The Study Of Competitive Structure Of Agribusiness Industry In Bacolod City,Philippines

Agricultural trade businesses in Bacolod City,Philippines have been somewhat affected by the Covid-19 pandemic,especially the restrictions placed on the movement of people and goods that had a significant impact on all levels of the agricultural market chain.It is therefore,important that the agricultural businesses in Bacolod City prepare for more intense effects of the pandemic and other factors in the future.This could be achieved through improved management and improved productivity that would then enhance competitiveness.This study therefore was conducted to understand the competitiveness of the agribusiness sector in Bacolod City,Negros Occidental specifically the key promoting and constraining factors influencing competitiveness success.Porter’s(1998)theory of competitive advantage was used as a basis for the analysis.The theory of the determinants of competitiveness described by Porter(1998)is an effort to identify the many factors that influence competitiveness and to show that they relate to each other and to the economic performance of the country’s industries in a global economy.Based on results of survey of the agribusiness sector,the most constraining factors to competitiveness of the agribusiness sector as perceived by the interviewed executives are: unavailability of professional labor,costs of supplies and inputs,inefficiency of local suppliers,lack of availability and cost of quality technology.Given the list of factors that constrain the agribusiness sector’s competitiveness,agribusiness participants will need to prioritize and implement strategies to improve the situation.In doing a turnaround of these factors to a positive state could result in a positive spill over to the rest of the economy.On a positive note,the top three factors that have a positive influence to competitiveness of the agribusiness sector are: production processes,availability of utilities in the city and low cost of unskilled labor.Moreover,the hypotheses of the study have been proved correct as the executives agreed that the local market size is small and the cost of inputs is indeed constraining the competitiveness of the agribusiness sector.It is clear that the agribusiness sector in Bacolod City cannot achieve competitive success in isolation but requires support from government and supporting industries.The individual agribusinesses can develop,organize and manage the business operations.However,the playground or the business environment should permit agribusinesses to carry out business operations fully,in such a way that competitiveness is achievable.In addition,government regulations and services should promote competitiveness success,not constraining restrictions.Services provided by related and supporting industries should be accessible to all firms in terms of costs,reliability and efficiency.The agribusiness executive’s confidence could be heightened with regard to the suppliers thereby expanding business operations.Cooperation between the suppliers and the agribusinesses will result in a mutual benefit for both parties.Continued trade and business operations would be guaranteed since the agribusiness would receive goods or services from the supplier and the supplier receive payment for the goods or service rendered.