Performance and Challenges of Agri- and Non-Agri-Based Income-Generating Projects: The Case of Pangasinan State University, Philippines

James Paul R. Labindao, Helene M. Mescallado


The state universities and colleges (SUCs) are expected to be financially self-sufficient by utilizing efficiently their economic assets. However, Pangasinan State University (PSU) has no set strategy to accomplish such an objective as no review of policies and productivity has occurred. The study was conducted to serve as benchmark performance evaluation on the overall income-generating projects (IGPs) performance relative to viability on production, marketing, financial, and organizational aspects from 2008 to 2009. Result shows that PSU has 57 IGPs classified as agricultural (e.g., swine, poultry, goat, aquaculture, mango, rice/corn, nursery seedlings) and non-agricultural (e.g. rentals, canteens, dormitory, and special projects). The objective of unifying all IGPs under one management was only partially attained due to loose organizational structure. The objective of providing food and accommodation services and support to national food production program were satisfactorily achieved. PSU has incomplete operational guidelines and experienced procurement delays. In marketing, customers are mostly university personnel and students. The “first-come, first serve” selling basis was adopted and prices are based on current market value. Agriculture-based IGPs contributed 70% to the total IGP revenues. Overall viability shows a decline in production, marketing, and profitability, but within acceptable levels. In general, PSU in its present management capability cannot attain financial self-sufficiency. To make the IGPs viable, PSU must restructure its IGP organizational structure in order to strengthen its management system. It is recommended that PSU revise the IGP guidelines, establish measures on monitoring and evaluation, install marketing strategies, and provide operational guidelines for specific IGPs and a comprehensive incentive scheme.

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