Value chain analysis of selected dairy products in CALABARZON, 2010

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 dairy farmers sold an average of 47 liters of raw milk per day while the processor processed 2000 liters of fresh milk, 100 liters of choco milk and 150 pieces of 200-gram white cheese. Profitability analysis was done to determine the most profitable dairy product to produce. Results revealed that fresh milk gave the highest profit among the three with a net return of P13.28/liter for processors and P22/liter for retailers. Value addition for each market participant was also analyzed. Each participant had a different value added depending on the cost incurred during the production and post-production phases. Results showed that highest value added was gained by the retailers amounting to P22/liter for fresh milk, P21/liter for choco milk and P19/200-gram of white cheese. The breakdown of consumer’s peso and efficiency of marketing channels were evaluated. Efficiency of marketing channels was measured by comparing the percentage of marketing costs and profit to the marketing margins. The results showed that neither the processor nor the retailer is efficient in pricing dairy products since they both have high profit as percentage of marketing margin with 88.4% for fresh milk, 88.86% for choco milk and 88% for white cheese and 85% for fresh milk, 85% for choco milk and 87% for white cheese respectively. The problems of producers were the high cost of input, low yield and limited capital for production and expansion needs. The processor on the other hand, did not encounter any problem in processing the products. Meanwhile, the retailers faced the seasonality of purchasing dairy products. Based on the results of the study, the following recommendations were formulated: perform value addition; promote more transparency in the price formation process at the farm level; and capital assistance for the farmers.

Language

English

Document Type

Thesis

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