Status, prospects and problems of banana chips processing and marketing in Oriental Mindoro

Date

2006

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Melgar, Carolyn V.

Abstract

Banana chips has a big potential in the local and international market as it is considered to be a healthy snack. Assessing the status, problems and prospects of banana chips processing and marketing in Oriental Mindoro will help identify its problems and suggest recommendations in order to attain viability and competitiveness of the enterprises involved in banana chips processing and marketing in the domestic and international market. The objectives of the study are to: 1) present the structure, conduct and performance of banana chips production in Oriental Mindoro; 2) pinpoint the problems of the enterprises involve in banana chips processing processing and marketing; 3) identify investment opportunities and/or development entry points for entrepreneurs and government and/or non-government organizations, respectively; 4) formulate recommendations on how to improve the status of the banana chips production and marketing in Oriental Mindoro. There are two types of research designs used in the study. The first was descriptive research design that was used to described the current performance of banana chips and marketing in Oriental Mindoro. On the other hand, exploratory research design was used to assess the factors that affected the banana chips processing and marketing in the area. The primary data were collected through interviews with the processors, retailers, and customers. The author also conducted observation on the operation of some of the enterprises in order to analyze methods of production. Secondary data, however, was collected from unpublished special problems, books, magazines, and literature at UPLB Main Library, CEM Library, ISSI Library (UP Diliman), PCCARD, NSO, and BAS. Analysis of the Porter's Five Forces Model of Competition revealed that suppliers bargaining power and threat of entry is low. Suppliers cannot dictate the price of saba because of the wide availability of the commodity in the province. On the other hand, sources of financing, presence of a dominant firm and access to distribution channel hinders the potential processors from entry in the banana chips processing and marketing. The rest of the forces such as bargaining power of buyers, threat of substitute and intensity of rivalry among existing enterprises are found to be high. The bargaining power of buyers is high because banana chips of each enterprise is not highly differentiated. The threat of substitute is also high because of the wide availability of substitute products such as cassava chips, potato and junk foods. The intensity of rivalry was also high because the enterprises are offering the same product with little distinction. the problems in banana chips processing and marketing was identified in order to analyze the factors that beset the enterprises. The problems mostly encountered by the banana chips processors are: 1) labor intensive processing 2) fluctuation in the price of banana 3) insufficient supply of banana during calamities 4) poor quality of saba used in processing 4) inefficient and obsolete processing equipments 5) short shelf-life of banana chips 6) inconsistent support from the government 7) limited sources of financing for whole year operation 8) lack of management competencies and skilled workers 9) inadequate promotional activities and tools and 10) difficulty in developing attractive and suitable packaging for the product. Banana chips processing can be a promising industry when the problems of production and marketing the product is aadressed. It can boost the fruit processing industry in the province of Oriental Mindoro, source of income for the processors, and a sure market for banana farmers. In order to attain the viability of competitiveness of banana chips processing in local and international market, the following recommendations were suggested: 1) develop a more attractive and competitive packaging 20 process banana chips with different flavors 3) set an agreement with banana farmers 4) improve quality of the product chips through monitoring of the product during production, assure product uniformity, and proper method of processing 5) take advantage for the high demand for the product abroad and increasing health conscious buyers 6) establish organization of banana chip processors 8) attend seminars and trainings provided by the government such as Good Manufacturing Practice (GMP) in food processing, basic HACCP courses, food testing and food labeling 9)hire skilled and productive labors 10)Record all the transactions to monitor cash flows.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

LG 993 2006 M17 B35

Document Type

Thesis

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