BIBLIOGRAPHY CHAYOWAN, CHERRY ROSE...
BIBLIOGRAPHY
CHAYOWAN, CHERRY ROSE L. APRIL 2013. Supply Chain of Banana
Produced in Cabarroguis, Quirino Province. Benguet State University, La Trinidad,
Benguet.
Adviser: Jovita M. Sim, MSc.
ABSTRACT
The study focused on the supply chain of banana produced in Cabarroguis Quirino.
The study was conducted in the different barangays in Cabarroguis.
The data were gathered through personal interview with the use of survey
questionnaires. Sixty producers, twenty traders, four processors and thirty consumers
served as a respondent in the study. Majority of the producers were middle to senior age.
Varieties of banana produced were saba, lacatan and latundan. Majority of the traders buy
and sell per hundreds, sell to retailers per hundred and the retailers sell on per kilogram.
Banana produced in Quirino province are picked-up by trucker/traders and are distributed
to the different market destinations like Baguio City, Urdaneta, Isabela and Divisoria in
Manila. Selling is picked-up and mode of payment is cash.
Actors in the supply chain were the producers, trucker/traders, wholesaler retailers,
retailers and consumers.
Production problem encountered by producers was pests and diseases. Problem in
marketing includes price fluctuation, lack of market outlet, decreased in market demand
and high market fees.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
INTRODUCTION
Rationale
Banana is one of the most common and widely grown fruit crops in the Philippines.
It is also one of the country’s major dollar earners and has consistently ranked next to
coconut oil and prawns in terms of value earnings during the last five years. Banana is the
most economically important crop in the Philippines and the locally grown fruit available
year round. They are grown in diverse environments in the country, from lowlands, flat
and sloping uplands to the marginal hillylands, Latundan, lakatan and saba are mostly
grown in the backyard or as a component in an intercropping scheme with minimum care
and management.
Banana is a tropical plant growing in all regions of the Philippines. The soil and
climate of the country is suitable for its commercial production. It is an annual crop that
bears fruit anytime of the year, as it is non-seasonal. Banana is an important source of
income for small farmers who constitute 80% of the banana growers.
The province of Quirino is one of the producers of banana in the Philippines. In
terms of commercial crops production, banana is the leading product of the province.
Permanents crops such as banana are widely chosen as a source of income especially in the
rural areas of the province. Its suitability to the type of soil in sloping terrain within the
province has encouraged farmers to plant banana as an alternative source of income, aside
from palay and corn. In the five municipalities of the province (except Saguday), produce
banana the whole year round. In 2005, the province’s total production of banana was
269.242 metric tons. In 2006, production reached 46,344 metric tons or 12.78% of the
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
regions harvest. This improved Quirino’s rank nationwide, from 34th to 28th, realizing an
average growth rate of 56.2%, the highest in the region in terms of production increment.
Cabarroguis is a 3rd class municipality in the province of Quirino, Philippines. It is
the capital municipality of Quirino. According to the latest census, it has a population of
28,024 people and 5,336 households. The municipal area of Cabarroguis covers 26,902
hectares approximately. The area is further distributed into the seventeen (17) barangays
comprising the municipality including barangay Didipio which remains to be in the
municipality and the province of Nueva Viscaya and Quirino.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
REVIEW OF LITERATURE
Banana
Banana is the common name for monocarp flowering plants of the genus musa and
for the fruit they produce. It is one of the oldest cultivated plants. They are native to tropical
South and Southeast Asia, and are likely to have been first domesticated in Papua New
Guinea. Today, they are cultivated throughout the tropics. They are grown in at least 107
countries, primarily for their fruit, and to lesser extent to make fiber, banana wine and as
ornamental plants. Its fruits, rich in starch, grow in clusters hanging from top of the plant.
They come in a variety of sizes and colors when ripe, including yellow, purple, and red.
The scientific names of bananas are musa, acuminate, musabalbisiana. Banana has a
various uses. The ripe fruit is pureed, candied and preserved in various forms when not
eaten fresh. Its extract is used in the manufacture of catsup, vinegar, and wine. The unripe
fruit is powdered and chipped.
Banana is a native to Southeast Asia where the climate is warm and humid. The
most common variety grown in the Philippines are “Saba”, “Lacatan”, “Latundan”,
“Bangulan”, “Cavendish”.
“Saba” grows to as tall as 20 feet, fruit is angular; has thick peel that is green when
unripe, yellow when ripe; flesh is white, gestation period is 15-16 months.
“Lacatan” grows to a height of five to nine feet; fruit is round,seedless; has thick
peel that is green when unripe, yellow-orange when ripe; gestation period is 14-15 months.
“Latundan” grows six to ten feet tall; fruit is round; has a thin peel that is green
when unripe, yellow when ripe; flesh is white when ripe; gestation period is 12 months.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
“Bangulan” fruit is round, very sweet, seedless, and easily rots; has thick peel that
is green when unripe and remains green when ripe; flesh is white when ripe; gestation
period is 12 months.
“Cavendish” reaches five to ten feet high; fruit is bigger than Bangulan; peel is
green when unripe, yellow when ripe; flesh is yellow when ripe; export quality; gestation
period is six to eight months. Other varieties grown in the country of “Morado”,
“Pitigo”“Los Banos”, “Senorita”, “Tindok”, “Granda”, and “Tumok”.
Production
According to Kotler (1989), a product is something that is viewed as capable of
satisfying a want. A want is described as stated of felt deprivation in a person. The
deprivation produces discomfort. The want energizes the person and puts him into an active
state and gives him/her direction. The person will perceive certain things outside of himself
that would satisfy his wants. Kotler also mentioned that product is anything that can be
offered to market for attention, acquisition, use or consumption that might satisfy a need
or want.
Banana is one of the best known fruit of the tropics and the most widely eaten,
usually refers to soft, sweet, dessert, bananas, it contains good amount of health benefiting
anti-oxidants, minerals and vitamins (Mckinley, 2008).
Banana production is still considered a small-scale industry where varieties like
“Saba”, “Lakatan” and “Latundan” are planted along the periphery of the farms. This
naturally generates a minimal production. The country would be able to capture a bigger
share of the market if only it will able to produce more. In line with this, there were a
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
number of research and development (R&D) that were undertaken to increase production
to help farmers, developing technologies can be applied to small-scale farms.
Philippines are among the top five producers of fresh bananas in the world. Our
fresh bananas are exported mostly to Japan, China, Korea, Taiwan, as well as the Middle
East. That is why banana is the country’s prime fruit commodity in terms of their
commercial value and the size of the area they are planted.
Marketing and Demand of Banana
As cited by Caraan (2010), marketing is the process of determining the needs and
wants of consumers and being able to deliver products that satisfy those needs and wants.
It includes all of the activities necessary to move product from the producer to the
consumer. Marketing is a bridge from the producer to the consumer.
Marketing is the process in society by which the demand structure for economic
goods and services is anticipated and enlarged and satisfied through the conception,
promotion, exchange and physical distribution of goods and services. Marketing is where
the costumer and it is the costumer who in the end decides the fate of the business (Miranda,
1983).
Moreover, marketing has been defined by the president of General Food
Corporation as the creation and delivery of a standard living. It gives emphasis on the
creative factor in marketing because of the following reasons: Creative pricing needs to
penetrate over expanding market levels, creation of over increasing variety of convenience
for the consumer, and deliberate fostering of an attitude of being all times creatively
dissatisfied with what we know about marketing and markets (Miranda, 1983).
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
In the local market, banana; particularly “Saba” is now promoted as an alternative
carbohydrates source to rice as a part of the government’s food security thrust. Thus, efforts
are now underway to boost production and not only support of food security but also to
address supply shortages for the processing and export industries (Macabasco, 2011).
Local demand of bananas in general has remained strong. This is because bananas
are the one of the most widely eaten fruits in the country; they are affordable, accessible
and available all year round. Per capita consumption stood at 55 kilograms in 2009, with
average growth of 12.5% over past five years (Macabasco, 2011).
Target Market
One of the most important components of estimating the market potential for a
business is to determine its target market. A target market can be thought of as the
costumers who are most likely to buy from you and generally are described using
demographic variables (gender, age, education) as well as psychographic variable (lifestyle
and belief system variables). In many cases, a business may have more than one target;
truck buyers, luxury car buyers, economy buyers. Your business should be able to develop
specific profiles for each of your target market using demographic and psychographic
variable (Cayosen, 2012).
Market is a sphere within which price is making forces operate and in which
exchanges of title end to be accomplished with or without actual movement of the goods
affected (Miranda, 1983).
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
METHODOLOGY
Locale and Time of the Study
The study was conducted in Cabarroguis, Quirino (production area) and to the areas
where banana is supplied and marketed. Cabarroguis is composed of seventeen barangays
namely; Banuar, Burgos, Calaocan, Del Pilar, Dibibi, Dingasan, Eden, Gomez, Gundaway
(poblacion), Mangandingay (poblacion), San Marcos, Santo Domingo, Tucod (including
Didipio), Villamor, Villa Pena (Capellangan), Villa Rose, and Zamora. Majority of these
areas were planting banana.
The study was conducted on December, 2012.
Respondents of the Study
The respondents of the study were the 60 producers of banana, the market outlet
where product is supplied (20) and 30 consumers or buyers of the product. A total of 110
respondents.
Data Gathering Procedure
A survey questionnaire was used as research instrument of the study. A personal
interview was also conducted to validate result.
Data Gathered
The data gathered includes the geographical flow of banana produced in the area,
actors in the supply chain, production and marketing practices.
Data Analysis
The data gathered were tabulated and interpreted according to the objectives of the
study. Data were analyzed using frequency analysis and supply chain mapping was done.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
RESULTS AND DISCUSSION
Profile of the Producers
Table 1 presents the demographic profile of the respondents as to their age,
educational attainment and years of producing banana.
Age. Age of the respondents ranged from 21 to 60 years old. A greater number
(37%) of the respondents were aged 41-50 years old. Seventeen (28.3%) of the respondents
were aged 51-60 years old. Fifteen (25%) were aged 31-40 years old. Six (10%) were aged
21-30 years old. This result implies that most of the banana producers are middle to senior
age.
Educational attainment. The respondents have attended formal education, some
have even finished a college degree. Twenty two (36.7%) of the respondents had reached
elementary level. Twenty (33.3%) had reached high school level. Twelve (20%) of the
respondents who had finished their college degree and six (10%) had reached college but
did not finish their degree.
Number of years in producing banana. Years of experience of the farmers in
commercial banana production ranged from 1 to 40 years. A greater number of the
respondents (37%) had 11 to 20 years of experience in banana production, 33% were into
banana production for 21 to 30 years, 22% had 1 to 10 years of experience and 8% had 31
to 40 years in banana production. Result implies that the farmers were engaged in
commercial banana production for a long period which may indicate that they have enough
knowledge and skills in production and may also be in marketing.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study focused on the supply chain of banana produced in Cabarroguis Quirino.
The study was conducted in different barangays of Cabarroguis. The study aimed to;
dentify the types/varieties of banana produced in Cabarroguis Quirino; identify the actors
involved in the supply chain; identify the product and payment flow and lastly determine
the problems and issues in production and marketing.
The data were gathered through survey questionnaire and personal interview with
the respondents. Sixty producers, twenty traders and thirty consumers served as
respondents of the study. Actors in the supply chain include farmers, trucker-traders,
wholesalers, retailers and consumers.
The average volume sold per time per farmer is 3,232 pieces for saba variety, 1,859
pieces for lakatan, and 1,993 for latundan. While the volume purchase by truckers/traders
per time is 27,050 pieces for saba variety, 5,950 for lakatan and 14,970 for latundan.
Lakatan commands a higher price at 109 pesos per hundred and selling price is 216 pesos
per hundred. Saba had the lowest buying price but selling price is higher than latundan.
Mode of payment is cash upon picked-up. Only one farmer sell by consignment.
Farmers/banana producers sell directly to the truckers-traders-wholesalers and
truckers-traders transport these products to the different market destinations and distribute
to the wholesaler –retailers and retailers. From the retailers the products are sold directly
to consumers. The main problem encountered by producers in banana is the pest and
diseases which affect their income because of low marketable yield.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
Conclusions
Based on the results the following conclusions were drawn:
1.
There are 5 actors in the supply chain the farmers, truckers/traders,
wholesalers, retailers and consumers.
2.
Price depends on the supply and demand schedule but are dictated by the
truckers/traders.
3.
The trucker/traders buy directly from the farmers and are responsible in the
distribution of the product to the different market destinations.
Recommendations
Based on the results, the following are recommended:
1.
Continuous research and development should be done to develop more
technology on production especially on the control of pest and diseases since the presence,
of banana Bunchy Top virus referred to as “tungro” in the area is becoming visible as
mentioned by some farmers.
2.
As mentioned by the producer, there should be standard measurements
because the product is bought by the truckers on per hundred but the retailers are selling
on per kilo basis.
3.
Policies should be established in on the standard measurements and also on
trading activities to safeguard farmers/producers.
4.
Production of banana in Quirino province, is a rising industry, thus, the
government support this industry by providing technical backstopping to the industry.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
LITERATURE CITED
BENJABUTR, B. 2011. “Supply Chain Operations”. Retrieved July 29, 2011. From
http://www.scm-operations.com/p/site-policy.html.
CARAAN C.A. 2010. “Defining Marketing in the 21st century”. Retrieved November 9,
2012. From http://www.asbcentral.com/marketing%20pdf/what.pdf.
CAYOSEN, D. P. 2012. “Supply chain of Muscovado produced in Besao, Mountain
Province”. BS Thesis Benguet State Un iversity La Trinidad, Benguet.Pp. 16-17.
DRABENSTOTT, T. 1999. “Purchasing and Supply Management”.USA, South Western
College Publishing.P. 56.
E HOW MEDIA, 2012.“ What is the importance of Supply Chain Management”.
Retrieved November 6, 2012.From www.//ehow.com/how-to.html.
KOTLER P. 1989. “Marketing Management”. (Analysis, Planning and Control). P.5.
MCGRAW, H. 2002. “What is Supply Chain Management?” Retrieved October 20,
2012. From highered.mcgraw-hill.com/sites/dl/free1007298239x14502.
MCKINLEY, D. 2008 “What are the benefits of eating bananas”. Retrieved September
14, 2012. From http://www.livestrong.com/article/518664.
MOCABASCO D.R. 2011.“Bureau of Agricultural Statistics”.Retrieved November 14,
2012. From http://www.ats-sea.agr.gc.ca/ase/5985-eng.htm#cn-tphp.
RICHARDSON, T. C. 2004. “Supply Chain Management”. Retrieved October 30, 2012.
From www.witiger.com.
SIJSES, S. 2004. “Dynamics in Chain and Networks”.Wageningen Academic
Publishers.P.118.
SIM, J.M. and L.N. TAGARINO, 2009.“Supply Chain Improvement for Fresh Vegetables
in
Selected Areas in Luzon”. Pp5-9.
WATER, D. 2012.“Structure of the Supply Chain”.Retrieved November 13, 2012. From
http://www.cws.cengage.co.uk/waters/chapter%13a.d.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
CHAYOWAN, CHERRY ROSE L. APRIL 2013. Supply Chain of Banana
Produced in Cabarroguis, Quirino Province. Benguet State University, La Trinidad,
Benguet.
Adviser: Jovita M. Sim, MSc.
ABSTRACT
The study focused on the supply chain of banana produced in Cabarroguis Quirino.
The study was conducted in the different barangays in Cabarroguis.
The data were gathered through personal interview with the use of survey
questionnaires. Sixty producers, twenty traders, four processors and thirty consumers
served as a respondent in the study. Majority of the producers were middle to senior age.
Varieties of banana produced were saba, lacatan and latundan. Majority of the traders buy
and sell per hundreds, sell to retailers per hundred and the retailers sell on per kilogram.
Banana produced in Quirino province are picked-up by trucker/traders and are distributed
to the different market destinations like Baguio City, Urdaneta, Isabela and Divisoria in
Manila. Selling is picked-up and mode of payment is cash.
Actors in the supply chain were the producers, trucker/traders, wholesaler retailers,
retailers and consumers.
Production problem encountered by producers was pests and diseases. Problem in
marketing includes price fluctuation, lack of market outlet, decreased in market demand
and high market fees.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
INTRODUCTION
Rationale
Banana is one of the most common and widely grown fruit crops in the Philippines.
It is also one of the country’s major dollar earners and has consistently ranked next to
coconut oil and prawns in terms of value earnings during the last five years. Banana is the
most economically important crop in the Philippines and the locally grown fruit available
year round. They are grown in diverse environments in the country, from lowlands, flat
and sloping uplands to the marginal hillylands, Latundan, lakatan and saba are mostly
grown in the backyard or as a component in an intercropping scheme with minimum care
and management.
Banana is a tropical plant growing in all regions of the Philippines. The soil and
climate of the country is suitable for its commercial production. It is an annual crop that
bears fruit anytime of the year, as it is non-seasonal. Banana is an important source of
income for small farmers who constitute 80% of the banana growers.
The province of Quirino is one of the producers of banana in the Philippines. In
terms of commercial crops production, banana is the leading product of the province.
Permanents crops such as banana are widely chosen as a source of income especially in the
rural areas of the province. Its suitability to the type of soil in sloping terrain within the
province has encouraged farmers to plant banana as an alternative source of income, aside
from palay and corn. In the five municipalities of the province (except Saguday), produce
banana the whole year round. In 2005, the province’s total production of banana was
269.242 metric tons. In 2006, production reached 46,344 metric tons or 12.78% of the
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
regions harvest. This improved Quirino’s rank nationwide, from 34th to 28th, realizing an
average growth rate of 56.2%, the highest in the region in terms of production increment.
Cabarroguis is a 3rd class municipality in the province of Quirino, Philippines. It is
the capital municipality of Quirino. According to the latest census, it has a population of
28,024 people and 5,336 households. The municipal area of Cabarroguis covers 26,902
hectares approximately. The area is further distributed into the seventeen (17) barangays
comprising the municipality including barangay Didipio which remains to be in the
municipality and the province of Nueva Viscaya and Quirino.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
REVIEW OF LITERATURE
Banana
Banana is the common name for monocarp flowering plants of the genus musa and
for the fruit they produce. It is one of the oldest cultivated plants. They are native to tropical
South and Southeast Asia, and are likely to have been first domesticated in Papua New
Guinea. Today, they are cultivated throughout the tropics. They are grown in at least 107
countries, primarily for their fruit, and to lesser extent to make fiber, banana wine and as
ornamental plants. Its fruits, rich in starch, grow in clusters hanging from top of the plant.
They come in a variety of sizes and colors when ripe, including yellow, purple, and red.
The scientific names of bananas are musa, acuminate, musabalbisiana. Banana has a
various uses. The ripe fruit is pureed, candied and preserved in various forms when not
eaten fresh. Its extract is used in the manufacture of catsup, vinegar, and wine. The unripe
fruit is powdered and chipped.
Banana is a native to Southeast Asia where the climate is warm and humid. The
most common variety grown in the Philippines are “Saba”, “Lacatan”, “Latundan”,
“Bangulan”, “Cavendish”.
“Saba” grows to as tall as 20 feet, fruit is angular; has thick peel that is green when
unripe, yellow when ripe; flesh is white, gestation period is 15-16 months.
“Lacatan” grows to a height of five to nine feet; fruit is round,seedless; has thick
peel that is green when unripe, yellow-orange when ripe; gestation period is 14-15 months.
“Latundan” grows six to ten feet tall; fruit is round; has a thin peel that is green
when unripe, yellow when ripe; flesh is white when ripe; gestation period is 12 months.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
“Bangulan” fruit is round, very sweet, seedless, and easily rots; has thick peel that
is green when unripe and remains green when ripe; flesh is white when ripe; gestation
period is 12 months.
“Cavendish” reaches five to ten feet high; fruit is bigger than Bangulan; peel is
green when unripe, yellow when ripe; flesh is yellow when ripe; export quality; gestation
period is six to eight months. Other varieties grown in the country of “Morado”,
“Pitigo”“Los Banos”, “Senorita”, “Tindok”, “Granda”, and “Tumok”.
Production
According to Kotler (1989), a product is something that is viewed as capable of
satisfying a want. A want is described as stated of felt deprivation in a person. The
deprivation produces discomfort. The want energizes the person and puts him into an active
state and gives him/her direction. The person will perceive certain things outside of himself
that would satisfy his wants. Kotler also mentioned that product is anything that can be
offered to market for attention, acquisition, use or consumption that might satisfy a need
or want.
Banana is one of the best known fruit of the tropics and the most widely eaten,
usually refers to soft, sweet, dessert, bananas, it contains good amount of health benefiting
anti-oxidants, minerals and vitamins (Mckinley, 2008).
Banana production is still considered a small-scale industry where varieties like
“Saba”, “Lakatan” and “Latundan” are planted along the periphery of the farms. This
naturally generates a minimal production. The country would be able to capture a bigger
share of the market if only it will able to produce more. In line with this, there were a
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
number of research and development (R&D) that were undertaken to increase production
to help farmers, developing technologies can be applied to small-scale farms.
Philippines are among the top five producers of fresh bananas in the world. Our
fresh bananas are exported mostly to Japan, China, Korea, Taiwan, as well as the Middle
East. That is why banana is the country’s prime fruit commodity in terms of their
commercial value and the size of the area they are planted.
Marketing and Demand of Banana
As cited by Caraan (2010), marketing is the process of determining the needs and
wants of consumers and being able to deliver products that satisfy those needs and wants.
It includes all of the activities necessary to move product from the producer to the
consumer. Marketing is a bridge from the producer to the consumer.
Marketing is the process in society by which the demand structure for economic
goods and services is anticipated and enlarged and satisfied through the conception,
promotion, exchange and physical distribution of goods and services. Marketing is where
the costumer and it is the costumer who in the end decides the fate of the business (Miranda,
1983).
Moreover, marketing has been defined by the president of General Food
Corporation as the creation and delivery of a standard living. It gives emphasis on the
creative factor in marketing because of the following reasons: Creative pricing needs to
penetrate over expanding market levels, creation of over increasing variety of convenience
for the consumer, and deliberate fostering of an attitude of being all times creatively
dissatisfied with what we know about marketing and markets (Miranda, 1983).
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
In the local market, banana; particularly “Saba” is now promoted as an alternative
carbohydrates source to rice as a part of the government’s food security thrust. Thus, efforts
are now underway to boost production and not only support of food security but also to
address supply shortages for the processing and export industries (Macabasco, 2011).
Local demand of bananas in general has remained strong. This is because bananas
are the one of the most widely eaten fruits in the country; they are affordable, accessible
and available all year round. Per capita consumption stood at 55 kilograms in 2009, with
average growth of 12.5% over past five years (Macabasco, 2011).
Target Market
One of the most important components of estimating the market potential for a
business is to determine its target market. A target market can be thought of as the
costumers who are most likely to buy from you and generally are described using
demographic variables (gender, age, education) as well as psychographic variable (lifestyle
and belief system variables). In many cases, a business may have more than one target;
truck buyers, luxury car buyers, economy buyers. Your business should be able to develop
specific profiles for each of your target market using demographic and psychographic
variable (Cayosen, 2012).
Market is a sphere within which price is making forces operate and in which
exchanges of title end to be accomplished with or without actual movement of the goods
affected (Miranda, 1983).
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
METHODOLOGY
Locale and Time of the Study
The study was conducted in Cabarroguis, Quirino (production area) and to the areas
where banana is supplied and marketed. Cabarroguis is composed of seventeen barangays
namely; Banuar, Burgos, Calaocan, Del Pilar, Dibibi, Dingasan, Eden, Gomez, Gundaway
(poblacion), Mangandingay (poblacion), San Marcos, Santo Domingo, Tucod (including
Didipio), Villamor, Villa Pena (Capellangan), Villa Rose, and Zamora. Majority of these
areas were planting banana.
The study was conducted on December, 2012.
Respondents of the Study
The respondents of the study were the 60 producers of banana, the market outlet
where product is supplied (20) and 30 consumers or buyers of the product. A total of 110
respondents.
Data Gathering Procedure
A survey questionnaire was used as research instrument of the study. A personal
interview was also conducted to validate result.
Data Gathered
The data gathered includes the geographical flow of banana produced in the area,
actors in the supply chain, production and marketing practices.
Data Analysis
The data gathered were tabulated and interpreted according to the objectives of the
study. Data were analyzed using frequency analysis and supply chain mapping was done.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
RESULTS AND DISCUSSION
Profile of the Producers
Table 1 presents the demographic profile of the respondents as to their age,
educational attainment and years of producing banana.
Age. Age of the respondents ranged from 21 to 60 years old. A greater number
(37%) of the respondents were aged 41-50 years old. Seventeen (28.3%) of the respondents
were aged 51-60 years old. Fifteen (25%) were aged 31-40 years old. Six (10%) were aged
21-30 years old. This result implies that most of the banana producers are middle to senior
age.
Educational attainment. The respondents have attended formal education, some
have even finished a college degree. Twenty two (36.7%) of the respondents had reached
elementary level. Twenty (33.3%) had reached high school level. Twelve (20%) of the
respondents who had finished their college degree and six (10%) had reached college but
did not finish their degree.
Number of years in producing banana. Years of experience of the farmers in
commercial banana production ranged from 1 to 40 years. A greater number of the
respondents (37%) had 11 to 20 years of experience in banana production, 33% were into
banana production for 21 to 30 years, 22% had 1 to 10 years of experience and 8% had 31
to 40 years in banana production. Result implies that the farmers were engaged in
commercial banana production for a long period which may indicate that they have enough
knowledge and skills in production and may also be in marketing.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study focused on the supply chain of banana produced in Cabarroguis Quirino.
The study was conducted in different barangays of Cabarroguis. The study aimed to;
dentify the types/varieties of banana produced in Cabarroguis Quirino; identify the actors
involved in the supply chain; identify the product and payment flow and lastly determine
the problems and issues in production and marketing.
The data were gathered through survey questionnaire and personal interview with
the respondents. Sixty producers, twenty traders and thirty consumers served as
respondents of the study. Actors in the supply chain include farmers, trucker-traders,
wholesalers, retailers and consumers.
The average volume sold per time per farmer is 3,232 pieces for saba variety, 1,859
pieces for lakatan, and 1,993 for latundan. While the volume purchase by truckers/traders
per time is 27,050 pieces for saba variety, 5,950 for lakatan and 14,970 for latundan.
Lakatan commands a higher price at 109 pesos per hundred and selling price is 216 pesos
per hundred. Saba had the lowest buying price but selling price is higher than latundan.
Mode of payment is cash upon picked-up. Only one farmer sell by consignment.
Farmers/banana producers sell directly to the truckers-traders-wholesalers and
truckers-traders transport these products to the different market destinations and distribute
to the wholesaler –retailers and retailers. From the retailers the products are sold directly
to consumers. The main problem encountered by producers in banana is the pest and
diseases which affect their income because of low marketable yield.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
Conclusions
Based on the results the following conclusions were drawn:
1.
There are 5 actors in the supply chain the farmers, truckers/traders,
wholesalers, retailers and consumers.
2.
Price depends on the supply and demand schedule but are dictated by the
truckers/traders.
3.
The trucker/traders buy directly from the farmers and are responsible in the
distribution of the product to the different market destinations.
Recommendations
Based on the results, the following are recommended:
1.
Continuous research and development should be done to develop more
technology on production especially on the control of pest and diseases since the presence,
of banana Bunchy Top virus referred to as “tungro” in the area is becoming visible as
mentioned by some farmers.
2.
As mentioned by the producer, there should be standard measurements
because the product is bought by the truckers on per hundred but the retailers are selling
on per kilo basis.
3.
Policies should be established in on the standard measurements and also on
trading activities to safeguard farmers/producers.
4.
Production of banana in Quirino province, is a rising industry, thus, the
government support this industry by providing technical backstopping to the industry.
Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013
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Supply Chain of Banana Produced in Cabarroguis, Quirino Province
CHAYOWAN, CHERRY ROSE L. APRIL 2013