A Multi-Factor analysis of profitability drivers of local rabbit production in Zamboanga Peninsula Region, Mindanao , Philippines

Abstract

[EN] Literature supporting empirical evidence on the financial viability of rabbit production in the Philippines is limited. This study was conducted to examine the profitability drivers of rabbit production in the Zamboanga Peninsula, focusing on its potential as a sustainable alternative to traditional livestock production, protein source and its capacity to augment household income. The research employed MRL (multiple linear regression) analysis to identify key factors influencing profitability, utilising a sample of 123 rabbit raisers randomly selected from the list in the Provincial Agriculture Offices. Data were collected during the first half of 2024 through personal interviews with the aid of an interview schedule validated by experts. Model specification was done to ascertain heteroscedasticity and multicollinearity issues in the data. The loglog model for expense categories and log-linear for profitability drivers having the lowest Akaike information criteria (AIC) were chosen for its better fit, providing a more accurate representation of the data. Results indicate that larger farms achieve significantly higher gross and net incomes, benefiting from economies of scale. Expense categories such as feed cost, veterinary expenses and labour costs positively and significantly influenced profitability, while outlay on utilities and cost of stocks negatively affected financial performance. The study also revealed that farming experience, feeds used, training attendance, breed type and marketing practices do not significantly influence profitability, implying that management practices and operational scale are more important considerations for rabbit profitability. Knowing the relationship and influence of these profitability drivers of rabbit production can help identify strategies to optimise returns, support the adoption of rabbit farming and improve the livelihoods of rural households in Philippines. The findings suggest the expansion of rabbit farming operations of up to more than 100 head per farm to optimise profitability.