Marketing of agricultural commodities by producer groups in the Philippines

432 Pages·2007·4.85 MB·English

Book Series No. 158/1996
r
Marketing of Agricultural
Commodities by Producer
Groups in the Philippines
Edited by
Aida R. Librero and Anita G. Tidon
lional Development Research Centre
ARCHIV
ne Council for Agriculture, Forestry
113022 I Resources Research and Development
rtment of Science and Technology
1DRC - Lib.
1 1
Dear Reader:
The formation of producer groups to undertake marketing functions
is a cooperative strategy to minimize inefficiencies in the marketing
system and to enable farmers to avail themselves of better returns to their
produce. This strategy is resorted to as an alternative marketing scheme
to fairly distribute market benefits to a wider number of market
participants and help maintain the competitive structure of the market
through pricing and efficient resource use.
This publication documents the marketing efficiency of farmers'
organizations and rural-based marketing cooperatives. It presents an
assessment of the implications of these groups on the social and
economic well-being of farmers, as well as the impact of relevant policies
and programs, support and other services on the performance and
sustainability of these groups. This volume is intended to be a useful
reference to all those involved in cooperative marketing.
Sincerely yours,
WILLIAM D. DAR
Executive Director
PHILIPPINE COUNCIL FOR AGRICULTURE, FORESTRY AND NATURAL
RESOURCES RESEARCH AND DEVELOPMENT
Paseo de Valmayor, Los Baiios 4030, Laguna, Philippines, P.O. Box 425
Tel. Nos. 536-0014 - 536-0015/536-0017-536-0020 & 536-0024
Manila Liaison Office: Rm. 103 Gr. Floor, DOST Bicutan, Tagig, Metro Manila
Tel. No. 837-1651
DA-ATI Office, Quezon City
Tel. No. [phone] loc. 225
Fax No. (63) [phone] /536-0132
E-mail: [email protected]
Book Series No. 158/1996
Marketing of Agricultural
Commodities by Producer
Groups in the Philippines
Edited by
Aida R. Librero and Anita G. Tidon
INTERNATIONAL DEVELOPMENT RESEARCH CENTRE
PHILIPPINE COUNCIL FOR AGRICULTURE, FORESTRY
AND NATURAL RESOURCES RESEARCH AND DEVELOPMENT
Department of Science and Technology
First Printing 1996
ISBN No. 971-20-0439-2
Bibliographic Citation:
Librero, A.R. and A.G. Tidon. Marketing of
agricultural commodities by producer groups in
the Philippines. Los Banos, Laguna: PCARRD
and IDRC, 1996. 419p. - (Book Series No.
158).
Foreword
Farmers and traders are two of the most important entities in the
Philippine agricultural marketing system. Farmers are mostly price
takers, thus, marketing cooperatives and producer groups (PGs) are
viewed as alternative to make farmers better off because through
collective action, they can market their products more efficiently and
bargain for cheaper prices of production inputs. But how efficient are
the cooperatives and PGs in performing marketing functions compared
with private traders? What marketing services do these organizations
provide to farmer-members? What marketing constraints and problems
do they face? What are their coping mechanisms? What are the welfare
effects of these organizations to the farmer-members?
To answer these questions, the Socio-Economics Research Division
(SERD) of the Department of Science and Technology-Philippine
Council for Agriculture, Forestry and Natural Resources Research and
Development (DOST-PCARRD), through the financial assistance of the
International Development Research Centre (IDRC), conducted a research
program on Marketing of Agricultural Commodities by Small Producer
Groups in the Philippunes. The program analyzed the performance of
various PGs and rural-based farmer-managed organizations engaged in
marketing major agricultural commodities in the country. The program
focused on major agricultural commodities of seven geo-political regions
of the Philippines.
Six academic institutions participated in the program, namely:
Isabela State University (ISU), Central Luzon State University (CLSU),
the University of the Philippines Los Banos (UPLB), Camarines Sur State
Agricultural College (CSSAC), Visayas State College of Agriculture
(ViSCA), and the University of Southern Mindanao (USM).
This book presentsthe output of the research program. In conducting
the research, a Program Advisory Committee was formed composed of
representatives from the Cooperative Development Authority (CDA),
Department of Agriculture (DA), National Economic and Development
Authority (NEDA), and Land Bank of the Philippines (LBP). Likewise,
a national workshop was organized by PCARRD in cooperation with the
CDA and the LBP to disseminate the research findings and derive policy
recommendations. Results are expected to provide valuable inputs to (a)
policy makers in making modifications on existing policies to improve
the overall performance and economic efficiency of PGs performing
marketing functions; and (b) researchers who may desire to conduct
more intensive and broader studies on marketing by small PGs.
WILLIAM D. DAR
Executive Director
iv
Acknowledgment
We wish to express our sincerest thanks and appreciation to the
following for all the assistance provided to us in the conduct of this
research program:
IDRC for providing financial support and to Dr. John D. Graham
for sharing his expertise and technical assistance;
The Program Advisory Committee members:
Mr. Harold D. Dacumos, vice president, LBP,
Dr. Ma. Piedad Geron, former deputy director, Agriculture
Staff, NEDA,
Dr. Vicente U. Quintana, former administrator, CDA,
Mr. Jose Manto and Mr. Rodolfo Guieb, senior agriculturists,
DA,
for their comments and suggestions in various stages of the
project;
All project and study leaders for their active participation and
cooperation in conducting the program;
Ms. Violeta Cordova for painstakingly reviewing individual
reports at the early phase of report preparation;
The management of the sample producer groups and the
sample farmers, traders, and key informants for providing the
needed information;
LBP and CDA for the listing of cooperatives and financial
support for the national workshop;
DOST-PCARRD for the counterpart funds and support in
conducting the program;
Ana Regulacion and Joselito Kalaw of SERD-PCARRD for
typing the manuscripts;
The Applied Communication Division (ACD) of PCARRD for its
assistance in the production of the publication; and
The staff of the SERD for their support and cooperation during
the implementation of this research program.
v
Contents
Foreword iii
Acknowledgment v
List of Authors ix
List of Acronyms xii
Part Introduction
I -
Chapter 1 - Marketing of Agricultural Commodities by Producer
Groups: Conceptual Framework and Methodology 1
Aida R. Librero and Albert P. Aquino
Chapter 2 - A Macro Overview of the Production-Marketing-
Consumption Systems for Agricultural Products 12
Aida R. Librero and Anita G. Tidon
Part II - Cereals
Chapter 3 - Marketing of Rice by Small Producer Groups in Selected
Regions of the Philippines 62
Georgina J. Bordado, Ma. Excelsis M. Orden,
Lydia P. Oliva, and Alberto R. Domingo
Chapter 4 - Marketing of Com by Small Producer Groups in Selected
Regions of the Philippines 120
Alberto R. Domingo, Isabelita M. Pabuayon,
and Lydia P. Oliva
vi
Part III - Commercial Crops
Chapter 5 - Marketing of Fruits by Small Producer Groups in Cagayan
Valley and Central and Southern Mindanao 158
Lydia P. Oliva, Alberto R. Domingo,
and Loma G. Valdez
Chapter 6 - Marketing of Root Crops by Small Producer Groups in
Eastern Visayas 193
Jose M. Alkuino, Jr. and Leonilla S. Parilla
Chapter 7 - Marketing of Onions by Small Producer Groups in Central
229
Luzon
Eduardo G. Marzan, Jr.
Chapter 8 - Marketing of Coconut by Small Producer Groups in
276
Southern Tagalog, Bicol, and Eastern Visayas
Isabelita M. Pabuayon, Georgina J. Bordado,
and Jose M. Alkuino, Jr.
Part IV - Livestock
Chapter 9 - Marketing of Cattle by Small Producer Groups in
Southern Tagalog 328
Jose M. Yorobe, Jr., Ma. Eden S. Piadozo,
and Dario M. Musa
Chapter 10 - Marketing of Swine by Small Producer Groups in Central
Luzon, Southern Tagalog, and Bicol 372
Luzviminda M. Galang, Eduardo G. Marzan,
Jose M. Yorobe, Jr., and Georgina J. Bordado
vii
Part V - Integration
Chapter 11 - Marketing of Agricultural Commodities by Producer
Groups in the Philippines 404
Aida R. Librero and Anita G. Tidon
viii