Predictors of Farmers’ Profitability in Sericulture

Pura S. Obille, Ph.D.1

The profitability of sericulture greatly depends on its capacity to continue

to live and grow sustainably. A farmer with a ¼ hectare mulberry plantation

can earn an average net income of P10,221 from fresh cocoons with an ROI of

68.55%. Other income with an average of P2,600 can be derived from the

sales of mulberry firewood, mulberry cuttings, sericulture wastes as organic

fertilizers, and intercropped vegetables. Employment can be generated up to

14 persons per year. The predictors of profitability in sericulture were

determined through Regression analysis which showed that 2 boxes of

silkworm reared in every rearing cycle with a total cocoon yield of 50kgs.

significantly influence the profitability of sericulture. Farming experience of 3

to 4 years gives the opportunity for the farmer to learn the craft hence

increasing his efficiency to manage sericulture activities. Educational

attainment of high school graduate or a college level will likewise increase

the probability of higher income in sericulture. This gives them the

opportunity to understand easily the methods and procedures in mulberry and

silkworm rearing. The use of tractor in land preparation increases the

efficiency of the mulberry plantation when proper cultivation techniques are

employed.

Key words: Sericulture, predictors, mulberry production, silkworm rearing,

profitability

1Researcher of the Don Mariano Marcos Memorial State University

(DMMMSU), Sericulture Research & Development Institute (SRDI)

Sapilang, Bacnotan, 2515, La Union, Philippines

puraobille@yahoo.com

I. RATIONALE

In the Philippine Development Plan 2011-2016 by the Aquino

administration, one of the broad strategies for inclusive growth is to pursue a

rapid and sustained economic growth and development that provides

productive employment opportunities improve the quality of life of the

Filipino, and empower the poor and marginalized sector of the society.

One of the sustainable industries in the Philippines that can provide

support to inclusive growth is Sericulture. It is an industry which has generated

appropriate technologies which are ecological-friendly as it enhances

environmental conservation, and makes use of locally available resources and

materials. Simultaneous to this, the high employment generation and labor

intensity of sericulture indicate the suitability of the industry to rural areas, and

silk production can provide long-term income generating opportunities as

evidenced by the growing market of silk in the Philippines.

Sericulture technologies work with the poor and other disadvantaged

groups and it may improve agricultural growth as it uses idle lands for the

production of mulberry as the sole food for silkworms that produced cocoons.

Hence, the creation of the Sericulture Research and Development Institute

(SRDI) by virtue of RA 7359. SRDI, being the national center for silk industry

in the Philippines, is mandated to educate and train sericulturists, conduct

researches, and extend technologies.

The competitive advantage of sericulture compared to other crops is

brought about by its environmental sustainability; within the framework of

national and regional plans and strategies; its social inclusion and gender;

ideal for smaller farmers and weaker sections of the society; suitable for

multiple crops/inter cropping; and the profitability potentials of silk by-

products produced.

In India, the sericulture industry requires low investment and it helps to

earn higher returns in short gestation period, due to this the farmers are getting

attracted to this sector and it is a best tool to improve the rural economy as

well as to improve their living standards. It is a boon to the rural population

associated with agriculture and helping them to avoid suicidal attempts by

earning very good amounts throughout the year (Jalba, 2015).

Sericulture as one of the fiber crops commodity in the Philippines should

be able to generate data that could figure out the promise of an industry in

order to meet national challenges and contribute to the regional development

plan. It is at this premise that a study on the predictors of sericulture

profitability is undertaken.

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II. OBJECTIVES

1. To determine the profitability of sericulture in terms of the following:

a. Net income

b. Return of investment

c. Employment generation

2. To find out the factors that influence the profitability of sericulture to

wit:

a. Demographic and socio-economic characteristics of the farmers

b. Production characteristics and practices

c. Extension support services

III. CONCEPTUAL FRAMEWORK

A knowledge on the profitability of sericulture as affected by some

factors is deemed important for it seeks to develop effective and efficient

approaches for the sericulture farmers and beneficiaries to become more

productive and competent.

This investigation aimed to establish a workable machinery in

developing sericulture as a profitable enterprise. The utilization of

sericulture technology lies on the economic contribution to the development

of the industry.

The conceptual model on the next page identifies the independent

variables which include the demographic, and socio-economic variables, and

the production characteristics and practices in mulberry and cocoon

production.

The intervening variables which were hypothesized to affect the

profitability of sericulture are the support services extended by the SRDI as

to training, technology transfer and piloting and technical services. The

dependent variable conceptualized was profitability of sericulture measured

in terms of employment generation, net income, and return of investment

(ROI).

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Independent Variables

Dependent Variable

Intervening variables

Figure 1.

Research Paradigm Of The Study

IV. REVIEW OF LITERATURE

Economic development strategies that seek to raise agricultural

output, create employment, and eradicate poverty often failed in the past

because economists and other policy advisers neglect to view the economy as

an interdependent social system where economic and non-economic forces are

continually interacting, in ways that are at times self-reinforcing and other

times contradicting (Todaro, 1989).

Jolly (1987) disclosed that the most important consideration in

sericulture is the effective utilization of family labor, particularly the aged,

handicapped, illiterate and women folk. One hectare of mulberry generates

remunerative employment to 12 to 13 persons throughout the year.

In the study conducted by Siddappaji, et. al. (1992), it was found out

that the average cocoon yield was higher when chawki worms were reared on

chopped leaves followed by chopped shoots later than that of whole leaves

offered from third instar till ripening.

Jeangpuangsri ( 1996), in her study on Thai Silk Cottage industry in

Khonkaen, Thailand, found out that a comparative data for cocoon profit for

the years 1992 – 1993, and 1993 – 1994 showed no significant variation, in

Demographic &

Socio- Economic

Variables

Production

Practices in Sericulture

Support Services

Support Services

Profitability of Sericulture

Net Income

ROI

Employment

generated

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amount from 1992 – 1994. The change was substantial however, when it was

compared on year to year basis through T-test and the result yielded not

significant change. This result can be interpreted that the business has not

realized substantial profit for the years covered by the operation.

The salient features of sericulture and its high profitability nature can

be made known to the farmers through extension programs to popularize

sericulture. Sericulture required more labor compared to any other major crops

cultivated in the area with high labor cost incurred for mulberry cultivation

and silkworm rearing (Kumaresan and Prakash, 2001).

In the study conducted by Narasimhanna ( 1987), it was pointed out

that over 3 million people are employed in various fields of sericulture. It is an

industry that provides ample work for the womenfolk in the rural areas. Due

to the enforcing of new ideas by research institutions in mulberry and

silkworm handling among sericulturists, the industry is now practiced as a

main profession and as a major cash crop industry.

V. PROCEDURE/METHODOLOGY

A. Research Design

The study made use of the descriptive method of research. This was

used to describe the nature of a situation as it exists at the time of the

study and to explore the causes of particular phenomena ( Sevilla,

1992).

B. Population of the Study

The 28 farmer-cooperators of SRDI who had undergone mulberry

and cocoon production from 2011to 2014 were the respondents of this

investigation.

C. Data Gathering instrument

A survey questionnaire was utilized in gathering the needed data.

This was supplemented by documentary analysis, and interview of the

respondents.

D. Data Collection

The researcher conducted in-depth interviews with the farmer-

respondents. In such interviews, appropriate techniques that may serve

appealing to the respondents were applied in order to elicit correct

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information, and create conducive atmosphere for free flow of answers

to questions asked.

E. Data Analysis

The data gathered in this questionnaire were tabulated and analyzed

using the cost and return analysis which includes all operating costs

incurred; net income; and ROI. This was computed to determine the

profitability of the sericulture industry. To determine the factors that

affect the economics of sericulture, the Regression analysis was used.

VI. DISCUSSION OF RESULTS

Production and Profitability Profile of the Respondents

Table 1 shows the production profile of the respondents from 2011 to

2014. The average area utilized for mulberry plantation was 0.26 hectare.

Most of the respondents reared at a rate of 1 – 2 rearings per year although a

smaller percentage reared for 3 – 4 rearings with an average of 2 rearings per

year with 2 boxes reared at the average. Total cocoon yield per year ranged

from 100 to 200 kgs. This comes simultaneously with the number of boxes

reared. The more boxes of silkworm reared will likely produce more cocoons.

The average cocoon yield per box is also reflected in the table of which a mean

of 25.2 kgs. per box was derived.

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Table 1. Production Profile of the Respondents from 2011 to 2014

Indicator f %

Area utilized for mulberry plantation

.0l - .25 22 78.6

.26 -.50 3 10.7

.75 – 1.00 2 7.1

1.26 – 1.50 1 3.5

Total 28 100

Average = .26 ha.

Number of rearings

One to two 18 64.3

Three to four 8 28.6

Five to six 2 7.1

Total 28 100

Average = 2 rearings

Number of boxes reared

1 box or less per rearing 5 17.9

1.1 to 3 19 67.9

3.1 to 5 4 14.3

Total 28 100

Mean = 2

Total cocoon yield (kgs.)

100 and below 14 50.0

101 – 200 6 21.4

201 – 300 6 21.4

301 – 400 1 3.5

Above 500 1 3.5

Total 28 100

Average = 146.7 kgs.

Cocoon yield per box

10.1 – 15.0 1 3.5

15.1 – 20.0 5 17.9

20.1 – 25.0 7 25.0

25.1 – 30.0 9 32.1

30.1 – 35.0 6 21.4

Total 28 100

Average = 25.2 kgs.

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Profitability Profile of the Respondents

The profitability of sericulture as to mulberry and cocoon production was

measured in terms of employment generation, net income, and return of

investment (ROI). Table 3 presents the profitability profile of the respondents

from sericulture. The table reveals the average net income from 2011 to 2014.

It could be gleaned from the table that the average income earned during

these years was P10,221 in a ¼ hectare mulberry plantation with an average

ROI of 68.5%. It is important to note that during mulberry production and

silkworm rearing, family labor was utilized and from the expenses identified

by the farmers, about 40% percent of the expenses went to labor inputs. Other

income in sericulture can also be derived from the sales of firewood coming

from pruned mulberry plants, mulberry cuttings, silkworm wastes during

rearing, and intercropped vegetables with an average of additional income of

P2,600 per year for a ¼ hectare mulberry plantation.

One of the indicators of the viability of sericulture is employment

generation. Based from the data gathered an average of 14 mandays can be

generated in a ¼ hectare mulberry area. The finding agrees with the finding of

Jolly (1987) when he found out that a one hectare mulberry generates

remunerative employment of 12 to 13 persons throughout the year. Among the

expenses incurred by the farmers, labor was the major input consumed and this

accounted to 40 to 45% of the operating costs.

The maximum utilization of family labor in sericulture is an indication of

economic viability. This corroborates with the finding of Kumaresan and

Prakash (2001) when they asserted that sericulture required more labor

compared to other major crops cultivated in the area with high labor cost

incurred for mulberry and silkworm rearing.

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Table 2. Profitability Profile of the Respondents from 2011 to 2014

Indicator f %

Net income from silkworm rearing

below 1000

1001 to 10000

10001 to 20000

20001 to 30000

30001 to 40000

Total

Average = P10,221.00

Return of investment

20% and below

21 - 40%

41- 60%

61 - 80%

81 -100%

above 100%

Total

Average = 68.50%

Employment generation

1 to 5

6 to 10

11 to 15

16 to 20

21 to 25

26 to 30

Total

Average = 14

Other income in sericulture

Firewood 112,698

Cuttings 58,000

Wastes 28,707

Intercrop 133,664

Average = 2,600 per year

3

13

7

2

3

28

5

3

5

8

3

4

28

3

4

11

6

2

2

28

10.7

46.4

25.0

7.10

10.7

100

17.9

10.7

17.9

28.6

10.7

14.2

100

10.7

14.2

39.3

21.4

7.10

7.10

100

Employment generation = Average of 14

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Predictors of Sericulture Profitability

The profitability of sericulture greatly depends on its capability to

continue to live and grow successfully. Hence, it is deemed important to

identify the predictors of its success. The factors which were included in the

study are shown in Table 3.

Table 3. Factors that might be considered as Predictors of Profitability

Personal,

Demographic and

Socio-economic

Factors

Extension Support

Services

Productivity and

Production Practices

in Mulberry

Production and

Silkworm Rearing

Age

Sex

Civil Status

Educational

Attainment

Household Size

Years in Sericulture

Farming

Number of trainings

attended

Frequency of

Extension Workers’

Visit

Number of technical

assistance extended

1. Mulberry area

2. Number of rearings

3.Number of boxes

reared

4. Total yield

5. Average yield per

¼ hectare mulberry

area

6. Farm identification

and site selection

7. Soil characteristics

and topography

8. Kind of planting

materials

9. Method of land

preparation

10. Method of

irrigation and

fertilization

11. Type and size of

rearing house

12. Method of leaf

harvesting and

preservation

13. Variety of

silkworm reared

14. Method of

silkworm feeding

15. Method of

silkworm mounting

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Regression analysis was utilized to determine the factors that significantly

contributed to the profitability of the farmer-respondents.

Statistical analysis using the SPSS showed that of all the factors included

in table 3, only the number of boxes reared, total cocoon yield, years in

sericulture farming, educational attainment of the farmers, and method of land

preparation were found to significantly affect the profitability of sericulture.

These were manifested by the regression coefficients of .994, .987, .996, .996,

and .998 respectively which were all significant at .05 level.

From this finding, it is recommended that every possible measure to

increase cocoon production should be applied in order to uplift the income of

the farmers. These may include proper rearing management, and the full

utilization of the mulberry plantation so that additional number of boxes of

silkworm will be reared for more cocoon yield. Method of land preparation

was also an indicator of profitability.

Table 4. Summary Table for Regression Analysis on the Demographic and

Socio-economic Factors and Production Practices Affecting the

Profitability of Sericulture

Variables Regression

coefficients

Significance

Number of boxes reared

Total yield

Years in sericulture farming

Educational attainment

Method of land preparation

.994

.987

.996

.996

.998

.001

.000

.009

.040

.003

Further analysis of the Regression coefficients pointed out predictors of

sericulture profitability as shown in table 5. For a ¼ hectare mulberry

plantation, 2 boxes of silkworm reared in every rearing cycle of 3 to 5 for a

period of one year with a total cocoon yield of 50kgs. per rearing will

significantly influence the profitability of sericulture. Farming experience of 3

to 4 Farming experience of 3 to 4 years gives the opportunity for the farmer to

learn the craft hence increasing his efficiency to manage sericulture activities.

Educational attainment of the farmer could either be a high school graduate or

a college level. This gives them the opportunity to understand and comprehend

easily the methods and procedures for more efficient and effective mulberry

and silkworm rearing techniques. The use of tractor is hereby recommended as

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this will increase the efficiency of the mulberry plantation when proper

cultivation techniques are employed.

Table 5. Predictors of Farmers’ Profitability in Sericulture

Variables Predictors

Number of boxes reared

Two boxes per rearing for ¼ hectare

Total yield

50 kgs. per rearing for ¼ hectare

Years in sericulture farming

3 to 4 years

Educational attainment Preferably high school graduate to

college level

Method of land preparation Tractor

VII. CONCLUSIONS AND RECOMMENDATIONS

Conclusions

Based from the findings, the following conclusions were derived:

1. The sericulture technologies on mulberry , and cocoon production were

profitable as evidenced by a positive ROI. The net income derived from

sericulture, although minimal is an indication of economic viability.

Employment was also generated up to 14 mandays throughout the year.

2. The total cocoon yield, number of boxes reared and higher number of

years in sericulture farming increased the probability of higher income and

ROI in sericulture. Higher level of education significantly contributed to

the economic viability of sericulture. Higher economic yield can be

obtained when tractor is used for land preparation.

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Recommendations

From the conclusions drawn, the following recommendations are

considered:

1. The findings of this study should be used by SRDI management,

researchers and extension workers in their attempt to improve their

management skills and capabilities towards effective efforts for the

popularization of the sericulture industry.

2. To efficiently utilize the mulberry areas and fully maximize all other

resources of the farmer, an effective scheme has to be developed which

include among others a multiple land use management system and

organic farming.

3. A regular monitoring and evaluation on the programs and services

availed by the farmers should be done to enhance existing opportunities

of farmers and complement them with innovations to overcome

constraints to production.

4. The factors that were found out to have influenced profitability of

sericulture should serve as entry points for future sericulture farmers and

for the improvement of present beneficiaries.

5. There is also a need for SRDI to establish tie-up with cooperating

agencies, LGUs, private organizations to expand capitalization and

ensure synchronization of related support services.

6. The findings of this study may serve as basis for policy makers in

planning and redirecting the nature and practices in research and

extension services of research and development institutes in the

Philippines.

VII. BIBLIOGRAPHY

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Chonnabot, Khonkaen, Thailand: Its Operation and Management”.

14

M. A. Thesis in Master in Management. Gregorio Araneta

University Foundation, Caloocan City.

Jolly, Manject S. 1987. Appropriate Sericulture Techniques.

International Center for Training and Research in Tropical

Sericulture. Central Sericultural Research and Training Institute,

Mysore, India.

Kumaresan, P. and Nijaya Prakash, N. B. 2001. Economics of

Sericulture Vis-à-vis Competing Crops in Erode District of Tamil

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Narasimhama, M. N. 1987. Sericulture Industry and its potential in

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SEVILLA, C. 1992. Research Methods. Revised Edition. Manila: Rex

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Siddappaji, C. et. al. 1992. Advantages of Rearing Silkworms

throughout on Mulberry Shoots. University of Agricultural

Sciences, Bangalore, Karnakata, India.

THE PHILIPPINE DEVELOPMENT PLAN 2011-2016. Chapter 4:

Competitive & Sustainable Agriculture & Fisheries Sector. June

21-2011. www.ibon.org. Accessed on December 8, 2012.

Todaro, Michael. 1989. Economic Development of the Third World. 4th

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