Analysis of Marketing System of Tilapia in Laurel, Batangas, 2023

Date

6-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Antonio Jesus A. Quilloy

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

Abstract

This study analyzed the marketing system of tilapia in Laurel, Batangas. It specifically aimed to (1) determine the production practices and costs of tilapia producers; (2) determine the marketing practices and costs of tilapia traders; (3) analyze the product and geographical flow in the marketing of tilapia; (4) evaluate the marketing efficiency of tilapia in Laurel, Batangas; and (5) identify problems and constraints encountered by tilapia producers and traders.

Convenience sampling and forward and backward tracing were used to select the study’s 34 respondents. The sample was composed of 18 tilapia producers and 16 tilapia traders. Descriptive analysis and product and geographical flow analyses were used to describe and present the source and destination of tilapia per market participant and the product’s spatial movement. Marketing efficiency was evaluated using marketing margin analysis and product losses.

Three channels were identified, two for fresh tilapia marketing and one for live tilapia marketing. The longest channel was composed of three types of tilapia traders. Labor costs shared the highest (52.55% equal to PhP 24.33/kg) in the marketing costs of tilapia, especially in the harvesting stage where many laborers are needed to harvest the fish. Results showed that the harvester-wholesaler/retailers acquired the largest volume. Meanwhile, tilapia was transported to three market centers namely Metro Manila, Quezon, and Cavite.

The study found out that the nature of price spread of tilapia is highly influenced by the structure of the marketing channel and the amount of marketing margin. The price spread widens when traders have high marketing costs, as well as when traders charge high profits. In addition, as the channel of tilapia gets longer, added costs were considered in the price, making the price of tilapia higher, and thus, making the price spread widen. The marketing margin analysis showed that most of the output-input ratios of traders, specifically traders of fresh tilapia, were relatively higher than the opportunity cost of capital (1.25%). Therefore, most of the traders earn more under normal circumstances. This could be attributed to the high profits charged to the price paid in tilapia, making consumers pay for a high retail price. Duplication of service was also seen in the marketing of tilapia, resulting in additional marketing costs. There were no product losses in the marketing of tilapia. In general, the marketing system of tilapia in Laurel, Batangas was considered inefficient due to the huge and unreasonable profit taken by most of the traders, especially in fresh tilapia marketing.

Common problems encountered by tilapia producers in producing the commodity were fish kills, natural disasters, fish cage plates, and low farmgate prices. Meanwhile, traffic, poor road conditions, and slow sales were the usual problems in tilapia marketing.

The study recommends that harvesting of tilapia be mechanized since this marketing practice accounts for the largest share in the labor costs of the marketing chain.

Language

English

LC Subject

Markets, Fish trade

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 C37

Notes

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Document Type

Thesis

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