International Journal of Agricultural Economics, Extension and Rural Development ISSN: 2716-7969 Vol. 3 (5), pp. 062-069, May, 2017.  © Advanced Scholars Journals

Full Length Research Paper

Economic feasibility of a small scale hot spring incubator in University of the Philippines-Los Baňos

*Corazon Rizal, Imelda Peysler and Joseph Benigno

College of Engineering and Agro-Industrial Technology, Institute of Agricultural Engineering, University of the Philippines Los Baños, College, 4031 Laguna, Republic of the Philippines.

*Corresponding Author. Email: [email protected]

Accepted 15 April, 2017

Abstract 

The economic analysis of a manual and automatic turning hot spring incubator developed at the University of the Philippines-Los Baňos, Laguna Province, Philippines, was studied by comparing its performance with the conventional electrical incubator. This research can help small-scale farmers by reducing operational cost and increasing profitability. To determine the feasibility, undiscounted and discounted measures were used. For undiscounted measures, the break-even point (BEP) and payback period (PBP) for the conventional electrical incubator, manual and automatic turning hot spring incubator were 2788, 1950 and 4552 balut; and 2.31, 0.751 and 1.755 years for balut production; 723, 660 and 1540 ducklings; and 1.852, 0.856 and 1.998 years for duckling production, respectively. For the discounted measures, benefit-cost ratio (BCR), net present value and internal rate of return (IRR) for the conventional electricity incubator were 1.07, 1.36 and 1.20; ₱4176.88, ₱34359.81 and ₱22357.39; and 7.16, 36.44 and 20.35, respectively, for balut production and 1.15, 1.44 and 1.16; ₱6264.42, ₱28320.29 and ₱12740.51; and 15.15, 43.78 and 15.88, for ducklings production, respectively. Finally, the outcome of this research can be adopted by balut producers that have access to hot spring. The hot spring manual turning incubator was the most feasible incubator for balut production than the conventional incubator.

Key words: Hot spring incubator, conventional, manual, automatic, ducklings, economic analysis, balut.