Production and price behavior of selected vegetable in Cavite / by Lizette A. Paiton.

Thesis (BS Business Management -- Business Economics) Cavite State University

College of Economics, Management, and Development Studies (CEMDS)

College of Economics, Management, and Development Studies (CEMDS)

PAITON, LIZETTE A. Production and Price Behavior of Selected Vegetables in Cavite. Undergraduate thesis. Bachelor of Science in Business Management major in Business Economics. Cavite State University, Indang, Cavite. April 2014. Adviser: Dr. Maria A. Ersando.

The study aimed to: (1) determine the volume and growth rate of production of selected vegetables in Cavite from 2003 to 2012; (2) determine the trend in the volume of production of selected vegetables during the study period; (3) come up with an estimate of production of selected vegetables in Cavite from 2013 to 2017; (4) describe the monthly movement of retail prices of selected vegetables in Cavite; (5) determine the months of high and low prices for selected vegetables; and (6) determine the correlation between production and retail price of selected vegetables in Cavite. Secondary data needed in the study were gathered from the provincial offices of the Bureau of Agricultural Statistics and the Department of Agriculture (DA). Arithmetic mean, growth rate, least squares, linear regression, and seasonal indices thru ratio-to-moving average method (12-month moving average) were the statistical tools used in analyzing the production and prices of selected vegetables (ampalaya, eggplant, squash, tomato and pole sitao) in Cavite. The production of selected vegetables in Cavite, particularly ampalaya, eggplant, squash, tomato, and pole sitao, during the study period generally increased from year to year with the production highest in 2011 and 2012 and lowest in 2003. The growth rate in production of these vegetables during the study period ranged from 14 to 53.68 percent with the highest observed in pole sitao and the lowest in eggplant.

The trend in the production of the five selected vegetables were generally increasing as indicated by their respective trend equations. Retail prices of the selected vegetables were relatively high in the latter part of the year and lower during the summer months. The supply and demand conditions greatly explain these movements in retail price. The correlation coefficients between production and retail prices of selected vegetables included in the study indicate that the increase in production did not result to lower prices as what is generally expected. Factors other than quantity produced may have affected the behavior of retail price, the more important of which is demand. The law of supply may have also affected the behavior of production and price. Greater efforts should be exerted in order to increase the production of vegetables which are high in nutrients that are needed by the body. The government should provide adequate support to vegetable growers and sellers in order to improve production. This will benefit not only the producers and sellers but the consumers as well. Concerned government and private agencies should provide the public with enough information as to the importance of vegetables, the supply and demand situation, and the behavior of price of these vegetables in the market.

Submitted copy to the University Library. 04/24/2014 T-5366