romeo s. recide director costs... · 2016-06-22 · distribution of respondents 3 types of...
TRANSCRIPT
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
116 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
Peso per kilogram Peso per head(liveweight) of 80 kgs
Supplier Outside the Province (SOP):
Selling price at farmgate 55.00 4400.00
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:
Selling price 110.00 6160.00Total marketing costs 1.07 59.92Margin = (110.00 – 83.00 – 1.07) 25.93 1452.08
* Recovery rate = 70%** Offals only at average price of P75/kg
Appendix 21j. Marketing Costs and Margins for Swine in Metro Manila, 2002
115 Marketing Costs Structure for Swine
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
Peso per kilogram Peso per head(liveweight) of 200 kgs
Raisers:
Selling price at farmgate 30.00 6000.00
Provincial Livestock Assembler-Small Livestock Distributor (PLA-SLD):
Selling price 35.00 7000.00Total marketing costs 1.72 344.00Margin = (35.00 – 30.00 – 1.72) 3.28 656.00
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
* Recovery rate = 70%** Offals only at average price of P75/kg
Appendix 21g. Marketing Costs and Margins for Swine in Davao, 2002
Peso per kilogram Peso per head(liveweight) of 80 kgs
Raisers:
Selling price at farmgate 50.00 4000.00
Interregional Livestock Assembler- Large Livestock Distributor (IRLA-LLD):
Selling price 56.00 4480.00Total marketing costs 4.56 364.80Margin = (56.00 – 50.00 – 4.56) 1.44 115.20
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
* Recovery rate = 70%** Offals only at average price of P75/kg
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
29. Marketing Costs and Margins by Channel for Swine, Davao, 2002
58
30. Marketing Costs and Margins by Channel for Swine, Metro Manila, 2002
59
vi Marketing Costs Structure for Swine
114 Marketing Costs Structure for Swine
Peso per kilogram Peso per head(liveweight) of 80 kgs
Raisers:
Selling price at farmgate 56.00 4480.00Total marketing costs 0.59 47.20
Interregional Livestock Assembler-Small Livestock Distributor (IRLA-SLD):
Selling price 65.00 5200.00Total marketing costs 0.43 34.40Margin = (65.00 – 56.00 – 0.43) 8.57 685.60
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
* Recovery rate = 70%** Offals only at average price of P75/kg
Appendix 21f. Marketing Costs and Margins for Swine in Cebu, 2002
Peso per kilogram Peso per head(liveweight) of 80 kgs
Raisers:
Selling price at farmgate 66.00 5280.00Total marketing costs 8.68 694.40
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:
Selling price 110.00 6160.00Total marketing costs 3.80 212.80Margin = (110.00 – 88.00 – 3.80) 18.20 1019.20
* Recovery rate = 70%** Offals only at average price of P75/kg
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;
1 Marketing Costs Structure for Swine
112 Marketing Costs Structure for Swine
Peso per kilogram Peso per head(liveweight) of 80 kgs
Raisers:
Selling price at farmgate 51.00 4080.00Total marketing costs 5.98 478.40
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:
Selling price 105.00 5880.00*Value of by-products (14.33% x P75)** 10.75 860.00Total marketing costs 6.48 518.40Net costs of by-products (10.75 - 6.48) 4.27 341.60Margin = [73.50 + 4.27 – 60.00] 17.77 1421.60
* Recovery rate = 70%** Offals only at average price of P75/kg
Appendix 21a. Marketing Costs and Margins for Swine in Pangasinan, 2002
Peso per kilogram Peso per head(liveweight) of 80 kgs
Raisers:
Selling price at farmgate 65.00 5200.00Total marketing costs 0.59 47.20
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
* Recovery rate = 70%** Offals only at average price of P75/kg
Appendix 21b. Marketing Costs and Margins for Swine in Nueva Ecija, 2002
111 Marketing Costs Structure for Swine
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).
2 Marketing Costs Structure for Swine
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.
III. Discussion of Results
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).
3 Marketing Costs Structure for Swine
110 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
Appendix 20e. SWINE (Slaughtered): Imputed costs of labor and depreciation incurred by marketing participants, by item, Iloilo, 2002
ITEM PLA-B-SMD RETAILER
109 Marketing Costs Structure for Swine
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.
4 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
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
peso per kilogram (meat)
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.
5 Marketing Costs Structure for Swine
108 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
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
107 Marketing Costs Structure for Swine
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.
6 Marketing Costs Structure for Swine
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
Facilities Stall 1.436
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
peso per kilogram (meat)
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).
7 Marketing Costs Structure for Swine
106 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
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
peso per kilogram (meat)
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
DAVAO CITY TOTAL PERCENT
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
105 Marketing Costs Structure for Swine
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.
8 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
ITEM RLA-B-SMD PLA-B-SMD RETAILER
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
peso per kilogram (meat)
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
BATANGAS ILOILO CEBUDAVAO DEL SUR
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.
9 Marketing Costs Structure for Swine
104 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
Appendix 19c. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Nueva Ecija, 2002
103 Marketing Costs Structure for Swine
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.
10 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
Appendix 19a. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Metro Manila, 2002
ITEM IRLA-B-LMD IRLA-B-SMD RETAILER
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.
11 Marketing Costs Structure for Swine
102 Marketing Costs Structure for Swine
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
BATANGAS ILOILO CEBU DAVAO CITY
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
peso per kilogram (meat)
Appendix 19. SWINE(Slaughtered): Other operating costs incurred by respondents,
101 Marketing Costs Structure for Swine
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.
12 Marketing Costs Structure for Swine
Distribution
Sacks 0.014
Plastic bag 0.062
TOTAL 0.014 0.062
peso per kilogram (meat)
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
peso per kilogram (meat)
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
peso per kilogram (meat)
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.
13 Marketing Costs Structure for Swine
100 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
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
peso per kilogram (meat)
Appendix 18d. SWINE (Slaughtered): Cost of material inputs incurred by marketing participants, by item, Batangas, 2002
ITEM RETAILERMLA-B-SMD
99 Marketing Costs Structure for Swine
14 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
ITEM IRLA-B-LMD IRLA-B-SMD RETAILER
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
peso per kilogram (meat)
Appendix 18b. SWINE (Slaughtered): Costs of material Inputs incurred by marketing participants, by item, Pangasinan, 2002
ITEM RAISER/ OPERATOR MLA-B-SMD
15 Marketing Costs Structure for Swine
98 Marketing Costs Structure for Swine
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
PROCUREMENT Chopping board 0.003
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
peso per kilogram (meat)
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
peso per kilogram (meat)
Appendix 17f. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice, Davao, 2002
97 Marketing Costs Structure for Swine
16 Marketing Costs Structure for Swine
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
MARKETING ACTIVITY/PRACTICE RETAILER
17 Marketing Costs Structure for Swine
96 Marketing Costs Structure for Swine
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
PANGASINAN NUEVA ECIJA
BATANGAS ILOILO CEBU DAVAO
Procurement 0.456 0.29 0.75 0.41 0.04
Distribution 0.31 0.645 0.19
TOTAL 0.46 0.31 0.29 1.395 0.41 0.23
peso per kilogram (meat)
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
peso per kilogram (meat)
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)
MARKETING ACTIVITY/PRACTICE
95 Marketing Costs Structure for Swine
18 Marketing Costs Structure for Swine
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
MARKETING ACTIVITY/PRACTICE
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
peso per kilogram (meat)
Appendix 16g. SWINE ( Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Davao, 2002
19 Marketing Costs Structure for Swine
94 Marketing Costs Structure for Swine
Distribution
Handling
Selling
Salaries and Wages 0.05
TOTAL 0.05
RETAILERMARKETING ACTIVITY/PRACTICE
peso per kilogram (meat)
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
Salaries and Wages 1.331
TOTAL 0.319 2.037
Appendix 16e. SWINE (Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Iloilo, 2002
MARKETING ACTIVITY/PRACTICE
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
peso per kilogram (meat)
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
93 Marketing Costs Structure for Swine
20 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
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
peso per kilogram (meat)
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.
21 Marketing Costs Structure for Swine
92 Marketing Costs Structure for Swine
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,
peso per kilogram (meat)
by province, Philippines, 2002
MARKETING ACTIVITY/PRACTICE METRO MANILA PANGASINAN
NUEVA ECIJA BATANGAS ILOILO CEBU
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
91 Marketing Costs Structure for Swine
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.
22 Marketing Costs Structure for Swine
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
Materials Butcher's knife/knives 0.004
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
peso per kilogram (liveweight)
PLA-MLD PLA-SLDRAISER/
OPERATOR AGENT
23 Marketing Costs Structure for Swine
90 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
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
peso per kilogram (liveweight)
ITEM RAISER/OPERATOR
89 Marketing Costs Structure for Swine
24 Marketing Costs Structure for Swine
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
Appendix 15a. SWINE (Live): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities/equipment used, Metro Manila, 2002
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
peso per kilogram (liveweight)
Appendix 15b. SWINE ( Live): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities/equipment used, Pangasinan, 2002
25 Marketing Costs Structure for Swine
88 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
Appendix 15. SWINE (Live): Imputed cost of depreciation/labor incurred by respondents,by material/facilities/equipment, by province, Philippines, 2002
87 Marketing Costs Structure for Swine
26 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
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
Appendix 14g. SWINE (Live): Other operating costs incurred by marketing participants, by item, Davao, 2002
peso per kilogram (liveweight)
ITEM B-MR
27 Marketing Costs Structure for Swine
86 Marketing Costs Structure for Swine
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
Appendix 14e. SWINE (Live): Other operating costs incurred by marketing participants, by item, Iloilo, 2002
peso per kilogram (liveweight)
i Marketing Costs Structure for Swine
85 Marketing Costs Structure for Swine
28 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
ITEM RAISER/ OPERATOR
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
peso per kilogram (liveweight)
Appendix 14d . SWINE (Live): Other operating costs incurred by marketing participants, by item, Batangas, 2002
i Marketing Costs Structure for Swine
29 Marketing Costs Structure for Swine
84 Marketing Costs Structure for Swine
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
Business permit 0.058
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
peso per kilogram (liveweight)
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
peso per kilogram (liveweight)
83 Marketing Costs Structure for Swine
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.
30 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
ITEM METRO MANILA
PANGASINAN NUEVA ECIJA
BATANGAS ILOILO CEBU DAVAO
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
peso per kilogram (liveweight)
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.
31 Marketing Costs Structure for Swine
82 Marketing Costs Structure for Swine
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
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
peso per kilogram (meat)
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
peso per kilogram (Liveweight)
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
peso per kilogram (liveweight)
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
peso per kilogram (liveweight)
81 Marketing Costs Structure for Swine
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.
32 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
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
peso per kilogram (liveweight)
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
ACTIVITY/PRACTICEMETRO MANILA
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
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
peso per kilogram (meat)
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.
33 Marketing Costs Structure for Swine
80 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
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
BATANGAS ILOILO CEBU
peso per kilogram (liveweight)
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
peso per kilogram (meat)
ACTIVITY/PRACTICEMETRO MANILA
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
peso per kilogram (liveweight)
Appendix 13. SWINE (Live): Cost of material inputs incurred by marketingparticipants, by activity/practice/item,
by province, Philippines, 2002
79 Marketing Costs Structure for Swine
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.
34 Marketing Costs Structure for Swine
Procurement 0.11 0.84 0.82
Distribution 0.15 0.73 0.29
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
peso per kilogram (liveweight)
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
peso per kilogram (liveweight)
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
ITEM RAISER/ OPERATOR
METRO MANILA
PANGA-SINAN
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
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
peso per kilogram (liveweight)
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
35 Marketing Costs Structure for Swine
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.
78 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
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
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
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
peso per kilogram (meat)
Table 16b. SWINE (Slaughtered): Other operating costs incurred by respondents,by cost item, by province, 2002
ITEM PLA-B-SMD RETAILER
Procurement 1.40 0.21
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
77 Marketing Costs Structure for Swine
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).
36 Marketing Costs Structure for Swine
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
Salaries and Wages 0.35 0.21
TOTAL 2.56 0.10 0.10 0.26 0.20 0.80
a/ include chopping and slicing
peso per kilogram (liveweight)
Appendix 11f. SWINE (Live): Labor costs incurred by marketing participants,by activity/practice, Cebu, 2002
MARKETING ACTIVITY/PRACTICE
RAISER/ OPERATOR
PLA-LLD BLA - SLD RLA-B-SMD PLA-B-SMD RETAILER
IRLA-LLD- IRLA- RLA- PLA- RLA- PLA-LLD- PLA- MLA- MLA- BLA-
B-SMD MLD LLD LLD SLD B-MR SLD LLD SLD LLD
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
peso per kilogram (liveweight)
MARKETING ACTIVITY/ PRACTICE
ITEMMETRO MANILA
PANGA-SINAN
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
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
peso per kilogram (liveweight)
Table 17a. SWINE (Live): Imputed cost of depreciation/labor incurred by respondents,by cost item, by province, 2002
ITEMMETRO MANILA
PANGA-SINAN
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
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
peso per kilogram (meat)
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
P11.13 per kilogram.
Davao respondents have the lowest estimate of trading expenses at P1.86.
37 Marketing Costs Structure for Swine
76 Marketing Costs Structure for Swine
Distribution
Handling 0.10 0.12
Salaries and Wages 0.08 0.15
TOTAL 0.18 0.15 0.12
peso per kilogram (liveweight)
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
Salaries and Wages 0.959
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
peso per kilogram (liveweight)
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
peso per kilogram (liveweight)
Table 18a. SWINE (Live): Total marketing costs, by province, 2002
BATANGAS ILOILO CEBU DAVAOITEMMETRO MANILA
PANGA-SINAN
NUEVA ECIJA
75 Marketing Costs Structure for Swine
Marketing Costs by Point of Destination
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.
38 Marketing Costs Structure for Swine
Pre-marketing Handling Loading 0.31 Unloading 0.31 Hauling 0.08
Distribution Slaughtering 0.25 Selling 0.09
Salaries and Wages 0.25
TOTAL 0.25 0.17 0.87
MLA-B-SMD
peso per kilogram (liveweight)
Appendix 11b. SWINE (Live): Labor costs incurred by marketing participants, by activity/practice, Pangasinan, 2002
MARKETING ACTIVITY/PRACTICE IRLA-LLD MLA-SLD
MARKETING ACTIVITY/PRACTICE
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
peso per kilogram (liveweight)
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
peso per kilogram (meat)
Table 18b. SWINE (Slaughtered): Total marketing costs, by province, 2002
ITEMMETRO MANILA
PANGA-SINAN
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
39 Marketing Costs Structure for Swine
74 Marketing Costs Structure for Swine
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
Procurement Hauling 0.167 Handling 0.211
Pre-distribution Slaughtering 1.338 0.831 0.531
Salaries and wages Helper 0.02 Driver 0.32 1.58
TOTAL 1.505 1.171 2.322
Appendix 11a. SWINE (Live): Labor costs incurred by marketing participants, by activity/practice, Metro Manila, 2002
RETAILER
peso per kilogram (liveweight)
MARKETING ACTIVITY/PRACTICE
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
Salaries and Wages 0.48 0.25 0.23 0.11 0.959 0.25 0.54
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
MARKETING ACTIVITY/PRACTICE
METRO MANILA BATANGAS ILOILO CEBU DAVAO
peso per kilogram (liveweight)
PANGASINANNUEVA ECIJA
73 Marketing Costs Structure for Swine
40 Marketing Costs Structure for Swine
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
41 Marketing Costs Structure for Swine
72 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER-DISTRIBUTOR
RAISER/ OPERATOR
LIVESTOCK ASSEMBLER-
BUTCHER-MEAT DISTRIBUTOR
AGENT RETAILER TOTALPROVINCE/TERMS OF PAYMENT
71 Marketing Costs Structure for Swine
42 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER-DISTRIBUTOR
RAISER/ OPERATOR
LIVESTOCK ASSEMBLER-
BUTCHER-MEAT DISTRIBUTOR
AGENT RETAILERPROVINCE/MODE OF DELIVERY
43 Marketing Costs Structure for Swine
70 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER-DISTRIBUTOR
LIVESTOCK ASSEMBLER-
BUTCHER-MEAT DISTRIBUTOR
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
69 Marketing Costs Structure for Swine
44 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER-DISTRIBUTOR
LIVESTOCK ASSEMBLER-
BUTCHER-MEAT DISTRIBUTOR
AGENT RETAILER TOTALPROVINCE/ MANNER OF PROCUREMENT
From barangay to
market = P0.501
General Santos
Davao
Within in the province – P2.32
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
45 Marketing Costs Structure for Swine
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.
Marketing Costs and Margins by Channel
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.
68 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER-
BUTCHER- MEAT DISTRIBUTOR
AGENT RETAILER TOTAL
67 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.
46 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER- DISTRIBUTOR
PROVINCE/LENGTH OF EXPERIENCE
LIVESTOCK ASSEMBLER-
BUTCHER- MEAT DISTRIBUTOR
AGENT RETAILER TOTAL
47 Marketing Costs Structure for Swine
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.
62 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER- DISTRIBUTOR
LIVESTOCK ASSEMBLER-
BUTCHER- MEAT DISTRIBUTOR
RAISER/ OPERATOR
65 Marketing Costs Structure for Swine
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.
48 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER- DISTRIBUTOR
LIVESTOCK ASSEMBLER-
BUTCHER- MEAT DISTRIBUTOR
RAISER/ OPERATOR
49 Marketing Costs Structure for Swine
64 Marketing Costs Structure for Swine
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
63 Marketing Costs Structure for Swine
50 Marketing Costs Structure for Swine
Farmer/Raiser Trader
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
51 Marketing Costs Structure for Swine
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
52 Marketing Costs Structure for Swine
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
Selling Price = P65.00 Gross Margin = P64.41
Buying Price = P65.00 Selling Price = P66.50 By-Products = P10.75 Gross Margin = P12.25 Net Margin = P3.45
Buying Price = P95.00 Selling Price = P105.00 Gross Margin = P10.00 Net Margin = P0.64
53 Marketing Costs Structure for Swine
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).
60 Marketing Costs Structure for Swine
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
Selling Price = P51.00 Gross Margin = P50.60
Buying Price = P51.00 Selling Price = P66.00 Gross Margin = P15.00 Net Margin = P14.09
Buying Price = P66.00 Selling Price = P77.00 By-Products = P10.7 Gross Margin = P21.7 Net Margin = P20.28
59 Marketing Costs Structure for Swine
54 Marketing Costs Structure for Swine
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
Labor: 2.67 Others: 6.49 Imputed: 2.22 Total 11.70
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
Selling Price = P55.00
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
Buying Price = P83.00 Selling Price = P110.00 Total Cost = P11.70 Gross Margin = P27.00 Net Margin = P15.30
Buying Price = P75.00 Selling Price = P77.00 Total Cost = P2.74 By-Products = P10.75 Gross Margin = P12.75 Net Margin = P10.01
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
Selling Price = P42.25 Gross Margin = P33.57
Buying Price = P42.25 Selling Price = P42.00 By-Products = P10.75 Gross Margin = P10.50 Net Margin = P9.51
Buying Price = P60.00 Selling Price = P90.00 Gross Margin = P30.00 Net Margin = P28.32
55 Marketing Costs Structure for Swine
58 Marketing Costs Structure for Swine
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 = P56.00 Total Cost = P4.43 Gross Margin = P6.00 Net Margin = P1.57
Buying Price = P69.00 Selling Price = P95.00 Total Cost = P2.11 Gross Margin = P26.00 Net Margin = P23.89
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
Buying Price = P88.00 Selling Price = P110.00 Gross Margin = P22.00 Net Margin = P18.20
RETAILER
57 Marketing Costs Structure for Swine
Total P = 1.72/kg
56 Marketing Costs Structure for Swine
CONSUMER
RAISER
Figure 28. Marketing Costs and Margins by Channel for Swine, Davao, 2002
PLA-SLD
Selling Price = P30.00
Buying Price = P30.00 Selling Price = P35.00 Total Cost = P1.72 Gross Margin = P 5.00 Net Margin = P3.28
Buying Price = P35.0 Selling Price = P6.50 By-Products = P10.75 Total Cost = P2.21 Gross Margin = P42.25 Net Margin = P40.04
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
Selling Price = P56.00 Gross Margin = P55.41
Buying Price = P56.00 Selling Price = P65.00 Total Cost = P0.43 Gross Margin = P9.00 Net Margin = P8.57
Buying Price = P83.00 Selling Price = P77.00 By-Products = P10.75 Gross Margin = P4.75 Net Margin = P2.66
Buying Price = P65.00 Selling Price = P83.00 Gross Margin = P18.00 Net Margin = P18.00
57 Marketing Costs Structure for Swine
Total P = 1.72/kg
56 Marketing Costs Structure for Swine
CONSUMER
RAISER
Figure 28. Marketing Costs and Margins by Channel for Swine, Davao, 2002
PLA-SLD
Selling Price = P30.00
Buying Price = P30.00 Selling Price = P35.00 Total Cost = P1.72 Gross Margin = P 5.00 Net Margin = P3.28
Buying Price = P35.0 Selling Price = P6.50 By-Products = P10.75 Total Cost = P2.21 Gross Margin = P42.25 Net Margin = P40.04
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
Selling Price = P56.00 Gross Margin = P55.41
Buying Price = P56.00 Selling Price = P65.00 Total Cost = P0.43 Gross Margin = P9.00 Net Margin = P8.57
Buying Price = P83.00 Selling Price = P77.00 By-Products = P10.75 Gross Margin = P4.75 Net Margin = P2.66
Buying Price = P65.00 Selling Price = P83.00 Gross Margin = P18.00 Net Margin = P18.00
55 Marketing Costs Structure for Swine
58 Marketing Costs Structure for Swine
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 = P56.00 Total Cost = P4.43 Gross Margin = P6.00 Net Margin = P1.57
Buying Price = P69.00 Selling Price = P95.00 Total Cost = P2.11 Gross Margin = P26.00 Net Margin = P23.89
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
Buying Price = P88.00 Selling Price = P110.00 Gross Margin = P22.00 Net Margin = P18.20
RETAILER
59 Marketing Costs Structure for Swine
54 Marketing Costs Structure for Swine
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
Labor: 2.67 Others: 6.49 Imputed: 2.22 Total 11.70
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
Selling Price = P55.00
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
Buying Price = P83.00 Selling Price = P110.00 Total Cost = P11.70 Gross Margin = P27.00 Net Margin = P15.30
Buying Price = P75.00 Selling Price = P77.00 Total Cost = P2.74 By-Products = P10.75 Gross Margin = P12.75 Net Margin = P10.01
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
Selling Price = P42.25 Gross Margin = P33.57
Buying Price = P42.25 Selling Price = P42.00 By-Products = P10.75 Gross Margin = P10.50 Net Margin = P9.51
Buying Price = P60.00 Selling Price = P90.00 Gross Margin = P30.00 Net Margin = P28.32
53 Marketing Costs Structure for Swine
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).
60 Marketing Costs Structure for Swine
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
Selling Price = P51.00 Gross Margin = P50.60
Buying Price = P51.00 Selling Price = P66.00 Gross Margin = P15.00 Net Margin = P14.09
Buying Price = P66.00 Selling Price = P77.00 By-Products = P10.7 Gross Margin = P21.7 Net Margin = P20.28
52 Marketing Costs Structure for Swine
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
Selling Price = P65.00 Gross Margin = P64.41
Buying Price = P65.00 Selling Price = P66.50 By-Products = P10.75 Gross Margin = P12.25 Net Margin = P3.45
Buying Price = P95.00 Selling Price = P105.00 Gross Margin = P10.00 Net Margin = P0.64
62 Marketing Costs Structure for Swine
50 Marketing Costs Structure for Swine
Farmer/Raiser Trader
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
49 Marketing Costs Structure for Swine
63 Marketing Costs Structure for Swine
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
64 Marketing Costs Structure for Swine
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.
48 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER- DISTRIBUTOR
LIVESTOCK ASSEMBLER-
BUTCHER- MEAT DISTRIBUTOR
RAISER/ OPERATOR
47 Marketing Costs Structure for Swine
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.
65 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER- DISTRIBUTOR
LIVESTOCK ASSEMBLER-
BUTCHER- MEAT DISTRIBUTOR
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.
46 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER- DISTRIBUTOR
PROVINCE/LENGTH OF EXPERIENCE
LIVESTOCK ASSEMBLER-
BUTCHER- MEAT DISTRIBUTOR
AGENT RETAILER TOTAL
45 Marketing Costs Structure for Swine
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.
Marketing Costs and Margins by Channel
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.
67 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER-
BUTCHER- MEAT DISTRIBUTOR
AGENT RETAILER TOTAL
68 Marketing Costs Structure for Swine
44 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER-DISTRIBUTOR
LIVESTOCK ASSEMBLER-
BUTCHER-MEAT DISTRIBUTOR
AGENT RETAILER TOTALPROVINCE/ MANNER OF PROCUREMENT
From barangay to
market = P0.501
General Santos
Davao
Within in the province – P2.32
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
43 Marketing Costs Structure for Swine
69 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER-DISTRIBUTOR
LIVESTOCK ASSEMBLER-
BUTCHER-MEAT DISTRIBUTOR
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
70
Marketing Costs Structure for Swine
42 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER-DISTRIBUTOR
RAISER/ OPERATOR
LIVESTOCK ASSEMBLER-
BUTCHER-MEAT DISTRIBUTOR
AGENT RETAILERPROVINCE/MODE OF DELIVERY
41 Marketing Costs Structure for Swine
71 Marketing Costs Structure for Swine
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
LIVESTOCK ASSEMBLER-DISTRIBUTOR
RAISER/ OPERATOR
LIVESTOCK ASSEMBLER-
BUTCHER-MEAT DISTRIBUTOR
AGENT RETAILER TOTALPROVINCE/TERMS OF PAYMENT
72 Marketing Costs Structure for Swine
40 Marketing Costs Structure for Swine
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
39 Marketing Costs Structure for Swine
73 Marketing Costs Structure for Swine
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
Procurement Hauling 0.167 Handling 0.211
Pre-distribution Slaughtering 1.338 0.831 0.531
Salaries and wages Helper 0.02 Driver 0.32 1.58
TOTAL 1.505 1.171 2.322
Appendix 11a. SWINE (Live): Labor costs incurred by marketing participants, by activity/practice, Metro Manila, 2002
RETAILER
peso per kilogram (liveweight)
MARKETING ACTIVITY/PRACTICE
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
Salaries and Wages 0.48 0.25 0.23 0.11 0.959 0.25 0.54
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
MARKETING ACTIVITY/PRACTICE
METRO MANILA BATANGAS ILOILO CEBU DAVAO
peso per kilogram (liveweight)
PANGASINANNUEVA ECIJA
74
Marketing Costs Structure for Swine
Marketing Costs by Point of Destination
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.
38 Marketing Costs Structure for Swine
Pre-marketing Handling Loading 0.31 Unloading 0.31 Hauling 0.08
Distribution Slaughtering 0.25 Selling 0.09
Salaries and Wages 0.25
TOTAL 0.25 0.17 0.87
MLA-B-SMD
peso per kilogram (liveweight)
Appendix 11b. SWINE (Live): Labor costs incurred by marketing participants, by activity/practice, Pangasinan, 2002
MARKETING ACTIVITY/PRACTICE IRLA-LLD MLA-SLD
MARKETING ACTIVITY/PRACTICE
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
peso per kilogram (liveweight)
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
peso per kilogram (meat)
Table 18b. SWINE (Slaughtered): Total marketing costs, by province, 2002
ITEMMETRO MANILA
PANGA-SINAN
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
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
P11.13 per kilogram.
Davao respondents have the lowest estimate of trading expenses at P1.86.
37 Marketing Costs Structure for Swine
75 Marketing Costs Structure for Swine
Distribution
Handling 0.10 0.12
Salaries and Wages 0.08 0.15
TOTAL 0.18 0.15 0.12
peso per kilogram (liveweight)
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
Salaries and Wages 0.959
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
peso per kilogram (liveweight)
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
peso per kilogram (liveweight)
Table 18a. SWINE (Live): Total marketing costs, by province, 2002
BATANGAS ILOILO CEBU DAVAOITEMMETRO MANILA
PANGA-SINAN
NUEVA ECIJA
76 Marketing Costs Structure for Swine
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).
36 Marketing Costs Structure for Swine
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
Salaries and Wages 0.35 0.21
TOTAL 2.56 0.10 0.10 0.26 0.20 0.80
a/ include chopping and slicing
peso per kilogram (liveweight)
Appendix 11f. SWINE (Live): Labor costs incurred by marketing participants,by activity/practice, Cebu, 2002
MARKETING ACTIVITY/PRACTICE
RAISER/ OPERATOR
PLA-LLD BLA - SLD RLA-B-SMD PLA-B-SMD RETAILER
IRLA-LLD- IRLA- RLA- PLA- RLA- PLA-LLD- PLA- MLA- MLA- BLA-
B-SMD MLD LLD LLD SLD B-MR SLD LLD SLD LLD
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
peso per kilogram (liveweight)
MARKETING ACTIVITY/ PRACTICE
ITEMMETRO MANILA
PANGA-SINAN
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
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
peso per kilogram (liveweight)
Table 17a. SWINE (Live): Imputed cost of depreciation/labor incurred by respondents,by cost item, by province, 2002
ITEMMETRO MANILA
PANGA-SINAN
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
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
peso per kilogram (meat)
Table 17b. SWINE (Slaughtered): Imputed cost of depreciation/labor incurred by respondents, by cost item, by province, 2002
35 Marketing Costs Structure for Swine
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.
77 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
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
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
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
peso per kilogram (meat)
Table 16b. SWINE (Slaughtered): Other operating costs incurred by respondents,by cost item, by province, 2002
ITEM PLA-B-SMD RETAILER
Procurement 1.40 0.21
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
Marketing Costs Structure for Swine
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.
34 Marketing Costs Structure for Swine
Procurement 0.11 0.84 0.82
Distribution 0.15 0.73 0.29
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
peso per kilogram (liveweight)
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
peso per kilogram (liveweight)
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
ITEM RAISER/ OPERATOR
METRO MANILA
PANGA-SINAN
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
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
peso per kilogram (liveweight)
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.
33 Marketing Costs Structure for Swine
79 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
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
BATANGAS ILOILO CEBU
peso per kilogram (liveweight)
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
peso per kilogram (meat)
ACTIVITY/PRACTICEMETRO MANILA
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
peso per kilogram (liveweight)
Appendix 13. SWINE (Live): Cost of material inputs incurred by marketingparticipants, by activity/practice/item,
by province, Philippines, 2002
80 Marketing Costs Structure for Swine
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.
32 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
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
peso per kilogram (liveweight)
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
ACTIVITY/PRACTICEMETRO MANILA
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
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
peso per kilogram (meat)
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.
31 Marketing Costs Structure for Swine
81 Marketing Costs Structure for Swine
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
NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
peso per kilogram (meat)
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
peso per kilogram (Liveweight)
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
peso per kilogram (liveweight)
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
peso per kilogram (liveweight)
82
Marketing Costs Structure for Swine
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.
30 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
ITEM METRO MANILA
PANGASINAN NUEVA ECIJA
BATANGAS ILOILO CEBU DAVAO
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
peso per kilogram (liveweight)
i Marketing Costs Structure for Swine
29 Marketing Costs Structure for Swine
83 Marketing Costs Structure for Swine
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
Business permit 0.058
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
peso per kilogram (liveweight)
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
peso per kilogram (liveweight)
i Marketing Costs Structure for Swine
84
Marketing Costs Structure for Swine
28 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
ITEM RAISER/ OPERATOR
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
peso per kilogram (liveweight)
Appendix 14d . SWINE (Live): Other operating costs incurred by marketing participants, by item, Batangas, 2002
27 Marketing Costs Structure for Swine
85 Marketing Costs Structure for Swine
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
Appendix 14e. SWINE (Live): Other operating costs incurred by marketing participants, by item, Iloilo, 2002
peso per kilogram (liveweight)
86
Marketing Costs Structure for Swine
26 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
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
Appendix 14g. SWINE (Live): Other operating costs incurred by marketing participants, by item, Davao, 2002
peso per kilogram (liveweight)
ITEM B-MR
25 Marketing Costs Structure for Swine
87 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
Appendix 15. SWINE (Live): Imputed cost of depreciation/labor incurred by respondents,by material/facilities/equipment, by province, Philippines, 2002
88
Marketing Costs Structure for Swine
24 Marketing Costs Structure for Swine
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
Appendix 15a. SWINE (Live): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities/equipment used, Metro Manila, 2002
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
peso per kilogram (liveweight)
Appendix 15b. SWINE ( Live): Imputed costs of labor and depreciation incurred by marketing participants, by material/facilities/equipment used, Pangasinan, 2002
23 Marketing Costs Structure for Swine
89 Marketing Costs Structure for Swine
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
peso per kilogram (liveweight)
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
peso per kilogram (liveweight)
ITEM RAISER/OPERATOR
90 Marketing Costs Structure for Swine
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.
22 Marketing Costs Structure for Swine
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
Materials Butcher's knife/knives 0.004
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
peso per kilogram (liveweight)
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.
21 Marketing Costs Structure for Swine
91 Marketing Costs Structure for Swine
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,
peso per kilogram (meat)
by province, Philippines, 2002
MARKETING ACTIVITY/PRACTICE METRO MANILA PANGASINAN
NUEVA ECIJA BATANGAS ILOILO CEBU
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
92
Marketing Costs Structure for Swine
20 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
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
peso per kilogram (meat)
MARKETING ACTIVITY/PRACTICE PLA-B-SMD MLA-B-SMD
19 Marketing Costs Structure for Swine
93 Marketing Costs Structure for Swine
Distribution
Handling
Selling
Salaries and Wages 0.05
TOTAL 0.05
RETAILERMARKETING ACTIVITY/PRACTICE
peso per kilogram (meat)
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
Salaries and Wages 1.331
TOTAL 0.319 2.037
Appendix 16e. SWINE (Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Iloilo, 2002
MARKETING ACTIVITY/PRACTICE
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
peso per kilogram (meat)
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
Marketing Costs Structure for Swine
18 Marketing Costs Structure for Swine
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
MARKETING ACTIVITY/PRACTICE
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
peso per kilogram (meat)
Appendix 16g. SWINE ( Slaughtered): Labor costs incurred by marketing participants, by activity/practice, Davao, 2002
17 Marketing Costs Structure for Swine
95 Marketing Costs Structure for Swine
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
PANGASINAN NUEVA ECIJA
BATANGAS ILOILO CEBU DAVAO
Procurement 0.456 0.29 0.75 0.41 0.04
Distribution 0.31 0.645 0.19
TOTAL 0.46 0.31 0.29 1.395 0.41 0.23
peso per kilogram (meat)
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
peso per kilogram (meat)
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)
MARKETING ACTIVITY/PRACTICE
96
Marketing Costs Structure for Swine
16 Marketing Costs Structure for Swine
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
MARKETING ACTIVITY/PRACTICE RETAILER
15 Marketing Costs Structure for Swine
97 Marketing Costs Structure for Swine
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
PROCUREMENT Chopping board 0.003
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
peso per kilogram (meat)
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
peso per kilogram (meat)
Appendix 17f. SWINE (Slaughtered): Transportation costs incurred by marketing participants, by activity/practice, Davao, 2002
98
Marketing Costs Structure for Swine
14 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
ITEM IRLA-B-LMD IRLA-B-SMD RETAILER
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
peso per kilogram (meat)
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.
13 Marketing Costs Structure for Swine
99 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
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
peso per kilogram (meat)
Appendix 18d. SWINE (Slaughtered): Cost of material inputs incurred by marketing participants, by item, Batangas, 2002
ITEM RETAILERMLA-B-SMD
100
Marketing Costs Structure for Swine
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.
12 Marketing Costs Structure for Swine
Distribution
Sacks 0.014
Plastic bag 0.062
TOTAL 0.014 0.062
peso per kilogram (meat)
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
peso per kilogram (meat)
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
peso per kilogram (meat)
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.
11 Marketing Costs Structure for Swine
101 Marketing Costs Structure for Swine
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
BATANGAS ILOILO CEBU DAVAO CITY
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
peso per kilogram (meat)
Appendix 19. SWINE(Slaughtered): Other operating costs incurred by respondents,
102
Marketing Costs Structure for Swine
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.
10 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
Appendix 19a. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Metro Manila, 2002
ITEM IRLA-B-LMD IRLA-B-SMD RETAILER
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.
9 Marketing Costs Structure for Swine
103 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
Appendix 19c. SWINE (Slaughtered): Other operating costs incurred by marketing participants, by item, Nueva Ecija, 2002
104
Marketing Costs Structure for Swine
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.
8 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
ITEM RLA-B-SMD PLA-B-SMD RETAILER
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
peso per kilogram (meat)
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
BATANGAS ILOILO CEBUDAVAO DEL SUR
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).
7 Marketing Costs Structure for Swine
105 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
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
peso per kilogram (meat)
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
DAVAO CITY TOTAL PERCENT
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
106
Marketing Costs Structure for Swine
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.
6 Marketing Costs Structure for Swine
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
Facilities Stall 1.436
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
peso per kilogram (meat)
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.
5 Marketing Costs Structure for Swine
107 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
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
108 Marketing Costs Structure for Swine
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.
4 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
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
peso per kilogram (meat)
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.
III. Discussion of Results
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).
3 Marketing Costs Structure for Swine
109 Marketing Costs Structure for Swine
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
peso per kilogram (meat)
Appendix 20e. SWINE (Slaughtered): Imputed costs of labor and depreciation incurred by marketing participants, by item, Iloilo, 2002
ITEM PLA-B-SMD RETAILER
110 Marketing Costs Structure for Swine
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).
2 Marketing Costs Structure for Swine
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;
1 Marketing Costs Structure for Swine
111 Marketing Costs Structure for Swine
Peso per kilogram Peso per head(liveweight) of 80 kgs
Raisers:
Selling price at farmgate 51.00 4080.00Total marketing costs 5.98 478.40
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:
Selling price 105.00 5880.00*Value of by-products (14.33% x P75)** 10.75 860.00Total marketing costs 6.48 518.40Net costs of by-products (10.75 - 6.48) 4.27 341.60Margin = [73.50 + 4.27 – 60.00] 17.77 1421.60
* Recovery rate = 70%** Offals only at average price of P75/kg
Appendix 21a. Marketing Costs and Margins for Swine in Pangasinan, 2002
Peso per kilogram Peso per head(liveweight) of 80 kgs
Raisers:
Selling price at farmgate 65.00 5200.00Total marketing costs 0.59 47.20
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
* Recovery rate = 70%** Offals only at average price of P75/kg
Appendix 21b. Marketing Costs and Margins for Swine in Nueva Ecija, 2002
112
Marketing Costs Structure for Swine
Peso per kilogram Peso per head(liveweight) of 80 kgs
Raisers:
Selling price at farmgate 51.00 4080.00Total marketing costs 0.40 32.00
Provincial Livestock Assembler - Large Livestock Distributor (PLA-LLD):
Selling price 66.00 5280.00Total marketing costs 0.91 72.80Margin = 66.00 – 51.00 – 0.91 14.09 1127.20
Buyer Outside the Province (BOP) Retailer:
Selling price 110.00 6160.00*Value of by-products (14.33% x P75)** 10.75 860.00Total marketing costs 1.47 117.60Net costs of by-products (10.75 - 1.47) 9.28 742.40Margin = [77.00 + 9.28 – 66.00] 20.28 1622.40
* Recovery rate = 70%** Offals only at average price of P75/kg
Appendix 21c. Marketing Costs and Margins for Swine in Batangas, 2002
Peso per kilogram Peso per head(liveweight) of 80 kgs
Raisers:
Selling price at farmgate 42.25 3380.00Total marketing costs 8.68 694.40
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:
Selling price 90.00 5040.00Total marketing costs 1.68 94.08Margin = (90.00 – 60.00 – 1.68) 28.32 1585.92
* Recovery rate = 70%** Offals only at average price of P75/kg
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
28. Marketing Costs and Margins by Channel for Swine, Davao, 2002
57
29. Marketing Costs and Margins by Channel for Swine, Davao, 2002
58
30. Marketing Costs and Margins by Channel for Swine, Metro Manila, 2002
59
vi Marketing Costs Structure for Swine
113 Marketing Costs Structure for Swine
Peso per kilogram Peso per head(liveweight) of 80 kgs
Raisers:
Selling price at farmgate 56.00 4480.00Total marketing costs 0.59 47.20
Interregional Livestock Assembler-Small Livestock Distributor (IRLA-SLD):
Selling price 65.00 5200.00Total marketing costs 0.43 34.40Margin = (65.00 – 56.00 – 0.43) 8.57 685.60
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
* Recovery rate = 70%** Offals only at average price of P75/kg
Appendix 21f. Marketing Costs and Margins for Swine in Cebu, 2002
Peso per kilogram Peso per head(liveweight) of 80 kgs
Raisers:
Selling price at farmgate 66.00 5280.00Total marketing costs 8.68 694.40
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:
Selling price 110.00 6160.00Total marketing costs 3.80 212.80Margin = (110.00 – 88.00 – 3.80) 18.20 1019.20
* Recovery rate = 70%** Offals only at average price of P75/kg
Appendix 21e. Marketing Costs and Margins for Swine in Iloilo, 2002
114 Marketing Costs Structure for Swine
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
Peso per kilogram Peso per head(liveweight) of 200 kgs
Raisers:
Selling price at farmgate 30.00 6000.00
Provincial Livestock Assembler-Small Livestock Distributor (PLA-SLD):
Selling price 35.00 7000.00Total marketing costs 1.72 344.00Margin = (35.00 – 30.00 – 1.72) 3.28 656.00
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
* Recovery rate = 70%** Offals only at average price of P75/kg
Appendix 21g. Marketing Costs and Margins for Swine in Davao, 2002
Peso per kilogram Peso per head(liveweight) of 80 kgs
Raisers:
Selling price at farmgate 50.00 4000.00
Interregional Livestock Assembler- Large Livestock Distributor (IRLA-LLD):
Selling price 56.00 4480.00Total marketing costs 4.56 364.80Margin = (56.00 – 50.00 – 4.56) 1.44 115.20
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
* Recovery rate = 70%** Offals only at average price of P75/kg
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
115 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
Peso per kilogram Peso per head(liveweight) of 80 kgs
Supplier Outside the Province (SOP):
Selling price at farmgate 55.00 4400.00
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:
Selling price 110.00 6160.00Total marketing costs 1.07 59.92Margin = (110.00 – 83.00 – 1.07) 25.93 1452.08
* Recovery rate = 70%** Offals only at average price of P75/kg
Appendix 21j. Marketing Costs and Margins for Swine in Metro Manila, 2002
116 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