724 3.440 4.396

PARTICULARS200620072008

ASSETS

Current Assets

Cash1.3041.6302.038

Total Current Assets1.3041.6302.038

Fixed Assets

Land1.0001.0001,000

Dikes and Gates0.5000.5000.500

Equipments0.0450.0450.045

Total Fixed Assets1.5451.5451.545

TOTAL CURRENT AND FIXED ASSETS2.8493.1753.583

LIABILITIES

De La Cruz Capital0.2000.2500.313

Add: Net Income2.7243.4404.396

Total Capital Balance2.9243.6554.759

Less: Personal Withdrawals0.0750.4801.176

TOTAL LIABILITIES AND CAPITAL2.849 3.1753.583

Table 8. Financial Assumption of De La Cruz Aqua Farm for the Year 2006 to 2008 (amount in Php)

ASSUMPTION200620072008

Chicken

dung2760 sacks @ 25.00

= 69,000.003312 sacks @ 25.00 = 82,800.003864 sacks @ 25.00=96,600.00

Fertilizer75 bottles @ 2,760= 207,000.0075 bottles @ 2,760 = 207,000.0075 bottles @ 2,760 = 207,000.00

Viking and Philphos

Fingerlings40,000 @ 4.5 =180,000.0040,000 @ 4.50

=180,000.0040,000 @ 4.50

= 180,000.00

Crablets5,000 @ 6 = 30,000.005,000 @ 6 = 30,000.005,000 @ 6

= 30,000.00

Shrimp Fry50,000 @ .12 = 6,000.0050,000 @ .12 = 6,000.0050,000 @ .12 = 6,000.00

Labor5 @ 200 = 10005 @ 200 = 10005 @ 200 = 1000

1000 @ 144 days =144,000.001000 @ 144 days =144,000.001000 @ 144 days

=144,000.00

Transportation36,000.0036,000.0036,000.00

Gasoline20,000.0020,000.0020,000.00

Maintenance16,000.0016,000.0016,000.00

Tax

Business Permit10,000.0010,000.0010,000.00

Miscellaneous

Equipment Repair10,000.0010,000.0010,000.00

Profitability ratios

Table 6 shows the analysis of return on sales of the business for the year ended 2006, 2007 and 2008. The results shows that for three consecutive years of the operation they got an average of the return on sales means that every Php1.00 of sales there are Php0.77, Php0.80 and Php0.83 net income respectively in the year 2006 to 2008.Table 9. Return on sales of De La Cruz Aqua Farm in Php

ITEMS200620072008

Net Income 2,724,000.00 3,440,200.00 4,396,400.00

Sales 3,550,000.00 4,280,000.00 5,250,000.00

Return on Sales0.770.800.83

Return on Assets

Table 7 shows that rate of return on assets of De La Cruz Aqua Farm for the year 2006 to 2008: Php0.95, Php1.08 and Php1.28 respectively.Table 10. Return on assets of De La Cruz Aqua Farm in Php

ITEMS 200620072008

Net Income 2,724,000.00 3,440,200.00 4,396,400.00

Total Assets 2,849,000.00 3,175,000.00 3,582,500.00

Return on Assets0.951.081.28

Asset Turn-Over

Total assets turn-over indicates the farm ability to generate sale in relation of fixed assets. Table 8 shows that rate on sales of De La Cruz Aqua Farm for the year 2006 to 2008, Php1.24, Php1.34 and Php1.47 respectively.Table 11. Total Assets Turn-Over of De La Cruz Aqua Farm in Php

ITEMS200620072008

Sales 3,550,000.00 4,280,000.00 5,250,000.00

Total Assets 2,849,000.00 3,175,000.00 3,582,500.00

Total Assets Turn-Over1.241.341.47

Problems Encountered and Solution Applied

Table 9 shows the problem encountered by the farm and solution applied. Climate which affects the growth of milkfish, crab and shrimp. Viral diseases that affect the immune system of crab and shrimp.

CATEGORYPROBLEMSOLUTION

Milkfish

ClimateRainApplication of chicken dung

Pest and Diseases

Harvesting

PricingBaratStrict monitoring

FinancialLack of capitalBarrowing capital from the bank

OthersEndemic/snailsProper designing of the pond

CRAB

ClimateDryAddition of water in the pond

Pest and DiseasesBacterial and virusesNone

HarvestingHigh tideWater pump

PricingBaratStrict monitoring

FinancialLack of capitalBarrowing capital from the bank

OthersEndemic/snailsProper designing of the pond

SHRIMP

ClimateDryAddition of water in the pond

Pest and DiseasesBacterial and virusesNone

HarvestingHigh tideWater pump

PricingBaratStrict monitoring

FinancialLack of capitalBarrowing capital from the bank

OthersEndemic/snailsProper designing of the pond

Chapter VSUMMARY, CONCLUSION AND RECOMMENDATION

This case study about De La Cruz aqua rarm was conducted at Barangay Abiawin Sur, Infanta, Quezon from December 2008 to February 2009. The general objectives of this study was to present the demographic profile of the respondents, specifically it aims to determine the historical background of the De La Cruz aqua farm; to identify what species are raised farm; determine the production and marketing practices employed in the business; to present the financial status of the business; and to identify the problems encountered by the business and the solution applied to solve the problems.

This study used an interview schedule as a guide to gather relevant information and periodic observation on the operations of the farm to gather additional information.

Mr. La Verne O. De La Cruz (also known as Mang Boy) and his wife, Mrs. Elsa De La Cruz are the present owners - managers of the farm. The production of De La Cruz aqua farm was started in the year 1956. Originally, the farm is owned and managed by Mr. Vicente Ocampo, Mang Boys paternal grandfather.

In 1980, from his resignation from the Philippine Army Mang Boy started operating and managing the farm with Php100,000.00 additional capital. Being the owner - manager of the farm, he is also responsible for all the major aspect involved in the farm operation.

De La Cruz aqua farm is composed of five laborers and the owner / manager of the farm. All of the laborers in the farm are responsible for the manual operation of the farm.

The business followed different production from the preparation of the pond up to post harvest activities. Preparation of the pond is important for any pond culture operation. It is purposely carried out to condition the milkfish fingerlings, crablets and shrimp fry. The fingerling, shrimp fry and crablets are stocked in the nursery ponds for a few days then transferred, separately to a bigger pond to provide wider spaces for growth. The fingerlings are fed twice a day in the morning and in the afternoon. One pond compartment contained 40,000 fingerlings. The laborer provides commercial feeds like fry mash. The fish is harvested at the age of four months, this stage the milkfish is about 2 to 3 pieces per kilogram while the shrimps and crabs are harvested depending on their sizes. Crabs are ready for harvest when they are the size of an adult closed fist. The shrimps are about 300 grams per pieces and 150 pieces per kilogram.

On the marketing practices, the harvested milkfish, shrimp and crab is sold to the direct buyers in Infanta and Real Quezon public market. Pricing of milkfish, shrimp and crab are depend on the trend in the market and sale on per kilogram basis with milkfish (Php70.00-Php100.00) crab (Php300.00-Php400) and shrimp (Php250.00-Php350.00).

In computing the financial analysis of the farm the researcher used profitability and solvency ratio.

Based on the analysis of Income Statement and Balance Sheet from the year 2006 to 2008, the Return on Sales were computed as 0.77, 0.80 and 0.83 respectively, were the Return on Assets were 0.95, 1.08 and 1.28 respectively, and Total Asset Turn-Over were 1.24, 1.34 and 1.47 respectively.

The problems encountered by the farm are the occurrence of viral diseases that attack the crab and shrimp immune system. In this case crab and shrimp are dying before it is harvested. The viral disease attack when the weather is changing. Mang Boy doest have a solution to the problem affecting the crab and shrimp. Because in this case the Department of Agriculture of Infanta, Quezon those not have a scientific study if what virus attack the crab and shrimp. All pond operator also encountered this problem concerning crab and shrimp.

Based on the results of the study, considering the management, production, marketing and financial aspects, the business is profitable. It is therefore concluded that De La Cruz aqua farm is earning a good profit.

Mr. La Verne O. De La Cruz recommended that if you start in this type of business you must have a well develop pond to increase profit. Net Income

Sales

x 100

Net Income

Assets

x 100

Sales

Assets

x 100

LABORER

(Ansel Rosas)

LABORER

(Ariel Pradillada)

LABORER

(Calixto Rosas)

LABORER

(Ronel Conchada)

Plate 3. The owner showing the automatic

feeder.

OWNER and MANAGER

(La Verne O. De La Cruz)

MARKETING MANAGER

(Elsa De La Cruz)

Customers and Buyers

Retailers

Contact Buyers

Wholesale

LABORER

(Armando Caller)

c)

Table 12. Problem encountered and solution applied in De La Cruz aqua farm.

Table 6. Income Statement of De La Cruz aqua farm as of December 31, 2008.

(in Million Php)

Table 7. Balance Sheet of De La Cruz aqua farm as of December 31, 2008. (in Million Php)

Table 3. Source, Size, Price, Volume, Frequency of Procurement and Stocks.