Philippine E-Journals

Profitability and Marketing Efficiency of Free-range Chicken Production in Selected Provinces of Northern Luzon

KAE ANN MARIE P. BALINGIT

 

Abstract:

The profit margin method is one of the most successful strategies for determining small-medium enterprises’ efficiency and competitiveness in the agriculture sector. This paper analyzed the profitability and marketing channel of free-range chicken in every marketing channel and provided the factors affecting marketing efficiency. On the per head basis of free-range chicken, the highest profit margin incurred was from Abra. This is explained by the fact that the average profit margin in Abra is ₱89.66, Ilocos Sur is ₱36.56, and La Union is ₱23.95. From the findings, the free-range chicken marketing channel had various marketing channels but dominated the grower-consumer channel (85.89%). In terms of marketing efficiency, age, years of free-range chicken farming, the population of free-range chickens raised in an owned farm, a distance of buying and selling, profit margin, and handling losses were considered in deriving marketing efficiency free-range chickens in the marketing channel. Input providers, growers, traders, and processors’ marketing efficiency were computed, the mean marketing efficiency per key player. In terms of each key player, a trader has the highest mean marketing efficiency of 53.20%, and the least marketing efficiency was the input provider with 31.30%. This means that the output of the trader was higher with the limited input it had. The production and marketing operations that the traders had given more efficient result compared to other key players. It was recommended that the systems of marketing free-range should intensify post-production technologies to extend the shelf-life of the product