Supply Chain Analysis of Bamboo Products in Maragondon, Cavite

Date

12-2019

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dinah Pura T. Depositario

Abstract

The study was conducted to analyze the supply chains of bamboo products in Maragondon, Cavite. Specifically, the research intended to: 1) present an overview of the key players in the supply chains of bamboo in Maragondon, Cavite; 2) map out the supply chain of bamboo pole and bamboo products produced in Maragondon, Cavite; 3) analyze the value addition to bamboo poles processed into different bamboo products; 4) determine the status of the supply and value chains of bamboo products; and 5) discuss the issues, constraints and problems affecting the profitability of the bamboo products; and 6) identify investment and/or development entry points for the continuous viability of the bamboo product supply and value chains in the area.

This study utilized the descriptive research design. Moreover, key informant interviews and surveys were done to gather primary data from the respondents. Supply chain analysis was used to assess the status of bamboo product production in Maragondon, Cavite. Value chain analysis was also done to analyze the profitability of each key player in the supply chain and to determine value addition from the bamboo products. After doing a supply chain analysis of bamboo products in Maragondon, Cavite, it was found that the major participants involved in the chain were the stand owners, pole traders, stick makers, the Kawayan Maragondon Municipal Economic Enterprise (KMMEE), and Bamboo Crafts (a bamboo hut manufacturing enterprise). In this study, the specie of bamboo being sold along the chain was only Bambusa blumeana, also known as spiny bamboo or thorny bamboo or locally well-known as kawayang tinik. There were 30 respondents in this study - 8 bamboo stand owners; 10 bamboo traders; 10 stick makers; one, the person in charge for Kawayan Maragondon Municipal Economic Enterprise; and one, a staff from Bamboo Crafts.

All of the pole traders were male, all the stick makers were female, and nine out of ten of the stand owners were male. Their ages ranged from 29-65 years old. The players either use their own money as their capital or borrow with interest rates and mode and terms of payment depending on their agreement.

Six supply chains were identified in Maragondon, Cavite. The first supply chain was the pole trader freely harvesting natural stands in Maragondon, Cavite from a land owned by the late businessman, Henry Sy). The pole gatherer hired pole gatherers to cut, clean, and assemble the poles, after which these were delivered and sold to Mussel and Oyster Farmers in Bacoor, Kawit, and Cavite City. The second supply chain was just similar with the first supply chain, the only difference was the pole trader bought the clumps of bamboo from different stand-owners in Maragondon, Cavite through the Pakyawan system. The third supply chain was the supply chain of the KMMEE. Their supply of bamboo poles was bought from a pole trader in Maragondon, Cavite, then the poles were delivered to the Shared Service Facility where they were processed into engineered bamboo products. Their top three best-selling products were picture frame, coin bank, and lampshade. The fourth supply chain was the supply chain of Bamboo Crafts, a bamboo hut manufacturing enterprise. After sourcing the bamboo poles from the pole trader, the enterprise‟s laborers built bamboo huts of different sizes and sold these to resort owners and household owners. The fifth supply chain was that of the stick makers. The stick maker sourced bamboo poles with the help of pole gatherers. The poles were then cut, sliced and sharpened into sticks or skewers. The finished products were sold to local retailers who in turn sold them to street food vendors. The sixth and last chain was similar to the fifth chain with the only differences being the intermediary of the stick dealers. The finished sticks were bought by stick dealers and then distributed among retailers in Cavite and Metro Manila.

Of all the value chains identified, the fifth value chain, where the main end product was bamboo sticks/skewers, was assessed to generate the highest value addition and was also the most profitable of all the bamboo products in Maragondon, Cavite. As expected, the added value increases when the bamboo pole was processed into a new product. KMMEE and Bamboo hut – higher costs were however incurred for bamboo hut manufacturing as they hired workers and used machines while the stick makers incurred the least cost among the processors.

Based on the integrated supply chains of bamboo products in Maragondon, Cavite, various opportunities were identified based on the issues and problems encountered by the key players and the whole chain as well. These opportunities for the key players include the establishment of traders‟ association, utilization of economies of scale, better marketing strategies, and investment in processing of bamboo products while these opportunities for the support institutions include application of proper information dissemination, construction of cemented roads along bamboo plantation, and development of information, education and communication (IEC).

Language

English

LC Subject

Bamboo products, Supply chain management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 B34

Notes

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Document Type

Thesis

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