Value chain analysis of pork in Laguna

Date

4-2011

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Julieta A. Delos Reyes

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Abstract

The general objective of the study was to analyze the value chain of pork produced in Laguna. Specifically, it described the chain actors involved in the marketing of pork produced in Laguna; described the processes involved in value addition in pork; evaluated the logistical support available for pork value addition in Laguna; determined the profitability of the different value adding activities for pork at the different stages in the value chain; and identified the problems encountered by the processors in their marketing of pork and suggest possible solutions to them to help improve the current situation. Descriptive analysis, value chain mapping, costs and returns analysis, and cost structure analysis were employed using primary data collected from 46 retailer/processors through personal interviews using pre-tested questionnaire. The key players identified in the study were retailer/processors and consumers. Retailer/processors were classified into three types, namely: Type 1, who focus on selling the raw pork only; Type 2, whofocus on selling the processed meat products only such as tapa, tocino and longganisa; and Type 3, who sell both the raw pork and the processed meat products. Consumers are the end users in the value chain of pork in Laguna. Most of the retailer/processors got their hogs from the major producing areas such as Batangas (26%) and Quezon province (30%). After purchasing the hogs, they are brought to the slaughterhouse where they are transformed into carcass or pork. Raw pork are transformed into different processed meat products such as tapa, tocino and longganisa. Processing pork is easy that mixing all the ingredients is the only thing done by the retailer/processors. Hogs were always available when needed as well as the ingredients used in processing pork products. The price of hogs did not change regularly at the farm level but they do at the dealer‟s level. Hogs were usually delivered, with the delivery cost made to appear as free but actually is being added to the price of the hog. The major source of price information was the other retailer/processors in the same market. But some still depended on the price set by the public market. Among the three retailer/processors, Type 3 gained the highest net returns and among all the processed meat products they sold, tocino gained the highest net return of Php18.84/kg followed by tapa with Php18.77/kg, and longganisa with Php17.96/kg. The lowest was for raw pork at Php14.42/kg. Lowest net return among the three retailer/processors was gained by the Type 1 retailer/processors at Php14.27/kg. The highest value added on pork was obtained by Type 2 retailer/processors for tocino which was Php18.87/kg. Next was the Type 3 retailer/processors for tocino with Php18.84/kg. The lowest value added was computed for Type 1 retailer/processors amounting to Php14.27/kg. The problems identified by pork retailer/processors include low sales, lack of capital, stiff competition with supermarkets and other big sellers, high stall rental fee and high price of hog from the dealer. In order to address the current issues faced by the retailer/processors, the following courses of action are recommended: perform value addition and adoption of packaging.

Language

English

Location

UPLB College of Economics and Management (CEM)

Document Type

Thesis

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