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Marketing of Agricultural Produce in Selected Areas in Camarines Sur and Masbate, Philippines

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Marketing of Agricultural Produce in Selected Areas in Camarines Sur and Masbate, Philippines Working Paper No. 2018-08 MARKETING OF AGRICULTURAL PRODUCE IN SELECTED AREAS IN CAMARINES SUR AND MASBATE, PHILIPPINES Agnes R. Chupungco Center for Strategic Planning and Policy Studies (formerly Center for Policy and Development Studies) College of Public Affairs and Development University of the Philippines Los Baños College, Laguna 4031 Philippines Telephone: (63-049) 536-3455 Fax: (63-049) 536-3637 Homepage: https://cpaf.uplb.edu.ph/ The CSPPS Working Paper series reports the results of studies by the Center researchers and CPAf faculty, staff and students, which have not been reviewed. These are circulated for the purpose of soliciting comments and suggestions. The views expressed in the paper are those of the authors and do not necessarily reflect those of CSPPS, the agency with which the authors are affiliated, and the funding agencies, if applicable. Please send your comments to: The Director Center for Strategic Planning & Policy Studies (formerly CPDS) College of Public Affairs and Development University of the Philippines Los Baños College, Laguna 4031 Philippines Email: [email protected] ii ABSTRACT This paper provides marketing information that could guide industry stakeholders in responding to the demands of consumers and end users. It can also serve as input in policy design to sustain the agricultural sector in the municipalities under study. Secondary data on number of rice and vegetable farmers, area planted, and rice and vegetable production were obtained from the Municipal Agriculture Office (MAO) of the respective municipalities, Data on other agricultural commodities and basic information about agricultural traders and trading activities in Pamplona and Milagros were obtained as well. Only a few agricultural traders operate in both municipalities; only seven agricultural traders in Pamplona and five traders in Milagros were interviewed. It was found that marketing was not a much of a concern in majority of the study sites and that the only major problem was vegetables being left to rot in the field when there is high production. Traders would not want to buy these vegetables even with prior commitment to buy the produce. Hence, crop programming should be practiced. Farmers should be aware of the negative consequences of planting too many similar crops at the same time. They should have good information on how the market works in their locality and should acquire some business sense. In addition, market linkages must be created with the help of the local government unit. Developing more markets would entice farmers to plant more crops. Keywords: agricultural produce, marketing, marketing linkages, rice, vegetables iii TABLE OF CONTENTS Page I. Introduction 1 II. Methodology 1 III. Results and Discussion 2 3.1 Pamplona, Camarines Sur 2 3.1.1 Rice production and disposal 2 3.1.2 Production and disposal of other crops 3 3.1.3 Poultry and livestock 4 3.1.4 Survey of agricultural traders 5 3.1.5 Marketing practices 5 3.2 Milagros, Masbate 8 3.2.1 Rice production and disposal 8 3.2.2 Production of other crops and market 14 3.2.3 Poultry and livestock 17 3.2.4 Other sources of income 18 3.2.5 Survey of agricultural traders 18 3.2.6 Marketing practices 18 IV. Conclusions 20 V. References 20 List of tables Page Table 1. Number of rice farmers, area planted, and production of palay in 2 the study sites of Pamplona, Camarines Sur, 2014 Table 2. Number of vegetable farmers, area planted and production of 3 vegetables in the study sites of Pamplona, Camarines Sur, 2014 Table 3. Number of trader-respondents, by crop, in the study sites in 5 Pamplona, Camarines Sur, 2014 Table 4. Quantity handled by palay/rice traders and market prices of 6 palay/rice produced in the study sites of Pamplona, 2014 Table 5. Quantity handled and market prices of vegetables (including root 7 crops) in the study sites in Pamplona, 2014 Table 6. Estimated marketing cost, marketing losses, and marketing profit 8 (per kilogram) of traders for vegetables traded in the study sites, Pamplona, Camarines Sur, 2014 Table 7. Number or rice farmers, area planted, and production in the study 9 sites, Masbate, 2014 Table 8. Crop disposal patterns per farm, Masbate, 2013 wet season and 11 2014 dry season (in kg) Table 9. Average area planted to rice (ha), Masbate, 2013 wet season and 12 2014 dry season iv Page Table 10. Rice disposal patterns (%), Masbate, 2013 wet season and 2014 12 dry season Table 11. Disposal patterns of other crops (%), Masbate, 2013 wet season 15 and 2014 dry season Table 12. Number of vegetable farmers, area planted, and production in 15 study sites of Milagros, Masbate, 2014 Table 13. Estimated farm prices and retail prices of vegetables, Milagros, 17 2015 Table 14. Quality handled by palay/rice traders and market prices of 19 palay/rice produced in the study sites, Milagros, Masbate 2014 List of figures Page Figure 1. Rice disposal, wet season, Masbate, 2013-2014 14 Figure 2. Rice disposal in Masbate, 2014 dry season 14 v MARKETING OF AGRICULTURAL PRODUCE IN SELECTED AREAS IN CAMARINES SUR AND MASBATE, PHILIPPINES Agnes R. Chupungco I. Introduction The agricultural commodities produced and marketed in the municipalities of Pamplona, Camarines Sur and Milagros, Masbate are rice, corn, vegetables, poultry, and livestock. How these products were distributed and marketed as well as what marketing problems were encountered by farmers and traders are discussed in this paper. Specifically, this paper describes the status of marketing agricultural produce in the study sites of the CRDES 2 Project in Pamplona and Milagros. In Pamplona, the study sites that were selected were barangays Veneracion, Tampadong, Batang, Tambo, and Del Rosario. In Milagros, the chosen barangays were Narangasan, Capaculan, Tawad, Cayabon, and Bacolod. Barangays were chosen based on size of area allotted for rainfed rice production and poverty incidence. This paper provides marketing information that can enable industry stakeholders respond effectively to consumer demand. These can likewise serve as inputs in policy design and formulation to develop the industry. In addition, the findings can help farmers increase their disposable income through informed decisions related to the marketing of their produce. II. Methodology Data on number of rice and vegetable farmers, area planted, and production of rice and vegetables in Pamplona and Milagros were obtained from the Municipal Agriculture Office (MAO) of these two towns. Data on other agricultural commodities as well as basic information on agricultural traders and trading activities were also gathered. There were only a few agricultural traders in both study municipalities. Only seven agricultural traders in Pamplona and five traders in Milagros were interviewed. The trader-respondents were asked about their marketing practices and the problems they faced. The profits of these traders were likewise estimated. A benchmark survey involving 150 rice farmers each in Pamplona and Milagros (30 farmer- respondents in each of the five barangays covered in Pamplona and in each of the five barangays covered in Milagros) was conducted in 2015. Farmers were chosen through purposive sampling. This survey collected data on production and disposal of rice and vegetables for the 2013 wet season and the 2014 dry season. Some farmers also planted root crops. 1 III. Results and Discussion 3.1 Pamplona, Camarines Sur Agricultural commodities produced in Pamplona were mostly palay, vegetables, root crops, and chickens. The major vegetables grown were eggplant, string beans, bittergourd, cabbage, okra, gourd, and squash. 3.1.1 Rice production and disposal In 2014, there were 2,161 rice farmers in Pamplona cultivating a total palay area of 4,654 ha. Total palay production in this town was recorded at 16,753 t, with an average of 3.6 t/ha. The number of rice farmers in the five study sites of Pamplona ranged from 96 in Barangay Del Rosario to 163 in Barangay Tambo (a total of 608, comprising 28%) (Table 1). The total palay area covered by the five barangays was 1,061 ha (23% of total palay area in Pamplona), with the lowest, 125 ha, recorded in Batang and the highest, 329 ha, noted in Del Rosario. Average palay production was estimated at 3.60 t/ha in the study sites and all the barangays of Pamplona. For all barangays, 20% of the palay produce were allotted for home consumption and for seeds. As to the volume of palay/rice sold, 12% was sold in Naga and 88% was sold in other areas of Pamplona. Newly harvested palay was bought by traders at PhP 10/kg. Milled rice was usually sold at PhP 38/kg at the Pasacao public market. Table 1. Number of rice farmers, area planted, and production of palay in the study sites of Pamplona, Camarines Sur, 2014 Item Batang Del Tambo Tampadong Veneracion Rosario Rice farmers 120 96 163 122 107 (no.) Total area 125 329 274 158 175 planted to palay (ha) Average area 1.04 3.43 1.68 1.30 1.64 planted to palay per farmer (ha) Total palay 450 1184 986 569 630 production (t) Palay 3.60 3.60 3.60 3.60 3.60 production per ha (t) Source: Municipal Agricultural Office, Pamplona, Camarines Sur 2 3.1.2 Production and disposal of other crops The total number of vegetable farmers in the study sites was 226 (46% of the total in Pamplona). Average area planted to vegetables per farmer ranged from 0.29 ha in Veneracion to 0.85 ha in Batang. Average vegetable production per hectare in Pamplona in 2014 was 7.51 tons/ha in the municipality of Pamplona. Among the five barangays, vegetable production per hectare was lowest in Tambo (7.29 t) and highest in Veneracion (8.22 t) (Table 2).
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