Market Chain and Product Value Distribution of Pandan Handicrafts in Cavinti and Luisiana, Laguna, 2009

Date

4-2010

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Isabelita M. Pabuayon

Committee Member

Prudenciano U. Gordoncillo, Flordeliza Lantican

Abstract

The study investigated the pandan handicraft market chain and product value distribution in Cavinti and Luisiana, Laguna. A total of 91 respondents comprising the key players in the market chain were personally interviewed. Analysis focused on the product flows through the different market intermediaries and geographical location, price structure and value-addition, profitability, and distribution of the final product value among the different market participants.

The key market players were classified according to the roles they perform. Weavers are the producers of the pandan handicrafts in traditional and novelty forms. Traders include the local-assemblers, assembler-wholesalers, wholesaler-retailers and retailers. They link the weavers with the end-users. The end-users utilize the pandan products for packaging, farming activities and even souvenirs and gift items.

There were 53 weavers producing traditional and novelty products. Of these, 40 were producing traditional products which are in their primary and basic form. The remaining 13 weavers performed value-adding activities such as transportation, storage, dyeing/polishing, bleaching, innovative design, and other product improvements. Traders usually performed value-addition such as transportation, storage, product improvements, and selling to end-users.

There were nine product flows of traditional pandan handicrafts identified. The two dominant product flows involved market chains with five to six types of market participants including the end-user. For the novelty products, there were only three flows identified involving a maximum of four types of market participants. Generally, prices of handicrafts increased as they moved through the market chains regardless of the product type. The lowest price occurred at the weaver’s level; the highest at the retailer’s level.

Weavers of traditional pandan handicrafts incurred a net loss of PhP 139.00 per month. Those of novelty items realized a net return of PhP 6,840.00 per month. However, net returns were actually higher considering that weavers have limited opportunity cost. Among the traders, assembler-wholesalers obtained the highest net return at PhP 58,483.00 per month due to large volume handled.

On per unit basis, weavers generally obtained a relatively big share of the final product value; in most cases, from 40% to 55% for traditional products. For novelty items, weavers obtained much larger shares (62% to 100%) of the final product value shares since they performed value-addition like bleaching, storage, and product improvements including direct sale to end-users. However, the large shares did not necessarily translate to higher income.

Problems were related to the sourcing of raw material, lack of new technology and minimal product promotion. Others included inadequacy of government support, low prices received, lack of information about other potential buyers, low quality standard, seasonality of the products, and competition with other indigenous products. Recommendations are on production technology, financial assistance, market and price information, value-addition, and market and product development.

Language

English

LC Subject

Pandan Handicrafts, Value distribution

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2010 A14 D47

Notes

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Document Type

Thesis

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