Profitability and efficiency analyses of organic temperate vegetable production in the Philippines
Paper Details
Profitability and efficiency analyses of organic temperate vegetable production in the Philippines
Abstract
This research analyzed the profitability and efficiency of organic temperate vegetable production through the supply chain approach. Survey, key informant interviews, participant observation and archival research were used to gather data. Thirty eight (38) producers and 11 traders in the Cordillera Administrative Region (CAR), Region III and Region IVA served as respondents. Descriptive statistics, cost and return analysis and efficiency analysis were used to analyze research results. The emergence of new breeds of players makes the marketing channel of organic vegetables in the CAR complex compared to a simpler, more modern and integrated chain in the regions outside of the CAR. The six key players in the marketing of organic vegetables are the cooperative, assembler-wholesaler-retailer, assembler-wholesaler, assembler- retailer, retailer and institutional buyers. Returns to total expenses were highest for native cucumber, cauliflower, Japanese spinach, broccoli and lettuce ranging from 100 percent to 235 percent. Native cucumber, cauliflower, Japanese spinach, broccoli, French beans, and lettuce give higher profits to farmers ranging from 49.00 pesos to 71.00 pesos per kilogram. The production of cabbage, native cucumber, cauliflower, Japanese spinach, broccoli, French beans, and lettuce requires low capital, labor and land use intensity indicating high efficiency. Value chain and marketing margin analyses show cost and margin differentials across players and across geographic locations indicating variations in the distribution of benefits among key actors. With the premium price that organic products command and the low capitalization, land and labor utilization needed, organic temperate vegetable production is profitable and efficient which determine its sustainability in the long run.
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