Distribution Chain Analysis of Aquaculture Products in Lanao Del Norte

Date

12-2025

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dia Noelle F. Velasco

Committee Member

Mar B. Cruz, Jeanette Angeline B. Madamba, Agnes T. Banzon, Dinah Pura T. Depositario

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Abstract

The study entitled “Distribution Chain Analysis of Aquaculture Products in Lanao del Norte” was conducted in selected municipalities of Lanao del Norte namely Kapatagan, Lala, Baroy and Kolambugan. The objectives of the study are: 1) to present and characterize the profile of the key players in the distribution system for aquaculture in Lanao del Norte; 2) to map out the flow of aquaculture products from source to destination; 3) to determine the costs and value added of each product at different value chains; 4) to evaluate the distribution and transportation system of aquaculture farms in Lanao del Norte; 5) to identify the issues, problems and opportunities in the system; and 6) to recommend investment entry points and possible interventions to improve the system.

The sampling methods used were complete enumeration for the fishpond operators and purposive sampling for the other key players since there are no recent data in the government offices. Primary data were obtained through personal interviews of the respondents consisting of 40 fishpond operators, one fishpond-trader, 11 traders, four truckers, nine wholesalers- retailers and one retailer. The data obtained were organized and analyzed through descriptive analysis to illustrate the answers of the respondents in a tabular and graphical form. Furthermore, product, financial and information flow analysis were also utilized to track the movement of aquaculture commodities. Lastly, value chain analysis was utilized to trace the different chains and the costs incurred for each player.

Majority of the fishpond operators were male constituting 77.50% of the total respondents. Around 58% of them had finished college and most of the respondents (45%) belong to the age bracket of 41-50 years old. Their source of capital was mostly from personal money for the three commodities.

Most of the traders were female (45%) and almost 91% of the total traders had relatively high educational levels. A total of 80% rely on trading as their major source of income while others were into swine production and sari-sari store. Furthermore, the average number of years in trading was 12 years.

Truckers were responsible in the transport of produce to the market. All of them were male and most were high school graduates. From Lanao del Norte, they transport it to Iligan City, Laguindingan airport and lastly to Cagayan de Oro.

All of the wholesaler/retailers were female and majority of them reached high school but was not able to finish it due to financial constraints. About 90% of them were wholesaling and retailing at the same time. They source their produce from the suppliers then pay them either through cash padala or bank deposit then distribution of the commodities to end-consumers.

There were five value chains in the distribution of aquaculture products in Lanao del Norte. The first value chain involves the fishpond operators then sell directly to consumers. The second chain includes the role of traders that will link the fishpond operators to the consumers. The third chain added the role of the wholesaler-retailers before reaching to the consumers. The fourth chain focuses on the role of retailers to sell it the products of fishpond operators to consumers. Lastly, the fifth and strong value chain consists of fishpond operator then traders hire truckers to distribute it to the wholesaler-retailers and to the consumers.

The financial flow started from the fishpond operators imposing the prevailing price then the traders have a mark-up price of 10-50 pesos while the wholesalers/retailers imposed a mark- up of 5-50 pesos depending on the commodity. The information about the price was facilitated by the traders for the fishpond operators while the traders based their prices on the market and cooperatives and the wholesaler/retailers depnds their price on the market. Information about the volume requirement was also based among the key players‟ demand.

The value chain was composed of a network of key players. The fifth chain was considered a strong chain because it is used by mostly of the respondents which mean that the key players have established relationship with one another. The chain was also found to have incurred the greatest value added from the five chains. Chain 3 was analyzed to have the greater potential to become a strong value chain for it only needs further improvement. Chains 2 and 4 were assessed to be quite weak because of the exclusion of the roles of traders and wholesaler/retailers. Lastly, chain 1 was assessed a weak chain due to the missing roles of traders and wholesaler-retailer and retailers.

The net income of each key player per chain was also obtained in the study. Generally, the traders consistently received the highest share of net income from chains 2, 3 and 5. Primarily, the traders incurred the highest transportation cost which in turn increased their selling price of the product. On the other hand, the wholesaler-retailers also incurred minimal transportation costs since they distribute their products in nearby areas only.

The overall distribution and transportation system was evaluated based on the volume of spoilage, the travelling time and the transportation cost incurred. The spoilage rate was relatively high losing a total of 40 million pesos per year. On the other hand, the travelling hours with unpaved road was longer compared to the paved roads. Lastly, the transportation cost incurred by the key player ranges 4-6.3% relative to its selling price which is quite efficient. However, if the transportation system is more efficient it could still reduce the selling since a decrease in the transportation cost leads to lower selling price. Therefore, the transportation and distribution system of the aquaculture products in Lanao del Norte was inefficient because of its high transportation cost coupled with huge economic losses yearly.

There were problems encountered by the key players such as the bacteria and viruses existing in the Panguil Bay, increase in precipitation fall, unstable prices, delays in payment, limited and inefficient postharvest facilities and the seasonality of the aquaculture products. Some common problems identified in the distribution system were the following: poor road conditions from source to market, consecutive heavy rains, presence of rebels and police officers who asks some, delay in releasing of permits, and availability of storage facilities.

The recommendations for the key players were technology development, product development and improvement of postharvest facilities. In addition, the potential investment entry points are establishing transport services in the province, establishment of cold chain facilities in strategic locations, provision of professional services stressing the damage of natural phenomena and climate. The possible government interventions were 1) fixing the unpaved road to contribute in the efficiency of the transport services, 2) establishing railway system in Mindanao to have easier movement of products from one place to another, 3) enforcing tighter security due to the presence of rebels in the highways, and lastly, 4) provision of assistance in terms of advanced transportation and storage facilities, timely and accurate market information and implementation regarding the release of permits.

Language

English

LC Subject

Distribution (Economic theory), Aquaculture industry

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2015 M17 B33

Notes

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Document Type

Thesis

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