Value Chain Analysis of Calamansi citrus madurencis

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Value Chain Analysis of Calamansi(citrus
madurencis)

• PhilDHRRA LSFM Project
• June 8, 2008
• Hanoi, Vietnam

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Outline

• Background of the Study
• Calamansi in Philippine context
• Production, Costs and Returns
• Trading and Marketing
• Prices
• The simple Value Chain Framework
• Next Steps

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Background of the Study

• Part of the research component of the LSFM
  project
• Describe the market chain and chain actors
  involved
• Understand the dynamics in the calamansi market
• Limited to Phase 1 of the VCA only

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Calamansi in Philippine Context

• One of the major fruit crops and is excellent
  source of Vitamin C
• Sold as fresh product to markets and commercial
  buyers
• Processed into syrups, juices, concentrates,
  powder and purees, and has many medicinal uses
• Has contributed to agricultural export market,
  but not a major export crop
• Major source is Central Philippines and some
  portions of Mindanao

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Production, Costs and Returns

• Calamansi production was decreasing (2000-2004)
  but reversed this trend in 2005 onwards
• Yields averaged 9 tons per hectare in the last 7
  years (2000-2006)
• Major source is in Oriental Mindoro province
  (60), but they can only harvest 4-6 months in a
  year
• Southern Philippines (Mindanao) contribute only
  15 of total production, but they can harvest
  year-round
• Average farm size is ¼ hectare, although 20 of
  calamansi farmers cultivate more than 1 hectare
  of land

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Production, Costs and Returns

• Two ways of looking at costs
• Cash Non-Cash and Imputed COSTS
• VARIABLE and FIXED COSTS

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Production, Costs and Returns

• Cash Cost Approach in Calamansi (Php) - 1997

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Production, Costs and Returns

• Production Costs (Case study in Zamboanga
  Sibugay, 2005)

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Production, Costs and Returns

• Costs (/ha) Php 26,000 (US 604)
• Production (/ha) 9 tons/hectare (average)
• Farmgate Price Php 116,700/ton
• (US 2,714/ton)
• Revenue Php 90,000/ton
• (US 2,090/ton)

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Trading and Marketing

• Disposition of the Product
• 97.5 Sold
• 1.2 Wastage/Shrinkage
• 1.3 Payments (Rents/loans/shares)

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Trading and Marketing
Calamansi Simple Chain Actors
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Trading and Marketing

• What we know
• The major trading hub is Metro Manila
• All producers supply outside of their province
• Direct marketing of fresh calamansi can be
  profitable for farmers
• Engaging in processed calamansi is more
  profitable
• Entering the industrial use market will be more
  exciting

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Prices (Php)
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Simple Value Chain
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Trading and Marketing

• What we have to find out (Phase 2)
• Who are the players in the industrial market use?
• How much is the market segmentation?
• What are the price differentiation in each
  industrial market segment?

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Next Steps

• Do Primary Data-Gathering in 2 provinces
• Complete the data-gaps in the VCA
• Industrial market
• Product inventory
• Capacity-assessment of calamansi farmers
• Initiate capacity-building activities

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• THANK YOU!

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Value Chain Analysis of Calamansi(citrus
madurencis)

• PhilDHRRA LSFM Project
• June 8, 2008
• Hanoi, Vietnam