Thesis, Undergraduate (BS Agribusiness Economics) -- U. P. in Mindanao

This study sought to challenge the common thinking that the prices for tomato produce are not transmitted efficiently along the chain. Its locale was Barangay Kapatagan where farmers are believed to be generally price takers. Based on the experiences of these tomato farmers, this study aimed to (1) identify the factors that affected price in each market level (2) analyze price changes from different market levels, (3) examine the price premiums of each market intermediary through net margin analysis, (4) identify and analyze whether there are market inefficiencies in the tomato supply chain and recognize its implication and (5) provide recommendations for the improvement of the industry. The results of the study showed that prices are efficiently transmitted across the chain as indicated by the positive elasticities of price transmission. It also showed that farmers, wholesalers and retailers receive price premiums in producing and marketing tomato provided that prices are appropriate to compensate the costs incurred. It was also found out that bulk of the farmers' costs is accounted for by wooden crates and losses due to rejects. It is recommended that farmers practices to minimize loss. Also, it is suggested that farmers organize themselves into cooperatives in order to improve their bargaining power especially as it pertains to the pricing of their produce and to have access to financial needs for capital. Lastly, further studies on the analysis of net margins is recommended.