Marketing analysis of selected vegetables in Divisoria Market Manila, Philippines : an institutional approach / Ludenio C. Diana.

Thesis (BS - - Agribusiness) Cavite State University.

Includes bibliographical references.

College of Agriculture, Food, Environment and Natural Resources (CAFENR)

DIANA, LUDENIO CANTADA, " Marketing Analysis of Selected Vegetables in Divisoria Market, Manila, Philippines: An Institutional Approach." BS Thesis, Bachelor of Science in Agribusiness, Cavite State University, Indang, Cavite, October 1998. Adviser: Dr. Alice R. Tibayan - Valerio.

The study was conducted to analyze the marketing of selected vegetables grown in Cavite and transported in Divisoria market. This research work sought to describe the demographic and socio-economic characteristics of traders; evaluate the technical and pricing efficiencies in various marketing channels; determine their marketing practices; trace the product flow; and analyze the problems arising in every channel of trade. Data were gathered from June to December 1995 through personal interview and actual participation in the series of operations in product acquisition, product classification, transportation and selling activities. Efforts were done in tracing market activities from various vegetable plantation sites in Cavite to Divisoria market and to 11 selected retail markets in Metro Manila and nearby towns. A considerable task was observed in tracing the flow of vegetables to ensure that the vegetables purchased by the first buyer in the farm gate were the same commodities acquired by the second and third buyers and until they reached the retail level. Through this sustained effort, the computed cost and margin represents the actual figures in every channel. There were 64 vegetable trader-respondents. Majority of them were female (73.4%) with an average age of 40.5 years and an average trading experience of 13.9 years. The six types of traders identified were assembler-wholesaler, viajera-financier, wholesaler, wholesaler-retailer, retailer, and ambulant vendor. Viajeras (assembler- wholesaler and viajera-financier) were those traders who purchased vegetables from different public markets and barangays of Cavite and transported them in Divisoria market. These traders performed more activities than any other traders and spent longer time in purchasing and transporting. Some of their activities were sorting, grading, loading, and unloading. There were two to four types of middlemen involved in moving the vegetables before they reached the hands of the final consumer. The longest channel was farmer - viajeras - wholesaler - wholesaler-retailer – retailer - consumer while the shortest was farmer - viajeras - retailer – consumer. Evaluation of technical efficiencies suggests that handling was inefficient because there were excessive wastes anywhere in the marketing channel. These wastes were yielded by traditional marketing practices of vegetable traders and the type of packaging materials and transportation facility used in moving the vegetables from the farm to consumption centers. High marketing cost was incurred by assembler-wholesalers and viajera- financiers representing 30.94 percent of the total marketing cost. High marketing cost was observed on patola. Viajeras spent 45.39 percent of the marketing margin while wholesalers and retailers incurred 31.73 percent and 16.78 percent, respectively. The profit as percentage of margin obtained by viajeras, wholesalers, and retailers were 69.06 percent, 80.31 percent, 87.25 percent, respectively. The three most profitable vegetables traded and the traders' profit as percentage of margin for selected vegetables were: viajeras - papaya (78.29 %); ampalaya (73.91%) bell pepper (73.21 %); wholesaler - ampalaya (87.34%); upo (86.99 %); bell pepper (82.05 %); and retailers - bell pepper (93.82 %); papaya (90.75 %); ampalaya (86.32 %). The highest return on investment was obtained by wholesalers (35.36 %) followed by ambulant vendors (34.16 %), assembler-wholesalers (33.84 %), retailers (24.82 %), viajera-financiers (20.91 %), and wholesaler-retailers (14.87 %). The most frequently mentioned problems faced by vegetables traders were irregularity and seasonality of supply, lack of permanent stall; uncertainty of buyers; price fluctuation; delayed marketing due to heavy traffic; failure of the farmers to adhere with the agreement; and storms that destroy plantation. The solution offered to the problems is the establishment of a centralized market that will facilitate marketing of vegetables. The vital component of the centralized market is the trading post where all vegetables will be accommodated. vegetables will be redistributed to the retailers of centralized market. Selected Replacement of pick-up style vehicles in transporting and wooden boxes containing vegetables are also recommended to minimize if not totally eliminate the waste involved.

Submitted to the University Library 11/23/1998 T-1858