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

This study was conducted to examine and determine the marketing margin as one way of assessing the marketing system of the calamansi industry in the Philippines, particularly in Region 11. As such, marketing margin analysis presents the marketing cost structure that traces the different activities performed by the farmers, the wholesalers, the retailers, and the processors. The analysis was done through the estimation of price transmission model and the calculation of net margins. In the modeling part of the study seven variables, apart from farm, wholesale, and retail prices, were used. Through the use of monthly secondary data from 2003-2006, the elasticity of price transmission (EPT) is generated. In the net margins side, primary data were collected through personal interview participated by the four marketing players, who are sourcing out from the city of Tagum and the municipality of Asuncion in the province of Davao del Norte. Results show that farm, wholesale and unleaded prices are the only significant variables, but the models are also highly significant as there were no problems of multicollinearity and autocorrelation occurred in the process of estimation. While farm-to -retail model has the least EPT, the farm-to-wholesale model has shown the highest EPT by 93% price transmission. In the farm-wholesale-retail chain, wholesalers are the ones better off as they could generate positive net margins for both regular and peak seasons. Processors, on the other hand, can also be said as the most well off because even if they performed more production and marketing activities, they can still manage to earn positive net margins. With regards to the farmers who are earning negative margins during the regular seasons, they should really study how to manage their labor expense by not allowing too many harvesters, as this contributes the largest component to the total cost.