Porter’s Five Forces Analysis of the Organic Farming in Laguna Province

Abstract

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.