Thesis (BS Agribusiness Economics) -- University of the Philippines Mindanao, May 2019

Cavendish bananas are one of the most produced fruits in the Philippines which are commonly consumed fresh or boiled in the local and international market. Aside from that, banana catsup is one of its byproducts, which is a Filipino-made commodity. Banana catsup is locally used as a condiment which has been an essential part of the Filipino food culture. However, with the presence of its many substitutes such as tomato catsup, the demand for banana catsup was estimated using the Almost Ideal Demand System (AIDS), to identify what variety of catsup (banana or tomato) is mostly preferred by the consumers. A point of sale (POS) data from six supermarkets located in the rural and urban areas of Davao Region was utilized. Specifically, the brands of banana catsup namely Queen, Papa, and UFC, and the brand of tomato catsup which is Del Monte were identified as substitutes. Based on the estimations, the own-price elasticity showed that UFC is the most sensitive to the changes in its own price, while the cross-price elasticity indicates that Del Monte is highly substitutable to Queen, Papa, and UFC. For the expenditure elasticity, the estimations showed that Papa carries the highest value among the brands. Moreover, the generated consumption and weekly budget share trends indicate the consumers from urban areas prefer the Queen brand. Therefore, it is recommended that manufacturers and retailers could increase their selling price for Papa, and Queen to generate better profit, but bit fir UFC since its highly price elastic.