An analysis of cutflower trading in Dangwa, Sampaloc, Manila

Date

2010

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nimfa Derige-Montes

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Abstract

The study was conducted to describe and analyze the trading operation of the cutflowers in Dangwa, Sampaloc, Manila. It aimed to identify and characterize the operation of each group of industry players and how they affect other players; evaluate the structure, conduct, performance and business environment prevailing in the selected area at a particular time; pinpoint the problems, weakness and gaps in the industry in the selected area; and identify investment opportunities, development entry points and other recommendations for the improved market operation in the selected area. A total of 59 respondents were identified and interviewed through convenient sampling. The respondents are situated along the Dimasalang Road and minor streets of Dos Castillas. A total of 29 respondents came from wholesale street, 26 are from retail street of both minor street of Dos Castillas. The four respondents came from Dimasalang Road. A descriptive research design was employed to present the current situation and business performance of the fresh cutflower enterprises as well as the whole Dangwa cutflower market. Additionally, similar research design was also used to show and discussed the problems, prospects and environmental forces affecting the whole market. Moreover, Michael Porter’s Five Forces of Competition Model, SWOT Analysis and Value Chain Analysis were used to analyze the whole market. The products enterprises sold are fresh cutflowers. Anthurium, chrysanthemum, gladiola, orchids, roses, aster, sampaguita, heliconia, gerbera, statice, carnation, misty blue, sunflower, casa blanca, wonder white, astromeria, stargazer and others are the varieties of cutflowers they offer. Each differs in color, size, smell and length. For the simplicity of the study, only the major cutflowers is the focus which includes anthurium, chrysanthemum, gladiola, orchids and roses. Cutflowers are grown in different areas in the country yet each cutflower has specific locations which they are grown. In case of the Dangwa market, the largest supplier of major cutflowers is the province of Benguet specifically the locality of La Trinidad. The growers operate in small scale and are Benguet residents who plants cutflowers as their main source of income in replacement for vegetable production. The produce of these farmers are brought to Dangwa market to be sold in wholesale. Farmers, wanting to have a sure market for their products, integrated their business by having their own wholesale enterprises in Dangwa. The cutflowers are distributed in styrofoam boxes through trucks which entails farmers low transportation cost. In the Dangwa market, there are many types of ornamental and other related businesses such as fresh cutflower, cutfoliages, flower arrangement, live pots and flower arrangement accessory businesses. There are also different types of trade like wholesale, retail and wholesale-retail. The wholesale trade is the one that dominates the market. There are specific enterprises which engage in wholesale trade that are clustered in one minor street of Dos Castillas. Enterprises commonly offer one or few varieties of cutflowers such as anthurium, chrysanthemum, gladiola, orchids and roses. It is cheap to buy flowers in these enterprises yet the quality is not outstanding. The main market for these enterprises is institutional buyers like flowers shops. The market has also retail enterprises which is located in the other minor street of Dos Castillas. These enterprises do a wider operation than the wholesale enterprises since they also do wholesale, flower bouquets and arrangements and flower arrangements for special occasions. They offer a wide variety of cutflowers ranging from the locally produced to the imported cutflowers. With their operation, the products they offer are higher than that of the wholesale enterprises. The target market for these enterprises includes high end commercial flower shops, events coordinators and high income earning individuals. In the accomplished tools for analysis, it is identified that the industry is still competitively attractive. Up until now, there are businesses related to ornamentals specifically cutflowers which are establishing in the market. This is brought by the increasing demand for cutflowers. There are also identified problems in the market which concerns the quality aspect of the cutflowers, financial capability, financial credit and availability of reliable market information. The entry points identified were establishment of trade enterprise since the market can still accommodate entrants. There could also be an opportunity for cutflower related- products in the market to be successful like cutfoliages and flower arrangement accessories. A development entry point could be in the form of rental cold storage and refrigerated vehicles. With this, the quality of the cuitflowers can be maintained. The rural banks could find an entry point for giving loans which the enterprises take in order to up-scale their operations.

Language

English

Document Type

Thesis

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