Philippine E-Journals

Veto players, nonveto players, TATF

Rodel R. Real | Larry N. Digal

 

Abstract:

Due to its wide range of uses and profitability, calamansi or calamondin
(Citrofortunella microcarpa) is considered a high-value crop of the Philippines.
But while there are many studies on the various uses of calamansi parts and
technologies developed to help farmers, there is a dearth of studies on the
structure and operation of the calamansi marketing chain and analysis of
marketing margins of producers and other intermediaries. Te present study
aimed to examine marketing margins to understand the marketing system
of the calamansi industry in Region XI, Southern Philippines, and identify
opportunities, challenges, and solutions to improve the chain. A price
transmission model was estimated using secondary data and supplemented by
calculation of net margins for farmers, wholesalers, processors, and retailers
using primary data collected from key informants. Results show that farm,
wholesale, and fuel prices significantly explained changes in selling or retail
prices. Price transmission elasticity is higher from farm to wholesale than
from farm to retail, which implies that changes in farm prices are reflected
more in wholesale than retail prices. Farmers received better margins even
though calamansi is always subjected to seasonality of prices. Processors
and wholesalers also earned positive net margins, but some retailers incurred
negative net margins because of incidence of shrinkage/wastage. Given that
this occurs very rarely, and with better management, retailers can still expect to
gain positive net margins. Major actors in the chain may benefit by effectively
managing costs, particularly post-production and wastage costs. A package of
assistance that includes technology improvement, access to market, and credit
is necessary to help farmers, as well as intermediaries, enhance productivity
and manage costs to improve their performance in the chain.