Transcript Value Chain Analysis of Calamansi (citrus madurencis)

Value Chain Analysis
of Calamansi
(citrus madurencis)
PhilDHRRA – LSFM Project
June 8, 2008
Hanoi, Vietnam
Outline
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Background of the Study
Calamansi in Philippine context
Production, Costs and Returns
Trading and Marketing
Prices
The simple Value Chain Framework
Next Steps
Background of the Study
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Part of the research component of the
LSFM project
Describe the market chain and chain
actors involved
Understand the dynamics in the
calamansi market
Limited to Phase 1 of the VCA only
Calamansi in Philippine Context
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2.
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One of the major fruit crops and is excellent
source of Vitamin C
Sold as fresh product to markets and
commercial buyers
Processed into syrups, juices, concentrates,
powder and purees, and has many medicinal
uses
Has contributed to agricultural export market,
but not a major export crop
Major source is Central Philippines and some
portions of Mindanao
Production, Costs and Returns
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Calamansi production was decreasing (2000-2004)
but reversed this trend in 2005 onwards
Yields averaged 9 tons per hectare in the last 7 years
(2000-2006)
Major source is in Oriental Mindoro province (60%),
but they can only harvest 4-6 months in a year
Southern Philippines (Mindanao) contribute only 15%
of total production, but they can harvest year-round
Average farm size is ¼ hectare, although 20% of
calamansi farmers cultivate more than 1 hectare of
land
Production, Costs and Returns
Two ways of looking at costs:
1.
Cash – Non-Cash and Imputed COSTS
2.
VARIABLE and FIXED COSTS
Production, Costs and Returns
Cash Cost Approach in Calamansi (Php) - 1997
Item
Cost / ha
Cost / kg
% to total cost
17,616
2.66
67.4%
Non-cash costs
599
0.10
Imputed costs
7,910
1.19
30.3%
Total costs
26,125
3.95
100.0%
Cash costs
2.3%
Production, Costs and Returns
Production Costs (Case study in Zamboanga Sibugay, 2005)
Item
Crate
Picking
Pruning
Cost/ha Cost/kg % to total cost
5,886
0.78
23.5%
8,066
1.07
32.3%
3,500
0.47
14.0%
Fertilizing
4,800
0.64
19.2%
Others
2,750
0.37
11.0%
Total cost
25,002
3.32
100.0%
Production, Costs and Returns
Costs (/ha)
Php 26,000 (US $ 604)
Production (/ha)
9 tons/hectare (average)
Farmgate Price
Php 116,700/ton
(US$ 2,714/ton)
Revenue
Php 90,000/ton
(US$ 2,090/ton)
Trading and Marketing
Disposition of the Product:
97.5%
1.2%
1.3%
Sold
Wastage/Shrinkage
Payments
(Rents/loans/shares)
Trading and Marketing
Calamansi Simple Chain Actors
Farmer
Assembler /
Distributor
Retailer
Consumer
Trading and Marketing
What we know:
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The major trading hub is Metro Manila
All producers supply outside of their province
Direct marketing of fresh calamansi can be
profitable for farmers
Engaging in processed calamansi is more
profitable
Entering the industrial use market will be more
exciting
Prices (Php)
Price
2000
2001
2002
2003
2004
2005
Ave.
Farmgate
11.02
8.06
14.93 11.09 11.67 13.23 11.67
Wholesale
21.31 19.66 20.37 19.49 18.41 20.14 19.90
Retail
30.50 28.43 29.32 29.28 28.08 30.87 29.41
Simple Value Chain
Ave. production
cost: PhP3.95/kg
Farmer
Ave. marketing
cost: PhP4.56/kg
Assembler/
Distributor
Ave. farmgate price:
PhP11.67/kg
Retailer
Ave. wholesale
price:
PhP19.90/kg
Consumer
Ave. retail price:
PhP29.41/kg
Trading and Marketing
What we have to find out (Phase 2):
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3.
Who are the players in the industrial
market use?
How much is the market segmentation?
What are the price differentiation in each
industrial market segment?
Next Steps
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2.
Do Primary Data-Gathering in 2 provinces
Complete the data-gaps in the VCA
a)
b)
c)
3.
Industrial market
Product inventory
Capacity-assessment of calamansi farmers
Initiate capacity-building activities
THANK YOU!
Value Chain Analysis
of Calamansi
(citrus madurencis)
PhilDHRRA – LSFM Project
June 8, 2008
Hanoi, Vietnam