This study assessed the external environment of the organic farming in Laguna Province, Philippines using Porter’s five forces framework. Using snow ball approach for the selection of participants, a total of 86 organic farmers in selected municipalities were included in the study. A self-made questionnaire was the main data gathering tool. Frequency distribution and percentage were used to analyze data. Majority of the organic farms were existing for 3 to 5 years, less than one hectare farm size, vegetable as the prime commodity and manual organic farming practices. Based on Porter’s five forces, threat of new entrants, threat of substitute and buyer power are high while supplier power and competitive rivalry are low. Results show that organic farming can be categorized as moderately attractive. Results suggest the need to intensify organic farming practices in the province of Laguna. The Porter’s Five Forces Analysis can be used for better organic farming outcomes and boost the industry to induce farmers to shift from conventional agriculture to organic farming.
organic farming, external environment, agriculture, Porter’s Five Forces
Marivic B. Abinsay. Department of Education Schools Division Office Sta. Cruz Laguna and San Pablo Colleges, Laguna. mavicb21@gmail.com
Bechdol, Elizabeth, Allan Gray, and Brent Gloy. (2010). Forces Affecting Change in Crop Production Agriculture. Choice, the Magazine of Food, Farm and Resources Issues. Agricultural and Applied Economics Association. 4th Quarter, 25 (4)
Bhargava, Sandeep. (2010). Organic Certification. Organic Agriculture and Agribusiness: Innovation and Fundamentals. Tokyo: Asian Productivity Organization
Bolorian, T.M. and F. Rahmani. (2014). Evaluation Strategy Michael Porter’s five forces model of the competitive environment on the dairy industry (Case Study: Amoll Haraz Dvshh dairy company). American Journal of Engineering Research (AJER), Volume-03, Issue-05, pp-80-85
Carating, R.B. and S.Q. Tejada. (2012). Sustainable Organic Farming in the Philippines: History and Success Stories. Bureau of Soils and Water Management, Elliptical Road, Diliman, Philippines.
Colting, R.D. and D.D. Tagarino. (2008). Status and Agribusiness Potentials of Organic Agriculture in the Philippines. J. ISSAAS Vol. 14, No 1:25-32
Crowder, D.W. and J.P. Reganold. (2015). Financial competitiveness of organic agriculture on a global scale. PNAS, Vol. 112, No. 24, pp 7611–7616. DOI: www. pnas.org./cgi/doi/10.1073/pnas.1423674112
Dälken, F. (2014). Are Porter’s Five Competitive Forces still Applicable? A Critical Examination concerning the Relevance for Today’s Business. 3rd IBA Bachelor Thesis Conference, July 3rd, 2014, University of Twente, Faculty of Management and Governance. pp. 1-9.
De Oliveira, C.A., D. Pivoto, C. P. and Spanhol, V. F. D. Corte. (2015). Developments And Competitiveness Of Mozambican Chicken Meat Industry. RAIMED – Revista de Administração IMED, 5(2): 205-216, maio/ago. 2015 – ISSN2237-7956. Pp. 205-216
Dubey, Rajesh Kr and NidhiShukla. (2014). Organic Farming: An Eco-Friendly Technology and Its Importance And Opportunities in the Sustainable Development. International Journal of Innovative Research in Science, Engineering and Technology, Vol.3, Issue 3, March 2014.
FAO. (2013). Organic Agriculture, Environment and Food Security. FAO, Rome, Italy.
Herrmann, Gerald A. (2010). Marketing of Organic Products: Critical SUCCESS Factors. Organic Agriculture and Agribusiness: Innovation and Fundamentals. Tokyo: Asian Productivity Organization
IFOAM & FiBL. (2015). The World of Organic Agriculture. Statistics and Emerging Trends 2015. International Federation of Organic Agriculture Movements (IFOAM), Bonn & Research Institute of Organic Agriculture FiBL, Frick, pp. 50-66; 163-166.
Khaledi, M. (2007). Assessing the Barriers to Conversion to Organic Farming: An Institutional Analysis. Advancing Canadian Agriculture and Agri-Food Saskatchewan (ACAAFS). Department of Agricultural Economics University of Saskatchewan.
Larry, M. S. Luis and F. Johnson. (2014). The 5 Competitive Forces Framework In A Technology Mediated Environment. Do these forces still hold in the industry of the 21st century? 3rd IBA Bachelor Thesis Conference. University of Twente, Faculty of Management and Governance. July 3, 2014, Enschede, The Netherlands
Maghirang, R.G., R. De La Cruz, R.L. Villareal. (2011). How Sustainable is Organic Agriculture in the Philippines? Trans. Nat. Acad. Sci. & Tech. (Philippines) Vol. 33, No. 2, pp. 289-321.
Martin, H. (2009). Introduction to Organic Farming. Ontario: Queen’s Printer for Ontario
Matoshi, Ruzhdi and Besa Veseli. (2017). Organic Food Perspective in Developing Countries: An Overview of Polog Region and a Case Study in the Republic of Macedonia. European Journal of Multidisciplinary Studies. Pp. 9-16
Naspetti, Simona and Antonella Bodini. (2014). Consumer Perception of Local and Organic Products: Substitution or Complementary Goods? The International Journal of Interdisciplinary Social Sciences: Annual Review. Volume 3, pp 1 – 13
Ndanga, LZB, K .Quagrainie, CC Ngugi, and J Amadiva. (2015). Application of Porter’s
Framework to Assess Aquaculture Value Chain in Kenya. African Journal on Food, Agriculture, Nutrition and Development, Vol. 15, No. 3. Pp. 1018-10137
Olabisi, L.S., R.Q. Wang, A. Ligmann-Zielinska. (2015). Why Don’t Farmers Go Organic? Using A Stakeholder-informed Exploratory Agent-Based Model to Represent the Dynamics of Farming Practices in the Philippines. Land 2015, 4,979-1002: doi:10.3390/land4040979. ISSN 2073-445X. www.mdpi.com/journal/land.
Pantoja, Blanquita & Badayos, Gerdino & Rola, Agnes. (2016). Constraints to Adoption of Organic Rice Production in Selected Areas in the Philippines. A Technical Report. DOI: 10.13140/RG.2.2.31525.50401.
Piadozo, M.E.S., F.A. Lantican, I.M. Panuayon, A.R. Quicoy, A.M. Suyal, P.K.B. Maghirang. (2014). Rice Farmers’ Concept and Awareness of Organic agriculture implications for sustainability of Philippine organic agriculture program. J.ISSAAS. Vol.20 No.2;142-156 (2014).
Porter, M. E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review, 86(1), 25-40.
Rachapila, T. and S. Jansirisak. (2013). Using Porter’s Five Forces Model for Analysing the Competitive Environment of Thailand’s Sweet Corn Industry. International Journal of Business and Social Research (IJBSR), Volume -3, No.-3, March 2013. pp. 174-184
Reganold, J. P., & Wachter, J. M. (2016). Organic agriculture in the twenty-first century. Nature plants, 2, 15221.
https://doi.org/10.1038/nplants.2015.221
Rola, Agnes C., Blanquita R. Pantoja, Agnes R. Chupungco, Miriam R. Nguyen, and Jaine C. Rola, Agnes C., Blanquita R. Pantoja, Agnes R. Chupungco, Miriam R. Nguyen, and Jaine C. Reyes. (2016). Policy Support to Organic Agriculture in the Philippines. DA-BAR, Diliman, Quezon City, and UPLBFI, College, Laguna, Philippines, 215pp.
Sachitra, Vilani. (2017). Review of Competitive Advantage Measurements: Reference on Agribusiness Sector. Journal of Scientific Research and Reports. 12(6): 1-11.
Shimoguchi, Nina and Loida Mojica. (2016). Adaptation Strategies to Changing Environment by an Organic Farm in Laguna, Philippines. IJERD – International Journal of Environmental and Rural Development (2016) 7-2. Pp. 93-98
Uenlue, Murat. (2018). Strategy: Porter’s Five Forces Explained. Retrieved from InnovationTactics.com
Cite this article:
Abinsay, MB (2020). Porter’s five forces analysis of the organic farming in Laguna Province. International Journal of Academe and Industry Research, 1(1), 20-46. https://doi.org/10.53378/345652
License:
This work is licensed under a Creative Commons Attribution (CC BY 4.0) International License.
