LYCEUM OF THE PHILIPPINES UNIVERSITY CAVITE

CHAPTER V

SOCIAL AND ECONOMIC ASPECT

5.1 Organic Agriculture

Organic Agriculture is an environmentalfriendly 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.

Food and Drugs Administration said that organic agriculture often leads to higher

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

agriculture can contributed to ecological sustainability especially in poorer countries.

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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 barangays, within the areas of CALABARZON, to promote proper waste

management and implement 3R’s which is beneficial to our environment.

Through organic fertilizer as being soil enhancer, it facilitates the growth of an

organic food giving good health benefits to the people. This enables soil fertility and its

capacity to hold liquid content, thus controlling or preventing soil erosion leading 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.

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

fertility and a vital concern for health of the consumers.

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5.1.2 Objectives:

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

agricultural products that satisfies 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 Philippines currently has four fertilizer manufacturing plants that produce

various fertilizer grades for local use and for export.

The Philippine with its agricultural based economy, is a 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 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 area and

16-20-0. Urea is mainly used as a nitrogen source whilst 16-20-0 is applied

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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 ₱159 million “from

local taxes, permits and licenses, service and business income and internal

revenue allotments in 2013.

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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 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

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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. 30% development

should come from interactions with others. This includes supervision having a

supervisor, a mentor , coaching and participation in communities of practice. 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

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production efficiency or some other criterion as a means to motivate and reward

superior performance.

Incentives 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.

5.3.4 Investors

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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.
 Reduces non-renewable energy use.
 Application of fertilizers should be proportionate enough so as not to

burn the soil.

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 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 entitled 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.

 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

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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

5.5 SWOT Aanalysis

Strengths
 Adoption of modern technology increased the company’s productivity and

distribution channels.
 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

 Lands converted into buildings. Subdivision. And other industrial

purposes.
 Current technology can become obsolete in Future due to frequent

innovations in technology
 Competition for long term existing companies for organic fertilizer.

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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

 Low Awareness of organic inputs
 More Competitors in the market
 Rise of fuel prices.

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