Cost-Benefit Analysis of Production Inputs and Marketing Effectiveness in Community-Based Oyster Mushroom Enterprises in Abra

Kae Ann Marie P. Balingit
https://orcid.org/0000-0001-6500-7041
kambalingit@asist.edu.ph
Abra State Institute of Sciences and Technology
Lagangilang, Abra, Philippines

ABSTRACT

This study evaluates the production and marketing inputs of community-based oyster mushroom enterprises in Abra, aiming to optimize profitability and operational efficiency. Employing a mixed-method approach, data were collected from 20 community-based oyster mushroom producers through surveys and interviews conducted between September 2022 and March 2023. Quantitative data on production costs, sales, and profitability ratios were complemented by qualitative insights into marketing strategies and operational practices. Key findings reveal that efficient labor allocation and bulk procurement of materials significantly reduce production costs. With gross sales of Php 142,500.00 and a Return Cost Ratio (R/C) of 1.82, the enterprises demonstrated strong financial viability and operational efficiency. The 82.80% Return on Investment (ROI) underscores the sector’s potential for sustainable growth and reinvestment. Marketing strategies leveraging local partnerships and digital platforms were found to effectively enhance profitability, achieving a Technical Effectiveness (TE%) of 3.86. These results highlight the critical role of optimizing resources and adopting strategic marketing to scale operations and secure long-term sustainability. This study provides actionable insights for stakeholders, including farmers, entrepreneurs, and policymakers, to strengthen the oyster mushroom sector and enhance its market competitiveness in the Philippines. 

KEYWORDS

Oyster Mushroom Enterprise, Production Input, Cost-benefit Analysis, Marketing Effectiveness

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