ROMEO S. RECIDE Director COSTS... · 2016-06-22 · Distribution of Respondents 3 Types of Marketing Participants 4 Profile of Respondents 6 ... Complain of bad odor 2 1 14. No assured

FOREWORD

This report presents the results of a study on the Marketing Costs Structure for Swine which was conducted in the second semester of 2002. Its objective was to provide information on the charges borne by each participant in swine marketing in the provinces of Pangasinan, Nueva Ecija, Batangas, Iloilo, Cebu and Davao del Sur.

The results of the study would serve as inputs in policy formulation and

as guide in decision making of the various marketing participants. The BAS continues to find ways of improving the delivery of its statistical

outputs. Hence, the readers are encouraged to share their views, comments and suggestions regarding this report.

ROMEO S. RECIDE Director

i Marketing Costs Structure for Swine

ii Marketing Costs Structure for Swine

TABLE OF CONTENTS FOREWORD

i I. Introduction

1 The Commodity and Its Economic Importance

1

Objectives

1 Scope and Limitation

2 II. Methodology

2 Research Coverage

3 Selection of Sample Respondents

3

III. Discussion of Results

3 Distribution of Respondents

3 Types of Marketing Participants

4 Profile of Respondents

6 Type of Farm

6

Respondents' Classification

6 Nature of Capitalization

7 Business Ownership

7

Length of experience

8 Percentage Share to Total Business

8 Marketing Practices and Functions

9 Procurement

9

Distribution

10 Geographic Flow

12 Marketing Channels

21 Marketing Costs

30 Labor

30

Transportation

31 Material Inputs

32 Miscellaneous and Other Operating Costs

33 Imputed Costs

35 Total Marketing Costs

37

Marketing Costs by Point of Destination

38

Marketing Costs and Margins by Channel

45 IV. Problems Encountered

60

Appendices 61

117 Marketing Costs Structure for Swine

STATISTICAL TABLES

1. SWINE : Distribution of respondents, by type and by province, 2002

3

2. SWINE : Distribution of respondents, by type of marketing participants, by province, Philippines, 2002

5

3. SWINE : Distribution of raiser-respondents by type of farm, by province, 2002

6

4. SWINE : Distribution of raiser-respondents by classification, by province, 2002

6

5. SWINE : Distribution of respondents by nature of capitalization, by province, 2002

7

6. SWINE : Distribution of respondents by type of business ownership, by province, 2002

7

7. SWINE : Distribution of respondents, by length of experience, by province, 2002

8

8. SWINE : Distribution of trader respondents, by percentage share to total business, by province, 2002

9

9. SWINE : Distribution of respondents, by manner of procurement, by province, 2002

9

10. SWINE : Distribution of respondents, by mode of payment in buying stocks, by province, 2002

10

11. SWINE : Distribution of respondents, by manner of distribution, by province, 2002

11

12. SWINE : Distribution of respondents, by terms of payment, by province, 2002

11

13a. SWINE : Labor costs by marketing activity/ practice, by province, 2002

30

13b. SWINE : Labor costs by marketing activity/ practice, by province, 2002

31

14a. SWINE : Transportation costs by marketing activity/ practice, by province, 2002

31

14b. SWINE : Transportation costs by marketing activity/ practice, by province, 2002

32

15a. SWINE : Cost of material inputs by marketing activity/ practice, by province, 2002

33

15b. SWINE : Cost of material inputs by marketing activity/ practice, by province, 2002

33

iii Marketing Costs Structure for Swine

1. Credit and delayed 1 2 2 1 2 payment. 2 32. Lack of capital. 23. High cost of mayor's 1 permit.4. Few buyers. 2 4 1 1 55. High cost of rental 2 5 1 fee6. Non payment of 3 2 2 1 5 2 debt/loan 2 3 3 27. Low demand. 7 2 1 18. Low prices offered 1 1 8 5 5 by buyers.9. Price f luctuation 1 2 3 110. Unavailability of 3 1 supply. 211. Animal bought are 3 not w eighted (estimate) 112. Illegal vending of pork 2 in Talipapa13. Complain of bad odor 2 1 by neighbor.14. No assured buyers.15. High production cost 216. No problems 5 24 21 2 517. Poor quality of meat 1 118. High mortality rate during 3 transport19 Afraid of FMD 2 1 2 2 2

TOTAL 18 26 32 43 17 32 19

PANGASINAN

Appendix 22. SWINE: Distribution of respondents, by problems encountered by province, Philippines, 2002

NUEVA ECIJA ILOILO

METRO MANILA BATANGASPROBLEMS DAVAOCEBU

STATISTICAL TABLES

16a. SWINE : Other operating costs incurred by respondents, by cost item, by province, 2002

34

16b. SWINE : Other operating costs incurred by respondents, by cost item, by province, 2002

35

17a. SWINE : Imputed cost of depreciation/labor incurred by respondents, by cost item, by province, 2002

36

17b. SWINE : Imputed cost of depreciation/labor incurred by respondents, by cost item, by province, 2002

36

18a. SWINE : Total marketing costs, by province, 2002

37

18b. SWINE : Total marketing costs, by province, 2002

38

19. SWINE : Marketing costs for swine, by point of destination, 2002

49

20. SWINE : Marketing Costs and Marketing Channel, by province, 2002

50

iv Marketing Costs Structure for Swine


Peso per kilogram Peso per head(liveweight) of 80 kgs

Supplier Outside the Province (SOP):

Selling price at farmgate 61.00 4880.00

Interregional Livestock Assembler - Small Livestock Distributor (IRLA-SLD):

Selling price 75.00 6000.00Total marketing costs 0.09 7.20Margin = (75.00 – 61.00 – 0.09) 13.91 1112.80

Retailers:

Selling price 110.00 6160*Total marketing costs 2.74 219.20Value of by-products (14.33% x P75)** 10.75 860.00Net costs of by-products (10.75 - 2.74) 8.01 640.80Margin = [77.00 + 8.01 – 75.00] 10.01 800.80

* Recovery rate = 70%** Offals only at average price of P75/kg

Appendix 21i. Marketing Costs and Margins for Swine in Metro Manila, 2002




Interregional Livestock Assembler - Butcher- Large M eat Distributor (IRLA-B-LM D):

Selling price 83.00 4648.00*Total marketing costs 4.34 347.20Value of by-products (14.33% x P75)** 10.75 860.00Net costs of by-products (10.75 - 4.34) 6.41 512.80Margin = [58.10 + 6.41 - 55.00] 9.51 760.80

Retailers:



Appendix 21j. Marketing Costs and Margins for Swine in Metro Manila, 2002


LIST OF FIGURES

Figure no. Page no.

1. Tracing Approach 2

2. Geographic Flow of Swine in Pangasinan, 2002 14

3. Geographic Flow of Swine in Nueva Ecija, 2002 15

4. Geographic Flow of Swine in Batangas, 2002 16

5. Geographic Flow of Swine in Iloilo, 2002 17

6. Geographic Flow of Swine in Cebu, 2002 18

7. Geographic Flow of Swine in Davao, 2002 19

8. Geographic Flow of Swine in Metro Manila, 2002 20

9. Marketing Channels for Swine in Pangasinan, 2002 23

10. Marketing Channels for Swine in Nueva Ecija, 2002 24

11. Marketing Channels for Swine in Batangas, 2002 25

12. Marketing Channels for Swine in Iloilo, 2002 26

13. Marketing Channels for Swine in Cebu, 2002 27

14. Marketing Channels for Swine in Davao, 2002 28

15. Marketing Channels for Swine in Metro Manila, 2002 29

16. Average Marketing Costs for Swine, by destination in Pangasinan, 2002

39

17. Average Marketing Costs for Swine, by destination in Nueva Ecija, 2002

40

18. Average Marketing Costs for Swine, by destination in Batangas, 2002

41

19. Average Marketing Costs for Swine, by destination in Iloilo, 2002

42

20. Average Marketing Costs for Swine, by destination in Cebu, 2002

43

21. Average Marketing Costs for Swine, by destination in Davao, 2002

44

22. Marketing Costs and Margins for Hogs, by Channel, Pangasinan, 2002

51

v Marketing Costs Structure for Swine


Raisers:


Provincial Livestock Assembler-Small Livestock Distributor (PLA-SLD):


Retailers:

Selling price 95.00 13300.00*Value of by-products (14.33% x P75) 10.75 860.00Total marketing costs 2.21 442.00Net costs of by-products (10.75 - 2.21) 8.54 1708.00Margin = [66.50 + 8.54 – 35.00] 40.04 8008.00


Appendix 21g. Marketing Costs and Margins for Swine in Davao, 2002


Raisers:


Interregional Livestock Assembler- Large Livestock Distributor (IRLA-LLD):


Butcher- Small M eat Distributor (B-SM D):

Selling price 69.00 3864.00*Value of by-products (14.33% x P75)** 10.75 860.00Total marketing costs 1.32 105.60Net costs of by-products (10.75 - 1.32) 9.43 754.40Margin = [48.30 + 9.43 – 56.00] 1.73 138.40

Retailers:

Selling price 95.00 5320.00Total marketing costs 2.11 118.16Margin = [95.00 - 2.11 – 69.00] 23.89 1337.84


Appendix 21h. Marketing Costs and Margins for Swine in Davao, 2002

LIST OF FIGURES

Figure no. Page no.

23. Marketing Costs and Margins for Hogs, by Channel, Nueva Ecija, 2002

52

24. Marketing Costs and Margins for Hogs, by Channel, Batangas, 2002

53

25. Marketing Costs and Margins for Hogs, by Channel, Iloilo, 2002

54

26. Marketing Costs and Margins for Commercial Hog Farm, Iloilo, 2002

55

27. Marketing Costs and Margins by Channel for Swine, Cebu, 2002

56

28. Marketing Costs and Margins by Channel for Swine, Davao, 2002

57


58

30. Marketing Costs and Margins by Channel for Swine, Metro Manila, 2002

59

vi Marketing Costs Structure for Swine



Raisers:

Selling price at farmgate 56.00 4480.00Total marketing costs 0.59 47.20

Interregional Livestock Assembler-Small Livestock Distributor (IRLA-SLD):


Stockyard/Slaughterhouse:

Selling price 83.00 6640.00Total marketing costs 0.00 -Margin = (83.00 – 65.00) 18.00 1440.00

Retailers:

Selling price 110.00 6160.00*Value of by-products (14.33% x P75)** 10.75 860.00Total marketing costs 2.09 167.20Net costs of by-products (10.75 – 2.09) 8.66 692.80Margin = [77.00 + 8.66 - 83.00] 2.66 212.80


Appendix 21f. Marketing Costs and Margins for Swine in Cebu, 2002


Raisers:


Interregional Livestock Assembler-Butcher-Large M eat Distributor (IRLA-B-LM D):

Selling price 88.00 4928.00*Value of by-products (14.33% x P75)** 10.75 860.00Total marketing costs 5.42 433.60Net costs of by-products (10.75 - 5.42) 5.33 426.40Margin = (61.60 - 66.00 +5.33) 0.93 74.40

Retailers:



Appendix 21e. Marketing Costs and Margins for Swine in Iloilo, 2002

MARKETING COSTS STRUCTURE FOR SWINE

I. Introduction

Statistical information on production and marketing costs of agricultural commodities are important inputs to policy makers particularly in the determination of the type of assistance to be provided to the small and marginal farmers. In the past, data collection efforts have been focused on production costs. In more recent years, increasing attention has been given to marketing costs and margins in response to the growing demand for these information.

For the past two years, the Bureau of Agricultural Statistics (BAS) has conducted marketing studies for selected high value commercial crops with support from the High Value Commercial Crops (HVCC) Program of the Department of Agriculture. These studies were extended to the livestock and poultry products to address the information needs in the sub-sector.

In particular, the BAS conducted a study which identifies and measures the various marketing costs in major producing provinces and trading centers for swine and goat with funding support from the GMA-Livestock Program of the DA. The results of the study are intended for policy makers, analysts, consumers as well as investors in the livestock industry.

The Commodity and Its Economic Importance Swine, otherwise known as hog, is one of the domesticated members of the species Sus scofa of the Suidae family. It is a stout-bodied, short-legged omnivorous animals with a thick bristly skin and long flexible snout. The male is specifically called boar, the female, sow, and the young, pig (www.hyperdictionary.com). Swine are valuable for their flesh which can be prepared as bacon, ham and pork and for the fat or lard. They also provide many products like leather for gloves, footballs, and other articles, and for bristles for brushes. Hogs are commonly grouped as meat-type or lard-type. Objectives

The main objectives of the study are:

a) To determine the marketing costs structure by type of marketing participants inmajor swine producing areas and trading centers;




Raisers:


Interregional Livestock Assembler - Large Livestock Distributor (IRLA-LLD):

Selling price 60.00 4800.00Total marketing costs 7.21 576.80Margin = 60.00 – 51.00 – 7.21 1.79 143.20

Retailer:



Appendix 21a. Marketing Costs and Margins for Swine in Pangasinan, 2002


Raisers:


Provincial Livestock Assembler - Butcher-Large M eat Distributor (PLA-B-LM D):

Selling price 95.00 5320.00Value of by-products (14.33% x P75)** 10.75 860.00Total marketing costs 8.80 704.00Net costs of by-products (10.75 - 8.80) 1.95 156.00Margin = 66.50 + 1.95 – 65.00 3.45 276.00

Retailer:

Selling price 105.00 5880.00*Total marketing costs 9.36 524.16Margin = [105.00 – 95.00 - 9.36] 0.64 35.84


Appendix 21b. Marketing Costs and Margins for Swine in Nueva Ecija, 2002


b) To compare marketing costs structures across trading centers and trading seasons;

and

c) To establish benchmark data on the average costs of the various marketingcomponents.

Scope and Limitations The study traced the flow and the marketing channels for swine starting from the production points to the consumption areas. At the demand sites, the study concentrated only on the costs incurred in marketing the animals coming from the identified supply provinces, and none from those produced in the other supply provinces which contributed significant quantity in the demand province.

II. Methodology

The study employed the tracing approach starting from the supply level (production)

to the demand (consumption) level (Figure 1).


Supply Area 1

Supply Area 3

TradingCenter

SupplyArea 2

DemandAreas

Figure 1. Tracing Approach

peso per kg. (meat)

Material UsedSlicing tools a/ 0.01Ice bucket 0.001

EquipmentWeighing Scale 0.01Meat Grinder 0.02

Labor 0.54

TOTAL 0.58

a/ includes knife, bolo, hasaan

Appendix 20f. SWINE (Slaughtered): Imputed cost of depreciation by marketing participants, by materials/facilities

and equipment used, Cebu, 2002

ITEM RETAILER

IRLA-LLD- BLA-B B-SMD MR

EQUIPMENT Cellular phone 0.001 0.030 Weighing scale 0.040 0.020 Hook 0.001 a/ Calculator 0.020 0.010 Aluminum tray 0.004 Cash box 0.020 Meat grinder 0.020 0.020 MATERIALS Knife 0.003 Plywood 0.005 Hasaan (steel) a/ Pail 0.002

TOTAL 0.001 0.11 0.08

B-MR

Appendix 20g. SWINE (Slaughtered): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities/equipment used, Davao,

2002

peso per kilogram (meat) ITEM

Research Coverage

The study covered key supply and demand areas in Luzon, Visayas and Mindanao. These were represented by the provinces of Pangasinan, Nueva Ecija, Batangas, Iloilo, Cebu and Davao del Sur. Metro Manila and Davao City were considered as demand areas.

The tracing approach started from the producing barangays of the identified

municipalities by province. The top two (2) producing barangays were chosen to represent each municipality.

From the farm level, the traders were traced based on the identification of raiser-

respondents. Most of the traders are located in the Livestock “Oksyon” Markets (LOMs). The study then moved to the next point of sale consisting of the retail markets within the province.

Selection of Sample Respondents

At the farm level, the barangay chairman and other officers served as key

informants in locating raiser-respondents. The City Veterinarian also served as key informant on swine marketing practices in the province. Only swine raisers and traders who were engaged in the business from July 2001 to June 2002 were interviewed.


The study dealt primarily with the costs incurred by marketing participants in

moving the animals from the supply level to the consumption level. The first part focuses on the distribution, profile and the marketing functions and practices of the respondents. Part II presents the marketing costs components.

Distribution of Respondents. There were two groups of respondents for the

study: raisers/operators and traders. A total of 146 swine raisers was interviewed from the producing barangays/municipalities. At the trading center level, a total of 134 respondents was interviewed (Table 1).



Farm er/Raiser Trader

M etro M anila - 38 38 Pangasinan 30 11 41 Nueva Ecija 29 15 44 Batangas 30 19 49 Ilo ilo 24 12 36 Cebu 20 23 43 Davao del Sur 12 9 21 Davao C ity 1 7 8

TO TAL 146 134 280

NUM BER O F RESPO NDENTS

Table 1. SW INE: D istribution of respondents, by typeand by province, 2002

PRO VINCE TO TAL

Material Used Knife 0.002 0.01Chopping board 0.001 0.002Hook 0.001"Hasaan" (steel) 0.001 0.001

Equipment Weighing Scale 0.02 0.02Electric fan 0.002 0.01Chair 0.001Calculator 0.002Freezer 0.01Meat Grinder 0.002Cash box (stainless) 0.001

Labor 0.34 0.96

TOTAL 0.37 1.02

ITEM RETAILER

peso per kilogram (meat)

Appendix 20d. SWINE (Slaughtered): Imputed cost of depreciation/labor by marketingparticipants, by materials/facilities and equipment used, Batangas, 2002

MLA-B-SMD

Materials Butcher's knife/knives 0.006

Equipment Cellphone 0.009 Calculator a/ Weighing scale a/ 0.008 Telephone 0.005 Grinder 0.001 Table 0.026 Sharpener 0.008

Transportation Truck 0.068 Tricycle/sidecar 0.101 Jeep a/

TOTAL 0.068 0.115 0.049

RLA-B-SMD


Appendix 20e. SWINE (Slaughtered): Imputed costs of labor and depreciation incurred by marketing participants, by item, Iloilo, 2002

ITEM PLA-B-SMD RETAILER


Types of traders. Trader-respondents were classified based on their sphere of

influence in performing their procurement and distribution activities. This study has identified six types of traders: livestock assemblers; livestock distributors; livestock assembler-livestock distributors; livestock assembler-butcher-meat distributors; agent and retailers. These types of traders were defined as follows:

1. Livestock Assembler – procures live animals from raisers or LOMs

a) Barangay Livestock Assembler (BLA) – procures from one barangay or

one LOM or pooling place b) Municipal Livestock Assembler (MLA) - procures from 2 or more

barangays or LOM or pooling place c) Provincial Livestock Assembler (PLA) – procures from 2 or more LOMs or

2 or more municipalities within the province d) Regional Livestock Assembler (RLA) – procures from 2 or more provinces

within the region e) Interregional Livestock Assembler (IRLA) – procures from provinces

outside the region

2. Livestock Distributor – sells live animals

a) Small Livestock Distributor (SLD) – sells in the same or another LOM,pooling place or municipality

b) Medium Livestock Distributor (MLD) – sells in 2 or more LOMs, pooling

places or municipalities c) Large Livestock Distributor (LLD) – sells to areas outside the province but

may sell also within the province

3. Livestock Assembler-Livestock Distributor – procures and sells live animals.Several combinations were identified in the study:

a) BLA-SLD; MLA-SLD; PLA-SLD; RLA-SLD; IRLA-SLD b) BLA-MLD;MLA-MLD; PLA-MLD; RLA-MLD; IRLA-MLD c) BLA-LLD; MLA-LLD; PLA-LLD; RLA-LLD; IRLA-LLD

4. Butcher-Meat Distributor (B-MD) - procures live animals; may slaughter animal

himself or through an abattoir; sells meat to retailers.

5. Supplier from Outside the Province (SOP) – trader or raiser based in areas outside the province who may deliver live animals to the province or sell to buyers who approach them.

6. Buyer from Outside the Province (BOP) – buys live animals from supply areas

within the province or from traders who ship to other provinces.


ITEM RAISER/ OPERATOR PLA-B-SMD MLA-B-SMD

MaterialsBolo 0.01 0.004 Knife 0.01 0.002 Meat hanger 0.001

Equipment Weighing scale a/ 0.08 0.01 Grinding machine 0.07 0.03 Freezer 0.08 0.01 Electric/exhaust fan 0.003 Chairs 0.05 Tables a/ Labor 0.87 0.49

TOTAL 0.07 1.10 0.54 a/ include all kind of weighing scale


Appendix 20b. SWINE ( Slaughtered): Imputed costs of labor and depreciation incurred bymarketing participants, by material/facilities/equipment used, Pangasinan, 2002

ITEM RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD MLA-B-SMD RETAILER

MaterialsKnife 0.001 0.001 0.002 0.004 0.008 0.006 Meat hanger a/ Chopping board 0.002 0.001 0.003 0.004 0.007 0.003 Tray 0.002 Pail 0.001 0.002 0.001 0.001

Equipment Weighing scale a/ 0.001 0.015 0.012 0.010 Calculator 0.001 a/ 0.001 Freezer 0.022 0.063 Chairs 0.001 0.001 0.813 0.001 Electric fan 0.003 Transportation Trailer 0.171 Jeep 0.035 0.020 Labor 0.410 0.230 1.000 2.510

TOTAL 0.062 0.413 0.271 1.023 1.000 2.600 a/ less than 0.001


Appendix 20c. SWINE (Slaughtered): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities/equipment used, Nueva Ecija, 2002

7. Agent

a) Procurement Agent – procures live animals on behalf of a trader from raisers and traders in supply areas, LOMs or pooling places; may be paid on salary, commission or sharing basis.

b) Sales or Commission Agent - collects live animals entrusted to him by a

raiser and sells these animals with the agreement that for the service he provides he receives as payment the difference between the price at which he is able to sell the animals and the price agreed with the raiser; also includes representatives of shippers who are either paid in commission basis or in fixed salary and who are tasked with procuring animals for shipment to various destinations.

8. Institutional Buyer – includes restaurants, eateries, canteens, hospitals, etc.

9. Meat Retailer – sells meat to consumers or institutional buyers.

Table 2 shows the number of respondents by type of marketing participants. Thirty-two (32) of the trader-respondents were buyers and sellers of live

animals (livestock assembler- distributors); 36 were livestock assemblers-butchers-meat distributors who either operated on a small, medium or large scale; 6 were agents and 60 were retailers.



ITEM IRLA-B-LMD IRLA-B-SMD RETAILER

Materials Hooks 0.001 a/ 0.005

Chopping board 0.002 0.010 0.004

Knife 0.003 0.003 0.013

Steel 0.004 a/ 0.009

Bolo 0.001 0.011 0.008

Ice box 0.005 0.006

Table 0.003

Chair a/

Equipment Weighing scale 0.015 0.010 0.032

Grinding machine 0.029 0.022

Calculator a/ 0.001 0.004

Freezer 0.025 0.010

Electric/exhaust fan 0.002 0.001 0.005

Refrigerator 0.028

Facilities Stall 1.436

Transportation Truck 0.074 0.120 0.214

Labor 0.415 1.932

TOTAL 0.102 2.097 2.264


Appendix 20a. SWINE (Live): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities/equipment used, Metro Manila, 2002

Metro Manila 1 10 27 38 14Pangasinan 30 5 6 41 15Nueva Ecija 29 2 8 3 2 44 16Batangas 30 5 2 12 49 18Iloilo 24 4 3 1 4 36 13Cebu 20 5 5 13 43 15Davao del Sur 12 6 1 2 21 8Davao City 1 4 1 2 8 3

TOTAL 146 32 36 6 60 280 100

Table 2. SWINE: Distribution of respondents, by type of marketing participants, by province, 2002

AGENT RETAILER TOTAL PERCENTPROVINCERAISER/

OPERATOR

LIVESTOCK ASSEMBLER-DISTRIBUTOR

LIVESTOCK ASSEMBLER-

BUTCHER-MEAT DISTRIBUTOR


Profile of Respondents

The study determined the basic characteristics of the respondents which included the type of farm, nature of capitalization, type of business ownership, length of experience and percentage share of swine in their total production/business.

Type of Farm. One hundred five (105) of the sample raisers were backyard

operators. Forty-one (41) or 28% were growers at commercial scale. The distribution of raiser–respondents by type of farm is found in Table 3.

Respondents’ Classification. The raiser-respondents were classified based on their role in the business operations. One hundred of them were raisers or owners of the farm; 16 were caretakers, 24 were relatives of the raiser and the others were employees in the farm. Table 4 shows the distribution of the respondents by classification.


PROVINCE BACKYARD COMMERCIAL TOTAL

Pangasinan 19 11 30Nueva Ecija 19 10 29Batangas 22 8 30Iloilo 20 4 24Cebu 15 5 20Davao del Sur 10 2 12Davao City - 1 1

Total 105 41 146

Table 3. SWINE: Distribution of raiser-respondentsby type of farm, by province, 2002

Raiser/Owner 15 27 20 19 8 11 - 100 68

Caretaker 3 2 7 2 2 - - 16 11

Partner - - 1 - - - - 1 1

Both a/ - - 2 - - - - 2 1

Secretary - - - 1 - - - 1 1

Farm Administrator - - - - - 1 - 1 1

Finance Manager - - - - - - 1 1 1

Others b/ 12 - 2 10 - - 24 16

TOTAL 30 29 30 24 20 12 1 146 100a/ both raiser-operator and a caretakerb/ wife, son and daughter and relatives of raiser

TOTAL PERCENTILOILO CEBU DAVAO SUR

DAVAO CITY

RESPONDENT'S CLASSIFICATION

PANGA-SINAN

NUEVA ECIJA BATANGAS

Table 4. SWINE: Distribution of raiser-respondents by classification, by province, 2002

ITEMMETRO MANILA PANGASINAN

NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO

Material UsedSlicing tools 0.014 0.006 0.004 0.01 0.006 0.01 0.003Chopping board 0.006 0.003 0.002Hook/Meat hanger 0.002 0.001 a/ 0.001 0.001"Hasaan" (steel) 0.004 0.001 a/Ice bucket/box 0.005 0.001Plyw ood 0.01Pail 0.001 0.002Tray b/ 0.002 0.004

EquipmentWeighing Scale d/ 0.019 0.040 0.005 0.01 0.008 0.01 0.02Electric/exhaust fan c/ 0.002 0.003 0.003 0.01Chair a/ 0.05 0.204 0.001Calculator 0.002 0.001 0.002 a/ 0.009Freezer/Refrigerator 0.055 0.020 0.043 0.01Meat Grinder 0.024 0.050 0.002 0.001 0.02 0.02Cash box (stainless) 0.001 0.02Cellphone 0.01 0.009 0.004Table 0.003 a/ 0.026GunSharpener 0.008Telephone 0.005


TransportationTruck 0.14 0.068Tricycle/sidecar 0.101Jeep 0.025 0.37 a/Trailer 0.171

Labor 1.802 0.68 0.83 0.35 0.54

TOTAL 3.514 0.850 1.292 0.780 0.232 0.581 0.093

a/ less than 0.001b/ aluminum and plasticc/ includes exhaust fand/ includes all types of weighing scale

by materials/equipment/facilities used, by province, Philippines, 2002


Appendix 20. SWINE (Slaughtered): Imputed cost of depreciation/labor incurred by respondents,

Nature of Capitalization. The amount and nature of the source of working capital

provided the traders some flexibility on the amount to defray for certain cost items. Table 5 presents the distribution of respondents by nature of capitalization.

Out of 280 respondents, 92% operated their business using their own capital.

Eight of them have shared capital with their partners; 13 operated on borrowed

capital; one was financed by a corporation, while one agent did not have financial capital at all.

Business Ownership. Majority (265 or 95%) of the respondents operated their own business as single proprietors. Twelve were into a partnership while 3 respondents were under a corporation (Table 6).



Business permit 0.02 0.002 0.05Barangay permit 0.001Market fee 0.04Stall rental 0.03 0.27Electricity 0.11 0.14Telephone 0.025 0.035Garbage/Sanitary permit 0.05Water 0.02 0.03Wastage 6.95 4.69 9.11Meals/Beverages 0.06 0.41Post mortem (inspection fee) 0.81 0.56

TOTAL 7.97 4.79 10.66


Appendix 19f. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Cebu, 2002

ITEM RLA-B-SMD PLA-B-SMD RETAILER

IRLA-LLD- PLA-LLD-

B-SMD B-MR

Cell card 0.01 0.04Travel permit 0.06Water 0.25 0.06Stall rental 0.22 0.05Electricity 0.40 0.12Weighing scale calibration a/ a/Gasoline 0.005

TOTAL 0.01 0.065 0.87 0.27

B-MR


BLA-B-MR

Appendix 19g. SWINE (Live): Other operating costs incurred by marketing participants, by item, Davao, 2002

ITEM

Self-f inanced/ow ned 36 40 43 42 33 39 16 8 257 92Sharing - - - 6 1 1 - - 8 3Borrow ed 2 1 1 1 1 2 5 - 13 5No Capital - - - - 1 - - - 1 a/Corporation - - - - - 1 - - 1 a/

TOTAL 38 41 44 49 36 43 21 8 280 100

a/ less than one percent

NATURE OF CAPITALIZATION

METRO MANILA

PANGA-SINAN

NUEVA ECIJA BATANGAS ILOILO CEBU

Table 5. SWINE: Distribution of respondents by nature of capitalization, by province, 2002

DAVAO CITY TOTAL PERCENT

DAVAO DEL SUR

Single proprietorship 36 39 43 47 31 40 21 8 265 94

Partnership 2 2 1 2 4 1 - - 12 5Corporation - - - - 1 2 - - 3 1

TOTAL 38 41 44 49 36 43 21 8 280 100


Table 6. SWINE: Distribution of respondents by type of business ownership, by province, 2002

BATANGAS ILOILO CEBUDAVAO DEL SUR

BUSINESS OWNERSHIP

METRO MANILA

PANGA-SINAN

NUEVA ECIJA


Length of Experience. The study considered the length of experience as an

important gauge in the estimation of costs. Longer experience enabled the marketing participants to estimate more accurately the amount of expenditure involved in various trading activities. Table 7 describes the respondents by length of experience in swine raising/trading.

Fifty-nine or 21% of the total respondents said that they were in the business for less than 5 years.

Thirty six percent (36%) were already in swine trading for 5 to 10 years.

Thirty-two respondents were in swine raising/marketing business for 11 to 20

years. Twenty percent (20%) of them had been engaged in swine raising and trading for

more than 20 years.

Percentage Share to Total Business. It was important to consider the percentage share in the total production (at farm level) or total business (at trader level) in the estimation of the costs incurred in marketing of swine. Table below showed that 76% of the respondents raised/traded swine as the largest portion of their business. Seven percent handled about 61-80% of swine while the rest had 20-60% of swine in their business.


ITEM IRLA-B- LMD MLA-B- SMD RETAILER

Business permit 0.004 0.12Market fee 0.02 0.08Stall rental 0.02 0.04Electricity 0.02 0.18Calibration of w eighing scale a/Garbage/Sanitary permit a/ 0.01Water 0.03Gas and Oil 0.38 0.06Meals and beverages 0.05 0.39Post Mortem 0.06Utility fee 0.11Miscellaneous fee 0.19Cellcard 0.06Wastage 0.03 0.25 0.29Others b/ 0.02

TOTAL 0.54 0.31 1.56

a/ less than 0.001

Appendix 19d. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Batangas, 2002



Business permit 0.001 0.006 Cellcard 0.011 Repair and maintenance 0.185 Meals and beverages 0.095 1.160 0.058 Gas and oil 0.114 0.471 Electricity and w ater 0.037 0.035 Stall rental 0.777 0.016 LOM exit fee 0.176 Inspection fee 0.254 Post mortem fee 0.100 0.100

TOTAL 0.309 2.271 1.016


Appendix 19e. SWINE (Live): Other operating costs incurred by marketing participants, by item, Iloilo, 2002

less than 5 3 9 12 8 7 9 9 2 59 21 5 – 10 18 14 16 14 11 17 9 1 100 36 11 – 15 5 9 4 8 2 3 - 1 32 11 16 – 20 6 4 8 2 7 4 1 1 33 12

more than 20 6 5 4 17 9 10 2 3 56 20 TOTAL 38 41 44 49 36 43 21 8 280 100

DAVAO CITY

NUEVA ECIJA

METRO MANILA

PANGA- SINAN TOTAL PERCENT

Table 7. SWINE: Distribution of respondents, by length of experience, by province, 2002


LENGTH OF EXPERIENCE

(YEARS)

Marketing Practices and Functions

Farmers and traders performed marketing practices and functions that added value to the product. Correspondingly, they incurred certain amount of costs for value-adding, transfer of ownership and for moving the products from one point to another. The major practices and functions and the corresponding marketing costs are described below.

Procurement

Traders procured live animals from the producing barangays within the province

through the Livestock “Oksyon” Markets.

Manner of Procurement. Table 9 shows that in supply procurement, traders practice either pick-up or delivery.



1 – 20 - 1 - 9 - 4 - - 14 521 - 40 - 2 1 1 4 4 1 - 13 541 - 60 1 1 2 1 5 7 3 1 21 861 - 80 2 - 5 1 7 4 - - 19 781 - 100 35 37 36 37 20 24 17 7 213 76

TOTAL 38 41 44 49 36 43 21 8 280 100

PERCENT

Table 8. SWINE: Distribution of trader respondents, by percentage share to total business, by province, 2002

BATANGAS ILOILO CEBU DAVAO DEL SUR

PERCENTAGE SHARE TO

TOTAL BUSINESS

METRO MANILA

DAVAO CITY

TOTALPANGA-SINAN

NUEVA ECIJA

Picked- up 22 11 15 15 8 10 7 7 95 Delivered 16 - - 3 3 10 2 - 34 Both - - - 1 1 3 - - 5

TOTAL 38 11 15 19 12 23 9 7 134

Table 9. SWINE:Distribution of respondents, by manner of procurement, by province, 2002

MANNER OF PROCUREMENT

METRO MANILA

PANGA-SINAN

NUEVA ECIJA

DAVAO CITY

TOTALBATANGAS ILOILO CEBUDAVAO

DEL SUR

ITEM MLA-B-SMD

peso per kg (meat)

Business permit/license 0.038Stall rentals 0.177Weighing scale calibration 0.016Water 0.004Telephone 0.007Electricity 0.055Shrinkage/w astage 7.170

TOTAL 7.467

Appendix 19b. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Pangasinan, 2002

ITEMRLA-B-

LMDRLA-B-

SMDPLA-B-

LMDPLA-B-

SMDMLA-B-

SMD RETAILER

Business permit 0.015 0.02 0.005 0.02 0.01 0.017

Electricity 0.031 0.03 0.046 0.027

Water 0.012 0.031 0.026 0.64 0.022

Stall rental 0.028 0.062 0.049 0.063

Market fee 0.021 0.013 0.139 0.06 0.028

Weighing scale rental 0.013 0.04

Gas and oil 0.09 0.63 0.12

Meals and beverages 0.21 0.312 0.092 0.35 0.312

Wastage 13.71 13.50 10.71 13.83 12.48 12.09

TOTAL 14.130 14.585 10.966 15.074 12.550 12.599


Appendix 19c. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Nueva Ecija, 2002


Of the 134 trader-respondents, ninety-five or 91% picked-up their supply from

the sources. Twenty five percent (25%) had their supplies delivered at their business

location. Five of them reported that they practiced both manners in procuring live hogs.

Mode of Payment. There were various modes of payment in buying stocks,

namely: cash, consignment and combination of the two. The variation in the payment arrangement depends on the degree of trading relationship between the farmer and trader.

Majority of the trader-respondents (82 out of 134) paid their swine suppliers in cash upon delivery.

Twelve of them paid in consignment basis and 29, a combination of both cash

and consignment.

There were 11 respondents who have agreed to defer payment with their suppliers.

Distribution

Most of the traders distributed their live and slaughtered animals within the province.The mode of delivery and terms of payment depend on the agreement between the buyerand seller.


Cash 14 7 14 10 10 13 9 5 82 Consignment 6 - - 3 1 - - 2 12 Delayed Payment - 1 1 1 - 8 - - 11 Combination 18 3 - 5 1 2 - - 29

TOTAL 38 11 15 19 12 23 9 7 134

TOTALDAVAO

DEL SUR

MODE OF PAYMENT METRO MANILA

PANGA-SINAN

NUEVA ECIJA

BATANGAS ILOILO CEBU DAVAO CITY

Table 10. SWINE:Distribution of respondents, by mode of payment in buying stocks, by province, 2002

Business permit 0.239

Sanitary permit 0.299

Residence certif icate 0.016

Rights 0.761

Telephone 0.033 0.026 0.051

Water 0.012 0.042 0.100

Electricity 0.050 0.157 0.366

Weighing fee

Slaughterhouse fee

Slaughter fee

Meat inspection fee 0.786

Stall fee 0.947 0.826 0.884

Wastage 2.000

Gasoline 0.223 0.567 2.105

Meals 0.015 0.128 0.316

Garbage collection fee 0.015

Stall repair 0.003

Weighing scale calibration 0.002

Repair and maintenance 0.056 0.005

Interest on loan 0.227

Security services 0.120

Janitorial services 0.357

TOTAL 1.280 3.802 6.652


Appendix 19a. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Metro Manila, 2002


Mode of Delivery. The mode of delivery for distribution of the product depends on

the type of buyer and their business location. Majority of the respondents let their buyers pick-up their procured live or

slaughtered animals from their location. Some of them delivered their products to the buyers.

A few practiced both manners in distributing their products.

Mode of Payment. The mode of payment in selling live and slaughtered animals depends on the agreement of the buyer and the trader.

Most of the respondents (197) received payment for their stocks in cash from

their buyers. Others received delayed payment/credit (25), both in cash or credit (49) and

consignment (8) bases.

One livestock distributor from Iloilo was paid through the bank.



Picked- up 31 41 41 46 25 34 19 6 243 Delivered 4 - 2 3 8 7 2 2 28 Both 3 - 1 - 3 2 - - 9

TOTAL 38 41 44 49 36 43 21 8 280

DAVAO CITY

TOTALDAVAO

DEL SUR

Table 11. SWINE: Distribution of respondents, by manner of distribution, by province, 2002

MANNER OF DISTRIBUTION

METRO MANILA

PANGA-SINAN

NUEVA ECIJA

BATANGAS ILOILO CEBU

Cash 18 35 41 28 31 27 15 2 197Consignment - - - 4 2 - 1 1 8Delayed Payment/Credit 11 - 2 3 1 3 2 3 25Combination 9 6 1 14 1 13 3 2 49Bank to Bank - - - - 1 - - - 1

TOTAL 38 41 44 49 36 43 21 8 280

TERMS OF PAYMENT METRO MANILA

PANGA-SINAN

NUEVA ECIJA

TOTALDAVAO

DEL SUR

Table 12. SWINE: Distribution of respondents, by terms of payment, by province, 2002


ITEM METRO MANILA

PANGASINAN NUEVA ECIJA

BATANGAS ILOILO CEBU DAVAO

Business permit 0.239 0.040 0.0145 0.07 0.005 0.02Barangay permit c/ 0.001Market fee b/ 0.05 0.06 0.04Stall rental 0.717 0.180 0.05 0.03 0.114 0.15 0.09Weighing scale rental 0.013Inspection fee 0.786 0.254Coral feeElectricity 0.183 0.055 0.03 0.15 0.035 0.12 0.17Calibration of w eighing scale 0.002 0.016 a/ a/Garbage/Sanitary permit 0.314 0.002 0.05Water 0.078 0.004 0.15 0.03 0.02 0.15Gas and oil 0.97 0.105 0.29 0.238 0.01Meals and beverages d/ 0.061 0.25 0.13 0.116 0.23Post mortem fee 0.06 0.100 0.68Utility fee 0.11Miscellaneous fee 0.19Cellcard 0.12 0.011 0.02Wastage/Shrinkage 2.00 7.17 12.72 0.19 6.90Others e/ 0.03Telephone 0.04 0.007 0.03Entrance/exit fee 0.176Repair and maintenance 0.033 0.185Interest on loan 0.227Travel permit 0.06Residence certif icate 0.02Rights 0.76Security service 0.12Janitorial service 0.357

TOTAL 6.904 7.47 13.38 1.46 1.234 8.24 0.50

a/ less than o.oo1b/ includes ticket and cash ticketc/ includes local taxd/ includes cigarrettes, rice supplye/ includes tong, revolutionary tax

by item, by province, Philippines, 2002


Appendix 19. SWINE(Slaughtered): Other operating costs incurred by respondents,


Geographic Flow

The sources and destination points of swine in the supply provinces are presented

in Appendix 10. Figures 2-8 illustrate the flow of swine in the covered provinces.

Pangasinan

Major suppliers of swine in Pangasinan were from the municipalities of Mangatarem, Malasiqui, Villasis, San Carlos City and Calasiao;

Live hogs were brought to either LOM in Calasiao or to Slaughterhouse located in Sta. Barbara.

From the LOM, live animals were distributed to the public markets within the

province but some were brought to Ilocos Sur and La Union. Swine slaughtered in Sta. Barbara were distributed in Urdaneta City and Baguio City.

Nueva Ecija

Major sources of swine in the province were San Leonardo, San Antonio and

Cabanatuan City; Swine intended for meat were brought to Aduas Slaughterhouse and then

distributed to the public markets in Cabanatuan City and Magsaysay.

Also, swine were sold alive to buyers from Manila particularly in Novaliches and Nepa Q-mart .

Batangas

Source municipalities of swine within the province were Lipa City, Rosario,

Lemery, Batangas City, Bauan and Padre Garcia; other supplies were products of Quezon, Bulacan and Nueva Ecija.

Identified trading centers were the LOMs and the slaughterhouses located

within Batangas.

These supplies were distributed to the demand areas within the province, Metro Manila, Cavite, Laguna and Bulacan.

Iloilo

Swine in Iloilo came from Janiuay, Leon, Guimbal and other municipalities

within the province. There was no supply coming outside the province. Live animals were assembled at the LOMs.


Distribution

Sacks 0.014

Plastic bag 0.062

TOTAL 0.014 0.062


Appendix 18e. SWINE (Live): Cost of material inputs incurred by marketing participants, by cost item, Iloilo, 2002

ITEM RAISER/ OPERATOR RETAILER

PROCUREMENT Chopping board 0.003

DISTRIBUTIONIce 0.31Chopping board 0.01Basin 0.001Plastic bag 0.05

TOTAL 0.003 0.371


Appendix 18f. SWINE(Slaughtered): Cost of material inputs incurred by marketing participants, by item, Cebu, 2002

ITEM IRLA-B-SMD RETAILER

Distribution

Plastic bag 0.43 0.71 0.43

TOTAL 0.430 0.71 0.43


ITEM PLA-LLD-B-MR BLA-B-MR B-MR

Appendix 18g. SWINE (Slaughtered): Costs of material Inputs incurred by marketing participants, by item, Davao, 2002

From the LOMs, live hogs were distributed to traders within the province.

Retailers sold their meat to consumers from the same town while others weresold to other towns within Iloilo.

One commercial hog farm shipped live hogs directly to Manila twice a month.

Cebu

Raisers from several municipalities in Cebu were the major suppliers of swine

in the province; other sources, however, were General Santos City, Davao and Misamis Oriental in Mindanao; Bohol and Negros Oriental in Visayas; and Masbate in Luzon.

The supplies were brought to the LOMs situated in San Antonio, Bogo and

Mantalongon where trading took place.

Demand areas within Cebu included Carcar, Carbon, Mandaue and Tabunok; other supplies were distributed to as far as Manila and Cavite.

The animals were brought to Digos and Davao City for trading;

Demand areas were Davao City and Cebu.

Davao

The bulk of supply of hogs in Davao were sourced from the towns of Bansalan,

Magsaysay, Sta. Cruz, Digos, Hagonoy and Padada in Davao del Sur. Kidapawan and Saranggani were the identified sources of swine outside the province.

Metro Manila

Meat dealers and distributors procured live hogs outside Metro Manila,

specifically from nearby provinces like Batangas, Cavite, Quezon, Bulacan and Nueva Ecija or as far as Cebu in Visayas or in Davao and General Santos City in Mindanao.

Supplies coming from Luzon were brought directly to slaughterhouses in Rizal and Metro Manila.

The stocks coming from Visayas and Mindanao were picked up by buyers from

the piers or in the stockyard in Nepomuceno, Tondo, Manila.

When slaughtered, meat were distributed in various wet markets, meat shops, restaurants and supermarkets within Metro Manila.



Distribution

Plastic bag 0.116 0.229 0.175 0.484 0.410 0.331

Tray 0.002 0.007 0.006

Basin 0.002 0.003

Pail 0.001 a/

Brooms a/

Chair 0.001

TOTAL 0.122 0.236 0.181 0.484 0.410 0.334


RETAILER

Appendix 18c. SWINE (Slaughtered): Costs of material Inputs incurred by marketing participants, by item, Nueva Ecija, 2002

ITEM RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD MLA-B-SMD

DistributionPlastic bag 0.11 0.14Broom stick 0.003Cartons 0.10Bulb 0.29Ice 0.06 0.49Tray 0.001Basin 0.02Pail 0.004Styrofoam 0.001 0.01Office Supplies 0.11 0.01Apron 0.01 0.02Fan a/

TOTAL 0.29 1.09

a/ less than 0.001


Appendix 18d. SWINE (Slaughtered): Cost of material inputs incurred by marketing participants, by item, Batangas, 2002

ITEM RETAILERMLA-B-SMD



PANGASINAN

- Dagupan City - Mangaldan - Urdaneta City - Malasiqui - Calasiao -Villasis - San Carlos City

PUBLIC MARKET - Dagupan City - Villasis - Malasiqui

LOM - Calasiao

PANGASINAN

- Mangatarem San Carlos City - Malasiqui Calasiao - Villasis

Figure 2. Geographic Flow of Swine in Pangasinan, 2002

SLAUGHTERHOUSE - Sta. Barbara

PUBLIC MARKET - Urdaneta City

ILOCOS SUR LA UNION

BAGUIO CITY

Demand Areas

Trading Areas

Supply Areas

Distribution Razor 0.006 Blade 0.011 Tray a/ Basin a/ Ice 0.131 Pail a/ Mantel 0.002 Rag 0.005 Carton 0.04 Plastic bags 0.13 0.12 0.03 Bulb/f luorescent lamp a/ 0.01 Off ice supplies 0.02

TOTAL 0.13 0.32 0.05

Appendix 18a. SWINE (Slaughtered): Costs of material Inputs incurred by marketing participants, by item, Metro Manila, 2002



DistributionIce 0.880Pail 0.001Plastic bag 0.170Chopping board 0.012 0.007Blade 0.003Plastic basket 0.002Styrofoam 0.01Plastic hose

TOTAL 0.012 1.069


Appendix 18b. SWINE (Slaughtered): Costs of material Inputs incurred by marketing participants, by item, Pangasinan, 2002

ITEM RAISER/ OPERATOR MLA-B-SMD



CABANATUAN CITY

METRO MANILA NOVALICHES NEPA Q-MART

CABANATUAN CITY

PUBLIC MARKET

MAGSAYSAY PUBLIC MARKET

ADUAS

SLAUGHTERHOUSE

SAN LEONARDO SAN ANTONIO

CABANATUAN CITY

Figure 3. Geographic Flow of Swine in Nueva Ecija, 2002

Demand Areas

Trading Centers

Supply Areas

ITEM METRO MANILA PANGASINAN NUEVA

ECIJA BATANGAS ILOILO CEBU DAVAO


DISTRIBUTION Plastic bag 0.12 0.17 0.29 0.14 0.061 0.05 0.52 Broom stick a/ 0.003 Cartons 0.042 0.10 Bulb/flourescent 0.002 0.29 Ice 0.13 0.88 0.22 0.31Tray a/ 0.01 0.001 Basin a/ 0.002 0.02 0.001Pail a/ 0.001 a/ 0.004 Plastic basket 0.002Styrofoam 0.01 0.002 Office supplies 0.019 0.10 Apron 0.01 Fan a/Chopping board 0.01 0.01Sacks 0.014Razor 0.006 Blade 0.011 0.003Mantle 0.002 Rag 0.005 Chair 0.001

TOTAL 0.34 1.076 0.30 0.89 0.075 0.374 0.520 a/ less than 0.001

Appendix 18. SWINE (Slaughtered): Cost of material inputs incurred by marketingparticipants, by activity/practice item,

by province, Philippines, 2002


IRLA-LLD- BLA-

B-SMD B-MR

Procurement 0.04

Distribution 0.21 0.31 0.40

TOTAL 0.21 0.31 0.44

MARKETING ACTIVITY/PRACTICE B-MR


Appendix 17f. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice, Davao, 2002



BATANGAS

Batangas City Tanauan City Lemery San Luis Agoncillo Taal

METRO MANILA

Pasay City Paranaque City Pasig City Marikina City Antipolo City Quezon City

Cavite Laguna Bulacan

LOMs / Slaughterhouse

BATANGAS

- Lipa City - Rosario - Lemery - Batangas City - Bauan - Padre Garcia

Figure 4. Geographic Flow of Swine in Batangas, 2002

Quezon Bulacan

Nueva Ecija

peso per kg.(meat)

Procurement 0.29

TOTAL 0.29

Appendix 17c. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice,

Batangas, 2002

MARKETING ACTIVITY/PRACTICE RETAILER

Procurement 0.75

Distribution 0.645

TOTAL 0.65 0.75

Appendix 17d. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice, Iloilo, 2002

RETAILER

peso per kg.(meat)

MARKETING ACTIVITY/PRACTICE PLA-B-SMD

peso per kg. (meat)

Procurement 0.41

TOTAL 0.41

Appendix 17e. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice, Cebu,

2002




METRO MANILA

Iloilo City

Central Market

Lapaz Public

Market

Janiuay

Poblacion

SLAUGHTERHOUSE

LIVESTOCK “OKSYON” MARKET

GUIMBAL

- Igcocolo - Poblacion

LEON

- Buga - Balud

JANIUAY

- Guadalupe - Tolorocan

Figure 5. Geographic Flow of Swine, Iloilo, 2002

Legend:

- live

- meat

MARKETING ACTIVITY/PRACTICE



Procurement 0.456 0.29 0.75 0.41 0.04


TOTAL 0.46 0.31 0.29 1.395 0.41 0.23


Appendix 17. SWINE (Slaughtered): Transportation costs incurred by marketingactivity/practice, by province, Philippines, 2002

MARKETING ACTIVITY/PRACTICE RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD MLA-B-SMD RETAILER

Distribution 0.33 0.28 0.28 0.44 0.28 0.28

Total 0.33 0.28 0.28 0.44 0.28 0.28


Appendix 17b. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice, Neva Ecija, 2002

Procurement

TOTAL

Appendix 17a. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice, Metro Manila, 2002

RETAILER

0.456

0.456

peso per kg. (meat)




CEBU

- Carcar - Carbon - Mandaue - Tabunok

MANILA CAVITE

Figure 6. Geographic Flow of Swine in Cebu, 2002

CEBU (LOM)

- San Antonio - Bogo - Mantalongon - Mandaue (Abattoirs)

CEBU

- Adlaon - Pit-os - Talamban - Absungot - Valladolet - Compostela - Liloan - Danao - Consolacion

GENERAL SANTOS CITY

DAVAO MISAMIS ORIENTAL NEGROS ORIENTAL

MASBATE BOHOL

Demand Areas

Trading Centers

Supply Areas

Legend:

- live

- meat

Distribution

Selling a/

Salaries and Wages

TOTAL

a/ include slicing of meat and selling

Appendix 16f. SWINE: Labor costs incurred by marketing participants, by activity/practice, Cebu, 2002


1.53

RETAILER

1.10

0.43

Php/kg (slaughtered)

MARKETING ACTIVITY/ IRLA-LLD- PLA-LLD- B-MRPRACTICE B-SMD B-MR

Procurement

Handling 0.25 0.11

Distribution

Handling 0.25 0.07 0.11

Salaries and Wages 0.31

TOTAL 0.50 0.07 0.53


Appendix 16g. SWINE ( Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Davao, 2002



Distribution

Handling

Selling


TOTAL 0.05

RETAILERMARKETING ACTIVITY/PRACTICE


Appendix 16d. SWINE(Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Batangas, 2002

IRLA-B-LMD

0.12

1.01

0.46

1.59

Distribution Slicing/w eighing 0.498 Selling 0.319 0.208


TOTAL 0.319 2.037

Appendix 16e. SWINE (Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Iloilo, 2002


Php/kg (meat)

RETAILERPLA-B-SMD

MARKETING ACTIVITY/PRACTICE RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD RETAILER

Procurement Slicing 1.00 0.42 1.00 1.00

Distribution Cleaning 0.17 0.17 0.17Handling Loading 0.08 0.20 0.50 0.16Unloading 0.09 0.21 0.50 0.16Selling 0.35 0.42 1.00 1.03Weighing 0.29 0.42 0.90

Salaries & Wages 0.67 0.83 0.83

TOTAL 2.48 2.26 2.41 3.90 1.52


Appendix 16c. SWINE (Slaughtered): Labor costs incurred by marketingparticipants, by activity/practice, Nueva Ecija, 2002

Figure 7. Geographic Flow of Swine in Davao del Sur, 2002

1. Cebu 2. Davao City 3. Bansalan 4. Magsaysay 5. Sta. Cruz 6. Digos 7. Hagonoy 8. Padada 9. Kidapawan 10. Sta. Maria 11. Malita 12. Sarangani

Province

4

1

2 3

5

6

10

7

9

8

11

12



Metro Manila Wet Market

Supermarkets

Restaurants Demand Areas

Trading Centers

Supply Areas

Slaughterhouses in

Metro Manila, Cainta, & Antipolo Rizal

Nepomuceno, Tondo Stockyard

Batangas, Cavite Quezon, Bulacan

Nueva Ecija

Cebu, Davao

General Santos

Figure 8. Geographic Flow of Swine, Metro Manila, 2002

MARKETING ACTIVITY/ IRLA-B- IRLA-B-

PRACTICE LMD SMD

Procurement Hauling 0.167 Handling 0.211

Pre-distribution Chopping 0.507 0.348 Hauling/Handling 0.224 0.373

Distribution Chopping 0.42 Selling 0.43 2.00

Salaries and wages Helper 0.02 Driver 0.32 1.58

TOTAL 0.167 1.502 4.930

Appendix 16a. SWINE (Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Metro Manila, 2002

RETAILER


Distribution Handling Loading 0.03 Unloading 0.03 Selling 1.50 0.29

Salaries and Wages 0.87 0.41

TOTAL 2.37 0.76

Appendix 16b. SWINE (Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Pangasinan, 2002


MARKETING ACTIVITY/PRACTICE PLA-B-SMD MLA-B-SMD

Marketing Channels

Figures 9-15 illustrate the flow of swine from the raisers to retailers.

Pangasinan

Swine raisers’ outlets were either livestock assembler-distributor, butcher-meat distributor. They also directly sold their produce to the LOMs.

Animals bought from the LOMs were either delivered to the slaughterhouse or

distributed to the buyers outside the province (BOP).

Slaughtered animals were sold to retailers or to the BOP.

Nueva Ecija

Agents, livestock assembler-distributors and butcher-meat distributors were the market outlets of swine raisers in Nueva Ecija.

Butcher-meat distributors sold their pork directly to the consumers.

Buyers outside the province preferred live hogs supplied to them by the PLA-

LLD.

Batangas

From the raisers, live hogs were brought to the LOMs or to livestock assemblers-distributors or meat distributors;

Livestock assemblers sourced their supplies from co-LA’s, then distributed to

butchers for slaughter;

One PLA-LLD sold animals to BOPs;

There were retailers who bought live animals directly from the raisers, brought the same to the slaughterhouse, and distributed meat to the consumers.

Iloilo

The raisers’ outlets for their live animals were livestock assemblers-distributors

(PLA-LLD/PLA-MLD), agents or butcher-meat distributors (RLA-B-SMD). PLA-LLDs distributed live animals to buyers outside the province.

Agents passed their procured animals to PLA-SLD, then to PLA-B-SMD.

PLA-MLD brought live animals to the slaughterhouse.



Procurement Hauling 0.251 Handling Loading 0.189 0.06 0.055 Unloading 0.189 0.06 0.055 Chopping/Slicing 0.42 0.86

Distribution Handling Loading 0.03 0.46 0.05 Unloading 0.03 0.47 0.05 Chopping 0.42 Cleaning 0.17 Weighing 0.54 0.498 Selling 0.83 0.60 0.70 1.01 0.224 1.10

Salaries and Wages 0.48 0.50 0.78 0.31 1.331 0.43 0.31

TOTAL 2.779 1.160 3.980 1.440 2.053 1.530 0.520

DAVAO

Appendix 16. SWINE (Slaughtered): Labor costs incurred by marketing activity/practice,



MARKETING ACTIVITY/PRACTICE METRO MANILA PANGASINAN


IRLA-LLD- IRLA- RLA- PLA- PLA- MLA- BLA-

B-SMD MLD LLD LLD SLD LLD LLD

VEHICLE Ford Fierra 0.380 0.610 Truck 0.010 0.300 0.270 Motorcycle 0.280

EQUIPMENT Cellular phone 0.001 0.020 0.020 0.003

TOTAL 0.001 0.38 0.01 0.30 0.29 0.91 0.003

Appendix 15g. SWINE (Live): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities & equipment used, Davao, 2002

peso per kilogram (liveweight)

ITEM


One RLA-B-SMD slaughtered the animals himself before directly distributing to them to the retailers.

Retailers sourced their meat supplies from the SMDs or directly from the

slaughterhouse.

Cebu

Raisers sold their swine to either livestock assemblers-distributors, agent or directly to the BOPs or LOMs.

Livestock assemblers, agents and SOPs brought the animals to the LOMs

wherein butcher-meat distributors and sometimes the retailers sourced their supplies.

There were retailers who sourced live animals from the stockyard or directly

from the growers and paid for service fees at the slaughterhouse.

Davao The market outlets of swine raisers were agents, livestock assemblers-

distributors and butcher-meat distributors.

RLA-LLD supplied BOPs from Cebu.

Retailers bought swine either live or slaughtered and sold them to the consumers.

Metro Manila

Meat distributors got their stocks from the suppliers outside the province

(SOP). They brought live hogs to the slaughterhouse, paid for the services of the

butchers, and then distributed meat to the retailers and institutional buyers.


Material UsedIce bucket 0.003

EquipmentWeighing Scale 0.04 0.01

FacilitiesHolding pen 0.05

Transportation Multi-cab 1.53 Pick-up 0.03

TOTAL 0.04 0.06 1.53 0.03 a/ includes knife, bolo, hasaan

peso per kilogram (Liveweight)

Appendix 15f. SWINE (Live): Imputed cost of depreciation by marketing participants, by materials/facilities and equipment used, Cebu, 2002

ITEM RAISER/ OPERATOR RLA-SLD BLA-SLD RETAILER

PLA-B-

SMD


Equipment Cellphone 0.003 0.005 Calculator 0.001 0.002 Gun 0.012

Facilities Stockyard/holding pen 0.018 0.004

Transportation Truck 0.206 0.438 Tricycle/sidecar 1.172 0.127 Motor w ith trailer 0.172

Labor 0.232

TOTAL 1.404 0.021 0.333 0.460 0.004 0.173

Appendix 15e. SWINE (Live): Imputed costs of labor and depreciation incurred by marketing participants, by materials/facilities & equipment used, Iloilo, 2002

ITEM PLA-LLD


PLA-MLD PLA-SLDRAISER/

OPERATOR AGENT



CONSUMER

RETAILER

SLAUGHTERHOUSE

BOP

LOM

PLA-B-SMD MLA-B-SMD

IRLA-LLD MLA-SLD

RAISER/OPERATOR

Figure 9. Marketing Channels for Swine in Pangasinan, 2002

ITEMRAISER/

OPERATOR PLA-LLD BLA-SLDRLA-B-

LMDRLA-B-

SMDPLA-B-

LMD AGENT RETAILER

Equipment

Weighing scale a/ 0.065 0.001 0.008

Calculator 0.014 0.001 a/ 0.001

Transportation

Trailer 0.066

Colong-colong 0.266 0.080 0.010

Jeep 0.083 0.670 0.035 0.070 0.060

Labor 0.500

TOTAL 0.266 0.162 1.250 0.046 0.071 0.126 0.008 0.001

a/ less than 0.001


Appendix 15c. SWINE (Live): Imputed costs of labor and depreciation incurred by marketing participants,by material/facilities/equipment used, Nueva Ecija, 2002

Equipment Weighing Scale 0.02 0.003

Cellphone 0.01

Transportation Jeep 2.41 0.29

TOTAL 2.43 0.303

MLA-LLD

Appendix 15d. SWINE (Live): Imputed cost of depreciation/labor by marketingparticipants, by materials/facilities and equipment used, Batangas, 2002


ITEM RAISER/OPERATOR



CONSUMER

RETAILER

BOP

MLA-B-SMD

RLA-B-LMD/

SMD

PLA-B-LMD/

SMD

RAISER/OPERATOR

PLA-LLD

BLA-SLD

AGENT

Figure 10. Marketing Channels for Swine in Nueva Ecija, 2002

ITEM IRLA-SLD IRLA-B-LMD IRLA-B-SMD RETAILER

Equipment Calculator a/ 0.001 0.004

Transportation Truck 0.053 0.147 0.240 0.214

Labor 0.710

TOTAL 0.053 0.147 0.241 0.928

peso per kilogram


ITEM RAISER/ OPERATOR IRLA-LLD MLA-SLD MLA-B-SMD

Equipment

Weighing scale a/ 0.01

Calculator a/

Cellphone 0.002 0.01

Facilities

Off ice building 0.001

Transportation

Forw ard 0.40

Truck 3.04 0.19 0.84

Tricycle 0.12

Labor 0.09

TOTAL 3.05 0.29 0.40 0.96

a/ include all kind of weighing scale


Appendix 15b. SWINE ( Live): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities/equipment used, Pangasinan, 2002



CONSUMER

RETAILER

SLAUGHTERHOUSE

SOP

IRLA-B-SMD

BLA-B-SMD

PLA-SLD

PLA-LLD

MLA-LLD

LOM

RAISER/ OPERATOR

BOP

Figure 11. Marketing Channels for Swine in Batangas, 2002

ITEMMETRO MANILA PANGASINAN NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO

Material Used

Slicing tools 0.004

Ice bucket/box 0.003

Equipment

Weighing Scale b/ 0.010 0.011 0.01 0.02

Calculator 0.002 a/ 0.004 0.01 a/

Cellphone 0.005 0.004 0.004

Table

Gun 0.012

FacilitiesHolding pen/stockyard 0.01 0.05Office building 0.001

TransportationTruck 0.12 0.240 0.322 0.05Forw ard 0.400Tricycle/sidecar 0.120 0.138Jeep 0.184 0.37Motor w ith trailer 0.172Ford f ierra 0.48Motorcycle 0.28Multi-cab/pick-up 1.56Trailer 0.066Colong-colong 0.119

Labor 0.71 0.09 0.50 0.232

TOTAL 0.832 0.866 0.884 0.390 0.894 1.633 0.814

a/ less than 0.001b/ includes all types of weighing scale


Appendix 15. SWINE (Live): Imputed cost of depreciation/labor incurred by respondents,by material/facilities/equipment, by province, Philippines, 2002



RAISER

RETAILER

SLAUGHTERHOUSE

SMD

PLA-B-SMD

PLA-SLD

RLA-B-SMD

PLA-MLD

AGENT

PLA-LLD

BOP

Legend:

- live

- meat

Figure 12. Marketing Channels for Swine in Iloilo, 2002

Business permit 0.02 0.002Market fee 0.04Stall rentalHolding pen rental 0.20 0.09ElectricitySlaughter fee 1.94 1.03Telephone 0.025 0.035Garbage/Sanitary permitWater 0.01Gas and Oil 0.36 0.19 0.12 0.43Entrance fee (abbattoir) 0.35 0.58Stockyard fee 0.20 0.16Agent's commission 0.90Shrinkage 1.73 1.12 1.11 2.72Meals and Beverages 0.06

TOTAL 2.98 1.68 1.61 2.72 2.08 0.28 2.075

Appendix 14f. SWINE (Live): Other operating costs incurred by marketing participants,by item, Cebu, 2002

RAISER/ OPERATOR IRLA- SLD BLA-SLD RLA-B-SMD RETAILERMLA-SLD


ITEM PLA-B-SMD

IRLA-LLD- IRLA- RLA- PLA- RLA- PLA-LLD- PLA- MLA- MLA- BLA-

B-SMD MLD LLD LLD SLD B-MR SLD LLD SLD LLD

Slaughter fee 0.97 0.17 0.77Cell card 0.005 0.01 0.06Cash ticket 0.04 0.03 0.08 0.01Municipal license 0.06Agents' commission 0.14Telephone bill 0.01Barangay permit 0.06Travel permit 0.02 0.06 0.03 0.03Water 0.29Stockyard fee 0.06 0.06 0.04Dropping fee 0.03 0.06 0.02Weighing fee 0.07 0.03 0.03Gasoline 0.22 0.02 0.36 1.11 0.01 0.48 0.65 0.12Meals 0.09 0.16 0.32 0.08

TOTAL 1.05 0.32 0.18 0.53 1.43 0.24 0.79 1.23 0.27 0.06 0.77



ITEM B-MR



RAISER

RETAILERS

BLA-B-SMD/ IRLA-SLD

PLA-B-

SMD/BLA-B-SMD

AGENT

BLA-SLD

LOM

Figure 13. Marketing Channels for Swine in Cebu, 2002

SOP

MLA-SLD

AGENT

COOP

RLA-B-SMD

BOP

STOCKYARD

SLAUGHTERHOUSE

CONSUMERS

INSTITUTIONAL BUYERS

Legend:

- live

- meatITEM RAISER/ OPERATOR

PLA-LLD PLA-MLD

PLA-SLD RLA-B-SMD

PLA-B-SMD

AGENT RETAILER

Business permit 0.042 0.006 Cash ticket 0.121 Agent's commission 0.488 0.184 0.457 Weighing fee 0.160 0.230 0.133 Local tax 0.051 Cellcard 0.008 0.023 Repair and maintenance 0.938 0.007 0.036 0.003 Interest on loan 0.337 Meals and beverages 0.500 0.188 0.429 0.095 0.118 Gas and oil 0.200 0.261 0.307 0.114 0.235 Electricity and w ater 0.235 Telephone 0.118 Gun license fee 0.077 Stockyard fee 0.022 Stall rental Vehicle registration fee 0.025 Wharfage fee 0.012 Cigarettes 0.176 LOM exit fee Inspection fee Shrinkage 0.574 Permit fee to slaughter 0.081 0.170 Slaughter fee 0.300 0.300 Post mortem fee Corral fee 0.022 0.045

TOTAL 2.793 0.475 0.430 1.833 0.612 0.671 0.554 0.457






IRLA-MLD/RLA-

SLD/PLA-LLD/PLA-SLD/MLA-

LLD/MLA-SLD

IRLA-LLD-B-SMD/

BLA-LLD/RLA-LLD

Demand Areas

Supply Areas

Figure 14. Marketing Channels for Swine in Davao, 2002

AGENT

PLA-LLD-B-MR

B/MR

BOP

CONSUMER

RAISER

ITEM RAISER/ OPERATOR

PLA-LLD

BLA-SLD

RLA-B-LMD

RLA-B-SMD

PLA-B-LMD

PLA-B-SMD

MLA-B-SMD

AGENT RETAILER

Business permit 0.092 0.01 0.02 0.005 0.02 0.01Sanitary fee 0.27 0.25 0.26 0.279 0.242 0.246Water 0.022 0.043Slaughter fee 0.675 0.063 0.742 0.697 0.606 0.615Agent's commission 0.676 0.573Weighing scale rental 0.013 0.066Barangay permit 0.25Repair and maintenance 0.018Cell card 0.034Gas and oil 0.017 1.777 0.5 0.28 0.63 0.65 1.212 0.312Meals and beverages 0.577 0.066

TOTAL 0.017 2.468 0.543 1.924 1.213 2.248 1.062 2.070 0.100 1.173

Appendix 14c. SWINE (Live): Other operating costs incurred by marketing participants, by item, Nueva Ecija, 2002



MLA-LLD

PLA- LLD

PLA-SLD

IRLA-B-LMD

MLA-B-SMD

RETAILER

Business permit 0.01 0.002Inspection fee 0.22Coral fee 0.22Occupancy fee 0.06Slaughter fee 1.11Gas and Oil 0.19 0.81 0.15 0.29Weighing fee 0.18 0.06 0.13Tollgate fee 0.02Agent's commission 0.71 0.67Cellcard 0.06Shrinkage 0.69Others a/ 0.02

TOTAL 1.77 0.88 0.28 0.292 0.77 0.06 1.55

a/ includes payment for the use of road in San Jose and tong


Appendix 14d . SWINE (Live): Other operating costs incurred by marketing participants, by item, Batangas, 2002




IB-RETAILER

IRLA-B-SMD

CONSUMER

SLAUGHTERHOUSE

IRLA-B-LMD

IRLA-SLD

SOP

Legend:

- live

- meat

Figure 15. Marketing Channels for Swine in Metro Manila, 2002


Telephone 0.033 0.026

Weighing fee 0.133

Slaughterhouse fee 0.318 1.400

Slaughter fee 1.000 0.682

Tollgate fee 0.039

Agent's commission 1.000

Gas and oil 0.223 0.567

Repair and maintenance 0.035 0.056 0.005

TOTAL 0.035 1.256 2.746 1.538


Appendix 14a. SWINE (Live): Other operating costs incurred by marketing participants, by cost item, Metro Manila, 2002

ITEM IRLA-SLD IRLA-B-LMD IRLA-B-SMD Retailer

ITEM RAISER/ OPERATOR IRLA-LLD MLA-SLD PLA-B-

SMDMLA-B-

SMD

Gas and oil 0.702 0.887 0.348Meals and beverages 0.418Entrance fee 0.081 0.036Weighing of live hogs 0.132Branding at LOM 0.197 0.020Barangay permit 0.500 0.002 0.018 Revolutionary tax 0.001Business permit/license 0.062 0.038Holding pen 0.353Cell cards 0.088 0.033 Telephone 0.005 0.007Tong 0.005 Slaughterhouse fee 1.875 Interest on capital 0.160Repair and maintenance 1.850

TOTAL 0.655 3.543 1.931 0.887 0.802

Appendix 14b. SWINE (Live): Other operating costs incurred by marketing participants,by item, Pangasinan, 2002



Marketing Costs

Marketing of swine from the farm level up to retail level entailed a lot of costs which included labor, transportation, material inputs, other operating expenses and depreciation. The succeeding topics described the expenditure items and the corresponding cost as borne by the marketing participants in the transfer of the commodity from the farmer to the retailer. The items maybe similar among certain level of marketing participants but the amount varied depending on the extent of business operations.

Labor

The activities performed in the process of procuring live hogs from the farm included handling (loading/unloading to/from the truck/vehicle). During internal operations, feeding and cleaning of pens were done by some traders. Hauling, handling, slaughtering and selling were the activities performed in the distribution process that entailed corresponding cost.

Live Labor costs ranged from P0.21 (Batangas) to P5.60 per kilogram liveweight

(Iloilo).

Traders in Iloilo spent relatively highest labor cost which included shipping cost at P0.96, distribution cost at P3.60 and salaries and wages at P0.96.

Cebu traders ranked second with cost averaging P2.79 per kilogram which contributed largely by P2.21 paid by raisers for slaughtering fees and services.

The costs of labor in Metro Manila, Pangasinan, Nueva Ecija and Davao were recorded at less than P2.00 per kilogram liveweight.

Slaughtered

The highest cost of labor in marketing swine was recorded in Nueva Ecija at P3.98 per kilogram while the lowest was in Davao at P0.52 per kilogram of meat.


Procurement 1.34 0.70 1.57 0.10 0.08 0.33 0.18Shipping - - - - 0.96 0.02 0.46Distribution - 0.34 - - 3.6 2.21 0.17Salaries and Wages 0.48 0.25 0.23 0.11 0.96 0.25 0.54

TOTAL 1.82 1.29 1.80 0.21 5.60 2.81 1.35

ILOILO CEBU DAVAOACTIVITY/PRACTICEMETRO MANILA

PANGA-SINAN

NUEVA ECIJA

Table 13a. SWINE (Live): Labor costs by marketing activity/practice, by province, 2002

BATANGAS


ITEM METRO MANILA



Business permit 0.058 0.07 0.03 0.01 0.014 0.02 0.01Barangay permit c/ 0.02 0.25 0.01Transport permitMarket fee b/ 0.121 0.04 0.03Weighing scale rental 0.04Inspection fee 0.22Coral fee 0.22 0.030Electricity 0.235Occupancy fee 0.06Slaughter housefee 0.359 1.88Slaughter fee 0.741 0.57 1.11 0.300 1.48 0.93Branding feeCalibration of w eighing scaleGarbage/Sanitary permit 0.26Water 0.03 0.01 0.04Gas and oil 0.40 0.65 0.62 0.29 0.398 0.27 0.37Meals and beverages d/ 0.42 0.27 0.393 0.06 0.11Weighing fee 0.133 0.13 0.11 0.163 0.06Tollgate fee 0.04 0.02Branding fee 0.07Agent's commission 1.00 0.62 0.68 0.438 0.90 0.06Cellcard 0.06 0.03 0.12 0.049 0.03Wastage/Shrinkage 0.69 0.574 1.30Others e/ 0.006 0.03 0.02Holding pen rental 0.35 0.14Telephone 0.03 0.006 0.118 0.02 0.14Entrance/exit fee 0.06 0.46Stockyard fee 0.022 0.18 0.29Repair and maintenance 0.035 1.85 0.018 0.009Interest on loan 0.16 0.337Gun license fee 0.077Vehicle registration fee 0.025Wharfage 0.012Travel permit 0.06Residence certif icate

TOTAL 2.795 5.732 2.738 3.560 3.315 4.880 2.160

a/ less than o.oo1b/ includes ticket and cash ticketc/ includes local taxd/ includes cigarrettes, rice supplye/ includes tong, revolutionary tax, dropping fee

Appendix 14. SWINE (Live): Other operating costs incurred by respondents,by activity/practice/item, by province, Philippines2002


In procuring meat, traders in Metro Manila, Nueva Ecija, Batangas and Davao

incurred P1.06, P0.86, P0.12 and P0.11 per kilogram for labor.

Labor costs ranging from P0.66 to P2.34 were borne by traders in the distribution of every kilogram of pork.

Transportation

Transportation was a major consideration in moving the commodity from point to point and from one participant to another. The cost depends on the distance and destination of the commodity.

Live

Shipment of live hogs from Iloilo and Davao required average costs of P1.43 and P3.13 per kilogram, respectively.

Average cost of transferring hogs from the source to their destination ranged from P0.08 to P3.91 per kilogram.



Procurement 1.06 - 0.86 0.12 - - 0.11Distribution 1.25 0.66 2.34 1.01 0.72 1.10 0.10Salaries and Wages 0.48 0.50 0.78 0.31 1.33 0.43 0.31

TOTAL 2.79 1.16 3.98 1.44 2.05 1.53 0.52

ACTIVITY/PRACTICEMETRO MANILA

PANGA-SINAN



Table 13b. SWINE (Slaughtered): Labor costs by marketing activity/practice, by province. 2002

PROCUREMENT Feeds 0.10 0.08

DISTRIBUTION Ropes 0.21

TOTAL 0.21 0.10 0.08

Appendix 13d. SWINE(Live): Cost of material inputs incurred by marketing participants, by item, Cebu, 2002


ITEM RAISER/ OPERATOR BLA - SLD PLA-B- SMD

Procurement Rope 0.002 0.002

Bamboo 0.002 0.007

Kaing 0.040

Feeds 0.150

TOTAL 0.150 0.004 0.049

Appendix 13e. SWINE (Live): Costs of material Inputs incurred by marketing participants, by item, Davao, 2002


ITEM RLA-SLD PLA-SLD MLA-LLD

ACTIVITY/PRACTICE PANGASINANNUEVA ECIJA BATANGAS ILOILO CEBU DAVAO

Procurement 0.08 0.81 0.80 - 0.58 0.33Shipping - - - 1.43 - 3.13Distribution - - 0.39 0.75 0.32 0.45

TOTAL 0.08 0.81 1.19 2.18 0.90 3.91

Table 14a. SWINE (Live): Transportation costs by marketingactivity/practice, by province, 2002



Slaughtered

Trader-respondents from Metro Manila, Batangas and Cebu paid P0.46, P0.29 and P0.41 per kilogram, respectively for transportation during their procurement activities. In this case, traders let their buyers picked up the goods from their location.

On the other hand, traders from Nueva Ecija incurred transport cost of P0.31

during distribution only.

Respondents from Iloilo and Davao were charged a total of P1.40 and P0.23 per kilogram, respectively, for transporting slaughtered animals.

Material Inputs

Swine trading required some material inputs. In buying, the materials used were crates, drum, ladder, feeds, rope and containers. In selling, rope, feeds, sacks and plastic bags were used. Tables 15a and 15b present the materials used and the corresponding costs for live and slaughtered animals, respectively.

Live In Pangasinan, Nueva Ecija and Davao, trader-respondents used some

materials with costs ranging from P0.12 to P0.20 per kilogram for the procurement of live hogs.

Traders from Cebu and Iloilo spent much higher at P0.30 and P0.50 per

kilogram because they used those material inputs both in the procurement and distribution processes.

Trader-respondents from Metro Manila and Batangas did not require material inputs in trading live animals.


DistributionDrum 0.012 Pail 0.030 0.001 0.001 Rope 0.110 0.080 a/ Plastic hose 0.07

TOTAL 0.210 0.093 0.001


Appendix 13a. SWINE (Live): Costs of material Inputs incurred by marketing participants, by item, Pangasinan, 2002

ITEM RAISER/ OPERATOR IRLA-LLD MLA-B-SMD

Procurement Feeds 0.173 0.111 0.231 0.122

Brooms 0.001 Basin 0.004 0.002 Hose 0.015Pail 0.003

TOTAL 0.195 0.111 0.231 0.003 0.122 a/ less than 0.001


Appendix 13b. SWINE (Live): Costs of material Inputs incurred by marketing participants, by item, Nueva Ecija, 2002

ITEM BLA-SLD PLA-LLD RLA-B-LMD RLA-B-SMD PLA-B-LMD

Procurement Crate 0.003 Drum 0.001 0.004 Ladder 0.002 Feeds/rice bran 0.662 0.089 Rope 0.003 a/ Container 0.001 Distribution Rope 0.050 Feeds 0.240

TOTAL 0.290 0.006 0.662 0.008 0.089

Appendix 13c. SWINE (Live): Cost of material inputs incurred by marketing participants,by item, Iloilo, 2002

peso per kilogram (liveweight) PLA-B-SMD ITEM RAISER/

OPERATOR PLA-LLD PLA-MLD PLA-SLD



Procurement 0.456 - 0.29 0.75 0.41 0.04Distribution - 0.31 - 0.645 - 0.19

TOTAL 0.46 0.31 0.29 1.395 0.41 0.23

Table 14b. SWINE (Slaughtered): Transportation costs by marketingactivity/practice, by province, 2002


Slaughtered

When buying slaughtered hogs (or meat), traders in Cebu spent a minimal amount of P0.003 for material inputs.

In selling, however, the average costs for materials ranged from P0.08 (Iloilo)

to P1.07 per kilogram (Pangasinan).

Other Operating Costs

Marketing participants also incurred other operating expenses which included business permit/license, market fee, electricity, telephone, water, gas and oil, cell cards, etc. It also covered expenses for meals and beverages while transporting the commodity. Other items with the corresponding amount of cost incurred are enumerated in Tables 16a and 16b.



RAISER- IRLA-LLD- RLA- PLA- RLA- PLA- MLA- BLA- BLA-

OPERATOR B-SMD LLD LLD SLD SLD LLD LLD B-MR

Procurement 0.36 0.69 0.08 0.19 0.31

Shipping 3.13

Distribution 1.00 0.21 0.40 0.02 0.69 0.08 1.02 0.19

TOTAL 1.00 3.70 0.40 0.02 1.38 0.16 1.02 0.38 0.31


ITEM

Appendix 12f. SWINE (Live): Transportation costs incurred by marketing participants,by activity/practice, Davao, 2002

Procurement - 0.12 0.18 - 0.21 0.09 0.20Distribution - - - - 0.29 0.21 -

TOTAL - 0.12 0.18 - 0.50 0.30 0.20



Table 15a. SWINE (Live): Cost of material inputs by marketing activity/practiceby province, 2002

DAVAOACTIVITY/PRACTICEMETRO MANILA

PANGA-SINAN

NUEVA ECIJA

Procurement - - - - - 0.003 -Distribution 0.34 1.07 0.30 0.89 0.08 0.37 0.52

TOTAL 0.34 1.07 0.30 0.89 0.08 0.37 0.52

CEBU

Table 15b. SWINE (Slaughtered): Cost of material inputs by marketing activity/practiceby province, 2002

DAVAO



PANGA-SINAN

NUEVA ECIJA BATANGAS ILOILO

ITEM PANGASINAN NUEVA ECIJA ILOILO CEBU DAVAO

PROCUREMENT Feeds/rice bran 0.16 0.204 0.09 0.15 Crate 0.003Drum 0.012 0.002Ladder 0.002Rope 0.04 0.001 0.002 Container 0.001Bamboo 0.004 Kaing 0.04 Brooms 0.001Basin 0.003Hose 0.07 0.015Pail 0.002 0.003

DISTRIBUTION Ropes 0.05 0.21Feeds 0.24

TOTAL 0.124 0.182 0.503 0.30 0.196


Appendix 13. SWINE (Live): Cost of material inputs incurred by marketingparticipants, by activity/practice/item,



Live The average operating cost was highest in Pangasinan at P5.73, followed by

Cebu at P4.88 and Batangas at P3.56 per kilogram.

In Metro Manila, traders needed P2.80 per kilogram to cover miscellaneous expenses.

Traders from other areas incurred P2.74 (Nueva Ecija), P3.31 (Iloilo) and P2.16 (Davao).

Slaughtered

Trading of slaughtered hogs required a minimum of P0.50 and a maximum of P13.38 per kilogram of meat to cover the other operating expenses.

Wastage contributed a significant amount particularly in Metro Manila,

Pangasinan, Nueva Ecija and Cebu.

Other items like fees, rentals, utilities, gas and oil, meals and beverages amounted to less than a peso.


Procurement 0.11 0.84 0.82


TOTAL 0.26 0.73 0.29 0.84 0.82

Appendix 12c. SWINE(Live): Transportation costs incurred by marketing participants,by activity/practice, Batangas, 2002


MLA-B-SMD RETAILERPLA-SLDMARKETING

ACTIVITY/PRACTICE MLA-LLD PLA-LLD

Procurement 0.92 0.72 0.92 1.81 0.61 0.45 0.54

Distribution 0.32

TOTAL 0.32 0.92 0.72 0.92 1.81 0.61 0.45 0.54


RLA-B- SMD

PLA-B- SMD

BLA-SLD BLA-B- SMD

RETAILERPLA-LLD MLA-SLD

Appendix 12e. SWINE (Live): Transportation costs incurred by marketing participants,by activity/practice, Cebu, 2002


METRO MANILA

PANGA-SINAN


0.06 0.07 0.54 0.01 0.18 0.02 0.081.27 2.14 0.57 1.74 0.736 2.16 1.27

- 0.35 0.04 - 0.01 0.14 -0.03 0.12 0.06 0.12 0.24 0.03 0.210.40 0.65 0.62 0.29 0.24 0.27 0.06

- 0.42 0.27 - 0.41 0.06 0.371.00 - 0.62 0.68 0.44 0.90 0.06

- - - - 0.013 - -0.035 1.85 0.18 - 0.346 - -

- 0.16 - - 0.22 - -- - - - - - -- - - 0.69 - 1.30 -- 0.006 - 0.03 - - 0.04

2.79 5.77 2.90 3.56 2.83 4.88 2.09


ServicesShrinkage

Gas and oilMeals and beveragesAgent's commissionShipping

Table 16a. SWINE (Live): Other operating costs incurred by respondents,by cost item, by province, 2002

Repair and maintenanceInterest on loan

Permits/licensesFeesRentalsUtilities

ITEM

Others

TOTAL

Shipping 1.425 Distribution 1.04 0.748

TOTAL 1.04 2.173

Php/kg.(liveweight)

Appendix 12d. SWINE (Live): Transportation costs incurred by marketing participants, by activity/practice, Iloilo, 2002

RAISER/ OPERATOR ITEM PLA-LLD


Imputed Costs

This study computed the depreciation costs for materials, facilities and transportation items used in swine marketing. It also included the estimated value of the work performed by the family/operator.

Live

There were trader-respondents in Metro Manila, Pangasinan, Nueva Ecija and

Iloilo who utilized family members in trading live hogs which cost them an average imputed amount of P0.71, P0.09, P0.50 and P0.23 per kilogram, respectively.

Total imputed cost was highest in Cebu at P1.63 and lowest in Batangas at

P0.39.


ITEM PANGASINAN NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO

Procurement 0.08 0.81 0.80 0.58 0.33

Shipping 1.425 3.13

Distribution 0.39 0.75 0.32 0.45

TOTAL 0.08 0.81 1.19 2.175 0.90 3.91

Appendix 12. SWINE (Live): Transportation costs incurred by marketingactivity/practice, by province, Philippines, 2002


Procurement 0.08 0.07

TOTAL 0.08 0.07

MLA-SLD PLA-B-SMD

Appendix 12a. SWINE (Live): Transportation costs incurred by marketing participants, by activity/practice, Pangasinan, 2002

ITEM

ITEMMETRO MANILA

PANGA-SINAN


Permits/licenses 0.57 0.04 0.01 0.07 0.01 0.07 0.06Fees 0.786 0.177 0.063 0.42 0.43 0.72 -Rentals 1.48 - 0.05 0.03 0.11 0.15 0.09Utilities 0.30 0.07 0.18 0.30 0.05 0.17 0.34Gas and oil 0.97 - 0.11 0.29 0.24 - 0.01Meals and beverages 0.061 - 0.25 0.13 0.12 0.23 -Agent's commission - - - - - - -Shipping - - - - - - -Repair and maintenance 0.035 0.016 - - 0.185 - -Interest on loan 0.23 - - - - - -Services 0.48 - - - - - -Wastage 2.00 7.17 12.72 0.19 - 6.90 -Others - - - 0.03 - - -

TOTAL 6.91 7.47 13.38 1.46 1.13 8.24 0.50


Table 16b. SWINE (Slaughtered): Other operating costs incurred by respondents,by cost item, by province, 2002



Total 1.40 0.21

peso per kg.(liveweight)

Appendix 12b. SWINE (Live): Transportation costs incurred by marketing participants, by activity/practice, Nueva Ecija, 2002


Slaughtered

The imputed cost was P3.51 per kilogram in Metro Manila, the highest among the areas covered.

The next with higher imputed cost was gathered in Nueva Ecija at P1.29.

Traders in other areas have total imputed cost from P0.09 (Davao) to P0.85 (Pangasinan).


Procurement Handling Loading 0.05 0.05 0.13 0.10 0.20 Unloading 0.05 0.05 0.13 0.10 0.20 Chopping a/ 0.19

Distribution Slaughtering 2.21


TOTAL 2.56 0.10 0.10 0.26 0.20 0.80

a/ include chopping and slicing


Appendix 11f. SWINE (Live): Labor costs incurred by marketing participants,by activity/practice, Cebu, 2002


RAISER/ OPERATOR

PLA-LLD BLA - SLD RLA-B-SMD PLA-B-SMD RETAILER



Procurement

Handling 0.25 0.43 0.16 0.07 0.03 0.14

Shipping

Arrastre 0.46

Distribution

Handling 0.13 0.40 0.16 0.07 0.03 0.14

Salaries and Wages 0.99 0.09 0.40 0.48 0.48

TOTAL 0.84 0.99 0.92 0.40 0.32 0.14 0.48 0.48 0.06 0.28

Appendix 11g. SWINE (Live): Labor costs incurred by marketing participants,by activity/practice, Davao, 2002


MARKETING ACTIVITY/ PRACTICE

ITEMMETRO MANILA

PANGA-SINAN


Material Used - - - - 0.004 0.003 -Equipment 0.002 0.015 0.015 0.02 0.02 0.02 0.004Facilities - 0.001 - - 0.01 0.05 -Transportation 0.12 0.76 0.37 0.37 0.81 1.56 0.81Labor 0.71 0.09 0.50 - 0.23 - -

TOTAL 0.83 0.87 0.88 0.39 1.07 1.63 0.81


Table 17a. SWINE (Live): Imputed cost of depreciation/labor incurred by respondents,by cost item, by province, 2002

ITEMMETRO MANILA

PANGA-SINAN


Material Used 0.031 0.007 0.01 0.014 0.006 0.011 0.02Equipment 0.105 0.163 0.256 0.046 0.057 0.03 0.073Facilities 1.436 - - - - - -Transportation 0.14 - 0.20 - 0.17 - -Labor 1.802 0.68 0.83 0.35 - 0.54 -

TOTAL 3.51 0.85 1.29 0.41 0.23 0.58 0.09


Table 17b. SWINE (Slaughtered): Imputed cost of depreciation/labor incurred by respondents, by cost item, by province, 2002

Total Marketing Costs

Live

In the supply areas in Luzon, average costs in marketing live hogs ranged fromP6.36 in Batangas to P8.13 in Pangasinan.

In Visayas, marketing cost was highest in Iloilo at P12.89 followed by Cebu at

P11.13 per kilogram.

Respondents in Davao spent an average of P8.36 in buying and selling of livehogs.

Slaughtered

Pork trading was more costly than trading live hogs as shown in marketingcosts incurred by the respondents from Metro Manila (P14.01), Pangasinan(P10.55) and Nueva Ecija (P19.26).

Traders in Batangas and Iloilo spent P4.49 and P4.89 per kilogram,

respectively, in procuring and distributing pork. In Cebu, equal amount was required in trading live and slaughtered animals at


Davao respondents have the lowest estimate of trading expenses at P1.86.



Distribution

Handling 0.10 0.12


TOTAL 0.18 0.15 0.12


Appendix 11d. SWINE(Live): Labor costs incurred by marketing participants, by activity/practice, Batangas, 2002

MARKETING ACTIVITY/PRACTICE RETAILERPLA-LLD MLA-LLD

RLA-B- PLA-BSMD SMD

Procurement Handling Loading 0.153 0.342 0.036 0.165 Unloading 0.153 0.342 0.036 0.165

Shipping Arrastre 0.060 Convoy 0.899

Distribution Hauling 1.020 Feeding and cleaning of pens 0.074 Slaughtering/Slicing/w eighing 1.429 0.982 0.538 1.619 Handling 1.496 Selling


TOTAL 2.449 2.761 0.684 1.941 0.609 2.022

Appendix 11e. SWINE (Live): Labor costs incurred by marketing participants,by activity/practice, Iloilo, 2002


RAISER/ OPERATOR

PLA-LLD PLA-MLD PLA-SLDMARKETING ACTIVITY/PRACTICE

Cash Costs 4.61 7.26 5.69 5.97 11.82 9.30 7.55

Labor 1.82 1.29 1.80 1.22 5.6 2.81 1.35 Transportation - 0.08 0.81 1.19 2.18 1.31 3.91 Material Inputs - 0.12 0.18 - 1.21 0.3 0.2 Other Operating Expenses 2.79 5.77 2.9 3.56 2.83 4.88 2.09

Non-cash Costs 0.83 0.87 0.88 0.39 1.07 1.83 0.81

Depreciation 0.12 0.78 0.38 0.39 0.84 1.83 0.81 Labor 0.71 0.09 0.50 - 0.23 - -

TOTAL 5.44 8.13 6.57 6.36 12.89 11.13 8.36


Table 18a. SWINE (Live): Total marketing costs, by province, 2002

BATANGAS ILOILO CEBU DAVAOITEMMETRO MANILA

PANGA-SINAN

NUEVA ECIJA



The succeeding charts and table (Figures 16-21 and Table 19) present the averagecosts incurred by the respondents in bringing the commodity from the source to its ultimatedestination.

Pangasinan

The raisers spent P6.26 per kilogram in bringing live hogs from the farm to the

“Oksyon” market. When the animals were traded within the province, marketingcosts amounted to P8.79.

Traders who brought the animals to Ilocos Sur incurred marketing expense of

P7.22 while those trading live hogs in Benguet spent P8.60 for every kilogram. Nueva Ecija

The distribution of swine within the province entailed marketing cost of P13.38per kilogram.

Traders who brought the animals to Bulacan or Metro Manila have a lower

marketing expenditure amounting to P11.39 per kilogram. Batangas

From the supply barangays to the market, the average cost was P4.24 per

kilogram. In distributing the animals to Batangas City, Bauan and Lemery, thetraders spent P3.18, P2.51 and P2.75, respectively.

The average cost of bringing hogs to Metro Manila was P6.34 per kilogram.


Pre-marketing Handling Loading 0.31 Unloading 0.31 Hauling 0.08

Distribution Slaughtering 0.25 Selling 0.09


TOTAL 0.25 0.17 0.87

MLA-B-SMD


Appendix 11b. SWINE (Live): Labor costs incurred by marketing participants, by activity/practice, Pangasinan, 2002

MARKETING ACTIVITY/PRACTICE IRLA-LLD MLA-SLD


RAISER/ OPERATOR PLA-LLD

RLA-B-LMD

RLA-B-SMD

PLA-B-LMD

PLA-B-SMD

MLA-B-SMD AGENT RETAILER

Procurement

Handling

Loading 0.08 0.28 0.23 0.44 0.33 0.05 0.31

Unloading 0.08 0.28 0.23 0.44 0.33 0.05 0.31

Slaughtering 1.00 1.00 1.17 1.00 1.21 1.10

Salaries & Wages 0.12 0.33

TOTAL 0.12 0.49 1.55 1.46 2.05 1.66 1.21 0.10 1.72

* includes loading & unloading

Appendix 11c. SWINE (Live): Labor costs incurred by marketing participants,by activity/practice, Nueva Ecija, 2002


Cash Costs 10.5 9.7 17.97 4.08 4.66 10.55 1.77

Labor 2.79 1.16 3.98 1.44 2.05 1.53 0.52 Transportation 0.46 - 0.31 0.29 1.40 0.41 0.23 Material Inputs 0.34 1.07 0.30 0.89 0.08 0.37 0.52 Other Operating Expenses 6.91 7.47 13.38 1.46 1.13 8.24 0.50

Non-cash Costs 3.51 0.85 1.29 0.41 0.23 0.58 0.09

Depreciation 1.71 0.17 0.46 0.06 0.23 0.04 0.09 Labor 1.80 0.68 0.83 0.35 - 0.54 -

TOTAL 14.01 10.55 19.26 4.49 4.89 11.13 1.86


Table 18b. SWINE (Slaughtered): Total marketing costs, by province, 2002

ITEMMETRO MANILA

PANGA-SINAN




Pangasinan

Illocos Sur

Benguet

Within Pangasinan

= P8.79

Barangay to LOM = P6.26

Pangasinan to Benguet =

P8.60 Pangasinan to Ilocos Sur

= P7.22

Figure 16. Average Marketing Costs for Swine, by Point of Destination, Pangasinan, 2002

IRLA-B- IRLA-B-

LMD SMD


Pre-distribution Slaughtering 1.338 0.831 0.531


TOTAL 1.505 1.171 2.322

Appendix 11a. SWINE (Live): Labor costs incurred by marketing participants, by activity/practice, Metro Manila, 2002

RETAILER



Procurement Hauling 0.167 0.08 Handling Loading 0.106 0.31 0.24 0.05 0.041 0.07 0.09 Unloading 0.106 0.31 0.25 0.05 0.041 0.07 0.09 Slaughtering 0.96 1.08 Chopping/Slicing 0.19

Shipping Arrastre 0.06 0.46 Convoy 0.899

Distribution Hauling 1.02 Feeding and cleaning of pens 0.074 Slaughtering a/ 0.25 1.008 2.21 Handling Loading 0.748 0.085 Unloading 0.748 0.085 Selling 0.09


TOTAL 1.819 1.290 1.800 0.210 5.598 2.790 1.350

a/ includes slicing, chopping and weighing

Appendix 11. SWINE (Live): Labor costs incurred by marketing activity/practice,by province, Philippines, 2002


METRO MANILA BATANGAS ILOILO CEBU DAVAO


PANGASINANNUEVA ECIJA



Metro Manila & Bulacan

Nueva Ecija

Within Nueva Ecija = P13.38

Nueva Ecija to Metro Manila & Bulacan

= P11.39

Figure 17. Average Marketing Costs for Swine, by Point of Destination, Nueva Ecija, 2002

Within the province Outside the province Within the province Outside the province

Metro Manila Taguig, Muntinlupa City, Batangas, Bulacan, Muntinlupa City, Rizal, CaviteLas Pinas, Pasig City, Laguna, Rizal Las Pinas, Paranaque,Quezon City, Makati City Nueva Ecija, Quezon, Marikina City,

General Santos, Davao Quezon City, Caloocan,Pasig City, Pasay City

Pangasinan Malasiqui, Villasis, Malasiqui, Sta. Barbara, Baguio City, Ilocos Sur,Mangatarem Dagupan City, Calasiao, Ilocos Norte, Tarlac,

Mangaldan, Mapandan, Pampanga, Metro ManilaSan Carlos City, Villasis,Lingayan, Bayambang

Nueva Ecija Sta. Rosa, Cabanatuan, Pangasinan, Bulacan Sangitan market, Isabela, Pampanga,Jaen, Talavera, San Cabanatuan City, Munoz, Metro ManilaLeonardo, Bongabon, Bongabon, San Jose CityGabaldon, Aliaga, Aduas,Laur, San Antonio,Caalibangbangan

Batangas Lipa City, Rosario, Lemery, Quezon Batangas City, Pasig City, Cavite, Batangas City, Bauan, Bulacan and Nueva Tanauan, Lemery, Paranaque, Pasay City,Padre Garcia Ecija (piglets) San Luis, Agoncillo, Laguna, Bulacan,

Taal Marikinaand Metro Manila

Iloilo Janiuay, Leon, Guimbal, Janiuay, Leon, Metro ManilaIloilo City Guimbal, Iloilo City

Cebu Bogo, Montalongon, Bohol, General Santos Mandaue City, Ronda, Barili, Malbual, City, Lanao Norte, Davao Cebu City, Montalongon,San Antonio, Danao City, Talisay, Carcar, Talamban,Asturias, Consolacion, Danao CityLiloan, Dumanjug, Carcar,Sibonga, Argao,Compostela

Davao del Sur General Santos Sta. Cruz Davao City, Cebu

Davao City Malingon, Toril, Calinan, Davao Sur, Saranggani, Bangkerohan Cebu CityBanate, Tibungco, Davao NorteBunaw an Miral

Bansalan, Sta. Maria, Sta. Cruz, Padada, Hagonoy, Malita, Matanao, Magsaysay, Sulop, Digos, San Isidro, Kibongbong, Manual, San Jose

SOURCE DESTINATION

Appendix 10. SWINE: Major sources and destinations, by province,Philippines, 2002

PROVINCE



Batangas to Metro Manila=

P6.34

Batangas

Within Batangas -Batangas City P3.18 -Bauan P2.51 -Lemery P2.75

Barangay to Market

P4.24

Metro Manila

Figure 18. Average Marketing Costs for Swine, by Point of Destination, Batangas, 2002

Metro Manila 1 10 27 38 Cash 2 16 18 Delayed Payment 11 11 Combination 1 8 9

Pangasinan 30 5 6 41 Cash 27 4 4 35 Combination 3 1 2 6

Nueva Ecija 29 2 8 3 2 44 Cash 27 2 7 3 2 41 Delayed Payment/Credit 1 1 2 Both 1 1

Batangas 30 5 2 12 49 Cash 17 3 1 7 28 Consignment 4 4 Delayed Payment/Credit 3 3 Combination 6 2 1 5 14

Iloilo 24 4 3 1 4 36 Cash 21 3 2 1 4 31 Delayed Payment/Credit 1 1 Consignment 1 1 2 Both 1 1 Bank to Bank 1 1

Cebu 20 5 5 13 43 Cash 16 2 2 7 27 Delayed Payment 1 2 3 Combination 3 1 3 6 13

Davao Sur 12 6 1 2 21 Cash 12 1 2 15 Consignment 1 1 Delayed Payment 2 2 Combination 2 1 3

Davao City 1 4 1 2 8 Cash 1 1 2 Consignment 1 1 Delayed Payment 2 1 3 Combination 2 2

TOTAL 146 32 36 6 60 280

Appendix 9. SWINE:Distribution of respondents, by type of marketing participants, by terms of payment, by province, Philippines, 2002


RAISER/ OPERATOR



AGENT RETAILER TOTALPROVINCE/TERMS OF PAYMENT



Iloilo

Metro Manila

Within Iloilo = P3.88

Iloilo to Metro Manila

= P8.60

Figure 19. Average Marketing Costs for Swine, by Point of Destination, Iloilo, 2002

Metro Manila 1 10 27 38 Picked- up 5 26 31 Delivered 1 2 1 4 Both 3 3

Pangasinan 30 5 6 41 Picked- up 30 5 6 41 Delivered Both

Nueva Ecija 29 2 8 3 2 44 Picked- up 28 1 7 3 2 41 Delivered 1 1 2 Both 1 1

Batangas 30 5 2 12 49 Picked- up 30 3 1 12 46 Delivered 2 1 3

Iloilo 24 4 3 1 4 36 Picked- up 15 3 2 1 4 25 Delivered 6 1 1 8 Both 3 3

Cebu 20 5 5 13 43 Picked- up 14 2 5 13 34 Delivered 4 3 7 Both 2 2

Davao Sur 12 6 1 2 21 Picked- up 12 4 1 2 19 Delivered 2 2

Davao City 1 4 1 2 8 Picked- up 1 3 2 6 Delivered 1 1 2

TOTAL 146 32 36 6 60 280

TOTAL

Appendix 8. SWINE:Distribution of respondents, by type of marketing participants, by mode of delivery, by province, Philippines, 2002


RAISER/ OPERATOR



AGENT RETAILERPROVINCE/MODE OF DELIVERY



Metro Manila 1 10 27 38 Cash 2 12 14 Consignment 2 4 6 Combination 1 6 11 18

Pangasinan 5 6 11 Cash 4 3 7 Delayed Payment 1 1 Combination 1 2 3

Nueva Ecija 2 8 3 2 15 Cash 2 7 3 2 14 Delayed Payment 1 1

Batangas 5 2 12 19 Cash 2 1 7 10 Consignment 3 3 Delayed Payment 1 1 Combination 2 1 2 5

Iloilo 4 3 1 4 12 Cash 4 1 1 4 10 Combination 1 1 Consignment 1 1

Cebu 5 5 0 13 23 Cash 3 4 6 13 Delayed Payment 1 1 6 8 Combination 1 1 2

Davao Sur 6 1 2 9 Cash 6 1 2 9

Davao City 4 1 2 7 Cash 3 1 1 5 Delayed Payment 1 1 2

TOTAL 25 22 3 58 134

Appendix 7. SWINE:Distribution of respondents, by type of traders,by mode of payment in buying stocks, by province, Philippines, 2002




AGENT RETAILER TOTALPROVINCE/MODE OF PAYMENT

From barangay to market = P1.394

General Santos

Cebu

Bohol

Within in the province – P2.064

General Santos to Cebu = P2.84

Bohol to Cebu = 3.37

Cebu to Manila – P2.704

METRO MANILA

Figure 20. Total Marketing Costs for Swine, by Point of Destination, Cebu, 2002



Metro Manila 1 10 27 38 Picked- up 1 8 13 22 Delivered 2 14 16

Pangasinan 5 6 11 Picked- up 5 6 11

Nueva Ecija 2 8 3 2 15 Picked- up 2 8 3 2 15

Batangas 5 2 12 19 Picked- up 4 2 9 15 Delivered 1 2 3 Both 1 1

Iloilo 4 3 1 4 12 Picked- up 4 3 1 8 Delivered 3 3 Both 1 1

Cebu 5 5 13 23 Picked- up 5 3 2 10 Delivered 1 9 10 Both 1 2 3

Davao Sur 6 1 2 9 Picked- up 6 1 7 Delivered 2 2

Davao City 4 1 2 7 Picked- up 4 1 2 7

TOTAL 25 22 3 58 134

Appendix 6. SWINE:Distribution of respondents, by type of traders,by manner of procurement, by province, Philippines, 2002




AGENT RETAILER TOTALPROVINCE/ MANNER OF PROCUREMENT

From barangay to

market = P0.501

General Santos

Davao


General Santos to Davao = P0.91

Davao to Manila – P3.954

METRO MANILA

Figure 21. Total Marketing Costs for Swine, by Point of Destination, Davao, 2002


Iloilo

Traders spent P3.88 per kilogram when distributing swine within Iloilo. Shipping cost for bringing animals to Metro Manila was P8.60 per kilogram.

Cebu

In procuring animals from the areas outside Cebu, traders incurred an average

cost of P3.37 (from Bohol) and P2.84 per kilogram (from General Santos City).If the stocks came from the different barangays within the province, the cost ofbringing the animals to the Livestock Oksyon Market (LOM) was P1.39 perkilogram.

From the LOM to the different trading centers or markets within Cebu province,

traders spent P2.06 per kilogram and P2.70 per kilogram from Cebu to Manilaincluding the cost of shipping.

Davao del Sur

The cost of procuring live hogs from the different supply barangays in Davao

and bringing them to the market was P0.50 per kilogram. When distributed tothe various markets within the province, an average cost of P2.32 per kilogramwas added to the expenses of the traders.

The average cost of shipping the animals to Metro Manila was estimated at

P3.95 per kilogram.


The marketing margin is the difference between the value of a product at one stage and the value of an equivalent product at another stage in the marketing process. The initial step in measuring the marketing margin is to describe the structure of the marketing chain, starting at the farm gate and tracing the product through the various intermediaries until it reaches the final consumer. Second, is to identify and list the various functions that are performed at each stage in the marketing process. The estimation of marketing margin needs price data at which the product is boughtand sold at each stage in the marketing process. On the part of traders, buying price canbe considered an expense. They have to pay for the commodity as the initial investment atprices agreed by both parties, the farmer and the trader.

For products that remain essentially unchanged during the marketing process, thegross margin, which still includes the cost of trading and the risks, is the difference betweenthe price per unit of that product at the farmgate and the retail price per unit when sold to thefinal consumers. The net margin, or the net return, therefore, is the remainder when the totalmarketing costs were subtracted from the total gross margin.


Metro Manila 1 10 27 38 1 - 2021 - 4041 - 60 1 161 - 80 2 2

81 - 100 1 9 25 35Pangasinan 30 5 6 41

1 - 20 1 121 - 40 2 241 - 60 1 161 - 80

81 - 100 26 5 6 37Nueva Ecija 29 3 7 3 2 44

1 - 2021 - 40 1 141 - 60 2 261 - 80 2 1 1 1 5

81 - 100 24 2 6 3 1 36Batangas 30 5 2 12 49

1 - 20 8 1 921 - 40 1 141 - 60 1 161 - 80 1 1

81 - 100 21 5 2 9 37Iloilo 24 4 3 1 4 36

1 - 2021 - 40 3 1 441 - 60 2 2 1 561 - 80 7 7

81 - 100 12 2 1 1 4 20Cebu 20 5 5 13 43

1 - 20 4 421 - 40 3 1 441 - 60 2 1 1 3 761 - 80 3 1 4

81 - 100 8 2 4 10 24Davao del Sur 12 6 1 2 21

1 - 2021 - 40 1 141 - 60 2 1 361 - 80

81 - 100 12 4 1 17Davao City 1 4 1 2 8

1 - 2021 - 4041 - 60 1 161 - 80

81 - 100 1 3 1 2 7

TOTAL 87 25 22 3 58 280

Appendix 5. SWINE: Distribution of respondents, by type of marketing participants,by percentage share to total business, by province, Philippines, 2002

RAISER/ OPERATOR

LIVESTOCK ASSEMBLER- DISTRIBUTOR

PERCENTAGE SHARE TO TOTAL

BUSINESS


BUTCHER- MEAT DISTRIBUTOR

AGENT RETAILER TOTAL


Product transformation occurs during the marketing process. An example is swine,

where one kilogram liveweight sold by the farmer does not result in one kilogram of meatbeing sold to consumers. In this case, there is a need to consider the recovery rate and thevalue of the by-products in the estimation of the marketing margins.

The gross and net marketing margins for swine are presented in Table 20 and Figures 22 to 30. The estimates are based on the average buying and selling prices and the average marketing cost of each of the participants in the marketing channel.

Pangasinan

The raiser who sold his stock at P51.00 to an IRLA-LLD spent an average of P5.98 per kilogram liveweight.

The IRLA-LLD brought the animals to the slaughterhouse with total charges of

P7.21 per kilogram including gasoline and meals. At the selling price of P60.00, he netted P1.79 per kilogram.

The retailers who sourced their supply from the slaughterhouse paid for the

services of the butcher and other fees in the slaughterhouse. They incurred a total cost of P6.48 per kilogram of meat. They sold pork at P105.00 (or P73.50 per kilogram liveweight) and by products at P10.75 giving them a net margin of P17.77 per kilogram.

Nueva Ecija

The raiser sold hogs directly to a provincial assembler-butcher-meat distributor

(PLA-B-SMD). His expenses in marketing included other operating and imputed costs that added up to P0.59 per kilogram.

This assembler-distributor picked-up the hogs from the farm, took charge of

slaughtering the animals and distributed the carcasses to the retailers. His total cost was P8.80 per kilogram. At P66.50 per kilogram liveweight of meat and P10.75 value of by-products, PLA-B-SMD earned a net margin of P3.45 per kilogram.

Retailers had a total expenditure of P9.36 per kilogram in buying and selling

pork and the biggest cost items were labor at P5.07 and other operating cost at P2.97. Buying the stocks at P95.00 and selling them at P105.00 per kilogram, yielded a profit of P.64 per kilogram to these retailers.

Batangas

The raisers earned a gross margin of P50.60 in selling live hogs to PLA-LLD at

P51.00 and spent a total cost P0.40 per kilogram. These LLDs distributed the animals to retailers in Metro Manila at P66.00 with

a total cost of P0.91 giving them a net margin of P14.09 per kilogram liveweight.


Metro Manila 1 10 27 38less than 5 3 35 - 10 1 5 12 1811 - 15 3 2 516 - 20 2 4 6more than 20 6 6

Pangasinan 30 5 6 41less than 5 6 3 95 - 10 10 3 1 1411 - 15 8 1 916 - 20 3 1 4more than 20 3 1 1 5

Nueva Ecija 29 2 8 3 2 44less than 5 7 4 1 125 - 10 12 1 1 1 1 1611 - 15 1 1 1 1 416 - 20 5 2 1 8more than 20 4 4

Batangas 30 5 2 12 49less than 5 6 1 1 85 - 10 8 6 1411 - 15 5 1 2 816 - 20 1 1 2more than 20 11 3 1 2 17

Iloilo 24 4 3 1 4 36less than 5 6 1 75 - 10 7 1 3 1111 - 15 1 1 216 - 20 5 2 7more than 20 5 1 2 1 9

Cebu 20 5 5 13 43less than 5 7 1 1 95 - 10 5 3 3 6 1711 - 15 2 1 316 - 20 1 3 4more than 20 6 1 1 2 10

Davao del Sur 12 6 1 2 21less than 5 5 3 1 95 - 10 5 3 1 911 - 1516 - 20 1 1more than 20 2 2

Davao City 1 4 1 2 8less than 5 1 1 25 - 10 1 111 - 15 1 116 - 20 1 1more than 20 1 1 1 3

TOTAL 87 25 22 3 58 280

Appendix 4. SWINE: Distribution of respondents, by type of marketing participants,by length of experience, by province, Philippines, 2002

RAISER/ OPERATOR


PROVINCE/LENGTH OF EXPERIENCE





The retailers took charge of the expenses from procuring live hogs to distributing meat at the wet markets at an average cost of P1.47. With selling price of pork at P110.00 (or P77.00 at liveweight) and by-products at P10.75 per kilogram, retailers gained P20.28 per kilogram.

Iloilo

Figure 25 shows the usual channel practiced in the province, i.e. from the

raisers to the RLA-B-SMD to slaughterhouse to retailers.

o From the farm to the “oksyon” market, at a selling price of P42.25 and totalmarketing cost of P8.68 per kilogram, raisers grossed P33.57.

o RLA-B-SMD shouldered expenses in bringing the animals from the LOM to

the slaughterhouse; and from the slaughterhouse to the wet markets. AtP60.00 (dressweight) or P42.00 (liveweight) and P10.75 per kilogram of by-products, the traders earned a net profit of P9.51 after deducting totalexpenses of P0.99 per kilogram.

o The retailers sold pork at P90.00 but spent P1.68 per kilogram. This gave

them a profit of P28.32 per kilogram.

Commercial raisers in Iloilo usually distribute their stocks directly in Metro

Manila. They shouldered the cost of shipping the animals from the farm to thepier in Manila (Figure 26).

o Bringing swine to Manila entailed a total cost of P9.53 per kilogram

including shipping. At a selling price of P66.00 per kilogram liveweight,raisers earned a gross of P56.47.

o IRLA-B-SMD picked-up the animals from the pier and brought them directly

to the slaughterhouse. They sold meat to the retailers at P88.00(dressweight) or P61.60 (liveweight). After deducting the total cost ofP4.82, they gained P1.53 for every kilogram of meat.

o At a selling price of P110.00 and expenses of P3.80 per kilogram, retailers’

net earning was P18.20 per kilogram.

Cebu

Raisers sold their stock at P56.00 but spent P0.59 per kilogram in selling livehogs to IRLA-SLD.

Bringing the stocks from the LOM to the stockyard or slaughterhouse, IRLA-

SLD spent P0.43 but earned a net margin of P8.57 by selling at P65.00 perkilogram liveweight.


Metro Manila 1 10 27 38Single proprietorship 1 9 26 36Partnership 1 1 2

Pangasinan 30 5 6 41Single proprietorship 28 5 6 39Partnership 2 2

Nueva Ecija 29 2 8 3 2 44Single proprietorship 28 2 8 3 2 43Partnership 1 1

Batangas 30 5 2 12 49Single proprietorship 28 5 2 12 47Partnership 2 2

Iloilo 24 4 3 1 4 36Single proprietorship 22 2 3 1 3 31Partnership 1 2 1 4Corporation 1 1Others

Cebu 20 5 5 13 43Single proprietorship 18 5 4 13 40Partnership 1 1Corporation 2 2

Davao del Sur 12 6 1 2 21Single proprietorship 12 6 1 2 21

Davao City 1 4 1 2 8Single proprietorship 1 4 1 2 8

TOTAL 87 25 22 3 58 280

Appendix 3. SWINE: Distribution of respondents by type of marketing participants, by type of business ownership, by province, Philippines, 2002

AGENT RETAILERPROVINCE/TYPE OF BUSINESS OWNERSHIP TOTAL




RAISER/ OPERATOR


The retailers sourced their stocks from the slaughterhouse. Aside from thebuying price of P83.00 for every kilogram of the carcass, they also paid for thecosts of slaughtering and other expenses at P2.09 per kilogram. Their net profitwas P2.66 per kilogram.

Davao del Sur / Davao City

Figure 28 describes the channels in marketing culled hogs weighing an

average of 200 kilograms per head, i.e. from raisers to PLA-SLD to institutional buyer or retailers.

o Since PLA-SLD themselves picked-up the hogs they brought from the

raisers, they also paid a lower price of P30.00 per kilogram. o PLA-SLDs passed on the animals to either institutional buyers or retailers

at P35.00 a kilogram. They earned a net of P3.28 with a total marketing cost of P1.72 per kilogram liveweight.

o Meat were retailed at P95.00 (or P66.50 liveweight) and by products at

P10.75 per kilogram. When the total cost of P2.21 was deducted from the gross margin of P42.25, net margin of P40.04 per kilogram was realized.

The usual practice in trading fatteners followed this channel: raiser to IRLA-

LLD-B-SMD to retailers or institutional buyers.

o Raisers’ selling price per kilogram of live hogs was P50.00. Their outlets were the IRLA—LLDs who were at the same time butchers and meat distributors.

o The IRLA-LLDs distributed hogs to buyers outside the province with

marketing cost of P4.43 at P56.00 per kilogram giving them a net profit of P1.57 per kilogram liveweight. When they slaughtered the animals and distributed the carcass to either retailers or institutional buyers, they spent P1.32 per kilogram but earned a bigger net of P11.13 per kilogram of meat.

o On the other hand, when retailers sold meat at P95.00 per kilogram, they

netted P23.89 at the cost of P2.11 per kilogram.

Metro Manila

IRLA-SLD procured the stocks from suppliers outside the province (SOP) at P61.00 per kilogram; sold the animals at P75.00 with P0.09 total expense; and earned a net of P13.91 per kilogram liveweight.

From the slaughterhouse, the retailers incurred a total cost of P2.74 including

the cost of selling to the consumers. Their net earnings averaged P10.01 per kilogram of meat.


Metro Manila 1 10 27 38 Self-financed/owned 1 10 25 36 Borrowed 2 2

Pangasinan 30 5 6 41 Self-financed/owned 30 4 6 40 Borrowed 1 1

Nueva Ecija 29 2 8 3 2 44 Self-financed/owned 29 2 7 3 2 43 Borrowed 1 1

Batangas 30 5 2 12 49 Self-financed/owned 23 5 2 12 42 Sharing 6 6 Borrowed 1 1

Iloilo 24 4 3 1 4 36 Self-financed/owned 23 3 3 4 33 Sharing 1 1 Borrowed 1 1 No capital 1 1

Cebu 20 5 5 13 43 Self-financed/owned 18 5 5 11 39 Sharing 1 1 Incorporation 1 1 Borrowed 2 2

Davao del Sur 12 6 1 2 21 Self-financed/owned 12 1 1 2 16 Borrowed 5 5

Davao City 1 4 1 2 8 Self-financed/owned 1 4 1 2 8

TOTAL 87 25 22 3 58 280

Appendix 2. SWINE: Distribution of respondents by nature of capitalization, by type of marketing participants, by province, Philippines, 2002

AGENT RETAILERPROVINCE/NATURE OF CAPITALIZATION TOTAL




RAISER/ OPERATOR



Farmer/Raiser Trader

Cebu 20 23 43 Barili 5 4 9Carcar 1 1Cebu City 4 5 9Bogo 3 3 6Compostela 2 2Mandaue City 1 5 6Lapu-Lapu City 1 1 2Liloan 1 1Tuburan 2 2Talisay 3 3Danao City 2 2

Davao del Sur 12 9 21 Bansalan 6 2 8Hagonoy 3 3Sta. Maria 1 1 2Sta. Cruz 2 1 3Padada 4 4Digos 1 1

Davao City 1 7 8Toril 1 1Matina 1 1Bangkerohan 3 3Davao 3 3

TOTAL 146 134 280

PROVINCE/MUNICIPALITY NUMBER OF RESPONDENT TOTAL

Appendix 1. SWINE: (Continued)

Origin Destination Total

Pangasinan - supply areas to LOM 6.26 6.26 - w ithin the province 6.26 2.53 8.79 - Ilocos Sur/ La Union 6.26 0.96 7.22 - Baguio City 6.26 2.34 8.60

Nueva Ecija - w ithin the province 13.38 13.38 - Bulacan/Metro Manila 11.39 11.39

Batangas - supply areas to trading center 4.24 4.24 - w ithin the province - Batangas City - 3.18 3.18 - Bauan - 2.51 2.51 - Lemery - 2.75 2.75 - Metro Manila 4.24 2.10 6.34

Iloilo - w ithin the province 3.88 3.88 - Metro Manila 3.88 4.72 8.60

Cebu - supply areas to trading center 1.39 - w ithin the province 1.39 0.67 2.06 - Metro Manila 2.06 0.64 2.70

Davao del Sur - supply areas to Davao City 0.50 0.50 - w ithin Davao City 0.50 2.32 2.82 - Cebu 0.50 3.48 3.98 - Manila 0.50 3.45 3.95

MARKETING COSTS (peso per kilogram)PROVINCE

Table 19. Marketing Costs for Swine, by Point of Destination, 2002




Metro Manila 38 38Caloocan City 3 3Taguig 2 2Quezon City 7 7Pasig City 6 6Marikina City 5 5Paranaque City 3 3Muntinlupa City 5 5Pasay City 4 4Las Pinas 3 3

Pangasinan 30 11 41Mangatarem 10 10Malasiqui 10 10Villasis 10 10Sta. Barbara 6 6Mangaldan 1 1Dagupan City 4 4

Nueva Ecija 29 15 44Cabanatuan City 8 11 19San Leonardo 11 3 14Bongabon 1 1San Antonio 10 10

Batangas 30 19 49 Lipa City 10 10 Rosario 11 2 13 Lemery 8 3 11 Batangas City 1 8 9 Bauan 3 3 Padre Garcia 3 3

Iloilo 24 12 36Janiuay 8 2 10Leon 8 1 9Guimbal 8 2 10Iloilo City - 7 7

NUMBER OF RESPONDENT

Appendix 1. SWINE: Distribution of respondents, by typeand by province, Philippines, 2002

PROVINCE/MUNICIPALITY TOTALBuying Selling Gross 2/ Net 3/

M etro M anila SOP - 61.00 - 61.00 IRLA-SLD 352,113 61.00 75.00 0.09 14.00 13.91 Retailer 75.00 77.00* 10.75 2.74 12.75 10.01

SOP 55.00 55.00 IRLA-B-LMD 456,100 55.00 58.10* 10.75 4.34 13.85 9.51 Retailer 83.00 110.00 11.70 27.00 15.30

PangasinanRaisers 1,078 51.00 5.98 45.02IRLA-LLD 118,560 51.00 60.00 7.21 9.00 1.79Retailers 124,098 60.00 73.50* 10.75 6.48 24.25 17.77

Nueva EcijaRaisers 1,723 65.00 0.59 64.41PLA-B-SMD 27,900 65.00 66.50* 10.75 8.80 12.25 3.45Retailers 43,560 95.00 105.00 9.36 10.00 0.64

BatangasRaisers 382,872 - 51.00 - 0.40 50.60 -PLA-LLD 273,780 51.00 66.00 - 0.91 15.00 14.09Retailers (Metro Manila) 606,850 66.00 77.00* 10.75 1.47 21.75 20.28

IloiloRaisers 16,088 - 42.25 8.68 33.57RLA-B-SMD 338,400 42.25 42.00* 10.75 0.99 10.50 9.51Retailers 277,800 60.00 90.00 1.68 30.00 28.32

Raisers 55,080 66.00 9.53 56.49IRLA-B-SMD (Metro Manila) 66.00 61.60* 10.75 4.82 6.35 1.53Retailers (Metro Manila) 88.00 110.00 3.80 22.00 18.20

CebuRaiser 661,019 - 56.00 0.59 55.41IRLA-SLD 1,231,875 56.00 65.00 0.43 9.00 8.57Stockyard/Slaughterhouse 65.00 83.00 - 18.00 18.00Retailer 82,382 83.00 77.00* 10.75 2.09 4.75 2.66

Davao del Sur/CityRaisers 22,260 - 30.00 - 30.00PLA-SLD 86,800 30.00 35.00 1.72 5.00 3.28Retailers 14,560 35.00 66.50* 10.75 2.21 42.25 40.04

Raisers 196,677 50.00 - 50.00IRLA-LLD 1,105,720 50.00 56.00 4.43 6.00 1.57B-SMD 880,880 50.00 48.30* 10.75 1.32 12.45 11.13Retailers 42,840 69.00 95.00 2.11 26.00 23.89

Notes: * - based on 70% recovery rate 1/ value of by-products is estimated at 14.33% rate at P75.00 per kilogram 2/ gross margin is the difference of selling and buying price plus the value of by-products (if any) 3/ net margin is the remainder of gross margin and the total marketing cost

Table 20. SWINE: Marketing Costs and Margins by Marketing Channel, by province, 2002

PRICES (P/kg) MARGINS (P/kg)

PROVINCE/MARKETING CHANNEL/PARTICIPANTS

VOLUME TRADED

(kgs)

VALUE OF BY-PRODUCTS1/

TOTAL MKTG. COST


RAISER/

OPERATOR

SLAUGHTERHOUSE

IRLA-LLD

CONSUMER

RETAILER

Labor = P0..559; Others = P 1.331 Imputed = P 3.399; Materials= P0.192 Total Cost= P6.482

Buying Price = P60.00 Selling Price = P73.50 By-Products = P10.75 Gross Margin = P24.75 Net Margin = P17.77

Labor = P 0.992; Others = P 5.060 Imputed = P0.955; Materials =P0.207 Total Cost= P7.213

Buying Price = P51.00 Selling Price = P60.00 Gross Margin = P9.0 Net Margin = P1.79

Other = P2.513 Imputed = P 3.12 Materials = P0.345 Total Cost = P5.977

Selling Price = P51.00 Gross Margin = P45.02

Figure 22. Marketing Costs and Margins by Channel for Swine, Pangasinan, 2002


RAISER/

OPERATOR

PLA-B-SMD

CONSUMER

RETAILER

Figure 23. Marketing Costs and Margins by Channel for Swine, Nueva Ecija, 2002

Others = 0.547 Imputed = 0.047 Total = 0.594

Labor = 2.64 Transp. = 0.28 Materials = 0.43 Imputed = 0.166 Others = 5.281 Total = 8.797

Labor = 5.07 Transp. = 0.46 Materials= 0.672 Imputed= 0.187 Others = 2.972 Total = 9.359





IV. Problems Encountered

The problems encountered by the farmers and trader-respondents in relation to swine marketing are the following:

1. No buyers due to virus or foot and mouth disease (FMD);

2. Non-payment of debts or payments with bouncing checks;

3. Low price or price fluctuation;

4. Mortality of animals due to stress during shipment, and low recovery rate;

5. Lower value of sales when supply of fresh fish is abundant;

6. Hard to dispose due to the entry of imported hogs;

7. Lack of capital;

8. Inaccurate weighing scale; sometimes animals bought are not weighed; and

9. Illegal vending of pork in barangay market (talipapa).


PLA-LLD

CONSUMER

(BOP) RETAILER

Figure 24. Marketing Costs and Margins by Channel for Swine, Batangas, 2002

RAISER

Labor costs = P1.18; Materials costs = P0.12; Others = P0.14; Imputed costs = P0.03

Transport costs = P0.13; Others = P0.27

Transport costs = P0.73; Labor costs = P0.05; Others = P0.13

Total Cost = P1.47

Total Cost = P0.91

Total Cost = P0.40






CONSUMER

Figure 30. Marketing Costs and Margins by Channel for Swine, Metro Manila, 2002

IRLA-SLD

IB/RETAILER

SOP

IRLA-B-SLD

IRLA-B-LMD

SLAUGHTERHOUSE

Labor: 1.47 Others: 1.18 Imputed: 0.09 Total 2.74


OOC = 0.035 Imputed = 0.05 Total = 0.085

Labor: 1.51 Others: 2.53 Imputed: 0.17 Mat.: 0.13 Total 4 34

Selling Price = P61.00


Buying Price = P61.00 Selling Price = P75.00 Total Cost = P0.09 Gross Margin = P14.00 Net Margin = P13.91

Buying Price = P55.00 Selling Price = P58.10 Total Cost = P4.34 By-Products = P10.75 Gross Margin = P27.00 Net Margin = P25.93



Legend:

- live

- meat

CONSUMER

RETAILER

SLAUGHTERHOUSE

RAISERS

Figure 25. Marketing Costs and Margins by Channel for Swine, Iloilo, 2002

RLA-B-SMD

Labor = P0.538 Imputed = 0.068; Materials= 0.061; Others = 1.016

Permit to slaughter = 0.081; Slaughter fee = P0.30; Corral fee = P0.022

Handling costs = P0.071; Gas = P0.114; Meals = P0.095

Total Cost = P0.815

Labor = 2.449; Transp = 1.04; Materials = 0.997; Others = 2.793 Imputed = 1.404

Total Cost = P8.683

Post mortem fee = 0.10; Gas = P0.114; Meals = P0.095

Total Cost = P0.992






CONSUMER

RAISER

Figure 29. Marketing Costs and Margins by Channel for Swine, Davao, 2002

IRLA-LLD-B-SMD

IB/RETAILER

BOP



Buying Price = P50.00 Selling Price = P48.30 By-Products = P10.75 Total Cost = P1.32 Gross Margin = P12.45 Net Margin = P11.13

Labor cost = P0.48 Transportation = P0.31 Other Oparating Cost = P0.82 Imputed cost = P0.07 Total Cost = P2.11

Transportation = P0.34 Other Operating Cost = P0.98 Total Cost = P 1.32

Transportation = P0.20 Labor cost on Procurement = P0.25 Total Cost = P0.45

Shipping Cost = P3.46 Transportation cost = P0.27 Labor Cost = P0.25 Total Cost = P3.98

CONSUMERS

RAISERS

Figure 26. Marketing Costs and Margins for Commercial Hog Farm, Iloilo, 2002

IRLA-B-LMD

Labor costs = 0.316 Transportation = 1.012 Operating costs = 2.449 Imputed costs = 1.033 TOTAL = P 4.81/kg

Shipping costs = 3.768 Materials = 0.949 TOTAL = P 4.72/kg

Gasoline = 0.168 Labor costs = 2.06 TOTAL = P 2.23/kg

Gasoline = 0.168 Labor costs = 0.556 Materials = 0.13 Operating costs = 1.511 Imputed costs = 0.228 TOTAL = P 2.59/kg

Labor costs = 1.87 Operating costs = 1.28 Imputed costs = 0.60 TOTAL = P 3.801/kg

Selling Price = P66.00 Total Cost = P9.53 Gross Margin = P56.47

Buying Price = P66.00 Selling Price = P61.60 By-Products = P10.75 Total Cost = P 4.82 Gross Margin = P6.35 Net Margin = P1.53


RETAILER


Total P = 1.72/kg


CONSUMER

RAISER


PLA-SLD


Buying Price = P30.00 Selling Price = P35.00 Total Cost = P1.72 Gross Margin = P 5.00 Net Margin = P3.28


Labor Cost = 0.53 Transportation Cost = 0.08 Material Inputs = 0.43 Other Operating Cost = 1.09 Imputed Costs = 0.08 Total P = 2.21

Transportation Cost = 0.08 Other Operating Exps. = 0.79 Imputed Costs = 0.29 = 1.16

Labor Cost = 0.53 Transportation Cost = 0.08 Material Inputs = 0.43 Total P = 2.21

IB/RETAILER

CONSUMER

RETAILER

SLAUGHTERHOUSE

RAISERS

Figure 27. Marketing Costs and Margins by Channel for Swine, Cebu, 2002

RLA-B-SMD

STOCKYARD

Entrance fee = P0.11 Slaughter’s fee = P0.31 Post mortem fee = P0.14 Stockyard fee =P0.04 Labor costs = P1.02 Material used = P0.37 Other operating =P0.10

Total Cost =P2.09

Labor cost = P0.12 Transport cost = P0.31

Total Cost =0.43

Transport costs = P0.32 Labor costs = P0.21 Others = P0.06

Total Cost =0.59






Total P = 1.72/kg


CONSUMER

RAISER


PLA-SLD


Buying Price = P30.00 Selling Price = P35.00 Total Cost = P1.72 Gross Margin = P 5.00 Net Margin = P3.28


Labor Cost = 0.53 Transportation Cost = 0.08 Material Inputs = 0.43 Other Operating Cost = 1.09 Imputed Costs = 0.08 Total P = 2.21

Transportation Cost = 0.08 Other Operating Exps. = 0.79 Imputed Costs = 0.29 = 1.16

Labor Cost = 0.53 Transportation Cost = 0.08 Material Inputs = 0.43 Total P = 2.21

IB/RETAILER

CONSUMER

RETAILER

SLAUGHTERHOUSE

RAISERS

Figure 27. Marketing Costs and Margins by Channel for Swine, Cebu, 2002

RLA-B-SMD

STOCKYARD

Entrance fee = P0.11 Slaughter’s fee = P0.31 Post mortem fee = P0.14 Stockyard fee =P0.04 Labor costs = P1.02 Material used = P0.37 Other operating =P0.10

Total Cost =P2.09

Labor cost = P0.12 Transport cost = P0.31

Total Cost =0.43

Transport costs = P0.32 Labor costs = P0.21 Others = P0.06

Total Cost =0.59







CONSUMER

RAISER


IRLA-LLD-B-SMD

IB/RETAILER

BOP




Labor cost = P0.48 Transportation = P0.31 Other Oparating Cost = P0.82 Imputed cost = P0.07 Total Cost = P2.11

Transportation = P0.34 Other Operating Cost = P0.98 Total Cost = P 1.32

Transportation = P0.20 Labor cost on Procurement = P0.25 Total Cost = P0.45

Shipping Cost = P3.46 Transportation cost = P0.27 Labor Cost = P0.25 Total Cost = P3.98

CONSUMERS

RAISERS

Figure 26. Marketing Costs and Margins for Commercial Hog Farm, Iloilo, 2002

IRLA-B-LMD

Labor costs = 0.316 Transportation = 1.012 Operating costs = 2.449 Imputed costs = 1.033 TOTAL = P 4.81/kg

Shipping costs = 3.768 Materials = 0.949 TOTAL = P 4.72/kg

Gasoline = 0.168 Labor costs = 2.06 TOTAL = P 2.23/kg

Gasoline = 0.168 Labor costs = 0.556 Materials = 0.13 Operating costs = 1.511 Imputed costs = 0.228 TOTAL = P 2.59/kg

Labor costs = 1.87 Operating costs = 1.28 Imputed costs = 0.60 TOTAL = P 3.801/kg

Selling Price = P66.00 Total Cost = P9.53 Gross Margin = P56.47

Buying Price = P66.00 Selling Price = P61.60 By-Products = P10.75 Total Cost = P 4.82 Gross Margin = P6.35 Net Margin = P1.53


RETAILER



CONSUMER

Figure 30. Marketing Costs and Margins by Channel for Swine, Metro Manila, 2002

IRLA-SLD

IB/RETAILER

SOP

IRLA-B-SLD

IRLA-B-LMD

SLAUGHTERHOUSE



OOC = 0.035 Imputed = 0.05 Total = 0.085

Labor: 1.51 Others: 2.53 Imputed: 0.17 Mat.: 0.13 Total 4 34







Legend:

- live

- meat

CONSUMER

RETAILER

SLAUGHTERHOUSE

RAISERS

Figure 25. Marketing Costs and Margins by Channel for Swine, Iloilo, 2002

RLA-B-SMD

Labor = P0.538 Imputed = 0.068; Materials= 0.061; Others = 1.016

Permit to slaughter = 0.081; Slaughter fee = P0.30; Corral fee = P0.022

Handling costs = P0.071; Gas = P0.114; Meals = P0.095

Total Cost = P0.815

Labor = 2.449; Transp = 1.04; Materials = 0.997; Others = 2.793 Imputed = 1.404

Total Cost = P8.683

Post mortem fee = 0.10; Gas = P0.114; Meals = P0.095

Total Cost = P0.992





IV. Problems Encountered

The problems encountered by the farmers and trader-respondents in relation to swine marketing are the following:

1. No buyers due to virus or foot and mouth disease (FMD);

2. Non-payment of debts or payments with bouncing checks;

3. Low price or price fluctuation;

4. Mortality of animals due to stress during shipment, and low recovery rate;

5. Lower value of sales when supply of fresh fish is abundant;

6. Hard to dispose due to the entry of imported hogs;

7. Lack of capital;

8. Inaccurate weighing scale; sometimes animals bought are not weighed; and

9. Illegal vending of pork in barangay market (talipapa).


PLA-LLD

CONSUMER

(BOP) RETAILER

Figure 24. Marketing Costs and Margins by Channel for Swine, Batangas, 2002

RAISER

Labor costs = P1.18; Materials costs = P0.12; Others = P0.14; Imputed costs = P0.03

Transport costs = P0.13; Others = P0.27

Transport costs = P0.73; Labor costs = P0.05; Others = P0.13

Total Cost = P1.47

Total Cost = P0.91

Total Cost = P0.40





RAISER/

OPERATOR

PLA-B-SMD

CONSUMER

RETAILER

Figure 23. Marketing Costs and Margins by Channel for Swine, Nueva Ecija, 2002

Others = 0.547 Imputed = 0.047 Total = 0.594

Labor = 2.64 Transp. = 0.28 Materials = 0.43 Imputed = 0.166 Others = 5.281 Total = 8.797

Labor = 5.07 Transp. = 0.46 Materials= 0.672 Imputed= 0.187 Others = 2.972 Total = 9.359







Metro Manila 38 38Caloocan City 3 3Taguig 2 2Quezon City 7 7Pasig City 6 6Marikina City 5 5Paranaque City 3 3Muntinlupa City 5 5Pasay City 4 4Las Pinas 3 3

Pangasinan 30 11 41Mangatarem 10 10Malasiqui 10 10Villasis 10 10Sta. Barbara 6 6Mangaldan 1 1Dagupan City 4 4

Nueva Ecija 29 15 44Cabanatuan City 8 11 19San Leonardo 11 3 14Bongabon 1 1San Antonio 10 10

Batangas 30 19 49 Lipa City 10 10 Rosario 11 2 13 Lemery 8 3 11 Batangas City 1 8 9 Bauan 3 3 Padre Garcia 3 3

Iloilo 24 12 36Janiuay 8 2 10Leon 8 1 9Guimbal 8 2 10Iloilo City - 7 7

NUMBER OF RESPONDENT

Appendix 1. SWINE: Distribution of respondents, by typeand by province, Philippines, 2002

PROVINCE/MUNICIPALITY TOTALBuying Selling Gross 2/ Net 3/

M etro M anila SOP - 61.00 - 61.00 IRLA-SLD 352,113 61.00 75.00 0.09 14.00 13.91 Retailer 75.00 77.00* 10.75 2.74 12.75 10.01

SOP 55.00 55.00 IRLA-B-LMD 456,100 55.00 58.10* 10.75 4.34 13.85 9.51 Retailer 83.00 110.00 11.70 27.00 15.30

PangasinanRaisers 1,078 51.00 5.98 45.02IRLA-LLD 118,560 51.00 60.00 7.21 9.00 1.79Retailers 124,098 60.00 73.50* 10.75 6.48 24.25 17.77

Nueva EcijaRaisers 1,723 65.00 0.59 64.41PLA-B-SMD 27,900 65.00 66.50* 10.75 8.80 12.25 3.45Retailers 43,560 95.00 105.00 9.36 10.00 0.64

BatangasRaisers 382,872 - 51.00 - 0.40 50.60 -PLA-LLD 273,780 51.00 66.00 - 0.91 15.00 14.09Retailers (Metro Manila) 606,850 66.00 77.00* 10.75 1.47 21.75 20.28

IloiloRaisers 16,088 - 42.25 8.68 33.57RLA-B-SMD 338,400 42.25 42.00* 10.75 0.99 10.50 9.51Retailers 277,800 60.00 90.00 1.68 30.00 28.32

Raisers 55,080 66.00 9.53 56.49IRLA-B-SMD (Metro Manila) 66.00 61.60* 10.75 4.82 6.35 1.53Retailers (Metro Manila) 88.00 110.00 3.80 22.00 18.20

CebuRaiser 661,019 - 56.00 0.59 55.41IRLA-SLD 1,231,875 56.00 65.00 0.43 9.00 8.57Stockyard/Slaughterhouse 65.00 83.00 - 18.00 18.00Retailer 82,382 83.00 77.00* 10.75 2.09 4.75 2.66

Davao del Sur/CityRaisers 22,260 - 30.00 - 30.00PLA-SLD 86,800 30.00 35.00 1.72 5.00 3.28Retailers 14,560 35.00 66.50* 10.75 2.21 42.25 40.04

Raisers 196,677 50.00 - 50.00IRLA-LLD 1,105,720 50.00 56.00 4.43 6.00 1.57B-SMD 880,880 50.00 48.30* 10.75 1.32 12.45 11.13Retailers 42,840 69.00 95.00 2.11 26.00 23.89

Notes: * - based on 70% recovery rate 1/ value of by-products is estimated at 14.33% rate at P75.00 per kilogram 2/ gross margin is the difference of selling and buying price plus the value of by-products (if any) 3/ net margin is the remainder of gross margin and the total marketing cost

Table 20. SWINE: Marketing Costs and Margins by Marketing Channel, by province, 2002

PRICES (P/kg) MARGINS (P/kg)

PROVINCE/MARKETING CHANNEL/PARTICIPANTS

VOLUME TRADED

(kgs)

VALUE OF BY-PRODUCTS1/

TOTAL MKTG. COST




Cebu 20 23 43 Barili 5 4 9Carcar 1 1Cebu City 4 5 9Bogo 3 3 6Compostela 2 2Mandaue City 1 5 6Lapu-Lapu City 1 1 2Liloan 1 1Tuburan 2 2Talisay 3 3Danao City 2 2

Davao del Sur 12 9 21 Bansalan 6 2 8Hagonoy 3 3Sta. Maria 1 1 2Sta. Cruz 2 1 3Padada 4 4Digos 1 1

Davao City 1 7 8Toril 1 1Matina 1 1Bangkerohan 3 3Davao 3 3

TOTAL 146 134 280

PROVINCE/MUNICIPALITY NUMBER OF RESPONDENT TOTAL

Appendix 1. SWINE: (Continued)

Origin Destination Total

Pangasinan - supply areas to LOM 6.26 6.26 - w ithin the province 6.26 2.53 8.79 - Ilocos Sur/ La Union 6.26 0.96 7.22 - Baguio City 6.26 2.34 8.60

Nueva Ecija - w ithin the province 13.38 13.38 - Bulacan/Metro Manila 11.39 11.39

Batangas - supply areas to trading center 4.24 4.24 - w ithin the province - Batangas City - 3.18 3.18 - Bauan - 2.51 2.51 - Lemery - 2.75 2.75 - Metro Manila 4.24 2.10 6.34

Iloilo - w ithin the province 3.88 3.88 - Metro Manila 3.88 4.72 8.60

Cebu - supply areas to trading center 1.39 - w ithin the province 1.39 0.67 2.06 - Metro Manila 2.06 0.64 2.70

Davao del Sur - supply areas to Davao City 0.50 0.50 - w ithin Davao City 0.50 2.32 2.82 - Cebu 0.50 3.48 3.98 - Manila 0.50 3.45 3.95

MARKETING COSTS (peso per kilogram)PROVINCE

Table 19. Marketing Costs for Swine, by Point of Destination, 2002


The retailers sourced their stocks from the slaughterhouse. Aside from thebuying price of P83.00 for every kilogram of the carcass, they also paid for thecosts of slaughtering and other expenses at P2.09 per kilogram. Their net profitwas P2.66 per kilogram.

Davao del Sur / Davao City

Figure 28 describes the channels in marketing culled hogs weighing an

average of 200 kilograms per head, i.e. from raisers to PLA-SLD to institutional buyer or retailers.

o Since PLA-SLD themselves picked-up the hogs they brought from the

raisers, they also paid a lower price of P30.00 per kilogram. o PLA-SLDs passed on the animals to either institutional buyers or retailers

at P35.00 a kilogram. They earned a net of P3.28 with a total marketing cost of P1.72 per kilogram liveweight.

o Meat were retailed at P95.00 (or P66.50 liveweight) and by products at

P10.75 per kilogram. When the total cost of P2.21 was deducted from the gross margin of P42.25, net margin of P40.04 per kilogram was realized.

The usual practice in trading fatteners followed this channel: raiser to IRLA-

LLD-B-SMD to retailers or institutional buyers.

o Raisers’ selling price per kilogram of live hogs was P50.00. Their outlets were the IRLA—LLDs who were at the same time butchers and meat distributors.

o The IRLA-LLDs distributed hogs to buyers outside the province with

marketing cost of P4.43 at P56.00 per kilogram giving them a net profit of P1.57 per kilogram liveweight. When they slaughtered the animals and distributed the carcass to either retailers or institutional buyers, they spent P1.32 per kilogram but earned a bigger net of P11.13 per kilogram of meat.

o On the other hand, when retailers sold meat at P95.00 per kilogram, they

netted P23.89 at the cost of P2.11 per kilogram.

Metro Manila

IRLA-SLD procured the stocks from suppliers outside the province (SOP) at P61.00 per kilogram; sold the animals at P75.00 with P0.09 total expense; and earned a net of P13.91 per kilogram liveweight.

From the slaughterhouse, the retailers incurred a total cost of P2.74 including

the cost of selling to the consumers. Their net earnings averaged P10.01 per kilogram of meat.


Metro Manila 1 10 27 38 Self-financed/owned 1 10 25 36 Borrowed 2 2

Pangasinan 30 5 6 41 Self-financed/owned 30 4 6 40 Borrowed 1 1

Nueva Ecija 29 2 8 3 2 44 Self-financed/owned 29 2 7 3 2 43 Borrowed 1 1

Batangas 30 5 2 12 49 Self-financed/owned 23 5 2 12 42 Sharing 6 6 Borrowed 1 1

Iloilo 24 4 3 1 4 36 Self-financed/owned 23 3 3 4 33 Sharing 1 1 Borrowed 1 1 No capital 1 1

Cebu 20 5 5 13 43 Self-financed/owned 18 5 5 11 39 Sharing 1 1 Incorporation 1 1 Borrowed 2 2

Davao del Sur 12 6 1 2 21 Self-financed/owned 12 1 1 2 16 Borrowed 5 5

Davao City 1 4 1 2 8 Self-financed/owned 1 4 1 2 8

TOTAL 87 25 22 3 58 280

Appendix 2. SWINE: Distribution of respondents by nature of capitalization, by type of marketing participants, by province, Philippines, 2002

AGENT RETAILERPROVINCE/NATURE OF CAPITALIZATION TOTAL




RAISER/ OPERATOR


The retailers took charge of the expenses from procuring live hogs to distributing meat at the wet markets at an average cost of P1.47. With selling price of pork at P110.00 (or P77.00 at liveweight) and by-products at P10.75 per kilogram, retailers gained P20.28 per kilogram.

Iloilo

Figure 25 shows the usual channel practiced in the province, i.e. from the

raisers to the RLA-B-SMD to slaughterhouse to retailers.

o From the farm to the “oksyon” market, at a selling price of P42.25 and totalmarketing cost of P8.68 per kilogram, raisers grossed P33.57.

o RLA-B-SMD shouldered expenses in bringing the animals from the LOM to

the slaughterhouse; and from the slaughterhouse to the wet markets. AtP60.00 (dressweight) or P42.00 (liveweight) and P10.75 per kilogram of by-products, the traders earned a net profit of P9.51 after deducting totalexpenses of P0.99 per kilogram.

o The retailers sold pork at P90.00 but spent P1.68 per kilogram. This gave

them a profit of P28.32 per kilogram.

Commercial raisers in Iloilo usually distribute their stocks directly in Metro

Manila. They shouldered the cost of shipping the animals from the farm to thepier in Manila (Figure 26).

o Bringing swine to Manila entailed a total cost of P9.53 per kilogram

including shipping. At a selling price of P66.00 per kilogram liveweight,raisers earned a gross of P56.47.

o IRLA-B-SMD picked-up the animals from the pier and brought them directly

to the slaughterhouse. They sold meat to the retailers at P88.00(dressweight) or P61.60 (liveweight). After deducting the total cost ofP4.82, they gained P1.53 for every kilogram of meat.

o At a selling price of P110.00 and expenses of P3.80 per kilogram, retailers’

net earning was P18.20 per kilogram.

Cebu

Raisers sold their stock at P56.00 but spent P0.59 per kilogram in selling livehogs to IRLA-SLD.

Bringing the stocks from the LOM to the stockyard or slaughterhouse, IRLA-

SLD spent P0.43 but earned a net margin of P8.57 by selling at P65.00 perkilogram liveweight.


Metro Manila 1 10 27 38Single proprietorship 1 9 26 36Partnership 1 1 2

Pangasinan 30 5 6 41Single proprietorship 28 5 6 39Partnership 2 2

Nueva Ecija 29 2 8 3 2 44Single proprietorship 28 2 8 3 2 43Partnership 1 1

Batangas 30 5 2 12 49Single proprietorship 28 5 2 12 47Partnership 2 2

Iloilo 24 4 3 1 4 36Single proprietorship 22 2 3 1 3 31Partnership 1 2 1 4Corporation 1 1Others

Cebu 20 5 5 13 43Single proprietorship 18 5 4 13 40Partnership 1 1Corporation 2 2

Davao del Sur 12 6 1 2 21Single proprietorship 12 6 1 2 21

Davao City 1 4 1 2 8Single proprietorship 1 4 1 2 8

TOTAL 87 25 22 3 58 280

Appendix 3. SWINE: Distribution of respondents by type of marketing participants, by type of business ownership, by province, Philippines, 2002

AGENT RETAILERPROVINCE/TYPE OF BUSINESS OWNERSHIP TOTAL




RAISER/ OPERATOR

66

Marketing Costs Structure for Swine

Product transformation occurs during the marketing process. An example is swine,

where one kilogram liveweight sold by the farmer does not result in one kilogram of meatbeing sold to consumers. In this case, there is a need to consider the recovery rate and thevalue of the by-products in the estimation of the marketing margins.

The gross and net marketing margins for swine are presented in Table 20 and Figures 22 to 30. The estimates are based on the average buying and selling prices and the average marketing cost of each of the participants in the marketing channel.

Pangasinan

The raiser who sold his stock at P51.00 to an IRLA-LLD spent an average of P5.98 per kilogram liveweight.

The IRLA-LLD brought the animals to the slaughterhouse with total charges of

P7.21 per kilogram including gasoline and meals. At the selling price of P60.00, he netted P1.79 per kilogram.

The retailers who sourced their supply from the slaughterhouse paid for the

services of the butcher and other fees in the slaughterhouse. They incurred a total cost of P6.48 per kilogram of meat. They sold pork at P105.00 (or P73.50 per kilogram liveweight) and by products at P10.75 giving them a net margin of P17.77 per kilogram.

Nueva Ecija

The raiser sold hogs directly to a provincial assembler-butcher-meat distributor

(PLA-B-SMD). His expenses in marketing included other operating and imputed costs that added up to P0.59 per kilogram.

This assembler-distributor picked-up the hogs from the farm, took charge of

slaughtering the animals and distributed the carcasses to the retailers. His total cost was P8.80 per kilogram. At P66.50 per kilogram liveweight of meat and P10.75 value of by-products, PLA-B-SMD earned a net margin of P3.45 per kilogram.

Retailers had a total expenditure of P9.36 per kilogram in buying and selling

pork and the biggest cost items were labor at P5.07 and other operating cost at P2.97. Buying the stocks at P95.00 and selling them at P105.00 per kilogram, yielded a profit of P.64 per kilogram to these retailers.

Batangas

The raisers earned a gross margin of P50.60 in selling live hogs to PLA-LLD at

P51.00 and spent a total cost P0.40 per kilogram. These LLDs distributed the animals to retailers in Metro Manila at P66.00 with

a total cost of P0.91 giving them a net margin of P14.09 per kilogram liveweight.


Metro Manila 1 10 27 38less than 5 3 35 - 10 1 5 12 1811 - 15 3 2 516 - 20 2 4 6more than 20 6 6

Pangasinan 30 5 6 41less than 5 6 3 95 - 10 10 3 1 1411 - 15 8 1 916 - 20 3 1 4more than 20 3 1 1 5

Nueva Ecija 29 2 8 3 2 44less than 5 7 4 1 125 - 10 12 1 1 1 1 1611 - 15 1 1 1 1 416 - 20 5 2 1 8more than 20 4 4

Batangas 30 5 2 12 49less than 5 6 1 1 85 - 10 8 6 1411 - 15 5 1 2 816 - 20 1 1 2more than 20 11 3 1 2 17

Iloilo 24 4 3 1 4 36less than 5 6 1 75 - 10 7 1 3 1111 - 15 1 1 216 - 20 5 2 7more than 20 5 1 2 1 9

Cebu 20 5 5 13 43less than 5 7 1 1 95 - 10 5 3 3 6 1711 - 15 2 1 316 - 20 1 3 4more than 20 6 1 1 2 10

Davao del Sur 12 6 1 2 21less than 5 5 3 1 95 - 10 5 3 1 911 - 1516 - 20 1 1more than 20 2 2

Davao City 1 4 1 2 8less than 5 1 1 25 - 10 1 111 - 15 1 116 - 20 1 1more than 20 1 1 1 3

TOTAL 87 25 22 3 58 280

Appendix 4. SWINE: Distribution of respondents, by type of marketing participants,by length of experience, by province, Philippines, 2002

RAISER/ OPERATOR


PROVINCE/LENGTH OF EXPERIENCE





Iloilo

Traders spent P3.88 per kilogram when distributing swine within Iloilo. Shipping cost for bringing animals to Metro Manila was P8.60 per kilogram.

Cebu

In procuring animals from the areas outside Cebu, traders incurred an average

cost of P3.37 (from Bohol) and P2.84 per kilogram (from General Santos City).If the stocks came from the different barangays within the province, the cost ofbringing the animals to the Livestock Oksyon Market (LOM) was P1.39 perkilogram.

From the LOM to the different trading centers or markets within Cebu province,

traders spent P2.06 per kilogram and P2.70 per kilogram from Cebu to Manilaincluding the cost of shipping.

Davao del Sur

The cost of procuring live hogs from the different supply barangays in Davao

and bringing them to the market was P0.50 per kilogram. When distributed tothe various markets within the province, an average cost of P2.32 per kilogramwas added to the expenses of the traders.

The average cost of shipping the animals to Metro Manila was estimated at

P3.95 per kilogram.


The marketing margin is the difference between the value of a product at one stage and the value of an equivalent product at another stage in the marketing process. The initial step in measuring the marketing margin is to describe the structure of the marketing chain, starting at the farm gate and tracing the product through the various intermediaries until it reaches the final consumer. Second, is to identify and list the various functions that are performed at each stage in the marketing process. The estimation of marketing margin needs price data at which the product is boughtand sold at each stage in the marketing process. On the part of traders, buying price canbe considered an expense. They have to pay for the commodity as the initial investment atprices agreed by both parties, the farmer and the trader.

For products that remain essentially unchanged during the marketing process, thegross margin, which still includes the cost of trading and the risks, is the difference betweenthe price per unit of that product at the farmgate and the retail price per unit when sold to thefinal consumers. The net margin, or the net return, therefore, is the remainder when the totalmarketing costs were subtracted from the total gross margin.


Metro Manila 1 10 27 38 1 - 2021 - 4041 - 60 1 161 - 80 2 2

81 - 100 1 9 25 35Pangasinan 30 5 6 41

1 - 20 1 121 - 40 2 241 - 60 1 161 - 80

81 - 100 26 5 6 37Nueva Ecija 29 3 7 3 2 44

1 - 2021 - 40 1 141 - 60 2 261 - 80 2 1 1 1 5

81 - 100 24 2 6 3 1 36Batangas 30 5 2 12 49

1 - 20 8 1 921 - 40 1 141 - 60 1 161 - 80 1 1

81 - 100 21 5 2 9 37Iloilo 24 4 3 1 4 36

1 - 2021 - 40 3 1 441 - 60 2 2 1 561 - 80 7 7

81 - 100 12 2 1 1 4 20Cebu 20 5 5 13 43

1 - 20 4 421 - 40 3 1 441 - 60 2 1 1 3 761 - 80 3 1 4

81 - 100 8 2 4 10 24Davao del Sur 12 6 1 2 21

1 - 2021 - 40 1 141 - 60 2 1 361 - 80

81 - 100 12 4 1 17Davao City 1 4 1 2 8

1 - 2021 - 4041 - 60 1 161 - 80

81 - 100 1 3 1 2 7

TOTAL 87 25 22 3 58 280

Appendix 5. SWINE: Distribution of respondents, by type of marketing participants,by percentage share to total business, by province, Philippines, 2002

RAISER/ OPERATOR


PERCENTAGE SHARE TO TOTAL

BUSINESS






Metro Manila 1 10 27 38 Picked- up 1 8 13 22 Delivered 2 14 16

Pangasinan 5 6 11 Picked- up 5 6 11

Nueva Ecija 2 8 3 2 15 Picked- up 2 8 3 2 15

Batangas 5 2 12 19 Picked- up 4 2 9 15 Delivered 1 2 3 Both 1 1

Iloilo 4 3 1 4 12 Picked- up 4 3 1 8 Delivered 3 3 Both 1 1

Cebu 5 5 13 23 Picked- up 5 3 2 10 Delivered 1 9 10 Both 1 2 3

Davao Sur 6 1 2 9 Picked- up 6 1 7 Delivered 2 2

Davao City 4 1 2 7 Picked- up 4 1 2 7

TOTAL 25 22 3 58 134

Appendix 6. SWINE:Distribution of respondents, by type of traders,by manner of procurement, by province, Philippines, 2002




AGENT RETAILER TOTALPROVINCE/ MANNER OF PROCUREMENT

From barangay to

market = P0.501

General Santos

Davao


General Santos to Davao = P0.91

Davao to Manila – P3.954

METRO MANILA

Figure 21. Total Marketing Costs for Swine, by Point of Destination, Davao, 2002



Metro Manila 1 10 27 38 Cash 2 12 14 Consignment 2 4 6 Combination 1 6 11 18

Pangasinan 5 6 11 Cash 4 3 7 Delayed Payment 1 1 Combination 1 2 3

Nueva Ecija 2 8 3 2 15 Cash 2 7 3 2 14 Delayed Payment 1 1

Batangas 5 2 12 19 Cash 2 1 7 10 Consignment 3 3 Delayed Payment 1 1 Combination 2 1 2 5

Iloilo 4 3 1 4 12 Cash 4 1 1 4 10 Combination 1 1 Consignment 1 1

Cebu 5 5 0 13 23 Cash 3 4 6 13 Delayed Payment 1 1 6 8 Combination 1 1 2

Davao Sur 6 1 2 9 Cash 6 1 2 9

Davao City 4 1 2 7 Cash 3 1 1 5 Delayed Payment 1 1 2

TOTAL 25 22 3 58 134

Appendix 7. SWINE:Distribution of respondents, by type of traders,by mode of payment in buying stocks, by province, Philippines, 2002




AGENT RETAILER TOTALPROVINCE/MODE OF PAYMENT

From barangay to market = P1.394

General Santos

Cebu

Bohol


General Santos to Cebu = P2.84

Bohol to Cebu = 3.37

Cebu to Manila – P2.704

METRO MANILA

Figure 20. Total Marketing Costs for Swine, by Point of Destination, Cebu, 2002

70



Iloilo

Metro Manila

Within Iloilo = P3.88

Iloilo to Metro Manila

= P8.60

Figure 19. Average Marketing Costs for Swine, by Point of Destination, Iloilo, 2002

Metro Manila 1 10 27 38 Picked- up 5 26 31 Delivered 1 2 1 4 Both 3 3

Pangasinan 30 5 6 41 Picked- up 30 5 6 41 Delivered Both

Nueva Ecija 29 2 8 3 2 44 Picked- up 28 1 7 3 2 41 Delivered 1 1 2 Both 1 1

Batangas 30 5 2 12 49 Picked- up 30 3 1 12 46 Delivered 2 1 3

Iloilo 24 4 3 1 4 36 Picked- up 15 3 2 1 4 25 Delivered 6 1 1 8 Both 3 3

Cebu 20 5 5 13 43 Picked- up 14 2 5 13 34 Delivered 4 3 7 Both 2 2

Davao Sur 12 6 1 2 21 Picked- up 12 4 1 2 19 Delivered 2 2

Davao City 1 4 1 2 8 Picked- up 1 3 2 6 Delivered 1 1 2

TOTAL 146 32 36 6 60 280

TOTAL

Appendix 8. SWINE:Distribution of respondents, by type of marketing participants, by mode of delivery, by province, Philippines, 2002


RAISER/ OPERATOR



AGENT RETAILERPROVINCE/MODE OF DELIVERY



Batangas to Metro Manila=

P6.34

Batangas

Within Batangas -Batangas City P3.18 -Bauan P2.51 -Lemery P2.75

Barangay to Market

P4.24

Metro Manila

Figure 18. Average Marketing Costs for Swine, by Point of Destination, Batangas, 2002

Metro Manila 1 10 27 38 Cash 2 16 18 Delayed Payment 11 11 Combination 1 8 9

Pangasinan 30 5 6 41 Cash 27 4 4 35 Combination 3 1 2 6

Nueva Ecija 29 2 8 3 2 44 Cash 27 2 7 3 2 41 Delayed Payment/Credit 1 1 2 Both 1 1

Batangas 30 5 2 12 49 Cash 17 3 1 7 28 Consignment 4 4 Delayed Payment/Credit 3 3 Combination 6 2 1 5 14

Iloilo 24 4 3 1 4 36 Cash 21 3 2 1 4 31 Delayed Payment/Credit 1 1 Consignment 1 1 2 Both 1 1 Bank to Bank 1 1

Cebu 20 5 5 13 43 Cash 16 2 2 7 27 Delayed Payment 1 2 3 Combination 3 1 3 6 13

Davao Sur 12 6 1 2 21 Cash 12 1 2 15 Consignment 1 1 Delayed Payment 2 2 Combination 2 1 3

Davao City 1 4 1 2 8 Cash 1 1 2 Consignment 1 1 Delayed Payment 2 1 3 Combination 2 2

TOTAL 146 32 36 6 60 280

Appendix 9. SWINE:Distribution of respondents, by type of marketing participants, by terms of payment, by province, Philippines, 2002


RAISER/ OPERATOR



AGENT RETAILER TOTALPROVINCE/TERMS OF PAYMENT



Metro Manila & Bulacan

Nueva Ecija

Within Nueva Ecija = P13.38

Nueva Ecija to Metro Manila & Bulacan

= P11.39

Figure 17. Average Marketing Costs for Swine, by Point of Destination, Nueva Ecija, 2002

Within the province Outside the province Within the province Outside the province

Metro Manila Taguig, Muntinlupa City, Batangas, Bulacan, Muntinlupa City, Rizal, CaviteLas Pinas, Pasig City, Laguna, Rizal Las Pinas, Paranaque,Quezon City, Makati City Nueva Ecija, Quezon, Marikina City,

General Santos, Davao Quezon City, Caloocan,Pasig City, Pasay City

Pangasinan Malasiqui, Villasis, Malasiqui, Sta. Barbara, Baguio City, Ilocos Sur,Mangatarem Dagupan City, Calasiao, Ilocos Norte, Tarlac,

Mangaldan, Mapandan, Pampanga, Metro ManilaSan Carlos City, Villasis,Lingayan, Bayambang

Nueva Ecija Sta. Rosa, Cabanatuan, Pangasinan, Bulacan Sangitan market, Isabela, Pampanga,Jaen, Talavera, San Cabanatuan City, Munoz, Metro ManilaLeonardo, Bongabon, Bongabon, San Jose CityGabaldon, Aliaga, Aduas,Laur, San Antonio,Caalibangbangan

Batangas Lipa City, Rosario, Lemery, Quezon Batangas City, Pasig City, Cavite, Batangas City, Bauan, Bulacan and Nueva Tanauan, Lemery, Paranaque, Pasay City,Padre Garcia Ecija (piglets) San Luis, Agoncillo, Laguna, Bulacan,

Taal Marikinaand Metro Manila

Iloilo Janiuay, Leon, Guimbal, Janiuay, Leon, Metro ManilaIloilo City Guimbal, Iloilo City

Cebu Bogo, Montalongon, Bohol, General Santos Mandaue City, Ronda, Barili, Malbual, City, Lanao Norte, Davao Cebu City, Montalongon,San Antonio, Danao City, Talisay, Carcar, Talamban,Asturias, Consolacion, Danao CityLiloan, Dumanjug, Carcar,Sibonga, Argao,Compostela

Davao del Sur General Santos Sta. Cruz Davao City, Cebu

Davao City Malingon, Toril, Calinan, Davao Sur, Saranggani, Bangkerohan Cebu CityBanate, Tibungco, Davao NorteBunaw an Miral

Bansalan, Sta. Maria, Sta. Cruz, Padada, Hagonoy, Malita, Matanao, Magsaysay, Sulop, Digos, San Isidro, Kibongbong, Manual, San Jose

SOURCE DESTINATION

Appendix 10. SWINE: Major sources and destinations, by province,Philippines, 2002

PROVINCE



Pangasinan

Illocos Sur

Benguet

Within Pangasinan

= P8.79

Barangay to LOM = P6.26

Pangasinan to Benguet =

P8.60 Pangasinan to Ilocos Sur

= P7.22

Figure 16. Average Marketing Costs for Swine, by Point of Destination, Pangasinan, 2002

IRLA-B- IRLA-B-

LMD SMD


Pre-distribution Slaughtering 1.338 0.831 0.531


TOTAL 1.505 1.171 2.322

Appendix 11a. SWINE (Live): Labor costs incurred by marketing participants, by activity/practice, Metro Manila, 2002

RETAILER



Procurement Hauling 0.167 0.08 Handling Loading 0.106 0.31 0.24 0.05 0.041 0.07 0.09 Unloading 0.106 0.31 0.25 0.05 0.041 0.07 0.09 Slaughtering 0.96 1.08 Chopping/Slicing 0.19

Shipping Arrastre 0.06 0.46 Convoy 0.899

Distribution Hauling 1.02 Feeding and cleaning of pens 0.074 Slaughtering a/ 0.25 1.008 2.21 Handling Loading 0.748 0.085 Unloading 0.748 0.085 Selling 0.09


TOTAL 1.819 1.290 1.800 0.210 5.598 2.790 1.350

a/ includes slicing, chopping and weighing

Appendix 11. SWINE (Live): Labor costs incurred by marketing activity/practice,by province, Philippines, 2002


METRO MANILA BATANGAS ILOILO CEBU DAVAO


PANGASINANNUEVA ECIJA

74



The succeeding charts and table (Figures 16-21 and Table 19) present the averagecosts incurred by the respondents in bringing the commodity from the source to its ultimatedestination.

Pangasinan

The raisers spent P6.26 per kilogram in bringing live hogs from the farm to the

“Oksyon” market. When the animals were traded within the province, marketingcosts amounted to P8.79.

Traders who brought the animals to Ilocos Sur incurred marketing expense of

P7.22 while those trading live hogs in Benguet spent P8.60 for every kilogram. Nueva Ecija

The distribution of swine within the province entailed marketing cost of P13.38per kilogram.

Traders who brought the animals to Bulacan or Metro Manila have a lower

marketing expenditure amounting to P11.39 per kilogram. Batangas

From the supply barangays to the market, the average cost was P4.24 per

kilogram. In distributing the animals to Batangas City, Bauan and Lemery, thetraders spent P3.18, P2.51 and P2.75, respectively.

The average cost of bringing hogs to Metro Manila was P6.34 per kilogram.


Pre-marketing Handling Loading 0.31 Unloading 0.31 Hauling 0.08

Distribution Slaughtering 0.25 Selling 0.09


TOTAL 0.25 0.17 0.87

MLA-B-SMD


Appendix 11b. SWINE (Live): Labor costs incurred by marketing participants, by activity/practice, Pangasinan, 2002

MARKETING ACTIVITY/PRACTICE IRLA-LLD MLA-SLD


RAISER/ OPERATOR PLA-LLD

RLA-B-LMD

RLA-B-SMD

PLA-B-LMD

PLA-B-SMD

MLA-B-SMD AGENT RETAILER

Procurement

Handling

Loading 0.08 0.28 0.23 0.44 0.33 0.05 0.31

Unloading 0.08 0.28 0.23 0.44 0.33 0.05 0.31

Slaughtering 1.00 1.00 1.17 1.00 1.21 1.10

Salaries & Wages 0.12 0.33

TOTAL 0.12 0.49 1.55 1.46 2.05 1.66 1.21 0.10 1.72

* includes loading & unloading

Appendix 11c. SWINE (Live): Labor costs incurred by marketing participants,by activity/practice, Nueva Ecija, 2002


Cash Costs 10.5 9.7 17.97 4.08 4.66 10.55 1.77

Labor 2.79 1.16 3.98 1.44 2.05 1.53 0.52 Transportation 0.46 - 0.31 0.29 1.40 0.41 0.23 Material Inputs 0.34 1.07 0.30 0.89 0.08 0.37 0.52 Other Operating Expenses 6.91 7.47 13.38 1.46 1.13 8.24 0.50

Non-cash Costs 3.51 0.85 1.29 0.41 0.23 0.58 0.09

Depreciation 1.71 0.17 0.46 0.06 0.23 0.04 0.09 Labor 1.80 0.68 0.83 0.35 - 0.54 -

TOTAL 14.01 10.55 19.26 4.49 4.89 11.13 1.86


Table 18b. SWINE (Slaughtered): Total marketing costs, by province, 2002

ITEMMETRO MANILA

PANGA-SINAN


Total Marketing Costs

Live

In the supply areas in Luzon, average costs in marketing live hogs ranged fromP6.36 in Batangas to P8.13 in Pangasinan.

In Visayas, marketing cost was highest in Iloilo at P12.89 followed by Cebu at


Respondents in Davao spent an average of P8.36 in buying and selling of livehogs.

Slaughtered

Pork trading was more costly than trading live hogs as shown in marketingcosts incurred by the respondents from Metro Manila (P14.01), Pangasinan(P10.55) and Nueva Ecija (P19.26).

Traders in Batangas and Iloilo spent P4.49 and P4.89 per kilogram,

respectively, in procuring and distributing pork. In Cebu, equal amount was required in trading live and slaughtered animals at


Davao respondents have the lowest estimate of trading expenses at P1.86.



Distribution

Handling 0.10 0.12


TOTAL 0.18 0.15 0.12


Appendix 11d. SWINE(Live): Labor costs incurred by marketing participants, by activity/practice, Batangas, 2002

MARKETING ACTIVITY/PRACTICE RETAILERPLA-LLD MLA-LLD

RLA-B- PLA-BSMD SMD

Procurement Handling Loading 0.153 0.342 0.036 0.165 Unloading 0.153 0.342 0.036 0.165

Shipping Arrastre 0.060 Convoy 0.899

Distribution Hauling 1.020 Feeding and cleaning of pens 0.074 Slaughtering/Slicing/w eighing 1.429 0.982 0.538 1.619 Handling 1.496 Selling


TOTAL 2.449 2.761 0.684 1.941 0.609 2.022

Appendix 11e. SWINE (Live): Labor costs incurred by marketing participants,by activity/practice, Iloilo, 2002


RAISER/ OPERATOR

PLA-LLD PLA-MLD PLA-SLDMARKETING ACTIVITY/PRACTICE

Cash Costs 4.61 7.26 5.69 5.97 11.82 9.30 7.55

Labor 1.82 1.29 1.80 1.22 5.6 2.81 1.35 Transportation - 0.08 0.81 1.19 2.18 1.31 3.91 Material Inputs - 0.12 0.18 - 1.21 0.3 0.2 Other Operating Expenses 2.79 5.77 2.9 3.56 2.83 4.88 2.09

Non-cash Costs 0.83 0.87 0.88 0.39 1.07 1.83 0.81

Depreciation 0.12 0.78 0.38 0.39 0.84 1.83 0.81 Labor 0.71 0.09 0.50 - 0.23 - -

TOTAL 5.44 8.13 6.57 6.36 12.89 11.13 8.36


Table 18a. SWINE (Live): Total marketing costs, by province, 2002

BATANGAS ILOILO CEBU DAVAOITEMMETRO MANILA

PANGA-SINAN

NUEVA ECIJA


Slaughtered

The imputed cost was P3.51 per kilogram in Metro Manila, the highest among the areas covered.

The next with higher imputed cost was gathered in Nueva Ecija at P1.29.

Traders in other areas have total imputed cost from P0.09 (Davao) to P0.85 (Pangasinan).


Procurement Handling Loading 0.05 0.05 0.13 0.10 0.20 Unloading 0.05 0.05 0.13 0.10 0.20 Chopping a/ 0.19

Distribution Slaughtering 2.21


TOTAL 2.56 0.10 0.10 0.26 0.20 0.80

a/ include chopping and slicing


Appendix 11f. SWINE (Live): Labor costs incurred by marketing participants,by activity/practice, Cebu, 2002


RAISER/ OPERATOR

PLA-LLD BLA - SLD RLA-B-SMD PLA-B-SMD RETAILER



Procurement

Handling 0.25 0.43 0.16 0.07 0.03 0.14

Shipping

Arrastre 0.46

Distribution

Handling 0.13 0.40 0.16 0.07 0.03 0.14

Salaries and Wages 0.99 0.09 0.40 0.48 0.48

TOTAL 0.84 0.99 0.92 0.40 0.32 0.14 0.48 0.48 0.06 0.28

Appendix 11g. SWINE (Live): Labor costs incurred by marketing participants,by activity/practice, Davao, 2002


MARKETING ACTIVITY/ PRACTICE

ITEMMETRO MANILA

PANGA-SINAN


Material Used - - - - 0.004 0.003 -Equipment 0.002 0.015 0.015 0.02 0.02 0.02 0.004Facilities - 0.001 - - 0.01 0.05 -Transportation 0.12 0.76 0.37 0.37 0.81 1.56 0.81Labor 0.71 0.09 0.50 - 0.23 - -

TOTAL 0.83 0.87 0.88 0.39 1.07 1.63 0.81


Table 17a. SWINE (Live): Imputed cost of depreciation/labor incurred by respondents,by cost item, by province, 2002

ITEMMETRO MANILA

PANGA-SINAN


Material Used 0.031 0.007 0.01 0.014 0.006 0.011 0.02Equipment 0.105 0.163 0.256 0.046 0.057 0.03 0.073Facilities 1.436 - - - - - -Transportation 0.14 - 0.20 - 0.17 - -Labor 1.802 0.68 0.83 0.35 - 0.54 -

TOTAL 3.51 0.85 1.29 0.41 0.23 0.58 0.09


Table 17b. SWINE (Slaughtered): Imputed cost of depreciation/labor incurred by respondents, by cost item, by province, 2002


Imputed Costs

This study computed the depreciation costs for materials, facilities and transportation items used in swine marketing. It also included the estimated value of the work performed by the family/operator.

Live

There were trader-respondents in Metro Manila, Pangasinan, Nueva Ecija and

Iloilo who utilized family members in trading live hogs which cost them an average imputed amount of P0.71, P0.09, P0.50 and P0.23 per kilogram, respectively.

Total imputed cost was highest in Cebu at P1.63 and lowest in Batangas at

P0.39.


ITEM PANGASINAN NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO

Procurement 0.08 0.81 0.80 0.58 0.33

Shipping 1.425 3.13

Distribution 0.39 0.75 0.32 0.45

TOTAL 0.08 0.81 1.19 2.175 0.90 3.91

Appendix 12. SWINE (Live): Transportation costs incurred by marketingactivity/practice, by province, Philippines, 2002



TOTAL 0.08 0.07

MLA-SLD PLA-B-SMD

Appendix 12a. SWINE (Live): Transportation costs incurred by marketing participants, by activity/practice, Pangasinan, 2002

ITEM

ITEMMETRO MANILA

PANGA-SINAN


Permits/licenses 0.57 0.04 0.01 0.07 0.01 0.07 0.06Fees 0.786 0.177 0.063 0.42 0.43 0.72 -Rentals 1.48 - 0.05 0.03 0.11 0.15 0.09Utilities 0.30 0.07 0.18 0.30 0.05 0.17 0.34Gas and oil 0.97 - 0.11 0.29 0.24 - 0.01Meals and beverages 0.061 - 0.25 0.13 0.12 0.23 -Agent's commission - - - - - - -Shipping - - - - - - -Repair and maintenance 0.035 0.016 - - 0.185 - -Interest on loan 0.23 - - - - - -Services 0.48 - - - - - -Wastage 2.00 7.17 12.72 0.19 - 6.90 -Others - - - 0.03 - - -

TOTAL 6.91 7.47 13.38 1.46 1.13 8.24 0.50


Table 16b. SWINE (Slaughtered): Other operating costs incurred by respondents,by cost item, by province, 2002



Total 1.40 0.21

peso per kg.(liveweight)

Appendix 12b. SWINE (Live): Transportation costs incurred by marketing participants, by activity/practice, Nueva Ecija, 2002

78


Live The average operating cost was highest in Pangasinan at P5.73, followed by

Cebu at P4.88 and Batangas at P3.56 per kilogram.

In Metro Manila, traders needed P2.80 per kilogram to cover miscellaneous expenses.

Traders from other areas incurred P2.74 (Nueva Ecija), P3.31 (Iloilo) and P2.16 (Davao).

Slaughtered

Trading of slaughtered hogs required a minimum of P0.50 and a maximum of P13.38 per kilogram of meat to cover the other operating expenses.

Wastage contributed a significant amount particularly in Metro Manila,

Pangasinan, Nueva Ecija and Cebu.

Other items like fees, rentals, utilities, gas and oil, meals and beverages amounted to less than a peso.


Procurement 0.11 0.84 0.82


TOTAL 0.26 0.73 0.29 0.84 0.82

Appendix 12c. SWINE(Live): Transportation costs incurred by marketing participants,by activity/practice, Batangas, 2002


MLA-B-SMD RETAILERPLA-SLDMARKETING

ACTIVITY/PRACTICE MLA-LLD PLA-LLD

Procurement 0.92 0.72 0.92 1.81 0.61 0.45 0.54

Distribution 0.32

TOTAL 0.32 0.92 0.72 0.92 1.81 0.61 0.45 0.54


RLA-B- SMD

PLA-B- SMD

BLA-SLD BLA-B- SMD

RETAILERPLA-LLD MLA-SLD

Appendix 12e. SWINE (Live): Transportation costs incurred by marketing participants,by activity/practice, Cebu, 2002


METRO MANILA

PANGA-SINAN


0.06 0.07 0.54 0.01 0.18 0.02 0.081.27 2.14 0.57 1.74 0.736 2.16 1.27

- 0.35 0.04 - 0.01 0.14 -0.03 0.12 0.06 0.12 0.24 0.03 0.210.40 0.65 0.62 0.29 0.24 0.27 0.06

- 0.42 0.27 - 0.41 0.06 0.371.00 - 0.62 0.68 0.44 0.90 0.06

- - - - 0.013 - -0.035 1.85 0.18 - 0.346 - -

- 0.16 - - 0.22 - -- - - - - - -- - - 0.69 - 1.30 -- 0.006 - 0.03 - - 0.04

2.79 5.77 2.90 3.56 2.83 4.88 2.09


ServicesShrinkage

Gas and oilMeals and beveragesAgent's commissionShipping

Table 16a. SWINE (Live): Other operating costs incurred by respondents,by cost item, by province, 2002

Repair and maintenanceInterest on loan

Permits/licensesFeesRentalsUtilities

ITEM

Others

TOTAL

Shipping 1.425 Distribution 1.04 0.748

TOTAL 1.04 2.173

Php/kg.(liveweight)

Appendix 12d. SWINE (Live): Transportation costs incurred by marketing participants, by activity/practice, Iloilo, 2002

RAISER/ OPERATOR ITEM PLA-LLD

Slaughtered

When buying slaughtered hogs (or meat), traders in Cebu spent a minimal amount of P0.003 for material inputs.

In selling, however, the average costs for materials ranged from P0.08 (Iloilo)

to P1.07 per kilogram (Pangasinan).

Other Operating Costs

Marketing participants also incurred other operating expenses which included business permit/license, market fee, electricity, telephone, water, gas and oil, cell cards, etc. It also covered expenses for meals and beverages while transporting the commodity. Other items with the corresponding amount of cost incurred are enumerated in Tables 16a and 16b.



RAISER- IRLA-LLD- RLA- PLA- RLA- PLA- MLA- BLA- BLA-

OPERATOR B-SMD LLD LLD SLD SLD LLD LLD B-MR

Procurement 0.36 0.69 0.08 0.19 0.31

Shipping 3.13

Distribution 1.00 0.21 0.40 0.02 0.69 0.08 1.02 0.19

TOTAL 1.00 3.70 0.40 0.02 1.38 0.16 1.02 0.38 0.31


ITEM

Appendix 12f. SWINE (Live): Transportation costs incurred by marketing participants,by activity/practice, Davao, 2002

Procurement - 0.12 0.18 - 0.21 0.09 0.20Distribution - - - - 0.29 0.21 -

TOTAL - 0.12 0.18 - 0.50 0.30 0.20



Table 15a. SWINE (Live): Cost of material inputs by marketing activity/practiceby province, 2002

DAVAOACTIVITY/PRACTICEMETRO MANILA

PANGA-SINAN

NUEVA ECIJA

Procurement - - - - - 0.003 -Distribution 0.34 1.07 0.30 0.89 0.08 0.37 0.52

TOTAL 0.34 1.07 0.30 0.89 0.08 0.37 0.52

CEBU

Table 15b. SWINE (Slaughtered): Cost of material inputs by marketing activity/practiceby province, 2002

DAVAO



PANGA-SINAN

NUEVA ECIJA BATANGAS ILOILO

ITEM PANGASINAN NUEVA ECIJA ILOILO CEBU DAVAO

PROCUREMENT Feeds/rice bran 0.16 0.204 0.09 0.15 Crate 0.003Drum 0.012 0.002Ladder 0.002Rope 0.04 0.001 0.002 Container 0.001Bamboo 0.004 Kaing 0.04 Brooms 0.001Basin 0.003Hose 0.07 0.015Pail 0.002 0.003

DISTRIBUTION Ropes 0.05 0.21Feeds 0.24

TOTAL 0.124 0.182 0.503 0.30 0.196


Appendix 13. SWINE (Live): Cost of material inputs incurred by marketingparticipants, by activity/practice/item,



Slaughtered

Trader-respondents from Metro Manila, Batangas and Cebu paid P0.46, P0.29 and P0.41 per kilogram, respectively for transportation during their procurement activities. In this case, traders let their buyers picked up the goods from their location.

On the other hand, traders from Nueva Ecija incurred transport cost of P0.31

during distribution only.

Respondents from Iloilo and Davao were charged a total of P1.40 and P0.23 per kilogram, respectively, for transporting slaughtered animals.

Material Inputs

Swine trading required some material inputs. In buying, the materials used were crates, drum, ladder, feeds, rope and containers. In selling, rope, feeds, sacks and plastic bags were used. Tables 15a and 15b present the materials used and the corresponding costs for live and slaughtered animals, respectively.

Live In Pangasinan, Nueva Ecija and Davao, trader-respondents used some

materials with costs ranging from P0.12 to P0.20 per kilogram for the procurement of live hogs.

Traders from Cebu and Iloilo spent much higher at P0.30 and P0.50 per

kilogram because they used those material inputs both in the procurement and distribution processes.

Trader-respondents from Metro Manila and Batangas did not require material inputs in trading live animals.


DistributionDrum 0.012 Pail 0.030 0.001 0.001 Rope 0.110 0.080 a/ Plastic hose 0.07

TOTAL 0.210 0.093 0.001


Appendix 13a. SWINE (Live): Costs of material Inputs incurred by marketing participants, by item, Pangasinan, 2002

ITEM RAISER/ OPERATOR IRLA-LLD MLA-B-SMD

Procurement Feeds 0.173 0.111 0.231 0.122

Brooms 0.001 Basin 0.004 0.002 Hose 0.015Pail 0.003

TOTAL 0.195 0.111 0.231 0.003 0.122 a/ less than 0.001


Appendix 13b. SWINE (Live): Costs of material Inputs incurred by marketing participants, by item, Nueva Ecija, 2002

ITEM BLA-SLD PLA-LLD RLA-B-LMD RLA-B-SMD PLA-B-LMD

Procurement Crate 0.003 Drum 0.001 0.004 Ladder 0.002 Feeds/rice bran 0.662 0.089 Rope 0.003 a/ Container 0.001 Distribution Rope 0.050 Feeds 0.240

TOTAL 0.290 0.006 0.662 0.008 0.089

Appendix 13c. SWINE (Live): Cost of material inputs incurred by marketing participants,by item, Iloilo, 2002

peso per kilogram (liveweight) PLA-B-SMD ITEM RAISER/

OPERATOR PLA-LLD PLA-MLD PLA-SLD



Procurement 0.456 - 0.29 0.75 0.41 0.04Distribution - 0.31 - 0.645 - 0.19

TOTAL 0.46 0.31 0.29 1.395 0.41 0.23

Table 14b. SWINE (Slaughtered): Transportation costs by marketingactivity/practice, by province, 2002


In procuring meat, traders in Metro Manila, Nueva Ecija, Batangas and Davao

incurred P1.06, P0.86, P0.12 and P0.11 per kilogram for labor.

Labor costs ranging from P0.66 to P2.34 were borne by traders in the distribution of every kilogram of pork.

Transportation

Transportation was a major consideration in moving the commodity from point to point and from one participant to another. The cost depends on the distance and destination of the commodity.

Live

Shipment of live hogs from Iloilo and Davao required average costs of P1.43 and P3.13 per kilogram, respectively.

Average cost of transferring hogs from the source to their destination ranged from P0.08 to P3.91 per kilogram.



Procurement 1.06 - 0.86 0.12 - - 0.11Distribution 1.25 0.66 2.34 1.01 0.72 1.10 0.10Salaries and Wages 0.48 0.50 0.78 0.31 1.33 0.43 0.31

TOTAL 2.79 1.16 3.98 1.44 2.05 1.53 0.52


PANGA-SINAN



Table 13b. SWINE (Slaughtered): Labor costs by marketing activity/practice, by province. 2002

PROCUREMENT Feeds 0.10 0.08

DISTRIBUTION Ropes 0.21

TOTAL 0.21 0.10 0.08

Appendix 13d. SWINE(Live): Cost of material inputs incurred by marketing participants, by item, Cebu, 2002


ITEM RAISER/ OPERATOR BLA - SLD PLA-B- SMD

Procurement Rope 0.002 0.002

Bamboo 0.002 0.007

Kaing 0.040

Feeds 0.150

TOTAL 0.150 0.004 0.049

Appendix 13e. SWINE (Live): Costs of material Inputs incurred by marketing participants, by item, Davao, 2002


ITEM RLA-SLD PLA-SLD MLA-LLD

ACTIVITY/PRACTICE PANGASINANNUEVA ECIJA BATANGAS ILOILO CEBU DAVAO

Procurement 0.08 0.81 0.80 - 0.58 0.33Shipping - - - 1.43 - 3.13Distribution - - 0.39 0.75 0.32 0.45

TOTAL 0.08 0.81 1.19 2.18 0.90 3.91

Table 14a. SWINE (Live): Transportation costs by marketingactivity/practice, by province, 2002


82


Marketing Costs

Marketing of swine from the farm level up to retail level entailed a lot of costs which included labor, transportation, material inputs, other operating expenses and depreciation. The succeeding topics described the expenditure items and the corresponding cost as borne by the marketing participants in the transfer of the commodity from the farmer to the retailer. The items maybe similar among certain level of marketing participants but the amount varied depending on the extent of business operations.

Labor

The activities performed in the process of procuring live hogs from the farm included handling (loading/unloading to/from the truck/vehicle). During internal operations, feeding and cleaning of pens were done by some traders. Hauling, handling, slaughtering and selling were the activities performed in the distribution process that entailed corresponding cost.

Live Labor costs ranged from P0.21 (Batangas) to P5.60 per kilogram liveweight

(Iloilo).

Traders in Iloilo spent relatively highest labor cost which included shipping cost at P0.96, distribution cost at P3.60 and salaries and wages at P0.96.

Cebu traders ranked second with cost averaging P2.79 per kilogram which contributed largely by P2.21 paid by raisers for slaughtering fees and services.

The costs of labor in Metro Manila, Pangasinan, Nueva Ecija and Davao were recorded at less than P2.00 per kilogram liveweight.

Slaughtered

The highest cost of labor in marketing swine was recorded in Nueva Ecija at P3.98 per kilogram while the lowest was in Davao at P0.52 per kilogram of meat.


Procurement 1.34 0.70 1.57 0.10 0.08 0.33 0.18Shipping - - - - 0.96 0.02 0.46Distribution - 0.34 - - 3.6 2.21 0.17Salaries and Wages 0.48 0.25 0.23 0.11 0.96 0.25 0.54

TOTAL 1.82 1.29 1.80 0.21 5.60 2.81 1.35

ILOILO CEBU DAVAOACTIVITY/PRACTICEMETRO MANILA

PANGA-SINAN

NUEVA ECIJA

Table 13a. SWINE (Live): Labor costs by marketing activity/practice, by province, 2002

BATANGAS


ITEM METRO MANILA



Business permit 0.058 0.07 0.03 0.01 0.014 0.02 0.01Barangay permit c/ 0.02 0.25 0.01Transport permitMarket fee b/ 0.121 0.04 0.03Weighing scale rental 0.04Inspection fee 0.22Coral fee 0.22 0.030Electricity 0.235Occupancy fee 0.06Slaughter housefee 0.359 1.88Slaughter fee 0.741 0.57 1.11 0.300 1.48 0.93Branding feeCalibration of w eighing scaleGarbage/Sanitary permit 0.26Water 0.03 0.01 0.04Gas and oil 0.40 0.65 0.62 0.29 0.398 0.27 0.37Meals and beverages d/ 0.42 0.27 0.393 0.06 0.11Weighing fee 0.133 0.13 0.11 0.163 0.06Tollgate fee 0.04 0.02Branding fee 0.07Agent's commission 1.00 0.62 0.68 0.438 0.90 0.06Cellcard 0.06 0.03 0.12 0.049 0.03Wastage/Shrinkage 0.69 0.574 1.30Others e/ 0.006 0.03 0.02Holding pen rental 0.35 0.14Telephone 0.03 0.006 0.118 0.02 0.14Entrance/exit fee 0.06 0.46Stockyard fee 0.022 0.18 0.29Repair and maintenance 0.035 1.85 0.018 0.009Interest on loan 0.16 0.337Gun license fee 0.077Vehicle registration fee 0.025Wharfage 0.012Travel permit 0.06Residence certif icate

TOTAL 2.795 5.732 2.738 3.560 3.315 4.880 2.160

a/ less than o.oo1b/ includes ticket and cash ticketc/ includes local taxd/ includes cigarrettes, rice supplye/ includes tong, revolutionary tax, dropping fee

Appendix 14. SWINE (Live): Other operating costs incurred by respondents,by activity/practice/item, by province, Philippines2002





IB-RETAILER

IRLA-B-SMD

CONSUMER

SLAUGHTERHOUSE

IRLA-B-LMD

IRLA-SLD

SOP

Legend:

- live

- meat

Figure 15. Marketing Channels for Swine in Metro Manila, 2002


Telephone 0.033 0.026

Weighing fee 0.133

Slaughterhouse fee 0.318 1.400

Slaughter fee 1.000 0.682

Tollgate fee 0.039

Agent's commission 1.000

Gas and oil 0.223 0.567

Repair and maintenance 0.035 0.056 0.005

TOTAL 0.035 1.256 2.746 1.538


Appendix 14a. SWINE (Live): Other operating costs incurred by marketing participants, by cost item, Metro Manila, 2002

ITEM IRLA-SLD IRLA-B-LMD IRLA-B-SMD Retailer

ITEM RAISER/ OPERATOR IRLA-LLD MLA-SLD PLA-B-

SMDMLA-B-

SMD

Gas and oil 0.702 0.887 0.348Meals and beverages 0.418Entrance fee 0.081 0.036Weighing of live hogs 0.132Branding at LOM 0.197 0.020Barangay permit 0.500 0.002 0.018 Revolutionary tax 0.001Business permit/license 0.062 0.038Holding pen 0.353Cell cards 0.088 0.033 Telephone 0.005 0.007Tong 0.005 Slaughterhouse fee 1.875 Interest on capital 0.160Repair and maintenance 1.850

TOTAL 0.655 3.543 1.931 0.887 0.802

Appendix 14b. SWINE (Live): Other operating costs incurred by marketing participants,by item, Pangasinan, 2002



84



IRLA-MLD/RLA-

SLD/PLA-LLD/PLA-SLD/MLA-

LLD/MLA-SLD

IRLA-LLD-B-SMD/

BLA-LLD/RLA-LLD

Demand Areas

Supply Areas

Figure 14. Marketing Channels for Swine in Davao, 2002

AGENT

PLA-LLD-B-MR

B/MR

BOP

CONSUMER

RAISER


PLA-LLD

BLA-SLD

RLA-B-LMD

RLA-B-SMD

PLA-B-LMD

PLA-B-SMD

MLA-B-SMD

AGENT RETAILER

Business permit 0.092 0.01 0.02 0.005 0.02 0.01Sanitary fee 0.27 0.25 0.26 0.279 0.242 0.246Water 0.022 0.043Slaughter fee 0.675 0.063 0.742 0.697 0.606 0.615Agent's commission 0.676 0.573Weighing scale rental 0.013 0.066Barangay permit 0.25Repair and maintenance 0.018Cell card 0.034Gas and oil 0.017 1.777 0.5 0.28 0.63 0.65 1.212 0.312Meals and beverages 0.577 0.066

TOTAL 0.017 2.468 0.543 1.924 1.213 2.248 1.062 2.070 0.100 1.173

Appendix 14c. SWINE (Live): Other operating costs incurred by marketing participants, by item, Nueva Ecija, 2002



MLA-LLD

PLA- LLD

PLA-SLD

IRLA-B-LMD

MLA-B-SMD

RETAILER

Business permit 0.01 0.002Inspection fee 0.22Coral fee 0.22Occupancy fee 0.06Slaughter fee 1.11Gas and Oil 0.19 0.81 0.15 0.29Weighing fee 0.18 0.06 0.13Tollgate fee 0.02Agent's commission 0.71 0.67Cellcard 0.06Shrinkage 0.69Others a/ 0.02

TOTAL 1.77 0.88 0.28 0.292 0.77 0.06 1.55

a/ includes payment for the use of road in San Jose and tong


Appendix 14d . SWINE (Live): Other operating costs incurred by marketing participants, by item, Batangas, 2002



RAISER

RETAILERS

BLA-B-SMD/ IRLA-SLD

PLA-B-

SMD/BLA-B-SMD

AGENT

BLA-SLD

LOM

Figure 13. Marketing Channels for Swine in Cebu, 2002

SOP

MLA-SLD

AGENT

COOP

RLA-B-SMD

BOP

STOCKYARD

SLAUGHTERHOUSE

CONSUMERS

INSTITUTIONAL BUYERS

Legend:

- live

- meatITEM RAISER/ OPERATOR

PLA-LLD PLA-MLD

PLA-SLD RLA-B-SMD

PLA-B-SMD

AGENT RETAILER

Business permit 0.042 0.006 Cash ticket 0.121 Agent's commission 0.488 0.184 0.457 Weighing fee 0.160 0.230 0.133 Local tax 0.051 Cellcard 0.008 0.023 Repair and maintenance 0.938 0.007 0.036 0.003 Interest on loan 0.337 Meals and beverages 0.500 0.188 0.429 0.095 0.118 Gas and oil 0.200 0.261 0.307 0.114 0.235 Electricity and w ater 0.235 Telephone 0.118 Gun license fee 0.077 Stockyard fee 0.022 Stall rental Vehicle registration fee 0.025 Wharfage fee 0.012 Cigarettes 0.176 LOM exit fee Inspection fee Shrinkage 0.574 Permit fee to slaughter 0.081 0.170 Slaughter fee 0.300 0.300 Post mortem fee Corral fee 0.022 0.045

TOTAL 2.793 0.475 0.430 1.833 0.612 0.671 0.554 0.457



86



RAISER

RETAILER

SLAUGHTERHOUSE

SMD

PLA-B-SMD

PLA-SLD

RLA-B-SMD

PLA-MLD

AGENT

PLA-LLD

BOP

Legend:

- live

- meat

Figure 12. Marketing Channels for Swine in Iloilo, 2002

Business permit 0.02 0.002Market fee 0.04Stall rentalHolding pen rental 0.20 0.09ElectricitySlaughter fee 1.94 1.03Telephone 0.025 0.035Garbage/Sanitary permitWater 0.01Gas and Oil 0.36 0.19 0.12 0.43Entrance fee (abbattoir) 0.35 0.58Stockyard fee 0.20 0.16Agent's commission 0.90Shrinkage 1.73 1.12 1.11 2.72Meals and Beverages 0.06

TOTAL 2.98 1.68 1.61 2.72 2.08 0.28 2.075

Appendix 14f. SWINE (Live): Other operating costs incurred by marketing participants,by item, Cebu, 2002

RAISER/ OPERATOR IRLA- SLD BLA-SLD RLA-B-SMD RETAILERMLA-SLD


ITEM PLA-B-SMD



Slaughter fee 0.97 0.17 0.77Cell card 0.005 0.01 0.06Cash ticket 0.04 0.03 0.08 0.01Municipal license 0.06Agents' commission 0.14Telephone bill 0.01Barangay permit 0.06Travel permit 0.02 0.06 0.03 0.03Water 0.29Stockyard fee 0.06 0.06 0.04Dropping fee 0.03 0.06 0.02Weighing fee 0.07 0.03 0.03Gasoline 0.22 0.02 0.36 1.11 0.01 0.48 0.65 0.12Meals 0.09 0.16 0.32 0.08

TOTAL 1.05 0.32 0.18 0.53 1.43 0.24 0.79 1.23 0.27 0.06 0.77



ITEM B-MR



CONSUMER

RETAILER

SLAUGHTERHOUSE

SOP

IRLA-B-SMD

BLA-B-SMD

PLA-SLD

PLA-LLD

MLA-LLD

LOM

RAISER/ OPERATOR

BOP

Figure 11. Marketing Channels for Swine in Batangas, 2002

ITEMMETRO MANILA PANGASINAN NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO

Material Used

Slicing tools 0.004

Ice bucket/box 0.003

Equipment

Weighing Scale b/ 0.010 0.011 0.01 0.02

Calculator 0.002 a/ 0.004 0.01 a/

Cellphone 0.005 0.004 0.004

Table

Gun 0.012

FacilitiesHolding pen/stockyard 0.01 0.05Office building 0.001

TransportationTruck 0.12 0.240 0.322 0.05Forw ard 0.400Tricycle/sidecar 0.120 0.138Jeep 0.184 0.37Motor w ith trailer 0.172Ford f ierra 0.48Motorcycle 0.28Multi-cab/pick-up 1.56Trailer 0.066Colong-colong 0.119

Labor 0.71 0.09 0.50 0.232

TOTAL 0.832 0.866 0.884 0.390 0.894 1.633 0.814

a/ less than 0.001b/ includes all types of weighing scale


Appendix 15. SWINE (Live): Imputed cost of depreciation/labor incurred by respondents,by material/facilities/equipment, by province, Philippines, 2002

88



CONSUMER

RETAILER

BOP

MLA-B-SMD

RLA-B-LMD/

SMD

PLA-B-LMD/

SMD

RAISER/OPERATOR

PLA-LLD

BLA-SLD

AGENT

Figure 10. Marketing Channels for Swine in Nueva Ecija, 2002

ITEM IRLA-SLD IRLA-B-LMD IRLA-B-SMD RETAILER

Equipment Calculator a/ 0.001 0.004

Transportation Truck 0.053 0.147 0.240 0.214

Labor 0.710

TOTAL 0.053 0.147 0.241 0.928

peso per kilogram


ITEM RAISER/ OPERATOR IRLA-LLD MLA-SLD MLA-B-SMD

Equipment

Weighing scale a/ 0.01

Calculator a/

Cellphone 0.002 0.01

Facilities

Off ice building 0.001

Transportation

Forw ard 0.40

Truck 3.04 0.19 0.84

Tricycle 0.12

Labor 0.09

TOTAL 3.05 0.29 0.40 0.96

a/ include all kind of weighing scale


Appendix 15b. SWINE ( Live): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities/equipment used, Pangasinan, 2002



CONSUMER

RETAILER

SLAUGHTERHOUSE

BOP

LOM

PLA-B-SMD MLA-B-SMD

IRLA-LLD MLA-SLD

RAISER/OPERATOR

Figure 9. Marketing Channels for Swine in Pangasinan, 2002

ITEMRAISER/

OPERATOR PLA-LLD BLA-SLDRLA-B-

LMDRLA-B-

SMDPLA-B-

LMD AGENT RETAILER

Equipment

Weighing scale a/ 0.065 0.001 0.008

Calculator 0.014 0.001 a/ 0.001

Transportation

Trailer 0.066

Colong-colong 0.266 0.080 0.010

Jeep 0.083 0.670 0.035 0.070 0.060

Labor 0.500

TOTAL 0.266 0.162 1.250 0.046 0.071 0.126 0.008 0.001

a/ less than 0.001


Appendix 15c. SWINE (Live): Imputed costs of labor and depreciation incurred by marketing participants,by material/facilities/equipment used, Nueva Ecija, 2002

Equipment Weighing Scale 0.02 0.003

Cellphone 0.01

Transportation Jeep 2.41 0.29

TOTAL 2.43 0.303

MLA-LLD

Appendix 15d. SWINE (Live): Imputed cost of depreciation/labor by marketingparticipants, by materials/facilities and equipment used, Batangas, 2002


ITEM RAISER/OPERATOR


One RLA-B-SMD slaughtered the animals himself before directly distributing to them to the retailers.

Retailers sourced their meat supplies from the SMDs or directly from the

slaughterhouse.

Cebu

Raisers sold their swine to either livestock assemblers-distributors, agent or directly to the BOPs or LOMs.

Livestock assemblers, agents and SOPs brought the animals to the LOMs

wherein butcher-meat distributors and sometimes the retailers sourced their supplies.

There were retailers who sourced live animals from the stockyard or directly

from the growers and paid for service fees at the slaughterhouse.

Davao The market outlets of swine raisers were agents, livestock assemblers-

distributors and butcher-meat distributors.

RLA-LLD supplied BOPs from Cebu.

Retailers bought swine either live or slaughtered and sold them to the consumers.

Metro Manila

Meat distributors got their stocks from the suppliers outside the province

(SOP). They brought live hogs to the slaughterhouse, paid for the services of the

butchers, and then distributed meat to the retailers and institutional buyers.


Material UsedIce bucket 0.003

EquipmentWeighing Scale 0.04 0.01

FacilitiesHolding pen 0.05

Transportation Multi-cab 1.53 Pick-up 0.03

TOTAL 0.04 0.06 1.53 0.03 a/ includes knife, bolo, hasaan


Appendix 15f. SWINE (Live): Imputed cost of depreciation by marketing participants, by materials/facilities and equipment used, Cebu, 2002

ITEM RAISER/ OPERATOR RLA-SLD BLA-SLD RETAILER

PLA-B-

SMD


Equipment Cellphone 0.003 0.005 Calculator 0.001 0.002 Gun 0.012

Facilities Stockyard/holding pen 0.018 0.004

Transportation Truck 0.206 0.438 Tricycle/sidecar 1.172 0.127 Motor w ith trailer 0.172

Labor 0.232

TOTAL 1.404 0.021 0.333 0.460 0.004 0.173

Appendix 15e. SWINE (Live): Imputed costs of labor and depreciation incurred by marketing participants, by materials/facilities & equipment used, Iloilo, 2002

ITEM PLA-LLD


PLA-MLD PLA-SLDRAISER/

OPERATOR AGENT

Marketing Channels

Figures 9-15 illustrate the flow of swine from the raisers to retailers.

Pangasinan

Swine raisers’ outlets were either livestock assembler-distributor, butcher-meat distributor. They also directly sold their produce to the LOMs.

Animals bought from the LOMs were either delivered to the slaughterhouse or

distributed to the buyers outside the province (BOP).

Slaughtered animals were sold to retailers or to the BOP.

Nueva Ecija

Agents, livestock assembler-distributors and butcher-meat distributors were the market outlets of swine raisers in Nueva Ecija.

Butcher-meat distributors sold their pork directly to the consumers.

Buyers outside the province preferred live hogs supplied to them by the PLA-

LLD.

Batangas

From the raisers, live hogs were brought to the LOMs or to livestock assemblers-distributors or meat distributors;

Livestock assemblers sourced their supplies from co-LA’s, then distributed to

butchers for slaughter;

One PLA-LLD sold animals to BOPs;

There were retailers who bought live animals directly from the raisers, brought the same to the slaughterhouse, and distributed meat to the consumers.

Iloilo

The raisers’ outlets for their live animals were livestock assemblers-distributors

(PLA-LLD/PLA-MLD), agents or butcher-meat distributors (RLA-B-SMD). PLA-LLDs distributed live animals to buyers outside the province.

Agents passed their procured animals to PLA-SLD, then to PLA-B-SMD.

PLA-MLD brought live animals to the slaughterhouse.



Procurement Hauling 0.251 Handling Loading 0.189 0.06 0.055 Unloading 0.189 0.06 0.055 Chopping/Slicing 0.42 0.86

Distribution Handling Loading 0.03 0.46 0.05 Unloading 0.03 0.47 0.05 Chopping 0.42 Cleaning 0.17 Weighing 0.54 0.498 Selling 0.83 0.60 0.70 1.01 0.224 1.10


TOTAL 2.779 1.160 3.980 1.440 2.053 1.530 0.520

DAVAO

Appendix 16. SWINE (Slaughtered): Labor costs incurred by marketing activity/practice,



MARKETING ACTIVITY/PRACTICE METRO MANILA PANGASINAN


IRLA-LLD- IRLA- RLA- PLA- PLA- MLA- BLA-

B-SMD MLD LLD LLD SLD LLD LLD

VEHICLE Ford Fierra 0.380 0.610 Truck 0.010 0.300 0.270 Motorcycle 0.280

EQUIPMENT Cellular phone 0.001 0.020 0.020 0.003

TOTAL 0.001 0.38 0.01 0.30 0.29 0.91 0.003

Appendix 15g. SWINE (Live): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities & equipment used, Davao, 2002


ITEM

92



Metro Manila Wet Market

Supermarkets

Restaurants Demand Areas

Trading Centers

Supply Areas

Slaughterhouses in

Metro Manila, Cainta, & Antipolo Rizal

Nepomuceno, Tondo Stockyard

Batangas, Cavite Quezon, Bulacan

Nueva Ecija

Cebu, Davao

General Santos

Figure 8. Geographic Flow of Swine, Metro Manila, 2002

MARKETING ACTIVITY/ IRLA-B- IRLA-B-

PRACTICE LMD SMD


Pre-distribution Chopping 0.507 0.348 Hauling/Handling 0.224 0.373

Distribution Chopping 0.42 Selling 0.43 2.00


TOTAL 0.167 1.502 4.930

Appendix 16a. SWINE (Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Metro Manila, 2002

RETAILER


Distribution Handling Loading 0.03 Unloading 0.03 Selling 1.50 0.29


TOTAL 2.37 0.76

Appendix 16b. SWINE (Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Pangasinan, 2002


MARKETING ACTIVITY/PRACTICE PLA-B-SMD MLA-B-SMD



Distribution

Handling

Selling


TOTAL 0.05

RETAILERMARKETING ACTIVITY/PRACTICE


Appendix 16d. SWINE(Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Batangas, 2002

IRLA-B-LMD

0.12

1.01

0.46

1.59

Distribution Slicing/w eighing 0.498 Selling 0.319 0.208


TOTAL 0.319 2.037

Appendix 16e. SWINE (Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Iloilo, 2002


Php/kg (meat)

RETAILERPLA-B-SMD

MARKETING ACTIVITY/PRACTICE RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD RETAILER

Procurement Slicing 1.00 0.42 1.00 1.00

Distribution Cleaning 0.17 0.17 0.17Handling Loading 0.08 0.20 0.50 0.16Unloading 0.09 0.21 0.50 0.16Selling 0.35 0.42 1.00 1.03Weighing 0.29 0.42 0.90

Salaries & Wages 0.67 0.83 0.83

TOTAL 2.48 2.26 2.41 3.90 1.52


Appendix 16c. SWINE (Slaughtered): Labor costs incurred by marketingparticipants, by activity/practice, Nueva Ecija, 2002

Figure 7. Geographic Flow of Swine in Davao del Sur, 2002

1. Cebu 2. Davao City 3. Bansalan 4. Magsaysay 5. Sta. Cruz 6. Digos 7. Hagonoy 8. Padada 9. Kidapawan 10. Sta. Maria 11. Malita 12. Sarangani

Province

4

1

2 3

5

6

10

7

9

8

11

12

94



CEBU

- Carcar - Carbon - Mandaue - Tabunok

MANILA CAVITE

Figure 6. Geographic Flow of Swine in Cebu, 2002

CEBU (LOM)

- San Antonio - Bogo - Mantalongon - Mandaue (Abattoirs)

CEBU

- Adlaon - Pit-os - Talamban - Absungot - Valladolet - Compostela - Liloan - Danao - Consolacion

GENERAL SANTOS CITY

DAVAO MISAMIS ORIENTAL NEGROS ORIENTAL

MASBATE BOHOL

Demand Areas

Trading Centers

Supply Areas

Legend:

- live

- meat

Distribution

Selling a/

Salaries and Wages

TOTAL

a/ include slicing of meat and selling

Appendix 16f. SWINE: Labor costs incurred by marketing participants, by activity/practice, Cebu, 2002


1.53

RETAILER

1.10

0.43

Php/kg (slaughtered)

MARKETING ACTIVITY/ IRLA-LLD- PLA-LLD- B-MRPRACTICE B-SMD B-MR

Procurement

Handling 0.25 0.11

Distribution

Handling 0.25 0.07 0.11


TOTAL 0.50 0.07 0.53


Appendix 16g. SWINE ( Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Davao, 2002



METRO MANILA

Iloilo City

Central Market

Lapaz Public

Market

Janiuay

Poblacion

SLAUGHTERHOUSE

LIVESTOCK “OKSYON” MARKET

GUIMBAL

- Igcocolo - Poblacion

LEON

- Buga - Balud

JANIUAY

- Guadalupe - Tolorocan

Figure 5. Geographic Flow of Swine, Iloilo, 2002

Legend:

- live

- meat




Procurement 0.456 0.29 0.75 0.41 0.04


TOTAL 0.46 0.31 0.29 1.395 0.41 0.23


Appendix 17. SWINE (Slaughtered): Transportation costs incurred by marketingactivity/practice, by province, Philippines, 2002

MARKETING ACTIVITY/PRACTICE RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD MLA-B-SMD RETAILER

Distribution 0.33 0.28 0.28 0.44 0.28 0.28

Total 0.33 0.28 0.28 0.44 0.28 0.28


Appendix 17b. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice, Neva Ecija, 2002

Procurement

TOTAL

Appendix 17a. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice, Metro Manila, 2002

RETAILER

0.456

0.456

peso per kg. (meat)


96



BATANGAS

Batangas City Tanauan City Lemery San Luis Agoncillo Taal

METRO MANILA

Pasay City Paranaque City Pasig City Marikina City Antipolo City Quezon City

Cavite Laguna Bulacan

LOMs / Slaughterhouse

BATANGAS

- Lipa City - Rosario - Lemery - Batangas City - Bauan - Padre Garcia

Figure 4. Geographic Flow of Swine in Batangas, 2002

Quezon Bulacan

Nueva Ecija

peso per kg.(meat)

Procurement 0.29

TOTAL 0.29

Appendix 17c. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice,

Batangas, 2002


Procurement 0.75

Distribution 0.645

TOTAL 0.65 0.75

Appendix 17d. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice, Iloilo, 2002

RETAILER

peso per kg.(meat)

MARKETING ACTIVITY/PRACTICE PLA-B-SMD

peso per kg. (meat)

Procurement 0.41

TOTAL 0.41

Appendix 17e. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice, Cebu,

2002




CABANATUAN CITY

METRO MANILA NOVALICHES NEPA Q-MART

CABANATUAN CITY

PUBLIC MARKET

MAGSAYSAY PUBLIC MARKET

ADUAS

SLAUGHTERHOUSE

SAN LEONARDO SAN ANTONIO

CABANATUAN CITY

Figure 3. Geographic Flow of Swine in Nueva Ecija, 2002

Demand Areas

Trading Centers

Supply Areas

ITEM METRO MANILA PANGASINAN NUEVA

ECIJA BATANGAS ILOILO CEBU DAVAO


DISTRIBUTION Plastic bag 0.12 0.17 0.29 0.14 0.061 0.05 0.52 Broom stick a/ 0.003 Cartons 0.042 0.10 Bulb/flourescent 0.002 0.29 Ice 0.13 0.88 0.22 0.31Tray a/ 0.01 0.001 Basin a/ 0.002 0.02 0.001Pail a/ 0.001 a/ 0.004 Plastic basket 0.002Styrofoam 0.01 0.002 Office supplies 0.019 0.10 Apron 0.01 Fan a/Chopping board 0.01 0.01Sacks 0.014Razor 0.006 Blade 0.011 0.003Mantle 0.002 Rag 0.005 Chair 0.001

TOTAL 0.34 1.076 0.30 0.89 0.075 0.374 0.520 a/ less than 0.001

Appendix 18. SWINE (Slaughtered): Cost of material inputs incurred by marketingparticipants, by activity/practice item,



IRLA-LLD- BLA-

B-SMD B-MR

Procurement 0.04


TOTAL 0.21 0.31 0.44

MARKETING ACTIVITY/PRACTICE B-MR


Appendix 17f. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice, Davao, 2002

98



PANGASINAN

- Dagupan City - Mangaldan - Urdaneta City - Malasiqui - Calasiao -Villasis - San Carlos City

PUBLIC MARKET - Dagupan City - Villasis - Malasiqui

LOM - Calasiao

PANGASINAN

- Mangatarem San Carlos City - Malasiqui Calasiao - Villasis

Figure 2. Geographic Flow of Swine in Pangasinan, 2002

SLAUGHTERHOUSE - Sta. Barbara

PUBLIC MARKET - Urdaneta City

ILOCOS SUR LA UNION

BAGUIO CITY

Demand Areas

Trading Areas

Supply Areas

Distribution Razor 0.006 Blade 0.011 Tray a/ Basin a/ Ice 0.131 Pail a/ Mantel 0.002 Rag 0.005 Carton 0.04 Plastic bags 0.13 0.12 0.03 Bulb/f luorescent lamp a/ 0.01 Off ice supplies 0.02

TOTAL 0.13 0.32 0.05

Appendix 18a. SWINE (Slaughtered): Costs of material Inputs incurred by marketing participants, by item, Metro Manila, 2002



DistributionIce 0.880Pail 0.001Plastic bag 0.170Chopping board 0.012 0.007Blade 0.003Plastic basket 0.002Styrofoam 0.01Plastic hose

TOTAL 0.012 1.069


Appendix 18b. SWINE (Slaughtered): Costs of material Inputs incurred by marketing participants, by item, Pangasinan, 2002

ITEM RAISER/ OPERATOR MLA-B-SMD

From the LOMs, live hogs were distributed to traders within the province.

Retailers sold their meat to consumers from the same town while others weresold to other towns within Iloilo.

One commercial hog farm shipped live hogs directly to Manila twice a month.

Cebu

Raisers from several municipalities in Cebu were the major suppliers of swine

in the province; other sources, however, were General Santos City, Davao and Misamis Oriental in Mindanao; Bohol and Negros Oriental in Visayas; and Masbate in Luzon.

The supplies were brought to the LOMs situated in San Antonio, Bogo and

Mantalongon where trading took place.

Demand areas within Cebu included Carcar, Carbon, Mandaue and Tabunok; other supplies were distributed to as far as Manila and Cavite.

The animals were brought to Digos and Davao City for trading;

Demand areas were Davao City and Cebu.

Davao

The bulk of supply of hogs in Davao were sourced from the towns of Bansalan,

Magsaysay, Sta. Cruz, Digos, Hagonoy and Padada in Davao del Sur. Kidapawan and Saranggani were the identified sources of swine outside the province.

Metro Manila

Meat dealers and distributors procured live hogs outside Metro Manila,

specifically from nearby provinces like Batangas, Cavite, Quezon, Bulacan and Nueva Ecija or as far as Cebu in Visayas or in Davao and General Santos City in Mindanao.

Supplies coming from Luzon were brought directly to slaughterhouses in Rizal and Metro Manila.

The stocks coming from Visayas and Mindanao were picked up by buyers from

the piers or in the stockyard in Nepomuceno, Tondo, Manila.

When slaughtered, meat were distributed in various wet markets, meat shops, restaurants and supermarkets within Metro Manila.



Distribution

Plastic bag 0.116 0.229 0.175 0.484 0.410 0.331

Tray 0.002 0.007 0.006

Basin 0.002 0.003

Pail 0.001 a/

Brooms a/

Chair 0.001

TOTAL 0.122 0.236 0.181 0.484 0.410 0.334


RETAILER

Appendix 18c. SWINE (Slaughtered): Costs of material Inputs incurred by marketing participants, by item, Nueva Ecija, 2002

ITEM RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD MLA-B-SMD

DistributionPlastic bag 0.11 0.14Broom stick 0.003Cartons 0.10Bulb 0.29Ice 0.06 0.49Tray 0.001Basin 0.02Pail 0.004Styrofoam 0.001 0.01Office Supplies 0.11 0.01Apron 0.01 0.02Fan a/

TOTAL 0.29 1.09

a/ less than 0.001


Appendix 18d. SWINE (Slaughtered): Cost of material inputs incurred by marketing participants, by item, Batangas, 2002

ITEM RETAILERMLA-B-SMD

100


Geographic Flow

The sources and destination points of swine in the supply provinces are presented

in Appendix 10. Figures 2-8 illustrate the flow of swine in the covered provinces.

Pangasinan

Major suppliers of swine in Pangasinan were from the municipalities of Mangatarem, Malasiqui, Villasis, San Carlos City and Calasiao;

Live hogs were brought to either LOM in Calasiao or to Slaughterhouse located in Sta. Barbara.

From the LOM, live animals were distributed to the public markets within the

province but some were brought to Ilocos Sur and La Union. Swine slaughtered in Sta. Barbara were distributed in Urdaneta City and Baguio City.

Nueva Ecija

Major sources of swine in the province were San Leonardo, San Antonio and

Cabanatuan City; Swine intended for meat were brought to Aduas Slaughterhouse and then

distributed to the public markets in Cabanatuan City and Magsaysay.

Also, swine were sold alive to buyers from Manila particularly in Novaliches and Nepa Q-mart .

Batangas

Source municipalities of swine within the province were Lipa City, Rosario,

Lemery, Batangas City, Bauan and Padre Garcia; other supplies were products of Quezon, Bulacan and Nueva Ecija.

Identified trading centers were the LOMs and the slaughterhouses located

within Batangas.

These supplies were distributed to the demand areas within the province, Metro Manila, Cavite, Laguna and Bulacan.

Iloilo

Swine in Iloilo came from Janiuay, Leon, Guimbal and other municipalities

within the province. There was no supply coming outside the province. Live animals were assembled at the LOMs.


Distribution

Sacks 0.014

Plastic bag 0.062

TOTAL 0.014 0.062


Appendix 18e. SWINE (Live): Cost of material inputs incurred by marketing participants, by cost item, Iloilo, 2002

ITEM RAISER/ OPERATOR RETAILER


DISTRIBUTIONIce 0.31Chopping board 0.01Basin 0.001Plastic bag 0.05

TOTAL 0.003 0.371


Appendix 18f. SWINE(Slaughtered): Cost of material inputs incurred by marketing participants, by item, Cebu, 2002

ITEM IRLA-B-SMD RETAILER

Distribution

Plastic bag 0.43 0.71 0.43

TOTAL 0.430 0.71 0.43


ITEM PLA-LLD-B-MR BLA-B-MR B-MR

Appendix 18g. SWINE (Slaughtered): Costs of material Inputs incurred by marketing participants, by item, Davao, 2002

Mode of Delivery. The mode of delivery for distribution of the product depends on

the type of buyer and their business location. Majority of the respondents let their buyers pick-up their procured live or

slaughtered animals from their location. Some of them delivered their products to the buyers.

A few practiced both manners in distributing their products.

Mode of Payment. The mode of payment in selling live and slaughtered animals depends on the agreement of the buyer and the trader.

Most of the respondents (197) received payment for their stocks in cash from

their buyers. Others received delayed payment/credit (25), both in cash or credit (49) and

consignment (8) bases.

One livestock distributor from Iloilo was paid through the bank.



Picked- up 31 41 41 46 25 34 19 6 243 Delivered 4 - 2 3 8 7 2 2 28 Both 3 - 1 - 3 2 - - 9

TOTAL 38 41 44 49 36 43 21 8 280

DAVAO CITY

TOTALDAVAO

DEL SUR

Table 11. SWINE: Distribution of respondents, by manner of distribution, by province, 2002

MANNER OF DISTRIBUTION

METRO MANILA

PANGA-SINAN

NUEVA ECIJA


Cash 18 35 41 28 31 27 15 2 197Consignment - - - 4 2 - 1 1 8Delayed Payment/Credit 11 - 2 3 1 3 2 3 25Combination 9 6 1 14 1 13 3 2 49Bank to Bank - - - - 1 - - - 1

TOTAL 38 41 44 49 36 43 21 8 280

TERMS OF PAYMENT METRO MANILA

PANGA-SINAN

NUEVA ECIJA

TOTALDAVAO

DEL SUR

Table 12. SWINE: Distribution of respondents, by terms of payment, by province, 2002


ITEM METRO MANILA



Business permit 0.239 0.040 0.0145 0.07 0.005 0.02Barangay permit c/ 0.001Market fee b/ 0.05 0.06 0.04Stall rental 0.717 0.180 0.05 0.03 0.114 0.15 0.09Weighing scale rental 0.013Inspection fee 0.786 0.254Coral feeElectricity 0.183 0.055 0.03 0.15 0.035 0.12 0.17Calibration of w eighing scale 0.002 0.016 a/ a/Garbage/Sanitary permit 0.314 0.002 0.05Water 0.078 0.004 0.15 0.03 0.02 0.15Gas and oil 0.97 0.105 0.29 0.238 0.01Meals and beverages d/ 0.061 0.25 0.13 0.116 0.23Post mortem fee 0.06 0.100 0.68Utility fee 0.11Miscellaneous fee 0.19Cellcard 0.12 0.011 0.02Wastage/Shrinkage 2.00 7.17 12.72 0.19 6.90Others e/ 0.03Telephone 0.04 0.007 0.03Entrance/exit fee 0.176Repair and maintenance 0.033 0.185Interest on loan 0.227Travel permit 0.06Residence certif icate 0.02Rights 0.76Security service 0.12Janitorial service 0.357

TOTAL 6.904 7.47 13.38 1.46 1.234 8.24 0.50

a/ less than o.oo1b/ includes ticket and cash ticketc/ includes local taxd/ includes cigarrettes, rice supplye/ includes tong, revolutionary tax

by item, by province, Philippines, 2002


Appendix 19. SWINE(Slaughtered): Other operating costs incurred by respondents,

102


Of the 134 trader-respondents, ninety-five or 91% picked-up their supply from

the sources. Twenty five percent (25%) had their supplies delivered at their business

location. Five of them reported that they practiced both manners in procuring live hogs.

Mode of Payment. There were various modes of payment in buying stocks,

namely: cash, consignment and combination of the two. The variation in the payment arrangement depends on the degree of trading relationship between the farmer and trader.

Majority of the trader-respondents (82 out of 134) paid their swine suppliers in cash upon delivery.

Twelve of them paid in consignment basis and 29, a combination of both cash

and consignment.

There were 11 respondents who have agreed to defer payment with their suppliers.

Distribution

Most of the traders distributed their live and slaughtered animals within the province.The mode of delivery and terms of payment depend on the agreement between the buyerand seller.


Cash 14 7 14 10 10 13 9 5 82 Consignment 6 - - 3 1 - - 2 12 Delayed Payment - 1 1 1 - 8 - - 11 Combination 18 3 - 5 1 2 - - 29

TOTAL 38 11 15 19 12 23 9 7 134

TOTALDAVAO

DEL SUR

MODE OF PAYMENT METRO MANILA

PANGA-SINAN

NUEVA ECIJA


Table 10. SWINE:Distribution of respondents, by mode of payment in buying stocks, by province, 2002


Sanitary permit 0.299

Residence certif icate 0.016

Rights 0.761

Telephone 0.033 0.026 0.051

Water 0.012 0.042 0.100

Electricity 0.050 0.157 0.366

Weighing fee

Slaughterhouse fee

Slaughter fee

Meat inspection fee 0.786

Stall fee 0.947 0.826 0.884

Wastage 2.000

Gasoline 0.223 0.567 2.105

Meals 0.015 0.128 0.316

Garbage collection fee 0.015

Stall repair 0.003

Weighing scale calibration 0.002

Repair and maintenance 0.056 0.005

Interest on loan 0.227

Security services 0.120

Janitorial services 0.357

TOTAL 1.280 3.802 6.652


Appendix 19a. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Metro Manila, 2002


Marketing Practices and Functions

Farmers and traders performed marketing practices and functions that added value to the product. Correspondingly, they incurred certain amount of costs for value-adding, transfer of ownership and for moving the products from one point to another. The major practices and functions and the corresponding marketing costs are described below.

Procurement

Traders procured live animals from the producing barangays within the province

through the Livestock “Oksyon” Markets.

Manner of Procurement. Table 9 shows that in supply procurement, traders practice either pick-up or delivery.



1 – 20 - 1 - 9 - 4 - - 14 521 - 40 - 2 1 1 4 4 1 - 13 541 - 60 1 1 2 1 5 7 3 1 21 861 - 80 2 - 5 1 7 4 - - 19 781 - 100 35 37 36 37 20 24 17 7 213 76

TOTAL 38 41 44 49 36 43 21 8 280 100

PERCENT

Table 8. SWINE: Distribution of trader respondents, by percentage share to total business, by province, 2002

BATANGAS ILOILO CEBU DAVAO DEL SUR

PERCENTAGE SHARE TO

TOTAL BUSINESS

METRO MANILA

DAVAO CITY

TOTALPANGA-SINAN

NUEVA ECIJA

Picked- up 22 11 15 15 8 10 7 7 95 Delivered 16 - - 3 3 10 2 - 34 Both - - - 1 1 3 - - 5

TOTAL 38 11 15 19 12 23 9 7 134

Table 9. SWINE:Distribution of respondents, by manner of procurement, by province, 2002

MANNER OF PROCUREMENT

METRO MANILA

PANGA-SINAN

NUEVA ECIJA

DAVAO CITY

TOTALBATANGAS ILOILO CEBUDAVAO

DEL SUR

ITEM MLA-B-SMD

peso per kg (meat)

Business permit/license 0.038Stall rentals 0.177Weighing scale calibration 0.016Water 0.004Telephone 0.007Electricity 0.055Shrinkage/w astage 7.170

TOTAL 7.467

Appendix 19b. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Pangasinan, 2002

ITEMRLA-B-

LMDRLA-B-

SMDPLA-B-

LMDPLA-B-

SMDMLA-B-

SMD RETAILER

Business permit 0.015 0.02 0.005 0.02 0.01 0.017

Electricity 0.031 0.03 0.046 0.027

Water 0.012 0.031 0.026 0.64 0.022

Stall rental 0.028 0.062 0.049 0.063

Market fee 0.021 0.013 0.139 0.06 0.028

Weighing scale rental 0.013 0.04

Gas and oil 0.09 0.63 0.12

Meals and beverages 0.21 0.312 0.092 0.35 0.312

Wastage 13.71 13.50 10.71 13.83 12.48 12.09

TOTAL 14.130 14.585 10.966 15.074 12.550 12.599


Appendix 19c. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Nueva Ecija, 2002

104


Length of Experience. The study considered the length of experience as an

important gauge in the estimation of costs. Longer experience enabled the marketing participants to estimate more accurately the amount of expenditure involved in various trading activities. Table 7 describes the respondents by length of experience in swine raising/trading.

Fifty-nine or 21% of the total respondents said that they were in the business for less than 5 years.

Thirty six percent (36%) were already in swine trading for 5 to 10 years.

Thirty-two respondents were in swine raising/marketing business for 11 to 20

years. Twenty percent (20%) of them had been engaged in swine raising and trading for

more than 20 years.

Percentage Share to Total Business. It was important to consider the percentage share in the total production (at farm level) or total business (at trader level) in the estimation of the costs incurred in marketing of swine. Table below showed that 76% of the respondents raised/traded swine as the largest portion of their business. Seven percent handled about 61-80% of swine while the rest had 20-60% of swine in their business.


ITEM IRLA-B- LMD MLA-B- SMD RETAILER

Business permit 0.004 0.12Market fee 0.02 0.08Stall rental 0.02 0.04Electricity 0.02 0.18Calibration of w eighing scale a/Garbage/Sanitary permit a/ 0.01Water 0.03Gas and Oil 0.38 0.06Meals and beverages 0.05 0.39Post Mortem 0.06Utility fee 0.11Miscellaneous fee 0.19Cellcard 0.06Wastage 0.03 0.25 0.29Others b/ 0.02

TOTAL 0.54 0.31 1.56

a/ less than 0.001

Appendix 19d. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Batangas, 2002



Business permit 0.001 0.006 Cellcard 0.011 Repair and maintenance 0.185 Meals and beverages 0.095 1.160 0.058 Gas and oil 0.114 0.471 Electricity and w ater 0.037 0.035 Stall rental 0.777 0.016 LOM exit fee 0.176 Inspection fee 0.254 Post mortem fee 0.100 0.100

TOTAL 0.309 2.271 1.016



less than 5 3 9 12 8 7 9 9 2 59 21 5 – 10 18 14 16 14 11 17 9 1 100 36 11 – 15 5 9 4 8 2 3 - 1 32 11 16 – 20 6 4 8 2 7 4 1 1 33 12

more than 20 6 5 4 17 9 10 2 3 56 20 TOTAL 38 41 44 49 36 43 21 8 280 100

DAVAO CITY

NUEVA ECIJA

METRO MANILA

PANGA- SINAN TOTAL PERCENT

Table 7. SWINE: Distribution of respondents, by length of experience, by province, 2002


LENGTH OF EXPERIENCE

(YEARS)

Nature of Capitalization. The amount and nature of the source of working capital

provided the traders some flexibility on the amount to defray for certain cost items. Table 5 presents the distribution of respondents by nature of capitalization.

Out of 280 respondents, 92% operated their business using their own capital.

Eight of them have shared capital with their partners; 13 operated on borrowed

capital; one was financed by a corporation, while one agent did not have financial capital at all.

Business Ownership. Majority (265 or 95%) of the respondents operated their own business as single proprietors. Twelve were into a partnership while 3 respondents were under a corporation (Table 6).



Business permit 0.02 0.002 0.05Barangay permit 0.001Market fee 0.04Stall rental 0.03 0.27Electricity 0.11 0.14Telephone 0.025 0.035Garbage/Sanitary permit 0.05Water 0.02 0.03Wastage 6.95 4.69 9.11Meals/Beverages 0.06 0.41Post mortem (inspection fee) 0.81 0.56

TOTAL 7.97 4.79 10.66


Appendix 19f. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Cebu, 2002


IRLA-LLD- PLA-LLD-

B-SMD B-MR

Cell card 0.01 0.04Travel permit 0.06Water 0.25 0.06Stall rental 0.22 0.05Electricity 0.40 0.12Weighing scale calibration a/ a/Gasoline 0.005

TOTAL 0.01 0.065 0.87 0.27

B-MR


BLA-B-MR


ITEM

Self-f inanced/ow ned 36 40 43 42 33 39 16 8 257 92Sharing - - - 6 1 1 - - 8 3Borrow ed 2 1 1 1 1 2 5 - 13 5No Capital - - - - 1 - - - 1 a/Corporation - - - - - 1 - - 1 a/

TOTAL 38 41 44 49 36 43 21 8 280 100

a/ less than one percent

NATURE OF CAPITALIZATION

METRO MANILA

PANGA-SINAN


Table 5. SWINE: Distribution of respondents by nature of capitalization, by province, 2002


DAVAO DEL SUR

Single proprietorship 36 39 43 47 31 40 21 8 265 94

Partnership 2 2 1 2 4 1 - - 12 5Corporation - - - - 1 2 - - 3 1

TOTAL 38 41 44 49 36 43 21 8 280 100


Table 6. SWINE: Distribution of respondents by type of business ownership, by province, 2002


BUSINESS OWNERSHIP

METRO MANILA

PANGA-SINAN

NUEVA ECIJA

106


Profile of Respondents

The study determined the basic characteristics of the respondents which included the type of farm, nature of capitalization, type of business ownership, length of experience and percentage share of swine in their total production/business.

Type of Farm. One hundred five (105) of the sample raisers were backyard

operators. Forty-one (41) or 28% were growers at commercial scale. The distribution of raiser–respondents by type of farm is found in Table 3.

Respondents’ Classification. The raiser-respondents were classified based on their role in the business operations. One hundred of them were raisers or owners of the farm; 16 were caretakers, 24 were relatives of the raiser and the others were employees in the farm. Table 4 shows the distribution of the respondents by classification.


PROVINCE BACKYARD COMMERCIAL TOTAL

Pangasinan 19 11 30Nueva Ecija 19 10 29Batangas 22 8 30Iloilo 20 4 24Cebu 15 5 20Davao del Sur 10 2 12Davao City - 1 1

Total 105 41 146

Table 3. SWINE: Distribution of raiser-respondentsby type of farm, by province, 2002

Raiser/Owner 15 27 20 19 8 11 - 100 68

Caretaker 3 2 7 2 2 - - 16 11

Partner - - 1 - - - - 1 1

Both a/ - - 2 - - - - 2 1

Secretary - - - 1 - - - 1 1

Farm Administrator - - - - - 1 - 1 1

Finance Manager - - - - - - 1 1 1

Others b/ 12 - 2 10 - - 24 16

TOTAL 30 29 30 24 20 12 1 146 100a/ both raiser-operator and a caretakerb/ wife, son and daughter and relatives of raiser

TOTAL PERCENTILOILO CEBU DAVAO SUR

DAVAO CITY

RESPONDENT'S CLASSIFICATION

PANGA-SINAN

NUEVA ECIJA BATANGAS

Table 4. SWINE: Distribution of raiser-respondents by classification, by province, 2002

ITEMMETRO MANILA PANGASINAN


Material UsedSlicing tools 0.014 0.006 0.004 0.01 0.006 0.01 0.003Chopping board 0.006 0.003 0.002Hook/Meat hanger 0.002 0.001 a/ 0.001 0.001"Hasaan" (steel) 0.004 0.001 a/Ice bucket/box 0.005 0.001Plyw ood 0.01Pail 0.001 0.002Tray b/ 0.002 0.004

EquipmentWeighing Scale d/ 0.019 0.040 0.005 0.01 0.008 0.01 0.02Electric/exhaust fan c/ 0.002 0.003 0.003 0.01Chair a/ 0.05 0.204 0.001Calculator 0.002 0.001 0.002 a/ 0.009Freezer/Refrigerator 0.055 0.020 0.043 0.01Meat Grinder 0.024 0.050 0.002 0.001 0.02 0.02Cash box (stainless) 0.001 0.02Cellphone 0.01 0.009 0.004Table 0.003 a/ 0.026GunSharpener 0.008Telephone 0.005


TransportationTruck 0.14 0.068Tricycle/sidecar 0.101Jeep 0.025 0.37 a/Trailer 0.171

Labor 1.802 0.68 0.83 0.35 0.54

TOTAL 3.514 0.850 1.292 0.780 0.232 0.581 0.093

a/ less than 0.001b/ aluminum and plasticc/ includes exhaust fand/ includes all types of weighing scale

by materials/equipment/facilities used, by province, Philippines, 2002


Appendix 20. SWINE (Slaughtered): Imputed cost of depreciation/labor incurred by respondents,

7. Agent

a) Procurement Agent – procures live animals on behalf of a trader from raisers and traders in supply areas, LOMs or pooling places; may be paid on salary, commission or sharing basis.

b) Sales or Commission Agent - collects live animals entrusted to him by a

raiser and sells these animals with the agreement that for the service he provides he receives as payment the difference between the price at which he is able to sell the animals and the price agreed with the raiser; also includes representatives of shippers who are either paid in commission basis or in fixed salary and who are tasked with procuring animals for shipment to various destinations.

8. Institutional Buyer – includes restaurants, eateries, canteens, hospitals, etc.

9. Meat Retailer – sells meat to consumers or institutional buyers.

Table 2 shows the number of respondents by type of marketing participants. Thirty-two (32) of the trader-respondents were buyers and sellers of live

animals (livestock assembler- distributors); 36 were livestock assemblers-butchers-meat distributors who either operated on a small, medium or large scale; 6 were agents and 60 were retailers.




Materials Hooks 0.001 a/ 0.005

Chopping board 0.002 0.010 0.004

Knife 0.003 0.003 0.013

Steel 0.004 a/ 0.009

Bolo 0.001 0.011 0.008

Ice box 0.005 0.006

Table 0.003

Chair a/

Equipment Weighing scale 0.015 0.010 0.032

Grinding machine 0.029 0.022

Calculator a/ 0.001 0.004

Freezer 0.025 0.010

Electric/exhaust fan 0.002 0.001 0.005

Refrigerator 0.028


Transportation Truck 0.074 0.120 0.214

Labor 0.415 1.932

TOTAL 0.102 2.097 2.264



Metro Manila 1 10 27 38 14Pangasinan 30 5 6 41 15Nueva Ecija 29 2 8 3 2 44 16Batangas 30 5 2 12 49 18Iloilo 24 4 3 1 4 36 13Cebu 20 5 5 13 43 15Davao del Sur 12 6 1 2 21 8Davao City 1 4 1 2 8 3

TOTAL 146 32 36 6 60 280 100

Table 2. SWINE: Distribution of respondents, by type of marketing participants, by province, 2002

AGENT RETAILER TOTAL PERCENTPROVINCERAISER/

OPERATOR





Types of traders. Trader-respondents were classified based on their sphere of

influence in performing their procurement and distribution activities. This study has identified six types of traders: livestock assemblers; livestock distributors; livestock assembler-livestock distributors; livestock assembler-butcher-meat distributors; agent and retailers. These types of traders were defined as follows:

1. Livestock Assembler – procures live animals from raisers or LOMs

a) Barangay Livestock Assembler (BLA) – procures from one barangay or

one LOM or pooling place b) Municipal Livestock Assembler (MLA) - procures from 2 or more

barangays or LOM or pooling place c) Provincial Livestock Assembler (PLA) – procures from 2 or more LOMs or

2 or more municipalities within the province d) Regional Livestock Assembler (RLA) – procures from 2 or more provinces

within the region e) Interregional Livestock Assembler (IRLA) – procures from provinces

outside the region

2. Livestock Distributor – sells live animals

a) Small Livestock Distributor (SLD) – sells in the same or another LOM,pooling place or municipality

b) Medium Livestock Distributor (MLD) – sells in 2 or more LOMs, pooling

places or municipalities c) Large Livestock Distributor (LLD) – sells to areas outside the province but

may sell also within the province

3. Livestock Assembler-Livestock Distributor – procures and sells live animals.Several combinations were identified in the study:

a) BLA-SLD; MLA-SLD; PLA-SLD; RLA-SLD; IRLA-SLD b) BLA-MLD;MLA-MLD; PLA-MLD; RLA-MLD; IRLA-MLD c) BLA-LLD; MLA-LLD; PLA-LLD; RLA-LLD; IRLA-LLD

4. Butcher-Meat Distributor (B-MD) - procures live animals; may slaughter animal

himself or through an abattoir; sells meat to retailers.

5. Supplier from Outside the Province (SOP) – trader or raiser based in areas outside the province who may deliver live animals to the province or sell to buyers who approach them.

6. Buyer from Outside the Province (BOP) – buys live animals from supply areas

within the province or from traders who ship to other provinces.


ITEM RAISER/ OPERATOR PLA-B-SMD MLA-B-SMD

MaterialsBolo 0.01 0.004 Knife 0.01 0.002 Meat hanger 0.001

Equipment Weighing scale a/ 0.08 0.01 Grinding machine 0.07 0.03 Freezer 0.08 0.01 Electric/exhaust fan 0.003 Chairs 0.05 Tables a/ Labor 0.87 0.49

TOTAL 0.07 1.10 0.54 a/ include all kind of weighing scale


Appendix 20b. SWINE ( Slaughtered): Imputed costs of labor and depreciation incurred bymarketing participants, by material/facilities/equipment used, Pangasinan, 2002

ITEM RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD MLA-B-SMD RETAILER

MaterialsKnife 0.001 0.001 0.002 0.004 0.008 0.006 Meat hanger a/ Chopping board 0.002 0.001 0.003 0.004 0.007 0.003 Tray 0.002 Pail 0.001 0.002 0.001 0.001

Equipment Weighing scale a/ 0.001 0.015 0.012 0.010 Calculator 0.001 a/ 0.001 Freezer 0.022 0.063 Chairs 0.001 0.001 0.813 0.001 Electric fan 0.003 Transportation Trailer 0.171 Jeep 0.035 0.020 Labor 0.410 0.230 1.000 2.510

TOTAL 0.062 0.413 0.271 1.023 1.000 2.600 a/ less than 0.001


Appendix 20c. SWINE (Slaughtered): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities/equipment used, Nueva Ecija, 2002

Research Coverage

The study covered key supply and demand areas in Luzon, Visayas and Mindanao. These were represented by the provinces of Pangasinan, Nueva Ecija, Batangas, Iloilo, Cebu and Davao del Sur. Metro Manila and Davao City were considered as demand areas.

The tracing approach started from the producing barangays of the identified

municipalities by province. The top two (2) producing barangays were chosen to represent each municipality.

From the farm level, the traders were traced based on the identification of raiser-

respondents. Most of the traders are located in the Livestock “Oksyon” Markets (LOMs). The study then moved to the next point of sale consisting of the retail markets within the province.

Selection of Sample Respondents

At the farm level, the barangay chairman and other officers served as key

informants in locating raiser-respondents. The City Veterinarian also served as key informant on swine marketing practices in the province. Only swine raisers and traders who were engaged in the business from July 2001 to June 2002 were interviewed.


The study dealt primarily with the costs incurred by marketing participants in

moving the animals from the supply level to the consumption level. The first part focuses on the distribution, profile and the marketing functions and practices of the respondents. Part II presents the marketing costs components.

Distribution of Respondents. There were two groups of respondents for the

study: raisers/operators and traders. A total of 146 swine raisers was interviewed from the producing barangays/municipalities. At the trading center level, a total of 134 respondents was interviewed (Table 1).



Farm er/Raiser Trader

M etro M anila - 38 38 Pangasinan 30 11 41 Nueva Ecija 29 15 44 Batangas 30 19 49 Ilo ilo 24 12 36 Cebu 20 23 43 Davao del Sur 12 9 21 Davao C ity 1 7 8

TO TAL 146 134 280

NUM BER O F RESPO NDENTS

Table 1. SW INE: D istribution of respondents, by typeand by province, 2002

PRO VINCE TO TAL

Material Used Knife 0.002 0.01Chopping board 0.001 0.002Hook 0.001"Hasaan" (steel) 0.001 0.001

Equipment Weighing Scale 0.02 0.02Electric fan 0.002 0.01Chair 0.001Calculator 0.002Freezer 0.01Meat Grinder 0.002Cash box (stainless) 0.001

Labor 0.34 0.96

TOTAL 0.37 1.02

ITEM RETAILER


Appendix 20d. SWINE (Slaughtered): Imputed cost of depreciation/labor by marketingparticipants, by materials/facilities and equipment used, Batangas, 2002

MLA-B-SMD


Equipment Cellphone 0.009 Calculator a/ Weighing scale a/ 0.008 Telephone 0.005 Grinder 0.001 Table 0.026 Sharpener 0.008

Transportation Truck 0.068 Tricycle/sidecar 0.101 Jeep a/

TOTAL 0.068 0.115 0.049

RLA-B-SMD


Appendix 20e. SWINE (Slaughtered): Imputed costs of labor and depreciation incurred by marketing participants, by item, Iloilo, 2002



b) To compare marketing costs structures across trading centers and trading seasons;

and

c) To establish benchmark data on the average costs of the various marketingcomponents.

Scope and Limitations The study traced the flow and the marketing channels for swine starting from the production points to the consumption areas. At the demand sites, the study concentrated only on the costs incurred in marketing the animals coming from the identified supply provinces, and none from those produced in the other supply provinces which contributed significant quantity in the demand province.

II. Methodology

The study employed the tracing approach starting from the supply level (production)

to the demand (consumption) level (Figure 1).


Supply Area 1

Supply Area 3

TradingCenter

SupplyArea 2

DemandAreas

Figure 1. Tracing Approach

peso per kg. (meat)

Material UsedSlicing tools a/ 0.01Ice bucket 0.001

EquipmentWeighing Scale 0.01Meat Grinder 0.02

Labor 0.54

TOTAL 0.58

a/ includes knife, bolo, hasaan

Appendix 20f. SWINE (Slaughtered): Imputed cost of depreciation by marketing participants, by materials/facilities

and equipment used, Cebu, 2002

ITEM RETAILER

IRLA-LLD- BLA-B B-SMD MR

EQUIPMENT Cellular phone 0.001 0.030 Weighing scale 0.040 0.020 Hook 0.001 a/ Calculator 0.020 0.010 Aluminum tray 0.004 Cash box 0.020 Meat grinder 0.020 0.020 MATERIALS Knife 0.003 Plywood 0.005 Hasaan (steel) a/ Pail 0.002

TOTAL 0.001 0.11 0.08

B-MR

Appendix 20g. SWINE (Slaughtered): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities/equipment used, Davao,

2002

peso per kilogram (meat) ITEM

MARKETING COSTS STRUCTURE FOR SWINE

I. Introduction

Statistical information on production and marketing costs of agricultural commodities are important inputs to policy makers particularly in the determination of the type of assistance to be provided to the small and marginal farmers. In the past, data collection efforts have been focused on production costs. In more recent years, increasing attention has been given to marketing costs and margins in response to the growing demand for these information.

For the past two years, the Bureau of Agricultural Statistics (BAS) has conducted marketing studies for selected high value commercial crops with support from the High Value Commercial Crops (HVCC) Program of the Department of Agriculture. These studies were extended to the livestock and poultry products to address the information needs in the sub-sector.

In particular, the BAS conducted a study which identifies and measures the various marketing costs in major producing provinces and trading centers for swine and goat with funding support from the GMA-Livestock Program of the DA. The results of the study are intended for policy makers, analysts, consumers as well as investors in the livestock industry.

The Commodity and Its Economic Importance Swine, otherwise known as hog, is one of the domesticated members of the species Sus scofa of the Suidae family. It is a stout-bodied, short-legged omnivorous animals with a thick bristly skin and long flexible snout. The male is specifically called boar, the female, sow, and the young, pig (www.hyperdictionary.com). Swine are valuable for their flesh which can be prepared as bacon, ham and pork and for the fat or lard. They also provide many products like leather for gloves, footballs, and other articles, and for bristles for brushes. Hogs are commonly grouped as meat-type or lard-type. Objectives

The main objectives of the study are:

a) To determine the marketing costs structure by type of marketing participants inmajor swine producing areas and trading centers;




Raisers:


Interregional Livestock Assembler - Large Livestock Distributor (IRLA-LLD):


Retailer:



Appendix 21a. Marketing Costs and Margins for Swine in Pangasinan, 2002


Raisers:


Provincial Livestock Assembler - Butcher-Large M eat Distributor (PLA-B-LM D):

Selling price 95.00 5320.00Value of by-products (14.33% x P75)** 10.75 860.00Total marketing costs 8.80 704.00Net costs of by-products (10.75 - 8.80) 1.95 156.00Margin = 66.50 + 1.95 – 65.00 3.45 276.00

Retailer:

Selling price 105.00 5880.00*Total marketing costs 9.36 524.16Margin = [105.00 – 95.00 - 9.36] 0.64 35.84


Appendix 21b. Marketing Costs and Margins for Swine in Nueva Ecija, 2002

112



Raisers:


Provincial Livestock Assembler - Large Livestock Distributor (PLA-LLD):


Buyer Outside the Province (BOP) Retailer:



Appendix 21c. Marketing Costs and Margins for Swine in Batangas, 2002


Raisers:


Regional Livestock Assembler-Butcher-Small M eat Distributor (RLA-B-SM D):

Selling price 60.00 3360.00*Value of by-products (14.33% x P75)** 10.75 860.00Total marketing costs 0.99 79.20Net costs of by-products (10.75 - 0.99) 9.76 780.80Margin = (42.00 + 9.76 – 42.25) 9.51 760.80

Retailers:



Appendix 21d. Marketing Costs and Margins for Swine in Iloilo, 2002

LIST OF FIGURES

Figure no. Page no.

23. Marketing Costs and Margins for Hogs, by Channel, Nueva Ecija, 2002

52

24. Marketing Costs and Margins for Hogs, by Channel, Batangas, 2002

53

25. Marketing Costs and Margins for Hogs, by Channel, Iloilo, 2002

54

26. Marketing Costs and Margins for Commercial Hog Farm, Iloilo, 2002

55

27. Marketing Costs and Margins by Channel for Swine, Cebu, 2002

56


57


58

30. Marketing Costs and Margins by Channel for Swine, Metro Manila, 2002

59

vi Marketing Costs Structure for Swine



Raisers:


Interregional Livestock Assembler-Small Livestock Distributor (IRLA-SLD):


Stockyard/Slaughterhouse:

Selling price 83.00 6640.00Total marketing costs 0.00 -Margin = (83.00 – 65.00) 18.00 1440.00

Retailers:

Selling price 110.00 6160.00*Value of by-products (14.33% x P75)** 10.75 860.00Total marketing costs 2.09 167.20Net costs of by-products (10.75 – 2.09) 8.66 692.80Margin = [77.00 + 8.66 - 83.00] 2.66 212.80


Appendix 21f. Marketing Costs and Margins for Swine in Cebu, 2002


Raisers:


Interregional Livestock Assembler-Butcher-Large M eat Distributor (IRLA-B-LM D):

Selling price 88.00 4928.00*Value of by-products (14.33% x P75)** 10.75 860.00Total marketing costs 5.42 433.60Net costs of by-products (10.75 - 5.42) 5.33 426.40Margin = (61.60 - 66.00 +5.33) 0.93 74.40

Retailers:



Appendix 21e. Marketing Costs and Margins for Swine in Iloilo, 2002


LIST OF FIGURES

Figure no. Page no.

1. Tracing Approach 2

2. Geographic Flow of Swine in Pangasinan, 2002 14

3. Geographic Flow of Swine in Nueva Ecija, 2002 15

4. Geographic Flow of Swine in Batangas, 2002 16

5. Geographic Flow of Swine in Iloilo, 2002 17

6. Geographic Flow of Swine in Cebu, 2002 18

7. Geographic Flow of Swine in Davao, 2002 19

8. Geographic Flow of Swine in Metro Manila, 2002 20

9. Marketing Channels for Swine in Pangasinan, 2002 23

10. Marketing Channels for Swine in Nueva Ecija, 2002 24

11. Marketing Channels for Swine in Batangas, 2002 25

12. Marketing Channels for Swine in Iloilo, 2002 26

13. Marketing Channels for Swine in Cebu, 2002 27

14. Marketing Channels for Swine in Davao, 2002 28

15. Marketing Channels for Swine in Metro Manila, 2002 29

16. Average Marketing Costs for Swine, by destination in Pangasinan, 2002

39

17. Average Marketing Costs for Swine, by destination in Nueva Ecija, 2002

40

18. Average Marketing Costs for Swine, by destination in Batangas, 2002

41

19. Average Marketing Costs for Swine, by destination in Iloilo, 2002

42

20. Average Marketing Costs for Swine, by destination in Cebu, 2002

43

21. Average Marketing Costs for Swine, by destination in Davao, 2002

44

22. Marketing Costs and Margins for Hogs, by Channel, Pangasinan, 2002

51

v Marketing Costs Structure for Swine


Raisers:


Provincial Livestock Assembler-Small Livestock Distributor (PLA-SLD):


Retailers:

Selling price 95.00 13300.00*Value of by-products (14.33% x P75) 10.75 860.00Total marketing costs 2.21 442.00Net costs of by-products (10.75 - 2.21) 8.54 1708.00Margin = [66.50 + 8.54 – 35.00] 40.04 8008.00


Appendix 21g. Marketing Costs and Margins for Swine in Davao, 2002


Raisers:


Interregional Livestock Assembler- Large Livestock Distributor (IRLA-LLD):


Butcher- Small M eat Distributor (B-SM D):


Retailers:

Selling price 95.00 5320.00Total marketing costs 2.11 118.16Margin = [95.00 - 2.11 – 69.00] 23.89 1337.84


Appendix 21h. Marketing Costs and Margins for Swine in Davao, 2002

STATISTICAL TABLES

16a. SWINE : Other operating costs incurred by respondents, by cost item, by province, 2002

34

16b. SWINE : Other operating costs incurred by respondents, by cost item, by province, 2002

35

17a. SWINE : Imputed cost of depreciation/labor incurred by respondents, by cost item, by province, 2002

36

17b. SWINE : Imputed cost of depreciation/labor incurred by respondents, by cost item, by province, 2002

36

18a. SWINE : Total marketing costs, by province, 2002

37

18b. SWINE : Total marketing costs, by province, 2002

38

19. SWINE : Marketing costs for swine, by point of destination, 2002

49

20. SWINE : Marketing Costs and Marketing Channel, by province, 2002

50

iv Marketing Costs Structure for Swine





Interregional Livestock Assembler - Small Livestock Distributor (IRLA-SLD):


Retailers:

Selling price 110.00 6160*Total marketing costs 2.74 219.20Value of by-products (14.33% x P75)** 10.75 860.00Net costs of by-products (10.75 - 2.74) 8.01 640.80Margin = [77.00 + 8.01 – 75.00] 10.01 800.80


Appendix 21i. Marketing Costs and Margins for Swine in Metro Manila, 2002




Interregional Livestock Assembler - Butcher- Large M eat Distributor (IRLA-B-LM D):

Selling price 83.00 4648.00*Total marketing costs 4.34 347.20Value of by-products (14.33% x P75)** 10.75 860.00Net costs of by-products (10.75 - 4.34) 6.41 512.80Margin = [58.10 + 6.41 - 55.00] 9.51 760.80

Retailers:



Appendix 21j. Marketing Costs and Margins for Swine in Metro Manila, 2002


STATISTICAL TABLES

1. SWINE : Distribution of respondents, by type and by province, 2002

3

2. SWINE : Distribution of respondents, by type of marketing participants, by province, Philippines, 2002

5

3. SWINE : Distribution of raiser-respondents by type of farm, by province, 2002

6

4. SWINE : Distribution of raiser-respondents by classification, by province, 2002

6

5. SWINE : Distribution of respondents by nature of capitalization, by province, 2002

7

6. SWINE : Distribution of respondents by type of business ownership, by province, 2002

7

7. SWINE : Distribution of respondents, by length of experience, by province, 2002

8

8. SWINE : Distribution of trader respondents, by percentage share to total business, by province, 2002

9

9. SWINE : Distribution of respondents, by manner of procurement, by province, 2002

9

10. SWINE : Distribution of respondents, by mode of payment in buying stocks, by province, 2002

10

11. SWINE : Distribution of respondents, by manner of distribution, by province, 2002

11

12. SWINE : Distribution of respondents, by terms of payment, by province, 2002

11

13a. SWINE : Labor costs by marketing activity/ practice, by province, 2002

30

13b. SWINE : Labor costs by marketing activity/ practice, by province, 2002

31

14a. SWINE : Transportation costs by marketing activity/ practice, by province, 2002

31

14b. SWINE : Transportation costs by marketing activity/ practice, by province, 2002

32

15a. SWINE : Cost of material inputs by marketing activity/ practice, by province, 2002

33

15b. SWINE : Cost of material inputs by marketing activity/ practice, by province, 2002

33

iii Marketing Costs Structure for Swine

1. Credit and delayed 1 2 2 1 2 payment. 2 32. Lack of capital. 23. High cost of mayor's 1 permit.4. Few buyers. 2 4 1 1 55. High cost of rental 2 5 1 fee6. Non payment of 3 2 2 1 5 2 debt/loan 2 3 3 27. Low demand. 7 2 1 18. Low prices offered 1 1 8 5 5 by buyers.9. Price f luctuation 1 2 3 110. Unavailability of 3 1 supply. 211. Animal bought are 3 not w eighted (estimate) 112. Illegal vending of pork 2 in Talipapa13. Complain of bad odor 2 1 by neighbor.14. No assured buyers.15. High production cost 216. No problems 5 24 21 2 517. Poor quality of meat 1 118. High mortality rate during 3 transport19 Afraid of FMD 2 1 2 2 2

TOTAL 18 26 32 43 17 32 19

PANGASINAN

Appendix 22. SWINE: Distribution of respondents, by problems encountered by province, Philippines, 2002

NUEVA ECIJA ILOILO

METRO MANILA BATANGASPROBLEMS DAVAOCEBU

Documents

ROMEO S. RECIDE Director COSTS... · 2016-06-22 · Distribution of Respondents 3 Types of Marketing Participants 4 Profile of Respondents 6 ... Complain of bad odor 2 1 14. No assured