1

INTRODUCTION

Background of the Study

Fish are also known for their remarkable diversity in terms of their size,
shape, coloration, and behavior. From the tiny Plaidoyers periegetic, which
measures only 7.9 mm in length, to the massive whale shark, which can reach
lengths of over 40 feet, fish exhibit a wide range of adaptations to their
respective habitats (Sparks, 2016). Fish are aquatic animals that are
characterized by their gill-bearing respiratory system, streamlined body, and
fins for locomotion. They are a diverse group of animals with over 34,000 known
species, making them the largest group of vertebrates on Earth (Nelson et al.,
2016). Furthermore, fish have been studied extensively in various scientific
fields, including ecology, evolutionary biology, physiology, and genetics. They
have contributed significantly to our understanding of topics such as evolution,
sensory biology, locomotion, and reproductive strategies (Balon, 2005).
The Philippines Is a major contributor to global fisheries. In 2018, total
output from three sectors, namely aquaculture, municipal, and commercial
fisheries, was around 4.36 million MT, placing the Philippines 13 th as the top
fish-producing country and 4th as the main seaweed producer in the world. The
country’s overall export revenues from the fisheries industry were US$1.6
billion. The Philippine fishing sector is an important contributor to the national
economy, generating foreign cash and providing a living for around 2 million
Filipino fishermen (Tahiluddin & Terzi, 2021).
According to Philippine Statistics Authority (2021), Northern Mindanao’s
fisheries output volume fell 16.3 percent to 118,112.40 metric tons in 2021, from
141,168.69 metric tons in 2020. Production in all fisheries subsector decreased
in 2021 compared to 2020. All provinces in the region had a decrease in
fisheries output, with the exception of Camiguin, which saw a 34.5 percent rise,
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reaching 3,777.72 metric tons. The province of Bukidnon saw the greatest
decrease in fisheries production (-78.7%).
Fish retailers continue to face challenges and struggle with low
profitability for several reasons , due to rising costs of fuel , transportation,
perishable nature of fish, competitive landscape of fish and pricing of fish,
Overcoming these obstacles requires careful management, adaptability, and a
focus on customer satisfaction to improve profitability in this challenging
industry.
According to a report by the Food and Agriculture Organization (FAO),
the rising costs of fuel, transportation, and refrigeration have substantially
impacted the profitability of fish retailers (FAO, 2019). These expenses can
significantly erode profit margins, especially for small-scale retailers who often
lack the economies of scale to negotiate favorable pricing. The perishable
nature of fish presents a unique challenge for retailers. Unlike non-perishable
goods, fish has a limited shelf life, and maintaining the quality and freshness of
the product is crucial. This requires careful inventory management and efficient
supply chain operations, which can increase costs for retailers. Additionally, if
the fish is not sold within a short timeframe, it may lead to spoilage and financial
losses (Smith, 2022). Fish prices are influenced by various factors, including
weather conditions, supply and demand fluctuations, and government
regulations. These factors make it difficult for retailers to maintain consistent
profit margins, as they often have limited control over the pricing of their
products (Jones, 2021). The competitive landscape of the fish retail industry
adds to the low profitability. Fish retailers often face stiff competition from
various sources, including large supermarket chains, online seafood platforms,
and local fish markets. These competitors may have greater economies of
scale, wider product selections, or lower operational costs, making it
challenging for smaller retailers to compete and achieve higher profit margins
(Brown, 2023).
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Significance of the Study

The researcher believes that this study will not only yield data that will
be helpful to him, more so to the following stakeholders:
Small-Scale Fish Retailers: The study can provide valuable insights to
small-scale fish retailers themselves. It can help them understand the most
effective business practices and strategies to enhance their profitability. By
examining successful practices, retailers can identify areas for improvement,
optimize their operations, and increase their competitiveness in the market.
This study can also help them make informed decisions about pricing, sourcing,
marketing, and customer service, leading to better financial outcomes.
Researchers and Academics: For researchers and academics, this
study can contribute to the existing body of knowledge on small-scale fish retail
businesses. It can serve as a reference point for future research, potentially
leading to more comprehensive studies on specific aspects such as marketing
strategies, supply chain dynamics, or financial management in the industry. The
study can also facilitate comparative analyses across different regions or
countries, offering insights into regional variations and best practices.
Government and Regulatory Bodies: The study’s findings can be
valuable to government authorities and regulatory bodies responsible for
overseeing the fish retail sector. They can use the research to gain a deeper
understanding of the challenges and opportunities faced by small-scale fish
retailers. This knowledge can help shape policies and regulations that support
the growth and sustainability of the sector. It can also aid in the identification of
potential barriers or bottlenecks affecting profitability, enabling policymakers to
design targeted interventions or support programs.
Policy makers and regulators the findings of the study can inform policy
makers and regulators about the challenges and opportunities faced by small-
scale fish retailers. This information can guide the development of policies and
regulations that are tailored to the specific needs of this sector. Effective
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policies can create an enabling environment, support business growth, ensure

fair competition, and promote sustainability in the fish retail industry.
Financial institutions and investors play a crucial role in supporting small-
scale fish retail businesses. The study can provide them with insights into the
profitability potential of these businesses, helping them make informed
decisions about lending and investment opportunities. It can also assist in
assessing the risk associated with financing small-scale fish retail ventures and
guide investment strategies.
Consumers have an interest in the sustainability and quality of fish
products they purchase. The study can highlight the profitability challenges
faced by small-scale fish retailers, which can be attributed to factors such as
fluctuating market prices, supply chain inefficiencies, or environmental
concerns. Understanding these challenges can help consumers make informed
choices, support local and sustainable fish retail businesses, and contribute to
the overall viability of the sector.

Statement of the Problem

The profitability of small-scale fish retail businesses is facing challenges

that hinder their financial success and sustainability. Despite operating in a
market with significant demand for fresh fish, these businesses struggle to
achieve desirable profit margins. The problem at hand revolves around
identifying the key factors that contribute to the limited profitability of small-scale
fish retail businesses and exploring potential solutions to enhance their financial
performance. Thus, this study focused on analyzing the profitability of small
scale fish retail business.
The specific research problem of this study Is the following:
1. What is the socio demographic profile of small-scale retailer in
Población, Valencia City?
2. What are the practices employed in small scale fish business?
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3. How much is the profitability of fish retailers?

4. What are the problems encountered by small-scale fish retailers?

Objectives of the Study

The general objective of this study is to determine the profitability of

small-Scale fish retail business in Población, Valencia City, Bukidnon.
The specific objectives of this study are the following:
1. present the socio- demographic profile of small-scale fish retail business
in Población, Valencia City, Bukidnon;
2. determine the practices employed in small scale fish business;
3. analyze the profitability of small-scale fish retail business; and
4. determine the problems encountered by small-scale fish retailers.

Scope and Limitations of the Study

The research will focus only on determining the practices and profitability
of small-scale fish retail businesses in Poblacion public market, Valencia City.
The barangay that will be selected will based on the following criteria:
1) The accessibility of the researcher,
2) The piece and order of the area; and
3) The Researcher knowledge of the area
Limitations of the Study:
Generalizability the findings of the research will be specific to the small
scale fish retail businesses in Poblacion, Valencia City and may not be directly
applicable to other locations or larger-scale operations.
Reliability of data the accuracy and reliability of data collected through
surveys and interviews depend on the respondents’ honesty and memory.
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There is a possibility of response bias or recall bias, which may impact the
validity of the research findings.
Limited time frame the research will be conducted within a specific time
frame, and the profitability analysis will reflect the conditions and dynamics of
the market during that period. Long-term trends and seasonal variations may
not be fully captured in the study.
It is essential to acknowledge these limitations to ensure the research
findings are interpreted within their constraints and to provide appropriate
recommendations for small-scale fish retailers in Poblacion, Valencia City.

Definition of Terms

Fish retailers are businesses or individuals involved in the sale and

distribution of fish and seafood products to consumers and undertake a limited
processing activity .
Profitability refers to the capacity of a small fish business operation profit
from its operation, which is difference between income and costs . The
profitability of small fish business varies greatly depending on how the fish
business are managed.
Small business is defined as a privately owned by fish retailers that has
2-4 employees and less annual revenue than a corporation or regular- sized
business.
Fixed cost refers to expenses in small fish business that do not change
with the day to day operation. These are cost that a fish retailers will have to
pay such as rental and utilities expenses.
Variable cost refers to expenses in small fish business that change in
small fish business operation. In other words , as fish product sell increased or
decreased, variable cost will also increased and decreased accordingly, can
include, ice, storage box, fish product and etc.
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REVIEW OF LITERATURE

Global Fish Industry

The global fish industry is a complex and significant sector that

encompasses various activities related to the capture, farming, processing, and
distribution of fish and seafood products. It plays a crucial role in meeting the
world’s demand for fish as a source of nutrition and economic development for
many coastal communities. According to Smith et al., (2021). The industry
employs millions of people worldwide and contributes to global food security,
generating billions of dollars in revenue annually. The industry is characterized
by a diverse range of players, including commercial fishing fleets, aquaculture
operations, fish processing companies, and seafood distributors. Fish products
are traded internationally, with major fish-producing countries exporting their
catches to meet the demand of importing nations. However, the industry faces
numerous challenges, such as overfishing, habitat destruction, pollution, and
climate change impacts. These challenges necessitate the implementation of
sustainable fishing practices, responsible aquaculture, and effective fisheries
management strategies to ensure the long-term viability of the industry and the
preservation of marine ecosystems. The global fish industry’s dynamics and its
associated challenges require collaborative efforts between governments,
industry stakeholders, and conservation organizations to promote sustainable
practices, protect marine resources, and support the livelihoods of those
involved in the sector.

Philippine Fish Industry

Philippines is an archipelago composed of over 7,100 islands, making it

rich in marine resources. Fish and other aquatic products are a major source of
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livelihood for many coastal communities and contribute to the country's export
earnings. According to the Philippine Statistics Authority (PSA), the fishery
sector accounted for 19.3% of the total agricultural production in the country in
2020. It employs millions of people, both directly and indirectly, and provides
income and livelihood opportunities for fisher folk, fish farmers, processors,
traders, and exporters. The fishery sector in the Philippines consists of both
capture fisheries and aquaculture. Capture fisheries involve fishing in rivers,
lakes, and oceans, while aquaculture refers to the cultivation of fish,
crustaceans, mollusks, and other aquatic organisms in ponds, cages, and other
controlled environments. In terms of production, the PSA reported that the
country's total fish production in 2020 reached 4.35 million metric tons. This
includes both marine and inland fishery production. Marine capture fisheries
accounted for about 61.2% of the total production, while inland fisheries
contributed 11.3%. Meanwhile, aquaculture production represented 27.5% of
the total fish production in the country. The Philippines is known for various
high-value fish species, including tuna, milkfish, tilapia, bangus (Philippine
milkfish), and shrimp. Tuna, in particular, is a significant export commodity, with
the country being one of the top tuna producers and exporters in the world.
However, the fish industry in the Philippines faces several challenges.
Overfishing, illegal fishing practices, habitat destruction, and pollution pose
threats to fish stocks and marine ecosystems. Climate change and natural
disasters also impact the industry, affecting fish populations, fishers'
livelihoods, and aquaculture operations.

Retailing Business

Fish retailing business involves the buying, selling, and distribution of

fresh or frozen fish to consumers. It encompasses various activities, including
sourcing fish from suppliers or fishermen, ensuring proper storage and
transportation to maintain freshness, and displaying the products attractively to
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customers. This business can operate through different channels, such as

standalone fish markets, seafood counters in grocery stores, or online platform
and also Retail is an operation that stores, prepares, packages, serves, or
otherwise provides fish, shellfish, and their products directly to the consumer
for preparation for human consumption. Retailing fresh fish takes place in
markets, seafood sections in supermarkets or department stores, mobile stalls,
and via traders traveling door to door. Retail market facilities range from basic
and informal to organized and permanent state-of-the-art structures with all
necessary services. Retailing takes place in rural and urban, coastal and inland
areas (Food and Agricultural Organization, 2019).

Cultural Practices in small fish business

Inventory Management

Inventory management in small fish businesses has evolved significantly

over the years with the advent of technology and the implementation of
advanced strategies. In the early 2010s, inventory management in small fish
businesses primarily relied on manual methods, such as paper-based records
and basic spreadsheet tools. However, these methods often resulted in
inaccuracies, delayed decision-making, and inefficiencies. The introduction of
cloud-based inventory management systems in the mid-2010s revolutionized
inventory management for small fish businesses. These systems provided real-
time visibility into inventory levels, streamlined order processing, and improved
data accuracy. Cloud-based solutions also facilitated remote access, allowing
business owners to monitor and manage their inventory from anywhere,
enhancing operational flexibility and efficiency (Marzo, 2015). Moreover, the
integration of barcoding and scanning technologies played a crucial role in
enhancing inventory management. By labeling fish products and using
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handheld barcode scanners, businesses could track stock movements

accurately, update inventory records in real-time, and minimize errors
associated with manual data entry (Chen et al., 2014). This improved accuracy
reduced stock outs and inventory discrepancies, ensuring a smoother supply
chain flow. Additionally, advanced forecasting techniques and demand
planning models became more accessible to small fish businesses during this
period. These methods utilized historical sales data, market analysis, and
predictive algorithms to forecast demand accurately. By leveraging data-driven
insights, businesses could optimize inventory levels, reduce wastage, and
enhance customer satisfaction by meeting demand consistently (Lambrecht &
Tucker, 2013).

Product selection

Product selection is a critical decision for fish businesses as it directly

impacts customer satisfaction, profitability, and overall success. When
choosing which fish products to offer, several factors should be considered,
including market demand, availability, quality, sustainability, and customer
preferences. Market demand analysis is crucial to identify the types of fish
products that are in high demand. Understanding consumer preferences,
regional culinary traditions, and market trends helps fish businesses align their
product offerings with customer needs and preferences (Wang et al., 2018).
Availability and seasonality of fish species play a significant role in
product selection. Fish businesses consider the local availability of different
fish species and ensure a consistent supply throughout the year. Understanding
the seasonal variations in fish availability enables businesses to plan their
product assortment and maintain a reliable supply chain (Maheo et al., 2020).
Quality is paramount in the fish industry. Businesses must prioritize
sourcing high-quality fish that meet safety and freshness standards. Freshness
indicators such as smell, texture, and appearance should be carefully assessed
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to ensure customer satisfaction and minimize the risk of spoilage (Alfaro et al.,
2016).
Sustainability is an increasingly important consideration in product
selection. With growing concerns about overfishing and environmental impact,
customers are seeking sustainable seafood options. Fish businesses should
prioritize sourcing from well-managed fisheries, certified sustainable sources,
or engaging in aquaculture practices that minimize environmental harm
(Loureiro & Bugge, 2017).

Proper handling

Proper handling practices are essential in the fish business to ensure

product quality, prevent spoilage, and maintain food safety standards. The
handling and storage of fish products should adhere to specific guidelines to
preserve freshness and extend shelf life. These guidelines encompass various
aspects, including temperature control, packaging, and hygiene practices.
Temperature control is crucial in fish handling and storage. The cold chain,
which involves maintaining low and consistent temperatures from the point of
harvest to the final consumer, is critical in preserving fish quality. Proper chilling
or freezing immediately after catch helps to inhibit bacterial growth, enzymatic
activity, and chemical reactions that can lead to spoilage. Appropriate
packaging is another key element of proper handling and storage in the fish
business. Packaging should be designed to protect the fish from physical
damage, contamination, and moisture loss. Vacuum packaging, modified
atmosphere packaging (MAP), or other suitable techniques can help extend the
shelf life of fish by creating a barrier against oxygen and reducing the growth of
spoilage-causing microorganisms (Afonso et al., 2013).
Hygiene practices must be strictly followed during fish handling and
storage to ensure food safety. This includes maintaining clean work surfaces,
equipment, and utensils, as well as proper personal hygiene, such as regular
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hand washing and the use of protective clothing. Additionally, separating raw
and cooked fish, preventing cross-contamination, and implementing proper
waste management practices are essential to avoid foodborne illnesses (Food
and Agriculture Organization of the United Nations, 2009).

Pricing

Setting the right pricing strategy is crucial for small fish businesses to
achieve profitability, attract customers, and remain competitive in the market.
Pricing decisions should consider factors such as production costs, market
demand, competition, and perceived value. By implementing effective pricing
strategies, small fish businesses can optimize their revenue and maintain
sustainable growth. One common pricing approach is cost-based pricing, which
involves determining the production costs associated with the fish products and
adding a suitable profit margin. This method ensures that businesses cover
their expenses while generating a reasonable return on investment (Kotler et
al., 2013). It is important for small fish businesses to accurately calculate their
costs, including direct costs (e.g., fish acquisition, processing, packaging) and
indirect costs (e.g., overhead, marketing, labor) to set appropriate prices.
Market-based pricing considers the dynamics of supply and demand in the
market. Small fish businesses need to assess the price sensitivity of customers
and analyze the prices charged by competitors offering similar fish products.
By understanding market trends and customer preferences, businesses can set
their prices to align with market expectations and achieve a competitive position
(Kotler et al., 2013). Market research, surveys, and monitoring competitor
pricing strategies can provide valuable insights for determining optimal pricing
levels. Perceived value pricing focuses on the perceived worth or quality of the
fish products in the eyes of customers. Small fish businesses can position their
products as unique, premium, or offering additional value through attributes
such as freshness, sustainability, or convenience. By effectively communicating
and emphasizing the value proposition, businesses can justify higher prices and
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differentiate themselves from competitors . Building strong relationships with

customers and creating a positive brand image are integral to the success of
this pricing strategy (Kotler et al., 2013)

Quality control

Proper handling and storage of fish products are critical in maintaining

quality. Small fish businesses implement hygienic practices. In the fish retail
business, several methods are applied in quality control to ensure the freshness
and safety of the products. These methods include sensory evaluation,
chemical analysis, and microbiological testing. Sensory evaluation involves
assessing the appearance, odor, and texture of the fish to determine its
freshness and overall quality. Chemical analysis is conducted to measure
parameters such as pH, total volatile basic nitrogen (TVB-N), and histamine
levels, which are indicators of spoilage and potential health risks.
Microbiological testing involves analyzing the presence of pathogenic bacteria,
such as Salmonella and Listeria, as well as total viable counts, to assess the
microbial quality and safety of the fish. These quality control methods help
retailers maintain high standards and comply with food safety regulations
(Smith, Johnson, & Thompson, 2019).. This involves storing fish at appropriate
temperatures, using suitable packaging to prevent contamination and
dehydration, and regularly cleaning and sanitizing storage areas and
equipment .Regular inspections and quality assessments are essential in
quality control for fish retailers. Small fish businesses should conduct thorough
visual inspections of the fish products to identify any signs of spoilage, such as
discoloration, off-odors, or abnormal textures. Additionally, conducting periodic
laboratory tests for microbiological and chemical parameters can help ensure
compliance with food safety standards (Kamal & Mustafa, 2013).
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Hygiene and Sanitation

Cleanliness is a fundamental aspect of hygiene and sanitation in fish

businesses. Small fish businesses should maintain clean and well-organized
premises, including processing areas, storage facilities, and equipment. Proper
hygiene and sanitation practices are crucial in the fish retail business to ensure
the safety and quality of the products. Several methods are applied to maintain
hygiene and sanitation standards. Regular hand washing with soap and water
is essential for all employees handling fish products (Food and Drug
Administration , 2021). Regular cleaning schedules should be established,
ensuring that surfaces, utensils, and machinery are sanitized and free from dirt,
debris, and potential contaminants. Personal hygiene practices are critical for
preventing cross-contamination and ensuring the safety of fish products.
Employees should follow strict hygiene protocols, including regular hand
washing with soap and warm water, wearing clean and appropriate protective
clothing (e.g., gloves, hairnets), and refraining from handling fish products when
ill (Dantas-Lima et al., 2015).
Adhering to food safety guidelines and regulations is crucial for small fish
businesses. This includes implementing Hazard Analysis and Critical Control
Points (HACCP) systems, which involve identifying and controlling potential
hazards throughout the production process. By following HACCP principles,
small fish businesses can minimize the risk of foodborne illnesses and ensure
the safety of their products (Food and Agriculture Organization of the United
Nations/World Health Organization, 2015).

Challenges and Opportunities in small fish business

Small fish businesses face various challenges and opportunities in their

operations, which can significantly impact their success and sustainability.
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Understanding these factors is essential for small fish business owners to make
informed decisions and seize potential opportunities.
One of the key challenges for small fish businesses is the volatile nature
of the fish market. Fluctuations in fish availability, prices, and consumer
demand pose challenges for businesses in terms of sourcing, pricing, and
maintaining profitability. Additionally, small fish businesses may face stiff
competition from larger, established players in the industry, which can make it
challenging to gain market share and build a loyal customer base .Regulatory
and compliance requirements also present challenges for small fish
businesses. Adhering to food safety regulations, licensing, and environmental
sustainability standards can be complex and resource-intensive, particularly for
businesses with limited financial and human resources. Meeting these
requirements often necessitates investments in equipment, training, and
infrastructure, which can strain the resources of small businesses (De Silva &
Nguyen, 2013). However, there are opportunities that small fish businesses can
leverage to overcome these challenges and thrive in the market. One significant
opportunity lies in offering niche or specialized fish products that cater to
specific consumer preferences and demands. By focusing on unique species,
sustainable sourcing practices, or value-added products, small fish businesses
can differentiate themselves and target specific market segments (Hall, 2011).
Technological advancements also present opportunities for small fish
businesses. Adopting innovative tools and technologies, such as e-commerce
platforms, mobile applications for ordering and delivery, and data analytics, can
enhance operational efficiency, customer engagement, and marketing
strategies (Mohamed et al., 2018). Embracing digital platforms can enable
small fish businesses to reach a wider customer base, streamline operations,
and improve overall competitiveness.
Collaboration and partnerships can also be advantageous for small fish
businesses. By forming strategic alliances with suppliers, distributors, and other
stakeholders in the value chain, small businesses can access a wider market,
share resources, and benefit from economies of scale (De Silva & Nguyen,
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2013). Collaborative initiatives can help small fish businesses overcome

resource limitations and expand their reach and impact.

Profitability Analysis

Profitability analysis involves evaluating various financial indicators and

ratios to understand the profitability of the business.
One common financial indicator used in profitability analysis is gross
profit margin, which measures the percentage of revenue that remains after
deducting the cost of goods sold (COGS). A higher gross profit margin indicates
better profitability, as it reflects the ability to generate revenue above the direct
costs associated with fish production and sales (Higgins, 2018).
Net profit margin is another important indicator that assesses the overall
profitability of the business. It represents the percentage of revenue that
remains as net income after deducting all expenses, including COGS, operating
expenses, and taxes. A higher net profit margin indicates better profitability and
efficiency in managing costs and generating profits
Return on assets (ROA) and return on equity (ROE) are additional ratios
used in profitability analysis. ROA measures the profitability of the business
relative to its total assets, while ROE evaluates profitability in relation to
shareholders’ equity. Higher ROA and ROE ratios indicate more efficient
utilization of assets and capital, respectively, to generate profits. Cash flow
analysis is also critical in assessing profitability. Cash flow from operating
activities reflects the actual cash generated from day-to-day operations,
providing insights into the liquidity and sustainability of the business. Positive
cash flow indicates healthy profitability, while negative cash flow may indicate
financial challenges. Profitability analysis should be complemented with
industry benchmarks and comparative analysis to assess the business’s
performance relative to peers. Comparing key profitability ratios and financial
indicators with industry averages or competitors can provide insights into the
business’s strengths, weaknesses, and areas for improvement (Higgins, 2018)
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Theoretical Framework

Based on the website Investopedia (2021). Profitability is a financial

metric that assesses the ability of a business or investment to generate profit
or earnings relative to its costs and expenses. It is a crucial aspect of evaluating
the financial health and success of an entity. There are several key
measurements used to evaluate profitability, including gross profit margin, net
profit margin, return on investment (ROI), return on assets (ROA), and return
on equity (ROE).
The gross profit margin measures the profitability of a company's core
operations by evaluating the proportion of revenue left after deducting the cost
of goods sold (COGS). It is calculated using the following formula:
Gross Profit Margin = (Revenue - COGS) / Revenue

The net profit margin reflects the profitability of a business after

accounting for all expenses, including operating costs, interest, taxes, and other
non-operating items. It is calculated using the following formula:

Net Profit Margin = (Net Income / Revenue) * 100

Return on investment (ROI) is a measure of the profitability of an

investment, indicating the return generated relative to the amount invested. It
is calculated using the following formula:

ROI = (Net Profit / Investment Cost) * 100

Return on Assets (ROA) evaluates how efficiently a company utilizes its

assets to generate profit. It is calculated using the following formula:

ROA = (Net Income / Total Assets) * 100

Return on Equity (ROE) measures the return on shareholders' equity,

indicating how effectively a company generates profit from the shareholders'
investments. It is calculated using the following formula:

ROE = (Net Income / Shareholders' Equity) * 100

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Conceptual Framework

In this study, the researcher used the IPO Model that contains the input,
process, and desired output.

INPUT PROCESS OUTPUT

1. Socio demographic
profile of fish retailers
• Name
1. Data
• Age
collection
• Religion
• Fish retailers
• Educational socio
attainment demographic
• Average annual profile
income • Fish business
2. Small fish business Practices
Practices • Cost of
expenses Analyzed the
• Inventory profitability of small
Management • Problem
scale fish retail
• Product selection encountered
business in
• Proper handling and in small fish
Poblacion, Valencia
storage business
City Bukidnon
• Pricing
• Quality control
2. Administering
• Hygiene and
questionnaire
sanitation

3. Cost of expenses
3. Statistical
• Fixed cost analysis of
• Variable cost data
4. Problem of fish retailers
• Lack of sourcing and
Supply Chain
• Fluctuations in fish
availability
Price competition
Figure 1. Conceptual framework of the Study
Different consumers
preferences
Limited financial and human
resources
Customer satisfaction and
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The Input contains the socio-demographic profile of the fish retailers

such as their age, sex, marital status, household size, educational attainment,
and their average annual income. The business practices incurred by the fish
retailers such as Inventory Management, Product selection, pricing, Quality
control, Proper handling and storage and hygiene and sanitation. Cost of fixed
and variable cost such as rent, electricity bill, water bill and etc. The problems
encountered in fish retail business such as the inflation, supply and demand.
The process contains the process of data collection such as collecting
the socio-demographic profile of fish retailers, small fish business practices and
the problems encountered in small fish business. The process also includes
administering questionnaires, and statistical analysis of data.
The output contains the desired outcome of this study which is analyzed
the profitability of fish retailers in Población, Valencia City, Bukidnon.
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METHODOLOGY

Locale of the Study

The locale of the study will be selected based on the following criteria (1)
accessibility to regular land transportation for easy collection of data (2) The
peace and order situation of the area, and (3) The researcher has knowledge
on area based on the criteria, the study will be conducted in Barangay
Poblacion, Valencia City, Bukidnon.
Barangay Poblacion, Valencia, Bukidnon is one 31 Barangay in the
municipality of Valencia. The people living in the municipality of Valencia
particularly in Barangay Poblacion are comprised of diverse ethnic origins.
However, the Cebuano dialect is still generally the main language spoken by
the most of the population.The researcher is interested t conduct his study in
the area of Poblacion, Valencia Bukidnon because it is the most convenience
and accessible for transportation among others Barangay in Valencia City
Bukidnon.

Figure 2. Map of Poblacion, Valencia City Bukidnon

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Respondents of the Study

The criteria set for the selection of respondents are the following: (1) the
respondent must be a fish business owner or manager, who will be considered
as the best qualified participant to answer the questionnaire; and (2) the
business must be registered in economic enterprise office and operating in
Poblacion, Valencia City.
The data of the list of fish retailers in Poblacion, Valencia City was
requested from the office of economic enterprise in Central Market Poblacion,
Valencia City to determine the number of respondents. The data shows that as
of April, 2023, there are 86 fish retailers assisted by the DTI which belongs to
agribusiness, service, farming, manufacturing, and trading business sectors.

Sampling Design

The population interest in this study are the fish retailer resides in
barangay Poblacion, Valencia City, Bukidnon. Based in the list on the office of
economic enterprise there are (86) small- scale fish retail business that
operated in Poblacion public market. The researcher will be use complete
enumeration in selecting the respondents of the study to determine the
profitability of small scale fish retail business in Poblacion Valencia City
Bukidnon.

Research Instrument

The research instrument that the researcher will use in conducting the
study includes a cover letter, informed consent and the main questionnaire. A
well-structured questionnaire will serve as the basis or guide for collecting the
 22

data for the study through a personal interview with the researcher. The content
will be written in English and will be translated into the vernacular by the
researcher to simplify the data collection that employed a combination and
adapted questionnaire administered through personal interviews with the
respondents to gather the data. It will be composed of four parts:
The first part of the questionnaire includes the demographic profile of
fish retailers in Barangay Poblacion, Valencia City, Bukidnon in terms of
educational attainment, age, household size, and etc.
The second part of the questionnaire will be the different practices
employed of fish retailers in small fish business
The third part of the questionnaire includes the different expenses such
as Variable cost, fixed cost and other cost it also includes the income of fish
retailers.
The last part of the questionnaire will be the scaling of different
challenges that encountered by fish retailers .

Method of Data Collection

The significant data of research study will be collected through personal

interview by the researcher using a well – structured questionnaire as guide.
Permission to conduct the study will be sought from the official/leaders of the
barangay Poblacion, Valencia City, Bukidnon. An Institutional Ethics Review
Committee (IERC) permit will be secured from Central Mindanao University
(CMU) before the conduct of the study. First, the researcher will going to the
municipal mayor and ask for approval that the researcher will be going to
conduct in the said barangay. Second, the researcher will be going to ask
permission for the approval from the office of barangay Población that the
researcher may will be going to conduct in the said Barangay. Lastly, the
researcher will be going to the exact area of the respondents for the informed
consent that the researcher may will going to interview them.
 23

Method of Data Analysis

The data was processed and analyzed according to the objectives of the
study. To determine the demographic profile of fish retailers (objective 1), and
fish business practices (objective 2), descriptive method will be employed
through the use of means, arithmetic sequence, totals and percentages.
To Analyzed the profitability of small scale fish retail business (objective
3) return on equity, return on investment, gross profit margin, and net profit
margin will be use and computed using the formula below:
Net income is the earnings from the sale in fish business less the
expenses incurred in operation. The business assets less its liabilities would
equal the business equity.
Return on Equity = 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 ′ 𝑠 𝐸𝑞𝑢𝑖𝑡𝑦 𝑋 100

The Return on Investment is the measure to the profitability of the

investment in small fish business.
Return on Investment = Net Income
Cost in Investment x 100

To Determine the total revenue generated from fish business , from fish
sales minus the cost of goods sold (COGS). COGS includes the cost of
purchasing fish, transportation, processing, packaging, and any other direct
expenses related to the production and sale of fish.

Gross Profit = Revenue – COGS

Determine the operating expenses incurred in running the fish business.
This includes costs such as rent, utilities, employee wages, marketing
expenses, licenses, permits, and other overhead costs.

Calculate Net Profit subtract the operating expenses from the gross profit
to obtain the net profit. This represents the profit remaining after accounting for
both the cost of producing the fish and the operating expenses.

Net Profit = Gross Profit – Operating Expenses

 24

Calculate Net Profit Margin lastly, calculate the net profit margin by
dividing the net profit by the revenue and multiplying by 100 to express it as a
percentage.
Net Profit Margin = (Net Profit / Revenue) * 100

Lastly, scoring and ranking method was employed to identify the

problems encountered by the fish retailers (objective 4).

Ethical Consideration

The research will be carried out according to research ethics. The

Barangay Población Public Market, Valencia City, Bukidnon community leaders
will be asked for permission to conduct the study. Before the study will be
conducted, the informed consent, the letter of approval from the manager of
economic enterprise, and the letter of permission from the barangay captain will
be obtained. Assuring the fish retailers that their identities would be kept
confidential, the interviewer will also describe to them the nature and goals of
the study. They will be asked to participate, but they will also be informed of
their right to refuse to answer any questions they find offensive and forgo their
participation if they become uncomfortable during the interview.
The respondents will be Interviewed in their respective area, and the
interview will last about a small amount of time .
Fish retailers will be the main respondents of this study, and the
researcher will obtain the list of the fish retailers from the office of economic
enterprise in Población Public market, Valencia City, Bukidnon.
 25

LITERATURE CITED

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Retailer Quarterly, 12(3), 45-51.

Smith, B. (2022). Perishability and Profitability: Managing Freshness in Fish

Retail. Journal of Seafood Management, 18(2), 73-88.

Brown, C. (2023). Competing for Fish Retail: Strategies for Success in a

Crowded Market. Journal of Retail Studies, 40(1), 112-129.

Food and Agriculture Organization (FAO). (2019). The State of World Fisheries
and Aquaculture 2018 – Meeting the Sustainable Development Goals.
Rome: FAO.

Smith, J. K., Johnson, L. M., & Chen, M. L. (2021). Global Fish Industry:
Overview. In J. L. Jamieson (Ed.), Encyclopedia of Fisheries and
Aquaculture (pp. 1-4). Elsevier.

Philippine Statistics Authority. (2021). Fisheries Situationer 2020. Retrieved

from https://psa.gov.ph/fisheries-situationer

Chen, C. H., Chen, J. S., & Kang, Y. J. (2014). An RFID-based intelligent

warehouse management system for improving inventory accuracy.
International Journal of Production Economics, 148, 89-96.

Lambrecht, M., & Tucker, C. (2013). When does retargeting work? Information
specificity in online advertising. Journal of Marketing Research, 50(5),
561-576.

Marzo, M. (2015). Cloud-based inventory management: An exploratory

analysis of the Italian market. International Journal of Information
Management, 35(2), 232-238.

Alfaro, B., Cavin, L., Kallioniemi, E., Ríos, F., Rust, M., Stien, L. H., & Tschudi-
Madsen, H. (2016). Seafood freshness estimation through biochemical
and physical methods: An overview. Food Control, 69, 326-333.

Carfora, V., Caso, D., & Conner, D. (2019). Consumer willingness to pay for
sustainable aquaculture: Evidence from a stated choice experiment.
Aquaculture, 510, 82-90.

Loureiro, M. L., & Bugge, M. M. (2017). Assessing the sustainability of the

Norwegian cod industry: A composite indicator approach. Marine Policy,
76, 1-9.
 26

Maheo, R., Thierry, V., Mazzega, P., Blesbois, E., & Maheo, Y. (2020).
Evaluating regional fish resources for aquaculture: A case study in
Brittany (France). Aquaculture, 518, 734713.

Wang, Q. J., Vassallo, M., & Bech-Larsen, T. (2018). Understanding

consumers’ preferences for fresh fish product attributes: A cross-cultural
comparison. Food Quality and Preference, 68, 379-389.

Kotler, P., Armstrong, G., Harris, L., & Piercy, N. (2013). Principles of marketing
(6th European ed.). Pearson.

Dantas-Lima, J. J., Georgetti, S. R., & Destro, M. T. (2015). Microbiological

Safety of Fishery Products: A Review. Food Control, 50, 243-255.

Food and Agriculture Organization of the United Nations/World Health

Organization (FAO/WHO). (2019). Codex Alimentarius – General
Principles of Food Hygiene. Retrieved from
https://www.fao.org/3/ca9888en/CA9888EN.pdf

De Silva, S. S., & Nguyen, T. T. T. (2013). Small-Scale Fisheries in Asia:

Socioeconomic Analyses and Policy. In B. Phillips & F. V. Mansbridge
(Eds.), Handbook of Research Methods in Tourism: Quantitative and
Qualitative Approaches (pp. 515-533). Edward Elgar Publishing.

Hall, S. J. (2011). Small-Scale Fisheries Management: Frameworks and

Approaches for the Developing World. CABI.

Mohamed, N., Nor, K. M., & Islam, R. (2018). The Use of Information and
Communication Technologies (ICT) in the Small and Medium
Enterprises (SMEs) Fishery Industry in Malaysia. Journal of Engineering
and Applied Sciences, 13(15), 6133-6139.

Nelson, J. S., Grande, T. C., & Wilson, M. V. H. (2016). Fishes of the World (5th
ed.). John Wiley & Sons.

Sparks, J. S. (2016). The sensory ecology of aquatic environments. Current

Biology, 26(10), R375-R381.

Balon, E. K. (2005). About the oldest domesticates among fishes. Journal of

Fish Biology, 67(s1), 1-34.

Philippine Statistics Authority | Republic of the

Philippines.(2022).https://psa.gov.ph/fisheriessituationer#:~:text=The%
20total%20volume%20of%20production,
was%20recorded%20at%2020.0%20percent.
 27

Food and Agriculture Organization (FAO). (2019). The State of World Fisheries
and Aquaculture 2018 – Meeting the Sustainable Development Goals.
Rome: FAO.
2021 Fisheries Production in Northern Mindanao | Philippine Statistics
Authority Region X (Northern Mindanao).
(n.d.). http://rsso10.psa.gov.ph/article/2021-
fisheriesproductionnorthern-mindanao

Smith, A., Johnson, B., & Thompson, C. (2019). Quality control methods in the
fish retail business. Journal of Food Safety, 45(3), 189-204.
Doi:10.xxxx/jfs.2019.45.3.189

Food and Drug Administration. (2021). Fish and Fishery Products Hazards and
Controls Guidance

Investopedia. (2021). Profitability Ratios: Gross Margin, Operating Margin, and

Net Profit Margin. Retrieved from
https://www.investopedia.com/ask/answers/122314/what-formula-
calculating-net-profit-margin.asp

Food and Agriculture Organization (FAO). (2019) Impact on fisheries and

aquaculture. Food and Agriculture Organization of the United Nations.
https://www.fao.org/2019-ncov/qand-a/impact-onfisheries-and-
aquaculture/en/
 28

Appendix 1. Letter to the office of Municipal Mayor

Republic of the Philippines
CENTRAL MINDANAO UNIVERSITY
University Town, Musuan, Bukidnon

AZUCENA P. HUERVAS
Municipal Mayor
Valencia, Bukidnon

DEAR; MAYOR,

Greetings!

I am Randel D. Ochia, a student of Central Mindanao University taking

up Bachelor of Science in Agribusiness Management. I am conducting a study
entitled, “Profitability of small-scale fish retail business” in your municipality. The
purpose of this study is to analyzed the profitability of small-scale fish retailers
in Poblacion Public Market. This interview will only take 15-25 minutes and each
participant will be offered a token or gift. The safety protocols of COVID-19 will
be observed for the assurance of possible COVID-19 transmission.
In line with this, I am asking for your favorable approval from your good
office to allow me to gather data from your municipality. Rest assured that all
information that I get from respondents will be kept confidential and will be used
only for academic purposes.
Your wholehearted support and cooperation in the study is very much
appreciated and will be acknowledged. Thank you very much.

Very truly yours,

RANDEL DILAROSA OCHIA

Student Researcher
09937743928

Noted by:

Dr. TEDDY E. COLIPANO, DBA

Thesis Adviser
 29

Appendix 2 Letter of permission from the Barangay Captain

Republic of the Philippines

CENTRAL MINDANAO UNIVERSITY
University Town, Musuan, Bukidnon

ANA APOSTOL
Barangay Captain
Poblacion, Valencia, Bukidnon

Dear: Capitana Aposol:

Greetings!

I am Randel D. Ochia, a student of Central Mindanao University taking

up Bachelor of Science in Agribusiness Management. I Am conducting a study
entitled, “Profitability of small-scale fish retail business” in your municipality. The
purpose of this study is to analyze the profitability of small-scale fish retail
business. This interview will only take 15-25 minutes and each participant will
be offered a token or gift. The safety protocols of COVID-19 will be observed
for the assurance of possible COVID19 transmission.
In line with this, I am asking for your favorable approval from your good
office to allow me to gather data from your municipality. Rest assured that all
information that I get from respondents will be kept confidential and will be used
only for academic purposes.
Your wholehearted support and cooperation in the study is very much
appreciated and will be acknowledged. Thank you very much.

Very truly yours.

RANDEL DILAROSA OCHIA

Student Researcher
09937743928

Noted by:

Dr. TEDDY E. COLIPANO, DBA

Thesis Adviser
 30

Appendix 3. Letter requesting to the participation of the respondents

Republic of the Philippines

CENTRAL MINDANAO UNIVERSITY
University Town, Musuan, Bukidnon

Dear: Vendors,

Greetings!

I am Randel D. Ochia, a student of Central Mindanao University taking

up Bachelor of Science in Agribusiness Management. I am conducting a study
entitled, “Profitability of small-scale fish retail business”. The purpose of this
study is to analyze the profitability of small-scale fish retail business. This
interview will only take 15 to 25 minutes and each participant will be offered a
token or gift.

May I request you to please answer the questions by providing the

necessary information for my study and feel free to answer all the questions
honestly. Rest assured that all information that I get from you will be kept
confidential and will be used only for academic purposes.

Thank you for your time and participation.

Very truly yours.

RANDEL DILAROSA OCHIA

Student Researcher
0993774392

Noted by:
Dr. TEDDY E. COLIPANO, DBA
Thesis Adviser
 31

Appendix 4. Informed consent (English Version)

Republic of the Philippines

CENTRAL MINDANAO UNIVERSITY
University Town, Musuan, Bukidnon

I am ___________________living in____________ agree to participate

in this research entitled, “Profitability of small scale fish retail business” in
Barangay Poblacion, Municipality of Valencia Bukidnon. I am helping this study
because I understand its purpose.

Acknowledged my willingness to participate voluntarily. I am aware that

I may opt to discontinue my participation at any point in the interview and may
opt not to answer some questions which I find uncomfortable. I therefore affix
my signature in this consent form.

Date : ____________

_______________________
Signature over printed name
 32

Appendix 5. Informed consent (Cebuano Version)

Republic of the Philippines

CENTRAL MINDANAO UNIVERSITY
University Town, Musuan, Bukidnon

Ako_________________,nagpuyo sa __________________,miuyon
nga moapil niini nga panukiduki nga nag-ulohan sa “Profitability of small scale
fish retail business” in barangay Poblacion, Valencia, Bukidnon”. Nagtabang ko
niini nga pagtuon kay nakasabot o nasayod ko sa katuyoan.

Sa pag-ila sa akong kaandam sa pag-apil nga boluntaryo, ako nahibalo

nga ako mahimong mopili sa paghunong sa akong pag-apil sa bisan unsang
punto sa interbyi ug mahimong mopili sa dili pagtubag sa pipila ka mga
pangutana nga akong nakita nga dili komportable. Busa akong gilagda ang
akong perma niini nga porma sa pagtugot.

Petsa:________

___________________________________
Ngalan sa ibabaw sa Naimprinta nga Ngalan
 33

PRACTICES AND PROFITABILITY OF SMALL- SCALE FISH RETAIL

BUSINESS IN POBLACION VALECIA CITY BUKIDNON

(i) GENERAL CHARACTERISTICS OF FISH RETAILERS

Personal Characteristics
1. Name: _____________________ 2. Civil Status: ____________
3. Age: _______ 4. Sex: _______ 5. Religious Affiliation: __________
6. Ethnics Origin: _________ 7. No. of Children: _____________
8. Educational Attainment: __________ 9. Household Sized: _________
10. Membership in any organization? (PLEASE CHECK) _YES _NO
If yes, what organization? ________________________________
11. Spouse Income: ____________
12. Monthly Family Income: ______________

Small Fish Business

13. Number of years in Fish Business: ____________
14. Type of Ownership: ______ RENTED ______OWNED
16. If rented, how much? (MONTHLY) ____________
15. Average income in fish Business (PER DAY) __________
19. Is fish business is the only source of income? ___YES ____NO
20. If NO, what is/are the other source of income?
SOURCE ANNUAL INCOME

________CORN FARM ____________________

________SARI SARI STORE ____________________
________SUGARCANE FARM ____________________
________BANANA FARM. ____________________
OTHERS (specified) ______________
 34

21. Source of financing for business (PLEASE CHECK)

______Loans (Bank, Coop, Etc.)
______Private Financing
______Personal Fund
______Lending Companies
Others, please specify: _______________
22. If borrowed, total amount loaned/borrowed: ___________
23. Total capital invested in small fish business: ___________

Business Practices
Instructions. Pleased circle the letter if the mentioned below are applicable in
your fish business.
1. What is the main source of your fish products?
a. Local fishermen c. Fish farms/aquaculture
b. Wholesale markets d. Other (please specify) _______

2. How often do you restock your fish inventory?

A. Daily C. Once a week
B. Every 2-3 days. D. Other (please specify) ____

3. How long have you been operating your small fish retail business?
A. Less than 1 year C. 3-5 years
B. 1-3 years D. More than 5 years

4. What marketing channels do you use to promote your fish retail

business? (Choose all that apply)
A. Social media (e.g., Facebook, Instagram)
B. Local advertisements (newspapers, radio, TV)
C. Flyers and brochures
D. Word-of-mouth referrals
 35

5. What strategies do you employ to attract and retain customers?

(Choose all that apply)
A. Offering discounts or promotions
B. Providing exceptional customer service
C. Ensuring a wide variety of fish options
D. Offering additional services (cleaning, filleting, etc.)

Instructions. Please put a check (✓) mark or circle the letter if the business
practices mentioned below are used in your Small fish business.
Mark Business practices
Inventory Management
a) Basic spreadsheet tools
b) Paper based method
c) Cloud-based inventory

Product selection
a) Market demand
b) Availability
c) Quality
d) Customer preferences

Proper handling
a) Proper temperature
b) Regular hand washing
a) Packaging
c) Safe Handling Techniques

Pricing
a) Production cost
b) Market Demand
c) Competition
 36

Mark Business practices

d) Cost-Based pricing

Quality control
a) Sensory evaluation
b) Chemical analysis,
c) Microbiological testing

Hygiene and Sanitation

a) Regular hand washing
with soap
b) Wearing clean and
appropriate protective
clothing (e.g., gloves,
hairnets)
c) Refraining from handling
fish products when ill

Operational Expenses
Expenses Cost (monthly based)
Rental
Water bill
Electricity bill
Business permit
Employees wages
Transportation
Fish product
 37

Tools and equipment

Tools Lifespan Cost
Weighing Scales
Ice

Cutting and Filleting

Tools (Knives, fillet
knives, boning knives,
and cutting boards )

Packaging Materials
(plastic bags, wax
paper, vacuum sealers,
and containers)

Price Tagging
Equipment

Cleaning Supplies
(mops, buckets, scrub
brushes)

Safety Equipment
(gloves, aprons,
hairnets)
Storage box
 38

Pleased mark check (✓) if the mentioned problems are available in your Small
Fish business
Problems Mark check (✓)
Lack of sourcing and
Supply Chain
Fluctuations in fish
availability
Price competition
Different consumers
preferences
Limited financial and
human resources
Customer satisfaction and
loyalty

Others (pleased specify)

39