Comparative analysis of the value chains of virgin coconut oil in Laguna and Quezon, 2016

Date

6-2016

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Bates M. Bathan

Abstract

The study compared the value chains of virgin coconut oil (VCO) in Laguna and Quezon. Specifically, the study described VCO production and identified participants and their roles in its value chain. The value added at each stage of the chain and the profitability of each value-adding activity were also compared. The study also assessed the marketing efficiency of the value chain of VCO, identified problems in the VCO industry, and provided recommendations to these problems. Eighteen VCO processors were chosen using purposive sampling while 44 coconut farmers, five assembler wholesalers of coconut, one assembler-wholesaler of VCO, and eight VCO retailers were traced from the processors. Descriptive analysis, profitability analysis and value chain analysis and marketing efficiency were used to analyze primary data collected from the respondents. The study showed that in Laguna, small-scale processors using the cold pressed ANH-disc centrifuge separation method generated the highest profit. Processor cum wholesaler retailers in Quezon who use the cold pressed disc centrifuge and natural separation methods were the market participants who gained the highest profit. In terms of value-added, the channel in Laguna and Quezon which consisted of farmer, assembler wholesaler of coconut, processor cum wholesaler retailer, and retailer showed the highest value added. It was also found to be the most efficient of all channels. On the contrary, the lowest value added was observed in the channel that consisted of farmers, assembler-wholesaler of coconut, and large scale processors. It was also found to be the least efficient channel. Assessment of the marketing efficiency of the value chains of VCO in the two provinces showed that the Quezon VCO value chain was, more efficient than the Laguna VCO value chain. The problems encountered by the farmers included the risk involved in waiting for fresh coconut to mature and low quality of matured coconut produced. On the other hand, the marketing problems identified were the lack of local markets outlets for VCO, inability of the processors to meet export demand for VCO, difficulty with the compliance of the processors to the requirements of FDA, inconsistently of the quality of VCO produced, and the pricing competition with larger VCO firms. To address these problems, coconut farmers could perform production planning of fresh and mature coconut, link the VCO processors directly to the coconut farmers, adopt the fresh wet cold pressed AND technology, follow the local standard for VCO, form a VCO cooperative, and conduct more trainings and seminars on VCO processing, distribution, and export.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2016 A14 C363

Document Type

Thesis

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