Focal buyer altruism and farmers' market channel choice in the value chain of cavendish banana in Santo Tomas, Davao del Norte / Nathalie Mica C. Mindanao; Exegesis Jedidiah N. Ebarle, adviser

By: Contributor(s): Material type: TextTextLanguage: English Publication details: 2019Description: 73 leavesSubject(s): Dissertation note: Thesis (BS Agribusiness Economics) -- University of the Philippines Mindanao, May 2019 Abstract: Relationship of actors in the value chain characterizes the performance of an industry. The Philippines is known as a top exporter of Cavendish banana globally. However, due to surging production and marketing costs, farmers ceased to grow bananas. In Brgy. La Libertad, Santo Tomas, vast land is owned by multinational companies (MNCs) which also provide inputs that Cavendish farmers need under contractual and leaseback agreements. Thus, the input provisions from the MNCs benefited the farmers through reducing the production costs. However, despite the inclusive business and the other benefits exhibited by MNCs majority of the contract growers shifted to individual growing. Farmers seek a market channel wherein transaction is liberalized. Current focal buyers uphold high bargaining power due to the capacity of exporting Cavendish banana. This study focuses on the downstream node, particularly the Cavendish banana farmers and focal buyers. Using Transaction Cost Approach, the study employs Partial Least Square Structural Equation Model in assessing the altruistic behavior of the focal buyers and to determine if it affects market channel choice among other factors by using Multinomial Logistic Regression Model. Key findings have shown that supplier dependency and focal buyer dependency significantly increase frequency. Respectively, uncertainty significantly decreases altruism. Results suggest that farmers are more likely to choose a market channel that provides input provisions, high buying price, and exhibits altruism. Given the results, focal buyers are more likely to exhibit altruism when farmers do not manifest uncertainties. Therefore, altruism of focal buyer reduces transaction costs of Cavendish banana farmers which attribute improvement to the value chain management of the Cavendish banana industry.
List(s) this item appears in: BS Agribusiness Economics
Tags from this library: No tags from this library for this title. Log in to add tags.
Star ratings
    Average rating: 0.0 (0 votes)

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

Relationship of actors in the value chain characterizes the performance of an industry. The Philippines is known as a top exporter of Cavendish banana globally. However, due to surging production and marketing costs, farmers ceased to grow bananas. In Brgy. La Libertad, Santo Tomas, vast land is owned by multinational companies (MNCs) which also provide inputs that Cavendish farmers need under contractual and leaseback agreements. Thus, the input provisions from the MNCs benefited the farmers through reducing the production costs. However, despite the inclusive business and the other benefits exhibited by MNCs majority of the contract growers shifted to individual growing. Farmers seek a market channel wherein transaction is liberalized. Current focal buyers uphold high bargaining power due to the capacity of exporting Cavendish banana. This study focuses on the downstream node, particularly the Cavendish banana farmers and focal buyers. Using Transaction Cost Approach, the study employs Partial Least Square Structural Equation Model in assessing the altruistic behavior of the focal buyers and to determine if it affects market channel choice among other factors by using Multinomial Logistic Regression Model. Key findings have shown that supplier dependency and focal buyer dependency significantly increase frequency. Respectively, uncertainty significantly decreases altruism. Results suggest that farmers are more likely to choose a market channel that provides input provisions, high buying price, and exhibits altruism. Given the results, focal buyers are more likely to exhibit altruism when farmers do not manifest uncertainties. Therefore, altruism of focal buyer reduces transaction costs of Cavendish banana farmers which attribute improvement to the value chain management of the Cavendish banana industry.

There are no comments on this title.

to post a comment.
 
University of the Philippines Mindanao
The University Library, UP Mindanao, Mintal, Tugbok District, Davao City, Philippines
Email: library.upmindanao@up.edu.ph
Contact: (082)295-7025
Copyright @ 2022 | All Rights Reserved