Marketing Costs Structure for Calamansi

Marketing Costs Structure Study Series 6

MARKETING COSTS STRUCTURE FOR CALAMANSI

Marketing Studies and Development Section Agricultural Marketing Statistics Division BUREAU OF AGRICULTURAL STATISTICS DEPARTMENT OF AGRICULTURE

June 2003 MARKETING COSTS STRUCTURE FOR CALAMANSI

FOREWORD

This is the sixth of a series of research results on Marketing Costs Structure Studies for Selected High Value Commercial Crops. The research was conducted in the second semester of 2001. This report describes the marketing costs of calamansi in the three producing provinces of Quezon, Mindoro Oriental and Guimaras. It includes the marketing costs incurred by traders in the demand areas.

It is hoped that the information in this report would serve as inputs in policy formulation and as guide for various participants in the marketing chain for calamansi in their production and marketing decisions.

ROMEO S. RECIDE Director

Marketing Cost Structure for Calamansi i

Table of Contents

Foreword ...... i Table of Contents ...... ii Statistical Table ...... vii List of Figures ...... vii

I. Introduction Objectives Scope and Limitation ...... 1

II. Research Methodology ...... 2

III. Discussion of Results A. Distribution and Profile of Respondents Types of Marketing Participants ...... 2 - 4 Profile of Respondents ...... 4 - 9 Marketing Practices and Functions ...... 9 Procurement ...... 9 Distribution ...... 10 Geographic Flow ...... 10 - 14 Marketing Channels ...... 14 - 18 Marketing Costs Labor ...... 18 Transportation Material Inputs Miscellaneous and Other Operating Costs Depreciation ...... 19 - 20 Total Marketing Costs ...... 21 Marketing Costs by Point of Destination ...... 21 - 25 Marketing Margins ...... 26 - 31

IV. Problems/Constraints Encountered ...... 32

Statistical Tables ...... 33

STATISTICAL TABLES

1 CALAMANSI : Distribution of respondents, by type, by province/municipality, 2001

2 CALAMANSI : Distribution of respondents, by type of marketing participants, by province, 2001

3 CALAMANSI : Number and percentage distribution of farmer-respondents, by size of farm, by province, 2001

4 CALAMANSI : Number and percentage distribution of farmer-respondents, by tenurial status, by province, 2001

5 CALAMANSI : Distribution of trader-respondents by type of business, by province, 2001

5a CALAMANSI : Distribution of trader-respondents, by type of marketing participants, by type of business, by province, 2001

6 CALAMANSI : Distribution of trader-respondents, by nature of capitalization, by province, 2001

6a CALAMANSI : Distribution of trader-respondents, by type of marketing participants, by nature of capitalization, by province, 2001

7 CALAMANSI : Distribution of trader-respondents, by length of experience, by province, 2001

8 CALAMANSI : Major sources and destinations, by location, by province, 2001

9 CALAMANSI : Cropping Pattern, by activity in selected provinces, 2001

10 CALAMANSI : Distribution of respondent by manner of procurement, by province, 2001 10a CALAMANSI : Distribution of respondents, by type of marketing participants, by manner of procurement, by province, 2001

11 CALAMANSI : Distribution of respondents, by mode of payment in procurement, by province, 2001

11a CALAMANSI : Distribution of trader-respondents, by marketing participants, by mode of payment in buying stocks, by province, 2001

12 CALAMANSI : Distribution of respondents, by manner of distribution, by province, 2001

12a CALAMANSI : Manner of distribution, by type of marketing participants, by province, 2001

13 CALAMANSI : Distribution of respondents, by mode of payment in distribution, by province, 2001

13a CALAMANSI : Distribution of respondents, by type of marketing participants, by mode of payment for distribution, by province, 2001

14 CALAMANSI : Labor costs incurred by activity/practice, by province, 2001

14a CALAMANSI : Labor costs incurred by marketing participants, by activity/practice, Metro Manila, 2001

14b CALAMANSI : Labor costs incurred by marketing participants, by activity/practice, Mindoro Oriental, 2001

14c CALAMANSI : Labor costs incurred by marketing participants, by activity/practice, Batangas, 2001 14d CALAMANSI : Labor costs incurred by marketing participants, by activity/practice, Quezon, 2001

14e CALAMANSI : Labor costs incurred by marketing participants, by activity/practice, Iloilo, 2001

14f CALAMANSI : Labor costs incurred by marketing participants, by activity/practice, Guimaras, 2001

15 CALAMANSI : Transportation costs incurred by activity/practice, by province, 2001

15a CALAMANSI : Transportation costs incurred by marketing participants, by activity/practice, Metro Manila, 2001

15b CALAMANSI : Transportation costs incurred by marketing participants, by activity/practice, Mindoro Oriental, 2001

15c CALAMANSI : Transportation costs incurred by marketing participants, by activity/practice, Quezon, 2001

15d CALAMANSI : Transportation costs incurred by marketing participants, by activity/practice, Iloilo, 2001

15e CALAMANSI : Transportation costs incurred by marketing participants, by activity/practice, Guimaras, 2001

16 CALAMANSI : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, by province, 2001

16a CALAMANSI : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Metro Manila, 2001

16b CALAMANSI : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Mindoro Oriental, 2001 16c CALAMANSI : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Batangas, 2001

16d CALAMANSI : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Quezon, 2001

16e CALAMANSI : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Iloilo, 2001

16f CALAMANSI : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Guimaras, 2001

17 CALAMANSI : Other operating costs by cost item, by province, 2001

17a CALAMANSI : Other operating costs incurred by marketing participants, by cost item, Metro Manila, 2001

17b CALAMANSI : Other operating costs incurred by marketing participants, by cost item, Mindoro Oriental, 2001

17c CALAMANSI : Other operating costs incurred by marketing participants, by cost item, Batangas, 2001

17d CALAMANSI : Other operating costs incurred by marketing participants, by cost item, Quezon, 2001 17e CALAMANSI : Other operating costs incurred by marketing participants, by cost item, Iloilo, 2001

17f CALAMANSI : Other operating costs incurred by marketing participants, by cost item, Guimaras, 2001

18 CALAMANSI : Imputed cost of depreciation by facilities/equipment used, by province, 2001

18a CALAMANSI : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Metro Manila, 2001

18b CALAMANSI : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Mindoro Oriental, 2001

18c CALAMANSI : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Batangas, 2001

18d CALAMANSI : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Quezon, 2001

18e CALAMANSI : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Iloilo, 2001

18f CALAMANSI : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Guimaras, 2001

19 CALAMANSI : Total Marketing Costs, Cash & Non- cash), by cost item, by province, 2001

20 CALAMANSI : Total Marketing Costs (Cash & Non- cash), by Major Item, by province, 2001

21 CALAMANSI : Distribution of respondents, by problems encountered, by province, 2001 LIST OF FIGURES

1 CALAMANSI: Cropping Pattern, by activity in Mindoro Oriental, 2001…………………

2 CALAMANSI: Cropping Pattern, by activity in Quezon, 2001……………………………..

3 CALAMANSI: Cropping Pattern, by activity in Guimaras, 2001…………………………..

4 Geographic Flow of Calamansi in Mindoro Oriental, 2001……………………………………

5 Geographic Flow of Calamansi in Quezon, 2001…………………………………………………

6 Geographic Flow of Calamansi in Guimaras, 2001…………………………………………………

7 Marketing Channels for Calamansi in Mindoro Oriental, 2001………………………………

10 Marketing Channels for Calamansi in Quezon, 2001……………………………………………

11 Marketing Channels for Calamansi in Guimaras, 2001…………………………………………

13 Total Marketing Costs for Calamansi, by Point of Destination, Mindoro Oriental, 2001

14 Total Marketing Costs for Calamansi, by Point of Destination, Quezon, 2001 …………….

15 Total Marketing Costs for Calamansi, by Point of Destination, Guimaras, 2001 ……….

17 Marketing Cost for Calamansi, by level of Marketing Participants, Mindoro Oriental, 2001

18 Marketing Cost for Calamansi, by level of Marketing Participants, Quezon, 2001………….

19 Marketing Cost for Calamansi, by level of Marketing Participants, Guimaras, 2001………..

MARKETING COSTS STRUCTURE FOR CALAMANSI

I. Introduction

Calamansi or calamondin (Citrofortunella microcarpa) is a fruit tree belonging to the citrus family. It is a good source of Vitamin C. Its juice is used as an ingredient or additive in various food preparations. It also possesses medicinal values.

Objective

This study aims to determine the marketing flow and the corresponding expenses incurred by marketing participants in distributing calamansi from the producers to the consumers.

Scope and Limitations

The study covered key supply and demand areas for calamansi in the provinces of Quezon, Mindoro Oriental and Guimaras, representing Luzon and Visayas.

The demand areas for calamansi in Mindoro Oriental include several municipalities within the province and the adjacent province of Batangas. Calamansi from Quezon reaches Rizal and Camarines Norte provinces, while calamansi from Guimaras is consumed mostly in the provinces of Regions 6 and 7. Metro Manila serves as a major demand area.

The study traced the flow and the marketing costs of calamansi from the production to the demand areas. At the demand areas, the study concentrated on the costs incurred in marketing calamansi coming from a supply province but not on calamansi produced in the demand province itself. For instance, in Batangas, the costs borne by traders of calamansi from Mindoro Oriental were covered but not the costs of moving calamansi produced in the municipalities within Batangas province.

Marketing Cost Structure for Calamansi 1

II. Research Methodology

For each of the key supply province, the top 5 producing barangays were chosen from the results of the household listing under the High Value Commercial Crops (HVCC) project. From these top producing barangays, 40 calamansi farmers were selected purposively. Farmers who were engaged in producing/trading calamansi from July 2000 to June 2001 were selected and interviewed.

From the farm level, the team traced the traders identified by the farmer- respondents as buyers of their produce. Most of them were located in the trading centers. From the traders, the team then moved to the next point of sale consisting of retail markets within the province and/or trading centers in the partner provinces.

III. Discussion of Results

The first part of the report describes the distribution, profile and the marketing functions and practices of the respondents. Part 2 presents the marketing costs and the problems encountered by the respondents.

A. Distribution and Profile of Respondents

Types of marketing participants. Of the total of 191 respondents, 120 were farmers and 71 were traders (Table 1).

In this study, four types of traders were identified: assemblers, distributors, assembler-distributors and retailers. The first three types of traders can be classified further according to the geographic coverage and volume of transactions. Table 2 shows the type of marketing participants covered in the study.

1. Assembler - procures calamansi from farmers and/or traders in the supply areas; usually has agents or relatives responsible for procurement and assembly. In this study assemblers are classified according to geographic area of procurement. These are:

Marketing Cost Structure for Calamansi 2

a) Barangay Assembler (BA) – procures from one barangay only. b) Municipal Assembler (MA) - procures from two or more barangays within the municipality. c) Provincial Assembler (PA) - procures from two or more municipalities within the province. d) Regional Assembler (RA) - procures from two or more provinces within the region.

2. Distributor - sells calamansi to other traders and consumers. Since his/her business is primarily to sell than to procure, he/she provides more services to his/her buyers than to his/her suppliers. They can be classified according to the relative volume of commodities and to the geographic sphere of his selling operations (location of buyers). The following are the classification of distributors:

a) Small Distributor (SD) - handles only small volume of goods; sells to retailers within the same market and to small eateries (carinderia) within the area.

b) Medium Distributor (MD) - sells larger volume than small distributor; sells to traders coming from other markets in the province; may also sell to few institutional buyers (hotel, restaurant, hospital, military camp).

c) Large Distributor (LD) - handles the largest volume among the three types of distributors; usually sells to traders from other markets within and outside the province; may also sells to several institutional buyers.

3. Assembler – Distributor - uses the same efforts and resources in procuring and selling a commodity; usually finances farmers and traders in supply areas and has agents responsible for procurement; sells commodities to other traders. Several combinations was identified in the study as shown below:

a) Barangay Assembler- Small Distributor (BA-SD) b) Barangay Assembler- Medium Distributor (BA-MD) c) Municipal Assembler – Small Distributor (MA-SD) d) Municipal Assembler – Medium Distributor (MA-MD) e) Municipal Assembler – Large Distributor (MA-LD) f) Provincial Assembler – Small Distributor (PA-SD) g) Provincial Assembler – Medium Distributor (PA-MD) h) Provincial Assembler – Large Distributor (PA-LD) i) Regional Assembler – Large Distributor (RA-LD)

Marketing Cost Structure for Calamansi 3

NOTE: An assembler remains only an assembler and not an assembler- distributor if the trader sells exclusively to one trader. Example of traders who are purely assemblers are inter-regional, regional, provincial and municipal assemblers who sell to only one processor/exporter with whom they have contract quotas to fulfill.

4. Retailer - sources his/her stocks either directly from the farmers or traders and directly sell the goods to the consumers.

Twenty-seven (27) of the trader-respondents were large distributors; 6 were medium and 6 were small distributors; and 32 were retailers.

Profile of Respondents

The characteristics of the respondents are presented in frequency distribution tables. Farmers were classified by size of farm and land ownership. Traders were grouped according to type of business ownership and length of experience.

Sample Farmers

Size of Farm. The size of farm of farmer respondents ranged from less than 1.0 to more than 5.0 hectares (Table 3).

Calamansi is produced in relatively smaller areas. Sixty-four percent (64%) of the respondents reported farm areas of less than one hectare.

Twenty-two or about 18% of the respondents had farm sizes of less than 2.0 hectares.

Each of 21 farmers cultivated areas of more than two hectares.

Land Ownership. Most of the farmer-respondents owned the farmland they cultivate. Twenty-eight of them were tenants, 4 were lessees and 5 used rent-free and public lands.

In Mindoro Oriental, out of 40 respondents, 32 were owner operators; 2 were holders of certificate of land transfer; 5 were tenants and one used public land.

Marketing Cost Structure for Calamansi 4

Farmer-respondents in Quezon comprised 35 landowners, one was a CLT awardee and 4 were tenants.

Thirty-nine (39) of the farmer-respondents in Guimaras were owners and only one was tenant.

Cropping Pattern. Calamansi bear fruits after a year of planting. Its trees have an average life span of five years. Figures 1-3 and Table 9 illustrate the cropping pattern for calamansi based on the responses of the farmer- respondents.

Out of the 40 farmer-respondents, 14 farmers from Mindoro Oriental planted calamansi trees during the period. All of them had standing bearing trees from which they harvested and marketed the fruits whole year round.

In Quezon, nobody among the respondents planted calamansi from June 2000 to July 2001 but they also have standing bearing trees.

Likewise, the sources of calamansi fruits of farmer-respondents in Guimaras were standing bearing trees.

Sample Traders

Business Ownership. Majority or 93 percent of the trader-respondents in most of the study areas operated under single proprietorship.

Trader-respondents from Metro Manila, Batangas, Quezon and Iloilo were all single proprietors.

Four among the respondents have business partners: 3 from Mindoro Oriental and 1 from Guimaras.

One large-distributor from Mindoro Oriental ran his business as a corporation.

Nature of Capitalization

Ninety-two percent of the trader-respondents financed their own businesses. In Metro Manila, Batangas and Iloilo, all sample traders used their own capital.

One respondent from Mindoro Oriental, one from Quezon and two from Guimaras operated their businesses under financing.

Marketing Cost Structure for Calamansi 5 Figure 1. CALAMANSI: Cropping Pattern, by activity in Mindoro Oriental, 2001

0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec.

Planting Harvesting Trading Figure 2. CALAMANSI: Cropping Pattern, by activity in Quezon, 2001 30

0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec.

Planting Harvesting Trading Figure 3. CALAMANSI: Cropping Pattern, by activity in Guimaras, 2001 50

0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec.

Planting Harvesting Trading

Two trader-respondents from Mindoro Oriental and Guimaras had contract agreements with their buyers.

Length of Experience

Thirteen traders representing 18% of sample traders were trading calamansi for less than 5 years.

Twenty-four traders or 34% were in the business for 5 to 10 years already.

Other trader-respondents have more than ten years experience in calamansi trading: 13 traders with 11-10 years; 7 with 16-20 years and 14 with more than 20 years in this enterprise.

Marketing Practices and Functions

Farmers and traders perform several marketing practices in moving the products from one point to another. The major practices and functions which include the manner of procurement and distribution, mode of payment, geographic flow and marketing channels and the corresponding costs are described in the succeeding sections.

Procurement

In the supply province, traders procured calamansi from the production area within the province. However, Iloilo traders bought their commodity in province of Guimaras and Aklan in addition to the supply of calamansi in the province.

Manner of Procurement

Of the 71 trader-respondents, thirty two or 45 % picked up calamansi from the sources.

Procurement by 54% was done through deliveries by their suppliers.

There was one trader from Iloilo who procured calamansi fruits using both pick-up and delivery.

Mode of Payment. Payments of procurement were either cash on delivery, consignment or delayed payment.

Marketing Cost Structure for Calamansi 9

Majority of the trader-respondents (42 out of 71) paid their suppliers in cash upon delivery.

Twenty-seven traders practiced consignment and two traders delayed their payments to the suppliers.

Distribution

The following describes the mode of delivery and the terms of payment made by the respondents.

Mode of Delivery. The mode of delivery of calamansi depended on the type of buyer and the location.

Thirty three (33) of the sample farmers and 3 traders from Mindoro Oriental delivered calamansi to their buyers. On the other hand, 7 farmers and 6 traders let their buyers picked up the fruits from them.

In contrast, 33 farmers from Quezon and 35 from Guimaras have their buyers picked up the fruits from their farm while 7 and 5 farmers, respectively delivered calamansi to their buyers.

In Metro Manila, one retailer delivered calamansi to his buyers. Calamansi sold by 7 large distributors and 12 retailers were picked up from their stalls by their buyers

Mode of Payment. Terms of payment in selling calamansi were either cash on delivery or consignment.

Twenty eight farmers in Mindoro Oriental, 21 in Quezon and another 21 in Guimaras were paid on consignment basis. The remaining 50 farmer-respondents were paid in cash.

Twenty assembler-distributors received payment in cash. Nineteen (19) of them were paid in consignment. The retailer-respondents (32) from all the covered areas received payment in cash.

Geographic Flow

Table 8 presents the sources and destination point of calamansi in the areas of the study. Figures 4 – 6 illustrate the flow of calamansi by location and by province.

Marketing Cost Structure for Calamansi 10 Mindoro Oriental -Calapan Manila -Bilboa Batangas -Puerto Galera DEMAND -Victoria AREAS

Mindoro Oriental Trading Centers: -Naujan -Pola TRADING -Guitad CENTERS -Calapan -Victoria -Bago -Bagong Silang -Lumang Bayan

Mindoro Oriental: -Naujan SUPPLY -Pola AREAS -Guitad -Calapan -Victoria -Bago -Bagong Silang -Lumang Bayan

Figure 4. GEOGRAPHIC FLOW OF CALAMANSI IN MINDORO ORIENTAL, 2001 Quezon: -Lopez -Gumaca Camarines Norte -Lucena City Rizal DEMAND -Atimonan AREAS -Calauag -Catanauan

Quezon Trading Centers: -Lopez TRADING -Gumaca CENTERS -Alabat -Atimonan -Tagcauayan

Quezon: -Lopez SUPPLY -Gumaca AREAS -Alabat -Atimonan -Caglate -Tagcauayan -Caridad -Magsino

Figure 5. GEOGRAPHIC FLOW OF CALAMANSI IN QUEZON, 2001 Guimaras: Negros Oriental - Buenavista Negros Occidental - Jordan Cebu Palawan Iloilo Metro Manila Antique DEMAND Capiz AREAS

San Lorenzo Gaban TRADING Buena Vista CENTERS Jordan

Buena Vista Sibunag SUPPLY San Lorenzo AREAS Gabon Jordan

Figure 6. GEOGRAPHIC FLOW OF CALAMANSI IN GUIMARAS, 2001

Mindoro Oriental

Calamansi traded in Mindoro Oriental came from the following municipalities within the province: Naujan, Pola, Guitad, Calapan, Victoria, Bago, Bagong Silang and Lumang Bayan.

Calamansi fruits were brought to the markets within the supply municipalities.

From the trading centers, calamansi were distributed serving the needs of areas within and outside the province. Demand areas outside Mindoro Oriental were Batangas and Manila.

Quezon

Calamansi in Quezon were sourced from Lopez, Gumaca, Alabat, Atimonan, Caglate, Tagcauayan, Caridad and Magsino.

From the farm, the fruits were distributed to the markets of Lopez, Gumaca, Alabat, Atimonan and Tagcauayan (all within Quezon) and to the provinces of Camarines Norte, Rizal and Metro Manila.

Guimaras

The supply of calamansi in Guimaras came primarily from the municipalities of Buena Vista, Sibunag, San Lorenzo, Gaban, Camansi and Jordan. No supplies came from outside Guimaras.

Calamansi were traded in the markets of San Lorenzo, Gaban, Buena Vista, Jordan and Camansi.

From there, calamansi was distributed to Western and Central Visayas provinces, Palawan and Metro Manila.

Marketing Channels

Figures 7 - 9 illustrate the distribution channels of calamansi from the farmers to the final consumers.

Mindoro Oriental

Farmers sold calamansi to assembler-distributors, buyers outside the province (BOP), processors and retailers. The assembler- distributors brought their procured calamansi to a “bodega”/buying

Marketing Cost Structure for Calamansi 14 CONSUMER

PROCESSOR RETAILER

BODEGA

BOP

MA-MD

PA-LD BA-SD

FARMER

Figure 7. MARKETING CHANNELS FOR CALAMANSI IN MINDORO ORIENTAL, 2001 CONSUMER

BUYERS OUTSIDE PROVINCE

RETAILER

BA-SD PA-LD

FARMER

Figure 8. MARKETING CHANNELS FOR CALAMANSI IN QUEZON, 2001 CONSUMER

INSTITUTIONAL BUYERS

RETAILER RETAILER FROM OTHER MARKETS

BA-SD

MA-LD PA-LD

BUYERS OUTSIDE TRADER FROM THE PROVINCE AKLAN

FARMER

Figure 9. MARKETING CHANNELS FOR CALAMANSI IN GUIMARAS, 2001

station for distribution to the buyers coming outside the province. They also sold calamansi to retailers and processors.

Quezon

Assembler-distributors and retailers bought calamansi from the farmers. The outlets of the assembler-distributors were retailers and buyers outside Quezon. Retailers, on the other hand, sold calamansi directly to consumers.

Guimaras

Calamansi farmers in Guimaras sold their produce to assembler- distributors and buyers outside the province. There were 5 farmers who directly sold calamansi to retailers. Traders sold their procurement to other traders and retailers within the trading center. Provincial assembler-large distributors supplied calamansi to a trader from Aklan and to retailers from other markets.

Marketing Costs

Marketing of calamansi from the farm up to retail level entails several costs which include labor, transportation, material inputs, other operating expenses and depreciation. The succeeding topics describe the costs borne by the marketing participants in transferring calamansi from the farmer to the retailer.

Labor

The activities in procuring calamansi from the farm included hauling, handling (loading and unloading from the farm to the truck/vehicle) and sorting. Shipping costs included fees for handling, arrastre and stevedoring. On the other hand, hauling, handling, sorting, selling, packing, weighing and cleaning comprised labor costs in the distribution of calamansi.

Quezon incurred the highest labor cost with an average of P1.32 per kilogram of calamansi which include labor in shipping, (P0.01) and distribution cost, (P1.31).

Cost of trading in Mindoro Oriental averaged P1.28 per kilogram from procurement to selling; the large portion was payment for sorting.

In Guimaras, relatively lower cost for labor was estimated at P0.66 per kilogram of calamansi.

Marketing Cost Structure for Calamansi 18

Among the demand areas, traders from Manila incurred the highest labor cost at P1.30; followed by Iloilo, P0.94 per kilogram of calamansi and Batangas, P0.19 per kilogram.

Transportation

Transportation cost depends on the distance and destination of the commodity.

The cost of transporting calamansi from the farm to market was highest in Mindoro Oriental. Farmers spent an average of P0.49 per kilogram for hauling and P0.56 for shipping, while traders spent P0.35 for procurement and P0.66 per kilogram for distribution.

Iloilo farmers and traders incurred a total transportation cost of P1.30 per kilogram of calamansi, on average.

A relatively lower transport cost was spent in calamansi trading in Metro Manila, P0.69, Quezon, P0.42, and Guimaras, P0.45.

Material Inputs

Costs of materials include those for containers (like “kaing”, sacks, plastic bags, “bilao”, basket or wooden box), twine, old newspapers, etc. Aside from those materials, banana leaves, needle, tie wire, different types of bags and sacks were used in selling calamansi (Table 16).

Cost of material inputs ranged from P0.08 to P0.82 per kilogram of calamansi.

In Metro Manila, trading cost amounted to P0.57 per kilogram, on average.

From farm to market, the cost of material inputs was P0.39 per kilogram in Mindoro Oriental.

Traders in Batangas incurred an average of P0.27 for material costs per kilogram of calamansi.

Material cost for marketing was highest in Quezon at P0.82 per kilogram of calamansi.

Marketing Cost Structure for Calamansi 19

Traders in Iloilo used only sacks, kaing and plastic bags costing an average of P0.08 per kilogram of calamansi.

In Guimaras, marketing costs per kilogram of calamansi included procurement cost of P0.33, and P0.30 for distribution.

Miscellaneous and Other Operating Costs

Miscellaneous and other operating expenses include business permit/license, market fee, electricity, telephone, water, gas and oil, cell cards, etc. These also cover expenses for meals and beverages while transporting the commodity (Table 17).

Cost of other operating expenses ranged from P0.23 in Guimaras to P0.91 per kilogram in Mindoro Oriental.

Respondents from Mindoro Oriental reported the highest shrinkage/wastage costs averaged at P0.35 per kilogram; followed by Iloilo (P0.122) and Metro Manila (P0.11).

Toll gate fee paid by the sample respondents amounted to P0.19 in Mindoro Oriental, P0.14 in Metro Manila and P0.13 in Iloilo.

Depreciation

The study computed depreciation costs of materials, facilities and transportation items used in calamansi marketing (Table 18).

Depreciation costs ranged from P0.07 to 34 centavos per kilogram of calamansi.

Depreciation cost incurred by traders in Metro Manila was the lowest at P0.07 per kilogram of calamansi.

Depreciation costs of traders from Mindoro Oriental, Batangas and Quezon were estimated at P0.09, P0.34 and P0.22 per kilogram of calamansi, respectively.

In Iloilo and Guimaras, depreciation costs were P0.10 and P0.14 per kilogram of calamansi, respectively.

Marketing Cost Structure for Calamansi 2 0

Total Marketing Costs

The total marketing cost items includes the costs incurred by the sample respondents on labor, transportation, material inputs, other operating expenses and imputed costs on labor and depreciation of materials, equipment and facilities. These items were aggregated according to cash outlay which include cash, non cash and imputed costs.

Total cash cost was highest in Mindoro Oriental at P4.64, followed by Metro Manila, P3.14; the lowest was in Batangas, P0.74.

In contrast, non-cash cost including the depreciation cost was highest in Batangas, P0.34; and lowest in Metro Manila, P0.07.

The total costs borne by marketing participants ranged from P1.08 (Batangas) to P4.72 per kilogram (Mindoro Oriental).

Transportation cost accounted for the highest, at an average of P2.06 per kilogram of calamansi. Labor costs and other operating expenses have significant shares to total marketing costs in Mindoro Oriental.

In Metro Manila, labor cost accounted for the biggest share at P1.30 which included salaries and wages; transportation costs, P0.69; other operating expenses, P0.58; material inputs, P.57, and imputed costs, P0.07.

Marketing costs computed in Quezon included labor cost of P1.32; transportation expenses of P0.42; materials, P0.82; other operating expenses, P0.55 and imputed costs, P0.22 per kilogram of calamansi.

Marketing Costs by Point of Destination

Figures 10 to 12 illustrate the estimated costs of transferring calamansi from the supply barangay to the different trading/demand areas.

Quezon

In moving calamansi from the supply area to Rizal province, sample respondents spent an average cost of P1.13 per kilogram. However, respondents who sold in the different markets within the province incurred P1.23 per kilogram.

Marketing Cost Structure for Calamansi 2 1 MATRIX OF MARKETING COSTS FOR CALAMANSI BY POINT OF DESTINATION, 2001

Marketing Costs Supply Area/ Destination (peso per kilogram)

Mindoro Oriental - supply area to markets within the province 2.36 - supply area to Batangas 1.91 - supply area to Metro Manila 1.62

Quezon - supply area to markets within the province 1.23 - supply area to Rizal 1.13

Guimaras - supply area to markets within the province 0.66 - supply area to Negros Occidental 0.80 - supply area to Metro Manila 0.89

Marketing Cost Structure for Calamansi 2 2 Mindoro Oriental to Manila = P1.62

Metro Manila

Mindoro Oriental to Batangas = P1.91

Batangas

Within Mindoro Oriental = P2.36

Mindoro Oriental

Figure 10. Total marketing costs for Calamansi, by point of destination, Mindoro Oriental, 2001 Within Quezon = P1.23

Quezon

Quezon to Rizal = P1.13

Figure 11. Total marketing costs for Calamansi, by point of destination, Quezon, 2001 Guimaras to Metro Manila = P0.89

Metro Manila

Within Guimaras = P0.66

Guimaras/Iloilo

Negros Occidental

Guimaras to Negros Occidental = P0.80

Figure 12. Total marketing costs for Calamansi, by point of destination, Guimaras, 2001

Mindoro Oriental

From the supply barangays to the market, the average expense was P2.36 per kilogram of calamansi.

In trading calamansi to Manila, the average cost kilogram of calamansi was P1.32 for transportation; P0.19 for labor; P0.03 for materials; P0.02 for depreciation; and P0.06 for other expenses.

Traders in Batangas incurred an average cost of P1.91 per kilogram of calamansi.

Guimaras

Calamansi traders spent an average of P0.66 when the fruit is sold within the province, and P0.80 per kilogram when shipped to Negros Occidental.

Respondents who delivered calamansi to Metro Manila incurred an average cost of P0.89 per kilogram. The transportation cost of P0.32 per kilogram from Iloilo to Manila included the transport costs from the supply barangays to the pier or “pantalan” (P0.12) and freight (P0.20). Transportation costs from the piers in Manila to their next point of destination were borne by the buyers of the fruits.

Marketing Margins

The initial step in measuring the marketing margins is to describe the structure of the marketing chain, starting at the farm gate and tracing the product through the various intermediaries until it reaches the final consumer. Second is to identify and list the various functions that are performed at each stage in the marketing process.

The estimation of marketing margin needs price data at which the product is bought and sold at each stage in the marketing process. Costs incurred in marketing plus the buying price give the estimated selling price.

On the part of traders, buying price can be considered an expense. They have to pay for the commodity as the initial investment at prices agreed by both parties, the farmer and the trader. The gross margin, which still includes the cost of trading and the risk/losses, is the difference between the retail price and the effective buying price at the farm level.

Marketing Cost Structure for Calamansi 2 6

The net margin, or the net return, therefore, is the remainder when the total marketing costs were subtracted from the total gross margin. Below is the illustration of the concept:

NM TGM

FP + TC

where: RP = retail price FP = farm price or the effective buying price at farm level FP+TC = farm price plus the total costs TGM = total gross margin (RP - FP) NM = net margin or return [RP – (FP + TC)]

The estimated marketing margins for calamansi at each level of marketing participants and the estimated selling price for each supply province were illustrated from Figures 13 to 15.

Mindoro Oriental

Traders incurred a total cost of P4.72 per kilogram of calamansi from procurement to distribution. The ex-wholesaler price, buying price plus total cost, was P15.30. At retail price of P14.65 per kilogram, the farmers’ share to consumers’ peso was 72% and the traders had 28%.

Quezon

At buying price of P12.73 and total marketing cost of P3.34, the estimated selling price was P16.07 per kilogram. At the retail price of P41.53 per kilogram, the trader’s share was P19.97.

Marketing Cost Structure for Calamansi 2 7 AVERAGE PRICES AND MARKETING MARGINS FOR CALAMANSI, 2001

MINDORO ORIENTAL QUEZON GUIMARAS Margins Margins Margins ITEM Prices Peso per Prices Peso per Prices Peso per Percent Percent Percent kg. kg. kg.

Farm 10.58 12.73 7.98 Retail 14.65 41.53 17.08

Farmer 72.22 2.94 30.65 8.83 46.72 4.25 Retailer 27.78 1.13 69.35 19.97 53.28 4.85

Total 100 4.07 100 28.80 100 9.10 Less: Total Costs 4.72 3.34 2.11 Net Margin/Return (0.65) 25.46 6.99 Amount Market Price* CONSUMER Practice/Activity/Cost Item (P/kg) Level Price Range Ave.

Estimated Selling Price w/o margin Retail 3.25 - 22.75 14.65 (buying price & total costs) 15.30 PROCESSOR RETAILER Total Costs 4.72

BODEGA TRADERS Materials 0.34 OUTSIDE Labor 1.18 PROVINCE Transporting 0.66 MA-MD Depreciation 0.082 Others 0.91

PA-LD BA-SD Shipping 0.56

Materials 0.053 Labor 0.10 Transporting 0.35 FARMER Pre-marketing Transportation 0.49

Buying Price 10.58 Farm 2.76 - 20.82 10.58

* Source: BAS' FPS, Wholesale & Retail Price Monitoring

Figure 13. Marketing Costs for Calamansi, by level of Marketing Participants, Mindoro Oriental, 2001 Amount Market Price* CONSUMER Practice/Activity/Cost Item (P/kg) Level Price Range Ave.

BUYERS OUTSIDE Estimated Selling Price w/o margin Retail 12.54 - 58.50 41.53 PROVINCE (buying price & total costs) 16.07

RETAILER Total Costs 3.34

Materials 0.698 Labor 1.31 Transporting 0.26 Depreciation 0.22 Others 0.55

BA-SD PA-LD

Shipping 0.01 Transportation 0.16 Materials 0.13

FARMER

Buying Price 12.73 Farm 9.33 - 25.00 12.73

* Source: BAS' FPS, Wholesale & Retail Price Monitoring

Figure 14. Marketing Costs for Calamansi, by level of Marketing Participants, Quezon, 2001 Amount Market Price* CONSUMER Practice/Activity/Costs Item (P/kg) Level Price Range Ave.

INSTITUTIONAL BUYERS Estimated Selling Price w/o margin Retail 9.65 - 20.60 17.08 (buying price & total costs) 10.09

RETAILER Total Costs 2.11 RETAILER FROM OTHER

Materials 0.30 Labor 0.20 BA-SD Transporting 0.31 Depreciation 0.14 Others 0.23

MA-LD PA-LD Shipping Labor 0.14

TRADER TRADER Materials 0.33 OUTSIDE FROM Labor 0.32 THE AKLAN PROVINCE Transporting 0.14 FARMER

Buying Price 7.98 Farm 4.50 - 16.83 7.98

* Source: BAS' FPS, Wholesale & Retail Price Monitoring

Figure 15. Marketing Costs for Calamansi, by level of Marketing Participants, Guimaras, 2001

Guimaras

Traders bought calamansi at P7.98 and spent about P2.11 per kilogram during procurement and distribution. At an average retail price of P17.08, the traders net margin was P6.99 per kilogram.

IV. Problems/Constraints Encountered

Table 22 presents the problems encountered by the farmers and trader- respondents in relation to calamansi marketing. Some of these problems were:

Abundant supply and low quality of calamansi being produced by the farmers resulted to lower price. One farmer stated that he lack information and knowledge on the proper production and post harvest technology.

Ten respondents from different province reported that their creditors did not pay their loan or sometimes the payment for the commodities were delayed.

A large percentage of wastage in bringing calamansi from the farm to the demand areas because of the poor condition of the farm to market roads.

Two traders lack capital to finance the buying and selling of calamansi.

Other problems include the frequent price fluctuation, absence of permanent stalls, the availability of shipping lines, too many competitors, the presence of imported lemon in the market and the “tong” given to different authority.

Marketing Cost Structure for Calamansi 3 2 Statistical Tables Table 1. CALAMANSI: Distribution of respondents, by type, by province/municipality, 2001

Province/Municipality Farmer Trader Total

Metro Manila 20 20 Pasay City 3 3 Quezon City 6 6 Manila 8 8 Mandaluyong 2 2 Caloocan City 1 1

Batangas 11 11 Tanauan City 5 5 Batangas City 6 6

Quezon 40 12 52 Alabat 16 4 20 Caridad 8 3 11 Magsino 8 8 Tagcauayan 8 8 Lopez 1 1 Gumaca 3 3 Atimonan 1 1

Mindoro Oriental 40 9 49 Pola 8 8 Baco 8 8 Naujan 10 10 Victory 14 2 17 Calapan 7 7

Guimaras 40 8 48 Buenavista 32 4 36 Jordan 2 2 San Lorenzo 8 2 10

Iloilo 11 11 Guimbal 1 1 La Paz 1 1 Iloilo City 9 9

TOTAL 120 71 191 Table 2. CALAMANSI: Distribution of respondents, by type of marketing participants, by province, 2001

PA-LD/MA- PA-MD/MA- MA-SD/BA- Province Farmer Retailer Total Percent LD/RA-LD MD/BA-MD SD/PA-SD

Metro Manila 7 13 20 10

Mindoro Oriental 40 6 3 49 26

Batangas 7 4 11 6

Quezon 40 5 3 4 52 27

Guimaras 40 4 1 3 48 25

Iloilo 3 1 2 5 11 6 TOTAL 120 27 6 6 32 191 100 Table 3. CALAMANSI: Number and percentage distribution of farmer respondents, by size of farm, by province, 2001

Farm Size (in Mindoro Quezon Guimaras Total Percent hectare) Oriental

less than 1.0 14 32 31 77 64

1.00 - 1.99 11 8 3 22 18

2.00 - 2.99 8 4 12 10

3.00 - 3.99 2 2 4 3

4.00 - 4.99 2 2 2

more than 5.0 3 3 3

TOTAL 40 40 40 120 100 Table 4. CALAMANSI: Number and percentage distribution of farmer-respondents, by tenurial status, by province, 2001

Mindoro Tenurial Status Quezon Guimaras Total Percent Oriental

Owner 32 35 39 106 88

CLT 2 1 3 3

Tenant 5 4 1 10 8

Others* 1 1 1

TOTAL 40 40 40 120 100 * Public land Table 5. CALAMANSI: Distribution of trader respondents, by type of business, by province, 2001

Metro Mindoro Type of Business Batangas Quezon Guimaras Iloilo Total Percent Manila Oriental

Single Proprietorship 20 5 11 12 7 11 66 93

Partnership 3 1 4 6

Corporation 1 1 1

TOTAL 20 9 11 12 8 11 71 100 Table 5a. CALAMANSI: Distribution of trader respondents, by type of marketing participants, by type of business, by province, 2001

PA-LD/MA-LD/ PA-MD/MA- PA-SD/MA- Province Retailer Total RA-LD MD/BA-MD SD/BA/SD

Metro Manila Single Proprietorship 7 13 20

Mindoro Oriental Single Proprietorship 2 3 5 Corporation 1 1 Partnership 3 3

Batangas Single Proprietorship 7 4 11

Quezon Single Proprietorship 5 3 4 12

Guimaras Single Proprietorship 3 1 3 7 Partnership 1 1

Iloilo City Single Proprietorship 3 1 2 5 11

TOTAL 27 6 6 32 71 Table 6. CALAMANSI: Distribution of trader respondents, by nature of capitalization, by province, 2001

Metro Mindoro Nature of Capitalization Batangas Quezon Guimaras Iloilo Total Percent Manila Oriental

Self-financed 20 7 11 11 5 11 65 91

Under financing 1 1 2 4 6

Under contract agreement 1 1 2 3

TOTAL 20 9 11 12 8 11 71 100 Table 6a. CALAMANSI: Distribution of trader respondents, by nature of capitalization, by province, 2001

PA-LD/MA-LD/ PA-MD/MA- PA-SD/MA- Province Retailer Total RA-LD MD/BA-MD SD/BA-SD

Metro Manila Self-financed 7 13 20

Mindoro Oriental Self-financed 5 2 7 Under financing 1 1 Under contract agreement 1 1

Batangas Self-financed 7 4 11

Quezon Self-financed 5 3 3 11 Under financing 1 1

Guimaras Self-financed 3 2 5 Under financing 1 1 2 Under contract agreement 1 1

Iloilo Self-financed 3 1 2 5 11

TOTAL 27 6 6 32 71 Table 7. CALAMANSI: Distribution of trader respondents, by length of experience, by province, 2001

Metro Mindoro Years in business Batangas Quezon Guimaras Iloilo Total Percent Manila Oriental

less than 5 4 1 3 2 1 2 13 18

5 - 10 4 6 2 3 4 5 24 34

11 - 15 6 1 2 3 1 13 18

16 - 20 1 3 3 7 10

more than 20 5 1 1 1 3 3 14 20

TOTAL 20 9 11 12 8 11 71 100 Table 8. CALAMANSI: Major sources and destinations, by location, by province, 2001

Source Destination Province/City/Area Within the province Outside the province Within the province Outside the province

Metro Manila Pasay City Mindoro Oriental Pasay City Cavite Manila Cabanatuan City of Manila Bulacan Quezon City Davao City Quezon City Rizal Baguio City Pasig City Laguna Nueva Ecija Zamboanga City

Mindoro Oriental Naujan Calapan Metro Manila Pola Bilboa Batangas Gutad Puerto Galera Calapan Victoria Victoria Baco Bagong Silang Lumang Bayan

Batangas Tanauan City Mindoro Oriental Nasugbu Manila Pola Roxas Balayan Pangasinan Calapan Batangas City Laguna Cavite Quezon Lopez Atimonan Daet Gumaca Lucena Rizal Alabat Gumaca Metro Manila Atimonan Lopez Caglate Calauag Tagcauayan Catanauan Caridad Magsino

Guimaras Buenavista Buenavista Negros Oriental Sibunag Jordan Palawan San Lorenzo Bacolod Jordan Iloilo Gaban Cebu Camansi Metro Manila

Iloilo Guimbal Guimaras Guimbal Antique La Paz Aklan La Paz Capiz Iloilo City Jaro Roxas Miagao Langkas Mandaue Negros Occidental Tabon Masbate Metro Manila Table 9. CALAMANSI: Cropping Pattern, by activity in selected provinces, 2001

Province Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec.

Mindoro Oriental Planting 1 1 1 1 1 3 3 3 1 Harvesting 22 20 28 27 24 18 26 28 26 22 17 21 Trading 23 21 30 29 24 18 26 31 29 25 17 21

Quezon Harvesting 18 17 24 24 26 23 24 27 27 25 20 17 Trading 16 12 16 21 22 19 20 23 17 16 12 14

Guimaras Harvesting 35 35 38 39 40 32 33 36 40 34 33 39 Trading 35 35 38 39 40 32 33 36 40 34 33 39 Table 10. CALAMANSI: Distribution of respondents, by manner of procurement, by province, 2001

Metro Mindoro Mode of Delivery Batangas Quezon Guimaras Iloilo Total Percent Manila Oriental

Picked up 12 3 4 3 10 32 45

Delivered 8 9 8 8 5 38 54

Both 1 1 1

TOTAL 20 9 11 12 8 11 71 100 Table 10a. CALAMANSI: Distribution of respondents, by type of marketing participants, by manner of procurement, by province, 2001

PA-LD/MA-LD/ PA-MD/P MA- MA-SD/BA- Mode of Delivery Retailer TOTAL RA-LD MD/ BA-MD SD/PA-SD

METRO MANILA Picked-up 2 10 12 Delivered 5 3 8

MINDORO ORIENTAL Delivered 6 3 9

BATANGAS Picked-up 3 3 Delivered 7 1 8

QUEZON Picked-up 3 1 4 Delivered 2 2 4 8

GUIMARAS Picked-up 3 3 Delivered 1 1 3 5

ILOILO Picked-up 2 1 2 5 10 Delivered 1 1

TOTAL 27 6 6 32 71 Table 11. CALAMANSI: Distribution of respondents, by mode of payment in procurement, by province, 2001

Metro Mindoro Mode of Payment Batangas Quezon Guimaras Iloilo Total Percent Manila Oriental

Cash 17 5 5 4 5 6 42 59

Consignment 3 4 6 8 2 4 27 38

Delayed Payment 1 1 2 3

TOTAL 20 9 11 12 8 11 71 100 Table 11a. CALAMANSI: Distribution of trader respondents, by type of marketing participants, by mode of payment in buying stocks, by province, 2001

PA-LD/MA-LD/ PA-MD/ MA- MA-SD/ BA-SD/ Mode of Payment Retailer TOTAL RA-LD MD/ BA-MD PA-SD

METRO MANILA Cash 4 13 17 Consignment 3 3

MINDORO ORIENTAL Cash 2 3 5 Consignment 4 4

BATANGAS Cash 2 3 5 Consignment 5 1 6

QUEZON Cash 1 2 1 4 Consignment 4 1 3 8

GUIMARAS Cash 2 1 2 5 Consignment 1 1 2 Delayed Payment 1 1

ILOILO Cash 3 2 1 6 Consignment 4 4 Delayed Payment 1 1

TOTAL 27 6 6 32 71 Table 12. CALAMANSI: Distribution of respondents, by manner of distribution, by province, 2001

Metro Mindoro Mode of Delivery Batangas Quezon Guimaras Iloilo Total Percent Manila Oriental

Picked up 19 13 10 37 37 10 126 66

Delivered 1 36 15 11 1 64 34

Both 1 1 a/

TOTAL 20 49 11 52 48 11 191 100 a/ less than 1 percent Table 12a. CALAMANSI: Manner of distribution, by type of marketing participants, by province, 2000

PA-LD/MA-LD/ PA-MD// MA- MA-SD/ BA- Mode of Delivery Farmers Retailer TOTAL RA-LD MD// BA-MD SD/PA-SD METRO MANILA Picked- up 7 12 19 Delivered 1 1

MINDORO ORIENTAL Picked- up 7 3 3 13 Delivered 33 3 36

BATANGAS Picked- up 7 3 10 Both 1 1

QUEZON Picked- up 33 2 2 37 Delivered 7 3 3 2 15

GUIMARAS Picked- up 35 2 37 Delivered 5 4 1 1 11

ILOILO Picked- up 3 1 1 5 10 Delivered 1 1

TOTAL 120 27 6 6 32 191 Table 13. CALAMANSI: Distribution of respondents, by manner of mode of payment in distribution, by province, 2001

Metro Mindoro Mode of Payment Batangas Quezon Guimaras Iloilo Total Percent Manila Oriental

Cash 17 16 5 28 27 10 103 54

Consignment 3 33 6 24 21 1 88 46

TOTAL 20 49 11 52 48 11 191 100 Table 13a. CALAMANSI: Distribution of respondents, by type of marketing participants, by mode of payment for distribution, by province, 2001

PA-LD/MA-LD/ PA-MD/ MA- MA-SD/ BA- Mode of Payment FARMERS RETAILER TOTAL RA-LD MD/ BA-MD SD/PA-SD

METRO MANILA Cash 4 13 17 Consignment 3 3

MINDORO ORIENTAL Cash 12 1 3 16 Consignment 28 5 33

BATANGAS Cash 1 4 5 Consignment 6 6

QUEZON Cash 19 4 1 4 28 Consignment 21 1 2 24

GUIMARAS Cash 19 4 1 3 27 Consignment 21 21

ILOILO Cash 3 1 1 5 10 Consignment 1 1

TOTAL 120 27 6 6 32 191 Table 14. CALAMANSI: Labor costs by marketing activity/practice, by provinces, 2001

Marketing Metro Mindoro Batangas Quezon Iloilo Guimaras Activity/Practice Manila Oriental peso per kilogram

Procurement 0.23 0.96 0.10 0.54 Hauling 0.96 0.10 0.16 Handling 0.03 0.13 Loading 0.10 Unloading 0.10 Sorting 0.03

Shipping 0.06 0.11 Handling fee 0.06 0.11 Arrastre

Distribution 0.85 1.11 0.06 1.31 0.53 Hauling 0.35 Handling 0.34 Loading 0.10 0.05 0.03 0.09 Unloading 0.10 0.05 0.03 0.09 Sorting 0.50 0.45 0.31 0.08 Selling 0.15 0.15 Packing a/ 0.19 0.09 0.10 Weighing 0.17 0.14 0.08 Cleaning 0.05 0.08 0.09

Salaries and wages 0.23 0.07 0.13 0.25 0.20

Total 1.31 2.14 0.19 1.31 0.88 0.74 a/ includes weighing and re-packing in plastic sacks, bags, etc. Table 14a. CALAMANSI: Labor costs incurred by marketing participants, by activity/practice, Metro Manila, 2001

Marketing RA/LD MA/LD Retailer Activity/Practice peso per kilogram

Procurement 0.08 0.05 0.20 Handling a/ 0.08 0.05 Loading 0.10 Unloading 0.10

Distribution 0.70 0.44 Handling Loading 0.10 0.15 Unloading 0.10 0.15 Sorting 0.50 Selling 0.14

Salaries and Wages 0.20 0.20 0.61

TOTAL 0.98 0.25 1.25 Table 14b. CALAMANSI: Labor costs incurred by marketing participants, by activity/practice, Mindoro Oriental, 2001

Marketing FARMER PA-LD MA-LD RETAILER Activity/Practice peso per kilogram Procurement 0.14 0.05 Hauling 0.14 0.05

Distribution 1.12 0.31 0.29 0.87 Handling Loading 0.02 0.001 0.07 0.03 Unloading 0.02 0.001 0.07 0.03 Sorting 0.61 0.05 0.27 Packing 0.42 0.16 0.05 0.27 Weighing 0.05 0.27 Cleaning 0.05 Selling 0.15

Salaries and Wages 0.07

TOTAL 1.33 0.31 0.34 0.87 Table 14c. CALAMANSI: Labor costs incurred by marketing participants, by activity/practice, Batangas, 2001

Marketing PA-LD PA-MD RETAILER Activity/Practice peso per kilogram

Distribution 0.04 0.05 0.09 Handling Loading 0.04 0.02 0.05 Unloading 0.03 0.04

Salaries and Wages 0.13

TOTAL 0.04 0.18 0.09

Table 14d. CALAMANSI: Labor costs incurred by marketing participants, by activity/practice, Quezon, 2001

Marketing FARMER IRA-PA PA-LD PA-MD RETAILER Activity/Practice peso per kilogram

Distribution Hauling 0.51 0.22 0.33 Handling 0.48 0.33 Sorting 0.64 0.56 0.16 Packing a/ 0.08 0.16 0.12 Cleaning 0.08 Weighing 0.08 0.16 0.12

TOTAL 1.15 0.80 0.48 0.70 0.9 a/ includes weighing and re-packing in plastic sacks, bags, etc. Table 14e. CALAMANSI: Labor costs incurred by marketing participants, by activity/practices, Iloilo, 2001

Marketing RA-LD RA-MD PA-SD RETAILER Activity/Practice peso per kilogram

Procurement 0.12 0.10 0.01 0.20 Hauling 0.12 0.10 0.01 0.20

Shipping 0.10 0.04 Handling fee 0.10 0.04

Distribution 0.47 0.35 0.84 0.08 Handling Loading 0.06 0.04 0.28 0.02 Unloading 0.06 0.04 0.28 0.02 Cleaning 0.12 0.07 Sorting 0.12 0.09 0.07 0.02 Packing 0.11 0.09 0.07 Weighing 0.12 0.09 0.07 0.02

Salaries and Wages 0.25

TOTAL 0.69 0.45 0.95 0.53 Table 14f. CALAMANSI: Labor costs incurred by marketing participants, by activity/practice, Guimaras, 2001

Marketing FARMERS IRA-LD PA-LD MA-LD MA-SD RETAILER Activity/Practice peso per kilogram

Procurement 0.10 0.30 0.21 0.20 1.48 Hauling 0.10 0.15 0.10 0.76 Handling 0.15 0.10 0.72 Sorting 0.01 0.20

Shipping 0.14 Handling 0.11 Arrastre 0.03

Salaries and Wages 0.14 0.93

TOTAL 0.10 0.14 0.44 0.21 0.20 2.41 Table 15. CALAMANSI: Transportation costs by marketing activity/practice, by province, 2001

METRO MINDORO Practice/activity QUEZON ILOILO GUIMARAS MANILA ORIENTAL peso per kilogram

Pre-marketing 0.49

Procurement 0.30 0.35 0.36 0.14

Procurement 0.35

Shipping 0.56 0.14

Distribution 0.39 0.66 0.26 0.80 0.31

TOTAL 0.69 2.41 0.26 1.30 0.45 Table 15a. CALAMANSI: Transportation costs incurred by marketing participants, by activity/practice, Metro Manila, 2001

Marketing Activity/Practices RA/LD Retailer peso per kilogram

Procurement 0.12 0.52

Distribution 0.39

TOTAL 0.12 0.91

Table 15b. CALAMANSI: Transportation costs incurred by marketing participants, by activity/practice, Mindoro Oriental, 2001

Marketing Activity/Practice FARMER MA-LD peso per kilogram

Procurement 0.35

Shipping 0.56

Distribution 1.190 0.38

TOTAL 1.75 0.73 Table 15c: CALAMANSI : Transportation costs incurred by marketing participants, by activity/practice, Quezon, 2001

Marketing Activity/Practice FARMER IRA-LD PA-LD PA-MD MA-MD BA-SD RETAILER

Distribution 0.31 0.33 0.16 0.21 0.16 0.52 0.16

Total 0.31 0.33 0.16 0.21 0.16 0.52 0.16 Table 15d. CALAMANSI: Transportation costs incurred by marketing participants, by activity/practice, Iloilo, 2001

Marketing RA-LD RA-MD PA-SD Activity/Practice peso per kilogram

Procurement 0.56 0.34 0.25

Shipping (freight) 0.14

Distribution 0.80

TOTAL 0.56 0.34 1.19

Table 15e. CALAMANSI: Transportation costs incurred by marketing participants, by activity/practice, Guimaras, 2001

Marketing IRA-LD PA-LD MA-LD MA-SD Activity/Practice peso per kilogram Procurement 0.03 0.16 0.12 0.09 PUJ 0.03 0.16 0.12 Tricycle 0.09

Distribution 0.202 0.26 0.20 Pumpboat 0.2 0.14 0.20 Motorcycle FX Tricycle 0.002 PUJ 0.12 Jeep

Total 0.232 0.42 0.32 0.09 Table 16. CALAMANSI: Cost of material inputs by marketing activity/practice/cost item, by province, 2001

Marketing Activity/ Metro Mindoro Batangas Quezon Iloilo Guimaras Cost Item Manila Oriental peso per kilogram

Procurement 0.023 0.053 0.100 0.698 0.001 0.339 "Kaing" 0.020 0.030 0.130 0.030 Cover 0.003 Twine 0.002 0.010 0.008 0.002 Newspaper a/ 0.002 "Bilao" 0.001 Sacks b/ 0.020 0.040 0.110 0.001 0.070 Staple wire a/ Net sack 0.450 Red sack 0.080 Plastic sack cover 0.005 Plastic bag 0.050 0.130 Ball pen 0.010 Chair 0.010

Distribution 0.551 0.340 0.170 0.126 0.080 0.295 Sacks 0.250 0.100 0.020 0.040 Plastic bag 0.280 0.230 0.030 0.010 0.040 Plastic sack 0.020 Old newspaper 0.001 a/ Banana leaves 0.040 Twine 0.010 0.010 0.004 "Kaing" 0.010 0.020 Plastic bag 0.240 Plastic box 0.002 Red bag 0.030 Sando bag 0.140 Basket 0.004 Wodden box 0.002 Tie wire 0.006 "Bilao" 0.010 0.010 Needle 0.003

TOTAL 0.574 0.393 0.270 0.824 0.081 0.634 a/ less than 0.001 b/ includes old sacks and plastic sacks Table 16a. CALAMANSI: Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Metro Manila, 2001

Marketing Activity/ RA/LD MA/LD Retailer Cost Item peso per kilogram

Procurement 0.023 "Kaing" 0.020 Cover 0.003

Distribution 0.180 0.271 0.420 Sacks 0.120 0.270 Plastic bag 0.050 0.410 Old newspaper 0.001 "Kaing" 0.010 "Bilao" 0.010

TOTAL 0.180 0.294 0.420 Table 16b. CALAMANSI: Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Mindoro Oriental, 2001

Marketing Activity/ FARMER PA-LD MA-LD RETAILER Cost Item peso per kilogram

Procurement 0.003 0.022 0.001 "Kaing" 0.003 0.210 Twine 0.002 Newspaper a/ "Bilao" 0.001 Sacks 0.020 Staple wire a/

Distribution 0.120 0.031 0.296 Banana leaves 0.040 Twine 0.060 0.001 0.060 Newpaper a/ Plastic bag 0.230 Plastic sack 0.020 Red bag 0.030 "Bilao" 0.006

TOTAL 0.120 0.030 0.230 0.290 a/ less than 0.001 Table 16e. CALAMANSI: Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Iloilo, 2001

Marketing Activity/ RA-LD RA-MD PA-SD Retailer Cost Item peso per kilogram

Procurement 0.010 0.001 0.010 Sacks 0.010 0.001 0.010

Distribution 0.040 0.120 0.050 0.040 Sack 0.020 Plastic bag 0.020 0.120 0.050 0.040 "Kaing" 0.020

TOTAL 0.050 0.121 0.060 0.040 Table 16f. CALAMANSI: Cost of material inputs incurred by marketing participants by activity/practice/cost item, Guimaras, 2001

Marketing Activity/ FARMER IRA-LD PA-LD MA-LD RETAILER Cost Item peso per kilogram

Procurement 0.100 0.169 0.244 0.030 0.130 Old newspaper 0.002 0.010 Twine 0.002 Plastic bag 0.130 Red sack 0.070 0.080 "Kaing" 0.030 0.040 0.030 Sack (ordinary) 0.100 0.060 0.100 Plastic sack cover 0.005 0.004 Ball pen 0.010 Chair

Distribution 0.006 0.242 Sack Banana leave Twine Tie wire Needle 0.003 Partial pen Ink 0.003 Pad Notebook Plastic bag 0.240 Plastic box 0.002

Total 0.100 0.169 0.250 0.030 0.372 Table 17. CALAMANSI: Other operating costs by cost item, by province, 2001

Metro Mindoro Cost Item Batangas Quezon Iloilo Guimaras Manila Oriental peso per kilogram

Business Permit/license b/ 0.010 0.020 0.005 0.030 0.010 0.070 Market fee c/ 0.090 0.030 0.010 0.040 0.010 Market fee 0.270 Electricity/Light 0.020 0.004 0.010 0.020 0.002 Telephone 0.020 0.020 0.020 0.050 0.020 Water 0.010 Shrinkage/wastage 0.110 0.350 0.120 Gas and Oil 0.020 0.001 0.030 Weighing scale calibration a/ 0.004 0.010 0.002 Repair and maintenance 0.010 0.130 Sanitary permit 0.020 Toll fee 0.140 0.190 0.130 Interest on loan 0.080 0.010 Other market fees d/ 0.010 0.030 Rental fee 0.070 Market fee 0.160 Registration fee a/ Tiangge fee 0.140 Transport permit 0.060 Contract 0.006 Permit clearance fee 0.010 Stevedoring 0.010 Freight 0.160 Cell card 0.010 Meals & beverages 0.120 0.050 0.010 0.100 0.210 0.010

TOTAL 0.580 0.905 0.279 0.720 0.600 0.230 a/ less than 0.001 b/ includes mayor's permit and barangay permit c/ includes stall fee and ticket d/ Includes stall fee and ticket Table 17a. CALAMANSI: Other operating costs incurred by marketing participants, by cost item, Metro Manila, 2001

Cost Item RA/LD MA/LD Retailer peso per kilogram

Business permit/license b/ 0.020 0.001 0.110 Market fee c/ 0.070 0.090 0.130 Electricity/light 0.010 0.210 Telephone 0.010 0.250 Water 0.010 Shrinkage/wastage 0.480 0.080 0.030 Gas & oil 0.080 0.880 Weighing scale calibration a/ 0.001 Repair and maintenance 0.010 0.090 Sanitary permit 0.080 0.040 Toll fee 0.140 Other market fees d/ 0.010 Meals & bevarages 0.020 0.130 0.200

TOTAL 0.670 0.421 2.091 a/ less than 0.001 b/ includes mayor's permit and barangay permit c/ includes stall fee and ticket d/ includes "tong" Table 17b. CALAMANSI: Other operating costs incurred by marketing participants, by cost item, Mindoro Oriental, 2001

Cost Item FARMER PA-LD MA-LD RETAILER peso per kilogram

Business permit/license a/ 0.006 0.050 Market fee b/ 0.030 0.020 0.002 0.470 Electricity/light 0.004 0.004 Telephone 0.010 0.020 Shrinkage/wastage 0.330 0.350 0.520 Gas & oil 0.001 Repair and maintenance 0.130 Interest on loan 0.180 0.070 0.070 Meals & beverages 0.060 0.040 0.410 Toll fee 0.190 Other market fee c/ 0.030

Total 0.670 0.300 0.450 1.550 a/ includes mayor's permit and barangay permit b/ includes stall fee and ticket c/ includes "tong" Table 17c. CALAMANSI: Other operating costs incurred by marketing participants by cost item, Batangas, 2001

Cost Item IRA-LD PA-LD PA-MD RETAILER peso per kilogram

Municipal permit 0.001 0.003 0.010 0.030 Telephone 0.010 0.060 0.010 0.080 Electricity 0.007 0.010 0.020 Rental fee 0.020 0.008 0.200 0.160 Market fee 0.710 0.090 0.330 Registration a/ a/ Calibration of weighing scale 0.004 Meal & beverages 0.010 0.010

Total 0.038 0.801 0.340 0.604 a/ Less than 0.001 Table 17d. CALAMANSI: Other operating costs incurred by marketing participants, by cost item, Quezon, 2001

Cost Item FARMER PA-LD PA-MD MA-MD BA-MD BA-SD RETAILER peso per kilogram

Business permit 0.030 0.020 0.060 0.004 0.070 Tiannge fee 0.140 Market fee 0.250 0.160 0.060 0.060 0.010 0.480 Meals and beverages 0.100

Total 0.100 0.280 0.180 0.120 0.060 0.014 0.690 Table 17e. CALAMANSI: Other operating costs incurred by marketing participants, by cost item, Iloilo, 2001

Cost Item RA-LD RA-MD PA-SD RETAILER peso per kilogram

Business permit b/ 0.010 Market fee c/ 0.020 0.070 0.080 Electricity 0.004 0.030 0.040 Telephone 0.050 Wastage 0.070 0.180 0.250 Weighing scale calibration a/ 0.001 0.040 Toll fee 0.130 Interest on loan 0.003 0.010 Meals & beverages d/ 0.180 0.020 0.500 0.300

TOTAL 0.277 0.120 0.681 0.910 a/ Less than 0.001 b/ includes mayor's permit and barangay's permit c/ includes stall fee and ticket d/ inclides cigarettes and drinks Table 17f. CALAMANSI: Other operating costs incurred by marketing participants, by cost item, Guimaras, 2001

Cost Item IRA-LD PA-LD MA-LD MA-SD RETAILER peso per kilogram

Municipal permit 0.003 0.190 Barangay permit 0.010 Transport permit 0.060 Telephone 0.020 Electricity 0.001 0.007 0.040 Weighing scale calibration 0.002 Contract 0.006 Cell card 0.010 Gasoline 0.003 0.200 Permit clearance fee 0.010 Meals and beverages 0.002 0.150 0.003 0.100

Total 0.086 0.170 0.210 0.009 0.342 Table 18. CALAMANSI: Imputed cost of depreciation by materials/ facilities/ equipment used, by province, 2001

Metro Mindoro Cost Item Batangas Quezon Iloilo Guimaras Manila Oriental peso per kilogram

Materials Used 0.015 0.023 0.153 0.050 0.079 0.056 Chair b/ 0.002 a/ 0.001 0.002 0.004 0.010 Tray 0.004 0.070 Pail 0.004 Tent/Umbrella 0.004 0.014 0.080 0.014 Table c/ 0.001 0.009 0.002 0.001 0.046 Sorting can a/ "Bilao" 0.070 0.030 0.004 Basin 0.004

Equipment 0.033 0.009 0.164 0.030 0.008 0.030 Weighing scale 0.003 0.001 0.010 0.030 0.004 0.010 Electric fan 0.010 a/ 0.080 Calculator 0.020 0.004 0.004 0.010 Radio a/ Cellphone 0.004 0.070 0.004 0.010

Facilities 0.040 0.020 0.140 0.050 Cart/Stall 0.020 Storage d/ 0.020 0.020 0.140 0.050

Transportation 0.020 0.010 PUJ 0.010 Van 0.010 Jeep 0.010

TOTAL 0.068 0.082 0.337 0.220 0.087 0.136 a/ less than 0.001 b/ includes plastic and wooden chair c/ sorting table or "Pakihan" d/ storage place or "kamalig" Table 18a. CALAMANSI: Imputed costs of depreciation incurred by marketing participants, by materials/facilities/ equipment used, Metro Manila, 2001

Item RA-LD MA-LD Retailer peso per kilogram

Materials Used 0.007 0.002 0.062 Pail 0.004 Chairs 0.002 0.002 0.004 Tent/umbrella 0.004 0.020 Tray 0.004 Table ("Pakihan) 0.001 0.030

Equipment 0.010 0.001 0.040 Weighing scale 0.010 0.001 0.010 Electric fan 0.010 Calculator 0.020 Radio a/

Transportation 0.020 0.040 PUJ 0.010 0.040 Van 0.010

Total 0.017 0.023 0.142 a/ less than 0.001 Table 18b. CALAMANSI: Imputed costs of depreciation incurred by marketing participants, by materials/facilities/equipment used, Mindoro Oriental, 2001

Item FARMER PA-LD MA-LD RETAILER peso per kilogram

Materials Used 0.019 a/ a/ 0.004 Chairs a/ a/ Table b/ 0.009 a/ a/ Sorting can a/ Tent/umbrella 0.010 0.004

Equipment 0.004 0.004 0.001 0.004 Weighing scale 0.004 a/ 0.001 0.004 Calculator a/ a/ Electric fan a/ Cellphone 0.004

Facilities 0.001 0.020 0.020 Cart/Stall 0.02 Storage 0.001 0.02

Transportation 0.010 Jeep 0.010

Total 0.023 0.015 0.021 0.028

* less than 0.001 Table 18c. CALAMANSI: Imputed costs of depreciation incurred by marketing participants, by materials/facilities/equipment used, Batangas, 2001

Facilities/Equipment IRA-LD PA-LD PA-MD RETAILER peso per kilogram

Materials Used 0.001 0.052 0.004 0.150 Umbrella 0.080 Chairs 0.001 0.050 0.004 Bilao 0.070 Table 0.002

Equipment 0.010 0.089 0.140 Weighing scale 0.010 0.015 0.050 Cell phone 0.070 Electric fan 0.080 Calculator 0.004 0.010

Facilities 0.008 0.030 Storage 0.008 0.030

Total 0.001 0.070 0.123 0.290 Table 18d. CALAMANSI: Imputed costs of depreciation incurred by marketing participants, by facilities/equipment used, Quezon, 2001

Item FARMER IRA-PA PA-LD PA-MD MA-MD RETAILER peso per kilogram

Materials used Chair 0.002 Tent 0.014 "Bilao" 0.030 Basin 0.004

Equipment Weighing scale 0.240 0.006 0.060 0.005 0.010

Facilities Drying place 0.140

Total 0.380 0.006 0.016 0.060 0.005 0.044 Table 18e. CALAMANSI: Imputed costs of depreciation incurred by marketing participants, by materials/facilities/equipment used, Iloilo, 2001

Item RA-LD RA-MD PA-SD RETAILER peso per kilogram

Materials Used 0.004 0.014 0.087 Tray 0.070 Table 0.001 Chair 0.003 0.004 0.004 Wooden box 0.010 "Bilao" 0.010 0.003

Equipment 0.005 0.004 0.002 0.020 Weighing scale 0.001 0.004 0.002 0.020 Cellphone 0.004

TOTAL 0.009 0.018 0.002 0.107 Table 18f. CALAMANSI: Imputed costs of depreciation incurred by marketing participants, by materials/facilities/equipment used, Guimaras, 2001

Facilities/Equipment FARMER IRA-LD PA-LD RETAILER peso per kilogram

Materials used 0.012 0.050 Sorter/pakihan 0.006 Chair 0.010 Table 0.006 0.040

Equipment 0.010 0.050 0.070 0.020 Weighing scale 0.010 0.050 0.010 0.010 Calculator 0.010 Cellphone 0.010 Kamalig 0.050

Total 0.010 0.050 0.082 0.070 Table 19. CALAMANSI: Total Marketing Costs (Cash & Non-cash), by cost item, by province, 2001