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Marketing Costs Structureissn -2012-0389 Bureau of Agricultural Statistics White Corn

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Marketing Costs Structureissn -2012-0389 Bureau of Agricultural Statistics White Corn MARKETING COSTS STRUCTUREISSN -2012-0389 BUREAU OF AGRICULTURAL STATISTICS WHITE CORN DECEMBER 2011 Department of Agriculture BUREAU OF AGRICULTURAL STATISTICS Ben-Lor Bldg., 1184 Quezon Ave., Quezon City Agricultural Marketing Statistics Analysis Division (AMSAD) Telefax: 376-6365 [email protected] Department of Agriculture http://bas.gov.ph BUREAU OF AGRICULTURAL STATISTICS MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN TERMS OF USE Marketing Costs Structure White Corn is a publication of the Bureau of Agricultural Statistics (BAS), Department of Agriculture. The BAS reserves exclusive right to reproduce this publication in whatever form. Should any portion of this publication be included in a report/article, the title of the publication and the BAS should be cited as the source of data. The BAS will not be responsible for any information derived from the processing of data contained in this publication. ISSN-2012-0389 Please direct technical inquiries to the Office of the Director Bureau of Agricultural Statistics Ben-Lor Building, 1184 Quezon Avenue Quezon City 1100 Philippines Email: [email protected] Website: www.bas.gov.ph MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN FOREWORD The Bureau of Agricultural Statistics (BAS) periodically conducts studies on Marketing Cost Structure. To date, the BAS has covered 18 agricultural commodities. Of late, and starting with yellow and white corn, the marketing cost structure studies have incorporated additional items on utilization which can serve as indicators in updating Supply Utilization Account (SUA) parameters. This particular report presents the survey results pertaining to the Marketing Cost Structure for White Corn. Two (2) other reports were generated from the study. These are the Marketing Costs Structure for Yellow Corn and Study on the Utilization of Corn. This particular report presents information on marketing practices and costs and margins incurred realized by participants involved in the marketing of white corn. This also describes the marketing flows from the producer to the consumers. These information can hopefully address the data needs of policy makers and other stakeholders in corn and related industry and all other data users. This special study has been made possible through the funding support from the Department of Agriculture (DA). The BAS welcomes comments and suggestions from the data users for the improvement of the Bureau’s data system for marketing. ROMEO S. RECIDE Director Quezon City, Philippines December 2011 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN Table of Contents Table 35a. White Corn : Number of respondents, by type of price, Philippines, 2009 Page Type of Price Marketing Participants Wholesale Buying Wholesale selling Retail Selling Total FOREWORD …………………………………………………………………………………………………………….. ii NR Percent NR Percent NR Percent NR Percent I. Introduction ……………………………………………………………………………………………… 1 Objectives …………………………………………………………………………………………….. 1 Farmer 17 17 28 39 13 34 58 27 II. Methodology ……………………………………………………………………………………………. 1 Trader 52 51 28 39 14 37 94 45 Research Site ………………………………………………………………………………………… 1 Processor 33 32 15 21 11 29 59 28 Selection of Sample Municipalities ……………………………………………………….. 2 Selection of Respondents ……………………………………………………………………… 2 Total 102 100 71 100 38 100 211 100 Reference Period ………………………………………………………………………………….. 3 III. Limitation of the Study …………………………………………………………………………….. 3 IV. Discussion of Survey Results …………………………………………………………………….. 4 Table 35b. White Corn : Number of respondents, by type of information in volume, Philippines, 2009 A. Distribution of Respondents ………………………………………………………….. 4 Type of Information in Volume B. Profile of Respondents …………………………………………………………………… 5 Marketing Participants Production Supply Demand Total Farmers ………………………………………………………………………………………. 5 NR Percent NR Percent NR Percent NR Percent Traders ……………………………………………………………………………………….. 6 Farmer 8 10 6 6 12 12 26 10 Processors …………………………………………………………………………………… 7 C. Marketing Practices ……………………………………………………………………….. 7 Trader 25 31 30 32 30 30 85 31 1. Procurement Practices ……………………………………………………………. 7 Processor 47 59 57 61 57 58 161 59 a) Mode of Procurement ……………………………………………………… 8 Total 80 100 93 100 99 100 272 100 b) Term of Payment ……………………………………………………………… 8 c) Price Setting …………………………………………………………………….. 9 2. Distribution Practices ……………………………………………………………… 9 a) Mode of Distribution ………………………………………………………... 9 Table 35c. White Corn : Number of repondents, by source, Philippines, 2009 b) Term of Payment ……………………………………………………………… 9 Marketing Participants c) Price Setting …………………………………………………………………….. 10 Source of Market Information Farmer Trader Processor Total D. Commodities Handled by Traders ………………………………………………….. 11 NR Percent NR Percent NR Percent NR Percent E. Processed Products Handled by Processors ……………………………………. 11 Other Farmers 37 56.92 37 11.67 F. Geographic Flow ……………………………………………………………………………. 12 Other Traders 13 20.00 101 59.76 13 15.66 127 40.06 G. Marketing Channels ……………………………………………………………………….. 15 Other Processors 43 51.81 43 13.56 H. Marketing Costs and Margins ………………………………………………………… 19 Gov. Extension Worker 3 4.62 3 1.78 2 2.41 8 2.52 I. Other Marketing Informations ……………………………………………………….. 40 Buyers w/in the Prov. 5 7.69 33 19.53 10 12.05 48 15.14 a) Peak and Lean Season of Trading ……………………………………………. 40 b) Marketing Information Needs and Sources …………………………….. 40 Buyers fr. Others Prov. 17 10.06 6 7.23 23 7.26 J. Problems/Constraints Encountered ……………………………………………….. 43 Radio Broadcast 2 1.18 1 1.20 3 0.95 a) Farmers …………………………………………………………………………………… 43 Bulletin Boards 1 1.54 2 1.18 3 0.95 b) Traders ……………………………………………………………………………………. 43 Others 6 9.23 11 6.51 8 9.64 25 7.89 c) Processors ………………………………………………………………………………. 43 Total 65 100 169 100 83 100 317 100 V. Definition of Terms Used in the Study ……………………………………………………… 44 VI. Annexes …………………………………………………………………………………………………... 47 86 i MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN List of Tables Table 34b. White Corn (Matured) : Average marketing costs incurred by type of traders, Sarangani, 2009 MATURED CORN TRADER Table No. Page ITEM BA MA MA/MD MA/LD PA/MD RA/LD RETAILER 1 White Corn: Percent distribution of respondents, by province, peso per sack of 50 kilograms A. Cash Costs 39.94 44.00 55.48 33.60 48.65 34.03 46.99 Philippines, 2009 …………………………………………………………………………………… 4 a.1 Labor Cost 15.22 20.14 16.75 14.95 9.31 10.52 12.59 Procurement 2 White Corn: Profile of farmer-respondents, selected provinces, Drying (solar) 10.71 8.00 6.67 Philippines, 2009 ………………………………………………………………………………..… 5 Weighing 1.35 1.00 1.00 1.00 1.60 Loading 1.00 1.00 1.00 1.49 Unloading 1.00 1.00 1.00 1.36 1.49 3 White Corn: Profile of trader-respondents, selected provinces, Distribution Hauling 2.47 3.75 Philippines, 2009 …………………………………………………………………………………. 6 Weighing 2.70 1.00 1.02 Bagging 1.00 1.02 4 White Corn: Profile of processor-respondents, selected provinces, Loading 3.64 1.07 1.00 1.00 1.36 1.50 1.02 Unloading 2.25 1.00 1.50 1.02 Philippines, 2009…………………………………………………………………………..……… 7 Salaries/Wages 2.81 5.36 1.75 4.29 5.00 4.54 4.75 5 White Corn: Procurement practices of traders and processors, selected a.2 Transportation Cost 11.98 0.00 30.24 10.05 30.19 20.35 19.40 Vehicle rental provinces, Philippines, 2009 ………………………………………………………………… 8 Procurement 11.43 25.00 13.20 Distribution 9.17 11.78 6.88 20.35 6 White Corn: Distribution practices of farmers and traders, selected Private vehicle Gas and Oil Provinces, Philippines, 2009………………………………………………………………… 10 Procurement 3.45 2.86 6.20 Distribution 2.81 3.57 3.17 2.33 7 White Corn: Distribution of trader-respondents, by commodities a.3 Material Cost 7.30 11.17 6.70 6.52 6.94 3.03 13.36 Sack 7.05 6.44 4.19 4.00 6.73 3.00 11.47 handled, selected provinces, Philippines, 2009……………….……………….….. 11 Plastic bag (small) 4.40 2.31 1.07 Newspaper 0.04 0.12 0.04 0.02 0.01 a/ 0.78 8 White Corn: Distribution of processor-respondents, by type of Tying materials 0.21 0.21 0.16 2.50 0.20 0.02 0.06 Processed products, selected provinces, Philippines, 2009…………….….. 11 a.4 Other Operating Expenses 5.45 12.69 1.79 2.08 2.21 0.13 1.64 Repairs and maintenance 0.07 1.85 1.41 a/ 0.01 0.04 9 White Corn (Green): Average marketing costs and margins by type of Fees and rentals 4.41 9.01 1.20 0.29 1.90 0.11 1.34 Telephone and other communication expenses 0.96 0.64 0.31 0.01 0.26 marketing participants, Isabela, 2009………………………………………………….. 20 Meals and snacks 1.19 0.58 0.39 10 White Corn (Matured): Average marketing costs and margins by type B. Imputed Costs 9.78 17.55 18.19 14.17 1.25 1.42 16.92 Depreciation of marketing participants, Isabela, 2009 ……………….………………………..….. 21 Supplies/Equipment 2.62 1.30 5.62 0.43 1.25 0.08 4.07 Facilities 0.43 a/ 3.14 11 White Corn (Green): Average marketing costs and margins by type of Transport vehicles 6.74 9.55 12.57 12.81 1.34 9.71 Unpaid Labor marketing participants, Iloilo, 2009…………………………………………………..….. 22 Procurement 6.70 0.94 12 White Corn (Matured): Average marketing costs and margins by type of Total Mktg. Cost, TMC (cash + imputed) 49.72 61.55 73.66 47.77 49.90 35.45 63.91 marketing participants, Pangasinan, 2009…………………………..…………….… 23 Wholesale Buying Price, WBP 404.00 516.67 523.75 505.00 550.00 490.00 737.50 Wholesale Selling Price, WSP 498.50 590.00 737.50 550.00 563.50 675.00 Retail Selling Price, RSP 862.50 13 White Corn (Green): Average marketing costs and margins by type of Total Cost, TC (TMC + WBP) 453.72 578.22 597.41 552.77 599.90 525.45 801.41 Margin(WSP - TC), (RSP - TC) 44.78 11.78 140.09 -2.77 -36.40 149.55 61.09 marketing participants, Iloilo, 2009………………………………………………………. 24 a/ less than 0.01 ii 85 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN List of Tables (Continued) Table 34a.
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