Value Chain Analysis of Cacao Beans in Quezon Province

Date

5-2018

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Rachelle A. Mariano

Committee Member

Faustino Q. Arrienda, II, Jewel Joanna S. Cabardo, Loida E. Mojica, Normito R. Zapata, Jr.

Abstract

Value Chain Analysis of Cacao Beans in Quezon aimed (1) characterize the key participants, and their dynamics in the cacao value chain; (2) determine costs and profit of cacao production and marketing as well as the value-added at different stages in the value chain; (3) determine the possible problems and prospects in each level of the value chain which may influence the further growth of the cacao industry; and (4) recommend solutions to identified problems.

The study involved a total of 120 respondents consisting of 90 cacao farmers, and 10 cacao bean traders, 10 cacao bean processors, 4 cacao nib and tableya wholesalers, 4 cacao nib and tableya wholesaler-retailers, 2 cacao nib and tableya retailers, and the provincial focal person of cacao in the Department of Agriculture in Quezon Province. The respondents were selected through a cluster sampling method. Four districts were all included in the study. These are District 1: General Nakar, Infanta, Lucban, Mauban, Pagbilao, Patnanungan, Polilo, Real, Sampaloc, Tayabas City; District 2: Candelaria, Dolores, San Antonio, Sariaya, Tiaong; District 3: Agdangan, Macalelon, Padre Burgos, San Francisco, San Narciso, Unisan; District 4: Alabat, Atimonan, Guinayangan, Gumaca, Lopez, Perez, Plaridel, Quezon, and Tagkawayan.

Cacao beans is available in three forms: wet cacao beans, dried cacao beans, and dried fermented cacao beans. These cacao beans flow on a distinct chain involving several key players. Value Added or Margin is computed by deducting the total costs from the selling prices. Cacao beans is highly suitable or compatible under different production systems (monocrop, intercropping, and agroforestry). The only production costs incurred by farmer is the labor cost during harvesting, while marketing costs consist of transportation and packaging material. Traders will have higher return if they purchase dried fermented cacao beans and processed it into different forms instead of just buying cacao beans already processed such as cacao nibs and tableya.

Relationship dynamics was assessed on the chain. Results showed that relationship marketing between processors and wholesalers has long been established. The processors rely on the wholesalers for the distribution of their products to other destinations. Total costs for this chain are also well distributed among the chain’s participant. And lack of relationship marketing between processors and retailers, processors and end consumers are considered weak. Processors still opt to sell larger volume of finished products to the wholesalers than sell smaller amounts to retailers. The transaction economies between the participants are also not efficient since the roles of the wholesalers and wholesaler- retailers were removed in this value chain. Moreover, the fourth value chain has potential to be strong value chain. Relationship marketing between the processors and wholesaler- retailer can be improved through continuous transaction through the years. Transaction economics can be also improved by distributing the costs further among the chain participants.

It is recommended that the following areas be prioritized: increased productivity, improved quality, scaling up of cacao production areas, adoption of sustainable practices and the corresponding traceability system, and construction or improvement of farm to market roads. To bring about systemic upgrading, here is a need to foster balanced horizontal and vertical linkages and a well-functioning supply chain governance complemented with behavior change interventions. Balanced relationships can provide the platform to facilitate (a) upgrading to become competitive; and (b) adaptation to changes in end markets, in the enabling environment or within the chain to remain competitive. Many of the interventions needed to make the Quezon cacao bean chain competitive and to facilitate broad-based growth are rooted in catalyzing behavior and social change in communities and among value chain players.

Language

English

LC Subject

Cacao beans, Bean industry, Supply chain management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2018 M17 A35

Notes

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Document Type

Thesis

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