Thesis (BS Agribusiness Economics) -- University of the Philippines Mindanao, May 2019

Swine production has been at the forefront in the growth of the livestock sector of the country. While there are several large commercial farms supplying pork products across different market channels, the swine industry of the country predominantly operates at a backyard scale, with most households engaging in swine rearing for the main purpose of generating additional income. Although dominant, backyard farms face threats of displacement especially on the height of integration and scaling up of large commercial farms. Efficiency, especially on utilizing input resources, is therefore vital for the survival of these farms. This study used Stochastic Frontier Analysis approach to assess the technical efficiency of 120 backyard swine farmers in Brgy. Apopong, Mabuhay, and Conel and costs and returns analysis was employed to assess the farms? profitability. Results showed that farmers producing swine both for the purpose of selling weaners and swine for slaughter (Type 4) yielded positive returns with PHP 56, 675.97 gross margin and PHP 53, 697.4 net profit income. Results showed a 0.56 ROI, gross ration of 0.64 and BCR of 1.56 which indicates profitability as BRC> 1. For technical efficiency, results yielded a mean tech eff of 0.82 which indicates that farmers could still improve their efficiency by 18% given that the efficiently utilize their available resources using their current technology. Herd size and costs of medicines, vaccines and vitamins have positive effects on production output. Age, family size and educational attainment significantly improves technical efficiency. Therefore, an increase in these variables which can economically and significantly enhance efficiency, increase research and technical assistance from LGUs and NGOs promotion of cooperative marketing.