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

The Philippine Cavendish banana industry had its expansion in terms of production and export volumes worldwide. It has been dominated by large multinational companies. For the past years of operation, the banana for export industry had been drawn to quite a number of political restructuring and social turmoil like the implementation of the Comprehensive Agrarian Reform Program. (CARP) that significantly affected marketing and production mechanisms. However, multinational companies were able to sustain the growing export demand through engaging on growership and other alternative venture agreements like lease and leaseback. Since demand for export grade bananas from the Philippines thoroughly expanded, price transfer between the Philippines and one of its main export markets, China was tested through the elasticity of price transmission test. Results show that transmission of prices between the two markets is quite efficient. It may not be perfectly transmitted but for the most part, prices in both markets have been responsive. Reflecting the costs considered in the test for price transmission at farm level operations, a net margins analysis was conducted. It was attested further that banana growing is labor intensive. Despite significant contributions of labor to total cost allocation for plant and fruit maintenance, like fertilizers and pesticides, had the largest contribution still.