Comparative economic analysis of coffee production in Amadeo and Indang, Cavite, 2016

Date

6-2016

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Ma. Eden S. Piadozo

Abstract

The study was conducted in Quezon, specifically in the municipalities of Tiaong, Candelaria, Padre Burgos, Catanauan, Mulanay and Gumaca to analyze the supply/value chain of coconut coir net industry despite being a top coconut producing area in the Philippines as well as to address poverty that exist among the farmers and local citizens of Quezon. The UNIDO Approach was used as a basis for analyzing the value chain of the product. The key players identified in the study were the husk collectors, decorticators, groups or cooperatives of twiners and weavers, manufacturer-consolidator and trader-processor. These actors are involved in performing the value-adding activities to transform the main input, coconut husk into final form, coconut coir nets. Additionally, the Business Development Service (BDS) Providers that support the coconut coir net industry were also identified and classified as key players in the chain. Different product flows were determined and were used to analyze the supply value chain of coir nets in Quezon. The profitability and efficiency of producing and marketing the product were assessed based on the costs and returns, returns on investments, marketing margin and value addition. Results showed that converting coconut husks into coir nets is profitable since all of the actors in the chain gained positive net returns on investment. Among the actors, the consolidator was found to have highest value added to the primary input due to the high price it set for the coconut coir nets marketed. The level of competition was also evaluated using the Herfindahl Hirschman Index and it was found out that monopoly exists in the coir net industry. This is because the two main companies engaged in the production and marketing of coir nets in Quezon namely, Pederasyon ng Magsasaka at Mangingisda ng bayan ng Padre Burgos (PMMPB) and Cocos Nucifera Pacific Corporation (CNPC) are the only suppliers of the product to the mining companies and to DPWH, respectively. Furthermore, based on SWOT Analysis, it was found out that one of the barriers that curtails the development of the industry is the low quality of coconut coir nets produced by the processors in Quezon. This is mainly due to the obsolete equipment used in production. All these results were used as a basis for recommending possible upgrading strategies to further develop the industry as well as to improve the performance of the key players identified in the supply/value chain. Quality standardization is one of the major actions that should be implemented among the processor of coconut coir nets for them be able to sell their product no only to the local consumers but also to other countries. Moreover, performing value addition was found to be a very helpful tool in alleviating poverty in the area since it provides employment opportunities for the members of the society. In fact, today, about 500 jobs were generated by the coconut coir net industry in Quezon.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2016 A14 P474

Document Type

Thesis

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