Analysing price spreads and net margins of smallholder vegetable farmers in the southern Philippines

Aguinaldo, Roxanne T.; Sarmiento, Jon Marx P.; Digal, Larry N.; Balgos, Carol Q.; Hall, D.O.

doi:10.17660/actahortic.2016.1128.41

Cited by 2 publications

(4 citation statements)

References 5 publications

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“…Assuming that farmgate and retail prices rise by the same amount, as is almost uniformly believed, marketing costs rise by the same percentage as well (Dawe & Maltsoglou, 2014). Even with high production costs for agricultural goods, it still results in higher margins (Aguinaldo et al, 2016). Gollin and Rogerson (2014) stated that food becomes more expensive in urban areas than in rural areas when transport costs increase, which means marketing margin increases.…”

Section: Logistics Cost To Marketing Marginmentioning

confidence: 96%

“…Also, due to the intervening factor of middlemen, the farmers receive a lower proportion from the marketing margin due to the longer distribution channel (Abebe et al, 2015). Despite the increase in farm and retail price spread, farmers can still increase the profit and wage they receive if some production techniques are applied, such as the right mix of inputs and reducing outputs (Aguinaldo et al, 2016). Mandizvidza (2017) emphasized that farmers receive less from their share in the transaction with the presence of a high marketing margin.…”

Section: Farmers' Wages To Marketing Marginmentioning

confidence: 99%

“…Yuzhou (2020) stated that an increase in agricultural prices also raises the wage of farm employees as a whole. Aguinaldo et al (2016) emphasized that despite increasing farm and retail price spread or marketing margin per se, farmers are still able to collect higher wages and profit. Moreover, even with the added costs in transacting with middlemen, access to market information increases the amount that farmers receive (Mitchell, 2011).…”

Section: Farmers' Wages To Marketing Marginmentioning

confidence: 99%

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The Impact of Logistics on Marketing Margin in the Philippine Agricultural Sector

Quintana

Chong

Cordova

et al. 2022

JEFAS

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The logistics industry is a fundamental aspect of fulfilling the supply chain in agriculture. Agricultural farmers in the Philippines often use the services of middlemen to transact on their behalf since these intermediaries possess better information, and engaging in logistics affects the marketing margin in the process. Frequently, logistics costs cause marketing margin to increase, leading to high farm-retail prices of agricultural goods. This paper examines if the existence of middlemen improves farmers' wages even with the additional logistics costs incurred. The variables' secondary data were all gathered from the Philippine Statistics Authority, and its annual frequency spanned the period of 1995 to 2019. Using Ordinary Least Squares (OLS) regression analysis procedure and diagnostic tests prove that logistics cost negatively affects marketing margin while farmers' wages have a positive relationship. The findings of this study address the presence of a longer supply chain, asymmetric information, technology, storage and facilities, and added logistics costs in agricultural transactions. Although middlemen have greater market power than the farmers, these mediators are still affected by the changes in the logistics costs since it is unavoidable for them to reduce the price due to the need to competitively sell the commodities.

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Section: Logistics Cost To Marketing Marginmentioning

confidence: 96%

Section: Farmers' Wages To Marketing Marginmentioning

confidence: 99%

Section: Farmers' Wages To Marketing Marginmentioning

confidence: 99%

See 1 more Smart Citation

The Impact of Logistics on Marketing Margin in the Philippine Agricultural Sector

Quintana

Chong

Cordova

et al. 2022

JEFAS

View full text Add to dashboard Cite

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“…To increase the farmer's production, several interventions have been introduced. Among these are production-related training and quality grading (Aguinaldo et al, 2016). In addition, the improvement of market facility may also favor meager farmers (Shilpi & Umali-Deininger, 2008).…”

Section: Introductionmentioning

confidence: 99%

Development of an Online Laguna Agricultural Trading Center

Jain

Carandang

2018

IJCSR

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Purpose-The purpose of the study is to develop a system that can be used as an alternative channel to improve the marketability of farm products of framers in Laguna. Method-The proponent used two research methodologies. First is the software development which utilized the Agile Software Development. Second is the descriptive research which involved the determination of the acceptability of the software's usability both by the farmers and the consumers. In this phase a combination of qualitative and quantitative methods was used. Results-The proponent developed the Online Laguna Agricultural Trading Center. The system is an e-commerce website that will serve as an alternative channel of marketing the farmers' products. It will also provide the farmer an easy and economical way of managing some of its business process. Through its Short Message Service capability, the farmer can handle customer inquiries and update inventory of products and prices economically and easily. Based on evaluation, the farmers agreed, "it is easy to find information I needed", while the buyer agreed that "the system is simple to use". 132 Conclusion-Based on the findings, the proponent concluded that the developed system can be used as a channel to improve the marketability of farm products of farmers of Laguna. Recommendation-Future researchers may look into the development of its own short messaging services that will not rely on third-party gateways. This will make its implementation less costly on the part of the Administrator. Adding of optional online payment transaction is also encouraged so that big farms who can afford to tie-up with payment centers may be able to do so. Implications-E-commerce is not a new technology. However, there are no systems that directly resolved the problems of farmers. This paper reveals the real problems of farmers in the Philippines including their willingness to embrace technology that will improve their ability to gain income from their produce.

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Analysing price spreads and net margins of smallholder vegetable farmers in the southern Philippines

Cited by 2 publications

References 5 publications

The Impact of Logistics on Marketing Margin in the Philippine Agricultural Sector

The Impact of Logistics on Marketing Margin in the Philippine Agricultural Sector

Development of an Online Laguna Agricultural Trading Center

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