UV Journal of Research 2013 The dynamics of barter trade among Cebuano farmers Zosima A. Pañares1 Agnes C. Sequiño2 Graduate School1 University of the Visayas1 College of Commerce2 University of San Jose-Recoletos2 [email protected] Submitted: March 21, 2012 Accepted: February 5, 2013 ABSTRACT Barter is an old process of doing business in the olden times without the use of money. It is surprising to note that, during this age of technology and borderless commercialization, barter is still useful and is even used with technology. The study aimed to document the Moreover, both the economic and social implications are recorded in relation to Filipino barter system used by Cebuano farmers to find out if this business process is still profitable. with service; and (3) extended barter system. Moreover, the farmers from northern and culture. The findings revealed three types of barter: (1) goods with goods; (2) goods their goods directly to consumers for money. Barter system revealed the peace-loving naturesouthern and Cebu generosity realized of that Cebuanos. the barter system was more profitable for them than selling Keywords: barter, extended barter, business, entrepreneurship, economics I. INTRODUCTION pose a problem on barter system. However, even A long time ago there was no money – no coins with the aforementioned problems, bartering has and no paper bills. Before money was invented people had to get their food, clothing and other Educators, 2001). needs by bartering things. Barter comes from a also Mostits benefits of the to time, the tradersbartering (Online was Museuma good French word, barater, which means “to trade.” way of getting things. But sometimes, there Barter is an exchange of goods you have, for goods were problems. What happened when you had you want to have (Online Museum Educators, something to trade, but nobody wanted it? What 2001). happened when the traders could not agree on Barter system was the only method wherein what was a fair trade? People had to agree as to the economy of the primitive men depended how many eggs would equal a sack of grain or on. After the development of economy, simple exchange of goods without the use of money What if you had something to trade that almost was scarcely used because it has also its everybodyhow many wanted?fish were Then enough it was to tradeeasy tofor make a pot. a disadvantages. An individual who has goods to trade! So with these problems people began to barter but nobody wanted them or the traders use certain objects as money. could not agree on what goods to barter, may The evolution of currency was, therefore, 196 UV Journal of Research like to document how barter system is still done mankind that changed the face of the economic world,one of thoughthe significant it was slow inventions and a long in theprocess. history This of direct selling method. Secondly, the study would evolution passed through different stages, which by farmers and what are its benefits over the in turn mark the different interesting phases of conceptualized using barter system that would human civilization (Thakur, 2008). like to find out what business strategy can be However, even with the use of money in the this a poverty alleviation program. The objectives present times, people in the world, especially oflead the to study more were profit to: for (1) the describe farmers, the thusbarter making chain among farmers in rural areas still resort to barter system in order to dispose of their farm goods. Barter system has become global with the use of barterand players; mechanism (2) determine for farmers the benefits based ofon barter local technology (Study Mode, 2012). Advertisements worldwideusing estimate barter profit systems. margin; and (3) propose a on what to trade and what they want in exchange are uploaded in the net. This is not only for large II. LITERATURE REVIEW scale farmers but for every farmer who thinks that Bartering barter system is a better way of disposing goods According to Ware (2010) when times rather than selling them directly in the markets. are tough, and prices of farm goods are low, it Barter in the present time has revolutionized is an especially appropriate time to consider the farmers all over the world. Bartering of bartering. During these times, skipping the step farm goods is done not only between two of exchanging goods to cash and cash for what farmers but through a barter center. Goods are is needed, can lower overall outlay and make already priced in order to estimate the goods to better use of resources. Moreover, it is just be bartered. There are already organizations, plain neighborly and community-building to companies or personnel that take charge of the trade things instead of formally purchasing or bartering. In some way, barter system is already selling them. Many people who would not feel institutionalized especially in other countries comfortable selling their carrots, at a farmers’ In the Philippines, during the ancient times, Filipinos usually used barter system for trading onions with fellow small farmers. their products with those from other places market,According do feel fineto Ompang exchanging (2011), them forbarter garlic was or (Coconuter, 2007). Sometimes shells and gold the trading system used by the Mandaya tribes were used as exchange materials. Lately, in in the hinterlands of Davao Oriental, Philippines. 1993, the government is initiating a barter Agriculture is the main industry and source of system program for its coffee products with other living. When abacca and coconut were abundant, products of big foreign markets, especially those in the Eastern European countries (Palacpac, way to cash economy. But even until this time, 1993). This is done to increase coffee exports. barterthe influx system of foreign is still trading exercised increased by the that Mandaya paved Some of the products to be bartered with coffee farmers. are military equipment from Romania. Benefits of Bartering My recent visit to farmlands in Cebu also Barter is basically a personal activity of revealed certain kind of barter system among two persons. But when more people are doing farmers especially during harvest seasons. They barter, it is more than an individual action but also go out of their way to the city, to do barter of their goods, in exchange for anything they want. According to Stout (2012) it has various effects on Some even do business with what they have themay economy. already Peopleinfluence become the economicless reliant system. on the bartered. job market because they can acquire goods and With the above scenario, this study would services without money. Moreover, bartering is Pañares, Z. A. and Sequiño, A. C. 197 and practices of bartering and assuming that at commodities are involved except when bartering least a sample of the practices can be captured in isnot based very susceptibleon money-based to inflation economy. since noBarter prices is ofa each place. prosperous and gratifying way to do incremental Lamac is a big rice growing barangay (village) where most farmers are tenants of landed people Bartering has a different dynamic in “supply who are residing in the city. It is located about andbusiness demand” and improveand allows cash businesses flow (Yaffe, to 2012).sell goods 65 kilometers from the city. Farmers can sell and services to cash-poor customers. It leads to their farm products in three markets near the less money credit because we can pay for some place which is about 5-16 kilometers away – in goods and services by bartering and Barter the town market of Pinamungajan, Toledo City clubs lend their units. It creates micro-economic and Lutupan – which can be reached through a jeepney ride. Bartering is a philosophical challenge to money- Barangay Guadalupe is part of Cebu City. basedsystems. economy It re-defines (Stout, 2012).money and economics. Farmers are residing on the hilly sides, usually Barter is not considered for its economic growing mangoes, but many are also into crop and conditions only. It is a ritual and an expression vegetable farming. Their goods can be marketed of friendship -- and it is a natural, deep-rooted in the big markets of Carbon, Taboan, and even in part of our heritage and humanity. It: (1) builds Malls located in the city proper. community; (2) decreases outlay of cash; (3) Caputatan is a barangay in the sugarland of increases business recognition; (4) builds a name Medellin, about 80 kilometers north of Cebu. for yourself; (5) gets your product out there; Most of the farmers are working in the haciendas, (6) generates potential customers; (7) links but still many of them manage to grow crops and vegetables. They usually sell their farm goods demands; (9) decreases your overall expense for neededwith other goods farmers; and services; (8) finds (10) out moveswhat are surplus their transportation facilities. goods; and (11) makes use of “downtime” (try in theResearch town marketInformants only due. toFarmers difficulty with in bartering for needed things in winter and offering experience in barter trade were selected through childcare or other services) (Ware, 2010). snowball sampling technique. A total of fourteen male informants were interviewed distributed as III. METHODOLOGY follows: Lamac – six informants, Guadalupe – four Method informants and Caputatan- four informants. The The case analysis was used to present the six informants from Lamac were all rice farmers documentation of the barter practices of farmers aged 32-46, married and has been working in system – goods to goods (GG), goods to service or informants from Guadalupe were all married viceclassified versa according(GS or SG), to service the four to servicetypes of (SS) barter and andthe farmsaged 40-53for more and werethan fiveroot years.crop and The mango four extended barter (EB).