A marketing margin analysis of durian from Davao City : price transmission and net margins / Maria Monica Beatriz M. Cabrera ; Sylvia B. Concepcion, adviser.

By: Contributor(s): Material type: TextTextLanguage: English Description: xii, 125 leaves : illustrationsDissertation note: Thesis, Undergraduate (BS Agribusiness Economics) -- University of the Philippines, Mindanao Summary: In Region XI, the constant increase of supply of durian barely increased the per capita consumption in the country. If the increase in supply is not accompanied by an adequate increase in demand or consumption, the key players in the durian industry especially the farmers will be in a disadvantage position since they will be receiving lower farmgate prices. The increasing supply in 1990- 2007 reflected a decreasing farmgate prices. The retail prices of durian have been unstable during this period. In efficient markets, price changes in a particular marketing node should be reflected on the next marketing node. This implies that farmgate prices and retail prices should move along together. The durian industry in the region may have problems on its production and marketing systems. This study examines the performance of the durian supply chain and its efficiency through marketing margin analysis by determining cost structure and profitability of the durian supply chain, examining the actual marketing margins received by every key player in the durian supply chain, identifying the effects of the responsiveness of prices in the industry through price transmission elasticity; and identifying problems faced by the durian supply chain. To examine the problem on uneven price distribution along each marketing node in the chain, net margins and price transmission analysis were used. The value chain analysis depicts the general value chain of durian in Calinan, Davao City which showed how the process of marketing durian operates and that most of them are already doing their own means of distributing durian not only locally but also nationally, specifically in Metro Manila. There are emerging links to retail in supermarket which were not present in the marketing of durian over the past few years. The specific value chain analysis and the net margin case studies identified that retailers (downstream level) profit more than the farmers (upstream level) which leaves the latter at a disadvantage. Moreover, based on the net margin analysis, the best chain would be to market the produce to Metro Manila or other parts of the country since it will gain more net margins but the costs incurred will be higher. Therefore, cooperation among growers must be done to have fair distribution of costs and increase the profits of the growers. Futhermore, price transmission analysis conducted in both Region XI and Davao City, showed perfect transmission of prices in the wholesale to retail chains. However, the marketing costs are also inefficiently transmitted in the chains. The findings suggest that price increase in the retail market is not being passed down to durian farmers.
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Thesis University Library Non-Circulation LG993.5 2009 E2 C32 (Browse shelf(Opens below)) Available 3UPML00032816
Thesis University Library Non-Circulation LG993.5 2009 E2 C32 (Browse shelf(Opens below)) Available 3UPML00032815
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In Region XI, the constant increase of supply of durian barely increased the per capita consumption in the country. If the increase in supply is not accompanied by an adequate increase in demand or consumption, the key players in the durian industry especially the farmers will be in a disadvantage position since they will be receiving lower farmgate prices. The increasing supply in 1990- 2007 reflected a decreasing farmgate prices. The retail prices of durian have been unstable during this period. In efficient markets, price changes in a particular marketing node should be reflected on the next marketing node. This implies that farmgate prices and retail prices should move along together. The durian industry in the region may have problems on its production and marketing systems. This study examines the performance of the durian supply chain and its efficiency through marketing margin analysis by determining cost structure and profitability of the durian supply chain, examining the actual marketing margins received by every key player in the durian supply chain, identifying the effects of the responsiveness of prices in the industry through price transmission elasticity; and identifying problems faced by the durian supply chain. To examine the problem on uneven price distribution along each marketing node in the chain, net margins and price transmission analysis were used. The value chain analysis depicts the general value chain of durian in Calinan, Davao City which showed how the process of marketing durian operates and that most of them are already doing their own means of distributing durian not only locally but also nationally, specifically in Metro Manila. There are emerging links to retail in supermarket which were not present in the marketing of durian over the past few years. The specific value chain analysis and the net margin case studies identified that retailers (downstream level) profit more than the farmers (upstream level) which leaves the latter at a disadvantage. Moreover, based on the net margin analysis, the best chain would be to market the produce to Metro Manila or other parts of the country since it will gain more net margins but the costs incurred will be higher. Therefore, cooperation among growers must be done to have fair distribution of costs and increase the profits of the growers. Futhermore, price transmission analysis conducted in both Region XI and Davao City, showed perfect transmission of prices in the wholesale to retail chains. However, the marketing costs are also inefficiently transmitted in the chains. The findings suggest that price increase in the retail market is not being passed down to durian farmers.

Thesis, Undergraduate (BS Agribusiness Economics) -- University of the Philippines, Mindanao

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