Value Chain Analysis of Processed Fish Products in San Jose, Occidental Mindoro

Date

12-2023

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jeanette Angeline B. Madamba

Committee Member

Eliza C. Aquino, Jennica Amielle M. Mora, Ma. Teresa A. Acda, Melodee Marciana E. De Castro

Abstract

The study entitled "Value Chain Analysis of Processed Fish Products in San Jose, Occidental Mindoro" generally aims to analyze the value chain of processed fish products in San Jose, Occidental Mindoro. Specifically, it presents the demographic profiles of the key actors (fisherfolk, fisherfolk-processors, processors, and traders) of the value chain and maps out them, to determine the profit incurred by each actor and the gross value of identified fish throughout the value chain, identify the problems and opportunities within the system, and to recommend possible interventions for the identified problems.

This study discovered the most profitable value chain and the highest-profit processed fish products. This study also identified issues or problems in the value chain of processed fish products in San Jose, Occidental Mindoro. Resolving these issues can improve the industry and help current and prospective processors have better-quality products. This could be a basis for institutions and authorities in the sector to improve and resolve the identified problems. Consequently, this could attract investors or more customers, which could later add to the overall production value in the province's fishery sector. Lastly, this study could be used as a reference for other scholars studying this kind of industry or the region, as only a few studies were conducted in this area.

This study used exploratory and descriptive research designs. Primary and secondary data were used in data collection. Interviews were conducted to gather data on the key actors in the value chain (fisherfolk, fisherfolk-processors, processors, and traders), which includes their demographic and business profiles, costs incurred, value-adding activities, and problems encountered in production and marketing. Value-adding activities at each value chain level were determined and analyzed using Michael Porter’s generic value chain model. Moreover, net margin analysis and relationship dynamics were done to analyze the value chain.

It is found in this study that the actors of the value chain of processed fish products in San Jose, Occidental Mindoro, include fisherfolk, fisherfolk-processors, processors, and traders. Ninety (90) fisherfolk were interviewed in the 19 barangays of San Jose, all of which are coastal areas of the municipality. Fifteen (15) processors were also interviewed in this study, whereas seven (7) were included in the 90 interviewed fisherfolk. For traders, six (6) public market vendors were also interviewed. All of them operate at a micro-scale level.

In terms of fisherfolk, the respondents ranged from 21 to 72 years old, and they were all male. Some of them stated they did not incur any capital. For those who did, the lowest amount of initial capital was PhP 3,000, while the highest amount was PhP 1,000,000.

For the processors, the ages of the respondents ranged from 27 to 55 years old, with 53% female and 47% male. The lowest amount of initial capital amounted to PhP 750, while the highest amount was PhP 20,000.

Regarding traders, the respondents ranged from 30 to 56 years old, with all of them being female. The lowest amount of initial capital was PhP 20,000, while the highest amount was PhP 150,000.

In this study, four (4) value chains were discovered in marketing processed fish products in San Jose, Occidental Mindoro. The first value chain involves fisherfolk, processors, and traders. The second one eliminates the traders' role, making the processors sell directly to consumers. The third one eliminates the fisherfolk; instead, the fisherfolk -processors catch the fish by themselves and process them as well. The traders then distribute the finished products. In the last value chain, there is a direct transaction between the fisherfolk-processors and end consumers, removing the presence of all traders. It is found that the strongest chain is Value Chain 1, while the weakest chains are Value Chain 2 and Value Chain 4. But in terms of value-added, fish products in Value Chain 2 earned the highest average value added per kg while they earned the lowest in Value Chain 4.

The value-added analysis also found that the processors and fisherfolk-processors get the highest value-added in the four chains. Fisherfolk -processors received the highest average value-added per kg (PhP 246.51) during peak season, while the processors received the highest during the lean season (PhP 279.44). However, in the value-added analysis of smoked galunggong (short-fin scad) and dried and salted kanuping (emperor fish) in Value Chain 1, the fisherfolk and the traders receive the highest value-added. On the other hand, when it comes to the actor who received the lowest average value-added per kg, the traders received the lowest value added during peak season, while the fisherfolk received the lowest during the lean season.

In terms of the fish products, all processed fish products in San Jose, Occidental Mindoro are traditional. These fish products include fermented fish, dried and salted fish, and smoked fish. A total of 17 fish species were identified in these fish products. Dried and salted banak (flathead grey mullet) is the most profitable fish. However, it should be noted that this fish is sold by retail or directly to end consumers. Other top fish products include dried and salted danggit (spinefoot/rabbitfish), pusit (squid), and tambor (sin croaker).

The identified issues, gaps, and weaknesses of the processed fish products in San Jose, Occidental Mindoro, were categorized per chain and actor. Value Chain 1 includes the negative profit of pampanger and the lack of traders for fermented and smoked species. In terms of Value Chain 2 and Value Chain 4, the main issue is the fewer sales of the processors. For Value Chain 3, problems identified include a need for traders for smoked bangus (milkfish), and the marketing of dried and salted tambor (sin croaker) is dominated by single traders.

For fisherfolk, the main issues are low fish prices and the need for alternative sources of income. For processors, it involves producing irregularly or inconsistently, the use of traditional methods of processing, and a high percentage of production loss. For traders, the problems include poor public market infrastructure and slack periods. Other issues include delays in payments, power outages, and the need for sufficient capital and credit access.

Formulated recommendations for the identified issues include costing and pricing strategies seminar, exploring other packaging, B2B marketing inside and outside of the municipality, marketing and financial support, online marketing, establishing an association or cooperative, wide dissemination of notice of change in fish prices, alternative sources of income, product development, training and technical assistance to processors, infrastructure development, and enforcing incentives or interests for delayed payments.

Language

English

LC Subject

Fish trade--Philippines

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2023 M17 P33

Notes

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Document Type

Thesis

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