Analysis of Mango Supply Chain In Batangas

Date

12-2019

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Loida E. Mojica

Committee Member

Jeanette Angeline B. Madamba, Dia Noelle F. Velasco, Agnes T. Banzon, Normito R. Zapata, Jr.

Abstract

An Analysis of the Supply Chain of Mango in Batangas was conducted to: (1) present an overview of the industry; (2) present and characterize the supply chain maps in Batangas; (3) present the profile of the key players included in the supply chain; (4) determine the drivers of performance of the supply chain; (5) identify problems, issues, and opportunities in the mango supply chain; and (6) formulate recommendations to address the identified problems as well as the opportunities that can further improve the supply chain.

A total of 34 respondents were interviewed which consisted of 10 mango traders and 24 mango sprayer-contractors/growers. Mapping of the supply chain was done to have a view of the flow of mango in the study areas as well as the financial and information flow between the chain actors. 13 sub-supply chains were identified from the major supply chain, five of which are short since they have few chain participants while eight are longer because of the presence of various market intermediaries.

The supply chain characteristics were determined through the supply chain theories such as relationship marketing, principal-agent, transaction costs, network theory, operational logistics and linkage. Relationships between the participants and their most preferred buyers were examined and were found to be at high levels. It was observed that the supply chain exhibited informal relationships between the chain actors. Transactions were mostly based on verbal promises and trust. The key players of the supply chain were chemical companies/agri-trading stores, sprayer-contractors/growers, traders (assembler- wholesalers, wholesalers, wholesaler-retailers, retailers), agents, exporter/processor- exporter companies. The drivers of the supply chain performance were facilities, transportation, inventories, technology, sourcing, information and pricing.

Overall, the supply chain of mango was characterized as weak due to the problems and issues identified within the chain. The problems identified in the production node were decreasing number of productive mango trees, pests and diseases that infest mango fruits and leaves, and high cost of inputs. For the distribution node, the problems were delayed payment by the buyers, difficulty in communicating with individual farmers, high costs and lack of farm to market roads in some areas in Batangas. For the whole supply chain, the problems were low quality mangoes, unpaid debts or delayed payment, price fluctuations, long overlapping channels and sometimes unexpected oversupply. The production node was observed as the weakest link due to its Php0.29 share of profit which was the lowest among the chain participants. Looking into the drivers as well as the problems identified, the performance of mango supply chain in Batangas was considered as slightly bad.

An opportunity for increased production was identified. These are due to increased local and export demand, better production technology, and more value adding possibilities. The following recommendations were formulated to solve the issues and problems and take advantage of the opportunities.

Adoption of cluster marketing by the sprayer-contractors/growers of mango growers association was also recommended for easier access and communication with the market like the processors/exporters. Improved techniques in mango farming by the sprayer- contractors/growers should be used to increase yield of existing trees and improve the utilization of land. Research on improved variety and better chemical inputs should be conducted by DA, DOST and the chemical companies to increase the quality of mangoes. Department of Agriculture and the Mango Growers Association was recommended to lead information dissemination and tap non-members to join the association. DA should continue providing trainings and seminars for good practices in mango production. Value addition for mangoes such as processing it into mango jams, juice or candy was also recommended to be included in trainings and seminars where women or wives of the sprayer-contractors can attend. Improvement of road infrastructure and additional farm to market roads by DPWH should be done to facilitate distribution of mango. Lastly, it was recommended to establish a processing plant for mango in Batangas to support the value adding activities.

Language

English

LC Subject

Mango industry--Philippines, Supply chain management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 L86

Notes

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Document Type

Thesis

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