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

The main objective of the study was to uncover the inefficiencies that happen along each node of the chain. Specifically, this study aims to identify the changes in the structure of the lettuce supply chain, determine the marketing costs that each actor of the chain requires, calculate net marketing margins of the supply chain of all the actors along the chain, distinguish if costs were transmitted efficiency along the chain and explore implications of the results of the study. The methods used in the study were the price transmission analysis that evaluates the efficiency of transmission of prices up to the retail level and the net margins analysis that provides an idea whether each actor of the chain receives the premium that they deserve. The results of the study showed that prices at the farm level were transmitted to the wholesale level; wholesale prices were transmitted to the retail level; farm prices were not efficiently transmitted to the retail level. The farmers who remained engaged in traditional markets had lower yields compared to those who had direct transactions and those who catered to the institutional markets. The study also found out that with the presence of the wholesaler, farmers were left with no other choice but to be price takers. Direct transactions between the buyer and the farmer created more benefit for the farmer as prices were arranged at a pre-determined price. Shelter houses created more yield and profit for the farmers since it maximizes the volume produced. Clustering strategy was adopted in the industry so as to supply the required volume of the institutional markets and minimize the costs entailed by an individual farmer. With the clustering strategy, under the facilitation of Northern Mindanao Vegetable Producer's Association and the assistance of government and non-government units, farmers were able to participate in the marketing activities and develop a direct relationship with institutional buyers. The results may be of help to the Local Government of Bukidnon in their policy making for the improvement and development lettuce industry.