BIBLIOGRAPHY ESTONG, JAMES...

BIBLIOGRAPHY


ESTONG, JAMES JR., C. APRIL 2011.Performance of actors in the Spot Market
Chains for Cabbage. Benguet State University, La Trinidad, Benguet.

Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)


ABSTRACT

This study aimed to determine the performance of the actors in the spot market
chain for cabbage in terms of: product quality satisfaction, flexibility, efficiency and
responsiveness and to determine whether there are differentences among the chain actors
in the spot market for cabbage.

The findings revealed that the demographic profile as to age, gender, marital
status, religion and their educational background do not affect the interest in engaging in
vegetable business as long as they have the interest and resources to venture into it.
An important finding on product quality satisfaction, the chain actors were highly
significantly different on the achievement of production/procurement/delivery targets,
satisfaction to the fulfillment of orders and deliveries when needed and selling of cabbage
on credit arrangement. In measuring flexibility performance, the chain actors differ very
significantly different as to the criterion to produce/ procure the desired volume when
buyers needed it and highly significant difference in the conflict between the buyer and
seller in their business transaction For the efficiency, the chain actors were observed
highly significant differences in the satisfaction with the rate of return to investment and
finally, on the responsiveness, the chain actors were highly significant different in all the
sets of criteria in measuring responsiveness such as: supplying the market when needed,




scheduling deliveries, finding time to deliver and to always act on the demand of the
buyer.
The chain actors should always comply with their commitment in order to avoid
misunderstanding and conflicts, managed long-term relationships to have a positive
impact on financial aspect, and to always interact continuously on issues related to
material flows and quality to attain continuous operation and good relationship.
















1
INTRODUCTION


Rationale

Cordillera Administrative Region (CAR), a semi-temperate place is the top
producer of cabbage in the country. Particularly, Benguet and Mountain Province.

Benguet recorded the highest production output form 2005-2007. Mountain
province was ranked second but its production way was far behind the output of Benguet.
Area harvested in Benguet was almost four times the area harvested in Mountain
Province. For 3-year period, Benguet registered the highest area and average yield
followed by Mountain Province. In 2007, Benguet average yield was registered 18.5
metric tons/ha followed by Mountain Province with 17.14 metric tons/ha. (Bureau of
Agricultural Statistics, 2008)

Among Cordillera Administrative Region (CAR) provinces, Benguet had the
highest production share at 81% followed by Mountain Province with 91%. Other
provinces counted but less than .5%.

Peak harvesting and trading of cabbage in Benguet occur in the month of March
and November. Lean season for the rest of the month. While in Mountain Province,
January is the peak harvesting and trading month.
Marketing practices of farmers is they usually sell their produce commodity to
assembler-wholesaler and retailers at the La Trinidad Vegetable Trading Post and at
Baguio City Hanger Market.

The primary factors considered by farmers in the choice of market outlets are:
regular buyers, better price and convenience. Another factor considered is the credit-
marketing tie-up. It means that buyers extend loans (in cash or in kind) to the producers
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without interest. The producers, in return, sell their produce to the creditor-buyer at
stipulated prices. To note, when vegetable prices dip to a low level and farmers foresee
that the total cost of their sales will not compensate for the production and hauling cost,
they just leave their crops un harvested to avoid more loss.

Marketing includes all the activities in the transformation of commodity
concerned with the way the product is sold.

Chain actors (farmers, assembler-wholesaler, financier-assembler-wholesaler,
trucker-wholesaler, wholesaler, wholesaler-retailers, and retailers) encounter problems
such as loss due to unstable prices of vegetables. Sometimes the actors buy the vegetables
with a higher price but when it reach the final market, the price fall due to oversupply of
this commodity. Another is the loss of quality of the product during the transportation
process along the market chain like bruises and rotting. Reduction of weight was also
observed on the cabbage because of the respiration process that occurs after the harvest
which usually reduces its water content. To conclude, performance of the chain actors
depends on their behavior on how they comply with each other.
Statement of the Problem

1. What are the indicators uses by the actors in the spot market to measure
performance?
2. What are the differences among the chain actors in the spot market chain for
cabbage?

Objectives of the Study
1. 1. To identify the performance of the actors in the spot market chain for cabbage
2. in terms of: product quality satisfaction, flexibility, efficiency and responsiveness.
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3. 2. To determine whether there are differences in performance among the chain
actors in the spot market chain for cabbage.


Importance of the Study

The research result would be in one way or another could be a source of
information to explain the performance of chain actors in the cabbage spot market using
the four dimensions of measuring performance. That is, the knowledge about the
associations between chain actors of cabbage.

Scope and Delimitation of the Study
The study focuses on the spot market chains for cabbage. Specifically on the
efficiency, flexibility, responsiveness and food quality of chain actors in the spot market
of cabbage.
The study was conducted on November to December 2010, at the spot markets of
cabbage in La Trinidad, Urdaneta City, Pangasinan and Metro Manila. The total numbers
of respondents were 193 intermediaries involved in marketing of cabbage such as 46
producers, 34 assemblers or collectors, 58 distributors and 55 retailers.







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REVIEW OF LITERATURE
Background of the Study

Pricing is considered by many to be the key activity (Daplian, 2001) within the free
enterprise system. Product price influences wages, rent, interest and profits. That is the
price of the product influences the price paid for the factors of production like labor, land,
capital and entrepreneurship. Price is the basis regulatory of economic system because it
influences the allocation of those factors of production, high cost of wage attracts labor;
high interest rates attract capital, and so on. In the allocation of scarce resources price
determined will be produced (supply) and who will get the product that is produced
(demand).
In the frame of this study, supply chain and networks is defined as the
interconnected business of individuals, operating independently, but dependent from each
other on the supply of goods and services. In essence, the fresh vegetable production and
marketing flow is regarded as a supply chain and this is largely due to the involvement of
a number of people or business entities performing different tasks until the product
reaches the consumers. The people (individuals, business entities) are chain actors that
undertake different functions from production to assembly to distributions and retailing
of vegetables. The business is independently managed with intra– and inter-
organizational relationships. In the exchange processes, there involve bi-directional flow
of products (materials and services) and information through the interactions of people
with either formal or informal relationships. Moreover, these individuals are largely
interdependent on the supply of products, thus with assumed coordination mechanisms to
facilitate marketing transactions.
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The impact of supply chain linkages on operational and business performance has
been the subject of a number of empirical studies. These studies have encompassed a
variety of supply chain definitions, performance measures and methodologies (Fynes et
al., (2005). For instance, Carter and Ellram (1994) found that supplier involvement in
product design has a positive impact on product quality using a case study design.
Narasimhan and Jayaran (1998) examined relationship between sourcing decisions,
manufacturing goals, customer’s responsiveness and manufacturing performance using
structural equation modelling. They found that integrating supply chain activities
involves aligning sourcing decisions to achieve manufacturing goals in terms of
dependability, flexibility, cost and quality. Likewise, Carr and Pearson (1999) found that
strategically managed long-term relationships with key suppliers can have a positive
impact on financial (as distinct from manufacturing) performance. Kaynak and Pagán
(2003) using stochastic frontier modelling, found that characteristics internal to the firm
such as top management commitment to purchasing and supply management had a
positive effective on production efficiency. Likewise, Salvador et al., (2001) found that
when buyers and suppliers interact on issues related to material flows and quality, there
are significant effects in terms of speed and delivery punctuality. More recently, Tan et
al., (2002) develop a comprehensive set of supply chain practice and supply chain
performance metrics and found that while some practices had a positive effect on
performance, others had an adverse effect.
There will be a common view within a chain with respect to its own behavior,
also regarding its impressions of outside expectations. Dominant scientific disciplines
describing and explaining behavior of chains are marketing science and economics. Other
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disciplines that are contributing to the behaviorist view are psychology, law,
environmental sciences, ecology, ethics, food safety, sociology, and among others.
Research questions refer to e.g. determination and requirements of chain behavior,
measurement of behavior c.g. performance, determination of relevant indicators related to
the actual circumstances, management tools instrumental in dealing with perceptions,
etc.. In practice benchmarking of chains is an important tool for chain analysis (Beers et
al., 1998).
A product is created by a set of activities with precedence relations between them
executed and directed by organizations within the production chain. The way these
activities are organized, managed and controlled among several actors (e.g. companies) is
the focus of the institutional approach in chain studies. The linkages between the actors
are primary subject of study. The institutional perspective deals with the interaction
between organizations in the chain, e.g. the way contracts are managed, the pricing
processes, exchange of information, coordination and control of physical flows etc.
Dominant scientific disciplines working within the realm of this perspective are
organization and management theory and business economics. Other sciences involved
are law, information science, transaction theory, management science, logistics etc.
Scientific issues to be researched are directed towards type of linkages, effectiveness and
efficiency of linkages, conditioning of linkages etc. (Beers et al., 1998).
Performance measurement is used to help direct the allocation of resources, assess
and communicate progress towards strategic objectives and evaluate managerial
performance (Ittner and Larcker, 2003). It helps also the manager to identify good
performance, helps to make tradeoff s between profit and investment, provide means to
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set strategic targets and ensures that managers are aware when to get involved if business
is distracting (Nelly et al., 1994).
According to Theodoras et al. (2005) despite the importance of measuring
performance in obtaining competitive advantage in the supply chain, relatively little
research has been undertaken to provide a thorough understanding of measuring and
improving performance in the food industry.
A knowledge gap between farmers and processors about e.g. business practices,
product supply, quality expectations therefore, farmers and processors pose different
questions to improve supply chain performance which leads them to run the risk of mis-
specifying each others decision process (Le Heron, 2001).
Performance measurement as defined by (Nelly et al., 2005) is the process of
quantifying the efficiency and effectiveness of an action, a performance indicator is a
measure used to quantify the efficiency and effectiveness of an action. According to
Coeli et al. (2005) a natural measure of performance is a productivity ratio: the ratio of
outputs to inputs, where larger values of this ratio are associated with better performance.
While there are many indicators of performance that can be deployed in an organization,
there is a relative small number of dimensions which contribute more than proportionally
to success or failure in the market, which are Key Performance Indicator (KPIs).
Performance can be characterized cost factor and service factor. In the cost factor
the cost of inventory, transportation, facilities and handling cost and information
infrastructure and the service factor consider the response time, product variety, product
availability and return ability (Hongze Ma, 2005). Performance measurement as a subject
involves the development of goals and their related measures, as well as the appropriate
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mechanisms of feedback. It must therefore reflect the operating assumptions of the
organization, in terms of culture, strategy and operational processes. This requires the
identification of the pressures, which the organization faces, both internal and external,
and should consequently lead to a set of action plans for specific areas of organizations
(Hines et al. 2000). Performance measurement of any activity should be designed to
bring about improvement in that activity, highlighting variances over time, and enabling a
more efficient allocation of resources (Geanuracos and Meiklejohn, 1994).
Performance metrics are necessary to confirm that the supply chain is
functioning as expected, or that there are problems that must be addressed. There are
several measures that can be used that relate to such things as late deliveries, inventory
turnover, response time, quality issues, and so on in the retail sector, the fill rate (the
percentage of demand filled from stock on hand) is often very important. Another
approach is to use the Supply Chain Operations Reference (SCOR) model. The SCOR
model reflects an effort to standardize measurement of supply chain performance.
The performance of the supply chain can refer both to the performance of the
industry as well as the individual firm supply chain. Furthermore, performance has three
dimensions: effectiveness, efficiency and equity. Since the objectives of efficiency and
effectiveness influence make –versus-buy or “outsourcing” decisions of supply chain
members, they thus, are influenced by the structure and conduct in that chain. The first
dimension of performance is effective, when it meets the demand of its ultimate
customers concerning product, price and service outputs (consistent and on-time delivery,
continuity and flexibility in supply, assortment and variety, etc.). This also includes the
measurement of customer satisfaction. The second dimension of performance is
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efficiency. Measurement of efficiency of individual supply chain members can be derived
from the contribution ratio. The third component of performance is equity. The equity
level within a supply chain is indicated by the degree of resemblance between the share
of total contribution margin gained and the share of total supply costs bore by each chain
members involved in the production and marketing of the product (Sijses, 2004).
Aramyan et al., (2006) summarized the different methods to assess supply chain
performance, the advantages and disadvantages of each method; and developed a
conceptual framework for agri-food supply chain performance indicators. The categories
are chosen from the literature review on supply chain performance measures from
different sectors and these include efficiency, flexibility, responsiveness and food quality.
Flexibility- indicates the degree to which supply chain can respond to changing
environment and extraordinary customer service requests (Aramyam, 2007).
Responsiveness- aims at providing the requested products with a short lead time.
Salvador et al., (2001) found that when buyers and suppliers interact on issues related to
material flows and quality, there are significant effects in terms of speed and delivery
punctuality.
Food Quality (Luning et al., 2002)- consists of product safety and health; the
sensory properties and shell life and; product reliability and convenience.
Efficiency- measures how well the resources are utilized (Lai et al., 2002) which
include production costs, profit, return on investment and inventory. Measurement of
efficiency of individual supply chain members can be derived from the contribution ratio
(Sijses, 2004). Grimsdell (1996) identified the fundamental requirements for efficient
supply performance between agricultural growers and consumers as: scale of operation;
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producer flexibility; continuity of supply; quality control; strategic alliances; and
communications.

Conceptual Framework
From the literatures cited, there are several methods and models to measure
supply chain performance (Figure 1). Performance indicators have been identified,
summarized and further categorized. In these regards, the research will assess the
performance in the spot market chains for cabbage using the four indicators of measuring
performance such as: product quality satisfaction, flexibility, efficiency and
responsiveness. The study shall focus in determining and differences of the performance
of the chain actors. Specifically, the product quality satisfaction will be assess based from
the physical products, the flexibility from the degree to which supply chain can respond
to changing environment, efficiency the productive use of product with minimum waste
and effort and finally, the responsiveness in responding readily.












Performance Of Actors In The Spot Market Chains For Cabbage
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Chain
Characteristics


Farmers


Dimension of

Performance

Flexibility
Assembler-
Output


Wholesalers



Responsiveness

Performance profile
Trucker-Wholesale rs
Quality Satisfaction


Differences in
performance of the
Wholesalers
actors in cabbage spot


Efficiency

market


Wholesaler-Retailers





Retailers








Figure 1. Conceptual framework








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Definition of Terms
Performance – refers to the accomplishment of a job.
Producers/Farmers – the one who produces the commodities.
Wholesaler – refers to middlemen who directly sell potato to retailers in
wholesale basis.
Assembler Wholesaler – they are the one who assemble the product to make it in
large quantity.
Truckers or Viajeros – they are in charge of carrying the product to put it in the
spot markets.
Retailers – refers to the individuals who market cabbage directly to ultimate
consumers.
Spot market or bagsakan– place where the product are being delivered and sold.
Flexibility - respond to changing environment.
Responsiveness – the ability of a system to adjust quickly to a situation and to
resume stable operation without undue delay.
Food quality - consists of product safety and health; the sensory properties and
shell life and; product reliability and convenience.
Efficiency – ability to accomplish a job with a minimum expenditure of time and
effort.






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METHODOLOGY


Locale and Time of the Study

The research locations followed the geographic flow of fresh semi-vegetables
from the major source (production) to the major market assembly and collection, and the
geographic distribution markets. However, the research coverage areas were limited to
selected production and marketing areas.
The primary markets (assembly/collection) were concentrated in La Trinidad,
Benguet.
Secondary markets (distribution) were the major vegetables trading centers
(commonly called “bagsakan”) at Balintawak market in Quezon City, Urdaneta City,
Pangasinan.
While the tertiary markets include the retailing markets within these trading
centers and other retail market outlets such as Novaliches, Pasay Kamuning, Dapitan,
Blumentritt and Libertad.
Respondents of the Study
Respondents of the study were the different chain actors involved in marketing of
cabbage in the spot markets. There were 193 intermediaries involved in the product flow
of cabbage such as 46 producers, 34 assemblers or collectors, 58 distributors and 55
retailers.

Data Gathering Procedure

The research instrument used to gather the data was the interview schedules and
observations.
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Data Gathered
The data gathered was the performance indicators in cabbage spot market chains
in terms of efficiency, flexibility, responsiveness and product quality. Also on the
differences in performance among the chain actors and the comparison of performances
of various sectors using the four dimensions of measuring quality.
Data Analysis
The data gathered were tabulated in the excel program and analyzed using the
SPSS version 16. For descriptive analysis, frequency counts and percentage was used
while the statistical test, kruskal-wallis was used.













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RESULTS AND DISCUSSION

Demographic Profile of the Respondents


Table 1 presents the demographic profile of the respondents which represents the
different classification of the respondents as to their age, gender, marital status, religion
and their educational background.
Age. This shows that majority of the farmers (39%), assembler-wholesalers
(32%), trucker-wholesalers (42%) and wholesalers (30%) belong to age bracket 21-30
years old. While the assembler-wholesalers (32%), financier-assembler-wholesalers
(47%) and wholesaler-retailers (39%) have the age ranging from 31-40 years old. It could
be noted, however that there are respondents with age of over 61 years old. Thus, it
implies that age is not a requirement to engage in vegetable business as long as they have
the resources and interest to venture into it.
Gender. Majority of the farmers (91%), assembler-wholesalers (68%), and
trucker-wholesalers (67%) are dominated by male while the other groups are female. The
result implied the difference according the nature of activity or business performed.
Marital Status. Almost all of respondents were married with the exception of the
wholesalers (60%) are dominated by single. There were also respondents that are
separated and widowed. Thus, regardless of marital status, anybody could engage in
vegetable business.
Religion. As to religious affiliation of the respondent, catholic constituted the
largest number and only few belongs to Protestants and other religious denomination. It
shows that most of the respondents (chain actors) belong to Christian community.
Educational background. Majority of the respondents are college graduate but it
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Table 1: Respondent’s Profile

















Assembly
Distribution
Retailing

Production
F
A-W
F-A-W
T-W
W
W-R
R

N
%
N
%
N
%
N
%
N
%
N
%
N
%
Age














20 and
5
11
2
11
0
0
0
0
4
40
3
8
2
4
below
21-30
18
39
6
32
1
7
5
42
3
30
12
33
12
22
31-40
10
22
6
32
7
47
4
33
1
10
14
39
10
18
41-50
9
20
4
21
4
27
2
17
1
10
3
8
21
38
51-60
3
7
1
5
3
20
1
8
1
10
3
8
8
15
61 above
1
2
0
0
0
0
0
0
0
0
1
3
2
4
TOTAL
46
100
19
100 15 100 12 100 10 100
36
100
55
100
Gender






Male
42
91
13
68
5
33
8
67
4
40
12
33
9
16
Female
4
9
6
32
10
67
4
33
6
60
24
67
46
84
TOTAL
46
100
19
100 15 100 12 100 10 100
36
100
55
100
Marital Status













Single
16
35
2
11
1
67
5
42
6
60
15
42
9
16
Married
30
65
17
89
13
87
7
59
4
40
20
56
43
78
Separated
0
0
0
0
1
7
0
0
0
0
0
0
2
4
Widow
0
0
0
0
0
0
0
0
0
0
1
3
1
2
TOTAL
46
100
19
100 15 100 12 100 10 100
36
100
55
100
Religion







Catholic
33
72
14
74
11
73
12 100
9
90
23
64
45
82
Protestant
8
17
3
16
3
20
0
0
1
10
9
25
6
11
Others
5
11
2
11
1
7
0
0
0
0
4
11
4
7
TOTAL
46
100
19
100 15 100 12 100
10
100
36
100
55
100
Educational Background
Elementary
13
28
1
5
2
13
2
17
1
10
4
11
10
18
High
20
43
9
47
6
40
4
33
4
40
16
44
31
56
School
College
13
28
9
47
7
47
6
50
5
50
14
39
12
22
Vocational
0
0
0
0
0
0
0
0
0
0
2
6
2
4
TOTAL
46
100
19
100 15 100 12 100
10
100
36
100
55
100
Legend: F- farmer
W- wholesaler
AW- assembler-wholesaler
WR- wholesaler-retailer
FAW- financier-assembler-wholesaler

R- retailer
TW- trucker-wholesaler


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was noted that it was only slightly ahead of greater number of respondents compared to
the high school graduate, 56% of the retailers were high school graduate. Thus, the result
implies that educational background is not a necessary to engage in vegetable business as
long as there is the interest and a knowledge on computation.

Number of Years Engage in Vegetable Business

Table 2 shows that majority of the chain actors are engage in vegetable business
production from one to five years, farmers (17%), assembler-wholesalers (47%), trucker-
wholesalers (33%), wholesalers (60%), wholesaler-retailers (89%), retailers (31%) and
11-15 years for the financier-assembler-wholesalers (47%). All the other years bracket
were few respondents respond. Hence, it implies that it is not a necessary for anyone to
have a long experience to engage in vegetable business.

Organizational Affiliations

As to the organizational affiliation (Table 3), majority of all the chain actors do
not belong to any organization, farmers (89%), assembler-wholesalers (74%), financier-
assembler-wholesalers (53%), trucker-wholesalers (42%), wholesalers (70%),
wholesaler-retailers (69%), and retailers (87%). However, there are also few respondents
who were a member of cooperatives and other organization. The result implies that it is
not a necessary for the chain actors to join in any organizations.

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Table 2.Number of Years Engaged

Years
Production
Assembly
Distribution
Retailing
F
A-W
F-A-W
T-W
W
W-R
R

N
%
N
%
N
%
N
%
N
%
N
%
N
%
Below 1
Yr.
0
0
1
5
0
0
0
0
1
10
0
0
2
4
1-5
17
37
9
47
4
27
4
33
6
60
32
89
17
31
6-10
6
13
5
26
2
13
3
25
3
30
4
11
9
16
11-15
6
13
3
16
7
47
4
33
0
0
0
0
5
9
16-20
9
20
0
0
0
0
0
0
0
0
0
0
11
20
21-25
2
4
1
5
2
13
1
8
0
0
0
0
2
4
26-30
2
4
0
0
0
0
0
0
0
0
0
0
8
15
31 and
above
4
9
0
0
0
0
0
0
0
0
0
0
1
2
TOTAL
46
100
19
100 15 100
12
100
10
100
36
100
55
100


Table3.Organizational Affiliation
Organization
Production
Assembly
Distribution
Retailing
F
A-W
F-A-W
T-W
W
W-R
R

N
%
N
%
N
%
N
%
N
%
N
%
N
%

Farmer's
1
2
0
0
0
0
0
0
2
20
0
0
0
0
Association
Cooperatives
1
2
2
11
4
27
3
25
1
10
8
22
2
4
Others
3
7
3
16
3
20
4
33
0
0
3
8
5
9
None
41
89
14
74
8
53
5
42
7
70
25
69
48
87
TOTAL
46
100
19
100 15 100
12
100
10 100
36
100
55
100
Legend: F- farmer W- wholesaler

AW- assembler-wholesaler WR- wholesaler-retailer

FAW- financier-assembler-wholesaler
R- retailer
TW- trucker-wholesaler

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19
Spot Market Chain for Cabbage


Figure 2 shows the different chain actors playing in the cabbage spot market. It
shows whom the different market intermediaries’ trade within the procurement and
selling of cabbage. This therefore shows the flow of cabbage in the spot market from its
point of production to the final consumer.

It was shown in the result that farmers have access to the different buyers in the
spot market. Farmers can sell the produced cabbage with any of the buyers in La Trinidad
Trading Post such assembler-wholesalers, financier assembler wholesalers, trucker
wholesalers, wholesalers and wholesaler-retailer and retailers. However some of them
can access to buyers on other selling place such Urdaneta and Balintawak.
Furthermore the result shows that there are many spot market chain for cabbage
such as: farmers to assembler-wholesalers, financier assembler wholesalers, trucker
wholesalers, wholesalers and wholesaler-retailer and retailers within La Trinidad
Vegetable Trading Post (LTVTP), it implies that chain actors can produce/ procure or sell
the cabbage with in LTVTP. Moreover, spot market chain for cabbage flows from farmer
in LTVTP to assembler-wholesalers, financier assembler wholesalers, trucker
wholesalers, wholesalers and wholesaler-retailer and retailers at Urdaneta Trading Post, it
revealed that through chain actors cabbage are available to different selling place or spot
market.
The trucker-wholesalers from LTVTP are supplied by farmers and assembler-
wholesalers either from private and non private. The procured cabbage is distributed by
the trucker-wholesalers to wholesalers in Balintawak, wholesaler-retailers and retailers in
Urdaneta market. The wholesaler-retailers in LTVTP directly buy cabbage from
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

20

F
F
PTC
LTVTP





A-W

F-A-W
A-W
F-A-W

LTVTP



LTVTP
BALINTAWAK
BALINTAWAK
A-W


F-A-
PTC
W-R



LTVTP






T-W

T-W
BALINTAWAK
L TVTP

A-W

W
W
URDANETA, PANG.

BALINTAWAK
BALINTAWAK




F-A-W
W-R
W-R
URDANETA, PANG.
LTVT P
W
METRO MANILA


METRO MANILA



W-R

R
URDANETA, PANG.
LTVTP
R




METRO MANILA
W-R



METRO MANILA
CONSUMERS
PANG.
URDANETA, PANG.
R

URDANETA, PANG.
CONSUME
RS

LTVTP


CONSUMERS

METRO MANILA


LEGEND:
F (Farmer) A-W (Assembler-Wholesaler) F-A-W (Financier- Assembler-Wholesaler)
F-A-W-R (Financier-Assembler-Wholesaler-Retailer) T-W (Trucker-Wholesaler)
W (Wholesaler W-R (Wholesaler-Retailer) R (Retailer)
LTVTP (La Trinidad Vegetable Trading Post) Metro Manila


PTC (Private Trading Center) B

alintawak


Urdaneta, Pangasinan



Figure 2. Spot market chain and location for cabbage
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

21
assembler-wholesalers aside from farmers and sell to retailer and end users in the same
place. Other spot market chain for cabbage follow the flow of farmers at LTVTP to
assembler-wholesalers, trucker wholesalers and wholesalers in Balintawak, from
Balintawak chain actors wholesaler retailer and retailer procure or buy produced cabbage
that this chain actors will sale in Metro Manila.
The financier-assembler-wholesalers in Balintawak has a direct access from
farmers at LTVTP and sell to trucker-wholesalers at Balintawak. The trucker-wholesalers
distributes it to wholesalers in Balintawak and Metro Manila and to wholesaler-retailers
as well.
The wholesaler-retailer in Metro Manila buy cabbage from Balintawak wholesaler
and trucker wholesaler. Wholesaler-retailer sells the procured cabbage to some
wholesaler-retailer and retailers.

Product quality satisfaction


Consists of product safety and health; the sensory properties and shell life and;
product reliability and convenience.

Table 4 reveals that majority of the farmers (54%), assembler-wholesaler (68%),
wholesaler-retailer (61%) and retailer (49%) moderately agree that they meet the physical
quality of cabbage bought or sold. As to the buyers requirement on the quality of cabbage
delivered, greater percentage of farmers (41%), assembler-wholesaler (58%), financier-
assembler-wholesaler (47%), trucker-wholesaler (50%), and retailers (51%) moderately
agree, however, (50%) of the wholesaler wholesalers were undecided and wholesaler-
retailers (39%) strongly agree. For the satisfaction on the volume produce/procure/sold to
the buyer, greater number of the respondents on the farmers (46%), assembler-
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

22
Table 4a. Product quality satisfaction
1
2
3
4
5


STATEMENT
N %
N
%
N
%
N
%
N
%
AVE
Farmer











1. The quality of cabbages I
produce/procure/sold meets my
expectation.
0
0
2
4
13 28 25 54
6
13
4
2. The quality of cabbages delivered meets
the buyer’s requirements.
0
0
4
9
17 37 19 41
6
13
4
3. I am satisfied with the volume I
produce/procure or sold to the buyer.
1
2
5
11
9
20 21 46
10
22
4
4. I always achieve my
production/procurement/delivery targets.
1
2
4
9
28 61
9
20
4
9
3
5. I am satisfied to fulfill the orders and
deliveries of cabbages when needed.
2
4
8
17 16 35 14 30
6
13
3
6. I am satisfied selling cabbages to buyers
on credit arrangement.
12 26
7
15 19 41
5
11
3
7
3
7. The quality of cabbages I supplied in the
market is reliable.
0
0
5
11 11 24 22 48
8
17
4
8. The buyers are always satisfied as to
variety of product, price, and
quality/quantity.
0
0
1
2
21 46 20 43
4
9
4
Assembler-Wholesaler
1. The quality of cabbages I produce/











procure/sold meets my expectation.
0
0
0
0
3
16 13 68
3
16
4
2. The quality of cabbages delivered meets
the buyer’s requirements.
0
0
0
0
4
21 11 58
4
21
4
3. I am satisfied with the volume I
produce/procure or sold to the buyer.
0
0
0
0
3
16 10 53
6
32
4
4. I always achieve my
production/procurement/delivery targets.
1
5
1
5
2
11
9
47
6
32
4
5. I am satisfied to fulfill the orders and
deliveries of cabbages when needed.
0
0
1
5
5
26
4
21
9
47
4
6. I am satisfied selling cabbages to buyers
on credit arrangement.
0
0
9
47
6
32
3
16
1
5
3
7. The quality of cabbages I supplied in the
market is reliable.
0
0
0
0
3
16 11 58
5
26
4
8. The buyers are always satisfied as to
variety of product, price, and
quality/quantity.
0
0
0
0
7
37
7
37
5
26
4
Numerical value and descriptive equivalent:

1-Strongly disagree 4-moderately agree

2-disagree 5-strongly agree
3-undecided





Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

23
Table 4a. Continued…

1
2
3
4
5


STATEMENT
N %
N
%
N
%
N
% N %
AVE.
Financier-Assembler-Wholesaler












1.The quality of cabbages I produce/

procure/sold meets my expectation.
0
0
0
0
2
12
6
35 9 53
4
2. The quality of cabbages delivered meets
the buyer’s requirements.
0
0
1
6
2
12
8
47 6 35
4
3. I am satisfied with the volume I
produce/procure or sold to the buyer.
0
0
0
0
1
6
8
47 8 47
4
4.I always achieve my production/
procurement/ delivery targets.
0
0
1
6
8
47
4
24 4 24
4
5.I am satisfied to fulfill the orders and
deliveries of cabbages when needed.
0
0
2
12
2
12
5
29 8 47
4
6. I am satisfied selling cabbages to buyers
on credit arrangement.
4 24
5
29
5
29
2
12 1
6
2
7. The quality of cabbages I supplied in
the market is reliable.
0
0
0
0
2
12
9
53 6 35
4
8. The buyers are always satisfied as to
variety of product, price, and
quality/quantity.
0
0
1
6
4
24
9
53 3 18
4
Trucker-Wholesaler
1The quality of cabbages I produce/











procure/sold meets my expectation.
0
0
0
0
5
42
2
17 5 42
4
2. The quality of cabbages delivered meets
the buyer’s requirements.
0
0
0
0
4
33
6
50 2 17
4
3.I am satisfied with the volume I
produce/procure or sold to the buyer.
0
0
0
0
0
0
7
58 5 42
4
4.I always achieve my production/
procurement /delivery targets.
0
0
2
17
1
8
4
33 5 42
4
5.I am satisfied to fulfill the orders and
deliveries of cabbages when needed.
0
0
1
8
1
8
3
25 7 58
4
6.I am satisfied selling cabbages to buyers
on credit arrangement.
2 17
3
25
5
42
1
8
1
8
3
7.The quality of cabbages I supplied in the
market is reliable.
0
0
0
0
0
0
9
75 3 25
4
8.The buyers are always satisfied as to
variety of product, price, and
quality/quantity.
0
0
0
0
4
33
5
42 3 25
4








Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

24
Table 4a. Continued…

1
2
3
4
5


STATEMENT
N %
N
%
N
%
N
%
N
% AVE.
Wholesaler











1.The quality of cabbages I produce/
procure/sold meets my expectation.
1
10
0
0
6
60
2
20
1
10
3
2.The quality of cabbages delivered
meets the buyer’s requirements.
0
0
1
10
5
50
2
20
2
20
4
3.I am satisfied with the volume I
produce/procure or sold to the buyer.
0
0
1
10
4
40
2
20
3
30
4
4.I always achieve my production/
procurement/delivery targets.
0
0
3
30
3
30
2
20
2
20
3
5.I am satisfied to fulfill the orders and
deliveries of cabbages when needed.
0
0
2
20
1
10
3
30
4
40
4
6.I am satisfied selling cabbages to
buyers on credit arrangement.
1
10
1
10
5
50
1
10
2
20
3
7.The quality of cabbages I supplied in
the market is reliable.
0
0
0
0
3
30
5
50
2
20
4
8.The buyers are always satisfied as to
variety of product, price, and
quality/quantity.
0
0
0
0
4
40
3
30
3
30
4
Wholesaler-Retailer
1.The quality of cabbages I produce/











procure/sold meets my expectation.
0
0
1
3
7
19 19 53
9
25
4
2.The quality of cabbages delivered
meets the buyer’s requirements.
0
0
2
6
7
19 22 61
5
14
4
3.I am satisfied with the volume I
produce/procure or sold to the buyer.
0
0
1
3
8
22 13 36 14 39
4
4.I always achieve my production/
procurement/delivery targets.
0
0
3
8
8
22 17 47
8
22
4
5. I am satisfied to fulfill the orders and
deliveries of cabbages when needed.
0
0
2
6
11 31 10 28 13 36
4
6.I am satisfied selling cabbages to
buyers on credit arrangement.
2
6
5
14 11 31 13 36
5
14
3
7.The quality of cabbages I supplied in
the market is reliable.
0
0
1
3
6
17 19 53 10 28
4
8.The buyers are always satisfied as to
variety of product, price, and
quality/quantity.
0
0
1
3
11 31 17 47
7
19
4








Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

25
Table 4a. Continued…

1
2
3
4
5


STATEMENT
N
% N %
N
%
N
%
N
%
AVE.
Retailer











1.The quality of cabbages I produce/
procure/sold meets my expectation.
1
2
2
4
13 24
27 49 12 22
4
2.The quality of cabbages delivered
meets the buyer’s requirements.
3
5
1
2
17 31
28 51
6
11
4
3.I am satisfied with the volume I
produce/procure or sold to the buyer.
2
4
5
9
9
16
24 44 15 27
4
4.I always achieve my production/
procurement/delivery targets.
8
15 5
9
16 29
18 33
8
15
3
5. I am satisfied to fulfill the orders and
deliveries of cabbages when needed.
9
16 6 11
9
16
16 29 15 27
3
6.I am satisfied selling cabbages to
buyers on credit arrangement.
16 29 7 13 19 35
13 24
0
0
3
7.The quality of cabbages I supplied in
the market is reliable.
1
2
3
5
10 18
28 51 13 24
4
8.The buyers are always satisfied as to
variety of product, price, and
quality/quantity.
1
2
1
2
19 35
20 36 14 25
4



Table 4b. Descriptive analysis and test statistics

CHI-
ASYMPT.
STATEMENT
MEAN
SQUARE
DF
SIG.
1.The quality of cabbage I produce/procure sold
meets my expectation.
3.89
5.762
3
.124

2.The quality of cabbages delivered meets
the buyer’s requirements.
3.73
7.238
3
.065
3.I am satisfied with the volume I
produce/procure or sold to the buyer.
3.96
7.065
3
.070
4.I always achieve my production/
procurement/delivery targets.
3.5
13.794
3
.003**
5.I am satisfied to fulfill the orders and
deliveries of cabbages when needed.
3.68
15.881
3
.001**
6. I am satisfied selling cabbages to buyers
on credit arrangement.
2.75
12.489
3
.006**
7.The quality of cabbages I supplied in the
market is reliable.
3.95
7.156
3
.067
8.The buyers are always satisfied as to
variety of product, price, and
quality/quantity.
3.77
3.641
3
.303
Legend: **- highly significant
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

26
wholesalers (53%), financier-assembler-wholesalers (47%), trucker-wholesalers (58%),
wholesaler-retailers (47%) and retailers (44%) moderately agree, only the wholesalers
where
40%
were
undecided.
As
to
the
achievement
on
the
production/procurement/delivery targets, larger number of the respondents from farmers
(61%), financier-assembler-wholesalers (47%), wholesalers (30%), wholesaler-retailers
(31%), and retailers (29%) were undecided, however, for the assembler-wholesalers
(47%) moderately agree and for the trucker-wholesalers (42%) strongly agree. On the
satisfaction on the fulfillment of orders and deliveries when needed, significant number
of the assembler-wholesalers (47%), financier-assembler-wholesalers (47%), trucker-
wholesalers (58%), and wholesalers(40%) strongly agree and farmers (35%) were
undecided, for the wholesaler-retailers (36%) and retailers (29%) moderately disagree. As
to the selling of cabbage on credit arrangement, farmers (41%), financier-assembler-
wholesalers (29%), trucker-wholesalers (42%), wholesalers (50%), were undecided,
however, there were farmers (26%), trucker-wholesalers (17%) and retailers (29%)
strongly disagree. Majority of the farmers (48%), assembler-wholesalers (58%),
financier-assembler-wholesalers (53%), trucker-wholesalers (75%), wholesalers (50%),
wholesaler-retailers (53%), moderately agree that the quality of the cabbage they supplied
in the market were reliable. As to the satisfaction of buyers as to variety, price,
quality/quantity, farmers (46%), assembler-wholesalers (37%), wholesalers (40%) were
undecided, financier-assembler-wholesalers (47%) strongly agree, and assembler-
wholesalers (37%), trucker-wholesalers (42%), wholesaler-retailers (47%), and retailers
(36%) moderately agree. The mean average implied that the chain actors were undecided
that they are satisfied of selling cabbage on credit arrangement and they moderately agree
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

27
in terms of the physical quality of cabbage, the buyers requirement as to the quality of
cabbage delivered, satisfaction with the volume procure/produce or sold to the buyer,
achievement of production/procurement/delivery targets, satisfaction to the fulfillment of
orders and deliveries when needed, the reliability of the quality supplied in the market
and the satisfaction of the buyers as to variety of product, price and quality/ quantity. The
chain actors give much importance on the satisfaction to the fulfillment of orders and
deliveries followed by the achievement of production/procurement/delivery targets, the
satisfaction of selling cabbage on credit arrangement, they give less much importance on
the satisfaction of buyers as to variety, price, and quality/quantity followed by the
expectation to meet the quality of cabbage produce/procure/ sold to the buyer and then on
the reliability of the quality of cabbage supplied in the market. The chain actors highly
significantly differ on the achievement of production/procurement/delivery targets. On
the other hand, they highly differ on the satisfaction to the fulfillment of orders and
deliveries when needed which means that the chain actors really depend on their own
capital for them to produce. Moreover, the chain actors also highly differ on selling of
cabbage on credit arrangement that implies that the seller are selective in choosing to
whom they sell their product on credit arrangement.

Flexibility performance
Indicates the degree to which supply chain can respond to changing environment
and extraordinary customer service requests.
Table 5 shows that greater percentage of the farmers (43%), trucker-wholesalers
(17%) and retailers (29%) were undecided, for assembler-wholesalers (32%) were
moderately agree and undecided, financier-assembler-wholesalers (35%) strongly agree
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

28
Table 5a. Distribution of respondents according to flexibility
1
2
3
4
5


STATEMENT
N % N
%
N
%
N
%
N
%
AVE.
Farmer
1. I can produce/procure the desired volume











when buyers needed it.
1
2 10 22 20 43 11 24
4
9
3
2. I exert effort to produce the desired volume
and quality when buyers demand it.
1
2
2
4
9
20 21 46 13
28
4
3. The buyer is flexible to buy cabbages
regardless of quantity and quality.
1
2
3
7
14 30 20 43
8
17
4
4. The buyer and seller have little conflict in
the business transaction.
3
7
7
15 18 39 15 33
3
7
3
Assembler-Wholesaler
1. I can produce/procure the desired volume











when buyers needed it.
0
0
1
5
6
32
6
32
6
32
4
2. I exert effort to produce the desired volume
and quality when buyers demand it.
0
0
0
0
6
32
8
42
5
26
4
3. The buyer is flexible to buy cabbages
regardless of quantity and quality.
0
0
0
0
5
26 10 53
4
21
4
4. The buyer and seller have little conflict in
the business transaction.
1
5
2
11
5
26 10 53
1
5
3
Financier-Assembler-Wholesaler
1. I can produce/procure the desired volume











when buyers needed it.
0
0
1
6
4
24
6
35
6
35
4
2. I exert effort to produce the desired volume
and quality when buyers demand it.
0
0
1
6
1
6
7
41
8
47
4
3. The buyer is flexible to buy cabbages
regardless of quantity and quality.
1
6
0
0
4
24
6
35
6
35
4
4. The buyer and seller have little conflict in
the business transaction.
1
6
0
0
6
35
5
29
5
29
4
Trucker-Wholesaler
1. I can produce/procure the desired volume











when buyers needed it.
1
8
1
8
2
17
3
25
5
42
4
2. I exert effort to produce the desired volume
and quality when buyers demand it.
0
0
1
8
1
8
3
25
7
58
4
3. The buyer is flexible to buy cabbages
regardless of quantity and quality.
0
0
0
0
3
25
6
50
3
25
4
4. The buyer and seller have little conflict in
the business transaction.
1
8
0
0
2
17
7
58
2
17
4
Numerical value and descriptive value:

1-Strongly disagree 4-moderately agree

2-disagree 5-strongly agree
3-undecided




Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

29
Table 5a. Continued…

1
2
3
4
5


STATEMENT
N %
N
%
N
%
N
%
N
%
AVE.
Wholesaler
1. I can produce/procure the desired volume











when buyers needed it.
0
0
0
0
3
30
4
40
3
30
4
2. I exert effort to produce the desired volume
and quality when buyers demand it.
0
0
0
0
2
20
4
40
4
40
4
3. The buyer is flexible to buy cabbages
regardless of quantity and quality.
0
0
0
0
3
30
3
30
4
40
4
4. The buyer and seller have little conflict in
the business transaction.
0
0
2
20
4
40
2
20
2
20
3
Wholesaler-Retailer
1. I can produce/procure the desired volume











when buyers needed it.
1
3
3
8
9
25 11 31 12
33
4
2. I exert effort to produce the desired volume
and quality when buyers demand it.
1
3
0
0
3
8
18 50 14
39
4
3. The buyer is flexible to buy cabbages
regardless of quantity and quality.
0
0
1
3
11 31 15 42
9
25
4
4. The buyer and seller have little conflict in
the business transaction.
2
6
3
8
11 31 15 42
5
14
4
Retailer
1. I can produce/procure the desired volume











when buyers needed it.
3
5
9
16 16 29 15 27 12
22
3
2. I exert effort to produce the desired volume
and quality when buyers demand it.
3
5
5
9
10 18 22 40 15
27
4
3. The buyer is flexible to buy cabbages
regardless of quantity and quality.
4
7
7
13 11 20 23 42 10
18
4
4. The buyer and seller have little conflict in
the business transaction.
8 15
5
9
20 36 20 36
2
4
3


Table 5b. Descriptive analysis and test statistics


STATEMENT
MEAN
CHI-
DF
ASYMP.
SQUARE
SIG.
1. I can produce/procure the desired volume when
buyers needed it.
3.59
17.330
3
.001**
2. I exert effort to produce the desired volume
and quality when buyers demand it.
4
6.984
3
.072
3. The buyer is flexible to buy cabbages
regardless of quantity and quality.
3.74
4.500
3
.212
4. The buyer and seller have little conflict in the
business transaction.
3.35
12.527
3
.006**
Legend: **- highly significant

Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

30
and moderately agree, for the wholesalers (40%) moderately agree and on the wholesaler-
retailers (33%) strongly agree that they can produce the desired volume when buyers
needed. As to the exertion of effort to produce the desired volume when buyers demand
it, farmers (46%), assembler-wholesalers (42%), wholesaler-retailers (50%), and retailers
(40%) moderately agree and majority of the financier-assembler-wholesalers (47%),
trucker-wholesalers (58%) and wholesalers (42%) strongly agree. For the flexibility of
the buyer to buy regardless of quality and quantity, greater percentage of the different
chain actors falls under moderately agree except for the wholesalers (40%) strongly
agree. For the last criterion on measuring efficiency is the buyer and seller have little
conflict on their business transaction where there were farmers (39%), financier-
assembler-wholesalers (35%), wholesalers (40%), and retailers (36%) undecided;
majority on the respondents from assembler-wholesalers (53%), trucker-wholesalers
(58%), wholesaler-retailers (42%) moderately agree, however, there were retailers (15%)
who strongly disagree that means that they do not have any conflict with their buyers.
The mean average implies that the different chain actors were undecided that they can
produce the desired volume when buyers needed it and the buyer and seller have little
conflict on their business transaction, moreover, they moderately agree that they exert
effort to produce the desired volume when buyers demand it and the flexibility of the
buyers to buy cabbage regardless of quality and quantity. The respondents of the different
chain actors gives much importance on the production/procurement of the desired volume
when buyers demand it, followed by the conflict between the buyer and seller on their
business transaction then on the exertion of effort to produce the desired volume and
quality when buyers demand it and lesser importance on the flexibility of the buyer to
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

31
buy cabbage regardless of volume and quality. Thus, the test statistics results implied that
the chain actors are highly significantly difference as to the criteria of producing the
desired volume when buyers needed it, it implies that the seller always depend on the
availability of supply, and also highly significantly difference on the conflict between the
buyer and seller in their business transaction that means that the different chain actors
always wants that they have the power or control on their business transaction. The
respondents were no significantly difference on the exertion of effort to produce the
desired volume when buyers demand it which means that all of them exert effort and no
significant difference on the flexibility of the buyers to buy cabbage regardless of quality
and quantity.








Efficiency performance
Measures how well the resources are utilized which include production costs,
profit, return on investment and inventory.

Table 6 indicates that the farmers (41%), trucker-wholesaler (50%) and financier-
assembler-wholesaler (29%) strongly agree that they were happy that they can produced
the desired volume out their limited resources, however, for the financier-assembler-
wholesalers(29%) were undecided and moderately agree; for the assembler-wholesaler
(47%), wholesaler (40%), wholesaler-retailer (47%) and retailer (44%) moderately agree.
As to the adequacy of income received, greater percentage of the respondents from all the
chain actors, farmers (39%), assembler-wholesalers (42%), financier-assembler-
wholesalers (59%), trucker-wholesalers (42%), wholesalers (50%), wholesaler-retailers
(47%), and retailers (45%) moderately agree. For the exertion of effort to reduce the cost

Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

32
Table 6a. Distribution of respondents according to efficiency
1
2
3
4
5

STATEMENT

N
%
N
%
N
%
N
%
N
% AVE
Farmer
1. I am happy to produce the desired











volume out of my limited resources.
1
2
2
4
10 22 14 30 19 41
4
2. The income I received is adequately
rewarding.
1
2
3
7
16 35 18 39
8
17
4
3. I exert effort to reduce the cost of
production.
0
0
2
4
11 24 17 37 16 35
4
4. I am satisfied with the rate of return to
my investment.
0
0
6
13 19 41 13 28
8
17
4
Assembler-Wholesaler
1. I am happy to produce the desired











volume out of my limited resources.
0
0
0
0
7
37
9
47
3
16
4
2. The income I received is adequately
rewarding.
0
0
0
0
6
32
8
42
5
26
4
3. I exert effort to reduce the cost of
production.
0
0
0
0
4
21
9
47
6
32
4
4. I am satisfied with the rate of return to
my investment.
0
0
1
5
2
11 12 63
4
21
4
Financier-Assembler-Wholesaler
1. I am happy to produce the desired











volume out of my limited resources.
2
12
0
0
5
29
5
29
5
29
4
2. The income I received is adequately
rewarding.
0
0
0
0
2
12 10 59
5
29
4
3. I exert effort to reduce the cost of
production.
0
0
0
0
4
24
5
29
8
47
4
4. I am satisfied with the rate of return to
my investment.
0
0
0
0
4
24
7
41
6
35
4
Trucker-Wholesaler
1. I am happy to produce the desired











volume out of my limited resources.
0
0
1
8
1
8
4
33
6
50
4
2. The income I received is adequately
rewarding.
0
0
0
0
3
25
6
50
3
25
4
3. I exert effort to reduce the cost of
production.
0
0
0
0
2
17
5
42
5
42
4
4. I am satisfied with the rate of return to
my investment.
0
0
0
0
2
17
7
58
3
25
4
Numerical value and descriptive equivalent:

1-Strongly disagree 4-moderately agree

2-disagree 5-strongly agree
3-undecided





Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

33
Table 6a. Continued…


1
2
3
4
5

STATEMENT
N
%
N
%
N
%
N
%
N
%
AVE.
Wholesaler
1. I am happy to produce the desired











volume out of my limited resources.
0
0
1
10
3
30
4
40
2
20
4
2. The income I received is adequately
rewarding.
0
0
3
30
1
10
5
50
1
10
3
3. I exert effort to reduce the cost of
production.
1
10
2
20
2
20
1
10
4
40
4
4. I am satisfied with the rate of return to
my investment.
0
0
1
10
1
10
6
60
2
20
4
Retailer
1. I am happy to produce the desired











volume out of my limited resources.
2
4
3
5
12 22 24 44 14 25
4
2. The income I received is adequately
rewarding.
1
2
1
2
12 22 25 45 16 29
4
3. I exert effort to reduce the cost of
production.
1
2
3
5
9
16 18 33 24 44
4
4. I am satisfied with the rate of return to
my investment.
1
2
0
0
12 22 27 49 15 27
4



Table 6b. Descriptive analysis and test statistics

STATEMENT
MEAN
DF
ASYMP.
CHI-SQUARE
SIG.
1. I am happy to produce the desired volume



out of my limited resources.
3.95
5.656
5.656
.130
2. The income I received is adequately



rewarding.
3.91
6.073
6.073
.108
3. I exert effort to reduce the cost of



production.
4.11
1.180
1.180
.758
4. I am satisfied with the rate of return to



my investment.
3.78
11.427
11.427
.010*
Legend: **- significant

of production larger number from the farmers (37%), assembler-wholesalers (47%), and
trucker-wholesalers (42%) moderately agree and for the financier-assembler-wholesalers
(47%), trucker-wholesalers (42%), wholesalers (40%), wholesaler-retailers (50%), and
retailers (44%) strongly agree. As to the satisfaction with the rate of return to investment,
retailers (41%) were undecided, majority of the assembler-wholesalers (63%), trucker-
wholesalers (58%), wholesalers (60%), and retailers (49%) moderately agree. The mean
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

34
average implied that only on the exertion of effort to reduced the cost of production
where the respondents were moderately agree, the chain actors were undecided as to the
happiness to produce the desired volume out of their limited resources, adequacy of
income received, and satisfaction with the rate of return to investment. The chain actors
were looking more on the satisfaction with the rate of return to investment followed by
the adequacy of the incomes receive, happiness to produce the desired volume out of
limited resources and give less importance on the exertion of effort to reduced the cost of
production. Thus, the test statistics implied that the chain actors were highly significantly
differ on the satisfaction with the rate of return to investment that implies that it may not
be the other criteria to measure the efficiency of the performance of the chain actors. The
respondents do not have significant difference on the happiness to produce the desired
volume out of limited resources, adequacy of the incomes receive and exertion of effort
to reduced the cost of production.

Responsiveness performance

Aims at providing the requested products with a short lead time, when buyers
and suppliers interact on issues related to material flows and quality, there were
significant effects in terms of speed and delivery punctuality.

Table 7 implies that farmers (41%) moderately disagree that they can supply the
market with desired quality/quantity when needed, majority of the assembler-wholesaler
(53%), trucker-wholesaler (58%) moderately agree, higher percentage on the wholesaler
(50%), wholesaler-retailer (31%), and retailers (29%) were undecided, however, there
were retailers (13%) strongly disagree which implies that they always depend on the
availability of supply from their supplier. As to the scheduling of deliveries to meet the
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

35
Table 7a. Distribution of respondents according to responsiveness
1
2
3
4
5


STATEMENT
N %
N
%
N
%
N
%
N
%
AVE.
Farmer
1. I can supply the market with desired











quality/quantity when needed.
2
4
19 41 15
33
7
15
3
7
3
2. I always schedule my deliveries to meet
the time in the market.
4
9
10 22 16
35
9
20
7
15
3
3. I always find time to deliver cabbages
when customers/market needs it.
5 11 12 26 14
30
9
20
6
13
3
4. I always act on the demand/complaints of
buyers related to quality/quantity.
3
7
7
15 17
37 12 26
7
15
3
Assembler-Wholesaler
1. I can supply the market with desired











quality/quantity when needed.
1
5
0
0
2
11 10 53
6
32
4
2. I always schedule my deliveries to meet
the time in the market.
0
0
2
11
6
32
3
16
8
42
4
3. I always find time to deliver cabbages
when customers/market needs it.
0
0
2
11
3
16
6
32
8
42
4
4. I always act on the demand/complaints of
buyers related to quality/quantity.
0
0
1
5
5
26
8
42
5
26
4
Financier-Assembler-Wholesaler
1. I can supply the market with desired











quality/quantity when needed.
0
0
0
0
5
29
6
35
6
35
4
2. I always schedule my deliveries to meet
the time in the market.
1
6
0
0
6
35
4
24
6
35
4
3. I always find time to deliver cabbages
when customers/market needs it.
1
6
0
0
3
18
8
47
5
29
4
4. I always act on the demand/complaints of
buyers related to quality/quantity.
0
0
0
0
6
35
7
41
4
24
4
Trucker-Wholesaler
1. I can supply the market with desired











quality/quantity when needed.
0
0
0
0
2
17
7
58
3
25
4
2. I always schedule my deliveries to meet
the time in the market.
0
0
1
8
3
25
1
8
7
58
4
3. I always find time to deliver cabbages
when customers/market needs it.
1
8
0
0
2
17
5
42
4
33
4
4. I always act on the demand/complaints of
buyers related to quality/quantity.
0
0
0
0
2
17
5
42
5
42
4
Numerical value and descriptive equivalent:

1-Strongly disagree 4-moderately agree

2-disagree 5-strongly agree
3-undecided








Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

36
Table 7a. Continued…

1
2
3
4
5


STATEMENT
N
%
N
%
N
%
N
%
N
%
AVE.
Wholesaler
1. I can supply the market with desired











quality/quantity when needed.
0
0
3
30
5
50
1
10
1
10
3
2. I always schedule my deliveries to meet
the time in the market.
1
10
3
30
1
10
1
10
4
40
3
3. I always find time to deliver cabbages
when customers/market needs it.
2
20
1
10
2
20
2
20
3
30
3
4. I always act on the demand/complaints of
buyers related to quality/quantity.
0
0
0
0
3
30
4
40
3
30
4
Retailer
1. I can supply the market with desired











quality/quantity when needed.
7
13
11 20
16
29 14 25
7
13
3
2. I always schedule my deliveries to meet
the time in the market.
14 25
8
15
13
24 10 18 10 18
3
3. I always find time to deliver cabbages
when customers/market needs it.
10 18
10 18
14
25 11 20 10 18
3
4. I always act on the demand/complaints
of buyers related to quality/quantity.
1
2
9
16
20
36 16 29
9
16
3

Table 7b. Descriptive analysis and test statistics

STATEMENTS
Mean
Chi-square
df
Asymp. sig.
1. I can supply the market with desired
quality/quantity when needed.
3.420
0.000
3
0.000**
2. I always schedule my deliveries to meet the
time in the market.
3.320
0.002
3
0.002**
3. I always find time to deliver cabbages when
customers/market needs it.
3.340
0.000
3
0.000**
4. I always act on the demand/complaints of
buyers related to quality/quantity.
3.660
0.000
3
0.000**
Legend: **- highly significant


time in the market, farmers (35%) and financier-assembler-wholesalers were undecided,
assembler-wholesaler (42%), financier-assembler-wholesalers (35%), trucker-wholesalers
(58%), and wholesalers (40%) strongly agree, in the case of the retailers (29%) strongly
disagree that implies that they do not deliver their products to their buyer, instead, it was
the buyer who come and buy to them. For the finding time to deliver cabbage when
customers/ markets needs it, farmers (30%), and retailers (25%) were undecided, slight
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

37
higher on the financier-assembler-wholesalers (47%), trucker-wholesalers (42%), and
wholesaler-retailers (30%) moderately agree, moreover, assembler-wholesalers (42%)
and wholesalers (30%) strongly agree. However, farmers (11%), trucker-wholesalers
(8%), wholesalers (20%), wholesaler-retailers (14%), and retailers (18%) strongly
disagree which implies that some of this chain actors do not find time to deliver their
products, instead it was their buyer who come and buy to them. As to act on the
demand/complaints of buyers related to quality/quantity, almost near to half of the
respondents, assembler-wholesalers (42%), financier-assembler-wholesalers (41%),
trucker-wholesalers (42%), wholesalers (40%) and wholesaler-retailers (61%) moderately
agree, in the case of the farmers (37%) and retailers (36%) were undecided. The mean
average implies that the chain actors moderately agree that they always act on the
demand/complaints of buyers related to quality/quantity and they were undecided in
terms of supplying the market with desired quality and quantity when needed, scheduling
of deliveries to meet the time in the market and to always find time to deliver the cabbage
when customer/ market needs it. The respondents give much importance on supplying the
market with desired quality/quantity when needed, followed by the act on the
demand/complaints of buyers related to quality/quantity, finding time to deliver the
cabbages when customers/markets needs it and they give less importance on the
scheduling of deliveries to meet the time in the market. The chain actors were highly
significantly differ in all the sets of criteria in measuring responsiveness; supplying the
market with desired quality/quantity when needed that implies that the chain actors
employ different strategies such as contacting other people to find good quality; to
always schedule deliveries to meet the time in the market which implies that they should
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

38
buy and deliver earlier their product and to always negotiate but continuing
communicating the viajeros so that as the viajeros arrived they deliver earlier; to always
find time to deliver cabbages when customers needs it which means that the chain actors
should be responsible in complying to their commitment with their buyers; to always act
on the demand/ complaints of buyers related to quality/ quantity, it implies that the
physical quality and quantity may not be as expected by the buyer.

































Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

39
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS


Summary

The study was undertaken to assess the performance of the actors in the spot
market chains for cabbage. Specifically, the study aims to identify the performance of the
actors in the spot market chain for cabbage and to determine whether there are
differences among the chain actors in the cabbage spot market chains for cabbage.
The demographic profile shows that age, gender, marital status, religion and
educational background do not affect the interest in engaging in vegetable business as
long as they have the interest and resources to venture into it.
Among the chain actors, they give much importance on the product quality
satisfaction to the fulfillment of orders and deliveries, followed by the achievement of
production/procurement/delivery targets, the satisfaction of selling cabbage on credit
arrangement; they give less much importance on the satisfaction of buyers as to variety,
price, and quality/quantity in measuring product quality satisfaction. As to the flexibility,
The respondents of the different chain actors gives much importance on the
production/procurement of the desired volume when buyers demand it, followed by the
conflict between the buyer and seller on their business transaction then on the exertion of
effort to produce the desired volume and quality when buyers demand it and lesser
importance on the flexibility of the buyer to buy cabbage regardless of volume and
quality. For the efficiency, the chain actors were looking more on the satisfaction with the
rate of return to investment followed by the adequacy of the incomes receive, happiness
to produce the desired volume out of limited resources and give less importance on the
exertion of effort to reduced the cost of production. And finally, is for the responsiveness,
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

40
the respondents give much importance on supplying the market with desired
quality/quantity when needed, followed by the act on the demand/complaints of buyers
related to quality/quantity, finding time to deliver the cabbages when customers/markets
needs it and they give less importance on the scheduling of deliveries to meet the time in
the market.

Conclusions

The following conclusions were drawn from the results of the study:
The actors in the spot market chains for cabbage were indicated highly significant
difference on the product quality satisfaction in terms of the achievement of production,
procurement and delivery targets, satisfaction on the fulfillment of orders and deliveries
of cabbage when needed and on the and satisfaction of selling cabbage on credit
arrangement.
In the flexibility, the actors were significantly difference in the production/
procurement of cabbage with the desired volume when buyers needed and on the conflict
of buyers and seller on their business transaction.
Moreover, on the efficiency, the chain actors were significantly difference in
terms of the satisfaction of the rate of return to their investment.
Finally, actors were significantly different in responsiveness performance in
terms of the following: supplying the market with desired quantity and quality when
needed; schedule of deliveries to meet the time in the market; finding time to deliver
cabbage when customers or market needs it, and; to act on the demand or complaints of
buyers related to the quality or quantity of the cabbage.

Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

41
Recommendations

To have a good performance among the chain actors, the actors should have give
priorities on the handling of their products to minimize damages or injuries with the use
of packaging materials and refrigerated trucks to minimize loses. They should also have a
strong communication with respect to volume and quality and strong coordination in
order to meet deliveries. The actors should always comply with their commitments or
promises in order to avoid misunderstanding and conflicts. Furthermore, they should
strategically managed long-term relationships to have a positive impact on financial
aspect. Finally, the buyers and suppliers should have interacted continuously on issues
related to material flows and quality to attain continuous operation and good relationship.


















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42
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Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

45

APPENDIX A
Communication Letter
November, 2010


Sir/Madam,


Warm greetings!


I am a graduating student of Benguet State University taking up Bachelor of
Science in Agribusiness major in Enterprise Management. As part of the course
requirement, I am presently conducting an undergraduate research study entitled “
PERFORMANCE OF ACTORS IN THE SPOT MARKET CHAINS FOR CABBAGE”.


In connection with this, may I ask you to fill up or answer the questionnaire made
for this purpose? Rest assured that all the information you will provide will be treated
with outmost confidentiality. Your favorable approval is highly appreciated.


Thank you for your kindness and cooperation. May God bless you!














Sincerely yours,
JAMES C. ESTONG, Jr.
Researcher


Noted by:
LEOPOLDO N. TAGARINO
Adviser






Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

46
APPENDIX B

Interview Schedule

This research aims to investigate the cabbage supply networks. All information
solicited would be treated with confidentiality. Please answer the questions honestly by
putting (/) mark in the appropriate space provided for.
Thank you very much!
Respondent’s Name: (Optional) ______________________ No. ______
Respondent’s Group:
1. Production Group: [ ] Farmers




2. Assembly (Collection) Group: [ ] Assembler-Wholesaler
[ ] Financier-Assembler-Wholesaler
[ ] Disposer
3. Distribution Group: [ ] Trucker-Wholesaler
[ ] Wholesaler



[ ] Wholesaler-Retailer
4. Retailing Group: [ ] Retailer
A.SOCIO-ECONOMIC PROFILE
1. Age: _____
2. Gender: [ ] Male
[ ] Female
3. Marital status: [ ] Single [ ] Married [ ] Separated [ ] Widowed
4. Religion: [ ] Catholic [ ] Protestant [ ] Others, specify______________
5. Educational background: [ ] Elementary [ ] High School [ ] College [ ] Vocational
6. Number of years engage in vegetable farming business: _____
7. Organizational affiliation: [ ] Farmers’ Association [ ] Cooperatives
[ ] Others, specify ________
B. Who were the buyers of the vegetables you produced/procured/? (Please identify)
[ ] Assembler-Wholesalers; [ ] Financier-Assembler-Wholesalers;
[ ] Trucker-Wholesalers; [ ] Wholesalers; [ ] Wholesaler-Retailers; [ ] Retailers
C. Where do you sell the vegetables produced/procured?
[ ] La Trinidad Vegetables Trading Post; [ ] Baguio Hangar Market
[ ] Private Trading Center in La Trinidad [ ] Metro Manila (Specify)_____
[ ] Other Market: Please specify _____________________
D. PERFORMANCE (Operations): Assess the performance of the supply network
operation using the following metrics.
D.1 Product Quality - consists of product safety and health; the sensory properties and
shell life and; product reliability and convenience.
Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

47
a. The quality of cabbage I produce/procure/ 1 2 3 4 5
sold meets my expectation. Strongly Disagree
Strongly Agree
b. The quality of cabbage delivered meets
the buyer’s requirements. Strongly Disagree
Strongly Agree
c. I am satisfied with the volume I produce/
procure or sold to the buyer. Strongly Disagree
Strongly Agree
d. I always achieve my production/procurement/
delivery targets. Strongly Disagree
Strongly Agree
e. I am satisfied to fulfill the orders and deliveries
of cabbages when needed. Strongly Disagree
Strongly Agree
f. I am satisfied selling cabbages
to buyers on credit arrangement. Strongly Disagree
Strongly Agree
g. The quality of cabbages I supplied in
the market is reliable. Strongly Disagree
Strongly Agree
h. The buyers are always satisfied as to variety to
product, price, and quality/quantity. Strongly Disagree
Strongly Agree
D.2 Flexibility- indicates the degree to which supply chain can respond to changing
environment and extraordinary customer service requests.




a. I can produce the desired volume
when buyers needed it. Strongly Disagree
Strongly Agree
b. I exert effort to produce the desired volume
and quality when buyers demand it. Strongly Disagree
Strongly Agree
c. The buyer was flexible to buy cabbages regardless
of volume and quality. Strongly Disagree
Strongly Agree
d. Buyer has no complaints about our
business transactions. Strongly Disagree
Strongly Agree
D.3 Efficiency- measures how well the resources are utilized which include production
costs, profit, return on investment and inventory



a. I am happy to produce the desired volume
out of my limited resources. Strongly Disagree
Strongly Agree
b. The income I received was
adequately rewarding. Strongly Disagree
Strongly Agree
c. I exert effort to reduce the cost
of production. Strongly Disagree
Strongly Agree
d. I am satisfied with the rate of
return to my investment. Strongly Disagree
Strongly Agree



Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

48
D.4 Responsiveness- aims at providing the requested products with a short lead time
when buyers and suppliers interact on issues related to material flows and quality, there
were significant effects in terms of speed and delivery punctuality




a. I can supply the market with desired
quality/ quantity when needed.. Strongly Disagree
Strongly Agree
b. I always schedule my deliveries to
meet the time in the market. Strongly Disagree
Strongly Agree
c. I always find time to deliver vegetables
when customer/ market need it. Strongly Disagree
Strongly Agree
d. I always act on the demand/ complaints of
buyers related to quality/ quantity. Strongly Disagree
Strongly Agree

Performance Of Actors In The Spot Market Chains For Cabbage
/ Estong, James Jr., C. April 2011

Document Outline

  • Performance of actors in the Spot MarketChains for Cabbage
    • BIBLIOGRAPHY
    • ABSTRACT
    • INTRODUCTION
    • REVIEW OF LITERATURE
    • METHODOLOGY
    • RESULTS AND DISCUSSION
    • SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
    • LITERATURE CITED
    • APPENDICES