Philippine E-Journals

Supply Chain Performance and Market Dynamics of Native Chicken Production in Davao Oriental: Challenges, Opportunities, and Sustainability Strategies

Cheryll L. Bautista

Discipline: management studies

 

Abstract:

The native chicken industry in Davao Oriental contributes to local food security and rural livelihoods, yet inefficiencies in the supply chain limit its growth. This study evaluates the performance of the supply chain in native chicken production, focusing on key players, logistics, market flow, and economic viability. A survey was conducted among 60 native chicken raisers, 12 buyers, and four traders in the City of Mati, Davao Oriental. Results indicate that native chicken production remains predominantly backyard-based, with low input and high resilience. Key challenges include inadequate transportation infrastructure, weak market linkages, and price volatility. The average farm-to-market distance is 5.7 kilometers, primarily covered by motorcycles, leading to bird mortality and quality concerns. Market price disparities were evident, with traders earning an average profit margin of 40.43% per kilogram, while institutional buyers, particularly restaurants, achieved a margin of 66.89%. Despite these inefficiencies, profitability analysis confirms the financial viability of native chicken production, with opportunities for market expansion. The study recommends targeted interventions to enhance productivity, improve transportation and storage infrastructure, and establish stronger market linkages, ensuring a more sustainable and competitive native chicken industry.