Thesis, Undergraduate (B.S. Agribusiness Economics)-U.P. Mindanao

Coconut farming has been a means of livelihood for most Filipino farmers. But, the decreasing price of coconuts in the market has urged farmers to practice intercropping high-value crops like banana, coffee and cacao. A recent boost in the global demand, and its promotion by local government units, has made cacao a popular choice for intercropping into coconut farms. The practice is being promoted in Davao City, particularly in Calinan district where cacao is easy to grow, in hopes that the city will become the top cacao producer in the country. This study determines the efficiency and the profitability of practicing intercropping cacao in coconut farms, and compares it to farms that plant solely cacao or coconut. Data Envelopment Analysis (DEA) is used to determine the cost efficiency of the different farms and identify which farms are most efficient. Results show that most of the farms suffer from inefficiencies, and that coconut farms are the most efficient farms. The most profitable farm type is intercropped farming, with as much profit per hectare as coconut and cacao farming combined. The study shows that coconut and cacao farmers have much room for improvement, and that there is still a possibility for higher yield while decreasing costs. It also serves as concrete evidence for coconut farmers to shift to intercropping to gain more income.