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MARKETING COSTS STRUCTURE:

O N I O N

Department of Agriculture BUREAU OF AGRICULTURAL STATISTICS 1184 Ben-Lor Bldg., Quezon Avenue, Quezon City

Tel. No.: +63(2) 372-3820 Fax. No.: +63(2) 371-2048

[email protected] URL: http://bas.gov.ph

Department of Agriculture BUREAU OF AGRICULTURAL STATISTICS

ISSN-2012-0389

NOVEMBER 2007


O N I O N

TERMS OF USE Marketing Costs Structure: Onion is a publication of the Bureau of Agricultural Statistics (BAS), Department of Agriculture. The BAS reserves exclusive right to reproduce this publication in whatever form. Should any portion of this publication be included in a report/article, the title of the publication and the BAS should be cited as the source of the data. The BAS will not be responsible for any information derived from the processing of data contained in this publication.

ISSN-2012-0389

Please direct technical inquiries to the Office of the Director Bureau of Agricultural Statistics

Ben-Lor Building, 1184 Quezon Avenue Quezon City 1100 Philippines.

Email: [email protected] Website: www.bas.gov.ph

PROBLEM ILOCOS NORTE PANGASINAN NUEVA ECIJA

Low price received due to 2 1 14 imported onion Low price received during 2 5 harvest time Difficulty in selling directly 2 to Manila (Divisoria) Shrinkage of the commodity 1 1 1 Weak demand when buyer 1 1 1 have voluminous stocks in their bodegas Stealing 1 1 Price fluctuation 2 1 2 Bad debts 1 1 1 No problem 10 7 1

TOTAL 20 20 20

Table 18a. ONION: Distribution of farmer-respondents, by problems encountered, selected supply provinces, Philippines, 2006

79 74


O N I O N

FOREWORD This report presents the result of the study on Marketing Costs Structure Study for Onion. This serves to update the previous study conducted by the Bureau of Agricultural Statistics in 2002. The 2007 study covered the provinces of Ilocos Norte, Pangasinan and Nueva Ecija. It was aimed at providing information on the cost of marketing onion. The results of the study can hopefully address the need for information on the marketing flow of onion in the country, specifically, in the leading supply and demand areas. As this also contains information on marketing functions/services and the corresponding costs incurred by various marketing participants in moving onions from the producers to the consumers, this could serve as guide for farmers and policy makers in increasing the efficiency of the onion marketing system. The BAS continues to find ways of improving the delivery of its statistical outputs. Thus, the readers are encouraged to share their views, comments and suggestions regarding this report. ROMEO S. RECIDE Director

Buying Selling Gross NetLEGASPI CITY

IRA-LD 36.44 44.00 7.36 7.56 0.09IRA-SD 36.00 44.00 6.99 8.00 1.01Retailer 45.00 55.00 4.81 10.00 5.19

CAGAYAN DE ORO CITYIRA-LD 40.00 48.00 7.36 8.00 0.64Retailer 43.00 52.00 8.49 9.00 0.51

CEBU CITYIRA-LD 45.67 54.67 3.54 9.00 5.43Retailer 59.75 73.00 12.68 13.25 0.57

DAVAO CITYIRA-LD 15.00 23.00 2.94 8.00 5.06BA-MD 19.00 25.00 0.86 6.00 5.11BA-SD 20.00 27.00 4.98 7.00 2.02Retailer 30.00 35.00 2.61 5.00 2.39

Table 18. (Continued)

MarginProvince/Marketing Participants

Prices Total Marketing Cost

i 78


O N I O N

TABLE OF CONTENTS

Page

FOREWORD ………………………………………………………………… i

HIGHLIGHTS ………………………………………………………………… 1a

I. Introduction …………………………………………………………… 2

II. Objectives ……………………………………………………………… 2

III. Methodology …………………………………………………………… 2Research site ………………………………………………………… 2Sample selection ……………………………………………………… 3

IV. Discussion of Results ………………………………………………… 3A. Number and Profile of Respondents …………………………… 4

1. Number of Respondents …………………………………… 42. Profile of Respondents……………………………………… 4 a. Land Ownership of Farmers …………………………… 4 b. Type of Business Ownership of Traders ……………… 4 c. Source of Capital ………………………………………… 5 d. Years in Farming/Trading ……………………………… 5

B. Geographical Flow ……………………………………………… 6C. Marketing Channels …………………………………………… 7D. Marketing Practices and Functions…………………………… 9

1. Procurement ……………………………………………… 92. Distribution ………………………………………………… 10

E. Marketing Costs and Margins ………………………………… 111. Marketing Costs …………………………………………… 112. Marketing Margins ………………………………………… 18

F. Marketing Problems Commonly Encountered by the Respondents …………………………………………… 20

V. Definition of Terms ……………………………………………………… 22

VI. Annexes ………………………………………………………………… 26

iii 76

Ilocos Norte Pangasinan Nueva Ecija

CashLabor 6.46 2.34 3.67 Transportation 2.57 1.01 1.18 Material Inputs 0.64 0.50 0.62 Other Operating 4.15 5.96 1.30

Non-cashImputed Cost 3.09 1.31 0.85

TOTAL 16.91 11.12 7.62

Table 17a. ONION: Total marketing costs by major components, selected supply provinces, 2006

Item peso per kilogram

Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro City

Davao City

CashLabor 1.93 1.57 1.47 3.02 1.98 0.71 Transportation 2.91 5.97 3.89 1.66 2.69 1.43 Material Inputs 0.01 0.13 0.14 0.02 0.31 0.03 Other Operating 1.51 2.60 2.35 1.91 1.28 0.98

Non-cashImputed Cost 0.51 2.63 1.14 2.01 3.30 0.14

TOTAL 6.87 12.90 8.99 8.63 9.54 3.30

peso per kilogram

Table 17b. ONION: Total marketing costs by major components, selected demand areas, 2006

Item


O N I O N

IRA-LD BA-MD BA-SD Retailer

DEPRECIATIONSupplies & Equipment

Weighing scale 0.010 a/ a/ 0.001 Calculator a/ a/ a/ a/ComputerCellular phone a/Blower 0.001 Sorting table (metal) a/Money detector a/Tray a/

Transportation FacilitiesTruck 0.010 Elf a/Jeep 0.004 Multi-cab 0.020

UNPAID LABORProcurement 0.040 0.020 0.230 0.130

TOTAL 0.06 0.04 0.23 0.13 a/ less than 0.001

Table 16k. ONION: Imputed costs of marketing participants, by item, Davao City, 2006

peso per kilogramItem

75 iv

Table No. Page

1 ONION: Labor costs by marketing activity,selected supply provinces, Philippines, 2006 …………………… 11

2 ONION: Labor costs by marketing activity,selected demand areas, Philippines, 2006 ……………………… 12

3 ONION; Transportation costs, selected supply provinces, Philippines, 2006 …………………………………………………… 12

4 ONION: Transportation costs, selected demand areas, Philippines, 2006 …………………………………………………… 13

5 ONION: Materials used, selected supply provinces,Philippines, 2006 …………………………………………………… 13

6 ONION: Materials used, selected demand areas, Philippines, 2006 …………………………………………………… 13

7 ONION: Other operating costs, selected supply provinces,Philippines, 2006 …………………………………………………… 14

8 ONION: Other operating costs, selected demand areas, Philippines, 2006 …………………………………………………… 14

9 ONION: Imputed costs, selected supply provinces, Philippines, 2006 …………………………………………………… 14

10 ONION: Imputed costs, selected demand areas, Philippines, 2006 …………………………………………………… 14

11 ONION: Total marketing costs by major components, selected supply provinces, Philippines, 2006 …………………… 15

TABLE OF CONTENTS


O N I O N

v 74

IRA-LD Retailer


Weighing scale a/ 0.018 Calculator 0.001 0.571 Cellular phone 0.001 0.044 Office table a/Chair 0.002 Electric fan 0.001

Transportation FacilitiesElf 0.147 0.014

UNPAID LABORProcurement 0.152 0.615 Distribution 2.396 2.641

TOTAL 2.70 3.90 a/ less than 0.001


Table 16j. ONION: Imputed costs of marketing participants, by item, Cagayan de Oro City, 2006 TABLE OF CONTENTS (Continued)

Table No. Page

12 ONION: Total marketing costs by major components, selected demand areas, Philippines, 2006 ……………………… 15

13 ONION: Costs of production, selected supply provinces, Philippines, 2006 …………………………………………………… 18

14 ONION: Marketing Costs and Margins of marketingparticipants, Ilocos Norte, 2006 …………………………………… 19

15 ONION: Marketing Costs and Margins of marketingparticipants, Pangasinan, 2006 …………………………………… 19

16 ONION: Marketing Costs and Margins of marketingparticipants, Nueva Ecija, 2006 …………………………………… 19

17a ONION: Percent distribution of farmer-respondents, by problemencountered, selected supply provinces,Philippines, 2006 …………………………………………………… 20

18b ONION: Percent distribution of trader-respondents, by problemencountered, selected demand provinces,Philippines, 2006 …………………………………………………… 21


O N I O N

73 vi

IRA-LD Retailer

DEPRECIATIONFacilities & Equipment

Weighing scale 0.001 0.010 Calculator a/ 0.002 Cellular phone 0.002 0.009 Fax machine 0.001 Electric fan 0.018

Transportation FacilitiesTruck 0.011 Tricycle 0.038 Multi-cab 0.009

UNPAID LABORProcurement 0.251 Distribution 1.673



Table 16i. ONION: Imputed costs of marketing participants, by item, Cebu City, 2006

Figure No. Page

1 Percent distribution of respondents by type,selected provinces, Philippines, 2006 ……………………………… 4

2 Percent distribution of farmer respondents by land ownership, selected provinces, Philippines, 2006 ……………………………… 4

3 Percent distribution of traders by type of business ownership, selected provinces, Philippines, 2006 ……………………………… 5

4 Percent distribution of farmer-respondents by source of capital,selected provinces, Philippines, 2006 ……………………………… 5

5 Percent distribution of trader-respondents by source of capital, selected provinces, Philippines, 2006 ……………………………… 5

6 Percent distribution of farmer-respondents by years in farming, selected provinces, Philippines, 2006 ……………………………… 5

7 Percent distribution of trader-respondents by years in trading, selected provinces, Philippines, 2006 ……………………………… 6

8 Geographic Flow of Onion, Ilocos Norte, 2006 ……………………… 6

9 Geographic Flow of Onion, Pangasinan, 2006 ……………………… 7

10 Geographic Flow of Onion, Nueva Ecija, 2006 ……………………… 7

11 Marketing Channels of Onion, Ilocos Norte, 2006 ………………… 8

12 Marketing Channels of Onion, Pangasinan, 2006 ………………… 8

13 Marketing Channels of Onion, Nueva Ecija, 2006 ………………… 9

LIST OF FIGURES


O N I O N

IRA-LD IRA-SD Retailer

DEPRECIATIONFacilities & Equipment Weighing scale 0.004 0.012 0.003 Electric fan 0.004 Chair 0.017 Wood stand 0.004 Stroller 0.003 Coleman "Hasag" 0.004 0.015 Facilities Storage/bodega 0.021 0.026 Drying place (papag) 0.018 0.084 0.034 Transportation Facilities Forward 0.094 Kariton 0.050

UNPAID LABOR Procurement 0.627 0.400 0.748 Distribution 0.230 0.410 0.230

TOTAL 1.01 0.98 1.06

Table 16h. ONION: Imputed costs of marketing participants, by item, Legaspi City, 2006


vii 72

Figure No. Page

14 Percent distribution of respondents by mode of buying, selected provinces, Philippines, 2006 ……………………………… 10

15 Percent distribution of respondents by terms of payment in procurement, selected provinces, Philippines, 2006 ……………… 10

16 Percent distribution of respondents by mode of selling, selected provinces, Philippines, 2006 ……………………………… 10

17 Percent distribution of respondents by terms of paymentin distribution, selected provinces, Philippines, 2006 ……………… 11

18 Percent distribution of Marketing Cost of Onion,by cost component, Ilocos Norte, 2006 …………………………… 15

19 Percent distribution of Marketing Cost of Onion,by cost component, Pangasinan, 2006 ……………………………… 16

20 Percent distribution of Marketing Cost of Onion,by cost component, Nueva Ecija, 2006 ……………………………… 16

21 Percent distribution of Marketing Cost of Onion,by cost component, Metro Manila, 2006 …………………………… 16

22 Percent distribution of Marketing Cost of Onion,by cost component, Naga City, 2006 ………………………………… 17

23 Percent distribution of Marketing Cost of Onion,by cost component, Legazpi City, 2006 …………………………… 17

24 Percent distribution of Marketing Cost of Onion,by cost component, Cebu City, 2006 ………………………………… 17

LIST OF FIGURES (Continued)


O N I O N

71 viii

IRA-LD MA-SD Agent Retailer


Weighing scale 0.002 0.001 0.003 0.004 Calculator a/ 0.001 a/ 0.001 Cellular phone 0.001 0.001 Electric fan 0.001 Sorting table 0.001 Display rack 0.000 "Papag" 0.001 0.001 Umbrella 0.005 0.005

Transportation FacilitiesTruck 0.060 0.010 Elf 0.020 0.040 Jeep 0.050 Pick-up 0.160 0.060

UNPAID LABORDistribution 0.250 0.290

TOTAL 0.30 0.25 0.05 0.36 a/ less than 0.001


Table 16f. ONION: Imputed costs of marketing participants, by item, Metro Manila, 2006

IRA-LD IRA-MD Retailer


Weighing scale 0.011 0.002 0.006 Calculator 0.001 0.003 0.017 Cellular phone 0.027 0.014

Transportation FacilitiesElf 0.445 0.645 Forward 0.343 Jeep 0.150 0.147

UNPAID LABORDistribution 1.562

TOTAL 0.83 0.81 1.73


Table 16g. ONION: Imputed costs of marketing participants, by item, Naga City, 2006


Figure No. Page

25 Percent distribution of Marketing Cost of Onion,by cost component, Cagayan de Oro City, 2006 …………………… 18

26 Percent distribution of Marketing Cost of Onion,by cost component, Davao City, 2006 ……………………………… 19


O N I O N

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Item

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HIGHLIGHTS 1) Majority of the respondents interviewed operated under single-

proprietorship using personal funds to finance their business operation. Many respondents have been in the industry for about 5 to 10 years and more than 20 years. Only few were in operation for 11 to 20 years and less than 5 years.

2) There were only three types of participants involved in onion marketing,

namely: farmers, assembler-distributors or wholesalers and retailers. From the farmers, onion was distributed to the assembler-distributors and then to the retailers. Mode of procurement and distribution was usually pick up with terms of payments mostly made in cash basis.

3) The identified supply areas of onion were Ilocos Norte, Pangasinan and

Nueva Ecija. Onion supplies coming from Ilocos Norte were distributed to its respective municipalities and the provinces of Metro Manila, Cagayan, Isabela, Pangasinan, Nueva Ecija and also Metro Manila. In Pangasinan, demand areas included its municipalities and the provinces of Metro Manila, Batangas, Cavite, Pampanga, Bulacan, Zambales, Albay, Camarines Norte, and Davao. For Nueva Ecija, onion supplies were distributed within the provice and buyers outside the province coming from Metro Manila, Benguet, Cavite, Laguna, La Union, Albay, Misamis Oriental, South Cotabato and Sarangani.

4) Among the supply areas, Ilocos Norte registered the highest marketing cost

at P16.91 per kilogram. It was followed by Pangasinan at P11.12 per kilogram. Nueva Ecija recorded the lowest at P7.62 per kilogram. In the demand areas, Naga City posted the highest marketing cost at P12.90 per kilogram followed by Cagayan de Oro City at P9.54 per kilogram. The lowest marketing cost was incurred in Davao City at P3.30 per kilogram.

5) By marketing participants, the highest net margins was realized by Provincial Assembler-Medium Distributors (PA-MD) in Ilocos Norte at P9.35 per kilogram, followed by Inter-regional Assembler-Medium Distributor (IRA-MD) in Pangasinan at P6.28 per kilogram. Retailers got an average net margins of P5.98 (Pangasinan), P5.21 (Ilocos Norte) an P1.75 (Nueva Ecija).

Tabl

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O N I O N

I. INTRODUCTION

The Bureau of Agricultural Statistics (BAS) recognizes the need for marketing information and thus the effort to incorporate the generation of market and marketing-related statistics in its data systems. While price have been regularly-generated, other marketing statistics are collected occasionally and these are limited to selected types of crop, livestock and fishery commodities.

This particular study intends to provide updated information on

marketing costs structure of onion - the flow, participants and the margins at current levels. II. OBJECTIVES The general objective of this study was to determine the marketing costs structure of onion. Specifically, it aimed to:

1. identify and characterize the marketing participants involved; 2. determine the flow and channels of distribution of onion; 3. determine the practices in marketing of onion among participants;

and 4. determine the components of marketing costs of onion by type of

marketing participants. III. METHODOLOGY

Research Site The study covered three (3) onion supply provinces and six (6) demand areas. For supply areas, the provinces covered Ilocos Norte, Pangasinan and Nueva Ecija while demand areas included Metro Manila, Naga City, Legaspi City, Cebu City, Cagayan de Oro City and Davao City. Supply provinces were chosen based on their significant contribution to the total onion production in the country. The combined onion production of these areas accounted for more than 50 percent of national total. Demand provinces, however, were identified as the distribution and consumption areas of onion produced from the supply provinces. These provinces were identified during the interview phase in the supply areas.

1 68

Farmers RA-LD PA-LD PA-MD MA-LD Retailers

DEPRECIATIONSupplies & equipment

Weighing scale 0.033 0.007 0.01 a/ 0.007 0.013Calculator 0.019 0.001 0.001 a/ 0.004Cellular phone 0.034 0.007 0.012 a/ 0.004 0.033Paleta 0.006 a/

FacilitiesStorage/bodega 0.381 0.016 0.041

Transportation FacilitiesTruck 0.039 0.009Elf 1.300 0.015 0.216Jeep 0.039Tricycle 0.039 0.009 a/ a/Trailer 0.015Pick-up 0.234Forward 0.763Van 0.051

UNPAID LABORProcurement 0.016 0.025Distribution 3.186 0.300 1.605 0.133 0.893

TOTAL 6.049 0.395 0.023 0.020 0.328 0.943 a/ less than 0.0001

peso per kilogram

Table 16c. ONION: Imputed costs of of marketing participants, by item, Ilocos Norte, 2006

Item


O N I O N

Sample Selection The study utilized information from both producers and traders. The producers were interviewed to gather information on pre-marketing activities while traders were the sources of information on actual marketing practices. Selection of samples for the two types of respondents was done differently.

a. Farmers From the list of onion farmers covered by the Cost and Returns Survey (CRS) of the BAS, the research team purposively selected 20 sample farmers who have undertaken pre-marketing activities. The 20 sample farmers were distributed proportionately among the top producing municipalities, wherein, the most number of samples were chosen from the largest producing area.

b. Traders In selecting sample traders, a snowball sampling technique was adopted. It is non-probability sampling method used when participants with specific characteristics are required and when there is difficulty in locating respondents with the characteristic of interest. This approach accumulated the data gathered from one trader respondent to another respondent at different levels of commodity marketing system. In the study, a minimum of three and maximum of five respondents per type of marketing participants were interviewed in each trading site. For additional information, key players of the commodity marketing system were also interviewed. These included the market masters, barangay chairmen, “kargador”, drivers, etc. IV. DISCUSSION OF RESULTS

The study covers the costs incurred by the marketing participants in trading onion from the production point to the consumption point. The first part presents the profile of respondents while marketing practices and marketing cost components are discussed at the later part of the report. All relevant tables containing the details on the profile of respondents and the marketing costs item are appended.

67 2

Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro City

Davao City


Weighing scale 0.002 0.006 0.006 0.006 0.009 0.003 Calculator 0.001 0.007 0.001 0.286 a/Cellular phone 0.001 0.020 0.006 0.023 a/Fax machine 0.001 Display rack a/Office table a/Chair 0.017 0.002 Electric fan 0.001 0.004 0.018 0.001 Blower 0.001 Stroller 0.003 LonaWooden stand (palete) 0.004 Money detector a/Tray a/Coleman "Hasag" 0.010 Umbrella 0.005

FacilitiesStorage/bodega 0.024 "Papag" (used in drying) 0.001 0.046 Sorting table (metal) 0.001 a/

Transportation FacilitiesTruck 0.035 0.011 0.010 Elf 0.030 0.545 0.081 a/Jeep 0.050 0.149 0.004 Forward 0.343 0.094 Pick-up 0.110 Tricycle 0.038 Multi-cab 0.009 0.020 Kariton 0.051

UNPAID LABORProcurement 0.592 0.251 0.384 Distribution 0.270 1.562 0.290 1.673 2.519 0.105

TOTAL 0.506 2.632 1.138 2.014 3.303 0.143 a/ less than 0.001

peso per kilogram

Table 16b. ONION: Imputed costs by item, selected demand areas, Phili ppines, 2006

Item


O N I O N

A. Number and Profile of Respondents

1. Number of Respondents

Two (2) types of respondents were interviewed in the study, the farmers and traders. From the provinces covered, there were 221 respondents, 27% of whom were farmers and 73% were traders. The 161 trader-respondents were further classified into different types as follows: large distributors (62); medium distributors (14); small distributors (11); assemblers (7); agents (2); and retailers (65). They were classified based on their sphere of influence, geographical coverage and volume of transaction.

2. Profile of Respondents

a. Land Ownership of Farmers. Sixty two percent (62%) of the farmer-respondents owned the onion farm. Twelve (12) respondents or 20% were tenants, six were lessees, two were awardees of Certificate of Land Transfer (CLT), two occupied a rent-free farm and one was a contract grower (Figure 2). b. Type of Business Ownership of Traders. Almost all respondents (99%) were single proprietors. The remaining one percent had partners in their onion trading business (Figure 3).

Figure 1. Pe rce nt distribution of re sponde nt, by type , se le cted province s,

Phil ippine s, 2006

T rader73%

Farmer27%

Source: Annex Table 1

3 66



Weighing scale 0.014 0.002 0.002 Calculator 0.006 0.000 0.004 Cellular phone 0.018 0.001 0.007 Chair a/Electric fan 0.001 Blower a/ a/Stroller a/Lona 0.004 Wooden stand (palete) 0.006 0.001 Sizer a/

FacilitiesStorage/bodega 0.146 0.002 0.020 "Papag" (used in drying) 0.009

Transportation FacilitiesTrailer 0.055 Truck 0.024 0.330 0.007 Elf 0.510 0.083 0.011 Jeep 0.039 0.093 0.010 Forward 0.763 0.147 Tractor 0.190 Trailer 0.015 0.019 Pick-up 0.234 Van 0.051 Tricycle 0.024 0.054

UNPAID LABORProcurement 0.021 Distribution 1.223 0.619 0.483

TOTAL 3.09 1.31 0.85 a/ less tha 0.001

peso per kilogram

Table 16a. ONION: Imputed costs by item, selected supply provinces, Philippines, 2006

Item

Figure 2. Percent distribution of farmer-respondents by land ownership, se lected

provinces, Philippines2006

Owner62%

Tenant20%

Leasee10%

CLT-holder3%

Rent Free3%

Contract grower

2%



O N I O N

c. Source of Capital. There were two (2) sources of capital identified by the farmer-respondents. Ninety seven percent (97%) used their own capital to finance their operation and three percent (3%) borrowed from relatives.

At the trader level, about 88% or 142 respondents declared that they have their own capital and 12% or 19 respondents used borrowed capital.

d. Years in Farming/Trading. Twenty-two farmer-respondents or 37% were in onion farming for 21 years and above. The rest had been in this venture for 5 –10 years (25%), 16-20 years (23%), and 11 – 15 years (10%). About 5% of the respondents were in onion farming for 5 years.

Forty percent (40%) or 63 trader-respondents were in the business for 5 – 10 years. About 17% each of the trader-respondents were in the business f 11 15 d 21 d

65 4

Figu re 3. Pe rce n t distribu tion of trade rs by type of bu sin e ss own e rsh ip, se le cte d

province s , Ph i l ippine s , 2006

P artner-ship1%

Single P roprie-torship

99%


Figure 4. Percent distribution of farmer-respondents by source of capital, se lected

provinces, Philippines, 2006

self financed

97%

borrowed3%


Fi g u re 5 . P e rce n t di s tri bu ti o n o f tra de r-re s po n de n ts by s o u rce o f ca pi ta l , s e l e cte d

pro vi n ce s , P h i l i ppi n e s , 2 0 0 6

self f in an ced

8 8 %

bo rro wed 1 2 %


F ig ure 6 . P e rc e nt d is t rib ut io n o f f arme r- re s p o nd e nt s , b y ye ars in

f arming , s e le c t e d p ro v inc e s , P hil ip p ine s , 2 0 0 6

5 - 1025%

> 55%

21 & above37%

11 - 1510%

16 - 2023%

Source: Annex Table 6a


Market fee/ticket 0.010 Stall rental/fee 0.100 0.006 0.060 0.030 WS* calibration fee a/ a/ a/ 0.001 Business Permit 0.001 0.001 0.010 0.002 Mayor's permit 0.060 0.290 1.260 0.001 Cell card 0.010 Electricity 0.010 0.001 0.030 Shrinkage 0.130 0.140 0.140 0.190 Meals & snacks 0.040 0.008 0.063 0.050 Others: Garbage fee a/ a/ 0.001 0.002 Health certification 0.010 0.030 0.070 0.001 Sanitary Permit 0.010 0.070 0.310 a/Sanitary inspection 0.010 - Renew sticker 0.040 0.030 0.150 a/Sign board 0.001 Tax clearance a/ 0.010 0.040 a/Zoning fee a/Fire safety fee 0.010 0.070 0.300 a/

Total 0.42 0.67 2.41 0.32 * Weighing scalea/ less than 0.001

Table 15k. ONION: Other operating costs, incurred by marketing participants, by item, Davao City, 2006

price per kilogramItem


O N I O N

for 11-15 years and 21 years and above, respectively. Fourteen (14%) or 23 respondents were in the business for less than 5 years while 12% or 19 respondents had 16-20 years of experience.

B. Geographic Flow 1. Ilocos Norte

The major onion supply areas in the province were the municipalities of Vintar, Pasuquin, Burgos, Bacarra, and Badoc. Aside from these areas, onion was sourced from nearby municipalities of Ilocos Sur. The main trading centers within the province were the Public Markets of Laoag City and Badoc with Wednesday and Friday as trading days. During these days, farmers and traders within and outside the province meet together for direct buying and selling. Outside destinations included the provinces of Cagayan, Isabela, Pangasinan, Nueva Ecija, and Metro Manila.

2. Pangasinan

The identified top onion producing municipalities in Pangasinan were Bayambang, Bautista, San Quintin and Umingan. From the supply barangays, onions were brought to Bayambang “Bagsakan” situated in front of the town public market. Wholesale transaction was also being done at the Urdaneta City Trading Center. From the trading centers, onions were distributed within the province. Outside destination points included the provinces of Pampanga, Zambales, Nueva Ecija, Bulacan, Batangas, Cavite and Laguna. Supplies of onion were also brought to Metro Manila as a

5 64

Figure 7. Percent distribution of trader-respondents, by years in trading, se lected


21 & above17%

16-2012%

11-1517%

> 514%

5-1040%

Source: Annex Table 6b

Laoag City Public Market Badoc Public Market

Within the province

Cagayan, Isabela, Pangasinan, Nueva Ecija, Metro Manila

Figure 8. Geographic Flow of Onion, Ilocos Norte, 2006

Vintar, Badoc, Pasuquin, and Bacarra

Ilocos Sur

IRA-LD Retailer

Entrance fee 0.003 Market fee 0.003 0.029 Stall rental/fee 0.053 0.174 Parking fee 0.017 WS* calibration fee 0.001 Business Permit 0.010 0.060 Cell card 0.012 0.247 Electricity 0.055 3.958 Water 0.023 Wastage 0.862 Shrinkage 0.222 Meals & snacks 0.045 0.831

TOTAL 0.20 6.40 * Weighing scale

Table 15i. ONION: Other operating costs, incurred by marketing participants, by item, Cebu City, 2006


IRA-LD Retailer

Entrance fee 0.005 Stall rental/fee 0.492 0.086 Warehouse fee 0.049 Agent commission 0.014 Business Permit 0.007 0.019 Telephone 0.009 Electricity 0.006 Water 0.003 Wastage 1.066 0.557 Meals & snacks 0.090 0.078

TOTAL 1.74 0.74


Table 15j. ONION: Other operating costs, incurred by marketing participants, by item, Cagayan de Oro City, 2006


O N I O N

and Laguna. Supplies of onion were also brought to Metro Manila as a transshipment point from supply provinces to demand areas in the Visayas and Mindanao. Onions from Pangasinan were also reportedly brought to the Bicol region.

3. Nueva Ecija

The major supply

areas of onion in the province were the municipalities of Bongabon, Rizal, Talavera, Pantabangan and the cities of San Jose & Palayan. Most onions produced in the province were traded in the markets of San Jose City, San Leonardo, Cabanatuan City and Sangitan. Large volumes of onion were brought to Metro Manila and to other regions in Luzon, Visayas and Mindanao.

C. Marketing Channels 1. Ilocos Norte

There were two identified linkages in marketing of onion in the province. One which is more prominent was that, from the farm, farmers sold their produce to regional and provincial assemblers who sold out onions to buyers outside the province The other linkage involved farmers distributing

63 6

Bayambang Bagsakan Area Urdaneta Trading Center

Within the province

Metro Manila Batangas, Cavite

Pampanga Bulacan Zambales

Bicol Region Misamis Or. Davao

Figure 9. Geographic Flow of Onion, Pangasinan, , 2006

Bayambang, Baustista San Quintin, Umingan Nueva Ecija

Figure 10. Geographic Flow of Onion, Nuev Ecija,2006

Sangitan P. M Cabanatuan City P.M San Jose P.M. San Leonardo P.M.

Within the provinceMetro Manila,

Benguet, , Cavite , Laguna, La Union,

Albay, Misamis Oriental, South Cotabato Sarangani

Bongabon, Talavera,, Rizal, San Jose City

Pantabangan, Palayan City

Pangasinan Ilocos Sur Ilocos Norte


Market fee 0.162 0.913 0.175 Stall rental/fee 0.509 0.584 0.223 Commission fee 0.370 Business Permit 0.013 0.107 Cell card 0.036 0.131 Electricity 0.103 0.046 Water 0.037 Meals & snacks 0.767 0.236 Others

toll gate 0.240 stall repair 0.051 kerosene 0.037

TOTAL 1.47 2.40 0.84


Table 15h. ONION: Other operating costs, incurred by marketing participants, by item, Legaspi City, 2006


Market fee 0.491 Parking fee 0.042 Stall rental/fee 0.029 0.131 WS* calibration fee a/ 0.001 Business permit 0.104 0.240 Electricity 0.481 0.254 0.120 Water 0.058 Meals & snacks 0.569 0.577 Others:

tong 0.125 toll gate fee 0.720 garbage fee 0.049

Total 2.07 1.02 0.90 * Weighing scale

peso per kilogram

Table 15e. ONION: Other operating costs, incurred by marketing participants, by item, Naga City, 2006

Item

Table 15g. ONION: Other operating costs, incurred by marketing participants, by item, Naga City, 2006

a/ less than 0.001


O N I O N

buyers outside the province. The other linkage involved farmers distributing onions to municipal assemblers to retailers and then to end users. This second linkage, provided the local requirement for onions within the province. 2. Pangasinan During harvest season, about 70% of the volume of onions assembled at the farm by the municipal and provincial assemblers were sold to inter regional assembler-distributor. From this stage, onions were passed to buyers outside the province while some were stored in bodega for anticipation of high price during lean months. All participants supplied onions to retailers, but the most common practice and the longest channel was that of farmer → MA/LD → PA/LD → IRA/LD → retailers → consumer chain.

3. Nueva Ecija

There were various types of assembler-distributors identified as players in onion marketing in Nueva Ecija. It ranged from barangay to interregional assemblers and small to large distributors performing similar trading practices. These traders assembled their onions which were sourced from farmers, agents and traders outside the province and distributed the same to buyers outside the

7 62

Figure 12. Marketing Channels for onion, Pangasinan, 2006

FARMER

MA-LD

PA-MD

IRA-LD IRA-MD

RETAILER

CONSUMER

AGENT

BA

SOP BOP

Storage

Figure 11. Marketing Channels of Onion, Ilocos Norte, 2006

RETAILER

CONSUMER

SOP

BOP

RA-LD MA-LDPA-LD

FARMER

IRA-LD MA-SD AGENT Retailer

Stall rental/fee 0.220 0.040 0.009 WS* calibration fee 0.004 a/ 0.010 a/Commission fee 0.400 Business Permit 0.030 0.002 Mayor's permit 0.010 Cell card 0.001 Electricity 0.070 0.002 0.001 Water 0.003 Wastage 0.040 Shrinkage 0.610 0.820 0.720 Meals & snacks 0.150 0.010 0.340 Others

Garbage fee a/ a/ a/ 0.001 Health certification 0.020 a/ a/Sanitary Permit a/ 0.001 a/ 0.001 Sign board inspection fee a/ 0.001 0.001 a/Fire safety fee a/ 0.060 a/ 0.006 BR** plate fee a/ 0.001 a/ 0.050 Building inspection fee a/ a/

Total 1.36 1.05 0.78 0.45 * Weighing scale**Business Registrationa/less than 0.001

peso per kilogram

Table 15f. ONION: Other operating costs, incurred by marketing participants, by item, Metro Manila, 2006

Item


O N I O N

traders outside the province and distributed the same to buyers outside the province. They also made use of the storage facilities to reserve surplus onions in anticipation for low supply level during lean seasons.

Onions in Nueva

Ecija passed through a long chain of participants before reaching the consumers, i.e., farmer → agent → ADs → retailer → consumer.

D. Marketing Practices and Functions

In buying and selling onions, farmers and traders performed several functions that add value to the products. The mode of delivery and terms of payment affect somehow the costs incurred in the procurement and distribution of the products. 1. Procurement

In the supply areas, traders procured onion from the producing barangays directly from the farmers especially during harvest season. During lean months or off seasons, traders sourced their supply from other traders who had the capacity to store onions.

a. Mode of Buying

Of the traders interviewed, 69% picked up onions from their suppliers and 30% let their suppliers delivered the products to their stalls. Two trader respondents or 1% practiced both pick up and delivery as their mode

61 8

Figure 13. Marketing Channels for Onion, Nueva Ecija, 2006

FARMER

AGENT BODEGA

ASSEMBLER/ DISTRIBUTOR

RETAILER

CONSUMER

SOP BOP

Farm

erIR

A-LD

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c. O

NIO

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O N I O N

trader-respondents or 1% practiced both pick-up and delivery as their mode of procurement.

b. Terms of Payment

About 82% of the trader-

respondents reported that they paid their suppliers in cash. Ten percent (10%) said that they opted to pay after one day of transaction and 8% stated that they practiced both cash and credit as terms of payment.

2. Distribution

Traders involved in onion marketing performed their distribution functions with varying modes and terms of payment depending on the market supply and demand situation.

a. Mode of Selling

The buyers commonly picked up their onions from the supply areas as represented by 67% of the respondents. These traders believed that they can be assured of the quality if they pick up the products by themselves. On the other hand, about 30% of the respondents relied on the onions delivered by their suppliers to their stalls, but they believed that this practice could help them establish a “suki” or good customer relationship.

9 60

Figure 14. Percent distribution of respondents, by mode of buying, se lected

areas, Philippines, 2006

both1%delivered

30%

picked-up69%


F ig ure 15 . P e rc e nt d is tribut io n o f re s po nde nts , by te rm s o f pa ym e nt ,

s e le c te d pro v inc e s , P hilippine s , 2 0 0 6

cas h82%

credit10%

bo th8%


Figure 16. Percent distribution of respondents, by mode of se ll ing, se lected


delivered30%

picked-up67%

both3%


Farmer IRA-LD IRA-MD PA-MD MA-LD BA Agent Retailer

Entrance fee 0.056 0.667 0.004 Market fee 0.006 0.037 0.009 0.004 0.146 Stall rental/fee 0.006 0.018 0.005 WS* calibration fee a/ 0.001 a/ 0.001 0.004 Commission fee 0.406 0.370 0.370 Storage fee 4.867 Business Permit 0.006 0.015 0.011 0.063 0.019 Cell card 0.013 0.050 0.035 0.014 0.015 Electricity 0.014 0.019 0.005 0.001 Water 0.014 Shrinkage 0.137 0.226 Meals & snacks 0.064 0.177 0.038 0.017 0.351 Others

goodwill fee 0.004

TOTAL 0.08 5.73 0.47 1.37 0.10 0.00 0.02 0.52 * Weighing scalea/ less than 0.001

Table 15d. ONION: Other operating costs, incurred by marketing participants, by item, Pangasinan, 2006



O N I O N


Entrance fee 0.108 0.023 Market fee 0.082 0.041 0.091 Stall rental/fee 1.066 Commision fee 0.100 WS* calibration fee 0.019 0.004 0.048 Business Permit 0.006 0.053 0.062 Mayor's permit 0.467 Cell card 0.060 0.001 0.055 0.259 Telephone 0.017 Electricity 0.131 Wastage 0.300 Shrinkage 1.000 Repair and maintenance 1.000 0.039 Meals & snacks 0.158 0.024 0.455 0.233 0.382

TOTAL 1.41 0.51 0.71 0.23 0.00 3.42 * Weighing scale

peso per kilogram

Table 15c. ONION: Other operating costs, incurred by marketing participants, by item, Ilocos Norte, 2006

Item

b. Terms of Payment Majority (93%) of the respondents sold their products on cash basis. About five percent (5%) practiced a combination of cash and credit. One percent (1%) disposed their products on credit. Two respondents from the supply area stated that they received a kilogram of rice in exchange for one kilogram of onions.

E. Marketing Costs and Margins 1. Marketing Costs

Moving onions from the supply areas to consumption areas entails a number of cost items. The costs incurred by identified marketing participant vary depending on the extent of their marketing operations. The succeeding topics discuss the major components of marketing costs for labor, transportation, materials, other operating expenses and imputed costs.

a. Labor Costs Labor costs are expenses incurred or paid for the services rendered by the workers during the procurement and distribution of the products. The identified labor expenses include hauling, cleaning, sorting, and bundling, weighing, packing and loading and unloading both in supply and demand areas.

Among the supply areas,

Ilocos Norte recorded the highest labor cost at P6.47 per kilogram. Nueva Ecija and Pangasinan spent

f P3 6 d

59 10

F ig ure 17 . P e rc e nt d is tribut io n o f re s po nde nts , by te rm s o f pa ym e nt , s e le c te d a re a s , P hilippine s , 2 0 0 6

credit1%

barte r1%

bo th 5%

cas h93%



Table 1. ONION: Labor costs by marketing activity, selected supply provinces, Philippines, 2006

(peso per kilogram)

Activity Ilocos Norte Pangasinan Nueva Ecija

Procurement 1.23 1.03 1.63

Distribution 5.24 1.34 2.04

TOTAL 6.47 2.34 3.67


O N I O N

Entrance fee 0.003 0.005 Market fee/ticket 0.491 0.417 0.016 0.010 Stall rental/fee 0.090 0.080 0.439 0.114 0.289 0.049 Parking fee 0.042 0.017 Agent commission/fee 0.400 0.370 0.014 WS* calibration fee 0.004 0.001 0.001 a/Warehouse fee 0.050 Business Permit 0.016 0.172 0.060 0.035 0.013 0.004 Mayor's permit 0.010 0.403 Cell card 0.001 0.084 0.129 0.010 Telephone 0.009 Electricity 0.024 0.285 0.074 0.055 0.006 0.014 Water 0.003 0.058 0.074 0.023 0.003 Meals & snacks 0.167 0.573 0.501 0.438 0.084 0.040 Wastage 0.040 0.862 0.812 Shrinkage 0.717 0.222 0.150 Repair & maintenance 0.051 Others** 0.042 0.894 0.277 0.300

TOTAL 1.51 2.60 2.35 1.91 1.28 0.98 * Weighing scale** include garbage fee, health certification fee, inspective fee, renew sticker, sign board fee, tax clearance fee, zoning fee, firesafety fee, business registration plate fee, building inspectiion feea/ less than 0.001

Item

Table 15b. ONION: Other operating costs, by item, selected demand areas, Philippines, 2006

peso per kilogram

Cagayan de Oro City

Davao City

Metro Manila

Naga City

Legaspi City

Cebu City

averages of P3.67 and P2.34, respectively. The costs of labor in the procurement of onions ranged from P1.00 to P1.63 per kilogram while distribution entailed costs ranging from P1.34 to P5.24 per kilogram.

At the demand areas, Cebu City had the highest labor cost at P3.02, followed by Cagayan de Oro City at P1.98 and Metro Manila at P1.93 per kilogram. On the other hand, Naga City posted an average labor cost of P1.58; Legaspi City at P1.47 and Davao City at P0.72 per kilogram. Labor costs in procurement ranged from P0.02 to P1.66 per kilogram, while, in distribution, the costs ranged from P0.70 to P1.36 per kilogram.

b. Transportation Costs

Transportation costs include all expenses incurred in moving the products from one place to another.

Ilocos Norte came up with the

highest transport costs among the supply provinces. This amounted to P1.96 if the vehicle used was rented and P0.62 per kilogram for gas and oil if private vehicle was used. Pangasinan recorded an average transportation costs at P 0.75 per kilogram for rentals and P0.26 for gas and oil. In Nueva Ecija, on the other hand, posted P0.96 for rental and P0.23 for gas and oil for owned vehicles.

From the demand areas, Naga, Legaspi and Cagayan de Oro cities

recorded more than P2.00 per kilogram for renting vehicles in procurement.

11 58


Table 2. ONION: Labor costs by marketing activity, selected demand areas, Philippines, 2006

(peso per kilogram)

Activity Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro

City

Davao City

Procurement 0.63 0.77 0.53 1.66 0.78 0.02

Distribution 1.30 0.81 0.94 1.36 1.20 0.70

TOTAL 1.93 1.58 1.47 3.02 1.98 0.72

Table 3. ONION: Transportation costs, selected supply provinces, Philippines, 2006

(peso per kilogram)

Item Ilocos Norte Pangasinan Nueva Ecija

Vehicle rental Procurement 0.86 0.54 0.54 Distribution 1.10 0.21 0.42

Private vehicle Gas & oil 0.62 0.26 0.23



O N I O N

In using privately owned vehicle, transportation costs of traders in Cebu, Cagayan de Oro and Davao cities amounted to less than P0.10 per kilogram. Naga City, however, posted a relatively high cost for gas and oil at P3.19 per kilogram.

c. Material Costs The common materials used by the respondents in onion trading are red bags, tying materials such as twine and bamboo strips.

The average costs of

materials used in the supply areas ranged from P0.51 in Nueva Ecija to P0.64 per kilogram in Ilocos Norte. In Pangasinan, the cost of materials was P0.51 per kilogram.

At the demand areas,

Cagayan de Oro City had the highest cost of materials at P0.31, followed by Legaspi City and Naga City at P0.14 and P0.13 per kilogram, respectively.

d. Other Operating Costs

Listed in Annex Table 15 are the various operating costs of marketing participants in all provinces covered. Among these costs are rentals, licenses, utility fee, market fees, etc

57 12


Table 5. ONION: Materials used, selected supply provinces, Philippines, 2006

(peso per kilogram)


0.64 0.51 0.62

Table 4. ONION: Transportation costs, selected demand areas, Philippines, 2006 (peso per kilogram)

Item Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro

City

Davao City

Vehicle rental

Procurement 1.94 2.78 2.40 1.62 2.62 1.40

Distribution 0.46

Private vehicle

Gas & oil 0.51 3.19 1.50 0.03 0.07 0.03 Source: Annex Table 13



Entrance fee 0.066 0.242 0.001 Market fee/ticket 0.071 0.040 0.118 Stall rental/fee 1.066 0.010 0.177 Parking fee 0.007 Commission fee 0.100 0.382 0.480 WS* calibration fee 0.024 0.001 0.001 Storage fee 4.867 Business Permit 0.040 0.023 0.223 Mayor's permit 0.467 Cell card 0.094 0.025 0.019 Telephone 0.017 0.020 Electricity 0.131 0.040 0.081 Water 0.014 0.001 Wastage 0.300 Shrinkage 1.000 0.181 a/Rrepair & maintenance 0.520 Meals & snacks 0.250 0.129 0.106 Others** 0.004 0.067

TOTAL 4.15 5.96 1.30 * Weighing scale** include toll fee, goodwill fee & tonga/ less than 0.001

peso per kilogram

Table 15a. ONION: Other operating costs, by item, selected supply provinces, Philippines, 2006

Item

Table 6. ONION: Materials used, selected demand areas, Philippines, 2006 (peso per kilogram)

Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro

City Davao City

0.01

0.13

0.14

0.02

0.31

0.03


O N I O N

At the supply areas, Pangasinan got the highest operating expenses at P5.96 per kilogram. Ilocos Norte followed at P4.15 per kilogram while Nueva Ecija spent P1.30 per kilogram.


Naga City and Legaspi City posted average costs of P2.60 and P2.35 per kilogram, respectively. Other cities recorded lower operating costs per kilogram at P1.91 (Cebu); P1.51 (Metro Manila.); P1.28 (Cagayan de Oro) and P0.98 (Davao).

e. Imputed Costs

Ilocos Norte had the highest imputed costs per kilogram among the supply areas at P1.85 for depreciation and P1.24 for unpaid labor. Nueva Ecija ranked next at P2.44 per kilogram, in which P0.36 was for depreciation and P2.08 for unpaid labor. Pangasinan got less than a peso per kilogram for both imputed items.

The cost of

depreciation in the demand areas ranged from P0.04 (Davao City) to P1.07 per kilogram (Naga City). Meanwhile, imputed cost for unpaid labor was lowest in Davao City at P0.11 and highest in Cagayan de Oro City at P2.90 per kilogram.

13 56




Table 9. ONION: Imputed cost, selected supply provinces, Philippines, 2006

(peso per kilogram)

Item Ilocos Norte Pangasinan Nueva

Ecija

Depreciation 1.85 0.69 0.36 Unpaid Labor 1.24 0.62 2.08

TOTAL 3.10 1.31 2.44

Table 10. ONION: Imputed cost, selected demand areas, Philippines, 2006 (peso per kilogram)

Item Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro

City

Davao City

Depreciation 0.24 1.07 0.26 0.09 0.40 0.04

Unpaid Labor 0.27 1.56 0.88 1.92 2.90 0.11

TOTAL 0.51 2.63 1.14 2.01 3.30 0.14 Source: Annex Table 16


plastic bag 0.10 0.08 winnow "bilao" 0.00 trapal 0.05

TOTAL 0.05 0.10 0.08

Table 14h. ONION: Cost of materials incurred by marketing participants, by item, Legaspi City, 2006


IRA-LD Retailer

Plastic bag 0.11 Red bag 0.21

TOTAL 0.21 0.11


Table 14j. ONION: Cost of materials incurred by marketing participants, by item, Cagayan de Oro City, 2006


Plastic bag 0.01 0.00 0.09 0.02

TOTAL 0.01 0.001 0.09 0.02

Table 14k. ONION: Cost of materials incurred by marketing participants, by item, Davao City, 2006


IRA-LD Retailer

plastic bags 0.00 0.02 basket 0.01

TOTAL 0.00 0.03


Table 14g. ONION: Cost of materials incurred by marketing participants, by item, Cebu City, 2006

Table 7. ONION: Other operating costs, selected supply provinces, Philippines 2006 (peso per kilogram)

Ilocos Norte Pangasinan Nueva Ecija 4.15

5.96 1.30

Table 8. ONION: Other operating costs, selected demand areas, Philippines 2006 (peso per kilogram)

Metro Manila

Naga C ity

Legaspi City

Cebu City

Cagayan de Oro

City Davao City

1.51 2.60

2.35 1.91

1.28 0.98

Table 14i. ONION: Cost of materials incurred by marketing participants, by item, Cebu City, 2006


O N I O N

Plastic bag 0.008 Bilao 0.008 0.001

TOTAL 0.01 0.01 0.00


Table 14f. ONION: Cost of materials incurred by marketing participants, by item, Metro Manila, 2006

Agent RetailerIRA-LD

Average Marketing Costs

In the supply areas, non-cash costs ranged from P6.77 to P13.82 per kilogram, while cash costs ranged from P0.85 to P3.09 per kilogram. Ilocos Norte got the highest total average cost at P16.91. Pangasinan recorded at P11.31 while Nueva Ecija posted at P7.62 per kilogram.

At the demand areas, non-

cash costs ranged from P3.15 to P10.27 per kilogram. Cash costs ranged from P0.14 to P4.39 per kilogram. The highest average marketing cost was noted in Naga City at P12.90 while the lowest was in Davao City at P3.30 per kilogram.

Figures 18-20 depict the percent distribution of each cost component

for the supply areas while Figures 21-26 describe for the demand areas. Supply Areas

a. Ilocos Norte

Among the supply areas covered, Ilocos Norte incurred the highest marketing cost at P16.91 per kilogram. Labor accounted for 38%, other operating expenses 25%, imputed cost 18%, and transportation cost 15%. The cost of materials shared four percent.

55 14




plastic bag 0.09 0.08 0.16 tiklis/basket 0.01 0.01 winnow " bilao" 0.01 0.00 wooden box 0.00

TOTAL 0.10 0.10 0.16

Table 14g. ONION: Cost of materials incurred by marketing participants, by item, Naga City, 2006


red bag 0.28 0.23 0.35 0.25 0.33 0.32 twine 0.00 0.01 0.00 twine 0.00 a/ 0.00 plastic bag 0.02 0.01 needle a/

TOTAL 0.28 0.23 0.36 0.25 0.35 0.32 0.01 a/ less than 0.0001

Item

Table 14c. ONION: Cost of materials incurred by marketing participants, by item, Nueva Ecija, 2006

peso per kilogramPA-MD MA-SD AssemblerFarmer IRA-LD PA-LD Retailer

Table 11. ONION: Total marketing costs by major component, selected supply provinces, Philippines, 2006 (peso per kilogra m)


Non-cash 13.82

10.00 6.77

Cash

3.09

1.31 0.85

TOTAL

16.91

11.31 7.62

Table 12. ONION: Total marketing costs by major component, selected demand areas, Philippines, 2006 (peso per kilogram)

Item Metro Manila

Naga City

Legaspi City

Cebu City

Ca gayan de Oro

City

Davao City

Non-cash 6.36

10.27

7.86

6.61

6.27

3.15

Cash 0.51

2.63

1.56

2.02

4.39

0.14

TOTAL 6.87

12.90

9.42

8.63

10.65

3.30

Figure 18. Percent distribution of marketing

costs of onion, by cost component, Ilocos Norte, 2006

Labor38% Imputed

Cost18%

Other Operating

25%Material s

4%

Transpor-tation 15%


Table 14e. ONION: Cost of materials incurred by marketing participants, by item, Nueva Ecija, 2006


O N I O N

b. Pangasinan

Farmers and traders in Pangasinan recorded an average marketing cost of P11.12 per kilogram. Half of this (54%) accounted for other operating expenses. The shares of other cost components were: labor cost (21%), imputed cost (12%), transportation (9%) and materials (4%). c. Nueva Ecija

In Nueva Ecija, an average of P7.62 per kilogram was spent by the respondents in the marketing of onions. About 40% were spent for labor, 26% for imputed items and 14% for other operating expenses. The costs of transportation and materials shared 13% and 7%, respectively.

Demand Areas

a. Metro Manila Traders in Metro Manila spent an average of P6.87 per kilogram in onion marketing. About 43% were spent for transportation, 28% for labor, and 22% for other operating expenses. About 7 percent represented imputed cost of marketing.

15 54

Fi g u r e 19 . P e r c e n t a g e d i s t r i b u t i o n o f m a r k e t i n g c o s t s , b y c o s t c o m p o n e n t ,

P a n g a s i n a n , 2 0 0 6

Imput e d Cost12%

La bor21%

Tra nspor-t a t ion

11%

Ma t e r ia ls 4%

Ot he r Ope ra t ing

52%

S ource: A nnex Tab le 17

Fi g u r e 2 0 . P e r c e n t a g e d i s t r i b u t i o n o f m a r k e t i n g c o s t s , b y c o s t c o m p o n e n t s ,

N u e v a Ec i ja , 2 0 0 6

Imput e d Cost26%

La bor40%

Tra nspor-t a t ion

13%Ma t e ria l

7%


14%


Fi g u r e 2 1. P e r c e n t a g e d i s t r i b u t i o n o f m a rk e t i n g c o s t s , b y c o s t c o m p o n e n t s ,

Me t ro Ma n i l a , 2 0 0 6

Labor28%

Transport a t ion 43%

Ma t e ria ls0%


22%

Imput ed Cost7%

7

So urce: A nnex Tab le 17

red bag 0.353 twine 0.002 0.002 0.002 0.327 0.001 plastic bag 0.058 0.003 0.155 kaing 0.005 basket a/bilao 0.002 basin 0.002 pail 0.002 trapal 0.002

TOTAL 0.36 0.002 0.002 0.38 0.004 0.16 a/ less than 0.001

Table 14d. ONION: Cost of materials incurred by marketing participants, by item, Pangasinan, 2006

peso per kilogramPA-MD MA-LDFarmer IRA-LD IRA-MD RetailerItem

Farmers RA-LD PA-LD Retailers

Sacks 0.093 0.300 Plastic bag (small) 0.245 Red bag 0.155 0.080 Bamboo strips 0.078

TOTAL 0.33 0.30 0.08 0.25

Table 14a. ONION: Cost of materials incurred by marketing participants, by item, Ilocos Norte, 2006


Figure 19. Percent distribution of marketing costs of onion, by cost component, Pangasinan, 2006

Figure 20. Percent distribution of marketing costs of onion, by cost component, Nueva Ecija, 2006

Figure 21. Percent distribution of marketing costs of onion, by cost component, Metro Manila, 2006

Table 14c. ONION: Cost of materials incurred by marketing participants, by item, Ilocos Norte, 2006

Transpor -tation 9%

Operating 54%


O N I O N

b. Naga City Among the six demand areas, Naga City posted the highest average marketing cost at P12.98 per kilogram. The cost of transportation accounted for 47%, while other operating costs and imputed costs made up 20% each. The costs of labor and materials accounted for 12% and one percent, respectively. c. Legaspi City In Legaspi City onions were sourced from Pangasinan and Nueva Ecija. About P8.99 per kilogram was the average cost in marketing onions. Of this, about 43% went to transportation (P3.89). Other operating expenses were recorded at 26% (P2.35), labor at 16% (P1.47), imputed cost at 13% (P1.14), and cost of materials used at 2% (P0.14). d. Cebu City The supply of onion in Cebu came from Luzon for which traders spent an average of P8.63 per kilogram. About 35% of the total cost, was on labor of P3.02 per kilogram. Imputed cost which consist of 23% (P2.01) of all costs. Other operating costs were 22% of the total costs. Transportation shared 19% while the cost of materials accounted for one percent.

53 16


N a g a C i t y 2 0 0 6 Imput e d

Cost20%

La bor12%

Tra nsport a t ion 47%


20% Ma t e ria ls1%


Figure 23 . Percentage d istribution of m arketing cost, by cost com ponent,

L egaspi C ity , 2006

O ther O perating

26%

Im puted C ost13%

Labor16%

Transpor-tation 43%

M aterial 2%


Fi g u re 2 4 . P e rc e n t a g e d i s t r i b u t i o n o f m a rk e t i n g c o s t s , b y c o s t c o m p o n e n t s ,

C e b u C i t y , 2 0 0 6

Imput ed Cost23%

Labor35%

Tra nspor-t a t ion

19%Ma t e ria l 1%


22%

S o urce: A nnex Tab le 17

Item

red bag 0.207 plastic bag 0.008 0.107 0.091 0.012 0.102 0.030 basket 0.014 0.006 bilao 0.001 0.005 0.001 trapal 0.052 wooden box 0.004

TOTAL 0.01 0.13 0.14 0.02 0.31 0.03

peso per kilogram

Table 14b. ONION: Cost of materials by item, selected demand areas, Philippines, 2006

Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro City

Davao City

Figure 22. Percent distribution of marketing costs of onion, by cost component, Naga City, 2006

Figure 23. Percent distribution of marketing costs of onion, by cost component, Legaspi City, 2006

Figure 24. Percent distribution of marketing costs of onion, by cost component, Cebu City, 2006


Ilocos Norte Pangasinan Nueva

Ecija

red bag 0.118 0.353 0.587 twine 0.067 0.006 plastic bag 0.245 0.072 0.030 kaing 0.005 basket a/winnow "bilao" 0.002 basin 0.002 pail 0.002 trapal 0.002 sack 0.197 bamboo strips 0.078

TOTAL 0.64 0.51 0.62

peso per kilogram

Item

Table 14a . ONION: Cost of materia ls by item, se lected supply provinces, Philippines, 2006

a/ less than 0.001


O N I O N

e. Cagayan de Oro In Cagayan de Oro City traders spent an average of P9.56 per kilogram in marketing onion. The imputed cost of P3.03 per kilogram represented the biggest portion of the total cost at 35%. Expenses on transportation ranked second at 28% (P2.69). Shares for labor costs, other operating costs and materials were at 21%, 13% and 3%, respectively. f. Davao City In Davao City, an average of P3.30 was spent by the respondent in marketing onion. About 43% (P1.43) of this were spent on transportation. Other operating expenses accounted for 30% (P0.98). Labor cost which were represented by P0.71 were 22% of the total cost. About four percent (P0.14) were spent on imputed cost and one percent (P0.03) on materials used.

2. Marketing Margins

a. Ilocos Norte

The farmers sold a kilogram of onion at P30.00, and spent a total amount of P13.09 per kilogram for production and P13.60 in marketing. A net margin of P3.31 per kilogram was realized. Among the trader-respondents, Provincial Assembler-Medium Distributor

17 52


C a g a y a n d e Or o C i t y , 2 0 0 6

Imput e d Cost35%

Labor21%

Tra nspor-t a t ion

28%

Ma t e ria l 3%


13%Source: A nnex Tab le


D a v a o C i t y , 2 0 0 6

La bor22%



30%

Ma t e ria l 1%

Imput e d Cost4%

Source: A nnex Tab le 17

Source: Costs and Returns Survey (CRS)

Vehicle rental

Procurement 2.370 0.080 2.100 1.060

Private vehicle

Gas & oil 0.030

TOTAL 2.37 0.08 2.10 1.06

Table 13k. ONION: Transportation costs incurred by marketing participants, by item, Davao City, 2006

Retailerpeso per kilogram

IRA-LD BA-MD BA-SDItem

Vehicle rental

Procurement 0.103 0.441 Distribution 2.349

Private vehicle

Gas & oil 0.042 0.097

TOTAL 2.45 0.44

Table 12h. ONION: Transportation costs incurred by marketing participants, by activity, Cagayan de Oro City, 2006

peso per kilogramIRA-LD RetailerItem

Figure 25. Percent distribution of marketing costs of onion, by cost component, Cagayan de Oro City,

2006

Figure 26. Percent distribution of marketing costs of onion, by cost component, Davao City, 2006

Imputed Other Costs Labor



Table 13. ONION: Cost of production, selected supply provinces, 2006 (peso per kilogram)


13.09 10.25

11.61

Table 13j. ONION: Transportation costs incurred by marketing participants, by item, Cagayan de Oro City, 2006


O N I O N

Among the trader-respondents, Provincial Assembler-Medium Distributor had the highest net margin at P 9.35 per kilogram. While the retailers netted an amount of P5.21, PA-LD, RA-LD, MA-LD, garnered P2.61, P1.16 and P1.09, respectively.

b. Pangasinan

As shown in Table 13, average cost of producing one kilogram of onion in Pangasinan was P10.25. When this amount and the total marketing cost of P2.88 were subtracted from the farmgate price of P28.00, farmers realized a net margin of P14.87. RA-LD’s margin was P1.10. IRA-MD’s at P6.28, while retailers had P5.98 per kilogram. Other marketing participants like PA-MD, MA-LD, BA had net margins ranging from P3.16 to P3.27 per kilogram. Agent had the lowest net margin at less than one peso (P0.98) per kilogram. c. Nueva Ecija The average price of onion at the farm was P25.00 per kilogram. Farmers realized a net margin of P11.02 per

51 18


Table 14. ONION: Marketing costs and margins, Ilocos Norte, 2006 (peso per kilogram)

Prices Margin Item Buying Selling

Total Marketing

Cost Gross Net FARMER 30.00 13.60 16.91 3.31 RA-LD 30.00 35.00 3.71 4.87 1.16 PA-LD 30.00 45.00 2.39 5.00 2.61 PA-MD 30.00 35.00 0.65 10.00 9.35 MA-LD 30.00 35.00 3.92 5.00 1.08 RETAILER 40.00 56.00 8.79 14.00 5.21


Table 15. ONION: Marketing costs and margins, Pangasinan, 2006 (peso per kilogram)


Total Marketing

Cost Gross Net FARMER 28.00 2.88 17.75 14.87 IRA-LD 30.00 39.00 7.90 9.00 1.10 IRA-MD 32.00 40.00 1.72 8.00 6.28 PA-MD 33.00 39.00 2.84 6.00 3.16 MA-LD 35.00 40.00 1.22 5.00 3.78 BA-LD 30.00 35.00 1.73 5.00 3.27 AGENT 34.00 35.00 0.02 1.00 0.98 RETAILER 41.00 51.00 4.02 10.00 5.98

Table 16. ONION; Marketing costs and margins, Nueva Ecija, 2006 (peso per kilogram)


Total Marketing

Cost Gross Net Farmer 25.00 2.37 13.39 11.02 Assembler 26.00 32.00 4.97 6.00 1.03 IRA-LD 26.00 32.00 4.26 6.00 1.74 PA-LD 32.00 37.00 4.44 5.00 0.56 PA-MD 35.00 37.00 1.08 2.00 0.92 BA-MD 37.00 38.00 0.03 1.00 0.97 MA-SD 38.00 44.00 5.32 6.00 0.68 BA-SD 44.00 45.00 0.74 1.00 0.26 Retailer 45.00 50.00 3.25 5.00 1.75


Vehicle rental


Private vehicle

Gas & oil 1.50

TOTAL 3.61 3.07 2.00

Table 13h. ONION: Transportation costs incurred by marketing participants, by item, Legaspi City, 2006

peso per kilogramIRA-LD IRA-SD RetailerItem

Vehicle rental

Procurement 2.778

Private vehicle

Gas & oil 3.017 3.370

TOTAL 3.02 3.37 2.78

Table 13e. ONION: Transportation costs incurred by marketing participants, by item, Naga City, 2006

peso per kilogramIRA-LD IRA-MD RetailerItem

Vehicle rental

Procurement 1.624

Private vehicle

Gas & oil 0.026 0.041

TOTAL 1.65 0.04

Item

Table 13g. ONION: Transportation costs incurred by marketing participants, by item, Cebu City, 2006

peso per kilogramIRA-LD Retailer

Table 14. ONION: Marketing costs and margin of marketing participants, Ilocos Norte, 2006

(peso per kilogram)

Table 15. ONION: Marketing costs and margin of marketing participants, Pangasinan, 2006

(peso per kilogram)

Table 16. ONION: Marketing costs and margin of marketing participants, Nueva Ecija, 2006

(peso per kilogram)

Table 13g. ONION: Transportation costs incurred by marketing participants, by item, Naga City, 2006

Table 13i. ONION: Transportation costs incurred by marketing participants, by item, Cebu City, 2006


O N I O N

margin of P11.02 per kilogram after deducting the costs incurred in production and marketing at P11.61 and P2.37, respectively. Traders in the province recorded net margins ranging from P0.26 to P1.75 per kilogram, on the average. Interregional Assembler got the highest net margin at P1.74 while Barangay Assembler got the lowest at P0.26 per kilogram.

F. Marketing Problems Commonly Encountered by the Respondents

The common

problems cited by farmer-respondents in Ilocos Norte were low price received, weak demand for onion, stealing, price fluctuation and bad debts.

Seventy percent

(70%) of farmer-respondents in Nueva Ecija cited the low price received due to the presence of imported onion.

In Pangasinan,

farmers were problematic on the low prices they received during peak seasons and on the difficulty in directly selling to Divisoria.

For trader-respondents, the common problems cited were: competition

with other traders, shrinkage and spoilage of the commodity. Some trader-respondents also mentioned the low quality of onion being traded. Other problems identified were bad debts, stealing and high cost of securing a business license.

19 50

Table 17a. ONION: Percentage distribution of farmer-respondents, by problems encountered, selected provinces, Philippines, 2006

Problems Ilocos Norte

Panga-sinan

Nueva Ecija

Low price received due to imported onion 10 5 70

Low price received during harvest time 10 25

Difficulty in selling directly to Manila (Divisoria) 10

Shrinkage of the commodity 5 5 5

Weak demand when buyer have voluminous stocks in their bodegas 5 5 5

Stealing 5 5

Price fluctuation 10 5 10

Bad debts 5 5 5

No problems 50 35 5

Total 100 100 100 Source: Annex Table 19a

Vehicle rental

Procurement 0.430 0.330 0.870 0.640 Distribution 0.080 0.660 0.620 1.470 0.540

Private vehicle

Gas & oil 0.100 0.350

TOTAL 0.08 1.09 1.05 2.34 1.53

peso per kilogram

Table 13e. ONION: Transportation costs incurred by marketing participants, by item, Nueva Ecija, 2006

MA-SDFarmer IRA-LD PA-LD AssemblerItem

Vehicle rental

Procurement 1.940 Distribution 0.460

Private vehicle

Gas & oil 0.810 0.200

TOTAL 0.81 0.66 1.94

peso per kilogramRetailer

Table 13f. ONION: Transportation costs incurred by marketing participants, by item, Metro Manila, 2006

IRA-LD AgentItem

Table 17a. ONION: Percent distribution of farmer-respondents by problems encountered, selected supply provinces, Philippines, 2006


O N I O N

4920


Table 19b. ONION: Percentage distribution of trader-respondents, by problems encountered, selected areas, 2006

Problems Ilocos Norte Pangasinan Nueva

Ecija Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro City

Davao City

Competition with other traders 8 14 10 18 22 20 11 11 14

Shrinkage and spoilage of commodity

15 9 3 9 22 7 11 11 21

Low quality of products traded 8 9 3 9 11 7 6 11 7

Price fluctuation 4 5 11 7 17 11 7

Bad debts 4 3 5 11

Stealing 8 4 3 11 20 High cost of securing business license

4 3 11 7

No problem 61 52 75 54 32 55 56 51

Total 100 100 100 100 100 100 100 100 100

Vehicle rental

Procurement 0.640 0.267 0.703 Distribution 0.203 0.221

Private vehicle

Gas & oil 0.012 0.232 0.664 0.306 0.026 0.641 0.007 0.217

TOTAL 0.22 1.09 0.66 0.31 0.29 0.64 0.01 0.92

Table 13d. ONION: Transportation costs incurred by marketing participants, by item, Pangasinan, 2006

Itempeso per kilogram

PA-MD MA-LD BA-LD AgentFarmer IRA-LD IRA-MD Retailer

Vehicle rental

Procurement 0.110 0.511 1.563 1.250 Distribution 0.411 0.998 1.875

Private vehicle

Gas & oil 0.948 0.288

TOTAL 1.36 0.40 1.51 3.44 1.25

Table 13a. ONION: Transportation costs incurred by marketing participants, by item, Ilocos Norte, 2006

peso per kilogramPA-LD MA-LDFarmer RA-LD RetailerItem

Table 17b. ONION: Percent distribution of trader-respondents, by problems encountered, selected demand areas, Philippines, 2006

Table 13c. ONION: Transportation costs incurred by marketing participants, by item, Ilocos Norte, 2006


O N I O N

Definition of Terms Assembler – procures onion from farmers and traders in the supply areas. These types of traders are classified according to their area of procurement.

a) Barangay Assembler (BA) – procures within the barangay. 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 province

within the region. e) Interregional Assembler (IRA) – procures from two or more regions.

Assembler – Distributor – uses about the same effort and resources in procuring and selling a commodity; may finances farmers and traders in supply areas and has agents responsible for procurement; sells commodities to other traders. The following combinations were identified in the study:

a) Barangay Assembler – Small Distributor (BAS-SD) b) Municipal Assembler – Medium Distributor (MA-MD) c) Provincial Assembler – Small Distributor (PA-SD) d) Provincial Assembler – Medium Distributor (PA-MD) e) Provincial Assembler – Large Distributor (PA-LD)

Delivered – mode of procurement and or distribution wherein the supplier go to

the buyer to sell the commodity. Demand areas – provinces/areas where most of the onion produced in the

supply areas were sold or brought. Distributor – sells commodities to other traders and consumers. Since his/her

function is primarily to sell than to procure, he/she provides more services to his/her buyers than to his/her suppliers. They can be

21 48


Vehicle rental

Procurement 0.859 0.536 0.541 Distribution 1.095 0.212 0.418

Private vehicle

Gas & oil 0.618 0.263 0.225

TOTAL 2.57 1.01 1.18

peso per kilogram

Table 13a. ONION: Transportation costs by item, selected supply provinces, Philippines, 2006

Item

Vehicle rental

Procurement 1.940 2.778 2.396 1.624 0.272 1.403 Distribution 0.460 2.349

Private vehicle

Gas & oil 0.505 3.194 1.498 0.034 0.070 0.030

TOTAL 2.91 5.97 3.89 1.66 2.69 1.43


Table 13b. ONION: Transportation costs by item, selected demand areas, Philippines, 2006

Naga City

Legaspi City

Cebu City

Cagayan de Oro City

Davao City

Metro Manila


O N I O N

services to his/her buyers than to his/her suppliers. They can be classified according to the relative volume of commodities as follows:

a) Small Distributor (SD) – handles a small volume of commodity;

sells to retailers within the same market; may sell to several small eateries.

b) Medium Distributor (MD) – sells larger volume than small

distributor; sell to trading coming from other markets in the province; may sell to few institutional buyers (hotel, restaurants, hospital, military camp).

c) Large Distributor (LD) – handles the largest volume among the

three types of distributors; usually sell to traders from other markets within and outside the province; may sell to several institutional buyers.

Handling – carrying onion from one place to another, which composed of

loading and unloading. Hauling – bringing the harvest from the farm to the first point of sale. Moving

the commodity from the farm to the trading or bagsakan areas. Loading – carrying onion inside the vehicle. Marketing channels – refers to the inter-organizational system composed of

interdependent participants involved in the task of moving products from the point of production to the point of consumption. It may vary according to location, time and type of the products sold.

Marketing costs – costs incurred by marketing participants in moving their

products from one place to another. Cost components include labor cost, transportation cost, cost of materials, other operating cost and imputed cost.

Market margins – difference between the value of a product at one stage and

the value of the same product at another stage.

47 22

ProcurementUnloading 0.010 0.020

DistributionHauling 0.010 1.080 Cleaning 0.010 Sorting 0.010 Weihging 0.010 Packing 0.010 Loading 0.010 0.150 Unloading 0.010 0.050

TOTAL 0.08 0.07 0.15 1.08

Retailer

Table12i. ONION: Labor costs incurred by marketing activity, by province, Davao City, 2006

peso per kilogramIRA-LD BA-MD BA-SDMarketing Activity

Table 12k. ONION: Labor costs incurred by marketing participants, by activity, Davao City, 2006


O N I O N

Partnership – type of business ownership where capital is shared and managed by two to five persons with the intention of sharing profit.

Pick-up – mode of procurement and or distribution wherein the buyer goes to

the supplier to buy the commodity. Retailer – type of trader who sources his/her stock either directly from the

farmer or from distributor and sells directly to consumers. Self-financed – source of capital where the operator or trader used his own

fund to finance onion marketing operations. Single proprietorship – business is owned solely by farmer or trader. Sorting – classifying or grading of onion according to size, quality and

freshness. Supply areas – top three onion producing provinces in the country in terms of

quantity produced. Unloading – carrying the sacked or bundled onion outside the vehicle.

23 46

ProcurementHauling 0.001 0.926Cleaning 0.001Sorting 0.001Weighing 0.001Packing 0.001Unloading 0.001 0.208

DistributionHauling 0.010Cleaning 0.029Sorting 0.083 0.439Weighing 0.029 0.439Packing 0.083 0.440Loading 0.004Unloading 0.004

Salaries & wages 0.167 1.048

TOTAL 0.40 2.37a/ less than 0.001

Table 12j. ONION: Labor costs incurred by marketing participants, by activity, Cagayan de Oro City, 2006

peso per kilogramIRA-LD RetailerMarketing Activity


O N I O N

ANNEXES

25 44

ProcurementHauling 0.276Loading 0.259 0.234Unloading 0.259 0.234


TOTAL 1.21 0.47 1.20

peso per kilogram

Table 12g. ONION: Labor costs incurred by marketing participants, by activity, Naga City, 2006

IRA-LD IRA-MD RetailerMarketing Activity

ProcurementHauling 0.200 0.320 0.160 0.310Unloading 0.070 0.150 0.220Loading 0.170 0.150 0.160 0.480

DistributionHauling 0.010 0.020 0.030Cleaning 0.110 0.020 0.100 0.330Sorting 0.100 0.020 0.100 0.380Weighing 0.100 0.090 0.100 0.390Packing 0.020 0.100 0.120

Salaries & wages 0.110 0.200 1.670

Total 0.76 0.90 0.92 3.93

Table12d. ONION: Labor costs incurred by marketing activity, Metro Manila, 2006

peso per kilogramIRA-LD MA-SD Agent RetailerMarketing Activity

Table 12f. ONION: Labor costs incurred by marketing participants, by activity, Metro Manila, 2006


O N I O N

ProcurementHauling 0.047 0.089 0.071 0.167 0.123 0.457Cleaning 0.086 0.096 0.333Sorting 0.108 0.034 0.156 0.556Weighing 0.029 0.123Packing 0.328 0.166 0.159 0.123Loading 0.048 0.034Unloading 0.047 0.033

DistributionHauling 0.047 0.014 1.000Cleaning 0.006Sorting 0.022 0.023Weighing 0.022 0.006Packing 0.285 0.026 0.123Loading 0.244Unloading 0.032 0.074 0.143Selling

Salaries & wages 0.019 0.032 0.206 0.205 0.596 0.398

TOTAL 0.64 0.83 0.53 0.62 0.82 1.09 2.41

Marketing Activity

Table12d. ONION: Labor costs incurred by marketing participants, by activity, Pangasinan, 2006

peso per kilogramPA-MD MA-LD BA-LDFarmer IRA-LD IRA-MD Retailer

27 42

PROVINCE FARMER TRADER TOTAL

SUPPLY AREASILOCOS NORTE 20 13 33PANGASINAN 20 23 43NUEVA ECIJA 20 29 49

DEMAND AREASMETRO MANILA 22 22NAGA CITY 9 9LEGASPI CITY 15 15CEBU CITY 18 18CAGAYAN DE ORO CITY 18 18DAVAO CITY 14 14

TOTAL 60 161 221

Table 1. ONION: Number of respondents, selected provinces, Philippines, 2006


O N I O N

41 28

IRA-

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A-LD

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IRA-

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ProcurementHauling 0.020 0.067 0.050cleaning 1.500 0.050Sorting 0.020Bundling 0.400 0.050Packing 0.080 0.023Loading 0.080 0.023 0.067Unloading 0.023 0.067

DistributionHauling 0.120 0.067Cleaning 1.489Drying 0.393 0.133Sorting 0.782 0.857Weighing 0.100 0.693Braiding 0.293 0.693Bundling 0.782Packing 0.383 0.693Loading 0.113Unloading 0.004

Salaries & wages 0.036 0.014 0.693

TOTAL 4.46 2.10 0.07 0.40 0.15 2.94

peso per kilogram

Table12c. ONION: Labor costs incurred by marketing participants, by activity, Ilocos Norte, 2006

Farmer RA-LD PA-LD RetailerPA-MD MA-LDMarketing Activity


O N I O N

ProcurementHauling 0.248 0.276 0.295 0.577 0.463Cleaning 0.001Sorting 0.062 0.210Weighing 0.001Packing 0.001Loading 0.240 0.247 0.112 0.600Unloading 0.147 0.247 0.123 0.424 0.105 0.015

DistributionHauling 0.020 0.010 0.545Cleaning 0.140 0.077 0.228 0.029 0.010Sorting 0.150 0.106 0.261 0.010Weighing 0.170 0.099 0.267 0.234 0.010Packing 0.080 0.106 0.262 0.010Loading 0.196 0.004 0.080Unloading 0.196 0.004 0.030

Salaries & wages 0.740 0.805 0.768 0.262 0.399

TOTAL 1.93 1.57 1.47 3.02 1.98 0.71

Table12b. ONION: Labor costs by marketing activity/practice, selected demand areas, Philippines, 2006

Cagayan de Oro City

Davao CityMarketing Activity

peso per kilogram

Metro Manila

Naga City

Legaspi City

Cebu City

29 40

LAND TENURE ILOCOS NORTE PANGASINAN NUEVA

ECIJA TOTAL

Owned 11 12 14 37 Tenanted 8 3 1 12 Leased 5 1 6 Held under CLT 1 1 2 Contract grower 1 1 Rent free 2 2

TOTAL 20 20 20 60

Table 3. ONION: Number of farmer-respondents by tenure status, selected provinces, Philippines, 2006

PROVINCE SINGLE PROPRIETORSHIP

PARTNERSHIP TOTAL

SUPPLY AREASILOCOS NORTE 13 13PANGASINAN 23 23NUEVA ECIJA 28 1 29


TOTAL 160 1 161

Table 4. ONION: Number of trader-respondents, by type of ownership, selected provinces, Philippines, 2006


O N I O N

PROVINCE SELF-FINANCED

BORROWED/LOAN TOTAL


DEMAND AREASMETRO MANILA 22 22NAGA CITY 9 9LEGASPI CITY 15 15CEBU CITY 18 18CAGAYAN DE ORO CITY 16 2 18DAVAO CITY 14 14

TOTAL 182 39 221

Table 5 ONION: Number of respondents by source of capital, selected provinces, Philippines, 2006

39 30


ProcurementHauling 0.046 0.159 Cleaning 0.775 0.172 0.243 Sorting 0.030 0.214 0.443 Bundling 0.225 Weighing 0.076 0.255 Packing 0.052 0.301 0.180 Loading 0.057 0.041 0.303 Unloading 0.045 0.040 0.208

DistributionHauling 0.094 0.354 0.142 Cleaning 1.489 0.006 0.296 Drying 0.263 0.230 Cutting 0.120 Sorting 0.820 0.023 0.246 Tagging 0.070 Weighing 0.397 0.014 0.128 Braiding 0.493 Bundling 0.782 Packing 0.538 0.217 0.226 Loading 0.113 0.244 0.140 Unloading 0.004 0.083 0.175

Salaries & wages 0.244 0.398 0.262

TOTAL 6.46 2.34 3.67

Table12a. ONION: Labor costs by marketing activity/ practice, selected supply provinces, Philippines, 2006

peso per kilogramMarketing Activity


O N I O N

WIT

HIN

TH

E PR

OVI

NC

EO

UTS

IDE

THE

PRO

VIN

CE

WIT

HIN

TH

E PR

OVI

NC

EO

UTS

IDE

THE

PRO

VIN

CE

DEM

AND

AR

EAS

MET

RO

MAN

ILA

Nue

va E

cija

, Ilo

cos

Sur,

Met

ro M

anila

R

izal

, Cav

ite, B

icol

R.

Iloco

s N

orte

, C

otab

ato,

N

ueva

Viz

caya

, D

avao

City

&Pa

ngas

inan

&

Cag

ayan

de

Oro

City

Min

doro

Occ

iden

tal

NAG

A C

ITY

Pang

asin

an,

Cam

arin

es S

urN

ueva

Eci

ja,

Min

doro

Occ

iden

tal

LEG

ASPI

CIT

YD

ivis

oria

, Bal

inta

wak

,G

uino

bata

n,

Mas

bate

, Sor

sogo

n,Pa

ngas

inan

, Ta

baco

City

, C

atan

duan

es,

Nue

va E

cija

, Le

gasp

i City

, M

indo

ro O

ccid

enta

lSt

o. D

omin

go, T

iwi,

Baca

cay,

Dar

aga

CEB

U C

ITY

Div

isor

iaC

arbo

n, S

ibon

ga,

Leyt

e, B

ohol

C

ebu

City

, Ta

gbila

ran

City

Man

daue

City

, La

pu-la

pu C

ity

CAG

AYAN

DE

OR

O C

ITY

Div

isor

ia,

Car

men

, Ago

ra,

Ceb

u, B

ukid

non,

M

indo

ro O

ccid

enta

l, C

ogon

Iliga

n, C

amig

uin,

Pa

ngas

inan

&

Butu

an, O

roqu

ieta

Nue

va E

cija

Surig

ao, M

araw

i,

DAV

AO C

ITY

Bino

ndo,

Ton

do,

Bang

oy, D

avao

City

,Ta

gum

, D

ivis

oria

Toril

, Cal

inan

,N

orth

Cot

abat

o &

Bang

kero

han

Sout

h C

otab

ato

Tabl

e 11

. (C

ontin

ued)

SOU

RC

ESD

ESTI

NAT

ION

SPR

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NC

E

31 38

less

than

52

55

12

35

326

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011

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21 &

abo

ve12

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32

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L33

4349

229

1518

1814

221

Cag

ayan

de

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City

Dav

ao

City

Pang

asin

an

Tabl

e 6.

ON

ION

: N

umbe

r of r

espo

nden

ts b

y ye

ars

in tr

adin

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elec

ted

prov

ince

s, P

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ity

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ly A

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Dem

and

Area

s

Iloco

s N

orte

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spi

City

Ceb

u C

ity

Iloco

s N

orte

Pang

asin

anN

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ja

less

than

51

25

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116

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321

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94

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Tabl

e 6a

. O

NIO

N:

Num

ber o

f far

mer

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pond

ents

by

year

s in

tr

adin

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prov

ince

s, P

hilip

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s, 2

006

YEAR

S IN

FA

RM

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Supp

ly A

reas


O N I O N

Iloco

s N

orte

Pang

asin

anN

ueva

Ec

ijaM

etro

M

anila

Nag

a C

ityLe

gasp

i C

ityC

ebu

City

Cag

ayan

de

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City

Dav

ao

City

less

than

52

43

12

35

323

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06

613

82

67

105

6311

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55

33

14

2816

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11

51

63

11

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& a

bove

37

73

13

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L13

2329

229

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161

Tabl

e 6b

. O

NIO

N:

Num

ber o

f tra

der-

resp

onde

nts

by y

ears

in tr

adin

g, s

elec

ted

prov

ince

s, P

hilip

pine

s, 2

006

Supp

ly A

reas

Dem

and

Area

sYE

ARS

IN

TRAD

ING

TOTA

L

37 32

WIT

HIN

TH

E PR

OVI

NC

EO

UTS

IDE

THE

PRO

VIN

CE

WIT

HIN

TH

E PR

OVI

NC

EO

UTS

IDE

THE

PRO

VIN

CE

SU

PPLY

AR

EAS

ILO

CO

S N

OR

TEVi

ntar

, Bad

oc,

Iloco

s Su

rLa

oa

g C

ity, B

adoc

,M

etro

Man

ila, C

agay

an,

Pasu

guin

, Bac

arra

Pasu

quin

, Bac

arra

Isab

ela,

Pan

gasi

nan,

N

ueva

Eci

ja,

PAN

GAS

INAN

Baya

mba

ng, B

autis

ta,

Gui

mba

, Tal

aver

a,

San

Car

los

City

, M

etro

Man

ila, L

agun

a,Sa

n Q

uint

in, U

min

gan

San

Jose

City

, Bo

linao

, Lin

gaye

n Ba

tang

as, P

ampa

nga,

Bong

abon

&

Alam

inos

City

Bula

can,

Bat

aan,

Zam

bale

z, N

ueva

Ec

ija &

Bic

ol R

egio

n

NU

EVA

ECIJ

AM

unoz

, San

Jos

e,

Pang

asin

anSa

n Jo

se C

ity,

Met

ro M

anila

, Sa

n Ag

ustin

, Gui

mba

, Ta

lave

ra, B

onga

bon,

Ba

tang

as, L

agun

a,

Riz

al, G

apan

, G

apan

, Riz

al,

Cav

ite, R

izal

Bic

ol,

Pant

aban

gan,

C

aban

atua

n C

ityQ

uezo

n, C

ebu,

Iloilo

, Bo

ngab

on &

Lla

nera

Dav

ao, C

agay

an d

e O

ro,

Zam

boan

ga

Tabl

e 11

. O

NIO

N:

Maj

or s

ourc

es a

nd d

estin

atio

ns, b

y pr

ovin

ce, P

hilip

pine

s, 2

006

SOU

RC

ESD

ESTI

NAT

ION

SPR

OVI

NC

E

Tabl

e 11

. Oni

on: M

ajor

sou

rces

and

des

tinat

iions

, sel

ecte

d pr

ovin

ces,

Phi

lippi

nes,

200

6


O N I O N

33 36

PROVINCE PICKED-UP DELIVERED BOTH TOTAL

SUPPLY AREASILOCOS NORTE 9 4 13PANGASINAN 22 1 23NUEVA ECIJA 15 13 1 29

DEMAND AREASMETRO MANILA 11 10 1 22NAGA CITY 4 5 9LEGASPI CITY 11 4 15CEBU CITY 9 9 18CAGAYAN DE ORO CITY 18 18DAVAO CITY 11 3 14

TOTAL 110 49 2 161

Table 7. ONION: Number of respondent by type of traders, by mode of procurement, selected provinces, Philippines, 2006

PROVINCE CASH CREDIT CASH & CREDIT TOTAL

SUPPLY AREASILOCOS NORTE 11 1 1 13PANGASINAN 23 23NUEVA ECIJA 29 29

DEMAND AREASMETRO MANILA 22 22NAGA CITY 6 2 1 9LEGASPI CITY 12 3 15CEBU CITY 6 7 5 18CAGAYAN DE ORO CITY 9 6 3 18DAVAO CITY 14 14

TOTAL 132 16 13 161

Table 8. ONION: Number of respondents by terms of payment in procurement, selected provinces, Philippines, 2006

PROVINCE CASH BARTER TOTAL

SUPPLY AREASILOCOS NORTE 18 2 20PANGASINAN 20 20NUEVA ECIJA 20 20

TOTAL 58 2 60

Table 10a. ONION: Number of farmer-respondents, by terms of payment in distribution, selected provinces, Philippines, 2006


SUPPLY AREASILOCOS NORTE 7 1 5 13PANGASINAN 22 1 23NUEVA ECIJA 29 29

DEMAND AREASMETRO MANILA 22 22NAGA CITY 6 3 9LEGASPI CITY 13 2 15CEBU CITY 15 2 1 18CAGAYAN DE ORO CITY 17 1 18DAVAO CITY 14 14

TOTAL 145 4 12 161

Table 10b. ONION: Number of trader-respondents, by terms of payment in distribution, selected provinces, Philippines, 2006


O N I O N

35 34


SUPPLY AREASILOCOS NORTE 16 16 1 33PANGASINAN 37 4 2 43NUEVA ECIJA 28 19 2 49

DEMAND AREASMETRO MANILA 7 15 22NAGA CITY 8 1 9LEGASPI CITY 13 1 1 15CEBU CITY 18 18CAGAYAN DE ORO CITY 18 18DAVAO CITY 3 11 14

TOTAL 148 66 7 221

Table 9. ONION: Number of respondents, by mode of distribution, selected provinces, Philippines, 2006


SUPPLY AREASILOCOS NORTE 8 12 20PANGASINAN 16 2 2 20NUEVA ECIJA 8 12 20

TOTAL 32 26 2 60

Table 9a ONION: Number of farmer-respondents, by mode of distribution, selected provinces, Philippines, 2006


SUPPLY AREASILOCOS NORTE 8 4 1 13PANGASINAN 21 2 23NUEVA ECIJA 20 7 2 29

DEMAND AREASMETRO MANILA 7 15 22NAGA CITY 8 1 9LEGASPI CITY 13 1 1 15CEBU CITY 18 18CAGAYAN DE ORO CITY 18 18DAVAO CITY 3 11 14

TOTAL 116 40 5 161

Table 9b ONION: Number of trader-respondents, by mode of distribution, selected provinces, Philippines, 2006

PROVINCE CASH CREDIT CASH & CREDIT BARTER TOTAL

SUPPLY AREASILOCOS NORTE 25 1 5 2 33PANGASINAN 42 1 43NUEVA ECIJA 49 49


TOTAL 203 4 12 2 221

Table 10. ONION: Number of respondents, by terms of payment in distribution, selected provinces, Philippines, 2006


O N I O N

33 36


SUPPLY AREASILOCOS NORTE 9 4 13PANGASINAN 22 1 23NUEVA ECIJA 15 13 1 29

DEMAND AREASMETRO MANILA 11 10 1 22NAGA CITY 4 5 9LEGASPI CITY 11 4 15CEBU CITY 9 9 18CAGAYAN DE ORO CITY 18 18DAVAO CITY 11 3 14

TOTAL 110 49 2 161

Table 7. ONION: Number of respondent by type of traders, by mode of procurement, selected provinces, Philippines, 2006


SUPPLY AREASILOCOS NORTE 11 1 1 13PANGASINAN 23 23NUEVA ECIJA 29 29

DEMAND AREASMETRO MANILA 22 22NAGA CITY 6 2 1 9LEGASPI CITY 12 3 15CEBU CITY 6 7 5 18CAGAYAN DE ORO CITY 9 6 3 18DAVAO CITY 14 14

TOTAL 132 16 13 161

Table 8. ONION: Number of respondents by terms of payment in procurement, selected provinces, Philippines, 2006

PROVINCE CASH BARTER TOTAL

SUPPLY AREASILOCOS NORTE 18 2 20PANGASINAN 20 20NUEVA ECIJA 20 20

TOTAL 58 2 60

Table 10a. ONION: Number of farmer-respondents, by terms of payment in distribution, selected provinces, Philippines, 2006


SUPPLY AREASILOCOS NORTE 7 1 5 13PANGASINAN 22 1 23NUEVA ECIJA 29 29


TOTAL 145 4 12 161

Table 10b. ONION: Number of trader-respondents, by terms of payment in distribution, selected provinces, Philippines, 2006


O N I O N

Iloco

s N

orte

Pang

asin

anN

ueva

Ec

ijaM

etro

M

anila

Nag

a C

ityLe

gasp

i C

ityC

ebu

City

Cag

ayan

de

Oro

City

Dav

ao

City

less

than

52

43

12

35

323

5 - 1

06

613

82

67

105

6311

- 15

25

55

33

14

2816

- 20

11

51

63

11

1921

& a

bove

37

73

13

21

128

TOTA

L13

2329

229

1518

1814

161

Tabl

e 6b

. O

NIO

N:

Num

ber o

f tra

der-

resp

onde

nts

by y

ears

in tr

adin

g, s

elec

ted

prov

ince

s, P

hilip

pine

s, 2

006

Supp

ly A

reas

Dem

and

Area

sYE

ARS

IN

TRAD

ING

TOTA

L

37 32

WIT

HIN

TH

E PR

OVI

NC

EO

UTS

IDE

THE

PRO

VIN

CE

WIT

HIN

TH

E PR

OVI

NC

EO

UTS

IDE

THE

PRO

VIN

CE

SU

PPLY

AR

EAS

ILO

CO

S N

OR

TEVi

ntar

, Bad

oc,

Iloco

s Su

rLa

oag

City

, Bad

oc,

Met

ro M

anila

, Cag

ayan

,Pa

sugu

in, B

acar

raPa

suqu

in, B

acar

raIs

abel

a, P

anga

sina

n,

Nue

va E

cija

,

PAN

GAS

INAN

Baya

mba

ng, B

autis

ta,

Gui

mba

, Tal

aver

a,

San

Car

los

City

, M

etro

Man

ila, L

agun

a,Sa

n Q

uint

in, U

min

gan

San

Jose

City

, Bo

linao

, Lin

gaye

n Ba

tang

as, P

ampa

nga,

Bong

abon

&

Alam

inos

City

Bula

can,

Bat

aan,

Zam

bale

z, N

ueva

Ec

ija &

Bic

ol R

egio

n

NU

EVA

ECIJ

AM

unoz

, San

Jos

e,

Pang

asin

anSa

n Jo

se C

ity,

Met

ro M

anila

, Sa

n Ag

ustin

, Gui

mba

, Ta

lave

ra, B

onga

bon,

Ba

tang

as, L

agun

a,

Riz

al, G

apan

, G

apan

, Riz

al,

Cav

ite, R

izal

Bic

ol,

Pant

aban

gan,

C

aban

atua

n C

ityQ

uezo

n, C

ebu,

Iloilo

, Bo

ngab

on &

Lla

nera

Dav

ao, C

agay

an d

e O

ro,

Zam

boan

ga

Tabl

e 11

. O

NIO

N:

Maj

or s

ourc

es a

nd d

estin

atio

ns, b

y pr

ovin

ce, P

hilip

pine

s, 2

006

SOU

RC

ESD

ESTI

NAT

ION

SPR

OVI

NC

E

Tabl

e 11

. Oni

on: M

ajor

sou

rces

and

des

tinat

iions

, sel

ecte

d pr

ovin

ces,

Phi

lippi

nes,

200

6


O N I O N

WIT

HIN

TH

E PR

OVI

NC

EO

UTS

IDE

THE

PRO

VIN

CE

WIT

HIN

TH

E PR

OVI

NC

EO

UTS

IDE

THE

PRO

VIN

CE

DEM

AND

AR

EAS

MET

RO

MAN

ILA

Nue

va E

cija

, Ilo

cos

Sur,

Met

ro M

anila

R

izal

, Cav

ite, B

icol

R.

Iloco

s N

orte

, C

otab

ato,

N

ueva

Viz

caya

, D

avao

City

&Pa

ngas

inan

&

Cag

ayan

de

Oro

City

Min

doro

Occ

iden

tal

NAG

A C

ITY

Pang

asin

an,

Cam

arin

es S

urN

ueva

Eci

ja,

Min

doro

Occ

iden

tal

LEG

ASPI

CIT

YD

ivis

oria

, Bal

inta

wak

,G

uino

bata

n,

Mas

bate

, Sor

sogo

n,Pa

ngas

inan

, Ta

baco

City

, C

atan

duan

es,

Nue

va E

cija

, Le

gasp

i City

, M

indo

ro O

ccid

enta

lSt

o. D

omin

go, T

iwi,

Baca

cay,

Dar

aga

CEB

U C

ITY

Div

isor

iaC

arbo

n, S

ibon

ga,

Leyt

e, B

ohol

C

ebu

City

, Ta

gbila

ran

City

Man

daue

City

, La

pu-la

pu C

ity

CAG

AYAN

DE

OR

O C

ITY

Div

isor

ia,

Car

men

, Ago

ra,

Ceb

u, B

ukid

non,

M

indo

ro O

ccid

enta

l, C

ogon

Iliga

n, C

amig

uin,

Pa

ngas

inan

&

Butu

an, O

roqu

ieta

Nue

va E

cija

Surig

ao, M

araw

i,

DAV

AO C

ITY

Bino

ndo,

Ton

do,

Bang

oy, D

avao

City

,Ta

gum

, D

ivis

oria

Toril

, Cal

inan

,N

orth

Cot

abat

o &

Bang

kero

han

Sout

h C

otab

ato

Tabl

e 11

. (C

ontin

ued)

SOU

RC

ESD

ESTI

NAT

ION

SPR

OVI

NC

E

31 38

less

than

52

55

12

35

326

5 - 1

011

1118

82

67

105

7811

- 15

48

65

33

14

3416

- 20

48

45

16

31

133

21 &

abo

ve12

1116

31

32

11

50

TOTA

L33

4349

229

1518

1814

221

Cag

ayan

de

Oro

City

Dav

ao

City

Pang

asin

an

Tabl

e 6.

ON

ION

: N

umbe

r of r

espo

nden

ts b

y ye

ars

in tr

adin

g, s

elec

ted

prov

ince

s, P

hilip

pine

s, 2

006

TOTA

LN

ueva

Ec

ijaM

etro

M

anila

Nag

a C

ity

YEA

RS

IN

TRA

DIN

G

Supp

ly A

reas

Dem

and

Area

s

Iloco

s N

orte

Lega

spi

City

Ceb

u C

ity

Iloco

s N

orte

Pang

asin

anN

ueva

Eci

ja

less

than

51

25

- 10

55

511

- 15

23

116

- 20

47

321

& a

bove

94

9

TOTA

L20

2020

Tabl

e 6a

. O

NIO

N:

Num

ber o

f far

mer

-res

pond

ents

by

year

s in

tr

adin

g, s

elec

ted

prov

ince

s, P

hilip

pine

s, 2

006

YEAR

S IN

FA

RM

ING

Supp

ly A

reas


O N I O N

PROVINCE SELF-FINANCED

BORROWED/LOAN TOTAL


DEMAND AREASMETRO MANILA 22 22NAGA CITY 9 9LEGASPI CITY 15 15CEBU CITY 18 18CAGAYAN DE ORO CITY 16 2 18DAVAO CITY 14 14

TOTAL 182 39 221

Table 5 ONION: Number of respondents by source of capital, selected provinces, Philippines, 2006

39 30


ProcurementHauling 0.046 0.159 Cleaning 0.775 0.172 0.243 Sorting 0.030 0.214 0.443 Bundling 0.225 Weighing 0.076 0.255 Packing 0.052 0.301 0.180 Loading 0.057 0.041 0.303 Unloading 0.045 0.040 0.208

DistributionHauling 0.094 0.354 0.142 Cleaning 1.489 0.006 0.296 Drying 0.263 0.230 Cutting 0.120 Sorting 0.820 0.023 0.246 Tagging 0.070 Weighing 0.397 0.014 0.128 Braiding 0.493 Bundling 0.782 Packing 0.538 0.217 0.226 Loading 0.113 0.244 0.140 Unloading 0.004 0.083 0.175

Salaries & wages 0.244 0.398 0.262

TOTAL 6.46 2.34 3.67

Table12a. ONION: Labor costs by marketing activity/ practice, selected supply provinces, Philippines, 2006

peso per kilogramMarketing Activity


O N I O N

ProcurementHauling 0.248 0.276 0.295 0.577 0.463Cleaning 0.001Sorting 0.062 0.210Weighing 0.001Packing 0.001Loading 0.240 0.247 0.112 0.600Unloading 0.147 0.247 0.123 0.424 0.105 0.015

DistributionHauling 0.020 0.010 0.545Cleaning 0.140 0.077 0.228 0.029 0.010Sorting 0.150 0.106 0.261 0.010Weighing 0.170 0.099 0.267 0.234 0.010Packing 0.080 0.106 0.262 0.010Loading 0.196 0.004 0.080Unloading 0.196 0.004 0.030

Salaries & wages 0.740 0.805 0.768 0.262 0.399

TOTAL 1.93 1.57 1.47 3.02 1.98 0.71

Table12b. ONION: Labor costs by marketing activity/practice, selected demand areas, Philippines, 2006

Cagayan de Oro City

Davao CityMarketing Activity

peso per kilogram

Metro Manila

Naga City

Legaspi City

Cebu City

29 40

LAND TENURE ILOCOS NORTE PANGASINAN NUEVA

ECIJA TOTAL

Owned 11 12 14 37 Tenanted 8 3 1 12 Leased 5 1 6 Held under CLT 1 1 2 Contract grower 1 1 Rent free 2 2

TOTAL 20 20 20 60

Table 3. ONION: Number of farmer-respondents by tenure status, selected provinces, Philippines, 2006

PROVINCE SINGLE PROPRIETORSHIP

PARTNERSHIP TOTAL

SUPPLY AREASILOCOS NORTE 13 13PANGASINAN 23 23NUEVA ECIJA 28 1 29


TOTAL 160 1 161

Table 4. ONION: Number of trader-respondents, by type of ownership, selected provinces, Philippines, 2006


O N I O N

41 28

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ProcurementHauling 0.020 0.067 0.050cleaning 1.500 0.050Sorting 0.020Bundling 0.400 0.050Packing 0.080 0.023Loading 0.080 0.023 0.067Unloading 0.023 0.067

DistributionHauling 0.120 0.067Cleaning 1.489Drying 0.393 0.133Sorting 0.782 0.857Weighing 0.100 0.693Braiding 0.293 0.693Bundling 0.782Packing 0.383 0.693Loading 0.113Unloading 0.004

Salaries & wages 0.036 0.014 0.693

TOTAL 4.46 2.10 0.07 0.40 0.15 2.94

peso per kilogram

Table12c. ONION: Labor costs incurred by marketing participants, by activity, Ilocos Norte, 2006

Farmer RA-LD PA-LD RetailerPA-MD MA-LDMarketing Activity


O N I O N

ProcurementHauling 0.047 0.089 0.071 0.167 0.123 0.457Cleaning 0.086 0.096 0.333Sorting 0.108 0.034 0.156 0.556Weighing 0.029 0.123Packing 0.328 0.166 0.159 0.123Loading 0.048 0.034Unloading 0.047 0.033

DistributionHauling 0.047 0.014 1.000Cleaning 0.006Sorting 0.022 0.023Weighing 0.022 0.006Packing 0.285 0.026 0.123Loading 0.244Unloading 0.032 0.074 0.143Selling

Salaries & wages 0.019 0.032 0.206 0.205 0.596 0.398

TOTAL 0.64 0.83 0.53 0.62 0.82 1.09 2.41

Marketing Activity

Table12d. ONION: Labor costs incurred by marketing participants, by activity, Pangasinan, 2006

peso per kilogramPA-MD MA-LD BA-LDFarmer IRA-LD IRA-MD Retailer

27 42

PROVINCE FARMER TRADER TOTAL



TOTAL 60 161 221

Table 1. ONION: Number of respondents, selected provinces, Philippines, 2006


O N I O N

43 26

ProcurementCleaning 0.350 0.160 Sorting 0.300 0.160 Weighing 0.250 Packing 0.220 0.250 0.070 Loading 0.325 0.240 0.180 0.085 Unloading 0.325 0.150 0.085

DistributionHauling 0.080 0.090 0.160 0.210 0.170 Cutting 0.120 Cleaning 0.070 0.170 0.260 0.260 0.160 Drying 0.230 Sorting 0.160 0.180 0.120 0.210 0.160 Tagging 0.070 Weighing 0.070 0.140 0.080 0.260 0.070 0.150 Packing 0.160 0.140 0.060 0.210 0.160 Loading 0.050 0.090 0.080 0.075 0.150 Unloading 0.160 0.070 0.075 0.120 0.040

Salaries & wages 0.130 0.052 0.080 0.160 0.710

TOTAL 1.07 2.14 1.88 0.15 1.51 0.07 1.87 0.88

IRA-LD PA-LD RetailerMarketing Activitypeso per kilogram

PA-MD MA-SD BA-SD AssemblerFarmer

Table 12e. ONION: Labor costs incurred by marketing participants by activity, Nueva Ecija, 2006


O N I O N

ANNEXES

25 44



TOTAL 1.21 0.47 1.20

peso per kilogram

Table 12g. ONION: Labor costs incurred by marketing participants, by activity, Naga City, 2006

IRA-LD IRA-MD RetailerMarketing Activity

ProcurementHauling 0.200 0.320 0.160 0.310Unloading 0.070 0.150 0.220Loading 0.170 0.150 0.160 0.480

DistributionHauling 0.010 0.020 0.030Cleaning 0.110 0.020 0.100 0.330Sorting 0.100 0.020 0.100 0.380Weighing 0.100 0.090 0.100 0.390Packing 0.020 0.100 0.120

Salaries & wages 0.110 0.200 1.670

Total 0.76 0.90 0.92 3.93

Table12d. ONION: Labor costs incurred by marketing activity, Metro Manila, 2006

peso per kilogramIRA-LD MA-SD Agent RetailerMarketing Activity

Table 12f. ONION: Labor costs incurred by marketing participants, by activity, Metro Manila, 2006


O N I O N

45 24

ProcurementHauling 0.109 0.083 0.692 Loading 0.135 0.182 0.018 Unloading 0.123 0.120 0.125

DistributionCleaning 0.099 0.056 Weighing 0.099

Salaries & wages 0.768

Total 1.33 0.44 0.84

peso per kilogram

Table 12h. ONION: Labor costs incurred by marketing participants, by activity, Legaspi City, 2006

IRA-LD IRA-SD RetailerMarketing Activity


DistributionCleaning 0.048 0.407Sorting 0.048 0.164Weighing 0.048 0.485Packing 0.048 0.164Loading 0.196Unloading 0.196


TOTAL 1.67 4.20

Table 12i. ONION: Labor costs incurred by marketing participants, by activity, Cebu City, 2006

peso per kilogram

IRA-LD RetailerMarketing Activity


O N I O N

Partnership – type of business ownership where capital is shared and managed by two to five persons with the intention of sharing profit.

Pick-up – mode of procurement and or distribution wherein the buyer goes to

the supplier to buy the commodity. Retailer – type of trader who sources his/her stock either directly from the

farmer or from distributor and sells directly to consumers. Self-financed – source of capital where the operator or trader used his own

fund to finance onion marketing operations. Single proprietorship – business is owned solely by farmer or trader. Sorting – classifying or grading of onion according to size, quality and

freshness. Supply areas – top three onion producing provinces in the country in terms of

quantity produced. Unloading – carrying the sacked or bundled onion outside the vehicle.

23 46

ProcurementHauling 0.001 0.926Cleaning 0.001Sorting 0.001Weighing 0.001Packing 0.001Unloading 0.001 0.208

DistributionHauling 0.010Cleaning 0.029Sorting 0.083 0.439Weighing 0.029 0.439Packing 0.083 0.440Loading 0.004Unloading 0.004


TOTAL 0.40 2.37a/ less than 0.001

Table 12j. ONION: Labor costs incurred by marketing participants, by activity, Cagayan de Oro City, 2006

peso per kilogramIRA-LD RetailerMarketing Activity


O N I O N

services to his/her buyers than to his/her suppliers. They can be classified according to the relative volume of commodities as follows:

a) Small Distributor (SD) – handles a small volume of commodity;

sells to retailers within the same market; may sell to several small eateries.

b) Medium Distributor (MD) – sells larger volume than small

distributor; sell to trading coming from other markets in the province; may sell to few institutional buyers (hotel, restaurants, hospital, military camp).

c) Large Distributor (LD) – handles the largest volume among the

three types of distributors; usually sell to traders from other markets within and outside the province; may sell to several institutional buyers.

Handling – carrying onion from one place to another, which composed of

loading and unloading. Hauling – bringing the harvest from the farm to the first point of sale. Moving

the commodity from the farm to the trading or bagsakan areas. Loading – carrying onion inside the vehicle. Marketing channels – refers to the inter-organizational system composed of

interdependent participants involved in the task of moving products from the point of production to the point of consumption. It may vary according to location, time and type of the products sold.

Marketing costs – costs incurred by marketing participants in moving their

products from one place to another. Cost components include labor cost, transportation cost, cost of materials, other operating cost and imputed cost.

Market margins – difference between the value of a product at one stage and

the value of the same product at another stage.

47 22

ProcurementUnloading 0.010 0.020

DistributionHauling 0.010 1.080 Cleaning 0.010 Sorting 0.010 Weihging 0.010 Packing 0.010 Loading 0.010 0.150 Unloading 0.010 0.050

TOTAL 0.08 0.07 0.15 1.08

Retailer

Table12i. ONION: Labor costs incurred by marketing activity, by province, Davao City, 2006

peso per kilogramIRA-LD BA-MD BA-SDMarketing Activity

Table 12k. ONION: Labor costs incurred by marketing participants, by activity, Davao City, 2006


O N I O N

Definition of Terms Assembler – procures onion from farmers and traders in the supply areas. These types of traders are classified according to their area of procurement.

a) Barangay Assembler (BA) – procures within the barangay. 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 province

within the region. e) Interregional Assembler (IRA) – procures from two or more regions.

Assembler – Distributor – uses about the same effort and resources in procuring and selling a commodity; may finances farmers and traders in supply areas and has agents responsible for procurement; sells commodities to other traders. The following combinations were identified in the study:

a) Barangay Assembler – Small Distributor (BAS-SD) b) Municipal Assembler – Medium Distributor (MA-MD) c) Provincial Assembler – Small Distributor (PA-SD) d) Provincial Assembler – Medium Distributor (PA-MD) e) Provincial Assembler – Large Distributor (PA-LD)

Delivered – mode of procurement and or distribution wherein the supplier go to

the buyer to sell the commodity. Demand areas – provinces/areas where most of the onion produced in the

supply areas were sold or brought. Distributor – sells commodities to other traders and consumers. Since his/her

function is primarily to sell than to procure, he/she provides more services to his/her bu yers than to his/her suppliers. They can be

21 48


Vehicle rental

Procurement 0.859 0.536 0.541 Distribution 1.095 0.212 0.418

Private vehicle

Gas & oil 0.618 0.263 0.225

TOTAL 2.57 1.01 1.18

peso per kilogram

Table 13a. ONION: Transportation costs by item, selected supply provinces, Philippines, 2006

Item

Vehicle rental

Procurement 1.940 2.778 2.396 1.624 0.272 1.403 Distribution 0.460 2.349

Private vehicle

Gas & oil 0.505 3.194 1.498 0.034 0.070 0.030

TOTAL 2.91 5.97 3.89 1.66 2.69 1.43


Table 13b. ONION: Transportation costs by item, selected demand areas, Philippines, 2006

Naga City

Legaspi City

Cebu City

Cagayan de Oro City

Davao City

Metro Manila


O N I O N

4920


Table 19b. ONION: Percentage distribution of trader-respondents, by problems encountered, selected areas, 2006

Problems Ilocos Norte Pangasinan Nueva

Ecija Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro City

Davao City

Competition with other traders 8 14 10 18 22 20 11 11 14

Shrinkage and spoilage of commodity

15 9 3 9 22 7 11 11 21

Low quality of products traded 8 9 3 9 11 7 6 11 7

Price fluctuation 4 5 11 7 17 11 7

Bad debts 4 3 5 11

Stealing 8 4 3 11 20 High cost of securing business license

4 3 11 7

No problem 61 52 75 54 32 55 56 51

Total 100 100 100 100 100 100 100 100 100

Vehicle rental

Procurement 0.640 0.267 0.703 Distribution 0.203 0.221

Private vehicle

Gas & oil 0.012 0.232 0.664 0.306 0.026 0.641 0.007 0.217

TOTAL 0.22 1.09 0.66 0.31 0.29 0.64 0.01 0.92

Table 13d. ONION: Transportation costs incurred by marketing participants, by item, Pangasinan, 2006


PA-MD MA-LD BA-LD AgentFarmer IRA-LD IRA-MD Retailer

Vehicle rental

Procurement 0.110 0.511 1.563 1.250 Distribution 0.411 0.998 1.875

Private vehicle

Gas & oil 0.948 0.288

TOTAL 1.36 0.40 1.51 3.44 1.25

Table 13a. ONION: Transportation costs incurred by marketing participants, by item, Ilocos Norte, 2006

peso per kilogramPA-LD MA-LDFarmer RA-LD RetailerItem

Table 17b. ONION: Percent distribution of trader-respondents, by problems encountered, selected demand areas, Philippines, 2006

Table 13c. ONION: Transportation costs incurred by marketing participants, by item, Ilocos Norte, 2006


O N I O N

margin of P11.02 per kilogram after deducting the costs incurred in production and marketing at P11.61 and P2.37, respectively. Traders in the province recorded net margins ranging from P0.26 to P1.75 per kilogram, on the average. Interregional Assembler got the highest net margin at P1.74 while Barangay Assembler got the lowest at P0.26 per kilogram.

F. Marketing Problems Commonly Encountered by the Respondents

The common

problems cited by farmer-respondents in Ilocos Norte were low price received, weak demand for onion, stealing, price fluctuation and bad debts.

Seventy percent

(70%) of farmer-respondents in Nueva Ecija cited the low price received due to the presence of imported onion.

In Pangasinan,

farmers were problematic on the low prices they received during peak seasons and on the difficulty in directly selling to Divisoria.

For trader-respondents, the common problems cited were: competition

with other traders, shrinkage and spoilage of the commodity. Some trader-respondents also mentioned the low quality of onion being traded. Other problems identified were bad debts, stealing and high cost of securing a business license.

19 50

Table 17a. ONION: Percentage distribution of farmer-respondents, by problems encountered, selected provinces, Philippines, 2006

Problems Ilocos Norte

Panga-sinan

Nueva Ecija

Low price received due to imported onion 10 5 70

Low price received during harvest time 10 25

Difficulty in selling directly to Manila (Divisoria) 10

Shrinkage of the commodity 5 5 5

Weak demand when buyer have voluminous stocks in their bodegas 5 5 5

Stealing 5 5

Price fluctuation 10 5 10

Bad debts 5 5 5

No problems 50 35 5

Total 100 100 100 Source: Annex Table 19a

Vehicle rental

Procurement 0.430 0.330 0.870 0.640 Distribution 0.080 0.660 0.620 1.470 0.540

Private vehicle

Gas & oil 0.100 0.350

TOTAL 0.08 1.09 1.05 2.34 1.53

peso per kilogram

Table 13e. ONION: Transportation costs incurred by marketing participants, by item, Nueva Ecija, 2006

MA-SDFarmer IRA-LD PA-LD AssemblerItem

Vehicle rental

Procurement 1.940 Distribution 0.460

Private vehicle

Gas & oil 0.810 0.200

TOTAL 0.81 0.66 1.94

peso per kilogramRetailer

Table 13f. ONION: Transportation costs incurred by marketing participants, by item, Metro Manila, 2006

IRA-LD AgentItem

Table 17a. ONION: Percent distribution of farmer-respondents by problems encountered, selected supply provinces, Philippines, 2006


O N I O N

Among the trader-respondents, Provincial Assembler-Medium Distributor had the highest net margin at P 9.35 per kilogram. While the retailers netted an amount of P5.21, PA-LD, RA-LD, MA-LD, garnered P2.61, P1.16 and P1.09, respectively.

b. Pangasinan

As shown in Table 13, average cost of producing one kilogram of onion in Pangasinan was P10.25. When this amount and the total marketing cost of P2.88 were subtracted from the farmgate price of P28.00, farmers realized a net margin of P14.87. RA-LD’s margin was P1.10. IRA-MD’s at P6.28, while retailers had P5.98 per kilogram. Other marketing participants like PA-MD, MA-LD, BA had net margins ranging from P3.16 to P3.27 per kilogram. Agent had the lowest net margin at less than one peso (P0.98) per kilogram. c. Nueva Ecija The average price of onion at the farm was P25.00 per kilogram. Farmers realized a net margin of P11.02 per

51 18


Table 14. ONION: Marketing costs and margins, Ilocos Norte, 2006 (peso per kilogram)


Total Marketing

Cost Gross Net FARMER 30.00 13.60 16.91 3.31 RA-LD 30.00 35.00 3.71 4.87 1.16 PA-LD 30.00 45.00 2.39 5.00 2.61 PA-MD 30.00 35.00 0.65 10.00 9.35 MA-LD 30.00 35.00 3.92 5.00 1.08 RETAILER 40.00 56.00 8.79 14.00 5.21


Table 15. ONION: Marketing costs and margins, Pangasinan, 2006 (peso per kilogram)


Total Marketing

Cost Gross Net FARMER 28.00 2.88 17.75 14.87 IRA-LD 30.00 39.00 7.90 9.00 1.10 IRA-MD 32.00 40.00 1.72 8.00 6.28 PA-MD 33.00 39.00 2.84 6.00 3.16 MA-LD 35.00 40.00 1.22 5.00 3.78 BA-LD 30.00 35.00 1.73 5.00 3.27 AGENT 34.00 35.00 0.02 1.00 0.98 RETAILER 41.00 51.00 4.02 10.00 5.98

Table 16. ONION; Marketing costs and margins, Nueva Ecija, 2006 (peso per kilogram)


Total Marketing

Cost Gross Net Farmer 25.00 2.37 13.39 11.02 Assembler 26.00 32.00 4.97 6.00 1.03 IRA-LD 26.00 32.00 4.26 6.00 1.74 PA-LD 32.00 37.00 4.44 5.00 0.56 PA-MD 35.00 37.00 1.08 2.00 0.92 BA-MD 37.00 38.00 0.03 1.00 0.97 MA-SD 38.00 44.00 5.32 6.00 0.68 BA-SD 44.00 45.00 0.74 1.00 0.26 Retailer 45.00 50.00 3.25 5.00 1.75


Vehicle rental


Private vehicle

Gas & oil 1.50

TOTAL 3.61 3.07 2.00

Table 13h. ONION: Transportation costs incurred by marketing participants, by item, Legaspi City, 2006

peso per kilogramIRA-LD IRA-SD RetailerItem

Vehicle rental

Procurement 2.778

Private vehicle

Gas & oil 3.017 3.370

TOTAL 3.02 3.37 2.78

Table 13e. ONION: Transportation costs incurred by marketing participants, by item, Naga City, 2006

peso per kilogramIRA-LD IRA-MD RetailerItem

Vehicle rental

Procurement 1.624

Private vehicle

Gas & oil 0.026 0.041

TOTAL 1.65 0.04

Item

Table 13g. ONION: Transportation costs incurred by marketing participants, by item, Cebu City, 2006

peso per kilogramIRA-LD Retailer

Table 14. ONION: Marketing costs and margin of marketing participants, Ilocos Norte, 2006

(peso per kilogram)

Table 15. ONION: Marketing costs and margin of marketing participants, Pangasinan, 2006

(peso per kilogram)

Table 16. ONION: Marketing costs and margin of marketing participants, Nueva Ecija, 2006

(peso per kilogram)

Table 13g. ONION: Transportation costs incurred by marketing participants, by item, Naga City, 2006

Table 13i. ONION: Transportation costs incurred by marketing participants, by item, Cebu City, 2006


O N I O N

e. Cagayan de Oro In Cagayan de Oro City traders spent an average of P9.56 per kilogram in marketing onion. The imputed cost of P3.03 per kilogram represented the biggest portion of the total cost at 35%. Expenses on transportation ranked second at 28% (P2.69). Shares for labor costs, other operating costs and materials were at 21%, 13% and 3%, respectively. f. Davao City In Davao City, an average of P3.30 was spent by the respondent in marketing onion. About 43% (P1.43) of this were spent on transportation. Other operating expenses accounted for 30% (P0.98). Labor cost which were represented by P0.71 were 22% of the total cost. About four percent (P0.14) were spent on imputed cost and one percent (P0.03) on materials used.

2. Marketing Margins

a. Ilocos Norte

The farmers sold a kilogram of onion at P30.00, and spent a total amount of P13.09 per kilogram for production and P13.60 in marketing. A net margin of P3.31 per kilogram was realized. Among the trader-respondents, Provincial Assembler-Medium

Distributor

17 52


C a g a y a n d e Or o C i t y , 2 0 0 6

Imput e d Cost35%

Labor21%

Tra nspor-t a t ion

28%

Ma t e ria l 3%


13%Source: A nnex Tab le


D a v a o C i t y , 2 0 0 6

La bor22%



30%

Ma t e ria l 1%

Imput e d Cost4%

Source: A nnex Tab le 17

Source: Costs and Returns Survey (CRS)

Vehicle rental

Procurement 2.370 0.080 2.100 1.060

Private vehicle

Gas & oil 0.030

TOTAL 2.37 0.08 2.10 1.06

Table 13k. ONION: Transportation costs incurred by marketing participants, by item, Davao City, 2006

Retailerpeso per kilogram

IRA-LD BA-MD BA-SDItem

Vehicle rental

Procurement 0.103 0.441 Distribution 2.349

Private vehicle

Gas & oil 0.042 0.097

TOTAL 2.45 0.44

Table 12h. ONION: Transportation costs incurred by marketing participants, by activity, Cagayan de Oro City, 2006

peso per kilogramIRA-LD RetailerItem

Figure 25. Percent distribution of marketing costs of onion, by cost component, Cagayan de Oro City,

2006

Figure 26. Percent distribution of marketing costs of onion, by cost component, Davao City, 2006

Imputed Other Costs Labor



Table 13. ONION: Cost of production, selected supply provinces, 2006 (peso per kilogram)


13.09 10.25

11.61

Table 13j. ONION: Transportation costs incurred by marketing participants, by item, Cagayan de Oro City, 2006


O N I O N

b. Naga City Among the six demand areas, Naga City posted the highest average marketing cost at P12.98 per kilogram. The cost of transportation accounted for 47%, while other operating costs and imputed costs made up 20% each. The costs of labor and materials accounted for 12% and one percent, respectively. c. Legaspi City In Legaspi City onions were sourced from Pangasinan and Nueva Ecija. About P8.99 per kilogram was the average cost in marketing onions. Of this, about 43% went to transportation (P3.89). Other operating expenses were recorded at 26% (P2.35), labor at 16% (P1.47), imputed cost at 13% (P1.14), and cost of materials used at 2% (P0.14). d. Cebu City The supply of onion in Cebu came from Luzon for which traders spent an average of P8.63 per kilogram. About 35% of the total cost, was on labor of P3.02 per kilogram. Imputed cost which consist of 23% (P2.01) of all costs. Other operating costs were 22% of the total costs. Transportation shared 19% while the cost of materials accounted for one percent.

53 16


N a g a C i t y 2 0 0 6 Imput e d

Cost20%

La bor12%

Tra nsport a t ion 47%


20% Ma t e ria ls1%


Figure 23 . Percentage distribution of m arketing cost, by cost com ponent,

L egaspi C ity , 2006

O ther O perating

26%

Im puted C ost13%

Labor16%

Transpor-tation 43%

M aterial 2%



C e b u C i t y , 2 0 0 6

Imput e d Cost23%

La bor35%

Tra nspor-t a t ion

19%Ma t e ria l 1%


22%

S o urce: A nnex Tab le 17

Item

red bag 0.207 plastic bag 0.008 0.107 0.091 0.012 0.102 0.030 basket 0.014 0.006 bilao 0.001 0.005 0.001 trapal 0.052 wooden box 0.004

TOTAL 0.01 0.13 0.14 0.02 0.31 0.03

peso per kilogram

Table 14b. ONION: Cost of materials by item, selected demand areas, Philippines, 2006

Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro City

Davao City

Figure 22. Percent distribution of marketing costs of onion, by cost component, Naga City, 2006

Figure 23. Percent distribution of marketing costs of onion, by cost component, Legaspi City, 2006

Figure 24. Percent distribution of marketing costs of onion, by cost component, Cebu City, 2006


Ilocos Norte Pangasinan Nueva

Ecija

red bag 0.118 0.353 0.587 twine 0.067 0.006 plastic bag 0.245 0.072 0.030 kaing 0.005 basket a/winnow "bilao" 0.002 basin 0.002 pail 0.002 trapal 0.002 sack 0.197 bamboo strips 0.078

TOTAL 0.64 0.51 0.62

peso per kilogram

Item

Table 14a . ONION: Cost of materia ls by item, se lected supply provinces, Philippines, 2006

a/ less than 0.001


O N I O N

b. Pangasinan

Farmers and traders in Pangasinan recorded an average marketing cost of P11.12 per kilogram. Half of this (54%) accounted for other operating expenses. The shares of other cost components were: labor cost (21%), imputed cost (12%), transportation (9%) and materials (4%). c. Nueva Ecija

In Nueva Ecija, an average of P7.62 per kilogram was spent by the respondents in the marketing of onions. About 40% were spent for labor, 26% for imputed items and 14% for other operating expenses. The costs of transportation and materials shared 13% and 7%, respectively.

Demand Areas

a. Metro Manila Traders in Metro Manila spent an average of P6.87 per kilogram in onion marketing. About 43% were spent for transportation, 28% for labor, and 22% for other operating expenses. About 7 percent represented imputed cost of marketing.

15 54

Fi g u r e 19 . P e r c e n t a g e d i s t r i b u t i o n o f m a r k e t i n g c o s t s , b y c o s t c o m p o n e n t ,

P a n g a s i n a n , 2 0 0 6

Imput e d Cost12%

La bor21%

Tra nspor-t a t ion

11%

Ma t e r ia ls 4%


52%



N u e v a Ec i ja , 2 0 0 6

Imput e d Cost26%

La bor40%

Tra nspor-t a t ion

13%Ma t e ria l

7%


14%


Fi g u r e 2 1. P e rc e n t a g e d i s t r i b u t i o n o f m a rk e t i n g c o s t s , b y c o s t c o m p o n e n t s ,

Me t ro Ma n i l a , 2 0 0 6

Labor28%


Mat e ria ls0%


22%

Imput ed Cost7%

7


red bag 0.353 twine 0.002 0.002 0.002 0.327 0.001 plastic bag 0.058 0.003 0.155 kaing 0.005 basket a/bilao 0.002 basin 0.002 pail 0.002 trapal 0.002

TOTAL 0.36 0.002 0.002 0.38 0.004 0.16 a/ less than 0.001

Table 14d. ONION: Cost of materials incurred by marketing participants, by item, Pangasinan, 2006

peso per kilogramPA-MD MA-LDFarmer IRA-LD IRA-MD RetailerItem

Farmers RA-LD PA-LD Retailers

Sacks 0.093 0.300 Plastic bag (small) 0.245 Red bag 0.155 0.080 Bamboo strips 0.078

TOTAL 0.33 0.30 0.08 0.25

Table 14a. ONION: Cost of materials incurred by marketing participants, by item, Ilocos Norte, 2006


Figure 19. Percent distribution of marketing costs of onion, by cost component, Pangasinan, 2006

Figure 20. Percent distribution of marketing costs of onion, by cost component, Nueva Ecija, 2006

Figure 21. Percent distribution of marketing costs of onion, by cost component, Metro Manila, 2006

Table 14c. ONION: Cost of materials incurred by marketing participants, by item, Ilocos Norte, 2006

Transpor -tation 9%

Operating 54%


O N I O N

Plastic bag 0.008 Bilao 0.008 0.001

TOTAL 0.01 0.01 0.00


Table 14f. ONION: Cost of materials incurred by marketing participants, by item, Metro Manila, 2006

Agent RetailerIRA-LD

Average Marketing Costs

In the supply areas, non-cash costs ranged from P6.77 to P13.82 per kilogram, while cash costs ranged from P0.85 to P3.09 per kilogram. Ilocos Norte got the highest total average cost at P16.91. Pangasinan recorded at P11.31 while Nueva Ecija posted at P7.62 per kilogram.

At the demand areas, non-

cash costs ranged from P3.15 to P10.27 per kilogram. Cash costs ranged from P0.14 to P4.39 per kilogram. The highest average marketing cost was noted in Naga City at P12.90 while the lowest was in Davao City at P3.30 per kilogram.

Figures 18-20 depict the percent distribution of each cost component

for the supply areas while Figures 21-26 describe for the demand areas. Supply Areas

a. Ilocos Norte

Among the supply areas covered, Ilocos Norte incurred the highest marketing cost at P16.91 per kilogram. Labor accounted for 38%, other operating expenses 25%, imputed cost 18%, and transportation cost 15%. The cost of materials shared four percent.

55 14




plastic bag 0.09 0.08 0.16 tiklis/basket 0.01 0.01 winnow " bilao" 0.01 0.00 wooden box 0.00

TOTAL 0.10 0.10 0.16

Table 14g. ONION: Cost of materials incurred by marketing participants, by item, Naga City, 2006


red bag 0.28 0.23 0.35 0.25 0.33 0.32 twine 0.00 0.01 0.00 twine 0.00 a/ 0.00 plastic bag 0.02 0.01 needle a/

TOTAL 0.28 0.23 0.36 0.25 0.35 0.32 0.01 a/ less than 0.0001

Item

Table 14c. ONION: Cost of materials incurred by marketing participants, by item, Nueva Ecija, 2006

peso per kilogramPA-MD MA-SD AssemblerFarmer IRA-LD PA-LD Retailer

Table 11. ONION: Total marketing costs by major component, selected supply provinces, Philippines, 2006 (peso per kilogra m)


Non-cash 13.82

10.00 6.77

Cash

3.09

1.31 0.85

TOTAL

16.91

11.31 7.62

Table 12. ONION: Total marketing costs by major component, selected demand areas, Philippines, 2006 (peso per kilogram)

Item Metro Manila

Naga City

Legaspi City

Cebu City

Ca gayan de Oro

City

Davao City

Non-cash 6.36

10.27

7.86

6.61

6.27

3.15

Cash 0.51

2.63

1.56

2.02

4.39

0.14

TOTAL 6.87

12.90

9.42

8.63

10.65

3.30

Figure 18. Percent distribution of marketing

costs of onion, by cost component, Ilocos Norte, 2006

Labor38% Imputed

Cost18%

Other Operating

25%Material s

4%

Transpor-tation 15%


Table 14e. ONION: Cost of materials incurred by marketing participants, by item, Nueva Ecija, 2006


O N I O N

At the supply areas, Pangasinan got the highest operating expenses at P5.96 per kilogram. Ilocos Norte followed at P4.15 per kilogram while Nueva Ecija spent P1.30 per kilogram.


Naga City and Legaspi City posted average costs of P2.60 and P2.35 per kilogram, respectively. Other cities recorded lower operating costs per kilogram at P1.91 (Cebu); P1.51 (Metro Manila.); P1.28 (Cagayan de Oro) and P0.98 (Davao).

e. Imputed Costs

Ilocos Norte had the highest imputed costs per kilogram among the supply areas at P1.85 for depreciation and P1.24 for unpaid labor. Nueva Ecija ranked next at P2.44 per kilogram, in which P0.36 was for depreciation and P2.08 for unpaid labor. Pangasinan got less than a peso per kilogram for both imputed items.

The cost of

depreciation in the demand areas ranged from P0.04 (Davao City) to P1.07 per kilogram (Naga City). Meanwhile, imputed cost for unpaid labor was lowest in Davao City at P0.11 and highest in Cagayan de Oro City at P2.90 per kilogram.

13 56




Table 9. ONION: Imputed cost, selected supply provinces, Philippines, 2006

(peso per kilogram)

Item Ilocos Norte Pangasinan Nueva

Ecija

Depreciation 1.85 0.69 0.36 Unpaid Labor 1.24 0.62 2.08

TOTAL 3.10 1.31 2.44

Table 10. ONION: Imputed cost, selected demand areas, Philippines, 2006 (peso per kilogram)

Item Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro

City

Davao City

Depreciation 0.24 1.07 0.26 0.09 0.40 0.04

Unpaid Labor 0.27 1.56 0.88 1.92 2.90 0.11

TOTAL 0.51 2.63 1.14 2.01 3.30 0.14 Source: Annex Table 16


plastic bag 0.10 0.08 winnow "bilao" 0.00 trapal 0.05

TOTAL 0.05 0.10 0.08

Table 14h. ONION: Cost of materials incurred by marketing participants, by item, Legaspi City, 2006


IRA-LD Retailer

Plastic bag 0.11 Red bag 0.21

TOTAL 0.21 0.11


Table 14j. ONION: Cost of materials incurred by marketing participants, by item, Cagayan de Oro City, 2006


Plastic bag 0.01 0.00 0.09 0.02

TOTAL 0.01 0.001 0.09 0.02

Table 14k. ONION: Cost of materials incurred by marketing participants, by item, Davao City, 2006


IRA-LD Retailer

plastic bags 0.00 0.02 basket 0.01

TOTAL 0.00 0.03


Table 14g. ONION: Cost of materials incurred by marketing participants, by item, Cebu City, 2006

Table 7. ONION: Other operating costs, selected supply provinces, Philippines 2006 (peso per kilogram)

Ilocos Norte Pangasinan Nueva Ecija 4.15

5.96 1.30

Table 8. ONION: Other operating costs, selected demand areas, Philippines 2006 (peso per kilogram)

Metro Manila

Naga C ity

Legaspi City

Cebu City

Cagayan de Oro

City Davao City

1.51 2.60

2.35 1.91

1.28 0.98

Table 14i. ONION: Cost of materials incurred by marketing participants, by item, Cebu City, 2006


O N I O N

In using privately owned vehicle, transportation costs of traders in Cebu, Cagayan de Oro and Davao cities amounted to less than P0.10 per kilogram. Naga City, however, posted a relatively high cost for gas and oil at P3.19 per kilogram.

c. Material Costs The common materials used by the respondents in onion trading are red bags, tying materials such as twine and bamboo strips.

The average costs of

materials used in the supply areas ranged from P0.51 in Nueva Ecija to P0.64 per kilogram in Ilocos Norte. In Pangasinan, the cost of materials was P0.51 per kilogram.


Cagayan de Oro City had the highest cost of materials at P0.31, followed by Legaspi City and Naga City at P0.14 and P0.13 per kilogram, respectively.

d. Other Operating Costs

Listed in Annex Table 15 are the various operating costs of marketing participants in all provinces covered. Among these costs are rentals, licenses, utility fee, market fees, etc

57 12


Table 5. ONION: Materials used, selected supply provinces, Philippines, 2006

(peso per kilogram)


0.64 0.51 0.62

Table 4. ONION: Transportation costs, selected demand areas, Philippines, 2006 (peso per kilogram)

Item Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro

City

Davao City

Vehicle rental

Procurement 1.94 2.78 2.40 1.62 2.62 1.40

Distribution 0.46

Private vehicle

Gas & oil 0.51 3.19 1.50 0.03 0.07 0.03 Source: Annex Table 13



Entrance fee 0.066 0.242 0.001 Market fee/ticket 0.071 0.040 0.118 Stall rental/fee 1.066 0.010 0.177 Parking fee 0.007 Commission fee 0.100 0.382 0.480 WS* calibration fee 0.024 0.001 0.001 Storage fee 4.867 Business Permit 0.040 0.023 0.223 Mayor's permit 0.467 Cell card 0.094 0.025 0.019 Telephone 0.017 0.020 Electricity 0.131 0.040 0.081 Water 0.014 0.001 Wastage 0.300 Shrinkage 1.000 0.181 a/Rrepair & maintenance 0.520 Meals & snacks 0.250 0.129 0.106 Others** 0.004 0.067

TOTAL 4.15 5.96 1.30 * Weighing scale** include toll fee, goodwill fee & tonga/ less than 0.001

peso per kilogram

Table 15a. ONION: Other operating costs, by item, selected supply provinces, Philippines, 2006

Item

Table 6. ONION: Materials used, selected demand areas, Philippines, 2006 (peso per kilogram)

Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro

City Davao City

0.01

0.13

0.14

0.02

0.31

0.03


O N I O N

Entrance fee 0.003 0.005 Market fee/ticket 0.491 0.417 0.016 0.010 Stall rental/fee 0.090 0.080 0.439 0.114 0.289 0.049 Parking fee 0.042 0.017 Agent commission/fee 0.400 0.370 0.014 WS* calibration fee 0.004 0.001 0.001 a/Warehouse fee 0.050 Business Permit 0.016 0.172 0.060 0.035 0.013 0.004 Mayor's permit 0.010 0.403 Cell card 0.001 0.084 0.129 0.010 Telephone 0.009 Electricity 0.024 0.285 0.074 0.055 0.006 0.014 Water 0.003 0.058 0.074 0.023 0.003 Meals & snacks 0.167 0.573 0.501 0.438 0.084 0.040 Wastage 0.040 0.862 0.812 Shrinkage 0.717 0.222 0.150 Repair & maintenance 0.051 Others** 0.042 0.894 0.277 0.300

TOTAL 1.51 2.60 2.35 1.91 1.28 0.98 * Weighing scale** include garbage fee, health certification fee, inspective fee, renew sticker, sign board fee, tax clearance fee, zoning fee, firesafety fee, business registration plate fee, building inspectiion feea/ less than 0.001

Item

Table 15b. ONION: Other operating costs, by item, selected demand areas, Philippines, 2006

peso per kilogram

Cagayan de Oro City

Davao City

Metro Manila

Naga City

Legaspi City

Cebu City

averages of P3.67 and P2.34, respectively. The costs of labor in the procurement of onions ranged from P1.00 to P1.63 per kilogram while distribution entailed costs ranging from P1.34 to P5.24 per kilogram.

At the demand areas, Cebu City had the highest labor cost at P3.02, followed by Cagayan de Oro City at P1.98 and Metro Manila at P1.93 per kilogram. On the other hand, Naga City posted an average labor cost of P1.58; Legaspi City at P1.47 and Davao City at P0.72 per kilogram. Labor costs in procurement ranged from P0.02 to P1.66 per kilogram, while, in distribution, the costs ranged from P0.70 to P1.36 per kilogram.

b. Transportation Costs

Transportation costs include all expenses incurred in moving the products from one place to another.

Ilocos Norte came up with the

highest transport costs among the supply provinces. This amounted to P1.96 if the vehicle used was rented and P0.62 per kilogram for gas and oil if private vehicle was used. Pangasinan recorded an average transportation costs at P 0.75 per kilogram for rentals and P0.26 for gas and oil. In Nueva Ecija, on the other hand, posted P0.96 for rental and P0.23 for gas and oil for owned vehicles.

From the demand areas, Naga, Legaspi and Cagayan de Oro cities

recorded more than P2. 00 per kilogram for renting vehicles in procurement.

11 58


Table 2. ONION: Labor costs by marketing activity, selected demand areas, Philippines, 2006

(peso per kilogram)

Activity Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro

City

Davao City

Procurement 0.63 0.77 0.53 1.66 0.78 0.02

Distribution 1.30 0.81 0.94 1.36 1.20 0.70

TOTAL 1.93 1.58 1.47 3.02 1.98 0.72

Table 3. ONION: Transportation costs, selected supply provinces, Philippines, 2006

(peso per kilogram)


Vehicle rental Procurement 0.86 0.54 0.54 Distribution 1.10 0.21 0.42

Private vehicle Gas & oil 0.62 0.26 0.23



O N I O N


Entrance fee 0.108 0.023 Market fee 0.082 0.041 0.091 Stall rental/fee 1.066 Commision fee 0.100 WS* calibration fee 0.019 0.004 0.048 Business Permit 0.006 0.053 0.062 Mayor's permit 0.467 Cell card 0.060 0.001 0.055 0.259 Telephone 0.017 Electricity 0.131 Wastage 0.300 Shrinkage 1.000 Repair and maintenance 1.000 0.039 Meals & snacks 0.158 0.024 0.455 0.233 0.382

TOTAL 1.41 0.51 0.71 0.23 0.00 3.42 * Weighing scale

peso per kilogram

Table 15c. ONION: Other operating costs, incurred by marketing participants, by item, Ilocos Norte, 2006

Item

b. Terms of Payment Majority (93%) of the respondents sold their products on cash basis. About five percent (5%) practiced a combination of cash and credit. One percent (1%) disposed their products on credit. Two respondents from the supply area stated that they received a kilogram of rice in exchange for one kilogram of onions.

E. Marketing Costs and Margins 1. Marketing Costs

Moving onions from the supply areas to consumption areas entails a number of cost items. The costs incurred by identified marketing participant vary depending on the extent of their marketing operations. The succeeding topics discuss the major components of marketing costs for labor, transportation, materials, other operating expenses and imputed costs.

a. Labor Costs Labor costs are expenses incurred or paid for the services rendered by the workers during the procurement and distribution of the products. The identified labor expenses include hauling, cleaning, sorting, and bundling, weighing, packing and loading and unloading both in supply and demand areas. Among the supply areas,

Ilocos Norte recorded the highest labor cost at P6.47 per kilogram. Nueva Ecija and Pangasinan spent

f P3 6 d

59 10

F ig ure 17 . P e rc e nt d is tribut io n o f re s po nde nts , by te rm s o f pa ym e nt , s e le c te d a re a s , P hilippine s , 2 0 0 6

credit1%

barte r1%

bo th 5%

cas h93%



Table 1. ONION: Labor costs by marketing activity, selected supply provinces, Philippines, 2006

(peso per kilogram)

Activity Ilocos Norte Pangasinan Nueva Ecija


Distribution 5.24 1.34 2.04

TOTAL 6.47 2.34 3.67


O N I O N

trader-respondents or 1% practiced both pick-up and delivery as their mode of procurement.

b. Terms of Payment

About 82% of the trader-

respondents reported that they paid their suppliers in cash. Ten percent (10%) said that they opted to pay after one day of transaction and 8% stated that they practiced both cash and credit as terms of payment.

2. Distribution

Traders involved in onion marketing performed their distribution functions with varying modes and terms of payment depending on the market supply and demand situation.

a. Mode of Selling

The buyers commonly picked up their onions from the supply areas as represented by 67% of the respondents. These traders believed that they can be assured of the quality if they pick up the products by themselves. On the other hand, about 30% of the respondents relied on the onions delivered by their suppliers to their stalls, but they believed that this practice could help them establish a “suki” or good customer relationship.

9 60

Figure 14. Percent distribution of respondents, by mode of buying, se lected


both1%delivered

30%

picked-up69%


F ig ure 15 . P e rc e nt d is tribut io n o f re s po nde nts , by te rm s o f pa ym e nt ,

s e le c te d pro v inc e s , P hilippine s , 2 0 0 6

cas h82%

credit10%

bo th8%


Figure 16. Percent distribution of respondents, by mode of se ll ing, se lected


delivered30%

picked-up67%

both3%


Farmer IRA-LD IRA-MD PA-MD MA-LD BA Agent Retailer

Entrance fee 0.056 0.667 0.004 Market fee 0.006 0.037 0.009 0.004 0.146 Stall rental/fee 0.006 0.018 0.005 WS* calibration fee a/ 0.001 a/ 0.001 0.004 Commission fee 0.406 0.370 0.370 Storage fee 4.867 Business Permit 0.006 0.015 0.011 0.063 0.019 Cell card 0.013 0.050 0.035 0.014 0.015 Electricity 0.014 0.019 0.005 0.001 Water 0.014 Shrinkage 0.137 0.226 Meals & snacks 0.064 0.177 0.038 0.017 0.351 Others

goodwill fee 0.004

TOTAL 0.08 5.73 0.47 1.37 0.10 0.00 0.02 0.52 * Weighing scalea/ less than 0.001

Table 15d. ONION: Other operating costs, incurred by marketing participants, by item, Pangasinan, 2006



O N I O N

traders outside the province and distributed the same to buyers outside the province. They also made use of the storage facilities to reserve surplus onions in anticipation for low supply level during lean seasons.

Onions in Nueva

Ecija passed through a long chain of participants before reaching the consumers, i.e., farmer → agent → ADs → retailer → consumer.

D. Marketing Practices and Functions

In buying and selling onions, farmers and traders performed several functions that add value to the products. The mode of delivery and terms of payment affect somehow the costs incurred in the procurement and distribution of the products. 1. Procurement

In the supply areas, traders procured onion from the producing barangays directly from the farmers especially during harvest season. During lean months or off seasons, traders sourced their supply from other traders who had the capacity to store onions.

a. Mode of Buying

Of the traders interviewed, 69% picked up onions from their suppliers and 30% let their suppliers delivered the products to their stalls. Two trader respondents or 1% practiced both pick up and delivery as their mode

61 8

Figure 13. Marketing Channels for Onion, Nueva Ecija, 2006

FARMER

AGENT BODEGA

ASSEMBLER/ DISTRIBUTOR

RETAILER

CONSUMER

SOP BOP

Farm

erIR

A-LD

PA-L

DPA

-MD

MA-

SDB

A-M

DB

A-SD

Asse

mbl

erR

etai

ler

Entra

nce

fee

0.00

1

Mar

ket f

ee0.

110

Cas

h tic

ket

0.01

0

0.19

0

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0

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4

0.19

0

0.18

0

0.15

0

St

all r

enta

l/fee

0.

040

0.

030

0.

750

0.

010

0.

110

0.

030

0.

270

Park

ing

fee

0.00

3

0.01

0

Com

mis

sion

fee

0.34

0

0.73

0

0.37

0

WS*

cal

ibra

tion

fee

0.00

1

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sine

ss P

erm

it0.

211

0.

221

0.

100

0.

086

0.

496

Tele

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C

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0

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5

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0

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0.

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240

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0.

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0.

180

0.

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370

0.

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0.

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98

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Tabl

e 15

c. O

NIO

N:

Oth

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ting

cost

s, in

curr

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y m

arke

ting

part

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, by

item

,

N

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Eci

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006

Item

Tabl

e 15

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N:

Oth

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pera

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part

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, N

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006


O N I O N

buyers outside the province. The other linkage involved farmers distributing onions to municipal assemblers to retailers and then to end users. This second linkage, provided the local requirement for onions within the province. 2. Pangasinan During harvest season, about 70% of the volume of onions assembled at the farm by the municipal and provincial assemblers were sold to inter regional assembler-distributor. From this stage, onions were passed to buyers outside the province while some were stored in bodega for anticipation of high price during lean months. All participants supplied onions to retailers, but the most common practice and the longest channel was that of farmer → MA/LD → PA/LD → IRA/LD → retailers → consumer chain.

3. Nueva Ecija

There were various types of assembler-distributors identified as players in onion marketing in Nueva Ecija. It ranged from barangay to interregional assemblers and small to large distributors performing similar trading practices. These traders assembled their onions which were sourced from farmers, agents and traders outside the province and distributed the same to buyers outside the

7 62

Figure 12. Marketing Channels for onion, Pangasinan, 2006

FARMER

MA-LD

PA-MD

IRA-LD IRA-MD

RETAILER

CONSUMER

AGENT

BA

SOP BOP

Storage

Figure 11. Marketing Channels of Onion, Ilocos Norte, 2006

RETAILER

CONSUMER

SOP

BOP

RA-LD MA-LDPA-LD

FARMER

IRA-LD MA-SD AGENT Retailer

Stall rental/fee 0.220 0.040 0.009 WS* calibration fee 0.004 a/ 0.010 a/Commission fee 0.400 Business Permit 0.030 0.002 Mayor's permit 0.010 Cell card 0.001 Electricity 0.070 0.002 0.001 Water 0.003 Wastage 0.040 Shrinkage 0.610 0.820 0.720 Meals & snacks 0.150 0.010 0.340 Others

Garbage fee a/ a/ a/ 0.001 Health certification 0.020 a/ a/Sanitary Permit a/ 0.001 a/ 0.001 Sign board inspection fee a/ 0.001 0.001 a/Fire safety fee a/ 0.060 a/ 0.006 BR** plate fee a/ 0.001 a/ 0.050 Building inspection fee a/ a/

Total 1.36 1.05 0.78 0.45 * Weighing scale**Business Registrationa/less than 0.001

peso per kilogram

Table 15f. ONION: Other operating costs, incurred by marketing participants, by item, Metro Manila, 2006

Item


O N I O N

and Laguna. Supplies of onion were also brought to Metro Manila as a transshipment point from supply provinces to demand areas in the Visayas and Mindanao. Onions from Pangasinan were also reportedly brought to the Bicol region.

3. Nueva Ecija

The major supply

areas of onion in the province were the municipalities of Bongabon, Rizal, Talavera, Pantabangan and the cities of San Jose & Palayan. Most onions produced in the province were traded in the markets of San Jose City, San Leonardo, Cabanatuan City and Sangitan. Large volumes of onion were brought to Metro Manila and to other regions in Luzon, Visayas and Mindanao.

C. Marketing Channels 1. Ilocos Norte

There were two identified linkages in marketing of onion in the province. One which is more prominent was that, from the farm, farmers sold their produce to regional and provincial assemblers who sold out onions to buyers outside the province The other linkage involved farmers distributing

63 6

Bayambang Bagsakan Area Urdaneta Trading Center

Within the province

Metro Manila Batangas, Cavite

Pampanga Bulacan Zambales

Bicol Region Misamis Or. Davao

Figure 9. Geographic Flow of Onion, Pangasinan, , 2006

Bayambang, Baustista San Quintin, Umingan Nueva Ecija

Figure 10. Geographic Flow of Onion, Nuev Ecija,2006

Sangitan P. M Cabanatuan City P.M San Jose P.M. San Leonardo P.M.

Within the provinceMetro Manila,

Benguet, , Cavite , Laguna, La Union,

Albay, Misamis Oriental, South Cotabato Sarangani

Bongabon, Talavera,, Rizal, San Jose City

Pantabangan, Palayan City

Pangasinan Ilocos Sur Ilocos Norte


Market fee 0.162 0.913 0.175 Stall rental/fee 0.509 0.584 0.223 Commission fee 0.370 Business Permit 0.013 0.107 Cell card 0.036 0.131 Electricity 0.103 0.046 Water 0.037 Meals & snacks 0.767 0.236 Others

toll gate 0.240 stall repair 0.051 kerosene 0.037

TOTAL 1.47 2.40 0.84


Table 15h. ONION: Other operating costs, incurred by marketing participants, by item, Legaspi City, 2006


Market fee 0.491 Parking fee 0.042 Stall rental/fee 0.029 0.131 WS* calibration fee a/ 0.001 Business permit 0.104 0.240 Electricity 0.481 0.254 0.120 Water 0.058 Meals & snacks 0.569 0.577 Others:

tong 0.125 toll gate fee 0.720 garbage fee 0.049

Total 2.07 1.02 0.90 * Weighing scale

peso per kilogram

Table 15e. ONION: Other operating costs, incurred by marketing participants, by item, Naga City, 2006

Item

Table 15g. ONION: Other operating costs, incurred by marketing participants, by item, Naga City, 2006

a/ less than 0.001


O N I O N

for 11-15 years and 21 years and above, respectively. Fourteen (14%) or 23 respondents were in the business for less than 5 years while 12% or 19 respondents had 16-20 years of experience.

B. Geographic Flow 1. Ilocos Norte

The major onion supply areas in the province were the municipalities of Vintar, Pasuquin, Burgos, Bacarra, and Badoc. Aside from these areas, onion was sourced from nearby municipalities of Ilocos Sur. The main trading centers within the province were the Public Markets of Laoag City and Badoc with Wednesday and Friday as trading days. During these days, farmers and traders within and outside the province meet together for direct buying and selling. Outside destinations included the provinces of Cagayan, Isabela, Pangasinan, Nueva Ecija, and Metro Manila.

2. Pangasinan

The identified top onion producing municipalities in Pangasinan were Bayambang, Bautista, San Quintin and Umingan. From the supply barangays, onions were brought to Bayambang “Bagsakan” situated in front of the town public market. Wholesale transaction was also being done at the Urdaneta City Trading Center. From the trading centers, onions were distributed within the province. Outside destination points included the provinces of Pampanga, Zambales, Nueva Ecija, Bulacan, Batangas, Cavite and Laguna. Supplies of onion were also brought to Metro Manila as a

5 64

Figure 7. Percent distribution of trader-respondents, by years in trading, se lected


21 & above17%

16-2012%

11-1517%

> 514%

5-1040%


Laoag City Public Market Badoc Public Market

Within the province

Cagayan, Isabela, Pangasinan, Nueva Ecija, Metro Manila

Figure 8. Geographic Flow of Onion, Ilocos Norte, 2006

Vintar, Badoc, Pasuquin, and Bacarra

Ilocos Sur

IRA-LD Retailer

Entrance fee 0.003 Market fee 0.003 0.029 Stall rental/fee 0.053 0.174 Parking fee 0.017 WS* calibration fee 0.001 Business Permit 0.010 0.060 Cell card 0.012 0.247 Electricity 0.055 3.958 Water 0.023 Wastage 0.862 Shrinkage 0.222 Meals & snacks 0.045 0.831

TOTAL 0.20 6.40 * Weighing scale

Table 15i. ONION: Other operating costs, incurred by marketing participants, by item, Cebu City, 2006


IRA-LD Retailer

Entrance fee 0.005 Stall rental/fee 0.492 0.086 Warehouse fee 0.049 Agent commission 0.014 Business Permit 0.007 0.019 Telephone 0.009 Electricity 0.006 Water 0.003 Wastage 1.066 0.557 Meals & snacks 0.090 0.078

TOTAL 1.74 0.74


Table 15j. ONION: Other operating costs, incurred by marketing participants, by item, Cagayan de Oro City, 2006


O N I O N

c. Source of Capital. There were two (2) sources of capital identified by the farmer-respondents. Ninety seven percent (97%) used their own capital to finance their operation and three percent (3%) borrowed from relatives.

At the trader level, about 88% or 142 respondents declared that they have their own capital and 12% or 19 respondents used borrowed capital.

d. Years in Farming/Trading. Twenty-two farmer-respondents or 37% were in onion farming for 21 years and above. The rest had been in this venture for 5 –10 years (25%), 16-20 years (23%), and 11 – 15 years (10%). About 5% of the respondents were in onion farming for 5 years.

Forty percent (40%) or 63 trader-respondents were in the business for 5 – 10 years. About 17% each of the trader-respondents were in the business f 11 15 d 21 d

65 4

Figu re 3. Pe rce n t distribu tion of trade rs by type of bu sin e ss own e rsh ip, se le cte d

province s , Ph i l ippine s , 2006

P artner-ship1%

Single P roprie-torship

99%


Figure 4. Percent distribution of farmer-respondents by source of capital, se lected


self financed

97%

borrowed3%


Fi g u re 5 . P e rce n t di s tri bu ti o n o f tra de r-re s po n de n ts by s o u rce o f ca pi ta l , s e l e cte d

pro vi n ce s , P h i l i ppi n e s , 2 0 0 6

self f in an ced

8 8 %

bo rro wed 1 2 %


F ig ure 6 . P e rc e nt d is t rib ut io n o f f arme r- re s p o nd e nt s , b y ye ars in

f arming , s e le c t e d p ro v inc e s , P hil ip p ine s , 2 0 0 6

5 - 1025%

> 55%

21 & above37%

11 - 1510%

16 - 2023%

Source: Annex Table 6a


Market fee/ticket 0.010 Stall rental/fee 0.100 0.006 0.060 0.030 WS* calibration fee a/ a/ a/ 0.001 Business Permit 0.001 0.001 0.010 0.002 Mayor's permit 0.060 0.290 1.260 0.001 Cell card 0.010 Electricity 0.010 0.001 0.030 Shrinkage 0.130 0.140 0.140 0.190 Meals & snacks 0.040 0.008 0.063 0.050 Others: Garbage fee a/ a/ 0.001 0.002 Health certification 0.010 0.030 0.070 0.001 Sanitary Permit 0.010 0.070 0.310 a/Sanitary inspection 0.010 - Renew sticker 0.040 0.030 0.150 a/Sign board 0.001 Tax clearance a/ 0.010 0.040 a/Zoning fee a/Fire safety fee 0.010 0.070 0.300 a/

Total 0.42 0.67 2.41 0.32 * Weighing scalea/ less than 0.001

Table 15k. ONION: Other operating costs, incurred by marketing participants, by item, Davao City, 2006

price per kilogramItem


O N I O N

A. Number and Profile of Respondents

1. Number of Respondents

Two (2) types of respondents were interviewed in the study, the farmers and traders. From the provinces covered, there were 221 respondents, 27% of whom were farmers and 73% were traders. The 161 trader-respondents were further classified into different types as follows: large distributors (62); medium distributors (14); small distributors (11); assemblers (7); agents (2); and retailers (65). They were classified based on their sphere of influence, geographical coverage and volume of transaction.

2. Profile of Respondents

a. Land Ownership of Farmers. Sixty two percent (62%) of the farmer-respondents owned the onion farm. Twelve (12) respondents or 20% were tenants, six were lessees, two were awardees of Certificate of Land Transfer (CLT), two occupied a rent-free farm and one was a contract grower (Figure 2). b. Type of Business Ownership of Traders. Almost all respondents (99%) were single proprietors. The remaining one percent had partners in their onion trading business (Figure 3).

Figure 1. Percent distribution of re spondent, by type , se lected provinces,

Phil ippines, 2006

T rader73%

Farmer27%


3 66



Weighing scale 0.014 0.002 0.002 Calculator 0.006 0.000 0.004 Cellular phone 0.018 0.001 0.007 Chair a/Electric fan 0.001 Blower a/ a/Stroller a/Lona 0.004 Wooden stand (palete) 0.006 0.001 Sizer a/

FacilitiesStorage/bodega 0.146 0.002 0.020 "Papag" (used in drying) 0.009

Transportation FacilitiesTrailer 0.055 Truck 0.024 0.330 0.007 Elf 0.510 0.083 0.011 Jeep 0.039 0.093 0.010 Forward 0.763 0.147 Tractor 0.190 Trailer 0.015 0.019 Pick-up 0.234 Van 0.051 Tricycle 0.024 0.054

UNPAID LABORProcurement 0.021 Distribution 1.223 0.619 0.483

TOTAL 3.09 1.31 0.85 a/ less tha 0.001

peso per kilogram

Table 16a. ONION: Imputed costs by item, selected supply provinces, Philippines, 2006

Item

Figure 2. Percent distribution of farmer-respondents by land ownership, se lected

provinces, Philippines2006

Owner62%

Tenant20%

Leasee10%

CLT-holder3%

Rent Free3%

Contract grower

2%



O N I O N

Sample Selection The study utilized information from both producers and traders. The producers were interviewed to gather information on pre-marketing activities while traders were the sources of information on actual marketing practices. Selection of samples for the two types of respondents was done differently.

a. Farmers From the list of onion farmers covered by the Cost and Returns Survey (CRS) of the BAS, the research team purposively selected 20 sample farmers who have undertaken pre-marketing activities. The 20 sample farmers were distributed proportionately among the top producing municipalities, wherein, the most number of samples were chosen from the largest producing area.

b. Traders In selecting sample traders, a snowball sampling technique was adopted. It is non-probability sampling method used when participants with specific characteristics are required and when there is difficulty in locating respondents with the characteristic of interest. This approach accumulated the data gathered from one trader respondent to another respondent at different levels of commodity marketing system. In the study, a minimum of three and maximum of five respondents per type of marketing participants were interviewed in each trading site. For additional information, key players of the commodity marketing system were also interviewed. These included the market masters, barangay chairmen, “kargador”, drivers, etc. IV. DISCUSSION OF RESULTS

The study covers the costs incurred by the marketing participants in trading onion from the production point to the consumption point. The first part presents the profile of respondents while marketing practices and marketing cost components are discussed at the later part of the report. All relevant tables containing the details on the profile of respondents and the marketing costs item are appended.

67 2

Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro City

Davao City


Weighing scale 0.002 0.006 0.006 0.006 0.009 0.003 Calculator 0.001 0.007 0.001 0.286 a/Cellular phone 0.001 0.020 0.006 0.023 a/Fax machine 0.001 Display rack a/Office table a/Chair 0.017 0.002 Electric fan 0.001 0.004 0.018 0.001 Blower 0.001 Stroller 0.003 LonaWooden stand (palete) 0.004 Money detector a/Tray a/Coleman "Hasag" 0.010 Umbrella 0.005

FacilitiesStorage/bodega 0.024 "Papag" (used in drying) 0.001 0.046 Sorting table (metal) 0.001 a/

Transportation FacilitiesTruck 0.035 0.011 0.010 Elf 0.030 0.545 0.081 a/Jeep 0.050 0.149 0.004 Forward 0.343 0.094 Pick-up 0.110 Tricycle 0.038 Multi-cab 0.009 0.020 Kariton 0.051

UNPAID LABORProcurement 0.592 0.251 0.384 Distribution 0.270 1.562 0.290 1.673 2.519 0.105

TOTAL 0.506 2.632 1.138 2.014 3.303 0.143 a/ less than 0.001

peso per kilogram

Table 16b. ONION: Imputed costs by item, selected demand areas, Philippines, 2006

Item


O N I O N

I. INTRODUCTION

The Bureau of Agricultural Statistics (BAS) recognizes the need for marketing information and thus the effort to incorporate the generation of market and marketing-related statistics in its data systems. While price have been regularly-generated, other marketing statistics are collected occasionally and these are limited to selected types of crop, livestock and fishery commodities.

This particular study intends to provide updated information on

marketing costs structure of onion - the flow, participants and the margins at current levels. II. OBJECTIVES The general objective of this study was to determine the marketing costs structure of onion. Specifically, it aimed to:

1. identify and characterize the marketing participants involved; 2. determine the flow and channels of distribution of onion; 3. determine the practices in marketing of onion among participants;

and 4. determine the components of marketing costs of onion by type of

marketing participants. III. METHODOLOGY

Research Site The study covered three (3) onion supply provinces and six (6) demand areas. For supply areas, the provinces covered Ilocos Norte, Pangasinan and Nueva Ecija while demand areas included Metro Manila, Naga City, Legaspi City, Cebu City, Cagayan de Oro City and Davao City. Supply provinces were chosen based on their significant contribution to the total onion production in the country. The combined onion production of these areas accounted for more than 50 percent of national total. Demand provinces, however, were identified as the distribution and consumption areas of onion produced from the supply provinces. These provinces were identified during the interview phase in the supply areas.

1 68


DEPRECIATIONSupplies & equipment

Weighing scale 0.033 0.007 0.01 a/ 0.007 0.013Calculator 0.019 0.001 0.001 a/ 0.004Cellular phone 0.034 0.007 0.012 a/ 0.004 0.033Paleta 0.006 a/

FacilitiesStorage/bodega 0.381 0.016 0.041

Transportation FacilitiesTruck 0.039 0.009Elf 1.300 0.015 0.216Jeep 0.039Tricycle 0.039 0.009 a/ a/Trailer 0.015Pick-up 0.234Forward 0.763Van 0.051

UNPAID LABORProcurement 0.016 0.025Distribution 3.186 0.300 1.605 0.133 0.893

TOTAL 6.049 0.395 0.023 0.020 0.328 0.943 a/ less than 0.0001

peso per kilogram

Table 16c. ONION: Imputed costs of of marketing participants, by item, Ilocos Norte, 2006

Item


O N I O N

69

Farmer IRA-LD IRA-MD PA-MD MA-LD BA Retailer


Weighing scale 0.007 0.001 0.001 0.001 0.001 0.001 0.003 Calculator a/ a/ 0.001 a/ a/ a/Cellular phone 0.001 0.001 Chair a/ 0.001 Electric fan 0.001 Blower a/Stroller a/

FacilitiesStorage/bodega 0.005 a/Papag (used in dryin g) 0.001 a/ 0.007

Transportation Facilities Truck 0.595 0.066 Elf 0.044 0.043 0.162 Jeep 0.111 0.074 Forward 0.260 0.034 Trailer 0.019


TOTAL 1.59 0.24 0.04 0.16 0.00 0.00 0.01 a/ less than 0.0001

Table 16d. ONION: Imputed costs of marketing participants, by item, Pangasinan, 2006



O N I O N

1a 70

Farm

erIR

A-L

DPA

-LD

PA-M

DB

A-M

DM

A-S

DA

ssem

bler

Ret

aile

r

DEP

REC

IATI

ON

Sup

plie

s &

Equ

ipm

ent

Wei

ghin

g sc

ale

0.01

0

a/a/

0.00

2

a/0.

001

a/

0.00

1

C

alcu

lato

ra/

a/a/

0.01

0

a/a/

Cel

lula

r pho

ne0.

020

0.

003

a/

0.01

0

0.00

1

Blo

wer

a/a/

Sor

ting

tabl

e (m

etal

)a/

a/a/

a/M

oney

det

ecto

rLo

na0.

004

W

oode

n st

and

(pal

ete)

a/0.

001

Siz

era/

Faci

litie

sS

tora

ge/b

odeg

a0.

060

0.

001

0.

001

Tr

ansp

orta

tion

Faci

litie

sE

lf0.

003

0.

010

0.

020

Je

ep0.

020

a/

Trac

tor

0.19

0

Tric

ycle

0.14

0

0.05

0

0.02

0

0.02

0

0.00

4

Trai

ler

0.01

0

0.10

0

Truc

k0.

003

0.

010

UN

PAID

LAB

OR

Dis

tribu

tion

0.53

0

0.31

0

0.12

0

0.97

0

TOTA

L0.

90

0.

19

0.

02

0.

38

0.

02

0.

14

0.

03

0.

97

a/ l

ess

than

0.0

001

Tabl

e 16

c. O

NIO

N:

Impu

ted

cost

of m

arke

ting

part

icip

ants

, by

item

, Nue

va E

cija

, 200

6

Item

peso

per

kilo

gram

HIGHLIGHTS 1) Majority of the respondents interviewed operated under single-

proprietorship using personal funds to finance their business operation. Many respondents have been in the industry for about 5 to 10 years and more than 20 years. Only few were in operation for 11 to 20 years and less than 5 years.

2) There were only three types of participants involved in onion marketing,

namely: farmers, assembler-distributors or wholesalers and retailers. From the farmers, onion was distributed to the assembler-distributors and then to the retailers. Mode of procurement and distribution was usually pick up with terms of payments mostly made in cash basis.

3) The identified supply areas of onion were Ilocos Norte, Pangasinan and

Nueva Ecija. Onion supplies coming from Ilocos Norte were distributed to its respective municipalities and the provinces of Metro Manila, Cagayan, Isabela, Pangasinan, Nueva Ecija and also Metro Manila. In Pangasinan, demand areas included its municipalities and the provinces of Metro Manila, Batangas, Cavite, Pampanga, Bulacan, Zambales, Albay, Camarines Norte, and Davao. For Nueva Ecija, onion supplies were distributed within the provice and buyers outside the province coming from Metro Manila, Benguet, Cavite, Laguna, La Union, Albay, Misamis Oriental, South Cotabato and Sarangani.

4) Among the supply areas, Ilocos Norte registered the highest marketing cost

at P16.91 per kilogram. It was followed by Pangasinan at P11.12 per kilogram. Nueva Ecija recorded the lowest at P7.62 per kilogram. In the demand areas, Naga City posted the highest marketing cost at P12.90 per kilogram followed by Cagayan de Oro City at P9.54 per kilogram. The lowest marketing cost was incurred in Davao City at P3.30 per kilogram.

5) By marketing participants, the highest net margins was realized by Provincial Assembler-Medium Distributors (PA-MD) in Ilocos Norte at P9.35 per kilogram, followed by Inter-regional Assembler-Medium Distributor (IRA-MD) in Pangasinan at P6.28 per kilogram. Retailers got an average net margins of P5.98 (Pangasinan), P5.21 (Ilocos Norte) an P1.75 (Nueva Ecija).

Tabl

e 16

e. O

NIO

N:

Impu

ted

cost

of m

arke

ting

part

icip

ants

, by

item

, Nue

va E

cija

, 200

6Ta

ble

16e.

ON

ION

: Im

pute

d co

sts

of m

arke

ting

part

icip

ants

, by

item

, Nue

va E

cija

, 200

6


O N I O N

71 viii

IRA-LD MA-SD Agent Retailer


Weighing scale 0.002 0.001 0.003 0.004 Calculator a/ 0.001 a/ 0.001 Cellular phone 0.001 0.001 Electric fan 0.001 Sorting table 0.001 Display rack 0.000 "Papag" 0.001 0.001 Umbrella 0.005 0.005

Transportation FacilitiesTruck 0.060 0.010 Elf 0.020 0.040 Jeep 0.050 Pick-up 0.160 0.060

UNPAID LABORDistribution 0.250 0.290

TOTAL 0.30 0.25 0.05 0.36 a/ less than 0.001


Table 16f. ONION: Imputed costs of marketing participants, by item, Metro Manila, 2006



Weighing scale 0.011 0.002 0.006 Calculator 0.001 0.003 0.017 Cellular phone 0.027 0.014

Transportation FacilitiesElf 0.445 0.645 Forward 0.343 Jeep 0.150 0.147


TOTAL 0.83 0.81 1.73


Table 16g. ONION: Imputed costs of marketing participants, by item, Naga City, 2006


Figure No. Page

25 Percent distribution of Marketing Cost of Onion,by cost component, Cagayan de Oro City, 2006 …………………… 18

26 Percent distribution of Marketing Cost of Onion,by cost component, Davao City, 2006 ……………………………… 19


O N I O N


DEPRECIATIONFacilities & Equipment Weighing scale 0.004 0.012 0.003 Electric fan 0.004 Chair 0.017 Wood stand 0.004 Stroller 0.003 Coleman "Hasag" 0.004 0.015 Facilities Storage/bodega 0.021 0.026 Drying place (papag) 0.018 0.084 0.034 Transportation Facilities Forward 0.094 Kariton 0.050

UNPAID LABOR Procurement 0.627 0.400 0.748 Distribution 0.230 0.410 0.230

TOTAL 1.01 0.98 1.06

Table 16h. ONION: Imputed costs of marketing participants, by item, Legaspi City, 2006


vii 72

Figure No. Page

14 Percent distribution of respondents by mode of buying, selected provinces, Philippines, 2006 ……………………………… 10

15 Percent distribution of respondents by terms of payment in procurement, selected provinces, Philippines, 2006 ……………… 10

16 Percent distribution of respondents by mode of selling, selected provinces, Philippines, 2006 ……………………………… 10

17 Percent distribution of respondents by terms of paymentin distribution, selected provinces, Philippines, 2006 …………… …11

18 Percent distribution of Marketing Cost of Onion,by cost component, Ilocos Norte, 2006 …………………………… 15

19 Percent distribution of Marketing Cost of Onion,by cost component, Pangasinan, 2006 …………………………… …16

20 Percent distribution of Marketing Cost of Onion,by cost component, Nueva Ecija, 2006 …………………………… …16

21 Percent distribution of Marketing Cost of Onion,by cost component, Metro Manila, 2006 ………………………… …16

22 Percent distribution of Marketing Cost of Onion,by cost component, Naga City, 2006 ……………………………… …17

23 Percent distribution of Marketing Cost of Onion,by cost component, Legazpi City, 2006 …………………………… 17

24 Percent distribution of Marketing Cost of Onion,by cost component, Cebu City, 2006 ……………………………… …17



O N I O N

73 vi

IRA-LD Retailer

DEPRECIATIONFacilities & Equipment

Weighing scale 0.001 0.010 Calculator a/ 0.002 Cellular phone 0.002 0.009 Fax machine 0.001 Electric fan 0.018

Transportation FacilitiesTruck 0.011 Tricycle 0.038 Multi-cab 0.009

UNPAID LABORProcurement 0.251 Distribution 1.673



Table 16i. ONION: Imputed costs of marketing participants, by item, Cebu City, 2006

Figure No. Page

1 Percent distribution of respondents by type,selected provinces, Philippines, 2006 ……………………………… 4

2 Percent distribution of farmer respondents by land ownership, selected provinces, Philippines, 2006 ……………………………… 4

3 Percent distribution of traders by type of business ownership, selected provinces, Philippines, 2006 ……………………………… 5

4 Percent distribution of farmer-respondents by source of capital,selected provinces, Philippines, 2006 ……………………………… 5

5 Percent distribution of trader-respondents by source of capital, selected provinces, Philippines, 2006 ……………………………… 5

6 Percent distribution of farmer-respondents by years in farming, selected provinces, Philippines, 2006 ……………………………… 5

7 Percent distribution of trader-respondents by years in trading, selected provinces, Philippines, 2006 ……………………………… 6

8 Geographic Flow of Onion, Ilocos Norte, 2006 ……………………… 6

9 Geographic Flow of Onion, Pangasinan, 2006 ……………………… 7

10 Geographic Flow of Onion, Nueva Ecija, 2006 ……………………… 7

11 Marketing Channels of Onion, Ilocos Norte, 2006 ………………… 8

12 Marketing Channels of Onion, Pangasinan, 2006 ………………… 8

13 Marketing Channels of Onion, Nueva Ecija, 2006 ………………… 9

LIST OF FIGURES


O N I O N

v 74

IRA-LD Retailer


Weighing scale a/ 0.018 Calculator 0.001 0.571 Cellular phone 0.001 0.044 Office table a/Chair 0.002 Electric fan 0.001

Transportation FacilitiesElf 0.147 0.014

UNPAID LABORProcurement 0.152 0.615 Distribution 2.396 2.641



Table 16j. ONION: Imputed costs of marketing participants, by item, Cagayan de Oro City, 2006 TABLE OF CONTENTS (Continued)

Table No. Page

12 ONION: Total marketing costs by major components, selected demand areas, Philippines, 2006 ……………………… 15

13 ONION: Costs of production, selected supply provinces, Philippines, 2006 …………………………………………………… 18

14 ONION: Marketing Costs and Margins of marketingparticipants, Ilocos Norte, 2006 ………………………………… …19

15 ONION: Marketing Costs and Margins of marketingparticipants, Pangasinan, 2006 ………………………………… …19

16 ONION: Marketing Costs and Margins of marketingparticipants, Nueva Ecija, 2006 ………………………………… …19

17a ONION: Percent distribution of farmer-respondents, by problemencountered, selected supply provinces,Philippines, 2006 ………………………………………………… …20

18b ONION: Percent distribution of trader-respondents, by problemencountered, selected demand provinces,Philippines, 2006 ………………………………………………… … 21


O N I O N



Weighing scale 0.010 a/ a/ 0.001 Calculator a/ a/ a/ a/ComputerCellular phone a/Blower 0.001 Sorting table (metal) a/Money detector a/Tray a/

Transportation FacilitiesTruck 0.010 Elf a/Jeep 0.004 Multi-cab 0.020

UNPAID LABORProcurement 0.040 0.020 0.230 0.130

TOTAL 0.06 0.04 0.23 0.13 a/ less than 0.001

Table 16k. ONION: Imputed costs of marketing participants, by item, Davao City, 2006


75 iv

Table No. Page

1 ONION: Labor costs by marketing activity,selected supply provinces, Philippines, 2006 …………………… 11

2 ONION: Labor costs by marketing activity,selected demand areas, Philippines, 2006 ……………………… 12

3 ONION; Transportation costs, selected supply provinces, Philippines, 2006 …………………………………………………… 12

4 ONION: Transportation costs, selected demand areas, Philippines, 2006 …………………………………………………… 13

5 ONION: Materials used, selected supply provinces,Philippines, 2006 …………………………………………………… 13

6 ONION: Materials used, selected demand areas, Philippines, 2006 …………………………………………………… 13

7 ONION: Other operating costs, selected supply provinces,Philippines, 2006 …………………………………………………… 14

8 ONION: Other operating costs, selected demand areas, Philippines, 2006 …………………………………………………… 14

9 ONION: Imputed costs, selected supply provinces, Philippines, 2006 …………………………………………………… 14

10 ONION: Imputed costs, selected demand areas, Philippines, 2006 …………………………………………………… 14

11 ONION: Total marketing costs by major components, selected supply provinces, Philippines, 2006 …………………… 15

TABLE OF CONTENTS


O N I O N

TABLE OF CONTENTS

Page

FOREWORD ………………………………………………………………… i

HIGHLIGHTS ………………………………………………………………… 1a

I. Introduction ………………………………………………………… …2

II. Objectives …………………………………………………………… …2

III. Methodology ………………………………………………………… … 2Research site ………………………………………………………… 2Sample selection ………………………………………………………3

IV. Discussion of Results ……………………………………………… … 3A. Number and Profile of Respondents …………………………… 4

1. Number of Respondents …………………………………… 42. Profile of Respondents……………………………………… 4 a. Land Ownership of Farmers …………………………… 4 b. Type of Business Ownership of Traders ……………… 4 c. Source of Capital ………………………………………… 5 d. Years in Farming/Trading ……………………………… 5

B. Geographical Flow ……………………………………………… 6C. Marketing Channels …………………………………………… 7D. Marketing Practices and Functions…………………………… 9

1. Procurement ……………………………………………… 92. Distribution ………………………………………………… 10

E. Marketing Costs and Margins ………………………………… 111. Marketing Costs ……………………………………………11

2. Marketing Margins ………………………………………… 18F. Marketing Problems Commonly Encountered by the Respondents …………………………………………… 20

V. Definition of Terms …………………………………………………… …22

VI. Annexes ……………………………………………………………… … 26

iii 76


CashLabor 6.46 2.34 3.67 Transportation 2.57 1.01 1.18 Material Inputs 0.64 0.50 0.62 Other Operating 4.15 5.96 1.30

Non-cashImputed Cost 3.09 1.31 0.85

TOTAL 16.91 11.12 7.62

Table 17a. ONION: Total marketing costs by major components, selected supply provinces, 2006


Metro Manila

Naga City

Legaspi City

Cebu City

Cagayan de Oro City

Davao City

CashLabor 1.93 1.57 1.47 3.02 1.98 0.71 Transportation 2.91 5.97 3.89 1.66 2.69 1.43 Material Inputs 0.01 0.13 0.14 0.02 0.31 0.03 Other Operating 1.51 2.60 2.35 1.91 1.28 0.98

Non-cashImputed Cost 0.51 2.63 1.14 2.01 3.30 0.14

TOTAL 6.87 12.90 8.99 8.63 9.54 3.30

peso per kilogram

Table 17b. ONION: Total marketing costs by major components, selected demand areas, 2006

Item


O N I O N

Buying Selling Gross Net ILOCOS NORTE

Farmer 30.00 13.60 16.91 3.31 RA-LD 30.00 35.00 3.71 5.00 1.16 PA-LD 30.00 45.00 2.39 15.00 2.61 PA-MD 30.00 35.00 0.65 5.00 9.35 MA-LD 30.00 35.00 3.92 5.00 1.08 RETAILER 40.00 56.00 8.79 16.00 5.21

PANGASINANFarmer 28.00 2.88 17.75 14.87 IRA-LD 30.00 39.00 7.90 9.00 1.10 IRA-MD 32.00 40.00 1.72 8.00 6.28 PA-MD 33.00 39.00 2.84 6.00 3.16 MA-LD 35.00 40.00 1.22 5.00 3.78 BA-LD 30.00 35.00 1.73 5.00 3.27 AGENT 34.00 35.00 0.02 1.00 0.98 RETAILER 41.00 51.00 4.02 10.00 5.98

NUEVA ECIJAFarmer 25.00 2.37 13.39 11.02 Assembler 26.00 32.00 4.97 6.00 1.03 IRA-LD 26.00 32.00 4.26 6.00 1.74 PA-LD 32.00 37.00 4.44 5.00 0.56 PA-MD 35.00 37.00 1.08 2.00 0.92 BA-MD 37.00 38.00 0.03 1.00 0.97 MA-SD 38.00 44.00 5.32 6.00 0.68 BA-SD 44.00 45.00 0.74 1.00 0.26 Retailer 45.00 50.00 3.25 5.00 1.75

METRO MANILAIRA-LD 48.00 52.00 3.24 4.00 0.76MA-SD 49.00 52.00 2.20 3.00 0.80Agent 49.00 52.00 2.42 3.00 0.58Retailer 52.00 65.00 6.68 13.00 6.32

NAGA CITYIRA-LD 35.00 45.00 7.22 10.00 2.78IRA-MD 35.00 45.00 5.77 10.00 4.21Retailer 46.00 56.00 6.78 10.00 3.22

Table 18. ONION: Average marketing costs and margins by marketing channel, selected supply and demand provinces, Philippines, 2006



77 74


O N I O N

FOREWORD This report presents the result of the study on Marketing Costs Structure Study for Onion. This serves to update the previous study conducted by the Bureau of Agricultural Statistics in 2002. The 2007 study covered the provinces of Ilocos Norte, Pangasinan and Nueva Ecija. It was aimed at providing information on the cost of marketing onion. The results of the study can hopefully address the need for information on the marketing flow of onion in the country, specifically, in the leading supply and demand areas. As this also contains information on marketing functions/services and the corresponding costs incurred by various marketing participants in moving onions from the producers to the consumers, this could serve as guide for farmers and policy makers in increasing the efficiency of the onion marketing system. The BAS continues to find ways of improving the delivery of its statistical outputs. Thus, the readers are encouraged to share their views, comments and suggestions regarding this report. ROMEO S. RECIDE Director

Buying Selling Gross NetLEGASPI CITY

IRA-LD 36.44 44.00 7.36 7.56 0.09IRA-SD 36.00 44.00 6.99 8.00 1.01Retailer 45.00 55.00 4.81 10.00 5.19

CAGAYAN DE ORO CITYIRA-LD 40.00 48.00 7.36 8.00 0.64Retailer 43.00 52.00 8.49 9.00 0.51

CEBU CITYIRA-LD 45.67 54.67 3.54 9.00 5.43Retailer 59.75 73.00 12.68 13.25 0.57

DAVAO CITYIRA-LD 15.00 23.00 2.94 8.00 5.06BA-MD 19.00 25.00 0.86 6.00 5.11BA-SD 20.00 27.00 4.98 7.00 2.02Retailer 30.00 35.00 2.61 5.00 2.39

Table 18. (Continued)



i 78


O N I O N

TERMS OF USE Marketing Costs Structure: Onion is a publication of the Bureau of Agricultural Statistics (BAS), Department of Agriculture. The BAS reserves exclusive right to reproduce this publication in whatever form. Should any portion of this publication be included in a report/article, the title of the publication and the BAS should be cited as the source of the data. The BAS will not be responsible for any information derived from the processing of data contained in this publication.

ISSN-2012-0389

Please direct technical inquiries to the Office of the Director Bureau of Agricultural Statistics

Ben-Lor Building, 1184 Quezon Avenue Quezon City 1100 Philippines.

Email: [email protected] Website: www.bas.gov.ph

PROBLEM ILOCOS NORTE PANGASINAN NUEVA ECIJA

Low price received due to 2 1 14 imported onion Low price received during 2 5 harvest time Difficulty in selling directly 2 to Manila (Divisoria) Shrinkage of the commodity 1 1 1 Weak demand when buyer 1 1 1 have voluminous stocks in their bodegas Stealing 1 1 Price fluctuation 2 1 2 Bad debts 1 1 1 No problem 10 7 1

TOTAL 20 20 20

Table 18a. ONION: Distribution of farmer-respondents, by problems encountered, selected supply provinces, Philippines, 2006

79 74


O N I O N


ISSN-2012-0389

NOVEMBER 2007

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O N I O N

Department of Agriculture BUREAU OF AGRICULTURAL STATISTICS 1184 Ben-Lor Bldg., Quezon Avenue, Quezon City

Tel. No.: +63(2) 372-3820 Fax. No.: +63(2) 371-2048

[email protected] URL: http://bas.gov.ph


ISSN-2012-0389

NOVEMBER 2007

Tel. No.: +63(2) 372-3820 Department of Agriculture URL ... · TRUCTURE MARKETING COSTS S : O N I O...

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