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INTRODUCTION

Background of the Study

The chicken egg industry plays a crucial role globally as a primary

source of protein, integral to the broader food chain. Eggs are produced,

graded, packed, shipped, and consumed worldwide, underscoring their

economic and nutritional significance (Clauer, 2012; Australian Eggs, 2021).

Economically, the industry supports numerous stakeholders including

suppliers, traders, and producers, while also generating substantial

employment opportunities. Nutritionally, eggs are rich in essential minerals,

vitamins, and proteins, making them a versatile and affordable dietary staple

across diverse cultures (Australian Eggs, 2021).

In the Philippines, chicken egg production accounted for 3% of the total

agricultural value in 2002, primarily serving the domestic market. Given the

country’s economic landscape, where a significant portion of the population

has limited purchasing power, the domestic market remains crucial for

sustaining supply and demand dynamics (Cua, 2010; Catmon, 2010).

Recent years have seen challenges in the egg industry, notably price

hikes driven by various factors such as global feed cost increases. Essential

poultry feed ingredients like soybeans and maize have become more

expensive due to geopolitical tensions and weather-related disruptions,

influencing production costs and consequently raising consumer prices (Taft,

2015; Wongnaa, 2023).

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Moreover, logistical disruptions exacerbated by the global pandemic

have hindered the timely delivery of critical inputs like feed and vaccines,

further straining the supply chain and escalating production costs (Ebbers,

2022). Climate change adds another layer of complexity, affecting egg

production efficiency through extreme weather events and temperature

fluctuations, potentially reducing overall supply and compounding price

volatility (Fao, 2015).

Amidst these challenges, there are opportunities for the poultry industry

to innovate and adapt. Strategies focusing on sustainable farming practices,

technological advancements, and targeted governmental interventions can

mitigate the impact on consumers and enhance industry resilience (Fao,

2015).

This study aims to address the gap in localized research by conducting

a profitability analysis of chicken egg sales in Kalilangan, Bukidnon. By

exploring price sensitivity, demand fluctuations, and local economic

conditions, the research seeks to optimize business strategies tailored to the

unique market dynamics of Kalilangan. Insights gained will enable businesses

to adapt effectively, ensuring sustainable growth and community relevance

amidst regional economic peculiarities (Aungon, 2023).

Significance of the Study

The researcher believes that this study on profitability analysis on

chicken egg retailing in Kalilangan, Bukidnon will provide valuable data

beneficial to various stakeholders, significantly impacting the local community:

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Chicken Egg Retailers. This research is crucial for local retailers as it

highlights best practices in retailing, optimal products to stock, and effective

handling and pricing strategies for eggs. By analyzing cost prices and sales

data, retailers in Kalilangan can better understand market conditions, leading

to more effective pricing strategies. This knowledge helps them manage risks,

adapt marketing approaches according to local market trends, and adopt

sustainable business strategies. Ultimately, it enables local retailers to thrive

in a competitive market, ensuring their long-term success and stability.

Researchers and Academics. For researchers and academics in

Kalilangan, the study is highly relevant due to its contributions to knowledge

and future implications. It provides valuable insights into agriculture and retail

management through actual findings and recommendations. The research

assesses various aspects of retail practices, including product selection,

handling, pricing, operating expenses, and problem areas. These findings can

be incorporated into local educational materials, enriching the learning

experience for students and teachers in the community. Furthermore, the

analysis fosters intellectual discussion and encourages further research,

bridging the gap between theoretical knowledge and practical experience in

the local poultry industry.

Government and Regulatory Bodies. Government and regulatory

authorities in Kalilangan will find this study highly beneficial for understanding

the economic nature of the local poultry business. The information gathered
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aids in the development of fact-based policies, helps control unjustifiable price

fixing, and maintains market competition. It enables the government to

implement measures that promote the sustainability of local egg retail

businesses by ensuring cost efficiency and effective sales practices.

Additionally, the study supports supervision and enforcement of industry

standards, protecting consumers and fostering a favorable environment for

the sector's improvement and profitability.

Policy Makers and Regulators. This research serves as a valuable

reference for policymakers and regulatory authorities in Kalilangan involved in

production and distribution. It provides detailed information on local economic

trends, cost structures, pricing strategies, and market dynamics. This factual

framework assists in the formulation of policies that maintain competitive

fairness, protect consumer interests, and ensure industry viability. The study

also equips policymakers with relevant information to develop laws and

regulations that enhance the local chicken egg retailing business.

Financial Institutions and Investors. The study offers important

recommendations for financial institutions and investors in Kalilangan

regarding local industry operations, trends, and demands. It provides accurate

information about the financial health of the local poultry industry, associated

risks, and growth potential. This information aids banks in making informed

loan extension decisions and evaluating the feasibility of extending credit to

local egg sellers. Investors can use the analysis to assess the attractiveness

of funding local chicken-egg retailing businesses, identifying key cost areas

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and potential revenue sources. Ultimately, the study helps financial institutions

and investors direct their funding effectively for optimal returns, boosting the

local economy.

Consumers. Consumers in Kalilangan benefit from increased

information about food production and company performance, aiding their

food choices. The research offers insights into overall costs and pricing,

helping consumers understand variables affecting egg prices. This knowledge

enables consumers to make wiser purchase decisions, potentially reducing

their spending. Improved consumer trust in the reliability and quality of local

egg retail businesses results in a more efficient and competitive market,

ensuring consumers receive value for their money and access to high-quality

eggs at reasonable prices.

Statement of the Problem

The chicken egg retailing business is facing challenges in climate

change, unpredictable weather patterns, extreme temperatures, and natural

disasters that can impact egg production efficiency. Inflationary pressures

within the Philippine economy, including increases in fuel prices and other

essential commodities, have contributed to the upward trend in egg prices that

leads to the lack of comprehensive understanding regarding the key factors

influencing the financial performance of chicken egg retailers.

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This knowledge gap hinders their ability to make informed decisions in

areas such as cost management and pricing strategies. By addressing these

issues, the research aims to provide actionable insights that can assist

chicken egg retailers in optimizing their operations and achieving sustained

profitability in a competitive business landscape (Cui, 2021).

The specific research problems of this study are the following:

1. What is the socio-demographic profile of chicken egg retailers?

2. What are the practices of chicken egg retailing?

3. How much is the profitability of the chicken egg retailers?

4. What are the problems faced by the chicken egg retailers?

Objectives of the Study

The general objective of this study is to describe the profitability of the

chicken egg retailing business in Kalilangan Bukidnon.

The specific objectives of this study are the following:

1. describe the socio-demographic profile of chicken egg retailers;

2. describe the retailing practices of chicken egg retailers.

3. determine the profitability of the chicken egg retailers; and

4. identify the problems faced by the chicken egg retailers.

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Scope and Limitation of the Study

The researcher will focus only on the profitability analysis of the

chicken egg retailing business in Kalilangan, Bukidnon.

The respondents of this study will be the chicken egg retailers in

Kalilangan, Bukidnon. Since this research focuses on chicken egg retailers,

this study is limited only to the chicken egg retailers and sari-sari stores that

are also a retailer of chicken eggs registered in the Business Licensing Office

of Kalilangan, Bukidnon.

Reliability of data, the accuracy and reliability of data collected through

surveys and interviews depend on the respondents’ honesty and memory.

There is a possibility of response bias or recall bias, which may impact the

validity of research findings.

The limitation of the study includes the weakness beyond the control of

the researcher. Due to budgetary and time constraints. The sample size of

retailers may be limited, which may impact the generalizability of the findings.

Definition of Terms

This section provides definitions of key terms used in this study on the

profitability analysis of the chicken egg retailing business in Kalilangan,

Bukidnon. Understanding these terms is essential for interpreting the research

findings and insights. By clarifying these concepts, we aim to ensure a

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comprehensive understanding of the various factors influencing the egg

retailing market and the economic dynamics at play. This foundational

knowledge will facilitate a deeper appreciation of the study's significance and

its implications for stakeholders, including retailers, policymakers, financial

institutions, and consumers. The following terms are both defined

operationally and theoretically.

Age refers to the length of time that a person has lived or a thing has

existed. It can also refer to a particular stage in someone’s life or the latter

part of life or existence.

Household size refers to the number of persons living in a private

household.

Years in chicken egg retailing refers to the number of years a person

has been involved in chicken egg retailing.

Egg retailing practices refer to the various strategies and methods

employed by retailers to effectively market and sell eggs to consumers. This

includes aspects such as sourcing eggs from suppliers, ensuring quality and

freshness, and determining pricing, based on factors like size and grade,

packaging eggs, and protection (Australian Eggs, 2021).

The operating expenses of egg retailing refer to the costs incurred by

retailers in the process of selling eggs to consumers. These expenses

encompass various aspects of business operations directly related to egg

retailing.

The problems encountered by chicken egg retailers can vary but often

include challenges related to pricing, supply chain, shelf life, competition, and

customer demands.
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Profitability. It deals with a comprehensive assessment of the earnings,

expenses, and costs of a business entity to establish the magnitude of

profitability. Profitability analysis is used to determine which kind of a business

a business is in and to check on the opportunities for the business to be

profitable, this sorts out activities that can be done to increase the revenue

and reduce the cost of the business (Hayes, 2023).

Chicken egg retailing business. Involves the buying and selling of

chicken eggs to consumers through various retail channels. This type of

business operates within the broader poultry industry, specifically focusing on

the distribution of eggs for direct consumption. The process typically involves

sourcing eggs from poultry farms or egg producers, managing inventory, and

selling the eggs to customers through retail outlets such as grocery stores,

markets, and specialty stores, or directly to consumers through farmers'

markets or online platforms. Key activities include quality control, packaging,

pricing, and distribution. Success in a chicken egg retailing business often

requires a keen understanding of market demand, supply chain logistics, and

adherence to food safety regulations to ensure the delivery of fresh and safe

eggs to consumers (Forssido, 2016).

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REVIEW OF LITERATURE

Egg Production Worldwide

The production volume of eggs worldwide exceeded 86.3 million metric

tons in 2021, down from about 87.07 million metric tons in 2020. Since 1990,

the global egg production volume has increased by over 100 percent

(Shahbandeh, 2023). The global egg industry is a vital component of the

global food system. It involves the production, processing, and distribution of

eggs, primarily from chickens but also from ducks and quails. Eggs are a

ubiquitous source of nutrition, containing complete proteins, essential

vitamins, and minerals. They are used in a wide range of culinary

applications, making them a dietary staple worldwide. However, the industry

faces challenges related to animal welfare, food safety, and sustainability.

Consumer concerns have led to a shift towards cage-free and organic egg

production methods. Ensuring the safety of eggs is a priority, with measures

to prevent pathogens like Salmonella. International trade of eggs and egg

products is common, with some countries as major exporters and others as

importers. As sustainability becomes more critical, the industry is adapting by

addressing environmental impacts and resource use. Additionally, the rise of

plant-based egg alternatives is influencing consumer choices and the

industry's evolution.

Climate change and global warming are expected to significantly affect

the egg market during the forecast period. Global warming refers to the

increase in the earth's average surface temperature due to an increase in

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carbon dioxide emissions and deforestation. The hotter climates reduce the

size and quality of eggs produced on poultry farms (Jha et al., 2017). Extreme

climatic conditions, such as hot climates, lower the egg production of hens

and make the hens susceptible to various diseases. Thus, climate change

and global warming are likely to be a restraint on the growth of the egg market

in the forecast period (Sabra, 2014).

Philippine Egg Industry

Statista (2023) stated that the volume of chicken eggs produced in the

Philippines grew by 9.2 percent compared to the previous year. The overall

growth of chicken egg production in the country was highest in both 2019 and

2021. The industry underwent a significant expansion as some of the swine

farmers affected by African Swine Fever (ASF) moved to egg production, said

Chairman of the Philippine Egg Board Association (PEBA), Gregorio San

Diego, reports the Business Mirror, adding that the increase in production was

only felt towards the end of 2020. “The increase in supply was already felt

toward the end of the year as was reflected in the reduction of egg prices,”

added San Diego. The entry of new players in the local layer industry allowed

the country’s egg production to rise to an unprecedented level last year,

according to data from the Philippine Statistics Authority (PSA).

In terms of inventory by region, CALABARZON remained the top egg

producer during the quarter with 53.97 thousand metric tons or 30.9% of the

country’s total egg output. The other top producing regions were Central

Luzon which shared 20.0%; Central Visayas, 11.3%; Northern Mindanao,

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9.9%; and Western Visayas, 5.5%. At the provincial level, Batangas emerged

as the top egg producer in 2021 with 174.25 thousand metric tons.
In the study conducted by
Acosta (2023), it was stated that the production was

followed by Pampanga with 73.75 thousand metric tons and Cebu with 60.50

thousand metric tons. Among other top-producing provinces were Bukidnon,

Bulacan, South Cotabato, Davao del Sur, Rizal, Tarlac, and Negros

Occidental. The combined production of these provinces accounted for 71.6%

of the country’s total egg production.

Chicken Egg Retailing Business

According to Stewart (2015) urban areas egg sales are made through

retailers. Four types of retailers usually carry eggs in their shops,1 st is poultry

shops where only eggs and poultry are sold 2 nd food shops specializing in

eggs, poultry, cheese, butter, meat, and fish 3 rd general food shops and lastly,

supermarkets selling all kinds of foods and household goods and meat

markets where all types of meat are sold and eggs are also offered for sale. In

some instances, retailers buy eggs directly from the producer and may have

their own process-packing facilities. A chicken egg retailing business involves

procuring, grading, and packaging chicken eggs for sale to consumers.

Berkhout (2021) added that egg production can take place at a farm

stand, local markets, grocery stores, or through online platforms. Key aspects

include maintaining high-quality egg production, complying with regulations,

and establishing branding and marketing strategies. Pricing and sales

channels vary, and customer service is pivotal in building a loyal customer

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base. This business can range from small-scale local ventures to larger

commercial operations, often influenced by factors like egg quality, production

methods, and adherence to consumer preferences for factors such as organic

or free-range eggs.

A study that has been conducted by Clauer (2012) that a chicken egg

retailing business in Bukidnon operates within the vibrant agricultural

landscape of this province in the Philippines. Centered on sourcing eggs from

local poultry farms, the business caters to the community's demand for fresh

and high-quality eggs. Distribution channels include local markets, grocery

stores, and potentially online platforms. Success in this enterprise relies on

close collaboration with local farmers, efficient supply chain logistics, and an

understanding of the specific preferences of the Bukidnon market. Adherence

to food safety standards and building strong relationships with both suppliers

and customers are crucial. Given Bukidnon's agrarian character, a chicken

egg retailing business not only contributes to the local economy but also plays

a vital role in meeting the nutritional needs of the community, fostering

sustainability and economic growth.

Chicken Egg Selection

As highlighted in the study conducted by Abdel-Aal (2017), chicken

egg selection is vital for various reasons. Firstly, it ensures the safety and

quality of the eggs consumed, as cracked or contaminated eggs pose health

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risks. Choosing fresh eggs impacts flavor and culinary outcomes, especially in

baking. Different recipes may call for specific egg sizes, influencing the

selection. Checking expiration dates helps prevent the use of stale eggs. The

float test assists in gauging freshness, crucial for optimal cooking results.

Selection is also an essential aspect of food waste reduction, preventing the

purchase of more eggs than needed. In summary, meticulous chicken egg

selection is a fundamental practice for health, culinary success, and

minimizing waste in the kitchen.

Proper Handling

In the research conducted by Clauer (2023) ensuring the proper

handling of chicken eggs from farm to customer is essential for maintaining

quality and safety. On the farm, prioritize hygiene, provide clean nesting

areas, and promptly collect eggs. During transportation, use appropriate

containers to prevent breakage, and maintain a controlled environment to

preserve freshness. At distribution centers, implement rigorous quality control

measures, including regular checks for cracks and abnormalities. Prioritize a

seamless supply chain, ensuring efficient and timely delivery to retailers.

Retailers must store eggs in refrigerated conditions and regularly rotate stock

to maintain freshness. Staff should handle eggs with clean hands and adhere

to food safety standards.

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Advantages of Chicken Egg Retailing

Chicken Egg Retailing allows businesses to directly interact with

customers, understand their needs and preferences, and provide

personalized services. This can lead to better customer satisfaction and

loyalty. Retail stores can serve as a powerful tool for brand building. They

provide a physical presence for a brand and create an opportunity for

customers to experience and engage with the brand in person. Retailers can

set their prices, allowing them to respond to market demand and adjust

pricing strategies as needed (lumenlearning.com, 2016).

Business Practices of Chicken Egg Retailing Business

A chicken egg retailing business entails several crucial practices for

success. Quality control is paramount, with cleanliness, grading, and proper

handling to ensure fresh and safe eggs. Regulatory compliance with food

safety and labeling regulations is essential. Effective pricing strategies should

balance production costs, quality, and market demand. Branding and

marketing efforts should highlight unique qualities like freshness and ethical

production. Exceptional customer service is key, involving responsive

communication and issue resolution. Diversifying product offerings to include

specialty eggs caters to various consumer preferences. Sustainability

practices appeal to eco-conscious customers. Efficient supply chain

management ensures consistent product availability. Online presence

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expands reach. Gathering customer feedback drives continuous

improvement, while animal welfare and health are crucial for ethical

operations (Budor, 2021).

Profitability Analysis

Profitability analysis is an important aspect of financial management

that assesses the effectiveness and efficiency of a company's operations in

generating profits. Two commonly used measures in profitability analysis are

Return on Investment (ROI) and Net Profit Margin (NPM) (Chugh, 2023).

Return on Investment is a financial metric that evaluates the profitability

of an investment by comparing the net profit generated to the amount

invested. It is expressed as a percentage and calculated using the following

formula ROI = (Net Profit / Investment Cost) x 100. This measure provides

insights into how effectively a company utilizes its resources to generate

profits. A higher ROI indicates a more efficient use of investment funds, while

a lower ROI suggests lower profitability or inefficient allocation of resources

(Investopedia, 2021).

Net Profit Margin is a profitability ratio that assesses a company's

ability to generate profit from its revenue after accounting for all expenses,

including cost of goods sold, operating expenses, and taxes. It is calculated

using the following formula: NPM = (Net Profit / Revenue) x 100. NPM

provides insights into the profitability of a company's core operations, as it

measures the proportion of revenue that translates into net profit. A higher

NPM indicates better profitability, as more revenue is retained as profit after

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deducting all expenses (Finance, 2021). To evaluate profitability, it's important

to compare the profit margin to industry standards and benchmarks to assess

whether the profitability of the product or service is in line with industry

standards (Fernando, 2023).

Theoretical Framework

Frictional Theory of Profits

The theoretical framework for this study draws upon Frictional Theory

to explore and analyze the factors influencing the profitability of chicken egg

retailing in Kalilangan, Bukidnon. Frictional Theory, which focuses on the

challenges and inefficiencies encountered during transactions and operations,

provides a lens through which the various obstacles faced by retailers can be

understood and addressed.

Frictional Theory examines the inefficiencies and barriers that impede

smooth transactions and operations within a market. These frictions can be

due to information asymmetry, transaction costs, supply chain disruptions,

regulatory constraints, and other operational challenges. In the context of

chicken egg retailing, frictions can manifest as issues in supply chain logistics,

fluctuating egg prices, varying quality standards, and regulatory compliance

costs. These frictions can significantly impact the profitability of retailers.

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Profitability analysis involves assessing the financial performance of a

business to understand its ability to generate profit. Key metrics include cost

of goods sold, pricing strategies, operating expenses, and revenue

generation. For chicken egg retailers in Kalilangan, understanding these

profitability metrics in the presence of market frictions is crucial for developing

strategies to enhance financial performance.

The study can describe how supply chain disruptions, such as delays

in egg delivery, impact retailers' ability to maintain consistent stock levels and

meet consumer demand. Strategies to streamline logistics, improve supplier

relationships, and invest in better inventory management can be proposed to

reduce these frictions. The research can describe how fluctuations in egg

prices, influenced by external market conditions, affect retailers' pricing

strategies and profitability. The study can recommend pricing models that

account for market volatility and suggest methods for retailers to stabilize their

pricing to maintain competitiveness.

Investigating the costs and challenges associated with meeting

regulatory requirements, such as health and safety standards, can reveal

significant frictions for retailers. Proposing simplified compliance processes or

advocating for regulatory support can help reduce the burden on retailers and

improve their profitability.

The study can assess how a lack of access to market information and

consumer preferences creates friction for retailers in making informed

business decisions. Enhancing information sharing and market intelligence

can empower retailers to make better strategic decisions, optimize product

offerings, and improve customer satisfaction.

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By integrating Frictional Theory into the profitability analysis of chicken

egg retailing in Kalilangan, Bukidnon, the study can identify and address key

operational challenges that hinder retailers' financial performance. This

theoretical framework provides a structured approach to understanding and

mitigating market frictions, ultimately aiming to enhance the profitability and

sustainability of local chicken egg retailers.

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Conceptual Framework

Based on the theoretical framework presented, the researcher came up

with this conceptual framework that consists of input, process, and output.

The age is expressed in the years of the entrepreneurs. Literature has

indicated that an individual's age has a significant impact on retailing

business. It has a detrimental impact on creativity and taking risks, but a

favorable impact on locus of control and the drive for achievement. According

to Scott (2010), there is a commensurate shift in people's views, values,

attitudes, perceptions, feelings, and needs as they mature from childhood into

adulthood.

Household size will be determined by counting the number of family

members living under one roof with the respondent. It is anticipated to have a

positive impact on certain dependent variables such as having more people at

home with whom to share ideas, which in turn fosters innovative and risk-

taking behavior while also increasing levels of need for achievement and

internal locus of control (Blake, 2015).

Education shall be determined by the amount of time spent in school. It

was anticipated to be positively correlated with entrepreneurial traits (Bodu,

2020) Retailing practices refer to the various strategies and methods

employed by retailers to effectively market and sell eggs to consumers. This

includes aspects such as sourcing eggs from suppliers, ensuring quality and

freshness, and determining pricing, based on factors like size and grade,

packaging eggs, and protection (Australian Eggs, 2021).

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The operating expenses of egg retailing refer to the costs incurred by

retailers in the process of selling eggs to consumers. These expenses

encompass various aspects of business operations directly related to egg

retailing (Bagundol, 2013).

Key problems in chicken egg retailing include unpredictable fluctuating

egg prices, supply chain disruptions, storage and shelf life, competition and

market saturation, and regulatory compliance. These challenges collectively

demand a resilient business model, proactive risk management, and effective

market positioning to ensure sustainable growth in the competitive chicken-

egg retailing industry (Braak, 2022).

INPUT PROCESS OUTPUT

1. Socio-demographic 1. Data collection

profile of chicken egg - Socio-
retailers demographic
- Name profile of
- Age chicken egg
- Household size retailers
- Education
- Retailing
Description of Socio-
practices of
2. Retailing practices of demographic profile,
chicken egg
chicken egg retailers profitability, and
retailers
problems
encountered by egg
- Profitability
retail business.
3. Sales on chicken egg analysis on
retailing business chicken egg
retailing
4. Operating Expense
- Direct cost - Operating
expense
- Indirect cost
-Problems in
chicken egg
5. Problems in chicken retailing
egg retailing 2. Descriptive data
analysis
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Figure 1. Conceptual framework of the study

METHODOLOGY

Research Design

The study will employ a descriptive research design utilizing a survey

of the population of chicken egg retailers in Kalilangan, Bukidnon. The

research design was appropriate to answer the objectives stated in the study:

to assess the sales, practices, profitability, and challenges encountered by

chicken egg retailers.

Locale of the Study

The locale of the study will be selected based on the following criteria

(1) accessibility to the researcher for easy collection of data (2) the peace and

order in the area, and (3) the researcher knows the area based on the criteria.

This study will be conducted in Kalilangan, Bukidnon. Kalilangan is one

of the 20 municipalities in Bukidnon. Kalilangan is known as the home of 18

ethnic tribes. However, the Cebuano dialect is still the main language spoken

by most of the living in Kalilangan. the choice of the locale of the study was
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the accessibility of the place for the researcher to interview profitability

analysis of chicken egg retailing business in the said place.

Bukidnon

Figure 2. Map of Kalilangan, Bukidnon

Participants of the Study

The criteria set for the selection of respondents are the following (1)

must be a chicken egg retailer owner or a manager who will be considered as

the best-qualified participant to answer the questionnaire and (2) the business
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must be registered in the Business Licensing Office and operating in

Kalilangan, Bukidnon.

The data of the list of chicken egg retailers in Kalilangan, Bukidnon will

be requested from the Licensing Office of the Municipality of Kalilangan. The

data shows that as of May 2023, there are 96 chicken-egg retailers including

sari-sari stores and meat shops in Kalilangan Bukidnon.

Sampling Design

The population of interest in this study is the chicken egg retailer that

operates in Kalilangan, Bukidnon. Based on the list on the Business Licensing

Office there are (96) chicken egg retailing businesses including the sari-sari

store that operates in Kalilangan, Bukidnon. The researcher will use complete

enumeration in selecting the respondents of the study to determine the

profitability analysis of the chicken egg retailing business in Kalilangan,

Bukidnon

Research Instrumentation

The research will use an adopted research instrument by Andan J.

(2024). Marketing Practices and Profitability of Egg Retail Business. Journal

of research, 45-46. The research study includes a cover letter, an informed

consent form, and the main questionnaire. A structured questionnaire will

serve as the basis or guide for collecting the data for the study through
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personal interviews with the researcher. The adopted questionnaire is a close-

ended type questionnaire written in English; to make things easier, the

researcher will translate it into the vernacular.

Data will be gathered using a combination and modified questionnaires

and personal interviews with respondents. The survey instrument will be

comprised of five major sections the socio-demographic profile, retailing

practices, sales, operating expenses, and the problems encountered by the

chicken egg retailers. The respondents will be asked about their socio-

economic status such as age, household size, years in egg retailing, and

education.

The second section will be on the retailing practices which includes the

various strategies and methods employed by retailers to effectively market

and sell eggs to consumers. This includes aspects such as sourcing eggs

from suppliers, ensuring quality and freshness, and determining pricing,

based on factors like size and grade. There will be (54) questions in total.

Each question identifies each characteristic and in fill-in, the question will

identify its selling price.

The third section will be the sales data on the chicken egg retailing

business, in this section the researcher will find how much the chicken egg

prices from small eggs up to large eggs and how much these costs per tray.

The fourth section will be the operating expenses of egg retailing this

refers to the costs incurred by retailers in the process of selling eggs to

consumers. These expenses encompass various aspects of business

operations directly related to egg retailing.

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The fifth section of the study addresses the problems encountered by

chicken egg retailers. This section comprises fifteen (15) questions, each

identifying a specific characteristic related to the challenges faced by retailers.

Respondents will be asked to indicate their level of agreement or

disagreement with each statement using a five-point Likert scale. The scale

and its interpretation are as follows:

Strongly Agree (5) - The respondent fully agrees with the statement

and perceives it as a significant characteristic or problem.

Agree (4) - The respondent generally agrees with the statement and

considers it an important characteristic or problem.

Neutral (3) - The respondent neither agrees nor disagrees with the

statement, indicating a moderate or uncertain perception of the characteristic

or problem.

Disagree (2) - The respondent generally disagrees with the statement,

indicating that they do not consider it a significant characteristic or problem.

Strongly Disagree (1) - The respondent completely disagrees with the

statement, perceiving it as an insignificant or non-existent characteristic or

problem.

This scale allows for a nuanced understanding of the issues faced by

chicken-egg retailers, providing insight into the severity and prevalence of

various challenges within the industry.

Method of Data Collection

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The data will be collected using a personal interview by the researcher

using the structured questionnaire as a guide. Chicken egg retailers of

Kalilangan, Bukidnon will be the main respondents of the study.

Before the interview, a permit from the Institutional Ethics Review

Committee (IERC) at CMU will be secured. A letter requesting permission to

conduct the study will be given to the Municipality Mayor of the Municipality of

Kalilangan, Bukidnon. The chicken egg retailers will be interviewed in their

respective business areas at their most available time. Questions will be

explained carefully to the retailers by the researcher before answering. In

addition, the researcher will also inform the retailers about the nature and

purpose of the study and that their identities will be kept anonymous to protect

their privacy.

They will be asked to participate voluntarily. They will also be informed

of their right not to answer any question that they believe offensive. A token or

gift will be given to the chicken egg retailers and the safety protocols will be

practiced during the interview; the interview will be done for 15-20 minutes. A

letter of consent will be secured before the day of the interview.

Method of Data Analysis

To attain objectives 1, 2, and 4, descriptive analysis will employ using

totals, arithmetic means, percentages, as well as frequent counts.

About objective 3, the retailing costs incurred and returns received in

the chicken egg retailing business, a simple accounting of cost and return will

be used. The cost will be classified as fixed costs and variable costs. To get
 PAGE \* MERGEFORMAT 2

the total costs, total variable cost and total fixed cost will be added. In

accounting the costs incurred by the retailers will include all (Caplan, 2006).

A simple accounting technique will be employed using the following

formula below.

Financial ratio, net profit margin, and return on investment will be

used. Formula; NPM= Net profit

Total revenue X 100

Where: NPM= net profit margin

Net profit = the total profit generated by the chicken egg retailers after

deducting all expenses, including operating expenses, taxes, and other cost.

Total Revenue Total sales revenue generated by the chicken egg

retailing business during a specific period. It includes all income sources, such

as sales of chicken eggs.

NPM= Net income

X 100
Cost of investment

Where:

ROI = Return on investment

Net income = total profit generated from the chicken egg retailing business

over a specific period. It is calculated by subtracting the total expenses such

as operating costs, taxes, and other expenses, from the total revenue

Cost of investment = total cost incurred to establish and operate the

chicken egg retailing business. it encompasses various expenses, such as

purchasing or leasing.
 PAGE \* MERGEFORMAT 2

Ethical Considerations

When conducting a research study on the profitability analysis of the

chicken egg retailing business in Kalilangan, Bukidnon, several ethical

considerations must be addressed to ensure the integrity of the study and the

protection of participants. These considerations include:

Informed Consent: Participants must be fully informed about the

purpose of the study, the procedures involved, the potential risks and benefits,

and their right to withdraw at any time without penalty. They should provide

voluntary and informed consent before participating in the research.

Confidentiality and Anonymity: The privacy of participants must be

protected by ensuring that all data collected is kept confidential. Personal

identifiers should be removed, and data should be anonymized to prevent the

identification of individual participants.

Respect for Participants: Researchers must respect the dignity, rights,

and cultural values of all participants. This includes treating all participants

with fairness and without discrimination.

Avoiding Harm: The study should be designed and conducted to

minimize any potential harm or discomfort to participants. This includes both

 PAGE \* MERGEFORMAT 2

physical and psychological harm. Any risks should be communicated to

participants beforehand.

Honesty and Transparency: Researchers must be honest and

transparent in reporting the study's purpose, methods, and findings.

Misleading or falsifying information is unethical and undermines the integrity

of the research.

Beneficence: The research should aim to benefit the participants and

the broader community. This includes ensuring that the findings are used to

improve the chicken egg retailing business and contribute positively to the

local economy and society.

Avoiding Conflict of Interest: Researchers should disclose any potential

conflicts of interest that may influence the study's outcomes. This includes

financial interests, personal relationships, or any other factors that might bias

the research.

Fair Selection of Participants: Participants should be selected based on

criteria relevant to the research question and not on convenience or

vulnerability. This ensures that the study sample is representative and that no

group is unfairly burdened or excluded.

 PAGE \* MERGEFORMAT 2

Use of Data: Data collected should only be used for the purposes

outlined in the study. Researchers must seek permission from participants if

there is a need to use the data for any other purpose.

Ethical Review: The study should undergo ethical review and approval

by a relevant ethics committee or institutional review board to ensure that all

ethical standards are met.

By adhering to these ethical considerations, the researcher can ensure

that the study on the profitability analysis of the chicken egg retailing business

in Kalilangan, Bukidnon, is conducted with integrity, respect, and responsibility

towards all participants and stakeholders involved.

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APPENDICES

Appendix 1. Letter to the municipal mayor and licensing office

Republic of the Philippines

CENTRAL MINDANAO UNIVERSITY
University town, Musuan, Maramag,Bukidnon
COLLEGE OF AGRICULTURE
DEPARTMENT OF AGRIBUSINESS MANAGEMENT

ATTY. RAYMON GAMBOA

Municipal Mayor
Kalilangan, Bukidnon

Dear Sir,

Greetings of peace and prosperity!

I am Lemuel Jay Cacharo Funa, a 3rd year BS in Agribusiness

Management student at Central Mindanao University. I am currently working
on my proposal for the undergraduate thesis study entitled “PROFITABILITY
ANALYSIS ON CHICKEN EGG RETAILING BUSINESS IN KALILANGAN,
BUKIDNON” The purpose of this study is to analyze the profitability of chicken
egg retailing business in Kalilangan Bukidnon. This interview will only take 10-
15 minutes for each participant.

In this regard, I am humbly asking for permission from your good office
to allow me to gather data from your municipality. Rest assured that the
information gathered will be used solely for academic purposes only. Your
positive response will be greatly appreciated.
 PAGE \* MERGEFORMAT 2

Thank you very much and God bless!

Respectfully yours,

LEMUEL JAY C. FUNA

Student- Researcher

Noted by:
TEDDY E. COLIPANO, DBA
Thesis Adviser

Appendix 2. Letter requesting the participation of the respondents

Republic of the Philippines

CENTRAL MINDANAO UNIVERSITY
University town, Musuan, Maramag,Bukidnon
COLLEGE OF AGRICULTURE
DEPARTMENT OF AGRIBUSINESS MANAGEMENT

Dear: EGG RETAILERS,

Greetings!

I am Lemuel Jay C. Funa, a student of Central Mindanao University taking up

a Bachelor of Science in Agribusiness Management. I am conducting a study
entitled, “PROFITABILITY ANALYSIS ON CHICKEN EGG RETAILING
BUSINESS IN KALILANGAN, BUKIDNON”. The purpose of this study is to
analyze the profitability of the chicken egg retailing business. This interview
will only take 10 to 15 minutes.

May I request you to please answer the questions by providing the

necessary information for my study feel free to answer all the questions
honestly. Rest assured that all information that I get from you will be kept
confidential and will be used only for academic purposes.

Thank you for your time and participation.

 PAGE \* MERGEFORMAT 2

Very truly yours,

LEMUEL JAY C. FUNA

Student Researcher

Noted by:
TEDDY E COLIPANO, DBA
Thesis Adviser

Appendix 3. Informed consent (English Version)

Republic of the Philippines

CENTRAL MINDANAO UNIVERSITY
University Town, Musuan, Bukidnon College of Agriculture Department of
Agribusiness Management

I am, _________________________ living in agreeing to participate

in this research entitled, “PROFITABILITY ANALYSIS ON CHICKEN EGG
RETAILING BUSINESS IN KALILANGAN, BUKIDNON” in Kalilangan,
Bukidnon. I am helping this study because I understand its purpose.

Acknowledged my willingness to participate voluntarily. I am aware

that I may option to discontinue my participation at any point in the interview
and may opt not to answer some questions that I find uncomfortable. I
therefore affix my signature in this consent form.

Date: ____________

_______________________
Signature over printed name
 PAGE \* MERGEFORMAT 2

Appendix. 4 Survey questionnaire

I. SOCIO-DEMOGRAPHIC PROFILE

Instruction: Please provide the correct information on the blank

provided and indicate a check mark (/) as applicable. All your responses
will be treated as confidential by the researcher.

1. Name(Optional): ___________________________________________
2. Age:_______
3. Sex: [ ]Male [ ]Female
4. Household size:____
5. Years in Chicken egg retailing:____
6. Place of Interview:________________________
7. Education:______________________________
8. Marital Status:
9. Monthly Income:
10. No. of Children
11. No. of years in the chicken egg retailing business:
12. Is the chicken egg retailing business the only source of income?___
13. If no. What are the other source/s of income?

MONTHLY INCOME
( )Sugarcane farming ________________
( )Corn ________________
( )Rice ________________
( )Sari-sari store ________________
( )Others(please specify) _______________
 PAGE \* MERGEFORMAT 2

II. RETAILING PRACTICES

1. What is the main source ( ) Chicken egg producers
of your chicken egg? ( ) Wholesale markets
( ) Other (please specify) ______________
2. How often do you ( ) Once a week
restock your chicken ( ) Every 2-3 weeks
egg? ( ) Every Month
( ) Other (please specify) _________

3. How long have you ( ) Less than 1 year

been operating your ( ) 1-3 years
chicken egg retailing ( ) 3-5 years
business? ( ) Others (please specify)_________

4. What marketing ( )Social media (e.g., Facebook, Instagram)

channels do you use to ( )Local advertisements (newspapers, radio, TV)
promote your chicken ( ) Flyers and brochures
egg retailing business? ( ) Word-of-mouth referrals
(Choose all that apply)
5. What strategies do you ( )Offering discounts or promotions
employ to attract and ( ) Providing exceptional customer service
retain customers? ( ) Offering delivery
(Choose all that apply) ( ) Providing educational resources on egg
preparation and cooking
( ) Others (please specify):____________

6. How do you determine ( ) Market rates and competition

the pricing of your ( ) Cost-based pricing (cost of egg + markup)
chicken egg products? ( ) Value-based pricing (quality, exclusivity, etc.)
( ) Combination of market rates and cost/value-
based pricing

7. How do you handle ( ) Apologize and offer a refund or replacement

customer complaints or ( ) Listen to the customer and address their
feedback? concerns
( ) Provide additional information or guidance on
product usage
( ) Other (please specify) ______________
8. Are you implementing ( ) Yes
any sustainable or eco- ( ) No
friendly practices in your
chicken egg retailing
business?
9. . Do you offer any ( ) Yes
value-added services or ( ) No
 PAGE \* MERGEFORMAT 2

products in your chicken

egg retailing business?
10. What are the biggest ( ) Competition from other retailers
challenges you face in ( ) Sourcing quality egg products
running your chicken ( ) Price fluctuations
egg retailing business? ( ) Regulatory requirements
( ) Other (please specify) ______________

Product Selection

Instructions: Here are some statements that describe the common practices of a
chicken egg retailing business. Please rate and check (✓) the appropriate number
that describes the extent of adoption of these practices by your chicken egg
retailing business.
5 – Implemented most of the time
4 – Oftentimes Implemented
3 – Seldom Implemented
2 – Rarely Implemented
1 – Not Implemented
5 4 3 2 1
1. I consider the quality of the eggs as a top
priority when collecting a stock.
2. I consider the freshness of the egg that I
select.
3. I keep track of customer feedback.
4. I consider the availability of different sizes
of chicken eggs when planning my product
selection.
5. I consider the price and quantity of the egg
before purchasing the stock
Proper Handling
6. I ensured that the egg is stored and
handled at appropriate temperatures to
maintain freshness and quality.
7. I apply appropriate containers to prevent
breakage.
8. I ensure that the cracked egg and
abnormalities are removed in stock.
9. I store eggs in refrigerated conditions and
regularly rotate stock to maintain freshness
 PAGE \* MERGEFORMAT 2

10. I handle eggs with clean hands and adhere

to food safety standards.
Pricing
11. I consider the perceived value and quality
of my chicken egg when determining
products
12. I offer different pricing options or
promotions like discounts to attract
customers and encourage repeat
purchases.
13. I have a pricing strategy in place to
maximize profitability while meeting
customers' expectations.
14. I adjust my prices based on fluctuations in
the cost of egg products or changes in
market conditions.
15. I periodically review and compare my
pricing with competitors to ensure I remain
competitive in the market.

III. SALES DATA ON CHICKEN EGG RETAILING BUSINESS

Instructions: Kindly fill out the necessary information asked for in the table
regarding the average income in your chicken egg retailing business in a MONTH.
Size of egg Selling price (per Estimated product sold Total revenue
piece) per tray (per month) (Php)
Small
Medium
Large
Extra large
Jumbo
Others

Total Sales:
IV. OPERATING EXPENSE

Variable Cost (Direct Cost) Quantity Unit Cost Total Cost

(Php) (Php)
 PAGE \* MERGEFORMAT 2

1. Egg purchased (overall)

2. Transportation
3. Packaging materials (egg tray, plastic,
etc.)
4. Marketing and advertising
5. Others

Fixed Cost (Indirect cost)

1. Rent/lease
2. Utilities cost (water and electric bill)
3. Licensing and permits
4. Employee wages
5. In describes (any kind of insurance)
6. Others
Total Expense:
VI. PROBLEM ENCOUNTERED OF CHICKEN EGG RETAILERS

Instruction: Here are some statements that describe the common problem of the
chicken egg retailing business. Please rate and put a check ( / ) in the appropriate
number that describes the extent of adoption to these challenges by your egg retail
business.
Legend:
Scale Range of Descriptive Qualitative Interpretation
Value Rating
5 4.51-5.00 Strongly agree Always encountered (76-100%)
4 3.51-4.50 Agree Frequently encountered (51-75%)
3 2.51-3.50 Moderately Moderately encountered (26-50%)
2 1.51-2.50 Disagree Rarely encountered (1-25%)
1 1.00-1.50 Strongly Not encountered (0%)
Disagree

5 4 3 2 1
1. Price fluctuation is a significant challenge for my egg
retail business.

2. Ensuring consistent quality of egg products is a

 PAGE \* MERGEFORMAT 2

challenge for my business.

3. To stay competitive is one of the problems that
challenge me the most as the owner.
4. Lack of marketing expertise or knowledge affects the
success of my marketing efforts.
5. It is challenging to reach and attract new customers in
a highly competitive egg retail market.
6. Intense competition from other egg retailers impacts
my market share and customer loyalty.
7. Anticipating and planning for seasonal fluctuations in
demand presents challenges for my egg retail business.
8. Rising operating costs have a significant impact on
my egg retail business's profit margins.
9. Adapting to evolving consumer preferences and
trends is a challenge for my egg retail business.
10. Maintaining a stable profit margin in seasonal
variations challenges me the most as the owner.
11. Establishing a strong online presence and engaging
with customers digitally is challenging for my egg retail
business.
12. The perishability of my egg products challenges me
the most since they need careful inventory management
to minimize waste and losses.
13. Building and maintaining a loyal customer base can
be challenging without the resources for extensive
marketing campaigns and loyalty programs.
14. Lack of access to effective marketing channels
impacts my ability to reach the target market for my egg
products.
15. Adapting to online platforms and providing seamless
online purchasing experiences are challenges for my
egg retail business.
16.Others (Please
Specify):__________________________