Supply chain analysis of beef in Batangas, 2011

Date

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 study traced and analyzed the supply chain of beef in Batangas. It aimed to identify and describe the supply chain participants in the beef industry of Batangas; describe the marketing services and logistics employed within the supply chain of beef; determine the efficiency of the marketing system in support of the beef industry of Batangas; trace the marketing channel and geographic flow of the commodity; and identify the problems and issues in the industry and come up with appropriate recommendations that will address each issue. Data gathered through personal interviews with the 32 market intermediaries were subjected to: descriptive and cost and returns analyses, return on operating costs (ROC) and marketing margins were also analyzed.

The 32 market intermediaries consisted of 5 beef cattle dealers, 7 wholesaler- retailers, and 20 retailers. Live animals are brought by the market intermediaries directly

from Padre Garcia Livestock Auction Market although some wholesaler-retailers and retailers bought from beef cattle dealers either as live animal or in carcass form. The total saleable beef in Batangas per month, as converted into its carcass equivalent, was 62,400 kilograms, 67% of which were sold by the retailer-respondents while the rest were sold by the wholesaler-retailers. Based on the costs and returns analyses, all market intermediaries were profitable with relatively high ROC. The retailers were found to be the most profitable showing the highest net return (Php34.63 and Php74.34 from both sources) per kilogram of beef and an ROC from sourcing from the dealers and auction market of 18.13% and 49.15%, respectively. Cost efficiency was measured by averaging the ROCs at each level by the two chains to get the percent differences from the 15% opportunity cost of capital and assumed percentage risk. The first chain (BCD-WR-R) incurred a percent difference of 42.91% while the second (LAM-WR-R) got 120.97% implying inefficiency due mainly to the relatively large deviation from the opportunity cost. Some of the issues identified were: the non-conformity to NMIS guidelines carcass trading and transfer restrictions of the market intermediaries; poor meat inspection procedures by the Local Government Units; and prevalence of bribery and collection of illegal fees to pass the clearance for meat transport outside the province. The following were the recommendations forwarded: promote proper transport procedures for meat among the market intermediaries of beef; continuous institutional evaluation and monitoring by the Local Government Units of the abattoirs and Locally- Registered Meat Establishments (LRMEs); and National Meat Inspection Services personnel evaluation.

Language

English

Document Type

Thesis

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