This study aimed to identify the determinants of profitability of the rice production projects in State Universities and Colleges (SUCs); to analyze the strategies used in finance, procurement, production and marketing; and to examine the problems encountered.
The study was conducted in 15 SUCs from nine regions in the country for the period 1991 to 1995. A total of 264 respondents composed of 104 administrators, 81 production staff, 40 faculty specialists and 39 project critics provided the needed data for the study. Self-administered Likert-type survey questionnaires with open-ended questions were used to gather data.
Of the 15 variables (five quantitative, nine qualitative and one dummy) only three were found significant determinants of profitability of the 25 projects analyzed. They were length of experience in rice production of the project manager; age of machinery, equipment and facilities used; and type of policies and procedures adopted.
Net income and return on investment were used as indicators of profitability. A pro-forma income statement for the projects and a formula to compute ROI were used in the computation of income and ROI. Out of the 25 projects studied, 14 were found to be earning while the rest experienced losses during the year under study.
Based on the results of the study, it was recommended that the SUCs should establish a foundation to avoid problems such as government bureaucratic rules and regulations like, inadequacy of funds, delayed procurement of inputs, use of accounting system, cumbersome auditing practices and reversion of project income to the National Treasury.
