Charcoal Supply Chain and its Environmental Sustainability in Pagsanjan, Laguna, 2022

Date

6-2023

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Christian Paul L. Fang

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Restrictions

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

Abstract

The study assessed the Pagsanjan charcoal supply chain and its environmental sustainability. Specifically, it aimed to : (1) characterize the key players in the Pagsanjan charcoal supply chain; (2) describe the product, payment and information flow of charcoal; (3) examine the charcoal supply chain performance in terms of marketing efficiency, responsiveness, flexibility, and product quality; (4) determine if the charcoal-making practices in Pagsanjan are environmentally sustainable; and (5) provide policy recommendations based on the research results.

Charcoal producers were completely enumerated. Then, forward tracing was used to map the remaining supply chain actors. A total of 135 actors were covered which included the three owners, producers, assembler-wholesalers, wholesalers, wholesalers-retailers, institutional buyers and household users. All the actors were interviewed to gather primary data related to their socio-economic profile, charcoal production, trading, indicators for environmental sustainability, and access to information and support services, among others. The data were analyzed using descriptive analysis, supply chain performance analysis, proximate chemical analysis, and criteria and indicators for environmental sustainability analysis.

The producers of charcoal in Pagsanjan worked in private lands (51%) or open forests (49%). One charcoal operation included site selection, wood harvesting, wood processing, kiln construction, carbonization, packaging, and transport wherein child labor is common incidence. Traders performed handling and consolidating, sorting, repacking, drying, and storing activities, while institutional buyers and household users used charcoal as cooking fuel. Cash is the sole mode of payment used by all the supply chain participants who sold charcoal by pick-up or delivery. There were 19 marketing channels in the Pagsanjan charcoal supply chain and most of the charcoal produced was traded and utilized within the municipality because traders lack transport permits. The majority of the channels were considered inefficient in the rainy season (58%) and dry season (53%) because of low farmgate prices and dishonest practices among producers who concealed soil and crushed charcoal at the bottom of the sack. Regardless of the season, the chain is not responsive because of the long lead time required to finish one charcoal operation. There were no lost orders and hence, the chain is considered flexible in terms of buyer flexibility. However, a slight increase in the amount of product losses will make the charcoal operations not profitable and hence, not flexible in terms of volume flexibility. Also, the charcoal in Pagsanjan is low quality in terms of moisture content, normal quality in terms of fixed carbon and ash content, and high quality in terms of volatile combustible matter. Lastly, most of the producers (73%) adopted non-sustainable practices. These producers harvested slow-growing and premium tree species using methods that stop three regeneration (e.g., tree felling and kaingin). Also, their operations were made in the open forests without any site restoration practices.

Based on the results, the study recommended the following: (1) make charcoal operations environmentally sustainable by harvesting fast-growing tree species, adopting wood harvesting practices that allow tree regeneration, and performing charcoal operation on private lands wherein the site is maintained by three planting and prohibition of kaingin, among others; (2) establishment of the Pagsanjan Charcoal Cooperative; (3) minimize product losses by adopting wood drying and water application; (4) provision of safety equipment and; (5) adoption of the proposed charcoal quality standard classification based on the proximate chemical analysis.

Language

English

LC Subject

Charcoal industry, Supply chain management--Environmental aspects

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 M39

Document Type

Thesis

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