BIBLIOGRAPHY FRANCISCO, SHERLEY P. APRIL...
BIBLIOGRAPHY
FRANCISCO, SHERLEY P. APRIL 2010. Benchmarking on the Ornamental
Potted Plants in Baguio City. Benguet State University, La Trinidad, Benguet.
Adviser: Andrew K. Del-ong, BSc
ABSTRACT
This study was conducted at the major ornamental potted plants production and
marketing areas in Baguio City in order to get base line information on the industry, to
identify who are the producers including their locations, to identify the kinds and the
outlets of potted plants they produce, and to determine the marketing strategies employed
and the problems they encountered. A total of 44 respondents were interviewed with the
aid of a questionnaire.
The respondents were classified into producers, retailers, and producer -retailers.
Most of them are 40 years old and above although the retailers’ group were relatively
younger (22-30 years old). Majorities are females; all underwent formal education with
significant number earning a college diploma.
As to the length of period they are into the business, majority were engaged into
potted plant business for 11 to 20 years due to the profit it offers and the satisfaction of
their hobby. Almost all are sole proprietors who started business with an initial capital of
Php 20,000 below using their own savings.
Majority of the producers and producer-retailers own their farm and are utilizing a
land area lesser than 500 m . Most of the farms are located in their backyards with a
distance lesser than ten kilometers from the city market.
The commonly grown plants are cactus, foliage, flowering and fruiting
ornamentals. Majority are produced and sold throughout the year. Most of the producers
grow plants in an open field and source the water for irrigation from the water district and
spring.
Most of them cater to the tourists and retailers in the locality. Majority don’t
deliver their products to other places they usually dispose it to their stalls or directly from
their farms. They usually employ direct selling methods and face to face communication
in promoting their products. The pricing strategy frequently employed was cost plus
method and going market rate. Majority require their costumers to pay their products on
cash basis upon pick-up.
Majority don’t hire employees and they frequently encountered the problems on
was the insect pest and diseases and lack of capital.
With these, the key players, government agency and private sector must
collaborate in doing something to improve the quality of the products and the system
used in the business in order to serve the niche market and to compete globally.
ii
TABLE OF CONTENTS
Page
Bibliography…………………………………………………………………….
i
Abstract ………………………………………………………………………... i
Table of Contents ……………………………………………………………… iii
INTRODUCTION
Rationale ……………………………………………………………….. 1
Statement of the Problem ………………………………………………. 2
Objectives of the Study………………..……………………………….. 2
Importance of the Study…………………….………………………….. 3
Scope and Limitation ………...………………………………………... 3
REVIEW OF LITERATURE …………………………………………………. 4
METHODOLOGY
Locale and Time of the Study …………………………………………. 8
Respondents of the Study ……………………………………………… 8
Data Collection ..……………………………………………………….. 8
Data Gathered ………………………………………………………….. 8
Data Analysis …………………………………………………………... 9
RESULTS AND DISCUSSION
Role and functions
of the Respondents……………………………………………………... 10
Socio-Economic Profile of
the Respondents……………………………….………………………..
10
Farm Profile of the
Respondents ………………………………………………………….... 15
iii
Ornamental Plants Commonly
Produced and Sold ………………………………………….…………. 18
Production Practices or
System………………………………………………………………….. 22
Marketing Practices ..…………………………….………………….….. 23
Employment Condition ………………………………………………… 27
Problems
Encountered
in the Industry……………………………………………….………… 28
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary ……………………………………………………..………… 30
Conclusions ………………………………………………………….…. 32
Recommendations …………………………………..…………………. 33
LITERATURE CITED …………………………………………………..……..
35
APPENDIX
A. Letter to the Respondents ……………………………………...…… 36
B. Survey Questionnaire ………………………………………………. 37
iv
1
INTRODUCTION
Rationale
Potting of ornamental plants is one of the specializations of Floriculture, and is
dubbed as the Sunshine Industry of the Philippines. It continues to gain popularity and
recognition in the country and in abroad.
Ornamental plants are synonymous with natural landscape. They nurture us
physically and psychologically. They inspire us, refresh us, and regenerate our lives.
They appeared to be parallel to people’s attitude towards civility, taste, arts and religion
(Ingles, 2001).
Beside the beauty and aesthetic value of ornamental plants, they are also
important for their economic benefits. Production of propagating materials such as seeds,
bulbs and live plants conventionally are being sold. In addition, the material used in
growing plants such as pots, garden tools, fertilizers, mosses and accessories like jars,
plastic dove and other materials are high in demand.
Ornamental plant industry gives great job opportunities and great potential for
generating export income.
One principal center for ornamental production is the Cordillera Administrative
Region (CAR) most especially the City of Baguio and the Province of Benguet, due to its
perfect climatic condition.
Moreover, American and Japanese colonist brought varieties of plants that grew
so well that they redefined farming options of people. In the process, they laid foundation
for a new industry that gave the area new appellation “Salad Bowl of the Philippines” for
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
2
the municipality of La Trinidad and “City of Flowers” for Baguio City (Alejandro and
Santos, 2001).
Finally, entrepreneurs began cultivating ornamental plants as cash crop and have
shifted from their crowding vegetable business. Nowadays, ornamental plant production
is the second most important industry of Benguet. It is also a basis of Baguio City in
conducting its yearly celebration of “Panagbenga” or Baguio Flower Festival.
Importance of the Study
This would help the key players/stakeholders of the industry. They would be able
to determine where to buy and sell ornamental plants effectively and efficiently. It would
enable the stake holders to improve the business operation activities to attain maximum
level of income and to give possible answer to existing problem. This may also generate
employment opportunities because it could reveal the number and skills of employees
needed by the firms. Moreover, the result of the study could be important in planning,
policy formulation, and project proposal development of the ornamental potted plant
industry. This will serve as a reference for other people who would like to further study
the industry.
Statement of the Problem
Basic requirement in proposal development or even in the preparation of the
feasibility study for developmental projects are baseline information. This deals with a
Benchmark study on the Ornamental Potted Plants in Baguio City specifically it would
try to answer the following questions:
1. Who are the major ornamental plant producers in Baguio City and where are
they located?
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
3
2. What kind of ornamental potted plants they produce?
3. Where is the market outlets of ornamental potted plants produced?
4. What are the marketing strategies employed?
5. What are the problems encountered in the industry?
Objectives of the Study
Generally, this study aimed to establish baseline information on ornamental
potted plant in Baguio City. Specifically, it attempted to do the following:
1. Identify and characterize the ornamental plant producers in Baguio City and
their locations
2. Identify the kind of ornamental potted plants they produce;
3. Identify the market outlets for the said ornamentals;
4. Find out the marketing strategies employed;
5. Identify the problems encountered in the industry.
Scope and Limitations of the Study
The study was conducted in major marketing and production areas in Baguio City
specifically Mines View Park, Wright Park, City Orchidarium, Barangay Gibraltar, Camp
7, Pacdal, and Lucnab respectively. The study focused on the ornamental potted plant
producers, the kind of ornamental plants they produce, the marketing strategies
employed, and their market outlet.
Small scale or backyard producers should have been included for a more
comprehensive result, however, financial and time constraint prevented the researcher to
do so.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
4
REVIEW OF LITERATURE
The floriculture industry started as home yard operation and evolved into
profitable business for small and medium entrepreneurs. These led to expansion of
various industries such as real estate development, growth of tourism industry and the
increasing demand of neighboring countries for ornamentals (Naranja, 2007).
The future outlook for ornamental production is bright, as an economic recovery
continues in US and Europe, the primary export markets, floricultural production bound
to expand. With marginal operators out of business, companies remain optimistic about
future expansion of the market and their operations (Anonymous, 1995).
Flowering and green potted plants are the next most important floriculture crop
worldwide (Anonymous, 1995). A large proportion of ornamental potted plants produced
in developed countries are based on the import of plant materials from less developed
countries and most “potted plants species” originated from less developed countries
(Jorgensen, 2009).
The Philippine Ornamental Industry continues to gain popularity and recognition
in the country and more so abroad. The increasing demand for ornamentals has been one
of the pressing issues faced by the ornamental sector today making it self-sufficient,
sustainable and diversified (Hernandez, 2007). Therefore, there is an immense scope for
its expansion. If floriculture is developed on its industry pattern scientifically, it will
flourish and generate tremendous income (Aurora, 1990). Since its incipient stage has
been unable to fully meet an increasing domestic demand. Thus, a substantial portion of
that demand has been met through importation. But the industry has remarkably
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
5
improved over the past decades and has been steadily growing through the years
(Anonymous, 2009).
According to Naranja (2007) the highest export earnings from ornamental plants
came from other live plants at an average of $529,114 annually for the period of nine
years (1991-2000). It ranked number 55 exporters to Netherlands with 76.38 growth rate
(1997-2001). Fresh foliage is the second with a value of $523.824, fresh cut flowers and
flower buds is third ($371,281). The country export market for ornamental plants has
always been dominated by Japan. The second major export market is the United States,
while South Korea ranks third. These are followed by the Netherlands and Canada
(Anonymous, 2009).
The country spent an average of US $769,890 annually for the importation of
ornamental plants from 1991-2001. Major imported ornamental plants were live plants
including cutting and slips (39.8%), orchids (23.9%) fresh flower and buds (16.5%),
processed cutflower and buds, (3.64%) and anthuriums (11.89%). Leading suppliers
were Thailand (26.8%), the Netherlands (21.7%), Israel (20.6%), Malaysia (9.4%), and
the United States (5.1%).
Under Philippine condition, small producers can be classified as those with
growing area less than 500 m2, medium growers are those with more than 500 m2 to one
hectare are, and large operators are those with more than one hectare production area.
Usually, the large or corporate producers serve as the nucleus unit, which establishes
satellites with small and medium operators who become contract growers. These
corporate operators are mostly exporters who have the information on the market
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
6
demand, both in terms of quality and quantity. Presently, the small garden-type farm still
dominates the industry (Naranja, 2007).
Among these large producers are the King Louis Flowers and Plants and the
Highland Crops and Cut Flowers Association in Baguio City; Unigreen in Batangas, one
of the largest exporters of foliage and live plants to Japan and Korea; Worldwide Derling
and Puentespina Orchids and Tropical Plants in Davao City, two of the largest
ornamental plant producers in Mindanao. The principal center for ornamental production
by region includes Cordillera Administrative Region (CAR), Central Luzon, Southern
Tagalog, Northern and Central Mindanao (Naranja, 2007).
In addition, corporate operators could also be cooperatives composed of small and
medium growers. However, in this type of operation, production is usually not sufficient
to satisfy the requirement. They are capable of exploring the foreign market but still
cannot fill the required volume. They resort to accepting produce from non-members of
the cooperative; however, priority is given to the produce of members who also directly
participate in the income of cooperatives.
Specifically for cut flowers, small producers who grow flowers solely or as
intercrops with vegetables and other cash crops supply the bulk of the cut flowers traded
in the domestic market. The big growers engaged in production of roses, orchids,
anthuriums, chrysanthemum, a cursory survey of different nurseries producing mixed
ornamental commodities conducted in 2001 by Rimando and Chavez shows that more
than 60% of their inventories consist of potted foliage, flowering pot plants, and other
landscape materials such as evergreen or flowering shrubs or trees. Foliage plants grown
under full sun include palms, Ficus, Dracaena, junipers, crotons, pines, Cycas, bamboo,
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
7
tea plants, agave, and Sanseveria. The foliage plants that prefer partial shade and are
suitable for interiorscapes are Aglaonema, Philidendron, Calathea, Maranta, ferns,
begonia, Dieffenbachia, Peperomia, foliage, Anthurium, and some Dracaena (Rosario and
Aurigue, 2001).
The climate of Benguet is characterized by pronounced wet and dry seasons with
temperature ranging from 8-26 degrees Celsius making the province suitable for
ornamental production (Nagpala, 2007)
One cannot think Baguio City and its environs without thinking of flowers at the
same time. In many ways, the floral legacy we honor speaks not only a way of life borne
of the molding of our own land roots, foreign origin and highland home. But it also
captures the parallel evolution of flowers industry that continues to enrich with each
variety that blooms in our fair city (Alejandro and Santos 2001).
Baguio’s love affair with plants dates back to the city foundation and from then
on living plants became a way of life -the Botanical Garden, Camp John Hay forest
reserve, the Flower Market, the Orchidarium, extra spacious front yard and its countless
parks. Big or small, through unique style of landscaping has evolved and became popular
throughout Baguio (Alejandro and Santos 2001).
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
8
METHODOLOGY
Locale and Time of the Study
The study was conducted on the different production areas in Baguio City
specifically barangays: Gibraltar, Camp 7, Pacdal and Lucnab as well as the major
market outlets namely: Mines View Park, Wright Park, and City Orchidarium, from
November to December 2009.
Respondents of the Study
All producers in the major production areas as well as the stall owners and/ or
operators in major markets of Baguio City were respondents of this study. A total of 44
respondents were classified as producers, producer- retailers and retailers
Data Collection
The respondents were interviewed personally by the researcher using the prepared
interview schedule. Secondary information was gathered from the Department of
Agriculture- CAR, Local Government Unit, Bureau of Plant Industry, and the
Department of Trade and Industry- CAR.
Data Gathered
The data gathered includes the socio-demographic and economic profile of the
respondents; the kinds of ornamental plants they are producing including their market
outlets; and the problems they are encountering.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
9
Data Analysis
The data collected were consolidated, tabulated and analyzed using appropriate
statistical tools such as frequency counts, mean and percentage.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
10
RESULTS AND DISCUSSION
As shown in Table 1, the 44 respondents were classified according to their role
and function; these were producer-retailers (43.72%), retailers (29.55%) and producers
(22.73%). Result implies that most of the respondents produce and sell their own
products.
These number of respondents are not yet complete with respect to the sum total of
key players in Baguio City since it focused only on the major locations and it excludes
some related business such pottery, seeds, compost, and other decoration. But to compare
it with the record from DTI as of 2008, it revealed that only 11 ornamental plant
businesses were registered; 6 from potted plants and 5 from cut flowers or flower shops.
This reveals that majority of plant businesses were not registered to the DTI.
Socio Economic Profile of the Respondents
This section presents the socio-economic profile of the respondents which include
their distribution according to their age, educational attainment, sex, type of business,
initial capital, their source of capital, their number of years in the business and their
reasons in engaging in potted plant business. The source of income of the respondents
was not included on the table because all the respondents depend on potted plants
business as their source of income.
Age. As shown in Table 2, the youngest of the respondents is 22 years old and
the oldest is 83 years old indicating that people engaged in potted plants industry in the
city of Baguio includes young adults up to senior citizens. Half (50%) of the producer’s
falls within the age range of 58 to 66 years old. On the other hand, majority (46.16%) of
the retailers is relatively younger (22-30 years old).
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
11
Table 1. Distribution of the respondents according to their roles and functions
PARTICULAR
FREQUENCY
PERCENTAGE
Producers
10
22.7
Retailers
13
29.6
Producer -Retailers
21
47.7
TOTAL 44
100
For the producer-retailer group, almost all are 40 years old and above. Results
also show that the mean age of the respondents is 48.81.
The results further show that ornamental potted plant industry is compost mostly
of the middle aged people and senior citizens except for the few young adults. This also
implies that the middle aged people are more interested in ornamental plant business than
young ones. The results also show that old age is not a hindrance in engaging in the
business.
Sex. Females dominate the industry (80%). This may imply that females are more
interested in ornamental potted plants business than males.
Educational attainment. Majority of the producers (70%) reached and finished
high school while retailers (38.46%) and producer-retailers (47.62%) reached and
finished college. Most of the respondents (43.18%) reach and finished high school. A
significant 36.36% reached college. Results on their level of education favors on their
vocation for according to studies, literate people are more receptive. Education is an
advantage in managing business and enables individuals understands business
transactions.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
12
Table 2. Distribution of respondents according to socio-economic profile
PRODUCER-
PARTICULARS
PRODUCERS
RETAILERS
RETAILERS TOTAL
F
%
F
%
F
%
F
%
Age
22-30
1 10 6
46.16 - - 7 15.9
31-39
1 10 - - 1 4.76 2 4.54
40-48
1 10 3
23.08 8 38.1
12
27.28
49-57
1 10 3
23.07 6
28.58
10
22.74
58-66
5 50 - - 3
14.28
8
18.18
67-75
- - 1
7.69
3
14.28
4
9.09
76-83
1 10 - - - - 1 2.27
TOTAL
10 100 13
100.00
21 100 44 100
Sex
Male
- -
1
7.7
3
14.28
4
20
Female
10 100
12 92.3 18
85.72
40 80
TOTAL 10
100
13
100
21
100
44
100
Educational
attainment
Elementary
2 20 4 30.77 2 9.52 8 18.18
High School
7 70
4
30.77
8
38.1
19
43.18
College
1 10
5
38.46
10
47.62
16
36.36
Vocational
- -
- - 1
4.76
1
2.28
TOTAL 10
100
13
100
21
100
44
100
Number of years in
business
less than 10
3
30
8
61.54
6
28.57
17
38.64
10 to 20 yrs.
4
40
2
15.38
12
57.14
19
43.17
20 to 30 yrs.
1
10
3
23.08
3
14.29
6
13.64
31 and above
2
20
-
-
-
-
2
4.55
TOTAL 10
100
13
100
21
100
44
100
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
13
Table 2. continued…
PRODUCER -
PARTICULARS PRODUCERS RETAILERS
RETAILERS TOTAL
F % F % F % F %
Type of business
Sole proprietorship
10 100 11 84.62 21 100 42 95.46
Partnership
- - 2
18.38 - - 2
4.54
TOTAL
10 100 13 100 21 100 44 100
Initial capital
20,000 and below
9 90 9 69.23 11 52.38 29
65.91
20,001-40,000
1 10 4 30.77 6 28.57 11 25
40,001-60,000
- - - - 3 14.29
3
6.82
60,001 and above
- - - - 1 4.76 1
2.27
TOTAL
10 100 13 100 21 100 44 100
Source of capital
Savings
10
100
7
46.66
18
69.23
35
68.64
Borrowed
- - 6 40 3 11.54
9
17.64
from Coop
Loan from bank -
-
1
6.67
2
7.69
3
5.88
Borrowed from
informal lender
- - 1
6.67 3 11.54
4
7.84
TOTAL
10 100 15 100 26
51 100
Reasons for engaging in potted
plants business
Hobby
7 50 3
16.67 9 24.32
21
29.58
Profit
4 28.57 10 55.55 12 32.43 26 36.62
Relevant skill
and talent
- -
3
16.67
4
10.81
7
9.85
Influence of
family
2 14.29
- -
9 24.32 11 15.5
Promising
- -
2
11.11
3 8.1 5
7.05
demand
Therapeutic
1 7.14 - -
- - 1 1.4
effect
TOTAL
14 100 18 100 37 99.98 71 100
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
14
Type of business. Except for the retailer groups were 4.54% are partnerships, all
of the businesses in potted plants in Baguio City are sole proprietorships.
Initial capital. Majority of the respondents (65.91%) started their business with a
capital of Php 20,000 and below. Results indicate that ornamental potted plants business
doesn’t require much capital to start up operation.
Source of capital. Majority (68.64%) of the respondents sourced out their capital
from their own savings. The rest borrowed it from cooperatives (17.64 %), from informal
lenders (7.84%), and loan from banks (5.88%).
Number of year in the business. As to the number of years in the business, results
shows that more of the respondents (43.17%) were into the business for around 11 to 20
years with an average of 16.59 years.
The results show that potted plant industry in Baguio City started many years ago
with 4.55% engaged in the business for almost 30 to 40 years. It also shows that people
are aware of the economic importance of potted plants. According to Alejandro, Baguio’s
love affair with flowers dates back to the city’s foundation and from then on, living plants
become a way of life. This is also in connection with what an author said that since its
incipient stage has been unable to fully meet an increasing domestic demand. Thus, a
substantial portion of that demand has been met through importation. But the industry has
remarkably improved over the past decades and has been steadily growing through the
years (Anonymous, 2009).
Reasons in engaging in potted plants business. As to the reasons why the
respondents engaged in the business, majority (70%) of the producers producing
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
15
ornamental plans says it’s their hobby. While most of the retailers (55.55%) and
producer-retailers (32.62%) engaged in the business due to the profits it offers.
In general, most (36.62%) engaged in the business due to profit, 29.58% because
it’s their hobby, 15.5% due to the influence of their family and friends, 9.85% due to their
relevant skill and 7.05% due to its promising demand.
Farm Profile of the Respondents.
This section presents the farm profile of the respondents (Table 3) which includes
the location of the farms/production areas, their distance of farm from Baguio public
market, and from their own residence, land ownership and tenure and the total area they
occupy. Retailers were not included in this section since they don’t plant ornamental, thus
they don’t own farm.
Farm location. As to the location of the farm of the producers, they are located at
Barangay Gibraltar (30%), Pacdal (30%), and Camp 7 (30%) with a few (10%) located in
Pucsusan. For the producer-retailers a significant (23.81%) were located at Gibraltar
others are located at Pacdal (14.28%),Outlook Drive (9.68%), Balacbac (9.68%), Mines
View (9.68%), Lucnab and General Luna both (6.52%). However, it is significant to note
that 14.29% and 9.52% have farms that are located outside the city, particularly in nearby
province of Benguet and La Union respectively.
These was related to the details given by Dr. Divina Calado Jose, a researcher
from BPI-BNCRDC, that the production area in Baguio City includes Camp 7, Mines
View, Lualhati, Outlook Drive, Irisan and Asin which been supported by the data from
DTI and Barangay Captains that includes Pucsusan, Camp 7, Sto. Thomas School Area,
Burnham-Legarda, Loakan, Irisan, and Asin.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
16
Table 3. Distribution of the respondents according to their farm profile
PRODUCER -
PARTICULAR PRODUCERS
RETAILERS TOTAL
F
%
F
%
F
%
Farm Location
Gibraltar
3 30 5 23.81 8
25.81
Outlook drive
- - 2 9.52 2
6.45
Lucnab
- - 1 4.76 1
3.23
Camp 7
3 30 - - 3 9.68
Pucsusan
1 10 - - 1 3.23
Mines View
- - 2 9.52 2
6.45
Balacbac
- - 2 9.52 2
6.45
Pacdal
3 30 3 14.29 6
19.35
Gen. Luna
- - 1 4.76 1
3.23
Benguet
- - 3
14.29
3
9.68
La Union
- - 2 9.52 2
6.45
TOTAL
10 100 21 100 31 100
Distance of farm from
Baguio Public Market
Lesser than 5km
6 60 8 38.1 14
45.16
6 to 10 km
4 40 10 47.62
14
45.16
11 to 15 km
- - 1 4.76 1
3.23
above 15 km
- - 2 9.52 2
6.45
TOTAL
10 100 21 100 31 100
Distance of farm
from their residence
Lesser than 1 km
10 100 15 71.43 25 80.64
1 to 5 km
- - 3
14.28
3
9.67
6 to 10 km
- - 1 4.76 1
3.22
above 10 km
- - 2 9.52 2
6.45
TOTAL
10 100 21 99.99 31 99.98
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
17
Table 3. continued…
PRODUCER -
PARTICULAR PRODUCERS
TOTAL
RETAILERS
F
%
F
%
F
%
Land Ownership
Owned
9
90
17
80.95
26
83.87
Rented
0
0
3
14.29
3
9.68
Caretaker
1
10
1
4.76
2
6.45
TOTAL
10
100
21
100
31
100
Total Area Occupied
500m2 and below
9
90
11
52.38
20
64.52
501m2-1 hectare
1
10
7
33.33
8
25.81
1 hectare and above
-
-
3
14.29
3
9.68
TOTAL
10
100
21
100
31
100
Distance of farms from Baguio City public market. For sole producers, majority
(60%) of their farms are located less than 6 km from the Baguio City public market and
the remaining 40% are between 6 km to 10 km from the city market. For the producer
retailers group, most (47.62%) are located 6 km to 10 km away from the city market,
while significant 38.1% are less than 6 km away, 9.52% are above 15 km and the
remaining 4.76% are at a distance of 11 km to 15 km away from the city market.
In general, majority of the respondents are located less than 5 km (45.16%) and 6
km to 10 km (45.16%) away from the city market. This shows that ornamental potted
plant farms are near to the major marketing outlets.
Distance of farm from own residence. All of the producers (100%) and majority
of the producer-retailers (71.43%) have their farms located less than 1km away
residence. This shows that most of the respondents cultivate potted plants on their
backyard or what we call “backyard garden” this collaborates to the study of Naranja
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
18
(2007) that “the industry started as a home yard operation and evolved into a profitable
business”.
Land ownership and tenure. Majority (79.54%) of the producers and producer
retailers owned their farms. The rest rented (9.68) or entrusted/ caretakers (6.45 %).
Total area occupied. Majority of the respondents (75%) claimed to be utilizing a
land area lesser than 500 m2. The data supports why the respondents owned the land they
used in production of ornamental potted plants. Most of the respondents are small
producers. According to Nagpala (2007), small producers can be classified as those with
growing area less than 500 m2, medium producers are those with more than 500 m2 to
one hectare and large operators are those with more than one hectare production area. .
Usually, the large or corporate producers serve as the nucleus unit, which establishes
satellites with small and medium operators who become contract growers. These
corporate operators are mostly exporters who have the information on the market
demand, both in terms of quality and quantity. Presently, the small garden-type farm still
dominates the industry.
Kinds of Ornamental Plants
Table 4 shows the ornamental plants commonly planted and sold and the criteria
used in selecting plants for sale.
Ornamental plants commonly planted and sold. The ornamental plants commonly
planted are cactus, foliage, flowering and fruiting ornamentals. For cactus, succulents are
the most common followed by rare cactus (59.09%) and euphorbia (31.82%). It is
significant to note that for pure retailers, the most common is rare cactus (92.31%). For
flowering plants, the most common are Anthuriums (65.91%); followed by Impatience
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
19
Milflores, Gumamela, Azalea, Marigold, Bougainvillea and Japanese Anthuriums; Roses,
Malaysian mums, Begonia and Salvia; Dancing lady and Daisy. For the foliage group, the
most common are Cereza bonsai (72.33%), Bromeliads (70.45%), Fortune plants and
kutcharita (both 61.76%), and Peperomea (56.82%). For the fruiting group, the most
common are Money Trees (72.73%) as these are the most popular ones among
consumers, Jerusalem berries (40.91%), and Korean Pepper (31.82%).
Table 4. Distribution of the respondents according to the ornamental plants commonly
planted and sold and the criteria used in selecting plants for sale
PRODUCER-
PARTICULARS PRODUCERS RETAILERS
TOTAL
RETAILERS
F
%
F
%
F
%
F
%
Cactus
Socculent
7
70
8
61.54
14
66.67
29
65.91
Rare cactus
3 30 12 92.31 11 52.38
26
59.09
Euphorbia
1
10
7
53.85
6
28.57
14
31.82
Flowering Plants
Anthuriums
5 50 8 61.54 16 76.19
29
65.91
Impatients
4
40
6
46.15
11
52.38
21
47.73
Milflores
3 30 7 53.85 11 52.38
21
47.73
Gumamela
3
30
8
61.54
10
47.62
21
47.73
Dancing Lady
2 20 6 46.15 8 38.1
16
36.36
Rose
-
-
9
69.23
8
38.1
17
38.64
Malaysian
1 10 8 61.54 8 38.1
17
38.64
Japanese
4
40
6
46.15
8
38.1
18
40.91
Anthuriums
Begonia
6 60 6 46.15 5 23.81
17
38.64
Azalea
4
40
8
61.54
9
42.86
21
47.73
Salvia
6 60 5 38.46 6 28.57
17
38.64
Bougainvillea
3
30
8
61.54
7
33.33
18
40.91
Marigold
4 40 9 69.23 6 28.57
19
43.18
Daisy
5
50
5
38.46
6
28.57
16
36.36
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
20
Table 4. continued…
PRODUCER-
PARTICULARS PRODUCERS
RETAILERS
TOTAL
RETAILERS
F % F %
F %
F %
Foliage
Kutcharita
6
60
9
69.23
12
57.14
27
61.36
Bromeliads
6 60 10 76.92 15 71.43 31 70.45
Ceresa Bonsai
4
40
8
61.54
20
95.24
32
72.73
Dracaena
5 50 9 69.23 13 61.9 27 61.36
Peperomia
4
40
7
53.85
14
66.67
25
56.82
Fruiting
ornamentals
Money Tree
5
50
10
76.92
17
80.95
32
72.73
Jerusalem berries
1 10 8 61.54 9 42.86 18 40.91
Korean Pepper
-
-
7
53.85
7
33.33
14
31.82
Criteria in Selecting
Plants for sale
Size
4
14.81
8
40
10
33.33
22 28.56
Appearance
10 37.04
10
50
18 60.01
38 49.35
Health
1
3.7
1
5
1
3.33
3
3.9
With flowers
8 29.63
-
-
1 3.33
9 11.69
Price
1
3.7
1
5
-
-
2
2.6
Customer choice
3 11.11
-
-
-
-
3
3.9
TOTAL
27
99.99
20
100
30
100
77
100
Results of the study imply that a wide range of potted ornamental products are
produced and sold. Both the producers and producer – retailers employed multi-cropping
in order to produce different varieties at the same time. This finding further support the
cursory survey of different nurseries producing mixed ornamental commodities
conducted in 2001 by Rimando and Chavez that showed that more than 60% of their
inventories consist of potted foliage, flowering pot plants, and other landscape materials
such as evergreen or flowering shrubs or trees.
As stated by Dr. Jose, the ornamental plant commonly produced in the city
includes cactus, anthurium, gladiolus, mums, roses, bromiliads, gumamela, eugrivia, San
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
21
Francisco, and lilium. Moreover, she added that most of the seedlings of the plants grow
were imported from US, Malaysia, Europe, Thailand, and Japan brought by OFW’s,
Foreigners, and Tourists. These was further explained by Mr. Arnold Aromin of the City
Orchidarium who import different varieties of plants adaptable in the city and by Mrs.
Bernadette Aquino, a producer from Camp 7, who claimed that the variety cultivated
was source from Japan. Furthermore, these confirms the statement of Alejandro N.
Santos (2001) that the “American and Japanese colonists brought varieties of plants that
grew so well that redefined the farming options of the people”.
On the other hand, Ms. Jennifer Lang-ay, a retailer from Wright Park, stated that
some plants such as Malaysian mums, Milflores, Roses, and Asters were source from the
municipality of La Trinidad. The bonsai or shrubs such as juniper, boxwood, Chinese
holy and pycus were source from Bulacan. In addition, Mrs. Maria Luisa Patogan of City
Orchidarium added that some varieties of bromeliads and orchids were source from
Aurora Province.
As to the volumes of production or demands, they don’t give an exact figure since
most of them don’t have records in their business transactions and they have different
unit of measurement. They simply stated that the volume of production varies depends on
the rate of the inventory turnover, supply and demand, space utilized and available
capital.
Criteria in selecting plants for sale. The primary reasons considered by the
respondents in selecting plants for sale are their over-all appearance (49.35%) and size
(28.56%).
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
22
Production Practices or Systems
Table 5 shows the frequency of production and sales, production methods used
and sources of irrigation
Frequency of production and sales. For the producers, a total of 50% produce
and sells seasonally, while the other half (50%) are throughout the year. Only 15.385% of
the retailers produce and sells seasonally, the rest (84.62%) produce and sells throughout
the year. For producer-retailers 27.28% of their production and sales is seasonal and the
remaining 72.72% is throughout the year.
Those who produce and sell throughout the year, the primary reasons behind are
adequacy of the products (52.38%), and continues demand of the products (40.48%). For
those who produce and sell seasonally, main reasons are the seasonality of products
(76.92%) and seasonality of demand (23.08%).
In general, majority (72.72%) of the respondents produce and sell throughout the
year. The rest produce and sell ornamental plant when said plants are in their production
seasons or in demand.
Source of irrigation. Majority of the respondents (47.73%) irrigate their farms
from springs, 34.09% from water district and 15.9% rely on rain water. These reveal that
majority of the respondents rely on natural sources for irrigation.
Production methods. Majority (49.06%) of the respondents plants on open field,
26.41% cultivate them on greenhouse while 24.52% simply maintain their ornamental
plants on their stalls.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
23
Table 5. Distribution of the respondents according to the production system employed
PRODUCERS RETAILERS PRODUCER-
TOTAL
PARTICULARS
RETAILERS
F % F % F % F %
Frequency of production
Through out the year
5
50
11
84.62
16
76.2
32 72.72
Seasonal only
5
50
2
15.38
5
23.8
12 27.28
TOTAL
10 100 13 100 21 100 44 100
Reasons on why they produce
throughout the year
Continues demand
2
25
7
43.75
8
44.44
17 40.48
Adequacy of product
6
75
8
50
8
44.44
22 52.38
Source of living
1
6.25
2
11.12
3
7.14
TOTAL
8 100 16 100 18 100 42 100
Reasons on why they
produce seasonally
Seasonality of
product 4
66.7
2
66.66
4
100
10
76.92
Seasonality of
demand
2
33.3
1
33.33
3
23.08
TOTAL 10
100
13
100
21
100
44
100
Source of Irrigation
Rainfall
1
10
1
7.69
5
23.82
7
15.9
Spring
7
70
1
7.69
13
61.9
21
47.73
Water district
2
20
11
84.62
2
9.52
15
34.09
Deep well
0
0
0
0
1
4.76
1
2.28
TOTAL 10
100
13
100
21
100
44
100
Production methods
Green house
4
33.33
0
0
10
35.71
14
26.42
Open Field
8
66.67
0
0
18
24.29
26
49.06
Potted plants stall
0
0
13
100
0
0
13
24.52
TOTAL 12
100
13
100
28
60
53
100
Marketing Practices
Table 6 shows the marketing aspect of the industry which includes the origin of
customer and buyers, if products are for delivery or not, selling area, methods of selling
their products, medium of communication, basis of pricing, customers mode of payment
and their pricing strategies employed.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
24
Customers and buyers. Majority of the producers caters to their neighbors (36%),
to retailers (32%) and wholesalers (32%). For retailers, majority caters to tourist (32.5%),
to wholesalers (22.55), and to fellow retailers (22.5%) while majority of the producer-
retailers caters to tourist (31.58%), wholesalers (23.69%) and retailers (21.05%).
Origin of buyers. All of the farmers (100%) sell their products to customers into
their locality and throughout Baguio City. The respondents are the ones who supply the
major selling area in Baguio City. For retailers, majority of their customers are local
tourists/domestic buyers (45.45%), residents of Baguio City (40.09%) and foreigners/
exporter (13.65%). For farmer-retailers, majority (48.83%) of their customers are local
buyers, 41.86% are local tourists/ domestic buyers and foreigners/exporter (9.33%).
Result implies that local buyers (53.33%) still dominate the buyers of the
ornamental potted plants industry, followed by local tourist/ domestic buyers and
foreigners/exporter. This somewhat supported the study of Hernandez (2007) where he
mentioned that the “Philippine Ornamental Industry continues to gain popularity and
recognition in the country and more so abroad”.
Delivery of products. Majority of the producers (70%), retailers (76.92%), and
producer-retailers (65.9%) don’t deliver their products. On the other hand 30% of the
producers deliver their products to their customers. 23.08% of the retailers and 42.86% of
the producer-retailers delivers and sell their products directly to their customers from
other places such as Metro Manila, Bulacan, Isabela, Pangasinan, Laguna, Batangas, and
other places in the city. In general, 65.9% of the respondents don’t deliver their products
while 34.1% deliver. This implies that majority of the respondents has no outlet or
business transaction outside the city.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
25
Table 6. Distribution of the respondents according to their marketing practices
PARTICULARS
PRODUCERS RETAILERS
PRODUCER-
TOTAL
RETAILERS
F
% F % F % F
%
Stall
Location
Baguio City
- - 7 50 9 42.86
16
45.71
Orchidarium
Mines View Park
-
-
3
21.43
2
9.52
5 14.29
Wright Park
-
-
4
28.57
8
38.1
12 34.29
Botanical Garden
-
-
-
-
2
9.52
2
5.71
TOTAL
-
-
14
100
21
100
35
100
Customers or Buyers
Neighbors
9
36
5
12.5
5
13.16
19
18.44
Retailers
8
32
8
20
8
21.05
24
23.32
Wholesalers
8
32
9
22.5
9
23.69
26
25.24
Institutional
buyers
- - 3 7.5 2 5.26 5
4.85
Contract
growers
- - 1 2.5 2 5.26 3
2.91
Tourist
-
-
13
32.5
25
31.58
25
24.27
Landscapers
-
-
1
2.5
-
-
1
0.97
TOTAL 25
100
40
100
51
100
103
100
Origin of Buyers
Local
10
100
9
40.9
21
48.83
40
53.33
National
-
-
10
45.45
18
41.86
28
37.34
International
-
-
3
13.65
4
9.31
7
9.33
TOTAL 10
100
22
100
43
100
75
100
Delivery
of
product
Deliver
3
30
3
23.08
9
42.86
15
34.1
Don’t deliver
7
70
10
76.92
12
57.14
29
65.9
TOTAL 10
100
13
100
21
100
44
100
Mode of payment of
customers
Cash on Delivery
1 7.69 5 33.33 6 20.68
12
21.05
Cash on Advance
- - 2
13.33
1
3.44
3
5.27
Cash on Pick- up
8 61.5 8 53.34 20 69.98
36
63.15
Credit
4
30.8
-
-
2
6.9
6
10.53
TOTAL 13
100
15 100 29 100 57 100
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
26
Table 6. continued…
PARTICULARS
PRODUCERS RETAILERS
PRODUCER-
TOTAL
RETAILERS
F
%
F
%
F
%
F
%
Pricing strategy
involved
Sale
1
10
4
22.22
5
14.28
10
15.87
Discount
5
50
11
61.11
22
62.85
38
60.32
Bulk pricing
4
40
3
16.67
8
22.87
15
23.81
TOTAL
10 100 18 100 35 100 63 100
Selling area. Most (83.33%) of the producers sell their products directly in their
farms while the rest (16.37%) deliver their products to potted plants stalls. All (100%)
retailers sell their products in their stalls. For producer-retailers, majority (73.08%) sells
their products in their stalls and the remaining 33.33% are selling directly from their
farms.
Method of selling. All of the producers (100%) use direct selling in dealing their
products. For retailers, most (93.75%) use direct selling, the rest (6.25%) employ sales
agents. All of the producer-retailers use direct selling in selling their products.
In general, almost all (98%) of the respondents employ direct selling.
Medium of communication. As to the medium of communication used by the
respondents, majority (53.33%) of the producers are interacting face to face with buyers.
On the other hand, 46.67% communicate through sales agents. For retailers, majority
(66.67%) are also through face to face, same with those of farmer retailers (63.33%).
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
27
In general, majority (61.9%) of the respondents interacts face to face with buyers
as a medium of communication; a significant 22.22% through sales agents and others
(15.88%) communicate through cellular phones. This implies that majority of the
respondents still use traditional method in communicating to buyers.
Basis of pricing. More (46.67%) of the producers follow the going to market rate
as their basis in pricing their products. A significant 33.33% employ the cost plus method
while the remaining 20% use the perceived value pricing. The aforementioned
characterization is exactly the same with those of the retailers group. For the producer-
retailers, the method employed in pricing products are almost equally distributed among
the three methods: 34.80% of the respondents uses the going to market rate method,
another use perceived value pricing (34.80%), and the rest (31.20%) use cost plus
method.
In general, 37.7% of the respondents employ cost plus method, 34.40% follows
the going rate pricing, and 27.87% use the perceived value pricing.
Customer’s mode of payment. As to mode of payment of customers, majority
(61.54%) of the producers, retailers (53.34%), producer-retailers (68.98%) customers pay
in cash upon pick up. In general, majority (63.15%) of the respondents customers pay in
cash upon pick up.
Employment Condition
Table 7 shows whether they hire employees or not and the number of employees
hired. Majority (63.64%) of the respondents don’t hire employees. They are the ones
managing their potted plants business with the help of their family.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
28
The remaining 36.36% hire employees who help them in producing and selling
the products where majority (82.35%) hires at least three (3) workers. As to the skills that
the employees must possess, they prefer hardworking, with knowledge to technologies,
know how to persuade, trustworthy and responsible.
This shows that the industry provide employment not only to the owners
themselves but also to other people.
Table 7. Distribution of the respondents whether they hire workers and the number of
employees hired
PRODUCER-
PARTICULAR PRODUCERS
RETAILERS RETAILERS TOTAL
F
%
F
%
F
%
F
%
Condition
Hires employees
1
10
8
66.67
7
33.33 16 36.36
Don’t hire
9
90
5
33.33
14
66.67 28 63.64
TOTAL
10 10 13 100 21 100 44 100
No. of employees hired
1 to 3
1
100
6
75
7
87.5
14 82.35
4 to 6
0
0
2
25
0
0
2
11.77
7 to 10
0
0
0
0
1
12.5
1
5.88
TOTAL 1
100
8
100
8
100
17
100
Problems Encountered
Table 8 shows the problems encountered by the industry. On the side of the
producers, 22.72% have encountered a problem on insect pest and diseases; both lack of
capital and lack of planting materials account both 13.6%, lack of standards and seed
availability (9.1%). Soil depletion, seasonality of demand and price competition accounts
4.5%. On the retailer’s side, they had a burden on insect, pest and diseases (30%) and
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
29
lack of capital (15%). While most of producers-retailers were bothered on sourcing
capital and seasonal demand (both 20.83%).
In general, the following are the major problem faced by the respondents. Insect
pest and diseases (24.48%), lack of capital (16.28%), lack of standards and lack of
planting materials both 10.47%, seasonality of demand (9.3%), seed availability (6.98%),
soil depletion (5.81%), seasonality of production and seasonality of commodities are both
4.65%, price competition (3.49%), natural calamities, source of irrigation and mortality
rate was 1.16%. In addition, we could also consider the lack of fund of the DA for the
research and development of ornamentals plants as cited by Dr. Jose.
Table 8. Distribution of the respondents according to the problems they encountered
PRODUCERS
RETAILERS PRODUCER-
TOTAL
PARTICULARS
RETAILERS
F % F % F %
F %
Seed availability
2 9.1 2 5 2 8.33
6
6.98
Soil depletion
1
4.5
3
7.5
1
4.16
5
5.81
Insect pest and
disease
5 22.7 12 30 4 16.6
21
24.42
Seasonality of
1 4.5 1 2.5 2 8.33
4
4.65
production
Seasonality of
2 9.1 0 0 2 8.33
4
4.65
commodities
Lack of capital
3 13.6 6 15 5 20.83
14
16.28
Lack of standards
2 9.1 5 12.5
2 8.33
9
10.47
Lack of planting
3 13.6 5 12.5
1 4.16 9 10.47
materials
Seasonality of demand
1 4.5 2 5 5 20.83
8 9.3
Price competition
1 4.5 2 5 0 0 3 3.49
Mortality rate
0 0 1 2.5 0 0 1
1.16
Source of irrigation
0 0 1 2.5 0 0 1
1.16
Natural calamities
0 4.5 0 0 0 0 1 1.16
TOTAL
21 99.7 40 100 24 99.9 86 100
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
30
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted in Baguio City. It focused mainly to gather base-line
information on the potted plant industry in the locality.
The respondents were classified into producers, retailers, and producer - retailers.
They represent the major producers and retailers in the ornamental potted plant industry
in Baguio City. Most of them are 40 years old and above although the retailers’ group
were relatively younger (22-30 years old). Majorities are females; all underwent formal
education with significant number (36.36%) earning a college diploma.
As to the length of period they are into the business, majority were engaged into
potted plant business for 11 to 20 years. Almost all are sole proprietors who started
business with an initial capital of Php 20,000 below using their own savings. They were
enticed to engaged and continue in business primarily because of the profit they are
realizing, it’s their hobby and partly influence of their families.
Majority of the producers and producer-retailers own their farm and are utilizing a
land area lesser than 500
. Their farms are spread-out in the city which includes
Barangay Gibraltar, Camp 7, Pacdal, Pucsusan, Outlook Drive, Balacbac, Mines View,
Lucnab and General Luna. Most of the farms are located in their backyards with a
distance lesser than ten kilometers from the city market.
The commonly grown plants are cactus, foliage, flowering and fruiting
ornamentals. For cactus, succulents are the most common followed by rare cactus and
euphorbia. For flowering plants, the most common are Anthuriums, Impatience,
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
31
Milflores, Gumamela, Azalea, Marigold, Bougainvillea and Japanese Anthuriums; Roses,
Malaysian mums, Begonia, Salvia, Dancing lady and Daisy. For the foliage group, the
most common are Ceresa bonsai, Bromeliads, Fortune plants, kutcharita, and Peperomea.
For the fruiting group, the most common are Money Trees, Jerusalem berries, and Korean
Pepper. Majority are produced and sold throughout the year. Most of the producers grow
plants in an open field and source the water for irrigation from the water district and
spring.
The stall location of the retailers includes Baguio City Orchidarium, Mines View
Park, Wright Park and Botanical Garden. Most of them cater to the tourists and retailers
in the locality, domestic market and some includes export market. Majority don’t deliver
their products to other places they usually dispose it to their stalls or directly from their
farms but a significant number of the respondents (34.1%). They usually employ direct
selling methods and face to face communication in promoting their products. The pricing
strategy frequently employed was cost plus method and going market rate. Majority
require their costumers to pay their products on cash basis upon pick-up.
Majority of the respondents don’t hire employees but a significant number
(36.36%) hires employees. They encountered the problems on insect pest and diseases,
lack of capital, lack of standards and lack of planting materials, seasonality of demand,
seed availability, soil depletion, seasonality of production and seasonality of
commodities, price competition, natural calamities, source of irrigation and mortality
rate. In addition, we could also consider the lack of fund of the DA for the research and
development of ornamentals plants as cited by Dr. Jose.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
32
Conclusions
Based on the findings of the study, these conclusions were drawn.
1. There are at least 50 major producers and retailers in the ornamental potted
plants business in Baguio City although 44 were the only ones actually interviewed.
Majority of the people engaged in Ornamental Potted Plant Business were dominated by
females and middle aged individuals. All of them were literate with a significant number
earning college diploma. Majority source their initial capital from their own savings.
Almost all were sole proprietor. Most of them are the one who sell and producing their
products and usually do it for profit.
2. The commonly grown plants are cactus, foliage, flowering and fruiting
ornamentals. Most of them employ multi-cropping since they produce different varieties
of plants at the same time. Except for the seasonal ornamentals, they usually produce
throughout the year since there is demand through out the year
3. Farms were distributed through-out Baguio City such as Barangay Gibraltar,
Camp 7, Pacdal, Pucsusan, Outlook Drive, Balacbac, Mines View, Lucnab and General
Luna. Most were backyard farms and are accessible and most are owned by producers/
operators themselves.
4. Most farmers plant on the open field and they usually rely their water for
irrigation in naturals sources such spring and rainfall.
5. They have different buyers from different areas. The stall location of the
retailers includes Baguio City Orchidarium, Mines View Park, Wright Park and Botanical
Garden. Majority sells on their stalls and farm and they doesn’t take risk in delivering
their product to other areas but still a significant number delivering to domestic and
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
33
export market. They also use the traditional way of disposing their products; using direct
selling and face to face communication.
6. The industry provides employment not only to the owners themselves but also
to other people.
7. The problems they encountering was on insect pest and diseases, lack of capital,
lack of standards and lack of planting materials, seasonality of demand, seed availability,
soil depletion, seasonality of production, seasonality of commodities, price competition
,natural calamities, source of irrigation and mortality rate. In addition, we could also
consider the lack of fund of the DA for the research and development of ornamentals
plants as cited by Dr. Jose
Recommendations
Based on the findings and conclusion, the following recommendations are
offered.
1. Since there’s a lot of people engaged and benefiting in the industry, the
government agency such as DTI, DA and DOST must take a look on how to help the
stake holders in the industry to further improve their business operations. They may
extend help by financing the business, introducing new technologies and new varieties of
plants, educating the key players regarding Bookkeeping and Insect pest and management
and disseminate related researches for them to be more productive and in return they
could also help in the development of the locality.
2. In view of the fact that they don’t fulfill yet the domestic demand including the
foreign demand because majority of respondents sell only their products in their farms
and stalls, market research and development must be reinforced to understand more
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
34
their market for them to create effective marketing strategies, serve the niche market,
increase market coverage and to compete globally.
3. The key players must look beyond to improve their business; they must not be
complacent on their operations. They must grow new and resistant varieties which are in
demand not only in the country but to the export market as well. They must learn to
employ technologies such as the aid of computer for marketing and the use of greenhouse
in continues production of the commodities. They should have a quality control and
management of their product to become more competitive.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
35
LITERATURE CITED
ALEJANDRO, R. and V.R SANTOS,. 2001. Flowers of Baguio. National Bookstore and
Anvil Publishing. Baguio City.
ANONYMOUS. 2009. Domestic Demand of Ornamental Plants in the Philippines.
Retrieved October 14, 2009 http://maidon.pcarrd.dost.gov.ph/joomla/index.php?
Option =com_content&task=view&id=1055&Itemid=748
ANONYMOUS. 1995. International Perspective. Food and Agribusiness Monitor. XI
(8):10
ANONYMOUS. 1995. Key Facts about World Floriculture Production Food and
Agribusiness Monitor. XI (9):16
AURORA, J.S. 1990. Introductory to Ornamental Horticulture. Kalyani Publishers, New
Delhi-Ludhiana. Pp 3, 4, 9.
HERNANDEZ, M. E. 2007. Intensifying Ornamental Plant Industry through Plant
Breeding. BAR R&D Digest. IX (1):5, 6
INGLES, J. 2001. Ornamental Horticulture Science, Operation and Management.
Delmar Thompson Learning, Cobleskill, New York, USA. Pp 2, 108
JORGENSEN, B. 2009. Suitable Trade in Ornamental Horticulture. Retrieved August
12, 2009. http://www. actahort.org/books/630/600_14.htm
NAGPALA, E.G. 2007. Panagbenga. BAR R&D. IX (1):23-24
NARANJA, L.P. 2007. Sunshine Industry of the Philippine. BAR R&D Digest. IX (1):
3-4.
ROSARIO AND AURIGUE, 2001. Floricultural Crops. Retrieved October 14, 2009.
www.maidon.pcarrd.dost.gov.ph
RIMANDO and CHAVES. 2001. Cursory Survey of Different Nursery Producing mixed
Ornamental Commodities. Retrieved October 14, 2009. www.pcarrd.dost.gov.ph
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
36
APPENDIX A
Letter to the Respondents
Benguet State University
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS AND
AGRIBUSINESS MANAGEMENT
La Trinidad, Benguet
Sir/Madam:
I am Sherley P. Francisco, a fourth year BS Agribusiness student major in
Enterprise Management of Benguet State University. I am presently conducting a
research titled, “Benchmarking on the Potted Plant Industry in Baguio City” as a partial
requirement of my course.
In
this
connection, may I request a portion of your precious time to answer the
attached questionnaire and please give your honest answers. Rest assured that all
information you will provide will be treated with utmost confidentiality.
Thank you very much for sharing me a part of your most precious time. God
Bless!
Sincerely yours,
SHERLEY P. FRANCISCO
Noted:
ANDREW K. DEL-ONG
Adviser
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
37
APPENDIX B
Survey Questionnaire
A. Respondent’s Profile
Name: ________________________________
Age: _________________________________
Address:
Contact Numbers: _
Highest Educational Attainment:
____a. Elementary
____b. High school
____c. College; pls. state course and degree: _____________________________
____d. Vocational: pls. state course: ___________________________________
Sources of Income: ___________________________
Others pls. specify:________________________
Average Monthly Income: _____________________
Occupation:
____a. farmer
____d. farmer- retailer
____b. retailer
____e. retailer- wholesaler
____c. wholesaler
____Others please specify:
Number of years in business: __________________
Type of Business:
____a. sole proprietorship ____c. Government owned business
____b. partnership
Initial Capital:
____1000-50000
____5001-100000
____100001 and above
Source of Capital
____a. savings
____c. loans from banks
____b. borrowed from cooperative
____d. borrowed from informal lenders
____e. others pls. specify: ___________
Membership to any organization/cooperative related to ornamental plants:
a.
____________
c.
________________
b.
____________
d.
________________
Benefits derived from membership:
a.
___________ c.
________________
b.
___________ d.
________________
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
38
Why do you choose Potted Plants as business?
____a. hobby
____d. influence of family or friends
____b. profit
____e. promising demand of product
____c. relevant skill and talents
____f. others please specify
B. Farm Profile
1. Farm Location/Address: ________________________________________
2. Distance from Baguio Public Market: _____________________________
3. Distance from residence: ___________________________________
4. Land Ownership/ tenure:
____a. owned
____b. rented
____c. leased
5. Total Area Occupied:
____a. lesser than 500 m2 ____b. 501 m2 - 1 hectare
____c. more than 1hectare
6. Types of plants sold and produced:
Kinds of
Specifications
Area
Number
Source of
Frequency of
Price
plants
Occupied
of
raw
production
produced
(m2 )
Plants/m2
materials
cactus
-Rare cactus
-Succulents
-Euphorbia
Flowering
-Chrysanthemum
-Rose
-Malaysian mums
-MilFlores
-Anthuriums
-Japanese
Anthuriums
-Impatients
-Begonia
-Canna
-Kalachuchi
-aster
-Alstromeria
-Carnation
-Star Gazers
-Dancing Lady
-Rosal
-Azalea
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
39
-Dama de Noche
-Gumamela
-Poinsettia
-Yellow shrimp
plant
-Gladiola
-Yellow Bell
Foliage
-Dracena
-Kutcharita
-Ivy
-San Francisco
-Bromiliads
-Peacock Plant
-Philodendron
- Five fingers
-palmera
-Peperomia
-Asparagus
Fruiting
-Money tree
Ornamental -Jerusalem berries
-Korean pepper
-Micky Mouse
Specialty
-Balite
Crop:
-Junifer
-Bonsai
-Boxwood
-cereza
-Chinese holy
-Golden Bush
-Pycus
- Dish
-Forest
Gardens
-dessert
Orchids
-Vanda
-Bamboo orchids
7. Where is the source of irrigation?
____a. rain fed _____c. creeks
____b. irrigated _____d. Others (pls. specify)_______
8. Where do you plant ornamentals?
____a. Green House
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
40
____b. Open field
9. Do you hire workers?
____a. yes
____b. no
10. How many employees do you hire? ________________
11. Is it seasonal or regular? _____________________
12. What skills should they possess?
13. How do you select/choose plants for sale?
____a. Size
____b. Appearance
____c. other (pls. specify)
14. To whom do you sell the product?
____a. neighbors
____d. institutional buyers (specify)
____b. retailers
____e. contract growers
____c. wholesalers
____f. others please specify:
15. Where are the known origins of the costumers?
____a. Local (pls. specify)
____b. National (pls. specify
____c. International (pls. specify)
16. Do you deliver to other places? ____a. yes ____b. no
If yes, where do you deliver it? _______________
17. Where do you sell your products?
____a. farm itself
____b. potted plants stalls
____c. others please specify:
18. How do you sell your product
____a. direct selling
____c. through sales agent
____b. negotiations
____d. other please specify
19. Do you sell or produce through out the year? ____a. yes ____b. no
If yes, why?
____a. continuous market demand
____b. adequacy of product
____c. others (pls. specify) ___________________________
If no, why?
____a. seasonality of demand
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
41
____b. seasonality of product
____c. others (pls. specify) ___________________________
20. What are the medium of communication involved in negotiation?
____a. face to face
____c. phone/ cell phone
____b. through sales representative
____d. computer
21. What is the basis of pricing?
____a. cost plus pricing
____c. perceived value pricing
____b. going rate or market price
____d. others please specify
22. Mode of payment
_____a. cash on delivery _____c. cash on pick-up
_____b. cash advance _____d. credit
23. What are the pricing strategies employed?
____a. Sale
____b. discounts
____c. bulk pricing
____d. others please specify
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
20. What other services do you offer? ________________
21. What problems do you encounter in the industry?
____a. seed availability
____b. soil depletion
____c. insect, pest and diseases
____d. Seasonality of production
____e. seasonality of commodities produced
____f. Lack of capital
____g. Lack of standards
____h. Lack of planting materials
____i. others (pls. specify
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
FRANCISCO, SHERLEY P. APRIL 2010. Benchmarking on the Ornamental
Potted Plants in Baguio City. Benguet State University, La Trinidad, Benguet.
Adviser: Andrew K. Del-ong, BSc
ABSTRACT
This study was conducted at the major ornamental potted plants production and
marketing areas in Baguio City in order to get base line information on the industry, to
identify who are the producers including their locations, to identify the kinds and the
outlets of potted plants they produce, and to determine the marketing strategies employed
and the problems they encountered. A total of 44 respondents were interviewed with the
aid of a questionnaire.
The respondents were classified into producers, retailers, and producer -retailers.
Most of them are 40 years old and above although the retailers’ group were relatively
younger (22-30 years old). Majorities are females; all underwent formal education with
significant number earning a college diploma.
As to the length of period they are into the business, majority were engaged into
potted plant business for 11 to 20 years due to the profit it offers and the satisfaction of
their hobby. Almost all are sole proprietors who started business with an initial capital of
Php 20,000 below using their own savings.
Majority of the producers and producer-retailers own their farm and are utilizing a
land area lesser than 500 m . Most of the farms are located in their backyards with a
distance lesser than ten kilometers from the city market.
The commonly grown plants are cactus, foliage, flowering and fruiting
ornamentals. Majority are produced and sold throughout the year. Most of the producers
grow plants in an open field and source the water for irrigation from the water district and
spring.
Most of them cater to the tourists and retailers in the locality. Majority don’t
deliver their products to other places they usually dispose it to their stalls or directly from
their farms. They usually employ direct selling methods and face to face communication
in promoting their products. The pricing strategy frequently employed was cost plus
method and going market rate. Majority require their costumers to pay their products on
cash basis upon pick-up.
Majority don’t hire employees and they frequently encountered the problems on
was the insect pest and diseases and lack of capital.
With these, the key players, government agency and private sector must
collaborate in doing something to improve the quality of the products and the system
used in the business in order to serve the niche market and to compete globally.
ii
TABLE OF CONTENTS
Page
Bibliography…………………………………………………………………….
i
Abstract ………………………………………………………………………... i
Table of Contents ……………………………………………………………… iii
INTRODUCTION
Rationale ……………………………………………………………….. 1
Statement of the Problem ………………………………………………. 2
Objectives of the Study………………..……………………………….. 2
Importance of the Study…………………….………………………….. 3
Scope and Limitation ………...………………………………………... 3
REVIEW OF LITERATURE …………………………………………………. 4
METHODOLOGY
Locale and Time of the Study …………………………………………. 8
Respondents of the Study ……………………………………………… 8
Data Collection ..……………………………………………………….. 8
Data Gathered ………………………………………………………….. 8
Data Analysis …………………………………………………………... 9
RESULTS AND DISCUSSION
Role and functions
of the Respondents……………………………………………………... 10
Socio-Economic Profile of
the Respondents……………………………….………………………..
10
Farm Profile of the
Respondents ………………………………………………………….... 15
iii
Ornamental Plants Commonly
Produced and Sold ………………………………………….…………. 18
Production Practices or
System………………………………………………………………….. 22
Marketing Practices ..…………………………….………………….….. 23
Employment Condition ………………………………………………… 27
Problems
Encountered
in the Industry……………………………………………….………… 28
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary ……………………………………………………..………… 30
Conclusions ………………………………………………………….…. 32
Recommendations …………………………………..…………………. 33
LITERATURE CITED …………………………………………………..……..
35
APPENDIX
A. Letter to the Respondents ……………………………………...…… 36
B. Survey Questionnaire ………………………………………………. 37
iv
1
INTRODUCTION
Rationale
Potting of ornamental plants is one of the specializations of Floriculture, and is
dubbed as the Sunshine Industry of the Philippines. It continues to gain popularity and
recognition in the country and in abroad.
Ornamental plants are synonymous with natural landscape. They nurture us
physically and psychologically. They inspire us, refresh us, and regenerate our lives.
They appeared to be parallel to people’s attitude towards civility, taste, arts and religion
(Ingles, 2001).
Beside the beauty and aesthetic value of ornamental plants, they are also
important for their economic benefits. Production of propagating materials such as seeds,
bulbs and live plants conventionally are being sold. In addition, the material used in
growing plants such as pots, garden tools, fertilizers, mosses and accessories like jars,
plastic dove and other materials are high in demand.
Ornamental plant industry gives great job opportunities and great potential for
generating export income.
One principal center for ornamental production is the Cordillera Administrative
Region (CAR) most especially the City of Baguio and the Province of Benguet, due to its
perfect climatic condition.
Moreover, American and Japanese colonist brought varieties of plants that grew
so well that they redefined farming options of people. In the process, they laid foundation
for a new industry that gave the area new appellation “Salad Bowl of the Philippines” for
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
2
the municipality of La Trinidad and “City of Flowers” for Baguio City (Alejandro and
Santos, 2001).
Finally, entrepreneurs began cultivating ornamental plants as cash crop and have
shifted from their crowding vegetable business. Nowadays, ornamental plant production
is the second most important industry of Benguet. It is also a basis of Baguio City in
conducting its yearly celebration of “Panagbenga” or Baguio Flower Festival.
Importance of the Study
This would help the key players/stakeholders of the industry. They would be able
to determine where to buy and sell ornamental plants effectively and efficiently. It would
enable the stake holders to improve the business operation activities to attain maximum
level of income and to give possible answer to existing problem. This may also generate
employment opportunities because it could reveal the number and skills of employees
needed by the firms. Moreover, the result of the study could be important in planning,
policy formulation, and project proposal development of the ornamental potted plant
industry. This will serve as a reference for other people who would like to further study
the industry.
Statement of the Problem
Basic requirement in proposal development or even in the preparation of the
feasibility study for developmental projects are baseline information. This deals with a
Benchmark study on the Ornamental Potted Plants in Baguio City specifically it would
try to answer the following questions:
1. Who are the major ornamental plant producers in Baguio City and where are
they located?
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
3
2. What kind of ornamental potted plants they produce?
3. Where is the market outlets of ornamental potted plants produced?
4. What are the marketing strategies employed?
5. What are the problems encountered in the industry?
Objectives of the Study
Generally, this study aimed to establish baseline information on ornamental
potted plant in Baguio City. Specifically, it attempted to do the following:
1. Identify and characterize the ornamental plant producers in Baguio City and
their locations
2. Identify the kind of ornamental potted plants they produce;
3. Identify the market outlets for the said ornamentals;
4. Find out the marketing strategies employed;
5. Identify the problems encountered in the industry.
Scope and Limitations of the Study
The study was conducted in major marketing and production areas in Baguio City
specifically Mines View Park, Wright Park, City Orchidarium, Barangay Gibraltar, Camp
7, Pacdal, and Lucnab respectively. The study focused on the ornamental potted plant
producers, the kind of ornamental plants they produce, the marketing strategies
employed, and their market outlet.
Small scale or backyard producers should have been included for a more
comprehensive result, however, financial and time constraint prevented the researcher to
do so.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
4
REVIEW OF LITERATURE
The floriculture industry started as home yard operation and evolved into
profitable business for small and medium entrepreneurs. These led to expansion of
various industries such as real estate development, growth of tourism industry and the
increasing demand of neighboring countries for ornamentals (Naranja, 2007).
The future outlook for ornamental production is bright, as an economic recovery
continues in US and Europe, the primary export markets, floricultural production bound
to expand. With marginal operators out of business, companies remain optimistic about
future expansion of the market and their operations (Anonymous, 1995).
Flowering and green potted plants are the next most important floriculture crop
worldwide (Anonymous, 1995). A large proportion of ornamental potted plants produced
in developed countries are based on the import of plant materials from less developed
countries and most “potted plants species” originated from less developed countries
(Jorgensen, 2009).
The Philippine Ornamental Industry continues to gain popularity and recognition
in the country and more so abroad. The increasing demand for ornamentals has been one
of the pressing issues faced by the ornamental sector today making it self-sufficient,
sustainable and diversified (Hernandez, 2007). Therefore, there is an immense scope for
its expansion. If floriculture is developed on its industry pattern scientifically, it will
flourish and generate tremendous income (Aurora, 1990). Since its incipient stage has
been unable to fully meet an increasing domestic demand. Thus, a substantial portion of
that demand has been met through importation. But the industry has remarkably
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
5
improved over the past decades and has been steadily growing through the years
(Anonymous, 2009).
According to Naranja (2007) the highest export earnings from ornamental plants
came from other live plants at an average of $529,114 annually for the period of nine
years (1991-2000). It ranked number 55 exporters to Netherlands with 76.38 growth rate
(1997-2001). Fresh foliage is the second with a value of $523.824, fresh cut flowers and
flower buds is third ($371,281). The country export market for ornamental plants has
always been dominated by Japan. The second major export market is the United States,
while South Korea ranks third. These are followed by the Netherlands and Canada
(Anonymous, 2009).
The country spent an average of US $769,890 annually for the importation of
ornamental plants from 1991-2001. Major imported ornamental plants were live plants
including cutting and slips (39.8%), orchids (23.9%) fresh flower and buds (16.5%),
processed cutflower and buds, (3.64%) and anthuriums (11.89%). Leading suppliers
were Thailand (26.8%), the Netherlands (21.7%), Israel (20.6%), Malaysia (9.4%), and
the United States (5.1%).
Under Philippine condition, small producers can be classified as those with
growing area less than 500 m2, medium growers are those with more than 500 m2 to one
hectare are, and large operators are those with more than one hectare production area.
Usually, the large or corporate producers serve as the nucleus unit, which establishes
satellites with small and medium operators who become contract growers. These
corporate operators are mostly exporters who have the information on the market
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
6
demand, both in terms of quality and quantity. Presently, the small garden-type farm still
dominates the industry (Naranja, 2007).
Among these large producers are the King Louis Flowers and Plants and the
Highland Crops and Cut Flowers Association in Baguio City; Unigreen in Batangas, one
of the largest exporters of foliage and live plants to Japan and Korea; Worldwide Derling
and Puentespina Orchids and Tropical Plants in Davao City, two of the largest
ornamental plant producers in Mindanao. The principal center for ornamental production
by region includes Cordillera Administrative Region (CAR), Central Luzon, Southern
Tagalog, Northern and Central Mindanao (Naranja, 2007).
In addition, corporate operators could also be cooperatives composed of small and
medium growers. However, in this type of operation, production is usually not sufficient
to satisfy the requirement. They are capable of exploring the foreign market but still
cannot fill the required volume. They resort to accepting produce from non-members of
the cooperative; however, priority is given to the produce of members who also directly
participate in the income of cooperatives.
Specifically for cut flowers, small producers who grow flowers solely or as
intercrops with vegetables and other cash crops supply the bulk of the cut flowers traded
in the domestic market. The big growers engaged in production of roses, orchids,
anthuriums, chrysanthemum, a cursory survey of different nurseries producing mixed
ornamental commodities conducted in 2001 by Rimando and Chavez shows that more
than 60% of their inventories consist of potted foliage, flowering pot plants, and other
landscape materials such as evergreen or flowering shrubs or trees. Foliage plants grown
under full sun include palms, Ficus, Dracaena, junipers, crotons, pines, Cycas, bamboo,
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
7
tea plants, agave, and Sanseveria. The foliage plants that prefer partial shade and are
suitable for interiorscapes are Aglaonema, Philidendron, Calathea, Maranta, ferns,
begonia, Dieffenbachia, Peperomia, foliage, Anthurium, and some Dracaena (Rosario and
Aurigue, 2001).
The climate of Benguet is characterized by pronounced wet and dry seasons with
temperature ranging from 8-26 degrees Celsius making the province suitable for
ornamental production (Nagpala, 2007)
One cannot think Baguio City and its environs without thinking of flowers at the
same time. In many ways, the floral legacy we honor speaks not only a way of life borne
of the molding of our own land roots, foreign origin and highland home. But it also
captures the parallel evolution of flowers industry that continues to enrich with each
variety that blooms in our fair city (Alejandro and Santos 2001).
Baguio’s love affair with plants dates back to the city foundation and from then
on living plants became a way of life -the Botanical Garden, Camp John Hay forest
reserve, the Flower Market, the Orchidarium, extra spacious front yard and its countless
parks. Big or small, through unique style of landscaping has evolved and became popular
throughout Baguio (Alejandro and Santos 2001).
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
8
METHODOLOGY
Locale and Time of the Study
The study was conducted on the different production areas in Baguio City
specifically barangays: Gibraltar, Camp 7, Pacdal and Lucnab as well as the major
market outlets namely: Mines View Park, Wright Park, and City Orchidarium, from
November to December 2009.
Respondents of the Study
All producers in the major production areas as well as the stall owners and/ or
operators in major markets of Baguio City were respondents of this study. A total of 44
respondents were classified as producers, producer- retailers and retailers
Data Collection
The respondents were interviewed personally by the researcher using the prepared
interview schedule. Secondary information was gathered from the Department of
Agriculture- CAR, Local Government Unit, Bureau of Plant Industry, and the
Department of Trade and Industry- CAR.
Data Gathered
The data gathered includes the socio-demographic and economic profile of the
respondents; the kinds of ornamental plants they are producing including their market
outlets; and the problems they are encountering.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
9
Data Analysis
The data collected were consolidated, tabulated and analyzed using appropriate
statistical tools such as frequency counts, mean and percentage.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
10
RESULTS AND DISCUSSION
As shown in Table 1, the 44 respondents were classified according to their role
and function; these were producer-retailers (43.72%), retailers (29.55%) and producers
(22.73%). Result implies that most of the respondents produce and sell their own
products.
These number of respondents are not yet complete with respect to the sum total of
key players in Baguio City since it focused only on the major locations and it excludes
some related business such pottery, seeds, compost, and other decoration. But to compare
it with the record from DTI as of 2008, it revealed that only 11 ornamental plant
businesses were registered; 6 from potted plants and 5 from cut flowers or flower shops.
This reveals that majority of plant businesses were not registered to the DTI.
Socio Economic Profile of the Respondents
This section presents the socio-economic profile of the respondents which include
their distribution according to their age, educational attainment, sex, type of business,
initial capital, their source of capital, their number of years in the business and their
reasons in engaging in potted plant business. The source of income of the respondents
was not included on the table because all the respondents depend on potted plants
business as their source of income.
Age. As shown in Table 2, the youngest of the respondents is 22 years old and
the oldest is 83 years old indicating that people engaged in potted plants industry in the
city of Baguio includes young adults up to senior citizens. Half (50%) of the producer’s
falls within the age range of 58 to 66 years old. On the other hand, majority (46.16%) of
the retailers is relatively younger (22-30 years old).
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
11
Table 1. Distribution of the respondents according to their roles and functions
PARTICULAR
FREQUENCY
PERCENTAGE
Producers
10
22.7
Retailers
13
29.6
Producer -Retailers
21
47.7
TOTAL 44
100
For the producer-retailer group, almost all are 40 years old and above. Results
also show that the mean age of the respondents is 48.81.
The results further show that ornamental potted plant industry is compost mostly
of the middle aged people and senior citizens except for the few young adults. This also
implies that the middle aged people are more interested in ornamental plant business than
young ones. The results also show that old age is not a hindrance in engaging in the
business.
Sex. Females dominate the industry (80%). This may imply that females are more
interested in ornamental potted plants business than males.
Educational attainment. Majority of the producers (70%) reached and finished
high school while retailers (38.46%) and producer-retailers (47.62%) reached and
finished college. Most of the respondents (43.18%) reach and finished high school. A
significant 36.36% reached college. Results on their level of education favors on their
vocation for according to studies, literate people are more receptive. Education is an
advantage in managing business and enables individuals understands business
transactions.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
12
Table 2. Distribution of respondents according to socio-economic profile
PRODUCER-
PARTICULARS
PRODUCERS
RETAILERS
RETAILERS TOTAL
F
%
F
%
F
%
F
%
Age
22-30
1 10 6
46.16 - - 7 15.9
31-39
1 10 - - 1 4.76 2 4.54
40-48
1 10 3
23.08 8 38.1
12
27.28
49-57
1 10 3
23.07 6
28.58
10
22.74
58-66
5 50 - - 3
14.28
8
18.18
67-75
- - 1
7.69
3
14.28
4
9.09
76-83
1 10 - - - - 1 2.27
TOTAL
10 100 13
100.00
21 100 44 100
Sex
Male
- -
1
7.7
3
14.28
4
20
Female
10 100
12 92.3 18
85.72
40 80
TOTAL 10
100
13
100
21
100
44
100
Educational
attainment
Elementary
2 20 4 30.77 2 9.52 8 18.18
High School
7 70
4
30.77
8
38.1
19
43.18
College
1 10
5
38.46
10
47.62
16
36.36
Vocational
- -
- - 1
4.76
1
2.28
TOTAL 10
100
13
100
21
100
44
100
Number of years in
business
less than 10
3
30
8
61.54
6
28.57
17
38.64
10 to 20 yrs.
4
40
2
15.38
12
57.14
19
43.17
20 to 30 yrs.
1
10
3
23.08
3
14.29
6
13.64
31 and above
2
20
-
-
-
-
2
4.55
TOTAL 10
100
13
100
21
100
44
100
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
13
Table 2. continued…
PRODUCER -
PARTICULARS PRODUCERS RETAILERS
RETAILERS TOTAL
F % F % F % F %
Type of business
Sole proprietorship
10 100 11 84.62 21 100 42 95.46
Partnership
- - 2
18.38 - - 2
4.54
TOTAL
10 100 13 100 21 100 44 100
Initial capital
20,000 and below
9 90 9 69.23 11 52.38 29
65.91
20,001-40,000
1 10 4 30.77 6 28.57 11 25
40,001-60,000
- - - - 3 14.29
3
6.82
60,001 and above
- - - - 1 4.76 1
2.27
TOTAL
10 100 13 100 21 100 44 100
Source of capital
Savings
10
100
7
46.66
18
69.23
35
68.64
Borrowed
- - 6 40 3 11.54
9
17.64
from Coop
Loan from bank -
-
1
6.67
2
7.69
3
5.88
Borrowed from
informal lender
- - 1
6.67 3 11.54
4
7.84
TOTAL
10 100 15 100 26
51 100
Reasons for engaging in potted
plants business
Hobby
7 50 3
16.67 9 24.32
21
29.58
Profit
4 28.57 10 55.55 12 32.43 26 36.62
Relevant skill
and talent
- -
3
16.67
4
10.81
7
9.85
Influence of
family
2 14.29
- -
9 24.32 11 15.5
Promising
- -
2
11.11
3 8.1 5
7.05
demand
Therapeutic
1 7.14 - -
- - 1 1.4
effect
TOTAL
14 100 18 100 37 99.98 71 100
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
14
Type of business. Except for the retailer groups were 4.54% are partnerships, all
of the businesses in potted plants in Baguio City are sole proprietorships.
Initial capital. Majority of the respondents (65.91%) started their business with a
capital of Php 20,000 and below. Results indicate that ornamental potted plants business
doesn’t require much capital to start up operation.
Source of capital. Majority (68.64%) of the respondents sourced out their capital
from their own savings. The rest borrowed it from cooperatives (17.64 %), from informal
lenders (7.84%), and loan from banks (5.88%).
Number of year in the business. As to the number of years in the business, results
shows that more of the respondents (43.17%) were into the business for around 11 to 20
years with an average of 16.59 years.
The results show that potted plant industry in Baguio City started many years ago
with 4.55% engaged in the business for almost 30 to 40 years. It also shows that people
are aware of the economic importance of potted plants. According to Alejandro, Baguio’s
love affair with flowers dates back to the city’s foundation and from then on, living plants
become a way of life. This is also in connection with what an author said that since its
incipient stage has been unable to fully meet an increasing domestic demand. Thus, a
substantial portion of that demand has been met through importation. But the industry has
remarkably improved over the past decades and has been steadily growing through the
years (Anonymous, 2009).
Reasons in engaging in potted plants business. As to the reasons why the
respondents engaged in the business, majority (70%) of the producers producing
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
15
ornamental plans says it’s their hobby. While most of the retailers (55.55%) and
producer-retailers (32.62%) engaged in the business due to the profits it offers.
In general, most (36.62%) engaged in the business due to profit, 29.58% because
it’s their hobby, 15.5% due to the influence of their family and friends, 9.85% due to their
relevant skill and 7.05% due to its promising demand.
Farm Profile of the Respondents.
This section presents the farm profile of the respondents (Table 3) which includes
the location of the farms/production areas, their distance of farm from Baguio public
market, and from their own residence, land ownership and tenure and the total area they
occupy. Retailers were not included in this section since they don’t plant ornamental, thus
they don’t own farm.
Farm location. As to the location of the farm of the producers, they are located at
Barangay Gibraltar (30%), Pacdal (30%), and Camp 7 (30%) with a few (10%) located in
Pucsusan. For the producer-retailers a significant (23.81%) were located at Gibraltar
others are located at Pacdal (14.28%),Outlook Drive (9.68%), Balacbac (9.68%), Mines
View (9.68%), Lucnab and General Luna both (6.52%). However, it is significant to note
that 14.29% and 9.52% have farms that are located outside the city, particularly in nearby
province of Benguet and La Union respectively.
These was related to the details given by Dr. Divina Calado Jose, a researcher
from BPI-BNCRDC, that the production area in Baguio City includes Camp 7, Mines
View, Lualhati, Outlook Drive, Irisan and Asin which been supported by the data from
DTI and Barangay Captains that includes Pucsusan, Camp 7, Sto. Thomas School Area,
Burnham-Legarda, Loakan, Irisan, and Asin.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
16
Table 3. Distribution of the respondents according to their farm profile
PRODUCER -
PARTICULAR PRODUCERS
RETAILERS TOTAL
F
%
F
%
F
%
Farm Location
Gibraltar
3 30 5 23.81 8
25.81
Outlook drive
- - 2 9.52 2
6.45
Lucnab
- - 1 4.76 1
3.23
Camp 7
3 30 - - 3 9.68
Pucsusan
1 10 - - 1 3.23
Mines View
- - 2 9.52 2
6.45
Balacbac
- - 2 9.52 2
6.45
Pacdal
3 30 3 14.29 6
19.35
Gen. Luna
- - 1 4.76 1
3.23
Benguet
- - 3
14.29
3
9.68
La Union
- - 2 9.52 2
6.45
TOTAL
10 100 21 100 31 100
Distance of farm from
Baguio Public Market
Lesser than 5km
6 60 8 38.1 14
45.16
6 to 10 km
4 40 10 47.62
14
45.16
11 to 15 km
- - 1 4.76 1
3.23
above 15 km
- - 2 9.52 2
6.45
TOTAL
10 100 21 100 31 100
Distance of farm
from their residence
Lesser than 1 km
10 100 15 71.43 25 80.64
1 to 5 km
- - 3
14.28
3
9.67
6 to 10 km
- - 1 4.76 1
3.22
above 10 km
- - 2 9.52 2
6.45
TOTAL
10 100 21 99.99 31 99.98
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
17
Table 3. continued…
PRODUCER -
PARTICULAR PRODUCERS
TOTAL
RETAILERS
F
%
F
%
F
%
Land Ownership
Owned
9
90
17
80.95
26
83.87
Rented
0
0
3
14.29
3
9.68
Caretaker
1
10
1
4.76
2
6.45
TOTAL
10
100
21
100
31
100
Total Area Occupied
500m2 and below
9
90
11
52.38
20
64.52
501m2-1 hectare
1
10
7
33.33
8
25.81
1 hectare and above
-
-
3
14.29
3
9.68
TOTAL
10
100
21
100
31
100
Distance of farms from Baguio City public market. For sole producers, majority
(60%) of their farms are located less than 6 km from the Baguio City public market and
the remaining 40% are between 6 km to 10 km from the city market. For the producer
retailers group, most (47.62%) are located 6 km to 10 km away from the city market,
while significant 38.1% are less than 6 km away, 9.52% are above 15 km and the
remaining 4.76% are at a distance of 11 km to 15 km away from the city market.
In general, majority of the respondents are located less than 5 km (45.16%) and 6
km to 10 km (45.16%) away from the city market. This shows that ornamental potted
plant farms are near to the major marketing outlets.
Distance of farm from own residence. All of the producers (100%) and majority
of the producer-retailers (71.43%) have their farms located less than 1km away
residence. This shows that most of the respondents cultivate potted plants on their
backyard or what we call “backyard garden” this collaborates to the study of Naranja
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
18
(2007) that “the industry started as a home yard operation and evolved into a profitable
business”.
Land ownership and tenure. Majority (79.54%) of the producers and producer
retailers owned their farms. The rest rented (9.68) or entrusted/ caretakers (6.45 %).
Total area occupied. Majority of the respondents (75%) claimed to be utilizing a
land area lesser than 500 m2. The data supports why the respondents owned the land they
used in production of ornamental potted plants. Most of the respondents are small
producers. According to Nagpala (2007), small producers can be classified as those with
growing area less than 500 m2, medium producers are those with more than 500 m2 to
one hectare and large operators are those with more than one hectare production area. .
Usually, the large or corporate producers serve as the nucleus unit, which establishes
satellites with small and medium operators who become contract growers. These
corporate operators are mostly exporters who have the information on the market
demand, both in terms of quality and quantity. Presently, the small garden-type farm still
dominates the industry.
Kinds of Ornamental Plants
Table 4 shows the ornamental plants commonly planted and sold and the criteria
used in selecting plants for sale.
Ornamental plants commonly planted and sold. The ornamental plants commonly
planted are cactus, foliage, flowering and fruiting ornamentals. For cactus, succulents are
the most common followed by rare cactus (59.09%) and euphorbia (31.82%). It is
significant to note that for pure retailers, the most common is rare cactus (92.31%). For
flowering plants, the most common are Anthuriums (65.91%); followed by Impatience
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
19
Milflores, Gumamela, Azalea, Marigold, Bougainvillea and Japanese Anthuriums; Roses,
Malaysian mums, Begonia and Salvia; Dancing lady and Daisy. For the foliage group, the
most common are Cereza bonsai (72.33%), Bromeliads (70.45%), Fortune plants and
kutcharita (both 61.76%), and Peperomea (56.82%). For the fruiting group, the most
common are Money Trees (72.73%) as these are the most popular ones among
consumers, Jerusalem berries (40.91%), and Korean Pepper (31.82%).
Table 4. Distribution of the respondents according to the ornamental plants commonly
planted and sold and the criteria used in selecting plants for sale
PRODUCER-
PARTICULARS PRODUCERS RETAILERS
TOTAL
RETAILERS
F
%
F
%
F
%
F
%
Cactus
Socculent
7
70
8
61.54
14
66.67
29
65.91
Rare cactus
3 30 12 92.31 11 52.38
26
59.09
Euphorbia
1
10
7
53.85
6
28.57
14
31.82
Flowering Plants
Anthuriums
5 50 8 61.54 16 76.19
29
65.91
Impatients
4
40
6
46.15
11
52.38
21
47.73
Milflores
3 30 7 53.85 11 52.38
21
47.73
Gumamela
3
30
8
61.54
10
47.62
21
47.73
Dancing Lady
2 20 6 46.15 8 38.1
16
36.36
Rose
-
-
9
69.23
8
38.1
17
38.64
Malaysian
1 10 8 61.54 8 38.1
17
38.64
Japanese
4
40
6
46.15
8
38.1
18
40.91
Anthuriums
Begonia
6 60 6 46.15 5 23.81
17
38.64
Azalea
4
40
8
61.54
9
42.86
21
47.73
Salvia
6 60 5 38.46 6 28.57
17
38.64
Bougainvillea
3
30
8
61.54
7
33.33
18
40.91
Marigold
4 40 9 69.23 6 28.57
19
43.18
Daisy
5
50
5
38.46
6
28.57
16
36.36
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
20
Table 4. continued…
PRODUCER-
PARTICULARS PRODUCERS
RETAILERS
TOTAL
RETAILERS
F % F %
F %
F %
Foliage
Kutcharita
6
60
9
69.23
12
57.14
27
61.36
Bromeliads
6 60 10 76.92 15 71.43 31 70.45
Ceresa Bonsai
4
40
8
61.54
20
95.24
32
72.73
Dracaena
5 50 9 69.23 13 61.9 27 61.36
Peperomia
4
40
7
53.85
14
66.67
25
56.82
Fruiting
ornamentals
Money Tree
5
50
10
76.92
17
80.95
32
72.73
Jerusalem berries
1 10 8 61.54 9 42.86 18 40.91
Korean Pepper
-
-
7
53.85
7
33.33
14
31.82
Criteria in Selecting
Plants for sale
Size
4
14.81
8
40
10
33.33
22 28.56
Appearance
10 37.04
10
50
18 60.01
38 49.35
Health
1
3.7
1
5
1
3.33
3
3.9
With flowers
8 29.63
-
-
1 3.33
9 11.69
Price
1
3.7
1
5
-
-
2
2.6
Customer choice
3 11.11
-
-
-
-
3
3.9
TOTAL
27
99.99
20
100
30
100
77
100
Results of the study imply that a wide range of potted ornamental products are
produced and sold. Both the producers and producer – retailers employed multi-cropping
in order to produce different varieties at the same time. This finding further support the
cursory survey of different nurseries producing mixed ornamental commodities
conducted in 2001 by Rimando and Chavez that showed that more than 60% of their
inventories consist of potted foliage, flowering pot plants, and other landscape materials
such as evergreen or flowering shrubs or trees.
As stated by Dr. Jose, the ornamental plant commonly produced in the city
includes cactus, anthurium, gladiolus, mums, roses, bromiliads, gumamela, eugrivia, San
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
21
Francisco, and lilium. Moreover, she added that most of the seedlings of the plants grow
were imported from US, Malaysia, Europe, Thailand, and Japan brought by OFW’s,
Foreigners, and Tourists. These was further explained by Mr. Arnold Aromin of the City
Orchidarium who import different varieties of plants adaptable in the city and by Mrs.
Bernadette Aquino, a producer from Camp 7, who claimed that the variety cultivated
was source from Japan. Furthermore, these confirms the statement of Alejandro N.
Santos (2001) that the “American and Japanese colonists brought varieties of plants that
grew so well that redefined the farming options of the people”.
On the other hand, Ms. Jennifer Lang-ay, a retailer from Wright Park, stated that
some plants such as Malaysian mums, Milflores, Roses, and Asters were source from the
municipality of La Trinidad. The bonsai or shrubs such as juniper, boxwood, Chinese
holy and pycus were source from Bulacan. In addition, Mrs. Maria Luisa Patogan of City
Orchidarium added that some varieties of bromeliads and orchids were source from
Aurora Province.
As to the volumes of production or demands, they don’t give an exact figure since
most of them don’t have records in their business transactions and they have different
unit of measurement. They simply stated that the volume of production varies depends on
the rate of the inventory turnover, supply and demand, space utilized and available
capital.
Criteria in selecting plants for sale. The primary reasons considered by the
respondents in selecting plants for sale are their over-all appearance (49.35%) and size
(28.56%).
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
22
Production Practices or Systems
Table 5 shows the frequency of production and sales, production methods used
and sources of irrigation
Frequency of production and sales. For the producers, a total of 50% produce
and sells seasonally, while the other half (50%) are throughout the year. Only 15.385% of
the retailers produce and sells seasonally, the rest (84.62%) produce and sells throughout
the year. For producer-retailers 27.28% of their production and sales is seasonal and the
remaining 72.72% is throughout the year.
Those who produce and sell throughout the year, the primary reasons behind are
adequacy of the products (52.38%), and continues demand of the products (40.48%). For
those who produce and sell seasonally, main reasons are the seasonality of products
(76.92%) and seasonality of demand (23.08%).
In general, majority (72.72%) of the respondents produce and sell throughout the
year. The rest produce and sell ornamental plant when said plants are in their production
seasons or in demand.
Source of irrigation. Majority of the respondents (47.73%) irrigate their farms
from springs, 34.09% from water district and 15.9% rely on rain water. These reveal that
majority of the respondents rely on natural sources for irrigation.
Production methods. Majority (49.06%) of the respondents plants on open field,
26.41% cultivate them on greenhouse while 24.52% simply maintain their ornamental
plants on their stalls.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
23
Table 5. Distribution of the respondents according to the production system employed
PRODUCERS RETAILERS PRODUCER-
TOTAL
PARTICULARS
RETAILERS
F % F % F % F %
Frequency of production
Through out the year
5
50
11
84.62
16
76.2
32 72.72
Seasonal only
5
50
2
15.38
5
23.8
12 27.28
TOTAL
10 100 13 100 21 100 44 100
Reasons on why they produce
throughout the year
Continues demand
2
25
7
43.75
8
44.44
17 40.48
Adequacy of product
6
75
8
50
8
44.44
22 52.38
Source of living
1
6.25
2
11.12
3
7.14
TOTAL
8 100 16 100 18 100 42 100
Reasons on why they
produce seasonally
Seasonality of
product 4
66.7
2
66.66
4
100
10
76.92
Seasonality of
demand
2
33.3
1
33.33
3
23.08
TOTAL 10
100
13
100
21
100
44
100
Source of Irrigation
Rainfall
1
10
1
7.69
5
23.82
7
15.9
Spring
7
70
1
7.69
13
61.9
21
47.73
Water district
2
20
11
84.62
2
9.52
15
34.09
Deep well
0
0
0
0
1
4.76
1
2.28
TOTAL 10
100
13
100
21
100
44
100
Production methods
Green house
4
33.33
0
0
10
35.71
14
26.42
Open Field
8
66.67
0
0
18
24.29
26
49.06
Potted plants stall
0
0
13
100
0
0
13
24.52
TOTAL 12
100
13
100
28
60
53
100
Marketing Practices
Table 6 shows the marketing aspect of the industry which includes the origin of
customer and buyers, if products are for delivery or not, selling area, methods of selling
their products, medium of communication, basis of pricing, customers mode of payment
and their pricing strategies employed.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
24
Customers and buyers. Majority of the producers caters to their neighbors (36%),
to retailers (32%) and wholesalers (32%). For retailers, majority caters to tourist (32.5%),
to wholesalers (22.55), and to fellow retailers (22.5%) while majority of the producer-
retailers caters to tourist (31.58%), wholesalers (23.69%) and retailers (21.05%).
Origin of buyers. All of the farmers (100%) sell their products to customers into
their locality and throughout Baguio City. The respondents are the ones who supply the
major selling area in Baguio City. For retailers, majority of their customers are local
tourists/domestic buyers (45.45%), residents of Baguio City (40.09%) and foreigners/
exporter (13.65%). For farmer-retailers, majority (48.83%) of their customers are local
buyers, 41.86% are local tourists/ domestic buyers and foreigners/exporter (9.33%).
Result implies that local buyers (53.33%) still dominate the buyers of the
ornamental potted plants industry, followed by local tourist/ domestic buyers and
foreigners/exporter. This somewhat supported the study of Hernandez (2007) where he
mentioned that the “Philippine Ornamental Industry continues to gain popularity and
recognition in the country and more so abroad”.
Delivery of products. Majority of the producers (70%), retailers (76.92%), and
producer-retailers (65.9%) don’t deliver their products. On the other hand 30% of the
producers deliver their products to their customers. 23.08% of the retailers and 42.86% of
the producer-retailers delivers and sell their products directly to their customers from
other places such as Metro Manila, Bulacan, Isabela, Pangasinan, Laguna, Batangas, and
other places in the city. In general, 65.9% of the respondents don’t deliver their products
while 34.1% deliver. This implies that majority of the respondents has no outlet or
business transaction outside the city.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
25
Table 6. Distribution of the respondents according to their marketing practices
PARTICULARS
PRODUCERS RETAILERS
PRODUCER-
TOTAL
RETAILERS
F
% F % F % F
%
Stall
Location
Baguio City
- - 7 50 9 42.86
16
45.71
Orchidarium
Mines View Park
-
-
3
21.43
2
9.52
5 14.29
Wright Park
-
-
4
28.57
8
38.1
12 34.29
Botanical Garden
-
-
-
-
2
9.52
2
5.71
TOTAL
-
-
14
100
21
100
35
100
Customers or Buyers
Neighbors
9
36
5
12.5
5
13.16
19
18.44
Retailers
8
32
8
20
8
21.05
24
23.32
Wholesalers
8
32
9
22.5
9
23.69
26
25.24
Institutional
buyers
- - 3 7.5 2 5.26 5
4.85
Contract
growers
- - 1 2.5 2 5.26 3
2.91
Tourist
-
-
13
32.5
25
31.58
25
24.27
Landscapers
-
-
1
2.5
-
-
1
0.97
TOTAL 25
100
40
100
51
100
103
100
Origin of Buyers
Local
10
100
9
40.9
21
48.83
40
53.33
National
-
-
10
45.45
18
41.86
28
37.34
International
-
-
3
13.65
4
9.31
7
9.33
TOTAL 10
100
22
100
43
100
75
100
Delivery
of
product
Deliver
3
30
3
23.08
9
42.86
15
34.1
Don’t deliver
7
70
10
76.92
12
57.14
29
65.9
TOTAL 10
100
13
100
21
100
44
100
Mode of payment of
customers
Cash on Delivery
1 7.69 5 33.33 6 20.68
12
21.05
Cash on Advance
- - 2
13.33
1
3.44
3
5.27
Cash on Pick- up
8 61.5 8 53.34 20 69.98
36
63.15
Credit
4
30.8
-
-
2
6.9
6
10.53
TOTAL 13
100
15 100 29 100 57 100
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
26
Table 6. continued…
PARTICULARS
PRODUCERS RETAILERS
PRODUCER-
TOTAL
RETAILERS
F
%
F
%
F
%
F
%
Pricing strategy
involved
Sale
1
10
4
22.22
5
14.28
10
15.87
Discount
5
50
11
61.11
22
62.85
38
60.32
Bulk pricing
4
40
3
16.67
8
22.87
15
23.81
TOTAL
10 100 18 100 35 100 63 100
Selling area. Most (83.33%) of the producers sell their products directly in their
farms while the rest (16.37%) deliver their products to potted plants stalls. All (100%)
retailers sell their products in their stalls. For producer-retailers, majority (73.08%) sells
their products in their stalls and the remaining 33.33% are selling directly from their
farms.
Method of selling. All of the producers (100%) use direct selling in dealing their
products. For retailers, most (93.75%) use direct selling, the rest (6.25%) employ sales
agents. All of the producer-retailers use direct selling in selling their products.
In general, almost all (98%) of the respondents employ direct selling.
Medium of communication. As to the medium of communication used by the
respondents, majority (53.33%) of the producers are interacting face to face with buyers.
On the other hand, 46.67% communicate through sales agents. For retailers, majority
(66.67%) are also through face to face, same with those of farmer retailers (63.33%).
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
27
In general, majority (61.9%) of the respondents interacts face to face with buyers
as a medium of communication; a significant 22.22% through sales agents and others
(15.88%) communicate through cellular phones. This implies that majority of the
respondents still use traditional method in communicating to buyers.
Basis of pricing. More (46.67%) of the producers follow the going to market rate
as their basis in pricing their products. A significant 33.33% employ the cost plus method
while the remaining 20% use the perceived value pricing. The aforementioned
characterization is exactly the same with those of the retailers group. For the producer-
retailers, the method employed in pricing products are almost equally distributed among
the three methods: 34.80% of the respondents uses the going to market rate method,
another use perceived value pricing (34.80%), and the rest (31.20%) use cost plus
method.
In general, 37.7% of the respondents employ cost plus method, 34.40% follows
the going rate pricing, and 27.87% use the perceived value pricing.
Customer’s mode of payment. As to mode of payment of customers, majority
(61.54%) of the producers, retailers (53.34%), producer-retailers (68.98%) customers pay
in cash upon pick up. In general, majority (63.15%) of the respondents customers pay in
cash upon pick up.
Employment Condition
Table 7 shows whether they hire employees or not and the number of employees
hired. Majority (63.64%) of the respondents don’t hire employees. They are the ones
managing their potted plants business with the help of their family.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
28
The remaining 36.36% hire employees who help them in producing and selling
the products where majority (82.35%) hires at least three (3) workers. As to the skills that
the employees must possess, they prefer hardworking, with knowledge to technologies,
know how to persuade, trustworthy and responsible.
This shows that the industry provide employment not only to the owners
themselves but also to other people.
Table 7. Distribution of the respondents whether they hire workers and the number of
employees hired
PRODUCER-
PARTICULAR PRODUCERS
RETAILERS RETAILERS TOTAL
F
%
F
%
F
%
F
%
Condition
Hires employees
1
10
8
66.67
7
33.33 16 36.36
Don’t hire
9
90
5
33.33
14
66.67 28 63.64
TOTAL
10 10 13 100 21 100 44 100
No. of employees hired
1 to 3
1
100
6
75
7
87.5
14 82.35
4 to 6
0
0
2
25
0
0
2
11.77
7 to 10
0
0
0
0
1
12.5
1
5.88
TOTAL 1
100
8
100
8
100
17
100
Problems Encountered
Table 8 shows the problems encountered by the industry. On the side of the
producers, 22.72% have encountered a problem on insect pest and diseases; both lack of
capital and lack of planting materials account both 13.6%, lack of standards and seed
availability (9.1%). Soil depletion, seasonality of demand and price competition accounts
4.5%. On the retailer’s side, they had a burden on insect, pest and diseases (30%) and
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
29
lack of capital (15%). While most of producers-retailers were bothered on sourcing
capital and seasonal demand (both 20.83%).
In general, the following are the major problem faced by the respondents. Insect
pest and diseases (24.48%), lack of capital (16.28%), lack of standards and lack of
planting materials both 10.47%, seasonality of demand (9.3%), seed availability (6.98%),
soil depletion (5.81%), seasonality of production and seasonality of commodities are both
4.65%, price competition (3.49%), natural calamities, source of irrigation and mortality
rate was 1.16%. In addition, we could also consider the lack of fund of the DA for the
research and development of ornamentals plants as cited by Dr. Jose.
Table 8. Distribution of the respondents according to the problems they encountered
PRODUCERS
RETAILERS PRODUCER-
TOTAL
PARTICULARS
RETAILERS
F % F % F %
F %
Seed availability
2 9.1 2 5 2 8.33
6
6.98
Soil depletion
1
4.5
3
7.5
1
4.16
5
5.81
Insect pest and
disease
5 22.7 12 30 4 16.6
21
24.42
Seasonality of
1 4.5 1 2.5 2 8.33
4
4.65
production
Seasonality of
2 9.1 0 0 2 8.33
4
4.65
commodities
Lack of capital
3 13.6 6 15 5 20.83
14
16.28
Lack of standards
2 9.1 5 12.5
2 8.33
9
10.47
Lack of planting
3 13.6 5 12.5
1 4.16 9 10.47
materials
Seasonality of demand
1 4.5 2 5 5 20.83
8 9.3
Price competition
1 4.5 2 5 0 0 3 3.49
Mortality rate
0 0 1 2.5 0 0 1
1.16
Source of irrigation
0 0 1 2.5 0 0 1
1.16
Natural calamities
0 4.5 0 0 0 0 1 1.16
TOTAL
21 99.7 40 100 24 99.9 86 100
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
30
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted in Baguio City. It focused mainly to gather base-line
information on the potted plant industry in the locality.
The respondents were classified into producers, retailers, and producer - retailers.
They represent the major producers and retailers in the ornamental potted plant industry
in Baguio City. Most of them are 40 years old and above although the retailers’ group
were relatively younger (22-30 years old). Majorities are females; all underwent formal
education with significant number (36.36%) earning a college diploma.
As to the length of period they are into the business, majority were engaged into
potted plant business for 11 to 20 years. Almost all are sole proprietors who started
business with an initial capital of Php 20,000 below using their own savings. They were
enticed to engaged and continue in business primarily because of the profit they are
realizing, it’s their hobby and partly influence of their families.
Majority of the producers and producer-retailers own their farm and are utilizing a
land area lesser than 500
. Their farms are spread-out in the city which includes
Barangay Gibraltar, Camp 7, Pacdal, Pucsusan, Outlook Drive, Balacbac, Mines View,
Lucnab and General Luna. Most of the farms are located in their backyards with a
distance lesser than ten kilometers from the city market.
The commonly grown plants are cactus, foliage, flowering and fruiting
ornamentals. For cactus, succulents are the most common followed by rare cactus and
euphorbia. For flowering plants, the most common are Anthuriums, Impatience,
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
31
Milflores, Gumamela, Azalea, Marigold, Bougainvillea and Japanese Anthuriums; Roses,
Malaysian mums, Begonia, Salvia, Dancing lady and Daisy. For the foliage group, the
most common are Ceresa bonsai, Bromeliads, Fortune plants, kutcharita, and Peperomea.
For the fruiting group, the most common are Money Trees, Jerusalem berries, and Korean
Pepper. Majority are produced and sold throughout the year. Most of the producers grow
plants in an open field and source the water for irrigation from the water district and
spring.
The stall location of the retailers includes Baguio City Orchidarium, Mines View
Park, Wright Park and Botanical Garden. Most of them cater to the tourists and retailers
in the locality, domestic market and some includes export market. Majority don’t deliver
their products to other places they usually dispose it to their stalls or directly from their
farms but a significant number of the respondents (34.1%). They usually employ direct
selling methods and face to face communication in promoting their products. The pricing
strategy frequently employed was cost plus method and going market rate. Majority
require their costumers to pay their products on cash basis upon pick-up.
Majority of the respondents don’t hire employees but a significant number
(36.36%) hires employees. They encountered the problems on insect pest and diseases,
lack of capital, lack of standards and lack of planting materials, seasonality of demand,
seed availability, soil depletion, seasonality of production and seasonality of
commodities, price competition, natural calamities, source of irrigation and mortality
rate. In addition, we could also consider the lack of fund of the DA for the research and
development of ornamentals plants as cited by Dr. Jose.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
32
Conclusions
Based on the findings of the study, these conclusions were drawn.
1. There are at least 50 major producers and retailers in the ornamental potted
plants business in Baguio City although 44 were the only ones actually interviewed.
Majority of the people engaged in Ornamental Potted Plant Business were dominated by
females and middle aged individuals. All of them were literate with a significant number
earning college diploma. Majority source their initial capital from their own savings.
Almost all were sole proprietor. Most of them are the one who sell and producing their
products and usually do it for profit.
2. The commonly grown plants are cactus, foliage, flowering and fruiting
ornamentals. Most of them employ multi-cropping since they produce different varieties
of plants at the same time. Except for the seasonal ornamentals, they usually produce
throughout the year since there is demand through out the year
3. Farms were distributed through-out Baguio City such as Barangay Gibraltar,
Camp 7, Pacdal, Pucsusan, Outlook Drive, Balacbac, Mines View, Lucnab and General
Luna. Most were backyard farms and are accessible and most are owned by producers/
operators themselves.
4. Most farmers plant on the open field and they usually rely their water for
irrigation in naturals sources such spring and rainfall.
5. They have different buyers from different areas. The stall location of the
retailers includes Baguio City Orchidarium, Mines View Park, Wright Park and Botanical
Garden. Majority sells on their stalls and farm and they doesn’t take risk in delivering
their product to other areas but still a significant number delivering to domestic and
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
33
export market. They also use the traditional way of disposing their products; using direct
selling and face to face communication.
6. The industry provides employment not only to the owners themselves but also
to other people.
7. The problems they encountering was on insect pest and diseases, lack of capital,
lack of standards and lack of planting materials, seasonality of demand, seed availability,
soil depletion, seasonality of production, seasonality of commodities, price competition
,natural calamities, source of irrigation and mortality rate. In addition, we could also
consider the lack of fund of the DA for the research and development of ornamentals
plants as cited by Dr. Jose
Recommendations
Based on the findings and conclusion, the following recommendations are
offered.
1. Since there’s a lot of people engaged and benefiting in the industry, the
government agency such as DTI, DA and DOST must take a look on how to help the
stake holders in the industry to further improve their business operations. They may
extend help by financing the business, introducing new technologies and new varieties of
plants, educating the key players regarding Bookkeeping and Insect pest and management
and disseminate related researches for them to be more productive and in return they
could also help in the development of the locality.
2. In view of the fact that they don’t fulfill yet the domestic demand including the
foreign demand because majority of respondents sell only their products in their farms
and stalls, market research and development must be reinforced to understand more
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
34
their market for them to create effective marketing strategies, serve the niche market,
increase market coverage and to compete globally.
3. The key players must look beyond to improve their business; they must not be
complacent on their operations. They must grow new and resistant varieties which are in
demand not only in the country but to the export market as well. They must learn to
employ technologies such as the aid of computer for marketing and the use of greenhouse
in continues production of the commodities. They should have a quality control and
management of their product to become more competitive.
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
35
LITERATURE CITED
ALEJANDRO, R. and V.R SANTOS,. 2001. Flowers of Baguio. National Bookstore and
Anvil Publishing. Baguio City.
ANONYMOUS. 2009. Domestic Demand of Ornamental Plants in the Philippines.
Retrieved October 14, 2009 http://maidon.pcarrd.dost.gov.ph/joomla/index.php?
Option =com_content&task=view&id=1055&Itemid=748
ANONYMOUS. 1995. International Perspective. Food and Agribusiness Monitor. XI
(8):10
ANONYMOUS. 1995. Key Facts about World Floriculture Production Food and
Agribusiness Monitor. XI (9):16
AURORA, J.S. 1990. Introductory to Ornamental Horticulture. Kalyani Publishers, New
Delhi-Ludhiana. Pp 3, 4, 9.
HERNANDEZ, M. E. 2007. Intensifying Ornamental Plant Industry through Plant
Breeding. BAR R&D Digest. IX (1):5, 6
INGLES, J. 2001. Ornamental Horticulture Science, Operation and Management.
Delmar Thompson Learning, Cobleskill, New York, USA. Pp 2, 108
JORGENSEN, B. 2009. Suitable Trade in Ornamental Horticulture. Retrieved August
12, 2009. http://www. actahort.org/books/630/600_14.htm
NAGPALA, E.G. 2007. Panagbenga. BAR R&D. IX (1):23-24
NARANJA, L.P. 2007. Sunshine Industry of the Philippine. BAR R&D Digest. IX (1):
3-4.
ROSARIO AND AURIGUE, 2001. Floricultural Crops. Retrieved October 14, 2009.
www.maidon.pcarrd.dost.gov.ph
RIMANDO and CHAVES. 2001. Cursory Survey of Different Nursery Producing mixed
Ornamental Commodities. Retrieved October 14, 2009. www.pcarrd.dost.gov.ph
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
36
APPENDIX A
Letter to the Respondents
Benguet State University
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS AND
AGRIBUSINESS MANAGEMENT
La Trinidad, Benguet
Sir/Madam:
I am Sherley P. Francisco, a fourth year BS Agribusiness student major in
Enterprise Management of Benguet State University. I am presently conducting a
research titled, “Benchmarking on the Potted Plant Industry in Baguio City” as a partial
requirement of my course.
In
this
connection, may I request a portion of your precious time to answer the
attached questionnaire and please give your honest answers. Rest assured that all
information you will provide will be treated with utmost confidentiality.
Thank you very much for sharing me a part of your most precious time. God
Bless!
Sincerely yours,
SHERLEY P. FRANCISCO
Noted:
ANDREW K. DEL-ONG
Adviser
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
37
APPENDIX B
Survey Questionnaire
A. Respondent’s Profile
Name: ________________________________
Age: _________________________________
Address:
Contact Numbers: _
Highest Educational Attainment:
____a. Elementary
____b. High school
____c. College; pls. state course and degree: _____________________________
____d. Vocational: pls. state course: ___________________________________
Sources of Income: ___________________________
Others pls. specify:________________________
Average Monthly Income: _____________________
Occupation:
____a. farmer
____d. farmer- retailer
____b. retailer
____e. retailer- wholesaler
____c. wholesaler
____Others please specify:
Number of years in business: __________________
Type of Business:
____a. sole proprietorship ____c. Government owned business
____b. partnership
Initial Capital:
____1000-50000
____5001-100000
____100001 and above
Source of Capital
____a. savings
____c. loans from banks
____b. borrowed from cooperative
____d. borrowed from informal lenders
____e. others pls. specify: ___________
Membership to any organization/cooperative related to ornamental plants:
a.
____________
c.
________________
b.
____________
d.
________________
Benefits derived from membership:
a.
___________ c.
________________
b.
___________ d.
________________
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
38
Why do you choose Potted Plants as business?
____a. hobby
____d. influence of family or friends
____b. profit
____e. promising demand of product
____c. relevant skill and talents
____f. others please specify
B. Farm Profile
1. Farm Location/Address: ________________________________________
2. Distance from Baguio Public Market: _____________________________
3. Distance from residence: ___________________________________
4. Land Ownership/ tenure:
____a. owned
____b. rented
____c. leased
5. Total Area Occupied:
____a. lesser than 500 m2 ____b. 501 m2 - 1 hectare
____c. more than 1hectare
6. Types of plants sold and produced:
Kinds of
Specifications
Area
Number
Source of
Frequency of
Price
plants
Occupied
of
raw
production
produced
(m2 )
Plants/m2
materials
cactus
-Rare cactus
-Succulents
-Euphorbia
Flowering
-Chrysanthemum
-Rose
-Malaysian mums
-MilFlores
-Anthuriums
-Japanese
Anthuriums
-Impatients
-Begonia
-Canna
-Kalachuchi
-aster
-Alstromeria
-Carnation
-Star Gazers
-Dancing Lady
-Rosal
-Azalea
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
39
-Dama de Noche
-Gumamela
-Poinsettia
-Yellow shrimp
plant
-Gladiola
-Yellow Bell
Foliage
-Dracena
-Kutcharita
-Ivy
-San Francisco
-Bromiliads
-Peacock Plant
-Philodendron
- Five fingers
-palmera
-Peperomia
-Asparagus
Fruiting
-Money tree
Ornamental -Jerusalem berries
-Korean pepper
-Micky Mouse
Specialty
-Balite
Crop:
-Junifer
-Bonsai
-Boxwood
-cereza
-Chinese holy
-Golden Bush
-Pycus
- Dish
-Forest
Gardens
-dessert
Orchids
-Vanda
-Bamboo orchids
7. Where is the source of irrigation?
____a. rain fed _____c. creeks
____b. irrigated _____d. Others (pls. specify)_______
8. Where do you plant ornamentals?
____a. Green House
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
40
____b. Open field
9. Do you hire workers?
____a. yes
____b. no
10. How many employees do you hire? ________________
11. Is it seasonal or regular? _____________________
12. What skills should they possess?
13. How do you select/choose plants for sale?
____a. Size
____b. Appearance
____c. other (pls. specify)
14. To whom do you sell the product?
____a. neighbors
____d. institutional buyers (specify)
____b. retailers
____e. contract growers
____c. wholesalers
____f. others please specify:
15. Where are the known origins of the costumers?
____a. Local (pls. specify)
____b. National (pls. specify
____c. International (pls. specify)
16. Do you deliver to other places? ____a. yes ____b. no
If yes, where do you deliver it? _______________
17. Where do you sell your products?
____a. farm itself
____b. potted plants stalls
____c. others please specify:
18. How do you sell your product
____a. direct selling
____c. through sales agent
____b. negotiations
____d. other please specify
19. Do you sell or produce through out the year? ____a. yes ____b. no
If yes, why?
____a. continuous market demand
____b. adequacy of product
____c. others (pls. specify) ___________________________
If no, why?
____a. seasonality of demand
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
41
____b. seasonality of product
____c. others (pls. specify) ___________________________
20. What are the medium of communication involved in negotiation?
____a. face to face
____c. phone/ cell phone
____b. through sales representative
____d. computer
21. What is the basis of pricing?
____a. cost plus pricing
____c. perceived value pricing
____b. going rate or market price
____d. others please specify
22. Mode of payment
_____a. cash on delivery _____c. cash on pick-up
_____b. cash advance _____d. credit
23. What are the pricing strategies employed?
____a. Sale
____b. discounts
____c. bulk pricing
____d. others please specify
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
20. What other services do you offer? ________________
21. What problems do you encounter in the industry?
____a. seed availability
____b. soil depletion
____c. insect, pest and diseases
____d. Seasonality of production
____e. seasonality of commodities produced
____f. Lack of capital
____g. Lack of standards
____h. Lack of planting materials
____i. others (pls. specify
Benchmarking on the Ornamental Potted Plants in Baguio City / Sherley P. Francisco. 2010
Document Outline
- Benchmarking on the Ornamental
Potted Plants in Baguio City
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- Rationale
- Importance of the Study
- Statement of the Problem
- Objectives of the Study
- Scope and Limitations of the Study
- REVIEW OF LITERATURE
- METHODOLOGY
- Locale and Time of the Study
- Respondents of the Study
- Data Collection
- Data Gathered
- Data Analysis
- RESULTS AND DISCUSSION
- Socio Economic Profile of the Respondents
- Farm Profile of the Respondents
- Kinds of Ornamental Plants
- Production Practices or Systems
- Marketing Practices
- Employment Condition
- Problems Encountered
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- Summary
- Conclusions
- Recommendations
- LITERATURE CITED
- APPENDICES