LOS BAÑOS, Philippines – The Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), in partnership with the Philippine Department of Agriculture-Bureau of Agricultural Research (DA-BAR), conducted the training on Financial Viability and Profitability Analysis of Agricultural Technologies and Enterprises for the fourth batch of participants on 21-25 October 2019 at the SEARCA Headquarters.
A total of 24 selected personnel from state universities and colleges (SUCs), local government units (LGUs), DA Regional Offices and attached agencies, and DA-BAR participated in the training.
The training aimed to provide knowledge and improve the skills of the research personnel from various academic and research institutions in conducting financial viability and profitability analysis. The major topics covered were cost and returns analysis, break-even analysis, partial budgeting, break-even budgeting, and financial and sensitivity analyses.
The training-workshop was a combination of discussions and laboratory exercises with hands-on experience on computer applications of various analytical tools used in the evaluation of the profitability of processing technologies and enterprises.
During the opening program, Dr. Maria Cristeta N. Cuaresma, SEARCA Program Head for Graduate Education and Institutional Development, warmly welcomed everyone on behalf of Dr. Glenn B. Gregorio, SEARCA Director. In his speech, Dr. Gregorio said the support to this project comes from the understanding of the important role of technologies and product innovations in increasing farm productivity especially through small and medium scale agro-enterprises, the major driver of the Philippines’ agriculture-based industry.
On a wider perspective, he emphasized that “the need to inject new technologies and innovations into agricultural production has become a prerequisite for each ASEAN Member State (AMS) to be able to measure up to their neighbors and competitively participate in the borderless trade in the region brought about by the ASEAN Economic Community (AEC). It is therefore important to ensure that technologies have proven potential to increase farm yield to fuel agro-enterprises and correspondingly, the income of our resource-poor farmers.”
Overall, Dr. Gregorio expressed his hope for this learning exercise to help strengthen Philippine technology development and commercialization. He thanked DA-BAR for entrusting the project to SEARCA and ensured them that the center is always ready to partner with the DA and DA-BAR in areas of common interest highly relevant to agricultural development in this country.
During his speech for the welcome remarks, Dr. Nicomedes P. Eleazar, Assistant Secretary for Special Affairs and DA-BAR Director, read by Ms. Evelyn H. Juanillo, Administrative Head of DA-BAR, shared that the project is now on its third year of implementation since this series of training on financial viability and profitability analysis was conducted.
From 2017 to 2018, a total of 53 participants composing of three batches of participants from DA attached agencies, regional field offices, SUCs, LGUs, including people’s organizations, were capacitated.
An additional 109 participants were trained in 2018 to 2019. They were composed of proponents from the ongoing crop projects under the National Technology Commercialization Program (NTCP).
Last June, there were 46 participants in the third batch of training who are proponents from DA and its attached agencies, LGUs and SUCs for ongoing commercialization projects for crops.
“As the research and coordinating arm of the DA, it is imperative that BAR is mindful and judicious with the resources that are entrusted to the Bureau and a crucial part of the task is empowering research partners by capacitating them with necessary skills that they can acquire through intensive trainings like this,” Dr. Eleazar said.
He stressed the importance of financial analysis and profitability analysis, so much so, that they have required researchers to include it in their project proposals for funding. Part of ensuring investments being judiciously used is making sure that technologies that were produced from R&D initiatives will be profitable and sustainable enough to become an agri-business venture or an enterprise.
“After all, the goal is for the farmers and fisher folks to earn more beyond their subsistence level and this will entail researchers and project proponents to think not only yield-wise, but more importantly profit-wise,” he said.
Dr. Eleazar also mentioned positive feedbacks from previous participants on how the training has equipped them in the preparation of the financial analysis of their proposals.
He expressed his gratitude to SEARCA, UPLB-CEM, for partnering with DA-BAR on the worthy endeavor and encouraged the participants to use the learnings from the training that will bring forth productivity in their respective institutions.Dr. Corazon T. Aragon, Project Leader, presented the training mechanics and introduced the participants during the opening program. Dr. Aragon also provided lectures and discussions on the following topics: Cost and Returns Analysis, Partial Budget Analysis, Financial Cash Flow Analysis (Types of Benefits and Costs in Financial Cash Flow Analysis and Undiscounted Measures of Project Worth: Payback Period and Return on Investments), Discounted Measures of Project Worth, and Sensitivity Analysis.
Aside from Dr. Aragon, the other members of the project team are Dr. Cesar B. Quicoy, Financial Viability Expert; Dr. Antonio Jesus A. Quilloy, Financial Viability Manual Designer; and Prof. Bates M. Bathan, Training Facilitator.
Participants during the conduct of Laboratory Exercise in Cost and Returns Analysis, Partial Budget Analysis, Break-Even Budget, and Financial Cash Flow Analysis.
The activity was led by the SEARCA Project Development and Technical Services (PDTS) headed by Ms. Imelda L. Batangantang, Program Specialist and Officer-in-Charge. Ms. Amy A. Antonio, Ms. Nikka Marie P. Billedo, and Ms. Rebeka A. Paller, all Project Assistants under PDTS provided logistical support during the training.