Analysis of the Effect of Covid-19 Pandemic in the Marketing System of Tilapia (Orechromis niloticus L) Trading in Batong Malake in Los Baños. Laguna

Date

6-2022

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Cris Edwin B. Bonalos

Committee Member

Renen Szilardo V. De Guzman, Maria Noriza Q. Herrera, Jewel Joanna S, Cabardo, Mar Cruz

Abstract

In general, the study analyzed the marketing system of tilapia (Oreochromis niloticus L) in Los Baños, Laguna, particularly in Batong Malake Public Market amidst the pandemic and its potential impact on marketing efficiency. Specifically, it is intended to: (1) identify the participants involved in the marketing system of tiliapia trading and the key players' responses during the pandemic; (2) present the marketing channels, marketing practices and marketing costs associated with tilapia trading in Los Baños, Laguna; (3) discuss the product, information, and payments flow of tilapia traded in Batong Malaki Public market; (4) examine the marketing system efficiency of tilapia trading; (5) assess the effect of the COVID-19 on the marketing efficiency of tilapia trading; and (6) recommend strategies how the players/chain actors can adapt to the possible effect of the pandemic.

The comparative research design was also used to establish a cause-and-effect relationship between the COVID-19 pandemic and the metrics such as marketing margin, percent product loss, and profit margin, consumer peso breakdown, and return on investment that are involved in tilapia trading marketing efficiency. A complete enumeration of retailers found in Batong Malake Public Market selling the Talisay tilapia variety was employed as the starting point of the tracing. From the identified marketing participants in the said public markets, other traders, as well as the marketing channel, were also traced backwards until the fish cage production level in Laurel, Batangas was reached.

A total of fifteen fish cage operators and thirty trader-respondent were identified and interviewed using the research questionnaires. The intermediaries involved were comprise of 15 retailers in Batong Malake, 4 buyer-harvester, who all come from Barangay Berinayan in Laurel, Batangas, 5 assemblers-wholesalers, or locally known as viajeros. and 6 wholesaler-retailers from the different areas in Laguna.

The majority of the key players in the tilapia industry have been engaged in the operation for an average of 19 years. They are trained at a very young age of 15-17, right after they graduated from high school. Since the enterprise is generational, the majority of the players already have an established relationship with the different actors involved the enterprise. With that, it helps the players to lessen the impact of the pandemic on the tilapia industry.

The key players in the industry used the suki system as an enforcement tool for market linkage. In the case of the tilapia trade, the suki relationship assures the fish cage operators that they will have an outlet for their harvest and their buyers an almost certain source of steady fish supply. Thus, at the occurrence of the pandemic, the key players have an assured market for their tilapia harvest despite the policies and restrictions imposed by the government due to the close and personal relationship established by the marketing players.

On the other hand, five channels were identified in this study regarding the marketing system of tilapia trading in Los Baños. The first channel is considered the be the strongest given that it is the most widely used chain (FCO - BH - AW - WR- R- C) despite having the greatest number of intermediaries involved. This is because the presence of the intermediaries shows how established the relationship of each key players is with each other. The exclusion of the traders also weakened the overall industry because it meant that the players did not have established relationships at all.

A kilogram of tilapia was sold at a price of Php72.50 to harvesters. However, since some financiers opted to market their produce, higher prices are charged to the viajeros (Php75.00) and wholesalers (Php76.50). Despite the slight decline in the price and demand for tilapia during the peak of the pandemic in 2020, the tilapia industry still has one of the most stable markets in the Philippines as supported by the rampant number of producers in the country. This is probably one of the reasons why the tilapia industry was able to recover immediately from the negative impact of the pandemic.

Based on the results, market and price stability, consumer preference, high demand, profitability, and well-coordinated marketing participants of the tilapia industry are the major influences on how there are little or minimal changes that occur in the industry despite the occurrence of the COVID-19 pandemic. This implies that the tilapia industry shows robustness in adapting to and mitigating negative economic shocks, exemplified by how it was able to recover from the negative effect of the COVID-19 pandemic.

Several problems were identified in the study. For the fish cage operators and owners, the problems they have attributed to the pandemic include: (a) price increases in the inputs; (b) inadequate government support; (c) price fluctuations; (d) logistics and transportation issues; and (e) a decline in demand. The following issues have been encountered by tilapia traders: (a) logistics and transportation issues as a result of the travel ban and lockdown; (b) a lack of response from the government; (c) price fluctuations; (d) a decline in demand from the retail market as result of mobility restrictions and low volume purchases; and (e) increased competition with small vendors.

In response to the issues and problems encountered by the key players of the tilapia marketing system, recommendations and policy suggestions are given to make the tilapia industry more robust during the pandemic. This includes value addition to tilapia, exposure to producing tilapia fingerlings, long-term investment in the fishery sector, consistent monitoring of the tilapia industry, livelihood programs for fish cage operators and product diversification for traders, improvement in the logistics and transportation, strengthening the financial structure, and alternative market arrangements.

Language

English

LC Subject

Tilapia, Marketing, COVID-19 Pandemic, 2020-2023

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2022 M17 L67

Notes

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Document Type

Thesis

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