INTRODUCTION

The Philippines is still primarily an agricultural country despite the plan to make it an
industrialized economy by 2000. Most citizens still live in rural areas and support
themselves through agriculture. The countrys main agricultural crops are rice, corn,
coconut, sugarcane, bananas, pineapple, coffee, mangoes, tobacco, and abaca. Secondary
crops include peanut, cassava, camote, garlic, onion, cabbage, eggplant, calamansi,
rubber, and cotton.

San Miguel is a 1st class municipality in the province of Bulacan, Philippines. Major
industries include farming, poultry, and food processing and quarrying. San Miguels
major products are sweets and delicacies, ice creams, balut, and juices. San Miguels
agricultural industry paved ways for multiple business entities to invest and conduct
business there, some of them are Balaong Farmers Multi-purpose Cooperative, Pulong
Bayabas farm, Ridley farm, Hardinero Mushroom farm, and Monterey farms.

Managing and providing quality goods in an agricultural sector are not an easy task.
Hence, managing inventory is crucial in this type of business. When we talk about
agricultural inventory, those are various fertilizers, pesticides, fuel or seeds that farmers
use in their production. From the process of storing, handling, delivery, and even in
disposing perishable goods should be properly monitored. These are needed in order to
provide sound services to consumers and to efficiently conduct business processes. A
smart inventory management is the base of healthy farming business.
BACKGROUND OF THE STUDY

The countrys agriculture sector is made up of 4 sub-sectors: farming, fisheries, livestock,

and forestry (the latter 2 sectors are very small), which together employ 39.8 percent of
the labor force and contribute 20 percent of GDP. The Philippines exports its agricultural
products around the world, including the United States, Japan, Europe,
and ASEAN countries. Major export products are coconut oil and other coconut products,
fruits and vegetables, bananas, and prawns.

Even though Philippines is abundant in its agricultural resources, major concerns still
affects the country's agricultural industry.

One of the most pressing concerns of the agricultural sector is the rampant conversion of
agricultural land into golf courses, residential subdivisions, and industrial parks or
resorts. In 1993 the nation was losing irrigated rice lands at a rate of 2,300 hectares per
year. Small land-holders find it more profitable to sell their land to developers in
exchange for cash, especially since they lack capital for seeds, fertilizers, pesticides, and
wages for hiring workers to plant and harvest the crops. Another concern is farmers'
continued reliance on chemical-based fertilizers or pesticides that have destroyed soil
productivity over time. In recent years however, farmers have been slowly turning to
organic fertilizer, or at least to a combination of chemical and organic inputs.

Environmental damage is another major concern. Coral-reef destruction, pollution of

coastal and marine resources, mangrove forest destruction, and siltation are significant
problems.

The researchers ought to know how the inventory systems of agricultural companies in
San Miguel, Bulacan, affect the overall output and production. Given that the agricultural
sector faces a lot of pressing matters which needs extensive researches regarding
Accounting Methodologies.
SIGNIFICANCE OF THE STUDY

The result of this study will be beneficial to the following:

Farmers

The study will give significant value to farmers. The study will tackle the different
inventory systems of different farming companies and how it affects their overall
performance. The farmers may digest these topics and use its information to promote
their own techniques in handling inventorial stocks in order to improve their productivity.

Investors

The investors will benefit from the study for it will give them ideas on how an
agricultural company provides their services. Proven that a sound inventory system
promotes a productive agricultural company, investors will be enlightened on how
productive an agricultural company can be and how it can generate revenues.

Government Officials

This study will benefit government officials because this study can also provide
information where the agricultural sector lacks its resources. This will help them decide
to provide larger funcds for critical programs or projects such as effective irrigation
systems.

Accounting students

The study will give accounting students an idea on accounting methodology of

agricultural companies, which will help them give ideas on how to apply classroom
discussions into practice of agricultural sectors.
Future researchers

The study can be used as preference for future researchers. This study will serve as their
guidelines for future work.

SCOPE AND LIMITATIONS

The scope of our study only includes the inventory systems of the farming companies in
San Miguel, Bulacan and how it affects the productivity and overall output. This study
will not cover other subject matters that is not related to the effects of inventory systems
to the output of farming companies.