Marketing Costs Structure Study Marketing Costs Structure Study Marketing Costs Structure Study Marketing Costs Structure Study Series 5 Series 5 Series 5 Series 5 MARKETING COSTS STRUCTURE MARKETING COSTS STRUCTURE MARKETING COSTS STRUCTURE MARKETING COSTS STRUCTURE FOR POTATO FOR POTATO FOR POTATO FOR POTATO Marketing Studies and Development Section Marketing Studies and Development Section Marketing Studies and Development Section Marketing Studies and Development Section Agricultural Marketing Statistics Analysis Division Agricultural Marketing Statistics Analysis Division Agricultural Marketing Statistics Analysis Division Agricultural Marketing Statistics Analysis Division BUREAU OF AGRICULTURAL STATISTICS BUREAU OF AGRICULTURAL STATISTICS BUREAU OF AGRICULTURAL STATISTICS BUREAU OF AGRICULTURAL STATISTICS DEPARTMENT OF AGRICULTURE DEPARTMENT OF AGRICULTURE DEPARTMENT OF AGRICULTURE DEPARTMENT OF AGRICULTURE June 2003 June 2003 June 2003 June 2003
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Marketing Studies and Development SectionMarketing Studies and Development SectionMarketing Studies and Development SectionMarketing Studies and Development Section
BUREAU OF AGRICULTURAL STATISTICSBUREAU OF AGRICULTURAL STATISTICSBUREAU OF AGRICULTURAL STATISTICSBUREAU OF AGRICULTURAL STATISTICSDEPARTMENT OF AGRICULTUREDEPARTMENT OF AGRICULTUREDEPARTMENT OF AGRICULTUREDEPARTMENT OF AGRICULTURE
June 2003June 2003June 2003June 2003
MARKETING COSTS MARKETING COSTS MARKETING COSTS MARKETING COSTS STRUCTURE FOR POTATOSTRUCTURE FOR POTATOSTRUCTURE FOR POTATOSTRUCTURE FOR POTATO
FOREWORD
This report on potato is the fifth of a series on Marketing Costs
Structure Studies for Selected High Value Commercial Crops. The study was conducted in the second semester of 2001 and was aimed to provide information on the charges borne by each participant in the commodity marketing channels in the provinces of Benguet, Bukidnon and Davao City.
The results of the series of marketing costs studies serve as
inputs in policy formulation and as guide to decision making of the various marketing participants.
ROMEO S. RECIDE Director
TABLE OF CONTENTS FOREWORD ………………………………………………………………… iii
I. Introduction II.
Research Sites Selection of Sample Respondents………….………………………………. 1 II. Scope and imitations……………………………………………………… 1 III. Discussion of Results Distribution of Respondents ………………………………………………… 2 Types of Marketing Participants …………………………………………… 3 - 4 Profile of Respondents………………………………….…………………… 5 - 9 Marketing Practices and Functions……………………….……………… 10 Procurement ………………………………………………………………… 10 Distribution …………………………………………………………………… 11 Geographic Flow………………………………………..…………………… 13 - 15 Marketing Channels…….………………………………..…………………… 16 – 20 Marketing Costs……..………………………………………………………… 20 Labor ………………………………………….……………………………….. 20 Transportation ...…………………………………………………………….… 21 Material Inputs ………………………………………………………………… 22 Miscellaneous and Other Operating Costs ………………………………… 22 Depreciation …………………………………………………………………… 23 Total Marketing Costs ………………………………..……………………….. 23 Marketing Costs by Point of Destination .…………………………………… 24 Marketing Margins .…………………………………………………………… 29 VI. Problems/Constraints Encountered…………………………………………………………………….. 34 Statistical Tables ………………………..……………………………………... 35
1 POTATO : Distribution of respondents, by type, by province/municipality, 2001
2 POTATO : Distribution of respondents, by type of marketing participants, by province, 2001
3 POTATO : Distribution of farmer respondents by size of farm, by province, 2001
4 POTATO : Distribution of farmer respondents, by tenurial status, by province, 2001
5 POTATO : Distribution of trader-respondents by type of business, by province, 2001
5a POTATO : Distribution of respondents, by type of marketing participants, by type of business, by province, 2001
6 POTATO : Distribution of trader-respondents, by nature of capitalization, by province, 2001
6a POTATO : Distribution of respondents, by type of marketing participants, by nature of capitalization, by province, 2001
7 POTATO : Distribution of trader-respondents, by length of experience, by province, 2001
8 POTATO : Major sources and destinations, by location, by province, 2001
9 POTATO : Cropping Pattern, by activity in selected provinces, 2001
10 POTATO : Distribution of respondent by manner of procurement, by province, 2001
STATISTICAL TABLES
10a POTATO : Distribution of respondents, by type of marketing participants, by manner of procurement, by province, 2001
11 POTATO : Distribution of trader respondents, by mode of payment in buying stock, by province, 2001
11a POTATO : Mode of payment in buying stocks, by type of marketing participants, by province, 2001
12 POTATO : Distribution of respondents, by manner of distribution, by province, 2001
12a POTATO : Distribution of respondents, by manner of distribution, by type of marketing participants, by province, 2001
13 POTATO : Distribution of trader respondents, by terms of payment for distribution, by province, 2001
13a POTATO : Distribution of respondents, by terms of payment for distribution, by type of marketing participants, by province, 2001
14 POTATO : Labor costs incurred by activity/practice, by province, 2001
14a POTATO : Labor costs incurred by marketing participants, by activity/practice, Metro Manila, 2001
14b POTATO : Labor costs incurred by marketing participants, by activity/practice, Benguet, 2001
14c POTATO : Labor costs incurred by marketing participants, by activity/practice, Pangasinan, 2001
14d POTATO : Labor costs incurred by marketing participants, by activity/practice, Nueva Ecija, 2001
14e POTATO : Labor costs incurred by marketing participants, by activity/practice, Cebu, 2001
14f POTATO : Labor costs incurred by marketing participants, by activity/practice, Iloilo, 2001
14g POTATO : Labor costs incurred by marketing participants, by activity/practice, Negros Occidental, 2001
14h POTATO : Labor costs incurred by marketing participants, by activity/practice, Bukidnon, 2001
14i POTATO : Labor costs incurred by marketing participants, by activity/practice, Misamis Oriental, 2001
14j POTATO : Labor costs incurred by marketing participants, by activity/practice, Davao City, 2001
14k POTATO : Labor costs incurred by marketing participants, by activity/practice, General Santos City, 2001
15 POTATO : Transportation costs incurred by activity/practice, by province, 2001
15a POTATO : Transportation costs incurred by marketing participants, by activity/practice, Metro Manila, 2001
15b POTATO : Transportation costs incurred by marketing participants, by activity/practice, Benguet, 2001
15c POTATO : Transportation costs incurred by marketing participants, by activity/practice, Pangasinan, 2001
15d POTATO : Transportation costs incurred by marketing participants, by activity/practice, Nueva Ecija, 2001
15e POTATO : Transportation costs incurred by marketing participants, by activity/practice, Cebu, 2001
15f POTATO : Transportation costs incurred by marketing participants, by activity/practice, Iloilo, 2001
15g POTATO : Transportation costs incurred by marketing participants, by activity/practice, Bukidnon, 2001
15h POTATO : Transportation costs incurred by marketing participants, by activity/practice, Misamis Oriental, 2001
15i POTATO : Transportation costs incurred by marketing participants, by activity/practice, Davao City, 2001
15j POTATO : Transportation costs incurred by marketing participants, by activity/practice, General Santos City, 2001
16 POTATO : Cost of material inputs incurred by activity/practice/cost item, by province, 2001
16a POTATO : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Metro Manila, 2001
16b POTATO : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Benguet, 2001
16c POTATO : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Pangasinan, 2001
16d POTATO : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Nueva Ecija, 2001
16e POTATO : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Cebu, 2001
16f POTATO : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Iloilo, 2001
16g POTATO : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Negros Occidental, 2001
16h POTATO : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Bukidnon, 2001
16i POTATO : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Misamis Oriental, 2001
16j POTATO : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, Davao City, 2001
16k POTATO : Cost of material inputs incurred by marketing participants, by activity/practice/cost item, General Santos City, 2001
17 POTATO : Other operating costs by cost item, by province, 2001
17a POTATO : Other operating costs incurred by marketing participants, by cost item, Metro Manila, 2001
17b POTATO : Other operating costs incurred by marketing participants, by cost item, Benguet, 2001
17c POTATO : Other operating costs incurred by marketing participants, by cost item, Pangasinan, 2001
17d POTATO : Other operating costs incurred by marketing participants, by cost item, Nueva Ecija, 2001
17e POTATO : Other operating costs incurred by marketing participants, by cost item, Cebu, 2001
17f POTATO : Other operating costs incurred by marketing participants, by cost item, Iloilo, 2001
17g POTATO : Other operating costs incurred by marketing participants, by cost item, Negros Occidental, 2001
17h POTATO : Other operating costs incurred by marketing participants, by cost item, Bukidnon, 2001
17i POTATO : Other operating costs incurred by marketing participants, by cost item, Misamis Oriental, 2001
17j POTATO : Other operating costs incurred by marketing participants, by cost item, Davao City, 2001
17k POTATO : Other operating costs incurred by marketing participants, by cost item, General Santos City, 2001
18 POTATO : Imputed cost of depreciation by facilities/equipment used, by province, 2001
18a POTATO : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Metro Manila, 2001
18b POTATO : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Benguet, 2001
18c POTATO : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Pangasinan, 2001
18d POTATO : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Nueva Ecija, 2001
18e POTATO : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Cebu, 2001
18f POTATO : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Iloilo, 2001
18g POTATO : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Negros Occidental, 2001
18h POTATO : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Bukidnon, 2001
18i POTATO : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Misamis Oriental, 2001
18j POTATO : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, Davao City, 2001
18k POTATO : Imputed cost of depreciation incurred by marketing participants, by facilities/equipment used, General Santos City, 2001
19 POTATO : Total Marketing costs by item (cash costs and non-cash costs), by province, 2001
20 POTATO : Total Marketing Costs, by major components(Cash & Non-cash), by province, 2001
21 POTATO : Common problems and constraints of farmers and traders, by province, 2001
MARKETING COSTS STRUCTURE FOR POTATO
I. Introduction
Potato, scientifically known as “Solanum Tuberosum” thrives best in higher elevation with well-drained, loamy or sandy loam soil. It is rich in minerals, phosphorous, calcium, thiamine, Vitamin B1 and C. It is used as one of the ingredients to Filipino dishes, snacks and salads. Objective
This study aims to determine the flow of potato and the costs incurred by the marketing participants from the producer to the consumers. Scope and Limitations
The study covered three (3) supply areas, namely Benguet, Davao City and Bukidnon. The demand provinces/areas consisted of Pangasinan, Nueva Ecija, Iloilo, Cebu, Negros Occidental, Misamis Oriental, General Santos and Metro Manila.
The study traced the flow and the marketing costs of potato starting from
the production points to the demand areas. At the demand province/site, the study concentrated only on the costs incurred in marketing potato coming from the supply province, and none for those produced in the demand province. For instance, Cebu City was classified as demand center. The costs borne by Cebu participants in trading potato from Misamis Oriental were covered but not the costs of moving potato harvested and marketed in the producing municipalities of Cebu province.
Procurement and distribution costs by institutional buyers are not accounted for because these were included in the total operation of the establishment.
Marketing Cost Structure for Calamansi 1
II. Research Methodology For each of the key supply provinces, the fieldwork started at the farm
level. Top five (5) producing barangays in the province were selected using the BAS data as reference.
From the farm level, the research team traced the traders identified by
the farmer respondents as buyers of their produce. The team moved to the next point of sale consisting of the wholesale and retail markets within the province and/or trading centers in the partner provinces. Selection of Sample Respondents The results of the listing made under High Value Commercial Crops (HVCC) project served as reference in identifying the barangays and the names of the farmer-respondents. At the farm level, the barangay chairmen/other officers, members of farmers associations and cooperatives served as key informants primarily in identifying and locating farmer-respondents and secondly, in getting other information on potato marketing practices in the locality. The sample sizes of respondents in the supply province were 40 farmers and three (3) traders per type/classification. Farmers who were engaged in producing/trading potato from July 2000 to June 2001 were selected and interviewed.
III. Discussion of Results The study primarily dealt with the costs shouldered by marketing participants in moving the commodity from the supply level to the consumption level. Part I focuses on the profile of the respondents and their marketing functions and practices. Part II, on the other hand, stresses on the major costs components. Distribution of Respondents There are two groups of respondents for the study, farmers and traders. Of the total 254 respondents, 120 were farmers while the remaining 134 were traders who were classified into different types. Table 1 shows the details on the distribution of trader-respondents by study areas.
Marketing Cost Structure for Calamansi 2
Types of marketing participants. The farmers and traders are the major types of marketing participants. Trader-respondents were further classified based on their sphere of influence in performing their procurement and distribution activities.
In this study, five types of traders were identified: assemblers, distributors, assembler-distributors, institutional buyers and retailers. The first three types of traders can be classified further according to the geographic coverage and volume of transactions.
1. Assembler - procures potato from farmers and/or traders in the supply
areas; usually has agents or relatives responsible for procurement and assembly. In this study assemblers are classified according to geographic area of procurement. These are:
a) Barangay Assembler (BA) – procures from one barangay only. b) Municipal Assembler (MA) - procures from two or more
barangays within the municipality. c) Provincial Assembler (PA) - procures from two or more
municipalities within the province. d) Regional Assembler (RA) - procures from two or more
provinces within the region. e) Interregional Assembler (IRA) - procures from two or more
regions.
2. Distributor - sells potato to other traders and consumers. Since his/her business is primarily to sell than to procure, he/she provides more services to his/her buyers than to his/her suppliers. They can be classified according to the relative volume of commodities and to the geographic sphere of his selling operations (location of buyers). The following are the classification of distributors:
a) Small Distributor (SD) - handles only small volume of goods;
sells to retailers within the same market and to small eateries (carinderia) within the area.
b) Medium Distributor (MD) - sells larger volume than small
distributor; sells to traders coming from other markets in the province; may also sell to few institutional buyers (hotel, restaurant, hospital, military camp).
Marketing Cost Structure for Calamansi 3
c) Large Distributor (LD) - handles the largest volume among the three types of distributors; usually sells to traders from other markets within and outside the province; may also sells to several institutional buyers.
3. Assembler – Distributor - uses the same efforts and resources in
procuring and selling a commodity; usually finances farmers and traders in supply areas and has agents responsible for procurement; sells commodities to other traders. Several combinations was identified in the study as shown below:
a) Barangay Assembler- Medium Distributor (BA-MD) b) Municipal Assembler – Small Distributor (MA-SD) c) Municipal Assembler – Medium Distributor (MA-MD) d) Municipal Assembler – Large Distributor (MA-LD) e) Provincial Assembler – Small Distributor (PA-SD) f) Provincial Assembler – Medium Distributor (PA-MD) g) Provincial Assembler – Large Distributor (PA-LD) h) Regional Assembler – Large Distributor (RA-LD) i) Interregional Assembler – Large Distributor (IRA-LD)
NOTE: An assembler remains only an assembler and not an assembler-distributor if the trader sells exclusively to one trader. Example of traders who are purely assemblers are inter-regional, regional, provincial and municipal assemblers who sell to only one processor/exporter with whom they have contract quotas to fulfill.
4. Institutional Buyer - includes groceries, hotels, restaurants, hospitals, eateries, military camp, etc.
5. Retailer - sources his/her stocks either directly from the farmers or
traders and directly sell the goods to the consumers.
! The assembler-distributors were further grouped into the sphere of influence in distribution that they performed. The first group was composed of large distributors (LDs) with 51 respondents. The second was a combination of medium (MD) and small distributors (SD) with 21 respondents. The grouping was regardless on whether the respondent is an inter-regional (IRA), regional (RA), provincial (PA), municipal (MA) or barangay assembler (BA).
! Sixty-one (61) of the respondents were retailers; only one
institutional buyer from Davao City was interviewed.
Marketing Cost Structure for Calamansi 4
Profile of Respondents This part describes the respondents with basic characteristics such as size of the farm, land ownership and the cropping pattern of potato in the supply areas. On the other hand, traders were grouped according to the type of ownership and length of experience.
Size of Farm. The land area of purposively drawn sample farmers
ranged from less than 1.00 hectare to more than 2.00 hectares. Table 3 shows the distribution of farmer respondents by size of farm.
! Majority (85%) of the potato farmer-respondents have relatively small farms of less than one hectare.
! About 13 percent of the farmer cultivated potato in farms
measuring 1 to 2 hectares; only 2% planted potato in more than 2 hectares.
Land Ownership. Majority of the farmer-respondents owned the land
they operate. About 15 percent of the sample respondents were tenants and 4 percent were lessees. The remaining 5 percent either borrowed or rented the land that they tilled.
! Majority or 32 farmer-respondents from Benguet owned the land
while 8 were tenants.
! Of the total respondents from Bukidnon 29 were landowners, 5 lessees, 2 tenants and 4 either borrowed or rented the land.
! Of the 40 sample farmers in Davao City, 30 were landowners, 8 were
tenants and 2 were classified under other type of tenure.
Cropping Pattern. Potato has a life span of 3 to 4 months. Farmer respondents are planting potato two to three times a year. Figures 1 – 3 and table 9 illustrate the cropping pattern for potato.
# Benguet
! Ten farmer-respondents planted potato in March while 14 samples planted in July. Peak harvesting and trading were reported in October and in June.
Marketing Cost Structure for Calamansi 5
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# Bukidnon
! Seven of the respondents planted potato in August and September. Peak harvesting and trading were noted in December with 10 and 9 respondents reporting respectively.
# Davao City
! Farmer-respondents planted potato almost all year round. The peak planting months were February, August and September. Only one respondent planted in May.
! Majority of the respondents harvested and traded potato in the months of May, November and December.
Business Ownership ! Almost all the trader-respondents (98%) from the covered provinces
were single proprietors. The remaining 2 percent had business partners.
! One large distributor from Pangasinan, one medium distributor from
Bukidnon and one in Misamis Oriental operate their trading business with partners.
! The institutional buyer from Misamis Oriental is a single proprietor.
Nature of Capitalization ! Ninety eight percent of the total respondents owned the capital used
in their business.
! One respondent in Pangasinan was financed by the cooperative and one respondent in Misamis Oriental was under contract with a trader from Manila.
Length of Experience ! Out of 134 trader-respondents 42 were in the business for 5 to 10
years.
! Twenty seven were trading potato for less than 5 years and another 27 for more than 20 years.
Marketing Cost Structure for Calamansi 9
! Twenty traders have been in the business for 11 to 15 years, while 18 traders were into trading for 16 to 20 years.
Marketing Practices and Functions Farmers and traders perform marketing practices and functions which entail certain amount of costs for moving the products from one point to another. The major practices and functions and the corresponding marketing costs are described in the following: Procurement Trader-respondents procured potato from the producing barangays/ municipalities within the province. There were also traders who bought potato in the nearby provinces within and/or outside the regions to meet their supply requirements. Manner of Procurement
! More than half of the respondent (57%) picked up their supply from the producing areas or from their permanent suppliers.
! About 39% of the traders wait for their suppliers to deliver potato
they ordered. Orders were placed either thru land line phone or cellphone. There were also farmers who personally sold their produce directly to the traders.
! Only 4 % of the trader-respondents practiced both pick-up and
delivery in procuring potato.
Mode of Payment. There were several modes of payment in procuring potato, namely: cash on delivery, consignment, delayed payment, every 15 th of the month, every 30 th of the month and bank to bank payment. The charges paid to the bank depend on the agreement between the buyers and the sellers. The variation in the payment arrangement depends on the degree of trading relationship between farmer and trader.
! Majority of the respondents (74%) paid their potato suppliers in cash
upon delivery. ! Nineteen traders paid their suppliers in consignment, while 9 paid
either in cash on delivery or consignment basis.
Marketing Cost Structure for Calamansi 10
! Two sample-respondents each declared that they paid their supplier
every 15th of the month, delayed payment or through bank. Distribution Most of the time, traders sold potato outside the province. The mode of delivery and terms of payment were subject to the agreement between buyer and seller. Mode of Delivery. The mode of delivery for distribution of potato depended on the type of buyer and his location.
! Eighty one (81) of the farmers delivered their goods to their clients while 39 of them waited for traders/buyers to pick up the produce.
! Out of 134 trader respondents, 116 stated that their buyers picked
up the commodity. There were 15 traders who delivered their goods to their buyers. Three samples practiced both modes of delivery.
Mode of Payment ! Majority of the farmers and trader-respondents (193 out of 254)
received cash when selling potato. Others were paid either in consignment (29 samples), 15th of the month (2 samples), both in cash and credit (15 samples), credit (6 samples), every 30th of the month (1 sample), or transaction thru bank (8 samples).
! Seven farmers in Bukidnon received payment either cash or credit.
! Farmers and traders were charged a minimum of P50 for every
transaction of less than P100,000 when payment was made thru bank. However, charges for more than P100,000 were computed based on the bank rates.
Geographic Flow Listed in table 8 were the sources and destination points of potato in the areas of study. Figures 4 – 6 illustrate the flow of potato by location and by province.
Marketing Cost Structure for Calamansi 11
! Benguet
# The top producing municipalities of potato were Buguias, Atok and Natubleng. Mt. Province also supplied potato to Benguet during lean periods.
# Farmers in Benguet sold their produce in La Trinidad Vegetable Trading
Post (LTVTP), Maryland Trading Post and Hangar market. Customers of these markets were from the provinces of Bulacan, Pangasinan, Nueva Ecija, Tarlac, Pampanga, Cavite, Bicol region and Metro Manila.
! Bukidnon
# Large volumes of potato were sourced from the municipalities of Impasug-ong, Dormitan, Dalwangan, Lantapan, Miraya and Basak.
# In time of harvest, traders from Cagayan de Oro City procured
potato either directly from the farmers in different barangays or in Valencia trading center. However, during lean months the traders in Bukidnon procured potato from Agora market in Cagayan de Oro City.
# Trading centers in Bukidnon were located in Malaybalay,
Valencia and Lantapan.
# Potato in Bukidnon were distributed to the traders in Cagayan de Oro City. Traders in Cagayan de Oro City supplied the provinces of Cebu, Iloilo, Negros Occidental, Agusan del Norte, Surigao del Norte and Surigao del Sur.
! Davao City
# The barangays of Marilog proper, Buda, Baganihan, Sitio Ladian, Datu Salumay and Tagumpay Salumay all in the district of Marilog were the sources of potato in the province. The provinces of Bukidnon and Davao del Sur were the two major suppliers of potato during lean months.
Marketing Cost Structure for Calamansi 12
(VIA Metro Manila)
CebuIloilo
Negros OccidentalLeyte
Maryland Trading Post
La Trinidad Vegetable Trading
Post
DEMAND AREAS
TRADING CENTERS
SUPPLY AREAS
Figure 4. GEOGRAPHIC FLOW OF POTATO IN BENGUET, 2001
Hangar Market
Benguet-Atok-Buguias-Kibungan-Bakun
(VIA Metro Manila)
Davao CityCagayan de Oro
Zamboanga
CARRegion 1Region 2Region 3Region 4Region 5
Nueva VizcayaPangasinan
Mt. Province
Davao CitySurigao
Lanao NorteLanao Sur
CebuLeyteIloilo
Metro Manila
Malaybalay MarketCagayan de Oro
DEMAND AREAS
TRADING CENTERS
SUPPLY AREAS
Figure 5. GEOGRAPHIC FLOW OF POTATO IN BUKIDNON, 2001
Valencia Market
Bukidnon-Impasugong-Malaybalay-Lantapan
General Santos City
South CotabatoMetro Manila
Zamboanga CityIloiloCebu
Bangkerohan Market
CalinanTorilBuda
MintalMarahan
Davao City-Calinan-Marilog-Paquibato
BukidnonSouth Cotabato
Davao SurSarangani
Benguet (via Metro Manila)
DEMAND AREAS
TRADING CENTERS
SUPPLY AREAS
Figure 6. GEOGRAPHIC FLOW OF POTATO IN DAVAO CITY, 2001
# Majority of the big time traders and shippers were based in the Metro Circle which comprise the markets of Bangkerohan and Pag-asa. The Metro Cirle was the “Bagsakan area” in Davao City.
# From Bangkerohan market potatoes were distributed to the
demand areas in Metro Manila, General Santos City and Surigao. Retailers in Toril, Calinan, Buhangin, Agdao and Mintac were buying potato either in Bangkerohan or Pag-asa market.
Marketing Channels Figures 7-9 illustrate the flow of potato from the farmer up to the retailer in the provinces under study. ! Benguet
# Buyers of potato in the barangays composed of agents and large distributors (IRA-LD, RA-LD, PA-LD and MA-LD). There were instances when buyers from outside the province bought directly from the farmers. However, 38 interviewed farmers delivered their goods directly to the trading posts.
# During harvest season, transactions between the farmer and the
buyers were often done in the highways.
# IRA-LD sold potato either to RA-LD, PA-LD, MA-LD, retailers or to buyers outside the province.
! Bukidnon
# Potato farmers commonly sold their produce to the traders from Cagayan de Oro City, Provincial Assemblers – large/Medium distributors or to Municipal Assembler-Small Distributor (MA-SD).
# Retailers from Malaybalay and Valencia procured either from PA-
LD, PA-MD and MA-SD. ! Davao City
# Farmers in the barangays often sold their produce to the Provincial assembler – Medium Distributor (PA-MD), Regional Assembler – Large Distributor (RA-LD), Provincial Assembler –
Marketing Cost Structure for Calamansi 16
Figure 7. MARKETING CHANNELS FOR POTATO IN BENGUET, 2001
CONSUMER
RETAILER
RA-LD
IRA-LD
FARMERSUPPLIERS OUTSIDE
PROVINCE
BUYERS OUTSIDE
PROVINCE
AGENT
PA-LD
MA-LD
Figure 8. MARKETING CHANNELS FOR POTATO IN BUKIDNON, 2001
CONSUMER
RETAILER
PA-MD MA-SDPA-LD
FARMER
CDO TRADER
20
Figure 9. MARKETING CHANNELS FOR POTATO IN DAVAO CITY, 2001
CONSUMER
RETAILER
PA-MD PA-SDRA-LD
FARMER
SUPPLIERS OUTSIDE
PROVINCE
BUYERS OUTSIDE
PROVINCEINSTITUTIONAL
BUYER
Small Distributor (PA-SD) and to buyers from outside the province.
# RA-LD provided financial assistance to the farmers from different
municipalities in the province or in the nearby provinces. In return, the farmers sold all their produce the financier.
# During lean period, RA-LD procured supply from traders in the
nearby provinces in addition to the supply of the farmers and traders within the province to meet the quantity required by his/her clients.
# PA-SD, PA-MD and RA-LD distributed their potatoes either to the
retailers or institutional buyers, i.e. Gaisano Mall and NICC supermarket. The Institutional buyers re-packed potato in a more presentable and properly labeled containers/plastic bags and sold directly to the consumers.
Marketing Costs Marketing costs of potato from the farm level down to the final consumers include labor, transportation, material inputs, other operating expenses and depreciation. Labor The activities performed in the process of procuring potato from the farm included hauling (loading from the farm to the truck/vehicle), sorting, cleaning/washing, packing, weighing and selling.
! The total cost of labor for 11 provinces covered by the study ranged from P0.13 (Negros Occidental) to P1.64 per kilogram (Metro Manila). It also included the costs for salaries and wages of permanent and contractual employees and labor cost paid in shipping the product.
! Costs in hauling potato from the farm to the first point of destination
amounted to P0.25, P0.28 and P0.11 per kilogram, respectively for Benguet, Bukidnon and Davao City.
Marketing Cost Structure for Calamansi 20
! The highest labor expenses incurred in procuring the stocks was noted in Nueva Ecija at P0.35 per kilogram while the lowest was in Davao City, P0.04 per kilogram.
! Only sample traders in Nueva Ecija paid for washing and cleaning of
potatoes during procurement amounting to P0.25 per kilogram.
! Traders from Cebu incurred the highest distribution cost (P0.88/kg.), followed by Metro Manila (P0.82/kg.) and Pangasinan (P0.79/kg.).
! Traders hired either permanent or contractual employees to help
them in the different activities in trading. Payments were either on per day, week, 15th or 30th day of every month. The lowest salaries/wages prevailed in Misamis Oriental at P0.02 per kilogram while the highest rate was in Metro Manila at P0.61 per kilogram.
Transportation Transportation cost was the amount paid by the farmers and traders in transporting the goods to its destination. It pertains to the cost incurred when the transportation used were either hired/rented or public utility vehicles. Also included here was the freight charges for shipping vessels.
! Of the sample three producing areas, farmers/traders in Benguet incurred the highest transportation costs of P1.43 per kilogram for the delivery of potato from the farm to their buyers.
! Traders from Cebu spent an average of P1.83 per kilogram on
transportation when buying, shipping and selling potato.
! When procuring supply either from the producing areas or in trading centers, traders in Manila incurred the highest expenditure on transportation, P0.66 per kilogram; the lowest cost was observed in Misamis Oriental, P0.01 per kilogram of potato.
! Traders from General Santos City spent P1.44 per kilogram in
shipping potato including freight either from the source to the trading centers or to the buyers.
! Buyers of potato from Davao City to other provinces, particularly to
Manila, either picked up the commodity from their place or waited for the traders to deliver the goods in the port. In both cases, the buyers shouldered all the expenses in shipping.
Marketing Cost Structure for Calamansi 21
Material Inputs The costs of marketing include the materials used by the farmers and the traders starting from the pre-marketing stage up to the disposition of potato at the retail market. The materials commonly used in procuring and distributing potato were sacks, kaing, twine, old newspaper, plastic bag, plastic crate, red bag, needle and wire. Table 16 shows the materials used and the corresponding costs.
! Traders in Davao City provided sacks and twine to the farmer/supplier but charged them P0.10 for every kilogram of potato.
! During procurement, farmers and traders in Benguet incurred the
highest cost of P0.46 per kilogram for material inputs while traders in General Santos City spent the lowest, P0.03 per kilogram of potato.
! Respondents from Benguet also incurred the highest distribution
expense amounting to P0.66 per kilogram. Materials used were kaing, sacks (includes old and plastic sacks), twine, plastic bag, basket, wire and office supplies.
! All the traders in the sample provinces commonly used plastic bags in
selling potato. Metro Manila traders spent the highest, P0.24 per kilogram of potato for plastic bags. Traders from Benguet and Iloilo both spent an average of P0.19 per kilogram of potato for plastic bag.
Miscellaneous and Other Operating Costs Miscellaneous expenses include business permit/licenses, market fee, electricity, telephone, water, gas and oil, rentals, expenses for meals and beverages, wastage/shrinkage while transporting the commodity. Other items with the corresponding amount of costs incurred are enumerated in Table 17.
! The total amount of the operating expenses ranged from P2.34 in Davao City to P0.25 per kilogram in Cebu.
! In Bukidnon, shrinkage/wastage contributed a significant amount to
total operating cost of P0.95 per kilogram due to the long distance between and the poor condition of the road from the production sites (barangays in Bukidnon) to the trading/demand area (Cagayan de Oro City).
Marketing Cost Structure for Calamansi 22
! Iloilo also suffered losses due to wastage amounting to P0.76 per kilogram. Traders were buying their stocks either from Cebu, Davao City and Kanlaon, Negros Oriental.
! During the reference period, respondents in Davao City and Benguet
spent P0.85 and P0.64 per kilogram, respectively, for the repair and maintenance of truck/vehicle used in buying and selling of potato.
Depreciation The study imputed depreciation costs using the straight line method for materials, equipment, facilities and transportation items used in potato marketing.
! Weighing scale, calculator and electric fan were the most common
equipment used by retailers in their business operations.
! Imputed costs of depreciation for storage facilities in Benguet and Pangasinan amounted to P0.02 and P0.004 per kilogram, respectively. Traders in Misamis Oriental and Nueva Ecija built their own stall in the market. Depreciation cost was computed at P0.11 per kilogram and P0.05 per kilogram, respectively.
Total Marketing Costs The total marketing cost is the sum of the expenses incurred by the farmers and the traders which include the expenses on labor, salaries and wages of the employees, transportation, material inputs, other operating expenses and the imputed costs of depreciation. The cost items were aggregated according to cash outlay, which include cash, non-cash or imputed costs (Table 19, 20 and 21).
! Benguet traders spent the highest marketing cost of P5.77 per kilogram while Negros Occidental traders had the lowest expense of P1.18.
Marketing Cost Structure for Calamansi 23
! Non-cash costs ranged from P0.002 in Iloilo to P0.31 in Davao City.
! In Metro Manila, the total cost was P3.77 per kilogram, a large portion was accounted for by labor (P1.64) and transportation expense (P1.12).
! Among the three supply areas, respondents from Davao City incurred
the biggest expenses of P2.34, followed by Bukidnon with P2.04 per kilogram.
Marketing Costs by Point of Destination Transfer of commodities from the producers to the next marketing participants until it reach the final consumers entails costs on transportation, materials, labor and other expenses. Figures 10 to 12 illustrate the estimated costs per kilogram of moving potato from the supply area to the demand area.
Benguet
# Benguet farmers and traders who moved potato from the supply barangays to the major markets spent P2.41 per kilogram.
# Traders with buyers in Cebu City had the highest expense at P6.56
per kilogram which includes shipping expenses from Benguet via Metro Manila to Cebu pier. Buyers from Cebu shouldered the expenses in moving the goods from the pier to their stall.
# Traders distributing the goods to Metro Manila incurred a total cost of
P6.22 per kilogram while traders selling to Pangasinan spent P5.70 per kilogram.
Bukidnon
# In Bukidnon, potato was sold mostly to the traders from Cagayan de Oro City and the total cost borne by the traders was P3.93 per kilogram.
# For traders who traded their goods within Bukidnon incurred total
costs amounted P1.47 per kilogram.
Marketing Cost Structure for Calamansi 24 Marketing Cost Structure for Calamansi 1
Su
pp
ly A
rea/
Des
tin
atio
nO
rigi
nN
ext p
oin
tF
inal
Des
tin
atio
nT
ota
l
Ben
gu
et-
bara
ngay
to m
arke
t2.
412.
41-
with
in th
e pr
ovic
e2.
411.
323.
73-P
anga
sina
n2.
411.
321.
975.
7- M
anila
2.41
1.32
2.49
6.22
- C
ebu
2.41
1.32
2.83
6.56
Bu
kid
no
n-
bara
ngay
to m
arke
t12
412
4-
with
in p
rovi
nce
124
1.22
125.
22-
Cag
ayan
de
Oro
124
1.22
1.47
126.
69
Dav
ao C
ity
- ba
rang
ay to
mar
ket
0.38
0.38
- w
ithin
the
prov
ice
0.38
1.44
1.82
- Man
ila0.
381.
442.
113.
93
Mar
keti
ng
Co
sts
(pes
o p
er k
ilog
ram
)
MA
TR
IX O
F M
AR
KE
TIN
G C
OS
TS
FO
R P
OT
AT
OB
Y P
OIN
T O
F D
ES
TIN
AT
ION
, 200
1
Benguet to Cebu = P6.56
Benguet to Pangasinan
= P5.70
Benguet to Metro Manila
= P6.22
Within Benguet =
P3.73
Barangay to Market =
P2.41
Figure 10. Total Marketing Costs for Potato, by point of destination, Benguet, 2001
Cebu
Benguet
Pangasinan
Metro Manila
Figure 11. Total Marketing Costs for Potato, by point of destination, Bukidnon, 2001
Bukidnon to Cagayan de Oro
= P3.93
Within Bukidnon =
P2.46Barangay to
Market = P1.24
CDO
Buki
dnon
Figure 12. Total Marketing Costs for Potato, by point of destination, Davao City, 2001
Davao City
Metro Manila
Davao City to Metro Manila = P3.93
Within Davao City = P1.82
Barangay to Market = P0.38
Davao City
# Distribution cost of potato from Davao City to Manila was P3.93 per kilogram, while traders distributing goods within the province spent P1.82.
Marketing Margins In measuring the marketing margins, the structure of the marketing channels from the farm through the various intermediaries until the final consumer, is hereby described. This is followed by the identification and listing of the various functions that are performed at each stage in the marketing process. Buying price is the initial investment of the traders. The gross margin, which includes the cost of trading and the risk/losses, is the difference between the retail price and the effective buying price at the farm level. The net margin, or the net return, was computed as the remainder when total marketing costs were subtracted from total gross margin. The concept of marketing margins is illustrated below. RP NM TGM FP + TC FP where: RP = retail price FP = farm price or the effective buying price at farm level FP+TC = farm price plus the total costs TGM = total gross margin (RP - FP) NM = net margin or return [RP – (FP + TC)]
The succeeding table presents the estimated marketing margins for potato based on the average prices collected by the BAS in 2001 for the supply areas under study. Likewise, the costs of marketing potato at each level of marketing participants and the estimated selling price for each supply province are presented in Figures 13-15.
Marketing Cost Structure for Calamansi 29
Per
cen
tP
eso
per
kg
.P
erce
nt
Pes
o p
er
kg.
Per
cen
tP
eso
per
kg
.
Far
m15
.44
14.1
421
.42
Who
lesa
le20
.65
-2
4.4
Ret
ail
32.6
52
4.4
35.6
6
Far
m2.
663.
9057
.95
5.95
18.4
02.
62W
hole
sale
51.7
18.
90-
-56
.60
8.06
Ret
ail
25.6
34.
4142
.05
4.31
25.0
03.
56
Tot
al10
017
.21
100
10.2
610
014
.24
Less
: T
otal
Cos
ts5.
774.
834.
49N
et M
argi
n/R
etur
n11
.44
5.43
9.75
BU
KU
DN
ON
DA
VA
O C
ITY
AV
ER
AG
E P
RIC
ES
AN
D M
AR
KE
TIN
G M
AR
GIN
S F
OR
PO
TA
TO
, 200
1
Pri
ces
Mar
gin
sP
rice
sM
arg
ins
ITE
MP
rice
sM
arg
ins
BE
NG
UE
T
Am
ount
(P/k
g)L
evel
Ave
.
Estim
ated
Sel
ling
Pric
e w
/o m
argi
nR
etai
l27
.55
-40
.44
32.3
9(b
uyin
g pr
ice
& to
tal c
osts
)21
.21
Tota
l Cos
ts5.
77
Mat
eria
ls0.
66La
bor
1.00
Tran
spor
ting
1.23
Who
lesa
le16
.08
-28
.71
20.6
5D
epre
ciat
ion
0.04
Oth
ers
1.70
Mat
eria
ls0.
46La
bor
0.23
Tran
spor
ting
0.20
Pre-
mar
ketin
gH
aulin
g0.
25
Buy
ing
Pric
e15
.44
Farm
14.0
0-
17.2
115
.44
* S
ourc
e: B
AS'
FPS
, Who
lesa
le &
Ret
ail P
rice
Mon
itorin
g
Pric
e R
ange
Prac
tice/
Act
ivity
/Cos
t Ite
mM
arke
t Pri
ce*
Figu
re 1
3. M
arke
ting
Cos
ts fo
r Po
tato
, by
leve
l of M
arke
ting
Part
icip
ants
, Ben
guet
, 200
1
CO
NSU
MER
RET
AIL
ER
RA-L
D
IRA
-LD
FAR
MER
SUPP
LIER
S O
UTS
IDE
PRO
VIN
CE
BU
YER
S O
UTS
IDE
PRO
VIN
CE
AG
ENT
PA-L
D
MA
-LD
Am
ount
(P/k
g)L
evel
Ave
.
Estim
ated
Sel
ling
Pric
e w
/o m
argi
nR
etai
l21
.61
-31
.06
24.4
0(b
uyin
g pr
ice
& to
tal c
osts
)19
.23
Tota
l Cos
ts4.
83
Mat
eria
ls0.
24La
bor
0.95
Tran
spor
ting
0.47
Dep
reci
atio
n0.
13O
ther
s2.
05
Mat
eria
ls0.
18La
bor
0.12
Tran
spor
ting
0.41
Pre-
mar
ketin
gH
aulin
g0.
28
Buy
ing
Pric
e14
.40
Farm
9.64
-26
.50
14.1
4
* S
ourc
e: B
AS'
FPS
, Who
lesa
le &
Ret
ail P
rice
Mon
itorin
g
Pric
e R
ange
Prac
tice/
Act
ivity
/Cos
ts It
emM
arke
t Pri
ce*
Figu
re 1
4. M
arke
ting
Cos
ts fo
r Po
tato
, by
leve
l of M
arke
ting
Part
icip
ants
, Buk
idno
n, 2
001
CO
NSU
MER
RET
AIL
ER
PA-M
DM
A-S
DPA
-LD
FAR
MER
CD
O
TRA
DER
Ave
rage
(P/k
g)L
evel
Ave
.
Estim
ated
Sel
ling
Pric
e w
/o m
argi
nR
etai
l31
.18
-44
.90
35.6
6(b
uyin
g pr
ice
& to
tal c
osts
)25
.91
Tota
l Cos
ts4.
49
Mat
eria
ls0.
50La
bor
0.72
Tran
spor
ting
0.19
Who
lesa
le21
.14
-27
.93
24.4
0D
epre
ciat
ion
0.31
Oth
ers
2.34
Mat
eria
ls0.
18La
bor
0.04
Tran
spor
ting
0.10
Pre-
mar
ketin
gH
aulin
g0.
11
Buy
ing
Pric
e21
.42
Farm
14.7
5-
27.3
621
.42
* S
ourc
e: B
AS'
FPS
, Who
lesa
le &
Ret
ail P
rice
Mon
itorin
g
Pric
e R
ange
Prac
tice/
Act
ivity
/Cos
t Ite
mM
arke
t Pri
ce*
Figu
re 1
5. M
arke
ting
Cos
ts fo
r Po
tato
, by
leve
l of M
arke
ting
Part
icip
ants
, Dav
ao C
ity, 2
001
CO
NSU
MER
RET
AIL
ER
PA-M
DPA
-SD
RA-L
D
FAR
MER
SUPP
LIER
S O
UTS
IDE
PRO
VIN
CE
BU
YER
S O
UTS
IDE
PRO
VIN
CE
INST
ITU
TIO
NA
L B
UY
ER
! Benguet
The estimated retail selling price from the farm to the retailer was P21.21, included was the buying price of P15.44 per kilogram and the total costs of P5.77. The net margin was P11.44.
! Bukidnon
Buying price of potato was P14.14 per kilogram. Traders spent P4.83 per kilogram, on average, in marketing potato. Farmers’ share was P5.95 while the traders was P4.31 per kilogram.
! Davao City
At an average farm price of P21.42, farmers received a gross margin of P2.62 per kilogram while traders who buy and sell potato get a net margin of P11.62 per kilogram. Net return amounted to P9.75 per kilogram after deducting total cost of P4.49.
IV. PROBLEMS/CONSTRAINTS ENCOUNTERED
Farmers and traders encountered different problems in buying and selling potato (Table 22).
# One of the common problems encountered by farmers and traders is low
price due to poor quality of the produce. # Too much competition among traders which resulted to the lack of buyers
in the area was another constraint. # A few cited high percentage of wastage especially in transporting the
goods from the farm to the market as their problem. Some of the traders complained that their suppliers insert rotten potato inside the sack.
# Other problems were non-payment of debt, lack of capital, high costs for
shipping commodities, poor farm to market road, lack of post harvest facilities, high interest rate on loan and thieves.
Urdaneta, Tayug, Tuguegarao, Laguna, Lingayen, Dagupan, Batangas, Bataan, San Carlos City Isabela, Bicol,
Metro Manila (Divisoria, Balintawak)
Nueva Ecija Cabanatuan La Trinidad Cabanatuan, Sta. Rosa, Bulacan, Pampanga, Gapan Urdaneta San Leonardo, Aliaga, Quezon, Baler
Gapan, San Antonio, Jaen, Talavera
Iloilo Iloilo City Metro Manila, Passi, Iloilo City, Dumarao, Capiz, Aklan, Guimaras, Kanlaon, Divisoria, Lambinao Antique, Cagayan de Baguio, Cebu, Oro Cagayan de Oro
Negros Occidental Bacolod City Divisoria Bacolod City, Talisay, Cagayan de Oro Murcia Negros Oriental Baguio
Cebu Cebu City Baguio Tabunok, Carbon, Leyte, Southern Leyte, Dalaguete Cagayan de Oro Mandaue Samar, Bohol
Cagayan Manila Davao del Sur
Bukidnon Impasugong Agora (Cagayan de Malaybalay, Valencia, Agora (Cagayan de Dormitan Oro City) Lantapan Oro City) Dalwangan Lantapan Miraya Basak
Misamis Oriental Cagayan de Oro Bukidnon Cogon, Carmen (CDO) Surigao, Butuan, Iloilo, Ibaan Iligan, Cebu
Davao City Marilog District Davao del Sur Calinan, Toril, Buhangin, Metro Manila Calinan Bukidnon Agdao, Mintac, Metro Circle General Santos City Davao City Surigao
Metro Circle
General Santos City Tupi Digos (Davao Sur) Gen. Santos Iloilo, Zamboanga Kapatagan South Cotabato Manila, Cebu Alabin (Sarangani) Toril (Davao City)
Source Destination
Table 8. POTATO: Major sources and destinations, by location and by province, 2001
Province/City/Area
Ben
guet
Pl
antin
g5
410
114
52
H
arve
stin
g3
21
62
123
113
Tr
adin
g3
21
71
113
11
13
Bu
kidn
on
Pl
antin
g4
56
23
47
73
5
Har
vest
ing
14
53
84
24
27
10
Trad
ing
12
43
23
15
14
9
Dav
ao C
ity
Pl
antin
g4
127
51
610
116
34
H
arve
stin
g5
45
511
75
214
11
Trad
ing
54
43
95
14
310
7
Tabl
e 9
. P
OTA
TO:
Cro
ppin
g P
atte
rn, b
y ac
tivi
ty in
sel
ecte
d pr
ovin
ces,
20
01
Act
ivit
yJa
nFe
bM
arA
pr
May
Jun
Jul
Dec
.A
ug
Sep
tO
ctN
ov
Pi
cked
up
156
513
66
54
75
577
57
D
eliv
ered
86
31
54
37
77
152
39
B
oth
11
11
15
4
TOTA
L2
41
29
14
12
10
91
21
41
26
13
41
00
Tab
le 1
0.
PO
TATO
: D
istr
ibu
tion
of
trad
er r
esp
ond
ents
, b
y m
ann
er o
f p
rocu
rem
ent,
by
pro
vin
ce,
20
01
Man
ner
of
Pro
cure
men
tM
etro
M
anila
Ben
gu
etP
anga
sina
nN
ueva
Ec
ijaIl
oilo
Neg
ros
Occ
iden
tal
Ceb
uTo
tal
Per
cent
Bu
kid
non
Mis
amis
O
rien
tal
Dav
ao
Cit
y
Gen
eral
S
anto
s C
ity
METRO MANILA Picked- up 3 12 15 Delivered 3 5 8 Both 1 1BENGUET Picked- up 5 1 6 Delivered 5 1 6PANGASINAN Picked- up 3 1 1 5 Delivered 2 1 3 Both 1 1NUEVA ECIJA Picked- up 4 3 6 13 Delivered 1 1ILOILO Picked- up 2 1 3 6 Delivered 1 2 2 5 Both 1 1NEGROS OCCIDENTAL Picked- up 2 2 2 6 Delivered 2 2 4CEBU Picked- up 1 4 5 Delivered 2 1 3 Both 1 1BUKIDNON Picked- up 1 1 2 4 Delivered 4 3 7 Both 1 1MISAMIS ORIENTAL Picked- up 4 1 2 7 Delivered 4 1 2 7DAVAO CITY Picked- up 2 2 1 5 Delivered 1 6 7GENERAL SANTOS CITY Delivered 2 2 1 5 Both 1 1
TOTAL 51 21 61 1 134
RETAILER INSTITUTIONAL BUYER
TOTAL
Table 10a. POTATO: Distribution of respondents by type of marketing participants, by manner of procurement, by province, 2001
Province/Mode of DeliveryIRA-LD/RA-LD/ PA-LD/MA-LD/
BA-LD
PA-MD/PA-SD/ MA-MD/MA-SD/
BA-MD
Cas
h24
37
127
84
710
116
9974
Con
sign
men
t7
23
34
1914
Bot
h2
22
21
97
Eve
ry 1
5th
of th
e m
onth
22
1
Eve
ry 3
0th
of th
e m
onth
11
a/
Ban
k to
Ban
k2
21
Del
ayed
Pay
men
t1
12
1
TOTA
L2
41
29
14
12
10
91
21
41
26
13
41
00
To
tal
Per
cen
tB
uki
dnon
Mis
amis
O
rien
tal
Dav
ao
Cit
y
Gen
eral
S
anto
s C
ity
Tab
le 1
1.
PO
TATO
: D
istr
ibu
tion
of
trad
er r
esp
ond
ents
, by
mod
e of
pay
men
t in
bu
yin
g s
tock
,b
y p
rovi
nce
, 20
01
Typ
e of
Bu
sin
ess
Met
ro
Man
ilaB
eng
uet
Pan
gas
inan
Nu
eva
Ecij
aIl
oilo
Neg
ros
Occ
iden
tal
Ceb
u
METRO MANILA Cash 6 18 24BENGUET Cash 3 3 Consignment 5 2 7 Both 2 2PANGASINAN Cash 4 1 2 7 Both 2 2NUEVA ECIJA Cash 3 3 6 12 Both 2 2ILOILO Cash 2 1 4 7 Consignment 2 2 Both 2 2 Every 30th of the month 1 1NEGROS OCCIDENTAL Cash 2 3 3 8 Every 15th 1 1 2CEBU Cash 4 4 Bank to Bank 2 2 Consignment 2 1 3BUKIDNON Cash 5 2 7 Consignment 1 2 3 Both 1 1 Delayed payment 1 1MISAMIS ORIENTAL Cash 4 2 4 10 Consignment 4 4DAVAO CITY Cash 3 7 1 11 Delayed payment 1 1GENERAL SANTOS CITY Cash 3 2 1 6
TOTAL 51 21 61 1 134
Table 11a. POTATO: Mode of payment in buying stocks, by type of marketing participants,by province, 2001