Thesis (BS Agribusiness Economics) University of the Philippines Mindanao, 2024

Sugarcane has played a crucial role in the Philippine economy, making significant contributions to agricultural output and employment. Despite its importance, the industry has encountered challenges such as high production costs, low yields, and market price fluctuations. This study aimed to assess the value chain profitability, and technical efficiency of sugarcane farm level production in Maramag, Bukidnon. Specific objectives included evaluating current levels of technical efficiency, analyzing profitability, mapping key actors and processes in the value chain, assessing socio-demographic factors, and proposing strategies to enhance profitability and productivity. The study conducted an analysis of the sugarcane production value chain, gathering primary data through face-to-face interviews with farmers and stakeholders from a sample size of 110 individuals selected using power 3.1.9.7 software focusing on barangays. Profitability and technical efficiency were analyzed using STATA 14.2, applying Ordinary Least Squares, Quantile Regression, and Data Envelopment Analysis Simar and Wilson two-stage efficiency analysis for both variable and constant returns to scale. The value chain analysis identified inefficiencies in input supply and resource utilization, which could potentially impact overall farm efficiency and profitability. Profitability metrics, including production costs, gross revenue, net profit, and return on sales, were evaluated, highlighting farm size, farming experience, and land tenure as significant factors influencing increased profitability. Factors identified as drivers of technical efficiency included farming experience, household size, credit access, family involvement, and land ownership and rental arrangements in both VRS and CRS analyses. The mean technical efficiency in VRS and CRS were 0.63 and 0.46, respectively. The study recommended focusing on enhancing productivity, efficiency, and cost reduction, advocating for strengthened institutional support and improved resource management to benefit smallholder farmers. These findings also offer valuable insights for policymakers and agricultural stakeholders aiming to enhance the competitiveness of the sugarcane industry in Maramag, Bukidnon.