Marketing Efficiency of Virgin Coconut Oil (VCO) Produced in Laguna, Philippines, 2024

Date

1-2025

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Cesar B. Quicoy

Committee Member

Geny L. Lapiña, Maria Angeles O. Catelo

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Abstract

This study examines the marketing efficiency of virgin coconut oil (VCO) produced in Laguna, Philippines. Specifically, the study aimed to (1) describe the processes in producing virgin coconut oil (VCO) in Laguna, (2) identify the marketing channels of VCO production in Laguna, (3) determine the profitability and marketing margin of VCO stakeholders in Laguna, and (4) recommend policy interventions to improve marketing efficiency of VCO production in Laguna.

Both primary and secondary data were utilized. The primary data was gathered through interviews with VCO processors, assembler-wholesalers, and retailers to analyze their processing activities, costs, and pricing among different marketing channels. On the other hand, the secondary data included collecting a list of registered VCO processors from the Philippine Coconut Authority (PCA) and analysing previous related VCO studies. Moreover, processor respondents were purposively selected based on their availability and willingness. From the processors, forward tracing was employed to gather data from VCO assembler-wholesaler, retailers, and consumers. Moreover, the analytical tools utilized were marketing margin and profitability analysis to assess price differences, marketing costs, net returns, and profit margins.

Findings showed that there were four main VCO processes that are utilized by Laguna VCO processors; that is, cold-pressed A-no-heat, wet-cold, fresh-wet centrifuge, and traditional heating. Three marketing channels were identified; specifically, processor-consumer, processor-retailer-consumer, and processor-wholesaler-retailer-consumer. Moreover, marketing margin analysis revealed that the processor-consumer channel was the most efficient, mainly due to its minimal marketing cost and higher net returns. Conversely, the processor-retailer-consumer channel incurred the highest marketing costs relative to net returns, making it the channel with the lowest efficiency. Profitability analysis, on the other hand, showed that large-scale processors and wholesalers achieved higher returns due to economies of scale, export market penetration, while small-scale processors and retailers had thinner margins.

Laguna’s strategic location and abundant coconut resources make it a prime location for virgin coconut oil (VCO) production, with six registered processors contributing significantly to local and global supply chains. Policymakers can improve Laguna’s VCO industry by providing technical and financial support to small-scale processors to enhance their production capacities, strengthening market linkages for improved price competitiveness, and pursuing premium export certifications. Overall, the study emphasizes the importance of channel selection and targeted policy interventions to bolster profitability and long-term sustainability in Laguna’s VCO industry.

Language

English

LC Subject

Coconut products, Product management, Marketing

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 A14 M35

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Document Type

Thesis

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