BIBLIOGRAPHY DICLAS, MAGDALIN JUAN....
BIBLIOGRAPHY
DICLAS, MAGDALIN JUAN. APRIL 2009. Resource Management Practices of
“Bagsakan” Traders at La Trinidad Trading Post. Benguet State University, La Trinidad,
Benguet.
Adviser: Clifton D. Llanes, MSc.
ABSTRACT
The study intended to profile the “Bagsakan” traders; to describe the manner of
management of various trading resources in buying, selling and financing management
practices; their relationship between suppliers and buyers, and to come up with possible
recommendation.
There were 75 respondents out of a total of 210 operators at the “Bagsakan” area.
There were personally interviewed by the researcher with the use of interview guide. The
data collected were analyzed by tabulated and interpreted using statistical tools such as
frequency counts, measures of tendency, ranking and percentages.
With a mean age bracket of 31 to 40 years, the respondents were mostly females,
married and reached or finished college level.
The operator in “Bagsakan” area purchased their products mostly from contract
growers. They claimed that there is schedule on delivery of supplies. And the common
practices they employed were to pay upon delivery and cash advance. Grading is based
on size and class. The vegetables are sold in wholesale and retail basis. Furthermore,
prices are based on prevailing market price. The vegetable traded were mostly cucumber,
pepper, cauliflower, beans, lettuce, broccoli, chayote, leek onion and celery. On the other
hand, some major crops are trade to the buyer direct to the vehicles, or the may trade at
booth and Bahigawan area. The average volume bought and sold per day were differ by
commodity. And the highest volume bought and sold ranges from 200 to 2,500
kilograms. The purchase their products from various sources. And the major sources of
supplies were from Kibungan, Bakun, Mountain Province, La Trinidad, Kabayan and
Buguias. For November to April; Ilocos, Cervantes and Nueva Viscaya were added as
sources of supplies. Wherein, for May to October the plant palay as their majority crops.
The products destination either Metro Manila, Bicol, Samar, Cebu, Palawan, Ilo Ilo,
Baguio City, some part of Bataan, Davao, Naga City and Tacloban.
Price of vegetables depends on quality and size. Likewise, on supply and demand.
The buying prices differ by each type of commodity, the mean price ranges from P.50 to
P190.00 per kilogram. On the other hand, the selling price ranges from P1.00 to P200.00
per kilogram.
Among problems encountered was price fluctuation. The product problems
identified were poor quality because of high perishability and improper handling. High
transportation cost, unpredictable demand and supply, delay of payments and bouncing
check were also identified.
Recommendation suggest included in market information dissemination; price
control, proper handling, transport the products and its importance, crop programming,
and sell on cash basis only and do not accept check payment.
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TABLE OF CONTENTS
Page
Bibliography……………………………………………………………………... i
Abstract ………………………………………………………………………….
i
Table of Contents ………………………………………………………………..
iii
INTRODUCTION……………………………………………………………….
1
Background of the Study …………………………………………………..
1
Statement of the Study …………………………………………………….
3
Objective of the Study ……………………………………………………..
4
Importance of the Study ……………………………………………………
4
Scope and Limitation of the Study …………………………………………
5
REVIEW OF LITERATURE …………………………………………………...
6
Production Practices ………………………………………………………..
7
Marketing Practices ………………………………………………………...
7
Financial Management Practices …………………………………………...
8
Definition of Terms ………………………………………………………...
9
METHODOLOGY ………………………………………………………………
12
Locale of the Study …………………………………………………………
12
Respondents of the Study ……………………………………………………
12
Research Instrument …………………………………………………………
12
Method of Data Collection …………………………………………………..
12
Data Analysis ………………………………………………………………..
12
iii
RESULTS AND DISCUSSION ………………………………………………..
14
The Respondents ……………………………………………………………
14
Business Profile …………………………………………………………….. 16
Buying Practices …………………………………………………………….
18
Selling Practices ……………………………………………………………. 28
Financing Management Practices ……………………………………………
35
Relationship between Suppliers and Buyers ………………………………… 37
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ……………….
40
Summary …………………………………………………………………….. 40
Conclusions …………………………………………………………………...
42
Recommendations …………………………………………………………….
42
LITERATURE CITED ………………………………………………………….
44
APPENDIX ……………………………………………………………………...
46
A. Guide Questionnaire ………………………………………………………
46
iv
INTRODUCTION
Background of the Study
Resource is any physical or virtual entity of limited availability. In most cases,
ethic or commercial require factors require resources allocation through resource
management (Wikipedia the free Encyclopedia, undated).
Resource Management is the efficient and effective deployment of organization
resources when they are needed. Such resources may include financial management,
inventory, human resource management, production management, and information
management (Wikipedia the free Encyclopedia, undated).
Financial management is primarily concerned with the investment financing and
decisions. Investment decision making involves the preparation of long range plus and
budget for major investments such as plant extension and replacement of existing
production facilities (Rodriguez et al., 1998).
Inventory is a list for goods and materials, or those goods and materials
themselves, held available in stock by a business. It also hold in order to manage and hide
from the customer the fact that manufactured/ supply delay is longer than delivery delay,
and also to ease the effect of imperfections in the manufacturing process that lower
production efficiencies if production capacity strands idle for lack of materials
(Wikipedia the free Encyclopedia, undated).
Human resource management is the science of allocating human resources among
various projects or business goals; and performing the activities that are necessary in the
maintenance that workforce through identification of staffing requirement, planning and
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oversight of payroll and benefits, education and professional development and
administering their work-life needs (Wikipedia the free Encyclopedia, undated).
Production management wherein contracting is being used in many ways. One is
market specification contract. As the same implies, it is an agreement under which farm
inputs or products will exchanged at some specified future date at an agreed price (or
fairs for calculating the price). This contract specified the average that is to be grown, the
price per ton and some instances the delivery schedule. Another contract which provides
the same features as the market specification content, but in addition the farmer received
the technical advice and management services from the input or processors (Cadangen et
al., 1999).
Information management is the collection and management of information from one
or more sources and the distribution of that information to one or more audiences. This
sometimes involves those who have a stake in, or a right to that information (Wikipedia
the free Encyclopedia, undated).
Vegetable trading is a complex process. These involved the participation of so
many people and perform various services before it can reach the ultimate consumers.
The farmer’s role is to produce products like vegetables, and bring them to the market
with expectation of a good price. Traders take the goods as they buy the products and
resell the same to other traders for a profit. The buy and sell transaction of middlemen
involve cost and set mark-up price for the products. In addition, the performance of
marketing services also affects the product like decrease in weight which is considered as
a loss, packaging to containers and even the transportation. Marketing does not only
involve the buying price but also includes other items like labor, packaging, materials,
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transportation and others. The cost could mean added value to the product as it
transforms one buyer to another buyer (Daplian, 2001).
Vegetable wholesaling in Benguet have some factors affect directly or indirectly
the marketing strategies. The activities conducted can be considered as one of the most
significant factors in strengthening the marketing practices employed by wholesalers. The
marketing of farm products faces a number of special problems, problems that arises
from or due to the conditions surrounding production and the product themselves, the
marketing system and the traders. Furthermore, there are some variables that must be
considered in the whole process of achieving an efficient and effective marketing system
between the wholesalers, their functions, marketing arrangements, the sources of
vegetables and the quantity and quality of vegetables traded in the market. The vegetable
wholesale in the market are traders aim for higher profit, thus profit; incentives to the
market participants also affect the vegetable wholesale in the distribution of vegetables
(Tawali, 2006).
Statement of the Problem
This study centered its survey and analysis on resource management practices,
techniques or strategies of “Bagsakan” traders in La Trinidad Trading Post. Specifically,
this study wants to know the following:
Who are “Bagsakan” traders?
How “Bagsakan” traders manage their trade resources?
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Objectives of the Study:
Specifically, this study aimed to:
1. To profile the “Bagsakan” traders.
2. To describe the manner of management of various trading resources by the
“Bagsakan” traders as to;
a.
Buying practices
b.
Selling practices
c.
Financial management practices
d.
Relationship between supplier and buyer
Importance of the Study
The result of this research may provide basic information of the traders in making
important decisions regarding their buying, selling and financing their products. Other
concerned stockholder may also be guided in formulating policies to improve not only in
the physical facilities but also operators in the said market.
Thus, this study will serve as a guide to the local government to develop and improve the
system. Further, it will provide better understanding on “Bagsakan” traders, operations
and resource management practices. Knowing the problems of these traders would guide
government agencies and other institutions concerned to develop support system for such
traders and overall, improve the marketing system for vegetables.
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Scope and Limitation of the Study
The study was conducted on September to October 2008. Respondents of this
study were the trading post vegetable traders specifically those who have space occupants
in “Bagsakan” area of La Trinidad Trading Post. Traders who don’t have space in
“Bagsakan” as both owners and sidewalk vendors were not included so that retrieval of
questioners from them are expected not to be hard.
Respondents were asked of their sourcing and trading practices as will as their
management of financial resources.
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REVIEW OF LITERATURE
Vegetables are important commodities, which are the major producer of semi-
vegetables in the Philippines. Among the major vegetables being produced in the
highlands are carrots, cabbage, Chinese cabbage, potato, chayote, radish, beans, garden
peas, broccoli, cauliflower, lettuce(romaine and iceberg), celery, pepper(Chinese, bell,
and plastic), leek onions, cucumber and others. Vegetables cover almost 47,700 hectares
in the Province of Benguet. There are 600,000 metric tons of vegetables harvested yearly
(DA. CASCADE, undated) as cited by (Lugang-a, 2006).
Agayam (1996) stated that vegetable products are perishable in nature; it is
needed to have pre-marketing arrangement before harvesting to ensure its marketability.
The arrangement is done by the farmers and traders. Some farmers are engage in supply
system. In this practice, the wholesaler produces the farm inputs which the condition that
the produced vegetables will be submitted to the wholesaler or supplier. The supplier will
deduct the cost of farm inputs and surplus will be given to the farmers.
Darrah (1958) as cited by Estay (1997) claims that wholesalers play an important
role in moving products from the farm to the consumers. They are found in large towns
and cities. The wholesalers are specialized operators. They handle single crops, but some
are diversified handling more closely related products of vegetables and fruits. He added
that it is the characteristic of marketing in the Philippines that many wholesalers who in
turn sell still other wholesaler before the products are broken up into small quantities for
sale to an individual retailer which represent the final link in the marketing practices are
those operating in public markets.
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Miranda (1986) as cited by Ueda (2001) stated that since merchants and businessmen
purchase goods primarily for resale, proper care, skills and good relationship should be
exercised. The marketing services are performed by the middlemen from the time
products leave the farm until they are finally purchase by consumers.
Marketing is the process by which sellers find buyers and by which goods and
services move from producers to consumers (World Book, 1999). Marketing activities
involved in getting goods and services from the producer to consumer concentrates on the
buyers, or the consumers, determining their needs and desires, educating them with
regard to availability of the products and important products, features developing
strategies to persuade them to buy and finally, enhancing their satisfaction with purchase.
In addition, marketing is responsible for the physical distribution of the products,
determining the channels of distribution that will be used and for the profitable flow of
the goods (Encarta Encyclopedia, 2008).
Production Practices
Bangcado (1997) in her study that fruit and vegetables processors mostly employ
permanent labor because of the difficulty of employing contractual workers which could
be trusted. Furthermore, Cadangen et al. (1999) found out that entrepreneurs give salary
to their permanent workers based on the Philippine Wage law.
Marketing Practices
According to the study of Cadangen et al. (1999) that the enterprises priced their
products based on prevailing market price which was the simplest way of pricing the
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product. On the other hand, in order to maximize profits enterprises mostly base their
pricing on production cost plus a percentage mark-up of at least 5% as Tad-awan et al.
(1999) found in their study.
Financial Management Practices
Ag-agwa et al. (1999) found out in their study that enterprises took the risk of
trying their hands in business by using other people’s money to show that they can make
it despite of heavy responsibilities and challenges that awaits them. They felt it safe by
borrowing from their relatives because in the case of long delay of paying loans, they
cannot be counting the interest instead; they can pay when they have money. However,
Cadangen et al. (1999) found out in their study that enterprises financed the operations of
their industries though combination of owner contribution and loan because they were
fortunate enough to have been granted financial assistance from lending institutions.
Agricultural marketing has traditionally been the function of the private trading
sector within the contest of a free market system. The private sectors is a complex system
of market intermediaries who intersect in the buying, transporting, storing, processing
and financing of agricultural commodities. They also stressed that the attempts of
government intervention of agricultural marketing in the Philippines were based on the
stereotype assumption that the traders are exploiting the farmers (Sardino, 1982) as cited
by Agayam (1996).
Marketing channel refers to an inter-organizational system made up of a set of
interdependent institutions and agencies involved in the task of moving products from
their point of production to the point of consumption. A simple case of marketing channel
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with only one middlemen (Producer - - - - Retailer - - - - Consumer), as the market grows
and develops wholesaler – retailer or wholesaler might enter the channel and become
additional intermediaries in the movement of the product. These emergences of other
traders are explained by four logically related steps in an economic process, namely:
increasing efficiency of the process, adjusting the discrepancy of assortment, organization
of transaction and facilitation of the sorting and searching process Yarobe et al. (1981) as
cited by Ueda (2001).
Kalinangan (1992) as cited by Agayam (1996) in his specific local study that
marketing channel is specific local study of it showed that there, still exists the “harang”
system. “Harang” is a local term for blocking or intercepting. The farmer’s regular
distribution channels are wholesalers and wholesalers-retailers by financier/ supplier and
“harang” agents. These financier/ supplier and “harang” traders remained as main sources
of inputs and capital. However, the terms of a ride with those traders which price bid due
to loan payable of these traders, also courses to low return to the producers even though it
reduces the risk of market fluctuation the farmers observe the traditional practices of
sorting and grading their products based on the size, variety and quality of the products.
Definition of Terms
Bagsakan - trading of crops that must be classified according to classes and sizes
and crops that are sari-sari.
Trader - general term used for person engaged in the business is buying and selling
vegetables.
Trading - the buying and selling of goods and services.
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Wholesaler - refers to the trader who buy vegetables in large quantities to sell in
wholesaler or retailer basis.
Retailer - trader who directly sell to the consumer.
Wholesaler-wholesaler - trader who sell to the wholesaler on wholesale basis.
Wholesaler-retailer - trader who sell directly to the retailer on a wholesale basis.
Assembler-wholesaler - trader who buy from producer and contract-buyers,
assemble the products in large volume and transport them to the market center.
Agent-assembler - trader who assemble products and make mark-up price.
Marketing - buying and selling of vegetables and other functions that goes with it
like transport, grading, packaging, pricing and among others.
Middlemen - all types of traders who buy and sell vegetables.
Trucker-wholesaler - trader who buy vegetables in large volume and transport
them to the market center.
Institutional buyers - refer to supermarket, factory, hotels, restaurant and other
establishments that buy vegetables from the traders.
Consignment - term of selling wherein vegetables are goes to somebody who acts
as agent to sell with the agreement that he will take title to and pay for what he sells.
Harang-agent - middlemen who buy the products direct from type of suppliers
along the road and sell to other buyer or to their co-traders.
Contract grower - refer to the farmer who have existing agreement with the trader
were said stall provide inputs to their production activities then said farmers will be
selling their products to the traders or stall operators.
Suki - individuals who are regular supplier or regular buyer.
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Financier-wholesaler - traders who support farmers by providing loans or inputs
in their production activities.
Commission agent - trader who facilitate the product to be delivered to other
trade on commission basis and do not hold title to the products.
Symbols
W _ Wholesaler
R _ Retailer
AW _ Assembler-wholesaler
FW _ Financier-wholesaler
HA _ Harang agent
CW _ Contract-wholesaler
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METHODOLOGY
Locale of the Study
This study was concentrated on the resource management practices of “Bagsakan”
traders at La Trinidad Trading Post. Respondents are from the operators who having
permanent space.
Respondents of the Study
Respondents of this study were the “Bagsakan” operators who are occupying
permanent space in the “Bagsakan” area.
Research Instrument
An interview guide was used as a tool in gathering data and information.
Method of Data Collection
The researcher interviewed the respondents using an interview guide.
Data Analysis
All data were analyzed and tabulated using simple statistical tools such as
frequency counts, measures of tendency, ranking and percentages.
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RESULT AND DISCUSSION
The Respondents
The Department of Agriculture has opened regional “Bagsakan”. This is where
farmers can trade their crops by the help of middlemen. It is intended to serve as an
intermediate point of buy and sell vegetables to Northern Luzon consumers or bring it to
Southern Provinces and Cities. Out of 210 having space/ cubicle at the trading post
“Bagsakan” area. There were 75 respondents for this study. Table 1 presents the general
information of the respondents according to age, gender, civil status and their educational
attainment.
Age. Of the 75 respondents, 31 (41.33%) belong to the age bracket 31-40 years
old and 18 (24%) of them belong to the age bracket of 41-50 years old. Only few
respondents were age 51 and above or below 30 years old of age. Hence, most
respondents are more or less at their middle age with most older than 31 years but
younger than 50 years old.
Gender. Most 88% respondents are female which may indicate that most traders
in the “Bagsakan” area of the Trading Post are women.
Civil status. Most 90.67% of the respondents were married and only 5% claimed
to be single while 4% were widowed.
Highest educational attainment. Majority 54.67% of the respondents have
indicated that they have attained a college education while 38.67% have attained high
school and only 6.67 attained elementary. “Bagsakan“ area are dominated by those with a
higher level of formal education
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Table 1. General information of the respondents
PROFILE
FREQUENCY
PERCENTAGE
Age
21 and below
15
20.00
31-40
31
41.33
41-50
18
24.00
51 and above
11
14.67
TOTAL 75
100.00
Gender
Male
9
12
Female
66
88
TOTAL 75
100
Civil Status
Single
4
5.33
Married
68
90.67
Widowed
3
4.00
TOTAL 75
100.00
Highest educational attainment
Elementary
5
6.67
High school
29
38.67
College
41
54.67
TOTAL 75
100.00
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Table 2 presents the business profile of the respondents operation as to the nature
of its ownership and operations.
Type of business as to ownership. Most 76% of the respondents say that their
business is a sole proprietorship. Only 18 (24%) claim it to be a partnership. This implies
that the most common type of business as to ownership for traders in the “Bagsakan” area
is sole proprietorships.
Years of operations. Results show that 34 (45.33%) have been in the vegetable
trading business for 6-10 years and only 6 (8%) of the respondents have been operating
for more than 16 years. Most of the respondents have been operating for less than 10
years which implies that they are relatively new to the business.
Type of trader. Majority 37.33% engage as retailer, followed by wholesaler,
wholesaler/ retailer, wholesaler/ assembler-wholesaler, wholesaler/ financier-wholesaler,
contract wholesaler and only 10.67% engage as Wholesaler/ assembler-wholesaler/
financier-wholesaler. Result that Bagsakan area is preferable in retailing vegetable.
Number of workers. Majority 61.33% of the respondents claim to employ only
one laborer to help them in their business operations while 25 (33.33%) employ 2
workers. This may means that individual operations of traders in the Bagsakan area
require only a minimal amount of human labor to do their operations and that having
more than 2 workers is a rarity.
Membership to trade organizations. Majority 69.33% of the respondents claim
that they are members in any trade organization and only 30.67% are not members.
Result prior to members in related trade organization such as officer and member to
cooperative (MPC) that will help their operations.
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Average monthly net income (operations alone). Majority 66.67% of the
respondents in Bagsakan area earn a net income between Php6, 000 to Php10, 000 a
month. Only few respondents claim to earn a monthly net income more than Php11, 000.
Table 2. Business profile
BUSINESS PROFILE FREQUENCY
PERCENTAGE
Type of business
Sole Proprietorship
57
17
Partnership
18
24
TOTAL 75
100
Year in business
5 or less
24
32.00
6-10
34
45.33
11-15
11
14.67
16 or more
6
8.00
TOTAL 75
100.00
Type of trader
21
28.00
W
28
37.33
R
8
10.67
W/R
7
9.33
W/AW
3
4.00
W/AW/FW
4
5.33
W/FW/CW
4
5.33
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Table 2. Continued…
BUSINESS PROFILE
FREQUENCY
PERCENTAGE
W/R/FW/CW
TOTAL 75
100.00
Number of workers
1
46
61.33
2
25
33.33
3 or more
4
5.34
TOTAL 75
100.00
Member of any related trade organization
Member
52
69.33
Not member
23
30.67
TOTAL 75
100.00
Average monthly net income
P5,000 or less
6
8.00
P6,000-10,000
50
66.67
P11,000 or more
19
25.33
TOTAL 75
100.00
Buying Practices
The operator in “Bagsakan” area, bought and sold per day may differ by
commodity, and the highest volume bought and sold ranges from 200 to 2,500 kilograms.
The purchased their products from various sources, mostly from Kibungan, Bakun, Mt.
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Province, La Trinidad, Kabayan and Buguias. For November to April; Ilocos, Cervantes
and Nueva Viscaya were added as a source of supplies.
Buying price depends on the quality and size, differ buy each type of commodity,
the mean price ranges from P.50 to P190.00 per kilogram.
Tables 3 to 12 present the buying practices of the studies respondents. Table 3
shows the supplier choices or preferences of the respondents while table 4 presents the
vegetables commonly purchased and the volumes of their purchases. Table 5 shows the
method of acquisition of supplies; table 6 is about payment and basis for price for supply
acquired. Table 6 presents the basis of volume of supplies purchased. Table 7 shows what
the respondents do when the expected quality is not up to their standards, table 8 present
quality assurance issues of the respondents, table 9 is about the selection of the
vegetables quality, table 10 are the strategies to determined quality acquired, table 11
present quality assurance issues of the respondents, and table 12 the problem encountered
in buying vegetables.
Choice of supplier. Majority 66.67% and 60%, of the respondents respectively
prefer to acquire supplies from contract-suppliers and farmers. There were less
respondents acquiring supplies from other intermediaries such as wholesalers, harang -
agent, or even from commission agents. Financier-suppliers were the sources by the least
number of the respondents. The result implies that most “Bagsakan” area traders prefer to
source their supplies from contract-suppliers and farmers more than any other source.
Reasons for choice of supplier. Respondents gave various reasons for their choice
of suppliers. These ranged from the assurance of good quality 30.67%. The supplier
being a relative or friend 28%. Suppliers being trustworthy 29.33%, to the reason that
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they are regular suppliers 36% indicating a built or established relationship between the
trader and his supplier. However, there were no dominant reasons given for their choice
of supplier. It can be surmised though that such choices are commonly built on
established relations who may generate trust among the parties.
Table 3. Type of suppliers and the reason for preferring as suppliers
BUYING PRACTICES FREQUENCY
PERCENTAGE
Type of suppliers
Farmer
45
60.00
Wholesaler
25
33.33
Harang agent
20
26.67
Commission agent
20
26.67
Financier – supplier
15
20.00
Contract – supplier
50
66.67
Reasons for preferring as suppliers
Good quality
23
30.67
Relative/ friend
21
28.00
Regular supplier
27
36.00
Have trust
22
29.33
Accessibility
10
13.33
*multiple response
Vegetables purchased. Type of Vegetables Commonly Bought from the Sources.
Table shows the type of vegetables commonly traded by the operators. That 40
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respondents for assorted vegetables was the major crop traded, followed by pepper,
falling to cucumber, beans, cauliflower, broccoli, lettuce and chayote, leek onion and
celery is the least.
Average monthly volume (tons) bought from the sources. Table shows the
average monthly volume in tons bought from different sources of products. The finding
revealed that majority cucumber were bought having 76 tons per month, followed by
chayote having 69 tons per month, beans having 66 tons per month and the least were
celery having only 6 tons per month.
Table 4. Type of vegetables and the average monthly volume (tons) bought from the
sources
BUYING PRACTICES FREQUENCY VERAGE MONTHLY
VOLUME IN TONS
Type of vegetable
Cucumber
10
76.00
Pepper
13
61.00
Cauliflower
7
42.00
Beans
9
66.00
Lettuce
5
35.50
Broccoli
6
55.00
Chayote
5
69.00
Leek onion
3
14.00
Celery
2
6.00
Assorted vegetables
40
8.75
* multiple response
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
22
Acquiring products from the sources. The respondents bought products from the
sources 49.33% were by orders, followed by relying products sent by contract suppliers,
some also by canvassing products brought in the market. And others were through agent.
Medium communication with the supplier. Majority 64% negotiate their
transaction on personal negotiations. It was noted that 60% number of respondents did it
in the cell phone and only 16% did through agent. This indicated that the several traders
using medium of communication which were of course very important for hastens the
flow of commodities, thereby for minimizing possible losses.
Information requirements in negotiation. Most 45.33% claimed that there were
fixed schedule on when supplies delivered, followed to price, volume and have 24% to
quality as identified. These respondents preferred such schedule for they were given time
to process/ repack the said commodities. These en tact sacrifice that at least the
commodity was ready before buyers arrive.
Table 5. Acquiring products, negotiations and information’s negotiating suppliers
BUYING PRACTICES FREQUENCY PERCENTAGE
Acquiring products from the source
By order 37 49.33
Through agent 10 13.33
Through canvass on the products in the market 17 22.67
Rely on the products sent by
contract and financier-supplier 17 22.67
Resource Management Practices of “Bagsakan” Traders
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Table 5. Continued…
BUYING PRACTICES FREQUENCY PERCENTAGE
Information requirements in negotiation
Price 32 42.67
Volume 31 1.33
Quality 18 24.00
Schedule of delivery 34 45.33
*multiple response
Mode of paying vegetables from the suppliers. The common practice was to pay
their supplies upon delivery 54.61%. It was noted that several 32% were consigned and
deduct the cost of inputs in contract-suppliers. This means that at least the respondents
won’t realized losses from the consigned products and for the meantime they can use the
deducted payment for other purposes and financier-supplier mostly done to credit, then
after harvesting all the crop and deduct all the expenses before the get their share
according to their percentage agreement.
In Terms of Credit. Majority 60% allowed paying their products every other
deliver, some paid later in the day, others paid after 1 week and noted that 5% paid their
products after 1 month or until crops are all harvested. This is advantageous for the
respondents because they don’t need more capital in paying their supplies.
Basis of price. In terms of price, most 91.46% bought their products based on
prevailing market price. A noted 6.67% bought based on negotiated price 1.33% have
agreed fixed price that don’t change even if price fluctuate in the market.
Resource Management Practices of “Bagsakan” Traders
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Table 6. Mode of payment, payment on credit and basis of price from the supplier
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Mode of payment
Cash on delivery
41
54.67
Consignment
24
32.00
Deduct the cost of inputs
24
32.00
Credit
20
26.67
Payment on credit
Paid later in the day
5
25.00
Paid every other deliver
12
60.00
Paid after 1 week
2
10.00
Paid after 1 month/ crop harvested 1
5.00
Basis of price
Vegetables are price based on
prevailing market price
75
91.46
Price are being negotiated
5
6.67
We have agreed that fixed price
that don’t change even if price
fluctuate in the market
2
1.33
*multiple response
Volume ordered from the suppliers. Majority 52% of the respondent order
supplies based on the estimated demand for the day. Several 42.67 % orders depend on
the vegetable sent by the farmers. Some order extra stocks if ordered at lower price and
others agree daily fix order volume.
Resource Management Practices of “Bagsakan” Traders
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Table 7. Volume ordered from the suppliers
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Agree daily fixed order volume
13
17.33
Depend on the vegetables send by the
farmers
32
42.00
Order extra stock if order at lower price
21
28.00
Order are based on the estimated
demand for the day
38
52.00
*multiple response
Do when buy vegetable that is not the quality desired. Table shows that mostly
88% of the respondents accept but sell base on quality price, some says accept but never
buy again and others says reject but never buy again.
Table 8. Do when buy vegetable that is not the quality desired
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Accept but sell base on quality price
66
88
Reject but never buy again
3
4
Accept but never buy again
6
8
TOTAL
75 100
Quality of vegetables. The most common 60% quality of vegetables bought by the
respondent depend on the vegetables quality delivered by the suppliers, followed by the
combination of first and second class, it depends on size, order first class only, order
rumble. A noted that 10.67% order second class as respondents only preferred.
Resource Management Practices of “Bagsakan” Traders
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Table 9. Quality of vegetables
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Order first class only
15
20.00
Order second class only
8 10.67
Order first and second class
29
38.67
Order depend on size
26
34.67
Order rumble
11
14.67
Depend on vegetables quality delivered
45 60.00
*multiple response
Strategies to determine quality acquired. Table shows that majority 50.67%
inspect first the supplies delivered, followed by offering them better price, some says be a
good payer and other says to have a guaranteed profit.
Table 10. Strategies to determine quality acquired
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Offering better price
36
48.00
Guaranteed profit
19
25.33
Inspection of deliver supplies
38
50.67
Good payer
22
29.33
*multiple response
Often discuss the quality, price and volume with the regular suppliers. Mostly
70.67% discussed the quality, price and volume in every deliver, several were in weekly,
others were in monthly or twice a year and yearly depend on when the crop already are
harvested.
Resource Management Practices of “Bagsakan” Traders
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Table 11. Often discuss the quality, price and volume with the regular suppliers
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Weekly
26
34.67
Monthly
20
26.67
Twice a year (for financial supplier)
4
5.33
Yearly (for financial supplier)
6
8.00
Every deliver
53
70.67
*multiple response
Problems encountered in buying vegetables. The most common problem
encountered 85.33% by the respondents was the price fluctuation. Although they seldom
encountered losses during fluctuation. The impact of this problem was actually being
minimized by the consignment arrangement with their suppliers. Some encountered were
high transportation cost, other says because of unpredictable demand and supplies. A
noted that poor quality and inadequate supply were also identified.
Table 12. Problems encountered in buying vegetables
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Inadequate
supply
5 10.60
Poor
quality
18
24.00
Price fluctuate
64
85.33
Table 12. Continued…
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
28
BUYING PRACTICES
FREQUENCY PERCENTAGE
Unpredictable supply 20 26.67
Unpredictable demand
28
37.33
High transportation cost 52
69.33
Not exact weight
8 6.67
*multiple response
Selling Practices
The operator in “Bagsakan” area sell their products to different buyer and various
destination. The products destination either Metro Manila, Bicol, Samar, Cebu, Palawan,
Ilo Ilo, Baguio City, some part of Davao, Bataan, Naga City and Tacloban.
Table 13 to 20 presents the selling practices of the studies respondents. Table 13
shows the buyer choices or preferences of the respondents while table 14 present the
vegetable commonly disposed and the volume the were disposed. Table 15 is about
payment and credit collection, table 16 present the cleaning and grading products before
marketing, table 17 shows the pricing and the volume ordered, table 18 shows what the
respondents disposed the product that with signs of deterioration, table 19 is about the
class of the vegetable the buy, and table 20 shows the problems encountered in marketing
products.
Type of buyer. Majority 49.33% of the respondents sold their products to
wholesaler followed to retailer, commission agent, trucker-wholesaler and institutional
buyer. It was noted that most buyers were regular.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
29
Reasons for preferring as buyer. The primary reasons on why they preferred was
because they were regular buyer 36.00%. Several were in good payer, have trust and
relatives/ friends.
Table 13. Type of buyer and reasons for preferring as buyer
SELLING PRACTICES
FREQUENCY
PERCENTAGE
Type of buyer
Institutional buyer
21
28.00
Trucker-wholesaler 24
32.00
Commission agent
25
33.33
Wholesaler
37
49.33
Retailer
28
37.33
Reason for preferring as buyer
Good quality
23
30.67
Relatives/ friends
21
28.00
Regular buyers
27
36.00
Have trust
22
29.33
*multiple response
Average monthly volume in tons. Table shows the monthly volume in tons
commonly disposed to their different buyers. The finding revealed that cucumber has the
most volume disposed with 76 tons sold per month, followed by chayote, beans, pepper
and broccoli falling by cauliflower, lettuce, leek onion, assorted vegetables and the least
were celery.
Resource Management Practices of “Bagsakan” Traders
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Table 14. Type of vegetables and the average monthly volume disposed to the buyer
SELLING
FREQUENCY
AVERAGE MONTHLY
VOLUME IN T0NS
Type of vegetables
Cucumber
10
76.00
Pepper
13
61.00
Cauliflower
7
42.00
Lettuce
5
35.50
Broccoli
6
55.00
Chayote
5
69.00
Leek Onion
3
14.00
Celery
2
6.00
Assorted Vegetables
40
8.75
*multiple response
Mode of payment products to the buyers. The common practice they employed
was to sell cash 72%. It was noted that several 43% on credit, it was also practiced for
them to create a “suki”. Others on cash advance then fully paid upon pick-up, these are
done to new buyers to be sure that vegetables were be sold. Some were consigned
especially if with sign of deterioration and price is very low.
Credit collection. Majority 84% of the respondents paid their products every other
transaction 34.88%. Secondly, they paid their products after 1 week, followed by paying
later in the day. Others paid after 1 month or more depends on their agreement.
Resource Management Practices of “Bagsakan” Traders
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Table 15. Mode of payment products to the buyers and credit collection
SELLING PRACTICES
FREQUENCY PERCENTAGE
Mode of payment
Cash
54
72.00
Cash advanced then full paid upon pick-up
19
25.33
Consign
5
6.67
Credit
43
57.33
Credit collection
Collected later in the day
10
23.26
Collected every other transaction
15
34.88
Collected after 1 week
11
25.58
Collected after 1 month or more
7
16.28
*multiple response
Cleaning products before marketing. Majority (84%) of the respondents claimed
to clean their vegetables before marketing.
In order to attract more buyers. Some says it command better price. Only 16%
didn’t practice cleaning their products; as they say it was just a waste of time on their
part. Cleaning the products, hence, is important to most of the respondents to bring in
more sellers.
Grading products before marketing. Most (81.30%) of them practice grading to
facilitate easier selection of buyers. Compare to only 18.67% of them didn’t practice
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
32
grading which the reason was time consuming. This implied that grading helped the
respondents to dispose their products easily.
Table 16. Cleaning and grading products before marketing
SELLING PRACTICES
FREQUENCY
PERCENTAGE
Cleaning products before marketing
Clean products before marketing
63
84
Don’t clean before marketing
12
16
TOTAL 75
100
Reason for cleaning
Products attract more buyers
47
74.60
Products command better price
16
25.40
Grading products before marketing
Grading products before marketing
61
81.33
Don’t grade
14
18.67
TOTAL 75
100
Reasons for grading
Attract more buyers
13
21.31
Facilitate easier selection of buyers
48
78.69
Pricing products. In terms of price, mostly 93.33% sold their products based on
prevailing market price. A noted 10.67% sold their products based on the negotiated
price. And it was found out that there were 2.67% who agreed on fixed price that don’t
change even if price fluctuate in the market.
Volume ordered by regular buyer. Majority 57.33% of respondents ordered by
their regular buyer depends on their demand that day, some agreed on fixed volume. And
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
33
it was noted that except institutional buyer 16% order extra stocks that is easily
sold/disposed.
Table 17. Pricing products and volume ordered by regular buyer
SELLING PRACTICES
FREQUENCY PERCENTAGE
Pricing products
Price based on prevailing market
price
70
93.33
Price are being negotiated
8
10.67
Agreed fixed price that don’t change
even if price fluctuate in the market
2
2.67
Volume ordered by regular buyer
Agreed fixed order volume
17
22.67
Depends on the availability/level of
supply
23
30.67
Depends on their demand for the day
43
57.33
They order extra stocks that is easily
sold/disposed
12
16.00
*multiple response
Mode of disposing products with the signs of deterioration. Table 18, shows that
mostly 85.33% of the respondents sold their products with the signs of deterioration by
selling at lower price, several 57.33% for family consumption, some also give it free and
others throw away.
Resource Management Practices of “Bagsakan” Traders
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Table 18. Mode of disposing products with the signs of deteriorations
SELLING PRACTICES
FREQUENCY
PERCENTAGE
Sell at lower price
64
85.33
Throw away
5
6.67
Home consumption
43
57.33
Give it free
17
22.67
*multiple response
Quality of vegetables. The most common 90.67% quality of vegetables disposed
first class only. Several 72% were sold depend on size, followed by the combination of
first and second class, and 12% disposed rumble. A noted 9.33% disposed second class
only.
Table 19. Quality of vegetables
SELLING PRACTICES
FREQUENCY
PERCENTAGE
Sell first class only
68
90.67
Sell second class only
7
9.33
Sell first and second class
17
22.67
Sell depend on size
54
72.00
Sell rumble (mix class and size)
9
12.00
*multiple response
Problems encountered in marketing products. The most common problem
74.67% encountered by the respondents was the price fluctuation. This was the reason on
Resource Management Practices of “Bagsakan” Traders
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35
why sometimes they encountered losses, when price is going down unless vegetables are
all consignment. Several encountered delayed payment of buyers, some also not disposed
their products regularly. A noted that only 24% encountered poor quality of vegetables.
And 6.67% bouncing check payment.
Table 20. Problems encountered in marketing products
SELLING PRACTICES
FREQUENCY
PERCENTAGE
Unable to dispose all products regularly
27
36.00
Delayed credit payment
34
45.33
Poor quality of vegetables
18
24.00
Price fluctuation
56
74.67
Bouncing check
5
6.67
*multiple response
Financing Management Practices
The respondent has different strategies in financing their operation. Table 21 and
22 presents the financing management practices of the studies respondents. Table 21
shows the source of operating capital, sources of loan and the reasons why the preferring
of lending institution while table 22 presents the need additional capital.
Source of operating capital. Majority 53.33% of the respondents financed their
operation through their personal money. And 46.67% of the respondents through loan.
Source of loan. Majority 48.57% respondents loaned in private agency, followed
by friends and relatives. Some were from bank such as commercial bank, government
bank and few for rural bank.
Resource Management Practices of “Bagsakan” Traders
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Reason for choices of lending institutions. For the reason that mostly 24% were
accessible if needed, several 22.67% were no stringent collateral requirement, some
wanted to loan in banks for the reasons that interest is low and the duration of payment is
longer than in private agency. This was because most respondents wants immediately and
don’t have time to complete all requirements needed in the banks.
Table 21. Source of operating capital, source of loan and the reason for choices of
lending institutions
FINANCING MANAGEMENT PRACTICES FREQUENCY
PERCENTAGE
Source of operating capital
Owned
40
53.33
Loaned
35
46.67
TOTAL 75
100.00
Source of loan
Friends/ relatives/ neighbors
7
28.57
Rural bank
2
11.43
Commercial bank
5
25.71
Government bank
4
14.29
Private agency
17
48.57
Reason for choices of lending institution
No stringent collateral
17
22.67
Low interest
8
10.67
Longer duration of payment
10
13.33
Easily accessible
18
24.00
Resource Management Practices of “Bagsakan” Traders
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37
Need additional capital. Majority 69.33% of the respondents need additional
capital to finance farmers/suppliers, some 36% increase in level of operation and 16%
because purchased price increase.
Table 22. Need additional capital
FINANCING MANAGEMENT PRACTICES
FREQUENCY
PERCENTAGE
Increase in level of operation
27
36.00
Need to finance farmers/suppliers
52
69.33
Increase in purchase price
12
16.00
*multiple response
Relationship between Suppliers and Buyers
Table 23 and 24 shows the relationship of the studies respondents between
suppliers and buyers. Table 23 shows the loyalty and information shared with the supplier
while table 24 also shows the loyalty and information shared to the buyers.
Relationship between suppliers. Table shows the loyalty insurance of suppliers
that majority 58.67% of respondents were helping the supplier in acquiring their needed
resources; followed 57.33% of respondents were committed to the agreement.
Information shared to supplier. Majority 56% of the respondents informed to the
supplier for the availability of vegetables when it needs, followed by the good reputation
for vegetables quality. Several were informed vegetable deliver when required; some
were informed the adequate volume and wide range to choose from.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
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Table 23. Loyalty and kind of information shared with supplier
RELATIONHIP
FREQUENCY
PERCENTAGE
Loyalty with supplier
Offer higher price
43
57.33
Commitment to agreement
29
38.67
Helping them in acquiring their needed
resources
44
58.67
Kind of information shared with supplier
Availability of vegetables when it need
42
56.00
Adequate volume and a wide range
to choose from
9
12.00
Good reputation to supplier for
vegetables quality
43
54.67
Vegetables deliver when required
33
44.00
*multiple response
Relationship with buyers. The respondents were ensured the buyer that majority
57.33% helped them in acquiring their needed resources, followed by offering them
lower price and others were committed to agreement.
The information shared. Majority 56% of the respondent informed the availability
of vegetables. Several were informed good reputation to buyer for vegetables quality.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
39
Table 24. Loyalty and kind of information shared to buyer
RELATIONSHIP
FREQUENCY PERCENTAGE
Loyalty to buyer
Offer lower price
43
57.33
Commitment to agreement
29
38.67
Helping in acquiring their needed
resources
44
58.67
Kind of information shared
Availability of vegetables
42
56.00
Adequate volume and wide range to
choose from
9
12.00
Good reputation to buyer for vegetables
quality
41
54.67
Vegetable deliver when required
33
44.00
*multiple response
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
40
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to determine and give us information of the resource
management practices of “Bagsakan” traders at La Trinidad Trading Post. The
respondents were composed of 75 operators or traders. This study intended to profile the
“Bagsakan” traders; to describe the manner of management of various trading resources
in buying, selling, financing management practices; their relationship between suppliers
and buyers; to relate their manner of resource management to their profile, or and to
come up with possible recommendation.
The survey was conducted through personal interview with the aid of prepared
questionnaires. The gathered data were statistically analyzed by tabulated using
frequency counts, measure of tendency, ranking and percentages.
The respondents interviewed were composed of wholesaler (W), retailer (R),
wholesaler/ retailer, wholesaler/ assembler-wholesaler (AW), wholesaler/ assembler-
wholesaler/ financier-wholesaler (FW), wholesaler/ financier-wholesaler/ contract
wholesaler (CW) and wholesaler/ retailer/ financier-wholesaler/ contract wholesaler.
Majority of them belong to the age bracket of 31-40 years.
The mode of payment in buying their supplies was cash on delivery and cash
advance. Most of the respondents grade their products they bought. They classified their
crops bought in terms of size and class. Plastic and cartoons were used as their major
packing material for all crops. Out of the 75 respondents they sold their products at
wholesale and retail basis and priced is based on prevailing market price. However, if
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
41
when there were crops unsold in a day, the operator practiced selling the crops in the next
day at prevailing market price.
The respondents trade more than one crop. The vegetables traded were cucumber,
pepper, cauliflower, beans, lettuce, broccoli, chayote, leek onion and celery. On the other
hand, some major crops were not present at “Bagsakan” area because may either trade
direct to the vehicles from farm, or may trade at booth and Bahingawan area. The average
monthly volume bought and sold ranges from 200 to 2,500 kilograms a day.
Each of the traders classified earlier availed of the products they handled from
different sources of supply and according to type of traders. The sources of supplies come
from Kibungan, Bakun, Mountain Province, La Trinidad, Kabayan and Buguias. For
November to April, Ilocos, Cervantes and Nueva Viscaya were added as a source of
supplies. Wherein, from May to October these can not avail supplies because their major
crops were “palay”. They acquired their supplies from contract grower, farmer,
wholesaler, financier-wholesaler, “harang” agent, and commission agent. Their reason for
choosing market sources were because of better quality.
The products destination were either Metro manila, Bicol, Samar, Cebu, Palawan,
Ilo Ilo, Baguio City and some part of Bataan, Davao, Naga City and Tacloban.
These types of buyer were wholesaler, retailer, commission agent, trucker-wholesaler and
institutional buyer. And the primary reasons on why the preferred because they were
regular buyer.
The prices depend on the size and class of the vegetables send by the suppliers.
Likewise, on supply and demand, the buying price of vegetables traded was classified
according to each commodity per kilogram. The mean price ranges from P.50 to P190.00
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
42
per kilogram. On the other hand, the selling price ranges from P1.00 to P200.00 per
kilogram.
Conclusions
Based on finding on the study, the researcher arrived with the following
conclusions;
1. Price fluctuation
2. High perishability and improper handling of vegetables
3. High transportation cost
4. Unpredictable demand and supply
5. Delay of credit payments and bouncing checks
Recommendations
Based on the results, the following are recommended to minimize problems and
needs incurred by the “Bagsakan” traders;
1. Prices changes according to the supply of vegetables entering in Trading Post
because no stable price in the day. Thus, those who have bought their supply in a high
price but supply increases after, the selling price decreases. Then traders affected as to
every hour.
2. The trading center should conduct an orientation/ seminar for traders and
farmers of perishable products on how proper handling must be. In that way, they will
use the skills they learned from the seminar that would help them minimize losses.
3. To compensate the transportation cost, the products must transport to its
importance.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
43
4. Dissemination of daily market information and crop programming should be
established. For better commitment, form the trading center and other government
agencies to provide efficient and effective market information system
5. Must sell their products on cash basis only and do not accept check payments
in order to avoid delaying payments and to escape for their responsibilities.
Resource Management Practices of “Bagsakan” Traders
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marketing of selected highland vegetable. BS Thesis. Benguet State University, La
Trinidad, Benguet. Pp. 5-6.
WIKIPEDIA, THE FREE ENCYCLOPEDIA. 2008. Microsoft Internet Explorer.
Resource Management Practices of “Bagsakan” Traders
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WORLD BOOK. 1999. The World Book Encyclopedia, Chicago, London, Sydney. Scott
Fetzer Company. Pp. 214.
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APPENDIX
Guide Questionnaire
This research aims to investigate the vegetable traders. All information will be
treated with confidentiality. Please answer the questions honestly by fill-up the blank and
by putting / (check) mark in the appropriate space provided for. Thank you very much!
I. General Information
A. Name of trader: ____________________
B. Type of trader: ( ) Wholesaler
( ) Retailer
(
)
Wholesaler/retailer
( ) Wholesaler/assembler-wholesaler ( ) Wholesaler/assembler-
wholesaler/financier
-wholesaler ( ) Wholesaler/financier-wholesaler/contract-wholesaler
( ) Wholesaler/retailer/financier-wholesaler/contract-wholesaler
C. Age:
Gender:
Civil Status: ___
D. Highest Educational Attainment: _____
E. Years in vegetable trading:
F. Type of business: ( ) Sole proprietor
( ) Partnership
G. Number of worker(s) you have: ___
H. Are you a member of any organization related to your trade?
( ) Member
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( ) Not member
If member, please specify____
I. Average monthly income from vegetable trading:
J. Other source(s) of income: ____________
II. Buying Practices
A. Please indicate the type of vegetables you trade, the source and the
volume required per month. Under type of supplier just put number only ( 1.
Farmer, 2. Wholesaler, 3. Harang agent, 4.Commission agent, 5. Financier-
supplier, and 6. Contract- supplier).
Type of Vegetable Type of Supplier Average Monthly Volume
(tons)
_________________
___________________
__________________________ _________________
___________________ __________________________
_________________
___________________
__________________________
_________________ ___________________
__________________________
_________________
___________________
__________________________
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_________________
___________________
__________________________
_________________
___________________
__________________________
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B. What are the reasons for preferring them as supplier?
( ) Good quality of products
( ) Relative / friend
( ) Regular suppliers
( ) Have trust
( ) Easily accessible
( ) Others, please specify _______________
C. How do you acquire products from the sources?
( ) By order
( ) Through agent
( ) Through canvass on the products brought in the market
( ) Rely on the products sent by contract/ financier-suppliers
( ) Others, please specify _______________
D. Medium of communication with the supplier and buyer
( ) Personal negotiation
( ) Through cell phone or telephone
( ) Through agent
( ) Others, please specify _______________
E. Information requirements in negotiation
( ) Price
( ) Volume
( ) Quality
( ) Schedule of delivery
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( ) Others, please specify _______________
F. Mode of payment
( ) Cash on delivery
( ) Consignment
( ) Partial payment upon delivery
( ) Deduct the cost of inputs (for contract suppliers)
( ) Credit
( ) Others, please specify _______________
If credit, what is/ are the trends
( ) Paid later in the day
( ) Paid every other day
( ) Paid after 1 week
( ) Paid after 1 month/ crop harvested
G. Basis of prices
( ) Vegetables are priced based on prevailing market price
( ) Prices are being negotiated / haggled
( ) We have agreed fixed price that don’t change even if price fluctuate in the
market
( ) Others, please specify _______________
H. Volume ordered from your supplier
( ) We have agreed daily fixed order volume
( ) Depend on the vegetable send by the farmers (for contract growers)
( ) We order extra stocks if ordered at lower price
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( ) Volume ordered are based on the estimated demand for the day
( ) Others, please specify _______________
I. Quality of vegetables
( ) We order first class only
( ) We order second class only
( ) We order first and second class
( ) We order depend on size
( ) We order rumble (mix class and size)
J. What do you do when you buy vegetable that is not as the quality
specified/ desired?
( ) Accept but sell base on quality price
( ) Reject but never buy again
( ) Accept but never buy again
( ) Others, please specify _______________
K. Strategies to determine quality acquired
( ) Offering better price
( ) Guaranteed profit
( ) Inspection of delivered supplies
( ) Good payer
( ) Others, please specify _______________
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L. How often do you discuss the quality and volume with your regular
supplier(s)
( ) Weekly
( ) Monthly
( ) Twice a year (for financier-supplier)
( ) Yearly (for financier supplier)
( ) Others, please specify _______________
M. Problems encountered in buying vegetables
( ) Inadequate supply
( ) Poor quality ( rumble delivered )
( ) Price fluctuation
( ) Unpredictable supply
( ) Unpredictable demand
( ) High transportation cost
( ) Not exact weight ( hangin )
( ) Others, please specify _______________
III. Selling Practices
A. Per type of vegetable, please indicate the average monthly volume in
kilograms you are selling or disposing with the buyer (if type of buyer just put
number only as
1. Institutional buyer {supermarket, factory, hotel and restaurant}, 2. Trucker-
wholesaler, 3. Wholesaler, 4. Retailer and 5. Commission agent ).
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Type of Vegetable Type of Buyer Average Monthly Volume
(tons)
_________________
___________________
__________________________ _________________
___________________ __________________________
_________________
___________________
__________________________
_________________
___________________
__________________________
_________________
___________________
__________________________
_________________
___________________
__________________________
_________________
___________________
__________________________
B. What are the reasons for preferring them as buyer?
( ) Good payer
( ) Regular buyer
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( ) Relative/ friend/ neighbor
( ) Have trust
( ) Others, specify _______________
C. Mode of payment (except for direct consumer)
( ) Cash on delivery
( ) Cash advance then full paid upon pick up
( ) Consignment
( ) Partial payment
( ) Credit
If credit, what is/ are the trends?
( ) Collect later in the day
( ) Collect every other transaction
( ) Collect after one week
( ) Collect after 1 month or more
D. Do you clean your products before marketing?
( ) Clean
( ) Not clean
Reason for cleaning
( ) Products are more attractive to buyers
( ) Products command better price
( ) Others, please specify _______________
E. Do you practice grading?
( ) grade
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( ) Not grade
Reason for grading
( ) Attracts more buyers
( ) Facilitates easier selection by buyers
F. How products are being priced?
( ) Vegetables are priced based on the prevailing market price
( ) Price are being haggled / negotiated
( ) We have agreed fixed prices that don’t change even if price fluctuate in the
market
( ) Others, please specify _______________
G. Determined the volume ordered by your regular buyers/ suki?
( ) We have an agreed daily fixed order volume
( ) Depends on the availability/ level of my supply
( ) Depends on their demand for the day
( ) They order extra stocks that is easily sold/ disposed
( ) Others, please specify _______________
H. How do you dispose of the products with signs of deterioration?
( ) Sell at lower price
( ) Throw away
( ) For home consumption
( ) Give it free
I. Quality of vegetables
( ) We sell first class only
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( ) We sell second class only
( ) We sell first class and second class
( ) We sell depend on size
( ) We sell rumble (mixed quality and size)
( ) Others, please specify _______________
J. How do you dispose the products with signs of deteriorations?
( ) Sell at lower price
( ) Throw away
( ) For home consumption
( ) Give it free
K. Problems encountered in marketing products
( ) Unable to dispose all my products regularly
( ) Delayed credit payment
( ) Poor quality of vegetables to be sold
( ) Price fluctuation
( ) Bouncing check
( ) Others, please specify ______________
IV. Financial Management Practices
A. Source of operating capital
( ) Owned
( ) Loaned
If loaned, source(s) of loan
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( ) Friends/ Relatives/ Neighbors
( ) Rural banks
( ) Commercial Banks
( ) Government Banks
( ) Private Agency
( ) Others, please specify _______________
B. Reasons for choice of lending institutions
( ) No stringent collateral requirement
( ) Low interest
( ) Longer duration of payment
( ) Accessibility
( ) Others, please specify _______________
C. What instances would you need additional capital?
( ) Increase in level of operation
( ) Need to finance type of suppliers
( ) Increase in purchase price
( ) Others, please specify _______________
V. Relationship between supplier and buyer
A. Relationship with supplier
1. How do you ensure the loyalty of your supplier?
( ) Offer higher price
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( ) Commitment to agreement
( ) Helping them in acquiring their needed resources
( ) Others, please specify _______________
2. Kind of information shared
( ) Availability of vegetables when it needs
( ) Adequate volume and wide range to choose from
( ) Good reputation as supplier for vegetables quality
( ) Vegetables deliver when required
( ) Others, please specify _______________
B. Relationship to buyer
1. How do you ensure the loyalty of your buyer?
( ) Offer lower price
( ) Commitment to agreement
( ) Helping them in acquiring their needed resources
( ) Others, please specify _______________
2. Kind of information shared
( ) Availability of vegetables when it needs
( ) Adequate volume and wide range to choose from
( ) Good reputation as buyer for vegetables quality
( ) Vegetables deliver when required
( ) Others, please specify _______________
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DICLAS, MAGDALIN JUAN. APRIL 2009. Resource Management Practices of
“Bagsakan” Traders at La Trinidad Trading Post. Benguet State University, La Trinidad,
Benguet.
Adviser: Clifton D. Llanes, MSc.
ABSTRACT
The study intended to profile the “Bagsakan” traders; to describe the manner of
management of various trading resources in buying, selling and financing management
practices; their relationship between suppliers and buyers, and to come up with possible
recommendation.
There were 75 respondents out of a total of 210 operators at the “Bagsakan” area.
There were personally interviewed by the researcher with the use of interview guide. The
data collected were analyzed by tabulated and interpreted using statistical tools such as
frequency counts, measures of tendency, ranking and percentages.
With a mean age bracket of 31 to 40 years, the respondents were mostly females,
married and reached or finished college level.
The operator in “Bagsakan” area purchased their products mostly from contract
growers. They claimed that there is schedule on delivery of supplies. And the common
practices they employed were to pay upon delivery and cash advance. Grading is based
on size and class. The vegetables are sold in wholesale and retail basis. Furthermore,
prices are based on prevailing market price. The vegetable traded were mostly cucumber,
pepper, cauliflower, beans, lettuce, broccoli, chayote, leek onion and celery. On the other
hand, some major crops are trade to the buyer direct to the vehicles, or the may trade at
booth and Bahigawan area. The average volume bought and sold per day were differ by
commodity. And the highest volume bought and sold ranges from 200 to 2,500
kilograms. The purchase their products from various sources. And the major sources of
supplies were from Kibungan, Bakun, Mountain Province, La Trinidad, Kabayan and
Buguias. For November to April; Ilocos, Cervantes and Nueva Viscaya were added as
sources of supplies. Wherein, for May to October the plant palay as their majority crops.
The products destination either Metro Manila, Bicol, Samar, Cebu, Palawan, Ilo Ilo,
Baguio City, some part of Bataan, Davao, Naga City and Tacloban.
Price of vegetables depends on quality and size. Likewise, on supply and demand.
The buying prices differ by each type of commodity, the mean price ranges from P.50 to
P190.00 per kilogram. On the other hand, the selling price ranges from P1.00 to P200.00
per kilogram.
Among problems encountered was price fluctuation. The product problems
identified were poor quality because of high perishability and improper handling. High
transportation cost, unpredictable demand and supply, delay of payments and bouncing
check were also identified.
Recommendation suggest included in market information dissemination; price
control, proper handling, transport the products and its importance, crop programming,
and sell on cash basis only and do not accept check payment.
ii
TABLE OF CONTENTS
Page
Bibliography……………………………………………………………………... i
Abstract ………………………………………………………………………….
i
Table of Contents ………………………………………………………………..
iii
INTRODUCTION……………………………………………………………….
1
Background of the Study …………………………………………………..
1
Statement of the Study …………………………………………………….
3
Objective of the Study ……………………………………………………..
4
Importance of the Study ……………………………………………………
4
Scope and Limitation of the Study …………………………………………
5
REVIEW OF LITERATURE …………………………………………………...
6
Production Practices ………………………………………………………..
7
Marketing Practices ………………………………………………………...
7
Financial Management Practices …………………………………………...
8
Definition of Terms ………………………………………………………...
9
METHODOLOGY ………………………………………………………………
12
Locale of the Study …………………………………………………………
12
Respondents of the Study ……………………………………………………
12
Research Instrument …………………………………………………………
12
Method of Data Collection …………………………………………………..
12
Data Analysis ………………………………………………………………..
12
iii
RESULTS AND DISCUSSION ………………………………………………..
14
The Respondents ……………………………………………………………
14
Business Profile …………………………………………………………….. 16
Buying Practices …………………………………………………………….
18
Selling Practices ……………………………………………………………. 28
Financing Management Practices ……………………………………………
35
Relationship between Suppliers and Buyers ………………………………… 37
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ……………….
40
Summary …………………………………………………………………….. 40
Conclusions …………………………………………………………………...
42
Recommendations …………………………………………………………….
42
LITERATURE CITED ………………………………………………………….
44
APPENDIX ……………………………………………………………………...
46
A. Guide Questionnaire ………………………………………………………
46
iv
INTRODUCTION
Background of the Study
Resource is any physical or virtual entity of limited availability. In most cases,
ethic or commercial require factors require resources allocation through resource
management (Wikipedia the free Encyclopedia, undated).
Resource Management is the efficient and effective deployment of organization
resources when they are needed. Such resources may include financial management,
inventory, human resource management, production management, and information
management (Wikipedia the free Encyclopedia, undated).
Financial management is primarily concerned with the investment financing and
decisions. Investment decision making involves the preparation of long range plus and
budget for major investments such as plant extension and replacement of existing
production facilities (Rodriguez et al., 1998).
Inventory is a list for goods and materials, or those goods and materials
themselves, held available in stock by a business. It also hold in order to manage and hide
from the customer the fact that manufactured/ supply delay is longer than delivery delay,
and also to ease the effect of imperfections in the manufacturing process that lower
production efficiencies if production capacity strands idle for lack of materials
(Wikipedia the free Encyclopedia, undated).
Human resource management is the science of allocating human resources among
various projects or business goals; and performing the activities that are necessary in the
maintenance that workforce through identification of staffing requirement, planning and
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oversight of payroll and benefits, education and professional development and
administering their work-life needs (Wikipedia the free Encyclopedia, undated).
Production management wherein contracting is being used in many ways. One is
market specification contract. As the same implies, it is an agreement under which farm
inputs or products will exchanged at some specified future date at an agreed price (or
fairs for calculating the price). This contract specified the average that is to be grown, the
price per ton and some instances the delivery schedule. Another contract which provides
the same features as the market specification content, but in addition the farmer received
the technical advice and management services from the input or processors (Cadangen et
al., 1999).
Information management is the collection and management of information from one
or more sources and the distribution of that information to one or more audiences. This
sometimes involves those who have a stake in, or a right to that information (Wikipedia
the free Encyclopedia, undated).
Vegetable trading is a complex process. These involved the participation of so
many people and perform various services before it can reach the ultimate consumers.
The farmer’s role is to produce products like vegetables, and bring them to the market
with expectation of a good price. Traders take the goods as they buy the products and
resell the same to other traders for a profit. The buy and sell transaction of middlemen
involve cost and set mark-up price for the products. In addition, the performance of
marketing services also affects the product like decrease in weight which is considered as
a loss, packaging to containers and even the transportation. Marketing does not only
involve the buying price but also includes other items like labor, packaging, materials,
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transportation and others. The cost could mean added value to the product as it
transforms one buyer to another buyer (Daplian, 2001).
Vegetable wholesaling in Benguet have some factors affect directly or indirectly
the marketing strategies. The activities conducted can be considered as one of the most
significant factors in strengthening the marketing practices employed by wholesalers. The
marketing of farm products faces a number of special problems, problems that arises
from or due to the conditions surrounding production and the product themselves, the
marketing system and the traders. Furthermore, there are some variables that must be
considered in the whole process of achieving an efficient and effective marketing system
between the wholesalers, their functions, marketing arrangements, the sources of
vegetables and the quantity and quality of vegetables traded in the market. The vegetable
wholesale in the market are traders aim for higher profit, thus profit; incentives to the
market participants also affect the vegetable wholesale in the distribution of vegetables
(Tawali, 2006).
Statement of the Problem
This study centered its survey and analysis on resource management practices,
techniques or strategies of “Bagsakan” traders in La Trinidad Trading Post. Specifically,
this study wants to know the following:
Who are “Bagsakan” traders?
How “Bagsakan” traders manage their trade resources?
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Objectives of the Study:
Specifically, this study aimed to:
1. To profile the “Bagsakan” traders.
2. To describe the manner of management of various trading resources by the
“Bagsakan” traders as to;
a.
Buying practices
b.
Selling practices
c.
Financial management practices
d.
Relationship between supplier and buyer
Importance of the Study
The result of this research may provide basic information of the traders in making
important decisions regarding their buying, selling and financing their products. Other
concerned stockholder may also be guided in formulating policies to improve not only in
the physical facilities but also operators in the said market.
Thus, this study will serve as a guide to the local government to develop and improve the
system. Further, it will provide better understanding on “Bagsakan” traders, operations
and resource management practices. Knowing the problems of these traders would guide
government agencies and other institutions concerned to develop support system for such
traders and overall, improve the marketing system for vegetables.
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Scope and Limitation of the Study
The study was conducted on September to October 2008. Respondents of this
study were the trading post vegetable traders specifically those who have space occupants
in “Bagsakan” area of La Trinidad Trading Post. Traders who don’t have space in
“Bagsakan” as both owners and sidewalk vendors were not included so that retrieval of
questioners from them are expected not to be hard.
Respondents were asked of their sourcing and trading practices as will as their
management of financial resources.
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REVIEW OF LITERATURE
Vegetables are important commodities, which are the major producer of semi-
vegetables in the Philippines. Among the major vegetables being produced in the
highlands are carrots, cabbage, Chinese cabbage, potato, chayote, radish, beans, garden
peas, broccoli, cauliflower, lettuce(romaine and iceberg), celery, pepper(Chinese, bell,
and plastic), leek onions, cucumber and others. Vegetables cover almost 47,700 hectares
in the Province of Benguet. There are 600,000 metric tons of vegetables harvested yearly
(DA. CASCADE, undated) as cited by (Lugang-a, 2006).
Agayam (1996) stated that vegetable products are perishable in nature; it is
needed to have pre-marketing arrangement before harvesting to ensure its marketability.
The arrangement is done by the farmers and traders. Some farmers are engage in supply
system. In this practice, the wholesaler produces the farm inputs which the condition that
the produced vegetables will be submitted to the wholesaler or supplier. The supplier will
deduct the cost of farm inputs and surplus will be given to the farmers.
Darrah (1958) as cited by Estay (1997) claims that wholesalers play an important
role in moving products from the farm to the consumers. They are found in large towns
and cities. The wholesalers are specialized operators. They handle single crops, but some
are diversified handling more closely related products of vegetables and fruits. He added
that it is the characteristic of marketing in the Philippines that many wholesalers who in
turn sell still other wholesaler before the products are broken up into small quantities for
sale to an individual retailer which represent the final link in the marketing practices are
those operating in public markets.
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Miranda (1986) as cited by Ueda (2001) stated that since merchants and businessmen
purchase goods primarily for resale, proper care, skills and good relationship should be
exercised. The marketing services are performed by the middlemen from the time
products leave the farm until they are finally purchase by consumers.
Marketing is the process by which sellers find buyers and by which goods and
services move from producers to consumers (World Book, 1999). Marketing activities
involved in getting goods and services from the producer to consumer concentrates on the
buyers, or the consumers, determining their needs and desires, educating them with
regard to availability of the products and important products, features developing
strategies to persuade them to buy and finally, enhancing their satisfaction with purchase.
In addition, marketing is responsible for the physical distribution of the products,
determining the channels of distribution that will be used and for the profitable flow of
the goods (Encarta Encyclopedia, 2008).
Production Practices
Bangcado (1997) in her study that fruit and vegetables processors mostly employ
permanent labor because of the difficulty of employing contractual workers which could
be trusted. Furthermore, Cadangen et al. (1999) found out that entrepreneurs give salary
to their permanent workers based on the Philippine Wage law.
Marketing Practices
According to the study of Cadangen et al. (1999) that the enterprises priced their
products based on prevailing market price which was the simplest way of pricing the
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product. On the other hand, in order to maximize profits enterprises mostly base their
pricing on production cost plus a percentage mark-up of at least 5% as Tad-awan et al.
(1999) found in their study.
Financial Management Practices
Ag-agwa et al. (1999) found out in their study that enterprises took the risk of
trying their hands in business by using other people’s money to show that they can make
it despite of heavy responsibilities and challenges that awaits them. They felt it safe by
borrowing from their relatives because in the case of long delay of paying loans, they
cannot be counting the interest instead; they can pay when they have money. However,
Cadangen et al. (1999) found out in their study that enterprises financed the operations of
their industries though combination of owner contribution and loan because they were
fortunate enough to have been granted financial assistance from lending institutions.
Agricultural marketing has traditionally been the function of the private trading
sector within the contest of a free market system. The private sectors is a complex system
of market intermediaries who intersect in the buying, transporting, storing, processing
and financing of agricultural commodities. They also stressed that the attempts of
government intervention of agricultural marketing in the Philippines were based on the
stereotype assumption that the traders are exploiting the farmers (Sardino, 1982) as cited
by Agayam (1996).
Marketing channel refers to an inter-organizational system made up of a set of
interdependent institutions and agencies involved in the task of moving products from
their point of production to the point of consumption. A simple case of marketing channel
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with only one middlemen (Producer - - - - Retailer - - - - Consumer), as the market grows
and develops wholesaler – retailer or wholesaler might enter the channel and become
additional intermediaries in the movement of the product. These emergences of other
traders are explained by four logically related steps in an economic process, namely:
increasing efficiency of the process, adjusting the discrepancy of assortment, organization
of transaction and facilitation of the sorting and searching process Yarobe et al. (1981) as
cited by Ueda (2001).
Kalinangan (1992) as cited by Agayam (1996) in his specific local study that
marketing channel is specific local study of it showed that there, still exists the “harang”
system. “Harang” is a local term for blocking or intercepting. The farmer’s regular
distribution channels are wholesalers and wholesalers-retailers by financier/ supplier and
“harang” agents. These financier/ supplier and “harang” traders remained as main sources
of inputs and capital. However, the terms of a ride with those traders which price bid due
to loan payable of these traders, also courses to low return to the producers even though it
reduces the risk of market fluctuation the farmers observe the traditional practices of
sorting and grading their products based on the size, variety and quality of the products.
Definition of Terms
Bagsakan - trading of crops that must be classified according to classes and sizes
and crops that are sari-sari.
Trader - general term used for person engaged in the business is buying and selling
vegetables.
Trading - the buying and selling of goods and services.
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Wholesaler - refers to the trader who buy vegetables in large quantities to sell in
wholesaler or retailer basis.
Retailer - trader who directly sell to the consumer.
Wholesaler-wholesaler - trader who sell to the wholesaler on wholesale basis.
Wholesaler-retailer - trader who sell directly to the retailer on a wholesale basis.
Assembler-wholesaler - trader who buy from producer and contract-buyers,
assemble the products in large volume and transport them to the market center.
Agent-assembler - trader who assemble products and make mark-up price.
Marketing - buying and selling of vegetables and other functions that goes with it
like transport, grading, packaging, pricing and among others.
Middlemen - all types of traders who buy and sell vegetables.
Trucker-wholesaler - trader who buy vegetables in large volume and transport
them to the market center.
Institutional buyers - refer to supermarket, factory, hotels, restaurant and other
establishments that buy vegetables from the traders.
Consignment - term of selling wherein vegetables are goes to somebody who acts
as agent to sell with the agreement that he will take title to and pay for what he sells.
Harang-agent - middlemen who buy the products direct from type of suppliers
along the road and sell to other buyer or to their co-traders.
Contract grower - refer to the farmer who have existing agreement with the trader
were said stall provide inputs to their production activities then said farmers will be
selling their products to the traders or stall operators.
Suki - individuals who are regular supplier or regular buyer.
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Financier-wholesaler - traders who support farmers by providing loans or inputs
in their production activities.
Commission agent - trader who facilitate the product to be delivered to other
trade on commission basis and do not hold title to the products.
Symbols
W _ Wholesaler
R _ Retailer
AW _ Assembler-wholesaler
FW _ Financier-wholesaler
HA _ Harang agent
CW _ Contract-wholesaler
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
12
METHODOLOGY
Locale of the Study
This study was concentrated on the resource management practices of “Bagsakan”
traders at La Trinidad Trading Post. Respondents are from the operators who having
permanent space.
Respondents of the Study
Respondents of this study were the “Bagsakan” operators who are occupying
permanent space in the “Bagsakan” area.
Research Instrument
An interview guide was used as a tool in gathering data and information.
Method of Data Collection
The researcher interviewed the respondents using an interview guide.
Data Analysis
All data were analyzed and tabulated using simple statistical tools such as
frequency counts, measures of tendency, ranking and percentages.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
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Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
14
RESULT AND DISCUSSION
The Respondents
The Department of Agriculture has opened regional “Bagsakan”. This is where
farmers can trade their crops by the help of middlemen. It is intended to serve as an
intermediate point of buy and sell vegetables to Northern Luzon consumers or bring it to
Southern Provinces and Cities. Out of 210 having space/ cubicle at the trading post
“Bagsakan” area. There were 75 respondents for this study. Table 1 presents the general
information of the respondents according to age, gender, civil status and their educational
attainment.
Age. Of the 75 respondents, 31 (41.33%) belong to the age bracket 31-40 years
old and 18 (24%) of them belong to the age bracket of 41-50 years old. Only few
respondents were age 51 and above or below 30 years old of age. Hence, most
respondents are more or less at their middle age with most older than 31 years but
younger than 50 years old.
Gender. Most 88% respondents are female which may indicate that most traders
in the “Bagsakan” area of the Trading Post are women.
Civil status. Most 90.67% of the respondents were married and only 5% claimed
to be single while 4% were widowed.
Highest educational attainment. Majority 54.67% of the respondents have
indicated that they have attained a college education while 38.67% have attained high
school and only 6.67 attained elementary. “Bagsakan“ area are dominated by those with a
higher level of formal education
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
15
Table 1. General information of the respondents
PROFILE
FREQUENCY
PERCENTAGE
Age
21 and below
15
20.00
31-40
31
41.33
41-50
18
24.00
51 and above
11
14.67
TOTAL 75
100.00
Gender
Male
9
12
Female
66
88
TOTAL 75
100
Civil Status
Single
4
5.33
Married
68
90.67
Widowed
3
4.00
TOTAL 75
100.00
Highest educational attainment
Elementary
5
6.67
High school
29
38.67
College
41
54.67
TOTAL 75
100.00
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
16
Table 2 presents the business profile of the respondents operation as to the nature
of its ownership and operations.
Type of business as to ownership. Most 76% of the respondents say that their
business is a sole proprietorship. Only 18 (24%) claim it to be a partnership. This implies
that the most common type of business as to ownership for traders in the “Bagsakan” area
is sole proprietorships.
Years of operations. Results show that 34 (45.33%) have been in the vegetable
trading business for 6-10 years and only 6 (8%) of the respondents have been operating
for more than 16 years. Most of the respondents have been operating for less than 10
years which implies that they are relatively new to the business.
Type of trader. Majority 37.33% engage as retailer, followed by wholesaler,
wholesaler/ retailer, wholesaler/ assembler-wholesaler, wholesaler/ financier-wholesaler,
contract wholesaler and only 10.67% engage as Wholesaler/ assembler-wholesaler/
financier-wholesaler. Result that Bagsakan area is preferable in retailing vegetable.
Number of workers. Majority 61.33% of the respondents claim to employ only
one laborer to help them in their business operations while 25 (33.33%) employ 2
workers. This may means that individual operations of traders in the Bagsakan area
require only a minimal amount of human labor to do their operations and that having
more than 2 workers is a rarity.
Membership to trade organizations. Majority 69.33% of the respondents claim
that they are members in any trade organization and only 30.67% are not members.
Result prior to members in related trade organization such as officer and member to
cooperative (MPC) that will help their operations.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
17
Average monthly net income (operations alone). Majority 66.67% of the
respondents in Bagsakan area earn a net income between Php6, 000 to Php10, 000 a
month. Only few respondents claim to earn a monthly net income more than Php11, 000.
Table 2. Business profile
BUSINESS PROFILE FREQUENCY
PERCENTAGE
Type of business
Sole Proprietorship
57
17
Partnership
18
24
TOTAL 75
100
Year in business
5 or less
24
32.00
6-10
34
45.33
11-15
11
14.67
16 or more
6
8.00
TOTAL 75
100.00
Type of trader
21
28.00
W
28
37.33
R
8
10.67
W/R
7
9.33
W/AW
3
4.00
W/AW/FW
4
5.33
W/FW/CW
4
5.33
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
18
Table 2. Continued…
BUSINESS PROFILE
FREQUENCY
PERCENTAGE
W/R/FW/CW
TOTAL 75
100.00
Number of workers
1
46
61.33
2
25
33.33
3 or more
4
5.34
TOTAL 75
100.00
Member of any related trade organization
Member
52
69.33
Not member
23
30.67
TOTAL 75
100.00
Average monthly net income
P5,000 or less
6
8.00
P6,000-10,000
50
66.67
P11,000 or more
19
25.33
TOTAL 75
100.00
Buying Practices
The operator in “Bagsakan” area, bought and sold per day may differ by
commodity, and the highest volume bought and sold ranges from 200 to 2,500 kilograms.
The purchased their products from various sources, mostly from Kibungan, Bakun, Mt.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
19
Province, La Trinidad, Kabayan and Buguias. For November to April; Ilocos, Cervantes
and Nueva Viscaya were added as a source of supplies.
Buying price depends on the quality and size, differ buy each type of commodity,
the mean price ranges from P.50 to P190.00 per kilogram.
Tables 3 to 12 present the buying practices of the studies respondents. Table 3
shows the supplier choices or preferences of the respondents while table 4 presents the
vegetables commonly purchased and the volumes of their purchases. Table 5 shows the
method of acquisition of supplies; table 6 is about payment and basis for price for supply
acquired. Table 6 presents the basis of volume of supplies purchased. Table 7 shows what
the respondents do when the expected quality is not up to their standards, table 8 present
quality assurance issues of the respondents, table 9 is about the selection of the
vegetables quality, table 10 are the strategies to determined quality acquired, table 11
present quality assurance issues of the respondents, and table 12 the problem encountered
in buying vegetables.
Choice of supplier. Majority 66.67% and 60%, of the respondents respectively
prefer to acquire supplies from contract-suppliers and farmers. There were less
respondents acquiring supplies from other intermediaries such as wholesalers, harang -
agent, or even from commission agents. Financier-suppliers were the sources by the least
number of the respondents. The result implies that most “Bagsakan” area traders prefer to
source their supplies from contract-suppliers and farmers more than any other source.
Reasons for choice of supplier. Respondents gave various reasons for their choice
of suppliers. These ranged from the assurance of good quality 30.67%. The supplier
being a relative or friend 28%. Suppliers being trustworthy 29.33%, to the reason that
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
20
they are regular suppliers 36% indicating a built or established relationship between the
trader and his supplier. However, there were no dominant reasons given for their choice
of supplier. It can be surmised though that such choices are commonly built on
established relations who may generate trust among the parties.
Table 3. Type of suppliers and the reason for preferring as suppliers
BUYING PRACTICES FREQUENCY
PERCENTAGE
Type of suppliers
Farmer
45
60.00
Wholesaler
25
33.33
Harang agent
20
26.67
Commission agent
20
26.67
Financier – supplier
15
20.00
Contract – supplier
50
66.67
Reasons for preferring as suppliers
Good quality
23
30.67
Relative/ friend
21
28.00
Regular supplier
27
36.00
Have trust
22
29.33
Accessibility
10
13.33
*multiple response
Vegetables purchased. Type of Vegetables Commonly Bought from the Sources.
Table shows the type of vegetables commonly traded by the operators. That 40
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
21
respondents for assorted vegetables was the major crop traded, followed by pepper,
falling to cucumber, beans, cauliflower, broccoli, lettuce and chayote, leek onion and
celery is the least.
Average monthly volume (tons) bought from the sources. Table shows the
average monthly volume in tons bought from different sources of products. The finding
revealed that majority cucumber were bought having 76 tons per month, followed by
chayote having 69 tons per month, beans having 66 tons per month and the least were
celery having only 6 tons per month.
Table 4. Type of vegetables and the average monthly volume (tons) bought from the
sources
BUYING PRACTICES FREQUENCY VERAGE MONTHLY
VOLUME IN TONS
Type of vegetable
Cucumber
10
76.00
Pepper
13
61.00
Cauliflower
7
42.00
Beans
9
66.00
Lettuce
5
35.50
Broccoli
6
55.00
Chayote
5
69.00
Leek onion
3
14.00
Celery
2
6.00
Assorted vegetables
40
8.75
* multiple response
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
22
Acquiring products from the sources. The respondents bought products from the
sources 49.33% were by orders, followed by relying products sent by contract suppliers,
some also by canvassing products brought in the market. And others were through agent.
Medium communication with the supplier. Majority 64% negotiate their
transaction on personal negotiations. It was noted that 60% number of respondents did it
in the cell phone and only 16% did through agent. This indicated that the several traders
using medium of communication which were of course very important for hastens the
flow of commodities, thereby for minimizing possible losses.
Information requirements in negotiation. Most 45.33% claimed that there were
fixed schedule on when supplies delivered, followed to price, volume and have 24% to
quality as identified. These respondents preferred such schedule for they were given time
to process/ repack the said commodities. These en tact sacrifice that at least the
commodity was ready before buyers arrive.
Table 5. Acquiring products, negotiations and information’s negotiating suppliers
BUYING PRACTICES FREQUENCY PERCENTAGE
Acquiring products from the source
By order 37 49.33
Through agent 10 13.33
Through canvass on the products in the market 17 22.67
Rely on the products sent by
contract and financier-supplier 17 22.67
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
23
Table 5. Continued…
BUYING PRACTICES FREQUENCY PERCENTAGE
Information requirements in negotiation
Price 32 42.67
Volume 31 1.33
Quality 18 24.00
Schedule of delivery 34 45.33
*multiple response
Mode of paying vegetables from the suppliers. The common practice was to pay
their supplies upon delivery 54.61%. It was noted that several 32% were consigned and
deduct the cost of inputs in contract-suppliers. This means that at least the respondents
won’t realized losses from the consigned products and for the meantime they can use the
deducted payment for other purposes and financier-supplier mostly done to credit, then
after harvesting all the crop and deduct all the expenses before the get their share
according to their percentage agreement.
In Terms of Credit. Majority 60% allowed paying their products every other
deliver, some paid later in the day, others paid after 1 week and noted that 5% paid their
products after 1 month or until crops are all harvested. This is advantageous for the
respondents because they don’t need more capital in paying their supplies.
Basis of price. In terms of price, most 91.46% bought their products based on
prevailing market price. A noted 6.67% bought based on negotiated price 1.33% have
agreed fixed price that don’t change even if price fluctuate in the market.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
24
Table 6. Mode of payment, payment on credit and basis of price from the supplier
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Mode of payment
Cash on delivery
41
54.67
Consignment
24
32.00
Deduct the cost of inputs
24
32.00
Credit
20
26.67
Payment on credit
Paid later in the day
5
25.00
Paid every other deliver
12
60.00
Paid after 1 week
2
10.00
Paid after 1 month/ crop harvested 1
5.00
Basis of price
Vegetables are price based on
prevailing market price
75
91.46
Price are being negotiated
5
6.67
We have agreed that fixed price
that don’t change even if price
fluctuate in the market
2
1.33
*multiple response
Volume ordered from the suppliers. Majority 52% of the respondent order
supplies based on the estimated demand for the day. Several 42.67 % orders depend on
the vegetable sent by the farmers. Some order extra stocks if ordered at lower price and
others agree daily fix order volume.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
25
Table 7. Volume ordered from the suppliers
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Agree daily fixed order volume
13
17.33
Depend on the vegetables send by the
farmers
32
42.00
Order extra stock if order at lower price
21
28.00
Order are based on the estimated
demand for the day
38
52.00
*multiple response
Do when buy vegetable that is not the quality desired. Table shows that mostly
88% of the respondents accept but sell base on quality price, some says accept but never
buy again and others says reject but never buy again.
Table 8. Do when buy vegetable that is not the quality desired
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Accept but sell base on quality price
66
88
Reject but never buy again
3
4
Accept but never buy again
6
8
TOTAL
75 100
Quality of vegetables. The most common 60% quality of vegetables bought by the
respondent depend on the vegetables quality delivered by the suppliers, followed by the
combination of first and second class, it depends on size, order first class only, order
rumble. A noted that 10.67% order second class as respondents only preferred.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
26
Table 9. Quality of vegetables
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Order first class only
15
20.00
Order second class only
8 10.67
Order first and second class
29
38.67
Order depend on size
26
34.67
Order rumble
11
14.67
Depend on vegetables quality delivered
45 60.00
*multiple response
Strategies to determine quality acquired. Table shows that majority 50.67%
inspect first the supplies delivered, followed by offering them better price, some says be a
good payer and other says to have a guaranteed profit.
Table 10. Strategies to determine quality acquired
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Offering better price
36
48.00
Guaranteed profit
19
25.33
Inspection of deliver supplies
38
50.67
Good payer
22
29.33
*multiple response
Often discuss the quality, price and volume with the regular suppliers. Mostly
70.67% discussed the quality, price and volume in every deliver, several were in weekly,
others were in monthly or twice a year and yearly depend on when the crop already are
harvested.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
27
Table 11. Often discuss the quality, price and volume with the regular suppliers
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Weekly
26
34.67
Monthly
20
26.67
Twice a year (for financial supplier)
4
5.33
Yearly (for financial supplier)
6
8.00
Every deliver
53
70.67
*multiple response
Problems encountered in buying vegetables. The most common problem
encountered 85.33% by the respondents was the price fluctuation. Although they seldom
encountered losses during fluctuation. The impact of this problem was actually being
minimized by the consignment arrangement with their suppliers. Some encountered were
high transportation cost, other says because of unpredictable demand and supplies. A
noted that poor quality and inadequate supply were also identified.
Table 12. Problems encountered in buying vegetables
BUYING PRACTICES
FREQUENCY
PERCENTAGE
Inadequate
supply
5 10.60
Poor
quality
18
24.00
Price fluctuate
64
85.33
Table 12. Continued…
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
28
BUYING PRACTICES
FREQUENCY PERCENTAGE
Unpredictable supply 20 26.67
Unpredictable demand
28
37.33
High transportation cost 52
69.33
Not exact weight
8 6.67
*multiple response
Selling Practices
The operator in “Bagsakan” area sell their products to different buyer and various
destination. The products destination either Metro Manila, Bicol, Samar, Cebu, Palawan,
Ilo Ilo, Baguio City, some part of Davao, Bataan, Naga City and Tacloban.
Table 13 to 20 presents the selling practices of the studies respondents. Table 13
shows the buyer choices or preferences of the respondents while table 14 present the
vegetable commonly disposed and the volume the were disposed. Table 15 is about
payment and credit collection, table 16 present the cleaning and grading products before
marketing, table 17 shows the pricing and the volume ordered, table 18 shows what the
respondents disposed the product that with signs of deterioration, table 19 is about the
class of the vegetable the buy, and table 20 shows the problems encountered in marketing
products.
Type of buyer. Majority 49.33% of the respondents sold their products to
wholesaler followed to retailer, commission agent, trucker-wholesaler and institutional
buyer. It was noted that most buyers were regular.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
29
Reasons for preferring as buyer. The primary reasons on why they preferred was
because they were regular buyer 36.00%. Several were in good payer, have trust and
relatives/ friends.
Table 13. Type of buyer and reasons for preferring as buyer
SELLING PRACTICES
FREQUENCY
PERCENTAGE
Type of buyer
Institutional buyer
21
28.00
Trucker-wholesaler 24
32.00
Commission agent
25
33.33
Wholesaler
37
49.33
Retailer
28
37.33
Reason for preferring as buyer
Good quality
23
30.67
Relatives/ friends
21
28.00
Regular buyers
27
36.00
Have trust
22
29.33
*multiple response
Average monthly volume in tons. Table shows the monthly volume in tons
commonly disposed to their different buyers. The finding revealed that cucumber has the
most volume disposed with 76 tons sold per month, followed by chayote, beans, pepper
and broccoli falling by cauliflower, lettuce, leek onion, assorted vegetables and the least
were celery.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
30
Table 14. Type of vegetables and the average monthly volume disposed to the buyer
SELLING
FREQUENCY
AVERAGE MONTHLY
VOLUME IN T0NS
Type of vegetables
Cucumber
10
76.00
Pepper
13
61.00
Cauliflower
7
42.00
Lettuce
5
35.50
Broccoli
6
55.00
Chayote
5
69.00
Leek Onion
3
14.00
Celery
2
6.00
Assorted Vegetables
40
8.75
*multiple response
Mode of payment products to the buyers. The common practice they employed
was to sell cash 72%. It was noted that several 43% on credit, it was also practiced for
them to create a “suki”. Others on cash advance then fully paid upon pick-up, these are
done to new buyers to be sure that vegetables were be sold. Some were consigned
especially if with sign of deterioration and price is very low.
Credit collection. Majority 84% of the respondents paid their products every other
transaction 34.88%. Secondly, they paid their products after 1 week, followed by paying
later in the day. Others paid after 1 month or more depends on their agreement.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
31
Table 15. Mode of payment products to the buyers and credit collection
SELLING PRACTICES
FREQUENCY PERCENTAGE
Mode of payment
Cash
54
72.00
Cash advanced then full paid upon pick-up
19
25.33
Consign
5
6.67
Credit
43
57.33
Credit collection
Collected later in the day
10
23.26
Collected every other transaction
15
34.88
Collected after 1 week
11
25.58
Collected after 1 month or more
7
16.28
*multiple response
Cleaning products before marketing. Majority (84%) of the respondents claimed
to clean their vegetables before marketing.
In order to attract more buyers. Some says it command better price. Only 16%
didn’t practice cleaning their products; as they say it was just a waste of time on their
part. Cleaning the products, hence, is important to most of the respondents to bring in
more sellers.
Grading products before marketing. Most (81.30%) of them practice grading to
facilitate easier selection of buyers. Compare to only 18.67% of them didn’t practice
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
32
grading which the reason was time consuming. This implied that grading helped the
respondents to dispose their products easily.
Table 16. Cleaning and grading products before marketing
SELLING PRACTICES
FREQUENCY
PERCENTAGE
Cleaning products before marketing
Clean products before marketing
63
84
Don’t clean before marketing
12
16
TOTAL 75
100
Reason for cleaning
Products attract more buyers
47
74.60
Products command better price
16
25.40
Grading products before marketing
Grading products before marketing
61
81.33
Don’t grade
14
18.67
TOTAL 75
100
Reasons for grading
Attract more buyers
13
21.31
Facilitate easier selection of buyers
48
78.69
Pricing products. In terms of price, mostly 93.33% sold their products based on
prevailing market price. A noted 10.67% sold their products based on the negotiated
price. And it was found out that there were 2.67% who agreed on fixed price that don’t
change even if price fluctuate in the market.
Volume ordered by regular buyer. Majority 57.33% of respondents ordered by
their regular buyer depends on their demand that day, some agreed on fixed volume. And
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
33
it was noted that except institutional buyer 16% order extra stocks that is easily
sold/disposed.
Table 17. Pricing products and volume ordered by regular buyer
SELLING PRACTICES
FREQUENCY PERCENTAGE
Pricing products
Price based on prevailing market
price
70
93.33
Price are being negotiated
8
10.67
Agreed fixed price that don’t change
even if price fluctuate in the market
2
2.67
Volume ordered by regular buyer
Agreed fixed order volume
17
22.67
Depends on the availability/level of
supply
23
30.67
Depends on their demand for the day
43
57.33
They order extra stocks that is easily
sold/disposed
12
16.00
*multiple response
Mode of disposing products with the signs of deterioration. Table 18, shows that
mostly 85.33% of the respondents sold their products with the signs of deterioration by
selling at lower price, several 57.33% for family consumption, some also give it free and
others throw away.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
34
Table 18. Mode of disposing products with the signs of deteriorations
SELLING PRACTICES
FREQUENCY
PERCENTAGE
Sell at lower price
64
85.33
Throw away
5
6.67
Home consumption
43
57.33
Give it free
17
22.67
*multiple response
Quality of vegetables. The most common 90.67% quality of vegetables disposed
first class only. Several 72% were sold depend on size, followed by the combination of
first and second class, and 12% disposed rumble. A noted 9.33% disposed second class
only.
Table 19. Quality of vegetables
SELLING PRACTICES
FREQUENCY
PERCENTAGE
Sell first class only
68
90.67
Sell second class only
7
9.33
Sell first and second class
17
22.67
Sell depend on size
54
72.00
Sell rumble (mix class and size)
9
12.00
*multiple response
Problems encountered in marketing products. The most common problem
74.67% encountered by the respondents was the price fluctuation. This was the reason on
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
35
why sometimes they encountered losses, when price is going down unless vegetables are
all consignment. Several encountered delayed payment of buyers, some also not disposed
their products regularly. A noted that only 24% encountered poor quality of vegetables.
And 6.67% bouncing check payment.
Table 20. Problems encountered in marketing products
SELLING PRACTICES
FREQUENCY
PERCENTAGE
Unable to dispose all products regularly
27
36.00
Delayed credit payment
34
45.33
Poor quality of vegetables
18
24.00
Price fluctuation
56
74.67
Bouncing check
5
6.67
*multiple response
Financing Management Practices
The respondent has different strategies in financing their operation. Table 21 and
22 presents the financing management practices of the studies respondents. Table 21
shows the source of operating capital, sources of loan and the reasons why the preferring
of lending institution while table 22 presents the need additional capital.
Source of operating capital. Majority 53.33% of the respondents financed their
operation through their personal money. And 46.67% of the respondents through loan.
Source of loan. Majority 48.57% respondents loaned in private agency, followed
by friends and relatives. Some were from bank such as commercial bank, government
bank and few for rural bank.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
36
Reason for choices of lending institutions. For the reason that mostly 24% were
accessible if needed, several 22.67% were no stringent collateral requirement, some
wanted to loan in banks for the reasons that interest is low and the duration of payment is
longer than in private agency. This was because most respondents wants immediately and
don’t have time to complete all requirements needed in the banks.
Table 21. Source of operating capital, source of loan and the reason for choices of
lending institutions
FINANCING MANAGEMENT PRACTICES FREQUENCY
PERCENTAGE
Source of operating capital
Owned
40
53.33
Loaned
35
46.67
TOTAL 75
100.00
Source of loan
Friends/ relatives/ neighbors
7
28.57
Rural bank
2
11.43
Commercial bank
5
25.71
Government bank
4
14.29
Private agency
17
48.57
Reason for choices of lending institution
No stringent collateral
17
22.67
Low interest
8
10.67
Longer duration of payment
10
13.33
Easily accessible
18
24.00
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Need additional capital. Majority 69.33% of the respondents need additional
capital to finance farmers/suppliers, some 36% increase in level of operation and 16%
because purchased price increase.
Table 22. Need additional capital
FINANCING MANAGEMENT PRACTICES
FREQUENCY
PERCENTAGE
Increase in level of operation
27
36.00
Need to finance farmers/suppliers
52
69.33
Increase in purchase price
12
16.00
*multiple response
Relationship between Suppliers and Buyers
Table 23 and 24 shows the relationship of the studies respondents between
suppliers and buyers. Table 23 shows the loyalty and information shared with the supplier
while table 24 also shows the loyalty and information shared to the buyers.
Relationship between suppliers. Table shows the loyalty insurance of suppliers
that majority 58.67% of respondents were helping the supplier in acquiring their needed
resources; followed 57.33% of respondents were committed to the agreement.
Information shared to supplier. Majority 56% of the respondents informed to the
supplier for the availability of vegetables when it needs, followed by the good reputation
for vegetables quality. Several were informed vegetable deliver when required; some
were informed the adequate volume and wide range to choose from.
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Table 23. Loyalty and kind of information shared with supplier
RELATIONHIP
FREQUENCY
PERCENTAGE
Loyalty with supplier
Offer higher price
43
57.33
Commitment to agreement
29
38.67
Helping them in acquiring their needed
resources
44
58.67
Kind of information shared with supplier
Availability of vegetables when it need
42
56.00
Adequate volume and a wide range
to choose from
9
12.00
Good reputation to supplier for
vegetables quality
43
54.67
Vegetables deliver when required
33
44.00
*multiple response
Relationship with buyers. The respondents were ensured the buyer that majority
57.33% helped them in acquiring their needed resources, followed by offering them
lower price and others were committed to agreement.
The information shared. Majority 56% of the respondent informed the availability
of vegetables. Several were informed good reputation to buyer for vegetables quality.
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Table 24. Loyalty and kind of information shared to buyer
RELATIONSHIP
FREQUENCY PERCENTAGE
Loyalty to buyer
Offer lower price
43
57.33
Commitment to agreement
29
38.67
Helping in acquiring their needed
resources
44
58.67
Kind of information shared
Availability of vegetables
42
56.00
Adequate volume and wide range to
choose from
9
12.00
Good reputation to buyer for vegetables
quality
41
54.67
Vegetable deliver when required
33
44.00
*multiple response
Resource Management Practices of “Bagsakan” Traders
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to determine and give us information of the resource
management practices of “Bagsakan” traders at La Trinidad Trading Post. The
respondents were composed of 75 operators or traders. This study intended to profile the
“Bagsakan” traders; to describe the manner of management of various trading resources
in buying, selling, financing management practices; their relationship between suppliers
and buyers; to relate their manner of resource management to their profile, or and to
come up with possible recommendation.
The survey was conducted through personal interview with the aid of prepared
questionnaires. The gathered data were statistically analyzed by tabulated using
frequency counts, measure of tendency, ranking and percentages.
The respondents interviewed were composed of wholesaler (W), retailer (R),
wholesaler/ retailer, wholesaler/ assembler-wholesaler (AW), wholesaler/ assembler-
wholesaler/ financier-wholesaler (FW), wholesaler/ financier-wholesaler/ contract
wholesaler (CW) and wholesaler/ retailer/ financier-wholesaler/ contract wholesaler.
Majority of them belong to the age bracket of 31-40 years.
The mode of payment in buying their supplies was cash on delivery and cash
advance. Most of the respondents grade their products they bought. They classified their
crops bought in terms of size and class. Plastic and cartoons were used as their major
packing material for all crops. Out of the 75 respondents they sold their products at
wholesale and retail basis and priced is based on prevailing market price. However, if
Resource Management Practices of “Bagsakan” Traders
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when there were crops unsold in a day, the operator practiced selling the crops in the next
day at prevailing market price.
The respondents trade more than one crop. The vegetables traded were cucumber,
pepper, cauliflower, beans, lettuce, broccoli, chayote, leek onion and celery. On the other
hand, some major crops were not present at “Bagsakan” area because may either trade
direct to the vehicles from farm, or may trade at booth and Bahingawan area. The average
monthly volume bought and sold ranges from 200 to 2,500 kilograms a day.
Each of the traders classified earlier availed of the products they handled from
different sources of supply and according to type of traders. The sources of supplies come
from Kibungan, Bakun, Mountain Province, La Trinidad, Kabayan and Buguias. For
November to April, Ilocos, Cervantes and Nueva Viscaya were added as a source of
supplies. Wherein, from May to October these can not avail supplies because their major
crops were “palay”. They acquired their supplies from contract grower, farmer,
wholesaler, financier-wholesaler, “harang” agent, and commission agent. Their reason for
choosing market sources were because of better quality.
The products destination were either Metro manila, Bicol, Samar, Cebu, Palawan,
Ilo Ilo, Baguio City and some part of Bataan, Davao, Naga City and Tacloban.
These types of buyer were wholesaler, retailer, commission agent, trucker-wholesaler and
institutional buyer. And the primary reasons on why the preferred because they were
regular buyer.
The prices depend on the size and class of the vegetables send by the suppliers.
Likewise, on supply and demand, the buying price of vegetables traded was classified
according to each commodity per kilogram. The mean price ranges from P.50 to P190.00
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per kilogram. On the other hand, the selling price ranges from P1.00 to P200.00 per
kilogram.
Conclusions
Based on finding on the study, the researcher arrived with the following
conclusions;
1. Price fluctuation
2. High perishability and improper handling of vegetables
3. High transportation cost
4. Unpredictable demand and supply
5. Delay of credit payments and bouncing checks
Recommendations
Based on the results, the following are recommended to minimize problems and
needs incurred by the “Bagsakan” traders;
1. Prices changes according to the supply of vegetables entering in Trading Post
because no stable price in the day. Thus, those who have bought their supply in a high
price but supply increases after, the selling price decreases. Then traders affected as to
every hour.
2. The trading center should conduct an orientation/ seminar for traders and
farmers of perishable products on how proper handling must be. In that way, they will
use the skills they learned from the seminar that would help them minimize losses.
3. To compensate the transportation cost, the products must transport to its
importance.
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4. Dissemination of daily market information and crop programming should be
established. For better commitment, form the trading center and other government
agencies to provide efficient and effective market information system
5. Must sell their products on cash basis only and do not accept check payments
in order to avoid delaying payments and to escape for their responsibilities.
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LITERATURE CITED
AG-AGWA, C.M. and E.P. PALEYAN. 1999. Baseline survey of agribusiness enterprise
in La Trinidad, Benguet. BS Special Problem (Unpub.). Benguet State University, La
Trinidad, Benguet. Pp. 14-15.
BANGCADO, R.C. and L.P. PULACAN. 1997. Practices, needs and problems of
selected fruit processors in La Trinidad and Baguio City. BS Special Problem (Unpub.)
Benguet State University, La Trinidad, Benguet. Pp. 20, 35 and 36.
CADANGEN, M.P. and N.G. MENDOZA. 1999. An assessment of small and medium
enterprises in San Fernando, La Union. BS. Special Problem (Unpub.). Benguet State
University, La Trinidad, Benguet. Pp. 34 and 47.
DAPLIAN, M.P. 2001. Price and cost differentiation of various market intermediaries in
the marketing of selected highland vegetable. BS Special Problem (Unpub.). Benguet
State University, La Trinidad, Benguet. Pp. 7.
ENCARTA ENCYCLOPEDIA. 2008. Microsoft Encarta Windows 1998.
ESTAY, G.F. 1997. Marketing practices of small stall owners at Marcos Highway, Tuba,
Benguet. BS Special Problem (Unpub.) Benguet State University, La Trinidad, Benguet.
Pp. 35 and 44.
Resource Management Practices of “Bagsakan” Traders
at La Trinidad Trading Post / Magdalen J. Diclas. 2009
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KOHL, R.L. and J.N. UHL. 1996. Marketing agricultural products. (7th edition). New
York. Mc Millan (Pub.) Company. Pp. 5-6.
LUGANG-A, M.B. 2006. Vegetable purchase and consumption patterns of households in
Baguio City. BS. Thesis (Unpub.). Benguet State University, La Trinidad, Benguet. Pp.
1-2.
SHAKYA, S.R. 2000. Marketing efficiency of vegetable distribution channel in Benguet.
MS Thesis (Unpub.). Benguet State University, La Trinidad, Benguet. Pp. 20-23.
TAD-AWAN, V.F. and S.B. WASIT. 1999. Marketing strategies of entrepreneurs in
Baguio City. BS Special Problem (Unpub.). Benguet State University, La Trinidad,
Benguet. Pp. 19 and 22.
TAWALI, D.G. 2006. Analysis of the vegetable wholesale market in the La Trinidad,
Benguet. BS Thesis (Unpub.). Benguet State University, La Trinidadad, Benguet. Pp. 1-
2.
UEDA, E.O. 2001. Relationship and interrelationships of market development in the
marketing of selected highland vegetable. BS Thesis. Benguet State University, La
Trinidad, Benguet. Pp. 5-6.
WIKIPEDIA, THE FREE ENCYCLOPEDIA. 2008. Microsoft Internet Explorer.
Resource Management Practices of “Bagsakan” Traders
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46
WORLD BOOK. 1999. The World Book Encyclopedia, Chicago, London, Sydney. Scott
Fetzer Company. Pp. 214.
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APPENDIX
Guide Questionnaire
This research aims to investigate the vegetable traders. All information will be
treated with confidentiality. Please answer the questions honestly by fill-up the blank and
by putting / (check) mark in the appropriate space provided for. Thank you very much!
I. General Information
A. Name of trader: ____________________
B. Type of trader: ( ) Wholesaler
( ) Retailer
(
)
Wholesaler/retailer
( ) Wholesaler/assembler-wholesaler ( ) Wholesaler/assembler-
wholesaler/financier
-wholesaler ( ) Wholesaler/financier-wholesaler/contract-wholesaler
( ) Wholesaler/retailer/financier-wholesaler/contract-wholesaler
C. Age:
Gender:
Civil Status: ___
D. Highest Educational Attainment: _____
E. Years in vegetable trading:
F. Type of business: ( ) Sole proprietor
( ) Partnership
G. Number of worker(s) you have: ___
H. Are you a member of any organization related to your trade?
( ) Member
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( ) Not member
If member, please specify____
I. Average monthly income from vegetable trading:
J. Other source(s) of income: ____________
II. Buying Practices
A. Please indicate the type of vegetables you trade, the source and the
volume required per month. Under type of supplier just put number only ( 1.
Farmer, 2. Wholesaler, 3. Harang agent, 4.Commission agent, 5. Financier-
supplier, and 6. Contract- supplier).
Type of Vegetable Type of Supplier Average Monthly Volume
(tons)
_________________
___________________
__________________________ _________________
___________________ __________________________
_________________
___________________
__________________________
_________________ ___________________
__________________________
_________________
___________________
__________________________
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_________________
___________________
__________________________
_________________
___________________
__________________________
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B. What are the reasons for preferring them as supplier?
( ) Good quality of products
( ) Relative / friend
( ) Regular suppliers
( ) Have trust
( ) Easily accessible
( ) Others, please specify _______________
C. How do you acquire products from the sources?
( ) By order
( ) Through agent
( ) Through canvass on the products brought in the market
( ) Rely on the products sent by contract/ financier-suppliers
( ) Others, please specify _______________
D. Medium of communication with the supplier and buyer
( ) Personal negotiation
( ) Through cell phone or telephone
( ) Through agent
( ) Others, please specify _______________
E. Information requirements in negotiation
( ) Price
( ) Volume
( ) Quality
( ) Schedule of delivery
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( ) Others, please specify _______________
F. Mode of payment
( ) Cash on delivery
( ) Consignment
( ) Partial payment upon delivery
( ) Deduct the cost of inputs (for contract suppliers)
( ) Credit
( ) Others, please specify _______________
If credit, what is/ are the trends
( ) Paid later in the day
( ) Paid every other day
( ) Paid after 1 week
( ) Paid after 1 month/ crop harvested
G. Basis of prices
( ) Vegetables are priced based on prevailing market price
( ) Prices are being negotiated / haggled
( ) We have agreed fixed price that don’t change even if price fluctuate in the
market
( ) Others, please specify _______________
H. Volume ordered from your supplier
( ) We have agreed daily fixed order volume
( ) Depend on the vegetable send by the farmers (for contract growers)
( ) We order extra stocks if ordered at lower price
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( ) Volume ordered are based on the estimated demand for the day
( ) Others, please specify _______________
I. Quality of vegetables
( ) We order first class only
( ) We order second class only
( ) We order first and second class
( ) We order depend on size
( ) We order rumble (mix class and size)
J. What do you do when you buy vegetable that is not as the quality
specified/ desired?
( ) Accept but sell base on quality price
( ) Reject but never buy again
( ) Accept but never buy again
( ) Others, please specify _______________
K. Strategies to determine quality acquired
( ) Offering better price
( ) Guaranteed profit
( ) Inspection of delivered supplies
( ) Good payer
( ) Others, please specify _______________
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L. How often do you discuss the quality and volume with your regular
supplier(s)
( ) Weekly
( ) Monthly
( ) Twice a year (for financier-supplier)
( ) Yearly (for financier supplier)
( ) Others, please specify _______________
M. Problems encountered in buying vegetables
( ) Inadequate supply
( ) Poor quality ( rumble delivered )
( ) Price fluctuation
( ) Unpredictable supply
( ) Unpredictable demand
( ) High transportation cost
( ) Not exact weight ( hangin )
( ) Others, please specify _______________
III. Selling Practices
A. Per type of vegetable, please indicate the average monthly volume in
kilograms you are selling or disposing with the buyer (if type of buyer just put
number only as
1. Institutional buyer {supermarket, factory, hotel and restaurant}, 2. Trucker-
wholesaler, 3. Wholesaler, 4. Retailer and 5. Commission agent ).
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Type of Vegetable Type of Buyer Average Monthly Volume
(tons)
_________________
___________________
__________________________ _________________
___________________ __________________________
_________________
___________________
__________________________
_________________
___________________
__________________________
_________________
___________________
__________________________
_________________
___________________
__________________________
_________________
___________________
__________________________
B. What are the reasons for preferring them as buyer?
( ) Good payer
( ) Regular buyer
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( ) Relative/ friend/ neighbor
( ) Have trust
( ) Others, specify _______________
C. Mode of payment (except for direct consumer)
( ) Cash on delivery
( ) Cash advance then full paid upon pick up
( ) Consignment
( ) Partial payment
( ) Credit
If credit, what is/ are the trends?
( ) Collect later in the day
( ) Collect every other transaction
( ) Collect after one week
( ) Collect after 1 month or more
D. Do you clean your products before marketing?
( ) Clean
( ) Not clean
Reason for cleaning
( ) Products are more attractive to buyers
( ) Products command better price
( ) Others, please specify _______________
E. Do you practice grading?
( ) grade
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( ) Not grade
Reason for grading
( ) Attracts more buyers
( ) Facilitates easier selection by buyers
F. How products are being priced?
( ) Vegetables are priced based on the prevailing market price
( ) Price are being haggled / negotiated
( ) We have agreed fixed prices that don’t change even if price fluctuate in the
market
( ) Others, please specify _______________
G. Determined the volume ordered by your regular buyers/ suki?
( ) We have an agreed daily fixed order volume
( ) Depends on the availability/ level of my supply
( ) Depends on their demand for the day
( ) They order extra stocks that is easily sold/ disposed
( ) Others, please specify _______________
H. How do you dispose of the products with signs of deterioration?
( ) Sell at lower price
( ) Throw away
( ) For home consumption
( ) Give it free
I. Quality of vegetables
( ) We sell first class only
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( ) We sell second class only
( ) We sell first class and second class
( ) We sell depend on size
( ) We sell rumble (mixed quality and size)
( ) Others, please specify _______________
J. How do you dispose the products with signs of deteriorations?
( ) Sell at lower price
( ) Throw away
( ) For home consumption
( ) Give it free
K. Problems encountered in marketing products
( ) Unable to dispose all my products regularly
( ) Delayed credit payment
( ) Poor quality of vegetables to be sold
( ) Price fluctuation
( ) Bouncing check
( ) Others, please specify ______________
IV. Financial Management Practices
A. Source of operating capital
( ) Owned
( ) Loaned
If loaned, source(s) of loan
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( ) Friends/ Relatives/ Neighbors
( ) Rural banks
( ) Commercial Banks
( ) Government Banks
( ) Private Agency
( ) Others, please specify _______________
B. Reasons for choice of lending institutions
( ) No stringent collateral requirement
( ) Low interest
( ) Longer duration of payment
( ) Accessibility
( ) Others, please specify _______________
C. What instances would you need additional capital?
( ) Increase in level of operation
( ) Need to finance type of suppliers
( ) Increase in purchase price
( ) Others, please specify _______________
V. Relationship between supplier and buyer
A. Relationship with supplier
1. How do you ensure the loyalty of your supplier?
( ) Offer higher price
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( ) Commitment to agreement
( ) Helping them in acquiring their needed resources
( ) Others, please specify _______________
2. Kind of information shared
( ) Availability of vegetables when it needs
( ) Adequate volume and wide range to choose from
( ) Good reputation as supplier for vegetables quality
( ) Vegetables deliver when required
( ) Others, please specify _______________
B. Relationship to buyer
1. How do you ensure the loyalty of your buyer?
( ) Offer lower price
( ) Commitment to agreement
( ) Helping them in acquiring their needed resources
( ) Others, please specify _______________
2. Kind of information shared
( ) Availability of vegetables when it needs
( ) Adequate volume and wide range to choose from
( ) Good reputation as buyer for vegetables quality
( ) Vegetables deliver when required
( ) Others, please specify _______________
Resource Management Practices of “Bagsakan” Traders
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Document Outline
- Resource Management Practices of
�Bagsakan� Traders at La Trinidad Trading Post
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- Background of the Study
- Statement of the Problem
- Objectives of the Study:
- Importance of the Study
- Scope and Limitation of the Study
- REVIEW OF LITERATURE
- Production Practices
- Marketing Practices
- Financial Management Practices
- Definition of Terms
- METHODOLOGY
- Locale of the Study
- Respondents of the Study
- Research Instrument
- Method of Data Collection
- Data Analysis
- RESULT AND DISCUSSION
- The Respondents
- Buying Practices
- Selling Practices
- Financing Management Practices
- Relationship between Suppliers and Buyers
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- Summary
- Conclusions
- Recommendations
- LITERATURE CITED
- APPENDICES