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Marketing of Fisheries Products by Municipal Fishermen in Panguil Bay, Philippines

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Marketing of Fisheries Products by Municipal Fishermen in Panguil Bay, Philippines tAt 5555850 4k ... 'r ~4 . tx a A 64 4I~44~ -t ~3.4 3. ~ 'a 4, An 4, ~.4 t N - - _ 4~ 4fl4 An.4 .4 ~t ~N4 r -~ -, N~444 t. r - ~4,4 .44t%~, 4 4 - -~ 4 '.4' .4 , N~4, 4" - Marketing of Fisheries Products by Municipal Fishermen in Panguil Bay, Philippines INTERNATIONAL CENTER FOR AQUACULTURE AGRICULTURAL EXPERIMENT STATION AUBURN UNIVERSITY R. Dennis Rouse, Director Auburn, Alabama Research and Development Series No. 11 Project AID csd 2780 NOVEMBER 1976 121 65 - -- S!ID09 , 98 S20 40 ....131 -2 52 6 6 4 40 5 0,8 c 5 6,108 o 5,806 4,o .86 1670 ' . :'/".'."2,:-",' 047 Map of the Panguil Bay area (scale 1:270,000). Elevations are in feet and soundings are in fathoms. (from PCGS 4604) SUMMARY AND CONCLUSIONS Marketing practices of municipal fishermen in the Philippines have received little study. However, the few studies which have been conducted have been useful in formulating nationwide development plans. Unfortunately, these na- tionally oriented programs have not always met local needs because of problems peculiar to specific local areas. In order to provide data for the preparation of a localized fishery development plan, a baseline survey of fisheries resources was made. The findings reported here present a description of marketing practices and problems of municipal (artisanal) fishermen around Panguil Bay, Mindanao, Philippines. Panguil Bay is a 219-square kilometer body of water surrounded by approxi- mately 8,000 hectares of mangrove swamps, of which about 5,000 hectares had been converted into fishponds. There were 89 coastal barrios (villages) with an estimated 4,500 municipal fishermen. The outer portion of the bay was used for fishing and the inner portion for fishing, gathering shellfish, and catching shrimp. No commercial vessels (over 3 gross tons) were registered in the area. Commer- cial fishing was prohibited because of the shallow depth of the bay. Administratively the area is divided among three provinces (Lanao del Norte, Zamboanga del Sur, and Misamis Occidental) covering 10 municipalities and two cities. Ozamiz City is the primary commercial center. Culturally the area is a mixture of Muslims and Christians. During the survey, sporadic trouble had occurred with the resultant dislocation of inhabitants and disruption of business activities. During May through August 1975, 249 municipal fishermen were interviewed regarding marketing practices. The interviewees came from barrios in all 10 municipalities and 2 cities adjacent to Panguil Bay. Peace and order conditions caused the interviewers to conduct rather hasty interviews in some areas. Data from the questionnaires were coded and transferred to punch cards for processing. The municipal fishermen were basically living at a subsistence level. However, lack of alternative employment opportunities kept the recruitment high. Most of the fishermen lived along the coast, at the mouth of rivers, or on the edge of nipa swamps. Fishing was done at night for sales the following morning. Fishermen reported low catch volume, which they attributed to dynamite fishing, poisons, use of illegal gear, and overcrowding of the fishing area. Fisher- men averaged catching only a few kilograms per day. Even with the limited catch, most of the fishermen sold the entire amount. The fish were usually marketed within a few hours. Most were sold on the beach although some were sold at sea and others were delivered to the dealers. Larger, high quality fish were sold to wholesalers who shipped the fish from the area. Smaller fish were sold to local retailers or marketed directly to consumers. While the weight of fish was used in pricing, only 25 percent of the catch was actually weighed at the time of sale. Fishermen chose buyers on the basis of cash needs. Retailers paid immediate cash. Wholesalers were able to buy because of suki arrangements, a system under which the buyer also represented the lender and the fish were collateral for the loan. The price paid was only sufficient to maintain the fishermen at the subsistence level. Marketing costs were low although a customary P1.00 (U.S. $ =P7.40) per kilogram markup existed between sales to retailers and sales to consumers. Fishermen borrowed for capital investments and operating (living) expenses. All lenders except the bank required the borrower to sell the fish to the lender. No interest was charged, but repayment was daily and the lender paid a reduced price for the fish. Many of the fishermen did not have ready access to the gov- ernment's Foreshore Fisheries Loan Program. Fishermen reported low price, lack of transportation, difficulties in receiving payments, and no market as major problems. The low price was associated with the method of financing and with the presence of dynamited fish in the markets. Fishermen desired governmental assistance in loans, technical assistance, and law enforcement to stop illegal fishing. The fishermen could not foresee an im- proved level of living unless these problems were alleviated. CONTENTS Page SUMMARY AND CONCLUSIONS --------------------- - -- 3 INT RO D U C TIO N ..........------ ....---------...................- - -----------------.- ------- 5 Previous Research . - --- 5 More Applicable Research Begun -5 Description of Problem and Limits of the Study 5 R ESE A RC H I D ESIG N--------------------------------------- ...- - --............................ 5 R esearch Settin g--------------- - --------------------------------------------------------. 5 Sample D esign and D ata Collection ......................................... 6 A na ly sis P ro c e du re ---.......................................---...................... 6 MARKETING PRACTICES AND PROBLEMS OF MU N ICIPA L FISH ERM EN ---.----.-.-------------------------------- - ...............-- -. 6 Fis h Disp os a l ......... ----........ ..... ------------------------------------... .. ... .. ..- 7 M arketing of the Daily C atch ..................................................... 7 C hoice of M arket O utlets -----------------------------------------------------------8 C osts of M a rk eting -----------------------------------------------------------------------9 Financing M unicipal Fishing ------------------------------------ ..........-- 9 M arketing P roblem s --- - -------------------------------------------------------------10 G overnm ental A ssistance .................................. .............- ....-11 L IT E RAT U R E C ITED -- - - -----------------------------------------------------------------------. 11 APPENDIX-MUNICIPAL FISHERMEN'S QUESTIONNAIRE ------------------12 PUBLISHED 11/76-1M Auburn University is an equal opportunity employer. COVER PHOTO. Typical Philippine coastal fishing village at high tide. ACKNOWLEDGMENTS Data collection was supported by the Republic of the Philippines BFAR and NEDA. Data analysis and develop- ment and printing of this report were supported by AID/csd- 2780 under USAID Project 211-d. Thanks go to. BFAR Regional Director Jose R. Urbano, NEDA Regional Execu- tive Director Florendo F. Zablan, and to Mr. Jaime C. de la Vega. The help of all the BFAR/NEDA personnel who worked on the data collection is also gratefully acknowl- edged. Marketing of Fisheries Products by Municipal Fishermen in Panguil Bay, Philippines* M. L. HOPKINS and E. W. MCCOY** INTRODUCTION and (5) institutional structures (government fishery proj- ects, taxes, regulations) affecting the fishing industry. Be- has been an especially difficult area in which A SPECIFIC DEVELOPMENT PLAN for the fishing industry in cause marketing the Philippines has long been considered an essential part to implement changes, special emphasis was given to the of the national plan for development. A major obstacle to marketing study. the preparation of these plans has been the lack of accurate Panguil Bay, a 219-square kilometer fishing area located data, especially in the fisheries sector. on the northwestern side of the island of Mindanao, was chosen by NEDA-BFAR as the site of the second fishery Previous Research baseline survey 1 in northern Mindanao. The bay was se- lected because of its shallow nature, in contrast to the deep Most of the previous research, dealing largely with mar- water offshore of the province of Misamis Oriental, the site keting of fishery products within the Philippines, was done of the first survey. The bay and its surrounding marsh lands by the Special Studies Division of the Department of Agri- were reputed to be a major source of fishery products, es- culture and the Bureau of Fisheries and Aquatic Resources. pecially shrimp, crabs, shellfish, and milkfish (bangus). This research concentrated mainly on marketing of milkfish, although at least four reports also considered marketing the Description of Problem and Limits of the Study catch of municipal fishermen. This study deals with the marketing of fishery products Guerrero and Darrah (2) prepared a rather comprehensive by municipal fishermen of Panguil Bay. Specifically, the nationwide marketing report on milkfish, including detailed study attempts to (1) identify and describe the different descriptions of producer and middlemen practices and in- marketing channels used by municipal fishermen, and (2) formation about marketing channels, margins, and geographic determine the factors influencing the choice of marketing flow. A survey of fish culture practices in Misamis Oriental, outlets used by these fishermen. reported by Neri and Winner (4), gave some information Although the study dealt only with marketing of fishery about distances and transportation
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