Analysis of the Efficiency of Fresh Sweet Potato Marketing in Moncada, Tarlac, 2018

Date

1-2020

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Bates M. Bathan

Committee Member

Bates M. Bathan, Antonio Jesus A. Quilloy, Agham C. Cuevas

Abstract

Sweet potato is one of the major crops grown in Moncada, Tarlac. However, production and marketing problems such as pest and diseases, and perishability affect the efficiency of the marketing system. The study was conducted to analyze the efficiency of sweet potato marketing in Moncada. Specifically, it aimed to identify the marketing channels for sweet potato; to discuss the movement of sweet potato from the point of production to the point of consumption; to describe the practices involved in marketing sweet potato; and to assess the costs, returns, pricing efficiency, and operational efficiency of sweet potato among marketing participants and the entire chain. Simple random sampling was used for 41 farmers while tracing method was used to identify traders such as 5 assembler-wholesalers, 5 wholesaler-retailers, and 8 retailers. Moreover, the study used descriptive analysis, analysis of product and geographical flows, cost and return analysis, benchmarking, marketing margin analysis, breakdown of consumer's peso, pricing efficiency, and operational efficiency.

The participants have their own practices throughout the marketing system. Sweet potato farmers are in-charge of sorting and grading, and packaging their produce. As for the traders, the assembler-wholesalers mainly do transporting while the wholesaler­retailers and retailers do packaging. The longest marketing channel consists of five participants which are farmers, assembler-wholesalers, wholesaler-retailers, retailers, and consumers. The sweet potatoes from Moncada are mainly brought to various market outlets such as Moncada, Urdaneta, Balintawak, and Divisoria.

The results of the study showed that all of the marketing participants were profitable, however, they were price inefficient. In Moncada, farmers were not price efficient compared to retailers. In Urdaneta, Balintawak, and Divisorira, only the assembler-wholesalers were price efficient. All marketing channels were considered price inefficient because at least one player has more cost than profit. On the other hand, the operations were found to be efficient because the loading factor efficiency was high and the computed percent product losses was lower than the industry standard losses of sweet potato. The breakdown of consumer peso showed that farmers received the highest percent share for most of the identified product flows. Thus, the marketing of fresh sweet potato in Moncada, is not price efficient but operationally efficient.

The problems encountered by the farmers were low prices received, high price of inputs, limited capital, natural calamities, and disease and pest infestation. Low price received was the main problem of the farmers who are considered as price takers. On the other hand, the marketing problems faced by traders were perishability, low prices received, and seasonality. The study recommended the following solutions to address these problems: farmers should standardize their way of sorting and grading; wholesaler-retailers should buy directly from farmers; and the perspective of consumers regarding their preferred quality and variety should be included. These recommendations will help the marketing participants of sweet potato to gain more profit.

Language

English

LC Subject

Agriculture

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2020 A14 C37

Document Type

Thesis

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