Status, Problems, and Prospects of Mud Crab Production and Marketing in Masantol, Pampanga

Date

5-2018

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Melodee Marciana E. De Castro

Committee Member

Rachelle A. Mariano, Loida E. Mojica, Agnes T. Banzon, Normito R. Zapata, Jr.

Abstract

This study described and analyzed the status, problems, and prospects of mud crab production and marketing in Masantol, Pampanga. The specific goals of this research were to: (1) describe the profile of the key industry players (farmers and traders) in the town of Masantol, Pampanga; (2) evaluate the current structure, conduct and performance of production and marketing aspects of the mud crab industry in Masantol, Pampanga; (3) identify the strengths, and weaknesses, as well as investment opportunities and developmental entry points for entrepreneurs and other stakeholders; (4) analyze the existing problems, as well as demand and supply gaps of the said industry in Masantol, Pampanga; (5) determine the key success factors and failures for the said industry; (6) formulate recommendations and strategic decisions for the industry players involved in the production and marketing aspects in order to realize the industry’s full potential. An analytical framework served as a guide while conducting the study. A key informant was interviewed along with 50 farm operators and seven traders that were interviewed through assisted survey. The survey included questions about the socio-demographic profile of the key players, the profile of their respective farms/business, and the management practices they employ in their farms. The survey results were analyzed by making use of dominant economic traits, cost-return analysis, forecasting of demand and supply, product flow analysis and key success factors.

Results showed that most of the farmers were male. The oldest operator interviewed was 69 years old and the youngest was 19 years old. Most of the farmers own the lands they use for pond aquaculture. There were some gaps with the actual practices and standard practices as prescribed by the Municipal Agriculture Office (MAO), however all of the farm operators were able to meet the expected production per hectare. Meanwhile, there were two identified types of traders operating in Masantol. The consignacion is the consolidator and wholesaler of crabs. Most of the farms dispose the mud crabs in the consignacion, and the consignacion engages trade with the traders from different location (mostly from NCR). Meanwhile, the retailers are small players that cater to end consumers.

The strengths and weaknesses of the key players were identified prior to the integrated analysis. The main strength of the small farms was their ability to cut expenses and the large and average-sized farms were both invested on technology and has access to other markets. Meanwhile, for the weak points, both the small farms and the average-sized farms exhibited gaps with the standard practices, while the large farms were harder to administrate.

The problems of the operators that were identified were classified into problems in production and problems in marketing. For the production, poor quality of produce due to weather or seeds used were the most prevalent issues encountered in the farm. Meanwhile, there are also some labor issues that were encountered by the large farms. For the problems

in marketing, the lack of logistic facilities of the small farms and in some of the average- sized farms hindered them from exploring new and more profitable market. They were also

indebted to the consignation owners, hence they cannot by pass them and so they dispose all of their crabs at the consignation. For the traders, the main problem the consignation encounters on operation is the difficulty in collection of receivables. meanwhile, both retailers have issues with procurement of supply but is more evident with the retailers. For the marketing, it is very seldom that the consignations encounter problems because buyers come directly to them, meanwhile, the retailers have small market and they resort to high price discount just to be able to sell crabs.

The investment and development entry points were also identified. Since many farm operators do not have access to better loan schemes, credit facilities should be established in the area. There is also opportunity in mud crab processing because only few engages into the said business. Meanwhile, to address the bottleneck in the chain, hatchery facilities should also be considered as an investment point.

Recommendations were formed based on the problems of the industry. Technology upgrade and availing better loan schemes were recommended for small farms. Since the average farms and large farms are more stable financially, it is recommended for them to explore new and better paying markets, as well as expansion of farms. For the consignacion, they should find a way to establish connections with exporters and the retailers should form cooperatives to address their issues in procurement. The government, on the other hand, should invest on hatchery facilities and ensure effective technology transfer.

Language

English

LC Subject

Crab industry, Production control, marketing

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2018 M17 P36

Notes

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Document Type

Thesis

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