Value Chain Analysis of Duck Egg in Victoria, Laguna

Date

5-2016

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Arlene C. Gutierrez

Committee Member

Dia Noelle F. Velasco, Maria Noriza Q. Herrera, Loida E. Mojica, Dinah Pura T. Depositario

Abstract

Ducks are considered as the second most important source of egg and meat in the Philippines. One of the major producers of duck egg and meat in the country is the municipality of Victoria in the province of Laguna. However, it has been observed that there are duck egg farmers and producers in the municipality who have quit the industry due to their insufficient earnings from their businesses. The number of duck farms in the area decreased from more than one hundred in the 1990s to just 32 farms in 2016. It was thus inferred that it is very important to assess what the status of the industry is and to evaluate each of the key players in the value chain to be able to analyze the problems and opportunities faced by each of the players in the sector. This study aims to; 1) present the profile and relationship dynamics of the actors involved in the value chain; 2) evaluate the costs and profit as well as the value-added in every stage of the value chain; 3) analyze the problems and opportunities in the value chain of duck egg, and 4) recommend possible investment entry points and government interventions.

The study used descriptive research design in assessing each of the key players in the duck egg value chain in Victoria, Laguna. Interviews were done to gather data on the key actors of the value chain which included their demographic profile, costs incurred, value- adding activities and problems encountered. The respondents included 11 producers, 5 producer-processors, 3 processors, 2 processor-retailers and 1 producer-processor- retailer. Value-adding activities in each level of the value chain were determined and analysed using Food and Agriculture Organization (FAO)‟s Sustainable Value Chain Framework. Cost and return analysis, the analysis of value addition and relationship dynamics along the chain were also conducted.

After carefully analyzing the data gathered, it was learned that there were nine identified actors in the value chain of duck eggs in Victoria, Laguna. These were the: 1) Producer, 2) Producer-Processor, 3) Processor, 4) Processor-Retailer, 5) Producer-Processor- Retailer, 6) dealers, 7) wholesalers and 8) retailers in other provinces and municipalities and provinces and 9) end-consumers. From these, six product flows or value chains were found to be existing in Victoria, Laguna. The first value chain involved the producer, salted egg processor/retailer, wholesalers and retailers in other municipalities and provinces and consumers. The second value chain was composed of the producer, balut and penoy processor, wholesalers and retailers in other municipalities and provinces and consumers. The third marketing chain included the producer and salted egg processor, wholesaler and retailer in other municipalities and provinces and consumers. The fourth marketing chain was composed of the producer and balut and penoy processor, wholesaler and retailer in other municipalities and provinces and consumers. The fifth marketing chain consisted of the producer and salted egg, balut and penoy processors and wholesaler and retailers from other municipalities and provinces and consumers. The sixth marketing chain consisted of the producer and salted egg, balut and penoy processors/retailers and dealers from other municipalities and provinces and consumers.

Upon evaluating the costs and returns of each of the key players in the chain, it was identified that feeds was the major cost item among the producers while fresh eggs were the major cost item among processors. In terms of value-addition, the producer-salted egg processor generated the highest value-addition among the actors in the chain (Php 2.47) while the balut and penoy processor received the lowest value-added (Php 0.05).

Some of the major problems, issues and gaps in the industry were the unfavorable weather condition, limited access to research and technology, limited resource to proper packaging, unpaid debts and delays in the payment of buyers, loss of patronage of regular customers, changing customer preferences, lack of government support, absence of an organization of duck egg farmers, mismanagement of hired labor and prohibition of snail harvesting in Laguna de Bay.

In order to address the abovementioned problems, recommendations were formulated for every actor in the chain. For producers, it was recommended that they should implement strict management of hired labor and develop an association which can represent the duck egg farmers in the municipality. For duck egg processors, they should engage in product development and improvements in packaging. Possible investment entry points were the production and exporting of bottled balut and expansion of their market to fine dining and exotic restaurants. Lastly, it was recommended that the government should pay more attention to the duck egg industry by providing financial, research and technology assistance support.

Language

English

LC Subject

Duck industry, Poultry products--Quality

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2016 M17 B45

Notes

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Document Type

Thesis

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