Market structure, conduct and performance of copra marketing system in selected towns of Bicol Region / by Alice R. Tibayan

By: Material type: TextTextLanguage: English Publication details: Los Banos, Laguna : University of the Philippines, 1983.Description: 147 pages : illustrations ; 28 cmContent type:
  • text
Media type:
  • unmediated
Carrier type:
  • volume
Subject(s): DDC classification:
  • 634.61  T43 1983
Online resources: Abstract: TIBAYAN, ALICE ROMERO, University of the Philippines at Los Banos, March 1983. Market Structure, Conduct and Performance of Copra Marketing System in Selected Towns of Bicol Region, Major Professor: Dr. Narciso R. Deomampo This study was an attempt to evaluate the conduct and performance of copra marketing system in relation to its market Structure. It was found out that the copra market performs very imperfectly. There are relatively numerous sellers faced with only few buyers; a difficulty of entry and exit into the industry; and lack of knowledge about the market. The supply and demand of copra and coconut oil in the world market are basically the price determinants of copra in the domestic market. Export taxes and CCSF levy were also significant factors influencing the prices of copra in all marketing levels. Pricing, therefore, at the lower levels is not a decision-variable, hence, actual prices were independent of total costs. At the oil mill sector, price was dictated by the Legaspi Oil Mill through the United Coconut Oil Mills (UNICOM) . The copra trading system is composed of five channels producers, barrio agents, assembler/wholesalers, wholesalers and oil miller, The longest channels were from copra producers to barrio agents to assembler/wholesalers, to wholesalers and finally, to the oil miller. In transporting the products, inadequate transportation facilities was a tremendous problem encountered by farmers and some traders. Poor roads and lack of means of transport oftentimes result to higher marketing costs and lower net income of farmers, and in general to marketing inefficiencies. Transport cost accounted for a very substantial part of total marketing costs in all levels. All marketing intermediaries incurred an average cost of 263.69/100 kgs. to perform all marketing operations. The highest profit was observed at a flow where four stages are involved - farmers, assembler/wholesalers, wholeSalers and oil miller. The assembler/wholesalers had the least profit margin followed by wholesalers and the highest margin was obtained by the barrio agents, The profit accounted for 55% of gross margin while 45% was alloted to marketing costs. 7 Generally, the wholesalers earned the highest net income from copra, followed by the assembler/wholesalers while the lowest net income was received by the barrio agents. On the contrary, the highest return on capital was obtained by the barrio agents while the assembler/wholesalers earned the least. The size of profit of the farmers was found to be influenced by the quantity of copra sold, marketing costs, and dummies for type of outlet, province and type of tenure. The size of Profit of the barrio agents, on the other hand, was only affected by marketing costs. The town traders’ profit, however, was found to be influenced by marketing costs, dummy for the type of outlet and province dummy. The size of profit of the farmers and traders was significantly influenced by marketing costs, experience in business, type of outlet, geographical location and type of tenure. Since farmers and traders are price takers, efficient marketing management is needed to achieve higher return.
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Theses / Manuscripts Theses / Manuscripts Ladislao N. Diwa Memorial Library Theses Section Non-fiction 634.61 T43 1983 (Browse shelf(Opens below)) Link to resource Room use only T-1096 00002126

Thesis (M.S. - - Agricultural Economics) University of the Philippines, College, Laguna.

Includes bibliographical references.

TIBAYAN, ALICE ROMERO, University of the Philippines at Los Banos, March 1983. Market Structure, Conduct and Performance of Copra Marketing System in Selected Towns of Bicol Region, Major Professor: Dr. Narciso R. Deomampo

This study was an attempt to evaluate the conduct and performance of copra marketing system in relation to its market Structure. It was found out that the copra market performs very imperfectly. There are relatively numerous sellers faced with only few buyers; a difficulty of entry and exit into the industry; and lack of knowledge about the market.

The supply and demand of copra and coconut oil in the world market are basically the price determinants of copra in the domestic market. Export taxes and CCSF levy were also significant factors influencing the prices of copra in all marketing levels. Pricing, therefore, at the lower levels is not a decision-variable, hence, actual prices were independent of total costs. At the oil mill sector, price was dictated by the Legaspi Oil Mill through the United Coconut Oil Mills (UNICOM) .

The copra trading system is composed of five channels producers, barrio agents, assembler/wholesalers, wholesalers and oil miller, The longest channels were from copra producers to barrio agents to assembler/wholesalers, to wholesalers and finally, to the oil miller. In transporting the products, inadequate transportation facilities was a tremendous problem encountered by farmers and some traders. Poor roads and lack of means of transport oftentimes result to higher marketing costs and
lower net income of farmers, and in general to marketing inefficiencies.

Transport cost accounted for a very substantial part of total marketing costs in all levels. All marketing intermediaries incurred an average cost of 263.69/100 kgs. to perform all marketing operations. The highest profit was observed at a flow where four stages are involved - farmers, assembler/wholesalers, wholeSalers and oil miller. The assembler/wholesalers had the least profit margin followed by wholesalers and the highest margin was obtained by the barrio agents, The profit accounted for 55% of gross margin while 45% was alloted to marketing costs. 7 Generally, the wholesalers earned the highest net income from copra, followed by the assembler/wholesalers while the lowest net income was received by the barrio agents. On the contrary, the highest return on capital was obtained by the barrio agents while the assembler/wholesalers earned the least.

The size of profit of the farmers was found to be influenced by the quantity of copra sold, marketing costs, and dummies for type of outlet, province and type of tenure. The size of Profit of the barrio agents, on the other hand, was only affected by marketing costs. The town traders’ profit, however, was found to be influenced by marketing costs, dummy for the type of outlet and province dummy.

The size of profit of the farmers and traders was significantly influenced by marketing costs, experience in business, type of outlet, geographical location and type of tenure. Since farmers and traders are price takers, efficient marketing management is needed to achieve higher return.




Submitted to the University Library June 18, 1990 T-1096

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