Socio economic determinants of the choice of marketing arrangement of rice in Bataan, 2010

Date

4-2012

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Salvador P. Catelo

Committee Member

Arvin B. Vista

Abstract

This study was conducted to analyze and determine the socio-economic determinants of the choice of marketing arrangement of rice farmers in Bataan in 2010. Two types of marketing arrangements were present in Bataan namely cooperative and private marketing. Cooperative marketing is defined as an organization or group of farmers who help each other in marketing their produce. Meanwhile, private trading pertains to a business operation wherein individual farmers market their own produce. Marketing arrangements were evaluated by describing the terms and services they rendered. Private traders and cooperatives had their own marketing services which included hauling and transport facility, storage facility, provision of price information, market linkage, financial assistance and input sourcing and lastly, volume requirement. Meanwhile, marketing was characterized by the following: mode of procurement which was either delivered or picked-up, mode of payment which was either cash or installment, and lastly, mode of transportation which was either owned or hired jeepney, truck, tricycle and etc. The study analyzed the marketing costs and net selling price under each marketing arrangement. On the average, it was found out that rice farmers in cooperative marketing received a price PhP 15.26/kg higher than those directly marketing their produce. Moreover, these farmers incurred much lower marketing costs. The PhP 0.73/kg differences between the net selling prices received under the two marketing arrangements was found out to be statistically significant. However, in terms of marketing costs, the difference was not statistically significant. The difference may imply that rice farmers could be more beneficial when marketing to cooperatives. Based on the binary logit regression estimation, price of rice, credit availability and farmer’s membership in organization significantly affected the farmer’s choice of marketing arrangement. All of these variables had a positive relationship with the farmer’s choice of marketing arrangement. It was found out that as the price of rice increased, credit became more available and farmer increased his memberships in business-related organization, the probability that he would market his produce through cooperative marketing would also increase. The main problems by rice farmers included low and unstable price and lack of assistance and support from the government. The poor condition of Bataan rice farmers in their marketing system urged the implementation of a strict regulatory measure, proper information dissemination and access to credit to improve the quality and quantity of palay so that the price would increase and become stable in the market. The recommendations above do not mean that the government alone would make all the investment in order to provide a beneficial rice marketing environment for rice farmers. Important participants in the marketing system such as rice farmers should also give and contribute to the pie in order to achieve welfare. SOCIO-ECONOMIC DETERMINANTS OF THE CHOICE.

Language

English

Call Number

Thesis

Document Type

Thesis

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