Status, Problems, and Prospects of Black Pepper Production and Marketing in Lipa City, Batangas

Date

5-2019

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Hanna D. Miranda-Quibot

Committee Member

Nanette A. Aquino, Dia Noelle F. Velasco, Loida E. Mojica, Normito R. Zapata, Jr.

Abstract

Black pepper (Piper nigrum) is a hot and strong tasting spice used as an ingredient in daily food consumption. In the Philippines, black pepper production has been continuously declining for the past years. Thus, the country depends on the majority of the total supply to imports from Vietnam and Indonesia. In 2017, the local production was estimated to be 1,369 metric tons in which Batangas accounts for 81.4% of the production. In particular, the city of Lipa has the largest area of production in the province with an area of 338.67 hectares.

The main objective of this study is to determine the status, problems, and prospects of the black pepper production and marketing in Lipa City, and this specifically aimed to (1) identify and describe the socio-demographic profile of the black pepper farmers and intermediaries in the area; (2) discuss the production and marketing practices of the black pepper farmers and intermediaries; (3) identify the issues and challenges faced by the key players on the black pepper industry and the actions made to address the problems; (4) identify the prospects for the key players in black pepper production and marketing; and (5) recommend solutions to address the current problems of black pepper production and marketing.

The descriptive research design was used in the study. Primary data were obtained through field observation and personal interviews with 60 farmers and six intermediaries through snowball sampling. Descriptive statistical analysis and integrated analysis was used to present and discuss the results of the study.

Farmers are mostly male. Their average age is 59.37 years old. Based from the interview, they are engaged in black pepper farming at a young age since farms are family-based enterprise. Thus, most farmers are second generation farmers already. On the other hand, the intermediaries identified are composed of assembler-wholesaler, wholesalers, and wholesalers-retailers. They are mostly male and high school graduates. They also trade other agricultural and non-agricultural products.

The black pepper farmers in Lipa utilized basic farm inputs and employ traditional farming practices. They called the varieties planted as “Tagalog” and Taiwan”. They apply the minimum amount of fertilizer and do not use pesticides. Farming operation usually starts in June which includes general cleaning of the farm, putting up pole supports, cutting of the grass and fertilizer application. Harvest season is from February to April. Afterwards, primary processing activities are done by the farmers. These include sun drying, cleaning, and grading of the black pepper berries.

In the marketing of black pepper, the farmers only sell whole black peppercorns to the intermediaries from PhP130 to PhP250 per kilogram. It is costly for them to process further. Consequently, the intermediaries perform grinding and repacking of the local black pepper. They also source from the imports. They supply to various wholesalers and retailers in Metro Manila and other provinces, and charge additional PhP50 to PhP70 to their buyers. Furthermore, there are seven marketing channels identified in the study. One channel is directly from the farm to the institutional buyer while there are longer channels wherein the transfer of the commodity is from wholesaler to another wholesaler.

The problems of the industry are the occurrence of pests and diseases, the changing weather condition which affects farm production, and lack of adequate support from the government. The country also relies on importation which results in lower prices at the wholesale and retail level. On the other hand, the prospects of the industry are in the opportunity to increase production due to the huge gap in local supply and demand. There is also an increasing number of uses of black pepper in the field of cosmetics and medicine wherein the country can enter the export market.

This study recommends imposing tariffs and quantitative restrictions to control the massive importation of black pepper in the country. The government should be consistent in giving technical assistance and subsidies. Researchers are recommended to conduct research on varieties planted, cure for the pests and diseases of the plants, and a market research. Farmers also need to have an efficient production and marketing plan while the intermediaries should widen their market reach. Lastly, it is recommended that farmers should have their association for them to share resources and knowledge as well as to be able to perform value adding activities and to forward integrate.

Language

English

LC Subject

Pepper (Spice) industry, Production control, Marketing

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 D59

Notes

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Document Type

Thesis

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