Price Analysis of Onion in the Philippines, 2000-2022

Date

1-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Cesar B. Quicoy

Committee Member

Julieta A. Delos Reyes, Ma. Angeles O. Catelo

Abstract

This paper analyzed the prices of red and yellow onion in the Philippines from 2000-2022. The specific objectives were to (1) analyze the trend in volume of production, area harvested, and yield of onion at the national and regional levels from 2000 to 2022; (2) analyze the trend (secular), seasonal, cyclical, and irregular variations in the retail prices of red and yellow onion at the national and regional levels; (3) determine the factors influencing the fluctuations of red and yellow onion prices, and; (4) provide policy implications and recommendations for the improvement of the onion industry in the Philippines.

Results of the study showed that red and yellow onion production, area harvested, and yield showed an increasing trend over time. The onion production in the Philippines has been increasing, its prices also increasing. Red onions have higher prices compared to yellow onions. For 22 years the annual real and nominal farmgate, wholesale, and retail prices of red and yellow onion were increasing. For red onion, monthly seasonal indices were highest in January, and, for yellow onion it was in October, November, and December. Similarly, nominal and real average monthly secular trends were increasing. The result shows the non-existence of cyclical variation in the monthly prices of onions since the assumption here was that onions can be planted all year round. Seasonal variation greatly affects the price of red and yellow onions more than other variations. Since onion is one of the most used ingredients, festivals, occasions and holidays could make the prices change.

Factors affecting the retail price of red and yellow onion were evaluated using the multiple regression analysis using R software. The precipitation, temperature, real retail price of garlic, price of urea, and population were the factors that were used to analyze the retail prices of red and yellow onion in the Philippines from 2000-2022. Regression analysis results showed that the temperature was the only significant variable factor for red onion at 10 percent with a p-value of 0.0903. Based on the variable’s coefficient, holding all the factors constant. For the factors affecting the yellow onion, the only significant was the precipitation at 10 percent with a p-value of 0.009, holding all the factors constant.

The government should assist the farmers in finding other markets that can sell their onions by giving them enough information to address the surplus of onions. To safeguard both consumers and farmers, the government should implement cautious intervention and strong border controls for imports. Also, lay a fund and compensate for their losses to cover the expenses for the next planting season after a devastating natural calamity. Meanwhile, smugglers should also be monitored. To combat the smuggling and stockpiling of agricultural products that impact farmers, traders, and consumers, a task force with the National Bureau of Investigation should be established. To properly handle this issue and safeguard local farmers, strict adherence to the legislation is required.

Language

English

LC Subject

Onion industry, Prices

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 B33

Notes

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Document Type

Thesis

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