Supply Chain Analysis of African Catfish (Clarias gariepinus) in Calamba, Laguna

Date

5-2024

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Mar B. Cruz

Committee Member

Dia Noelle F. Velasco, Maria Noriza Q. Herrera, Melodee Marciana E. De Castro

Abstract

Catfish is one of the top five (5) industries in global aquaculture production during 2019 according to the Food and Agriculture Organization (FAO) and is one of the top 10 highest contributing industries in terms of aquaculture and inland municipal fisheries production based on the 2022 Annual Report published by Bureau of Food and Aquatic Resources last 2023. Region 4A ranks fourth (4th) in national aquaculture production, in which, Laguna is one of the top provinces engaging in catfish farming. Among the eight (8) municipalities identified by BFAR-Region 4A engaging in catfish farming within the province, 39 fish farms out of the 98 fish farms engaging in African catfish farming are from the City of Calamba followed by Santa Rosa City with 29 fish farms, and Santa Cruz with nine (9) African catfish farms. According to the Municipal Agricultural Services Office of Calamba City, five (5) percent of the fisherfolks in Calamba, Laguna were identified as catfish pond operators which contributes 50.06 metric tonnes of annual production to the total African catfish production in the province.

The primary objective of this study was to conduct an in-depth analysis of the African catfish supply chain within Calamba, Laguna. The research aimed to comprehensively characterize the various key stakeholders involved in the chain, and identify their distinctive attributes, activities, and interrelationships. Furthermore, it sought to provide a detailed mapping of the supply chain network, showing the dynamics of actor relationships, flow patterns, and geographical distribution. Additionally, the study assessed the profitability of each supply chain participant through a thorough cost and return analysis.

This study was conducted in four barangays in Calamba, Laguna which is Brgy. Looc, Lingga, Uwisan, and Sampiruhan. The respondents of this study are the 25 African catfish fisherfolks, four (4) fisherfolk-retailers, four (4) wholesalers, two (2) wholesaler- retailers, and four (4) retailers who were interconnected with each other within the supply chain.

With the key findings, there were eight (8) key players identified, and eight sub- chains were mapped within four barangays. The key players involved in the African catfish supply chain are as follows: input suppliers, fisherfolks, fisherfolk-retailers, distributors, outside or external traders, wholesalers, wholesaler-retailers, and retailers. The study found that same-level players in the industry have similar operational practices, suggesting that there is a strong collaboration existing within the supply chain network. Most fisherfolks fund themselves, with some getting aid from the government or other sources. The supply chain in Calamba has eight (8) sub-chains across four areas, all involved in catfish farming. They start with the input suppliers but each sub-chains involve different key players. Traders from various places like Tanauan, Cavite, Malabon, Quezon City, and Tagaytay are part of the chain, showing its wide reach. Payment methods include cash and online platforms like GCash, with cash being more common. Prices vary among sub-chains due to market players and local trends. Moreover, fingerlings and grown catfish are sold at different rates, and distribution varies by area in which Brgy. Uwisan has the highest volume with an average of 1,550 kg total African catfish harvested in a cycle.

Among the different sub-chains mapped out in this study, sub-chain 6 is the most efficient due to its simple operations and direct sourcing of the retailers directly buying the catfish from the fisherfolks. Sub-chain 2, on the other hand, was identified as the least efficient since it has more players, leading to higher losses and costs because of external traders. Similarly, regarding responsiveness, sub-chain 4 stands out as the most responsive with its 4.79% back-order rate. Conversely, sub-chain 2 emerges as the least responsive, presenting a high back-order rate of 38.40%. This is attributed to the fact that sub-chain 2 not only supplies catfish to external traders but also directly markets African catfish to end consumers.

Furthermore, a comprehensive analysis of costs and returns highlighted fisherfolk-retailers as the most profitable players within the supply chain, showing the most favorable cost-return ratios of 1.14 to 2.10. In contrast, traders, particularly African catfish wholesalers, exhibited lower profitability having -0.10 to 0.05 pesos revenue per every peso spent, emphasizing the significant influence of input prices, operational expenses, and the market selling prices on the player's end.

Meanwhile, several factors were identified as influencing chain performance, including relationship marketing, information dissemination, transportation logistics, inventory management, pricing strategies, and production practices. While the industry demonstrated a concerted effort towards optimizing operational efficiency, deficiencies in responsiveness were noted.

The most significant concern identified in this study is the supply-demand gap existing within the chain. It was mentioned that a particular trader ideally aims to sell at least 20 kg of African catfish in a day to have ample amount of profit, however, it was shown that both fisherfolk and fisherfolk retailers harvested catfish in a cycle ranging from 100 to 3,000 kg depending on the size of their fish culture used. In essence, if one cycle is composed of four (4) months, a maximum of 24.5 kg of African catfish can be distributed to the traders daily, excluding the losses due to possible cases of shrinkage, physical damage, and quality degradation on the harvested catfish. If the catfish producer lowers its production level to 2,400 kg in a cycle, only 19.7 kg of the African catfish can be distributed to the traders, not meeting the target of at least 20 kg in a day. And this problem was deeply rooted in the lack of enough resources and inputs on the producer’s end.

Other challenges within the chain encompassed environmental concerns, limited technical support for key players, resource constraints, and inadequate facilities. Distribution players raised additional issues regarding transportation constraints, demand volatility, and marketing strategy deficiencies. The chain's vulnerability to disruptions underscored the need for enhanced product differentiation and strategic partnerships. Despite these challenges, the study identified opportunities for industry expansion, particularly through leveraging existing relationship networks and further assistance for input sourcing and other resources. Moreover, the study delves into the opportunity for the exploration of value chain partnerships with processing actors and external institutions to enhance industry viability.

With all the findings and results per the objective of this study, several recommendations were formulated in helping to improve the productivity of the industry. For fisherfolk and fisherfolk-retailers, it is more of expanding their reach in terms of their pool of customers, leveraging technology as a way to optimize their marketing, and engaging with a more organized and effective inventory and logistics management within the chain. For wholesalers, wholesaler-retailers, and retailers, it is more on utilizing different marketing platforms and venturing into marketing strategies to further boost their productivity in terms of awareness in the market and sales. Moreover, as it was mentioned that there is no existing processing sector within the chain, and in the African catfish industry within Calamba, Laguna, it was also recommended to explore having a value chain partnership with processing actors or with external institutions or agencies such as the CFARMC, MAO, and BFAR as well the cooperatives within the locality. For the government institutions involved, having training and empowerment programs could aid in product knowledge, customer service skills, and marketing strategies of the players of the chain. Moreover, they also play a big role in promoting the whole African catfish industry in the locality by raising awareness within the community on these kinds of fish species.

Overall, the African catfish supply chain in Calamba, Laguna, although faces a stagnant progress of development over the years has still a lot of development entry points that the industry could take advantage of. It is just important to take note that each actor plays a role as well in the development of the whole supply chain.

Language

English

LC Subject

Supply chain management, Catfish

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2024 M17 R63

Notes

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Document Type

Thesis

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