Transfer Cost Analysis of Nile Tilapia from Talisay, Batangas to Selected Market Destinations

Date

6-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Cenon D. Elca

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

Abstract

The study analyzed the transfer cost of tilapia from Talisay, Batangas to selected market destinations of Taguig, Quezon, and Bicol region. Descriptive, quantitative analysis, and Fisher’s Exact Test were used to analyze the primary data collected among 17 tilapia farmers and 24 tilapia-hauler respondents. It was observed that tilapia farmers and haulers mostly utilized dry van trucks for transport due to their ability to accommodate large volumes of tilapia. The transfer cost incurred by the 11 tilapia farmers and 24 tilapia haulers who delivered tilapia to various market destinations were comprised of road transport costs, labor and handling fees, illegal fees, and depreciation costs. On the other hand, the other six farmer-respondents who transferred tilapia to haulers only incurred labor and handling fees. It was found out that in Marketing Channel 2 (6 tilapia farmers who sold harvest to tilapia haulers, and the 24 tilapia haulers who sold the tilapia to selected market destinations), the market participants who took the route of Sampaloc to Lucena, yielded the cheapest transfer cost per container, while the market participants in Marketing Channel 2 who had the Leynes to Naga route paid the highest transfer cost per container. The Sampaloc to Buhi route, which had a total of 388-kilometer spatial distance in between, yielded the lowest transfer cost per container per kilometer. In contrast, the Caloocan to Taguig route, which only had a spatial difference of 78 kilometers from source to destination, obtained the highest transfer cost per container per kilometer. It can be inferred from this observation that as the distance increases, unit transfer cost decreases. This can be explained by the concept of economies of scale wherein significant costs incurred are spread over long distances. The 11 tilapia farmers who directly sold tilapia harvest to market destinations, and the six tilapia farmers who sold tilapia harvests to haulers obtained an average return of investment of 26.92 and 32.76 percent, respectively. These estimates of return on investment indicate profitable business ventures when compared to the 10 percent opportunity cost of investment capital. The study also revealed that tilapia farmers and haulers encountered problems related to dilapidated roads, traffic that lasted for one to two hours, flat tires, and occurrence of illegal fees or kotong. Based on the findings, the following are recommended: (1) farmers and haulers are highly encouraged to invest in vehicles for transport to save costs from renting trucks; (2) provide subsidies and access to credit to traders for them to adapt to higher fuel prices and implement price stabilization mechanisms to limit the volatility of fuel prices; (3) improve road conditions to facilitate the easy transport of tilapia; and (4) have a stricter implementation of the Anti-Kotong Act of 2010 to minimize or even avoid the collection of kotong.

Language

English

LC Subject

Fish trade

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 M355

Notes

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Document Type

Thesis

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