BIBLIOGRAPHY
NABUS, FREDDIE B. APRIL 2008. Marketing Channel for Sericulture Products
(Cocoon and Raw Silk) from Kapangan, Benguet. Benguet State University, La Trinidad,
Benguet.
Adviser: Maria Ana C. Tanyag, MSc.
ABSTRACT
The study was conducted to determine: 1) the marketing channels of sericulture
products (cocoon and raw silk) 2) the market price and basis of price in each channel, 3)
mode of selling in each channel level, 4) the role and value-adding activities of each
channel; 5) the requirements of each channel; 6) the ability of supplies/ farmer to comply
with requirements of buyers; and 7) the marketing problems encountered and the
perceived solutions by the sericulture farmers, reelers and buyers.
A total of thirty three (33) farmer-respondents were involved in sericulture in
Kapangan. Active and inactive farmer, one representative respondent from cooperative,
one also from Fiber Industry Development Authority (FIDA) and three raw silk buyers-
respondents were interviewed using a structural guide interview schedule.
Based on the findings, the marketing channels involved were farmers,
cooperative, Fiber Industry Development Authority (FIDA), the buyers of silk from
Aklan, Ifugao and local weavers in our locality such as Nardas Weaving. The products
from farmers were picked-up and delivered to cooperatives for sorting, grading, reeling

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and channeling to Fiber Industry Development Authority (FIDA) for the market linkages
to the buyers.
The buyers’ pricing is based on the prevailing price of fresh cocoon within
Kapangan Environmental Livelihood Multipurpose Coop-Sericulture (KELMC) and the
raw silk’s price is based on the prevailing price within the Fiber Industry Development
Authority (FIDA) mentioned that is based upon cocoon shell percentage (CSP),
percentage of raw silk reelability and return of investment.
The mode of payment used by the farmers, cooperative and Fiber Industry
Development (FIDA) is cash upon delivery. Most of the farmers, cooperative, Fiber
Development Authority were charged upon transporting their products.
The most common problems that the farmers encountered are lack of financial
assistance, low market value price and prevention of insect pests and diseases.
Furthermore, suggestions and perceived solutions of the farmers to the problems
encountered are to create financing agencies and conduct more trainings in order to meet
the requirements of buyers. While the Fiber Industry Development Authority suggested
the continuous information dissemination to other farmers and to increase mulberry
plantation as well as rearing houses.
Moreover, the government should provide technical support assistance to the
cocoon producers to improve the quality of cocoon that is required by the buyers because
it would increase production.

ii

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TABLE OF CONTENTS


Page
Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii

INTRODUCTION
Background of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Scope and Delimitation of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
REVIEW OF LITERATURE
Concept of Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Marketing Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Marketing Effectiveness and Efficiency . . . . . . . . . . . . . . . . . . . . . . . . .
6
Marketing Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Grading and Sorting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
METHODOLOGY
Locale and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Research Instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
iii

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Methods of the Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Methods of Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
RESULTS AND DISCUSSION
Farmer-Respondents Profile
Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Educational attainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Number of household members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Number of years in farming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Farming operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Membership in organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Place for sericulture project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Farmer’s market outlet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15

Market pricing practices employed by the
farmers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15

Current price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15

Basis of pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15

Types of products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16

Terms of disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17

Farmer’s reasons for choice of outlet . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Mode of payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17

Role and value added activities of farmers . . . . . . . . . . . . . . . . . . . . . . .
18

Marketing problems encountered by the farmers . . . . . . . . . . . . . . . . . . .
18

Suggested solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20

Marketing Channels of Farmers, Cooperative and Fiber
Industry Development Authority
iv

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Market channel/outlet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
Market pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Current selling price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Basis of pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Types of products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Reasons for choice of outlet of Cooperative
and FIDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23

Terms of disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Mode of payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Role and value added activities of
Cooperative and FIDA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Problems encountered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
Suggestions and perceived solutions by the
Cooperative and FIDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26

Respondents Profile of Raw Silk Buyers
Number of years in business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Market channel/outlet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
Market pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
Page
Current price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
Basis of pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
Disposal practices in raw silk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
Buyers reason for choice of outlet or buyers . . . . . . . . . . . . . . . . . . . . . .
28
Mode of payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
v

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Role and value added activities of raw silk buyers . . . . . . . . . . . . . . . . .
28
Requirements of raw silk buyers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
Problems encountered in marketing of raw silk . . . . . . . . . . . . . . . . . . . .
29
Perceived solutions/suggestions to solve the
problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
APPENDICES
Letter to Mayor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
Letter to Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39
Farmer Guide Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40
Cooperative Guide Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43
FIDA Guide Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46
Buyers of Raw Silk Guide Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49

vi

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1

INTRODUCTION

Background of the Study
Sericulture has been considered for long time as a subsidiary occupation in rural
areas; recent technological developments have made it possible to practice sericulture on
an intensive scale, producing greater profits than most of the agricultural crops. Finally, it
revealed that sericulture is being practiced both as a subsidiary crop under unfavorable
agro-based condition and highly paying crop, if necessary agricultural inputs can be
insured.
Cocoon production is done either by individual farmers or by farmers group who
tend the mulberry farms. Mulberry leaves are very important in sericulture industry. It is
the sole food of the silkworms which is responsible in producing silk fibers.


Raw silk yarns are woven into fabrics either in pure or in blended forms, while
some power loom and hand loom weavers engage in silk fabric production. Commercial
silk production is now taken under mostly by the organizations of the industry.
Production of silk is also under taken by government institutions like Philippine Textile
Research Institute (PTRI), and Fiber Industry Development Authority (FIDA) but these
are primarily intended for research and development purposes.


Middlemen specialize in marketing activities such as storing, sorting,
transporting, selling, and even processing while the farmers are left to concentrate in
production. Studying marketing activities allows us to weigh the losses, benefits and
flaws more efficiently and effectively. In addition, it also enables concerned and affected
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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2

individuals to improve their marketing practices in order to attain the maximum level of
income.

Kapangan sericulture farmers are the major producers of Sericulture products
(Cocoon and raw silk) in Benguet. To fully understand the marketing flow of sericulture
products from the place, it is important to determine where such products go to if the
products from farmers really meet the requirements of buyers, and if the buyers match the
requirements of their buyers as well.
Statement of the Problem

The study was conducted in order to answer the following questions:
1. What are the marketing channels for Kapangan sericulture products (cocoons and raw
silk)?

2. What are the roles and value-adding activities of each channel?

3. What are the requirements of each channel?
4. What are the abilities of suppliers/farmers to comply with requirements of buyers?
5. What are the marketing problems encountered and perceived solutions by the
sericulture farmers, reelers and buyers?


Objectives of the Study

Specifically, this study aims:
1. to trace the marketing channels of sericulture products (cocoons and raw silk),
2. to determine market price and basis of price in each channel level,
3. to determine mode of selling in each channel level,
4. to determine the role and value – adding activities of each channel,
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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3

5. to determine the requirements of each channel,
6. to determine the ability of supplies/ farmer to comply with the requirements of
buyers, and
7. to identify the marketing problems encountered and the perceived solutions by the
sericulture farmers, reelers, and buyers.

Importance of the Study

This study provides information and ideas that are relevant to the marketing
approaches involved in sericulture products. The government sectors, for instance should
provide some facts about this marketing channel of sericulture products (cocoon and raw
silk) such that measures and standards to be used will be formulated for the purpose
business. This may help prevent problems that might be encountered.

The results of the study are expected to provide information relevant for the
improvement of the over all marketing system of cocoon and raw silk. This will include
the designing of efficient distribution channels appropriate for cocoon and raw silk
marketing.

Furthermore, it presents ideas for the improvement of the marketing channel of
cocoon and raw silk so that economic gains of farmers are improved. It also promotes
understanding of the various marketing practices and help to find out how the existing
strategies can be improved so that they will be more effective.

Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Scope and Delimitation of the Study

This study covered the marketing channel of sericulture products (cocoon and raw
silk) from Kapangan farmers. This study was conducted on the month of January to
March 2008. The data or information was gathered through personal interview with the
use of structured interview schedule. The investigations covered the marketing channels
of sericulture products (cocoon and raw silk) from farmers to marketing.
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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REVIEW OF LITERATURE

Concept of Marketing

Marketing activities involved in getting goods from the producer concentrates on
determined needs and desires of the buyers. Marketing is the process by which sellers
find buyers and by which goods and services more from producers to consumers.

Glasser (1984) stated that marketing includes a list of major customers and a
weighed set of forces that can influence the demand on the part of major customers for
the product of the industry. Marketing practices arise primarily because of distance and
time variables. These variables require that goods be processed, transported and stored
that even the marketing mix considered where the industry determines, in response to
market, not only the product but also the prices, the channel of distribution, the market
place, and the promotion and advertising.

Pricing

Miranda (1997) pointed out that one of the most difficult problems confronting
manufacturers, executives and middlemen deals with the setting of prices of their
products, about the meaning of price, even though the concept is easy to define in
familiar terms. Price is the amount of money and other items with utility needed to
acquire a product. Pricing is such as fundamental economic consideration that it should
receive major emphasis in marketing research. This could measure market demand at
varying price levels.
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Another procedure is to relate completive sales volumes to competitive price on a
trend basis by observing the competitive share of the market obtained at various prices.
Middlemen can observe well the restrictive influences of higher prices or the expansive
influence of relatively low unit prices. A low- priced product of poor quality cannot
maintain a market the demands a higher quality.

Marketing Practices

Thompson (1951) mentioned that the efficient and effective marketing system,
from the farmer’s point of view, can induce production and will result in maximum return
after the deduction of the minimum marketing charges and farm cost. Knowledge of
marketing and its problems will help farmers make decisions that are important to him in
the operation of his farm, as a member of a particular group, as an intelligent citizen of
the country.

Marketing Effectiveness and Efficiency

Deanon (1975) stated that the distance from the producing center to the
establishment of market outlet create a major constraint in establishing an efficient
marketing system. Posadas (1971) also supported that effective marketing should allow
the smooth flow of the products and services from the producers to the end consumers.
Kohls and Downey (1972) quoted that effective and efficient marketing system from the
farmers point of view is one that will include production of products which when sold to
consumers will result in maximum returns. Furthermore, Pampolina (1975) added that
improvement in marketing connotes improvement in the communication, road networks
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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and transportation facilities, product handling, storage, processing and grading that
contributes to the efficient flow of commodities from producers to consumers.

Marketing Functions

Marketing functions are the process but which includes: first, the buying, selling
and pricing; second, the physical functions which includes the assembling, transport and
handling, storage, processing, packaging, grading and standardization; and third, the
facilitating functions covering the financing and risk bearing, market information,
demand and supply, creation and the market research.
Marketing is the process by which the sellers find buyers and by which goods and
services move from producers to consumers. Without the willingness to provide the
capital and to bear these costs, no stage of the market chain could function. Other
facilitating functions enable producers to respond to consumer needs and thus provide
goods in the locations quantity and form desired. Assembling or concentrating the
product at convenient points allows its economical transport. This is valuable function
that is often overloaded in the public perception of traders. They involve finding a buyer
or a seller, negotiating price and transferring ownership. These functions take place at the
“market” that is, the physical meeting point for buyers and sellers at the point of
production or via some other means of communication. At this point, formal or informal
property rights and to guarantee legality (e.g. those animals on sale were not stolen and
will not be reclaimed).
Physical functions enable the actual flow of commodities through space and time
from producer to consumer and their transformation to a form desirable to the consumer.
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Grading and standardization allow the consumer to be more confident of the
characteristics of the good being purchased. Financing and risk bearing are two important
facilitating functions (Anonymous, 2006).

Grading and Sorting
According to Kohl’s and Uhl (1989) sorting and grading of products depends
upon the quality standard that the buyers and sellers prefer, the range of quality to be
sorted and the relevance to sorting of consumer’s preferences. Grading is an important
function in marketing not only in providing the language for communication between
traders, producers, and consumers but it also serves as a basis for price differentiation
between traders, producers and consumers. It also minimizes losses and cost of
classifying the quality of the product. (De Ocampo, 1982 as cited by Chan 2004)
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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METHODOLOGY

Locale and Time of the Study
This study was conducted in selected sericulture production and marketing areas
in Kapangan, Benguet on February to March 2008.

Respondents of the Study

The respondents of the study were the individuals involved in selected sericulture
production (cocoon and raw silk) and marketing areas. A total of thirty eight respondents,
they were composed of 1 from the cooperative, one from FIDA, and three buyers of silk
were interviewed. The distributions were as follows:
1. Kapangan:


Nalbangan -1
Taba-ao -3
Poking -8
Cuba -15
Cabilisan -1
Tacal -1
Bolinsak -2
Bacatey -1
Pungayan -1
2. Cooperative -1
3. Fiber Industry Development Authority (FIDA) -1
4. Buyers of Silk


Aklan Buyers -1
Hungduan Ifugao/ Poking, Labueg, Kapangan -1
Nardas/ Km 5, La Trinidad -1




Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Research Instrument

The data was gathered through the use of structured personal interview guided
with the questionnaire. The interview schedule for farmers and reelers sought information
on buying process, type of buyers/ selling, manner of payment and distribution in outlet
choose, and marketing problems encountered.

Methods of the Data

Personal interview was used to gather information from the farmers, buyers and
other agency of the marketing channel.

Methods of Data Analysis

The data were tabulated and analyzed using frequency and percentage. They were
interpreted according to the listed objectives.


Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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RESULTS AND DISCUSSION

Farmer-Respondent’s Profile
Table 1 shows the distribution of the farmer respondents according to general
information.
Age. Most of the respondents (36.36%) are from aged 36-45 years old, this was
followed by 21.21% of the respondents with ages ranging from 36-45 years old. Some of
them (12.12%) have ages ranging from 25-35. Others (15.15%) are 56-65 years old, one
(3.03%) is below 25 years old and only one (3.03%) is 66 years old and above.
Educational attainment. As shown in Table 1, majority (57.58%) of the farmers
have reached or graduated from High school while some (24.24%) of the respondents are
elementary graduates and about (18.18%) of the respondents are college graduates or had
reached college level.
Number of household member. Table 1 also shows the number of member in the
respondent households. About (54.54%) of the respondents have five to eight (5-8) of
household members while (45.45%) of the respondents have below five household
members.
Number of years in farming in sericulture. Fifteen of the respondents (45.45%)
have spent one to five years in farming; ten of them (30.30%) have spent year in farming;
about seven of the respondents (21.21%) have six to ten years in farming and only one
(3.03%) has spent eleven to fifteen years in farming. He is the oldest farmer engaged in
sericulture.

Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Table 1. Distribution of farmer-respondents according to general information
GENERAL INFORMATION
FREQUENCY
PERCENTAGE
A. Age


Below 25
1
3.03
25 – 35
4
12.12
36 – 45
10
30.30
46 – 55
12
36.36
56 – 65
5
15.15
66 and above
1
3.03
TOTAL
33
100
B. Educational attainment


Elementary
8
24.24
Highschool
19
57.58
College
6
18.18
TOTAL
33
100
C. Total number of household members


Below 5
15
45.45
5 – 8
18
54.55
9 – 12
0
0.00
12 and above
0
0.00
TOTAL
33
100




Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Table 1. Continued…

GENERAL INFORMATION
FREQUENCY
PERCENTAGE
D. Number of years in farming


Below 1
10
30.30
1 – 5
15
45.45
6 – 10
7
21.21
11 – 15
1
3.03
15 and above


TOTAL
33
100
E. Tenure Status


- owner
27
81.81
- lease
10
30.30
* Multiple response


F. Membership in organization


KELMC 33
100
KASEFA 2
6.06
* Multiple response



Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
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Table 1. Continued…

GENERAL INFORMATION
FREQUENCY
PERCENTAGE
G. Place for Sericulture Production


Nalbangen
1
3.03
Cuba Proper
15
45.45
Bolinsak
2
6.06
Taba-ao 3
9.09
Cabilisan
1
3.03
Bacatey
1
3.03
Poking
8
24.24
Tacal 1
3.03
Pungayan
1
3.03
TOTAL 33
100

Farming operations. Table 1 also presents the (Tenure Status). It shows from the
table that majority (81.81%) of the respondents own their farm, while (30.30%) of the
respondents were leasing their land for farming.
Membership in organization. Table 1 also shows the distribution of the
respondents according to the name of organization in which the respondents belong. All
(100%) of the respondents were member of Kapangan Environmental Livelihood Multi-
Purpose Coop – Sericulture (KELMC-Sericulture) while 2 (6.06%) of the respondents
were members of “KASEFA.”
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
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Place for sericulture project. As shown in Table 1, most (45.45% of the
respondents lived in Cuba Proper. This was followed by (24.24%) of respondents who
are from Poking, (9.09%) of respondents who are from Taba-ao; (6.06%) respondents are
from Bolinsak, and the rest (3.03%) of the respondents are from Nalbangan, Cabilisan,
Bacatey, Tacay and Pongayan.
Farmer’s market outlet. All of the farmer-respondents sell their products to
KELMC-Sericulture. The respondents sell directly to cooperatives for the reason of less
transportation cost. Furthermore, farmer-respondents are allowed to deffloss and reel the
cocoon in the cooperatives.

Market pricing practices employed by the farmers. Table 2 shows the distribution
of the farmers-respondents according to market pricing practices employed to the
farmers.
Current price. Table 2 presents the market price of cocoon which is divided
according to classes: the current price of Class A is 130, class B is 100 and Class C is 80.
Thirty (100%) of the respondents obtained the Class A; moreover, twenty two of the
respondents’ (66.66%) also sell Class B and four (12.12%) at Class C. This result implies
that all of the farmer-respondents obtained class A with the current price of Php.
130.Although some still produce Classes B or C and have no other resource but to accept
lower prices.
Basis of pricing. As shown in Table 2, most of the respondents (96.96%) price
their cocoon according to the prevailing price of fresh cocoon at the KELMC –
Sericulture. Moreover, 33.33% of the respondents’ price their cocoon based on the
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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16

prevailing price of buyers of raw silk. The price set there fore by the cooperative is the
most popular basis of price by the farmers.
Types of products. As shown in Table 2, thirty three (100%) of the respondents
produce cocoon while seventeen (51.51%) of the respondents also produce raw silk
products. Hence, this implies that the farmers also have the option to produce raw silk
other than just selling cocoons.


Table 2. Market pricing as accepted by farmers and type of product
CURRENT SELLING PRICE
FREQUENCY PERCENTAGE
Cocoon

Class A Php. 130
33
100
Class B Php. 100
22
66.66
Class C Php. 80
4
12.12
Basis of Pricing


Price of Cooperative
32
96.96
Price of FIDA
0
0
Prevailing price of silk buyers
11
33.33
Types of products


Cocoon
33
100
Raw silk
17
51.51
* Multiple response




Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Table 3. Terms of disposal of cocoon
TERM OF DISPOSAL
FREQUENCY
PERCENTAGE
Picked-up
17
51.51
Delivered
5
15.15
Both
15
45.45
*Multiple response

Terms of disposal. Table 3 shows the term of disposal of cocoon by the farmers to
cooperative. Seventeen (51.51%) respondents say that buyers pick up the product from
them, five (15.15%) of the farmers delivered it to the cooperative and fifteen (45.45%)
used both pick-up and delivered items as term of disposal. This implies that the most
preferable practice by farmers is to wait for the buyers to pick it up from them in order to
save on time and effort.
Farmers reasons for choice of outlet. Table 4 shows the reason for the choice of
outlet. Majority (66.66%) choose convenience in order to save on time and work while
ten (30.30%) reasoned less transportation cost and seven (21.21) for cash payment of
buyer upon delivery.
This means that the most popular reason of farmers for their choice of outlet is the
convenience of disposing their product more than any other reason.
Mode of payment. All the farmer-respondents sold their products in cash upon
delivery. No advance payment and credit were accepted as mode of payment.

This further implies that farmers avoid financial risk by accepting cash payments
only.
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Table 4. Farmers reason for choice of outlet or buyers
REASONS FREQUENCY
PERCENTAGE
Convenience
22
66.66
High price
0
0
Less transportation cost
10
30.30
Cash on delivery
7
21.21
*Multiple response
Role and value-added activities of farmers. Table 5 presents the distribution of
respondents according to the role of farmers. All (100%) the farmers were engaged in
cocoon production, ten (30.30%) farmers sort their products, five (15.15%) do grading,
four (3.0%) do packaging, one (3.03%) does transporting and ten (30.30%) of the farmers
were engaged in reeling.
This means that most common value adding activity of farmers is the cocoon
production. Other value adding activities are not commonly done.
Marketing problems encountered by the farmers. Table 6 shows the marketing
problems encountered by the farmers. The most serious problem identified by thirty
(90.90%) of the respondents was the lack of financial assistance for production and
marketing. This was followed by twenty nine respondents (87.87%) who mentioned
prevention of insect pests and disease which results to the low production. Poor quality of
cocoon get a low market price. Fourteen (42.42%) of the respondents gave lack of price
information as a problem. Eleven (33.33%) of the respondents mentioned low market
value/price, six (18.18%) considered far from the road and thus affects the transportation
cost of the products.
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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19

The result implies that the most serious marketing problem identified by farmers
is the lack of financial assistance which results to low production of cocoons and low
market price received.

Table 5. Distribution of respondents according to role and value adding activities

ROLE OF FARMERS
FREQUENCY
PERCENTAGE
Cocoon production
33
100
Sorting
10
30.30
Grading
5
15.15
Packaging
1
3.0
Transporting
1
3.0
Reeling
10
30.30
*Multiple response


Table 6. Marketing problems encountered by the farmers.
MARKETING PROBLEMS
FREQUENCY
PERCENTAGE
Low market value/price
11
33.33
Lack of price information
14
42.42
Middlemen control over price
0
0
Prevention of insect pests and diseases
29
87.87
Lack of financial assistance
30
90.90
Far from the road thus high
6 18.18
transportation cost

*Multiple response
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Table 7. Solutions/suggestions to the problem encountered by the farmers
SUGGESTED SOLUTIONS
FREQUENCY
PERCENTAGE
Create financing agencies
31
93.93
Establish stable market
25
75.75
Create market price information center
23
75.75
Conduct more trainings
1
33.33
* Multiple response

Suggested solutions. Table 7 shows the suggested solutions to the problems
encountered by the farmers. Most of the respondents (93.93%) suggested creating
financing agencies, 25 (75.75%) said for establishing stable market; twenty three
(75.75%) suggested creating a market price information center; and only one (33.33%)
suggested for conduct of more trainings. The more urgent solution to farmers is hence the
creation of financing agencies and the improvement of market conditions.

Marketing Channels of the Farmers,
Cooperative and Fiber Industry
Development Authority

Market channels/outlet. The farmers sell their products to the cooperatives. The
cooperative then reel the cocoons to become raw silk and then sell to the FIDA.
Cooperatives can also direct the cocoons to the FIDA. The FIDA also reels the cocoon
then directly sells the raw silk products to the buyers through the help of cooperatives as
partnership with FIDA since the latter is involved in channeling and marketing linkages.
As shown in Figure 1, FIDA is engaged in buying cocoon and raw silk. The
market outlet for these products are Aklan buyer handled by Norma Quillano, Hungduan,
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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21

Ifugao and Poking, Labueg, Kapangan, buyers by Mr. Asao Shimura and lastly Narda
Capuyan from Km 5, La Trinidad, Benguet.

Market Pricing
Current selling price. Figure 1 also reveals the distribution of respondents
according to current price. The current price of cocoon Class A is 130, Class B is 100,
and Class C is 80. This was based on the prevailing market price of fresh cocoon through
the Kapangan Environmental Livelihood Multipurpose Coop-Sericulture (KELMC–
Sericulture) and with buyers of silk as well. Meanwhile the cooperatives raw silk
products sold to FIDA based on the prevailing market price (21 denier) which is
Php.1,950.00 per kilo. FIDA also sell the raw silk (21 denier) products to the buyers
which price is Php. 2,100 per kilo, then eventually the weavers are the final outlet.
Basis of pricing. Table 8 shows that the cooperative respondents based their
product price on prevailing market price of fresh cocoon, prevailing market price of raw
silk buyers (21 denier), cocoon shell percentage (CSP), while the FIDA varies the price
based it on visual, CSP and through visual, percent of reliability of raw silk and the return
on investment.
Types of products. Both of the cooperatives and Fiber Industry Development
Authority respondents were engaged in cocoon and raw silk products. Moreover, the
cooperatives more concentrate in cocoon products and few in raw silk while FIDA
engaged in more raw silk and few cocoon.




Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Farmer






Cocoon/kilo





Class A – Php. 130.00/kilo





Class B – Php. 100/kilo





Class C – Php. 80/kilo







Cooperative


Raw silk (21 denier) Cocoon /kilo
Php 1,950.00/kilo Class A – Php. 130/kilo
Class B – Php. 100/kilo





Class C – Php. 80/kilo



Fiber Industry Development Authority (FIDA)








Raw silk (21 denier)
Php.
2,100/kilo

Aklan Buyer
Mr. Asao Shimura
Km 5, La
–Mrs Norma
Trinidad, Benguet

Quillanao
- Narda Capuyan

•
•

Weavers
Weavers


Hungduan, Ifugao
Poking, Labueg,
• Weavers

Kapangan

• Weavers




Figure 1. Marketing channels of products (Cocoon and raw silk)
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Table 8. Distribution of respondents according to marketing channels of cooperatives and
Fiber Industry Development Authority (FIDA)

BASIS OF PRICING
COOPERATIVE
FIDA
FIDA prevailing price


Buyers of silk


Prevailing market price of fresh cocoons
×

Prevailing market price of raw silk (21 denier) buyers
×

Through visual
×
×
Cocoon shell percentage (CSP)

×
Percent (%) reelability of raw silk

×
Return on Investment

×
Types of products


Cocoon
×
×
Raw silk
×
×
* Multiple response

Reasons for choice of outlet of cooperative and FIDA. The distribution of
respondents according to the reasons for choosing buyers. The Cooperative based their
reasons for choice of outlet on the cash on delivery and for them to regain their
investment and prevent bankruptcy. FIDA is almost the same reasons for choice as
cooperative. The best reason is the cash on delivery basis. Convenience, high price, less
transportation, and credit are not chosen as reasons for choice of outlet.
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Table 9. Distribution of cooperative and FIDA respondents according to the term of
disposal

TERMS OF DISPOSAL
COOPERATIVE
FIDA
Picked-up ×
×
Delivered
×
×
Both/combination (way bill through bus, LBC)
-
×


Terms of disposal. As shown in Table 9, cooperatives employ two term of
disposal: picked-up so that they could minimize the hard ship and work of farmers and
delivered while FIDA employs three terms of disposal: picked-up, delivered and through
LBC or bus. The result implies that both pick-up and delivered were employed to
cooperative and FIDA and which is based on their agreement.
Mode of payment. The mode of payment practiced by the cooperatives is paid
cash upon delivery for the reason that for them to regain the transportation cost or their
investment. The FIDA have almost the same mode of payment to cooperative. The
advance payment before delivery and credit are not utilized as mode of payment.
Role and value added activities of cooperative and FIDA. In Table 10, it can be
gleaned that the role of cooperative were practiced in sorting, grading, packaging,
transporting and reeling. The FIDA have almost the same role and value added activities
of cooperative.


Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Table 10. Role and value added activities of cooperative and FIDA
ROLES COOPERATIVE
FIDA
Sorting
×
×
Grading
×
×
Packaging
×
×
Transporting
×
×
Reeling
×
×

Problems encountered. Some problems encountered by Cooperatives and FIDA in
marketing cocoon and raw silk are shown in table 11. For cooperatives the problem is
lack of financial assistance and insufficient supply of cocoons and raw silk while for
FIDA, it is the insufficient supply of cocoons. The market value/price, lack of
information, over supply are not considered as marketing problems of cooperative and
FIDA as present in questionnaire.


Table 11. Problems encountered by cooperative and FIDA in marketing of cocoon and
raw silk

MARKETING PROBLEMS
COOPERATIVE
FIDA
Low market value/price
-
-
Lack of price information
-
-
Lack of financial assistance
×
-
Over supply
-
-
Insufficient supply of cocoons and raw silk
×
×

Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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26

Suggestion and perceived solutions by the Cooperative and FIDA. Table 12
shows that some suggestions are given to lessen problems in marketing cocoons and raw
silk. Cooperatives suggested creation of financing agencies and increase of mulberry
production. Meanwhile, FIDA agreed to continuous giving of information and campaign,
increase mulberry plantation particularly in Benguet Province and building of rearing
houses for farmers who do not own rearing houses to rear silk worms.

FIDA suggests more solutions to improve the situation than the cooperative.

Respondents Profile of Raw Silk Buyers
Numbers of years in business. As shown in Table 13, most of the respondents
(66.67%) were engaged in raw silk marketing for a period of one to five years. While one
(33.33%) of the respondents was relatively new in silk buying business.

Table 12. Suggestion and perceived solution to the problems
SUGGESTIONS/SOLUTIONS COOPERATIVE
FIDA
Create financing agencies
×
-
Establish stable market
-
-
Create market price information center
-
-
Continuous information
-
×
Campaign to other farmers in the Province of Benguet
- ×

Increase number of boxes to rear
-
×
Rearing houses for the farmers
-
×
Increase mulberry production
×
×
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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27

Table 13. Distribution of respondents according to number of years in buying of silk
NUMBER OF YEARS
FREQUENCY
PERCENTAGE
Below 1 year
1
33.33
1-5 years
2
66.67
TOTAL 3
100

Market
channel/outlet. The buyers of raw silk responded that they are the raw silk
market outlet as well as admitted their role in weaving.

Market Pricing
Current price. The distribution of respondents according to market pricing. All of
the respondents are the same on prevailing market price of raw silk buyers which is Php.
2,100.00 per kilo.
Basis of pricing. All of the respondents based their pricing on the production cost
plus mark-up. The respondents reveal that the basis was the prevailing price of raw silk
(21 denier) within the market.
Disposal practices in raw silk. Table 14 shows the disposal practices in raw silk
by the respondents. The table provides the information that most of the respondents’
disposal practices are through delivery which has a percentage of (66.67%) while the
others were sent through LBC with the assistance of FIDA which has a percentage of
(33.33%). No buyers’ picked-up products sold, it is always delivered.

Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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28

Table 14. Disposal practices in raw silk (21 denier)
PARTICULAR FREQUENCY
PERCENTAGE
Term of disposal
0
0.00
Picked-up 0
0.00
Delivered
2
66.67
Thru LBC by the assistance of FIDA
1
33.33
TOTAL
3
100

Buyers reasons for choice of outlet or buyers. The reason for choice of outlet or
buyers is the cash payment upon delivery for the reason that the buyers could pay their
product immediately and prevent bankruptcy.
Mode of payment. All of the respondents were paid cash on delivery. Advance
payments before delivery and credit as selection in questionnaire were absolutely not
practiced by the buyers.
Roles and value added activities of raw silk buyers. The distribution of
respondents according to the roles of silk buyers. All the raw silk buyers were weavers
and all of them were the owner of the business. Thus, sorting, packaging, transporting
and reeling as present in the questionnaire are not their function.
Requirements of raw silk buyers. Table 15 presents the requirement of raw silk
buyers. It shows from the table that all (100%) of the respondents require 21 denier raw
silk, while (66.66%) of the respondents require dupion which is course yarn. Only one
(33.33%) went for volume of silk and 33.33% agreed to depend on orders.


Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Table 15. Distribution of respondents according to requirements of raw silk buyers
REQUIREMENTS FREQUENCY
PERCENTAGE
21 denier raw silk
3 100

Dupion 2
66.66
Volume of raw silk
1
33.33
Depends upon order
1
33.33
TOTAL
3
100
* Multiple response

The result implies that most favorable to buyers of raw silk respondents required a
21 denier than any others.
The marketing channels of sericulture products (cocoon and raw silk). The
channels of sericulture products presents the movement of products from farmer to
buyers using different channels. The farmers sell the cocoons to the cooperative then to
Fiber Industry Development Authority and to weavers. Mostly, the role of farmers is to
produce in which the products selling was channeled to the cooperative in order to follow
the processes of sorting, grinding, reeling and transporting. The Fiber Industry
Development Authority on the other hand is engaged in channeling or market linkages
which starts from Cooperative and channeled to the contact buyers.

Problems Encountered in Marketing of Raw Silk
Some of the problems encountered in the marketing of raw silk is shown in Table
16. The most common problem of the respondents (66.67) was the insufficiency of raw
silk. Low market value/price, lack of price information, lack of financial assistance and
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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30

over supply were out considered a problem by the buyers as present in the questionnaire.
The other respondents from Kalibo, Aklan do not have any suggestion which would be
attributed to the fact that they are still new members in business.

Perceived Solutions/Suggestions to Solve the Problems
Table 17 shows some solutions/suggestions to solve problems encountered in
marketing raw silk. It shows that the increase of mulberry plantations, number of rearing
houses and number of boxes to rear were the perceived/suggested solution by the
respondents. The other respondent does not have any suggestions.

Table 16. Problems encountered in marketing of raw silk
MARKETING PROBLEM
FREQUENCY
PERCENTAGE
Insufficient of raw silk
2
66.67
No response
1
33.33
TOTAL 3
100


Table 17. Perceived solutions/suggestions to solve the problems.
SUGGESTED SOLUTIONS
FREQUENCY
PERCENTAGE
Increase volume of production
1
33.33
Increase mulberry plantation and number
1 33.33
of rearing house and number of boxes to
rear

No response
1
33.33
TOTAL 3
99.99
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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31


In Figure 2 gleaned the role and value added activities of respondents in
channeling their products. From the farmer, they engaged in production, sorting, grading,
transporting, reeling then they channeled to cooperative. The cooperative involves in
sorting, cocoon deflossing, grading, packaging and transporting to FIDA. FIDA is also
involved in reeling cocoon, transporting, market linkages and especially channeling raw
silk products to the buyers such as Aklan buyer by Mrs. Norma Quilano, Mr. Asao
Shimura manager from Hungduan Ifugao and Poking Labueg, Kapangan and lastly Mrs.
Narda Capuyan from Km 5 La Trinidad, Benguet.

Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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32


Farmer






----- Production





----- Sorting


------grading


--------------
Transporting -----------------


Coop reeling machine
Cooperative

Reeling ----------------- reeled by farmers





Sorting ---------------
Cocoon --------------




-- raw silk
Deflosing ------------
Grading --------------
Packaging -----------
---------------- Transporting -------------------


Fiber Industry Development Authority (FIDA)

Thru: Fe G. Donato – Provincial Fiber Officer

Wangal La Trinidad, Benguet





- reeling





- transporting (way billing)
Channeling



--- transporting



transporting ---

Mr. Asao Shimura
Aklan buyer
Narda Capuyan

Mrs. Norma
Km. 5, La Trinidad,


-- weavers weavers --
Quillano
Benguet


transporting ---





-- transporting


Hungduan Ifugao
Poking, Labueg, Kapangan
Mr. Asao Shimura ------- weavers -------
Mr. Asao Shimura

Manager
Manager




Figure 2. Role and value added activities of respondents’ in channeling their products
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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33

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

Summary
The study specifically sought to trace the marketing channel for Sericulture
products from Kapangan, Benguet, to determine the market price and basis of price in
each channel level, the mode of selling in each channel level, the role and value adding
activities of each channel, the requirements of each channel, the ability of supplies/farmer
to comply with the requirements of buyers and to identify the marketing problems
encountered and the perceived solutions by the sericulture farmers, reelers and buyers.
Thirty-three farmers, one from cooperative, one from Fiber Industry Development
Authority and three buyers of silk were the respondents in the study. The data were
collected through personal interview guided with a structured questionnaire. After which,
the data were tabulated and analyzed using frequency and percentage. They were
interpreted according to the listed objectives.
The farmer-respondents sell their products to cooperatives because of
transportation cost and they are also allowed to defloss and reel the cocoon in the
cooperatives.
The pricing of the products is based on the prevailing price of fresh cocoon at the
Kapangan Environmental Livelihood Multipurpose Cooperative (KELMC) – Sericulture.
Moreover, it is based on cocoon shell percentage (CSP) visual and percentage reelability
of raw silk.
The term of disposal of products employed are both picked-up and delivered
items through LBC or bus.
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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34

The reason for choice of outlet for farmers is convenience in order to save work
and less transportation, meanwhile the Cooperatives, Fiber Industry Development
Industry, buyers of silk chose cocoon delivery.
In terms of mode of payments, all of the respondents’ products were being paid
upon delivery.
The farmers-respondents were engaged in cocoon production, sorting, practice
grading, transporting, reeling. The roles of Kapangan Sericulture Cooperative and FIDA
are almost the same, they practice sorting, grading, packaging, transporting and reeling.
The buyer’s role is weaving.
The dominant problems of the farmer’s respondents’ is lack of financial
assistance, prevention of insect pests and diseases which results to low production, lack
of price information, low market value/price. Some production areas were far from the
road and affect the transportation of the products, on the other hand, the cooperatives
problems are lack of financial assistance and insufficient supply of cocoons and raw silk
as well as insufficient supply of cocoons for FIDA. The most common problem of the
raw silk buyer-respondents’ is the insufficiency of raw silk.
Most of the farmer-respondents suggested the creation financing agencies,
establishment of stable market, creation market price information center and the conduct
of more training. Cooperatives also suggested the creation of financing agencies and
increase mulberry plantation while FIDA and buyers of silk gave the suggestions of
continuous giving of more information to the farmers, and increasing mulberry plantation
and rearing houses.

Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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35

Conclusions
Based on the findings of the study, the following conclusions were made:
1. There are marketing channels based on the market outlet and contract by the
farmers.
2. The reasons for choice of outlet by farmers were convenience in order to save
work and less in transportation cost as well as cash on delivery.
3. In terms of the value adding roles of farmers, some were engaged in sorting,
grading, packaging and transporting as well as reeling.
4. The most serious problems encountered by the farmers were lack of financial
assistance, and prevention of insect pests and diseases.
5. The marketing problems of the cooperative were lack of financial assistance
and insufficient supply of cocoons and raw silk.
6. The marketing problems of Fiber Industry Development Authority and buyers
of silk was the insufficient supply of cocoons and raw silk.
7. All respondents from the farmers to the buyers, base their price on prevailing
market prices.

Recommendations
Based on the findings and conclusions of the study, the following
recommendations were made:
1. The government should continue to provide technical support and assistance
to the farmers or producers to improve more the quality of cocoons and raw silk as well
as increase production.
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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36

2. To solve the problems of some respondents in marketing, the suggestions are:
create financing agencies in order to increase the mulberry plantation, to increase volume
of production, and to increase the number of rearing houses as well as for the buyers to
meet the requirements of each channel.
3. The marketing problems of the farmers can be solved through the support and
assistance of the government.
4. Further studies into the market of the industry are suggested to fully determine
the pricing mechanism at each stage and to really determine the state of coordination
between marketing actors in the industry’s marketing channel.
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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37

LITERATURE CITED


ANONYMOUS. 2006. Retrieved February 6, 2008, from http://en.wikepedia.org.
Marketing. The free encyclopedia

CHAN, R. S. 2004. Market Intermediary Practices and the Marketing of Selected Cut

Flower. B.S. Thesis. Benguet State University, La Trinidad, Benguet. Pp. 1, 21.

DEANON, J. 1975. Proceeding. The National Programs of Vegetable. P. 31.

GLASSER, R. 1984. Planned Marketing. London. Pan Books. Ltd. P. 7.

KOHLS, R.L. and W.D. DOWNY. 1972. Marketing of Agricultural Products. New York.

Mc Millan Publishing Corporation P. 17.

KOHLS, R.L. and J.N. UHL. 1989. Marketing of Agricultural Products 7th edition. New

Jersey, Eagle Woods, Cliffs, Prentice Hall. Pp. 7, 31-33.

MIRANDA, G.S. 1997. (revised ed.). Basic Marketing. L. and G. Business House

Publisher. Pp. 67-73; 278

PAMPOLINA, E. 1975. Proceeding. Fruits and vegetable and marketing, storage and

transportation problems and research requirements in Bicol. Vol. 3 Pp. 289,
301.

POSADAS, R.D. 1971. Wood Working as Exploitation. The Philippine Craftsman. A

Publication of Vocational Education College. P. 15.

THOMPSON, F. 1951. Agricultural Marketing. New York. Mc Graw-Hill Book Co. Pp.
36-39.

Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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38

APPENDIX A


Benguet State University
College of Agriculture
DEPARTMENT OF ENTOMOLOGY
La Trinidad, Benguet


March 7, 2008


HON. ROBERTO K. CANUTO
Mayor
Municipality of Kapangan

Thru: FE G. DONATO
Provincial Fiber Officer
Fiber Industry Development Authority
La Trinidad, Benguet

Sir:

Greetings of peace and good will!

I am Freddie B. Nabus, a fourth year student of Benguet State University taking up
Bachelor of Science in Agriculture major in Sericulture. I am presently conducting my
undergraduate thesis entitled, “MARKETING CHANNEL FOR SERICULTURE
PRODUCTS (COCOON AND RAW SILK) FROM KAPANGAN, BENGUET” in
partial fulfillment of the requirements leading to the degree.

In this connection, I would like to request your reputable office for assistance by allowing
me to conduct my study in Kapangan sericulture production. Moreover, may I also
administer my questionnaires to the farmers?

Rest assured that I will be furnishing your institution a copy of my thesis book upon
completion. The result of the study will surely be beneficial to sericulture production and
marketing especially in your municipality.

Your favorable response will be of great help and inspiration for me to finish my thesis.
Thank you very much.

Very truly yours,

FREDDIE B. NABUS
Researcher
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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39

APPENDIX B


Benguet State University
College of Agriculture
DEPARTMENT OF ENTOMOLOGY
La Trinidad, Benguet



Dear respondents:


I am a graduating student of Benguet State University taking up Bachelor of
Science in Agriculture major in Sericulture. As part of the course requirement, I am
presently conducting a research study titled, “MARKETING CHANNEL FOR
SERICULTURE PRODUCTS (COCOON AND RAW SILK) FROM KAPANGAN
BENGUET” in partial fulfillment of the requirement leading to the degree.


May I then request a portion of your precious time to answer the attached
questionnaire. Please give your honest answers for the success of this research. Rest
assured that all information you provide will be treated with utmost confidentiality.


Your cooperation to this questionnaire is highly appreciated.



Thank you very much.



Very truly yours,



FREDDIE B. NABUS
Researcher


Noted:


MARIA ANA C. TANYAG
Adviser
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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40

APPENDIX C

FARMER INTERVIEW SCHEDULE

Instruction: Please fill in the blanks/check and supply the needed information’s below:
I. General information
A.
Respondents
Name: ____________________ Age: __________
Sex: __________
Civil Status: _________ Educational attainment: _______________________
No. of Household member: __________ No. of years in farming: _________
B.
Farming Operation
Tenure Status: ( ) owner

( ) lease
( ) tenant
Name of organization (related to sericulture) _______________________________
Place _______________________________________________________________
C. Marketing Channels
1. Market outlet ( ) Coop ( ) FIDA ( ) others, specify
2. Market pricing

A. Current selling price


1. Class A_____ 2.Class B _____ 3. Class C_____

B. Basis of pricing
__________Price
of
COOPERATIVE
__________Price
of
FIDA


__________Prevailing price of silk buyers
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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41

__________Others,
specify_____________________________________



C. Types of products
__________Cocoon
__________Raw
silk
__________Others,
specify_____________________________________
3. Terms of disposal
_______Picked-up
_______Delivered
_______Both
_______Others,
specify______________
4. Reasons for choice of outlet and buyers

_______Convenience

________Cash on delivery
_______High
price
________Credit
tie-up

_______Less transportation cost

________Others, specify

5. Mode of payment

_______Paid cash upon delivery

_______Advance payment before delivery

_______Credit, specify terms ______

_______Others, specify ______
6. Role of farmers – value added activities
_______Cocoon
production
_______Sorting
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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42

_______Grading
_______Packaging
_______Transporting
_______Reeling
_______Others,
specify______________________________________________
7. Problems encountered in marketing of cocoon
_______Low
market
value/price

_______Lack of price information

_______Middlemen control over price

_______Prevention of insect pests and disease

_______Lack of financial assistance
_______Over
supply
_______Others,
specify_____________________________________________
8. What would you suggest to solve these problems?

_______Creates financing agencies

_______Establishes stable market

_______Create market price information center

_______Others, please specify ________________________________________




Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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43

APPENDIX D




COOPERATIVE GUIDE INTERVIEW


Instruction: Please fill in the blanks/check and supply the needed information’s below:
I. General information
Respondents
Name: ____________________ Age: __________
Marketing Channels
1. Market outlet ( ) FIDA ( ) others, specify_________________________
2. Market pricing

A. Current selling price


1. Class A_____ 2.Class B _____ 3. Class C_____


2. Raw silk ______

B. Basis of pricing
__________Price
of
COOPERATIVE
__________Price
of
FIDA


__________Prevailing price of silk buyers
__________Others,
specify_____________________________________

C. Types of products
__________Cocoon
__________Raw
silk
__________Others,
specify______________________________________
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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44

3. Terms of disposal
_______Picked-up
_______Delivered

_______Others,
specify______________
4. Reasons for choice of outlet and buyers

_______Convenience

________cash on delivery
_______high
price
________credit
tie-up

_______Less transportation cost

________others, specify


5. Mode of payment

_______Paid cash upon delivery

_______Advance payment before delivery

_______Credit, specify terms ______

_______Others, specify ______
6. Role of cooperative – value added activities
_______Cocoon
production
_______Sorting
_______Grading
_______Packaging
_______Transporting
_______Reeling
_______Others,
specify______________________________________________
7. Problems encountered in marketing of cocoon
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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45

_______Low
market
value/price

_______Lack of price information

_______Lack of financial assistance
_______Over
supply
_______Others,
specify
8. What would you suggest to solve these problems?

_______Creates financing agencies

_______Establishes stable market

_______Create market price information center

_______Others (please specify) __________
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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46

APPENDIX E

FIDA GUIDE INTERVIEW

No. of Household member: __________ No. of years in FIDA _________
Marketing Channels
1. Market outlet ____________________________________
2. Market pricing

A. Current selling price


1. Class A_____ 2.Class B _____ 3. Class C_____


2. Raw silk ______

B. Basis of price


B. Basis of pricing
__________Price
of
Weavers


__________Prevailing price of silk buyers
__________Others,
specify_____________________________________

C. Types of products
__________Cocoon
__________Raw
silk
__________Others,
specify
3. Terms of disposal
_______Picked-up
_______Delivered
_______Others,
specify______________
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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47

4. Reasons for choice of outlet and buyers

_______Convenience

________Cash on delivery
_______High
price
________Credit
tie-up

_______Less transportation cost

________Others, specify

5. Mode of payment

_______Paid cash upon delivery

_______Advance payment before delivery

_______Credit, specify terms ______

_______Others, specify ______
6. Role of FIDA – value added activities
_______Sorting
_______Grading
_______Packaging
_______Transporting
_______Reeling
_______Others,
specify______________________________________________
7. Problems encountered in marketing of cocoon and raw silk
_______Low
market
value/price

_______Lack of price information

_______Lack of financial assistance
_______Over
supply
_______Others,
specify
8. What would you suggest to solve these problems?
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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48


_______Creates financing agencies

_______Establishes stable market

_______Create market price information center

_______Others (please specify) __________







Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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49

APPENDIX F

BUYERS OF RAW SILK GUIDE INTERVIEW

Instruction: Please fill in the blanks/check and supply the needed information’s below:
Geographic Identification
Name of Respondents___________________________________________________
Business Address ______________________________________________________
No. of Household member: __________ No. of years in buying of silk ___________
Marketing Channels
1. Market outlet ____________________________________
2. Market pricing

A. Current selling price
___________________________________________________________

B. Basis of pricing
__________Price
of
Weavers


__________Prevailing price of silk buyers
__________Others,
specify_____________________________________
3. Terms of disposal
_______Picked-up
_______Delivered
_______Others,
specify______________
4. Reasons for choice of outlet and buyers

_______Convenience

________Cash on delivery
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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50

_______High
price
________Credit
tie-up

_______Less transportation cost

________Others, specify

5. Mode of payment

_______Paid cash upon delivery

_______Advance payment before delivery

_______Credit, specify terms ______

_______Others, specify ______
6. Role of buyers – value added activities
_______Sorting
_______Grading
_______Packaging
_______Transporting
_______Reeling

_______Weaving
_______Others,
specify______________________________________________
7. Requirements of raw silk buyers____________________________________
________________________________________________________________
8. Problems encountered in marketing of raw silk
_______Low
market
value/price

_______Lack of price information

_______Lack of financial assistance
_______Over
supply
_______Others,
specify_____________________________________________
Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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51

9. What would you suggest to solve these problems?

_______Creates financing agencies

_______Establishes stable market

_______Create market price information center

_______Others (please specify) _______________________________________



Marketing Channel for Sericulture Products (Cocoon and Raw Silk)
from Kapangan, Benguet / Freddie B. Nabus. 2008

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Document Outline

• Marketing Channel for Sericulture Products (Cocoon and Raw Silk) from Kapangan, Benguet
  • BIBLIOGRAPHY
  • ABSTRACT
  • TABLE OF CONTENTS
  • INTRODUCTION
  • REVIEW OF LITERATURE
  • METHODOLOGY
  • RESULTS AND DISCUSSION
  • SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
  • LITERATURE CITED
  • APPENDICES

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