THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

CHAPTER 1
INTRODUCTION
The Municipality of Conner is part of the Old Mountain
Province. It was administrative under Kalinga Apayao at that
time until it was created as a regular Municipality of Conner.
The said municipality has a total land area of 91,384.42 square
kilometers as indicated in the newly approved cadastral survey,
CAD1010D. It ranks 3rd in size for the entire province
representing 20.65% of the hectarage.
Conner has both surface and ground water. The former is
abundantly scattered in the mountainside, which serve as
watershed for the rivers. The latter is found in the lower
elevated areas tranversed by the rivers. The average depth of
ground water in these areas is 15 meters from the surface. This
shows that the soil formation is permeable to river water. With
the favourable climate, the soils of Conner are generally
suitable for all kinds of agricultural plants. The municipality
in particular already has established a plantation for fruit
crops. High value crops such as banana, lanzones, rambutan and
others are observed to thrive in different elevation in the
municipality. With the abundance of these fruit crops, it will
create an avenue for the province not just of the technology
within the region but also of its Agri-tourism potential.

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

The challenge in the organization is on how to know

what fruit is profitable. The benefit of this is that the people
would prioritize so as lessen time, effort and money.
BACKGROUND OF THE STUDY
Business is an organization involved in the trade of goods,
services, or both to consumers. It is prevalent in capitalist
economies, where most of them are privately owned and provide
goods and services to customers in exchange for other goods,
services, or money. It may also be not-for-profit or state-owned.
A business owned by multiple individuals may be referred to as a
company.
Business can refer to a particular organization or, more
generally, to an entire market sector. Compound forms such as
agribusiness represent subsets of the word's broader meaning,
which encompasses all activity by suppliers of goods and
services. The goal is for sales to be more than expenditures
resulting in a profit.
The suitable type of business in the Philippines is the
agricultural business. This is a business of agricultural
production. It includes agrichemicals, breeding, crop production
(farming and contract farming), distribution, farm machinery,
processing, and seed supply, as well as marketing and retail

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

sales. That seminal work traces a complex value-added chain that

begins with the farmer's purchase of seed and livestock and ends
with a product fit for the consumer's table.
The discipline of agribusiness is changing to market
centric. All agents of the food and fiber value chain and those
institutions that influence it are part of agribusiness system.
Within the agriculture industry, "agribusiness" is used simply as
a portmanteau of agriculture and business, referring to the range
of activities and disciplines encompassed by modern food
production. There are academic degrees in and departments of
agribusiness, agribusiness trade associations, agribusiness
publications, and so forth, worldwide.
The UN's Food and Agriculture Organization (FAO) operates a
section devoted to Agribusiness Development which seeks to
promote food industry growth in developing nations.
In the context of agribusiness management in academia, each
individual element of agriculture production and distribution may
be described as agribusinesses. However, the term "agribusiness"
most often emphasizes the "interdependence" of these various
sectors within the production chain.
There are a lot of agricultural businesses in the
Philippines; one of this is the fruit and vegetable farming and

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

the resale of such fruits and vegetables to the consumers which

is the focus of this study.
Fruit Business is a regulated business with specific rules
and guidelines regarding fruit grade, method of transportation,
storage requirements and freedom from disease or insect
infestation. Most fruit brokers distribute fruit locally, which
commonly they used in Conner Apayao, although some may have
distribution on the national level. It is always best to start
out small, at the local level, and expand your business
slowly. Then you need to be careful on choosing what fruit should
be purchased most. This is the most crucial step in forming a
fruit business because this might be the cause of your
profitability or losses in the future.
With the soil suitability and capability, fruit bearing
crops are abundant in the Municipality of Conner-Apayao, the
focused of the study. Having such capacity would mean a high

dependence on establishing their own fruit business. Fruit business

is very essential in the community, it would give opportunity not
just to those average income earners but to those who cannot be
employed, physically challenge can earned income through this.
The risk of having this business in the community specifically
in the municipality of Conner is that we all knew that fruits are
produced seasonally, but the market requires products throughout

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

the year. Although this problem of matching product availability

with consumer demand was solved in two ways: First, selling fresh
products during harvest and shortly thereafter and second,
processing the rest to meet demand during the rest of the year.
But the next challenge in the community is on how they would know
what fruit would give a high profit in the future. Thus, the
vendors should make a preliminary study on the choices of the
people despite the fact that it is not seasonal.
This study, the profitability of fruit business in the
municipality of Conner, Apayao would give the vendors guidance in
the near future for their upcoming peak of business and
additional knowledge that would be helpful for their fruit
business. This would be a guiding path for every vendors goalprofit oriented and fruit specification that would give a lot of
profit.
People in urban areas might not appreciate this study because
they might question the place itself. They might say this study
would be helpful but would it be really helpful in the real world
knowing Apayao was a bit an unknown to place.
But for everybodys knowledge, the problem on accessibility
would not be a big deal in the Municipality of Conner because it
is seventy three (73) kilometers drive from Tabuk City, which is

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

the center of Commerce in the Kalinga. Other than the Cagayan

Valley through a ninety four (94) kilometers drive from
Tuguegarao City, known as the hottest city in the Philippines,
via Tuao.
PURPOSE OF THE STUDY
In this study, the profitability of fruit business in
the municipality of Conner Apayao, with a goal to help the
community/farmers to prioritized which fruit should plant most as
an effect it would lessen time, effort and money. Through this
study, the community might use this as tool in the future as door
towards agricultural business improvement not just in the
community alone but towards exportation to other places. This
study will also create an avenue for the province not just as a
Commerce Industry but in the region as an Agri-tourism potential.
As an affect the competitive performance of a business
concern, and the manner in which changes in technology affect the
organisation's structure, long-term business strategy, product
development, manufacturing, supply chains, distribution network,
information needs and standard systems.
SIGNIFICANCE OF THE STUDY
A business, also known as an enterprise or a firm, is an
organization involved in the trade of goods, services, or both to

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

consumers.[1] Businesses are prevalent in capitalist economies,

where most of them are privately owned and provide goods and
services to customers in exchange for other goods, services, or
money. It can refer to a particular organization or, more
generally, to an entire market sector, which encompasses all
activity by suppliers of goods and services. The goal is for
sales to be more than expenditures resulting in a profit. Getting
profit from your business would be a question and maintaining it
would a lot be a hard work.
The municipality of Conner Apayao having a favorable weather
conditions for the past harvest crops helps mobilize all other
resources within the area where large plantation exists. Through
this, we all know that profit of fruit basket should be at its
peak but how would the people maintain such if after the season
of a certain fruit, the vendors will incur loss.
This study helps fruit business owners to have a proper
planning that necessary to reach the target by identifying which
is the most profit giving fruit and which is not. It would also
give understanding on the demand of the people. As a result your
educated guesses will be better and you can better plan and
manage cash for.
As for the farmers, they would know the demand ability of
consumers and they would predict what should be planted. Other

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

than the entering of technology would be open because the farmers

would think of what to use in order to plant even not in its
harvest season.
For the community as a whole, they will no longer travel
going to Tabuk City or Tuguerarao City because fruits that they
are needed are available in there market. In would give them less
expense and less time because the travelling alone would be 4 to
5 hours in one way and costs P150.
For the planning investors of fruit business, this would
give knowledge for the success of their business.
Other than that, the place would be an avenue for a big
market because entrepreneurs in neighborhood places would get
fruits in the said place which are not available in their own
market. Exportation is at its peak.
CONCEPTUAL FRAMEWORK
The approach use in this study is to give a background in
the past harvest crops profit in different fruit bearing tree. It
would include lanzones, rambutan, banana and citrus crops.
Chapter 2 presents a review of literature of each crop, business
continuity, and scenario futuring fields to provide a foundation
for the study.

Chapter 3 is comprised of an examination of the

profitability of each crop, its continuity and scenario futuring

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

fields.

In Chapter 4, these gathered data are synthesized so as

to compare each result with the other fruit crops. Chapter 5

presents the conclusion and recommendations.
The basis for conceptualizing the profitability of fruit
basket in the municipality of Conner Apayao is to provide an
option and guide to every fruit business owners, farmers,
planning investors of the said business on what fruit has the
greatest demand ability and can lead to a path to
entrepreneurship and income generation aside from the basic
knowledge that they knew from incurring profit through the season
of a certain fruit but incurring also losses after such time.
Fruit Business is full of uncertainties in order to minimize
such uncertainties; we need to have a proper planning in the
business.
As experience for the past years, the fruit business owners
would sell fruits that are available and planted by the farmers.
Then after which, they will sell it to the consumers. The problem
here is that, the farmers will just plant what they think is
appropriate and if a lot of farmers would harvest the same fruit,
it would fluctuate in the community resulting to low price and
low profit. The big question would be, are the consumers really
interested in such fruit? What if no, the effect would be loss on
the part of the fruit business owners. It is because when the

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

market is available of a certain fruit, they-the fruit business

owners need to buy such thinking it would be what the consumers
wants to buy. Then, it would be store in the warehouse or storage
area for quite some time just enough passed the low price in the
market due to abundant harvest of such fruit.
After which, the fruit business owner will then put it in
his business. Commonly, the people would no longer be interest
with the said fruit because it might be that the low price of
abundant harvest of such is still in the market or it is not
really the demand in the society. Due to obsolescence, the fruit
business owner will just sell it at a price in which it cost him
to buy such or at a worst case, lower of its original price. This
study will focus on what is really demand fruit in the society
that even in a high price; consumers would be willing to buy it.

Paradigm
INDEPENDENT VARIABLE:

Consumers Demand ability to a

certain fruit.
Price and the less fluctuation of
numbers of fruits in the
community.

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

DEPENDENT VARIABLE:

Profit on Fruit Business Vendors

and Farmers.

The paradigm illustrates the conceptual framework of the

study and how profitability can be incorporated. This study will
link between the two variables. As you can see, the price is one
of the independent variable because through this study, the price
will be at the hand of the vendors because of its demand ability.
The incorporation in the fruit business owners and farmers
and its proper application with the end recipient of the study to
be the consumers as such opening a pathway to career and lifelong
profit.
THEORETICAL FRAMEWORK
The theory of supply and demand in classical economics,
factors that are said to determine price, by correlating the
amount of a given commodity producers hope to sell at a certain
price (supply), and the amount of that commodity that consumers
are willing to purchase (demand). Supply refers to the varying
amounts of a good that producers will supply at different prices;
in general, a higher price yields a greater supply. Demand refers

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

to the quantity of a good that is demanded by consumers at any

given price. According to the law of demand, demand decreases as
the price rises. In a perfectly competitive economy, the
combination of the upward-sloping supply curve and the downwardsloping demand curve yields a supply and demand schedule that, at
the intersection of the two curves, reveals the equilibrium price
of an item. More recent theories, such as indifference-curve
analysis and revealed preference, offer more flexibility to the
supply and demand theories created by proponents of marginal
utility. The theory of elasticity is significant as well: it
shows how certain commodities will bear a substantial rise in
price if there is not an equitable substitute available, while
other easily replaceable.
In this study, the theory of supply and demand is used, the
only difference is that the farmers and fruit business owners
will demand for a certain price not the consumers. To illustrate
further in addition to the paradigm above is the illustration
below.

Note that in the diagram, there is no arrow from diversity

directly to profitability. This means that if we control for
innovativeness, diversity is unrelated to profitability.

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

Diversity on the different fruits. One that decreases price is

the abundant number of a certain fruit. The farmers should stick
on maintaining a number of fruits harvest and harvest more to
which is in the demand.
If we look at the relationship between diversity and
profitability, we might find that the more diverse companies
have, on average, higher profitability than the less diverse
companies. In lieu with the study, if we make diversity on fruit
it means profitability. When the market is homogenous meaning one
fruit at that season, people would go out of the market and find
for other market that satisfies their demand.
The innovativeness of the farmers and the fruit business
vendors would be the greatest tool for the profitability.
Innovative in such a way that what is proper for the season but
not really abundant at time, available in the community and can
name price.
STATEMENT OF THE PROBLEM
The purpose of this study is to develop a guide that would entail
profitability of fruit business in the Municipality of Conner
Apayao.
1. What will be the fruit that give most profit?

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

2. How could the fruit business vendors and farmers integrate

this study to have more profit.
HYPOTHESIS

(HA) As a result of study, there will be a profitability of

fruit business in the Municipality of Conner Apayao?

(HO) As a result of study, there will be no profitability of
fruit business in the Municipality of Conner Apayao?

LIMITATIONS
This study is specifically address in Conner Apayao. This
study does not applicable to all fruit crops of bananas,
rambutans, lanzones and citrus of other places due to the
differences in the weather ,their topographical area and the
fertility of the soil.

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO

CHAPTER 2-DESIGN AND METHODOLOGY

RESEARCH AND DESIGN
LOCALE AND POPULATION
DATA GATHERING PROCEDURE
DATA GATHERING INSTRUMENT
VALIDITY AND RELIABILITY OF QUESTIONNAIRE
TREATMENT OF DATA
STATISTICAL TOOL

THE PROFITABILITY OF FRUIT BUSINESS IN THE MUNICIPALITY OF CONNER APAYAO