WORKING PAPER DEPARTMENT OF AGRICULTURE AND JAPAN INTERNATIONAL COOPERATION AGENCY Formulation Team on the Drafting of the Strategic Agribusiness Development Plan COMMODITY SITUATION REPORT: CALAMANSI Prepared by JOSE ULYSSES J. LUSTRIA November 2009 ____________________ Mr. Lustria is OIC-Chief, Public Investment Program Division (PIPD), Planning Service, Department of Agriculture. He would like to acknowledge the assistance of Ms. Acquilyn Morillo and Mr. Aldrin Nacional (Technical Assistants, PIPD) in preparing this report.
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WORKING PAPER
DEPARTMENT OF AGRICULTURE AND
JAPAN INTERNATIONAL COOPERATION AGENCY
Formulation Team on the Drafting of the
Strategic Agribusiness Development Plan
COMMODITY SITUATION REPORT: CALAMANSI
Prepared by
JOSE ULYSSES J. LUSTRIA
November 2009
____________________
Mr. Lustria is OIC-Chief, Public Investment Program Division (PIPD), Planning Service,
Department of Agriculture. He would like to acknowledge the assistance of Ms. Acquilyn
Morillo and Mr. Aldrin Nacional (Technical Assistants, PIPD) in preparing this report.
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I. OVERVIEW
A. Background
Calamansi or calamondin is a fruit tree belonging to the citrus family. Its scientific name is Citrofortunella microcarpa W. (DTI, 2005).
Calamansi, which is native to the Philippines (DA, _____), is a good source of Vitamin C and
its juice is used as an ingredient or additive in various food preparations. It also possesses
medicinal values (BAS, 2003).
B. Contribution to the Economy
Calamansi's economic contribution is gradually increasing. For the period 1998 to 2008, calamansi recorded an average contribution of 0.73 percent to total value of agricultural crop production (increasing from 0.20 to 0.65 percent), and 0.35 percent to total value of agricultural sector output. (increasing from 0.10 to 0.31 percent). (See Annex 1.)
II. SITUATIONAL ANALYSIS
A. Production
1. World Production
a) Major producing countries. Based on FAO 2007 data, the Philippines is the
sixth top citrus producer (under not else specified or nes category), contributing 3
percent of world production (Figure 1). (Note: Cross-checking with BAS data, the
country’s contribution is solely calamansi.) From 1998 to 2007, the Philippines is
consistently among the top producers in the world, with an average share of 3
percent (Figure 2).
Citrus fruit, nes (in tonnes)*
Nigeria47%
China19%
Colombia11%
Guinea3%
Japan2%
Philippines3%
Saudi Arabia2%
Kenya1%
India2%
Others10%
Country 2007
Nigeria 3,325,000
China 1,315,934
Colombia 750,000
Guinea 218,000
Japan 156,000
Philippines 201,619
Saudi Arabia 169,093
Kenya 87,400
India 148,000
Others 732,633
WORLD 7,103,679
Figure 1. Top 10 Citrus Producing Countries, In Percent, 2007.
(Source: FAO, 2009)
*Calamansi from the Philippines is classified by FAO under “Citrus, not else specified.”
b) Volume, Area Planted, and Productivity. Calamansi production went up due to
increases in area. However, yield fluctuations can be observed. The sudden
increase in production and yield in 2005 can be attributed to increased number of
bearing trees in Mindoro Oriental and Zamboanga Sibugay and control of aphids in
Nueva Ecija (BAS, 2006).
Figure 5. Calamansi: Production, Area, and Yield - 1998-2008.
(Source: BAS, 2009)
c) Value of Production. The value of production is increasing at a higher rate of 33 percent (see also Annex 1). The biggest increase was from 1998 to 1999.
Figure 6. Value of production of calamansi (at constant prices), 1998-2008.
Supply and exports of calamansi have been increasing from 1998 to 2008 (Table 1 and Figure 7). It can be noted that export volume jumped from 8 MT in 2007 to 20 MT in 2008 (Figure 7) most probably due to increased market demand. Net food disposable is also increasing which indicates greater domestic demand.
Table 1. Calamansi supply and utilization, in MT, 2000-2008.
(Source: BAS,2009)
150,000
160,000
170,000
180,000
190,000
200,000
210,000
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
me
tric
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Total Production
2%
0
5
10
15
20
25
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
me
tric
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Exports
28%
Figure 7. Calamansi: volume of production and exports, 1998-2008. (Source: BAS, 2009)
a) World Demand (Exports). Most of the country’s exports are in the form of
juice, from 1998 to 2008.
Figure 8. Value (in % and in US$) of calamansi export by product form, Philippines, 2008.
(Source: NSO, 2008)
Table 2. Value (in US$) of calamansi export by product form, Philippines, 1998-2008.
(Source: NSO, 2008)
USA, Canada, and Japan are the biggest markets for calamansi juice from 1998 to 2008.
Figure 9. Top markets for calamansi juice, in percent and in kg., 2008. (Source: NSO, 2008)
Fresh3%
Juice69%
Concentrates28%
Fresh 20,671
Juice 503,866
Concentrates 203,714
Total 728,251
Product Form 2008
USA51%
Canada15%
Japan (Excludes Okinawa)
12%
Pacific Trust
Territory5%
Others17% Top Markets 2008
USA 145,158
Canada 41,606
Japan (Excludes Okinawa) 35,751
Pacific Trust Territory 13,688
Others 49,394
Total Exports 285,597
In kg.
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Table 3. Top markets for calamansi juice, in kg., 1998-2008.
(Source: NSO, 2008)
b) Domestic Demand. Based on the Supply and Utilization Accounts (SUA) 1998-2008 (Table 1), domestic demand has been increasing for both total and per capita consumption.
C. Value-Chain System
There are many players in the calamansi industry as can be seen in the diagram below.
Based from BAS 1998-2008 Cost and Returns data, the biggest cost driver is hired labor,
averaging 46% of total on-farm cost from 1998-2008.
Figure 11. On-farm major costs in calamansi production (in %), 1998-2008.
(Source: Generated using BAS data, 2009)
a) Seeds and seedlings, etc. Calamansi can be propagated by seeds or its vegetative
parts. It is best to buy planting materials from reliable sources, particularly from
the Bureau of Plant Industry (BPI) or BPI-accredited nurseries (DA, ___).
b) Fertilizer and pesticide. The increasing prices of fertilizer and pesticides are a
major concern. In calamansi production, inorganic fertilizer is the second cost
driver with an average share of 10 percent of the total production cost from 1998 to
2008.
c) Agricultural Machinery. The small-scale production of calamansi requires not
much investment in machineries. Rental of machines, tools, and equipment is only
0.08 percent to total production cost. Harvesting is either by hand or by using a
pair of scissors (DA, ____).
d) Labor. Labor is considered the biggest cost driver, accounting to an average share
of 46 percent and 9 percent of total production cost, for hired labor and for
operator and family labor, respectively.
2. Production Subsystem
About 42.4 percent of the farmers operated farms with areas of 0.25 hectare and below. Only
14.6 percent reported farm sizes of 1 to 3 hectares. Farms measuring more than 3 hectares were
cultivated by 7.6 percent (BAS, 1999).
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In Leyte and Quezon, farm sizes of 0.25 hectare and below shared the highest, with 61 to 64
percent reporting. In contrast, farms in Mindoro Oriental were relatively large measuring at least 1
hectare. The average size of calamansi farms was 0.92 hectare. Mindoro Oriental had the biggest
farms averaging 2.14 hectares while Quezon had the smallest farms averaging 0.39 hectare (BAS,
1999).
In 2002, NSO reported a total 95,388 calamansi farms with 5,627,090 trees, an increase from
5,483,565 trees in 1991.
3. Marketing Subsystem
The calamansi industry is composed of growers, assemblers, distributors, bodega owners/operators, buyers, and processors. Most of the volume are brought to trading centers (e.g., in Mindoro Oriental, Guimaras, and Quezon). From the trading centers, calamansi is distributed within and outside the supply provinces. Metro Manila is a big demand area (BAS, 2003).
The geographic flows and market channels will give a picture of the market practices for
calamansi. Figures 12 and 13 show the geographic flows and market channels for calamansi in
Mindoro Oriental and Quezon, respectively (BAS, 2003).
Figure 12. Geographic flow and marketing channels for calamansi in Mindoro Oriental, 2001.
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Figure 13. Geographic flow and marketing channels for calamansi in Quezon, 2001.
4. Processing Subsystem
Calamansi is processed into juice, concentrate, and dried. However, most of our processed
exports are in the form of juice. Figure 14 shows is the process of making calamansi concentrate
The calamansi processing industry has potential for growth if the processing technology is
promoted more. Calamansi producers would be able to earn more if they themselves would
venture into processing. This can be done either individually or collectively (e.g., through
cooperatives).
5. Support Subsystem
Support for the fruit industry comes from government and nongovernment/private institutions.
The Department of Agriculture, through its GMA-HVCC banner program, provides a
comprehensive package which includes Production Support Services, Market Development
Services, Credit Facilitation Services, Irrigation Development Services, Other Infrastructure/
Postharvest Development Services, Extension Support, Education and Training Services,
Research and Development, Regulatory Services, Information Support Services, Policy
Formulation, Planning, and Advocacy Services. Moreover, various donor countries or agencies
have also provided support, both technical and financial assistance.
D. Prices
1. Domestic Prices
Farmgate, wholesale, and retail prices of calamansi are generally increasing from 1998 to 2008 although there are some fluctuations. Comparing price ratios of 1998 and 2007, farmers are gainers. However, compared with 2008 ratios, farmers are losers.
• inability to control destructive pests and diseases – which can be due to high cost of pesticide
• Drought (El Niño) and other calamities
• Competition with other fruits/citrus
Other perceived problems mentioned are (BAS, 2003):
• Abundant supply and low quality of calamansi being produced by the farmers resulted to
lower price. One farmer stated that he lacks information and knowledge on the proper
production and postharvest technology.
• Creditors did not pay their loan or sometimes the payment for the commodities is delayed.
• A large percentage of wastage in bringing calamansi from the farm to the market because of
the poor condition of the farm to market roads.
• Lack of capital to finance the buying and selling of calamansi.
Other marketing problems such as frequent price fluctuation, absence of permanent stalls,
availability of shipping lines, too many competitors, presence of imported lemon in the market
and alleged “tong” given to different authorities.
14
Lack of quality standards
Inability to control destructive pests and diseases (PRSV, mites,
etc.)
Susceptibility to greening disease and Tristeza virus
Difficult access to credit facilities
Inadequate infrastructure
Lack of upgraded processing facilities/ packaging materials
inefficient marketing system
Poor quality of fruit
Relatively low yield
Inconsistent supply of quality fruit
Unrealized Potential of Calamansi Industry
Increasing costs of pesticides and
fertilizers
High labor costs
F. Problem Tree Analysis
The problem tree below shows us graphically the linkages among the various problems in the industry.
Figure 17. Problem tree for the calamansi industry.
III. SUMMARY, POLICY IMPLICATIONS, AND RECOMMENDATIONS
The calamansi industry is globally competitive technically but big improvements could still be
done in terms of production, yield, and supply chain. The processed export industry has a big
potential. Table 4 illustrates the issues and gaps in the calamansi industry, accordingly,
recommendations are also provided. These issues and recommendations were based from
analyses done in this report, field visits and stakeholder workshops.
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Table 4. Issues and recommendations in the calamansi industry.
Supply chain Issue/Gap Recommendation
I. Input Supply Subsystem
Seeds and Seedlings, etc. Insufficient planting
materials with high
quality
Development of new varieties, varietal
improvement through biotechnology,
accreditation of nurseries, and
intensification of R & D through SUCs
and other agro-based research and
development institutions
Fertilizer and Pesticide Increasing costs Improvement of logistics; utilization of
organic fertilizers
Agricultural
Machinery/equipment
Need for standards in
farm equipment
Establishment of agricultural
machinery and equipment standards
Labor Increasing cost of labor Maximum utilization of family labor
II. Production Subsystem Inconsistent supply;
fragmented production
Prevalence/existence of pests and diseases
Expansion of production areas; integration of supply Strict quarantine regulation to prevent spread of pest and diseases and intensified information campaign about the threat of disease R, D and extension program aimed at developing an effective and efficient Integrated Pest Management (IPM) Strategies
III. Marketing Subsystem Inefficient marketing
system
Improvement of logistics (to address
high postharvest losses); improvement
of market intelligence and information
systems, particularly on price
monitoring, supply and demand
forecasting and analysis of the different
fruits
IV. Processing Subsystem Inadequate postharvest
and processing facilities;
need for standards in
equipment
Increase and improvement in
processing and postharvest facilities
V. Support Subsystem Inadequate support
systems
Provision of more support facilities such as ports, farm-to-market roads, cold chain systems; regulatory and food safety system (e.g., traceability, database/s); promotion of GAP and monitoring of compliance; credit and crop insurance facilities; strengthening of the RDE system in the different levels of government, from national to local government level
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IV. REFERENCES Department of Agriculture. (2002). Calamansi strategic action plan. April 2002.
Department of Agriculture. (____). Calamansi. Retrieved on September 2009 from
http://daweb.da.gov.ph/tips/calamansi.html
Department of Agriculture–Bureau of Agricultural Statistics. (1999). Cost and Returns of
Calamansi Production.
Department of Agriculture–Bureau of Agricultural Statistics. (2003). Marketing Costs Structure for
Calamansi. June 2003.
Department of Agriculture –Bureau of Agricultural Statistics. (2006). Situationer on Calamansi
(July - December 2005). May 2006.
Department of Agriculture –Bureau of Agricultural Statistics. (____) Various reports.
Department of Science and Technology. (____). Enterprise Module on Calamansi-Sugar
Concentrate Processing. A Powerpoint presentation. Retrieved on August 2009 from
http://202.90.141.226/food/pdf/221.pdf
Department of Trade and Industry-Bureau of Product Standards. (2005). Philippine National
Standard for Calmaondin/Calamansi – Grading and classification.
Food and Agriculture Organization-United Nations (2009). FAOSTAT. Retrieved on September
2009 from <http://www.fao.org>
National Statistics Office (2008). Quantity and value of exports and imports.
National Statistics Office (2009). Table 3. Top Five Permanent Crops in Terms of the Number of
Trees/Vines/Hills by Region: Philippines, 1991 and 2002. Retrieved on October 2009
from <http://www.census.gov.ph/data/sectordata/sr0414403.htm>.
National Statistics Office (2009). Table 3. Selected permanent crops - total number of trees and
number of productive age by province: 1991. Retrieved on October 2009
from <http://www.census.gov.ph/data/sectordata/1991/ag910003.txt>