Market Needs Assessment for Acticon (A Biocontrol Agent Against Fusarium Wilt Disease)

Date

12-2018

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dinah Pura T. Depositario

Committee Member

Glenn N. Baticados, Loida E. Mojica, Agnes T. Banzon, Normito R. Zapata, Jr.

Abstract

This study was conducted in order to assess the market needs of banana industry players for a solution against fusarium wilt disease. Specifically, it aimed to: 1) provide an overview of ACTICon and its mode of action; 2) discuss the extent of damage and economic impact of Panama disease (also known as fusarium wilt) in Davao Region; 3) profile the banana growers and their current practices of controlling the disease; 4) describe the important attributes preferred by potential buyers; 5) compare attributes and costs of ACTICon versus the control methods being practiced; and 6) gain insights for the value proposition of ACTICon.

ACTICon is a biological control method developed by UPLB-Biotech project team headed by Dr. Irene Papa. The product is a biopesticide utilizing the fungi actinomycetes (hence the name ACTICon) abundant in soil. It acts as a biocontrol agent against the virulent fusarium wilt-causing Fusarium oxysporum TR4 (Foc-TR4) in Cavendish bananas. The banana is currently one of the top agricultural commodities in the country, with the Davao Region being the major producer of Cavendish bananas for export. The banana production, however, is currently devastated by the fusarium strain which has resulted to significant economic losses in the banana production.

The ACTICon is therefore intended to serve as a potential solution for the natural threat. However, for the technology to be marketed successfully, there is still a need to determine if the product solves the target industry’s problem and if there is a potential demand for the ACTICon.

Key informant interviews with the R&D personnel of big banana companies (ie. the target market) and industry resource experts were conducted in Davao region where Cavendish farms are mainly concentrated and located. Their responses were subjected to content analysis. Information from proceedings of conference related to banana industry issues were also utilized and analyzed. The researcher also looked into the attributes important to potential users by deriving product attributes importance ratings. Moreover, the cost of ACTICon as well as other solutions were computed and compared. Secondary data gathered were consolidated and analyzed through descriptive analysis and were used to support and provide information.

In relation to the results of the study, it was found that the main practices to control the disease included eradication and curative approaches. The current banana disease management practice of farms was assessed to lean towards the practice of burning infected plants with rice hulls, using chemicals/pesticides, and using a disease-tolerant variety called GCTCV 218. The interviewees revealed that there were some issues with the management practices such as their being expensive and laborious and their having a harmful effect to the environment. Furthermore, they claimed that there has not been a fully effective solution targeting the problem. For them, the industry has yet to develop a complete solution to address the disease.

The purchase decision process of the industry players and the preferred attributes they look for in a biocontrol agent were described. The willingness of the market to use a biocontrol agent was also asked. Based on the importance rating conducted, the important attributes identified and considered very important by two companies were survival and mortality rate, and effectivity and efficacy level. Unexpectedly, cost turned out to be an important attribute for the three companies. Ease of application and sensitivity to environmental conditions were also rated as important attributes. It also revealed that the market looks for a complementary product to contain and prevent the spread of the disease.

As for the solution and cost attributes of ACTICon, the product is considered safe for the environment. In addition, the product claimed by the developers to be cost-efficient and effective as a preventive approach.

The study also compared the attributes of ACTICon with that of the current practice. The current practices resulted to lower mortality rate compared to ACTICon (i.e. based on pilot test results), However, it was computed that on a per hectare basis, ACTICon’s cost is very much lower than that of the current practices (i.e. PhP 60,000.00 vs PhP 800,000.00).

Product awareness regarding biocontrol agents in the market, however, was found to be low. The company R&D key personnel as well as the industry experts shared that Trichoderma-based products were the closest thing to a biocontrol agent. In addition, the big industry players were found to still rely on their current methods and programs. The interviewees recommended that for them to accept ACTICon, it has to have Food and Pesticides Authority (FPA) registration and has to be validated by additional field testing. The results of the study suggested that medium-scale banana companies could be a better target market rather than big companies. Field trials could be conducted in medium-scale farms before full commercialization of the product is done.

It was recommended that further technological improvements should be made to improve and enhance the attributes of ACTICon, especially the attributes considered very important by banana industry players. These attributes involve efficacy/effectiveness of the product, changing the product form into liquid for ease of application, improving the packaging of the product itself to enable large-volume applications. The other recommendations are: to improve the distribution of ACTICon, the project team together with the UPLB-CTTE should coordinate with agri-chemical companies and distributors. Lastly, the developers could consider applying for a patent that would protect the intellectual property of the product.

Language

English

LC Subject

Fusarium wilt of banana, Bananas--Diseases and pests, Banana trade

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2018 M17 H66

Notes

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Document Type

Thesis

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