Thesis (BS Agribusiness Economics) -- University of the Philippines Mindanao, May 2018

Soybean is one of the Philippines? high-valued crops and was recently given efforts to propagate by the country?s agricultural development programs. Soybeans can be processed into many products for consumption and industrial uses. However, the country is heavily dependent on imports (2.75 million tons on 2017) and only 5,280 hectares were dedicated for soybean production since 2014. This study aims to investigate the productivity, profitability and value chain situation of the soybean industry. Specifically, in Davao region, three methods were used to investigate the condition of soybean farmers: production function estimation, cost and return, and return value chain analysis limited to farmer?s perspective. In Davao region, only in Cateel, Davao Oriental, was found to be still growing soybeans. Farmers in Cateel produce Manchuria and mixed varieties (Manchuria, Tiwala 8 and Tiwala 10). Production function estimation showed that amount of input seeds (kg), pesticide (liter), college education and training were significant factors that contribute to productivity. Cost and return analysis indicated that for every peso outlay, soybean farmers in Cateel can gain P0.66. Comparison in Manchuria and Mixed cost and returns showed that Mixed growers have higher gross returns and net profit. The value chain analysis revealed that the main problems in soybean farming are the lack of infrastructure and technological support, unstable and expensive seed supply, unstable market conditions, and lack rigor in their local farm association. Only drying was found to be the value-adding process contributed by farmers. The study recommends various interventions to boost productivity such as various trainings for seed preservation and post-harvest operations. Infrastructure support that will eventually reduce their cost and strengthen the supply of soybeans in the value chain are recommended as well.