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

The value chain and net margins analyses were done in order to map and identify the components of the particular seaweed processor chain analyzed in this study and assess the distribution of benefits among the actors along the chain. Supply analysis was also utilized in order to determine the factors that affect seaweed production and supply on peak and lean seasons. Results show that dicers, the one who assumes the collection of seaweeds from the farmers, gained the highest net margins for both the peak (January-June) and lean (June-December) seasons. Meanwhile, only the farmers gained negative net benefits during lean months while other players maintained positive margins. In particular, on peak months, although players along the chain, especially the farmers gained positive net margins, it is not safe to assume that they are better-off in relation to the dicers and the consolidator since farm level net margins is computed per cropping cycle (36 days on the average) while for the dicers and the consolidator, computed net margins were on a weekly basis. At the farm level, labor costs made up the bulk of the total cost while the cost of manpower and shipment cost was the relevant cost item for the dicers and the consolidator, respectively. Results of the supply analysis showed that only the farm size, among own price and total cost, had statistically significant relationship with the quantity of seaweeds supplied. Thus, increased efficiency at the farm level and organizing the farmers into functional groups or clusters might result to higher net margins earned. Furthermore, increases government support and subsidies would help the farmers maximize its production inputs, in particular the farm size, which was found out to be a statistically significant factor in determining the quantity of seaweeds supplied in this particular chain.