A FEASIBILITY STUDY OF ESTABLISHING A

AGRICULTURE SUPPLIES IN BARANGAY BATOMELONG GENERAL SANTOS CITY

PRESENTED TO

IN PARTIAL FULFILLMENT OF THE REQUIRMENTS IN

FS 101

(FEASIBILITY STUDY)

BY

MARY GRACE V. SOLIS

MAY 2023
 Chapter I

INRODUCTION

This chapter discusses the background of the study, rationale and objectives of the study, scope

and institutions, significance, and the research methodology of the study.

Background of the Study

Agribusiness relates to industries that are engaged in farming or that produce farm inputs.

Examples of agribusiness include farm machinery manufacturing, seed supply, and agrichemicals. In

common usage, the term "agribusiness" usually refers to large agricultural companies in comparison

with small, independent farms. However, agribusiness companies can be large or small, corporate or

independent. Learn more about agribusiness to understand the business of food production,

processing, and distribution (Jennifer Chait,2020). Competition in U.S agricultural markets has been

shaped and reshaped over the course of decades by a number of factors. These include longstanding

statutory exemptions from the U. S antitrust laws for some forms of agricultural business

organizations, changes in regulation, advances in technology, the rise of intellectual property

protection, and globalization. More fundamentally altered the landscapes of domestic and global

agricultural markets. This has been driven largely by horizontal and vertical consolidation, which has

created tight oligopolies and by the emergence of powerful players at critical stages in increasingly

complex agricultural supplies chains. One major segment where the effects of high concentration are

apparent is in agricultural inputs. These include agricultural fertilizers, chemicals and conventional

and genetically modified crop seed. Supra-competitive pricing resulting from coordinated behavior

and single firm dominance in these input sectors has taken a toll on growers through higher prices

and fewer choices. 1. Another area of growing concentration is the processing of agricultural

commodities such as meat and poultry, milk, and grains into manufactured commercial and retail food

products. 2.Consolidation of the midstream segment’s has led to fundamental shifts in economic

power and strategic enhancement of market power within important supply chains.
 The Philippines is a country rich in natural resources. Because of that, agriculture plays a

significant role in its economic, cultural and business landscape. There’s a wide range of agriculture

businesses that exist in the Philippines today; from the numerous farms in various provinces to the

more modern SMEs growing their own produce and selling it with the help of technology right inside

the Metro. The role of agriculture in the Philippine economy has undergone dramatic changes. Its

contribution of agriculture to Gross Domestic Product (GDP) and exports of the Philippines is

declining, consistent with the country's transition to middle income status. Structural change and

population growth has caused a shift in its position from net food exporter to net food importer in the

late 1980s. Nevertheless, the country continues to source most of its food domestically; moreover,

agriculture still accounts for a third of total employment, despite a GDP share of only one-eighth. This

highlights the continuing importance of the sector for food security and inclusive growth. Agriculture

confronts several challenges over the decade. The country's burgeoning population shall require

greater food supplies, whereas the scope for expansion of farm land has narrowed considerably. 1

For some commodities, imports offer an alternative food source, though recent world price spikes

have troubling implications for food security. Moreover, exposure to global competition may pose

threats to farm livelihoods. For this reason, the Department of Agriculture (DA) has been

implementing its flagship program, the Food Staples Sufficiency Program (FSSP), targeting among

others 100% rice self-sufficiency this year (2013) (Wilson Law,

In General Santos City, there are lot of shops selling different kind of agriculture Supplies here

in different parts of Gensan, just like PSJ Agriculture Supply, Abigail Farm Supply,EJ Agricultural

Supply, etc.PSJ Agricultural Supply sells different kinds of Agricultural / Farm Supply, they almost

have all different of Agricultural Supply that’s why many customer always come to their shop and buy

anything that they need for their crops. PSJ Agricultural Supply is one of the top shops that sells

agricultural supplies here in General Santos City.

growing different types of crops to feed their families. The problem is that in order to fertilize their

crops they need fertilizers or other agricultural supplies but there are no stores or shops that sell them

that’s why they travel to the city to buy some supplies for their crops. Barangay Batomelong is also far

from the city and it is hassle to the farmer to come to the city just to buy some agricultural Supplies.

Putting an Agricultural Supply Shop in Barangay Batomelong can make the farmer less hassle and it

is profitable since it is the one supplying their needs.

Rationale of the Study

The researcher endeavored to examine regarding recommended business of building up an

agriculture supply.In Barangay Batomelong, there are lots of people/ farmer who are looking for a

supply for their plants enable to grow fast their product, whereas they assure that their plants are

good. The goal of the researcher is to provide all the benefits of a supply without the hassle of a

farmer. It has the features that the people want. It helps the community to improve their product and

the researcher also wants to offer very complete and nearly store which is you don’t need to go in the

city to buy a supply and the can easily to go.

The researcher also endeavored to study this proposed business of putting up an agriculture

supply to know the viability and profitability of the business. Furthermore, in order to find out if there is

chance of entering into this kind of business and how to cope up with the challenging trends of

agriculture supply, and to identify the risk and challenges that the business might confront.
Objective of the Study

The study endeavored to determine the viability of establishing an agriculture supply business

in Barangay Batomelong General Santos City. Specifically, it aimed to:

1.Describe the industry of Agriculture Supply business in Barangay Batomelong General Santos City.

2. Determine the viability of the proposed business in the following aspects:

2.1 Marketing;

2.2 Technical;

2.3 Management and Organizational;

2.4 Financial; and

2.5 Socio-economic aspects

Scope and Limitations

This study only focused on determining the viability of putting agriculture supply business in

Barangay Batomelong General Santos City. It presents the different strategies of the business in the

aspects of marketing, technical, management and organizational, financial, and socio-economic.

The result of the study is limited only from the data gathered from the (5) respondents through

an interview guide conducted to get important information and details about developing an agriculture

supply. The study was conducted from January to May 2023.

This study will give additional benefits to all business who have a passion in agriculture supply

business. The result of this research will give benefits to various people like:

The Community. The result of the study will base health research continues to grow; student

researchers have the potential to make important contributions.

The Costumers. The result of this study will help the costumers to understand the operation

and enable them to evaluate or asses the problem encountered in Barangay Batomelong General

Santos City.

The Owners. The result of this study will help the owners to identify the problem and to

understand the operation.

Researcher. The result of this study will be significant to the researcher because this is a

written statement that explains why the study is needed, its importance, and its impact. It contributes

new knowledge and how others will benefit from it.

Future Researcher. The result of this study will be significant to the future researcher for it will

serve as a guide and reference for the future researcher who also wants to put up a Agriculture

Supply Business, constructing the same research in a new context and location and re-assessing and

expanding theory framework or model.

The research methodology includes the Research Design Respondents of the Study, Locale of

the Study, Dara Gathering Tools, and Data Gathering Procedure. These were used to collect data

and information needed in this study.

Research Design

In this study, the researcher used descriptive-exploratory method to gather data information.

The descriptive-exploratory is Descriptive research aims to accurately and systematically describe a

population, situation or phenomenon. It can answer what, where, when and how questions, but not

why questions. A descriptive research design can use a wide variety of research methods to

investigate one or more variables (McCombes, 2019). Explanatory research is a research method that

explores why something occurs when limited information is available. It can help you increase your

understanding of a given topic, ascertain how or why a particular phenomenon is occurring, and

predict future occurrences (George, Merkus, 2021)

Objectives of the Study Research Methodology

Industry Analysis
Research Design

Business Description
Descriptive-Explanatory

Viability of the Study

Barangay Batomelong,
Technical General Santos City

Management and
Operation Respondents of the
Study

Financial

Objectives of the Study

Objectives of the Study

FEASIBLE RESIDENTIAL OF AGRICULTURE SUPPLY BUSINESS IN BARANGAY

Figure 1. Research Design

The researcher conducted an interview with an, farmer, households. These respondents gave

information and shared experiences on how to develop a respondents gave information and shared

experiences on how to develop an agriculture supply and will be the problems and challenges that

could be encountered. The researcher chooses these respondents because they have the experience

and knowledge in the field of business.

Locale of the Study

The researcher conducted this study in Barangay Batomelong General Santos City. The

researcher had chosen this place because there are no shops that sell agricultural Supply in this

place and to have business with complete products.

Data Gathering Tool

In the conduct of the study, the researcher used an interview guide. The interview guide

focused on question about marketing, management and organization, technical, financial and socio-

economic aspects of the respondents. This was the tool used by the researcher to gather

information/data to draw out facts or statement from the interviewees.

The terms used in the study are defined conceptually and operationally to establish better

understanding.

Feasibility- for this study, it refers to the state of being easily or conveniently done, analysis,

and evaluation of a proposed project to determine if it is to be established.

Financial Aspect- projects how much start-up capital is needed sources of capital, returns on

investment, and other financial considerations.

Marketing Aspects- refers to activities a business undertakes to promote the buying and

selling of a product, services, or goods. It includes the product price, promotion, place and people.

Customer - Operationally, this term is defined as an individual or business that purchases the

goods or services produced by a business. Attracting customers is the primary goal of most public-

facing businesses, because it is the customer who creates demand for goods and services.

Businesses often compete through advertisements or lowered prices to attract an ever-larger

customer base.

Sales - Operationally, this term are defined as an exchange of money for goods, services, or

other property. In accounting, net sales refer to the operating revenues earned by a company by

selling their products or services.

Profit - Describes the financial benefit realized when revenue generated from business activity.

Product Availability - Is the product view displays all of the times that are available at the time

of your visit.

Pricing - Is the process whereby a business sets the price at which it will sell its

products/goods.