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 Philippines, 2009 …………………………………………………………………………………. 6 Hauling 2.47 3.75 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 handled, selected provinces, Philippines, 2009……………….……………….….. 11 Sack 7.05 6.44 4.19 4.00 6.73 3.00 11.47 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 marketing participants, Iloilo, 2009………………………………………………………. 24 Margin(WSP - TC), (RSP - TC) 44.78 11.78 140.09 -2.77 -36.40 149.55 61.09 a/ less than 0.01

ii 85 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

List of Tables (Continued) Table 34a. White Corn (Green) : Average marketing costs incurred by type of marketing participants, Sarangani, 2009 Table No. Page GREEN CORN TRADER PROCESSOR

ITEM INFORMAL PA RETAILER 14 White Corn (Green): Average marketing costs and margins by type of PROCESSOR marketing participants, Cebu, 2009……………………………………………………… 25 peso per sack of 50 kilograms A. Cash Costs 40.53 44.08 25.91 15 White Corn (Matured): Average marketing costs and margins by type of marketing participants, Cebu, 2009………………………………………………….….. 26 a.1 Labor Cost 12.30 9.87 Salaries/Wages 12.30 9.87 16 White Corn (Matured): Average marketing costs and margins by type of marketing participants, Bukidnon, 2009………………………………………………. 27 a.2 Transportation Cost 18.23 24.08 25.91 Private vehicle 17 White Corn (Green): Average marketing costs and margins by type of Gas and Oil marketing participants, South Cotabato, 2009……………………….……………. 28 Procurement 25.91 Distribution 18.23 24.08 18 White Corn (Matured): Average marketing costs and margins by type of

a.3 Material Cost 10.00 10.13 marketing participants, South Cotabato, 2009……………………….…….……… 29

Sack 10.00 7.34 19 White Corn (Green): Average marketing costs and margins by type of Plastic bag (small) 2.79 B. Imputed Costs 5.58 6.38 marketing participants, Metro Manila, 2009…………………………………..…… 30

Depreciation Supplies/Equipment 5.58 3.53 20 White Corn (Matured): Average marketing costs and margins by type of Facilities 1.06 traders, Metro Manila, 2009…………………………………………………….……….… 31

Transport vehicles 1.79 21 White Corn (Matured): Average marketing costs and margins by type of Total Mktg. Cost, TMC (cash + imputed) 46.11 50.46 25.91 marketing participants, Ilocos Norte, 2009 ……………….…………………….…… 32

Wholesale Buying Price, WBP 625.00 1400.00 1316.67 22 White Corn (Green): Average marketing costs and margins by type of Wholesale Selling Price, WSP 850.00 traders, Bulacan, 2009 ………………………………………………….….…….…………… 33 Retail Selling Price, RSP 1700.00 Total Cost, TC (TMC + WBP) 671.11 1450.46 23 White Corn (Matured): Average marketing costs and margins by cornick Margin (WSP - TC), (RSP - TC) 178.89 249.54 processor, Bulacan, 2009 …………………………………………………………………….. 34

24 White Corn (Green): Average marketing costs and margins by type of marketing participants, Batangas, 2009 ………………………………………………. 35

25 White Corn (Matured): Average marketing costs and margins by type of marketing participants, Cagayan de Oro City, 2009 …………………………….. 36

26 White Corn (Matured): Average marketing costs and margins by type of marketing participants, Davao City, 2009 ……………………………………………. 37

84 iii MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 33a. White Corn (Matured) : Average marketing costs incurred by type of marketing participants, Davao City, 2009 MATURED CORN List of Tables (Continued) TRADER PROCESSOR ITEM COMMERCIAL PA-MD PA-LD RA-LD IRA-LD RETAILER CORN MILLER Table No. Page peso per sack of 50 kilograms A. Cash Costs 24.14 41.83 72.81 59.39 18.82 33.50

a.1 Labor Cost 7.63 16.41 27.56 14.62 13.80 12.00 Procurement 27 White Corn (Green): Average marketing costs and margins by type of Drying (solar) 2.68 participants, Saranggani, 2009……………………………………………..……………… 38 Piling 1.36 Weighing 1.60 1.45

Loading 1.60 2.91 1.50 28 White Corn (Matured): Average marketing costs and margins by type of Unloading 2.91 2.14 1.50 Distribution traders, Saranggani, 2009………………………………………………………………..….. 39 Hauling 3.71 Sorting/Classifying 4.60 29 White Corn: Marketing information needs of respondents, by type of Weighing 1.55 1.53 2.26 Bagging 1.64 information, selected provinces, Philippines, 2009………………………………. 41 Loading 2.23 1.20 Unloading 2.51 1.20 Salaries/Wages 4.44 7.59 5.15 9.22 11.54 12.00

a.2 Transportation Cost 3.34 5.00 11.92 12.50 20.00 Vehicle Rental Procurement 12.50 Distribution 7.37 Private vehicle Gas & Oil Procurement 5.00 20.00 Distribution 3.34 4.55 Shipping Cost Distribution 28.75

a.3 Material Cost 10.85 13.41 8.87 7.44 0.77 Sack 10.70 9.72 6.87 6.25 Plastic bag (small) 3.66 0.22 1.19 0.52 Tying materials 0.03 0.03 0.10 0.06 Materials for shade* 0.01 0.20 Office supplies** 0.11 0.08 Others*** 1.60

a.4 Other Operating Expenses 2.31 7.00 24.47 24.84 4.25 1.50 Gas and oil (not used for transportation) 0.94 2.40 Repairs and maintenance 0.02 a/ 0.69 0.03 Fees and rentals 1.86 5.10 23.65 16.96 4.22 Telephone and other communication expenses 0.60 2.38 Light and water expenses 0.16 2.41 Meals and snacks 0.43 1.91 0.07 1.50

B. Imputed Costs 0.13 16.49 6.65 6.17 1.49 Depreciation Supplies/Equipment 0.13 16.49 6.65 6.17 1.49 Facilities Transport vehicles

Total Mktg. Cost, TMC (cash + imputed) 24.27 58.32 79.46 65.56 20.31 33.50

Wholesale Buying Price, WBP 550.00 550.00 652.00 818.50 1025.00 550.00 Wholesale Selling Price, WSP 650.00 750.00 900.00 881.00 Retail Selling Price, RSP 1175.00 Total Cost, TC (TMC + WBP) 574.27 608.32 731.46 884.06 1045.31 Margin (WSP - TC), (RSP - TC) 75.73 141.68 168.54 -3.06 129.69 *Materials for shade includes tent **Office supplies include receipt, mask and notebook ***Others include screen and bamboo strips a/ less than 0.01

iv 83 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 32a. White Corn (Matured) : Average marketing costs incurred by type of marketing List of Figures participants, Cagayan De Oro City, 2009 MATURED CORN TRADER PROCESSOR Figure No. Page ITEM FOOD MA RA-LD RETAILER PROCESSOR* peso per sack of 50 kilograms 1 White Corn: Percent distribution of respondents, by type, selected A. Cash Costs 46.73 24.91 30.41 19.17 provinces, Philippines, 2009…………………………………………..……………………. 4

a.1 Labor Cost 13.60 18.93 16.44 Procurement 2 Isabela, Geographic Flow of White Corn, 2009……………………………..……… 12 Drying (solar) 2.25 Weighing 1.50 3 Pangasinan, Geographic Flow of White Corn, 2009…………………….……….. 12 Loading 1.60 1.73 Unloading 1.73 4 Iloilo, Geographic Flow of White Corn, 2009………………………………..………. 13 Distribution Loading 1.73 Salaries/Wages 12.00 10.00 16.44 5 Cebu, Geographic Flow of White Corn, 2009…………………………………..…… 13

a.2 Transportation Cost 24.00 19.17 6 Bukidnon, Geographic Flow of White Corn, 2009………………………………… 14 Vehicle rental Procurement 19.17 7 South Cotabato, Geographic Flow of White Corn, 2009……………….………. 14 Distribution 24.00

a.3 Material Cost 7.27 2.16 4.53 8 Isabela, Marketing Channels of White Corn, 2009…………………………..…… 16 Sack 7.20 2.03 Plastic bag (small) 4.53 9 Pangasinan, Marketing Channels of White Corn, 2009………………………… 16 Tying materials 0.07 0.13 10 Iloilo, Marketing Channels of White Corn, 2009…………………………………… 17 a.4 Other Operating Expenses 1.86 3.83 9.44

Gas and oil (not used for transportation) 0.06 Repairs and maintenance 0.24 11 Cebu, Marketing Channels of White Corn, 2009…………………………………… 17 Fees and rentals 0.96 0.78 9.20 Telephone and other communication expenses 0.30 0.49 12 Bukidnon, Marketing Channels of White Corn, 2009…………….……………… 18 Agent's commission 2.50 Meals and snacks 0.60 13 South Cotabato, Marketing Channels of White Corn, 2009……………..…… 19

B. Imputed Costs 0.42 27.72 14.46 Depreciation 14 White Corn: Peak and Lean Season of Trading, selected provinces, Supplies/Equipment 0.42 2.96 14.46 Philippines, 2009……………………………………………………………………….………… 40 Facilities 23.64 Transport vehicles 1.13

Total Mktg. Cost, TMC (cash + imputed) 47.15 52.64 44.87 19.17

Wholesale Buying Price, WBP 450.00 475.00 881.25 550.00 Wholesale Selling Price, WSP 550.00 565.00 Retail Selling Price, RSP 1150.00 Total Cost, TC (TMC + WBP) 497.15 527.64 926.12 Margin (WSP - TC), (RSP - TC) 52.85 37.36 223.88 *corn coffee beverages processor

82 v MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

List of Annexes Table 31a. White Corn (Green) : Average marketing costs incurred by type of marketing participants, Batangas, 2009 GREEN CORN TRADER PROCESSOR

Table No. Page ITEM INFORMAL BA MA-LD PA PA-MD RA-LD PROCESSOR peso per sack of 50 kilograms 1 White Corn: Number of respondents, selected provinces, A. Cash Costs 61.17 54.26 37.27 73.82 43.43 48.31 Philippines, 2009………………………………………….……………………………………… 49 a.1 Labor Cost 12.87 28.20 33.86 19.72

Procurement 1a White Corn: Number of respondents, by type of marketing participants Hauling 4.86 Husking 5.00 5.20 and by types of corn, selected provinces, Philippines, 2009………….……… 49 Shelling (manual) 6.00 5.80 Sorting/Classifying 2.86 3.00 2.80 Weighing 2.60 2.40 2 White Corn: Number of farmer-respondents, by tenurial status, selected Bagging 2.86 2.50 provinces, Philippines, 2009………………………………………………………………… 50 Loading 2.86 4.55 4.17 3.57 Unloading 4.55 3.57 Distribution 3 White Corn: Number of farmer-respondents, by length of farming Sorting/Classifying 2.35 Bagging 2.35 experience, selected provinces, Philippines, 2009…………………………..…… 50 Loading 4.17 Unloading 4.29 4.47 4 White Corn: Number of farmer-respondents, by source of capital for Salaries/Wages 7.89

marketing, selected provinces, Philippines, 2009………………………….……… 50 a.2 Transportation Cost 31.24 41.60 33.33 16.43 48.31 Vehicle Rental Procurement 10.41 22.88 33.82 5 White Corn: Number of trader-respondents, selected provinces, Distribution 20.83 18.72 33.33 Philippines, 2009…………………………………………………………………………….…… 51 Private vehicle Gas & Oil

Procurement 16.43 6 White Corn: Number of trader-respondents, by type of business a.3 Material Cost 10.81 7.50 8.27 1.80 ownership, selected provinces, Philippines, 2009 …………………………..…… 52 Sack 9.38 6.50 8.00 Plastic bag (small) 0.27 0.40 7 White Corn: Number of trader-respondents, by source of capital for Tying materials 1.44 1.00 0.38 Materials for shade* 1.01 marketing, selected provinces, Philippines, 2009…………………….…………… 52 a.4 Other Operating Expenses 6.25 5.16 0.80 4.83 7.28 Fees and rentals 6.25 4.50 0.80 3.54 7.28 8 White Corn: Number of trader-respondents, by length of trading Telephone and other communication expenses 0.97 experience, selected provinces, Philippines, 2009………………………..……… 53 Agent's commission 0.67 Light and water expenses 0.33

9 White Corn: Number of processor-respondents, selected provinces, B. Imputed Costs 23.07 20.54 11.46 0.15 Depreciation Philippines, 2009……………………………………………………………………….………… 53 Supplies/Equipment 0.42 0.54 2.61 0.15 Facilities 1.22 10 White Corn: Number of processor-respondents, by type of business Transport vehicles 1.46 6.73 Unpaid Labor ownership, selected provinces, Philippines, 2009………………………………… 54 Procurement 21.20 20.00 Distribution 0.90

11 White Corn: Number of processor-respondents, by source of capital for Total Mktg. Cost, TMC (cash + imputed) 61.17 77.34 57.81 85.28 43.58 48.31 marketing, selected provinces, Philippines, 2009………………………….…… 54 Wholesale Buying Price, WBP 750.00 782.00 765.00 917.00 904.50 1083.33

Wholesale Selling Price, WSP 917.00 1042.00 939.50 1168.75 1012.00 12 White Corn: Number of processor-respondents, by length of experience Total Cost, TC (TMC + WBP) 811.17 859.34 822.81 1002.28 948.08 Margin (WSP - TC) 105.83 182.66 116.69 166.47 63.92 In processing business, selected provinces, Philippines, 2009 …………… 55 *Materials for shade includes umbrella

vi 81 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 30a. White Corn (Green) : Average marketing costs incurred by type of traders, Bulacan, 2009 GREEN CORN TRADER ITEM List of Annexes (Continued) MA RETAILER peso per sack of 50 kilograms A. Cash Costs 59.86 43.53 Table No. Page a.1 Labor Cost 20.45 Procurement Hauling 4.09 Distribution 13a White Corn: Number of trader-respondents, by mode of procurement, Hauling 4.09 Sorting/Classifying 4.09 selected provinces, Philippines, 2009…………………………………………………… 55 Loading 4.09 Unloading 4.09 Salaries/Wages 13b White Corn: Number of processor-respondents, by mode of procurement,

a.2 Transportation Cost 30.68 20.00 selected provinces, Philippines, 2009………….………………………………….…… 56 Vehicle rental Procurement 18.41 20.00 Distribution 12.27 14a White Corn: Number of trader-respondents, by term of payment in

a.3 Material Cost 8.73 10.61 procurement, selected provinces, Philippines, 2009………………….………… 56 Sack 8.00 Plastic bag (small) 3.56 Tying materials 0.73 14b White Corn: Number of processor-respondents, by term of payment in Others* 7.06 procurement, selected provinces, Philippines, 2009……………………..…..… 57

a.4 Other Operating Expenses 12.91 Fees and rentals 8.74 15a White Corn: Number of trader-respondents, by price setter in procurement, Telephone and other communication expenses 4.17 selected provinces, Philippines, 2009……………………………………….….……… 57 B. Imputed Costs 8.79 16.80 Depreciation Supplies/Equipment 1.82 11.80 15b White Corn: Number of trader-respondents, selected provinces, Transport vehicles 2.12 Unpaid Labor Philippines, 2009…………………………………………………………………………….…… 58 Procurement 4.85 5.00

Total Mktg. Cost, TMC (cash + imputed) 68.65 60.33 15c White Corn: Number of trader-respondents, by basis of pricing in

Wholesale Buying Price, WBP 983.33 1050.00 procurement, selected provinces, Philippines, 2009……………………...…… 59 Wholesale Selling Price, WSP 1158.33 Retail Selling Price, RSP 1200.00 Total Cost, TC (TMC + WBP) 1051.98 1110.33 15d White Corn: Number of processor-respondents, by basis of pricing in Margin (WSP - TC), (RSP - TC) 106.35 89.67 *Others include w innow and knife procurement, selected provinces, Philippines, 2009…………………………… 60

Table 30b. White Corn (Matured) : Average marketing costs incurred by 16a White Corn: Number of farmer-respondents, by mode of distribution, cornick processor, Bulacan, 2009 MATURED CORN selected provinces, Philippines, 2009…………………………………………………… 61 PROCESSOR ITEM CORNICK PROCESSOR 16b White Corn: Number of trader-respondents, by mode of distribution, peso per sack of 50 selected provinces, Philippines, 2009…………………………………………………… 61 kilograms A. Cash Costs 25.00 17a White Corn: Number of farmer-respondents, by term of payment in a.1 Labor Cost 8.33 Salaries/Wages 8.33 distribution, selected provinces, Philippines,2009……………………………… 62

a.2 Transportation Cost 8.33 Private vehicle 17b White Corn: Number of trader-respondents, by term of payment in Gas and Oil distribution, selected provinces, Philippines, 2009……………………….…… 62 Procurement 8.33

a.4 Other Operating Expenses 8.33 18a White Corn: Number of farmer-respondents, by price setter in distribution, Meals and snacks 8.33 selected provinces, Philippines, 2009…………………………………………………… 63 Total Mktng. Cost, TMC (cash + noncash) 25.00 Wholesale Buying Price, WBP 1385.00

80 vii MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

List of Annexes (Continued) Table 29a. White Corn (Matured) : Average marketing costs incurred by type of marketing participants, Ilocos Norte, 2009 MATURED CORN TRADER PROCESSOR ITEM INFORMAL CORNICK MA PA/MD PA/LD RA/LD IRA Table No. Page PROCESSOR PROCESSOR peso per sack of 50 kilograms 18b White Corn: Number of trader-respondents, by price setter in distribution, A. Cash Costs 48.76 52.13 28.11 44.69 51.77 38.12 46.22 selected provinces, Philippines, 2009…………………………………………………… 63 a.1 Labor Cost 8.28 4.00 5.51 19.68 9.71 4.26 5.30 Procurement

Hauling 0.39 2.40 18c White Corn: Number of farmer-respondents, by basis of pricing in Cleaning 3.60 Sorting/Classifying 0.52 distribution, selected provinces, Philippines, 2009……………………………… 64 Weighing 0.52 Bagging 0.26 18d White Corn: Number of trader-respondents, by basis of pricing in Loading 1.38 Unloading 1.38 distribution, selected provinces, Philippines, 2009………………….…………… 64 Distribution Hauling 1.93 7.50 19 White Corn: Number of trader-respondents, by type of commodities Loading 1.29 2.00 Unloading 1.29 2.00 handled, selected provinces, Philippines, 2009 ……………………….….……… 65 Salaries/Wages 2.10 5.51 3.42 9.71 4.26 5.30

20 White Corn: Number of processor-respondents, by type of processed a.2 Transportation Cost 14.00 9.03 5.20 34.57 33.86 32.56 Vehicle rental product, selected provinces, Philippines, 2009 ……………………………….…… 65 Procurement 14.00 28.00 30.00 26.85 Private vehicle Gas and Oil 21 White Corn: Major sources and destination, selected provinces, Procurement 9.03 5.20 6.57 3.86 5.71 Philippines, 2009 ……………………...... …… 66 a.3 Material Cost 13.53 10.30 0.59 7.00 0.50 Sack 8.50 10.00 7.00 22a White Corn (Green): Average marketing costs incurred by type of Plastic bag (small) 0.77 0.50 marketing participants, Isabela, 2009………………………………………..………… 67 Newspaper Tying materials 4.26 0.30 0.59 a/

22b White Corn (Matured): Average marketing costs incurred by type of a.4 Other Operating Expenses 26.95 23.83 12.98 12.81 7.49 7.86 marketing participants, Isabela, 2009…………………………………………..……… 68 Gas and oil (not used for transportation) 5.80 Repairs and maintenance 0.02 Fees and rentals 24.55 12.63 10.98 6.03 23a White Corn (Green): Average marketing costs incurred by type of Telephone and other communication expenses 1.62 1.40 2.00 1.77 0.34 marketing participants, Pangasinan, 2009…………………………………….……… 69 Meals and snacks 0.77 4.00 5.00 7.14 7.86

B. Imputed Costs 18.79 13.92 17.17 10.60 6.84 23b White Corn (Matured): Average marketing costs incurred by type of Depreciation marketing participants, Pangasinan, 2009………………………………………….… 70 Supplies/Equipment 11.46 7.88 12.49 1.38 0.03 Facilities 3.77 1.44 0.36

Transport vehicles 3.56 1.03 4.67 7.79 6.45 24a White Corn (Green): Average marketing costs incurred by type of Unpaid Labor Procurement 2.00 marketing participants, Iloilo, 2009……………………………………………..….…… 71 Distribution 3.00

25a White Corn (Green): Average marketing costs incurred by type of marketing Total Mktg. Cost, TMC (cash + imputed) 67.55 66.05 45.28 55.29 58.61 38.12 46.22

participants, Cebu, 2009………………………………………….…………………………… 72 Wholesale Buying Price, WBP 1400.00 1250.00 1258.50 1625.00 1383.38 1300.00 1466.67 Wholesale Selling Price, WSP 1500.00 1383.38 1383.50 1750.00 1504.23 Total Cost, TC (TMC + WBP) 1467.55 1316.05 1303.78 1680.29 1441.99 Margin (WSP - TC) 32.45 67.33 79.72 69.71 62.24 a/ less than 0.01

viii 79 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 28b. White Corn (Matured) : Average marketing costs incurred by List of Annexes (Continued) type of traders, Metro Manila, 2009 MATURED CORN TRADER Table No. Page

ITEM PA-MD RETAILER

peso per sack of 50 25b White Corn (Matured): Average marketing costs incurred by type of kilograms marketing participants, Cebu, 2009……………………………………………………… 73 A. Cash Costs 78.08 80.35 26a White Corn (Matured): Average marketing costs incurred by type of a.1 Labor Cost 21.00 5.75 Distribution marketing participants, Bukidnon, 2009…………………………………….………… 74

Loading 9.00 Unloading 9.00 27a White Corn (Green): Average marketing costs incurred by type of Salaries/Wages 3.00 5.75 marketing participants, South Cotabato, 2009………………….……….………… 75

a.1 Transportation Costs 31.25 37.50 27b White Corn (Matured): Average marketing costs incurred by type of Vehicle Rental Procurement 37.50 marketing participants, South Cotabato, 2009……………………….………..….. 76

Distribution 31.25 28a White Corn (Green): Average marketing costs incurred by type of a.2 Material Costs 1.50 9.10 marketing participants, Metro Manila, 2009…………………………….….……… 77 Sack 7.50 Plastic bag (small) 1.50 0.80 28b White Corn (Matured): Average marketing costs incurred by type of Office supplies* 0.80 traders, Metro Manila, 2009…………………………………………………….…….…… 78

a.4 Other Operating Expenses 24.33 28.00 Fees and rentals 10.05 15.00 29a White Corn (Matured): Average marketing costs incurred by type of Telephone and other communication expenses 14.29 13.00 traders, Ilocos Norte, 2009……………………...... …… 79

B. Imputed Costs 37.39 30a White Corn (Green): Average marketing costs incurred by type of Depreciation traders, Bulacan, 2009………………………………………..………………………..……… 80 Supplies/Equipment 5.27 Facilities 7.94 30b White Corn (Matured): Average marketing costs incurred by cornick Transport vehicles 20.98 Unpaid Labor processor, Bulacan, 2009……………………………………………………………..……… 80 Procurement 3.20 31a White Corn (Green): Average marketing costs incurred by type of Total Mktg. Cost, TMC (cash + imputed) 115.47 80.35 marketing participants, Batangas, 2009……………………………………….……… 81

Wholesale Buying Price, WBP 900.00 1020.00 32a White Corn (Matured): Average marketing costs incurred by type of Wholesale Selling Price, WSP 1150.00 Retail Selling Price, RSP 1280.00 marketing participants, Cagayan De Oro City, 2009……………………………… 82

Total Cost, TC (TMC + WBP) 1015.47 1100.35 Margin (WSP - TC), (RSP - TC) 134.53 179.65 33a White Corn (Matured): Average marketing costs incurred by type of marketing participants, Davao City, 2009…………………………………..….…… 83

34a White Corn (Green): Average marketing costs incurred by type of participants, Sarangani, 2009………………………………….…………………………… 84

78 ix MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 28a. White Corn (Green) : Average marketing costs incurred by type of marketing participants, Metro Manila, List of Annexes (Continued) 2009 GREEN CORN TRADER PROCESSOR Table No. Page ITEM INFORMAL MA-LD RA-LD IRA IRA-LD RETAILER PROCESSOR peso per sack of 50 kilograms 34b White Corn (Matured): Average marketing costs incurred by type of A. Cash Costs 82.94 74.90 83.61 99.76 87.24 15.43 traders, Sarangani, 2009………………………………………………………………….…… 85 a.1 Labor Cost 37.65 39.50 26.00 36.72 22.17

Procurement 35a White Corn: Number of respondents, by type of price, Hauling 4.50 Piling 3.00 1.02 Philippines, 2009…………………………………………………………….…………………… 86 Bagging 3.00 2.05 Loading 10.00 6.00 6.00 7.46 10.00 35b White Corn: Number of respondents, by type of information in volume, Unloading 10.00 5.00 6.00 7.46 10.00 Distribution Philippines, 2009………………….……………………………………………………………… 86 Shelling (mechanical) 2.17 Piling 4.50 0.62 35c White Corn: Number of respondents, by source, Philippines, 2009…..…. 86 Bagging 4.50 2.49 Unloading 6.00 6.53 36a White Corn: Problem encountered by corn farmers, selected provinces, Salaries/Wages 17.65 9.00 8.00 9.09 Philippines, 2009………………………………………………………………..…….….……… 87 a.2 Transportation Cost 35.29 21.00 48.00 48.58 31.42 15.43 Vehicle Rental 36b White Corn: Problem encountered by corn traders, selected provinces, Procurement 28.00 32.67 31.42 15.43 Private vehicle Philippines, 2009 …………………………………………………..……………………….…… 87 Gas & Oil Procurement 35.29 21.00 20.00 15.91 36c White Corn: Problem encountered by corn processors, selected a.3 Material Cost 10.00 9.00 8.27 6.17 31.90 provinces, Philippines, 2009……………………...... …… 87 Sack 10.00 6.47 6.10 12.03

Plastic bag (small) 9.00 8.91 Tying materials 0.80 0.06 Materials for shade* 1.00 0.01 10.10 Others** 0.85

a.4 Other Operating Expenses 5.40 1.33 8.30 1.74 Fees and rentals 5.40 1.33 4.41 1.74 Telephone and other communication expenses 3.89

B. Imputed Costs 6.00 14.15 3.15

Depreciation Supplies/Equipment 6.00 10.74 3.15

Unpaid Labor Procurement 3.41

Total Mktg. Cost, TMC (cash + imputed) 82.94 80.90 97.76 99.76 90.39 15.43

Wholesale Buying Price, WBP 900.00 700.00 1300.00 1025.00 1250.00 1162.50 Wholesale Selling Price, WSP 1050.00 850.00 1500.00 1200.00 Retail Selling Price, RSP 1500.00 Total Cost, TC (TMC + WBP) 982.94 780.90 1397.76 1124.76 1340.39 Margin (WSP - TC), (RSP - TC) 67.06 69.10 102.24 75.24 159.61 *Materials for shade includes umbrella **Others include w innow and banana leaves

x 77 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 27b. White Corn (Matured) : Average marketing costs incurred by type of Marketing Costs Structure for White Corn marketing participants, South Cotabato, 2009 MATURED CORN ITEM TRADER FARMER MA-LD PA-LD I. Introduction peso per sack of 50 kilograms A. Cash Costs 20.10 43.15 58.16 The demand for information on corn extends beyond production and prices. a.1 Labor Cost 8.09 20.02 Procurement Requests for data on marketing and utilization of corn have been increasing over time. In Hauling 2.31 1.50 response to these concerns, the BAS conducted the Survey on Corn Marketing and Drying (solar) 5.00 Utilization. The survey disaggregated data for yellow and white corn. The marketing Piling 1.16 Weighing 1.16 1.50 aspect of the survey will particularly cover data on marketing costs while the utilization Loading 1.52 part would generate data that can update selected parameters used in the Supply and Unloading 1.50 Distribution Utilization Accounts of the Bureaus. Weighing 1.50 Loading 1.16 1.50 This particular report focuses on the results of the survey on the marketing of Salaries/Wages 2.31 6.00 White Corn. Parts I to III provide the background information for the study while Part IV a.2 Transportation Cost 9.60 7.58 8.47 provides the results. Vehicle Rental Distribution 9.60 Private vehicle Objectives Gas & Oil Procurement 3.34 2.67 Distribution 4.24 5.80 The general objective of the study is to analyze the marketing system for white corn.

a.3 Material Cost 10.50 8.60 16.34 Specifically it aims to: Sack 7.50 8.24 11.16 Tying materials 0.50 0.36 0.33 Materials for shade* 2.50 4.85 a) Identify the key players in marketing and determine the existing distribution system in major supply and demand areas. a.4 Other Operating Expenses 18.88 13.33 b) Determine the market costs and margins of white corn; and Repairs and maintenance 0.03 Fees and rentals 18.80 13.33 c) Identify the problems related to marketing of white corn. Telephone and other communication expenses 0.05

B. Imputed Costs 5.25 2.57 8.28 II. Methodology Depreciation Supplies/Equipment 5.25 1.91 2.97 Facilities 0.79 1.75 Research Site Transport vehicles 0.57 3.56 The study covered six (6) corn supply provinces and seven (7) demand Total Mktg. Cost, TMC (cash + imputed) 25.35 45.71 66.44 provinces/areas. The supply provinces were Isabela, Pangasinan, Cebu, Iloilo, Bukidnon Wholesale Buying Price, WBP 400.00 487.50 and South Cotabato. The selection of major supply areas was based on percentage Wholesale Selling Price, WSP 531.00 660.00 Total Cost, TC (TMC + WBP) 445.71 553.94 contribution to production of both yellow and white corn in the country. The selection Margin (WSP - TC) 85.29 106.06 process, conducted two dimensions namely: the contribution of each province to total *Materials for shade includes trapal corn production within the island and second, the contribution of each province to total corn production for the whole country.

76 1 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

The demand provinces identified were Metro Manila, Ilocos Norte, Bulacan, Table 27a. White Corn (Green) : Average marketing costs incurred by type of marketing participants, South Batangas, Iloilo, Cebu, Cagayan de Oro City, Davao City and Sarangani. These Cotabato, 2009 GREEN CORN provinces/cities were selected based on secondary information on the presence of corn TRADER PROCESSOR ITEM INFORMAL traders, processors and hog and poultry raisers who processed and utilized large volume MA MA-LD PA/MD PA-LD PROCESSOR of corn. peso per sack of 50 kilograms A. Cash Costs 44.68 35.46 16.43 30.58 30.00 Selection of Sample Municipalities a.1 Labor Cost 2.00 5.12 1.54 Procurement The five (5) sample municipalities for each supply area were selected as follows: Loading 1.54 Distribution Hauling 3.87 1. The lists of producing municipalities for both yellow and white corn were Loading 2.00 1.25

prepared. Each list was arranged in descending order according to area a.2 Transportation Cost 20.54 21.25 6.00 20.00 30.00 planted. Vehicle Rental Procurement 6.25 6.25 5.00 30.00 2. From the lists, contribution of yellow and white corn to the total area planted Distribution 15.00 15.00 by municipality for each province was determined. The results served as basis Private vehicle Gas & Oil for allocating five (5) municipalities for each type of corn. For example, if Procurement 6.00 yellow corn accounted for 60%, then three (3) municipalities were covered by Distribution 14.29

the survey. Correspondingly, the remaining two (2) municipalities were a.3 Material Cost 16.62 8.50 8.30 7.76 covered in the survey for white corn. Sack 7.05 8.50 8.30 6.92 Tying materials 0.29 0.83 Materials for shade* 9.29 Selection of Respondents a.4 Other Operating Expenses 5.52 0.59 2.13 1.28 Fees and rentals 1.89 0.30 1.28 Farmers Telephone and other communication expenses 0.77 0.30 Meals and snacks 2.86 2.13 Corn farmers who actually sold at least 50 percent of their produce in their last B. Imputed Costs 14.50 0.32 18.93 0.11 harvest during the reference period were chosen as sample respondents in the identified Depreciation Supplies/Equipment 2.44 0.32 1.85 0.11 sample municipalities. At least six (6) farmers were interviewed in each sample Facilities 4.49 municipality. Transport vehicles 7.57 Unpaid Labor Procurement 17.08 Traders and Processors Total Mktg. Cost, TMC (cash + imputed) 59.17 35.79 35.35 30.69 30.00 The forward and backward tracing techniques were adopted in identifying the Wholesale Buying Price, WBP 437.50 250.00 300.00 250.00 500.00 marketing participants in the sample provinces. Forward tracing was used to determine Wholesale Selling Price, WSP 650.00 400.00 500.00 500.00 Total Cost, TC (TMC + WBP) 496.67 285.79 335.35 280.69 the market outlets and destination points based on information given by farmers and Margin (WSP - TC) 153.33 114.21 164.65 219.31 traders. Backward tracing was employed to track down suppliers of traders. The processors *Materials for shade includes trapal also helped in validating the information gathered from the earlier respondents.

2 75 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 26a. White Corn (Matured): Average marketing costs incurred by type of marketing At the farm level, the survey team listed the traders and processors identified by the participants, Bukidnon, 2009 farmer-respondents as buyers of their produce. Other key informants in the areas provided MATURED CORN TRADER PROCESSOR information on the marketing participants operating in the areas. A minimum of three (3) ITEM FARMER PA/LD RA/LD FEED MILLER and maximum of five (5) respondents for each type of traders and processors were peso per sack of 50 kilograms considered. A. Cash Costs 30.39 60.69 30.50 32.89 A structured questionnaire was used for each type of marketing participants- farmer, a.1 Labor Cost 1.02 22.07 9.73 22.22 Procurement trader and processor. Drying (solar) 5.00 Piling 1.67 Weighing 2.17 1.67 Reference Period Bagging 2.36 Loading 2.36 Unloading 2.15 1.17 The surveys in Luzon provinces were conducted in August 2009 while those in Distribution Weighing 1.51 Visayas and Mindanao provinces were conducted from October to November 2009. The Loading 1.02 1.51 1.17 reference period varied across island groups due to different harvesting and trading Salaries/Wages 5.02 4.07 22.22 schedules for corn. a.2 Transportation Cost 20.28 13.46 6.50 10.67 Vehicle rental The reference period in Luzon for farmers was the last completed marketing Distribution 20.28 Private vehicle transaction for their last completed harvest in January-July 2009. For traders and Gas and Oil Procurement 5.29 2.99 10.67 processors, it was the completed marketing transaction within January - July 2009. Distribution 8.17 3.51 For Visayas and Mindanao provinces, the reference period for farmers was the last a.3 Material Cost 6.58 9.35 3.93 Sack 6.18 9.00 3.90 completed marketing transaction done on their last completed harvest in August- Newspaper a/ November 2009. The completed marketing transaction within August-November 2009 was Tying materials 0.40 0.35 0.02 the reference period for traders and processors. a.4 Other Operating Expenses 2.50 15.80 10.34 Repairs and maintenance 0.63 Fees and rentals 15.03 5.47 III. Limitation of the Study Telephone and other communication expenses Agent's commission 4.25 Meals and snacks 2.50 0.14 0.62 There were few corn traders interviewed because the study was conducted after B. Imputed Costs 0.27 15.77 8.59 the peak harvesting and trading period in corn producing provinces in Luzon. Some corn Depreciation traders in Mindanao also opted to reduce their procurement of white corn because of the Supplies/Equipment 3.03 1.33 Facilities 5.04 0.06 reduction of demand in “corn eating provinces” due to ample supply of NFA rice in the Transport vehicles 7.70 7.20 Unpaid Labor market. Distribution 0.27 The supply of yellow corn in the local market also contributed to the shifting of Total Mktg. Cost, TMC (cash + imputed) 30.66 76.45 39.09 32.89 other corn traders handling both yellow and white corn to other commodities. For these Wholesale Buying Price, WBP 531.67 610.00 625.00 reasons, the number of traders interviewed was below the expected coverage. Wholesale Selling Price, WSP 620.00 668.33 Total Cost, TC (TMC + WBP) 608.12 649.09 Margin (WSP - TC) 11.88 19.25 In the case of corn processor-respondents, the marketing information gathered a/ less than 0.01 were limited to their procurement operations and practices.

74 3 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

IV. Discussion of Survey Results Table 25b. White Corn (Matured): Average marketing costs incurred by type of marketing participants, Cebu, 2009 Table 1. White Corn: Percent distribution of MATURED CORN A. Distribution of Respondents respondents, selected provinces, Philippines, 2009 TRADER PROCESSOR ITEM FARMER COMMERCIAL IRA IRA/LD RETAILER Province Total Percent CORN MILLER  The survey covered a total of peso per sack of 50 kilograms Supply Areas 247 respondents. A. Cash Costs 48.37 77.72 59.98 77.12 37.05 Isabela 22 8.91 a.1 Labor Cost 16.28 52.13 42.61 44.38 21.55 Pangasinan 21 8.5 Procurement  In six (6) supply areas covered, Loading 1.35 1.35 Cebu accounted for 21 percent Iloilo 14 5.67 Unloading 1.81 1.35 5.17 Cebu 51 20.65 Distribution of respondents. Isabela and Hauling 2.24 Bukidnon 17 6.88 Shelling (manual) 5.94 Pangasinan accounted for Weighing 0.85 2.82 almost nine percent each. South Cotabato 18 7.29 Bagging 1.28 2.82 Loading 1.43 5.38 4.93 8.46 Demand Areas Unloading 1.69 4.83 3.03  From the seven (7) demand Metro Manila 19 7.69 Salaries/Wages 2.85 38.76 31.95 25.11 21.55 areas covered, Sarangani had Ilocos Norte 16 6.48 a.2 Transportation Cost 27.53 24.90 11.25 15.50 Vehicle rental 22 respondents or around nine Bulacan 9 3.64 Procurement 9.40 8.75 8.00 (9) percent. Distribution 21.57 12.50 Batangas 14 5.67 Private vehicle

Cagayan de Oro City 11 4.45 Gas and Oil  Of the total number of Procurement 2.50 7.50 Davao City 13 5.26 Distribution 5.97 3.00 respondents, 48 percent were Sarangani 22 8.91 a.3 Material Cost 2.82 2.79 10.27 traders. Farmers accounted for Sack 1.31 2.79 0.58 27 percent, and processors, 25 Total 247 100 Plastic bag (small) 9.69 Tying materials 1.51 a/ percent. Figure 1. White Corn: Percent distribution of a.4 Other Operating Expenses 1.74 0.69 3.33 22.47 respondents, by type, selected provinces, Repairs and maintenance 0.03 0.04 0.45  Processor-respondents includ- Philippines, 2009 Fees and rentals 0.52 2.46 14.68 Telephone and other communication expenses 0.13 0.39 1.50 ed commercial millers, food Light and water expenses 0.44 2.50 processors, feed millers and Meals and snacks 1.74 3.34

informal processors. In this B. Imputed Costs 37.86 6.60 1.15 20.60 PROCESSORS Depreciation study, the last group of 25% FARMERS Supplies/Equipment 6.91 0.07 0.47 6.37 27% respondents covered were Facilities 7.00 0.05 0.03 Transport vehicles 11.95 6.49 0.64 those who procured mostly Unpaid Labor green corn and boiled corn for Distribution 12.00 14.23

retail selling. In Iloilo and Cebu Total Mktg. Cost, TMC (cash + imputed) 86.23 84.32 61.13 97.72 37.05 this group also included those Wholesale Buying Price, WBP 1027.08 1000.00 1050.00 679.17 who processed native Wholesale Selling Price, WSP 1097.92 1090.45 delicacies. Retail Selling Price, RSP 1190.97 TRADERS Total Cost, TC (TMC + WBP) 1111.41 1061.13 1147.72 48% Margin (WSP - TC), (RSP - TC) -13.49 29.32 43.25 a/ less than 0.01

4 73 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

B. Profile of Respondents Table 25a. White Corn (Green): Average marketing costs incurred by type of marketing participants, Cebu, Table 2. White Corn: Profile of farmer-respondents,

2009 selected provinces, Philippines, 2009 GREEN CORN Farmers TRADER PROCESSOR ITEM Total Percent ITEM FARMER INFORMAL BA PA/MD PA/LD PROCESSOR  There were 66 farmers who Tenurial Status 66 100.00 peso per sack of 50 kilograms were interviewed for this study. Owner-Operator 28 42.42 A. Cash Costs 17.75 47.90 26.97 18.40 28.47 About 28 or 42 percent of Tenant 23 34.85 a.1 Labor Cost 4.17 10.19 12.18 5.91 1.33 farmers owned their farms. The Lessee 7 10.61 Procurement Sorting/Classifying 6.94 23 tenants accounted for 35 Others* 8 12.12 Loading 6.09 percent while seven (7) or 11 Unloading 6.09 5.91 Length of Farming Experience 66 100.00 Distribution percent were lessees. less than 5 4 6.06 Hauling 4.17 Bagging 3.24 5-10 15 22.73 Salaries/Wages 1.33  Thirty-five (35) of the farmer- respondents were in white corn 11-15 7 10.61 a.2 Transportation Cost 12.50 20.80 3.25 3.28 26.48 16-20 5 7.58 Vehicle rental farming for more than 21 years. Procurement 11.28 25.93 21 & above 35 53.03 Distribution 12.50 9.52 Private vehicle  Those with farming experience Source of Capital 66 100.00 Gas and Oil of 5 to 10 years accounted 15 Self-financed 59 89.39 Procurement 3.25 3.28 3.00 respondents. Five (5) farmers Borrowed 4 6.06 a.3 Material Cost 1.09 8.81 10.46 8.67 reported 16 to 20 years of Sack 1.09 1.76 5.67 4.34 Self-financed & borrowed 3 4.55 Plastic bag (small) 2.24 1.08 experience in farming. * includes CLOA, rent free, mortgage, stewardship Tying materials 2.17 3.71 2.69 Crate 2.64 1.64  Majority or 59 farmers used a.4 Other Operating Expenses 8.10 1.08 0.55 0.66 their own capital to finance Fees and rentals 1.94 0.55 Light and water expenses 2.96 their marketing operations. Meals and snacks 3.20 1.08 0.66 Four (4) farmers opted to

B. Imputed Costs 14.69 11.91 14.30 24.85 borrow while three (3) declared Depreciation that they used their own capital Supplies/Equipment 11.64 0.57 0.77 0.11 Facilities 2.46 and at the same time borrowed Transport vehicles 0.09 13.53 12.06 from friends and relatives. Unpaid Labor Procurement 7.87 12.68 Distribution 0.50 3.47

Total Mktg. Cost, TMC (cash + imputed) 32.44 59.81 41.27 43.25 28.47

Wholesale Buying Price, WBP 333.50 362.50 333.50 402.83 Wholesale Selling Price, WSP 500.00 437.50 500.00 Total Cost, TC (TMC + WBP) 393.31 403.77 376.75 Margin (WSP - TC) 106.69 33.73 123.25

72 5 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Traders Table 3. White Corn: Profile of trader-respondents, Table 24a. White Corn (Green): Average marketing costs incurred by type of marketing participants, Iloilo, selected provinces, Philippines, 2009 2009 GREEN CORN  There were 120 trader- TRADER PROCESSOR respondents. Of this number, 24 ITEM Total Percent ITEM FARMER INFORMAL BA PA-MD RETAILER were retailers while there were Type of Trading Operations 120 100.00 PROCESSOR 96 wholesalers. There were 29 Wholesaler peso per sack of 50 kilograms A. Cash Costs 29.39 55.69 27.01 41.68 traders operating at the regional BA 8 6.67 level; 67 traders at the provincial MA 9 7.50 a.1 Labor Cost 10.45 level. Procurement MA-MD 3 2.50 Harvesting 2.99 MA-LD 10 8.33 Hauling 2.23  A total of 112 or 93 percent of Sorting/Classifying 2.23 the traders operated as single PA 5 4.17 Bagging 2.99 PA-MD 14 11.67 proprietors. Five (5) traders or a.2 Transportation Cost 18.06 30.10 41.68 four (4) percent were involved in PA-LD 15 12.50 Vehicle rental Procurement 11.11 8.02 41.68 RA-LD 13 10.83 corporation and three (3) or 2.5 Distribution 6.95 5.70 percent were into partnership. IRA 7 5.83 Private vehicle Gas and Oil IRA-LD 9 7.50 Procurement 8.04  By source of capital, 89 traders Agent 3 2.50 Distribution 8.34

or 74.2 percent mentioned that Retailer 24 20.00 a.3 Material Cost 9.11 11.74 25.76 they used their own capital, Type of Business Ownership 120 100.00 Sack 8.78 10.16 13.35 while 18 traders or 15.0 percent Plastic bag (small) 1.13 1.50 Single proprietorship 112 93.33 Tying materials 0.33 0.46 0.38 borrowed. There were traders Partnership 3 2.50 Others* 10.54 (8.3 percent) who used both Corporation 5 4.17 a.4 Other Operating Expenses 2.22 3.41 1.25 owned and borrowed capital. Repairs and maintenance 0.63 Sources of Capital 120 100.00 Three (3) respondents or 2.5 Fees and rentals 2.22 0.63 Self-financed 89 74.17 Meals and snacks 3.41 percent conducted business on Self-financed & borrowed 10 8.33 consignment basis. B. Imputed Costs 7.27 25.08 23.78 28.75 Borrowed 18 15.00 Depreciation Supplies/Equipment 7.27 0.08 0.42 3.75  In terms of corn trading Others 3 2.50 Transport vehicles 0.29 experience, 48 traders or 40 Length of Trading Experience 120 100.00 Unpaid Labor Procurement 25.00 23.08 percent were in corn business for less than 5 22 18.33 Distribution 25.00 5-10 years. Twenty (20) 5-10 48 40.00 Total Mktg. Cost, TMC (cash + imputed) 7.27 54.47 79.47 55.76 41.68 respondents or 16.7 percent said 11-15 18 15.00 they were in business for 21 16-20 12 10.00 Wholesale Buying Price, WBP 555.50 441.67 800.00 433.33 Wholesale Selling Price, WSP 722.00 644.58 years and above. Traders with 21 & above 20 16.67 Retail Selling Price, RSP 1000.00 less than 5 years of corn trading Total Cost, TC (TMC + WBP) 609.97 521.14 855.76 Margin (WSP - TC), (RSP - TC) 112.03 123.44 144.24 experience were represented by *Others includes w innow 22 or 18 percent of the respondents.

6 71 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Processors Table 4. White Corn: Profile of processor- Table 23b. White Corn (Matured): Average marketing costs incurred by type of

marketing participants, Pangasinan, 2009 respondents, selected provinces, Philippines, 2009 MATURED CORN  There were 61 processors covered

TRADER PROCESSOR in the survey and 36 or 59 percent ITEM Total Percent

ITEM FARMER CORNICK of them were informal processors. Type of Processor 61 100.00 IRA-LD PROCESSOR Food processors numbered 15 or Commercial miller 8 13.11 peso per sack of 50 kilograms 25 percent of the respondents. Informal processor 36 59.02 A. Cash Costs 8.48 19.08 14.06 Eight (8) or 13 percent were Food processor 15 24.59 a.1 Labor Cost 6.67 4.06 commercial millers and two (2) or Procurement three (3) percent were feed Feed miller 2 3.28 Loading 1.50 Type of Business Ownership 61 100.00 Unloading 1.50 millers.

Distribution Single proprietorship 53 86.89 Unloading 1.00  As to type of business ownership, Partnership 3 4.92 Salaries/Wages 2.67 4.06 53 processor-respondents or 87 percent were single proprietors. Corporation 5 8.20 a.2 Transportation Cost 5.51 6.25 Private vehicle Five (5) respondents operated Source of Capital 61 100.00 Gas & Oil corpora-tions and three (3) were Self-financed 44 72.13 Procurement 1.25 6.25 Distribution 4.26 into partnership. Borrowed 5 8.20

Self-financed & borrowed 8 13.11 a.3 Material Cost 8.48 5.08  About 72 percent or 44 Sack 8.48 4.45 processor-respondents financed Consignment 4 6.56 Tying materials 0.63 their businesses with their own Length of Processing Experience 61 100.00 a.4 Other Operating Expenses 1.82 3.75 capital. There were eight (8) who less than 5 18 29.51 Repairs and maintenance 0.03 used both owned and borrowed Fees and rentals 0.11 5-10 11 18.03 Telephone and other communication expenses 0.03 capital. Five (5) were dependent 11-15 10 16.39 Light and water expenses 0.13 on borrowed capital only. The rest Meals and snacks 1.52 3.75 operated business on the basis of 16-20 6 9.84 B. Imputed Costs 2.60 0.47 consignment. 21 & above 16 26.23 Depreciation Supplies/Equipment 1.30 0.26  The survey noted that close to 30 percent or 18 processors were in corn business for Facilities 0.20 Transport vehicles 1.30 less than 5 years. Sixteen (16) were in the business for more than 21 years. Six (6) processors were engaged in corn trading for 16-20 years. Total Mktg. Cost, TMC (cash + imputed) 11.08 19.54 14.06 Wholesale Buying Price, WBP 775.00 1250.00 C. Marketing Practices Wholesale Selling Price, WSP 785.50 Total Cost, TC (TMC + WBP) 794.54 Margin (WSP - TC) -9.04 1. Procurement Practices

The marketing practices described below generally relate to procurement and distribution. These would include specific practices observed as to the mode of buying, terms of payment and setting of prices by the different marketing participants.

70 7 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

a) Mode of Procurement Table 5. White Corn: Procurement practices of Table 23a. White Corn (Green): Average marketing costs incurred by type of traders and processors, selected provinces, marketing participants, Pangasinan, 2009  There were 56 or 47 percent of Philippines, 2009 GREEN CORN the traders who picked-up corn ITEM Total Percent TRADER PROCESSOR Mode of Procurement from their suppliers. In the case ITEM FARMER INFORMAL Traders 120 100.00 PA PROCESSOR of 55 traders or 46 percent of Picked-up 56 46.67 the respondents, their suppliers Delivered 55 45.83 peso per sack of 50 kilograms Both 9 7.50 A. Cash Costs 17.33 43.27 4.33 delivered the products to their Processors 61 100.00 stalls. Only nine (9) traders or Picked-up 38 62.30 Delivered 20 32.79 a.1 Labor Cost 12.86 1.21 eight (8) percent practiced both Both 3 4.92 Procurement pick-up and delivery modes of Term of Payment Harvesting 1.08 Traders 120 100.00 Loading 1.50 procurement. Cash 90 75.00 Unloading 1.50 Credit 12 10.00 Salaries/Wages 8.78 1.21  Among processors, 38 or 62 Consignment 18 15.00 percent of them picked up corn Processors 61 100.00 a.2 Transportation Cost 9.04 2.31 Cash 48 78.69 Vehicle Rental Credit 1 1.64 from their suppliers. There were Procurement 5.00 Consignment 12 19.67 20 or 33 percent who had the Price Setting Private vehicle commodity delivered to them. Price Setter Gas & Oil The rest of the respondents Traders 120 100.00 Procurement 4.04 2.31 Trader 69 57.50 procured supplies using both Supplier 36 30.00 a.3 Material Cost 17.33 14.41 systems, i.e., pick-up and Both 15 12.50 Sack 2.00 Tying materials 0.56 delivery. Processors 61 100.00 Processor 20 32.79 Materials for shade* 11.85 Supplier 28 45.90 Crate 17.33 b) Term of Payment Both 13 21.31 Basis of Pricing a.4 Other Operating Expenses 6.96 0.81 Traders 120 100.00 Fees and rentals 1.25  There were 90 or 75 percent of Prevailing market price 46 38.33 Telephone and other communication expenses 1.44 Good quality 42 35.00 Meals and snacks 4.26 0.81 traders who paid their suppliers Quantity 7 5.83 Quality and prevailing market price 2 1.67 in cash. Eighteen (18) B. Imputed Costs 4.55 Quantity and prevailing market price 1 0.83 respondents or 15 percent Expenses incurred 3 2.50 Depreciation operated on consignment terms Harvest season 1 0.83 Transport vehicles 4.55 Mark-up 1 0.83 with their suppliers. About 10 No response 17 14.17 Total Mktg. Cost, TMC (cash + imputed) 17.33 47.82 4.33 percent or 12 traders paid on Processors 61 100.00 Prevailing market price 25 40.98 Wholesale Buying Price, WBP 537.00 617.00 credit terms. Good quality 25 40.98 Wholesale Selling Price, WSP 637.50

Quality and prevailing market price 1 1.64 Total Cost, TC (TMC + WBP) 584.82  Among processors, cash Availability in the market 3 4.92 Margin (WSP - TC) 52.68 Demand and supply 1 1.64 *Materials for shade includes tent payment was common to 48 Supplier 1 1.64 respondents or 79 percent. No response 5 8.20 Twelve (12) respondents or 20 percent paid their suppliers on a consignment basis. One (1) processor used credit in procurement.

8 69 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 22b. White Corn (Matured): Average marketing costs incurred by type of marketing participants, Isabela, 2009 MATURED CORN c) Price Setting TRADER PROCESSOR ITEM FARMER CORNICK MA-MD MA-LD PA-LD  According to the trader respondents, they usually set the price as mentioned by 69 PROCESSOR respondents or 58 percent. Thirty-six (36) traders or 30 percent claimed that price peso per sack of 50 kilograms A. Cash Costs 14.73 17.93 41.73 36.85 20.12 was set by their suppliers. Fifteen (15) of them or 13 percent reported that price was set based on agreement between trader and supplier. a.1 Labor Cost 5.00 20.82 10.79 6.82 Procurement  Hauling 1.75 Among processors, 28 or 46 percent of them claimed that suppliers set the price. Solar (drying) 7.39 5.00 Twenty (20) or 33 percent said that processors were the price setters. To 13 or 21 Piling 3.50 Sorting/Classifying 0.51 percent of the respondents, price setting was being done by both processor and Weighing 1.00 supplier. Loading 1.50 1.66 1.00 Unloading 1.50 2.28 1.00  Forty-six (46) trader-respondents or 38 percent used the prevailing market price of Salaries/Wages 2.00 2.73 3.79 6.82 white corn as basis for pricing. Good quality was the basis for pricing among 42 a.2 Transportation Cost 6.67 2.50 2.60 15.14 7.50 respondents. Vehicle Rental Procurement 10.00 Private vehicle  The remaining 15 traders or 13 percent used combinations of criteria such as quality, Gas & Oil quantity, harvest season, expenses incurred, mark-up and prevailing market price. Procurement 2.50 1.39 7.50 Distribution 6.67 2.60 3.75  Among processor-respondents, 25 or 41 percent used prevailing market price in

a.3 Material Cost 8.06 2.18 6.38 4.15 price setting. Another 25 or 41 percent set price based on the good quality of corn. Sack 4.66 1.54 5.17 4.00 Plastic bag (small) 3.10 Tying materials 0.31 0.04 0.17 0.12 2. Distribution Practices Materials for shade* 0.47 1.05 0.03 Rope 0.14 a) Mode of Distribution a.4 Other Operating Expenses 8.25 11.92 6.77 5.80 Gas and oil (not used for transportation) 0.01 Repairs and maintenance 0.20 0.01  Of the 66 farmers, 48 (73 percent) reported that buyers picked up white corn from Fees and rentals 1.60 6.11 0.04 them. There were 18 (27 percent) who delivered corn to their buyers. This practice Telephone and other communication expenses 1.20 0.57 0.06 Agent's commission 5.00 5.00 6.67 served as incentive to corn buyers who bought in bulk and it also established the Meals and snacks 0.25 0.24 a/ 5.80 trader-buyer “suki” relationship.

B. Imputed Costs 15.63 10.42 26.89 1.55  Among traders, 72 or 60 percent of them had their corn picked up by their buyers, Depreciation Supplies/Equipment 6.50 2.54 8.03 0.60 while 36 (30 percent) delivered corn to their buyers. The remaining 12 (10 percent) Facilities 6.17 1.31 0.96 practiced both pick-up and delivery modes. Transport vehicles 4.96 1.71 17.55 Unpaid Labor Distribution 4.17 b) Term of Payment

Total Mktg. Cost, TMC (cash + imputed) 30.36 28.34 68.62 38.40 20.12  There were 54 farmer-respondents or 81 percent who sold their corn on cash Wholesale Buying Price, WBP 1325.00 1456.50 1325.00 1525.00 basis. The rest were paid on consignment (11 percent) and credit terms (8 Wholesale Selling Price, WSP 1375.00 1544.50 1400.00 Total Cost, TC (TMC + WBP) 1353.34 1525.12 1363.40 percent). Margin (WSP - TC) 21.66 19.38 36.60 *Materials for shade include tarpaulin, trapal, umbrella and tent a/ less than 0.01

68 9 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

 At the trader level, 104 (81 Table 6. White Corn: Distribution practices of Table 22a. White Corn (Green) : Average marketing costs incurred by type of percent) paid in cash. Twelve farmers and traders, selected provinces, marketing participants, Isabela, 2009 (12) or nine (9) percent paid on Philippines, 2009 GREEN CORN TRADER PROCESSOR credit. Another 12 traders used ITEM Total Percent ITEM INFORMAL consignment. Mode of Distribution PA-LD RETAILER PROCESSOR Farmers 66 100.00 Picked-up 48 72.73 peso per sack of 50 kilograms c) Price Setting Delivered 18 27.27 A. Cash Costs 38.97 17.80 10.96 Traders 120 100.00 Picked-up 72 60.00 a.1 Labor Cost 11.37  Thirty (30) farmers or 45 percent Delivered 36 30.00 Procurement reported that price of their Both 12 10.00 Hauling 1.19 Term of Payment Sorting/Classifying 1.19 produce was set by themselves. Weighing 1.19 Farmers 66 100.00 Bagging 1.19 Price setting by buyers was Cash 54 81.82 Loading 1.39 Credit 5 7.58 mentioned by 28 farmers or 42 Unloading 1.39 Consignment 7 10.61 percent of the respondents. Salaries/Wages 3.83 Traders 128 100.00

Cash 104 81.25  Among trader-respondents, 87 a.2 Transportation Cost 20.76 6.76 Credit 12 9.38 Vehicle Rental or 73 percent claimed that they Consignment 12 9.38 Procurement 10.00 6.76 were the ones who set the price. Price Setting Distribution 4.86 Price Setter Own Vehicle There were 19 traders or 16 Farmers 66 100.00 Gas & Oil percent who said that price was Farmer 30 45.45 Procurement 5.90 set by buyers. The other 14 or 12 Buyer 28 42.42 Both 6 9.09 a.3 Material Cost 6.68 11.77 percent claimed that setting of No response 2 3.03 Sack 6.56 7.68 price was an agreement between Traders 120 100.00 Plastic bag (small) 4.09 buyers and traders. Trader 87 72.50 Tying materials 0.12 Supplier/buyer 19 15.83 a.4 Other Operating Expenses 0.16 6.03 4.20 Both 14 11.67  There were 28 farmers or 42 Fees and rentals 0.16 6.03 Basis of Pricing Meals and snacks 4.20 percent who reported that good Farmers 66 100.00 Prevailing market price 27 40.91 quality was the basis of setting B. Imputed Costs 4.86 Good quality 28 42.42 price. Twenty-seven (27) of them Depreciation Quality and prevailing market price 1 1.52 Supplies/Equipment 4.23 or 41 percent said that they used Quality and quantity 4 6.06 Unpaid Labor Buyer 1 1.52 prevailing market price. Distribution 0.63 Expenses incurred 5 7.58 Traders 120 100.00  Prevailing market price was the Total Mktg. Cost, TMC (cash + imputed) 38.97 22.66 10.96 Prevailing market price 44 36.67 basis of setting prices by 44 Good quality 43 35.83 Wholesale Buying Price, WBP 375.00 558.33 322.00 traders or 37 percent. Quality of Quality and prevailing market price 3 2.50 Wholesale Selling Price, WSP 500.00 corn was cited by 43 or 36 Quantity 7 5.83 Retail Selling Price, RSP 692.33 Expenses incurred 1 0.83 Total Cost, TC (TMC + WBP) 413.97 580.99 percent of respondents. Other Mark-up 2 1.67 Margin (WSP - TC), (RSP - TC) 86.03 111.34 traders reported that price was No response 20 16.67 set based on either the quantity of the commodity, mark-up price, expenses incurred or a combination of quality and 10 67 prevailing market price.

MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 21. White Corn : Major sources and destination, selected provinces, Philippines,2009 SOURCES DESTINATION PROVINCE WITHIN THE PROVINCE OUTSIDE THE PROVINCE WITHIN THE PROVINCE OUTSIDE THE PROVINCE of the commodity, mark-up price, expenses incurred or a combination of quality ISABELA Tumauini Cagayan Sta. Maria Metro Manila Sta. Maria Metro Manila San Agustine Bulacan and prevailing market price. Ilagan Quirino Cauayan Ilocos Norte Villabuena Roxas Pangasinan Echague Ilagan Santiago City Santiago City PANGASINAN Dagupan City La Union San Carlos City Tarlac Villasis Isabela Villasis Ilocos Norte D. Commodities Handled by Traders Table 7. White Corn: Distribution of trader- Pozzorubio Bulacan Binalonan Pangasinan respondents, by commodities handled, selected Binalonan Malasiqui Metro Manila Sto. Tomas Bulacan provinces, Philippines, 2009 Malasiqui  Most traders, 76 respondents San Carlos City & other corn producing municipalities or 63 percent handled corn Commodity Total Percent ILOILO Miagao Guimbal only, while 22 traders or 18 Guimbal Iloilo City Corn 76 63.33 Miagao percent sold corn, palay and Tigbauan Corn/Palay/Rice 22 18.33 CEBU Medellin Agusan Del Norte Cabadiangan Negros Oriental rice. Cebu City Davao City Palpagan Bohol Toledo City Cotabato City Minglanilla Samar, Leyte & Souther Leyte Corn/Sweet Potato/Mango/Vegetables/Fruits Bogo City Cagayan de Oro City Talisay City Siquijor  The rest of the respondents Talisay City South Cotabato Toledo City Davao /Peanut/Cassava/Copra/Onion 19 15.83 Mandaue City Lanao Norte Bogo City combined corn trading with Consolacion Samar San Antonio Corn/Rice/ Palay/Farm supplies/Feeds 2 1.67 Minglanilla San Remegio other agricultural commodities Cabadiangan Valencia Carcar Carcar inputs and groceries. Corn/Palay/Groceries 1 0.83 San Remegio Consolacion San Roque Cebu City Total 120 100 Compostela BUKIDNON Kalilangan Lanao Norte Kalilangan Cagayan de Oro City Malinao Malaybalay Cebu Impasug-ong Valencia City Agusan Norte E. Processed Products Handled by Processors Malaybalay Metro Manila Sumilao Iligan Manolo Fortich Davao City Cabanglasan Digos City  Among the processor- Table 8. White Corn: Distribution of processor- Lantapan Tagum City Wao respondents, 35 or 57 percent respondents, by type of processed products, Pangantucan Banisilan sold white corn in boiled and selected provinces, Philippines, 2009 SOUTH COTABATO Buenavista Banga Gen. Santos City broiled forms. There were 14 Surralah Tupi Sarangani Koronadal City Davao City or 23 percent whose final Polomolok Manila Processed Product Total Percent Cebu products were cornick or METRO MANILA Pampanga Quezon city Cornick/Chichacorn 14 22.95 Pangasinan Pasig chichacorn. Quezon Muntinlupa Snack Foods * 35 57.38 Batangas Marikina Corn grits/ Corn Starch 6 9.84 ILOCOS NORTE Laoag, Paoay Cagayan Laoag City Metro Manila  Six (6) processor-respondents Dingras Metro Manila Dingras Tarlac Fe e ds 6 9.84 Batac Bulacan or 10 percent produced corn BULACAN San Rafael Isabela Baliwag Metro Manila grits and corn starch which Tota l 61 100 Cagayan Malolos Cavite Pangasinan Bataan were used as ingredients in cold * boiled / broiled corn,pintos Laguna BATANGAS Bauan Quezon Batangas City Metro Manila cuts preparation or food wraps. Malvar Laguna Tanauan City Mindoro Batangas City Bauan Cavite Another six (6) processors used Malvar Pampanga white corn as ingredient in CAGAYAN DE ORO CITYAlubijid Bukidnon Cagayan de Oro City Cebu Claveria Lanao Provinces Iligan City animal feeds. El Salvador DAVAO CITY North Surallah Tagum Cebu South Cotabato Davao City Surigao Province Bukidnon SARANGANI Alabel South Cotabato Gen. Santos City Metro Manila Gen. Santos City Sultan Kudarat Malapatan Cebu Malungan Maguindanao Negros Oriental Davao del Sur

66 11 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

F. Geographic Flow Figure 2: Isabela, Geographic flow of White Corn, Table 19. White Corn : Number of trader-respondents, by type of commodities handled, selected provinces, Philippines, 2009 2009 Type of Commodities Handled Corn/Sweet Sta. Maria Roxas City Metro Manila Pangasinan Corn/Rice/ 1. Isabela PROVINCE Potato/Mango/Vegetables San Agustin Ilagan Bulacan Cagayan Corn Corn/Palay/Rice Palay/Farm TOTAL /Fruits/Peanut/Cassava/ Corn/Palay/Groceries Cauayan City Santiago City Ilocos Norte supplies/Feeds Copra/Onion  The major supply areas of green SUPPLY AREAS and matured corn in Isabela were ISABELA 4 4 2 10 PANGASINAN 4 1 5 Tumauini, Sta. Maria, Ilagan, ILOILO 2 3 5 Echague and Santiago City. CEBU 7 8 15 BUKIDNON 10 10 Outside the province, green and SOUTH COTABATO 7 1 8 matured corn were sourced from Ilagan Santiago City DEMAND AREAS Cagayan, Quirino and Metro Cauayan City METRO MANILA 8 6 14 Roxas City ILOCOS NORTE 3 2 2 7 Manila. The last was cited as source BULACAN 4 1 5 of supply especially during lean BATANGAS 8 3 11 CAGAYAN DE ORO CITY 4 1 5 months when there was no DAVAO CITY 2 6 1 9 substantial harvest of white corn in SARANGANI 13 1 2 16 Tumauini Cagayan 0 the province. Sta. Maria Quirino TOTAL 76 22 19 2 1 120 Ilagan Metro Manila Percent 63 18 16 2 1 100 Echague  The main trading centers of the Santiago City green corn province were the markets of matured corn Ilagan, Santiago City, Cauayan City and Roxas City. White corn was Figure 3: Pangasinan, Geographic flow of White Corn, also distributed in the Table 20. White Corn : Number of processor-respondents, by type of processed product, selected provinces, 2009 Philippines, 2009 municipalities of Isabela like Sta. San Carlos City Bulacan Type of Processed Product Maria and San Agustin. Villasis Tarlac PROVINCE Binalonan Ilocos Norte Cornick Snack Foods * Corngrits Feeds TOTAL Destinations outside Isabela Malasiqui Pangasinan SUPPLY AREAS Metro Manila included the provinces of Ilocos ISABELA 2 4 - - 6 PANGASINAN 1 3 - - 4 Norte, Cagayan, Pangasinan and ILOILO - 2 - 1 3 Bulacan and Metro Manila. CEBU - 3 2 1 6 BUKIDNON - 1 - - 1 SOUTH COTABATO - 2 - 2 4 2. Pangasinan Dagupan City San Carlos City DEMAND AREAS Urdaneta City METRO MANILA 1 4 5  The top producing areas in ILOCOS NORTE 7 2 - - 9 Pangasinan were Dagupan City and BULACAN 3 - - 1 4 BATANGAS - 3 - - 3 San Carlos City and the CAGAYAN DE ORO CITY - 5 1 - 6 municipalities of Villasis, DAVAO CITY - 3 1 - 4 Dagupan City Binalonan Bulacan SARANGANI - 3 2 1 6 Pozzorubio, Binalonan, Sto. Tomas San Carlos City Sto. Tomas La union and Malasiqui. Villasis Malasiqui Isabela TOTAL 14 35 6 6 61 Pozzorubio - other corn Percent 23 57 10 10 100 producing municipalities * boiled / broiled corn,pintos  From the supply areas, white corn green corn NOTE: Iloilo and Cebu are both supply and demand areas. was brought to trading centers in matured corn Dagupan City, San Carlos City and Urdaneta City. The municipalities of 12 Villasis, Binalonan and Malasique 65 were destination points. The destination points outside the MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Dagupan City, San Carlos City and Urdaneta City. The municipalities of Villasis, Binalonan and Malasique were destination points. The destination points outside the province included the provinces of Bulacan, Tarlac and Ilocos Norte and Metro Manila. 6 6 6 6 5 5 5 9 8 66 12 30 Figure 4: Iloilo, Geographic flow of White Corn, 10 14 15 11 10 100 TOTAL TOTAL 2009 3. Iloilo Guimbal Leon Miagao Janiuay Lambunao Alimodian  The province of Iloilo was both supply Iloilo City 2 2 7 2 5 2 2017 120 100 12 16 No No and demand area for white corn. The response response top producing municipalities were Miagao, Guimbal and Leon, Janiuay, 5 1 1 Alimodian and Lambunao. Trading of Iloilo City Jaro incurred Mark-up Expenses white corn was actively taking place in Jaro and Iloilo City.

1 1

Buyer  White corn produced in the province incurred Expenses was largely consumed within Iloilo. Destination points were Guimbal, Miag- Miagao Janiuay Guimbal Alimodian Basis of Pricing of Basis 4 Basis of Pricing of Basis 2 1 1 1 1 Leon Lambunao and and ao, Lambunao, Iloilo City, Leon, Janiuay Quality quantity Quantity green corn and Alimodian. matured corn 2009  There was no outflow of white corn in 12 4 6 1 2 5 8 0 0 33 7 6 1 1 2 2 and and price price the province due to internal demand Figure 5: Cebu, Geographic flow of White Corn, Quality market Quality market Philippines,2009 and prev. and prevailing for processing. 2009 Cebu City Minglanilla Negros Oriental Talisay City San Antonio Bohol Toledo City San Remegio Siquijor 5 6 13 4. Cebu Bogo City Valencia Samar , Leyte & Southern Leyte Good Good Good Good quality quality Cabadiangan Carcar Davao Consolacion  White corn was the staple food among farmer-respondents in Cebu. This was 3 564 1 5 1 3 2 1 7 2 4 4 24 5 1 5 3 4 2 4 7 1 3 3 5 4437 43 36 27 28 41 42 11 10 price price reported by respondents in Cebu City, market market Prevailing Prevailing Toledo City and Talisay City, Bogo City Cebu City and in the municipalities of Medellin, Toledo City Talisay City Consolacion, Minglanilla, Carcar City, Bogo City San Remigio and Compostela.

TOTAL  During lean months, there were inflows TOTAL Percent Percent PROVINCE PROVINCE of white corn from Agusan del Norte,

Table 18c. White Corn : Numberoffarmer-respondents,: White Corn basisTablebyof18c. pricing in distribution, selected provinces, Cebu City Consolacion Agusan del Norte Davao City, South Cotabato, Cotabato Toledo City Minglanilla South Cotabato Talisay City Carcar City Davao City ISABELA MANILA METRO NORTE ILOCOS PANGASINAN ILOILO BULACAN CEBU BATANGAS BUKIDNON CITY ORO DE CAGAYAN DAVAOCITY SARANGANI 3 1 1 SOUTH COTABATO SOUTH ISABELA PANGASINAN ILOILO CEBU BUKIDNON COTABATO SOUTH Bogo City San Remigio Lanao del Norte Table 18d. White Corn : Numberoftrader-respondents,: White Corn Tablebasisby18d. ofpricing in distribution, selected provinces, Philippines, AREAS SUPPLY DEMAND AREAS DEMAND SUPPLY AREAS SUPPLY City, Lanao del Norte and Cagayan de

Medellin Compostela Cotabato City Oro City. Mandaue City Cagayan de Oro City green corn

matured corn

64 13 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

 Buying and selling transactions were active in Cebu City, Toledo City, Talisay City and Bogo City. Destination points of white corn outside Cebu were Negros Oriental, Table 18a. White Corn : Number of farmer-respondents, by price setter in Bohol, Siquijor, Samar, Leyte and Southern Leyte and Davao City. distribution, selected provinces, Philippines, 2009 Price Setter Figure 6: Bukidnon, Geographic flow of White Corn, PROVINCE No 5. Bukidnon Farmer Buyer Both TOTAL 2009 response Cagayan de Oro City Agusan del Norte SUPPLY AREAS  In Bukidnon, the top producing Cebu Kalilangan Iligan ISABELA 4 2 6 municipalities were Kalilangan, Malaybalay Davao City PANGASINAN 8 4 12 Valencia City Digos City ILOILO 5 1 6 Impasug-ong, Malaybalay, Sumilao Tagum City Metro Manila CEBU 17 7 4 2 30 and Manolo Fortich. Lanao del Norte BUKIDNON 6 6 supplied the province especially SOUTH COTABATO 6 6 during its lean production months. TOTAL 30 28 6 2 66  The major trading centers were the Percent 45 42 9 3 100 Malaybalay cities of Malaybalay and Valencia. Valencia City

 White corn was being brought to Agusan Norte and the cities of Cagayan de Oro, Cebu, Iligan, Davao, Table 18b. White Corn : Number of trader-respondents, by price setter in distribution, selected provinces, Philippines, 2009 Kalilangan Sumilao Digos, Tagum and Metro Manila. Impasug - ong Manolo Fortich Lanao del Cabanglasan Wao Norte Price Setter Malaybalay Pangantucan PROVINCE Supplier  In Bukidnon, white corn was also Lantapan Banisilao Trader Both TOTAL green corn /Buyer - other corn distributed and consumed in the producing municipalities matured corn SUPPLY AREAS municipalities of Kalilangan, ISABELA 6 4 10 Malaybalay and Valencia. PANGASINAN 3 1 1 5 Figure 7: South Cotabato, Geographic flow of ILOILO 5 5 White Corn, 2009 CEBU 15 15 6. South Cotabato BUKIDNON 7 3 10 Banga General Santos City Tupi Sarangani SOUTH COTABATO 4 2 2 8  From the producing barangays of Polomolok Davao City Koronadal City Metro Manila DEMAND AREAS Buenavista, buyers picked up white METRO MANILA 10 3 1 14 corn and brought it to Surallah ILOCOS NORTE 5 2 7 BULACAN 4 1 5 Market as assembly point for delivery BATANGAS 8 3 11 CAGAYAN DE ORO CITY 4 1 5 to Koronadal City, the trading center. DAVAO CITY 5 4 9

Koronadal City SARANGANI 11 3 2 16  White corn used for food consumption was distributed to areas TOTAL 87 19 14 120 Percent 73 16 12 100 outside the province like Davao City, General Santos City and Sarangani. Surallah

green corn

matured corn

Buenavista

14 63 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

 White corn assembled by traders in the province was sold to processors. Processed Table 17a. White Corn: Number of farmer-respondents, by term of products such as corn grits were later shipped to Cebu and Metro Manila. payment in distribution, selected provinces, Philippines, 2009

Term of Payment in Distribution G. Marketing Channels PROVINCE Cash Credit Consignment TOTAL SUPPLY AREAS Marketing channels of corn vary from one province to another. Each province ISABELA 6 6 manifests a unique set-up in terms of the number of linkages present and intermediaries PANGASINAN 12 12 involved. The marketing participants who are actively involved in white corn marketing are ILOILO 5 1 6 described as follows: CEBU 19 5 6 30 BUKIDNON 6 6 SOUTH COTABATO 6 6 Barangay Assembler (BA) - procures from only one barangay.

TOTAL 54 5 7 66 Municipal Assembler (MA) - procures from two or more barangays within the Percent 82 8 11 100 municipality. NOTE: Iloilo and Cebu are both supply and demand areas. Provincial Assembler (PA) – procures from two or more municipalities within the province.

Regional Assembler (RA) – procures from two or more provinces within the region. Table 17b. White Corn : Number of trader-respondents,by term of payment in distribution,selected provinces, Philippines, 2009 Interregional Assembler (IRA) - procures from two or more regions. Term of Payment in Distribution PROVINCE Cash Credit Consignment TOTAL SUPPLY AREAS Medium Distributor (MD) – sells larger volume than the small distributor; sells to ISABELA 8 1 1 10 traders coming from other markets in the province; may also sell to few PANGASINAN 4 1 5

ILOILO 3 1 2 6 institutional buyers.

CEBU 13 2 1 16 BUKIDNON 9 1 1 11 Large Distributor (LD) - sells larger volume than the medium distributor; sells to SOUTH COTABATO 8 8 traders coming from other markets within and outside the province; may also DEMAND AREAS sell to several institutional buyers; handles the largest volume among the three METRO MANILA 13 1 2 16 ILOCOS NORTE 6 1 7 types of distributors. BULACAN 5 5 BATANGAS 7 3 4 14 CAGAYAN DE ORO CITY 5 5 Retailer – pocures stocks either (directly) from farmers or distributors and sells to DAVAO CITY 7 2 9 consumers. SARANGANI 16 16 TOTAL 104 12 12 128 Percent 81 9 9 100 NOTE: Iloilo and Cebu are both supply and demand areas.

62 15 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

1. Isabela Figure 8. Isabela, Marketing Channels of White Corn, 2009 Table 16a. White Corn : Number of farmer-respondents, by  Farmers sold their corn to CONSUMER mode of distribution, selected provinces, Philippines, 2009

municipal and provincial Mode of Distribution AREA assemblers through agents. The BOP Picked-up Delivered TOTAL SUPPLY AREAS agents provided price and RETAILER ISABELA 5 1 6 quality information to sellers and PANGASINAN 12 12 ILOILO 6 6 buyers. PROCESSOR CEBU 24 6 30  The Provincial Assembler-Large BUKIDNON 1 5 6 PA-LD SOUTH COTABATO 6 6 Distributor (PA-LD) supplied the TOTAL 48 18 66 requirements of processors and SOP Percent 73 27 100 MA-MD/ retailers. Corn processors usually NOTE: Iloilo and Cebu are both supply and demand areas. disposed of their corn directly to MA-LD consumers, buyers outside the province (BOP) and some PA-LD. AGENT

 Corn supply from other FARMER Table 16b. White Corn : Number of trader-respondents, by mode of provinces (SOP) went to distribution, selected provinces, Philippines, 2009 green & matured processors. Mode of Distribution processed AREA Picked-up Delivered Both TOTAL 2. Pangasinan SUPPLY AREAS Figure 9. Pangasinan, Marketing Channels of White ISABELA 7 2 1 10 Corn, 2009 PANGASINAN 3 2 - 5  Farmers disposed their green ILOILO 2 1 2 5 and matured corn directly to CONSUMER CEBU 11 2 2 15 BUKIDNON 3 3 4 10 either contract growers or SOUTH COTABATO 2 6 - 8 Provincial Assembler (PA) and Inter-regional Assembler – Large DEMAND AREAS PROCESSOR METRO MANILA 12 2 14 Distributor (IRA-LD). ILOCOS NORTE 5 1 1 7 BULACAN 3 2 - 5 IRA-LD  Green corn was sold directly to BATANGAS 7 4 - 11 contract growers under the CAGAYAN DE ORO CITY 4 1 - 5 DAVAO CITY 6 2 1 9 “pakyaw system”. Traders SOP SARANGANI 7 8 1 16 negotiated ahead, two (2) to TOTAL 72 36 12 120 three (3) weeks, before the Percent 60 30 10 100 PA expected harvest. NOTE: Iloilo and Cebu are both supply and demand areas.

 Processors distributed CONTRACT “chichacorn” and “cornick” to GROWER Inter-regional Assembler – FARMER Regional Assembler (RA-LD) and green & matured

consumers. processed

16 61 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

 Informal processors bought green corn for sale as snack food like boiled or broiled 6 5 4 9 4 3 3 6 1 6 4 6 4 corn to consumers. 61 100 TOTAL Figure 10. Iloilo, Marketing Channels of White Corn, 3. Iloilo 2009

CONSUMER 8 3 5 2  Corn farmers in Iloilo disposed of their produce directly to

Barangay Assembler-Medium RETAILER Distributor (BA-MD) and 2 1 1 processors. The Provincial PROCESSOR

Supplierresponse No Assembler-Medium-Distributor (PA-MD) sold their corn to PA-MD processors. Processed corn was 2 1 1 distributed to retailers and supply consumers. BA Demand and and Demand  In the province, processors

Basis of Pricing of Basis transformed matured corn into 5 1 3 2 native delicacies. FARMER themarket green & matured Availabilityin

4. Cebu processed 2 1 1 Figure 11. Cebu, Marketing Channels of White Corn,  Marketing participants in Cebu prevailing 2009 Quality and market price market were farmers, barangay, provincial and inter-regional CONSUMER 1 3 2 1 3 2 3 1 2 5 2 41 25 assemblers, retailers and consumers. RETAILER

Good quality Good  Farmers from Cebu sold their PROCESSOR corn directly to Barangay 3 1 1 9 1 3 1 4 2 41 25 Assembler (BA), Provincial IRA/ Prevailing market price market Assembler-Medium Distributor IRA-LD BOP (PA-MD, Provincial Assembler- Large Distributor (PA-LD) and PA-MD/ some to Inter-regional Assembler PA-LD

(IRA) and Inter-regional SOP AREA TOTAL

Percent Assembler-Large Distributor Table 15d. White Corn : Numberofprocessor-respondents,: White Corn Tablebasis15d. byofpricing inselected procurment, provinces, Philippines, 2009 (IRA-LD). BA green & matured

ISABELA PANGASINAN MANILA METRO NORTE ILOCOS BULACAN ILOILO BATANGAS CITY ORO DE CAGAYAN CEBU BUKIDNON COTABATO SOUTH DAVAOCITY SARANGANI SUPPLY AREAS SUPPLY DEMAND AREAS DEMAND processed FARMER

60 17 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

5 5 8 7 5 5 9 14  Inter-regional assemblers received supplies of matured corn from traders outside 10 15 10 11 the province. These assemblers sold white corn to informal processors, millers and TOTAL to retailers. Identified buyers from outside the province also sourced supply from 2 2 2 17 120 inter-regional assemblers. These were either in processed form or matured corn. 1114 16 100

5. Bukidnon Figure 12. Bukidnon, Marketing Channels of White 1 1 Corn, 2009 1  In Bukidnon, farmers sold shelled Mark-upresponse No white corn to PA-LD and RA-LD. CONSUMER 1 1 Some were sold directly to 1 season processors. Agents who acted as Harvest facilitators provided price PROCESSOR information. The Regional 1 3 1 1 3 Assembler-Large Distributor (RA- incurred Expenses LD) and Provincial Assembler- RA-LD/ Large Distributor (PA-LD) who BOP 1 1 1 Basis of Pricing of Basis transacted with processors sold PA-LD and Quantity prevailing

their produce to Buyer Outside price market the Province (BOP) and local SOP BUYING STATION 1 2 2 consumers. 1

prevailing Quality and  Other farmers sold white corn in AGENT price market cobs or unshelled to buying 2 7 1 6 3 stations. These buying stations 1 Quantity which had mechanical drying FARMER facilities were owned and 3 4 5 1 6 5 1 green & matured 5

12

operated by large companies Good processed quality based in Cagayan de Oro City. Buyers outside the province 2 6 7 4 1 5 2 4 4 4 4 46 42 (BOP) bought from these buying 38 35

stations. Prevailing market price market

Table 15c. White Corn : Numberoftrader-respondents,: White Corn basisbyofpricing Tablein 15c. procurement, selected provinces, Philippines, 2009 TOTAL Percent PROVINCE PANGASINAN MANILA METRO NORTE ILOCOS BULACAN ISABELA BUKIDNON COTABATO SOUTH CITY ORO DE CAGAYAN 3 ILOILO CEBU BATANGAS DAVAOCITY SARANGANI SUPPLY AREAS SUPPLY DEMAND AREAS DEMAND

18 59 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

6. South Cotabato Figure 13.South Cotabato, Marketing Channels of Table 15b. White Corn : Number of processor-respondents, by price setter in White Corn, 2009 procurement, selected provinces, Philippines, 2009  Price Setter White corn farmers sold PROVINCE CONSUMER Processor Supplier Both TOTAL their produce either to SUPPLY AREAS ISABELA 1 3 2 6 Municipal or Provincial PANGASINAN 1 3 4 Assemblers (MA –PA) and ILOILO 3 3 PA-MD/ CEBU 2 4 6 processors. PROCESSOR BUKIDNON 1 1 PA-LD BOP SOUTH COTABATO 1 3 4  Provincial assemblers sold DEMAND AREAS METRO MANILA 2 2 1 5 green and matured corn to ILOCOS NORTE 2 1 6 9 BULACAN 2 1 1 4 processors. Processors, in BATANGAS 3 3 turn, sold processed MA-LD CAGAYAN DE ORO CITY 5 1 6 DAVAO CITY 1 2 1 4 products to provincial SARANGANI 4 1 1 6 assemblers. TOTAL 20 28 13 61 Percent 33 46 21 100 FARMER green & matured

processed H. Marketing Costs and Margins

This portion presents the details of the marketing costs and margins by type of marketing participant. Marketing costs are classified into cash costs and imputed costs.

Cash costs are the direct cash outlays made by marketing participants. Cash costs items include labor, transportation, materials used and other operating expenses in marketing-related activities. Labor costs are payments for the services rendered for activities like hauling, shelling, cleaning, drying, bagging, piling, sorting or classifying weighing, loading, unloading and other related marketing activities. Materials used in marketing corn include sack, needle, tying materials, rope, drum, newspaper, thick plastic bag and those used as shade. Aside from the expenses for labor, transportation and materials used, other cost items include gas and oil (not used in transporting corn), repair and maintenance, fees and rentals, telephone and other communication, prepaid cards, light and water and meals and snacks.

Imputed costs are costs that do not involve actual outlays in cash or in kind. These represent the costs of using owned resources in a particular activity and are given values of the best alternative uses forgone. These include depreciation, family labor, rental value of owned buildings and land, etc.

58 19 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Margin is the additional value a trader charges to his customer to cover for his Table 14b. White Corn : Number of processor-respondents, by term of payment in procurement, selected provinces,Philippines,2009 works, return on capital and risk which is on top of the price to be paid and direct Term of Payment in Procurement PROVINCE marketing cost incurred. Trader margin is derived by deducting Total Marketing Cost and Cash Credit Consignment TOTAL Wholesale Buying Price from the Wholesale Selling Price for assembler, other wholesaler SUPPLY AREAS ISABELA 6 6 and cooperative. For retailer, margin is derived by deducting Total Marketing Cost and PANGASINAN 1 3 4 ILOILO 3 3 Wholesale Buying Price from Retail Selling Price. In this study, margin is used CEBU 4 2 6 interchangeably with net returns and net gains. BUKIDNON 1 1 SOUTH COTABATO 4 4

In this study, marketing costs and margins are disaggregated by product form. DEMAND AREAS METRO MANILA 4 1 5 ILOCOS NORTE 9 9 1. Isabela BULACAN 3 1 4 BATANGAS 3 3 CAGAYAN DE ORO CITY 5 1 6 DAVAO CITY 4 4 Table 9. White Corn (Green): Average marketing costs and margins by type of SARANGANI 5 1 6 marketing participants, Isabela, 2009 TOTAL 48 1 12 61 GREEN CORN Percent 79 2 20 100 NOTE: Iloilo and Cebu are both supply and demand areas. TRADER PROCESSOR ITEM INFORMAL RETAILER PA-LD PROCESSOR peso per sack of 50 kilograms Table 15a. White Corn : Number of trader-respondents, by price setter in A. Cash Costs 17.80 38.97 10.96 procurement, selected provinces, Philippines, 2009 Price Setter a.1 Labor PROVINCE 11.37 Trader Supplier Both TOTAL a.2 Transportation 20.76 6.76 SUPPLY AREAS ISABELA 6 2 2 10 a.3 Material 11.77 6.68 PANGASINAN 4 1 5 a.4 Other Operating Expenses 6.03 0.16 4.20 ILOILO 2 3 5 CEBU 3 11 1 15 B. Imputed Costs 4.86 BUKIDNON 10 10 b.1 Depreciation 4.23 SOUTH COTABATO 8 8

b.2 Unpaid Labor 0.63 DEMAND AREAS Total Mktg. Cost, TMC (cash + imputed) 22.66 38.97 10.96 METRO MANILA 7 7 14 ILOCOS NORTE 6 1 7 Wholesale Buying Price, WBP 837.50 375.00 322.00 BULACAN 1 3 1 5 Wholesale Selling Price, WSP 500.00 BATANGAS 7 4 11 CAGAYAN DE ORO CITY 2 3 5 Retail Selling Price, RSP 937.50 DAVAO CITY 1 4 4 9 Total Cost, TC (TMC + WBP) 860.16 413.97 SARANGANI 12 2 2 16 Margin (WSP-TC); (RSP-TC) 77.34 86.03 TOTAL 69 36 15 120 Percent 58 30 13 100

 For green corn, the highest marketing cost was recorded by Provincial Assembler- Large Distributor (PA-LD) at P38.97 per sack. The cost comprised of cash outlays.

20 57 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

 Processors spent an average of P10.96 per sack on the procurement of green corn. Table 13b. White Corn : Number of processor-respondents, by mode of procurement,

selected provinces, Philippines, 2009  Mode of Procurement Retailers had an average net margin of P111.34 per sack . The Provincial Assembler- PROVINCE Picked-up Delivered Both TOTAL Large Distributor (PA-LD) netted P86.03. SUPPLY AREAS ISABELA 5 - 1 6 PANGASINAN 4 - - 4 Table 10. White Corn (Matured) : Average marketing costs and margins by type of marketing ILOILO 2 1 - 3 CEBU 5 1 - 6 participants, Isabela, 2009 BUKIDNON 1 1 SOUTH COTABATO 1 3 4 MATURED CORN TRADER PROCESSOR DEMAND AREAS METRO MANILA 4 1 5 ITEM FARMER CORNICK ILOCOS NORTE 4 3 2 9 MA-MD MA-LD PA-LD PROCESSOR BULACAN 1 3 - 4 BATANGAS 2 1 - 3 peso per sack of 50 kilograms CAGAYAN DE ORO CITY 4 2 - 6 DAVAO CITY 4 - 4 A. Cash Costs 14.73 17.93 41.73 36.85 20.19 SARANGANI 2 4 - 6 a.1 Labor 5.00 20.82 10.79 6.82 TOTAL 38 20 3 61 a.2 Transportation 6.67 2.50 2.60 15.14 7.57 Percent 62 33 5 100 NOTE: Iloilo and Cebu are both supply and demand areas. a.3 Material 8.06 2.18 6.38 4.15

a.4 Other Operating Expenses 8.25 11.92 6.77 5.80

B. Imputed Costs 15.63 10.42 26.89 1.55

b.1 Depreciation 11.46 10.42 26.89 1.55

b.2 Unpaid Labor 4.17 Table 14a. White Corn : Number of trader-respondents, by term of payment in procurement, selected provinces,Philippines,2009 Total Mktg. Cost, TMC (cash + imputed) 30.36 28.34 68.62 38.40 20.19 Term of Payment in Procurement PROVINCE Wholesale Buying Price, WBP 1325.00 1456.50 1325.00 1525.00 Cash Credit Consignment TOTAL SUPPLY AREAS Wholesale Selling Price, WSP 1375.00 1544.50 1400.00 ISABELA 8 1 1 10 PANGASINAN 5 - - 5 Total Cost, TC (TMC + WBP) 1353.34 1525.12 1363.40 ILOILO 1 - 4 5 Margin (WSP - TC) 21.66 19.38 36.60 CEBU 10 2 3 15 BUKIDNON 7 3 - 10 SOUTH COTABATO 7 - 1 8  Municipal Assembler-Large Distributor (MA-LD) recorded the highest marketing cost DEMAND AREAS METRO MANILA 10 1 3 14 at P68.62 per sack, of which P41.73 were cash costs and P26.89 were imputed costs. ILOCOS NORTE 7 - - 7 BULACAN 4 1 - 5  Corn farmers spent an average of P30.36 per sack in marketing their product. Of BATANGAS 6 1 4 11 CAGAYAN DE ORO CITY 4 1 - 5 said amount, P14.73 were cash costs and P15.63 were imputed costs. DAVAO CITY 7 2 9 SARANGANI 14 2 - 16

TOTAL 90 12 18 120  Processors spent an average of P20.19 in the procurement of a sack of 50 kilograms Percent 75 10 15 100 NOTE: Iloilo and Cebu are both supply and demand areas. of matured corn grains.

 The Provincial Assembler-Large Distributor (PA-LD) had the highest average net margin amounting to P36.60 per sack, followed by Municipal Assembler-Medium Distributor (MA-MD) at P21.66 per sack.

56 21 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

2. Pangasinan Table 12. White Corn : Number of processor-respondents, by length of experience in processing business, selected provinces, Philippines, 2009 Length of Experience in Processing Business PROVINCE Table 11. White Corn (Green) : Average marketing costs and margins by type of marketing less than 5 5-10 11-15 16-20 21 & above TOTAL participants, Pangasinan, 2009 SUPPLY AREAS ISABELA 1 2 - 2 1 6 PANGASINAN - 1 1 - 2 4 GREEN CORN ILOILO - 1 1 - 1 3 CEBU - - 1 - 5 6 TRADER PROCESSOR BUKIDNON 1 - - - - 1 SOUTH COTABATO 3 - - 1 - 4 ITEM FARMER INFORMAL PA PROCESSOR DEMAND AREAS METRO MANILA 3 1 1 5 peso per sack of 50 kilograms ILOCOS NORTE 6 3 - - - 9 BULACAN 1 - - 1 2 4 A. Cash Costs 17.33 43.27 4.33 BATANGAS - 1 - 1 1 3 CAGAYAN DE ORO CITY 3 1 2 - 6 a.1 Labor 12.86 1.21 DAVAO CITY 1 - 2 - 1 4 SARANGANI 2 2 - - 2 6 a.2 Transportation 9.04 2.31 TOTAL 18 11 10 6 16 61 a.3 Material 17.33 14.41 Percent 30 18 16 10 26 100 NOTE: Iloilo and Cebu are both supply and demand areas. a.4 Other Operating Expenses 6.96 0.81 B. Imputed Costs 4.55 b.1 Depreciation 4.55 Total Mktg. Cost, TMC (cash + imputed) 17.33 47.82 4.33 Wholesale Buying Price, WBP 537.00 617.00 Table 13a. White Corn : Number of trader-respondents, by mode of procurement, selected provinces, Philippines, 2009 Wholesale Selling Price, WSP 637.50 Mode of Procurement PROVINCE Picked-up Delivered Both TOTAL Total Cost, TC (TMC + WBP) 584.82 SUPPLY AREAS Margin (WSP - TC) 52.68 ISABELA 3 6 1 10 PANGASINAN 5 5 ILOILO 4 1 - 5 CEBU 11 4 - 15  BUKIDNON 1 6 3 10 In Pangasinan, the average marketing costs of green corn per sack ranged from SOUTH COTABATO 7 1 8 P4.33 for the processors expenses to P47.82 for the Provincial Assembler (PA). DEMAND AREAS  Farmers in Pangasinan spent an average of P17.33 per sack in selling their corn. METRO MANILA 9 3 2 14 ILOCOS NORTE 4 2 1 7 BULACAN 3 2 - 5  Provincial Assembler (PA) had an average net margin of P52.68 per sack. BATANGAS 4 7 - 11 CAGAYAN DE ORO CITY - 5 - 5 DAVAO CITY 1 8 - 9 SARANGANI 4 10 2 16

TOTAL 56 55 9 120 Percent 47 46 8 100 NOTE: Iloilo and Cebu are both supply and demand areas.

22 55 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 12. White Corn (Matured) : Average marketing costs and margins by type of marketing Table 10. White Corn : Number of processor-respondents, by type of business ownership, selected provinces, Philippines, 2009 participants, Pangasinan, 2009 Type of Business Ownership PROVINCE Single Partnership Corporation TOTAL proprietorship MATURED CORN SUPPLY AREAS ISABELA 4 2 - 6 TRADER PROCESSOR PANGASINAN 4 - - 4 ITEM FARMER CORNICK ILOILO 3 - - 3 IRA-LD PROCESSOR CEBU 4 - 2 6 BUKIDNON 1 - - 1 SOUTH COTABATO 4 - - 4 peso per sack of 50 kilograms A. Cash Costs 8.48 19.08 14.06 DEMAND AREAS METRO MANILA 4 - 1 5 a.1 Labor 6.67 4.06 ILOCOS NORTE 9 - - 9 BULACAN 3 - 1 4 a.2 Transportation 5.51 6.25 BATANGAS 3 - - 3 CAGAYAN DE ORO CITY 5 1 - 6 a.3 Material 8.48 5.08 DAVAO CITY 4 - - 4 a.4 Other Operating Expenses SARANGANI 5 - 1 6 1.82 3.75 - B. Imputed Costs 2.60 0.47 TOTAL 53 3 5 61 Percent 87 5 8 100 b.1 Depreciation 2.60 0.47 NOTE: Iloilo and Cebu are both supply and demand areas. Total Mktg. Cost, TMC (cash + imputed) 11.08 19.55 14.06 Wholesale Buying Price, WBP 775.00 1250.00 Wholesale Selling Price, WSP 785.50 Total Cost, TC (TMC + WBP) 794.54

Table 11. White Corn : Number of processor-respondents, by source of capital for marketing, selected Margin (WSP - TC) -9.04 provinces, Philippines, 2009 Source of Capital for Marketing PROVINCE Self-financed Self-financed Borrowed Consignment TOTAL & borrowed  Marketing of matured white corn among farmers and traders in Pangasinan SUPPLY AREAS entailed P11.08 to P19.55 per sack. ISABELA 2 - 3 1 6 PANGASINAN 1 - - 3 4 ILOILO 3 - - - 3  The Interregional Assembler-Large Distributor (IRA-LD) had cash outlay amounting CEBU 5 - 1 - 6 to P19.08 and this was broken down into labor at P6.67, transportation at P5.51 and BUKIDNON 1 - - - 1 SOUTH COTABATO 4 - - - 4 materials at P5.08.

DEMAND AREAS METRO MANILA 3 2 - - 5  Interregional Assembler-Large Distributor (IRA-LD) incurred a net loss of P9.04 per ILOCOS NORTE 8 1 - - 9 sack. BULACAN 2 2 - - 4 BATANGAS 3 - - - 3 CAGAYAN DE ORO CITY 5 - 1 - 6  Farmers spent P11.08 per sack in marketing their matured corn. DAVAO CITY 1 - 3 - 4 SARANGANI 6 - - 6

TOTAL 44 5 8 4 61 Percent 72 8 13 7 100 NOTE: Iloilo and Cebu are both supply and demand areas.

54 23 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

3. Iloilo Table 8. White Corn : Number of trader-respondents, by length of trading experience, selected Table 13. White Corn (Green): Average marketing costs and margins by type of marketing provinces, Philippines, 2009 participants, Iloilo, 2009 Length of Trading Experience PROVINCE less than 5 5-10 11-15 16-20 21 & above TOTAL GREEN CO RN SUPPLY AREAS TRADER PROCESSOR ISABELA 2 4 2 2 - 10 ITEM FARMER IN FO RM A L PANGASINAN - - - 1 4 5 RETAILER BA PA-MD PROCESSOR ILOILO 2 2 1 - - 5 CEBU 2 3 4 - 6 15 peso per sack of 50 kilograms BUKIDNON 2 3 2 1 2 10 SOUTH COTABATO 3 4 - 1 - 8 A. Cash Costs 27.01 29.39 55.70 41.68 a.1 L abor 1 0 .4 5 DEMAND AREAS a.2 Transportation 18.06 30.10 41.68 METRO MANILA 2 8 2 - 2 14 ILOCOS NORTE 2 3 1 1 - 7 a.3 Material 25.76 9.11 11.74 BULACAN - 2 2 1 - 5 a.4 Other Operating Expenses 1.25 2.22 3.41 BATANGAS 1 8 - 2 - 11 CAGAYAN DE ORO CITY 3 - - - 2 5 B. Imputed Costs 7.27 28.75 25.08 23.78 DAVAO CITY - 3 3 1 2 9 b.1 Depreciation 7.27 3.75 0.08 0.71 SARANGANI 3 8 1 2 2 16

b.2 Unpaid Labor 25.00 25.00 23.08 TOTAL 22 48 18 12 20 120 Total Mktg. Cost, TMC (cash + imputed) 7.27 55.76 54.47 79.48 41.68 Percent 18 40 15 10 17 100 NOTE: Iloilo and Cebu are both supply and demand areas. Wholesale Buying Price, WBP 800.00 555.50 441.67 433.33 Wholesale Selling Price, WSP 722.00 644.58 Retail Selling Price, RSP 1 0 0 0 .0 0 Total Cost, TC (TMC + WBP) 855.76 609.97 521.15 Margin (WSP - TC); (RSP - TC) 144.24 112.03 123.43 Table 9. White Corn : Number of processor-respondents, selected provinces, Philippines, 2009  Among traders operating in Iloilo, the Provincial Assembler-Medium Distributor (PA- Type of Processor PROVINCE Commercial Informal Food Feed miller TOTAL MD) had the highest marketing cost at an average of P79.48 per sack. miller processor processor SUPPLY AREAS ISABELA - 4 2 - 6  Barangay assemblers spent P54.47 per sack and this was distributed into cash costs PANGASINAN - 3 1 - 4 ILOILO - 3 - - 3 of P29.39 and imputed costs of P25.08. Retailers spent P55.76 per sack in CEBU 3 3 - - 6 BUKIDNON - - - 1 1 marketing. SOUTH COTABATO - 4 - - 4

 The highest net margin was noted among retailers at P144.24 per sack. DEMAND AREAS METRO MANILA - 4 1 - 5 ILOCOS NORTE - 3 6 - 9  Farmers spent relatively low at P7.27 per sack in selling their corn since traders BULACAN - - 3 1 4 BATANGAS - 3 - - 3 picked up the product at their farms. CAGAYAN DE ORO CITY 1 3 2 - 6 DAVAO CITY 1 3 - - 4 SARANGANI 3 3 - - 6

TOTAL 8 36 15 2 61 Percent 13 59 25 3 100 NOTE: Iloilo and Cebu are both supply and demand areas.

24 53 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

4. Cebu Table 6. White Corn : Number of trader-respondents, by type of business ownership, selected provinces, Philippines, 2009 Type of Business Ownership PROVINCE Single Partnership Corporation TOTAL proprietorship Table 14. White Corn (Green): Average marketing costs and margins by type of marketing SUPPLY AREAS ISABELA 10 - - 10 participants, Cebu, 2009 PANGASINAN 5 - - 5 ILOILO 5 - - 5 GREEN CORN CEBU 10 2 3 15 BUKIDNON 10 - - 10 TRADER PROCESSOR SOUTH COTABATO 8 - - 8 ITEM FARMER INFORMAL DEMAND AREAS BA PA-MD PA-LD PROCESSOR METRO MANILA 14 - - 14 peso per sack of 50 kilograms ILOCOS NORTE 7 - - 7 BULACAN 5 - - 5 A. Cash Costs 17.75 47.90 26.97 18.40 28.47 BATANGAS 11 - - 11 CAGAYAN DE ORO CITY 4 - 1 5 a.1 Labor 4.17 10.19 12.18 5.91 1.33 DAVAO CITY 9 - - 9 a.2 Transportation SARANGANI 14 1 1 16 12.50 20.80 3.25 3.28 26.48 a.3 Material 1.09 8.81 10.46 8.67 TOTAL 112 3 5 120 Percent 93 3 4 100 a.4 Other Operating Expenses 8.10 1.08 0.55 0.66 NOTE: Iloilo and Cebu are both supply and demand areas. B. Imputed Costs 14.69 11.91 14.30 24.85 b.1 Depreciation 14.19 0.57 14.30 12.17 b.2 Unpaid Labor 0.50 11.34 12.68 Total Mktg. Cost, TMC (cash + imputed) 32.44 59.81 41.27 43.25 28.47 Table 7. White Corn : Number of trader-respondents, by source of capital for marketing, selected provinces, Philippines, 2009 Wholesale Buying Price, WBP 333.50 362.50 333.50 402.83 Source of Capital for Marketing Self- Wholesale Selling Price, WSP 500.00 437.50 500.00 PROVINCE Self- financed & Borrowed Others TOTAL financed Total Cost, TC (TMC + WBP) 393.31 403.77 376.75 borrowed SUPPLY AREAS Margin (WSP - TC) 106.69 33.73 123.25 ISABELA 2 2 6 - 10 PANGASINAN 5 - - - 5 ILOILO 2 - 1 2 5 CEBU 15 --- 15  Among marketing participants for green corn, the Barangay Assembler (BA) BUKIDNON 4 2 4 - 10 SOUTH COTABATO 7 - 1 - 8 registered the highest marketing cost of P59.81 per sack.

DEMAND AREAS  Informal processors spent P28.47 per sack in procurement of green corn. They METRO MANILA 12 2 - - 14 ILOCOS NORTE 5 1 1 - 7 incurred mostly cash cost items.

BULACAN 3 - 1 1 5 BATANGAS 11 --- 11  Higher net margin was computed for Provincial Assembler-Large Distributor (PA-LD) CAGAYAN DE ORO CITY 5 - - - 5 DAVAO CITY 6 - 3 - 9 at P123.25, on the average. SARANGANI 12 3 1 - 16  Corn farmers in Cebu incurred an average marketing cost of P32.44 per sack. Of this TOTAL 89 10 18 3 120 Percent 74 8 15 3 100 amount, cash costs were at P17.75 and imputed costs, P14.69. NOTE: Iloilo and Cebu are both supply and demand areas.

52 25 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 15. White Corn (Matured) : Average marketing costs and margins by type of marketing 10 15 10 14 11 16 TOTAL participants, Cebu, 2009

MATURED CORN 24 120 TRADER PROCESSOR 20 100 ITEM FARMER COMMERCIAL RETAILER IRA IRA-LD CORN MILLER peso per sack of 50 kilograms A. Cash Costs 48.37 77.12 77.72 59.98 37.05 a.1 Labor 16.28 44.38 52.13 42.61 21.55 a.2 Transportation 27.53 24.90 11.25 15.50

7 9 3 a.3 Material 2.82 10.27 2.79 6 8 3 a.4 Other Operating Expenses 1.74 22.47 0.69 3.33 B. Imputed Costs 37.86 20.60 6.61 1.15 b.1 Depreciation 25.86 20.60 6.61 1.15 b.2 Unpaid Labor 12.00 Total Mktg. Cost, TMC (cash + imputed) 86.23 97.72 84.32 61.13 37.05

Wholesale Buying Price, WBP 1050.00 1027.08 1000.00 679.17 Trader of Type Wholesale Selling Price, WSP 1097.92 1090.45 14 15 13 12 13 11

Retail Selling Price, RSP 1190.97 PA-MD PA-LD RA-LD IRA IRA-LD AGENT RETAILER Total Cost, TC (TMC + WBP) 1147.72 1111.41 1061.13 5 Margin (WSP - TC); (RSP - TC) 43.25 -13.49 29.32 PA

 Traders of matured corn in Cebu reported marketing expenses of P61.13 per sack 10 by Interregional Assembler-Large Distributor (IRA-LD), P84.32 by Interregional Assembler (IRA) and P102.31 by retailer.

MA-MD MA-LD  Marketing margin was highest for retailer at P43.25 per sack. The Interregional

Assembler (IRA) reported a negative margin of P13.49 per sack. MA

 Farmers in Cebu spent an average of P86.23 per sack in selling their produce. Of --14--2---12----3----2------72--1--2-2-13------1-2-122-6-2---1121----1------13-----113-2-2 5 8 7 5 9 8 9 3 1----3-----13----11-43-31--214-3----33211101---47 8 3 8 4 5 Table 5. White Corn : Numberoftrader-respondents,: White Corn Table 5. selected provinces, Philippines, 2009 said amount, P48.37 were cash costs while P37.86 were imputed costs. BA

TOTAL Percent PROVINCE SUPPLY AREAS SUPPLY ISABELA PANGASINAN CEBU BUKIDNON COTABATO SOUTH NORTE ILOCOS CITY ORO DE CAGAYAN DAVAO CITY - 1 areas. NOTE: both IloiloCebu demand are and supply - - - - - 1 - - - 3 5 ILOILO AREAS DEMAND MANILA METRO BULACAN BATANGAS SARANGANI

26 51 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 2. White Corn : Number of farmer-respondents, by tenurial status, selected provinces, Philippines, 2009 5. Bukidnon

TENURIAL STATUS PROVINCE Owner-operator Tenant Lessee Others* TOTAL Table 16. White Corn (Matured) : Average marketing costs and margins by type of marketing ISABELA 5 1 - - 6 participants, Bukidnon, 2009 PANGASINAN 8 1 3 - 12 ILOILO - 5 - 1 6 MATURED CORN CEBU 8 15 3 4 30 TRADER PROCESSOR BUKIDNON 2 0 1 3 6 ITEM FARMER SOUTH 5 1 - - 6 PA-LD RA-LD FEED MILLER peso per sack of 50 kilograms TOTAL 28 23 7 8 66 Percent 42 35 11 12 100 A. Cash Costs 30.39 60.68 30.50 3.33 * CLOA,rent free, mortgage, stewardship a.1 Labor 1.02 22.07 9.73 22.22 NOTE: Iloilo and Cebu are both supply and demand areas. a.2 Transportation 20.28 13.46 6.50 10.67 a.3 Material 6.58 9.35 3.93 a.4 Other Operating Expenses 2.50 15.80 10.34 Table 3. White Corn : Number of farmer-respondents, by length of farming experience, selected provinces, Philippines, 2009 B. Imputed Costs 0.27 15.77 8.59 Length of Farming Experience b.1 Depreciation 15.77 8.59 PROVINCE b.2 Unpaid Labor 0.27 less than 5 5-10 11-15 16-20 21 & above TOTAL Total Mktg. Cost, TMC (cash + imputed) 30.66 76.45 39.09 32.89

ISABELA 1 2 1 - 2 6 Wholesale Buying Price, WBP 531.67 610.00 625.00

PANGASINAN 2 2 2 - 6 12 Wholesale Selling Price, WSP 620.00 668.33 ILOILO 1 3 1 - 1 6 Total Cost, TC (TMC + WBP) 608.12 649.09 CEBU - 4 1 4 21 30 Margin (WSP - TC) 11.88 19.25 BUKIDNON - 1 - 1 4 6 SOUTH COTABATO - 3 2 - 1 6  Provincial Assemblers of corn in Bukidnon had marketing costs of P76.45 TOTAL 4 15 7 5 35 66 per sack. They reported an average margin of P11.88 per sack. Percent 6 23 11 8 53 100 NOTE: Iloilo and Cebu are both supply and demand areas.  The Regional Assembler-Large Distributor (RA-LD) had marketing margin amounting to P19.25 per sack.

Table 4. White Corn : Number of farmer-respondents, by source of capital for marketing, selected provinces, Philippines, 2009  Feed millers recorded an average procurement cost of P32.89 per sack. Source of Capital for Marketing Self-  Farmers had an average marketing cost of P30.66 per sack. This consists PROVINCE Self- Borrowed financed & TOTAL financed borrowed of P30.39 of cash expenses and P0.27 of imputed costs. SUPPLY AREAS ISABELA 6 - - 6 PANGASINAN 12 -- 12 ILOILO 2 3 1 6 CEBU 27 1 2 30 BUKIDNON 6 - - 6 SOUTH COTABATO 6 - - 6

TOTAL 59 4 3 66 Percent 89 6 5 100 NOTE: Iloilo and Cebu are both supply and demand areas.

50 27

MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

6. South Cotabato

Table 1. White Corn : Number of respondents, selected provinces, Philippines, 2009

Table 17. White Corn (Green) : Average marketing costs and margins by type of marketing PROVINCE FARMER TRADER PROCESSOR TOTAL

participants, South Cotabato, 2009 SUPPLY AREAS ISABELA 6 10 6 22 GREEN CORN PANGASINAN 12 5 4 21 TRADER PROCESSOR ILOILO 6 5 3 14 CEBU 30 15 6 51 ITEM INFORMAL BUKIDNON 6 10 1 17 MA MA-LD PA-MD PA-LD PROCESSOR SOUTH COTABATO 6 8 4 18 DEMAND AREAS peso per sack of 50 kilograms METRO MANILA - 14 5 19 A. Cash Costs 44.68 35.46 16.43 30.58 30.00 ILOCOS NORTE - 7 9 16 a.1 Labor 2.00 5.12 1.54 BULACAN - 5 4 9 BATANGAS - 11 3 14 a.2 Transportation 20.54 21.25 6.00 20.00 30.00 CAGAYAN DE ORO CITY - 5 6 11 a.3 Material 16.62 8.50 8.30 7.76 DAVAO CITY - 9 4 13 SARANGANI - 16 6 22 a.4 Other Operating Expenses 5.52 0.59 2.13 1.28 B. Imputed Costs 14.50 0.32 18.93 0.11 TOTAL 66 120 61 247 Percent 27 49 25 100 b.1 Depreciation 14.50 0.32 1.85 0.11 NOTE: Iloilo and Cebu are both supply and demand areas. b.2 Unpaid Labor 17.08 Total Mktg. Cost, TMC (cash + imputed) 59.17 35.79 35.35 30.69 30.00 Wholesale Buying Price, WBP 437.50 250.00 300.00 250.00 500.00 Wholesale Selling Price, WSP 650.00 400.00 500.00 500.00 Table 1a. White Corn : Number of respondents, by type of marketing participants and by types of corn, selected provinces, Philippines, 2009 Total Cost, TC (TMC + WBP) 496.67 285.79 335.35 280.69 FARMER TRADER PROCESSOR Margin (WSP - TC) 153.33 114.21 164.65 219.31 PROVINCE ALL TYPES GREEN MATURED TOTAL GREEN MATURED TOTAL GREEN MATURED TOTAL  For green corn, the Municipal Assembler (MA) incurred the highest total marketing SUPPLY AREAS cost at P59.17 per sack. Other corn traders reported marketing costs per sack as ISABELA 6 6 3 7 10 4 2 6 22 follows: P35.79 for Municipal Assembler-Large Distributor (MA-LD), P35.35 for PANGASINAN 8 4 12 3 2 5 3 1 4 21 ILOILO 6 6 5 5 3 3 14 Provincial Assembler-Medium Distributor (PA-MD) and P30.69 for Provincial CEBU 21 10 31 5 10 15 3 3 6 52 Assembler-Large Distributor (PA-LD). BUKIDNON 6 6 10 10 1 1 17 SOUTH COTABATO 6 6 5 3 8 4 4 18  Informal processors spent P30.00 per sack on transporting green corn. DEMAND AREAS  Among green corn traders the Provincial Assembler-Large Distributor (PA-LD) had METRO MANILA - 10 4 14 4 1 5 19 ILOCOS NORTE - 7 7 3 6 9 16 the highest margin at P219.31 per sack. BULACAN - 4 1 5 4 4 9 BATANGAS - 11 11 3 3 14 CAGAYAN DE ORO CITY - 5 5 3 3 6 11 DAVAO CITY - 9 9 3 1 4 13 SARANGANI - 2 15 17 2 4 6 23

TOTAL 35 32 67 48 73 121 35 26 61 249 Percent 27 49 24 100 NOTE: Iloilo and Cebu aresupply at the same time demand provinces

28 49 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 18. White Corn (Matured) : Average marketing costs and margins by type of marketing participants, South Cotabato, 2009

MATURED CORN

TRADER ITEM FARMER MA-LD PA-LD peso per sack of 50 kilograms A. Cash Costs 20.10 43.15 58.16 a.1 Labor 8.09 20.02 a.2 Transportation 9.60 7.58 8.47 a.3 Material 10.50 8.60 16.34

a.4 Other Operating Expenses 18.88 13.33

B. Imputed Costs 5.25 2.57 8.28

b.1 Depreciation 5.25 2.57 8.28 Total Mktg. Cost, TMC (cash + imputed) 25.35 45.71 66.44 Wholesale Buying Price, WBP 400.00 487.50 Wholesale Selling Price, WSP 531.00 660.00 Total Cost, TC (TMC + WBP) 445.71 553.94 Margin (WSP - TC) 85.29 106.06

 Farmers spent an average of P25.35 per sack of white corn in selling their produce.

 Provincial Assembler-Large Distributor (PA-LD) spent an average of P66.44 per sack in marketing while Municipal Assembler-Large Distributor (MA-LD) spent P45.71 per sack.

 Average net margin were P106.06 per sack for Provincial Assembler-Large Distributor (PA-LD) and P85.29 per sack for Municipal Assembler-Large Distributed (MA-LD).

48 29 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

7. Metro Manila

Table 19. White Corn (Green) : Average marketing costs and margins by type of marketing participants, Metro Manila, 2009

GREEN CORN

TRADER PROCESSOR ITEM INFORMAL RETAILER MA-LD RA-LD IRA IRA-LD PROCESSOR peso per sack of 50 kilograms A. Cash Costs 87.24 82.94 74.90 83.61 99.76 15.43 a.1 Labor 22.17 37.65 39.50 26.00 36.72 a.2 Transportation 31.42 35.29 21.00 48.00 48.58 15.43 a.3 Material 31.90 10.00 9.00 8.27 6.17

a.4 Other Operating Expenses 1.74 5.40 1.33 8.30 B. Imputed Costs 3.15 6.00 14.15 b.1 Depreciation 3.15 6.00 10.74 b.2 Unpaid Labor 3.41 Annexes Total Mktg. Cost, TMC (cash + imputed) 90.39 82.94 80.90 97.76 99.76 15.43 Wholesale Buying Price, WBP 1250.00 900.00 700.00 1300.00 1025.00 1162.50 Wholesale Selling Price, WSP 1050.00 850.00 1500.00 1200.00

Retail Selling Price, RSP 1500.00 Total Cost, TC (TMC + WBP) 1340.39 982.94 780.90 1397.76 1124.76 Margin (WSP - TC); (RSP - TC) 159.61 67.06 69.10 102.24 75.24

 Average marketing costs of green corn traders in Metro Manila ranged from P80.90 to P99.76 per sack. The highest marketing costs were reported by Interregional Assembler-Large Distributor (IRA-LD) followed by the Interregional Assembler (IRA).

 For Interregional Assembler (IRA) and Interregional Assembler-Large Distributor

(IRA-LD), almost half of the cash costs incurred were spent on transportation costs at P48 and P48.58 per sack, respectively.

 Retailers of green corn in Metro Manila got the highest net margin at P159.61 per sack.

 Informal processors spent P15.43 per sack on procurement and this represented transportation costs.

30 47 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 20. White Corn (Matured) : Average marketing costs and margins by type of traders, Metro Manila, 2009

MATURED CORN

TRADER

ITEM RETAILER PA-MD

peso per sack of 50 kilograms A. Cash Costs 80.35 78.08 a.1 Labor 5.75 21.00 a.1 Transportation 37.50 31.25 a.2 Material 9.10 1.50 a.4 Other Operating Expenses 28.00 24.33 B. Imputed Costs 37.39 b.1 Depreciation 34.19 b.2 Unpaid Labor 3.20 Total Mktg. Cost, TMC (cash + imputed) 80.35 115.47 Wholesale Buying Price, WBP 1020.00 900.00 Wholesale Selling Price, WSP 1150.00 Retail Selling Price, RSP 1280.00 Total Cost, TC (TMC + WBP) 1100.35 1015.47 Margin (WSP - TC); (RSP - TC) 179.65 134.53

 The average marketing costs of corn grain traders in Metro Manila were P80.35 per sack for retailers and P115.47 per sack for Provincial Assembler-Medium Distributor (PA-MD). The big portion of the cash costs went to transportation, other operating expenses and labor.

 Retailers netted P179.65 per sack while Provincial Assembler-Medium Distributor (PA-MD) gained P134.53 per sack.

46 31 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

8. Ilocos Norte Informal Processor – who procure mostly green corn then cooked either boiled commonly known as “nilagang mais” or broiled corn or “inihaw na mais” before selling into snacks. Table 21. White Corn (Matured) : Average marketing costs and margins by type of marketing participants, Ilocos Norte, 2009 Leased / Rented – refers to the area cultivated by a lessee, which belongs to or is legally possessed by another, the lessor. The rental payment is in the MATURED CORN form of a fixed amount of either money, produce or both. TRADER PROCESSOR ITEM INFORMAL CORNICK Marketing Channel- refers to outlets handling the movement of a product from the MA PA-MD PA-LD RA-LD IRA PROCESSOR PROCESSOR producers to the first consumers. It is also known as distribution peso per sack of 50 kilograms channel.

A. Cash Costs 48.76 52.13 28.11 44.69 51.77 38.12 46.22 a.1 Labor 8.28 4.00 5.51 19.68 9.71 4.26 5.30 Margin - Margin is the difference between the value of a product at one stage and

a.2 Transportation 14.00 9.03 5.20 34.57 33.86 32.56 the value of the same product at another stage. In this study, Trader a.3 Material 13.53 10.30 0.59 7.00 0.50 margin is derived by deducting total marketing cost and wholesale a.4 Other Operating Expenses 26.95 23.83 12.98 12.81 7.49 7.86 buying price from the wholesale selling price for assembler, other B. Imputed Costs 18.79 13.92 17.17 10.60 6.84 wholesaler and cooperative. For retailer, margin is derived by b.1 Depreciation 18.79 8.92 17.17 10.60 6.84 deducting Total Marketing Cost and Wholesale Buying Price from b.2 Upaid labor 5.00 Retail Selling Price. In this study, margin is used interchangeably with Total Mktg. Cost, TMC (cash + imputed) 67.55 66.05 45.28 55.29 58.61 38.12 46.22 Wholesale Buying Price, WBP 1400.00 1250.00 1258.50 1625.00 1383.38 1300.00 1466.67 net returns and net gains.

Wholesale Selling Price, WSP 1500.00 1383.38 1383.50 1750.00 1504.23 Tenanted – refers to the rented lands wherein the rental arrangement is in the Total Cost, TC (TMC + WBP) 1467.55 1316.05 1303.78 1680.29 1441.99 form of share of produce or harvest. Margin (WSP - TC) 32.45 67.33 79.72 69.71 62.24

 The average marketing costs of corn traders in Ilocos Norte ranged from P38.12 to P67.55 per sack.

 The Municipal Assembler (MA) registered the highest average marketing cost at P67.55 per sack. Cash costs comprised other operating expenses at P26.95; material costs at P13.53; labor costs at P8.28.

 The Municipal Assembler (MA) registered the lowest margin at P32.45 per sack. Other types of traders had net margins ranging from P62.24 to P79.72 per sack.

32 45 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

V. Definition of Terms Used in the Study 9. Bulacan

Agent – An intermediary who facilitates the flow of goods and services from Table 22. White Corn (Green) : Average marketing costs and margins by type of traders, producers to end-users, but who unlike other members of the Bulacan, 2009 distribution channels, does not take the title or ownership. He or she receives cash advance by the trader, procures on behalf of the trader GREEN CORN TRADER and adds his/her profit margin from the price he/she buys from the ITEM RETAILER MA farmer. He or she does not take possession of the commodity. peso per sack of 50 kilograms Assembler – A type of trader who sources and procures stocks from contract A. Cash Costs 43.53 59.86 growers or independent farmers in one to two barangays in a specific a.1 Labor 20.45 municipality, and transports the produce to a trading or market center. a.2 Transportation 20.00 30.68 a.3 Material 10.61 8.73 He/she usually has agents or relatives responsible for procurement and assembly. a.4 Other Operating Expenses 12.91 B. Imputed Costs 16.80 8.79 Cash Costs – are those which direct cash outlays by the marketing participants. b.1 Depreciation 3.94 11.80 b.2 Unpaid Labor 4.85 5.00 Certificate of Land Transfer (CLT) or Certificate of Land Ownership Award (CLOA) – Total Mktg. Cost, TMC (cash + imputed) 60.33 68.65 includes all those parcels that are still being paid by the operation land Wholesale Buying Price, WBP 1050.00 983.33 Wholesale Selling Price, WSP 1158.33 transfer (OLT). OLT is a systematic transfer of ownership of tenanted rice Retail Selling Price, RSP 1200.00 and corn lands from the landowners to the tenant-tillers while CLOA are titles issued to farmers for their farmlot as covered by Republic Act 6657 Total Cost, TC (TMC + WBP) 1110.33 1051.98 Margin (WSP - TC); (RSP - TC) 89.67 106.35 otherwise known as Comprehensive Agrarian Reform Law.

Commercial Miller - one who mills corn grains into corn grits in large quantities  The Municipal Assembler (MA), spent an average of P68.65 in marketing green corn with specified milling fee. and correspondingly recorded margin at P106.35 per sack.

Consignment – Payment was being done after the disposal of the products as  Corn retailers reported marketing expenses averaging P60.33 per sack of green agreed by both the farmer and the trader. corn. This covered cash costs of P43.53 and imputed cost of P16.80. The margin was P89.67 per sack. Corn Processor - transforms corn grains into other corn by products such as grits,

cornick, popcorn and other processed products.

Corn grains - small hard seed of corn used for feeds, etc., botanically known as caryosis, a dry or seeded berry in which the fruit coat and seed coat refused it from a single grain.

Green Corn – corn harvested before the full maturity, can be utilized for human consumption.

Imputed Costs – do not involved actual outlays in cash or in kind; they represent the costs using own resources in a particular activity and are given by the values of the best alternative uses forgone.

44 33 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

J. Problems/Constraints Encountered Table 23. White Corn (Matured) : Average marketing costs and margins by cornick processor,

Bulacan, 2009 a) Farmer

MATURED CORN  The common problems mentioned by the farmer-respondents interviewed PROCESSOR were price fluctuation or unstable price of corn and low farmgate price. CORNICK ITEM PROCESSOR  Other problems cited were the control of price by traders, high cost of peso per sack of 50 trucking due to lack of transportation in the area and inflow of imported corn kilograms and wheat.

A. Cash Costs 25.00

a.1 Labor 8.33 b) Trader

a.2 Transportation 8.33  Among trader-respondents, the common problems cited were competition a.4 Other Operating Expenses 8.33 with other traders, low quality of corn bought and price fluctuation or Total Procurement Cost, TMC (cash + noncash) 25.00 unstable price. Wholesale Buying Price, WBP 1385.00  Other problems cited were bad debts, high capital investment, low selling  For cornick processors, average procurement cost was P25 per sack of price, low demand for corn and weather condition.

corn. This amount represented cash expenses. c) Processor

 The common problem disclosed by processors was the insufficient supply of corn. Other problems mentioned were high capital investment, competition with other processors, price fluctuation and high buying price of corn procured.

34 43 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

 Twelve (12) farmers wanted to have information on demand for the 10. Batangas commodity. Eight (8) farmers needed information on production while six (6) were interested on supply. Table 24. White Corn (Green) : Average marketing costs and margins by type of marketing  There were 37 farmers who sourced market information from other farmers. participants, Batangas, 2009 Another 13 farmers obtained information from traders. Five (5) farmers GREEN CORN relied on reports of buyers within the province. The rest of the respondents TRADER got marketing information from government extension workers and bulletin PROCESSOR ITEM INFORMAL boards. BA MA-LD PA PA-MD RA-LD PROCESSOR peso per sack of 50 kilograms a) Traders A. Cash Costs 61.17 54.26 37.27 73.82 43.43 48.31

 Moreover, 52 trader-respondents or 55 percent, who needed information on a.1 Labor 12.87 28.20 33.86 19.72

wholesale buying. Information on wholesale selling was mentioned by 28 a.2 Transportation 31.24 41.60 33.33 16.43 48.31

traders (30 percent). There were 14 (15 percent) who said they needed retail a.3 Material 10.81 7.50 8.27 1.80

price information. a.4 Other Operating Expenses 6.25 5.16 0.80 4.83 7.28 B. Imputed Costs 23.08 20.54 11.46 0.15  Thirty (30) traders (35 percent) needed information on quantity of supply and b.1 Depreciation 1.88 0.54 10.56 0.15 demand, while 25 (30 percent) needed information on quantity of production. b.2 Unpaid Labor 21.20 20.00 0.90

 Total Mktg. Cost, TMC (cash + imputed) 61.17 77.34 57.81 85.28 43.58 48.31 About 101 traders (60 percent) got market information from farmers. Thirty three traders sourced from government extension workers and 17 of them Wholesale Buying Price, WBP 750.00 782.00 765.00 917.00 904.50 1083.33 Wholesale Selling Price, WSP 917.00 1042.00 939.50 1168.75 1012.00 from buyers within provinces. The rest got marketing information through government extension workers, radio broadcasts, and bulletin boards. Total Cost, TC (TMC + WBP) 811.17 859.34 822.81 1002.28 948.08 Margin (WSP - TC) 105.83 182.66 116.69 166.47 63.92

b) Processors  Among the traders of green corn operating in the area of Batangas,  Among processors, 33 (56 percent) signified their price information need on Provincial Assembler-Medium Distributor (PA-MD) and Municipal wholesale buying price, 15 on wholesale selling and 11 on retail selling. Assembler-Large Distributor (MA-LD) had incurred the highest marketing costs at P85.28 and P77.34 per sack respectively.  Fifty-seven (57) of the processors (35 percent) needed information on both quantity of supply and demand while 47 (29 percent) said they needed  Municipal Assembler-Large Distributor registered the highest margin at information on quantity of production. P182.66 per sack on the average.

 The source of market information of 43 processor respondents (46 percent)  Informal processors procured green corn at an average cost of P48.31 per were traders. Another 13 (14 percent) got information from other traders sack. and 10 (10 percent) from government extension worker. Eight respondents (8 percent) stated their source of information was the bulletin boards. The rest got marketing information from other processors, buyers from other provinces, government extension workers and radio broadcasts.

42 35 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

11. Cagayan De Oro City  Iloilo and Cebu had almost the same peak seasons of trading which were from January to April and from June to December.

Table 25. White Corn (Matured) : Average marketing costs and margins by type of marketing  In Bukidnon, the peak season of trading was August to September.

participants, Cagayan De Oro City, 2009  In South Cotabato, peak season of trading was from March to May and November.

MATURED CORN  In Metro Manila, peak season of trading started towards the end of the third quarter and lasted up to December. TRADER PROCESSOR ITEM FOOD

RETAILER MA RA-LD PROCESSOR* b.) Marketing Information Needs and Sources

peso per sack of 50 kilograms

A. Cash Costs 30.41 46.73 24.91 19.17 Table 29. White Corn: Marketing information needs of respondents, by type of information, a.1 Labor 16.44 13.60 18.93 selected provinces, Philippines, 2009

a.2 Transportation 24.00 19.17 Reporting Information Need a.3 Material 4.53 7.27 2.16 Farmer Trader Processor

a.4 Other Operating Expenses 9.44 1.86 3.83 A. Type

B. Imputed Costs 14.46 0.42 27.72 Price 58 94 59 Wholesale Buying 17 52 33 b.1 Depreciation 14.46 0.42 27.72 Wholesale Selling 28 28 15 Total Mktg. Cost, TMC (cash + imputed) 44.87 47.15 52.64 19.17 Retail Price 13 14 11 Wholesale Buying Price, WBP 881.25 450.00 475.00 550.00 Volume 26 85 161

Wholesale Selling Price, WSP 550.00 565.00 Production 8 25 47 Supply 6 30 57 Retail Selling Price, RSP 1150.00 Demand 12 30 57 Total Cost, TC (TMC + WBP) 926.12 497.15 527.64 B. Source of Market Information 65 176 93 Margin (WSP - TC); (RSP - TC) 223.88 52.85 37.36 Farmers/Other Farmers 37 101 13 Traders 13 43 Processors/Other Processors 3 2  Corn traders in Cagayan de Oro City incurred average marketing costs ranging from P44.87 to P52.64 per sack. Gov. Extension Worker 3 33 10 Buyers w/in the Prov. 5 17 6  Only the Municipal Assembler (MA) incurred transportation expenses at P24.00 per Buyers fr. Others Prov. 2 1 sack. The Regional Assembler-Large Distributor (RA-LD) had the least margin at Radio Broadcast 2 Bulletin Boards 1 11 8 P37.36 per sack. Others 6 7 10

Note: Multiple responses  Retailers had the highest average margin at P223.88 per sack. c) Farmers

 At the farmer level, 28 respondents or 48 percent needed information on wholesale selling while 17 needed information on wholesale buying. There were farmers who said they need information on retail prices.

36 41 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

I. Other Marketing Informations 12. Davao City

a.) Peak and Lean Seasons of Trading Table 26. White Corn (Matured) : Average marketing costs and margins by type of marketing

Figure 14. White Corn: Peak and lean season of trading, selected provinces, participants, Davao City, 2009 Philippines, 2009

MATURED CORN MONTH TRADER PROCESSOR Province JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC ITEM COMMERCIAL Isabela RETAILERpeso per PA-MD sack of PA-LD RA-LD IRA-LD CORN MILLER 50 kilograms Pangasinan A. Cash Costs 18.82 24.14 41.83 72.82 59.39 33.50 a.1 Labor 13.80 7.63 16.41 27.56 14.62 12.00 Iloilo a.2 Transportation 3.34 5.00 11.92 12.50 20.00 a.3 Material 0.77 10.85 13.41 8.87 7.44 Cebu a.4 Other Operating Expenses 4.25 2.31 7.00 24.47 24.84 1.50 B. Imputed Costs 1.49 0.13 16.49 6.65 6.17 Bukidnon b.1 Depreciation 1.49 0.13 16.49 6.65 6.17 Total Mktg. Cost, TMC (cash + imputed) 20.31 24.27 58.32 79.47 65.56 33.50 South Cotabato Wholesale Buying Price, WBP 1025.00 550.00 550.00 652.00 818.50 550.00 Wholesale Selling Price, WSP 650.00 750.00 900.00 881.00 Metro Manila Retail Selling Price, RSP 1175.00 Total Cost, TC (TMC + WBP) 1045.31 574.27 608.32 731.47 884.06 Ilocos Norte Margin (WSP - TC); (RSP - TC) 129.69 75.73 141.68 168.53 -3.06

Bulacan  The Regional Assembler-Large Distributor (RA-LD) had the highest marketing

Batangas costs which averaged of P79.47 per sack. Labor cost accounted for the biggest share in cash costs expenses at P27.56 per sack.

Cagayan de Oro City  Margin was highest for Provincial Assembler-Large Distributor (PA-LD) at P141.68 per sack. The Interregional Assembler-Large Distributor (IRA-LD) Davao City incurred an average net loss of P3.06 per sack.

Sarangani Legend: (peak) (lean)

 In Isabela, peak seasons of trading were January to May and July to August. It was lean period from April to June.

 In Pangasinan, trading was most active during the months of April to July.

40 37 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

13. Sarangani Table 28. White Corn (Matured): Average marketing costs and margins by type of traders, Sarangani, 2009

Table 27. White Corn (Green) : Average marketing costs and margins by type of marketing MATURED CORN

participants, Sarangani, 2009 TRADER ITEM RETAILER BA MA MA-MD MA-LD PA-MD RA-LD GREEN CORN peso per sack of 50 kilograms TRADER PROCESSOR ITEM INFORMAL A. Cash Costs 46.99 39.94 44.00 55.48 33.60 48.65 34.03

RETAILER PA PROCESSOR a.1 Labor 12.59 15.22 20.14 16.75 14.95 9.31 10.52

peso per sack of 50 kilograms a.2 Transportation 19.40 11.98 0.00 30.24 10.05 30.19 20.35

A. Cash Costs 44.08 40.53 25.91 a.3 Material 13.36 7.30 11.17 6.70 6.52 6.94 3.03

a.1 Labor 9.87 12.3 a.4 Other Operating Expenses 1.64 5.45 12.69 1.79 2.08 2.21 0.13

a.2 Transportation B. Imputed Costs 16.92 9.78 17.55 18.19 14.17 1.25 1.42 24.08 18.23 25.91 b.1 Depreciation 16.92 9.78 10.85 18.19 13.24 1.42 a.3 Material 10.13 10 b.2 Unpaid Labor 6.70 0.94 B. Imputed Costs 6.38 5.58 Total Mktg. Cost, TMC (cash + imputed) 63.91 49.72 61.55 73.66 47.77 49.90 35.45 b.1 Depreciation 6.38 5.58 Wholesale Buying Price, WBP 737.50 404.00 516.67 523.75 505.00 550.00 490.00 Total Mktg. Cost, TMC (cash + imputed) 50.46 46.11 25.91 Wholesale Selling Price, WSP 498.50 590.00 737.50 550.00 563.50 675.00 Wholesale Buying Price, WBP 1400.00 625.00 1316.67 Wholesale Selling Price, WSP 850.00 Retail Selling Price, RSP 862.50 Retail Selling Price, RSP 1700.00 Total Cost, TC (TMC + WBP) 801.41 453.72 578.22 597.41 552.77 599.90 525.45 Margin (WSP - TC); (RSP - TC) 61.09 44.78 11.78 140.09 -2.77 -36.40 149.55 Total Cost, TC (TMC + WBP) 1450.46 671.11 Margin (WSP - TC); (RSP - TC) 249.54 178.89  In Sarangani, Municipal Assembler-Medium Distributor (MA-MD) spent the highest  marketing cost at P73.66 per sack and P55.48 were cash outlays. Retailers of green corn in Sarangani spent an average of P50.46 per sack on marketing. They recorded a net margin of P249.54 per sack.  Regional Assembler-Large Distributor (RA-LD) and Municipal Assembler-Large

 Informal processors spent an average of P25.91 per sack. Distributor (MA-LD) registered higher margins at P149.55 and P140.09 per sack, respectively.

 The Municipal Assembler-Large Distributor (MA-LD) and Provincial Assembler- Medium Distributor (PA-MD) had net losses of P2.77 and P36.40 per sack, respectively.

38 39 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

13. Sarangani Table 28. White Corn (Matured): Average marketing costs and margins by type of traders, Sarangani, 2009

Table 27. White Corn (Green) : Average marketing costs and margins by type of marketing MATURED CORN

participants, Sarangani, 2009 TRADER ITEM RETAILER BA MA MA-MD MA-LD PA-MD RA-LD GREEN CORN peso per sack of 50 kilograms TRADER PROCESSOR ITEM INFORMAL A. Cash Costs 46.99 39.94 44.00 55.48 33.60 48.65 34.03

RETAILER PA PROCESSOR a.1 Labor 12.59 15.22 20.14 16.75 14.95 9.31 10.52

peso per sack of 50 kilograms a.2 Transportation 19.40 11.98 0.00 30.24 10.05 30.19 20.35

A. Cash Costs 44.08 40.53 25.91 a.3 Material 13.36 7.30 11.17 6.70 6.52 6.94 3.03

a.1 Labor 9.87 12.3 a.4 Other Operating Expenses 1.64 5.45 12.69 1.79 2.08 2.21 0.13

a.2 Transportation B. Imputed Costs 16.92 9.78 17.55 18.19 14.17 1.25 1.42 24.08 18.23 25.91 b.1 Depreciation 16.92 9.78 10.85 18.19 13.24 1.42 a.3 Material 10.13 10 b.2 Unpaid Labor 6.70 0.94 B. Imputed Costs 6.38 5.58 Total Mktg. Cost, TMC (cash + imputed) 63.91 49.72 61.55 73.66 47.77 49.90 35.45 b.1 Depreciation 6.38 5.58 Wholesale Buying Price, WBP 737.50 404.00 516.67 523.75 505.00 550.00 490.00 Total Mktg. Cost, TMC (cash + imputed) 50.46 46.11 25.91 Wholesale Selling Price, WSP 498.50 590.00 737.50 550.00 563.50 675.00 Wholesale Buying Price, WBP 1400.00 625.00 1316.67 Wholesale Selling Price, WSP 850.00 Retail Selling Price, RSP 862.50 Retail Selling Price, RSP 1700.00 Total Cost, TC (TMC + WBP) 801.41 453.72 578.22 597.41 552.77 599.90 525.45 Margin (WSP - TC); (RSP - TC) 61.09 44.78 11.78 140.09 -2.77 -36.40 149.55 Total Cost, TC (TMC + WBP) 1450.46 671.11 Margin (WSP - TC); (RSP - TC) 249.54 178.89  In Sarangani, Municipal Assembler-Medium Distributor (MA-MD) spent the highest  marketing cost at P73.66 per sack and P55.48 were cash outlays. Retailers of green corn in Sarangani spent an average of P50.46 per sack on marketing. They recorded a net margin of P249.54 per sack.  Regional Assembler-Large Distributor (RA-LD) and Municipal Assembler-Large

 Informal processors spent an average of P25.91 per sack. Distributor (MA-LD) registered higher margins at P149.55 and P140.09 per sack, respectively.

 The Municipal Assembler-Large Distributor (MA-LD) and Provincial Assembler- Medium Distributor (PA-MD) had net losses of P2.77 and P36.40 per sack, respectively.

38 39 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

I. Other Marketing Informations 12. Davao City

a.) Peak and Lean Seasons of Trading Table 26. White Corn (Matured) : Average marketing costs and margins by type of marketing

Figure 14. White Corn: Peak and lean season of trading, selected provinces, participants, Davao City, 2009 Philippines, 2009

MATURED CORN MONTH TRADER PROCESSOR Province JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC ITEM COMMERCIAL Isabela RETAILERpeso per PA-MD sack of PA-LD RA-LD IRA-LD CORN MILLER 50 kilograms Pangasinan A. Cash Costs 18.82 24.14 41.83 72.82 59.39 33.50 a.1 Labor 13.80 7.63 16.41 27.56 14.62 12.00 Iloilo a.2 Transportation 3.34 5.00 11.92 12.50 20.00 a.3 Material 0.77 10.85 13.41 8.87 7.44 Cebu a.4 Other Operating Expenses 4.25 2.31 7.00 24.47 24.84 1.50 B. Imputed Costs 1.49 0.13 16.49 6.65 6.17 Bukidnon b.1 Depreciation 1.49 0.13 16.49 6.65 6.17 Total Mktg. Cost, TMC (cash + imputed) 20.31 24.27 58.32 79.47 65.56 33.50 South Cotabato Wholesale Buying Price, WBP 1025.00 550.00 550.00 652.00 818.50 550.00 Wholesale Selling Price, WSP 650.00 750.00 900.00 881.00 Metro Manila Retail Selling Price, RSP 1175.00 Total Cost, TC (TMC + WBP) 1045.31 574.27 608.32 731.47 884.06 Ilocos Norte Margin (WSP - TC); (RSP - TC) 129.69 75.73 141.68 168.53 -3.06

Bulacan  The Regional Assembler-Large Distributor (RA-LD) had the highest marketing

Batangas costs which averaged of P79.47 per sack. Labor cost accounted for the biggest share in cash costs expenses at P27.56 per sack.

Cagayan de Oro City  Margin was highest for Provincial Assembler-Large Distributor (PA-LD) at P141.68 per sack. The Interregional Assembler-Large Distributor (IRA-LD) Davao City incurred an average net loss of P3.06 per sack.

Sarangani Legend: (peak) (lean)

 In Isabela, peak seasons of trading were January to May and July to August. It was lean period from April to June.

 In Pangasinan, trading was most active during the months of April to July.

40 37 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

11. Cagayan De Oro City  Iloilo and Cebu had almost the same peak seasons of trading which were from January to April and from June to December.

Table 25. White Corn (Matured) : Average marketing costs and margins by type of marketing  In Bukidnon, the peak season of trading was August to September.

participants, Cagayan De Oro City, 2009  In South Cotabato, peak season of trading was from March to May and November.

MATURED CORN  In Metro Manila, peak season of trading started towards the end of the third quarter and lasted up to December. TRADER PROCESSOR ITEM FOOD

RETAILER MA RA-LD PROCESSOR* b.) Marketing Information Needs and Sources

peso per sack of 50 kilograms

A. Cash Costs 30.41 46.73 24.91 19.17 Table 29. White Corn: Marketing information needs of respondents, by type of information, a.1 Labor 16.44 13.60 18.93 selected provinces, Philippines, 2009

a.2 Transportation 24.00 19.17 Reporting Information Need a.3 Material 4.53 7.27 2.16 Farmer Trader Processor

a.4 Other Operating Expenses 9.44 1.86 3.83 A. Type

B. Imputed Costs 14.46 0.42 27.72 Price 58 94 59 Wholesale Buying 17 52 33 b.1 Depreciation 14.46 0.42 27.72 Wholesale Selling 28 28 15 Total Mktg. Cost, TMC (cash + imputed) 44.87 47.15 52.64 19.17 Retail Price 13 14 11 Wholesale Buying Price, WBP 881.25 450.00 475.00 550.00 Volume 26 85 161

Wholesale Selling Price, WSP 550.00 565.00 Production 8 25 47 Supply 6 30 57 Retail Selling Price, RSP 1150.00 Demand 12 30 57 Total Cost, TC (TMC + WBP) 926.12 497.15 527.64 B. Source of Market Information 65 176 93 Margin (WSP - TC); (RSP - TC) 223.88 52.85 37.36 Farmers/Other Farmers 37 101 13 Traders 13 43 Processors/Other Processors 3 2  Corn traders in Cagayan de Oro City incurred average marketing costs ranging from P44.87 to P52.64 per sack. Gov. Extension Worker 3 33 10 Buyers w/in the Prov. 5 17 6  Only the Municipal Assembler (MA) incurred transportation expenses at P24.00 per Buyers fr. Others Prov. 2 1 sack. The Regional Assembler-Large Distributor (RA-LD) had the least margin at Radio Broadcast 2 Bulletin Boards 1 11 8 P37.36 per sack. Others 6 7 10

Note: Multiple responses  Retailers had the highest average margin at P223.88 per sack. c) Farmers

 At the farmer level, 28 respondents or 48 percent needed information on wholesale selling while 17 needed information on wholesale buying. There were farmers who said they need information on retail prices.

36 41 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

 Twelve (12) farmers wanted to have information on demand for the 10. Batangas commodity. Eight (8) farmers needed information on production while six (6) were interested on supply. Table 24. White Corn (Green) : Average marketing costs and margins by type of marketing  There were 37 farmers who sourced market information from other farmers. participants, Batangas, 2009 Another 13 farmers obtained information from traders. Five (5) farmers GREEN CORN relied on reports of buyers within the province. The rest of the respondents TRADER got marketing information from government extension workers and bulletin PROCESSOR ITEM INFORMAL boards. BA MA-LD PA PA-MD RA-LD PROCESSOR peso per sack of 50 kilograms a) Traders A. Cash Costs 61.17 54.26 37.27 73.82 43.43 48.31

 Moreover, 52 trader-respondents or 55 percent, who needed information on a.1 Labor 12.87 28.20 33.86 19.72

wholesale buying. Information on wholesale selling was mentioned by 28 a.2 Transportation 31.24 41.60 33.33 16.43 48.31

traders (30 percent). There were 14 (15 percent) who said they needed retail a.3 Material 10.81 7.50 8.27 1.80

price information. a.4 Other Operating Expenses 6.25 5.16 0.80 4.83 7.28 B. Imputed Costs 23.08 20.54 11.46 0.15  Thirty (30) traders (35 percent) needed information on quantity of supply and b.1 Depreciation 1.88 0.54 10.56 0.15 demand, while 25 (30 percent) needed information on quantity of production. b.2 Unpaid Labor 21.20 20.00 0.90

 Total Mktg. Cost, TMC (cash + imputed) 61.17 77.34 57.81 85.28 43.58 48.31 About 101 traders (60 percent) got market information from farmers. Thirty three traders sourced from government extension workers and 17 of them Wholesale Buying Price, WBP 750.00 782.00 765.00 917.00 904.50 1083.33 Wholesale Selling Price, WSP 917.00 1042.00 939.50 1168.75 1012.00 from buyers within provinces. The rest got marketing information through government extension workers, radio broadcasts, and bulletin boards. Total Cost, TC (TMC + WBP) 811.17 859.34 822.81 1002.28 948.08 Margin (WSP - TC) 105.83 182.66 116.69 166.47 63.92

b) Processors  Among the traders of green corn operating in the area of Batangas,  Among processors, 33 (56 percent) signified their price information need on Provincial Assembler-Medium Distributor (PA-MD) and Municipal wholesale buying price, 15 on wholesale selling and 11 on retail selling. Assembler-Large Distributor (MA-LD) had incurred the highest marketing costs at P85.28 and P77.34 per sack respectively.  Fifty-seven (57) of the processors (35 percent) needed information on both quantity of supply and demand while 47 (29 percent) said they needed  Municipal Assembler-Large Distributor registered the highest margin at information on quantity of production. P182.66 per sack on the average.

 The source of market information of 43 processor respondents (46 percent)  Informal processors procured green corn at an average cost of P48.31 per were traders. Another 13 (14 percent) got information from other traders sack. and 10 (10 percent) from government extension worker. Eight respondents (8 percent) stated their source of information was the bulletin boards. The rest got marketing information from other processors, buyers from other provinces, government extension workers and radio broadcasts.

42 35 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

J. Problems/Constraints Encountered Table 23. White Corn (Matured) : Average marketing costs and margins by cornick processor,

Bulacan, 2009 a) Farmer

MATURED CORN  The common problems mentioned by the farmer-respondents interviewed PROCESSOR were price fluctuation or unstable price of corn and low farmgate price. CORNICK ITEM PROCESSOR  Other problems cited were the control of price by traders, high cost of peso per sack of 50 trucking due to lack of transportation in the area and inflow of imported corn kilograms and wheat.

A. Cash Costs 25.00

a.1 Labor 8.33 b) Trader

a.2 Transportation 8.33  Among trader-respondents, the common problems cited were competition a.4 Other Operating Expenses 8.33 with other traders, low quality of corn bought and price fluctuation or Total Procurement Cost, TMC (cash + noncash) 25.00 unstable price. Wholesale Buying Price, WBP 1385.00  Other problems cited were bad debts, high capital investment, low selling  For cornick processors, average procurement cost was P25 per sack of price, low demand for corn and weather condition.

corn. This amount represented cash expenses. c) Processor

 The common problem disclosed by processors was the insufficient supply of corn. Other problems mentioned were high capital investment, competition with other processors, price fluctuation and high buying price of corn procured.

34 43 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

V. Definition of Terms Used in the Study 9. Bulacan

Agent – An intermediary who facilitates the flow of goods and services from Table 22. White Corn (Green) : Average marketing costs and margins by type of traders, producers to end-users, but who unlike other members of the Bulacan, 2009 distribution channels, does not take the title or ownership. He or she receives cash advance by the trader, procures on behalf of the trader GREEN CORN TRADER and adds his/her profit margin from the price he/she buys from the ITEM RETAILER MA farmer. He or she does not take possession of the commodity. peso per sack of 50 kilograms Assembler – A type of trader who sources and procures stocks from contract A. Cash Costs 43.53 59.86 growers or independent farmers in one to two barangays in a specific a.1 Labor 20.45 municipality, and transports the produce to a trading or market center. a.2 Transportation 20.00 30.68 a.3 Material 10.61 8.73 He/she usually has agents or relatives responsible for procurement and assembly. a.4 Other Operating Expenses 12.91 B. Imputed Costs 16.80 8.79 Cash Costs – are those which direct cash outlays by the marketing participants. b.1 Depreciation 3.94 11.80 b.2 Unpaid Labor 4.85 5.00 Certificate of Land Transfer (CLT) or Certificate of Land Ownership Award (CLOA) – Total Mktg. Cost, TMC (cash + imputed) 60.33 68.65 includes all those parcels that are still being paid by the operation land Wholesale Buying Price, WBP 1050.00 983.33 Wholesale Selling Price, WSP 1158.33 transfer (OLT). OLT is a systematic transfer of ownership of tenanted rice Retail Selling Price, RSP 1200.00 and corn lands from the landowners to the tenant-tillers while CLOA are titles issued to farmers for their farmlot as covered by Republic Act 6657 Total Cost, TC (TMC + WBP) 1110.33 1051.98 Margin (WSP - TC); (RSP - TC) 89.67 106.35 otherwise known as Comprehensive Agrarian Reform Law.

Commercial Miller - one who mills corn grains into corn grits in large quantities  The Municipal Assembler (MA), spent an average of P68.65 in marketing green corn with specified milling fee. and correspondingly recorded margin at P106.35 per sack.

Consignment – Payment was being done after the disposal of the products as  Corn retailers reported marketing expenses averaging P60.33 per sack of green agreed by both the farmer and the trader. corn. This covered cash costs of P43.53 and imputed cost of P16.80. The margin was P89.67 per sack. Corn Processor - transforms corn grains into other corn by products such as grits,

cornick, popcorn and other processed products.

Corn grains - small hard seed of corn used for feeds, etc., botanically known as caryosis, a dry or seeded berry in which the fruit coat and seed coat refused it from a single grain.

Green Corn – corn harvested before the full maturity, can be utilized for human consumption.

Imputed Costs – do not involved actual outlays in cash or in kind; they represent the costs using own resources in a particular activity and are given by the values of the best alternative uses forgone.

44 33 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

8. Ilocos Norte Informal Processor – who procure mostly green corn then cooked either boiled commonly known as “nilagang mais” or broiled corn or “inihaw na mais” before selling into snacks. Table 21. White Corn (Matured) : Average marketing costs and margins by type of marketing participants, Ilocos Norte, 2009 Leased / Rented – refers to the area cultivated by a lessee, which belongs to or is legally possessed by another, the lessor. The rental payment is in the MATURED CORN form of a fixed amount of either money, produce or both. TRADER PROCESSOR ITEM INFORMAL CORNICK Marketing Channel- refers to outlets handling the movement of a product from the MA PA-MD PA-LD RA-LD IRA PROCESSOR PROCESSOR producers to the first consumers. It is also known as distribution peso per sack of 50 kilograms channel.

A. Cash Costs 48.76 52.13 28.11 44.69 51.77 38.12 46.22 a.1 Labor 8.28 4.00 5.51 19.68 9.71 4.26 5.30 Margin - Margin is the difference between the value of a product at one stage and

a.2 Transportation 14.00 9.03 5.20 34.57 33.86 32.56 the value of the same product at another stage. In this study, Trader a.3 Material 13.53 10.30 0.59 7.00 0.50 margin is derived by deducting total marketing cost and wholesale a.4 Other Operating Expenses 26.95 23.83 12.98 12.81 7.49 7.86 buying price from the wholesale selling price for assembler, other B. Imputed Costs 18.79 13.92 17.17 10.60 6.84 wholesaler and cooperative. For retailer, margin is derived by b.1 Depreciation 18.79 8.92 17.17 10.60 6.84 deducting Total Marketing Cost and Wholesale Buying Price from b.2 Upaid labor 5.00 Retail Selling Price. In this study, margin is used interchangeably with Total Mktg. Cost, TMC (cash + imputed) 67.55 66.05 45.28 55.29 58.61 38.12 46.22 Wholesale Buying Price, WBP 1400.00 1250.00 1258.50 1625.00 1383.38 1300.00 1466.67 net returns and net gains.

Wholesale Selling Price, WSP 1500.00 1383.38 1383.50 1750.00 1504.23 Tenanted – refers to the rented lands wherein the rental arrangement is in the Total Cost, TC (TMC + WBP) 1467.55 1316.05 1303.78 1680.29 1441.99 form of share of produce or harvest. Margin (WSP - TC) 32.45 67.33 79.72 69.71 62.24

 The average marketing costs of corn traders in Ilocos Norte ranged from P38.12 to P67.55 per sack.

 The Municipal Assembler (MA) registered the highest average marketing cost at P67.55 per sack. Cash costs comprised other operating expenses at P26.95; material costs at P13.53; labor costs at P8.28.

 The Municipal Assembler (MA) registered the lowest margin at P32.45 per sack. Other types of traders had net margins ranging from P62.24 to P79.72 per sack.

32 45 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

7. Metro Manila

Table 19. White Corn (Green) : Average marketing costs and margins by type of marketing participants, Metro Manila, 2009

GREEN CORN

TRADER PROCESSOR ITEM INFORMAL RETAILER MA-LD RA-LD IRA IRA-LD PROCESSOR peso per sack of 50 kilograms A. Cash Costs 87.24 82.94 74.90 83.61 99.76 15.43 a.1 Labor 22.17 37.65 39.50 26.00 36.72 a.2 Transportation 31.42 35.29 21.00 48.00 48.58 15.43 a.3 Material 31.90 10.00 9.00 8.27 6.17

a.4 Other Operating Expenses 1.74 5.40 1.33 8.30 B. Imputed Costs 3.15 6.00 14.15 b.1 Depreciation 3.15 6.00 10.74 b.2 Unpaid Labor 3.41 Annexes Total Mktg. Cost, TMC (cash + imputed) 90.39 82.94 80.90 97.76 99.76 15.43 Wholesale Buying Price, WBP 1250.00 900.00 700.00 1300.00 1025.00 1162.50 Wholesale Selling Price, WSP 1050.00 850.00 1500.00 1200.00

Retail Selling Price, RSP 1500.00 Total Cost, TC (TMC + WBP) 1340.39 982.94 780.90 1397.76 1124.76 Margin (WSP - TC); (RSP - TC) 159.61 67.06 69.10 102.24 75.24

 Average marketing costs of green corn traders in Metro Manila ranged from P80.90 to P99.76 per sack. The highest marketing costs were reported by Interregional Assembler-Large Distributor (IRA-LD) followed by the Interregional Assembler (IRA).

 For Interregional Assembler (IRA) and Interregional Assembler-Large Distributor

(IRA-LD), almost half of the cash costs incurred were spent on transportation costs at P48 and P48.58 per sack, respectively.

 Retailers of green corn in Metro Manila got the highest net margin at P159.61 per sack.

 Informal processors spent P15.43 per sack on procurement and this represented transportation costs.

30 47 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

6. South Cotabato

Table 1. White Corn : Number of respondents, selected provinces, Philippines, 2009

Table 17. White Corn (Green) : Average marketing costs and margins by type of marketing PROVINCE FARMER TRADER PROCESSOR TOTAL

participants, South Cotabato, 2009 SUPPLY AREAS ISABELA 6 10 6 22 GREEN CORN PANGASINAN 12 5 4 21 TRADER PROCESSOR ILOILO 6 5 3 14 CEBU 30 15 6 51 ITEM INFORMAL BUKIDNON 6 10 1 17 MA MA-LD PA-MD PA-LD PROCESSOR SOUTH COTABATO 6 8 4 18 DEMAND AREAS peso per sack of 50 kilograms METRO MANILA - 14 5 19 A. Cash Costs 44.68 35.46 16.43 30.58 30.00 ILOCOS NORTE - 7 9 16 a.1 Labor 2.00 5.12 1.54 BULACAN - 5 4 9 BATANGAS - 11 3 14 a.2 Transportation 20.54 21.25 6.00 20.00 30.00 CAGAYAN DE ORO CITY - 5 6 11 a.3 Material 16.62 8.50 8.30 7.76 DAVAO CITY - 9 4 13 SARANGANI - 16 6 22 a.4 Other Operating Expenses 5.52 0.59 2.13 1.28 B. Imputed Costs 14.50 0.32 18.93 0.11 TOTAL 66 120 61 247 Percent 27 49 25 100 b.1 Depreciation 14.50 0.32 1.85 0.11 NOTE: Iloilo and Cebu are both supply and demand areas. b.2 Unpaid Labor 17.08 Total Mktg. Cost, TMC (cash + imputed) 59.17 35.79 35.35 30.69 30.00 Wholesale Buying Price, WBP 437.50 250.00 300.00 250.00 500.00 Wholesale Selling Price, WSP 650.00 400.00 500.00 500.00 Table 1a. White Corn : Number of respondents, by type of marketing participants and by types of corn, selected provinces, Philippines, 2009 Total Cost, TC (TMC + WBP) 496.67 285.79 335.35 280.69 FARMER TRADER PROCESSOR Margin (WSP - TC) 153.33 114.21 164.65 219.31 PROVINCE ALL TYPES GREEN MATURED TOTAL GREEN MATURED TOTAL GREEN MATURED TOTAL  For green corn, the Municipal Assembler (MA) incurred the highest total marketing SUPPLY AREAS cost at P59.17 per sack. Other corn traders reported marketing costs per sack as ISABELA 6 6 3 7 10 4 2 6 22 follows: P35.79 for Municipal Assembler-Large Distributor (MA-LD), P35.35 for PANGASINAN 8 4 12 3 2 5 3 1 4 21 ILOILO 6 6 5 5 3 3 14 Provincial Assembler-Medium Distributor (PA-MD) and P30.69 for Provincial CEBU 21 10 31 5 10 15 3 3 6 52 Assembler-Large Distributor (PA-LD). BUKIDNON 6 6 10 10 1 1 17 SOUTH COTABATO 6 6 5 3 8 4 4 18  Informal processors spent P30.00 per sack on transporting green corn. DEMAND AREAS  Among green corn traders the Provincial Assembler-Large Distributor (PA-LD) had METRO MANILA - 10 4 14 4 1 5 19 ILOCOS NORTE - 7 7 3 6 9 16 the highest margin at P219.31 per sack. BULACAN - 4 1 5 4 4 9 BATANGAS - 11 11 3 3 14 CAGAYAN DE ORO CITY - 5 5 3 3 6 11 DAVAO CITY - 9 9 3 1 4 13 SARANGANI - 2 15 17 2 4 6 23

TOTAL 35 32 67 48 73 121 35 26 61 249 Percent 27 49 24 100 NOTE: Iloilo and Cebu aresupply at the same time demand provinces

28 49 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 2. White Corn : Number of farmer-respondents, by tenurial status, selected provinces, Philippines, 2009 5. Bukidnon

TENURIAL STATUS PROVINCE Owner-operator Tenant Lessee Others* TOTAL Table 16. White Corn (Matured) : Average marketing costs and margins by type of marketing ISABELA 5 1 - - 6 participants, Bukidnon, 2009 PANGASINAN 8 1 3 - 12 ILOILO - 5 - 1 6 MATURED CORN CEBU 8 15 3 4 30 TRADER PROCESSOR BUKIDNON 2 0 1 3 6 ITEM FARMER SOUTH 5 1 - - 6 PA-LD RA-LD FEED MILLER peso per sack of 50 kilograms TOTAL 28 23 7 8 66 Percent 42 35 11 12 100 A. Cash Costs 30.39 60.68 30.50 3.33 * CLOA,rent free, mortgage, stewardship a.1 Labor 1.02 22.07 9.73 22.22 NOTE: Iloilo and Cebu are both supply and demand areas. a.2 Transportation 20.28 13.46 6.50 10.67 a.3 Material 6.58 9.35 3.93 a.4 Other Operating Expenses 2.50 15.80 10.34 Table 3. White Corn : Number of farmer-respondents, by length of farming experience, selected provinces, Philippines, 2009 B. Imputed Costs 0.27 15.77 8.59 Length of Farming Experience b.1 Depreciation 15.77 8.59 PROVINCE b.2 Unpaid Labor 0.27 less than 5 5-10 11-15 16-20 21 & above TOTAL Total Mktg. Cost, TMC (cash + imputed) 30.66 76.45 39.09 32.89

ISABELA 1 2 1 - 2 6 Wholesale Buying Price, WBP 531.67 610.00 625.00

PANGASINAN 2 2 2 - 6 12 Wholesale Selling Price, WSP 620.00 668.33 ILOILO 1 3 1 - 1 6 Total Cost, TC (TMC + WBP) 608.12 649.09 CEBU - 4 1 4 21 30 Margin (WSP - TC) 11.88 19.25 BUKIDNON - 1 - 1 4 6 SOUTH COTABATO - 3 2 - 1 6  Provincial Assemblers of corn in Bukidnon had marketing costs of P76.45 TOTAL 4 15 7 5 35 66 per sack. They reported an average margin of P11.88 per sack. Percent 6 23 11 8 53 100 NOTE: Iloilo and Cebu are both supply and demand areas.  The Regional Assembler-Large Distributor (RA-LD) had marketing margin amounting to P19.25 per sack.

Table 4. White Corn : Number of farmer-respondents, by source of capital for marketing, selected provinces, Philippines, 2009  Feed millers recorded an average procurement cost of P32.89 per sack. Source of Capital for Marketing Self-  Farmers had an average marketing cost of P30.66 per sack. This consists PROVINCE Self- Borrowed financed & TOTAL financed borrowed of P30.39 of cash expenses and P0.27 of imputed costs. SUPPLY AREAS ISABELA 6 - - 6 PANGASINAN 12 -- 12 ILOILO 2 3 1 6 CEBU 27 1 2 30 BUKIDNON 6 - - 6 SOUTH COTABATO 6 - - 6

TOTAL 59 4 3 66 Percent 89 6 5 100 NOTE: Iloilo and Cebu are both supply and demand areas.

50 27

MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 15. White Corn (Matured) : Average marketing costs and margins by type of marketing 10 15 10 14 11 16 TOTAL participants, Cebu, 2009

MATURED CORN 24 120 TRADER PROCESSOR 20 100 ITEM FARMER COMMERCIAL RETAILER IRA IRA-LD CORN MILLER peso per sack of 50 kilograms A. Cash Costs 48.37 77.12 77.72 59.98 37.05 a.1 Labor 16.28 44.38 52.13 42.61 21.55 a.2 Transportation 27.53 24.90 11.25 15.50

7 9 3 a.3 Material 2.82 10.27 2.79 6 8 3 a.4 Other Operating Expenses 1.74 22.47 0.69 3.33 B. Imputed Costs 37.86 20.60 6.61 1.15 b.1 Depreciation 25.86 20.60 6.61 1.15 b.2 Unpaid Labor 12.00 Total Mktg. Cost, TMC (cash + imputed) 86.23 97.72 84.32 61.13 37.05

Wholesale Buying Price, WBP 1050.00 1027.08 1000.00 679.17 Trader of Type Wholesale Selling Price, WSP 1097.92 1090.45 14 15 13 12 13 11

Retail Selling Price, RSP 1190.97 PA-MD PA-LD RA-LD IRA IRA-LD AGENT RETAILER Total Cost, TC (TMC + WBP) 1147.72 1111.41 1061.13 5 Margin (WSP - TC); (RSP - TC) 43.25 -13.49 29.32 PA

 Traders of matured corn in Cebu reported marketing expenses of P61.13 per sack 10 by Interregional Assembler-Large Distributor (IRA-LD), P84.32 by Interregional Assembler (IRA) and P102.31 by retailer.

MA-MD MA-LD  Marketing margin was highest for retailer at P43.25 per sack. The Interregional

Assembler (IRA) reported a negative margin of P13.49 per sack. MA

 Farmers in Cebu spent an average of P86.23 per sack in selling their produce. Of --14--2---12----3----2------72--1--2-2-13------1-2-122-6-2---1121----1------13-----113-2-2 5 8 7 5 9 8 9 3 1----3-----13----11-43-31--214-3----33211101---47 8 3 8 4 5 Table 5. White Corn : Numberoftrader-respondents,: White Corn Table 5. selected provinces, Philippines, 2009 said amount, P48.37 were cash costs while P37.86 were imputed costs. BA

TOTAL Percent PROVINCE SUPPLY AREAS SUPPLY ISABELA PANGASINAN CEBU BUKIDNON COTABATO SOUTH NORTE ILOCOS CITY ORO DE CAGAYAN DAVAO CITY - 1 areas. NOTE: both IloiloCebu demand are and supply - - - - - 1 - - - 3 5 ILOILO AREAS DEMAND MANILA METRO BULACAN BATANGAS SARANGANI

26 51 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

4. Cebu Table 6. White Corn : Number of trader-respondents, by type of business ownership, selected provinces, Philippines, 2009 Type of Business Ownership PROVINCE Single Partnership Corporation TOTAL proprietorship Table 14. White Corn (Green): Average marketing costs and margins by type of marketing SUPPLY AREAS ISABELA 10 - - 10 participants, Cebu, 2009 PANGASINAN 5 - - 5 ILOILO 5 - - 5 GREEN CORN CEBU 10 2 3 15 BUKIDNON 10 - - 10 TRADER PROCESSOR SOUTH COTABATO 8 - - 8 ITEM FARMER INFORMAL DEMAND AREAS BA PA-MD PA-LD PROCESSOR METRO MANILA 14 - - 14 peso per sack of 50 kilograms ILOCOS NORTE 7 - - 7 BULACAN 5 - - 5 A. Cash Costs 17.75 47.90 26.97 18.40 28.47 BATANGAS 11 - - 11 CAGAYAN DE ORO CITY 4 - 1 5 a.1 Labor 4.17 10.19 12.18 5.91 1.33 DAVAO CITY 9 - - 9 a.2 Transportation SARANGANI 14 1 1 16 12.50 20.80 3.25 3.28 26.48 a.3 Material 1.09 8.81 10.46 8.67 TOTAL 112 3 5 120 Percent 93 3 4 100 a.4 Other Operating Expenses 8.10 1.08 0.55 0.66 NOTE: Iloilo and Cebu are both supply and demand areas. B. Imputed Costs 14.69 11.91 14.30 24.85 b.1 Depreciation 14.19 0.57 14.30 12.17 b.2 Unpaid Labor 0.50 11.34 12.68 Total Mktg. Cost, TMC (cash + imputed) 32.44 59.81 41.27 43.25 28.47 Table 7. White Corn : Number of trader-respondents, by source of capital for marketing, selected provinces, Philippines, 2009 Wholesale Buying Price, WBP 333.50 362.50 333.50 402.83 Source of Capital for Marketing Self- Wholesale Selling Price, WSP 500.00 437.50 500.00 PROVINCE Self- financed & Borrowed Others TOTAL financed Total Cost, TC (TMC + WBP) 393.31 403.77 376.75 borrowed SUPPLY AREAS Margin (WSP - TC) 106.69 33.73 123.25 ISABELA 2 2 6 - 10 PANGASINAN 5 - - - 5 ILOILO 2 - 1 2 5 CEBU 15 --- 15  Among marketing participants for green corn, the Barangay Assembler (BA) BUKIDNON 4 2 4 - 10 SOUTH COTABATO 7 - 1 - 8 registered the highest marketing cost of P59.81 per sack.

DEMAND AREAS  Informal processors spent P28.47 per sack in procurement of green corn. They METRO MANILA 12 2 - - 14 ILOCOS NORTE 5 1 1 - 7 incurred mostly cash cost items.

BULACAN 3 - 1 1 5 BATANGAS 11 --- 11  Higher net margin was computed for Provincial Assembler-Large Distributor (PA-LD) CAGAYAN DE ORO CITY 5 - - - 5 DAVAO CITY 6 - 3 - 9 at P123.25, on the average. SARANGANI 12 3 1 - 16  Corn farmers in Cebu incurred an average marketing cost of P32.44 per sack. Of this TOTAL 89 10 18 3 120 Percent 74 8 15 3 100 amount, cash costs were at P17.75 and imputed costs, P14.69. NOTE: Iloilo and Cebu are both supply and demand areas.

52 25 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

3. Iloilo Table 8. White Corn : Number of trader-respondents, by length of trading experience, selected Table 13. White Corn (Green): Average marketing costs and margins by type of marketing provinces, Philippines, 2009 participants, Iloilo, 2009 Length of Trading Experience PROVINCE less than 5 5-10 11-15 16-20 21 & above TOTAL GREEN CO RN SUPPLY AREAS TRADER PROCESSOR ISABELA 2 4 2 2 - 10 ITEM FARMER IN FO RM A L PANGASINAN - - - 1 4 5 RETAILER BA PA-MD PROCESSOR ILOILO 2 2 1 - - 5 CEBU 2 3 4 - 6 15 peso per sack of 50 kilograms BUKIDNON 2 3 2 1 2 10 SOUTH COTABATO 3 4 - 1 - 8 A. Cash Costs 27.01 29.39 55.70 41.68 a.1 L abor 1 0 .4 5 DEMAND AREAS a.2 Transportation 18.06 30.10 41.68 METRO MANILA 2 8 2 - 2 14 ILOCOS NORTE 2 3 1 1 - 7 a.3 Material 25.76 9.11 11.74 BULACAN - 2 2 1 - 5 a.4 Other Operating Expenses 1.25 2.22 3.41 BATANGAS 1 8 - 2 - 11 CAGAYAN DE ORO CITY 3 - - - 2 5 B. Imputed Costs 7.27 28.75 25.08 23.78 DAVAO CITY - 3 3 1 2 9 b.1 Depreciation 7.27 3.75 0.08 0.71 SARANGANI 3 8 1 2 2 16

b.2 Unpaid Labor 25.00 25.00 23.08 TOTAL 22 48 18 12 20 120 Total Mktg. Cost, TMC (cash + imputed) 7.27 55.76 54.47 79.48 41.68 Percent 18 40 15 10 17 100 NOTE: Iloilo and Cebu are both supply and demand areas. Wholesale Buying Price, WBP 800.00 555.50 441.67 433.33 Wholesale Selling Price, WSP 722.00 644.58 Retail Selling Price, RSP 1 0 0 0 .0 0 Total Cost, TC (TMC + WBP) 855.76 609.97 521.15 Margin (WSP - TC); (RSP - TC) 144.24 112.03 123.43 Table 9. White Corn : Number of processor-respondents, selected provinces, Philippines, 2009  Among traders operating in Iloilo, the Provincial Assembler-Medium Distributor (PA- Type of Processor PROVINCE Commercial Informal Food Feed miller TOTAL MD) had the highest marketing cost at an average of P79.48 per sack. miller processor processor SUPPLY AREAS ISABELA - 4 2 - 6  Barangay assemblers spent P54.47 per sack and this was distributed into cash costs PANGASINAN - 3 1 - 4 ILOILO - 3 - - 3 of P29.39 and imputed costs of P25.08. Retailers spent P55.76 per sack in CEBU 3 3 - - 6 BUKIDNON - - - 1 1 marketing. SOUTH COTABATO - 4 - - 4

 The highest net margin was noted among retailers at P144.24 per sack. DEMAND AREAS METRO MANILA - 4 1 - 5 ILOCOS NORTE - 3 6 - 9  Farmers spent relatively low at P7.27 per sack in selling their corn since traders BULACAN - - 3 1 4 BATANGAS - 3 - - 3 picked up the product at their farms. CAGAYAN DE ORO CITY 1 3 2 - 6 DAVAO CITY 1 3 - - 4 SARANGANI 3 3 - - 6

TOTAL 8 36 15 2 61 Percent 13 59 25 3 100 NOTE: Iloilo and Cebu are both supply and demand areas.

24 53 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 12. White Corn (Matured) : Average marketing costs and margins by type of marketing Table 10. White Corn : Number of processor-respondents, by type of business ownership, selected provinces, Philippines, 2009 participants, Pangasinan, 2009 Type of Business Ownership PROVINCE Single Partnership Corporation TOTAL proprietorship MATURED CORN SUPPLY AREAS ISABELA 4 2 - 6 TRADER PROCESSOR PANGASINAN 4 - - 4 ITEM FARMER CORNICK ILOILO 3 - - 3 IRA-LD PROCESSOR CEBU 4 - 2 6 BUKIDNON 1 - - 1 SOUTH COTABATO 4 - - 4 peso per sack of 50 kilograms A. Cash Costs 8.48 19.08 14.06 DEMAND AREAS METRO MANILA 4 - 1 5 a.1 Labor 6.67 4.06 ILOCOS NORTE 9 - - 9 BULACAN 3 - 1 4 a.2 Transportation 5.51 6.25 BATANGAS 3 - - 3 CAGAYAN DE ORO CITY 5 1 - 6 a.3 Material 8.48 5.08 DAVAO CITY 4 - - 4 a.4 Other Operating Expenses SARANGANI 5 - 1 6 1.82 3.75 - B. Imputed Costs 2.60 0.47 TOTAL 53 3 5 61 Percent 87 5 8 100 b.1 Depreciation 2.60 0.47 NOTE: Iloilo and Cebu are both supply and demand areas. Total Mktg. Cost, TMC (cash + imputed) 11.08 19.55 14.06 Wholesale Buying Price, WBP 775.00 1250.00 Wholesale Selling Price, WSP 785.50 Total Cost, TC (TMC + WBP) 794.54

Table 11. White Corn : Number of processor-respondents, by source of capital for marketing, selected Margin (WSP - TC) -9.04 provinces, Philippines, 2009 Source of Capital for Marketing PROVINCE Self-financed Self-financed Borrowed Consignment TOTAL & borrowed  Marketing of matured white corn among farmers and traders in Pangasinan SUPPLY AREAS entailed P11.08 to P19.55 per sack. ISABELA 2 - 3 1 6 PANGASINAN 1 - - 3 4 ILOILO 3 - - - 3  The Interregional Assembler-Large Distributor (IRA-LD) had cash outlay amounting CEBU 5 - 1 - 6 to P19.08 and this was broken down into labor at P6.67, transportation at P5.51 and BUKIDNON 1 - - - 1 SOUTH COTABATO 4 - - - 4 materials at P5.08.

DEMAND AREAS METRO MANILA 3 2 - - 5  Interregional Assembler-Large Distributor (IRA-LD) incurred a net loss of P9.04 per ILOCOS NORTE 8 1 - - 9 sack. BULACAN 2 2 - - 4 BATANGAS 3 - - - 3 CAGAYAN DE ORO CITY 5 - 1 - 6  Farmers spent P11.08 per sack in marketing their matured corn. DAVAO CITY 1 - 3 - 4 SARANGANI 6 - - 6

TOTAL 44 5 8 4 61 Percent 72 8 13 7 100 NOTE: Iloilo and Cebu are both supply and demand areas.

54 23 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

2. Pangasinan Table 12. White Corn : Number of processor-respondents, by length of experience in processing business, selected provinces, Philippines, 2009 Length of Experience in Processing Business PROVINCE Table 11. White Corn (Green) : Average marketing costs and margins by type of marketing less than 5 5-10 11-15 16-20 21 & above TOTAL participants, Pangasinan, 2009 SUPPLY AREAS ISABELA 1 2 - 2 1 6 PANGASINAN - 1 1 - 2 4 GREEN CORN ILOILO - 1 1 - 1 3 CEBU - - 1 - 5 6 TRADER PROCESSOR BUKIDNON 1 - - - - 1 SOUTH COTABATO 3 - - 1 - 4 ITEM FARMER INFORMAL PA PROCESSOR DEMAND AREAS METRO MANILA 3 1 1 5 peso per sack of 50 kilograms ILOCOS NORTE 6 3 - - - 9 BULACAN 1 - - 1 2 4 A. Cash Costs 17.33 43.27 4.33 BATANGAS - 1 - 1 1 3 CAGAYAN DE ORO CITY 3 1 2 - 6 a.1 Labor 12.86 1.21 DAVAO CITY 1 - 2 - 1 4 SARANGANI 2 2 - - 2 6 a.2 Transportation 9.04 2.31 TOTAL 18 11 10 6 16 61 a.3 Material 17.33 14.41 Percent 30 18 16 10 26 100 NOTE: Iloilo and Cebu are both supply and demand areas. a.4 Other Operating Expenses 6.96 0.81 B. Imputed Costs 4.55 b.1 Depreciation 4.55 Total Mktg. Cost, TMC (cash + imputed) 17.33 47.82 4.33 Wholesale Buying Price, WBP 537.00 617.00 Table 13a. White Corn : Number of trader-respondents, by mode of procurement, selected provinces, Philippines, 2009 Wholesale Selling Price, WSP 637.50 Mode of Procurement PROVINCE Picked-up Delivered Both TOTAL Total Cost, TC (TMC + WBP) 584.82 SUPPLY AREAS Margin (WSP - TC) 52.68 ISABELA 3 6 1 10 PANGASINAN 5 5 ILOILO 4 1 - 5 CEBU 11 4 - 15  BUKIDNON 1 6 3 10 In Pangasinan, the average marketing costs of green corn per sack ranged from SOUTH COTABATO 7 1 8 P4.33 for the processors expenses to P47.82 for the Provincial Assembler (PA). DEMAND AREAS  Farmers in Pangasinan spent an average of P17.33 per sack in selling their corn. METRO MANILA 9 3 2 14 ILOCOS NORTE 4 2 1 7 BULACAN 3 2 - 5  Provincial Assembler (PA) had an average net margin of P52.68 per sack. BATANGAS 4 7 - 11 CAGAYAN DE ORO CITY - 5 - 5 DAVAO CITY 1 8 - 9 SARANGANI 4 10 2 16

TOTAL 56 55 9 120 Percent 47 46 8 100 NOTE: Iloilo and Cebu are both supply and demand areas.

22 55 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

 Processors spent an average of P10.96 per sack on the procurement of green corn. Table 13b. White Corn : Number of processor-respondents, by mode of procurement,

selected provinces, Philippines, 2009  Mode of Procurement Retailers had an average net margin of P111.34 per sack . The Provincial Assembler- PROVINCE Picked-up Delivered Both TOTAL Large Distributor (PA-LD) netted P86.03. SUPPLY AREAS ISABELA 5 - 1 6 PANGASINAN 4 - - 4 Table 10. White Corn (Matured) : Average marketing costs and margins by type of marketing ILOILO 2 1 - 3 CEBU 5 1 - 6 participants, Isabela, 2009 BUKIDNON 1 1 SOUTH COTABATO 1 3 4 MATURED CORN TRADER PROCESSOR DEMAND AREAS METRO MANILA 4 1 5 ITEM FARMER CORNICK ILOCOS NORTE 4 3 2 9 MA-MD MA-LD PA-LD PROCESSOR BULACAN 1 3 - 4 BATANGAS 2 1 - 3 peso per sack of 50 kilograms CAGAYAN DE ORO CITY 4 2 - 6 DAVAO CITY 4 - 4 A. Cash Costs 14.73 17.93 41.73 36.85 20.19 SARANGANI 2 4 - 6 a.1 Labor 5.00 20.82 10.79 6.82 TOTAL 38 20 3 61 a.2 Transportation 6.67 2.50 2.60 15.14 7.57 Percent 62 33 5 100 NOTE: Iloilo and Cebu are both supply and demand areas. a.3 Material 8.06 2.18 6.38 4.15

a.4 Other Operating Expenses 8.25 11.92 6.77 5.80

B. Imputed Costs 15.63 10.42 26.89 1.55

b.1 Depreciation 11.46 10.42 26.89 1.55

b.2 Unpaid Labor 4.17 Table 14a. White Corn : Number of trader-respondents, by term of payment in procurement, selected provinces,Philippines,2009 Total Mktg. Cost, TMC (cash + imputed) 30.36 28.34 68.62 38.40 20.19 Term of Payment in Procurement PROVINCE Wholesale Buying Price, WBP 1325.00 1456.50 1325.00 1525.00 Cash Credit Consignment TOTAL SUPPLY AREAS Wholesale Selling Price, WSP 1375.00 1544.50 1400.00 ISABELA 8 1 1 10 PANGASINAN 5 - - 5 Total Cost, TC (TMC + WBP) 1353.34 1525.12 1363.40 ILOILO 1 - 4 5 Margin (WSP - TC) 21.66 19.38 36.60 CEBU 10 2 3 15 BUKIDNON 7 3 - 10 SOUTH COTABATO 7 - 1 8  Municipal Assembler-Large Distributor (MA-LD) recorded the highest marketing cost DEMAND AREAS METRO MANILA 10 1 3 14 at P68.62 per sack, of which P41.73 were cash costs and P26.89 were imputed costs. ILOCOS NORTE 7 - - 7 BULACAN 4 1 - 5  Corn farmers spent an average of P30.36 per sack in marketing their product. Of BATANGAS 6 1 4 11 CAGAYAN DE ORO CITY 4 1 - 5 said amount, P14.73 were cash costs and P15.63 were imputed costs. DAVAO CITY 7 2 9 SARANGANI 14 2 - 16

TOTAL 90 12 18 120  Processors spent an average of P20.19 in the procurement of a sack of 50 kilograms Percent 75 10 15 100 NOTE: Iloilo and Cebu are both supply and demand areas. of matured corn grains.

 The Provincial Assembler-Large Distributor (PA-LD) had the highest average net margin amounting to P36.60 per sack, followed by Municipal Assembler-Medium Distributor (MA-MD) at P21.66 per sack.

56 21 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Margin is the additional value a trader charges to his customer to cover for his Table 14b. White Corn : Number of processor-respondents, by term of payment in procurement, selected provinces,Philippines,2009 works, return on capital and risk which is on top of the price to be paid and direct Term of Payment in Procurement PROVINCE marketing cost incurred. Trader margin is derived by deducting Total Marketing Cost and Cash Credit Consignment TOTAL Wholesale Buying Price from the Wholesale Selling Price for assembler, other wholesaler SUPPLY AREAS ISABELA 6 6 and cooperative. For retailer, margin is derived by deducting Total Marketing Cost and PANGASINAN 1 3 4 ILOILO 3 3 Wholesale Buying Price from Retail Selling Price. In this study, margin is used CEBU 4 2 6 interchangeably with net returns and net gains. BUKIDNON 1 1 SOUTH COTABATO 4 4

In this study, marketing costs and margins are disaggregated by product form. DEMAND AREAS METRO MANILA 4 1 5 ILOCOS NORTE 9 9 1. Isabela BULACAN 3 1 4 BATANGAS 3 3 CAGAYAN DE ORO CITY 5 1 6 DAVAO CITY 4 4 Table 9. White Corn (Green): Average marketing costs and margins by type of SARANGANI 5 1 6 marketing participants, Isabela, 2009 TOTAL 48 1 12 61 GREEN CORN Percent 79 2 20 100 NOTE: Iloilo and Cebu are both supply and demand areas. TRADER PROCESSOR ITEM INFORMAL RETAILER PA-LD PROCESSOR peso per sack of 50 kilograms Table 15a. White Corn : Number of trader-respondents, by price setter in A. Cash Costs 17.80 38.97 10.96 procurement, selected provinces, Philippines, 2009 Price Setter a.1 Labor PROVINCE 11.37 Trader Supplier Both TOTAL a.2 Transportation 20.76 6.76 SUPPLY AREAS ISABELA 6 2 2 10 a.3 Material 11.77 6.68 PANGASINAN 4 1 5 a.4 Other Operating Expenses 6.03 0.16 4.20 ILOILO 2 3 5 CEBU 3 11 1 15 B. Imputed Costs 4.86 BUKIDNON 10 10 b.1 Depreciation 4.23 SOUTH COTABATO 8 8

b.2 Unpaid Labor 0.63 DEMAND AREAS Total Mktg. Cost, TMC (cash + imputed) 22.66 38.97 10.96 METRO MANILA 7 7 14 ILOCOS NORTE 6 1 7 Wholesale Buying Price, WBP 837.50 375.00 322.00 BULACAN 1 3 1 5 Wholesale Selling Price, WSP 500.00 BATANGAS 7 4 11 CAGAYAN DE ORO CITY 2 3 5 Retail Selling Price, RSP 937.50 DAVAO CITY 1 4 4 9 Total Cost, TC (TMC + WBP) 860.16 413.97 SARANGANI 12 2 2 16 Margin (WSP-TC); (RSP-TC) 77.34 86.03 TOTAL 69 36 15 120 Percent 58 30 13 100

 For green corn, the highest marketing cost was recorded by Provincial Assembler- Large Distributor (PA-LD) at P38.97 per sack. The cost comprised of cash outlays.

20 57 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

6. South Cotabato Figure 13.South Cotabato, Marketing Channels of Table 15b. White Corn : Number of processor-respondents, by price setter in White Corn, 2009 procurement, selected provinces, Philippines, 2009  Price Setter White corn farmers sold PROVINCE CONSUMER Processor Supplier Both TOTAL their produce either to SUPPLY AREAS ISABELA 1 3 2 6 Municipal or Provincial PANGASINAN 1 3 4 Assemblers (MA –PA) and ILOILO 3 3 PA-MD/ CEBU 2 4 6 processors. PROCESSOR BUKIDNON 1 1 PA-LD BOP SOUTH COTABATO 1 3 4  Provincial assemblers sold DEMAND AREAS METRO MANILA 2 2 1 5 green and matured corn to ILOCOS NORTE 2 1 6 9 BULACAN 2 1 1 4 processors. Processors, in BATANGAS 3 3 turn, sold processed MA-LD CAGAYAN DE ORO CITY 5 1 6 DAVAO CITY 1 2 1 4 products to provincial SARANGANI 4 1 1 6 assemblers. TOTAL 20 28 13 61 Percent 33 46 21 100 FARMER green & matured

processed H. Marketing Costs and Margins

This portion presents the details of the marketing costs and margins by type of marketing participant. Marketing costs are classified into cash costs and imputed costs.

Cash costs are the direct cash outlays made by marketing participants. Cash costs items include labor, transportation, materials used and other operating expenses in marketing-related activities. Labor costs are payments for the services rendered for activities like hauling, shelling, cleaning, drying, bagging, piling, sorting or classifying weighing, loading, unloading and other related marketing activities. Materials used in marketing corn include sack, needle, tying materials, rope, drum, newspaper, thick plastic bag and those used as shade. Aside from the expenses for labor, transportation and materials used, other cost items include gas and oil (not used in transporting corn), repair and maintenance, fees and rentals, telephone and other communication, prepaid cards, light and water and meals and snacks.

Imputed costs are costs that do not involve actual outlays in cash or in kind. These represent the costs of using owned resources in a particular activity and are given values of the best alternative uses forgone. These include depreciation, family labor, rental value of owned buildings and land, etc.

58 19 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

5 5 8 7 5 5 9 14  Inter-regional assemblers received supplies of matured corn from traders outside 10 15 10 11 the province. These assemblers sold white corn to informal processors, millers and TOTAL to retailers. Identified buyers from outside the province also sourced supply from 2 2 2 17 120 inter-regional assemblers. These were either in processed form or matured corn. 1114 16 100

5. Bukidnon Figure 12. Bukidnon, Marketing Channels of White 1 1 Corn, 2009 1  In Bukidnon, farmers sold shelled Mark-upresponse No white corn to PA-LD and RA-LD. CONSUMER 1 1 Some were sold directly to 1 season processors. Agents who acted as Harvest facilitators provided price PROCESSOR information. The Regional 1 3 1 1 3 Assembler-Large Distributor (RA- incurred Expenses LD) and Provincial Assembler- RA-LD/ Large Distributor (PA-LD) who BOP 1 1 1 Basis of Pricing of Basis transacted with processors sold PA-LD and Quantity prevailing

their produce to Buyer Outside price market the Province (BOP) and local SOP BUYING STATION 1 2 2 consumers. 1

prevailing Quality and  Other farmers sold white corn in AGENT price market cobs or unshelled to buying 2 7 1 6 3 stations. These buying stations 1 Quantity which had mechanical drying FARMER facilities were owned and 3 4 5 1 6 5 1 green & matured 5

12

operated by large companies Good processed quality based in Cagayan de Oro City. Buyers outside the province 2 6 7 4 1 5 2 4 4 4 4 46 42 (BOP) bought from these buying 38 35

stations. Prevailing market price market

Table 15c. White Corn : Numberoftrader-respondents,: White Corn basisbyofpricing Tablein 15c. procurement, selected provinces, Philippines, 2009 TOTAL Percent PROVINCE PANGASINAN MANILA METRO NORTE ILOCOS BULACAN ISABELA BUKIDNON COTABATO SOUTH CITY ORO DE CAGAYAN 3 ILOILO CEBU BATANGAS DAVAOCITY SARANGANI SUPPLY AREAS SUPPLY DEMAND AREAS DEMAND

18 59 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

 Informal processors bought green corn for sale as snack food like boiled or broiled 6 5 4 9 4 3 3 6 1 6 4 6 4 corn to consumers. 61 100 TOTAL Figure 10. Iloilo, Marketing Channels of White Corn, 3. Iloilo 2009

CONSUMER 8 3 5 2  Corn farmers in Iloilo disposed of their produce directly to

Barangay Assembler-Medium RETAILER Distributor (BA-MD) and 2 1 1 processors. The Provincial PROCESSOR

Supplierresponse No Assembler-Medium-Distributor (PA-MD) sold their corn to PA-MD processors. Processed corn was 2 1 1 distributed to retailers and supply consumers. BA Demand and and Demand  In the province, processors

Basis of Pricing of Basis transformed matured corn into 5 1 3 2 native delicacies. FARMER themarket green & matured Availabilityin

4. Cebu processed 2 1 1 Figure 11. Cebu, Marketing Channels of White Corn,  Marketing participants in Cebu prevailing 2009 Quality and market price market were farmers, barangay, provincial and inter-regional CONSUMER 1 3 2 1 3 2 3 1 2 5 2 41 25 assemblers, retailers and consumers. RETAILER

Good quality Good  Farmers from Cebu sold their PROCESSOR corn directly to Barangay 3 1 1 9 1 3 1 4 2 41 25 Assembler (BA), Provincial IRA/ Prevailing market price market Assembler-Medium Distributor IRA-LD BOP (PA-MD, Provincial Assembler- Large Distributor (PA-LD) and PA-MD/ some to Inter-regional Assembler PA-LD

(IRA) and Inter-regional SOP AREA TOTAL

Percent Assembler-Large Distributor Table 15d. White Corn : Numberofprocessor-respondents,: White Corn Tablebasis15d. byofpricing inselected procurment, provinces, Philippines, 2009 (IRA-LD). BA green & matured

ISABELA PANGASINAN MANILA METRO NORTE ILOCOS BULACAN ILOILO BATANGAS CITY ORO DE CAGAYAN CEBU BUKIDNON COTABATO SOUTH DAVAOCITY SARANGANI SUPPLY AREAS SUPPLY DEMAND AREAS DEMAND processed FARMER

60 17 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

1. Isabela Figure 8. Isabela, Marketing Channels of White Corn, 2009 Table 16a. White Corn : Number of farmer-respondents, by  Farmers sold their corn to CONSUMER mode of distribution, selected provinces, Philippines, 2009

municipal and provincial Mode of Distribution AREA assemblers through agents. The BOP Picked-up Delivered TOTAL SUPPLY AREAS agents provided price and RETAILER ISABELA 5 1 6 quality information to sellers and PANGASINAN 12 12 ILOILO 6 6 buyers. PROCESSOR CEBU 24 6 30  The Provincial Assembler-Large BUKIDNON 1 5 6 PA-LD SOUTH COTABATO 6 6 Distributor (PA-LD) supplied the TOTAL 48 18 66 requirements of processors and SOP Percent 73 27 100 MA-MD/ retailers. Corn processors usually NOTE: Iloilo and Cebu are both supply and demand areas. disposed of their corn directly to MA-LD consumers, buyers outside the province (BOP) and some PA-LD. AGENT

 Corn supply from other FARMER Table 16b. White Corn : Number of trader-respondents, by mode of provinces (SOP) went to distribution, selected provinces, Philippines, 2009 green & matured processors. Mode of Distribution processed AREA Picked-up Delivered Both TOTAL 2. Pangasinan SUPPLY AREAS Figure 9. Pangasinan, Marketing Channels of White ISABELA 7 2 1 10 Corn, 2009 PANGASINAN 3 2 - 5  Farmers disposed their green ILOILO 2 1 2 5 and matured corn directly to CONSUMER CEBU 11 2 2 15 BUKIDNON 3 3 4 10 either contract growers or SOUTH COTABATO 2 6 - 8 Provincial Assembler (PA) and Inter-regional Assembler – Large DEMAND AREAS PROCESSOR METRO MANILA 12 2 14 Distributor (IRA-LD). ILOCOS NORTE 5 1 1 7 BULACAN 3 2 - 5 IRA-LD  Green corn was sold directly to BATANGAS 7 4 - 11 contract growers under the CAGAYAN DE ORO CITY 4 1 - 5 DAVAO CITY 6 2 1 9 “pakyaw system”. Traders SOP SARANGANI 7 8 1 16 negotiated ahead, two (2) to TOTAL 72 36 12 120 three (3) weeks, before the Percent 60 30 10 100 PA expected harvest. NOTE: Iloilo and Cebu are both supply and demand areas.

 Processors distributed CONTRACT “chichacorn” and “cornick” to GROWER Inter-regional Assembler – FARMER Regional Assembler (RA-LD) and green & matured

consumers. processed

16 61 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

 White corn assembled by traders in the province was sold to processors. Processed Table 17a. White Corn: Number of farmer-respondents, by term of products such as corn grits were later shipped to Cebu and Metro Manila. payment in distribution, selected provinces, Philippines, 2009

Term of Payment in Distribution G. Marketing Channels PROVINCE Cash Credit Consignment TOTAL SUPPLY AREAS Marketing channels of corn vary from one province to another. Each province ISABELA 6 6 manifests a unique set-up in terms of the number of linkages present and intermediaries PANGASINAN 12 12 involved. The marketing participants who are actively involved in white corn marketing are ILOILO 5 1 6 described as follows: CEBU 19 5 6 30 BUKIDNON 6 6 SOUTH COTABATO 6 6 Barangay Assembler (BA) - procures from only one barangay.

TOTAL 54 5 7 66 Municipal Assembler (MA) - procures from two or more barangays within the Percent 82 8 11 100 municipality. NOTE: Iloilo and Cebu are both supply and demand areas. Provincial Assembler (PA) – procures from two or more municipalities within the province.

Regional Assembler (RA) – procures from two or more provinces within the region. Table 17b. White Corn : Number of trader-respondents,by term of payment in distribution,selected provinces, Philippines, 2009 Interregional Assembler (IRA) - procures from two or more regions. Term of Payment in Distribution PROVINCE Cash Credit Consignment TOTAL SUPPLY AREAS Medium Distributor (MD) – sells larger volume than the small distributor; sells to ISABELA 8 1 1 10 traders coming from other markets in the province; may also sell to few PANGASINAN 4 1 5

ILOILO 3 1 2 6 institutional buyers.

CEBU 13 2 1 16 BUKIDNON 9 1 1 11 Large Distributor (LD) - sells larger volume than the medium distributor; sells to SOUTH COTABATO 8 8 traders coming from other markets within and outside the province; may also DEMAND AREAS sell to several institutional buyers; handles the largest volume among the three METRO MANILA 13 1 2 16 ILOCOS NORTE 6 1 7 types of distributors. BULACAN 5 5 BATANGAS 7 3 4 14 CAGAYAN DE ORO CITY 5 5 Retailer – pocures stocks either (directly) from farmers or distributors and sells to DAVAO CITY 7 2 9 consumers. SARANGANI 16 16 TOTAL 104 12 12 128 Percent 81 9 9 100 NOTE: Iloilo and Cebu are both supply and demand areas.

62 15 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

 Buying and selling transactions were active in Cebu City, Toledo City, Talisay City and Bogo City. Destination points of white corn outside Cebu were Negros Oriental, Table 18a. White Corn : Number of farmer-respondents, by price setter in Bohol, Siquijor, Samar, Leyte and Southern Leyte and Davao City. distribution, selected provinces, Philippines, 2009 Price Setter Figure 6: Bukidnon, Geographic flow of White Corn, PROVINCE No 5. Bukidnon Farmer Buyer Both TOTAL 2009 response Cagayan de Oro City Agusan del Norte SUPPLY AREAS  In Bukidnon, the top producing Cebu Kalilangan Iligan ISABELA 4 2 6 municipalities were Kalilangan, Malaybalay Davao City PANGASINAN 8 4 12 Valencia City Digos City ILOILO 5 1 6 Impasug-ong, Malaybalay, Sumilao Tagum City Metro Manila CEBU 17 7 4 2 30 and Manolo Fortich. Lanao del Norte BUKIDNON 6 6 supplied the province especially SOUTH COTABATO 6 6 during its lean production months. TOTAL 30 28 6 2 66  The major trading centers were the Percent 45 42 9 3 100 Malaybalay cities of Malaybalay and Valencia. Valencia City

 White corn was being brought to Agusan Norte and the cities of Cagayan de Oro, Cebu, Iligan, Davao, Table 18b. White Corn : Number of trader-respondents, by price setter in distribution, selected provinces, Philippines, 2009 Kalilangan Sumilao Digos, Tagum and Metro Manila. Impasug - ong Manolo Fortich Lanao del Cabanglasan Wao Norte Price Setter Malaybalay Pangantucan PROVINCE Supplier  In Bukidnon, white corn was also Lantapan Banisilao Trader Both TOTAL green corn /Buyer - other corn distributed and consumed in the producing municipalities matured corn SUPPLY AREAS municipalities of Kalilangan, ISABELA 6 4 10 Malaybalay and Valencia. PANGASINAN 3 1 1 5 Figure 7: South Cotabato, Geographic flow of ILOILO 5 5 White Corn, 2009 CEBU 15 15 6. South Cotabato BUKIDNON 7 3 10 Banga General Santos City Tupi Sarangani SOUTH COTABATO 4 2 2 8  From the producing barangays of Polomolok Davao City Koronadal City Metro Manila DEMAND AREAS Buenavista, buyers picked up white METRO MANILA 10 3 1 14 corn and brought it to Surallah ILOCOS NORTE 5 2 7 BULACAN 4 1 5 Market as assembly point for delivery BATANGAS 8 3 11 CAGAYAN DE ORO CITY 4 1 5 to Koronadal City, the trading center. DAVAO CITY 5 4 9

Koronadal City SARANGANI 11 3 2 16  White corn used for food consumption was distributed to areas TOTAL 87 19 14 120 Percent 73 16 12 100 outside the province like Davao City, General Santos City and Sarangani. Surallah

green corn

matured corn

Buenavista

14 63 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Dagupan City, San Carlos City and Urdaneta City. The municipalities of Villasis, Binalonan and Malasique were destination points. The destination points outside the province included the provinces of Bulacan, Tarlac and Ilocos Norte and Metro Manila. 6 6 6 6 5 5 5 9 8 66 12 30 Figure 4: Iloilo, Geographic flow of White Corn, 10 14 15 11 10 100 TOTAL TOTAL 2009 3. Iloilo Guimbal Leon Miagao Janiuay Lambunao Alimodian  The province of Iloilo was both supply Iloilo City 2 2 7 2 5 2 2017 120 100 12 16 No No and demand area for white corn. The response response top producing municipalities were Miagao, Guimbal and Leon, Janiuay, 5 1 1 Alimodian and Lambunao. Trading of Iloilo City Jaro incurred Mark-up Expenses white corn was actively taking place in Jaro and Iloilo City.

1 1

Buyer  White corn produced in the province incurred Expenses was largely consumed within Iloilo. Destination points were Guimbal, Miag- Miagao Janiuay Guimbal Alimodian Basis of Pricing of Basis 4 Basis of Pricing of Basis 2 1 1 1 1 Leon Lambunao and and ao, Lambunao, Iloilo City, Leon, Janiuay Quality quantity Quantity green corn and Alimodian. matured corn 2009  There was no outflow of white corn in 12 4 6 1 2 5 8 0 0 33 7 6 1 1 2 2 and and price price the province due to internal demand Figure 5: Cebu, Geographic flow of White Corn, Quality market Quality market Philippines,2009 and prev. and prevailing for processing. 2009 Cebu City Minglanilla Negros Oriental Talisay City San Antonio Bohol Toledo City San Remegio Siquijor 5 6 13 4. Cebu Bogo City Valencia Samar , Leyte & Southern Leyte Good Good Good Good quality quality Cabadiangan Carcar Davao Consolacion  White corn was the staple food among farmer-respondents in Cebu. This was 3 564 1 5 1 3 2 1 7 2 4 4 24 5 1 5 3 4 2 4 7 1 3 3 5 4437 43 36 27 28 41 42 11 10 price price reported by respondents in Cebu City, market market Prevailing Prevailing Toledo City and Talisay City, Bogo City Cebu City and in the municipalities of Medellin, Toledo City Talisay City Consolacion, Minglanilla, Carcar City, Bogo City San Remigio and Compostela.

TOTAL  During lean months, there were inflows TOTAL Percent Percent PROVINCE PROVINCE of white corn from Agusan del Norte,

Table 18c. White Corn : Numberoffarmer-respondents,: White Corn basisTablebyof18c. pricing in distribution, selected provinces, Cebu City Consolacion Agusan del Norte Davao City, South Cotabato, Cotabato Toledo City Minglanilla South Cotabato Talisay City Carcar City Davao City ISABELA MANILA METRO NORTE ILOCOS PANGASINAN ILOILO BULACAN CEBU BATANGAS BUKIDNON CITY ORO DE CAGAYAN DAVAOCITY SARANGANI 3 1 1 SOUTH COTABATO SOUTH ISABELA PANGASINAN ILOILO CEBU BUKIDNON COTABATO SOUTH Bogo City San Remigio Lanao del Norte Table 18d. White Corn : Numberoftrader-respondents,: White Corn Tablebasisby18d. ofpricing in distribution, selected provinces, Philippines, AREAS SUPPLY DEMAND AREAS DEMAND SUPPLY AREAS SUPPLY City, Lanao del Norte and Cagayan de

Medellin Compostela Cotabato City Oro City. Mandaue City Cagayan de Oro City green corn

matured corn

64 13 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

F. Geographic Flow Figure 2: Isabela, Geographic flow of White Corn, Table 19. White Corn : Number of trader-respondents, by type of commodities handled, selected provinces, Philippines, 2009 2009 Type of Commodities Handled Corn/Sweet Sta. Maria Roxas City Metro Manila Pangasinan Corn/Rice/ 1. Isabela PROVINCE Potato/Mango/Vegetables San Agustin Ilagan Bulacan Cagayan Corn Corn/Palay/Rice Palay/Farm TOTAL /Fruits/Peanut/Cassava/ Corn/Palay/Groceries Cauayan City Santiago City Ilocos Norte supplies/Feeds Copra/Onion  The major supply areas of green SUPPLY AREAS and matured corn in Isabela were ISABELA 4 4 2 10 PANGASINAN 4 1 5 Tumauini, Sta. Maria, Ilagan, ILOILO 2 3 5 Echague and Santiago City. CEBU 7 8 15 BUKIDNON 10 10 Outside the province, green and SOUTH COTABATO 7 1 8 matured corn were sourced from Ilagan Santiago City DEMAND AREAS Cagayan, Quirino and Metro Cauayan City METRO MANILA 8 6 14 Roxas City ILOCOS NORTE 3 2 2 7 Manila. The last was cited as source BULACAN 4 1 5 of supply especially during lean BATANGAS 8 3 11 CAGAYAN DE ORO CITY 4 1 5 months when there was no DAVAO CITY 2 6 1 9 substantial harvest of white corn in SARANGANI 13 1 2 16 Tumauini Cagayan 0 the province. Sta. Maria Quirino TOTAL 76 22 19 2 1 120 Ilagan Metro Manila Percent 63 18 16 2 1 100 Echague  The main trading centers of the Santiago City green corn province were the markets of matured corn Ilagan, Santiago City, Cauayan City and Roxas City. White corn was Figure 3: Pangasinan, Geographic flow of White Corn, also distributed in the Table 20. White Corn : Number of processor-respondents, by type of processed product, selected provinces, 2009 Philippines, 2009 municipalities of Isabela like Sta. San Carlos City Bulacan Type of Processed Product Maria and San Agustin. Villasis Tarlac PROVINCE Binalonan Ilocos Norte Cornick Snack Foods * Corngrits Feeds TOTAL Destinations outside Isabela Malasiqui Pangasinan SUPPLY AREAS Metro Manila included the provinces of Ilocos ISABELA 2 4 - - 6 PANGASINAN 1 3 - - 4 Norte, Cagayan, Pangasinan and ILOILO - 2 - 1 3 Bulacan and Metro Manila. CEBU - 3 2 1 6 BUKIDNON - 1 - - 1 SOUTH COTABATO - 2 - 2 4 2. Pangasinan Dagupan City San Carlos City DEMAND AREAS Urdaneta City METRO MANILA 1 4 5  The top producing areas in ILOCOS NORTE 7 2 - - 9 Pangasinan were Dagupan City and BULACAN 3 - - 1 4 BATANGAS - 3 - - 3 San Carlos City and the CAGAYAN DE ORO CITY - 5 1 - 6 municipalities of Villasis, DAVAO CITY - 3 1 - 4 Dagupan City Binalonan Bulacan SARANGANI - 3 2 1 6 Pozzorubio, Binalonan, Sto. Tomas San Carlos City Sto. Tomas La union and Malasiqui. Villasis Malasiqui Isabela TOTAL 14 35 6 6 61 Pozzorubio - other corn Percent 23 57 10 10 100 producing municipalities * boiled / broiled corn,pintos  From the supply areas, white corn green corn NOTE: Iloilo and Cebu are both supply and demand areas. was brought to trading centers in matured corn Dagupan City, San Carlos City and Urdaneta City. The municipalities of 12 Villasis, Binalonan and Malasique 65 were destination points. The destination points outside the MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 21. White Corn : Major sources and destination, selected provinces, Philippines,2009 SOURCES DESTINATION PROVINCE WITHIN THE PROVINCE OUTSIDE THE PROVINCE WITHIN THE PROVINCE OUTSIDE THE PROVINCE of the commodity, mark-up price, expenses incurred or a combination of quality ISABELA Tumauini Cagayan Sta. Maria Metro Manila Sta. Maria Metro Manila San Agustine Bulacan and prevailing market price. Ilagan Quirino Cauayan Ilocos Norte Villabuena Roxas Pangasinan Echague Ilagan Santiago City Santiago City PANGASINAN Dagupan City La Union San Carlos City Tarlac Villasis Isabela Villasis Ilocos Norte D. Commodities Handled by Traders Table 7. White Corn: Distribution of trader- Pozzorubio Bulacan Binalonan Pangasinan respondents, by commodities handled, selected Binalonan Malasiqui Metro Manila Sto. Tomas Bulacan provinces, Philippines, 2009 Malasiqui  Most traders, 76 respondents San Carlos City & other corn producing municipalities or 63 percent handled corn Commodity Total Percent ILOILO Miagao Guimbal only, while 22 traders or 18 Guimbal Iloilo City Corn 76 63.33 Miagao percent sold corn, palay and Tigbauan Corn/Palay/Rice 22 18.33 CEBU Medellin Agusan Del Norte Cabadiangan Negros Oriental rice. Cebu City Davao City Palpagan Bohol Toledo City Cotabato City Minglanilla Samar, Leyte & Souther Leyte Corn/Sweet Potato/Mango/Vegetables/Fruits Bogo City Cagayan de Oro City Talisay City Siquijor  The rest of the respondents Talisay City South Cotabato Toledo City Davao /Peanut/Cassava/Copra/Onion 19 15.83 Mandaue City Lanao Norte Bogo City combined corn trading with Consolacion Samar San Antonio Corn/Rice/ Palay/Farm supplies/Feeds 2 1.67 Minglanilla San Remegio other agricultural commodities Cabadiangan Valencia Carcar Carcar inputs and groceries. Corn/Palay/Groceries 1 0.83 San Remegio Consolacion San Roque Cebu City Total 120 100 Compostela BUKIDNON Kalilangan Lanao Norte Kalilangan Cagayan de Oro City Malinao Malaybalay Cebu Impasug-ong Valencia City Agusan Norte E. Processed Products Handled by Processors Malaybalay Metro Manila Sumilao Iligan Manolo Fortich Davao City Cabanglasan Digos City  Among the processor- Table 8. White Corn: Distribution of processor- Lantapan Tagum City Wao respondents, 35 or 57 percent respondents, by type of processed products, Pangantucan Banisilan sold white corn in boiled and selected provinces, Philippines, 2009 SOUTH COTABATO Buenavista Banga Gen. Santos City broiled forms. There were 14 Surralah Tupi Sarangani Koronadal City Davao City or 23 percent whose final Polomolok Manila Processed Product Total Percent Cebu products were cornick or METRO MANILA Pampanga Quezon city Cornick/Chichacorn 14 22.95 Pangasinan Pasig chichacorn. Quezon Muntinlupa Snack Foods * 35 57.38 Batangas Marikina Corn grits/ Corn Starch 6 9.84 ILOCOS NORTE Laoag, Paoay Cagayan Laoag City Metro Manila  Six (6) processor-respondents Dingras Metro Manila Dingras Tarlac Fe e ds 6 9.84 Batac Bulacan or 10 percent produced corn BULACAN San Rafael Isabela Baliwag Metro Manila grits and corn starch which Tota l 61 100 Cagayan Malolos Cavite Pangasinan Bataan were used as ingredients in cold * boiled / broiled corn,pintos Laguna BATANGAS Bauan Quezon Batangas City Metro Manila cuts preparation or food wraps. Malvar Laguna Tanauan City Mindoro Batangas City Bauan Cavite Another six (6) processors used Malvar Pampanga white corn as ingredient in CAGAYAN DE ORO CITYAlubijid Bukidnon Cagayan de Oro City Cebu Claveria Lanao Provinces Iligan City animal feeds. El Salvador DAVAO CITY North Surallah Tagum Cebu South Cotabato Davao City Surigao Province Bukidnon SARANGANI Alabel South Cotabato Gen. Santos City Metro Manila Gen. Santos City Sultan Kudarat Malapatan Cebu Malungan Maguindanao Negros Oriental Davao del Sur

66 11 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

 At the trader level, 104 (81 Table 6. White Corn: Distribution practices of Table 22a. White Corn (Green) : Average marketing costs incurred by type of percent) paid in cash. Twelve farmers and traders, selected provinces, marketing participants, Isabela, 2009 (12) or nine (9) percent paid on Philippines, 2009 GREEN CORN TRADER PROCESSOR credit. Another 12 traders used ITEM Total Percent ITEM INFORMAL consignment. Mode of Distribution PA-LD RETAILER PROCESSOR Farmers 66 100.00 Picked-up 48 72.73 peso per sack of 50 kilograms c) Price Setting Delivered 18 27.27 A. Cash Costs 38.97 17.80 10.96 Traders 120 100.00 Picked-up 72 60.00 a.1 Labor Cost 11.37  Thirty (30) farmers or 45 percent Delivered 36 30.00 Procurement reported that price of their Both 12 10.00 Hauling 1.19 Term of Payment Sorting/Classifying 1.19 produce was set by themselves. Weighing 1.19 Farmers 66 100.00 Bagging 1.19 Price setting by buyers was Cash 54 81.82 Loading 1.39 Credit 5 7.58 mentioned by 28 farmers or 42 Unloading 1.39 Consignment 7 10.61 percent of the respondents. Salaries/Wages 3.83 Traders 128 100.00

Cash 104 81.25  Among trader-respondents, 87 a.2 Transportation Cost 20.76 6.76 Credit 12 9.38 Vehicle Rental or 73 percent claimed that they Consignment 12 9.38 Procurement 10.00 6.76 were the ones who set the price. Price Setting Distribution 4.86 Price Setter Own Vehicle There were 19 traders or 16 Farmers 66 100.00 Gas & Oil percent who said that price was Farmer 30 45.45 Procurement 5.90 set by buyers. The other 14 or 12 Buyer 28 42.42 Both 6 9.09 a.3 Material Cost 6.68 11.77 percent claimed that setting of No response 2 3.03 Sack 6.56 7.68 price was an agreement between Traders 120 100.00 Plastic bag (small) 4.09 buyers and traders. Trader 87 72.50 Tying materials 0.12 Supplier/buyer 19 15.83 a.4 Other Operating Expenses 0.16 6.03 4.20 Both 14 11.67  There were 28 farmers or 42 Fees and rentals 0.16 6.03 Basis of Pricing Meals and snacks 4.20 percent who reported that good Farmers 66 100.00 Prevailing market price 27 40.91 quality was the basis of setting B. Imputed Costs 4.86 Good quality 28 42.42 price. Twenty-seven (27) of them Depreciation Quality and prevailing market price 1 1.52 Supplies/Equipment 4.23 or 41 percent said that they used Quality and quantity 4 6.06 Unpaid Labor Buyer 1 1.52 prevailing market price. Distribution 0.63 Expenses incurred 5 7.58 Traders 120 100.00  Prevailing market price was the Total Mktg. Cost, TMC (cash + imputed) 38.97 22.66 10.96 Prevailing market price 44 36.67 basis of setting prices by 44 Good quality 43 35.83 Wholesale Buying Price, WBP 375.00 558.33 322.00 traders or 37 percent. Quality of Quality and prevailing market price 3 2.50 Wholesale Selling Price, WSP 500.00 corn was cited by 43 or 36 Quantity 7 5.83 Retail Selling Price, RSP 692.33 Expenses incurred 1 0.83 Total Cost, TC (TMC + WBP) 413.97 580.99 percent of respondents. Other Mark-up 2 1.67 Margin (WSP - TC), (RSP - TC) 86.03 111.34 traders reported that price was No response 20 16.67 set based on either the quantity of the commodity, mark-up price, expenses incurred or a combination of quality and 10 67 prevailing market price.

MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 22b. White Corn (Matured): Average marketing costs incurred by type of marketing participants, Isabela, 2009 MATURED CORN c) Price Setting TRADER PROCESSOR ITEM FARMER CORNICK MA-MD MA-LD PA-LD  According to the trader respondents, they usually set the price as mentioned by 69 PROCESSOR respondents or 58 percent. Thirty-six (36) traders or 30 percent claimed that price peso per sack of 50 kilograms A. Cash Costs 14.73 17.93 41.73 36.85 20.12 was set by their suppliers. Fifteen (15) of them or 13 percent reported that price was set based on agreement between trader and supplier. a.1 Labor Cost 5.00 20.82 10.79 6.82 Procurement  Hauling 1.75 Among processors, 28 or 46 percent of them claimed that suppliers set the price. Solar (drying) 7.39 5.00 Twenty (20) or 33 percent said that processors were the price setters. To 13 or 21 Piling 3.50 Sorting/Classifying 0.51 percent of the respondents, price setting was being done by both processor and Weighing 1.00 supplier. Loading 1.50 1.66 1.00 Unloading 1.50 2.28 1.00  Forty-six (46) trader-respondents or 38 percent used the prevailing market price of Salaries/Wages 2.00 2.73 3.79 6.82 white corn as basis for pricing. Good quality was the basis for pricing among 42 a.2 Transportation Cost 6.67 2.50 2.60 15.14 7.50 respondents. Vehicle Rental Procurement 10.00 Private vehicle  The remaining 15 traders or 13 percent used combinations of criteria such as quality, Gas & Oil quantity, harvest season, expenses incurred, mark-up and prevailing market price. Procurement 2.50 1.39 7.50 Distribution 6.67 2.60 3.75  Among processor-respondents, 25 or 41 percent used prevailing market price in

a.3 Material Cost 8.06 2.18 6.38 4.15 price setting. Another 25 or 41 percent set price based on the good quality of corn. Sack 4.66 1.54 5.17 4.00 Plastic bag (small) 3.10 Tying materials 0.31 0.04 0.17 0.12 2. Distribution Practices Materials for shade* 0.47 1.05 0.03 Rope 0.14 a) Mode of Distribution a.4 Other Operating Expenses 8.25 11.92 6.77 5.80 Gas and oil (not used for transportation) 0.01 Repairs and maintenance 0.20 0.01  Of the 66 farmers, 48 (73 percent) reported that buyers picked up white corn from Fees and rentals 1.60 6.11 0.04 them. There were 18 (27 percent) who delivered corn to their buyers. This practice Telephone and other communication expenses 1.20 0.57 0.06 Agent's commission 5.00 5.00 6.67 served as incentive to corn buyers who bought in bulk and it also established the Meals and snacks 0.25 0.24 a/ 5.80 trader-buyer “suki” relationship.

B. Imputed Costs 15.63 10.42 26.89 1.55  Among traders, 72 or 60 percent of them had their corn picked up by their buyers, Depreciation Supplies/Equipment 6.50 2.54 8.03 0.60 while 36 (30 percent) delivered corn to their buyers. The remaining 12 (10 percent) Facilities 6.17 1.31 0.96 practiced both pick-up and delivery modes. Transport vehicles 4.96 1.71 17.55 Unpaid Labor Distribution 4.17 b) Term of Payment

Total Mktg. Cost, TMC (cash + imputed) 30.36 28.34 68.62 38.40 20.12  There were 54 farmer-respondents or 81 percent who sold their corn on cash Wholesale Buying Price, WBP 1325.00 1456.50 1325.00 1525.00 basis. The rest were paid on consignment (11 percent) and credit terms (8 Wholesale Selling Price, WSP 1375.00 1544.50 1400.00 Total Cost, TC (TMC + WBP) 1353.34 1525.12 1363.40 percent). Margin (WSP - TC) 21.66 19.38 36.60 *Materials for shade include tarpaulin, trapal, umbrella and tent a/ less than 0.01

68 9 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

a) Mode of Procurement Table 5. White Corn: Procurement practices of Table 23a. White Corn (Green): Average marketing costs incurred by type of traders and processors, selected provinces, marketing participants, Pangasinan, 2009  There were 56 or 47 percent of Philippines, 2009 GREEN CORN the traders who picked-up corn ITEM Total Percent TRADER PROCESSOR Mode of Procurement from their suppliers. In the case ITEM FARMER INFORMAL Traders 120 100.00 PA PROCESSOR of 55 traders or 46 percent of Picked-up 56 46.67 the respondents, their suppliers Delivered 55 45.83 peso per sack of 50 kilograms Both 9 7.50 A. Cash Costs 17.33 43.27 4.33 delivered the products to their Processors 61 100.00 stalls. Only nine (9) traders or Picked-up 38 62.30 Delivered 20 32.79 a.1 Labor Cost 12.86 1.21 eight (8) percent practiced both Both 3 4.92 Procurement pick-up and delivery modes of Term of Payment Harvesting 1.08 Traders 120 100.00 Loading 1.50 procurement. Cash 90 75.00 Unloading 1.50 Credit 12 10.00 Salaries/Wages 8.78 1.21  Among processors, 38 or 62 Consignment 18 15.00 percent of them picked up corn Processors 61 100.00 a.2 Transportation Cost 9.04 2.31 Cash 48 78.69 Vehicle Rental Credit 1 1.64 from their suppliers. There were Procurement 5.00 Consignment 12 19.67 20 or 33 percent who had the Price Setting Private vehicle commodity delivered to them. Price Setter Gas & Oil The rest of the respondents Traders 120 100.00 Procurement 4.04 2.31 Trader 69 57.50 procured supplies using both Supplier 36 30.00 a.3 Material Cost 17.33 14.41 systems, i.e., pick-up and Both 15 12.50 Sack 2.00 Tying materials 0.56 delivery. Processors 61 100.00 Processor 20 32.79 Materials for shade* 11.85 Supplier 28 45.90 Crate 17.33 b) Term of Payment Both 13 21.31 Basis of Pricing a.4 Other Operating Expenses 6.96 0.81 Traders 120 100.00 Fees and rentals 1.25  There were 90 or 75 percent of Prevailing market price 46 38.33 Telephone and other communication expenses 1.44 Good quality 42 35.00 Meals and snacks 4.26 0.81 traders who paid their suppliers Quantity 7 5.83 Quality and prevailing market price 2 1.67 in cash. Eighteen (18) B. Imputed Costs 4.55 Quantity and prevailing market price 1 0.83 respondents or 15 percent Expenses incurred 3 2.50 Depreciation operated on consignment terms Harvest season 1 0.83 Transport vehicles 4.55 Mark-up 1 0.83 with their suppliers. About 10 No response 17 14.17 Total Mktg. Cost, TMC (cash + imputed) 17.33 47.82 4.33 percent or 12 traders paid on Processors 61 100.00 Prevailing market price 25 40.98 Wholesale Buying Price, WBP 537.00 617.00 credit terms. Good quality 25 40.98 Wholesale Selling Price, WSP 637.50

Quality and prevailing market price 1 1.64 Total Cost, TC (TMC + WBP) 584.82  Among processors, cash Availability in the market 3 4.92 Margin (WSP - TC) 52.68 Demand and supply 1 1.64 *Materials for shade includes tent payment was common to 48 Supplier 1 1.64 respondents or 79 percent. No response 5 8.20 Twelve (12) respondents or 20 percent paid their suppliers on a consignment basis. One (1) processor used credit in procurement.

8 69 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Processors Table 4. White Corn: Profile of processor- Table 23b. White Corn (Matured): Average marketing costs incurred by type of

marketing participants, Pangasinan, 2009 respondents, selected provinces, Philippines, 2009 MATURED CORN  There were 61 processors covered

TRADER PROCESSOR in the survey and 36 or 59 percent ITEM Total Percent

ITEM FARMER CORNICK of them were informal processors. Type of Processor 61 100.00 IRA-LD PROCESSOR Food processors numbered 15 or Commercial miller 8 13.11 peso per sack of 50 kilograms 25 percent of the respondents. Informal processor 36 59.02 A. Cash Costs 8.48 19.08 14.06 Eight (8) or 13 percent were Food processor 15 24.59 a.1 Labor Cost 6.67 4.06 commercial millers and two (2) or Procurement three (3) percent were feed Feed miller 2 3.28 Loading 1.50 Type of Business Ownership 61 100.00 Unloading 1.50 millers.

Distribution Single proprietorship 53 86.89 Unloading 1.00  As to type of business ownership, Partnership 3 4.92 Salaries/Wages 2.67 4.06 53 processor-respondents or 87 percent were single proprietors. Corporation 5 8.20 a.2 Transportation Cost 5.51 6.25 Private vehicle Five (5) respondents operated Source of Capital 61 100.00 Gas & Oil corpora-tions and three (3) were Self-financed 44 72.13 Procurement 1.25 6.25 Distribution 4.26 into partnership. Borrowed 5 8.20

Self-financed & borrowed 8 13.11 a.3 Material Cost 8.48 5.08  About 72 percent or 44 Sack 8.48 4.45 processor-respondents financed Consignment 4 6.56 Tying materials 0.63 their businesses with their own Length of Processing Experience 61 100.00 a.4 Other Operating Expenses 1.82 3.75 capital. There were eight (8) who less than 5 18 29.51 Repairs and maintenance 0.03 used both owned and borrowed Fees and rentals 0.11 5-10 11 18.03 Telephone and other communication expenses 0.03 capital. Five (5) were dependent 11-15 10 16.39 Light and water expenses 0.13 on borrowed capital only. The rest Meals and snacks 1.52 3.75 operated business on the basis of 16-20 6 9.84 B. Imputed Costs 2.60 0.47 consignment. 21 & above 16 26.23 Depreciation Supplies/Equipment 1.30 0.26  The survey noted that close to 30 percent or 18 processors were in corn business for Facilities 0.20 Transport vehicles 1.30 less than 5 years. Sixteen (16) were in the business for more than 21 years. Six (6) processors were engaged in corn trading for 16-20 years. Total Mktg. Cost, TMC (cash + imputed) 11.08 19.54 14.06 Wholesale Buying Price, WBP 775.00 1250.00 C. Marketing Practices Wholesale Selling Price, WSP 785.50 Total Cost, TC (TMC + WBP) 794.54 Margin (WSP - TC) -9.04 1. Procurement Practices

The marketing practices described below generally relate to procurement and distribution. These would include specific practices observed as to the mode of buying, terms of payment and setting of prices by the different marketing participants.

70 7 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Traders Table 3. White Corn: Profile of trader-respondents, Table 24a. White Corn (Green): Average marketing costs incurred by type of marketing participants, Iloilo, selected provinces, Philippines, 2009 2009 GREEN CORN  There were 120 trader- TRADER PROCESSOR respondents. Of this number, 24 ITEM Total Percent ITEM FARMER INFORMAL BA PA-MD RETAILER were retailers while there were Type of Trading Operations 120 100.00 PROCESSOR 96 wholesalers. There were 29 Wholesaler peso per sack of 50 kilograms A. Cash Costs 29.39 55.69 27.01 41.68 traders operating at the regional BA 8 6.67 level; 67 traders at the provincial MA 9 7.50 a.1 Labor Cost 10.45 level. Procurement MA-MD 3 2.50 Harvesting 2.99 MA-LD 10 8.33 Hauling 2.23  A total of 112 or 93 percent of Sorting/Classifying 2.23 the traders operated as single PA 5 4.17 Bagging 2.99 PA-MD 14 11.67 proprietors. Five (5) traders or a.2 Transportation Cost 18.06 30.10 41.68 four (4) percent were involved in PA-LD 15 12.50 Vehicle rental Procurement 11.11 8.02 41.68 RA-LD 13 10.83 corporation and three (3) or 2.5 Distribution 6.95 5.70 percent were into partnership. IRA 7 5.83 Private vehicle Gas and Oil IRA-LD 9 7.50 Procurement 8.04  By source of capital, 89 traders Agent 3 2.50 Distribution 8.34

or 74.2 percent mentioned that Retailer 24 20.00 a.3 Material Cost 9.11 11.74 25.76 they used their own capital, Type of Business Ownership 120 100.00 Sack 8.78 10.16 13.35 while 18 traders or 15.0 percent Plastic bag (small) 1.13 1.50 Single proprietorship 112 93.33 Tying materials 0.33 0.46 0.38 borrowed. There were traders Partnership 3 2.50 Others* 10.54 (8.3 percent) who used both Corporation 5 4.17 a.4 Other Operating Expenses 2.22 3.41 1.25 owned and borrowed capital. Repairs and maintenance 0.63 Sources of Capital 120 100.00 Three (3) respondents or 2.5 Fees and rentals 2.22 0.63 Self-financed 89 74.17 Meals and snacks 3.41 percent conducted business on Self-financed & borrowed 10 8.33 consignment basis. B. Imputed Costs 7.27 25.08 23.78 28.75 Borrowed 18 15.00 Depreciation Supplies/Equipment 7.27 0.08 0.42 3.75  In terms of corn trading Others 3 2.50 Transport vehicles 0.29 experience, 48 traders or 40 Length of Trading Experience 120 100.00 Unpaid Labor Procurement 25.00 23.08 percent were in corn business for less than 5 22 18.33 Distribution 25.00 5-10 years. Twenty (20) 5-10 48 40.00 Total Mktg. Cost, TMC (cash + imputed) 7.27 54.47 79.47 55.76 41.68 respondents or 16.7 percent said 11-15 18 15.00 they were in business for 21 16-20 12 10.00 Wholesale Buying Price, WBP 555.50 441.67 800.00 433.33 Wholesale Selling Price, WSP 722.00 644.58 years and above. Traders with 21 & above 20 16.67 Retail Selling Price, RSP 1000.00 less than 5 years of corn trading Total Cost, TC (TMC + WBP) 609.97 521.14 855.76 Margin (WSP - TC), (RSP - TC) 112.03 123.44 144.24 experience were represented by *Others includes w innow 22 or 18 percent of the respondents.

6 71 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

B. Profile of Respondents Table 25a. White Corn (Green): Average marketing costs incurred by type of marketing participants, Cebu, Table 2. White Corn: Profile of farmer-respondents,

2009 selected provinces, Philippines, 2009 GREEN CORN Farmers TRADER PROCESSOR ITEM Total Percent ITEM FARMER INFORMAL BA PA/MD PA/LD PROCESSOR  There were 66 farmers who Tenurial Status 66 100.00 peso per sack of 50 kilograms were interviewed for this study. Owner-Operator 28 42.42 A. Cash Costs 17.75 47.90 26.97 18.40 28.47 About 28 or 42 percent of Tenant 23 34.85 a.1 Labor Cost 4.17 10.19 12.18 5.91 1.33 farmers owned their farms. The Lessee 7 10.61 Procurement Sorting/Classifying 6.94 23 tenants accounted for 35 Others* 8 12.12 Loading 6.09 percent while seven (7) or 11 Unloading 6.09 5.91 Length of Farming Experience 66 100.00 Distribution percent were lessees. less than 5 4 6.06 Hauling 4.17 Bagging 3.24 5-10 15 22.73 Salaries/Wages 1.33  Thirty-five (35) of the farmer- respondents were in white corn 11-15 7 10.61 a.2 Transportation Cost 12.50 20.80 3.25 3.28 26.48 16-20 5 7.58 Vehicle rental farming for more than 21 years. Procurement 11.28 25.93 21 & above 35 53.03 Distribution 12.50 9.52 Private vehicle  Those with farming experience Source of Capital 66 100.00 Gas and Oil of 5 to 10 years accounted 15 Self-financed 59 89.39 Procurement 3.25 3.28 3.00 respondents. Five (5) farmers Borrowed 4 6.06 a.3 Material Cost 1.09 8.81 10.46 8.67 reported 16 to 20 years of Sack 1.09 1.76 5.67 4.34 Self-financed & borrowed 3 4.55 Plastic bag (small) 2.24 1.08 experience in farming. * includes CLOA, rent free, mortgage, stewardship Tying materials 2.17 3.71 2.69 Crate 2.64 1.64  Majority or 59 farmers used a.4 Other Operating Expenses 8.10 1.08 0.55 0.66 their own capital to finance Fees and rentals 1.94 0.55 Light and water expenses 2.96 their marketing operations. Meals and snacks 3.20 1.08 0.66 Four (4) farmers opted to

B. Imputed Costs 14.69 11.91 14.30 24.85 borrow while three (3) declared Depreciation that they used their own capital Supplies/Equipment 11.64 0.57 0.77 0.11 Facilities 2.46 and at the same time borrowed Transport vehicles 0.09 13.53 12.06 from friends and relatives. Unpaid Labor Procurement 7.87 12.68 Distribution 0.50 3.47

Total Mktg. Cost, TMC (cash + imputed) 32.44 59.81 41.27 43.25 28.47

Wholesale Buying Price, WBP 333.50 362.50 333.50 402.83 Wholesale Selling Price, WSP 500.00 437.50 500.00 Total Cost, TC (TMC + WBP) 393.31 403.77 376.75 Margin (WSP - TC) 106.69 33.73 123.25

72 5 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

IV. Discussion of Survey Results Table 25b. White Corn (Matured): Average marketing costs incurred by type of marketing participants, Cebu, 2009 Table 1. White Corn: Percent distribution of MATURED CORN A. Distribution of Respondents respondents, selected provinces, Philippines, 2009 TRADER PROCESSOR ITEM FARMER COMMERCIAL IRA IRA/LD RETAILER Province Total Percent CORN MILLER  The survey covered a total of peso per sack of 50 kilograms Supply Areas 247 respondents. A. Cash Costs 48.37 77.72 59.98 77.12 37.05 Isabela 22 8.91 a.1 Labor Cost 16.28 52.13 42.61 44.38 21.55 Pangasinan 21 8.5 Procurement  In six (6) supply areas covered, Loading 1.35 1.35 Cebu accounted for 21 percent Iloilo 14 5.67 Unloading 1.81 1.35 5.17 Cebu 51 20.65 Distribution of respondents. Isabela and Hauling 2.24 Bukidnon 17 6.88 Shelling (manual) 5.94 Pangasinan accounted for Weighing 0.85 2.82 almost nine percent each. South Cotabato 18 7.29 Bagging 1.28 2.82 Loading 1.43 5.38 4.93 8.46 Demand Areas Unloading 1.69 4.83 3.03  From the seven (7) demand Metro Manila 19 7.69 Salaries/Wages 2.85 38.76 31.95 25.11 21.55 areas covered, Sarangani had Ilocos Norte 16 6.48 a.2 Transportation Cost 27.53 24.90 11.25 15.50 Vehicle rental 22 respondents or around nine Bulacan 9 3.64 Procurement 9.40 8.75 8.00 (9) percent. Distribution 21.57 12.50 Batangas 14 5.67 Private vehicle

Cagayan de Oro City 11 4.45 Gas and Oil  Of the total number of Procurement 2.50 7.50 Davao City 13 5.26 Distribution 5.97 3.00 respondents, 48 percent were Sarangani 22 8.91 a.3 Material Cost 2.82 2.79 10.27 traders. Farmers accounted for Sack 1.31 2.79 0.58 27 percent, and processors, 25 Total 247 100 Plastic bag (small) 9.69 Tying materials 1.51 a/ percent. Figure 1. White Corn: Percent distribution of a.4 Other Operating Expenses 1.74 0.69 3.33 22.47 respondents, by type, selected provinces, Repairs and maintenance 0.03 0.04 0.45  Processor-respondents includ- Philippines, 2009 Fees and rentals 0.52 2.46 14.68 Telephone and other communication expenses 0.13 0.39 1.50 ed commercial millers, food Light and water expenses 0.44 2.50 processors, feed millers and Meals and snacks 1.74 3.34

informal processors. In this B. Imputed Costs 37.86 6.60 1.15 20.60 PROCESSORS Depreciation study, the last group of 25% FARMERS Supplies/Equipment 6.91 0.07 0.47 6.37 27% respondents covered were Facilities 7.00 0.05 0.03 Transport vehicles 11.95 6.49 0.64 those who procured mostly Unpaid Labor green corn and boiled corn for Distribution 12.00 14.23

retail selling. In Iloilo and Cebu Total Mktg. Cost, TMC (cash + imputed) 86.23 84.32 61.13 97.72 37.05 this group also included those Wholesale Buying Price, WBP 1027.08 1000.00 1050.00 679.17 who processed native Wholesale Selling Price, WSP 1097.92 1090.45 delicacies. Retail Selling Price, RSP 1190.97 TRADERS Total Cost, TC (TMC + WBP) 1111.41 1061.13 1147.72 48% Margin (WSP - TC), (RSP - TC) -13.49 29.32 43.25 a/ less than 0.01

4 73 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 26a. White Corn (Matured): Average marketing costs incurred by type of marketing At the farm level, the survey team listed the traders and processors identified by the participants, Bukidnon, 2009 farmer-respondents as buyers of their produce. Other key informants in the areas provided MATURED CORN TRADER PROCESSOR information on the marketing participants operating in the areas. A minimum of three (3) ITEM FARMER PA/LD RA/LD FEED MILLER and maximum of five (5) respondents for each type of traders and processors were peso per sack of 50 kilograms considered. A. Cash Costs 30.39 60.69 30.50 32.89 A structured questionnaire was used for each type of marketing participants- farmer, a.1 Labor Cost 1.02 22.07 9.73 22.22 Procurement trader and processor. Drying (solar) 5.00 Piling 1.67 Weighing 2.17 1.67 Reference Period Bagging 2.36 Loading 2.36 Unloading 2.15 1.17 The surveys in Luzon provinces were conducted in August 2009 while those in Distribution Weighing 1.51 Visayas and Mindanao provinces were conducted from October to November 2009. The Loading 1.02 1.51 1.17 reference period varied across island groups due to different harvesting and trading Salaries/Wages 5.02 4.07 22.22 schedules for corn. a.2 Transportation Cost 20.28 13.46 6.50 10.67 Vehicle rental The reference period in Luzon for farmers was the last completed marketing Distribution 20.28 Private vehicle transaction for their last completed harvest in January-July 2009. For traders and Gas and Oil Procurement 5.29 2.99 10.67 processors, it was the completed marketing transaction within January - July 2009. Distribution 8.17 3.51 For Visayas and Mindanao provinces, the reference period for farmers was the last a.3 Material Cost 6.58 9.35 3.93 Sack 6.18 9.00 3.90 completed marketing transaction done on their last completed harvest in August- Newspaper a/ November 2009. The completed marketing transaction within August-November 2009 was Tying materials 0.40 0.35 0.02 the reference period for traders and processors. a.4 Other Operating Expenses 2.50 15.80 10.34 Repairs and maintenance 0.63 Fees and rentals 15.03 5.47 III. Limitation of the Study Telephone and other communication expenses Agent's commission 4.25 Meals and snacks 2.50 0.14 0.62 There were few corn traders interviewed because the study was conducted after B. Imputed Costs 0.27 15.77 8.59 the peak harvesting and trading period in corn producing provinces in Luzon. Some corn Depreciation traders in Mindanao also opted to reduce their procurement of white corn because of the Supplies/Equipment 3.03 1.33 Facilities 5.04 0.06 reduction of demand in “corn eating provinces” due to ample supply of NFA rice in the Transport vehicles 7.70 7.20 Unpaid Labor market. Distribution 0.27 The supply of yellow corn in the local market also contributed to the shifting of Total Mktg. Cost, TMC (cash + imputed) 30.66 76.45 39.09 32.89 other corn traders handling both yellow and white corn to other commodities. For these Wholesale Buying Price, WBP 531.67 610.00 625.00 reasons, the number of traders interviewed was below the expected coverage. Wholesale Selling Price, WSP 620.00 668.33 Total Cost, TC (TMC + WBP) 608.12 649.09 Margin (WSP - TC) 11.88 19.25 In the case of corn processor-respondents, the marketing information gathered a/ less than 0.01 were limited to their procurement operations and practices.

74 3 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

The demand provinces identified were Metro Manila, Ilocos Norte, Bulacan, Table 27a. White Corn (Green) : Average marketing costs incurred by type of marketing participants, South Batangas, Iloilo, Cebu, Cagayan de Oro City, Davao City and Sarangani. These Cotabato, 2009 GREEN CORN provinces/cities were selected based on secondary information on the presence of corn TRADER PROCESSOR ITEM INFORMAL traders, processors and hog and poultry raisers who processed and utilized large volume MA MA-LD PA/MD PA-LD PROCESSOR of corn. peso per sack of 50 kilograms A. Cash Costs 44.68 35.46 16.43 30.58 30.00 Selection of Sample Municipalities a.1 Labor Cost 2.00 5.12 1.54 Procurement The five (5) sample municipalities for each supply area were selected as follows: Loading 1.54 Distribution Hauling 3.87 1. The lists of producing municipalities for both yellow and white corn were Loading 2.00 1.25

prepared. Each list was arranged in descending order according to area a.2 Transportation Cost 20.54 21.25 6.00 20.00 30.00 planted. Vehicle Rental Procurement 6.25 6.25 5.00 30.00 2. From the lists, contribution of yellow and white corn to the total area planted Distribution 15.00 15.00 by municipality for each province was determined. The results served as basis Private vehicle Gas & Oil for allocating five (5) municipalities for each type of corn. For example, if Procurement 6.00 yellow corn accounted for 60%, then three (3) municipalities were covered by Distribution 14.29

the survey. Correspondingly, the remaining two (2) municipalities were a.3 Material Cost 16.62 8.50 8.30 7.76 covered in the survey for white corn. Sack 7.05 8.50 8.30 6.92 Tying materials 0.29 0.83 Materials for shade* 9.29 Selection of Respondents a.4 Other Operating Expenses 5.52 0.59 2.13 1.28 Fees and rentals 1.89 0.30 1.28 Farmers Telephone and other communication expenses 0.77 0.30 Meals and snacks 2.86 2.13 Corn farmers who actually sold at least 50 percent of their produce in their last B. Imputed Costs 14.50 0.32 18.93 0.11 harvest during the reference period were chosen as sample respondents in the identified Depreciation Supplies/Equipment 2.44 0.32 1.85 0.11 sample municipalities. At least six (6) farmers were interviewed in each sample Facilities 4.49 municipality. Transport vehicles 7.57 Unpaid Labor Procurement 17.08 Traders and Processors Total Mktg. Cost, TMC (cash + imputed) 59.17 35.79 35.35 30.69 30.00 The forward and backward tracing techniques were adopted in identifying the Wholesale Buying Price, WBP 437.50 250.00 300.00 250.00 500.00 marketing participants in the sample provinces. Forward tracing was used to determine Wholesale Selling Price, WSP 650.00 400.00 500.00 500.00 Total Cost, TC (TMC + WBP) 496.67 285.79 335.35 280.69 the market outlets and destination points based on information given by farmers and Margin (WSP - TC) 153.33 114.21 164.65 219.31 traders. Backward tracing was employed to track down suppliers of traders. The processors *Materials for shade includes trapal also helped in validating the information gathered from the earlier respondents.

2 75 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 27b. White Corn (Matured) : Average marketing costs incurred by type of Marketing Costs Structure for White Corn marketing participants, South Cotabato, 2009 MATURED CORN ITEM TRADER FARMER MA-LD PA-LD I. Introduction peso per sack of 50 kilograms A. Cash Costs 20.10 43.15 58.16 The demand for information on corn extends beyond production and prices. a.1 Labor Cost 8.09 20.02 Procurement Requests for data on marketing and utilization of corn have been increasing over time. In Hauling 2.31 1.50 response to these concerns, the BAS conducted the Survey on Corn Marketing and Drying (solar) 5.00 Utilization. The survey disaggregated data for yellow and white corn. The marketing Piling 1.16 Weighing 1.16 1.50 aspect of the survey will particularly cover data on marketing costs while the utilization Loading 1.52 part would generate data that can update selected parameters used in the Supply and Unloading 1.50 Distribution Utilization Accounts of the Bureaus. Weighing 1.50 Loading 1.16 1.50 This particular report focuses on the results of the survey on the marketing of Salaries/Wages 2.31 6.00 White Corn. Parts I to III provide the background information for the study while Part IV a.2 Transportation Cost 9.60 7.58 8.47 provides the results. Vehicle Rental Distribution 9.60 Private vehicle Objectives Gas & Oil Procurement 3.34 2.67 Distribution 4.24 5.80 The general objective of the study is to analyze the marketing system for white corn.

a.3 Material Cost 10.50 8.60 16.34 Specifically it aims to: Sack 7.50 8.24 11.16 Tying materials 0.50 0.36 0.33 Materials for shade* 2.50 4.85 a) Identify the key players in marketing and determine the existing distribution system in major supply and demand areas. a.4 Other Operating Expenses 18.88 13.33 b) Determine the market costs and margins of white corn; and Repairs and maintenance 0.03 Fees and rentals 18.80 13.33 c) Identify the problems related to marketing of white corn. Telephone and other communication expenses 0.05

B. Imputed Costs 5.25 2.57 8.28 II. Methodology Depreciation Supplies/Equipment 5.25 1.91 2.97 Facilities 0.79 1.75 Research Site Transport vehicles 0.57 3.56 The study covered six (6) corn supply provinces and seven (7) demand Total Mktg. Cost, TMC (cash + imputed) 25.35 45.71 66.44 provinces/areas. The supply provinces were Isabela, Pangasinan, Cebu, Iloilo, Bukidnon Wholesale Buying Price, WBP 400.00 487.50 and South Cotabato. The selection of major supply areas was based on percentage Wholesale Selling Price, WSP 531.00 660.00 Total Cost, TC (TMC + WBP) 445.71 553.94 contribution to production of both yellow and white corn in the country. The selection Margin (WSP - TC) 85.29 106.06 process, conducted two dimensions namely: the contribution of each province to total *Materials for shade includes trapal corn production within the island and second, the contribution of each province to total corn production for the whole country.

76 1 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 28a. White Corn (Green) : Average marketing costs incurred by type of marketing participants, Metro Manila, List of Annexes (Continued) 2009 GREEN CORN TRADER PROCESSOR Table No. Page ITEM INFORMAL MA-LD RA-LD IRA IRA-LD RETAILER PROCESSOR peso per sack of 50 kilograms 34b White Corn (Matured): Average marketing costs incurred by type of A. Cash Costs 82.94 74.90 83.61 99.76 87.24 15.43 traders, Sarangani, 2009………………………………………………………………….…… 85 a.1 Labor Cost 37.65 39.50 26.00 36.72 22.17

Procurement 35a White Corn: Number of respondents, by type of price, Hauling 4.50 Piling 3.00 1.02 Philippines, 2009…………………………………………………………….…………………… 86 Bagging 3.00 2.05 Loading 10.00 6.00 6.00 7.46 10.00 35b White Corn: Number of respondents, by type of information in volume, Unloading 10.00 5.00 6.00 7.46 10.00 Distribution Philippines, 2009………………….……………………………………………………………… 86 Shelling (mechanical) 2.17 Piling 4.50 0.62 35c White Corn: Number of respondents, by source, Philippines, 2009…..…. 86 Bagging 4.50 2.49 Unloading 6.00 6.53 36a White Corn: Problem encountered by corn farmers, selected provinces, Salaries/Wages 17.65 9.00 8.00 9.09 Philippines, 2009………………………………………………………………..…….….……… 87 a.2 Transportation Cost 35.29 21.00 48.00 48.58 31.42 15.43 Vehicle Rental 36b White Corn: Problem encountered by corn traders, selected provinces, Procurement 28.00 32.67 31.42 15.43 Private vehicle Philippines, 2009 …………………………………………………..……………………….…… 87 Gas & Oil Procurement 35.29 21.00 20.00 15.91 36c White Corn: Problem encountered by corn processors, selected a.3 Material Cost 10.00 9.00 8.27 6.17 31.90 provinces, Philippines, 2009……………………...... …… 87 Sack 10.00 6.47 6.10 12.03

Plastic bag (small) 9.00 8.91 Tying materials 0.80 0.06 Materials for shade* 1.00 0.01 10.10 Others** 0.85

a.4 Other Operating Expenses 5.40 1.33 8.30 1.74 Fees and rentals 5.40 1.33 4.41 1.74 Telephone and other communication expenses 3.89

B. Imputed Costs 6.00 14.15 3.15

Depreciation Supplies/Equipment 6.00 10.74 3.15

Unpaid Labor Procurement 3.41

Total Mktg. Cost, TMC (cash + imputed) 82.94 80.90 97.76 99.76 90.39 15.43

Wholesale Buying Price, WBP 900.00 700.00 1300.00 1025.00 1250.00 1162.50 Wholesale Selling Price, WSP 1050.00 850.00 1500.00 1200.00 Retail Selling Price, RSP 1500.00 Total Cost, TC (TMC + WBP) 982.94 780.90 1397.76 1124.76 1340.39 Margin (WSP - TC), (RSP - TC) 67.06 69.10 102.24 75.24 159.61 *Materials for shade includes umbrella **Others include w innow and banana leaves

x 77 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 28b. White Corn (Matured) : Average marketing costs incurred by List of Annexes (Continued) type of traders, Metro Manila, 2009 MATURED CORN TRADER Table No. Page

ITEM PA-MD RETAILER

peso per sack of 50 25b White Corn (Matured): Average marketing costs incurred by type of kilograms marketing participants, Cebu, 2009……………………………………………………… 73 A. Cash Costs 78.08 80.35 26a White Corn (Matured): Average marketing costs incurred by type of a.1 Labor Cost 21.00 5.75 Distribution marketing participants, Bukidnon, 2009…………………………………….………… 74

Loading 9.00 Unloading 9.00 27a White Corn (Green): Average marketing costs incurred by type of Salaries/Wages 3.00 5.75 marketing participants, South Cotabato, 2009………………….……….………… 75

a.1 Transportation Costs 31.25 37.50 27b White Corn (Matured): Average marketing costs incurred by type of Vehicle Rental Procurement 37.50 marketing participants, South Cotabato, 2009……………………….………..….. 76

Distribution 31.25 28a White Corn (Green): Average marketing costs incurred by type of a.2 Material Costs 1.50 9.10 marketing participants, Metro Manila, 2009…………………………….….……… 77 Sack 7.50 Plastic bag (small) 1.50 0.80 28b White Corn (Matured): Average marketing costs incurred by type of Office supplies* 0.80 traders, Metro Manila, 2009…………………………………………………….…….…… 78

a.4 Other Operating Expenses 24.33 28.00 Fees and rentals 10.05 15.00 29a White Corn (Matured): Average marketing costs incurred by type of Telephone and other communication expenses 14.29 13.00 traders, Ilocos Norte, 2009……………………...... …… 79

B. Imputed Costs 37.39 30a White Corn (Green): Average marketing costs incurred by type of Depreciation traders, Bulacan, 2009………………………………………..………………………..……… 80 Supplies/Equipment 5.27 Facilities 7.94 30b White Corn (Matured): Average marketing costs incurred by cornick Transport vehicles 20.98 Unpaid Labor processor, Bulacan, 2009……………………………………………………………..……… 80 Procurement 3.20 31a White Corn (Green): Average marketing costs incurred by type of Total Mktg. Cost, TMC (cash + imputed) 115.47 80.35 marketing participants, Batangas, 2009……………………………………….……… 81

Wholesale Buying Price, WBP 900.00 1020.00 32a White Corn (Matured): Average marketing costs incurred by type of Wholesale Selling Price, WSP 1150.00 Retail Selling Price, RSP 1280.00 marketing participants, Cagayan De Oro City, 2009……………………………… 82

Total Cost, TC (TMC + WBP) 1015.47 1100.35 Margin (WSP - TC), (RSP - TC) 134.53 179.65 33a White Corn (Matured): Average marketing costs incurred by type of marketing participants, Davao City, 2009…………………………………..….…… 83

34a White Corn (Green): Average marketing costs incurred by type of participants, Sarangani, 2009………………………………….…………………………… 84

78 ix MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

List of Annexes (Continued) Table 29a. White Corn (Matured) : Average marketing costs incurred by type of marketing participants, Ilocos Norte, 2009 MATURED CORN TRADER PROCESSOR ITEM INFORMAL CORNICK MA PA/MD PA/LD RA/LD IRA Table No. Page PROCESSOR PROCESSOR peso per sack of 50 kilograms 18b White Corn: Number of trader-respondents, by price setter in distribution, A. Cash Costs 48.76 52.13 28.11 44.69 51.77 38.12 46.22 selected provinces, Philippines, 2009…………………………………………………… 63 a.1 Labor Cost 8.28 4.00 5.51 19.68 9.71 4.26 5.30 Procurement

Hauling 0.39 2.40 18c White Corn: Number of farmer-respondents, by basis of pricing in Cleaning 3.60 Sorting/Classifying 0.52 distribution, selected provinces, Philippines, 2009……………………………… 64 Weighing 0.52 Bagging 0.26 18d White Corn: Number of trader-respondents, by basis of pricing in Loading 1.38 Unloading 1.38 distribution, selected provinces, Philippines, 2009………………….…………… 64 Distribution Hauling 1.93 7.50 19 White Corn: Number of trader-respondents, by type of commodities Loading 1.29 2.00 Unloading 1.29 2.00 handled, selected provinces, Philippines, 2009 ……………………….….……… 65 Salaries/Wages 2.10 5.51 3.42 9.71 4.26 5.30

20 White Corn: Number of processor-respondents, by type of processed a.2 Transportation Cost 14.00 9.03 5.20 34.57 33.86 32.56 Vehicle rental product, selected provinces, Philippines, 2009 ……………………………….…… 65 Procurement 14.00 28.00 30.00 26.85 Private vehicle Gas and Oil 21 White Corn: Major sources and destination, selected provinces, Procurement 9.03 5.20 6.57 3.86 5.71 Philippines, 2009 ……………………...... …… 66 a.3 Material Cost 13.53 10.30 0.59 7.00 0.50 Sack 8.50 10.00 7.00 22a White Corn (Green): Average marketing costs incurred by type of Plastic bag (small) 0.77 0.50 marketing participants, Isabela, 2009………………………………………..………… 67 Newspaper Tying materials 4.26 0.30 0.59 a/

22b White Corn (Matured): Average marketing costs incurred by type of a.4 Other Operating Expenses 26.95 23.83 12.98 12.81 7.49 7.86 marketing participants, Isabela, 2009…………………………………………..……… 68 Gas and oil (not used for transportation) 5.80 Repairs and maintenance 0.02 Fees and rentals 24.55 12.63 10.98 6.03 23a White Corn (Green): Average marketing costs incurred by type of Telephone and other communication expenses 1.62 1.40 2.00 1.77 0.34 marketing participants, Pangasinan, 2009…………………………………….……… 69 Meals and snacks 0.77 4.00 5.00 7.14 7.86

B. Imputed Costs 18.79 13.92 17.17 10.60 6.84 23b White Corn (Matured): Average marketing costs incurred by type of Depreciation marketing participants, Pangasinan, 2009………………………………………….… 70 Supplies/Equipment 11.46 7.88 12.49 1.38 0.03 Facilities 3.77 1.44 0.36

Transport vehicles 3.56 1.03 4.67 7.79 6.45 24a White Corn (Green): Average marketing costs incurred by type of Unpaid Labor Procurement 2.00 marketing participants, Iloilo, 2009……………………………………………..….…… 71 Distribution 3.00

25a White Corn (Green): Average marketing costs incurred by type of marketing Total Mktg. Cost, TMC (cash + imputed) 67.55 66.05 45.28 55.29 58.61 38.12 46.22

participants, Cebu, 2009………………………………………….…………………………… 72 Wholesale Buying Price, WBP 1400.00 1250.00 1258.50 1625.00 1383.38 1300.00 1466.67 Wholesale Selling Price, WSP 1500.00 1383.38 1383.50 1750.00 1504.23 Total Cost, TC (TMC + WBP) 1467.55 1316.05 1303.78 1680.29 1441.99 Margin (WSP - TC) 32.45 67.33 79.72 69.71 62.24 a/ less than 0.01

viii 79 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 30a. White Corn (Green) : Average marketing costs incurred by type of traders, Bulacan, 2009 GREEN CORN TRADER ITEM List of Annexes (Continued) MA RETAILER peso per sack of 50 kilograms A. Cash Costs 59.86 43.53 Table No. Page a.1 Labor Cost 20.45 Procurement Hauling 4.09 Distribution 13a White Corn: Number of trader-respondents, by mode of procurement, Hauling 4.09 Sorting/Classifying 4.09 selected provinces, Philippines, 2009…………………………………………………… 55 Loading 4.09 Unloading 4.09 Salaries/Wages 13b White Corn: Number of processor-respondents, by mode of procurement,

a.2 Transportation Cost 30.68 20.00 selected provinces, Philippines, 2009………….………………………………….…… 56 Vehicle rental Procurement 18.41 20.00 Distribution 12.27 14a White Corn: Number of trader-respondents, by term of payment in

a.3 Material Cost 8.73 10.61 procurement, selected provinces, Philippines, 2009………………….………… 56 Sack 8.00 Plastic bag (small) 3.56 Tying materials 0.73 14b White Corn: Number of processor-respondents, by term of payment in Others* 7.06 procurement, selected provinces, Philippines, 2009……………………..…..… 57

a.4 Other Operating Expenses 12.91 Fees and rentals 8.74 15a White Corn: Number of trader-respondents, by price setter in procurement, Telephone and other communication expenses 4.17 selected provinces, Philippines, 2009……………………………………….….……… 57 B. Imputed Costs 8.79 16.80 Depreciation Supplies/Equipment 1.82 11.80 15b White Corn: Number of trader-respondents, selected provinces, Transport vehicles 2.12 Unpaid Labor Philippines, 2009…………………………………………………………………………….…… 58 Procurement 4.85 5.00

Total Mktg. Cost, TMC (cash + imputed) 68.65 60.33 15c White Corn: Number of trader-respondents, by basis of pricing in

Wholesale Buying Price, WBP 983.33 1050.00 procurement, selected provinces, Philippines, 2009……………………...…… 59 Wholesale Selling Price, WSP 1158.33 Retail Selling Price, RSP 1200.00 Total Cost, TC (TMC + WBP) 1051.98 1110.33 15d White Corn: Number of processor-respondents, by basis of pricing in Margin (WSP - TC), (RSP - TC) 106.35 89.67 *Others include w innow and knife procurement, selected provinces, Philippines, 2009…………………………… 60

Table 30b. White Corn (Matured) : Average marketing costs incurred by 16a White Corn: Number of farmer-respondents, by mode of distribution, cornick processor, Bulacan, 2009 MATURED CORN selected provinces, Philippines, 2009…………………………………………………… 61 PROCESSOR ITEM CORNICK PROCESSOR 16b White Corn: Number of trader-respondents, by mode of distribution, peso per sack of 50 selected provinces, Philippines, 2009…………………………………………………… 61 kilograms A. Cash Costs 25.00 17a White Corn: Number of farmer-respondents, by term of payment in a.1 Labor Cost 8.33 Salaries/Wages 8.33 distribution, selected provinces, Philippines,2009……………………………… 62

a.2 Transportation Cost 8.33 Private vehicle 17b White Corn: Number of trader-respondents, by term of payment in Gas and Oil distribution, selected provinces, Philippines, 2009……………………….…… 62 Procurement 8.33

a.4 Other Operating Expenses 8.33 18a White Corn: Number of farmer-respondents, by price setter in distribution, Meals and snacks 8.33 selected provinces, Philippines, 2009…………………………………………………… 63 Total Mktng. Cost, TMC (cash + noncash) 25.00 Wholesale Buying Price, WBP 1385.00

80 vii MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

List of Annexes Table 31a. White Corn (Green) : Average marketing costs incurred by type of marketing participants, Batangas, 2009 GREEN CORN TRADER PROCESSOR

Table No. Page ITEM INFORMAL BA MA-LD PA PA-MD RA-LD PROCESSOR peso per sack of 50 kilograms 1 White Corn: Number of respondents, selected provinces, A. Cash Costs 61.17 54.26 37.27 73.82 43.43 48.31 Philippines, 2009………………………………………….……………………………………… 49 a.1 Labor Cost 12.87 28.20 33.86 19.72

Procurement 1a White Corn: Number of respondents, by type of marketing participants Hauling 4.86 Husking 5.00 5.20 and by types of corn, selected provinces, Philippines, 2009………….……… 49 Shelling (manual) 6.00 5.80 Sorting/Classifying 2.86 3.00 2.80 Weighing 2.60 2.40 2 White Corn: Number of farmer-respondents, by tenurial status, selected Bagging 2.86 2.50 provinces, Philippines, 2009………………………………………………………………… 50 Loading 2.86 4.55 4.17 3.57 Unloading 4.55 3.57 Distribution 3 White Corn: Number of farmer-respondents, by length of farming Sorting/Classifying 2.35 Bagging 2.35 experience, selected provinces, Philippines, 2009…………………………..…… 50 Loading 4.17 Unloading 4.29 4.47 4 White Corn: Number of farmer-respondents, by source of capital for Salaries/Wages 7.89

marketing, selected provinces, Philippines, 2009………………………….……… 50 a.2 Transportation Cost 31.24 41.60 33.33 16.43 48.31 Vehicle Rental Procurement 10.41 22.88 33.82 5 White Corn: Number of trader-respondents, selected provinces, Distribution 20.83 18.72 33.33 Philippines, 2009…………………………………………………………………………….…… 51 Private vehicle Gas & Oil

Procurement 16.43 6 White Corn: Number of trader-respondents, by type of business a.3 Material Cost 10.81 7.50 8.27 1.80 ownership, selected provinces, Philippines, 2009 …………………………..…… 52 Sack 9.38 6.50 8.00 Plastic bag (small) 0.27 0.40 7 White Corn: Number of trader-respondents, by source of capital for Tying materials 1.44 1.00 0.38 Materials for shade* 1.01 marketing, selected provinces, Philippines, 2009…………………….…………… 52 a.4 Other Operating Expenses 6.25 5.16 0.80 4.83 7.28 Fees and rentals 6.25 4.50 0.80 3.54 7.28 8 White Corn: Number of trader-respondents, by length of trading Telephone and other communication expenses 0.97 experience, selected provinces, Philippines, 2009………………………..……… 53 Agent's commission 0.67 Light and water expenses 0.33

9 White Corn: Number of processor-respondents, selected provinces, B. Imputed Costs 23.07 20.54 11.46 0.15 Depreciation Philippines, 2009……………………………………………………………………….………… 53 Supplies/Equipment 0.42 0.54 2.61 0.15 Facilities 1.22 10 White Corn: Number of processor-respondents, by type of business Transport vehicles 1.46 6.73 Unpaid Labor ownership, selected provinces, Philippines, 2009………………………………… 54 Procurement 21.20 20.00 Distribution 0.90

11 White Corn: Number of processor-respondents, by source of capital for Total Mktg. Cost, TMC (cash + imputed) 61.17 77.34 57.81 85.28 43.58 48.31 marketing, selected provinces, Philippines, 2009………………………….…… 54 Wholesale Buying Price, WBP 750.00 782.00 765.00 917.00 904.50 1083.33

Wholesale Selling Price, WSP 917.00 1042.00 939.50 1168.75 1012.00 12 White Corn: Number of processor-respondents, by length of experience Total Cost, TC (TMC + WBP) 811.17 859.34 822.81 1002.28 948.08 Margin (WSP - TC) 105.83 182.66 116.69 166.47 63.92 In processing business, selected provinces, Philippines, 2009 …………… 55 *Materials for shade includes umbrella

vi 81 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 32a. White Corn (Matured) : Average marketing costs incurred by type of marketing List of Figures participants, Cagayan De Oro City, 2009 MATURED CORN TRADER PROCESSOR Figure No. Page ITEM FOOD MA RA-LD RETAILER PROCESSOR* peso per sack of 50 kilograms 1 White Corn: Percent distribution of respondents, by type, selected A. Cash Costs 46.73 24.91 30.41 19.17 provinces, Philippines, 2009…………………………………………..……………………. 4

a.1 Labor Cost 13.60 18.93 16.44 Procurement 2 Isabela, Geographic Flow of White Corn, 2009……………………………..……… 12 Drying (solar) 2.25 Weighing 1.50 3 Pangasinan, Geographic Flow of White Corn, 2009…………………….……….. 12 Loading 1.60 1.73 Unloading 1.73 4 Iloilo, Geographic Flow of White Corn, 2009………………………………..………. 13 Distribution Loading 1.73 Salaries/Wages 12.00 10.00 16.44 5 Cebu, Geographic Flow of White Corn, 2009…………………………………..…… 13

a.2 Transportation Cost 24.00 19.17 6 Bukidnon, Geographic Flow of White Corn, 2009………………………………… 14 Vehicle rental Procurement 19.17 7 South Cotabato, Geographic Flow of White Corn, 2009……………….………. 14 Distribution 24.00

a.3 Material Cost 7.27 2.16 4.53 8 Isabela, Marketing Channels of White Corn, 2009…………………………..…… 16 Sack 7.20 2.03 Plastic bag (small) 4.53 9 Pangasinan, Marketing Channels of White Corn, 2009………………………… 16 Tying materials 0.07 0.13 10 Iloilo, Marketing Channels of White Corn, 2009…………………………………… 17 a.4 Other Operating Expenses 1.86 3.83 9.44

Gas and oil (not used for transportation) 0.06 Repairs and maintenance 0.24 11 Cebu, Marketing Channels of White Corn, 2009…………………………………… 17 Fees and rentals 0.96 0.78 9.20 Telephone and other communication expenses 0.30 0.49 12 Bukidnon, Marketing Channels of White Corn, 2009…………….……………… 18 Agent's commission 2.50 Meals and snacks 0.60 13 South Cotabato, Marketing Channels of White Corn, 2009……………..…… 19

B. Imputed Costs 0.42 27.72 14.46 Depreciation 14 White Corn: Peak and Lean Season of Trading, selected provinces, Supplies/Equipment 0.42 2.96 14.46 Philippines, 2009……………………………………………………………………….………… 40 Facilities 23.64 Transport vehicles 1.13

Total Mktg. Cost, TMC (cash + imputed) 47.15 52.64 44.87 19.17

Wholesale Buying Price, WBP 450.00 475.00 881.25 550.00 Wholesale Selling Price, WSP 550.00 565.00 Retail Selling Price, RSP 1150.00 Total Cost, TC (TMC + WBP) 497.15 527.64 926.12 Margin (WSP - TC), (RSP - TC) 52.85 37.36 223.88 *corn coffee beverages processor

82 v MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

Table 33a. White Corn (Matured) : Average marketing costs incurred by type of marketing participants, Davao City, 2009 MATURED CORN List of Tables (Continued) TRADER PROCESSOR ITEM COMMERCIAL PA-MD PA-LD RA-LD IRA-LD RETAILER CORN MILLER Table No. Page peso per sack of 50 kilograms A. Cash Costs 24.14 41.83 72.81 59.39 18.82 33.50

a.1 Labor Cost 7.63 16.41 27.56 14.62 13.80 12.00 Procurement 27 White Corn (Green): Average marketing costs and margins by type of Drying (solar) 2.68 participants, Saranggani, 2009……………………………………………..……………… 38 Piling 1.36 Weighing 1.60 1.45

Loading 1.60 2.91 1.50 28 White Corn (Matured): Average marketing costs and margins by type of Unloading 2.91 2.14 1.50 Distribution traders, Saranggani, 2009………………………………………………………………..….. 39 Hauling 3.71 Sorting/Classifying 4.60 29 White Corn: Marketing information needs of respondents, by type of Weighing 1.55 1.53 2.26 Bagging 1.64 information, selected provinces, Philippines, 2009………………………………. 41 Loading 2.23 1.20 Unloading 2.51 1.20 Salaries/Wages 4.44 7.59 5.15 9.22 11.54 12.00

a.2 Transportation Cost 3.34 5.00 11.92 12.50 20.00 Vehicle Rental Procurement 12.50 Distribution 7.37 Private vehicle Gas & Oil Procurement 5.00 20.00 Distribution 3.34 4.55 Shipping Cost Distribution 28.75

a.3 Material Cost 10.85 13.41 8.87 7.44 0.77 Sack 10.70 9.72 6.87 6.25 Plastic bag (small) 3.66 0.22 1.19 0.52 Tying materials 0.03 0.03 0.10 0.06 Materials for shade* 0.01 0.20 Office supplies** 0.11 0.08 Others*** 1.60

a.4 Other Operating Expenses 2.31 7.00 24.47 24.84 4.25 1.50 Gas and oil (not used for transportation) 0.94 2.40 Repairs and maintenance 0.02 a/ 0.69 0.03 Fees and rentals 1.86 5.10 23.65 16.96 4.22 Telephone and other communication expenses 0.60 2.38 Light and water expenses 0.16 2.41 Meals and snacks 0.43 1.91 0.07 1.50

B. Imputed Costs 0.13 16.49 6.65 6.17 1.49 Depreciation Supplies/Equipment 0.13 16.49 6.65 6.17 1.49 Facilities Transport vehicles

Total Mktg. Cost, TMC (cash + imputed) 24.27 58.32 79.46 65.56 20.31 33.50

Wholesale Buying Price, WBP 550.00 550.00 652.00 818.50 1025.00 550.00 Wholesale Selling Price, WSP 650.00 750.00 900.00 881.00 Retail Selling Price, RSP 1175.00 Total Cost, TC (TMC + WBP) 574.27 608.32 731.46 884.06 1045.31 Margin (WSP - TC), (RSP - TC) 75.73 141.68 168.54 -3.06 129.69 *Materials for shade includes tent **Office supplies include receipt, mask and notebook ***Others include screen and bamboo strips a/ less than 0.01

iv 83 MARKETING COSTS STRUCTURE BUREAU OF AGRICULTURAL STATISTICS WHITE CORN

List of Tables (Continued) Table 34a. White Corn (Green) : Average marketing costs incurred by type of marketing participants, Sarangani, 2009 Table No. Page GREEN CORN TRADER PROCESSOR

ITEM INFORMAL PA RETAILER 14 White Corn (Green): Average marketing costs and margins by type of PROCESSOR marketing participants, Cebu, 2009……………………………………………………… 25 peso per sack of 50 kilograms A. Cash Costs 40.53 44.08 25.91 15 White Corn (Matured): Average marketing costs and margins by type of marketing participants, Cebu, 2009………………………………………………….….. 26 a.1 Labor Cost 12.30 9.87 Salaries/Wages 12.30 9.87 16 White Corn (Matured): Average marketing costs and margins by type of marketing participants, Bukidnon, 2009………………………………………………. 27 a.2 Transportation Cost 18.23 24.08 25.91 Private vehicle 17 White Corn (Green): Average marketing costs and margins by type of Gas and Oil marketing participants, South Cotabato, 2009……………………….……………. 28 Procurement 25.91 Distribution 18.23 24.08 18 White Corn (Matured): Average marketing costs and margins by type of

a.3 Material Cost 10.00 10.13 marketing participants, South Cotabato, 2009……………………….…….……… 29

Sack 10.00 7.34 19 White Corn (Green): Average marketing costs and margins by type of Plastic bag (small) 2.79 B. Imputed Costs 5.58 6.38 marketing participants, Metro Manila, 2009…………………………………..…… 30

Depreciation Supplies/Equipment 5.58 3.53 20 White Corn (Matured): Average marketing costs and margins by type of Facilities 1.06 traders, Metro Manila, 2009…………………………………………………….……….… 31

Transport vehicles 1.79 21 White Corn (Matured): Average marketing costs and margins by type of Total Mktg. Cost, TMC (cash + imputed) 46.11 50.46 25.91 marketing participants, Ilocos Norte, 2009 ……………….…………………….…… 32

Wholesale Buying Price, WBP 625.00 1400.00 1316.67 22 White Corn (Green): Average marketing costs and margins by type of Wholesale Selling Price, WSP 850.00 traders, Bulacan, 2009 ………………………………………………….….…….…………… 33 Retail Selling Price, RSP 1700.00 Total Cost, TC (TMC + WBP) 671.11 1450.46 23 White Corn (Matured): Average marketing costs and margins by cornick Margin (WSP - TC), (RSP - TC) 178.89 249.54 processor, Bulacan, 2009 …………………………………………………………………….. 34

24 White Corn (Green): Average marketing costs and margins by type of marketing participants, Batangas, 2009 ………………………………………………. 35

25 White Corn (Matured): Average marketing costs and margins by type of marketing participants, Cagayan de Oro City, 2009 …………………………….. 36

26 White Corn (Matured): Average marketing costs and margins by type of marketing participants, Davao City, 2009 ……………………………………………. 37

84 iii 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 Philippines, 2009 …………………………………………………………………………………. 6 Hauling 2.47 3.75 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 handled, selected provinces, Philippines, 2009……………….……………….….. 11 Sack 7.05 6.44 4.19 4.00 6.73 3.00 11.47 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 marketing participants, Iloilo, 2009………………………………………………………. 24 Margin(WSP - TC), (RSP - TC) 44.78 11.78 140.09 -2.77 -36.40 149.55 61.09 a/ less than 0.01

ii 85 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

Table 36a. White Corn : Problems encountered by corn farmers, selected provinces, Philiipnes, 2009

PROVINCE PROBLEM Isabela Pangasinan Iloilo Cebu Bukidnon South Cotabato TOTAL PERCENT Price controlled by traders 1 1 2 3 Deviation of buyer from agreed price 1 1 1 High cost of trucking due to lack of transportation 1 1 2 3 Low demand of corn 1 1 1 Low selling price at farm level 2 4 2 2 10 14 Price fluctuation/unstable price 2 7 4 13 18 Inflow of imported corn and wheat 2 2 3 Weather Condition 1 1 1 No response 5 3 27 1 6 42 57 Total 6 18 6 32 6 6 74 100 Note: Mulitple response Table 36b. White Corn : Problems encountered by corn traders, selected provinces, Philiipnes, 2009 PROVINCE PROBLEM South Metro Ilocos Cagayan De Davao Isabela Pangasinan Iloilo Cebu Bukidnon Bulacan Batangas Sarangani TOTAL PERCENT Cotabato Manila Norte Oro City City Bad debts 1 1 5 7 5 Competition with other traders 1 1 1 3 2 1 1 1 4 15 12 High buying price from other traders 1 1 2 2 Higher capital investment 1 2 1 1 1 6 5 Importation of wheat 1 1 1 Low quality of corn 1 4 1 1 1 1 1 1 2 13 10 Low demand of corn 2 2 2 Low selling price 4 2 1 7 5 No market outlet 1 1 2 2 Price fluctuation/unstable price 3 3 3 2 2 13 10 Bad weather condition 2 2 2 No response 3 4 2 6 2 5 12 4 2 3 2 6 5 56 44 Others** 1 1 2 2 Total 10 5 5 17 11 8 14 10 5 11 5 10 17 128 100 Note: Multiple response ** Highways patrol collection, Underweight of corn bought Table 36c. White Corn : Problem encountered by corn processors, selected provinces, Philiipnes, 2009 PROVINCE Cagayan PROBLEM South Metro Ilocos Davao Isabela Pangasinan Iloilo Cebu Bukidnon Bulacan Batangas De Oro Sarangani TOTAL PERCENT Cotabato Manila Norte City City Bouncing check of cornick trader 1 1 1 Competion with other processor 1 2 1 1 1 6 9 Distance to market outlet 1 1 1 High buying price of corn procured 1 1 1 3 4 Higher capital investment 3 1 4 6 Inavailability of transport vehicle 1 1 1 Low demand of boiled/broiled corn (informal processor) 1 1 1 Low demand of processed corn for livestock feeds 1 1 2 3 Low selling retail price compared to other municipalities 1 1 1 Insufficient supply of corn 1 1 1 4 4 2 1 14 21 Poor quality of corn 1 1 1 Price fluctuation/unstable price 1 1 1 1 4 6 Bad weather condition 3 3 4 No response 2 2 1 4 5 1 2 3 1 1 3 25 37 Total 6 4 3 7 1 4 5 10 5 3 8 4 7 67 100 Note: Multiple response

87

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