Supply Chain of Dairy Buffalo Milk and Selected Milk Products in Laguna

Date

8-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Zenaida M. Huelgas

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

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Abstract

The study conducted traced and examined the supply chain of dairy buffalo milk and selected buffalo milk products in Laguna. It sought to determine and describe the supply chain actors and their functions in the dairy industry of Laguna; determine the flow of inputs from suppliers to buffalo raisers and the flow of dairy products from raisers to end-consumers; assess profitability and marketing efficiency of dairy buffalo raisers and products; analyze the existing support services available; and identify the problems and issues encountered in the industry and propose possible courses of actions.

Data gathered through personal interviews with 43 market participants were analyzed by descriptive analysis and cost and returns analysis. Marketing margins were also analyzed. The 43 market participants interviewed comprised 38 dairy buffalo raisers and 5 processor-retailers. Raw milk collected by the farmers is either collected by the processor-retailers or delivered by the farmers themselves.

Cost and returns analysis for farmers were analyzed by the municipality and the type of feeding method was applied in a per farm and per liter basis. Based on the results, farmers from both municipalities were found to be profitable. The net farm profit of farmers from Lumban and Magdalena was PHP 41,794.76 (PHP 28.34/L) and PHP 227,841.68 (PHP 70.85/L) respectively. Furthermore, when analyzed depending on the feeding method applied, results indicate that purely grazing and a combination of grazing and feeds are also profitable with a net farm profit of PHP 103,480.55 (PHP 45.83/L) and PHP 249,228.24 (PHP 68.90) respectively.

Processor-retailers in Lumban and Magdalena were analyzed by their marketing margins, marketing cost as a percentage of marketing margins, net returns as a percentage of marketing margins, and the breakdown of consumer peso. Farmers in Magdalena who deliver their raw milk to the LGU processing had a higher share of the final price of fresh and chocolate milk with 53%. In addition, farmers who deliver to the cooperative processing have a higher share of the final price for white cheese and pastillas with 84% and 80% respectively. White cheese processor in Lumban has a larger share of consumer peso with 80%. Results showed that the processor-retailers in Lumban and Magdalena are efficient in their operations with low marketing costs as a percentage of marketing margins and a high percentage in net returns as a percentage of marketing margins.

The main problem faced by the farmers were pests and diseases, and natural calamities. The processor-retailers on the other hand only encountered spoilage as their main problem.

Based on the results, the following recommendations were developed: Promote the processing of more high-end and competitive dairy buffalo milk products, continuous support from the LGU and PCC, implementation of a new feeding method, and recommend for further study.

Language

English

LC Subject

Milk trade, Dairy products industry--Philippines, Supply chain management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 A33

Notes

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Document Type

Thesis

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