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APRIL 2014 Republic of the Philippines Philippine Statistics Authority BUREAU OF AGRICULTURAL STATISTICS FOREWORD The Philippine Statistics Authority - Bureau of Agricultural Statistics (PSA– BAS) conducted Costs and Returns Survey (CRS) of Garlic Production in August 2013. The CRS was designed to generate data on the cost structure of garlic production, average use of materials and labor inputs and measures of profitability of garlic farming in the six (6) major producing provinces, namely: Ilocos Norte, Ilocos Sur, Nueva Vizcaya, Nueva Ecija, Quezon and Mindoro Occidental. The costs and returns data contained in this report are presented by province. This report includes other socio-economic variables related to garlic production. The reference period of the survey is the last completed harvest within July 2012 to June 2013. The PSA-BAS gratefully acknowledges the financial support provided by the National Rice Program of the Department of Agriculture (DA). Further, the PSA-BAS deeply appreciates the cooperation of the respondents who were interviewed by the Contractual Data Collectors (CDCs) during the survey. We welcome comments and suggestions from our various users for the improvement of our data system on cost of production. ROMEO S. RECIDE Director i TABLE OF CONTENTS Page FOREWORD i TABLE OF CONTENTS ii LIST OF TABLES iii I. INTRODUCTION 1 A. Rationale 1 B. Objectives 1 II. SURVEY METHODOLOGY 2 A. Coverage 2 B. Reference Period 2 C. Sampling Frame 2 D. Sampling Design, Sample Size and Sample Selection Procedure 2 III. SURVEY OPERATION 3 A. Pre-survey Training 3 B. Data Collection 4 C. Supervision of Field Operations 4 IV. DATA PROCESSING 4 V. DATA REVIEW AND ANALYSIS 5 VI. HIGHLIGHTS OF THE SURVEY FINDINGS 5 A. Characteristics of Garlic Farmers 5 B. Farm Characteristics 6 C. Farm Practices 8 D. Input Usage 11 E. Average Production Costs and Returns of Garlic 13 F. Other Information 18 STATISTICAL TABLES 25 ii LIST OF TABLES Table No. Page 1 Percentage distribution of garlic farmers by sex, selected 26 provinces, July 2012-June 2013 2 Average age of garlic farmers and percentage distribution 26 by age group, selected provinces, July 2012-June 2013 3 Percentage distribution of garlic farmers by educational 27 attainment, selected provinces, July 2012-June 2013 4 Average farming experience of garlic farmers and percentage 27 distribution by number of years engaged in garlic production, selected provinces, July 2012-June 2013 5 Percentage distribution of garlic farmers by main occupation, 28 selected provinces, July 2012-June 2013 6 Average farm size, area planted and harvested of garlic focus 29 farm parcels, selected provinces, July 2012-June 2013 7 Percentage distribution of garlic farm parcels by tenurial 29 status, selected provinces, July 2012-June 2013 8 Percentage of garlic farmers by type of farm investment, 30 selected provinces, July 2012-June 2013 9 Percentage of garlic farmers by source of seeds, selected 31 provinces, July 2012-June 2013 10 Percentage of garlic farmers planting other crops, selected 31 provinces, July 2012-June 2013 11 Percentage distribution of garlic farmers by month of planting 32 and harvesting, selected provinces, July 2012-June 2013 12a Percentage of garlic farmers by method of land preparation and 32 type of labor used, selected provinces, July 2012-June 2013 12b Percentage of garlic farmers by method of weeding, selected 33 provinces, July 2012-June 2013 13 Percentage of garlic farmers by type of solid fertilizers used, 33 selected provinces, July 2012-June 2013 iii 14 Percentage of garlic farmers by type of liquid fertilizers used, 34 selected provinces, July 2012-June 2013 15 Percentage of garlic farmers by type of pesticides used, 34 selected provinces, July 2012-June 2013 16 Average quantity of planting materials used per hectare by 35 mode of acquisition, selected provinces, July 2012-June 2013 17 Average quantity of solid fertilizers applied per hectare, 35 selected provinces, July 2012-June 2013 18 Average quantity of liquid fertilizers applied per hectare, 36 selected provinces, July 2012-June 2013 19 Average quantity of fertilizer nutrients applied per hectare, 36 selected provinces, July 2012-June 2013 20 Average quantity of mulching materials used per hectare, 37 selected provinces, July 2012-June 2013 21 Average quantity of pesticides applied per hectare by type, 37 selected provinces, July 2012-June 2013 22 Average labor utilization per hectare of garlic production by 38 source of labor, selected provinces, July 2012-June 2013 23 Average labor utilization per hectare of garlic production 38 by farm activity, selected provinces, July 2012-June 2013 24 Average production costs and returns of garlic per hectare, 39 selected provinces, July 2012-June 2013 25 Average variable and fixed production costs of garlic, 41 selected provinces, July 2012-June 2013 26 Average production costs and returns of garlic per hectare, 42 Ilocos Norte, July 2012 - June 2013 27 Average variable and fixed production costs of garlic, 44 Ilocos Norte, July 2012 - June 2013 28 Average production costs and returns of garlic per hectare, 45 Ilocos Sur, July 2012 - June 2013 29 Average variable and fixed production costs of garlic, 47 Ilocos Sur, July 2012 - June 2013 iv 30 Average production costs and returns of garlic per hectare, 48 Nueva Vizcaya, July 2012 - June 2013 31 Average variable and fixed production costs of garlic, 50 Nueva Vizcaya, July 2012 - June 2013 32 Average production costs and returns of garlic per hectare, 51 Nueva Ecija, July 2012 - June 2013 33 Average variable and fixed production costs of garlic, 53 Nueva Ecija, July 2012 - June 2013 34 Average production costs and returns of garlic per hectare, 54 Quezon, July 2012 - June 2013 35 Average variable and fixed production costs of garlic, 55 Quezon, July 2012 - June 2013 36 Average production costs and returns of garlic per hectare, 56 Mindoro Occidental, July 2012 - June 2013 37 Average variable and fixed production costs of garlic, 58 Mindoro Occidental, July 2012 - June 2013 38a Inter-provincial comparison of average production costs 59 and returns of garlic per hectare by major cost item, selected provinces, July 2012-June 2013 38b Inter-provincial comparison of profitability of garlic production, 59 selected provinces, July 2012-June 2013 39 Percentage distribution of garlic produce by disposition item, 60 selected provinces, July 2012-June 2013 40 Percentage of garlic farmers reporting on current level of 61 production in comparison with the same period last year, selected provinces, July 2012-June 2013 41 Percentage of garlic farmers with higher volume of production 61 this year by reason for change in production, selected provinces, July 2012-June 2013 42 Percentage of garlic farmers with lower volume of production 62 this year by reason for change in production, selected provinces, July 2012-June 2013 v 43 Percentage of garlic farmers reporting problems on production, 62 selected provinces, July 2012 - June 2013 44 Percentage of garlic farmers who sold produce by major buyer, 63 selected provinces, July 2012 - June 2013 45 Percentage of garlic farmers reporting problems on marketing 63 of produce, selected provinces, July 2012-June 2013 46 Percentage of garlic farmers who availed of loans for garlic 64 production and by source of loan, selected provinces, July 2012 - June 2013 47 Percentage of garlic farmers who are aware and availed of benefit 64 from government programs/interventions in garlic production, selected provinces, July 2012-June 2013 48 Percentage of garlic farmers who received benefit from 65 government programs/interventions on garlic production, selected provinces, July 2012 - June 2013 49 Percentage of garlic farmers who used the benefit received and 65 increased farm income, selected provinces, July 2012-June 2013 50 Percentage of garlic farmers by perceived effect of climate 66 change on their farming practices, selected provinces, July 2012 - June 2013 51 Percentage of garlic farmers practicing natural farming, 66 selected provinces, July 2012-June 2013 52 Percentage of garlic farmers who are members of farmers' 67 organization and by type of benefit received, selected provinces, July 2012 - June 2013 53 Percentage distribution of garlic farmers reporting on the plan 67 of farm operation, selected provinces, July 2012 - June 2013 54 Percentage of garlic farmers reporting on the recommendations 68 to further improve the garlic production, selected provinces, July 2012-June 2013 vi I. INTRODUCTION A. Rationale Garlic (Allium sativum L.), otherwise known as “bawang”, is one of the most popular cultivated Alliums. It is mainly used as a condiment for flavoring meat, fish and salads, in fresh and dehydrated forms. It is also known to lower blood sugar and cholesterol levels. Its many other health-promoting attributes have resulted in medicinal pills, drinks and powders based on garlic extracts. In spite of having many other uses and with increasing demand for garlic, production in the Philippines has been declining by 5.94 percent over the past 10 years. The country produced 8,644 metric tons in 2013. Price per kilogram of garlic was P70.40. Yet, area harvested for garlic decreased by 5.37 percent in 2013 compared with last year’s record. The Philippine Statistics Authority-Bureau of Agricultural Statistics (PSA- BAS) has been doing its share in the government’s continuing efforts to develop and sustain the growth of agriculture in the country through the provision of basic statistics. The garlic industry has expressed the need for more information that can help policy makers and investors in making decisions and policies. Part of the growing demand for data are statistics on costs and returns of production. However, the generation of CRS data has not yet been made a regular survey undertaking of the PSA-BAS given the limited regular budget of the Bureau. With the funding support from the National Rice Program of the Department of Agriculture (DA), the PSA-BAS conducted the 2013 Costs and Returns Survey of Garlic Production.
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