LYCEUM OF THE PHILIPPINES UNIVERSITY CAVITE

CHAPTER V

SOCIAL AND ECONOMIC ASPECT

5.1 Organic Agriculture

Organic Agriculture is an environmental friendly response to traditional

agriculture. It is a system that begins to consider potential environmental and social

impacts by eliminating the use of synthetic inputs, such as synthetic fertilizer, pesticides,

modified seeds and breeds, additives and irradiation. Organic agricultural methods are

internationally regulated and legally enforced by many nations based in large part on the

International Federation of Organic Agriculture Movements (IFOAM) an international

umbrella for organic farming organization.

The market for organic food and other products has grown rapidly and this

demand has driven a similar increase in organically managed farmland that grew from

2001 to 2011 at a rate of 8.9% per annum. As of 2016, approximately 57,800,000

hectares worldwide were formed organically representing approximately 1.2% of total

world farmland. In 2013, the number of organic procedures grew by almost 13%. In

2014, there were reported 2.3 million organic procedures in the world including the

Philippines for 165,974 hectares.

Food and Drugs Administration stated that organic agriculture often leads to

higher prices and hence a better income for farmers so it should be promoted. Organic

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agriculture can contributed to ecological sustainability especially in poorer countries.

Application of organic principles enables employment of local resources and

therefore cost-effectiveness.

5.1.1 Contribution of the Company

Growing awareness regarding the nutritional advantages of animal based

fertilizers will further increase the demand and supply of organic fertilizer across the

globe. MaSSACCA Inc. intends to promote the practice of organic farming with the aid

of organic fertilizer as it creates a buzz in global fertilizers market coupled with

augmenting demand for organic food.

The company derives the raw materials from poultry farms or poultry raisers for

chicken manure, public markets for the food waste, and grass clippings from various

farms and barangay within the areas of Cavite, enhancing their waste segregation system,

and implementing 3R’s (Reduce, Reuse and Recycle) which is beneficial to our

environment.

Organic fertilizer, as being soil enhancer, facilitates the growth of organic

products providing good health benefits to the people. It enables soil fertility and its

capacity to hold liquid content, thus controlling or preventing soil erosion which can lead

to landslides, flooding and other community disasters.

The company will be committed in paying taxes to the government to support its

projects to be implemented.

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Through this study farmers will yield more crops, at the same time preserving soil

fertility and vital concern for health of the consumers.

5.1.2 Objectives:

 To introduce to the public the use of organic fertilizer that aims to produce

agricultural products satisfying customers’ demands by the use of processes that

do not harm the environment, human health or animal health and welfare.

 To study the impact of organic farming on farm income, consumer satisfaction,

export etc.

 To respect natures system and enhance health of the soil, water, plants and

animals.

5.2 Economic Conditions

5.2.1 Business in the Philippines

The Philippine fertilizer industry now operates largely under a free market system

with the production, importation, marketing and distribution of fertilizers. The country

currently has four fertilizer manufacturing plants that produce various fertilizer grades for

local use and for export. With its agricultural based economy, it is bound in organic

farming with the aid of animal manures, organic wastes, and grass clippings. So as to

promote the use of organic fertilizer in agriculture, the Department of Science and

Technology has been tasked to assist with the development of compost fungus activator

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production center nationwide, to promote composting, primarily in surrounding lowland

irrigated rice farms, and to pursue research and development in this field. The most

widely applied fertilizer grades are urea and 16-20-0. Urea is mainly used as a nitrogen

source whilst 16-20-0 is applied primarily as a source of phosphorus. Chicken manure is

the standard organic fertilizer used in agriculture, although to a much lesser extent cattle

and carabao manures are also used. Inorganic and organic fertilizers are normally applied

together. A wide variety of organic materials can be used as fertilizers such as animal

manures, agricultural by-products and processing wastes. Unlike inorganic fertilizers,

animal manures, not only provide nutrients but also provide organic substrate vital for

enhancing primary productivity. Consequently, it is now common practice for many

farmers to reserve manure from poultry farms or buy in bulk during the rainy months.

5.2.2 Business in the Proposed Location

The City of General Trias is a first class city in the province of Cavite Philippines.

According the 2005 census it has a population of 314,303 people. Genreal Trias is

considered one of the new frontiers of growth and development in the CALABARZON

area as attested by the giant industrial subdivisions located in the city. The master plan

for General Trias is to achieve an agro-industrial and residential balance. A locally

generated income of at least 100 million for the last two consecutive years. General Trias

is only 81.46 kilometres but has a population of 243,332 as of the 2010 census. The

commission on Audit also reported that the municipality generated a total income of

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₱159 million “from local taxes, permits and licenses, service and business income and

internal revenue allotments in 2013.

General Trias has been gradually undergoing industrialization since the turn of

the 21st century. Several major industrial estates such as Gateway Business Park, a world

class business community and new Cavite Industrial city in Manggahan have chosen

General Trias to be their home base.The Cavite Export Processing Zone occupies

about .60 square kilometers of land belonging to General Trias. The 20,000 square

meter public market is said to be more or less Php. 39,000,000. On the southern part of

the city lies one of the biggest Golf and Country residential estate Eagle Ridge Golf

and Country Club. Since the fourth quarter of 2017, a number of shopping malls and

areas are being built. There are also various distributors of soil conditioners or organic

fertilizers within the place. Sc Geda Organic fertilizer, Grow maxx are some of them.

5.3 Social Desirability

5.3.1 Skills Development To strengthen the competitiveness of the agricultural

company MASACCA Inc. implement and monitor training, education and advisory

services for employees and workers involved in different commodities and industries. To

ensure the development in the practice of organic agriculture in the country in line with

the Organic Agriculuture Act of 2010 (Republic Act of 10068) , we provide support to

and conduct seminars and training activities an organic farming leading to National

Certificate II in the collaboration with TESDA. We also support the establishment of

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learning sites in Indigenous People’s Community. Investing in your employees or having

a people efficient farm doesn’t have to be hard work. In fact, putting in little bit of effort

to provide an attractive workplace and are provided with relevant training ,

encouragement, guidance, reward, and possibilities for career development , will be much

more likely to work harder , care about doing their job properly and want to help you

grow your business . People new to the workplace will be relatively unfamiliar procedure

and cannot be expected to work efficiently and effectively without some of job of

training.60% of development should come from on-the-job activities and action learning .

This includes development experiences like job rotations, job shadowing, project

management, research and development. The development which is 30% should come

from interactions with other colleages. This includes supervision fpr having a supervisor,

a mentor, coaching and participation in communities of practice. Another 10% of

development should come from the training, including seminars and orientations.

5.3.2 Personnel and Staff

Most of the employees or workers receive non cash benefits in addition to their

wages. Such benefits can substitute for cash wages and in many cases are not subject to

taxation. Some also can receive from commodities as part of their compensation. These

can include several sacks of fertilizer which the employee could market. Many

employees like to tie part of an employee’s compensation to production efficiency or

some other criterion as a means to motivate and reward superior performance. Incentives

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can help motivate employees to really strive harder, be responsible for their actions that

will contribute beneficial actions to the organization. Reward and recognition are often

necessary to build trust and motivation with employees. Increasing productivity retain

employees, recruit great, skilled and professional ones, reaching and exceeding goals are

the fruits of these rewards and recognition.

5.3.3 Community

“A Healthier Soil for a Happier Soul”. This applies to people within the

community, In starting a business, one must consider the site location and its surrounding

areas. One must also observe cultural and social practices to avoid any conflict or chaos.

By attaining desired products standard, new customers will be attracted and old

customers will be sustained. The community nowadays demands for safe products or

those that offers health benefits. Being organic is one good example to promote good

health. As what Archie B. Canroll said, the organization after fulfilling his economic and

legal responsibilities can perform its discretionary and ethical responsibilities towards

being socially responsible for an organization without consideration to community

reduces its efficiency.

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5.3.4 Investors

Investors are looking for reasons to invest in a certain company. In order to protect their

interest in the company will build excellent relationship to generate profit and flow to the

investors pocket. MASACCA Incorporation will promote activities to observe, safeguard,

and enforce rights and claims of a person in his role as an investor. Businesses or even

countries with the stronger investor tend to grow faster.MASACCA Inc will also include

fairness of the market which means all participants in the market have access to the same

information. MASACCA Incorporation will also practice investor protection which

includes efforts and activities to observe, safeguard and enforce the rights and claims on

an investor . It also includes advice and legal actions.Through a good image and strong

foundation of company, It simply means that receptive investors are highly focused and

opportunities are ensured for them.

5.3.4 Supplier

Suppliers play a great role in the operation of the business to maintain and

develop competitive and strategic advantages. Their partnership with industries and

dedicated support to customers enables them to become a catalyst for providing

agricultural products and services.

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5.4 Environmental Accountability

One of MASACCA Inc’s mission is to promote organic. The company

manufactures organic fertilizer and its raw materials are chicken manure, grass clippings

and food wastes. Aside from being organic the company is practicing proper waste

management in terms of chicken manure and food wastes. Being an organic component

of the soil, it then brings various benefits in the environment as well as o the people.

Crops planted in a healthy soil produces fruits or crops which is also healthy and safety

for the people.

Organic Fertilizer provide a broad range of nutrients and are helpful in

maintaining soil health. It flourishes the rhizosphere micro flora by providing nutrients

that stimulate growth of plants. On the agro-ecosystem. It aims to produce food while

establishing an ecological balance to prevent soil fertility or pest problems. Organic

Agriculture takes a proactive approach as opposed to treating problems after they

emerge.

5.4.1 Proper Waste Management

 Raw Materials of the product are chicken manure, food wastes and

grass clippings. The company makes sure that they are properly sealed

from supplier to the production site.

 Raw materials will be stored in an open space for it to dry.

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 Reduces non-renewable energy use.

 Application of fertilizers should be proportionate enough so as not to

burn the soil.

 The place of production is quite a distance from residential to avoid

disturbance such as loud noise from machineries and the smell of

proceed raw materials.

 Smoke emitted by machineries are being filtered.

 Improves Soil Formation and Structure

Crop rotations, Inter cropping, organic fertilizer and minimum tillage are

central to organic practices. These encourage soil and flora, improving soil

formation and structure and creating more stable systems. In turn,

retentive abilities of soil for nutrients and water are enhanced

compensating for the run use of mineral fertilizers.

 Sustainability over the term

Organic Agricultural aims to produce food while establishing an

ecological balance to prevent pest problems. It takes proactive approach as

opposed to treating problems after they emerge.

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 Reduces the risk of ground water pollution

Synthetic fertilizer is where ground water pollution courses. Well

managed organic systems greatly reduce the risk of ground water

pollution. Inc some areas where pollution is a real problem. Conversion to

organic agriculture is highly encouraged as to restorative.

 Reduces Non- Renewable Energy Use

Organic Agriculture contributes to mitigating greenhouse effect and global

warming through its ability to sequester carbon in the soil. Practices used

by organic agriculture increases the return of carbon to the soil, raising

productivity and favouring carbon storage. The more organic carbon is

retained in the soil , the more the mitigation potential of agriculture

against climate change is higher.

 Suitable Habitats for Wildlife

Diverse combinations of plants and animals optimize nutrient and energy

cycling for agricultural production. Maintains the natural areas within and

around organic fields and absence of chemical inputs create suitable

habitats for wild life.

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5.5 SWOT Aanalysis

Strengths

 MASACCA Incorporation devotes considerable time and effort to

promoting awareness regarding good farming techniques and methods

among growing community.

 The company will be a catalyst for environmental sustainability.

 Increasing demand on safety food, improved soil health, high quality and

improved nutrition.

 Preserves traditional varieties/ species and high self- life.

Weaknesses

 Low Awareness of organic inputs.

 It takes time to process as compared with synthetic fertilizers.

 Low investments on research and development to promote organic

products.

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Opportunities

 Sustainable agricultural policy food safety, consumer health promoting

organic agriculture

 A person’s growing concern of healthy food.

 Increased chemical fertilizer’s price.

 Easy availability of raw materials.

Threats

 Costly and complex organic certification process.

 Competition for long term existing companies for organic fertilizer.

 Land conversions into subdivisions and buildings.

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SWOT Action Plan

 Development and implementation of a National Public awareness campaign for

organic production.

 Establish a concept to insure GMO-free production for Organic Agriculture.

 Develop diverse channels for marketing of organic produce.

- encourage existing vegetable, fruits and grocery vendors to promote organic

products

 Introduce organic farming in education institutions.

 Provide financial incentives for promoting organic farming.

 Ensure farm inputs for organic farming.

- link organic municipal solid waste segregated at source, especially from

markets, hostels, densely populated areas and other institutions including

night soils to farms through such means as simple and cost-effective

decentralised composting, biogasification and vermi-composting and thus

ensure organic matter recycling. Organic waste treatment plant should be

made compulsory for the flats.

 Compact Area Group approach in organic farming.

- Encourage the formation of Organic farmers groups, especially women

organic farmer groups, clubs, and cooperatives for the purpose of cultivation,

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input production, seed/seedlings/planting materials production, certification

and marketing.

 Develop diverse channels for marketing of organic produce.

- Encourage existing vegetable, fruits and grocery vendors to promote organic

products

References:

http://www.fao.org/organicag/oa-faq1/en

(FAO/WHO Codex Alimentarius Commission, 1999)

https://en.wikipedia.org/wiki/Organic_farming

https://l.messenger.com/l.php?u=http%3A%2F%2Fwww.fao.org%2F3%2Fw6928

e06.htm&h=AT1hMUaHoslwb0CBcAgQ2YfB-LhTi5hZr_-

EBMNcSqfI4Ww35V-LrmsszMokmug77qa57D1l8Ssg8Toakj8Swm6nrp-

wD_oygRIrvn2klLjfnMhxfpaNiDdulH0Xy7fxuLQd

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