"Production and Marketing System of Saba Banana in Oriental Mindoro" by Kyna Larissa M. Penafiel

Production and Marketing System of Saba Banana in Oriental Mindoro

Date

12-2018

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Loida E. Mojica

Abstract

Cardaba banana or locally known as saba, is one of the top agricultural crops produced in Oriental Mindoro and is extensively recognized by Filipinos as a traditional part of their diet, specifically as merienda. This study was conducted to evaluate the current performance of the saba farmers in four municipalities of Oriental Mindoro.

The general objective of this study is to identify the production and marketing systems in the banana industry in the identified municipalities. Specifically, this study aimed to profile the key players who are involved in the production and marketing of saba banana in Socorro, Pinamalayan, Gloria and Bansud, to determine the production and marketing arrangements among them, to identify the gaps in the systems and to formulate recommendations that will solve these gaps.

Primary data were obtained through a face-to-face interview using snowball or referral method, which is a non-probabilistic sampling technique. There are two groups of key players identified in this study, mainly banana farmers and banana buyers - banana traders and banana chips processor. The researcher was able to interview 112 respondents, composed of 100 farmers and 12 buyers from different municipalities in Oriental Mindoro and Divisoria. A total of 24 farmers were classified as operating in large-scale farming (four hectares and above), 66 farmers in medium- scale (one to three hectares) and 10 farmers in small-scale/backyard farming (less than one hectare).

Secondary data were gathered through related studies and researches about cardaba farming in the Philippines. Furthermore, statistical data were obtained from government, non-government institutions and local authorities such as Department of Agriculture (DA), Philippines Statistics Authority (PSA) and Provincial Agricultural Office (PAO).

Results showed that farmers were not able to finish their secondary and tertiary education and rely mainly on producing the crop as their primary source of income. Of the 100 farmers interviewed, 62 of them are tenants other 38 own the land.

In addition, saba was their main crop although all of them use the intercropping method. Saba farming is not that labor intensive and they only need to hire people for the maintenance and harvesting.

Among the 12 banana buyers interviewed, there were two retailers, five agents, four assembler- wholesalers and one processor. Small-scale farmers generally sell their produce to retailers in the local market while medium and large-scale farmers sell them to traders. All traders sell on a per count basis where five pieces in one finger is counted as one. Among the agents, the greatest saba purchases monthly is from Pinamalayan with 6,400kg earning a profit of P18,400. Assembler- wholesalers, acquire 14,000kg to 20,000kg of saba monthly generating profits of P100,000 and above. Processors however earn on the average of P 2,000,000 assuming all 72,000kg of saba purchases were used up for banana chips and all banana chips are sold in one month. Retailer in the province purchase 240kg monthly on the average and earns P160 only since it is not only saba that he is selling. Retailer in Divisoria on the other hand earns P 160,000 monthly if all 8,000kg of saba are sold at a good price.

The identified traits in the production and marketing system are fluctuating production trend, huge industry market size, low competition within the production system while moderate competition for the marketing system, moderate entry barriers and low exit barriers for both farmers and traders. There were four production and marketing systems identified namely (1) small scale producers – retailers – consumers (2) medium/large scale producers – agents – processors – consumers (3) medium/large scale producers – agents – assembler-wholesalers – retailers – consumers and (4) medium/large scale producers – agents – assembler-wholesalers – consumers. The most profitable and time efficient is the small scale producers – retailers – consumers.

It is recommended that farmers will venture into processing of banana cue, sinulbot and turon to have additional income. For the traders, it is encouraged that they use ethylene adsorbent to further delay the ripening of bananas and minimize losses that they incur due to spoilage. Lastly, for the government institutions, they are encouraged to improve production technology and educate the farmers about the control measures for pests and diseases and intensify promotional activities for consumption of banana product.

Language

English

LC Subject

Banana trade--Philippines, Production control, marketing

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2018 M17 P46

Notes

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Document Type

Thesis

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