フィリピン高地産野菜の市場システムの問題点とその解決策フィリピン高地産野菜の市場システムの問題点とその解決策...

フィリピン高地産野菜の市場システムの問題点とその解決策

誌名誌名農村研究

ISSNISSN 03888533

著者著者

藤島, 廣二藤本, 彰三Piadozo, M.E.S.ほか1名,

巻/号巻/号 104号

掲載ページ掲載ページ p. 101-113

発行年月発行年月 2007年3月

農林水産省農林水産技術会議事務局筑波産学連携支援センターTsukuba Business-Academia Cooperation Support Center, Agriculture, Forestry and Fisheries Research CouncilSecretariat

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In the Philippines, growing vegetables is an important source of income and employment

for farmers. Vegetables of approximately US $ million in value are sold each year in the

country. However, at present there is an increasing demand for vegetables, due to a con-

tinually increasing population and the contribution of formal education and publicity regard-

ing their nutritive value.

Vegetables are widely grown in the country, especially in the highlands of Laguna and

Benguet. Both areas are noted for their production of temperate vegetables and are now

known as the major sources of such vegetables.

However, it has been observed that the supply of vegetables cannot keep up with ex-

panding demand especially in key demand centers like Metro Manila. The main reason for

this situation is that there are some imperfections in the marketing system of agricultural

products. If the system were improved, consumers would have access to more products than

before and farmers would also be able to sell more products.

Most of the previous studies (Rola, ; Lantican and Rola, ; Almenar, ) were

on the marketing of vegetables in Benguet, but there are very few on Laguna, an emerging

vegetable producing area. It had already been clarified that vegetables grown in Benguet

were brought to wholesale trading centers. However, the circumstances of Laguna vegetable

101

* University of the Philippines Los Banos

** Tokyo University of Agriculture, Faculty of International Agriculture and Food Studies

: The aim of this paper is to clarify the marketing system for vegetables grown in the

highlands in the Philippines and point out the problems in order to improve the system. We

have clarified as follows : first, there are various kinds of traders, like commission agents ;

second, vegetables grown in the highlands are sold to consumers in the big cities. We also have

pointed out that growers are price takers and that marketing losses are huge. So we have

recommended some solutions for such problems.

: vegetable, marketing system, the Philippines, highland, Laguna, Benguet

Ma. Eden S. PIADOZO , Hiroji FUJISHIMA , Akimi FUJIMOTO

and Koichi SHIMIZU

* ** **

**

Problems of the Marketing System for Vegetables

Grown in the Highlands in the Philippines :

A Case Study of Vegetables Grown

in Benguet and Laguna

Summary

Key words

Introduction

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that is m high above sea level. The temperature in the Laguna village ranges from

farmers remain unknown. Moreover, the relationships of the farmers with the traders at the

farm level have not received much attention.

Thus, this paper presents an analysis of the marketing situation of farm products in the

highlands of both Laguna and Benguet in order to contribute to the improvement of the

marketing system of vegetables. The interrelationship among the key players in the market

of vegetables, their marketing practices, and the returns that they get for their marketing

e ort will be analyzed.

The general objective of this paper is to analyze the marketing system of vegetables

grown in the highlands of Laguna and Benguet, Philippines, and to clarify the problems in

order to improve the marketing system.

Specifically, the paper aims :

. To identify the market intermediaries involved in the system and trace the flow of

products ;

. To describe the marketing practices of the vegetable producers and traders ;

. To analyze the e ciency of the marketing system ; and

. To determine the marketing problems and recommend some solutions for such

problems.

Temperate vegetables in the Philippines are largely grown in Benguet (Fig. ). Benguet

has long been known as the salad bowl of the Philippines. The province is considered the

largest vegetable producing area in the Cordillera Autonomous Region (CAR). Benguet lies

in the southernmost part of Cordillera in Northern Luzon. It is bounded on the north by

Mountain Province, on the east by Ifugao and Nueva Vizcaya, on the west by La Union and

Ilocos Sur, on the south by Pangasinan. Benguet has a total land area of , hectares.

About of the total land area is agricultural land, of which are devoted to crucifers

and leafy vegetables. Baguio City is its capital and is kilometers away from Manila.

On the other hand, Laguna province is an emerging producer of temperate vegetables

and is projected to be the Vegetable Bowl of Southern Luzon. It is likewise the highest pro-

ducer of vegetables in all the provinces in the Southern Tagalog region. The province is

found in the CALABARZON region in Luzon and is located southeast of Metro Manila, south

of the province of Rizal, west of Quezon, north of Batangas and east of Cavite. Laguna has an

aggregate land area of , hectares that is approximately . of the total land area of the

country. About , hectares or of its alienable and disposable lands are devoted to

agriculture.

The study focuses on two villages in these two provinces : the village of Nutubleng in

Buguias, Benguet which is located , m above sea level and Bukal in Nagcarlan, Laguna

102

Objectives

Study Areas

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as compared to the . . in Benguet. Thus temperate vegetables are grown along-

side with tropical vegetables in the Laguna village because of its middle level altitude.

Natubleng Village is kilometers away from the La Trinidad Vegetable Trading Post while

Bekal Village is kilometers away from San Pablo City.

A total of vegetable farmers each were randomly chosen from a complete list of

farmers in Laguna and Benguet. Forty six trader respondents were interviewed to ascertain

the flow of the commodity from the production site to the various market outlets reported by

the farmer-respondents.

Initially the survey was conducted in and follow up surveys and interviews were

done in . Primary data on volume marketed, marketing practices, prices received by

types of outlets, marketing costs and margins, perceived marketing problems and constraints

were gathered through both personal interviews and questionnaires for each type of respond-

ents. Secondary data on the municipal profile of the area, yield and other statistics were

collected from the municipal o ce and other secondary sources.

The flows of the vegetables raised and sold in the research areas were traced from the

points of production until they reached the retailer’s level. The marketing-margin and

loss-magnitude data were used in order to analyze the e ciency of the marketing system.

103Problems of the Marketing System for Vegetables Grown in the Highlands in the Philippines

Map showing Benguet and LagunaFig.

Methodology

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agents, local assembler-wholesalers (village collectors), assembler-wholesalers and wholesalers.

In Benguet, cabbage, potatoes and carrots were the major crops grown. When we con-

ducted the survey in , cabbage, potatoes and carrots were grown by , and

of the farmers, respectively. Only a few farmers were cultivating other crops like Chinese

cabbage, radish and shasta daisy. It was further ascertained that of the cabbage-farmer-

respondents reported cultivating cabbage as a monocrop and in combination with other

vegetables such as carrot, potatoes and shasta daisy.

On the other hand, tomatoes were the most popular crop grown by the farmers in

Laguna. Ninety-eight percent of vegetable farmers were planting tomatoes as a monocrop

and in combination with other crop or crops. Other major crops grown were cabbage, beans,

chayote and sweet potato as reported by , , and of the farmers, respectively.

Only were growing bitter gourd and eggplant.

The farmers in the two study areas did not sell the aforementioned produce directly to

the ultimate consumers. There were various kinds of intermediaries between these economic

players, but the two areas di er somewhat from each other.

In Benguet, farmers sold their vegetables to commission agents, financier wholesalers (or

input suppliers), assembler-wholesalers and wholesalers. The three kinds of traders except

commission agents were based at the La Trinidad Vegetable Trading Post or Baguio City

Hangar Market. According to our research, tons of cabbage, carrots and potatoes were

sold by the respondents in . Thirty-seven percent of them were bought by commission

agents, and by financier wholesalers, by wholesalers, by assembler-wholesalers

and moreover by wholesalers in Baguio City Hangar Market (Fig. ).

The commission agents work for assembler-wholesalers who are stationed in the Trading

Post. They usually intercept vegetable deliveries with the promise of a high price so they

could gather su cient volume for delivery to the wholesaler traders. They gather enough

volume from many farmers for delivery to the wholesale traders. This is commonly known

as

On the other hand, the farmers in Laguna sell almost all of their vegetables to commission

Unlike their counterparts in Benguet, where there are wholesale market centers, Laguna

104

in the study area. On the other hand, the financier-wholesalers provide individual

farmers with interest free cash advances/production inputs with the assurance that the

entire harvest will be sold to them. The trader not only provides farm inputs like fertilizer

and chemicals, he may also provide the farmers’ subsistence needs like lard, rice and salt

amounting to P , to , per season. This amount is enough to cover the farmer’s house-

hold expenses for four months during the entire cropping season. After the crop is sold, the

traders’ expenses are deducted from the gross sale. What remains will be divided between the

farmer and the financier-wholesaler depending on their sharing arrangement.

harang

Flows of Highland Vegetables

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Crops Grown by the Farmer-Respondents

From farmers to buyers

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and the kind of relationship they had with them. According to our research, of the farmers

farmers have no trading post where they can dispose of their vegetables. They sell their

produce within the village in assembly places put up by the traders. In , the farmer-

respondents sold tons of vegetables. Twenty-one percent of them were bought by com-

mission agents, and by local assembler-wholesalers, by assembler-wholesalers,

by wholesalers (Fig. ).

The farmer’s choice of buyers was largely influenced by the cash payment they received

in Benguet preferred to be paid in cash, thus they sold their vegetables to the La Trinidad

Vegetable Trading Post or Baguio City Hangar market wholesale traders (Table ). Their

friendship, kinship or

105

Note : the total volume of cabbage, carrots and potatoes which farmer-respondents sold.

Figures in parenthesis in the legend are the number of respondents.

Source of data : Our survey conducted in , [The farmers were surveyed in

and the dealers in ].

Problems of the Marketing System for Vegetables Grown in the Highlands in the Philippines

Commodity flow for cabbage, carrots and potatoes grown in Benguet,

relationship also made of farmers sell their vegetables tosuki

Fig.

. Reasons for farmers’ choice of buyer

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In the case of Laguna farmers, the

BENGUET LAGUNA BOTHREASON

No No No

Regular buyer

Friend/Relative

Credit tie up

High price

Convenience

Cash

The total of the above

The total number of respondents

Note : The farmers reported more than one answer.

Source of data : Our survey conducted in .

Number and proportion of farmers by reason for choice of

buyer,

their regular buyers. In this situation, the high price to which they should aspire in choosing

a buyer was a minor consideration for them.

relationship was their major reason for choosing

their buyers especially the local-assembler-wholesalers (the village collectors) who also come

from the same village. Ninety percent of farmers sold their produce to regular buyers due to

suki

Table

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106

Note : the volume of vegetables which farmer-respondents sold.

Figures in parenthesis in the legend are the number of respondents.

Source of data : Our survey conducted in , [The farmers were surveyed in

and the dealers in ].

Commodity flow for vegetables grown in Laguna, .Fig.

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The vegetables bought by local traders such as assembler-wholesalers and wholesalers

were sold again. In Benguet, many of the traders operating at the La Trinidad Trading Post

came from Divisoria Market, Urdaneta Market, etc. So they bought vegetables in bulk at the

Trading Post and sold them at Divisoria, Balintawak, Pasay, etc. in Manila. Moreover, the

traders at the Trading Post sold their produce to the retailers in the local area, the wholesalers

and wholesaler-retailers of Baguio City Hangar Market and the other traders who came from

such places as Manila or Quezon. The traders of Hangar Market also sold their vegetables to

other traders. Ultimately, of vegetables disposed by the farmer-respondents in Benguet

were brought to Metro Manila, the rest was consumed in many other areas according to our

research of (Fig. ).

Meanwhile, in Laguna, almost all of the vegetables disposed at the assembly places with-

in the village were brought to the assembler-wholesalers and wholesalers located in assembly

markets in San Pablo and Sta. Cruz. A few local-assembler-wholesalers sold some of the vege-

tables such as beans and bitter gourd to institutional buyers like restaurants. At the time of

our study, both the assembler-wholesalers and wholesalers purchased vegetables from farm-

ers at the assembly places in Laguna, or from commission agents and the local-assembler-

wholesalers in the village (Fig. ). The vegetables were then sold at the assembly markets in

San Pablo and Sta. Cruz. Except for small amounts of tomatoes, chayote and sweet potatoes

of the Laguna vegetables were brought to San Pablo and Sta. Cruz, neighboring towns of

Nagcarlan. There were some traders, however, who were able to ship tomatoes to Divisoria,

Pasay, Marikina and Sta. Mesa in Manila.

There are three usual sources of price information for farmers, namely, buyers, radio

(broadcast on vegetable prices), and other farmers.

Seventy-six percent of Benguet farmer-respondents consulted other farmers on the pre-

vailing market price (Table ). As they delivered their produce in the La Trinidad Trading

Post and Baguio Hangar Market, they had some idea of what the prices would be. Seventy-

four percent also had access to radio broadcasts on vegetable prices. But still relied on

the buyers for information. The farmers repeated that the buyers had more information and

knowledge of prices.

On the other hand, all the farmer-respondents in Laguna were totally reliant on their

buyers for price information (Table ). They did not go to wholesale markets because they

sold almost all their products within the village. They could not listen to radio broadcasts on

vegetable prices because, according to them, there were no radio programs available on price

information.


such relationship (Table ), while the higher price o ered by an outlet was only considered by

of the farmers.

.

Marketing Practices

.

From the local traders to consumers

Transmission of price information

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� �who set the prices of vegetables. As shown in Table , and of the farmer-respondents

In the two study areas, the majority of the farmers reported that the buyers were the ones

in Benguet and Laguna, respectively, reported that it was always the buyer who set the price

for the vegetables they sold.

According to the farmers who responded to our question, the reasons were as follows :

first, they lacked reliable source of price information except from buyers ; second, they did

not have enough bargaining power because the sales volume of each farmer was very small

relative to the volume which each buyer bought ; third, they did not have other market

outlets because they could not have any transportation to bring their produce to far markets

like Manila ; fourth, they had to dispose of their produce as soon as possible in order to pay

outstanding debts and to avoid further losses due to spoilage.

Thus, we consider that farmers are in no position to set prices of vegetables.

Marketing e ciency is evaluated based on the gross marketing margin received by the

traders. The marketing margin refers to the di erence between the buying price and the

selling price. The more e cient the marketing system is, the smaller the margin.

Table shows the marketing margin received for cabbage, carrot and potato by the

assembler-wholesaler, wholesaler and wholesaler-retailer in Benguet. Please take note that

among the three vegetables, the proportion of gross marketing margin in buying price was

BENGUET LAGUNA BOTHTRANSMITTER

No No No

Other farmers

Buyers

Radio





Number and proportion of farmers by transmission of price

information,

Table

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Marketing E ciency

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Decision-making of prices

Magnitude of gross marketing margin

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BENGUET LAGUNA BOTHDETERMINATOR

No No No

Seller

Buyer

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Number and proportion of farmers by setting prices,Table

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highest for cabbage. Since cabbage is more perishable than potato and carrot, it is easily

damaged and more losses are incurred in its transport and handling. The wholesaler-retailer

selling cabbage has also the highest proportion of gross marketing margin in the buying

price, amounting to . . As cabbage had been transported from Benguet and had gone

through several handlings, being loaded and unloaded until it reached the wholesaler-retailer,

damage had already been inflicted on the vegetable. Thus the wholesaler-retailer had to trim

the damaged leaves, resulting in losses. Moreover, it takes time before cabbage can be dis-

posed to the buyers. The longer it stays, the higher is the probability of higher losses.

In Laguna, the percentages of gross marketing margin in both the buying and selling

prices were high for cabbage, chayote, and bean (Table ). This was largely observed for the

local assembler-wholesalers and assembler-wholesalers. These two traders were the major

outlets of vegetables in the village. With the limited competition in the vegetable market in

the village, they could a ord to earn a high gross margin by buying vegetables at low prices

and selling them at high prices. The lack of price information and the

Similarly, the retailers obtained higher proportion of the gross marketing margin in their

buying price due to the losses that accumulated at this level and also the length of time before

they could be sold to the ultimate consumers.

109

a

ITEM CABBAGE CARROT POTATO

Selling price (P/kg)

Buying Price (P/kg)

Gross marketing margin (P/kg)

Proportion of GMM in selling price ( )

Proportion of GMM in buying price ( )


Buying Price (P/kg)





Buying Price (P/kg)




The wholesaler interviewed did not handle cabbage.

Figures in parenthesis are the number of respondents.



Gross marketing margin received by crop and by type of

trader, Benguet,

relationship could

also explain why farmers were paid relatively low prices for their vegetables as cited earlier.

The farmers did not trim, sort and pack their vegetables so the traders were the ones who

performed these marketing functions. In addition, cabbage and chayote were prone to

damage and scratches during the transport of the products from the mountain slopes to the

village buyers’ place, thus resulting in losses. Cabbage had to be trimmed to remove the

bruised leaves.

suki

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Assembler-wholesaler ( )

Wholesaler ( )

Wholesaler-retailer ( )

Table

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The ine ciency of marketing vegetables is highlighted in the movement of cabbage from

the farm to the retailer’s level. Laguna cabbage was sold at P . per kg while the Benguet

cabbage sold at P . /kg. Yet when they were sold to the consumers, the prices were not so

di erent, P . /kg and P . /kg, respectively. Laguna farmers received low prices because of

lack of information and market outlets since they only sold their vegetables in the village. In

Benguet, farmers were aware of prevailing prices because they sold their produce at the La

Trinidad Vegetable Trading Post and they also had radio price broadcast.

Marketing e ciency is also evaluated based on the magnitude of losses in the phase of

distribution. The more e cient the marketing system, the smaller are the losses.

In the Philippines, post harvest losses are large. As shown in Table , post harvest losses

were greater in Laguna than in Benguet. Chayote posted a loss of . , cabbage at .

and tomato at . . In Benguet, cabbage su ered a loss of only . and carrot registered

the highest loss magnitude of . . Because of the di erent climate in the two areas, losses

were minimal in Benguet. Moreover, the losses in Laguna came from physical damage be-

cause of poor farm to market roads. Since the vegetables were placed in native baskets or

110

ITEM TOMATO CABBAGE CHAYOTE BEANS RADISH


Buying Price (P/kg)





Buying Price (P/kg)





Buying Price (P/kg)





Buying Price (P/kg)




Figures in parenthesis are the number of respondents.


Gross marketing margin received by crop and by type of trader, Laguna,

strapped on two sides of horses down the mountain slopes in the area and dumped on

the unloading area, losses were inevitable. The losses increased during the rainy season

because of the di culty of transporting the vegetables from the mountain slopes and the

damage caused by rain on the vegetables.

kaings

Local Asembler-wholesaler ( )

Assembler-wholesaler ( )

Wholesaler ( )

Retailer ( )

Table

. Magnitude of losses in the phase of distribution

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The following problems were identified in our paper : ( ) the bargaining power of the

producer was weak, and ( ) there was ine ciency in the physical distribution of vegetables.

The traders were the price givers and this had resulted in their big margins, which were

also caused by a number of other factors. First, the farmers particularly in Laguna lacked

price information. Unlike in Benguet where there are trading posts and radio information,

Laguna farmers had no other sources of information except their buyers so they were totally

reliant on the buyers for price information. Second, the sold amount is small. Since buyers

always sought large volumes, selling a few baskets of vegetables would weaken the farmers’

bargaining power. Third, the vegetables were not brought and sold far from the village. The

lack of competition in the village due to the presence of few traders only and little good

information on price leave the farmers at the mercy of these traders.

Thus, it is recommended that a system of information should be established. The farmers

could place bulletin boards in the buyers’ place in the village where prevailing prices in mar-

ket centers can be posted. Or with cell phones, prices could be sent through SMS (short mes-

sage sending) and posted on bulletin boards in their buyers’ place. They could also utilize

jeepney drivers plying their route to give them price information on their way back to the

village. This could not be achieved if the farmers will not work as a group. Secondly, farmers

should pool their marketable volume and resources. They could hire a truck so they could

sell in bulk to outside markets. Working as a group can also strengthen their bargaining

power with their buyers.

The second marketing problem concerns the poor distribution system arising from poor

farm to market roads, absence of storage facilities and not enough facilities, such as trucks for

bringing their vegetables out of the village. The poor road system and absence of storage

facilities had resulted in big losses not only at the farm level but also at other levels as well.

Without trucks to transport their produce to other markets, farmers were constrained to

111

VEGETABLE LOSSES ( )

Benguet

Cabbage

Carrot

Potatoes

Laguna

Tomato

Cabbage

Chayote

Sweet potato

Beans

Radish

Pepper

Bitter gourd

Source of data : Our survey conducted in ,

.


Losses incurred in selected vege-

tables, Benguet and Laguna,

Table

Marketing Problems and their Solutions

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Dominguez, A. ( ),

The trader becomes the farmer’s favored buyer or

Almenar, Ma. F.D. ( ),

JICA ( ),

Lantican, F.A. and A.C. Rola ( ), “Production Marketing Linkage : Implications for IPM in Vegetable

Research and Development,”

Piadozo, R.G. ( ),

Rola, W.R. ( ),

Received November ,

Accepted January ,

accept the low prices o ered by the traders operating in the village. Moreover, farmers could

not keep their vegetables for days or one week to wait for better prices because they did not

have storage facilities in their production area.

To address these problems, the government should build better roads, improve existing

roads and construct farm to market roads to enable the vegetable farmers to bring their vege-

tables down the mountain slopes. The government can also give subsidy for building simple

storage facilities so they can keep their vegetables such as garlic and onions for a time when

prices are still low in the market.

Implementation of such recommendations will strengthen the bargaining power of pro-

ducers. This will result in farmers’ receiving higher prices and thus higher income.

112

(Unpublished undergraduate

because of the length of time they have

known each other.

,

(Unpublished undergraduate thesis, University of the Philippines Los Banos).

thesis, University of the Philippines Los Banos).

, Tokyo, JICA.

Vol. , No. and ,

Jan-July , Philippine Agricultural Economics and Development Association.

(Unpublished grad-

uate thesis, University of the Philippines Los Banos).

(Department of Agriculture-CHARMP Project), Baguio, Department of Agriculture.

Marketing of Vegetables in Nagcarlan and Liliw, Laguna,

suki,

Transfer Cost Analysis Among Vegetable Traders in La Trinidad, Benguet,

Feasibility Study on the Upland Irrigation and Rural Development Project in Southern Luzon,

Journal of Agricultural Economics and Development,

Demand Analysis of Leafy and Yellow Vegetables in the Philippines,

A General Market Assessment Study of Selected Vegetables in Benguet and Mountain Prov-

ince

Note

References

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フィリピンにおいては野菜は主に高地で生産されない遠隔地への販売を行うのは卸売業者である

るしかしそうした産地とマニラ等の主要消費地と生産者は消費地や集散地での価格情報を主に産

が遠く離れている上に各生産者の生産規模が矮小地集荷商人から得ている特にラグナではラジオの価

で通常は共同出荷組織も存在しないため市場シス格情報番組もなく産地集荷商人に全面的に依存して

テムがきわめて複雑でかつ問題が少なくないしかいるこのため商業者のマジンが大きく生産者の

もかかる問題点を正確に把握するための詳細なデ手取り価格が低いそれゆえ生産者が多様な方法で

タがまったく存在しない価格情報を入手できるようなシステムを構築すること

そこで本研究では今後の野菜市場システムの改善が今後の市場システムの主な改善点のつである

に資するために名の生産者と名の商業者を対産地の道路事情が悪く輸送手段として馬を利

象に聴取調査を実施しそのデタを基に同システム用することも多くさらに保管施設等もないため生

の分析を行ったその主な成果を整理すると下記の産物のロス率が高いラグナ産のサヨテのロス率

とおりであるはわれわれの調査ではを超えるほどであった

各生産者の生産規模が小さいことから多くのそれゆえ今後ロスを減らし生産者の収入を高め

生産者は品目またはごく少数の品目を生産し出荷るためには道路等のインフラの整備と輸送手段等の

している改善が不可欠と言える

生産者は生産物の多くを地元の産地集荷商人に

販売し一部を比較的近場の卸売市場の卸売業者等に野菜マケティングシステムフィ

販売するいずれにしても遠隔地への販売は行っていリピン高地ラグナベンゲット

フィリピン大学ロスバノス校

東京農業大学

東京農業大学

東京農業大学

エデンピアドゾ

藤島廣二

藤本彰三

清水昂一

キワド

年のベンゲット産ラグナ産野菜を事例に

フィリピン高地産野菜の市場システムの問題点とその解決策

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