Supply Chain Analysis of Dried Salted Fish or Tuyo (Sardinella Fimbriata) in Orion, Bataan

Date

5-2024

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Maria Noriza Q. Herrera

Committee Member

Dia Noelle F. Velasco, Reginald B. Vargas, Melodee Marciana E. De Castro

Restrictions

Restricted: Not available to the general public. Access is available only after consultation with author/thesis adviser and only to those bound by the confidentiality agreement.

Abstract

In the Philippines, the average annual fish consumption per person was about kilograms, with 4 kg being dried fish (BFAR, 2015). Approximately 30% of the 431,2 tons of fish were processed into products like dried salted fish (Guevara & Camu, 1 BFAR, 2017). The total value of fisheries production in 2022 was Php 0.26 trillion, wi Central Luzon contributing 17% of the total, making it one of the leading producers in Luzon (PSA). Bataan was known for producing the highest volume of smoked and dried fish in the region (BFAR, 2018).

In Bataan, the town of Orion, located 12 kilometers from Balanga, the capital of Bataan, was the leading producer and famous for its processed fish products, includi "Tuyo" (dried Sardinella fimbriata) and "Tinapa" (smoked fish), which were also town’s One Town, One Product (OTOP), with tuyo being the most profitable among t two (De Leon, 2022).

The general objective of the study was to evaluate the supply chain performance of the Tuyo key players in Orion, Bataan. Specifically, the research aimed to describe the key players in the Tuyo supply chain, map the supply chains/ networks in tuyo, evaluate the production performance in terms of efficiency, supply chain strength customer responsiveness, determine the challenges at each supply chain level, and formulate strategies to address these challenges and recommend solutions.

The supply chain analysis of dried salted fish (tuyo) in Orion, Bataan involved crucial key players, including fishermen, processors, traders, wholesalers, and retailers. In this study, 100 respondents were interviewed from various roles within the supply chain, providing insights into the industry's dynamics. The transformation process began with fresh Sardinella fimbriata, which was then converted into tuyo, traversing through 13 different chains, which can be classified into three, with each key player adding value at distinct stages. This intricate network underscored the collaborative efforts required to bring tuyo from the fishing grounds to the market.

The 13 chains were classified as (1) chains starting with fresh Sardinella fimbriata, or those which start from fishermen without the presence of Fishermen/Processors Processors/Traders, (2) chains with Processors/Traders, and (3) chains with Fishermen/Processors. Among all the chains, chain 13 has the shortest and fastest information, product and financial flow since it only comprises Fishermen/Processor to Consumer interaction.

Apart from the dried salted Sardinella fimbriata, fishermen also marketed fresh forms of this fish. During the peak season, from June to October, they sold it at Php 45.00 per kilogram and at Php 65.00 per kilogram during the lean season, from November to January. Fishermen could accumulate 300 kilograms if fresh Sardinella fimbriata during the peak season, while only 15 kilograms during the lean season, with production costs of Php 1.67 per kilogram and Php 33.33 per kilogram, respectively, for the two seasons. The net margin during the lean season was very low due to the high cost of gasoline for their boats engines. Processed tuyo, on the other hand had a much higher value, set at Php 150.00 per kilogram during the peak season and Php 200.00 per kilogram during the lean season, with the net margins of Php 88.92 and Php 114.72, respectively, for the processors. Processors/Traders had the highest net margins, with Php 133.99 and Php 158.05, respectively. Additonally, Fishermen/Processors also produced dried salted fish and gained significantly higher returns compared to fishermen, with Php 127.32 per kilogram during the peak season and Php 149.72 per kilogram in the lean season. Their net margin was twice as much as the fishermen's, but it could not go further as they still relied on traders to buy their products, similar to the processors.

While the chains with Fishermen/Processors resulted in the fastest and shortest information flow, the chains starting with fresh Sardinella fimbriata recorded the most product traversing the key players since processors in these chains are the only producers of gourmet tuyo and bagoong. Processors/Traders were focused on producing a higher volume of processed tuyo to take advantage of their storage facilities. The said chains, specifically chains 1 and 2, also recorded the highest cost incurred and expense cost due to the presence of all the key players in these chains.

In terms of the production costs, gasoline garnered the largest percentage for the fishermen, while the cost for the main input or the fresh fish took the highest portion for production in the case of the processors. Transportation cost were the main problem of traders and wholesalers, while retailers incurred their highest cost in rent.

For the profitability analysis, Processors/Traders have the highest net return per kilogram with Php 158.05/kg during the lean season, followed by Fishermen/Processors with Php 149.72/kg, but for the overall profit, the Fishermen/Processors have the highest due to the volume of tuyo they can produce. Processors/Traders on the other hand, have more stable income due to their storage facilities which helped them significantly during the rainy season, avoiding tuyo spoilage.

The identified problems, issues and weaknesses of Orion's Tuyo supply chain include: lack of government support, bad weather conditions, concentration of fishing grounds, limited research and development programs and key players' lack of literacy to formal credit. Upon identifying the issues, problems and constraints in the Supply chain of Tuyo in Orion, the following recommendations were formulated. For the fishermen, they should invest in bigger boats, as bigger boats acquire almost twice as much as normal ones. and engage actively in processing tuyo to take advantage of the low cost of primary input. For the processors, engage in product development and invest in research and development. For the traders and distributors, focus on capacity utilization, backward integration and invest in regulatory compliance. Lastly, thee government should help the key players in complying with the national and international standards regarding processed fish products, to promote improvement of the whole industry and possible exportations in the future.

Language

English

LC Subject

Dried fishery products, Supply chain management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2024 M17 B34

Document Type

Thesis

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