Supply Chain of Ginger in Batangas

Date

5-2016

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jewel Joanna S. Cabardo

Committee Member

Jeanette Angeline B. Madamba, Dia Noelle F. Velasco, Loida E. Mojica, Dinah Pura T. Depositario

Abstract

Zingiber officinale or Ginger is reported as a native in the Southeast Asia and is one of the high value crops grown in the country. It is not only consumed fresh or dried because it can be subjected to processing which could lengthen its shelf life. It could be processed into powdered ginger that can be used as condiments in cooking or as a tea also known as salabat that can either be in liquid form or in powdered form. At present, the actual production of ginger locally is equivalent to the actual demand for the commodity. Any more increase on demand would result to a deficit in supply. In the Philippines, CALABARZON ranked second in ginger production while Batangas ranked second in ginger production within the region. Thus, the study was conducted in the province.

The main objective of the study was to present and analyze the supply chain of ginger in Batangas and this specifically aimed to (1) profile the respondents included in the supply chain. (2) determine the drivers of performance of the supply chain. (3) map out the ginger supply chain and discuss the relationship between and among players. (4) characterize and analyze different supply chains. (5) identify problems, issues, and opportunities in the ginger supply chain. (7) formulate recommendations to address the identified problems as well as the opportunities that can further improve the supply chain.

Profiling of the respondents was done to be able to get specific information about the different actors in the ginger supply chain. Information needed to achieve other objectives was made possible through this profiling. This study also includes descriptive discussion about the drivers of performance in the supply chain such as facilities, inventories, transportation, information, sourcing, and network. Furthermore, this study presented the map of ginger supply chain and it also includes discussion about the relationship between and among player in the supply chain. After mapping the supply chain network, there were 9 individual supply chains identified and these chains were individually characterized and analyzed. Among 9 supply chains, the SC 1, SC 2, SC 4, and SC 5 were identified as moderately strong. SC 3 was strong while the remaining SC 7, SC 8, and SC 9 were considered moderately weak. Therefore, the overall supply chain can be considered moderately strong since most of the chains were considered moderately strong. The supply chain of ginger in Batangas was competitive and so it was a good signal for the whole chain. Since network theory stated that the competition lies among networks, it was useful to strengthen the chain within one network.

Moreover, this study also identifies problems and issues in the ginger supply chain as well as opportunities that might lead to improvement of the overall supply chain network. Supply chain 1 to 9 faces problems regarding the poor farm to market roads, infestation of pest and diseases, unavailability of good quality seedling, and fluctuating of gingers’ price in the market. However, due to these problems, opportunities and gaps such as enhancement of infrastructure, offering of pest control services, as well as development of standard price for ginger were identified. For supply chains 1 and 2, there were problem regarding the high transportation cost due to low volume of product being transported, therefore there should be an opportunity for transportation services and increase in production volume for this chains. On the other hand, supply chain 2 had an opportunity where farmers could benefit from; that is for the wholesalers to provide capital to farmers to ensure the source of ginger during harvest season. Supply chain 3 had a problem regarding the seasonality of the demand for product. Therefore, processors should tap other customer located at nearby barangays. Moreover, disloyalty of dealers, assemblers, and farmers were the common problem for supply chains 4, 5, 6, 7, and 9. Due to this, Department of Agriculture must develop standard to control the quality of ginger. Lastly, in supply chain 6, the chain was found lacking in value addition of product which is why it has opportunity for others to transform ginger to become other product with different form and properties.

Given the aforementioned problems and issues as well as opportunities and development entry points particularly in Batangas, the following recommendations are advised to certain stakeholders. For supply chains 1 to supply chains 9, planting practices for farmers which will help them minimize the infestation of pest and diseases were recommended. Also, the Department of Agriculture must provide good quality rhizomes to farmers so that it would be more possible to create good quality produce. Another is that LGUs should provide trainings and regular meetings to farmers so that information could be up-to-date and dissemination would be easier. There must also be an intervention by a private institution which should consolidate all actors in the chain so that miscommunication will be minimized and/or prevented. The government should also grant concrete roads to those areas with poor farm-to-market road. The Department of Agriculture should also impose price control and quality control for ginger so that selling and buying of ginger would be standardized. Moreover, specific supply chain such as supply chain 9 must consider value addition so that the potential for ginger will be maximized. Supply chain 3, where the processor of Mom’s Instant Salabat is included, must improve their promotion of salabat so that it could cater more customers and eventually increase sales and become a larger producer of processed ginger.

Language

English

LC Subject

Supply chain management, Ginger industry

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2016 M17 B63

Notes

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Document Type

Thesis

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