Processing and marketing of woodcraft products in Paete, Laguna / by Analyn E. dela Cruz.

Thesis (B.S.B.M.--Economics) Cavite State University

Includes bibliographical references.

College of Agriculture, Food, Environment and Natural Resources (CAFENR)

DELA CRUZ, ANALYN ERSANDO. "Processing and Marketing Arft Products in Paete, Laguna", S. Thesis, Bachelor ence in Business Management major in Economics, Cavite University, Indang, Cavite. Adviser: Dr. Nelia C. Cresino
This study was conducted in Paete, Laguna to describe: tit) the socio-economic characteristics of woodcarvers; (2) describe the processing and marketing practices employed by the woodcarvers; (3) assess the profitability of processing woodcraft products; and (4) identify the problems encountered in processing and marketing woodcraft products. The distribution of respondents by barangays was determined through quota sampling and respondents were selected and identified through purposive sampling. Data were gathered through personal interview with 60 respondents with the aid of the prepared questionnaire. The age of the respondents ranged from 25 to 68 years with an average of 44 years old. Majority of them were male; college and elementary graduates; and with an average household size of six members.
The average length of experience in managing the business was 19 years. The average monthly income of the respondents from all sources was ₱12,846.35 while the average income derived from woodcarving business was P11,606.50. Majority of the respondents revealed that woodcarving business was their main source of income using their personal savings as capital.
The processing practices employed by the woodcarvers securing lumber, band sawing, drying and chemical statement, detailing, surfacing, sanding. Varnishing and The item processed and marketed by the respondents were religious, decorative and collector's items. The major religious items processed by the woodcarvers were sacred heart, crucifix, Mama Mary, last supper and angel. Pricing of items was based on the kind of wood used, production cost, size .and design of the product. Respondents sold an average of 54 pieces of religious items and an average of 253 pieces of non-religious items a year. Respondents marketed the products in the department stores, churches, and stalls from different places. They sold the products to contract buyers, wholesalers, retailers and customers. Products were either delivered or picked-up from the producer's area Woodcraft products were disposed to buyers who were mostly from Baguio, Cavite, Metro Manila and within Paete, Laguna. Products were delivered by means of jeepney and tricycle. They were paid either through cash or on installment basis. Woodcarvers promoted the items through billboards, sales discounts and exhibits. Results of the study revealed that the average sale of woodcraft products was ₱452,864.04. Eighty-two percent of the total sales were allotted for religious items amounting ₱372,267.23; 15 percent were allotted for collector's amounted to ₱67,155.10 and only three percent were allotted for decorative items amounting to ₱13,510.71. Cash costs which include cost of raw materials used, hired laborers and other operating expenses amounting to ₱280,065.71. Non-cash costs, comprised of value of family labor, opportunity cost of capital and depreciation, amounted to ₱12,720.5:7. With the total average sale of ₱ 452,3 64.04 and a total average cost of P312,786.26, the woodcarvers earned an average profit of P140,007.78. • The net profit to owner's equity was 28 percent while its gross profit margin was 32 percent. The average return on• total assets was recorded at 28' percent. The problems encountered by the woodcarvers were lack of capital, high cost of materials, shortage of wood supply, and misbehavior of laborers. On the other hand, woodcarvers also encountered problems in marketing the items. These were the competition/nsulutan", high cost of transportation and irresponsible customers.

Submitted to the University Library 07/18/2007 T-1804