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Marketing Costs Structure for Swine i

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
Marketing Costs Structure for Swine ii

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
iii Marketing Costs Structure for Swine Marketing Costs Structure for Swine 117

STATISTICAL TABLES
Appendix 22. SWINE: Distribution of respondents, by problem s encountered
by province, Philippines, 2002
1. SWINE : Distribution of respondents, by type and by province, 2002 3
2. SWINE : Distribution of respondents, by type of marketing participants, PROBLEMS
METRO
PANGASINAN BATANGAS
NUEVA
ILOILO CEBU DAVAO
by province, Philippines, 2002 5 MANILA ECIJA

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


1. Credit and delayed 1 2 2 1 2
by province, 2002 6
payment. 2 3
4. SWINE : Distribution of raiser-respondents by classification, 2. Lack of capital. 2
by province, 2002 6 3. High cost of mayor's 1
permit.
5. SWINE : Distribution of respondents by nature of capitalization, 4. Few buyers. 2 4 1 1 5
by province, 2002 7
5. High cost of rental 2 5 1
6. SWINE : Distribution of respondents by type of business ownership, fee
by province, 2002 7 6. Non payment of 3 2 2 1 5 2
debt/loan 2 3 3 2
7. SWINE : Distribution of respondents, by length of experience, 7. Low demand. 7 2 1 1
by province, 2002 8 8. Low prices offered 1 1 8 5 5

8. SWINE : Distribution of trader respondents, by percentage share to by buyers.


total business, by province, 2002 9 9. Price fluctuation 1 2 3 1
10. Unavailability of 3 1
9. SWINE : Distribution of respondents, by manner of procurement, supply. 2
by province, 2002 9 11. Animal bought are 3
not w eighted (estimate) 1
10. SWINE : Distribution of respondents, by mode of payment in buying
12. Illegal vending of pork 2
stocks, by province, 2002 10
in Talipapa
11. SWINE : Distribution of respondents, by manner of distribution, 13. Complain of bad odor 2 1
by province, 2002 11 by neighbor.
14. No assured buyers.
12. SWINE : Distribution of respondents, by terms of payment,
15. High production cost 2
by province, 2002 11
16. No problems 5 24 21 2 5
13a. SWINE : Labor costs by marketing activity/ practice, by province, 2002 30 17. Poor quality of meat 1 1
18. High mortality rate during 3
13b. SWINE : Labor costs by marketing activity/ practice, by province, 2002 31 transport
14a. SWINE : Transportation costs by marketing activity/ practice, 19 Afraid of FMD 2 1 2 2 2
by province, 2002 31
TOTAL 18 26 32 43 17 32 19
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
116 Marketing Costs Structure for Swine Marketing Costs Structure for Swine iv

STATISTICAL TABLES
Appendix 21i. Marketing Costs and Margins for Sw ine in Metro Manila, 2002

Peso per kilogram Peso per head 16a. SWINE : Other operating costs incurred by respondents, by cost
(livew eight) of 80 kgs
item, by province, 2002 34
Supplier Outside the Province (SOP):
16b. SWINE : Other operating costs incurred by respondents, by cost
Selling price at farmgate 61.00 4880.00 item, by province, 2002 35
Interregional Livestock Assembler - Small Livestock Distributor (IRLA-SLD): 17a. SWINE : Imputed cost of depreciation/labor incurred by
respondents, by cost item, by province, 2002 36
Selling price 75.00 6000.00
Total marketing costs 0.09 7.20 17b. SWINE : Imputed cost of depreciation/labor incurred by
Margin = (75.00 – 61.00 – 0.09) 13.91 1112.80
respondents, by cost item, by province, 2002 36
Retailers:
18a. SWINE : Total marketing costs, by province, 2002 37
Selling price 110.00 6160*
Total marketing costs 2.74 219.20 18b. SWINE : Total marketing costs, by province, 2002 38
Value of by-products (14.33% x P75)** 10.75 860.00
Net costs of by-products (10.75 - 2.74) 8.01 640.80
Margin = [77.00 + 8.01 – 75.00] 10.01 800.80 19. SWINE : Marketing costs for swine, by point of destination, 2002 49

* Recovery rate = 70% 20. SWINE : Marketing Costs and Marketing Channel, by province,
** Offals only at average price of P75/kg
2002 50

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

Peso per kilogram Peso per head


(livew eight) 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 4.34 347.20
Value of by-products (14.33% x P75)** 10.75 860.00
Net costs of by-products (10.75 - 4.34) 6.41 512.80
Margin = [58.10 + 6.41 - 55.00] 9.51 760.80

Retailers:

Selling price 110.00 6160.00


Total marketing costs 1.07 59.92
Margin = (110.00 – 83.00 – 1.07) 25.93 1452.08

* Recovery rate = 70%


** Offals only at average price of P75/kg
v Marketing Costs Structure for Swine Marketing Costs Structure for Swine 115

LIST OF FIGURES
Appendix 21g. Marketing Costs and Margins for Sw ine in Davao, 2002

Peso per kilogram Peso per head


Figure no. Page no. (livew eight) of 200 kgs

Raisers:
1. Tracing Approach 2
Selling price at farmgate 30.00 6000.00
2. Geographic Flow of Swine in Pangasinan, 2002 14
Provincial Livestock Assembler-Small Livestock Distributor (PLA-SLD):
3. Geographic Flow of Swine in Nueva Ecija, 2002 15
Selling price 35.00 7000.00
4. Geographic Flow of Swine in Batangas, 2002 16 Total marketing costs 1.72 344.00
Margin = (35.00 – 30.00 – 1.72) 3.28 656.00
5. Geographic Flow of Swine in Iloilo, 2002 17
Retailers:
6. Geographic Flow of Swine in Cebu, 2002 18
Selling price 95.00 13300.00*
7. Geographic Flow of Swine in Davao, 2002 19 Value of by-products (14.33% x P75) 10.75 860.00
Total marketing costs 2.21 442.00
8. Geographic Flow of Swine in Metro Manila, 2002 20 Net costs of by-products (10.75 - 2.21) 8.54 1708.00
Margin = [66.50 + 8.54 – 35.00] 40.04 8008.00
9. Marketing Channels for Swine in Pangasinan, 2002 23
* Recovery rate = 70%
10. Marketing Channels for Swine in Nueva Ecija, 2002 24 ** Offals only at average price of P75/kg

11. Marketing Channels for Swine in Batangas, 2002 25


12. Marketing Channels for Swine in Iloilo, 2002 26
Appendix 21h. Marketing Costs and Margins for Sw ine in Davao, 2002
13. Marketing Channels for Swine in Cebu, 2002 27 Peso per kilogram Peso per head
(livew eight) of 80 kgs
14. Marketing Channels for Swine in Davao, 2002 28
Raisers:
15. Marketing Channels for Swine in Metro Manila, 2002 29
Selling price at farmgate 50.00 4000.00
16. Average Marketing Costs for Swine, by destination in
Interregional Livestock Assembler- Large Livestock Distributor (IRLA-LLD):
Pangasinan, 2002 39
Selling price 56.00 4480.00
17. Average Marketing Costs for Swine, by destination in Total marketing costs 4.56 364.80
Nueva Ecija, 2002 40 Margin = (56.00 – 50.00 – 4.56) 1.44 115.20

18. Average Marketing Costs for Swine, by destination in Butcher- Small M eat Distributor (B-SM D):
Batangas, 2002 41 Selling price 69.00 3864.00*
Value of by-products (14.33% x P75)** 10.75 860.00
19. Average Marketing Costs for Swine, by destination in Total marketing costs 1.32 105.60
Iloilo, 2002 42 Net costs of by-products (10.75 - 1.32) 9.43 754.40
Margin = [48.30 + 9.43 – 56.00] 1.73 138.40
20. Average Marketing Costs for Swine, by destination in
Cebu, 2002 43 Retailers:

21. Average Marketing Costs for Swine, by destination in Selling price 95.00 5320.00
Total marketing costs 2.11 118.16
Davao, 2002 44 Margin = [95.00 - 2.11 – 69.00] 23.89 1337.84
22. Marketing Costs and Margins for Hogs, by Channel, * Recovery rate = 70%
Pangasinan, 2002 51 ** Offals only at average price of P75/kg
114 Marketing Costs Structure for Swine Marketing Costs Structure for Swine vi

LIST OF FIGURES
Appendix 21e. Marketing Costs and Margins for Sw ine in Iloilo, 2002

Peso per kilogram Peso per head


(livew eight) of 80 kgs Figure no. Page no.

Raisers:
23. Marketing Costs and Margins for Hogs, by Channel,
Selling price at farmgate 66.00 5280.00 Nueva Ecija, 2002 52
Total marketing costs 8.68 694.40
24. Marketing Costs and Margins for Hogs, by Channel,
Interregional Livestock Assembler-Butcher-Large M eat Distributor (IRLA-B-LM D):
Batangas, 2002 53
Selling price 88.00 4928.00*
Value of by-products (14.33% x P75)** 10.75 860.00 25. Marketing Costs and Margins for Hogs, by Channel,
Total marketing costs 5.42 433.60 Iloilo, 2002 54
Net costs of by-products (10.75 - 5.42) 5.33 426.40
Margin = (61.60 - 66.00 +5.33) 0.93 74.40 26. Marketing Costs and Margins for Commercial Hog Farm,
Iloilo, 2002 55
Retailers:
27. Marketing Costs and Margins by Channel for Swine,
Selling price 110.00 6160.00
Total marketing costs 3.80 212.80
Cebu, 2002 56
Margin = (110.00 – 88.00 – 3.80) 18.20 1019.20
28. Marketing Costs and Margins by Channel for Swine,
* Recovery rate = 70% Davao, 2002 57
** Offals only at average price of P75/kg
29. Marketing Costs and Margins by Channel for Swine,
Davao, 2002 58
Appendix 21f. Marketing Costs and Margins for Sw ine in Cebu, 2002
30. Marketing Costs and Margins by Channel for Swine,
Peso per kilogram Peso per head
(livew eight) of 80 kgs
Metro Manila, 2002 59
Raisers:

Selling price at farmgate 56.00 4480.00


Total marketing costs 0.59 47.20

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

Selling price 65.00 5200.00


Total marketing costs 0.43 34.40
Margin = (65.00 – 56.00 – 0.43) 8.57 685.60

Stockyard/Slaughterhouse:

Selling price 83.00 6640.00


Total 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)** 10.75 860.00
Total marketing costs 2.09 167.20
Net costs of by-products (10.75 – 2.09) 8.66 692.80
Margin = [77.00 + 8.66 - 83.00] 2.66 212.80

* Recovery rate = 70%


** Offals only at average price of P75/kg
112 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 1

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

Peso per kilogram Peso per head


MARKETING COSTS STRUCTURE FOR SWINE
(livew eight) of 80 kgs
Raisers:

Selling price at farmgate 51.00 4080.00 I. Introduction


Total marketing costs 5.98 478.40
Statistical information on production and marketing costs of agricultural
Interregional Livestock Assembler - Large Livestock Distributor (IRLA-LLD):
commodities are important inputs to policy makers particularly in the determination of the
Selling price 60.00 4800.00 type of assistance to be provided to the small and marginal farmers. In the past, data
Total marketing costs 7.21 576.80 collection efforts have been focused on production costs. In more recent years, increasing
Margin = 60.00 – 51.00 – 7.21 1.79 143.20 attention has been given to marketing costs and margins in response to the growing
demand for these information.
Retailer:

Selling price 105.00 5880.00*


For the past two years, the Bureau of Agricultural Statistics (BAS) has conducted
Value of by-products (14.33% x P75)** 10.75 860.00
marketing studies for selected high value commercial crops with support from the High
Total marketing costs 6.48 518.40 Value Commercial Crops (HVCC) Program of the Department of Agriculture. These
Net costs of by-products (10.75 - 6.48) 4.27 341.60 studies were extended to the livestock and poultry products to address the information
Margin = [73.50 + 4.27 – 60.00] 17.77 1421.60 needs in the sub-sector.

* Recovery rate = 70% In particular, the BAS conducted a study which identifies and measures the various
** Offals only at average price of P75/kg
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
Appendix 21b. Marketing Costs and Margins for Sw ine in Nueva Ecija, 2002 intended for policy makers, analysts, consumers as well as investors in the livestock
industry.
Peso per kilogram Peso per head
(livew eight) of 80 kgs
The Commodity and Its Economic Importance
Raisers:

Selling price at farmgate 65.00 5200.00 Swine, otherwise known as hog, is one of the domesticated members of the
Total marketing costs 0.59 47.20 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
Provincial Livestock Assembler - Butcher-Large M eat Distributor (PLA-B-LM D): boar, the female, sow, and the young, pig (www.hyperdictionary.com).
Selling price 95.00 5320.00
Swine are valuable for their flesh which can be prepared as bacon, ham and pork
Value of by-products (14.33% x P75)** 10.75 860.00
Total marketing costs 8.80 704.00
and for the fat or lard. They also provide many products like leather for gloves, footballs,
Net costs of by-products (10.75 - 8.80) 1.95 156.00 and other articles, and for bristles for brushes. Hogs are commonly grouped as meat-type
Margin = 66.50 + 1.95 – 65.00 3.45 276.00 or lard-type.

Retailer: Objectives
Selling price 105.00 5880.00*
Total marketing costs 9.36 524.16 The main objectives of the study are:
Margin = [105.00 – 95.00 - 9.36] 0.64 35.84
a) To determine the marketing costs structure by type of marketing participants in
* Recovery rate = 70% major swine producing areas and trading centers;
** Offals only at average price of P75/kg
2 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 111

Appendix 20f. SWINE (Slaughtered): Im puted cost of


b) To compare marketing costs structures across trading centers and trading seasons; depreciation by m arketing participants, by m aterials/facilities
and and equipm ent used, Cebu, 2002

c) To establish benchmark data on the average costs of the various marketing ITEM RETAILER
components.
peso per kg. (meat)

Scope and Limitations


Material Used
Slicing tools a/ 0.01
The study traced the flow and the marketing channels for swine starting from the Ice bucket 0.001
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 Equipm ent
provinces, and none from those produced in the other supply provinces which contributed Weighing Scale 0.01
significant quantity in the demand province. Meat Grinder 0.02

Labor 0.54
II. Methodology
TOTAL 0.58

The study employed the tracing approach starting from the supply level (production) a/ includes knife, bolo, hasaan
to the demand (consumption) level (Figure 1).

Appendix 20g. SWINE (Slaughtered): Imputed costs of labor and depreciation


incurred by marketing participants, by material/facilities/equipment used, Davao,
2002
Supply Supply Supply
Area 1 Area 2 Area 3 IRLA-LLD- BLA-B
ITEM B-MR
B-SMD MR
peso per kilogram (meat)

EQUIPMENT
Cellular phone 0.001 0.030
Weighing scale 0.040 0.020
Hook 0.001 a/
Trading
Center Calculator 0.020 0.010
Aluminum tray 0.004
Cash box 0.020
Meat grinder 0.020 0.020

MATERIALS
Knife 0.003

Demand Plywood 0.005


Areas Hasaan (steel) a/
Pail 0.002

Figure 1. Tracing Approach TOTAL 0.001 0.11 0.08


110 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 3

Appendix 20d. SWINE (Slaughtered): Imputed cost of depreciation/labor by marketing Research Coverage
participants, by materials/facilities and equipment used, Batangas, 2002
The study covered key supply and demand areas in Luzon, Visayas and Mindanao.
ITEM MLA-B-SMD RETAILER
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
peso per kilogram (meat) areas.
Material Used The tracing approach started from the producing barangays of the identified
Knife 0.002 0.01
municipalities by province. The top two (2) producing barangays were chosen to represent
Chopping board 0.001 0.002
Hook 0.001 each municipality.
"Hasaan" (steel) 0.001 0.001
From the farm level, the traders were traced based on the identification of raiser-
Equipment respondents. Most of the traders are located in the Livestock “Oksyon” Markets (LOMs).
Weighing Scale 0.02 0.02
The study then moved to the next point of sale consisting of the retail markets within the
Electric fan 0.002 0.01
Chair 0.001 province.
Calculator 0.002
Freezer 0.01 Selection of Sample Respondents
Meat Grinder 0.002
Cash box (stainless) 0.001 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
Labor 0.34 0.96
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.
TOTAL 0.37 1.02

III. Discussion of Results


Appendix 20e. SWINE (Slaughtered): Im puted costs of labor and depreciation
incurred by m arketing participants, by item , Iloilo, 2002 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.
ITEM RLA-B-SMD PLA-B-SMD RETAILER
Part II presents the marketing costs components.
peso per kilogram (meat)
Distribution of Respondents. There were two groups of respondents for the
Materials
study: raisers/operators and traders. A total of 146 swine raisers was interviewed from the
Butcher's knife/knives 0.006 producing barangays/municipalities. At the trading center level, a total of 134 respondents
was interviewed (Table 1).
Equipm ent
Cellphone 0.009 T ab le 1 . S W IN E : D is trib u tio n o f re s p o n d e n ts , b y typ e
Calculator a/ a n d b y p ro v in c e , 2 0 0 2
Weighing scale a/ 0.008
Telephone 0.005 NUM BER O F RESPO NDENTS
Grinder 0.001 P R O V IN C E TO TAL
F a rm e r/R a is e r T ra d e r
Table 0.026
Sharpener 0.008 M etro M a n ila - 38 38
P a n ga s in a n 30 11 41
Transportation N u ev a E c ija 29 15 44
Truck 0.068 B a ta n g a s 30 19 49
Tricycle/sidecar 0.101 Ilo ilo 24 12 36
Jeep a/ C eb u 20 23 43
D a v ao d el S u r 12 9 21
D a v ao C ity 1 7 8
TOTAL 0.068 0.115 0.049
TO TAL 146 134 280
4 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 109

Appendix 20b. SWINE ( Slaughtered): Imputed costs of labor and depreciation incurred by
marketing participants, by material/facilities/equipment used, Pangasinan, 2002
Types of traders. Trader-respondents were classified based on their sphere of
influence in performing their procurement and distribution activities. This study has
ITEM RAISER/ OPERATOR PLA-B-SMD MLA-B-SMD
identified six types of traders: livestock assemblers; livestock distributors; livestock
assembler-livestock distributors; livestock assembler-butcher-meat distributors; peso per kilogram (meat)
agent and retailers. These types of traders were defined as follows:
Materials
Bolo 0.01 0.004
1. Livestock Assembler – procures live animals from raisers or LOMs Knife 0.01 0.002
Meat hanger 0.001
a) Barangay Livestock Assembler (BLA) – procures from one barangay or
one LOM or pooling place Equipment
Weighing scale a/ 0.08 0.01
b) Municipal Livestock Assembler (MLA) - procures from 2 or more Grinding machine 0.07 0.03
barangays or LOM or pooling place Freezer 0.08 0.01
Electric/exhaust fan 0.003
c) Provincial Livestock Assembler (PLA) – procures from 2 or more LOMs or
Chairs 0.05
2 or more municipalities within the province
Tables a/
d) Regional Livestock Assembler (RLA) – procures from 2 or more provinces 0.87 0.49
Labor
within the region
TOTAL 0.07 1.10 0.54
e) Interregional Livestock Assembler (IRLA) – procures from provinces
a/ include all kind of weighing scale
outside the region

2. Livestock Distributor – sells live animals Appendix 20c. SWINE (Slaughtered): Imputed costs of labor and depreciation incurred by marketing
participants, by material/facilities/equipment used, Nueva Ecija, 2002
a) Small Livestock Distributor (SLD) – sells in the same or another LOM,
pooling place or municipality
ITEM RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD MLA-B-SMD RETAILER
b) Medium Livestock Distributor (MLD) – sells in 2 or more LOMs, pooling
places or municipalities peso per kilogram (meat)

c) Large Livestock Distributor (LLD) – sells to areas outside the province but Materials
may sell also within the province Knife 0.001 0.001 0.002 0.004 0.008 0.006
Meat hanger a/
3. Livestock Assembler-Livestock Distributor – procures and sells live animals. Chopping board 0.002 0.001 0.003 0.004 0.007 0.003
Several combinations were identified in the study: Tray 0.002
Pail 0.001 0.002 0.001 0.001
a) BLA-SLD; MLA-SLD; PLA-SLD; RLA-SLD; IRLA-SLD Equipment
b) BLA-MLD;MLA-MLD; PLA-MLD; RLA-MLD; IRLA-MLD Weighing scale a/ 0.001 0.015 0.012 0.010
c) BLA-LLD; MLA-LLD; PLA-LLD; RLA-LLD; IRLA-LLD Calculator 0.001 a/ 0.001
Freezer 0.022 0.063
4. Butcher-Meat Distributor (B-MD) - procures live animals; may slaughter animal Chairs 0.001 0.001 0.813 0.001
himself or through an abattoir; sells meat to retailers. Electric fan 0.003
Transportation
5. Supplier from Outside the Province (SOP) – trader or raiser based in areas Trailer 0.171
outside the province who may deliver live animals to the province or sell to buyers Jeep 0.035 0.020
who approach them. Labor 0.410 0.230 1.000 2.510

6. Buyer from Outside the Province (BOP) – buys live animals from supply areas TOTAL 0.062 0.413 0.271 1.023 1.000 2.600
within the province or from traders who ship to other provinces. a/ less than 0.001
108 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 5

Appendix 20a. SWINE (Live): Imputed costs of labor and depreciation incurred by
7. Agent
marketing participants, by material/facilities/equipment used, Metro Manila, 2002
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
ITEM IRLA-B-LMD IRLA-B-SMD RETAILER salary, commission or sharing basis.
peso per kilogram (meat) 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
Materials provides he receives as payment the difference between the price at which
Hooks 0.001 a/ 0.005 he is able to sell the animals and the price agreed with the raiser; also
Chopping board 0.002 0.010 0.004 includes representatives of shippers who are either paid in commission basis
Knife 0.003 0.003 0.013
or in fixed salary and who are tasked with procuring animals for shipment to
various destinations.
Steel 0.004 a/ 0.009
Bolo 0.001 0.011 0.008 8. Institutional Buyer – includes restaurants, eateries, canteens, hospitals, etc.
Ice box 0.005 0.006
9. Meat Retailer – sells meat to consumers or institutional buyers.
Table 0.003
Chair a/
Table 2 shows the number of respondents by type of marketing participants.
Equipment
Thirty-two (32) of the trader-respondents were buyers and sellers of live
Weighing scale 0.015 0.010 0.032
animals (livestock assembler- distributors); 36 were livestock assemblers-
Grinding machine 0.029 0.022 butchers-meat distributors who either operated on a small, medium or large
Calculator a/ 0.001 0.004 scale; 6 were agents and 60 were retailers.
Freezer 0.025 0.010
Electric/exhaust fan 0.002 0.001 0.005
Refrigerator 0.028
Table 2. SWINE: Distribution of respondents, by type of m arketing participants,
Facilities by province, 2002

Stall 1.436
LIVESTOCK
LIVESTOCK
Transportation RAISER/ ASSEMBLER-
PROVINCE ASSEMBLER- AGENT RETAILER TOTAL PERCENT
OPERATOR BUTCHER-MEAT
Truck 0.074 0.120 0.214 DISTRIBUTOR
DISTRIBUTOR

Labor 0.415 1.932


Metro Manila 1 10 27 38 14
Pangasinan 30 5 6 41 15
TOTAL 0.102 2.097 2.264 Nueva Ecija 29 2 8 3 2 44 16
Batangas 30 5 2 12 49 18
Iloilo 24 4 3 1 4 36 13
Cebu 20 5 5 13 43 15
Davao del Sur 12 6 1 2 21 8
Davao City 1 4 1 2 8 3

TOTAL 146 32 36 6 60 280 100


6 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 107

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


Profile of Respondents by m aterials/equipm ent/facilities used, by province, Philippines, 2002

The study determined the basic characteristics of the respondents which included METRO NUEVA
the type of farm, nature of capitalization, type of business ownership, length of experience ITEM
MANILA
PANGASINAN
ECIJA
BATANGAS ILOILO CEBU DAVAO
and percentage share of swine in their total production/business.
peso per kilogram (meat)
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 Material Used
raiser–respondents by type of farm is found in Table 3. Slicing tools 0.014 0.006 0.004 0.01 0.006 0.01 0.003
Chopping board 0.006 0.003 0.002
Hook/Meat hanger 0.002 0.001 a/ 0.001 0.001
Table 3. SWINE: Distribution of raiser-respondents
"Hasaan" (steel) 0.004 0.001 a/
by type of farm, by province, 2002
Ice bucket/box 0.005 0.001
Plyw ood 0.01
PROVINCE BACKYARD COMMERCIAL TOTAL Pail 0.001 0.002
Tray b/ 0.002 0.004
Pangasinan 19 11 30
Nueva Ecija 19 10 29
Equipm ent
Batangas 22 8 30
Weighing Scale d/ 0.019 0.040 0.005 0.01 0.008 0.01 0.02
Iloilo 20 4 24
Electric/exhaust fan c/ 0.002 0.003 0.003 0.01
Cebu 15 5 20
Chair a/ 0.05 0.204 0.001
Davao del Sur 10 2 12
Calculator 0.002 0.001 0.002 a/ 0.009
Davao City - 1 1
Freezer/Refrigerator 0.055 0.020 0.043 0.01
Total 105 41 146 Meat Grinder 0.024 0.050 0.002 0.001 0.02 0.02
Cash box (stainless) 0.001 0.02
Cellphone 0.01 0.009 0.004
Respondents’ Classification. The raiser-respondents were classified based on Table 0.003 a/ 0.026
their role in the business operations. One hundred of them were raisers or owners of the Gun
farm; 16 were caretakers, 24 were relatives of the raiser and the others were employees in Sharpener 0.008
Telephone 0.005
the farm. Table 4 shows the distribution of the respondents by classification.
Facilities
Stall 1.436
Table 4. SWINE: Distribution of raiser-respondents by classification, by province, 2002
Transportation
RESPONDENT'S PANGA- NUEVA DAVAO DAVAO Truck 0.14 0.068
BATANGAS ILOILO CEBU TOTAL PERCENT
CLASSIFICATION SINAN ECIJA SUR CITY
Tricycle/sidecar 0.101
Jeep 0.025 0.37 a/
Raiser/Owner 15 27 20 19 8 11 - 100 68 Trailer 0.171
Caretaker 3 2 7 2 2 - - 16 11
Labor 1.802 0.68 0.83 0.35 0.54
Partner - - 1 - - - - 1 1
Both a/ - - 2 - - - - 2 1 TOTAL 3.514 0.850 1.292 0.780 0.232 0.581 0.093
Secretary - - - 1 - - - 1 1 a/ less than 0.001
Farm Administrator - - - - - 1 - 1 1 b/ aluminum and plastic
Finance Manager - - - - - - 1 1 1 c/ includes exhaust fan
d/ includes all types of weighing scale
Others b/ 12 - 2 10 - - 24 16

TOTAL 30 29 30 24 20 12 1 146 100


a/ both raiser-operator and a caretaker
b/ wife, son and daughter and relatives of raiser
106 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 7

Appendix 19f. SWINE (Slaughtered): Other operating costs incurred by m arketing Nature of Capitalization. The amount and nature of the source of working capital
participants, by item , Cebu, 2002 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.
ITEM RLA-B-SMD PLA-B-SMD RETAILER
Out of 280 respondents, 92% operated their business using their own capital.
peso per kilogram (meat)
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
Business permit 0.02 0.002 0.05
Barangay permit 0.001
financial capital at all.
Market fee 0.04
Stall rental 0.03 0.27 Table 5. SWINE: Distribution of respondents by nature of capitalization, by province, 2002
Electricity 0.11 0.14
Telephone 0.025 0.035 NATURE OF METRO PANGA- NUEVA DAVAO DAVAO
BATANGAS ILOILO CEBU TOTAL PERCENT
Garbage/Sanitary permit 0.05 CAPITALIZATION MANILA SINAN ECIJA DEL SUR CITY
Water 0.02 0.03
Wastage 6.95 4.69 9.11 Self-financed/ow ned 36 40 43 42 33 39 16 8 257 92
Meals/Beverages 0.06 0.41
Sharing - - - 6 1 1 - - 8 3
Post mortem (inspection fee) 0.81 0.56
Borrow ed 2 1 1 1 1 2 5 - 13 5
No Capital - - - - 1 - - - 1 a/
TOTAL 7.97 4.79 10.66 Corporation - - - - - 1 - - 1 a/

TOTAL 38 41 44 49 36 43 21 8 280 100

a/ less than one percent

Business Ownership. Majority (265 or 95%) of the respondents operated their


Appendix 19g. SWINE (Live): Other operating costs incurred by m arketing participants, by
item , Davao, 2002
own business as single proprietors. Twelve were into a partnership while 3 respondents
were under a corporation (Table 6).
IRLA-LLD- PLA-LLD-
ITEM BLA-B-MR B-MR
B-SMD B-MR
peso per kilogram (meat) Table 6. SWINE: Distribution of respondents by type of business ow nership, by province, 2002

Cell card 0.01 0.04 BUSINESS METRO PANGA- NUEVA DAVAO DAVAO
Travel permit 0.06 BATANGAS ILOILO CEBU TOTAL PERCENT
OWNERSHIP MANILA SINAN ECIJA DEL SUR CITY
Water 0.25 0.06
Stall rental 0.22 0.05
Single
Electricity 0.40 0.12 proprietorship 36 39 43 47 31 40 21 8 265 94
Weighing scale calibration a/ a/
Partnership 2 2 1 2 4 1 - - 12 5
Gasoline 0.005
Corporation - - - - 1 2 - - 3 1

TOTAL 0.01 0.065 0.87 0.27


TOTAL 38 41 44 49 36 43 21 8 280 100
8 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 105

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


m arketing participants, by item , Batangas, 2002
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 ITEM IRLA-B- LMD MLA-B- SMD RETAILER
trading activities. Table 7 describes the respondents by length of experience in swine
raising/trading. peso per kilogram (meat)

Table 7. SWINE: Distribution of respondents, by length of experience, by province, 2002 Business permit 0.004 0.12
Market fee 0.02 0.08
LENGTH OF Stall rental 0.02 0.04
METRO PANGA- NUEVA DAVAO DAVAO
EXPERIENCE BATANGAS ILOILO CEBU TOTAL PERCENT Electricity 0.02 0.18
MANILA SINAN ECIJA DEL SUR CITY
(YEARS) Calibration of w eighing scale a/
Garbage/Sanitary permit a/ 0.01
less than 5 3 9 12 8 7 9 9 2 59 21 Water 0.03
5 – 10 18 14 16 14 11 17 9 1 100 36 Gas and Oil 0.38 0.06
11 – 15 5 9 4 8 2 3 - 1 32 11 Meals and beverages 0.05 0.39
Post Mortem 0.06
16 – 20 6 4 8 2 7 4 1 1 33 12
Utility fee 0.11
more than 20 6 5 4 17 9 10 2 3 56 20
Miscellaneous fee 0.19
Cellcard 0.06
TOTAL 38 41 44 49 36 43 21 8 280 100
Wastage 0.03 0.25 0.29
Others b/ 0.02

TOTAL 0.54 0.31 1.56


Fifty-nine or 21% of the total respondents said that they were in the business for
less than 5 years. a/ less than 0.001

Thirty six percent (36%) were already in swine trading for 5 to 10 years.
Appendix 19e. SWINE (Live): Other operating costs incurred by m arketing
Thirty-two respondents were in swine raising/marketing business for 11 to 20 participants, by item , Iloilo, 2002
years.

Twenty percent (20%) of them had been engaged in swine raising and trading for ITEM RLA-B-SMD PLA-B-SMD RETAILER
more than 20 years.
peso per kilogram (meat)
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 Business permit 0.001 0.006
the estimation of the costs incurred in marketing of swine. Table below showed that 76% Cellcard 0.011
of the respondents raised/traded swine as the largest portion of their business. Seven Repair and maintenance 0.185
percent handled about 61-80% of swine while the rest had 20-60% of swine in their Meals and beverages 0.095 1.160 0.058
business. 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


104 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 9

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


Appendix 19b. SWINE (Slaughtered): Other operating costs incurred by by province, 2002
m arketing participants, by item , Pangasinan, 2002
PERCENTAGE
SHARE TO METRO PANGA- NUEVA DAVAO DAVAO
ITEM MLA-B-SMD BATANGAS ILOILO CEBU TOTAL PERCENT
TOTAL MANILA SINAN ECIJA DEL SUR CITY
peso per kg (meat) BUSINESS

Business permit/license 0.038 1 – 20 - 1 - 9 - 4 - - 14 5


Stall rentals 0.177 21 - 40 - 2 1 1 4 4 1 - 13 5
Weighing scale calibration 0.016 41 - 60 1 1 2 1 5 7 3 1 21 8
Water 0.004 61 - 80 2 - 5 1 7 4 - - 19 7
Telephone 0.007 81 - 100 35 37 36 37 20 24 17 7 213 76
Electricity 0.055
Shrinkage/w astage 7.170 TOTAL 38 41 44 49 36 43 21 8 280 100

TOTAL 7.467
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
Appendix 19c. SWINE (Slaughtered): Other operating costs incurred by m arketing participants, practices and functions and the corresponding marketing costs are described below.
by item , Nueva Ecija, 2002
Procurement

ITEM
RLA-B- RLA-B- PLA-B- PLA-B- MLA-B-
RETAILER Traders procured live animals from the producing barangays within the province
LMD SMD LMD SMD SMD
through the Livestock “Oksyon” Markets.
peso per kilogram (meat)
Manner of Procurement. Table 9 shows that in supply procurement, traders practice
either pick-up or delivery.
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
Table 9. SWINE:Distribution of respondents, by m anner of procurem ent, by province, 2002
Stall rental 0.028 0.062 0.049 0.063
Market fee 0.021 0.013 0.139 0.06 0.028 DAVAO
MANNER OF METRO PANGA- NUEVA DAVAO
Weighing scale rental 0.013 0.04 BATANGAS ILOILO CEBU DEL TOTAL
PROCUREMENT MANILA SINAN ECIJA CITY
Gas and oil 0.09 0.63 0.12 SUR

Meals and beverages 0.21 0.312 0.092 0.35 0.312


Picked- up 22 11 15 15 8 10 7 7 95
Wastage 13.71 13.50 10.71 13.83 12.48 12.09
Delivered 16 - - 3 3 10 2 - 34
Both - - - 1 1 3 - - 5
TOTAL 14.130 14.585 10.966 15.074 12.550 12.599
TOTAL 38 11 15 19 12 23 9 7 134
10 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 103

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


the sources.
Appendix 19a. SWINE (Slaughtered): Other operating costs incurred by m arketing
Twenty five percent (25%) had their supplies delivered at their business participants, by item , Metro Manila, 2002
location.
ITEM IRLA-B-LMD IRLA-B-SMD RETAILER
Five of them reported that they practiced both manners in procuring live hogs.
peso per kilogram (meat)

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 Business permit 0.239
arrangement depends on the degree of trading relationship between the farmer and Sanitary permit 0.299
trader. Residence certificate 0.016
Rights 0.761
Table 10. SWINE:Distribution of respondents, by m ode of paym ent in buying stocks, by province, 2002 Telephone 0.033 0.026 0.051
Water 0.012 0.042 0.100
DAVAO Electricity 0.050 0.157 0.366
METRO PANGA- NUEVA DAVAO
MODE OF PAYMENT BATANGAS ILOILO CEBU DEL TOTAL
MANILA SINAN ECIJA CITY Weighing fee
SUR
Slaughterhouse fee

Cash 14 7 14 10 10 13 9 5 82 Slaughter fee


Consignment 6 - - 3 1 - - 2 12 Meat inspection fee 0.786
Delayed Payment - 1 1 1 - 8 - - 11 Stall fee 0.947 0.826 0.884
Combination 18 3 - 5 1 2 - - 29 Wastage 2.000
Gasoline 0.223 0.567 2.105
TOTAL 38 11 15 19 12 23 9 7 134
Meals 0.015 0.128 0.316
Garbage collection fee 0.015
Stall repair 0.003
Weighing scale calibration 0.002
Majority of the trader-respondents (82 out of 134) paid their swine suppliers in
Repair and maintenance 0.056 0.005
cash upon delivery.
Interest on loan 0.227

Twelve of them paid in consignment basis and 29, a combination of both cash Security services 0.120
and consignment. Janitorial services 0.357

There were 11 respondents who have agreed to defer payment with their TOTAL 1.280 3.802 6.652
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 buyer
and seller.
102 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 11

Appendix 19. SWINE(Slaughtered): Other operating costs incurred by respondents, Mode of Delivery. The mode of delivery for distribution of the product depends on
by item , by province, Philippines, 2002 the type of buyer and their business location.

Majority of the respondents let their buyers pick-up their procured live or
ITEM
METRO
PANGASINAN
NUEVA
BATANGAS ILOILO CEBU DAVAO slaughtered animals from their location.
MANILA ECIJA
Some of them delivered their products to the buyers.
peso per kilogram (meat)
A few practiced both manners in distributing their products.
Business permit 0.239 0.040 0.0145 0.07 0.005 0.02
Barangay permit c/ 0.001
Market fee b/ 0.05 0.06 0.04 Table 11. SWINE: Distribution of respondents, by m anner of distribution, by province, 2002
Stall rental 0.717 0.180 0.05 0.03 0.114 0.15 0.09
DAVAO
Weighing scale rental 0.013 MANNER OF METRO PANGA- NUEVA DAVAO
BATANGAS ILOILO CEBU DEL TOTAL
Inspection fee 0.786 0.254 DISTRIBUTION MANILA SINAN ECIJA CITY
SUR
Coral fee
Electricity 0.183 0.055 0.03 0.15 0.035 0.12 0.17
Picked- up 31 41 41 46 25 34 19 6 243
Calibration of w eighing scale 0.002 0.016 a/ a/
Delivered 4 - 2 3 8 7 2 2 28
Garbage/Sanitary permit 0.314 0.002 0.05
Water 0.078 0.004 0.15 0.03 0.02 0.15
Both 3 - 1 - 3 2 - - 9
Gas and oil 0.97 0.105 0.29 0.238 0.01
TOTAL 38 41 44 49 36 43 21 8 280
Meals and beverages d/ 0.061 0.25 0.13 0.116 0.23
Post mortem fee 0.06 0.100 0.68
Utility fee 0.11
Miscellaneous fee 0.19
Mode of Payment. The mode of payment in selling live and slaughtered animals
Cellcard 0.12 0.011 0.02
depends on the agreement of the buyer and the trader.
Wastage/Shrinkage 2.00 7.17 12.72 0.19 6.90
Most of the respondents (197) received payment for their stocks in cash from
Others e/ 0.03
their buyers.
Telephone 0.04 0.007 0.03
Entrance/exit fee 0.176 Others received delayed payment/credit (25), both in cash or credit (49) and
Repair and maintenance 0.033 0.185 consignment (8) bases.
Interest on loan 0.227
Travel permit 0.06 One livestock distributor from Iloilo was paid through the bank.
Residence certificate 0.02
Rights 0.76
Security service 0.12 Table 12. SWINE: Distribution of respondents, by term s of paym ent, by province, 2002
Janitorial service 0.357
DAVAO
METRO PANGA- NUEVA DAVAO
TERMS OF PAYMENT BATANGAS ILOILO CEBU DEL TOTAL
TOTAL 6.904 7.47 13.38 1.46 1.234 8.24 0.50 MANILA SINAN ECIJA CITY
SUR

a/ less than o.oo1


Cash 18 35 41 28 31 27 15 2 197
b/ includes ticket and cash ticket
c/ includes local tax Consignment - - - 4 2 - 1 1 8
d/ includes cigarrettes, rice supply Delayed Payment/Credit 11 - 2 3 1 3 2 3 25
e/ includes tong, revolutionary tax
Combination 9 6 1 14 1 13 3 2 49
Bank to Bank - - - - 1 - - - 1

TOTAL 38 41 44 49 36 43 21 8 280
12 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 101

Appendix 18e. SWINE (Live): Cost of m aterial inputs incurred by m arketing


Geographic Flow participants, by cost item , Iloilo, 2002

The sources and destination points of swine in the supply provinces are presented ITEM RAISER/ OPERATOR RETAILER
in Appendix 10. Figures 2-8 illustrate the flow of swine in the covered provinces.
peso per kilogram (meat)
Pangasinan
Distribution

Major suppliers of swine in Pangasinan were from the municipalities of Sacks 0.014
Mangatarem, Malasiqui, Villasis, San Carlos City and Calasiao; Plastic bag 0.062

Live hogs were brought to either LOM in Calasiao or to Slaughterhouse located TOTAL 0.014 0.062
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 Appendix 18f. SWINE(Slaughtered): Cost of m aterial inputs incurred by m arketing
participants, by item , Cebu, 2002
slaughtered in Sta. Barbara were distributed in Urdaneta City and Baguio City.
ITEM IRLA-B-SMD RETAILER
Nueva Ecija
peso per kilogram (meat)
Major sources of swine in the province were San Leonardo, San Antonio and PROCUREMENT
Cabanatuan City;
Chopping board 0.003

Swine intended for meat were brought to Aduas Slaughterhouse and then DISTRIBUTION
distributed to the public markets in Cabanatuan City and Magsaysay. Ice 0.31
Chopping board 0.01
Also, swine were sold alive to buyers from Manila particularly in Novaliches Basin 0.001
and Nepa Q-mart .
Plastic bag 0.05

Batangas
TOTAL 0.003 0.371

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.
Appendix 18g. SWINE (Slaughtered): Costs of m aterial Inputs incurred by m arketing participants,
Identified trading centers were the LOMs and the slaughterhouses located by item , Davao, 2002
within Batangas.
ITEM PLA-LLD-B-MR BLA-B-MR B-MR
These supplies were distributed to the demand areas within the province,
Metro Manila, Cavite, Laguna and Bulacan. peso per kilogram (meat)

Distribution
Iloilo
Plastic bag 0.43 0.71 0.43

Swine in Iloilo came from Janiuay, Leon, Guimbal and other municipalities
within the province. There was no supply coming outside the province. Live TOTAL 0.430 0.71 0.43
animals were assembled at the LOMs.
100 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 13

Appendix 18c. SWINE (Slaughtered): Costs of m aterial Inputs incurred by m arketing participants, by
From the LOMs, live hogs were distributed to traders within the province.
item , Nueva Ecija, 2002 Retailers sold their meat to consumers from the same town while others were
sold to other towns within Iloilo.

ITEM RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD MLA-B-SMD RETAILER One commercial hog farm shipped live hogs directly to Manila twice a month.
peso per kilogram (meat) Cebu

Distribution Raisers from several municipalities in Cebu were the major suppliers of swine
Plastic bag 0.116 0.229 0.175 0.484 0.410 0.331 in the province; other sources, however, were General Santos City, Davao and
Tray 0.002 0.007 0.006 Misamis Oriental in Mindanao; Bohol and Negros Oriental in Visayas; and
Basin 0.002 0.003
Masbate in Luzon.
Pail 0.001 a/
The supplies were brought to the LOMs situated in San Antonio, Bogo and
Brooms a/ Mantalongon where trading took place.
Chair 0.001
Demand areas within Cebu included Carcar, Carbon, Mandaue and Tabunok;
TOTAL 0.122 0.236 0.181 0.484 0.410 0.334 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.


Appendix 18d. SWINE (Slaughtered): Cost of m aterial inputs incurred
by m arketing participants, by item , Batangas, 2002 Davao

ITEM MLA-B-SMD RETAILER 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.
peso per kilogram (meat) Kidapawan and Saranggani were the identified sources of swine outside the
Distribution province.
Plastic bag 0.11 0.14
Broom stick 0.003
Metro Manila
Cartons 0.10
Bulb 0.29
Ice 0.06 0.49
Meat dealers and distributors procured live hogs outside Metro Manila,
Tray 0.001
specifically from nearby provinces like Batangas, Cavite, Quezon, Bulacan and
Basin 0.02 Nueva Ecija or as far as Cebu in Visayas or in Davao and General Santos City
Pail 0.004 in Mindanao.
Styrofoam 0.001 0.01
Office Supplies 0.11 0.01 Supplies coming from Luzon were brought directly to slaughterhouses in Rizal
Apron 0.01 0.02 and Metro Manila.
Fan a/
The stocks coming from Visayas and Mindanao were picked up by buyers from
TOTAL 0.29 1.09 the piers or in the stockyard in Nepomuceno, Tondo, Manila.
a/ less than 0.001
When slaughtered, meat were distributed in various wet markets, meat shops,
restaurants and supermarkets within Metro Manila.
14 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 99

Appendix 18a. SWINE (Slaughtered): Costs of m aterial Inputs incurred by


m arketing participants, by item , Metro Manila, 2002
PANGASINAN ILOCOS SUR
LA UNION
ITEM IRLA-B-LMD IRLA-B-SMD RETAILER
- Dagupan City
Demand - Mangaldan
peso per kilogram (meat)
Areas - Urdaneta City
- Malasiqui
Distribution
- Calasiao -Villasis
BAGUIO CITY Razor 0.006
- San Carlos City
Blade 0.011
Tray a/
Basin a/
Ice 0.131
Pail a/
Mantel 0.002
PUBLIC MARKET Rag 0.005
- Dagupan City PUBLIC MARKET Carton 0.04
- Villasis - Urdaneta City Plastic bags 0.13 0.12 0.03
- Malasiqui Bulb/fluorescent lamp a/ 0.01
Trading Office supplies 0.02

Areas
TOTAL 0.13 0.32 0.05

LOM SLAUGHTERHOUSE
- Calasiao - Sta. Barbara
Appendix 18b. SWINE (Slaughtered): Costs of m aterial Inputs incurred by
m arketing participants, by item , Pangasinan, 2002

ITEM RAISER/ OPERATOR MLA-B-SMD

peso per kilogram (meat)

Distribution
Ice 0.880
PANGASINAN
Pail 0.001
Supply - Mangatarem San Carlos City Plastic bag 0.170
Areas - Malasiqui Calasiao Chopping board 0.012 0.007
- Villasis Blade 0.003
Plastic basket 0.002
Styrofoam 0.01
Plastic hose

TOTAL 0.012 1.069


Figure 2. Geographic Flow of Swine in Pangasinan, 2002
98 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 15

Appendix 17f. SWINE (Slaughtered): Transportation costs incurred by m arketing


participants, by activity/practice, Davao, 2002

IRLA-LLD- BLA-
MARKETING ACTIVITY/PRACTICE B-MR
B-SMD B-MR
METRO MANILA
peso per kilogram (meat) Demand CABANATUAN NOVALICHES
Areas CITY NEPA Q-MART
Procurem ent 0.04

Distribution 0.21 0.31 0.40

TOTAL 0.21 0.31 0.44

CABANATUAN
CITY MAGSAYSAY
Appendix 18. SWINE (Slaughtered): Cost of material inputs incurred by marketing
PUBLIC MARKET PUBLIC MARKET
participants, by activity/practice item,
by province, Philippines, 2002

METRO NUEVA
ITEM PANGASINAN BATANGAS ILOILO CEBU DAVAO
MANILA ECIJA
Trading
peso per kilogram (meat)
Centers
PROCUREMENT
Chopping board 0.003

DISTRIBUTION
Plastic bag 0.12 0.17 0.29 0.14 0.061 0.05 0.52 ADUAS
Broom stick a/ 0.003 SLAUGHTERHOUSE
Cartons 0.042 0.10
Bulb/flourescent 0.002 0.29
Ice 0.13 0.88 0.22 0.31
Tray a/ 0.01 0.001
Basin a/ 0.002 0.02 0.001
Pail a/ 0.001 a/ 0.004
Plastic basket 0.002
SAN LEONARDO
Styrofoam 0.01 0.002 Supply SAN ANTONIO
Office supplies 0.019 0.10 Areas CABANATUAN CITY
Apron 0.01
Fan a/
Chopping board 0.01 0.01
Sacks 0.014
Razor 0.006
Blade 0.011 0.003
Mantle 0.002
Rag 0.005
Chair 0.001
Figure 3. Geographic Flow of Swine in Nueva Ecija, 2002
TOTAL 0.34 1.076 0.30 0.89 0.075 0.374 0.520
a/ less than 0.001
16 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 97

Appendix 17c. SWINE (Slaughtered): Transportation costs


incurred by m arketing participants, by activity/practice,
Batangas, 2002

BATANGAS METRO MANILA


Batangas City Pasay City MARKETING ACTIVITY/PRACTICE RETAILER
Tanauan City Paranaque City
Cavite
Lemery Pasig City peso per kg.(meat)
Laguna
San Luis Marikina City
Bulacan
Agoncillo Antipolo City
Taal Quezon City Procurement 0.29

TOTAL 0.29

Appendix 17d. SWINE (Slaughtered): Transportation costs incurred by


m arketing participants, by activity/practice, Iloilo, 2002

MARKETING ACTIVITY/PRACTICE PLA-B-SMD RETAILER


LOMs / Slaughterhouse
peso per kg.(meat)

Procurement 0.75

Distribution 0.645

TOTAL 0.65 0.75

BATANGAS

- Lipa City
- Rosario Appendix 17e. SWINE (Slaughtered): Transportation costs
- Lemery Quezon incurred by m arketing participants, by activity/practice, Cebu,
Bulacan 2002
- Batangas City Nueva Ecija
- Bauan
- Padre Garcia MARKETING ACTIVITY/PRACTICE RETAILER

peso per kg. (meat)

Procurement 0.41

Figure 4. Geographic Flow of Swine in Batangas, 2002 TOTAL 0.41


96 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 17

Appendix 17. SWINE (Slaughtered): Transportation costs incurred by m arketing


activity/practice, by province, Philippines, 2002
Legend:

MARKETING NUEVA
- live
PANGASINAN BATANGAS ILOILO CEBU DAVAO METRO
ACTIVITY/PRACTICE ECIJA
MANILA - meat
peso per kilogram (meat)

Procurement 0.456 0.29 0.75 0.41 0.04

Distribution 0.31 0.645 0.19

Janiuay Iloilo City Lapaz Public


TOTAL 0.46 0.31 0.29 1.395 0.41 0.23
Poblacion Central Market Market

Appendix 17a. SWINE (Slaughtered): Transportation costs incurred by


m arketing participants, by activity/practice, Metro Manila, 2002
SLAUGHTERHOUSE

MARKETING ACTIVITY/PRACTICE RETAILER

peso per kg. (meat)

Procurem ent 0.456 LIVESTOCK


“OKSYON”
MARKET
TOTAL 0.456

Appendix 17b. SWINE (Slaughtered): Transportation costs incurred by m arketing participants, by


activity/practice, Neva Ecija, 2002
JANIUAY GUIMBAL LEON
MARKETING - Guadalupe - Igcocolo - Buga
RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD MLA-B-SMD RETAILER
ACTIVITY/PRACTICE - Tolorocan - Poblacion - Balud
peso per kilogram (meat)

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


Figure 5. Geographic Flow of Swine, Iloilo, 2002
18 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 95

Appendix 16f. SWINE: Labor costs incurred by m arketing participants,


by activity/practice, Cebu, 2002
CEBU
MARKETING ACTIVITY/PRACTICE RETAILER
- Carcar
MANILA
Demand - Carbon CAVITE Php/kg (slaughtered)
Areas - Mandaue
- Tabunok Distribution
Selling a/ 1.10

Salaries and Wages 0.43

TOTAL 1.53
CEBU (LOM)
a/ include slicing of meat and selling

- San Antonio
- Bogo
- Mantalongon
Trading - Mandaue
Centers (Abattoirs)
Appendix 16g. SWINE ( Slaughtered): Labor costs incurred by m arketing
participants, by activity/practice, Davao, 2002

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


PRACTICE B-SMD B-MR
peso per kilogram (meat)
CEBU
GENERAL SANTOS CITY
- Adlaon DAVAO Procurem ent
MISAMIS ORIENTAL
- Pit-os Handling 0.25 0.11
NEGROS ORIENTAL
Supply - Talamban
MASBATE
Areas - Absungot BOHOL Distribution
- Valladolet
- Compostela Handling 0.25 0.07 0.11
- Liloan
- Danao Salaries and Wages 0.31
- Consolacion
Legend:
TOTAL 0.50 0.07 0.53
- live

- meat

Figure 6. Geographic Flow of Swine in Cebu, 2002


94 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 19

Appendix 16c. SWINE (Slaughtered): Labor costs incurred by marketing


participants, by activity/practice, Nueva Ecija, 2002

MARKETING 1
RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD RETAILER
ACTIVITY/PRACTICE
peso per kilogram (meat)
Procurement
Slicing 1.00 0.42 1.00 1.00

Distribution
Cleaning 0.17 0.17 0.17 3 2
Handling
Loading 0.08 0.20 0.50 0.16
Unloading 0.09 0.21 0.50 0.16
Selling 0.35 0.42 1.00 1.03
Weighing 0.29 0.42 0.90 4
5
Salaries & Wages 0.67 0.83 0.83

TOTAL 2.48 2.26 2.41 3.90 1.52

Appendix 16d. SWINE(Slaughtered): Labor costs incurred by m arketing


participants, by activity/practice, Batangas, 2002

7
MARKETING ACTIVITY/PRACTICE IRLA-B-LMD RETAILER
8
peso per kilogram (meat)
Distribution
10
Handling 0.12
1. Cebu
Selling 1.01 2. Davao City
3. Bansalan
Salaries and Wages 0.05 0.46 9
4. Magsaysay
11
TOTAL 0.05 1.59 5. Sta. Cruz
6. Digos
12 7. Hagonoy
Appendix 16e. SWINE (Slaughtered): Labor costs incurred by m arketing 8. Padada
participants, by activity/practice, Iloilo, 2002 9. Kidapawan
10. Sta. Maria
MARKETING ACTIVITY/PRACTICE PLA-B-SMD RETAILER 11. Malita
12. Sarangani
Php/kg (meat) Province
Distribution
Slicing/w eighing 0.498
Selling 0.319 0.208

Salaries and Wages 1.331 Figure 7. Geographic Flow of Swine in Davao del Sur, 2002
TOTAL 0.319 2.037
20 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 93

Appendix 16a. SWINE (Slaughtered): Labor costs incurred by m arketing


participants, by activity/practice, Metro Manila, 2002

Metro Manila MARKETING ACTIVITY/ IRLA-B- IRLA-B-


RETAILER
Wet Market PRACTICE LMD SMD
Supermarkets peso per kilogram (meat)
Demand
Restaurants
Areas Procurem ent
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 w ages


Trading Slaughterhouses in Helper 0.02
Metro Manila, Cainta, Nepomuceno, Driver 0.32 1.58
Centers & Antipolo Rizal Tondo Stockyard

TOTAL 0.167 1.502 4.930

Appendix 16b. SWINE (Slaughtered): Labor costs incurred by m arketing


participants, by activity/practice, Pangasinan, 2002

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


Areas Batangas, Cavite
Cebu,
Quezon, Bulacan peso per kilogram (meat)
Davao
Nueva Ecija
General Santos
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

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


92 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 21

Marketing Channels
Appendix 15g. SWINE (Live): Im puted costs of labor and depreciation incurred by m arketing
participants, by m aterial/facilities & equipm ent used, Davao, 2002
Figures 9-15 illustrate the flow of swine from the raisers to retailers.

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


ITEM
B-SMD MLD LLD LLD SLD LLD LLD
Swine raisers’ outlets were either livestock assembler-distributor, butcher-meat
peso per kilogram (liveweight)
distributor. They also directly sold their produce to the LOMs.
VEHICLE
Ford Fierra 0.380 0.610 Animals bought from the LOMs were either delivered to the slaughterhouse or
Truck 0.010 0.300 0.270 distributed to the buyers outside the province (BOP).
Motorcycle 0.280
Slaughtered animals were sold to retailers or to the BOP.
EQUIPMENT
Cellular phone 0.001 0.020 0.020 0.003 Nueva Ecija

Agents, livestock assembler-distributors and butcher-meat distributors were the


TOTAL 0.001 0.38 0.01 0.30 0.29 0.91 0.003 market outlets of swine raisers in Nueva Ecija.

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


Appendix 16. SWINE (Slaughtered): Labor costs incurred by m arketing activity/practice,
Buyers outside the province preferred live hogs supplied to them by the PLA-
by province, Philippines, 2002
LLD.
MARKETING
METRO MANILA PANGASINAN
NUEVA
BATANGAS ILOILO CEBU DAVAO Batangas
ACTIVITY/PRACTICE ECIJA
From the raisers, live hogs were brought to the LOMs or to livestock
peso per kilogram (meat)
assemblers-distributors or meat distributors;
Procurem ent
Livestock assemblers sourced their supplies from co-LA’s, then distributed to
Hauling 0.251
butchers for slaughter;
Handling
Loading 0.189 0.06 0.055
One PLA-LLD sold animals to BOPs;
Unloading 0.189 0.06 0.055
Chopping/Slicing 0.42 0.86
There were retailers who bought live animals directly from the raisers, brought
Distribution
the same to the slaughterhouse, and distributed meat to the consumers.
Handling
Loading 0.03 0.46 0.05 Iloilo
Unloading 0.03 0.47 0.05
Chopping 0.42 The raisers’ outlets for their live animals were livestock assemblers-distributors
Cleaning 0.17 (PLA-LLD/PLA-MLD), agents or butcher-meat distributors (RLA-B-SMD).
Weighing 0.54 0.498
Selling 0.83 0.60 0.70 1.01 0.224 1.10 PLA-LLDs distributed live animals to buyers outside the province.

Salaries and Wages 0.48 0.50 0.78 0.31 1.331 0.43 0.31 Agents passed their procured animals to PLA-SLD, then to PLA-B-SMD.

PLA-MLD brought live animals to the slaughterhouse.


TOTAL 2.779 1.160 3.980 1.440 2.053 1.530 0.520
22 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 91

Appendix 15e. SWINE (Live): Im puted costs of labor and depreciation incurred by m arketing
participants, by m aterials/facilities & equipm ent used, Iloilo, 2002
One RLA-B-SMD slaughtered the animals himself before directly distributing to
them to the retailers.
RAISER/ PLA-B-
ITEM PLA-LLD PLA-MLD PLA-SLD AGENT
OPERATOR
SMD
Retailers sourced their meat supplies from the SMDs or directly from the
slaughterhouse. peso per kilogram (liveweight)

Materials
Cebu
Butcher's knife/knives 0.004

Raisers sold their swine to either livestock assemblers-distributors, agent or Equipm ent
directly to the BOPs or LOMs. Cellphone 0.003 0.005
Calculator 0.001 0.002
Livestock assemblers, agents and SOPs brought the animals to the LOMs Gun 0.012
wherein butcher-meat distributors and sometimes the retailers sourced their
supplies. Facilities
Stockyard/holding pen 0.018 0.004
There were retailers who sourced live animals from the stockyard or directly
Transportation
from the growers and paid for service fees at the slaughterhouse. Truck 0.206 0.438
Tricycle/sidecar 1.172 0.127
Davao Motor w ith trailer 0.172

The market outlets of swine raisers were agents, livestock assemblers- Labor 0.232
distributors and butcher-meat distributors.
TOTAL 1.404 0.021 0.333 0.460 0.004 0.173
RLA-LLD supplied BOPs from Cebu.

Retailers bought swine either live or slaughtered and sold them to the
consumers. Appendix 15f. SWINE (Live): Imputed cost of depreciation by marketing participants,
by materials/facilities and equipment used, Cebu, 2002
Metro Manila
RAISER/
ITEM RLA-SLD BLA-SLD RETAILER
OPERATOR
Meat distributors got their stocks from the suppliers outside the province
(SOP). peso per kilogram (Liveweight)

They brought live hogs to the slaughterhouse, paid for the services of the Material Used
butchers, and then distributed meat to the retailers and institutional buyers. Ice bucket 0.003

Equipment
Weighing Scale 0.04 0.01

Facilities
Holding 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


90 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 23

Appendix 15c. SWINE (Live): Im puted costs of labor and depreciation incurred by m arketing participants,
by m aterial/facilities/equipm ent used, Nueva Ecija, 2002
CONSUMER
RAISER/ RLA-B- RLA-B- PLA-B-
ITEM PLA-LLD BLA-SLD AGENT RETAILER
OPERATOR LMD SMD LMD

peso per kilogram (liveweight)

Equipm ent RETAILER


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 SLAUGHTERHOUSE BOP
Labor 0.500

TOTAL 0.266 0.162 1.250 0.046 0.071 0.126 0.008 0.001

LOM
a/ less than 0.001

Appendix 15d. SWINE (Live): Imputed cost of depreciation/labor by marketing


participants, by materials/facilities and equipment used, Batangas, 2002 PLA-B-SMD IRLA-LLD
MLA-B-SMD MLA-SLD
ITEM RAISER/OPERATOR MLA-LLD

peso per kilogram (liveweight)

Equipment
Weighing Scale 0.02 0.003
Cellphone 0.01
RAISER/OPERATOR
Transportation
Jeep 2.41 0.29

TOTAL 2.43 0.303

Figure 9. Marketing Channels for Swine in Pangasinan, 2002


24 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 89

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

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

peso per kilogram

Equipment
RETAILER BOP Calculator a/ 0.001 0.004

Transportation
Truck 0.053 0.147 0.240 0.214

Labor 0.710

RLA-B-LMD/ PLA-B-LMD/
SMD SMD TOTAL 0.053 0.147 0.241 0.928

Appendix 15b. SWINE ( Live): Im puted costs of labor and depreciation incurred by m arketing
participants, by m aterial/facilities/equipm ent used, Pangasinan, 2002

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

peso per kilogram (liveweight)

Equipm ent
Weighing scale a/ 0.01
BLA-SLD
Calculator a/
Cellphone 0.002 0.01

Facilities
AGENT
Office building 0.001

Transportation
Forw ard 0.40
RAISER/OPERATOR
Truck 3.04 0.19 0.84
Tricycle 0.12

Labor 0.09

TOTAL 3.05 0.29 0.40 0.96


Figure 10. Marketing Channels for Swine in Nueva Ecija, 2002
a/ include all kind of weighing scale
88 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 25

Appendix 15. SWINE (Live): Im puted cost of depreciation/labor incurred by respondents,


by m aterial/facilities/equipm ent, by province, Philippines, 2002 CONSUMER

METRO
ITEM PANGASINAN NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
MANILA

peso per kilogram (liveweight)

Material Used SOP RETAILER


Slicing tools 0.004
Ice bucket/box 0.003

Equipm ent SLAUGHTERHOUSE


BOP
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
IRLA-B-SMD BLA-B-SMD
Facilities
Holding pen/stockyard 0.01 0.05
Office building 0.001

Transportation
Truck 0.12 0.240 0.322 0.05
PLA-SLD
Forw ard 0.400
Tricycle/sidecar 0.120 0.138
Jeep 0.184 0.37
Motor w ith trailer 0.172 PLA-LLD MLA-LLD
Ford fierra 0.48
Motorcycle 0.28
Multi-cab/pick-up 1.56
Trailer 0.066
Colong-colong 0.119
LOM
Labor 0.71 0.09 0.50 0.232

TOTAL 0.832 0.866 0.884 0.390 0.894 1.633 0.814

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

Figure 11. Marketing Channels for Swine in Batangas, 2002


26 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 87

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

RETAILER
RAISER/
ITEM IRLA- SLD BLA-SLD MLA-SLD RLA-B-SMD PLA-B-SMD RETAILER
OPERATOR

peso per kilogram (liveweight)

Business permit 0.02 0.002


Market fee 0.04
Stall rental
Holding pen rental 0.20 0.09
PLA-B-SMD SLAUGHTERHOUSE SMD Electricity
Slaughter fee 1.94 1.03
Telephone 0.025 0.035
Garbage/Sanitary permit
Water 0.01
Gas and Oil 0.36 0.19 0.12 0.43
Entrance fee (abbattoir) 0.35 0.58
Stockyard fee 0.20 0.16
Agent's commission 0.90
BOP Shrinkage 1.73 1.12 1.11 2.72
PLA-SLD Meals and Beverages 0.06

TOTAL 2.98 1.68 1.61 2.72 2.08 0.28 2.075

Appendix 14g. SWINE (Live): Other operating costs incurred by m arketing participants, by item , Davao, 2002
PLA-LLD AGENT PLA-MLD RLA-B-SMD
IRLA-LLD- IRLA- RLA- PLA- RLA- PLA-LLD- PLA- MLA- MLA- BLA-
ITEM B-MR
B-SMD MLD LLD LLD SLD B-MR SLD LLD SLD LLD
peso per kilogram (liveweight)

Slaughter fee 0.97 0.17 0.77


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

Figure 12. Marketing Channels for Swine in Iloilo, 2002 TOTAL 1.05 0.32 0.18 0.53 1.43 0.24 0.79 1.23 0.27 0.06 0.77
86 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 27

Appendix 14e. SWINE (Live): Other operating costs incurred by m arketing participants, by item , Iloilo, 2002 Legend: CONSUMERS

- live INSTITUTIONAL
RAISER/ PLA- RLA-B- PLA-B- BUYERS
ITEM PLA-LLD PLA-SLD AGENT RETAILER
OPERATOR MLD SMD SMD - meat
peso per kilogram (liveweight) RETAILERS

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 SLAUGHTERHOUSE
Cellcard 0.008 0.023
Repair and maintenance 0.938 0.007 0.036 0.003 COOP
Interest on loan 0.337
Meals and beverages 0.500 0.188 0.429 0.095 0.118
STOCKYARD
Gas and oil 0.200 0.261 0.307 0.114 0.235
Electricity and w ater 0.235
Telephone 0.118 PLA-B- AGENT
Gun license fee 0.077 BOP SMD/BLA-
Stockyard fee 0.022 B-SMD
Stall rental
BLA-B-SMD/
Vehicle registration fee 0.025 RLA-B-
IRLA-SLD
Wharfage fee 0.012 SMD
Cigarettes 0.176
LOM exit fee
Inspection fee
Shrinkage 0.574 LOM
SOP
Permit fee to slaughter 0.081 0.170
Slaughter fee 0.300 0.300
Post mortem fee
Corral fee 0.022 0.045
BLA-SLD AGENT MLA-SLD
TOTAL 2.793 0.475 0.430 1.833 0.612 0.671 0.554 0.457

RAISER

Figure 13. Marketing Channels for Swine in Cebu, 2002


28 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 85

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

RAISER/ PLA- BLA- RLA-B- RLA-B- PLA-B- PLA-B- MLA-B-


ITEM AGENT RETAILER
CONSUMER OPERATOR LLD SLD LMD SMD LMD SMD SMD

peso per kilogram (liveweight)

Demand B/MR Business permit 0.092 0.01 0.02 0.005 0.02 0.01
Sanitary fee 0.27 0.25 0.26 0.279 0.242 0.246
Areas Water 0.022 0.043
Slaughter fee 0.675 0.063 0.742 0.697 0.606 0.615
Agent's commission 0.676 0.573
Weighing scale rental 0.013 0.066
PLA-LLD-B-MR Barangay permit 0.25
Repair and maintenance 0.018
Cell card 0.034
Gas and oil 0.017 1.777 0.5 0.28 0.63 0.65 1.212 0.312
Meals 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
IRLA-LLD-B-
SMD/
BLA-LLD/RLA-
IRLA-MLD/RLA- LLD
Supply SLD/PLA-LLD/PLA- Appendix 14d . SWINE (Live): Other operating costs incurred by m arketing participants, by
item , Batangas, 2002
Areas SLD/MLA-
LLD/MLA-SLD BOP
RAISER/ MLA- PLA- PLA- IRLA-B- MLA-B-
ITEM RETAILER
OPERATOR LLD LLD SLD LMD SMD

pesoStructure
Marketing Costs per kilogram
for(liveweight)
Swine i
AGENT Business permit 0.01 0.002
Inspection fee 0.22
Coral fee 0.22
Occupancy fee 0.06
Slaughter fee 1.11
Gas and Oil 0.19 0.81 0.15 0.29
Weighing fee 0.18 0.06 0.13
Tollgate fee 0.02
Agent's commission 0.71 0.67
RAISER Cellcard 0.06
Shrinkage 0.69
Others a/ 0.02

Figure 14. Marketing Channels for Swine in Davao, 2002 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
84 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 29

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

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

peso per kilogram (liveweight)

Business permit 0.058


Telephone 0.033 0.026 IB-RETAILER
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 SLAUGHTERHOUSE
Gas and oil 0.223 0.567
Repair and maintenance 0.035 0.056 0.005

TOTAL 0.035 1.256 2.746 1.538

Appendix 14b. SWINE (Live): Other operating costs incurred by marketing participants, IRLA-B-SMD
by item, Pangasinan, 2002
IRLA-SLD
RAISER/ PLA-B- MLA-B-
ITEM IRLA-LLD MLA-SLD
OPERATOR SMD SMD
peso per kilogram (liveweight)
IRLA-B-LMD

Gas and oil 0.702 0.887 0.348


Marketing Costs Structure for Swine i
Meals and beverages 0.418 SOP
Entrance fee 0.081 0.036
Weighing of live hogs 0.132 Legend:
Branding at LOM 0.197 0.020
Barangay permit 0.500 0.002 0.018 - live
Revolutionary tax 0.001
Business permit/license 0.062 0.038 - meat
Holding pen 0.353
Cell cards 0.088 0.033
Telephone 0.005 0.007
Tong 0.005
Slaughterhouse fee 1.875
Interest on capital 0.160
Repair and maintenance 1.850
Figure 15. Marketing Channels for Swine in Metro Manila, 2002
TOTAL 0.655 3.543 1.931 0.887 0.802
30 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 83

Appendix 14. SWINE (Live): Other operating costs incurred by respondents,


Marketing Costs by activity/practice/item , by province, Philippines2002

Marketing of swine from the farm level up to retail level entailed a lot of costs which METRO NUEVA
included labor, transportation, material inputs, other operating expenses and depreciation. ITEM
MANILA
PANGASINAN
ECIJA
BATANGAS ILOILO CEBU DAVAO
The succeeding topics described the expenditure items and the corresponding cost as
peso per kilogram (liveweight)
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
Business permit 0.058 0.07 0.03 0.01 0.014 0.02 0.01
amount varied depending on the extent of business operations.
Barangay permit c/ 0.02 0.25 0.01
Labor Transport permit
Market fee b/ 0.121 0.04 0.03
The activities performed in the process of procuring live hogs from the farm Weighing scale rental 0.04
included handling (loading/unloading to/from the truck/vehicle). During internal operations, Inspection fee 0.22
feeding and cleaning of pens were done by some traders. Hauling, handling, slaughtering Coral fee 0.22 0.030
and selling were the activities performed in the distribution process that entailed Electricity 0.235
Occupancy fee 0.06
corresponding cost.
Slaughter housefee 0.359 1.88
Live Slaughter fee 0.741 0.57 1.11 0.300 1.48 0.93
Branding fee
Labor costs ranged from P0.21 (Batangas) to P5.60 per kilogram liveweight Calibration of w eighing scale
(Iloilo). Garbage/Sanitary permit 0.26
Water 0.03 0.01 0.04
Traders in Iloilo spent relatively highest labor cost which included shipping cost Gas and oil 0.40 0.65 0.62 0.29 0.398 0.27 0.37
at P0.96, distribution cost at P3.60 and salaries and wages at P0.96. Meals and beverages d/ 0.42 0.27 0.393 0.06 0.11
Cebu traders ranked second with cost averaging P2.79 per kilogram which Weighing fee 0.133 0.13 0.11 0.163 0.06
contributed largely by P2.21 paid by raisers for slaughtering fees and services. Tollgate fee 0.04 0.02
Branding fee 0.07
The costs of labor in Metro Manila, Pangasinan, Nueva Ecija and Davao were Agent's commission 1.00 0.62 0.68 0.438 0.90 0.06
recorded at less than P2.00 per kilogram liveweight. Cellcard 0.06 0.03 0.12 0.049 0.03
Wastage/Shrinkage 0.69 0.574 1.30
Others e/ 0.006 0.03 0.02
Table 13a. SWINE (Live): Labor costs by m arketing activity/practice, by province, 2002 Holding pen rental 0.35 0.14
Telephone 0.03 0.006 0.118 0.02 0.14
METRO PANGA- NUEVA Entrance/exit fee 0.06 0.46
ACTIVITY/PRACTICE BATANGAS ILOILO CEBU DAVAO Stockyard fee 0.022 0.18 0.29
MANILA SINAN ECIJA
Repair and maintenance 0.035 1.85 0.018 0.009
peso per kilogram (liveweight) Interest on loan 0.16 0.337
Gun license fee 0.077
Procurem ent 1.34 0.70 1.57 0.10 0.08 0.33 0.18 Vehicle registration fee 0.025
Shipping - - - - 0.96 0.02 0.46 Wharfage 0.012
Travel permit 0.06
Distribution - 0.34 - - 3.6 2.21 0.17
Residence certificate
Salaries and Wages 0.48 0.25 0.23 0.11 0.96 0.25 0.54

TOTAL 2.795 5.732 2.738 3.560 3.315 4.880 2.160


TOTAL 1.82 1.29 1.80 0.21 5.60 2.81 1.35

a/ less than o .o o 1
Slaughtered b/ includes ticket and cash ticket
c/ includes lo cal tax
The highest cost of labor in marketing swine was recorded in Nueva Ecija at d/ includes cigarrettes, rice supply
P3.98 per kilogram while the lowest was in Davao at P0.52 per kilogram of e/ includes to ng, revo lutio nary tax, dro pping fee
meat.
82 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 31

Appendix 13d. SWINE(Live): Cost of material inputs incurred by marketing In procuring meat, traders in Metro Manila, Nueva Ecija, Batangas and Davao
participants, by item, Cebu, 2002 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
ITEM RAISER/ OPERATOR BLA - SLD PLA-B- SMD distribution of every kilogram of pork.
peso per kilogram (Liveweight)
Table 13b. SWINE (Slaughtered): Labor costs by m arketing activity/practice,
PROCUREMENT by province. 2002
Feeds 0.10 0.08

METRO PANGA- NUEVA


DISTRIBUTION ACTIVITY/PRACTICE BATANGAS ILOILO CEBU DAVAO
Ropes 0.21 MANILA SINAN ECIJA

peso per kilogram (meat)


TOTAL 0.21 0.10 0.08
Procurem ent 1.06 - 0.86 0.12 - - 0.11
Distribution 1.25 0.66 2.34 1.01 0.72 1.10 0.10
Salaries and Wages 0.48 0.50 0.78 0.31 1.33 0.43 0.31

Appendix 13e. SWINE (Live): Costs of material Inputs incurred by marketing TOTAL 2.79 1.16 3.98 1.44 2.05 1.53 0.52
participants, by item, Davao, 2002

ITEM RLA-SLD PLA-SLD MLA-LLD


Transportation
Transportation was a major consideration in moving the commodity from point to
peso per kilogram (liveweight) point and from one participant to another. The cost depends on the distance and
Procurement destination of the commodity.
Rope 0.002 0.002 Live
Bamboo 0.002 0.007
Shipment of live hogs from Iloilo and Davao required average costs of P1.43
Kaing 0.040 and P3.13 per kilogram, respectively.
Feeds 0.150
Average cost of transferring hogs from the source to their destination ranged
TOTAL 0.150 0.004 0.049
from P0.08 to P3.91 per kilogram.

Table 14a. SWINE (Live): Transportation costs by m arketing


activity/practice, by province, 2002

NUEVA
ACTIVITY/PRACTICE PANGASINAN BATANGAS ILOILO CEBU DAVAO
ECIJA
peso per kilogram (liveweight)

Procurement 0.08 0.81 0.80 - 0.58 0.33


Shipping - - - 1.43 - 3.13
Distribution - - 0.39 0.75 0.32 0.45

TOTAL 0.08 0.81 1.19 2.18 0.90 3.91


32 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 81

Appendix 13a. SWINE (Live): Costs of material Inputs incurred by


marketing participants, by item, Pangasinan, 2002
Slaughtered
RAISER/
ITEM IRLA-LLD MLA-B-SMD
Trader-respondents from Metro Manila, Batangas and Cebu paid P0.46, P0.29 OPERATOR
and P0.41 per kilogram, respectively for transportation during their peso per kilogram (liveweight)
procurement activities. In this case, traders let their buyers picked up the
goods from their location. Distribution
Drum 0.012
On the other hand, traders from Nueva Ecija incurred transport cost of P0.31 Pail 0.030 0.001 0.001
during distribution only. Rope 0.110 0.080 a/
Plastic hose 0.07
Respondents from Iloilo and Davao were charged a total of P1.40 and P0.23
per kilogram, respectively, for transporting slaughtered animals. TOTAL 0.210 0.093 0.001

Appendix 13b. SWINE (Live): Costs of material Inputs incurred by marketing participants, by item,
Table 14b. SWINE (Slaughtered): Transportation costs by m arketing Nueva Ecija, 2002
activity/practice, by province, 2002

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


ACTIVITY/PRACTICE BATANGAS ILOILO CEBU DAVAO
MANILA ECIJA
peso per kilogram (liveweight)
peso per kilogram (meat)
Procurement
Procurement 0.456 - 0.29 0.75 0.41 0.04 Feeds 0.173 0.111 0.231 0.122
Distribution - 0.31 - 0.645 - 0.19 Brooms 0.001
Basin 0.004 0.002
Hose 0.015
TOTAL 0.46 0.31 0.29 1.395 0.41 0.23
Pail 0.003

TOTAL 0.195 0.111 0.231 0.003 0.122

Material Inputs a/ less than 0.001

Swine trading required some material inputs. In buying, the materials used were Appendix 13c. SWINE (Live): Cost of material inputs incurred by marketing participants,
crates, drum, ladder, feeds, rope and containers. In selling, rope, feeds, sacks and plastic by item, Iloilo, 2002
bags were used. Tables 15a and 15b present the materials used and the corresponding
costs for live and slaughtered animals, respectively. ITEM
RAISER/
PLA-LLD PLA-MLD PLA-SLD PLA-B-SMD
OPERATOR

Live peso per kilogram (liveweight)


Procurement
Crate 0.003
In Pangasinan, Nueva Ecija and Davao, trader-respondents used some Drum 0.001 0.004
materials with costs ranging from P0.12 to P0.20 per kilogram for the Ladder 0.002
procurement of live hogs. Feeds/rice bran 0.662 0.089
Rope 0.003 a/
Traders from Cebu and Iloilo spent much higher at P0.30 and P0.50 per Container 0.001
kilogram because they used those material inputs both in the procurement and Distribution
distribution processes. Rope 0.050
Feeds 0.240
Trader-respondents from Metro Manila and Batangas did not require material
inputs in trading live animals. TOTAL 0.290 0.006 0.662 0.008 0.089
80 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 33

Appendix 12f. SWINE (Live): Transportation costs incurred by m arketing participants,


by activity/practice, Davao, 2002
Table 15a. SWINE (Live): Cost of m aterial inputs by m arketing activity/practice
by province, 2002
RAISER- IRLA-LLD- RLA- PLA- RLA- PLA- MLA- BLA- BLA-
ITEM
OPERATOR B-SMD LLD LLD SLD SLD LLD LLD B-MR METRO PANGA- NUEVA
ACTIVITY/PRACTICE BATANGAS ILOILO CEBU DAVAO
peso per kilogram (liveweight) MANILA SINAN ECIJA
peso per kilogram (liveweight)

Procurem ent 0.36 0.69 0.08 0.19 0.31


Procurement - 0.12 0.18 - 0.21 0.09 0.20
Distribution - - - - 0.29 0.21 -
Shipping 3.13
TOTAL - 0.12 0.18 - 0.50 0.30 0.20
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 Slaughtered

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

Appendix 13. SWINE (Live): Cost of material inputs incurred by marketing In selling, however, the average costs for materials ranged from P0.08 (Iloilo)
participants, by activity/practice/item, to P1.07 per kilogram (Pangasinan).
by province, Philippines, 2002

ITEM PANGASINAN NUEVA ECIJA ILOILO CEBU DAVAO


Table 15b. SWINE (Slaughtered): Cost of m aterial inputs by m arketing activity/practice
peso per kilogram (liveweight) by province, 2002
PROCUREMENT
METRO PANGA- NUEVA
Feeds/rice bran 0.16 0.204 0.09 0.15 ACTIVITY/PRACTICE BATANGAS ILOILO CEBU DAVAO
MANILA SINAN ECIJA
Crate 0.003
Drum 0.012 0.002 peso per kilogram (meat)
Ladder 0.002
Rope 0.04 0.001 0.002 Procurement - - - - - 0.003 -
Container 0.001 Distribution 0.34 1.07 0.30 0.89 0.08 0.37 0.52
Bamboo 0.004
Kaing 0.04 TOTAL 0.34 1.07 0.30 0.89 0.08 0.37 0.52
Brooms 0.001
Basin 0.003
Hose 0.07 0.015
Pail 0.002 0.003
Other Operating Costs
DISTRIBUTION
Ropes 0.05 0.21 Marketing participants also incurred other operating expenses which included
Feeds 0.24 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.
TOTAL 0.124 0.182 0.503 0.30 0.196 Other items with the corresponding amount of cost incurred are enumerated in Tables 16a
and 16b.
34 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 79

Appendix 12c. SWINE(Live): Transportation costs incurred by m arketing participants,


Live by activity/practice, Batangas, 2002

The average operating cost was highest in Pangasinan at P5.73, followed by MARKETING
MLA-LLD PLA-LLD PLA-SLD MLA-B-SMD RETAILER
Cebu at P4.88 and Batangas at P3.56 per kilogram. ACTIVITY/PRACTICE

peso per kilogram (liveweight)


In Metro Manila, traders needed P2.80 per kilogram to cover miscellaneous
expenses. Procurement 0.11 0.84 0.82

Traders from other areas incurred P2.74 (Nueva Ecija), P3.31 (Iloilo) and Distribution 0.15 0.73 0.29
P2.16 (Davao).
TOTAL 0.26 0.73 0.29 0.84 0.82

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


by cost item , by province, 2002

METRO PANGA- NUEVA


ITEM BATANGAS ILOILO CEBU DAVAO Appendix 12d. SWINE (Live): Transportation costs incurred by marketing
MANILA SINAN ECIJA participants, by activity/practice, Iloilo, 2002
peso per kilogram (liveweight)

Permits/licenses 0.06 0.07 0.54 0.01 0.18 0.02 0.08 ITEM RAISER/ OPERATOR PLA-LLD
Fees 1.27 2.14 0.57 1.74 0.736 2.16 1.27
Rentals - 0.35 0.04 - 0.01 0.14 -
Php/kg.(liveweight)
Utilities 0.03 0.12 0.06 0.12 0.24 0.03 0.21
Gas and oil 0.40 0.65 0.62 0.29 0.24 0.27 0.06 Shipping 1.425
Meals and beverages - 0.42 0.27 - 0.41 0.06 0.37
Agent's commission 1.00 - 0.62 0.68 0.44 0.90 0.06 Distribution 1.04 0.748
Shipping - - - - 0.013 - -
Repair and maintenance 0.035 1.85 0.18 - 0.346 - - TOTAL 1.04 2.173
Interest on loan - 0.16 - - 0.22 - -
Services - - - - - - -
Shrinkage - - - 0.69 - 1.30 -
Others - 0.006 - 0.03 - - 0.04
Appendix 12e. SWINE (Live): Transportation costs incurred by m arketing participants,
TOTAL 2.79 5.77 2.90 3.56 2.83 4.88 2.09 by activity/practice, Cebu, 2002

RAISER/ RLA-B- PLA-B- BLA-B-


ITEM PLA-LLD MLA-SLD BLA-SLD RETAILER
Slaughtered OPERATOR SMD SMD SMD

Trading of slaughtered hogs required a minimum of P0.50 and a maximum of peso per kilogram (liveweight)
P13.38 per kilogram of meat to cover the other operating expenses.
Procurement 0.92 0.72 0.92 1.81 0.61 0.45 0.54

Wastage contributed a significant amount particularly in Metro Manila, Distribution 0.32


Pangasinan, Nueva Ecija and Cebu.
TOTAL 0.32 0.92 0.72 0.92 1.81 0.61 0.45 0.54
Other items like fees, rentals, utilities, gas and oil, meals and beverages
amounted to less than a peso.
78 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 35

Appendix 12. SWINE (Live): Transportation costs incurred by m arketing


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

METRO PANGA- NUEVA


ITEM PANGASINAN NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO ITEM BATANGAS ILOILO CEBU DAVAO
MANILA SINAN ECIJA
peso per kilogram (meat)
peso per kilogram (liveweight)

Permits/licenses 0.57 0.04 0.01 0.07 0.01 0.07 0.06


Procurement 0.08 0.81 0.80 0.58 0.33 Fees 0.786 0.177 0.063 0.42 0.43 0.72 -
Rentals 1.48 - 0.05 0.03 0.11 0.15 0.09
Utilities 0.30 0.07 0.18 0.30 0.05 0.17 0.34
Shipping 1.425 3.13
Gas and oil 0.97 - 0.11 0.29 0.24 - 0.01
Meals and beverages 0.061 - 0.25 0.13 0.12 0.23 -
Distribution 0.39 0.75 0.32 0.45 Agent's commission - - - - - - -
Shipping - - - - - - -
TOTAL 0.08 0.81 1.19 2.175 0.90 3.91 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 - - -
Appendix 12a. SWINE (Live): Transportation costs incurred by
marketing participants, by activity/practice, Pangasinan, 2002 TOTAL 6.91 7.47 13.38 1.46 1.13 8.24 0.50

ITEM MLA-SLD PLA-B-SMD

Imputed Costs
Procurement 0.08 0.07
This study computed the depreciation costs for materials, facilities and
TOTAL 0.08 0.07 transportation items used in swine marketing. It also included the estimated value of the
work performed by the family/operator.

Live

Appendix 12b. SWINE (Live): Transportation costs incurred by There were trader-respondents in Metro Manila, Pangasinan, Nueva Ecija and
marketing participants, by activity/practice, Nueva Ecija, 2002 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.
ITEM PLA-B-SMD RETAILER

peso per kg.(liveweight) Total imputed cost was highest in Cebu at P1.63 and lowest in Batangas at
P0.39.
Procurement 1.40 0.21

Total 1.40 0.21


36 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 77

Appendix 11f. SWINE (Live): Labor costs incurred by m arketing participants,


Table 17a. SWINE (Live): Im puted cost of depreciation/labor incurred by respondents, by activity/practice, Cebu, 2002
by cost item , by province, 2002

METRO PANGA- NUEVA MARKETING RAISER/


ITEM BATANGAS ILOILO CEBU DAVAO PLA-LLD BLA - SLD RLA-B-SMD PLA-B-SMD RETAILER
MANILA SINAN ECIJA ACTIVITY/PRACTICE OPERATOR
peso per kilogram (liveweight)
peso per kilogram (liveweight)
Procurem ent
Material Used - - - - 0.004 0.003 -
Handling
Equipment 0.002 0.015 0.015 0.02 0.02 0.02 0.004
Loading 0.05 0.05 0.13 0.10 0.20
Facilities - 0.001 - - 0.01 0.05 - Unloading 0.05 0.05 0.13 0.10 0.20
Transportation 0.12 0.76 0.37 0.37 0.81 1.56 0.81 Chopping a/ 0.19
Labor 0.71 0.09 0.50 - 0.23 - -
Distribution
TOTAL 0.83 0.87 0.88 0.39 1.07 1.63 0.81 Slaughtering 2.21

Salaries and Wages 0.35 0.21

Slaughtered
TOTAL 2.56 0.10 0.10 0.26 0.20 0.80

The imputed cost was P3.51 per kilogram in Metro Manila, the highest a/ include chopping and slicing
among the areas covered.

The next with higher imputed cost was gathered in Nueva Ecija at P1.29.
Appendix 11g. SWINE (Live): Labor costs incurred by m arketing participants,
by activity/practice, Davao, 2002
Traders in other areas have total imputed cost from P0.09 (Davao) to P0.85
(Pangasinan).
MARKETING ACTIVITY/ IRLA-LLD- IRLA- RLA- PLA- RLA- PLA-LLD- PLA- MLA- MLA- BLA-
PRACTICE
B-SMD MLD LLD LLD SLD B-MR SLD LLD SLD LLD
peso per kilogram (liveweight)

Table 17b. SWINE (Slaughtered): Im puted cost of depreciation/labor incurred by


respondents, by cost item , by province, 2002 Procurem ent

METRO NUEVA Handling 0.25 0.43 0.16 0.07 0.03 0.14


PANGA-
ITEM BATANGAS ILOILO CEBU DAVAO
MANILA SINAN ECIJA
peso per kilogram (meat) Shipping
Arrastre 0.46
Material Used 0.031 0.007 0.01 0.014 0.006 0.011 0.02
Equipment 0.105 0.163 0.256 0.046 0.057 0.03 0.073
Distribution
Facilities 1.436 - - - - - -
Handling 0.13 0.40 0.16 0.07 0.03 0.14
Transportation 0.14 - 0.20 - 0.17 - -
Labor 1.802 0.68 0.83 0.35 - 0.54 -
Salaries and Wages 0.99 0.09 0.40 0.48 0.48
TOTAL 3.51 0.85 1.29 0.41 0.23 0.58 0.09

TOTAL 0.84 0.99 0.92 0.40 0.32 0.14 0.48 0.48 0.06 0.28
76 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 37

Total Marketing Costs


Appendix 11d. SWINE(Live): Labor costs incurred by m arketing participants, by
activity/practice, Batangas, 2002
Live
MARKETING
PLA-LLD MLA-LLD RETAILER In the supply areas in Luzon, average costs in marketing live hogs ranged from
ACTIVITY/PRACTICE P6.36 in Batangas to P8.13 in Pangasinan.
peso per kilogram (liveweight)
In Visayas, marketing cost was highest in Iloilo at P12.89 followed by Cebu at
Distribution
P11.13 per kilogram.
Handling 0.10 0.12

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


Salaries and Wages 0.08 0.15 hogs.

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


TOTAL 0.18 0.15 0.12

METRO PANGA- NUEVA


ITEM BATANGAS ILOILO CEBU DAVAO
MANILA SINAN ECIJA
peso per kilogram (liveweight)

Cash Costs 4.61 7.26 5.69 5.97 11.82 9.30 7.55


Appendix 11e. SWINE (Live): Labor costs incurred by m arketing participants,
by activity/practice, Iloilo, 2002
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
MARKETING RAISER/ RLA-B- PLA-B
PLA-LLD PLA-MLD PLA-SLD Material Inputs - 0.12 0.18 - 1.21 0.3 0.2
ACTIVITY/PRACTICE OPERATOR SMD SMD
Other Operating Expenses 2.79 5.77 2.9 3.56 2.83 4.88 2.09
peso per kilogram (liveweight)
Procurem ent Non-cash Costs 0.83 0.87 0.88 0.39 1.07 1.83 0.81
Handling
Loading 0.153 0.342 0.036 0.165 Depreciation 0.12 0.78 0.38 0.39 0.84 1.83 0.81
Unloading 0.153 0.342 0.036 0.165 Labor 0.71 0.09 0.50 - 0.23 - -

Shipping TOTAL 5.44 8.13 6.57 6.36 12.89 11.13 8.36


Arrastre 0.060
Convoy 0.899
Slaughtered
Distribution
Hauling 1.020 Pork trading was more costly than trading live hogs as shown in marketing
Feeding and cleaning of pens 0.074
costs incurred by the respondents from Metro Manila (P14.01), Pangasinan
Slaughtering/Slicing/w eighing 1.429 0.982 0.538 1.619
(P10.55) and Nueva Ecija (P19.26).
Handling 1.496
Selling
Traders in Batangas and Iloilo spent P4.49 and P4.89 per kilogram,
Salaries and Wages 0.959 respectively, in procuring and distributing pork.

In Cebu, equal amount was required in trading live and slaughtered animals at
TOTAL 2.449 2.761 0.684 1.941 0.609 2.022
P11.13 per kilogram.

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


38 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 75

Table 18b. SWINE (Slaughtered): Total m arketing costs, by province, 2002 Appendix 11b. SWINE (Live): Labor costs incurred by marketing participants, by
activity/practice, Pangasinan, 2002
METRO PANGA- NUEVA
ITEM BATANGAS ILOILO CEBU DAVAO
MANILA SINAN ECIJA MARKETING
peso per kilogram (meat) IRLA-LLD MLA-SLD MLA-B-SMD
ACTIVITY/PRACTICE
Cash Costs 10.5 9.7 17.97 4.08 4.66 10.55 1.77
peso per kilogram (liveweight)

Labor 2.79 1.16 3.98 1.44 2.05 1.53 0.52 Pre-marketing


Transportation 0.46 - 0.31 0.29 1.40 0.41 0.23 Handling
Material Inputs 0.34 1.07 0.30 0.89 0.08 0.37 0.52 Loading 0.31
Other Operating Expenses 6.91 7.47 13.38 1.46 1.13 8.24 0.50 Unloading 0.31
Hauling 0.08
Non-cash Costs 3.51 0.85 1.29 0.41 0.23 0.58 0.09
Distribution
Depreciation 1.71 0.17 0.46 0.06 0.23 0.04 0.09 Slaughtering 0.25
Labor 1.80 0.68 0.83 0.35 - 0.54 - Selling 0.09

TOTAL 14.01 10.55 19.26 4.49 4.89 11.13 1.86 Salaries and Wages 0.25

TOTAL 0.25 0.17 0.87


Marketing Costs by Point of Destination

The succeeding charts and table (Figures 16-21 and Table 19) present the average
costs incurred by the respondents in bringing the commodity from the source to its ultimate
destination.
Appendix 11c. SWINE (Live): Labor costs incurred by m arketing participants,
Pangasinan by activity/practice, Nueva Ecija, 2002

The raisers spent P6.26 per kilogram in bringing live hogs from the farm to the MARKETING RAISER/ RLA-B- RLA-B- PLA-B- PLA-B- MLA-B-
“Oksyon” market. When the animals were traded within the province, marketing ACTIVITY/PRACTICE OPERATOR
PLA-LLD
LMD SMD LMD SMD SMD
AGENT RETAILER
costs amounted to P8.79.
peso per kilogram (liveweight)
Traders who brought the animals to Ilocos Sur incurred marketing expense of Procurem ent
P7.22 while those trading live hogs in Benguet spent P8.60 for every kilogram. Handling

Nueva Ecija 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
The distribution of swine within the province entailed marketing cost of P13.38 Slaughtering 1.00 1.00 1.17 1.00 1.21 1.10
per kilogram.

Traders who brought the animals to Bulacan or Metro Manila have a lower Salaries & Wages 0.12 0.33
marketing expenditure amounting to P11.39 per kilogram.

Batangas TOTAL 0.12 0.49 1.55 1.46 2.05 1.66 1.21 0.10 1.72

From the supply barangays to the market, the average cost was P4.24 per * includes loading & unloading
kilogram. In distributing the animals to Batangas City, Bauan and Lemery, the
traders spent P3.18, P2.51 and P2.75, respectively.

The average cost of bringing hogs to Metro Manila was P6.34 per kilogram.
74 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 39

Appendix 11. SWINE (Live): Labor costs incurred by m arketing activity/practice,


by province, Philippines, 2002

MARKETING METRO NUEVA


PANGASINAN BATANGAS ILOILO CEBU DAVAO Pangasinan
ACTIVITY/PRACTICE MANILA ECIJA Pangasinan to Benguet =
peso per kilogram (liveweight)
to Ilocos Sur P8.60
= P7.22
Procurem ent
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
Illocos
Shipping
Within Sur
Arrastre 0.06 0.46
Convoy 0.899 Pangasinan
= P8.79
Distribution
Benguet
Hauling 1.02
Feeding and cleaning
of pens 0.074
Slaughtering a/ 0.25 1.008 2.21
Pangasinan
Handling
Loading 0.748 0.085
Unloading 0.748 0.085
Selling 0.09
Barangay
Salaries and Wages 0.48 0.25 0.23 0.11 0.959 0.25 0.54 to LOM
= P6.26
TOTAL 1.819 1.290 1.800 0.210 5.598 2.790 1.350

a/ includes slicing, chopping and weighing

Appendix 11a. SWINE (Live): Labor costs incurred by m arketing participants, by


activity/practice, Metro Manila, 2002

MARKETING IRLA-B- IRLA-B-


RETAILER
ACTIVITY/PRACTICE
LMD SMD
peso per kilogram (liveweight)

Procurem ent
Hauling 0.167
Handling 0.211

Pre-distribution
Slaughtering 1.338 0.831 0.531

Salaries and w ages


Helper 0.02
Driver 0.32 1.58
Figure 16. Average Marketing Costs for Swine, by Point of
TOTAL 1.505 1.171 2.322 Destination, Pangasinan, 2002
40 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 73

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


Philippines, 2002

Nueva Ecija to Metro SOURCE DESTINATION


PROVINCE
Manila & Bulacan
= P11.39 Within the province Outside the province Within the province Outside the province

Metro Manila Taguig, Muntinlupa City, Batangas, Bulacan, Muntinlupa City, Rizal, Cavite
Metro Las Pinas, Pasig City, Laguna, Rizal Las Pinas, Paranaque,
Manila & Quezon City, Makati City Nueva Ecija, Quezon, Marikina City,
Bulacan 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 Manila
San Carlos City, Villasis,
Lingayan, Bayambang

Nueva Ecija Sta. Rosa, Cabanatuan, Pangasinan, Bulacan Sangitan market, Isabela, Pampanga,
Jaen, Talavera, San Cabanatuan City, Munoz, Metro Manila
Leonardo, Bongabon, Bongabon, San Jose City
Within
Nueva Ecija Gabaldon, Aliaga, Aduas,
Nueva Ecija = P13.38 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 Marikina
and Metro Manila

Iloilo Janiuay, Leon, Guimbal, Janiuay, Leon, Metro Manila


Iloilo 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 City
Liloan, Dumanjug, Carcar,
Sibonga, Argao,
Compostela

Davao del Sur Bansalan, Sta. Maria, Sta. General Santos Sta. Cruz Davao City, Cebu
Cruz, Padada, Hagonoy,
Malita, Matanao,
Magsaysay, Sulop, Digos,
San Isidro, Kibongbong,
Manual, San Jose

Davao City Malingon, Toril, Calinan, Davao Sur, Saranggani, Bangkerohan Cebu City
Figure 17. Average Marketing Costs for Swine, by Point of Banate, Tibungco, Davao Norte
Destination, Nueva Ecija, 2002 Bunaw an Miral
72 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 41

Appendix 9. SWINE:Distribution of respondents, by type of marketing participants,


by terms of payment, by province, Philippines, 2002

LIVESTOCK Batangas to
LIVESTOCK Metro Manila=
PROVINCE/TERMS OF RAISER/ ASSEMBLER-
ASSEMBLER- AGENT RETAILER TOTAL P6.34
PAYMENT OPERATOR BUTCHER-MEAT Metro
DISTRIBUTOR
DISTRIBUTOR Manila

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

Pangasinan 30 5 6 41 Barangay
Cash 27 4 4 35 to Market
Combination 3 1 2 6 P4.24
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 Within Batangas


Cash 17 3 1 7 28 -Batangas City P3.18
Consignment 4 4 -Bauan P2.51
Delayed Payment/Credit 3 3 -Lemery P2.75
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 Batangas
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
Figure 18. Average Marketing Costs for Swine, by Point of
TOTAL 146 32 36 6 60 280
Destination, Batangas, 2002
42 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 71

Appendix 8. SWINE:Distribution of respondents, by type of marketing participants,


by mode of delivery, by province, Philippines, 2002

LIVESTOCK
LIVESTOCK
PROVINCE/MODE RAISER/ ASSEMBLER-
ASSEMBLER- AGENT RETAILER TOTAL
OF DELIVERY OPERATOR BUTCHER-MEAT
DISTRIBUTOR
Metro DISTRIBUTOR
Manila Iloilo to
Metro Manila
= P8.60 Metro Manila 1 10 27 38
Picked- up 5 26 31
Delivered 1 2 1 4
Both 3 3

Within Iloilo Pangasinan 30 5 6 41


= P3.88 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
Iloilo
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


Figure 19. Average Marketing Costs for Swine, by Point of
Destination, Iloilo, 2002
70 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 43

Appendix 7. SWINE:Distribution of respondents, by type of traders,


by mode of payment in buying stocks, by province, Philippines, 2002 Cebu to Manila –
P2.704

LIVESTOCK
LIVESTOCK
PROVINCE/MODE OF ASSEMBLER-
ASSEMBLER- AGENT RETAILER TOTAL
PAYMENT BUTCHER-MEAT
DISTRIBUTOR METRO MANILA
DISTRIBUTOR From barangay to
market = P1.394

Metro Manila 1 10 27 38
Cash 2 12 14
Consignment 2 4 6
Combination 1 6 11 18
Bohol to Cebu
Pangasinan 5 6 11 = 3.37
Cash 4 3 7
Within in the
Delayed Payment 1 1
province – P2.064
Combination 1 2 3

Nueva Ecija 2 8 3 2 15 Cebu


Cash 2 7 3 2 14
Delayed Payment 1 1
Bohol
Batangas 5 2 12 19
Cash 2 1 7 10
Consignment 3 3
Delayed Payment 1 1
General Santos to Cebu
Combination 2 1 2 5 = P2.84

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
General Santos
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
Figure 20. Total Marketing Costs for Swine, by Point of Destination,
TOTAL 25 22 3 58 134
Cebu, 2002
44 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 69

Appendix 6. SWINE:Distribution of respondents, by type of traders,


Davao to Manila
– P3.954 by manner of procurement, by province, Philippines, 2002

LIVESTOCK
LIVESTOCK
PROVINCE/ MANNER ASSEMBLER-
ASSEMBLER- AGENT RETAILER TOTAL
OF PROCUREMENT BUTCHER-MEAT
METRO MANILA DISTRIBUTOR
DISTRIBUTOR

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

From Pangasinan 5 6 11
barangay to Picked- up 5 6 11
market =
P0.501
Within in the
province – P2.32
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
General Santos to
Delivered 3 3
Davao = P0.91
Davao Both 1 1

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

General Davao Sur 6 1 2 9


Santos 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
Figure 21. Total Marketing Costs for Swine, by Point of Destination,
Davao, 2002
68 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 45

Appendix 5. SWINE: Distribution of respondents, by type of marketing participants, Iloilo


by percentage share to total business, by province, Philippines, 2002
Traders spent P3.88 per kilogram when distributing swine within Iloilo.

PERCENTAGE LIVESTOCK
LIVESTOCK Shipping cost for bringing animals to Metro Manila was P8.60 per kilogram.
RAISER/ ASSEMBLER-
SHARE TO TOTAL ASSEMBLER- AGENT RETAILER TOTAL
OPERATOR BUTCHER- MEAT
BUSINESS DISTRIBUTOR
DISTRIBUTOR
Cebu

In procuring animals from the areas outside Cebu, traders incurred an average
Metro Manila 1 10 27 38 cost of P3.37 (from Bohol) and P2.84 per kilogram (from General Santos City).
1 - 20
21 - 40 If the stocks came from the different barangays within the province, the cost of
41 - 60 1 1 bringing the animals to the Livestock Oksyon Market (LOM) was P1.39 per
61 - 80 2 2 kilogram.
81 - 100 1 9 25 35
Pangasinan 30 5 6 41
1 - 20 1 1 From the LOM to the different trading centers or markets within Cebu province,
21 - 40 2 2 traders spent P2.06 per kilogram and P2.70 per kilogram from Cebu to Manila
41 - 60 1 1
61 - 80
including the cost of shipping.
81 - 100 26 5 6 37
Nueva Ecija 29 3 7 3 2 44 Davao del Sur
1 - 20
21 - 40 1 1
41 - 60 2 2 The cost of procuring live hogs from the different supply barangays in Davao
61 - 80 2 1 1 1 5 and bringing them to the market was P0.50 per kilogram. When distributed to
81 - 100 24 2 6 3 1 36
Batangas 30 5 2 12 49
the various markets within the province, an average cost of P2.32 per kilogram
1 - 20 8 1 9 was added to the expenses of the traders.
21 - 40 1 1
41 - 60 1 1
61 - 80 1 1
The average cost of shipping the animals to Metro Manila was estimated at
81 - 100 21 5 2 9 37 P3.95 per kilogram.
Iloilo 24 4 3 1 4 36
1 - 20
21 - 40 3 1 4 Marketing Costs and Margins by Channel
41 - 60 2 2 1 5
61 - 80 7 7
81 - 100 12 2 1 1 4 20 The marketing margin is the difference between the value of a product at one stage
Cebu 20 5 5 13 43
1 - 20 4 4
and the value of an equivalent product at another stage in the marketing process.
21 - 40 3 1 4 The initial step in measuring the marketing margin is to describe the structure of the
41 - 60 2 1 1 3 7 marketing chain, starting at the farm gate and tracing the product through the various
61 - 80 3 1 4
81 - 100 8 2 4 10 24
intermediaries until it reaches the final consumer. Second, is to identify and list the various
Davao del Sur 12 6 1 2 21 functions that are performed at each stage in the marketing process.
1 - 20
21 - 40 1 1
41 - 60 2 1 3 The estimation of marketing margin needs price data at which the product is bought
61 - 80 and sold at each stage in the marketing process. On the part of traders, buying price can
81 - 100 12 4 1 17 be considered an expense. They have to pay for the commodity as the initial investment at
Davao City 1 4 1 2 8
1 - 20 prices agreed by both parties, the farmer and the trader.
21 - 40
41 - 60 1 1 For products that remain essentially unchanged during the marketing process, the
61 - 80
81 - 100 1 3 1 2 7 gross margin, which still includes the cost of trading and the risks, is the difference between
the price per unit of that product at the farmgate and the retail price per unit when sold to the
TOTAL 87 25 22 3 58 280 final consumers. The net margin, or the net return, therefore, is the remainder when the total
marketing costs were subtracted from the total gross margin.
46 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 67

Appendix 4. SWINE: Distribution of respondents, by type of marketing participants,


Product transformation occurs during the marketing process. An example is swine, by length of experience, by province, Philippines, 2002
where one kilogram liveweight sold by the farmer does not result in one kilogram of meat
being sold to consumers. In this case, there is a need to consider the recovery rate and the
LIVESTOCK
value of the by-products in the estimation of the marketing margins. PROVINCE/LENGTH RAISER/
LIVESTOCK
ASSEMBLER-
ASSEMBLER- AGENT RETAILER TOTAL
OF EXPERIENCE OPERATOR BUTCHER- MEAT
The gross and net marketing margins for swine are presented in Table 20 and DISTRIBUTOR
DISTRIBUTOR
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. Metro Manila 1 10 27 38
less than 5 3 3
Pangasinan 5 - 10 1 5 12 18
11 - 15 3 2 5
16 - 20 2 4 6
The raiser who sold his stock at P51.00 to an IRLA-LLD spent an average of more than 20 6 6
P5.98 per kilogram liveweight. Pangasinan 30 5 6 41
less than 5 6 3 9
The IRLA-LLD brought the animals to the slaughterhouse with total charges of 5 - 10 10 3 1 14
11 - 15 8 1 9
P7.21 per kilogram including gasoline and meals. At the selling price of 16 - 20 3 1 4
P60.00, he netted P1.79 per kilogram. more than 20 3 1 1 5
Nueva Ecija 29 2 8 3 2 44
The retailers who sourced their supply from the slaughterhouse paid for the less than 5 7 4 1 12
5 - 10 12 1 1 1 1 16
services of the butcher and other fees in the slaughterhouse. They incurred a 11 - 15 1 1 1 1 4
total cost of P6.48 per kilogram of meat. They sold pork at P105.00 (or P73.50 16 - 20 5 2 1 8
per kilogram liveweight) and by products at P10.75 giving them a net margin of more than 20 4 4
Batangas 30 5 2 12 49
P17.77 per kilogram. less than 5 6 1 1 8
5 - 10 8 6 14
Nueva Ecija 11 - 15 5 1 2 8
16 - 20 1 1 2
The raiser sold hogs directly to a provincial assembler-butcher-meat distributor more than 20 11 3 1 2 17
Iloilo 24 4 3 1 4 36
(PLA-B-SMD). His expenses in marketing included other operating and less than 5 6 1 7
imputed costs that added up to P0.59 per kilogram. 5 - 10 7 1 3 11
11 - 15 1 1 2
This assembler-distributor picked-up the hogs from the farm, took charge of 16 - 20 5 2 7
more than 20 5 1 2 1 9
slaughtering the animals and distributed the carcasses to the retailers. His total Cebu 20 5 5 13 43
cost was P8.80 per kilogram. At P66.50 per kilogram liveweight of meat and less than 5 7 1 1 9
P10.75 value of by-products, PLA-B-SMD earned a net margin of P3.45 per 5 - 10 5 3 3 6 17
11 - 15 2 1 3
kilogram. 16 - 20 1 3 4
more than 20 6 1 1 2 10
Retailers had a total expenditure of P9.36 per kilogram in buying and selling Davao del Sur 12 6 1 2 21
pork and the biggest cost items were labor at P5.07 and other operating cost at less than 5 5 3 1 9
5 - 10 5 3 1 9
P2.97. Buying the stocks at P95.00 and selling them at P105.00 per kilogram, 11 - 15
yielded a profit of P.64 per kilogram to these retailers. 16 - 20 1 1
more than 20 2 2
Batangas Davao City 1 4 1 2 8
less than 5 1 1 2
5 - 10 1 1
The raisers earned a gross margin of P50.60 in selling live hogs to PLA-LLD at 11 - 15 1 1
P51.00 and spent a total cost P0.40 per kilogram. 16 - 20 1 1
more than 20 1 1 1 3
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 TOTAL 87 25 22 3 58 280
liveweight.
62 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 47

Appendix 3. SWINE: Distribution of respondents by type of marketing participants,


The retailers took charge of the expenses from procuring live
by type of business ownership, by province, Philippines, 2002
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.
LIVESTOCK
LIVESTOCK
PROVINCE/TYPE OF RAISER/ ASSEMBLER- Iloilo
ASSEMBLER- AGENT RETAILER TOTAL
BUSINESS OWNERSHIP OPERATOR BUTCHER- MEAT
DISTRIBUTOR
DISTRIBUTOR Figure 25 shows the usual channel practiced in the province, i.e. from the
raisers to the RLA-B-SMD to slaughterhouse to retailers.

Metro Manila 1 10 27 38 o From the farm to the “oksyon” market, at a selling price of P42.25 and total
Single proprietorship 1 9 26 36
marketing cost of P8.68 per kilogram, raisers grossed P33.57.
Partnership 1 1 2

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


Pangasinan 30 5 6 41
the slaughterhouse; and from the slaughterhouse to the wet markets. At
Single proprietorship 28 5 6 39
Partnership 2 2
P60.00 (dressweight) or P42.00 (liveweight) and P10.75 per kilogram of by-
products, the traders earned a net profit of P9.51 after deducting total
Nueva Ecija 29 2 8 3 2 44 expenses of P0.99 per kilogram.
Single proprietorship 28 2 8 3 2 43
Partnership 1 1 o The retailers sold pork at P90.00 but spent P1.68 per kilogram. This gave
them a profit of P28.32 per kilogram.
Batangas 30 5 2 12 49
Single proprietorship 28 5 2 12 47
Partnership 2 2 Commercial raisers in Iloilo usually distribute their stocks directly in Metro
Manila. They shouldered the cost of shipping the animals from the farm to the
Iloilo 24 4 3 1 4 36 pier in Manila (Figure 26).
Single proprietorship 22 2 3 1 3 31
Partnership 1 2 1 4 o Bringing swine to Manila entailed a total cost of P9.53 per kilogram
Corporation 1 1 including shipping. At a selling price of P66.00 per kilogram liveweight,
Others raisers earned a gross of P56.47.
Cebu 20 5 5 13 43 o IRLA-B-SMD picked-up the animals from the pier and brought them directly
Single proprietorship 18 5 4 13 40 to the slaughterhouse. They sold meat to the retailers at P88.00
Partnership 1 1 (dressweight) or P61.60 (liveweight). After deducting the total cost of
Corporation 2 2 P4.82, they gained P1.53 for every kilogram of meat.
Davao del Sur 12 6 1 2 21 o At a selling price of P110.00 and expenses of P3.80 per kilogram, retailers’
Single proprietorship 12 6 1 2 21
net earning was P18.20 per kilogram.
Davao City 1 4 1 2 8
Single proprietorship 1 4 1 2 8
Cebu

Raisers sold their stock at P56.00 but spent P0.59 per kilogram in selling live
TOTAL 87 25 22 3 58 280 hogs 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 per
kilogram liveweight.
48 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 65

Appendix 2. SWINE: Distribution of respondents by nature of capitalization,


The retailers sourced their stocks from the slaughterhouse. Aside from the by type of marketing participants, by province, Philippines, 2002
buying price of P83.00 for every kilogram of the carcass, they also paid for the
costs of slaughtering and other expenses at P2.09 per kilogram. Their net profit
LIVESTOCK
was P2.66 per kilogram. PROVINCE/NATURE OF RAISER/
LIVESTOCK
ASSEMBLER-
ASSEMBLER- AGENT RETAILER TOTAL
CAPITALIZATION OPERATOR BUTCHER- MEAT
Davao del Sur / Davao City DISTRIBUTOR
DISTRIBUTOR

Figure 28 describes the channels in marketing culled hogs weighing an


Metro Manila 1 10 27 38
average of 200 kilograms per head, i.e. from raisers to PLA-SLD to institutional
Self-financed/owned 1 10 25 36
buyer or retailers. Borrowed 2 2

o Since PLA-SLD themselves picked-up the hogs they brought from the Pangasinan 30 5 6 41
raisers, they also paid a lower price of P30.00 per kilogram. Self-financed/owned 30 4 6 40
Borrowed 1 1
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 Nueva Ecija 29 2 8 3 2 44
cost of P1.72 per kilogram liveweight. Self-financed/owned 29 2 7 3 2 43
Borrowed 1 1
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 Batangas 30 5 2 12 49
Self-financed/owned 23 5 2 12 42
gross margin of P42.25, net margin of P40.04 per kilogram was realized.
Sharing 6 6
Borrowed 1 1
The usual practice in trading fatteners followed this channel: raiser to IRLA-
LLD-B-SMD to retailers or institutional buyers. Iloilo 24 4 3 1 4 36
Self-financed/owned 23 3 3 4 33
o Raisers’ selling price per kilogram of live hogs was P50.00. Their outlets Sharing 1 1
were the IRLA—LLDs who were at the same time butchers and meat Borrowed 1 1
distributors. No capital 1 1

o The IRLA-LLDs distributed hogs to buyers outside the province with Cebu 20 5 5 13 43
marketing cost of P4.43 at P56.00 per kilogram giving them a net profit of Self-financed/owned 18 5 5 11 39
P1.57 per kilogram liveweight. When they slaughtered the animals and Sharing 1 1
distributed the carcass to either retailers or institutional buyers, they spent Incorporation 1 1
Borrowed 2 2
P1.32 per kilogram but earned a bigger net of P11.13 per kilogram of
meat. Davao del Sur 12 6 1 2 21
Self-financed/owned 12 1 1 2 16
o On the other hand, when retailers sold meat at P95.00 per kilogram, they Borrowed 5 5
netted P23.89 at the cost of P2.11 per kilogram.
Davao City 1 4 1 2 8
Self-financed/owned 1 4 1 2 8
Metro Manila
TOTAL 87 25 22 3 58 280
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.
64 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 49

Appendix 1. SWINE: (Continued) Table 19. Marketing Costs for Sw ine, by Point of Destination, 2002

NUMBER OF RESPONDENT MARKETING COSTS (peso per kilogram )


PROVINCE/MUNICIPALITY TOTAL PROVINCE
Farmer/Raiser Trader Origin Destination Total

Cebu 20 23 43 Pangasinan
Barili 5 4 9 - supply areas to LOM 6.26 6.26
Carcar 1 1
- w ithin the province 6.26 2.53 8.79
Cebu City 4 5 9
- Ilocos Sur/ La Union 6.26 0.96 7.22
Bogo 3 3 6
Compostela 2 2 - Baguio City 6.26 2.34 8.60
Mandaue City 1 5 6
Lapu-Lapu City 1 1 2 Nueva Ecija
Liloan 1 1 - w ithin the province 13.38 13.38
Tuburan 2 2 - Bulacan/Metro Manila 11.39 11.39
Talisay 3 3
Danao City 2 2 Batangas
- supply areas to trading center 4.24 4.24
Davao del Sur 12 9 21 - w ithin the province
Bansalan 6 2 8
- Batangas City - 3.18 3.18
Hagonoy 3 3
- Bauan - 2.51 2.51
Sta. Maria 1 1 2
Sta. Cruz 2 1 3 - Lemery - 2.75 2.75
Padada 4 4 - Metro Manila 4.24 2.10 6.34
Digos 1 1
Iloilo
Davao City 1 7 8 - w ithin the province 3.88 3.88
Toril 1 1 - Metro Manila 3.88 4.72 8.60
Matina 1 1
Bangkerohan 3 3 Cebu
Davao 3 3
- supply areas to trading center 1.39
- w ithin the province 1.39 0.67 2.06
TOTAL 146 134 280
- 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
50 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 63

Table 20. SWINE: Marketing Costs and Margins by Marketing Channel, by province, 2002 Appendix 1. SWINE: Distribution of respondents, by type
and by province, Philippines, 2002
PRICES (P/kg) MARGINS (P/kg)
VOLUME TOTAL
PROVINCE/MARKETING VALUE OF BY- NUMBER OF RESPONDENT
TRADED MKTG. PROVINCE/MUNICIPALITY TOTAL
CHANNEL/PARTICIPANTS Buying Selling PRODUCTS1/ Gross 2/ Net 3/ Farmer/Raiser Trader
(kgs) COST

Metro Manila 38 38
M etro M anila Caloocan City 3 3
SOP - 61.00 - 61.00 Taguig 2 2
IRLA-SLD 352,113 61.00 75.00 0.09 14.00 13.91
Retailer
Quezon City 7 7
75.00 77.00* 10.75 2.74 12.75 10.01
Pasig City 6 6
SOP 55.00 55.00 Marikina City 5 5
IRLA-B-LMD 456,100 55.00 58.10* 10.75 4.34 13.85 9.51
Retailer Paranaque City 3 3
83.00 110.00 11.70 27.00 15.30
Muntinlupa City 5 5
Pangasinan Pasay City 4 4
Raisers 1,078 51.00 5.98 45.02
IRLA-LLD 118,560 51.00 60.00 7.21 9.00 1.79
Las Pinas 3 3
Retailers 124,098 60.00 73.50* 10.75 6.48 24.25 17.77
Pangasinan 30 11 41
Nueva Ecija Mangatarem 10 10
Raisers 1,723 65.00 0.59 64.41
PLA-B-SMD 27,900 65.00 66.50* 10.75 8.80 12.25 3.45 Malasiqui 10 10
Retailers 43,560 95.00 105.00 9.36 10.00 0.64 Villasis 10 10
Sta. Barbara 6 6
Batangas
Raisers 382,872 - 51.00 - 0.40 50.60 - Mangaldan 1 1
PLA-LLD 273,780 51.00 66.00 - 0.91 15.00 14.09 Dagupan City 4 4
Retailers (Metro Manila) 606,850 66.00 77.00* 10.75 1.47 21.75 20.28

Iloilo
Nueva Ecija 29 15 44
Raisers 16,088 - 42.25 8.68 33.57 Cabanatuan City 8 11 19
RLA-B-SMD 338,400 42.25 42.00* 10.75 0.99 10.50 9.51 San Leonardo 11 3 14
Retailers 277,800 60.00 90.00 1.68 30.00 28.32 Bongabon 1 1
Raisers 55,080 66.00 9.53 56.49 San Antonio 10 10
IRLA-B-SMD (Metro Manila) 66.00 61.60* 10.75 4.82 6.35 1.53
Retailers (Metro Manila) 88.00 110.00 3.80 22.00 18.20 Batangas 30 19 49
Cebu Lipa City 10 10
Raiser 661,019 - 56.00 0.59 55.41 Rosario 11 2 13
IRLA-SLD 1,231,875 56.00 65.00 0.43 9.00 8.57 Lemery 8 3 11
Stockyard/Slaughterhouse 65.00 83.00 - 18.00 18.00 Batangas City 1 8 9
Retailer 82,382 83.00 77.00* 10.75 2.09 4.75 2.66
Bauan 3 3
Davao del Sur/City Padre Garcia 3 3
Raisers 22,260 - 30.00 - 30.00
PLA-SLD 86,800 30.00 35.00 1.72 5.00 3.28
Iloilo 24 12 36
Retailers 14,560 35.00 66.50* 10.75 2.21 42.25 40.04
Janiuay 8 2 10
Raisers 196,677 50.00 - 50.00 Leon 8 1 9
IRLA-LLD 1,105,720 50.00 56.00 4.43 6.00 1.57
Guimbal 8 2 10
B-SMD 880,880 50.00 48.30* 10.75 1.32 12.45 11.13
Retailers 42,840 69.00 95.00 2.11 26.00 23.89 Iloilo City - 7 7

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
Marketing Costs Structure for Swine 51

CONSUMER

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
RETAILER
Gross Margin = P24.75
Net Margin = P17.77

SLAUGHTERHOUSE

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
IRLA-LLD 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 RAISER/


Gross Margin = P45.02 OPERATOR

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


Pangasinan, 2002
52 Marketing Costs Structure for Swine

CONSUMER

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

Buying Price = P95.00 RETAILER


Selling Price = P105.00
Gross Margin = P10.00
Net Margin = P0.64 Labor = 2.64
Transp. = 0.28
Materials = 0.43
Imputed = 0.166
Others = 5.281
Total = 8.797

Buying Price = P65.00


Selling Price = P66.50
PLA-B-SMD By-Products = P10.75
Gross Margin = P12.25
Net Margin = P3.45

Others = 0.547
Imputed = 0.047
Total = 0.594

Selling Price = P65.00


Gross Margin = P64.41

RAISER/
OPERATOR

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


Nueva Ecija, 2002
60 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 53

IV. Problems Encountered


CONSUMER
The problems encountered by the farmers and trader-respondents in relation to Labor costs = P1.18;
swine marketing are the following: Materials costs = P0.12; Total Cost = P1.47
Others = P0.14;
Imputed costs = P0.03
1. No buyers due to virus or foot and mouth disease (FMD);
Buying Price = P66.00
Selling Price = P77.00
2. Non-payment of debts or payments with bouncing checks; By-Products = P10.7
Gross Margin = P21.7
3. Low price or price fluctuation; Net Margin = P20.28

(BOP)
4. Mortality of animals due to stress during shipment, and low recovery rate; RETAILER
Transport costs = P0.73;
5. Lower value of sales when supply of fresh fish is abundant; Labor costs = P0.05;
Total Cost = P0.91
Others = P0.13
6. Hard to dispose due to the entry of imported hogs;

7. Lack of capital; Buying Price = P51.00


Selling Price = P66.00
Gross Margin = P15.00
8. Inaccurate weighing scale; sometimes animals bought are not weighed; and Net Margin = P14.09

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

Transport costs = P0.13; Total Cost = P0.40


Others = P0.27

Selling Price = P51.00


Gross Margin = P50.60

RAISER

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


Batangas, 2002
54 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 59

CONSUMER

Buying Price = P83.00


Selling Price = P110.00
CONSUMER Total Cost = P11.70
Labor: 1.47
Labor = P0.538 Others: 1.18 Gross Margin = P27.00
Imputed = 0.068; Imputed: 0.09 Net Margin = P15.30
Total Cost = P0.815
Materials= 0.061; Total 2.74
Others = 1.016
IB/RETAILER
Buying Price = P60.00 Labor: 2.67
Selling Price = P90.00 RETAILER Buying Price = P75.00 Others: 6.49
Gross Margin = P30.00 Selling Price = P77.00 Imputed: 2.22
Net Margin = P28.32 Total Cost = P2.74 Total 11.70
By-Products = P10.75
Gross Margin = P12.75
Net Margin = P10.01
Post mortem fee = 0.10; Buying Price = P55.00
Gas = P0.114; Selling Price = P58.10
Meals = P0.095 OOC = 0.035 Total Cost = P4.34
SLAUGHTERHOUSE SLAUGHTERHOUSE
Imputed = 0.05 By-Products = P10.75
Total = 0.085 Gross Margin = P27.00
Permit to slaughter = 0.081;
Net Margin = P25.93
Slaughter fee = P0.30;
Corral fee = P0.022 Total Cost = P0.992 Labor: 1.51
Buying Price = P61.00 Others: 2.53
Handling costs = P0.071; Selling Price = P75.00 Imputed: 0.17
Gas = P0.114; Total Cost = P0.09 Mat.: 0.13
Meals = P0.095 Gross Margin = P14.00 Total 4 34
Net Margin = P13.91
IRLA-B-SLD
Buying Price = P42.25 RLA-B-SMD
Selling Price = P42.00 IRLA-SLD
By-Products = P10.75 IRLA-B-LMD
Gross Margin = P10.50
Net Margin = P9.51 Selling Price = P61.00

SOP

Labor = 2.449; Legend:


Transp = 1.04;
Materials = 0.997; Total Cost = P8.683 RAISERS - live
Others = 2.793 Selling Price = P55.00
Imputed = 1.404
- meat
Selling Price = P42.25
Gross Margin = P33.57

Figure 25. Marketing Costs and Margins by Channel for Swine, Figure 30. Marketing Costs and Margins by Channel for Swine,
Iloilo, 2002 Metro Manila, 2002
58 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 55

Gasoline = 0.168
Labor costs = 0.556
Materials = 0.13
Operating costs = 1.511
Imputed costs = 0.228
IRLA-B-LMD
Labor cost = P0.48
TOTAL = P 2.59/kg
Transportation = P0.31 CONSUMER
Other Oparating Cost = P0.82
Imputed cost = P0.07 Buying Price = P66.00
Total Cost = P2.11 Selling Price = P61.60
By-Products = P10.75
Buying Price = P69.00 Total Cost = P 4.82
Selling Price = P95.00 Gross Margin = P6.35
Gasoline = 0.168
Total Cost = P2.11 Net Margin = P1.53
Labor costs = 2.06
Gross Margin = P26.00 TOTAL = P 2.23/kg
Net Margin = P23.89

IB/RETAILER Buying Price = P50.00


Selling Price = P56.00
Total Cost = P4.43
Gross Margin = P6.00
Net Margin = P1.57
RETAILER
Shipping costs = 3.768
Materials = 0.949
Labor costs = 1.87 TOTAL = P 4.72/kg
Transportation = P0.34 BOP Operating costs = 1.28
Other Operating Cost = P0.98 Imputed costs = 0.60
Total Cost = P 1.32 TOTAL = P 3.801/kg
Shipping Cost = P3.46
Transportation cost = P0.27 Buying Price = P88.00
Buying Price = P50.00 Labor Cost = P0.25 Selling Price = P110.00 Selling Price = P66.00
Selling Price = P48.30 Total Cost = P3.98 Gross Margin = P22.00 Total Cost = P9.53 Labor costs = 0.316
By-Products = P10.75 Net Margin = P18.20 Gross Margin = P56.47 Transportation = 1.012
Total Cost = P1.32 Operating costs = 2.449
Gross Margin = P12.45
IRLA-LLD-B-SMD
Imputed costs = 1.033
Net Margin = P11.13 TOTAL = P 4.81/kg
Transportation = P0.20 CONSUMERS
Labor cost on Procurement = P0.25
Total Cost = P0.45

RAISERS

RAISER

Figure 29. Marketing Costs and Margins by Channel for Swine, Figure 26. Marketing Costs and Margins for Commercial Hog Farm,
Davao, 2002 Iloilo, 2002
56 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 57

CONSUMER Entrance fee = P0.11


Slaughter’s fee = P0.31
Post mortem fee = P0.14
Stockyard fee =P0.04 Total Cost =P2.09
Labor costs = P1.02
CONSUMER
Labor Cost = 0.53
Material used = P0.37
Transportation Cost = 0.08 Buying Price = P35.0
Other operating =P0.10
Material Inputs = 0.43 Selling Price = P6.50
Other Operating Cost = 1.09 By-Products = P10.75
RETAILER Imputed Costs = 0.08
Buying Price = P83.00 Total Cost = P2.21
Total P = 2.21 Gross Margin = P42.25
Selling Price = P77.00
By-Products = P10.75 Net Margin = P40.04
Gross Margin = P4.75 IB/RETAILER
Net Margin = P2.66

STOCKYARD
Buying Price = P65.00
Selling Price = P83.00
Gross Margin = P18.00
Net Margin = P18.00
Buying Price = P30.00
SLAUGHTERHOUSE Selling Price = P35.00
Total Cost = P1.72
Labor cost = P0.12 Gross Margin = P 5.00
Total Cost =0.43 Net Margin = P3.28
Transport cost = P0.31
Transportation Cost = 0.08
Buying Price = P56.00 Other Operating Exps. = 0.79
Selling Price = P65.00 Imputed Costs = 0.29
Total Cost = P0.43 = 1.16
Gross Margin = P9.00 Total P = 1.72/kg
Net Margin = P8.57
Labor Cost = 0.53
RLA-B-SMD Transportation Cost = 0.08
Material Inputs = 0.43
PLA-SLD
Transport costs = P0.32 Total P = 2.21
Labor costs = P0.21 Total Cost =0.59
Others = P0.06

Selling Price = P56.00


Gross Margin = P55.41
Selling Price = P30.00 RAISER
RAISERS

Figure 27. Marketing Costs and Margins by Channel for Swine, Figure 28. Marketing Costs and Margins by Channel for Swine,
Cebu, 2002 Davao, 2002
56 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 57

CONSUMER Entrance fee = P0.11


Slaughter’s fee = P0.31
Post mortem fee = P0.14
Stockyard fee =P0.04 Total Cost =P2.09
Labor costs = P1.02
CONSUMER
Labor Cost = 0.53
Material used = P0.37
Transportation Cost = 0.08 Buying Price = P35.0
Other operating =P0.10
Material Inputs = 0.43 Selling Price = P6.50
Other Operating Cost = 1.09 By-Products = P10.75
RETAILER Imputed Costs = 0.08
Buying Price = P83.00 Total Cost = P2.21
Total P = 2.21 Gross Margin = P42.25
Selling Price = P77.00
By-Products = P10.75 Net Margin = P40.04
Gross Margin = P4.75 IB/RETAILER
Net Margin = P2.66

STOCKYARD
Buying Price = P65.00
Selling Price = P83.00
Gross Margin = P18.00
Net Margin = P18.00
Buying Price = P30.00
SLAUGHTERHOUSE Selling Price = P35.00
Total Cost = P1.72
Labor cost = P0.12 Gross Margin = P 5.00
Total Cost =0.43 Net Margin = P3.28
Transport cost = P0.31
Transportation Cost = 0.08
Buying Price = P56.00 Other Operating Exps. = 0.79
Selling Price = P65.00 Imputed Costs = 0.29
Total Cost = P0.43 = 1.16
Gross Margin = P9.00 Total P = 1.72/kg
Net Margin = P8.57
Labor Cost = 0.53
RLA-B-SMD Transportation Cost = 0.08
Material Inputs = 0.43
PLA-SLD
Transport costs = P0.32 Total P = 2.21
Labor costs = P0.21 Total Cost =0.59
Others = P0.06

Selling Price = P56.00


Gross Margin = P55.41
Selling Price = P30.00 RAISER
RAISERS

Figure 27. Marketing Costs and Margins by Channel for Swine, Figure 28. Marketing Costs and Margins by Channel for Swine,
Cebu, 2002 Davao, 2002
58 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 55

Gasoline = 0.168
Labor costs = 0.556
Materials = 0.13
Operating costs = 1.511
Imputed costs = 0.228
IRLA-B-LMD
Labor cost = P0.48
TOTAL = P 2.59/kg
Transportation = P0.31 CONSUMER
Other Oparating Cost = P0.82
Imputed cost = P0.07 Buying Price = P66.00
Total Cost = P2.11 Selling Price = P61.60
By-Products = P10.75
Buying Price = P69.00 Total Cost = P 4.82
Selling Price = P95.00 Gross Margin = P6.35
Gasoline = 0.168
Total Cost = P2.11 Net Margin = P1.53
Labor costs = 2.06
Gross Margin = P26.00 TOTAL = P 2.23/kg
Net Margin = P23.89

IB/RETAILER Buying Price = P50.00


Selling Price = P56.00
Total Cost = P4.43
Gross Margin = P6.00
Net Margin = P1.57
RETAILER
Shipping costs = 3.768
Materials = 0.949
Labor costs = 1.87 TOTAL = P 4.72/kg
Transportation = P0.34 BOP Operating costs = 1.28
Other Operating Cost = P0.98 Imputed costs = 0.60
Total Cost = P 1.32 TOTAL = P 3.801/kg
Shipping Cost = P3.46
Transportation cost = P0.27 Buying Price = P88.00
Buying Price = P50.00 Labor Cost = P0.25 Selling Price = P110.00 Selling Price = P66.00
Selling Price = P48.30 Total Cost = P3.98 Gross Margin = P22.00 Total Cost = P9.53 Labor costs = 0.316
By-Products = P10.75 Net Margin = P18.20 Gross Margin = P56.47 Transportation = 1.012
Total Cost = P1.32 Operating costs = 2.449
Gross Margin = P12.45
IRLA-LLD-B-SMD
Imputed costs = 1.033
Net Margin = P11.13 TOTAL = P 4.81/kg
Transportation = P0.20 CONSUMERS
Labor cost on Procurement = P0.25
Total Cost = P0.45

RAISERS

RAISER

Figure 29. Marketing Costs and Margins by Channel for Swine, Figure 26. Marketing Costs and Margins for Commercial Hog Farm,
Davao, 2002 Iloilo, 2002
54 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 59

CONSUMER

Buying Price = P83.00


Selling Price = P110.00
CONSUMER Total Cost = P11.70
Labor: 1.47
Labor = P0.538 Others: 1.18 Gross Margin = P27.00
Imputed = 0.068; Imputed: 0.09 Net Margin = P15.30
Total Cost = P0.815
Materials= 0.061; Total 2.74
Others = 1.016
IB/RETAILER
Buying Price = P60.00 Labor: 2.67
Selling Price = P90.00 RETAILER Buying Price = P75.00 Others: 6.49
Gross Margin = P30.00 Selling Price = P77.00 Imputed: 2.22
Net Margin = P28.32 Total Cost = P2.74 Total 11.70
By-Products = P10.75
Gross Margin = P12.75
Net Margin = P10.01
Post mortem fee = 0.10; Buying Price = P55.00
Gas = P0.114; Selling Price = P58.10
Meals = P0.095 OOC = 0.035 Total Cost = P4.34
SLAUGHTERHOUSE SLAUGHTERHOUSE
Imputed = 0.05 By-Products = P10.75
Total = 0.085 Gross Margin = P27.00
Permit to slaughter = 0.081;
Net Margin = P25.93
Slaughter fee = P0.30;
Corral fee = P0.022 Total Cost = P0.992 Labor: 1.51
Buying Price = P61.00 Others: 2.53
Handling costs = P0.071; Selling Price = P75.00 Imputed: 0.17
Gas = P0.114; Total Cost = P0.09 Mat.: 0.13
Meals = P0.095 Gross Margin = P14.00 Total 4 34
Net Margin = P13.91
IRLA-B-SLD
Buying Price = P42.25 RLA-B-SMD
Selling Price = P42.00 IRLA-SLD
By-Products = P10.75 IRLA-B-LMD
Gross Margin = P10.50
Net Margin = P9.51 Selling Price = P61.00

SOP

Labor = 2.449; Legend:


Transp = 1.04;
Materials = 0.997; Total Cost = P8.683 RAISERS - live
Others = 2.793 Selling Price = P55.00
Imputed = 1.404
- meat
Selling Price = P42.25
Gross Margin = P33.57

Figure 25. Marketing Costs and Margins by Channel for Swine, Figure 30. Marketing Costs and Margins by Channel for Swine,
Iloilo, 2002 Metro Manila, 2002
60 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 53

IV. Problems Encountered


CONSUMER
The problems encountered by the farmers and trader-respondents in relation to Labor costs = P1.18;
swine marketing are the following: Materials costs = P0.12; Total Cost = P1.47
Others = P0.14;
Imputed costs = P0.03
1. No buyers due to virus or foot and mouth disease (FMD);
Buying Price = P66.00
Selling Price = P77.00
2. Non-payment of debts or payments with bouncing checks; By-Products = P10.7
Gross Margin = P21.7
3. Low price or price fluctuation; Net Margin = P20.28

(BOP)
4. Mortality of animals due to stress during shipment, and low recovery rate; RETAILER
Transport costs = P0.73;
5. Lower value of sales when supply of fresh fish is abundant; Labor costs = P0.05;
Total Cost = P0.91
Others = P0.13
6. Hard to dispose due to the entry of imported hogs;

7. Lack of capital; Buying Price = P51.00


Selling Price = P66.00
Gross Margin = P15.00
8. Inaccurate weighing scale; sometimes animals bought are not weighed; and Net Margin = P14.09

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

Transport costs = P0.13; Total Cost = P0.40


Others = P0.27

Selling Price = P51.00


Gross Margin = P50.60

RAISER

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


Batangas, 2002
52 Marketing Costs Structure for Swine

CONSUMER

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

Buying Price = P95.00 RETAILER


Selling Price = P105.00
Gross Margin = P10.00
Net Margin = P0.64 Labor = 2.64
Transp. = 0.28
Materials = 0.43
Imputed = 0.166
Others = 5.281
Total = 8.797

Buying Price = P65.00


Selling Price = P66.50
PLA-B-SMD By-Products = P10.75
Gross Margin = P12.25
Net Margin = P3.45

Others = 0.547
Imputed = 0.047
Total = 0.594

Selling Price = P65.00


Gross Margin = P64.41

RAISER/
OPERATOR

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


Nueva Ecija, 2002
50 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 62

Table 20. SWINE: Marketing Costs and Margins by Marketing Channel, by province, 2002 Appendix 1. SWINE: Distribution of respondents, by type
and by province, Philippines, 2002
PRICES (P/kg) MARGINS (P/kg)
VOLUME TOTAL
PROVINCE/MARKETING VALUE OF BY- NUMBER OF RESPONDENT
TRADED MKTG. PROVINCE/MUNICIPALITY TOTAL
CHANNEL/PARTICIPANTS Buying Selling PRODUCTS1/ Gross 2/ Net 3/ Farmer/Raiser Trader
(kgs) COST

Metro Manila 38 38
M etro M anila Caloocan City 3 3
SOP - 61.00 - 61.00 Taguig 2 2
IRLA-SLD 352,113 61.00 75.00 0.09 14.00 13.91
Retailer
Quezon City 7 7
75.00 77.00* 10.75 2.74 12.75 10.01
Pasig City 6 6
SOP 55.00 55.00 Marikina City 5 5
IRLA-B-LMD 456,100 55.00 58.10* 10.75 4.34 13.85 9.51
Retailer Paranaque City 3 3
83.00 110.00 11.70 27.00 15.30
Muntinlupa City 5 5
Pangasinan Pasay City 4 4
Raisers 1,078 51.00 5.98 45.02
IRLA-LLD 118,560 51.00 60.00 7.21 9.00 1.79
Las Pinas 3 3
Retailers 124,098 60.00 73.50* 10.75 6.48 24.25 17.77
Pangasinan 30 11 41
Nueva Ecija Mangatarem 10 10
Raisers 1,723 65.00 0.59 64.41
PLA-B-SMD 27,900 65.00 66.50* 10.75 8.80 12.25 3.45 Malasiqui 10 10
Retailers 43,560 95.00 105.00 9.36 10.00 0.64 Villasis 10 10
Sta. Barbara 6 6
Batangas
Raisers 382,872 - 51.00 - 0.40 50.60 - Mangaldan 1 1
PLA-LLD 273,780 51.00 66.00 - 0.91 15.00 14.09 Dagupan City 4 4
Retailers (Metro Manila) 606,850 66.00 77.00* 10.75 1.47 21.75 20.28

Iloilo
Nueva Ecija 29 15 44
Raisers 16,088 - 42.25 8.68 33.57 Cabanatuan City 8 11 19
RLA-B-SMD 338,400 42.25 42.00* 10.75 0.99 10.50 9.51 San Leonardo 11 3 14
Retailers 277,800 60.00 90.00 1.68 30.00 28.32 Bongabon 1 1
Raisers 55,080 66.00 9.53 56.49 San Antonio 10 10
IRLA-B-SMD (Metro Manila) 66.00 61.60* 10.75 4.82 6.35 1.53
Retailers (Metro Manila) 88.00 110.00 3.80 22.00 18.20 Batangas 30 19 49
Cebu Lipa City 10 10
Raiser 661,019 - 56.00 0.59 55.41 Rosario 11 2 13
IRLA-SLD 1,231,875 56.00 65.00 0.43 9.00 8.57 Lemery 8 3 11
Stockyard/Slaughterhouse 65.00 83.00 - 18.00 18.00 Batangas City 1 8 9
Retailer 82,382 83.00 77.00* 10.75 2.09 4.75 2.66
Bauan 3 3
Davao del Sur/City Padre Garcia 3 3
Raisers 22,260 - 30.00 - 30.00
PLA-SLD 86,800 30.00 35.00 1.72 5.00 3.28
Iloilo 24 12 36
Retailers 14,560 35.00 66.50* 10.75 2.21 42.25 40.04
Janiuay 8 2 10
Raisers 196,677 50.00 - 50.00 Leon 8 1 9
IRLA-LLD 1,105,720 50.00 56.00 4.43 6.00 1.57
Guimbal 8 2 10
B-SMD 880,880 50.00 48.30* 10.75 1.32 12.45 11.13
Retailers 42,840 69.00 95.00 2.11 26.00 23.89 Iloilo City - 7 7

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
63 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 49

Appendix 1. SWINE: (Continued) Table 19. Marketing Costs for Sw ine, by Point of Destination, 2002

NUMBER OF RESPONDENT MARKETING COSTS (peso per kilogram )


PROVINCE/MUNICIPALITY TOTAL PROVINCE
Farmer/Raiser Trader Origin Destination Total

Cebu 20 23 43 Pangasinan
Barili 5 4 9 - supply areas to LOM 6.26 6.26
Carcar 1 1
- w ithin the province 6.26 2.53 8.79
Cebu City 4 5 9
- Ilocos Sur/ La Union 6.26 0.96 7.22
Bogo 3 3 6
Compostela 2 2 - Baguio City 6.26 2.34 8.60
Mandaue City 1 5 6
Lapu-Lapu City 1 1 2 Nueva Ecija
Liloan 1 1 - w ithin the province 13.38 13.38
Tuburan 2 2 - Bulacan/Metro Manila 11.39 11.39
Talisay 3 3
Danao City 2 2 Batangas
- supply areas to trading center 4.24 4.24
Davao del Sur 12 9 21 - w ithin the province
Bansalan 6 2 8
- Batangas City - 3.18 3.18
Hagonoy 3 3
- Bauan - 2.51 2.51
Sta. Maria 1 1 2
Sta. Cruz 2 1 3 - Lemery - 2.75 2.75
Padada 4 4 - Metro Manila 4.24 2.10 6.34
Digos 1 1
Iloilo
Davao City 1 7 8 - w ithin the province 3.88 3.88
Toril 1 1 - Metro Manila 3.88 4.72 8.60
Matina 1 1
Bangkerohan 3 3 Cebu
Davao 3 3
- supply areas to trading center 1.39
- w ithin the province 1.39 0.67 2.06
TOTAL 146 134 280
- 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
48 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 64

Appendix 2. SWINE: Distribution of respondents by nature of capitalization,


The retailers sourced their stocks from the slaughterhouse. Aside from the by type of marketing participants, by province, Philippines, 2002
buying price of P83.00 for every kilogram of the carcass, they also paid for the
costs of slaughtering and other expenses at P2.09 per kilogram. Their net profit
LIVESTOCK
was P2.66 per kilogram. PROVINCE/NATURE OF RAISER/
LIVESTOCK
ASSEMBLER-
ASSEMBLER- AGENT RETAILER TOTAL
CAPITALIZATION OPERATOR BUTCHER- MEAT
Davao del Sur / Davao City DISTRIBUTOR
DISTRIBUTOR

Figure 28 describes the channels in marketing culled hogs weighing an


Metro Manila 1 10 27 38
average of 200 kilograms per head, i.e. from raisers to PLA-SLD to institutional
Self-financed/owned 1 10 25 36
buyer or retailers. Borrowed 2 2

o Since PLA-SLD themselves picked-up the hogs they brought from the Pangasinan 30 5 6 41
raisers, they also paid a lower price of P30.00 per kilogram. Self-financed/owned 30 4 6 40
Borrowed 1 1
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 Nueva Ecija 29 2 8 3 2 44
cost of P1.72 per kilogram liveweight. Self-financed/owned 29 2 7 3 2 43
Borrowed 1 1
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 Batangas 30 5 2 12 49
Self-financed/owned 23 5 2 12 42
gross margin of P42.25, net margin of P40.04 per kilogram was realized.
Sharing 6 6
Borrowed 1 1
The usual practice in trading fatteners followed this channel: raiser to IRLA-
LLD-B-SMD to retailers or institutional buyers. Iloilo 24 4 3 1 4 36
Self-financed/owned 23 3 3 4 33
o Raisers’ selling price per kilogram of live hogs was P50.00. Their outlets Sharing 1 1
were the IRLA—LLDs who were at the same time butchers and meat Borrowed 1 1
distributors. No capital 1 1

o The IRLA-LLDs distributed hogs to buyers outside the province with Cebu 20 5 5 13 43
marketing cost of P4.43 at P56.00 per kilogram giving them a net profit of Self-financed/owned 18 5 5 11 39
P1.57 per kilogram liveweight. When they slaughtered the animals and Sharing 1 1
distributed the carcass to either retailers or institutional buyers, they spent Incorporation 1 1
Borrowed 2 2
P1.32 per kilogram but earned a bigger net of P11.13 per kilogram of
meat. Davao del Sur 12 6 1 2 21
Self-financed/owned 12 1 1 2 16
o On the other hand, when retailers sold meat at P95.00 per kilogram, they Borrowed 5 5
netted P23.89 at the cost of P2.11 per kilogram.
Davao City 1 4 1 2 8
Self-financed/owned 1 4 1 2 8
Metro Manila
TOTAL 87 25 22 3 58 280
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.
65 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 47

Appendix 3. SWINE: Distribution of respondents by type of marketing participants,


The retailers took charge of the expenses from procuring live
by type of business ownership, by province, Philippines, 2002
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.
LIVESTOCK
LIVESTOCK
PROVINCE/TYPE OF RAISER/ ASSEMBLER- Iloilo
ASSEMBLER- AGENT RETAILER TOTAL
BUSINESS OWNERSHIP OPERATOR BUTCHER- MEAT
DISTRIBUTOR
DISTRIBUTOR Figure 25 shows the usual channel practiced in the province, i.e. from the
raisers to the RLA-B-SMD to slaughterhouse to retailers.

Metro Manila 1 10 27 38 o From the farm to the “oksyon” market, at a selling price of P42.25 and total
Single proprietorship 1 9 26 36
marketing cost of P8.68 per kilogram, raisers grossed P33.57.
Partnership 1 1 2

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


Pangasinan 30 5 6 41
the slaughterhouse; and from the slaughterhouse to the wet markets. At
Single proprietorship 28 5 6 39
Partnership 2 2
P60.00 (dressweight) or P42.00 (liveweight) and P10.75 per kilogram of by-
products, the traders earned a net profit of P9.51 after deducting total
Nueva Ecija 29 2 8 3 2 44 expenses of P0.99 per kilogram.
Single proprietorship 28 2 8 3 2 43
Partnership 1 1 o The retailers sold pork at P90.00 but spent P1.68 per kilogram. This gave
them a profit of P28.32 per kilogram.
Batangas 30 5 2 12 49
Single proprietorship 28 5 2 12 47
Partnership 2 2 Commercial raisers in Iloilo usually distribute their stocks directly in Metro
Manila. They shouldered the cost of shipping the animals from the farm to the
Iloilo 24 4 3 1 4 36 pier in Manila (Figure 26).
Single proprietorship 22 2 3 1 3 31
Partnership 1 2 1 4 o Bringing swine to Manila entailed a total cost of P9.53 per kilogram
Corporation 1 1 including shipping. At a selling price of P66.00 per kilogram liveweight,
Others raisers earned a gross of P56.47.
Cebu 20 5 5 13 43 o IRLA-B-SMD picked-up the animals from the pier and brought them directly
Single proprietorship 18 5 4 13 40 to the slaughterhouse. They sold meat to the retailers at P88.00
Partnership 1 1 (dressweight) or P61.60 (liveweight). After deducting the total cost of
Corporation 2 2 P4.82, they gained P1.53 for every kilogram of meat.
Davao del Sur 12 6 1 2 21 o At a selling price of P110.00 and expenses of P3.80 per kilogram, retailers’
Single proprietorship 12 6 1 2 21
net earning was P18.20 per kilogram.
Davao City 1 4 1 2 8
Single proprietorship 1 4 1 2 8
Cebu

Raisers sold their stock at P56.00 but spent P0.59 per kilogram in selling live
TOTAL 87 25 22 3 58 280 hogs 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 per
kilogram liveweight.
46 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 66

Appendix 4. SWINE: Distribution of respondents, by type of marketing participants,


Product transformation occurs during the marketing process. An example is swine, by length of experience, by province, Philippines, 2002
where one kilogram liveweight sold by the farmer does not result in one kilogram of meat
being sold to consumers. In this case, there is a need to consider the recovery rate and the
LIVESTOCK
value of the by-products in the estimation of the marketing margins. PROVINCE/LENGTH RAISER/
LIVESTOCK
ASSEMBLER-
ASSEMBLER- AGENT RETAILER TOTAL
OF EXPERIENCE OPERATOR BUTCHER- MEAT
The gross and net marketing margins for swine are presented in Table 20 and DISTRIBUTOR
DISTRIBUTOR
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. Metro Manila 1 10 27 38
less than 5 3 3
Pangasinan 5 - 10 1 5 12 18
11 - 15 3 2 5
16 - 20 2 4 6
The raiser who sold his stock at P51.00 to an IRLA-LLD spent an average of more than 20 6 6
P5.98 per kilogram liveweight. Pangasinan 30 5 6 41
less than 5 6 3 9
The IRLA-LLD brought the animals to the slaughterhouse with total charges of 5 - 10 10 3 1 14
11 - 15 8 1 9
P7.21 per kilogram including gasoline and meals. At the selling price of 16 - 20 3 1 4
P60.00, he netted P1.79 per kilogram. more than 20 3 1 1 5
Nueva Ecija 29 2 8 3 2 44
The retailers who sourced their supply from the slaughterhouse paid for the less than 5 7 4 1 12
5 - 10 12 1 1 1 1 16
services of the butcher and other fees in the slaughterhouse. They incurred a 11 - 15 1 1 1 1 4
total cost of P6.48 per kilogram of meat. They sold pork at P105.00 (or P73.50 16 - 20 5 2 1 8
per kilogram liveweight) and by products at P10.75 giving them a net margin of more than 20 4 4
Batangas 30 5 2 12 49
P17.77 per kilogram. less than 5 6 1 1 8
5 - 10 8 6 14
Nueva Ecija 11 - 15 5 1 2 8
16 - 20 1 1 2
The raiser sold hogs directly to a provincial assembler-butcher-meat distributor more than 20 11 3 1 2 17
Iloilo 24 4 3 1 4 36
(PLA-B-SMD). His expenses in marketing included other operating and less than 5 6 1 7
imputed costs that added up to P0.59 per kilogram. 5 - 10 7 1 3 11
11 - 15 1 1 2
This assembler-distributor picked-up the hogs from the farm, took charge of 16 - 20 5 2 7
more than 20 5 1 2 1 9
slaughtering the animals and distributed the carcasses to the retailers. His total Cebu 20 5 5 13 43
cost was P8.80 per kilogram. At P66.50 per kilogram liveweight of meat and less than 5 7 1 1 9
P10.75 value of by-products, PLA-B-SMD earned a net margin of P3.45 per 5 - 10 5 3 3 6 17
11 - 15 2 1 3
kilogram. 16 - 20 1 3 4
more than 20 6 1 1 2 10
Retailers had a total expenditure of P9.36 per kilogram in buying and selling Davao del Sur 12 6 1 2 21
pork and the biggest cost items were labor at P5.07 and other operating cost at less than 5 5 3 1 9
5 - 10 5 3 1 9
P2.97. Buying the stocks at P95.00 and selling them at P105.00 per kilogram, 11 - 15
yielded a profit of P.64 per kilogram to these retailers. 16 - 20 1 1
more than 20 2 2
Batangas Davao City 1 4 1 2 8
less than 5 1 1 2
5 - 10 1 1
The raisers earned a gross margin of P50.60 in selling live hogs to PLA-LLD at 11 - 15 1 1
P51.00 and spent a total cost P0.40 per kilogram. 16 - 20 1 1
more than 20 1 1 1 3
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 TOTAL 87 25 22 3 58 280
liveweight.
67 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 45

Appendix 5. SWINE: Distribution of respondents, by type of marketing participants, Iloilo


by percentage share to total business, by province, Philippines, 2002
Traders spent P3.88 per kilogram when distributing swine within Iloilo.

PERCENTAGE LIVESTOCK
LIVESTOCK Shipping cost for bringing animals to Metro Manila was P8.60 per kilogram.
RAISER/ ASSEMBLER-
SHARE TO TOTAL ASSEMBLER- AGENT RETAILER TOTAL
OPERATOR BUTCHER- MEAT
BUSINESS DISTRIBUTOR
DISTRIBUTOR
Cebu

In procuring animals from the areas outside Cebu, traders incurred an average
Metro Manila 1 10 27 38 cost of P3.37 (from Bohol) and P2.84 per kilogram (from General Santos City).
1 - 20
21 - 40 If the stocks came from the different barangays within the province, the cost of
41 - 60 1 1 bringing the animals to the Livestock Oksyon Market (LOM) was P1.39 per
61 - 80 2 2 kilogram.
81 - 100 1 9 25 35
Pangasinan 30 5 6 41
1 - 20 1 1 From the LOM to the different trading centers or markets within Cebu province,
21 - 40 2 2 traders spent P2.06 per kilogram and P2.70 per kilogram from Cebu to Manila
41 - 60 1 1
61 - 80
including the cost of shipping.
81 - 100 26 5 6 37
Nueva Ecija 29 3 7 3 2 44 Davao del Sur
1 - 20
21 - 40 1 1
41 - 60 2 2 The cost of procuring live hogs from the different supply barangays in Davao
61 - 80 2 1 1 1 5 and bringing them to the market was P0.50 per kilogram. When distributed to
81 - 100 24 2 6 3 1 36
Batangas 30 5 2 12 49
the various markets within the province, an average cost of P2.32 per kilogram
1 - 20 8 1 9 was added to the expenses of the traders.
21 - 40 1 1
41 - 60 1 1
61 - 80 1 1
The average cost of shipping the animals to Metro Manila was estimated at
81 - 100 21 5 2 9 37 P3.95 per kilogram.
Iloilo 24 4 3 1 4 36
1 - 20
21 - 40 3 1 4 Marketing Costs and Margins by Channel
41 - 60 2 2 1 5
61 - 80 7 7
81 - 100 12 2 1 1 4 20 The marketing margin is the difference between the value of a product at one stage
Cebu 20 5 5 13 43
1 - 20 4 4
and the value of an equivalent product at another stage in the marketing process.
21 - 40 3 1 4 The initial step in measuring the marketing margin is to describe the structure of the
41 - 60 2 1 1 3 7 marketing chain, starting at the farm gate and tracing the product through the various
61 - 80 3 1 4
81 - 100 8 2 4 10 24
intermediaries until it reaches the final consumer. Second, is to identify and list the various
Davao del Sur 12 6 1 2 21 functions that are performed at each stage in the marketing process.
1 - 20
21 - 40 1 1
41 - 60 2 1 3 The estimation of marketing margin needs price data at which the product is bought
61 - 80 and sold at each stage in the marketing process. On the part of traders, buying price can
81 - 100 12 4 1 17 be considered an expense. They have to pay for the commodity as the initial investment at
Davao City 1 4 1 2 8
1 - 20 prices agreed by both parties, the farmer and the trader.
21 - 40
41 - 60 1 1 For products that remain essentially unchanged during the marketing process, the
61 - 80
81 - 100 1 3 1 2 7 gross margin, which still includes the cost of trading and the risks, is the difference between
the price per unit of that product at the farmgate and the retail price per unit when sold to the
TOTAL 87 25 22 3 58 280 final consumers. The net margin, or the net return, therefore, is the remainder when the total
marketing costs were subtracted from the total gross margin.
44 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 68

Appendix 6. SWINE:Distribution of respondents, by type of traders,


Davao to Manila
– P3.954 by manner of procurement, by province, Philippines, 2002

LIVESTOCK
LIVESTOCK
PROVINCE/ MANNER ASSEMBLER-
ASSEMBLER- AGENT RETAILER TOTAL
OF PROCUREMENT BUTCHER-MEAT
METRO MANILA DISTRIBUTOR
DISTRIBUTOR

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

From Pangasinan 5 6 11
barangay to Picked- up 5 6 11
market =
P0.501
Within in the
province – P2.32
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
General Santos to
Delivered 3 3
Davao = P0.91
Davao Both 1 1

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

General Davao Sur 6 1 2 9


Santos 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
Figure 21. Total Marketing Costs for Swine, by Point of Destination,
Davao, 2002
69 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 43

Appendix 7. SWINE:Distribution of respondents, by type of traders,


by mode of payment in buying stocks, by province, Philippines, 2002 Cebu to Manila –
P2.704

LIVESTOCK
LIVESTOCK
PROVINCE/MODE OF ASSEMBLER-
ASSEMBLER- AGENT RETAILER TOTAL
PAYMENT BUTCHER-MEAT
DISTRIBUTOR METRO MANILA
DISTRIBUTOR From barangay to
market = P1.394

Metro Manila 1 10 27 38
Cash 2 12 14
Consignment 2 4 6
Combination 1 6 11 18
Bohol to Cebu
Pangasinan 5 6 11 = 3.37
Cash 4 3 7
Within in the
Delayed Payment 1 1
province – P2.064
Combination 1 2 3

Nueva Ecija 2 8 3 2 15 Cebu


Cash 2 7 3 2 14
Delayed Payment 1 1
Bohol
Batangas 5 2 12 19
Cash 2 1 7 10
Consignment 3 3
Delayed Payment 1 1
General Santos to Cebu
Combination 2 1 2 5 = P2.84

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
General Santos
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
Figure 20. Total Marketing Costs for Swine, by Point of Destination,
TOTAL 25 22 3 58 134
Cebu, 2002
42 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 70

Appendix 8. SWINE:Distribution of respondents, by type of marketing participants,


by mode of delivery, by province, Philippines, 2002

LIVESTOCK
LIVESTOCK
PROVINCE/MODE RAISER/ ASSEMBLER-
ASSEMBLER- AGENT RETAILER TOTAL
OF DELIVERY OPERATOR BUTCHER-MEAT
DISTRIBUTOR
Metro DISTRIBUTOR
Manila Iloilo to
Metro Manila
= P8.60 Metro Manila 1 10 27 38
Picked- up 5 26 31
Delivered 1 2 1 4
Both 3 3

Within Iloilo Pangasinan 30 5 6 41


= P3.88 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
Iloilo
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


Figure 19. Average Marketing Costs for Swine, by Point of
Destination, Iloilo, 2002
71 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 41

Appendix 9. SWINE:Distribution of respondents, by type of marketing participants,


by terms of payment, by province, Philippines, 2002

LIVESTOCK Batangas to
LIVESTOCK Metro Manila=
PROVINCE/TERMS OF RAISER/ ASSEMBLER-
ASSEMBLER- AGENT RETAILER TOTAL P6.34
PAYMENT OPERATOR BUTCHER-MEAT Metro
DISTRIBUTOR
DISTRIBUTOR Manila

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

Pangasinan 30 5 6 41 Barangay
Cash 27 4 4 35 to Market
Combination 3 1 2 6 P4.24
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 Within Batangas


Cash 17 3 1 7 28 -Batangas City P3.18
Consignment 4 4 -Bauan P2.51
Delayed Payment/Credit 3 3 -Lemery P2.75
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 Batangas
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
Figure 18. Average Marketing Costs for Swine, by Point of
TOTAL 146 32 36 6 60 280
Destination, Batangas, 2002
40 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 72

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


Philippines, 2002

Nueva Ecija to Metro SOURCE DESTINATION


PROVINCE
Manila & Bulacan
= P11.39 Within the province Outside the province Within the province Outside the province

Metro Manila Taguig, Muntinlupa City, Batangas, Bulacan, Muntinlupa City, Rizal, Cavite
Metro Las Pinas, Pasig City, Laguna, Rizal Las Pinas, Paranaque,
Manila & Quezon City, Makati City Nueva Ecija, Quezon, Marikina City,
Bulacan 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 Manila
San Carlos City, Villasis,
Lingayan, Bayambang

Nueva Ecija Sta. Rosa, Cabanatuan, Pangasinan, Bulacan Sangitan market, Isabela, Pampanga,
Jaen, Talavera, San Cabanatuan City, Munoz, Metro Manila
Leonardo, Bongabon, Bongabon, San Jose City
Within
Nueva Ecija Gabaldon, Aliaga, Aduas,
Nueva Ecija = P13.38 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 Marikina
and Metro Manila

Iloilo Janiuay, Leon, Guimbal, Janiuay, Leon, Metro Manila


Iloilo 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 City
Liloan, Dumanjug, Carcar,
Sibonga, Argao,
Compostela

Davao del Sur Bansalan, Sta. Maria, Sta. General Santos Sta. Cruz Davao City, Cebu
Cruz, Padada, Hagonoy,
Malita, Matanao,
Magsaysay, Sulop, Digos,
San Isidro, Kibongbong,
Manual, San Jose

Davao City Malingon, Toril, Calinan, Davao Sur, Saranggani, Bangkerohan Cebu City
Figure 17. Average Marketing Costs for Swine, by Point of Banate, Tibungco, Davao Norte
Destination, Nueva Ecija, 2002 Bunaw an Miral
73 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 39

Appendix 11. SWINE (Live): Labor costs incurred by m arketing activity/practice,


by province, Philippines, 2002

MARKETING METRO NUEVA


PANGASINAN BATANGAS ILOILO CEBU DAVAO Pangasinan
ACTIVITY/PRACTICE MANILA ECIJA Pangasinan to Benguet =
peso per kilogram (liveweight)
to Ilocos Sur P8.60
= P7.22
Procurem ent
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
Illocos
Shipping
Within Sur
Arrastre 0.06 0.46
Convoy 0.899 Pangasinan
= P8.79
Distribution
Benguet
Hauling 1.02
Feeding and cleaning
of pens 0.074
Slaughtering a/ 0.25 1.008 2.21
Pangasinan
Handling
Loading 0.748 0.085
Unloading 0.748 0.085
Selling 0.09
Barangay
Salaries and Wages 0.48 0.25 0.23 0.11 0.959 0.25 0.54 to LOM
= P6.26
TOTAL 1.819 1.290 1.800 0.210 5.598 2.790 1.350

a/ includes slicing, chopping and weighing

Appendix 11a. SWINE (Live): Labor costs incurred by m arketing participants, by


activity/practice, Metro Manila, 2002

MARKETING IRLA-B- IRLA-B-


RETAILER
ACTIVITY/PRACTICE
LMD SMD
peso per kilogram (liveweight)

Procurem ent
Hauling 0.167
Handling 0.211

Pre-distribution
Slaughtering 1.338 0.831 0.531

Salaries and w ages


Helper 0.02
Driver 0.32 1.58
Figure 16. Average Marketing Costs for Swine, by Point of
TOTAL 1.505 1.171 2.322 Destination, Pangasinan, 2002
38 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 74

Table 18b. SWINE (Slaughtered): Total m arketing costs, by province, 2002 Appendix 11b. SWINE (Live): Labor costs incurred by marketing participants, by
activity/practice, Pangasinan, 2002
METRO PANGA- NUEVA
ITEM BATANGAS ILOILO CEBU DAVAO
MANILA SINAN ECIJA MARKETING
peso per kilogram (meat) IRLA-LLD MLA-SLD MLA-B-SMD
ACTIVITY/PRACTICE
Cash Costs 10.5 9.7 17.97 4.08 4.66 10.55 1.77
peso per kilogram (liveweight)

Labor 2.79 1.16 3.98 1.44 2.05 1.53 0.52 Pre-marketing


Transportation 0.46 - 0.31 0.29 1.40 0.41 0.23 Handling
Material Inputs 0.34 1.07 0.30 0.89 0.08 0.37 0.52 Loading 0.31
Other Operating Expenses 6.91 7.47 13.38 1.46 1.13 8.24 0.50 Unloading 0.31
Hauling 0.08
Non-cash Costs 3.51 0.85 1.29 0.41 0.23 0.58 0.09
Distribution
Depreciation 1.71 0.17 0.46 0.06 0.23 0.04 0.09 Slaughtering 0.25
Labor 1.80 0.68 0.83 0.35 - 0.54 - Selling 0.09

TOTAL 14.01 10.55 19.26 4.49 4.89 11.13 1.86 Salaries and Wages 0.25

TOTAL 0.25 0.17 0.87


Marketing Costs by Point of Destination

The succeeding charts and table (Figures 16-21 and Table 19) present the average
costs incurred by the respondents in bringing the commodity from the source to its ultimate
destination.
Appendix 11c. SWINE (Live): Labor costs incurred by m arketing participants,
Pangasinan by activity/practice, Nueva Ecija, 2002

The raisers spent P6.26 per kilogram in bringing live hogs from the farm to the MARKETING RAISER/ RLA-B- RLA-B- PLA-B- PLA-B- MLA-B-
“Oksyon” market. When the animals were traded within the province, marketing ACTIVITY/PRACTICE OPERATOR
PLA-LLD
LMD SMD LMD SMD SMD
AGENT RETAILER
costs amounted to P8.79.
peso per kilogram (liveweight)
Traders who brought the animals to Ilocos Sur incurred marketing expense of Procurem ent
P7.22 while those trading live hogs in Benguet spent P8.60 for every kilogram. Handling

Nueva Ecija 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
The distribution of swine within the province entailed marketing cost of P13.38 Slaughtering 1.00 1.00 1.17 1.00 1.21 1.10
per kilogram.

Traders who brought the animals to Bulacan or Metro Manila have a lower Salaries & Wages 0.12 0.33
marketing expenditure amounting to P11.39 per kilogram.

Batangas TOTAL 0.12 0.49 1.55 1.46 2.05 1.66 1.21 0.10 1.72

From the supply barangays to the market, the average cost was P4.24 per * includes loading & unloading
kilogram. In distributing the animals to Batangas City, Bauan and Lemery, the
traders spent P3.18, P2.51 and P2.75, respectively.

The average cost of bringing hogs to Metro Manila was P6.34 per kilogram.
75 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 37

Total Marketing Costs


Appendix 11d. SWINE(Live): Labor costs incurred by m arketing participants, by
activity/practice, Batangas, 2002
Live
MARKETING
PLA-LLD MLA-LLD RETAILER In the supply areas in Luzon, average costs in marketing live hogs ranged from
ACTIVITY/PRACTICE P6.36 in Batangas to P8.13 in Pangasinan.
peso per kilogram (liveweight)
In Visayas, marketing cost was highest in Iloilo at P12.89 followed by Cebu at
Distribution
P11.13 per kilogram.
Handling 0.10 0.12

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


Salaries and Wages 0.08 0.15 hogs.

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


TOTAL 0.18 0.15 0.12

METRO PANGA- NUEVA


ITEM BATANGAS ILOILO CEBU DAVAO
MANILA SINAN ECIJA
peso per kilogram (liveweight)

Cash Costs 4.61 7.26 5.69 5.97 11.82 9.30 7.55


Appendix 11e. SWINE (Live): Labor costs incurred by m arketing participants,
by activity/practice, Iloilo, 2002
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
MARKETING RAISER/ RLA-B- PLA-B
PLA-LLD PLA-MLD PLA-SLD Material Inputs - 0.12 0.18 - 1.21 0.3 0.2
ACTIVITY/PRACTICE OPERATOR SMD SMD
Other Operating Expenses 2.79 5.77 2.9 3.56 2.83 4.88 2.09
peso per kilogram (liveweight)
Procurem ent Non-cash Costs 0.83 0.87 0.88 0.39 1.07 1.83 0.81
Handling
Loading 0.153 0.342 0.036 0.165 Depreciation 0.12 0.78 0.38 0.39 0.84 1.83 0.81
Unloading 0.153 0.342 0.036 0.165 Labor 0.71 0.09 0.50 - 0.23 - -

Shipping TOTAL 5.44 8.13 6.57 6.36 12.89 11.13 8.36


Arrastre 0.060
Convoy 0.899
Slaughtered
Distribution
Hauling 1.020 Pork trading was more costly than trading live hogs as shown in marketing
Feeding and cleaning of pens 0.074
costs incurred by the respondents from Metro Manila (P14.01), Pangasinan
Slaughtering/Slicing/w eighing 1.429 0.982 0.538 1.619
(P10.55) and Nueva Ecija (P19.26).
Handling 1.496
Selling
Traders in Batangas and Iloilo spent P4.49 and P4.89 per kilogram,
Salaries and Wages 0.959 respectively, in procuring and distributing pork.

In Cebu, equal amount was required in trading live and slaughtered animals at
TOTAL 2.449 2.761 0.684 1.941 0.609 2.022
P11.13 per kilogram.

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


36 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 76

Appendix 11f. SWINE (Live): Labor costs incurred by m arketing participants,


Table 17a. SWINE (Live): Im puted cost of depreciation/labor incurred by respondents, by activity/practice, Cebu, 2002
by cost item , by province, 2002

METRO PANGA- NUEVA MARKETING RAISER/


ITEM BATANGAS ILOILO CEBU DAVAO PLA-LLD BLA - SLD RLA-B-SMD PLA-B-SMD RETAILER
MANILA SINAN ECIJA ACTIVITY/PRACTICE OPERATOR
peso per kilogram (liveweight)
peso per kilogram (liveweight)
Procurem ent
Material Used - - - - 0.004 0.003 -
Handling
Equipment 0.002 0.015 0.015 0.02 0.02 0.02 0.004
Loading 0.05 0.05 0.13 0.10 0.20
Facilities - 0.001 - - 0.01 0.05 - Unloading 0.05 0.05 0.13 0.10 0.20
Transportation 0.12 0.76 0.37 0.37 0.81 1.56 0.81 Chopping a/ 0.19
Labor 0.71 0.09 0.50 - 0.23 - -
Distribution
TOTAL 0.83 0.87 0.88 0.39 1.07 1.63 0.81 Slaughtering 2.21

Salaries and Wages 0.35 0.21

Slaughtered
TOTAL 2.56 0.10 0.10 0.26 0.20 0.80

The imputed cost was P3.51 per kilogram in Metro Manila, the highest a/ include chopping and slicing
among the areas covered.

The next with higher imputed cost was gathered in Nueva Ecija at P1.29.
Appendix 11g. SWINE (Live): Labor costs incurred by m arketing participants,
by activity/practice, Davao, 2002
Traders in other areas have total imputed cost from P0.09 (Davao) to P0.85
(Pangasinan).
MARKETING ACTIVITY/ IRLA-LLD- IRLA- RLA- PLA- RLA- PLA-LLD- PLA- MLA- MLA- BLA-
PRACTICE
B-SMD MLD LLD LLD SLD B-MR SLD LLD SLD LLD
peso per kilogram (liveweight)

Table 17b. SWINE (Slaughtered): Im puted cost of depreciation/labor incurred by


respondents, by cost item , by province, 2002 Procurem ent

METRO NUEVA Handling 0.25 0.43 0.16 0.07 0.03 0.14


PANGA-
ITEM BATANGAS ILOILO CEBU DAVAO
MANILA SINAN ECIJA
peso per kilogram (meat) Shipping
Arrastre 0.46
Material Used 0.031 0.007 0.01 0.014 0.006 0.011 0.02
Equipment 0.105 0.163 0.256 0.046 0.057 0.03 0.073
Distribution
Facilities 1.436 - - - - - -
Handling 0.13 0.40 0.16 0.07 0.03 0.14
Transportation 0.14 - 0.20 - 0.17 - -
Labor 1.802 0.68 0.83 0.35 - 0.54 -
Salaries and Wages 0.99 0.09 0.40 0.48 0.48
TOTAL 3.51 0.85 1.29 0.41 0.23 0.58 0.09

TOTAL 0.84 0.99 0.92 0.40 0.32 0.14 0.48 0.48 0.06 0.28
77 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 35

Appendix 12. SWINE (Live): Transportation costs incurred by m arketing


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

METRO PANGA- NUEVA


ITEM PANGASINAN NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO ITEM BATANGAS ILOILO CEBU DAVAO
MANILA SINAN ECIJA
peso per kilogram (meat)
peso per kilogram (liveweight)

Permits/licenses 0.57 0.04 0.01 0.07 0.01 0.07 0.06


Procurement 0.08 0.81 0.80 0.58 0.33 Fees 0.786 0.177 0.063 0.42 0.43 0.72 -
Rentals 1.48 - 0.05 0.03 0.11 0.15 0.09
Utilities 0.30 0.07 0.18 0.30 0.05 0.17 0.34
Shipping 1.425 3.13
Gas and oil 0.97 - 0.11 0.29 0.24 - 0.01
Meals and beverages 0.061 - 0.25 0.13 0.12 0.23 -
Distribution 0.39 0.75 0.32 0.45 Agent's commission - - - - - - -
Shipping - - - - - - -
TOTAL 0.08 0.81 1.19 2.175 0.90 3.91 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 - - -
Appendix 12a. SWINE (Live): Transportation costs incurred by
marketing participants, by activity/practice, Pangasinan, 2002 TOTAL 6.91 7.47 13.38 1.46 1.13 8.24 0.50

ITEM MLA-SLD PLA-B-SMD

Imputed Costs
Procurement 0.08 0.07
This study computed the depreciation costs for materials, facilities and
TOTAL 0.08 0.07 transportation items used in swine marketing. It also included the estimated value of the
work performed by the family/operator.

Live

Appendix 12b. SWINE (Live): Transportation costs incurred by There were trader-respondents in Metro Manila, Pangasinan, Nueva Ecija and
marketing participants, by activity/practice, Nueva Ecija, 2002 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.
ITEM PLA-B-SMD RETAILER

peso per kg.(liveweight) Total imputed cost was highest in Cebu at P1.63 and lowest in Batangas at
P0.39.
Procurement 1.40 0.21

Total 1.40 0.21


34 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 78

Appendix 12c. SWINE(Live): Transportation costs incurred by m arketing participants,


Live by activity/practice, Batangas, 2002

The average operating cost was highest in Pangasinan at P5.73, followed by MARKETING
MLA-LLD PLA-LLD PLA-SLD MLA-B-SMD RETAILER
Cebu at P4.88 and Batangas at P3.56 per kilogram. ACTIVITY/PRACTICE

peso per kilogram (liveweight)


In Metro Manila, traders needed P2.80 per kilogram to cover miscellaneous
expenses. Procurement 0.11 0.84 0.82

Traders from other areas incurred P2.74 (Nueva Ecija), P3.31 (Iloilo) and Distribution 0.15 0.73 0.29
P2.16 (Davao).
TOTAL 0.26 0.73 0.29 0.84 0.82

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


by cost item , by province, 2002

METRO PANGA- NUEVA


ITEM BATANGAS ILOILO CEBU DAVAO Appendix 12d. SWINE (Live): Transportation costs incurred by marketing
MANILA SINAN ECIJA participants, by activity/practice, Iloilo, 2002
peso per kilogram (liveweight)

Permits/licenses 0.06 0.07 0.54 0.01 0.18 0.02 0.08 ITEM RAISER/ OPERATOR PLA-LLD
Fees 1.27 2.14 0.57 1.74 0.736 2.16 1.27
Rentals - 0.35 0.04 - 0.01 0.14 -
Php/kg.(liveweight)
Utilities 0.03 0.12 0.06 0.12 0.24 0.03 0.21
Gas and oil 0.40 0.65 0.62 0.29 0.24 0.27 0.06 Shipping 1.425
Meals and beverages - 0.42 0.27 - 0.41 0.06 0.37
Agent's commission 1.00 - 0.62 0.68 0.44 0.90 0.06 Distribution 1.04 0.748
Shipping - - - - 0.013 - -
Repair and maintenance 0.035 1.85 0.18 - 0.346 - - TOTAL 1.04 2.173
Interest on loan - 0.16 - - 0.22 - -
Services - - - - - - -
Shrinkage - - - 0.69 - 1.30 -
Others - 0.006 - 0.03 - - 0.04
Appendix 12e. SWINE (Live): Transportation costs incurred by m arketing participants,
TOTAL 2.79 5.77 2.90 3.56 2.83 4.88 2.09 by activity/practice, Cebu, 2002

RAISER/ RLA-B- PLA-B- BLA-B-


ITEM PLA-LLD MLA-SLD BLA-SLD RETAILER
Slaughtered OPERATOR SMD SMD SMD

Trading of slaughtered hogs required a minimum of P0.50 and a maximum of peso per kilogram (liveweight)
P13.38 per kilogram of meat to cover the other operating expenses.
Procurement 0.92 0.72 0.92 1.81 0.61 0.45 0.54

Wastage contributed a significant amount particularly in Metro Manila, Distribution 0.32


Pangasinan, Nueva Ecija and Cebu.
TOTAL 0.32 0.92 0.72 0.92 1.81 0.61 0.45 0.54
Other items like fees, rentals, utilities, gas and oil, meals and beverages
amounted to less than a peso.
79 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 33

Appendix 12f. SWINE (Live): Transportation costs incurred by m arketing participants,


by activity/practice, Davao, 2002
Table 15a. SWINE (Live): Cost of m aterial inputs by m arketing activity/practice
by province, 2002
RAISER- IRLA-LLD- RLA- PLA- RLA- PLA- MLA- BLA- BLA-
ITEM
OPERATOR B-SMD LLD LLD SLD SLD LLD LLD B-MR METRO PANGA- NUEVA
ACTIVITY/PRACTICE BATANGAS ILOILO CEBU DAVAO
peso per kilogram (liveweight) MANILA SINAN ECIJA
peso per kilogram (liveweight)

Procurem ent 0.36 0.69 0.08 0.19 0.31


Procurement - 0.12 0.18 - 0.21 0.09 0.20
Distribution - - - - 0.29 0.21 -
Shipping 3.13
TOTAL - 0.12 0.18 - 0.50 0.30 0.20
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 Slaughtered

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

Appendix 13. SWINE (Live): Cost of material inputs incurred by marketing In selling, however, the average costs for materials ranged from P0.08 (Iloilo)
participants, by activity/practice/item, to P1.07 per kilogram (Pangasinan).
by province, Philippines, 2002

ITEM PANGASINAN NUEVA ECIJA ILOILO CEBU DAVAO


Table 15b. SWINE (Slaughtered): Cost of m aterial inputs by m arketing activity/practice
peso per kilogram (liveweight) by province, 2002
PROCUREMENT
METRO PANGA- NUEVA
Feeds/rice bran 0.16 0.204 0.09 0.15 ACTIVITY/PRACTICE BATANGAS ILOILO CEBU DAVAO
MANILA SINAN ECIJA
Crate 0.003
Drum 0.012 0.002 peso per kilogram (meat)
Ladder 0.002
Rope 0.04 0.001 0.002 Procurement - - - - - 0.003 -
Container 0.001 Distribution 0.34 1.07 0.30 0.89 0.08 0.37 0.52
Bamboo 0.004
Kaing 0.04 TOTAL 0.34 1.07 0.30 0.89 0.08 0.37 0.52
Brooms 0.001
Basin 0.003
Hose 0.07 0.015
Pail 0.002 0.003
Other Operating Costs
DISTRIBUTION
Ropes 0.05 0.21 Marketing participants also incurred other operating expenses which included
Feeds 0.24 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.
TOTAL 0.124 0.182 0.503 0.30 0.196 Other items with the corresponding amount of cost incurred are enumerated in Tables 16a
and 16b.
32 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 80

Appendix 13a. SWINE (Live): Costs of material Inputs incurred by


marketing participants, by item, Pangasinan, 2002
Slaughtered
RAISER/
ITEM IRLA-LLD MLA-B-SMD
Trader-respondents from Metro Manila, Batangas and Cebu paid P0.46, P0.29 OPERATOR
and P0.41 per kilogram, respectively for transportation during their peso per kilogram (liveweight)
procurement activities. In this case, traders let their buyers picked up the
goods from their location. Distribution
Drum 0.012
On the other hand, traders from Nueva Ecija incurred transport cost of P0.31 Pail 0.030 0.001 0.001
during distribution only. Rope 0.110 0.080 a/
Plastic hose 0.07
Respondents from Iloilo and Davao were charged a total of P1.40 and P0.23
per kilogram, respectively, for transporting slaughtered animals. TOTAL 0.210 0.093 0.001

Appendix 13b. SWINE (Live): Costs of material Inputs incurred by marketing participants, by item,
Table 14b. SWINE (Slaughtered): Transportation costs by m arketing Nueva Ecija, 2002
activity/practice, by province, 2002

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


ACTIVITY/PRACTICE BATANGAS ILOILO CEBU DAVAO
MANILA ECIJA
peso per kilogram (liveweight)
peso per kilogram (meat)
Procurement
Procurement 0.456 - 0.29 0.75 0.41 0.04 Feeds 0.173 0.111 0.231 0.122
Distribution - 0.31 - 0.645 - 0.19 Brooms 0.001
Basin 0.004 0.002
Hose 0.015
TOTAL 0.46 0.31 0.29 1.395 0.41 0.23
Pail 0.003

TOTAL 0.195 0.111 0.231 0.003 0.122

Material Inputs a/ less than 0.001

Swine trading required some material inputs. In buying, the materials used were Appendix 13c. SWINE (Live): Cost of material inputs incurred by marketing participants,
crates, drum, ladder, feeds, rope and containers. In selling, rope, feeds, sacks and plastic by item, Iloilo, 2002
bags were used. Tables 15a and 15b present the materials used and the corresponding
costs for live and slaughtered animals, respectively. ITEM
RAISER/
PLA-LLD PLA-MLD PLA-SLD PLA-B-SMD
OPERATOR

Live peso per kilogram (liveweight)


Procurement
Crate 0.003
In Pangasinan, Nueva Ecija and Davao, trader-respondents used some Drum 0.001 0.004
materials with costs ranging from P0.12 to P0.20 per kilogram for the Ladder 0.002
procurement of live hogs. Feeds/rice bran 0.662 0.089
Rope 0.003 a/
Traders from Cebu and Iloilo spent much higher at P0.30 and P0.50 per Container 0.001
kilogram because they used those material inputs both in the procurement and Distribution
distribution processes. Rope 0.050
Feeds 0.240
Trader-respondents from Metro Manila and Batangas did not require material
inputs in trading live animals. TOTAL 0.290 0.006 0.662 0.008 0.089
81 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 31

Appendix 13d. SWINE(Live): Cost of material inputs incurred by marketing In procuring meat, traders in Metro Manila, Nueva Ecija, Batangas and Davao
participants, by item, Cebu, 2002 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
ITEM RAISER/ OPERATOR BLA - SLD PLA-B- SMD distribution of every kilogram of pork.
peso per kilogram (Liveweight)
Table 13b. SWINE (Slaughtered): Labor costs by m arketing activity/practice,
PROCUREMENT by province. 2002
Feeds 0.10 0.08

METRO PANGA- NUEVA


DISTRIBUTION ACTIVITY/PRACTICE BATANGAS ILOILO CEBU DAVAO
Ropes 0.21 MANILA SINAN ECIJA

peso per kilogram (meat)


TOTAL 0.21 0.10 0.08
Procurem ent 1.06 - 0.86 0.12 - - 0.11
Distribution 1.25 0.66 2.34 1.01 0.72 1.10 0.10
Salaries and Wages 0.48 0.50 0.78 0.31 1.33 0.43 0.31

Appendix 13e. SWINE (Live): Costs of material Inputs incurred by marketing TOTAL 2.79 1.16 3.98 1.44 2.05 1.53 0.52
participants, by item, Davao, 2002

ITEM RLA-SLD PLA-SLD MLA-LLD


Transportation
Transportation was a major consideration in moving the commodity from point to
peso per kilogram (liveweight) point and from one participant to another. The cost depends on the distance and
Procurement destination of the commodity.
Rope 0.002 0.002 Live
Bamboo 0.002 0.007
Shipment of live hogs from Iloilo and Davao required average costs of P1.43
Kaing 0.040 and P3.13 per kilogram, respectively.
Feeds 0.150
Average cost of transferring hogs from the source to their destination ranged
TOTAL 0.150 0.004 0.049
from P0.08 to P3.91 per kilogram.

Table 14a. SWINE (Live): Transportation costs by m arketing


activity/practice, by province, 2002

NUEVA
ACTIVITY/PRACTICE PANGASINAN BATANGAS ILOILO CEBU DAVAO
ECIJA
peso per kilogram (liveweight)

Procurement 0.08 0.81 0.80 - 0.58 0.33


Shipping - - - 1.43 - 3.13
Distribution - - 0.39 0.75 0.32 0.45

TOTAL 0.08 0.81 1.19 2.18 0.90 3.91


30 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 82

Appendix 14. SWINE (Live): Other operating costs incurred by respondents,


Marketing Costs by activity/practice/item , by province, Philippines2002

Marketing of swine from the farm level up to retail level entailed a lot of costs which METRO NUEVA
included labor, transportation, material inputs, other operating expenses and depreciation. ITEM
MANILA
PANGASINAN
ECIJA
BATANGAS ILOILO CEBU DAVAO
The succeeding topics described the expenditure items and the corresponding cost as
peso per kilogram (liveweight)
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
Business permit 0.058 0.07 0.03 0.01 0.014 0.02 0.01
amount varied depending on the extent of business operations.
Barangay permit c/ 0.02 0.25 0.01
Labor Transport permit
Market fee b/ 0.121 0.04 0.03
The activities performed in the process of procuring live hogs from the farm Weighing scale rental 0.04
included handling (loading/unloading to/from the truck/vehicle). During internal operations, Inspection fee 0.22
feeding and cleaning of pens were done by some traders. Hauling, handling, slaughtering Coral fee 0.22 0.030
and selling were the activities performed in the distribution process that entailed Electricity 0.235
Occupancy fee 0.06
corresponding cost.
Slaughter housefee 0.359 1.88
Live Slaughter fee 0.741 0.57 1.11 0.300 1.48 0.93
Branding fee
Labor costs ranged from P0.21 (Batangas) to P5.60 per kilogram liveweight Calibration of w eighing scale
(Iloilo). Garbage/Sanitary permit 0.26
Water 0.03 0.01 0.04
Traders in Iloilo spent relatively highest labor cost which included shipping cost Gas and oil 0.40 0.65 0.62 0.29 0.398 0.27 0.37
at P0.96, distribution cost at P3.60 and salaries and wages at P0.96. Meals and beverages d/ 0.42 0.27 0.393 0.06 0.11
Cebu traders ranked second with cost averaging P2.79 per kilogram which Weighing fee 0.133 0.13 0.11 0.163 0.06
contributed largely by P2.21 paid by raisers for slaughtering fees and services. Tollgate fee 0.04 0.02
Branding fee 0.07
The costs of labor in Metro Manila, Pangasinan, Nueva Ecija and Davao were Agent's commission 1.00 0.62 0.68 0.438 0.90 0.06
recorded at less than P2.00 per kilogram liveweight. Cellcard 0.06 0.03 0.12 0.049 0.03
Wastage/Shrinkage 0.69 0.574 1.30
Others e/ 0.006 0.03 0.02
Table 13a. SWINE (Live): Labor costs by m arketing activity/practice, by province, 2002 Holding pen rental 0.35 0.14
Telephone 0.03 0.006 0.118 0.02 0.14
METRO PANGA- NUEVA Entrance/exit fee 0.06 0.46
ACTIVITY/PRACTICE BATANGAS ILOILO CEBU DAVAO Stockyard fee 0.022 0.18 0.29
MANILA SINAN ECIJA
Repair and maintenance 0.035 1.85 0.018 0.009
peso per kilogram (liveweight) Interest on loan 0.16 0.337
Gun license fee 0.077
Procurem ent 1.34 0.70 1.57 0.10 0.08 0.33 0.18 Vehicle registration fee 0.025
Shipping - - - - 0.96 0.02 0.46 Wharfage 0.012
Travel permit 0.06
Distribution - 0.34 - - 3.6 2.21 0.17
Residence certificate
Salaries and Wages 0.48 0.25 0.23 0.11 0.96 0.25 0.54

TOTAL 2.795 5.732 2.738 3.560 3.315 4.880 2.160


TOTAL 1.82 1.29 1.80 0.21 5.60 2.81 1.35

a/ less than o .o o 1
Slaughtered b/ includes ticket and cash ticket
c/ includes lo cal tax
The highest cost of labor in marketing swine was recorded in Nueva Ecija at d/ includes cigarrettes, rice supply
P3.98 per kilogram while the lowest was in Davao at P0.52 per kilogram of e/ includes to ng, revo lutio nary tax, dro pping fee
meat.
83 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 29

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

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

peso per kilogram (liveweight)

Business permit 0.058


Telephone 0.033 0.026 IB-RETAILER
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 SLAUGHTERHOUSE
Gas and oil 0.223 0.567
Repair and maintenance 0.035 0.056 0.005

TOTAL 0.035 1.256 2.746 1.538

Appendix 14b. SWINE (Live): Other operating costs incurred by marketing participants, IRLA-B-SMD
by item, Pangasinan, 2002
IRLA-SLD
RAISER/ PLA-B- MLA-B-
ITEM IRLA-LLD MLA-SLD
OPERATOR SMD SMD
peso per kilogram (liveweight)
IRLA-B-LMD

Gas and oil 0.702 0.887 0.348


Marketing Costs Structure for Swine i
Meals and beverages 0.418 SOP
Entrance fee 0.081 0.036
Weighing of live hogs 0.132 Legend:
Branding at LOM 0.197 0.020
Barangay permit 0.500 0.002 0.018 - live
Revolutionary tax 0.001
Business permit/license 0.062 0.038 - meat
Holding pen 0.353
Cell cards 0.088 0.033
Telephone 0.005 0.007
Tong 0.005
Slaughterhouse fee 1.875
Interest on capital 0.160
Repair and maintenance 1.850
Figure 15. Marketing Channels for Swine in Metro Manila, 2002
TOTAL 0.655 3.543 1.931 0.887 0.802
28 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 84

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

RAISER/ PLA- BLA- RLA-B- RLA-B- PLA-B- PLA-B- MLA-B-


ITEM AGENT RETAILER
CONSUMER OPERATOR LLD SLD LMD SMD LMD SMD SMD

peso per kilogram (liveweight)

Demand B/MR Business permit 0.092 0.01 0.02 0.005 0.02 0.01
Sanitary fee 0.27 0.25 0.26 0.279 0.242 0.246
Areas Water 0.022 0.043
Slaughter fee 0.675 0.063 0.742 0.697 0.606 0.615
Agent's commission 0.676 0.573
Weighing scale rental 0.013 0.066
PLA-LLD-B-MR Barangay permit 0.25
Repair and maintenance 0.018
Cell card 0.034
Gas and oil 0.017 1.777 0.5 0.28 0.63 0.65 1.212 0.312
Meals 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
IRLA-LLD-B-
SMD/
BLA-LLD/RLA-
IRLA-MLD/RLA- LLD
Supply SLD/PLA-LLD/PLA- Appendix 14d . SWINE (Live): Other operating costs incurred by m arketing participants, by
item , Batangas, 2002
Areas SLD/MLA-
LLD/MLA-SLD BOP
RAISER/ MLA- PLA- PLA- IRLA-B- MLA-B-
ITEM RETAILER
OPERATOR LLD LLD SLD LMD SMD

pesoStructure
Marketing Costs per kilogram
for(liveweight)
Swine i
AGENT Business permit 0.01 0.002
Inspection fee 0.22
Coral fee 0.22
Occupancy fee 0.06
Slaughter fee 1.11
Gas and Oil 0.19 0.81 0.15 0.29
Weighing fee 0.18 0.06 0.13
Tollgate fee 0.02
Agent's commission 0.71 0.67
RAISER Cellcard 0.06
Shrinkage 0.69
Others a/ 0.02

Figure 14. Marketing Channels for Swine in Davao, 2002 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
85 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 27

Appendix 14e. SWINE (Live): Other operating costs incurred by m arketing participants, by item , Iloilo, 2002 Legend: CONSUMERS

- live INSTITUTIONAL
RAISER/ PLA- RLA-B- PLA-B- BUYERS
ITEM PLA-LLD PLA-SLD AGENT RETAILER
OPERATOR MLD SMD SMD - meat
peso per kilogram (liveweight) RETAILERS

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 SLAUGHTERHOUSE
Cellcard 0.008 0.023
Repair and maintenance 0.938 0.007 0.036 0.003 COOP
Interest on loan 0.337
Meals and beverages 0.500 0.188 0.429 0.095 0.118
STOCKYARD
Gas and oil 0.200 0.261 0.307 0.114 0.235
Electricity and w ater 0.235
Telephone 0.118 PLA-B- AGENT
Gun license fee 0.077 BOP SMD/BLA-
Stockyard fee 0.022 B-SMD
Stall rental
BLA-B-SMD/
Vehicle registration fee 0.025 RLA-B-
IRLA-SLD
Wharfage fee 0.012 SMD
Cigarettes 0.176
LOM exit fee
Inspection fee
Shrinkage 0.574 LOM
SOP
Permit fee to slaughter 0.081 0.170
Slaughter fee 0.300 0.300
Post mortem fee
Corral fee 0.022 0.045
BLA-SLD AGENT MLA-SLD
TOTAL 2.793 0.475 0.430 1.833 0.612 0.671 0.554 0.457

RAISER

Figure 13. Marketing Channels for Swine in Cebu, 2002


26 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 86

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

RETAILER
RAISER/
ITEM IRLA- SLD BLA-SLD MLA-SLD RLA-B-SMD PLA-B-SMD RETAILER
OPERATOR

peso per kilogram (liveweight)

Business permit 0.02 0.002


Market fee 0.04
Stall rental
Holding pen rental 0.20 0.09
PLA-B-SMD SLAUGHTERHOUSE SMD Electricity
Slaughter fee 1.94 1.03
Telephone 0.025 0.035
Garbage/Sanitary permit
Water 0.01
Gas and Oil 0.36 0.19 0.12 0.43
Entrance fee (abbattoir) 0.35 0.58
Stockyard fee 0.20 0.16
Agent's commission 0.90
BOP Shrinkage 1.73 1.12 1.11 2.72
PLA-SLD Meals and Beverages 0.06

TOTAL 2.98 1.68 1.61 2.72 2.08 0.28 2.075

Appendix 14g. SWINE (Live): Other operating costs incurred by m arketing participants, by item , Davao, 2002
PLA-LLD AGENT PLA-MLD RLA-B-SMD
IRLA-LLD- IRLA- RLA- PLA- RLA- PLA-LLD- PLA- MLA- MLA- BLA-
ITEM B-MR
B-SMD MLD LLD LLD SLD B-MR SLD LLD SLD LLD
peso per kilogram (liveweight)

Slaughter fee 0.97 0.17 0.77


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

Figure 12. Marketing Channels for Swine in Iloilo, 2002 TOTAL 1.05 0.32 0.18 0.53 1.43 0.24 0.79 1.23 0.27 0.06 0.77
87 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 25

Appendix 15. SWINE (Live): Im puted cost of depreciation/labor incurred by respondents,


by m aterial/facilities/equipm ent, by province, Philippines, 2002 CONSUMER

METRO
ITEM PANGASINAN NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
MANILA

peso per kilogram (liveweight)

Material Used SOP RETAILER


Slicing tools 0.004
Ice bucket/box 0.003

Equipm ent SLAUGHTERHOUSE


BOP
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
IRLA-B-SMD BLA-B-SMD
Facilities
Holding pen/stockyard 0.01 0.05
Office building 0.001

Transportation
Truck 0.12 0.240 0.322 0.05
PLA-SLD
Forw ard 0.400
Tricycle/sidecar 0.120 0.138
Jeep 0.184 0.37
Motor w ith trailer 0.172 PLA-LLD MLA-LLD
Ford fierra 0.48
Motorcycle 0.28
Multi-cab/pick-up 1.56
Trailer 0.066
Colong-colong 0.119
LOM
Labor 0.71 0.09 0.50 0.232

TOTAL 0.832 0.866 0.884 0.390 0.894 1.633 0.814

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

Figure 11. Marketing Channels for Swine in Batangas, 2002


24 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 88

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

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

peso per kilogram

Equipment
RETAILER BOP Calculator a/ 0.001 0.004

Transportation
Truck 0.053 0.147 0.240 0.214

Labor 0.710

RLA-B-LMD/ PLA-B-LMD/
SMD SMD TOTAL 0.053 0.147 0.241 0.928

Appendix 15b. SWINE ( Live): Im puted costs of labor and depreciation incurred by m arketing
participants, by m aterial/facilities/equipm ent used, Pangasinan, 2002

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

peso per kilogram (liveweight)

Equipm ent
Weighing scale a/ 0.01
BLA-SLD
Calculator a/
Cellphone 0.002 0.01

Facilities
AGENT
Office building 0.001

Transportation
Forw ard 0.40
RAISER/OPERATOR
Truck 3.04 0.19 0.84
Tricycle 0.12

Labor 0.09

TOTAL 3.05 0.29 0.40 0.96


Figure 10. Marketing Channels for Swine in Nueva Ecija, 2002
a/ include all kind of weighing scale
89 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 23

Appendix 15c. SWINE (Live): Im puted costs of labor and depreciation incurred by m arketing participants,
by m aterial/facilities/equipm ent used, Nueva Ecija, 2002
CONSUMER
RAISER/ RLA-B- RLA-B- PLA-B-
ITEM PLA-LLD BLA-SLD AGENT RETAILER
OPERATOR LMD SMD LMD

peso per kilogram (liveweight)

Equipm ent RETAILER


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 SLAUGHTERHOUSE BOP
Labor 0.500

TOTAL 0.266 0.162 1.250 0.046 0.071 0.126 0.008 0.001

LOM
a/ less than 0.001

Appendix 15d. SWINE (Live): Imputed cost of depreciation/labor by marketing


participants, by materials/facilities and equipment used, Batangas, 2002 PLA-B-SMD IRLA-LLD
MLA-B-SMD MLA-SLD
ITEM RAISER/OPERATOR MLA-LLD

peso per kilogram (liveweight)

Equipment
Weighing Scale 0.02 0.003
Cellphone 0.01
RAISER/OPERATOR
Transportation
Jeep 2.41 0.29

TOTAL 2.43 0.303

Figure 9. Marketing Channels for Swine in Pangasinan, 2002


22 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 90

Appendix 15e. SWINE (Live): Im puted costs of labor and depreciation incurred by m arketing
participants, by m aterials/facilities & equipm ent used, Iloilo, 2002
One RLA-B-SMD slaughtered the animals himself before directly distributing to
them to the retailers.
RAISER/ PLA-B-
ITEM PLA-LLD PLA-MLD PLA-SLD AGENT
OPERATOR
SMD
Retailers sourced their meat supplies from the SMDs or directly from the
slaughterhouse. peso per kilogram (liveweight)

Materials
Cebu
Butcher's knife/knives 0.004

Raisers sold their swine to either livestock assemblers-distributors, agent or Equipm ent
directly to the BOPs or LOMs. Cellphone 0.003 0.005
Calculator 0.001 0.002
Livestock assemblers, agents and SOPs brought the animals to the LOMs Gun 0.012
wherein butcher-meat distributors and sometimes the retailers sourced their
supplies. Facilities
Stockyard/holding pen 0.018 0.004
There were retailers who sourced live animals from the stockyard or directly
Transportation
from the growers and paid for service fees at the slaughterhouse. Truck 0.206 0.438
Tricycle/sidecar 1.172 0.127
Davao Motor w ith trailer 0.172

The market outlets of swine raisers were agents, livestock assemblers- Labor 0.232
distributors and butcher-meat distributors.
TOTAL 1.404 0.021 0.333 0.460 0.004 0.173
RLA-LLD supplied BOPs from Cebu.

Retailers bought swine either live or slaughtered and sold them to the
consumers. Appendix 15f. SWINE (Live): Imputed cost of depreciation by marketing participants,
by materials/facilities and equipment used, Cebu, 2002
Metro Manila
RAISER/
ITEM RLA-SLD BLA-SLD RETAILER
OPERATOR
Meat distributors got their stocks from the suppliers outside the province
(SOP). peso per kilogram (Liveweight)

They brought live hogs to the slaughterhouse, paid for the services of the Material Used
butchers, and then distributed meat to the retailers and institutional buyers. Ice bucket 0.003

Equipment
Weighing Scale 0.04 0.01

Facilities
Holding 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


91 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 21

Marketing Channels
Appendix 15g. SWINE (Live): Im puted costs of labor and depreciation incurred by m arketing
participants, by m aterial/facilities & equipm ent used, Davao, 2002
Figures 9-15 illustrate the flow of swine from the raisers to retailers.

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


ITEM
B-SMD MLD LLD LLD SLD LLD LLD
Swine raisers’ outlets were either livestock assembler-distributor, butcher-meat
peso per kilogram (liveweight)
distributor. They also directly sold their produce to the LOMs.
VEHICLE
Ford Fierra 0.380 0.610 Animals bought from the LOMs were either delivered to the slaughterhouse or
Truck 0.010 0.300 0.270 distributed to the buyers outside the province (BOP).
Motorcycle 0.280
Slaughtered animals were sold to retailers or to the BOP.
EQUIPMENT
Cellular phone 0.001 0.020 0.020 0.003 Nueva Ecija

Agents, livestock assembler-distributors and butcher-meat distributors were the


TOTAL 0.001 0.38 0.01 0.30 0.29 0.91 0.003 market outlets of swine raisers in Nueva Ecija.

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


Appendix 16. SWINE (Slaughtered): Labor costs incurred by m arketing activity/practice,
Buyers outside the province preferred live hogs supplied to them by the PLA-
by province, Philippines, 2002
LLD.
MARKETING
METRO MANILA PANGASINAN
NUEVA
BATANGAS ILOILO CEBU DAVAO Batangas
ACTIVITY/PRACTICE ECIJA
From the raisers, live hogs were brought to the LOMs or to livestock
peso per kilogram (meat)
assemblers-distributors or meat distributors;
Procurem ent
Livestock assemblers sourced their supplies from co-LA’s, then distributed to
Hauling 0.251
butchers for slaughter;
Handling
Loading 0.189 0.06 0.055
One PLA-LLD sold animals to BOPs;
Unloading 0.189 0.06 0.055
Chopping/Slicing 0.42 0.86
There were retailers who bought live animals directly from the raisers, brought
Distribution
the same to the slaughterhouse, and distributed meat to the consumers.
Handling
Loading 0.03 0.46 0.05 Iloilo
Unloading 0.03 0.47 0.05
Chopping 0.42 The raisers’ outlets for their live animals were livestock assemblers-distributors
Cleaning 0.17 (PLA-LLD/PLA-MLD), agents or butcher-meat distributors (RLA-B-SMD).
Weighing 0.54 0.498
Selling 0.83 0.60 0.70 1.01 0.224 1.10 PLA-LLDs distributed live animals to buyers outside the province.

Salaries and Wages 0.48 0.50 0.78 0.31 1.331 0.43 0.31 Agents passed their procured animals to PLA-SLD, then to PLA-B-SMD.

PLA-MLD brought live animals to the slaughterhouse.


TOTAL 2.779 1.160 3.980 1.440 2.053 1.530 0.520
20 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 92

Appendix 16a. SWINE (Slaughtered): Labor costs incurred by m arketing


participants, by activity/practice, Metro Manila, 2002

Metro Manila MARKETING ACTIVITY/ IRLA-B- IRLA-B-


RETAILER
Wet Market PRACTICE LMD SMD
Supermarkets peso per kilogram (meat)
Demand
Restaurants
Areas Procurem ent
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 w ages


Trading Slaughterhouses in Helper 0.02
Metro Manila, Cainta, Nepomuceno, Driver 0.32 1.58
Centers & Antipolo Rizal Tondo Stockyard

TOTAL 0.167 1.502 4.930

Appendix 16b. SWINE (Slaughtered): Labor costs incurred by m arketing


participants, by activity/practice, Pangasinan, 2002

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


Areas Batangas, Cavite
Cebu,
Quezon, Bulacan peso per kilogram (meat)
Davao
Nueva Ecija
General Santos
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

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


93 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 19

Appendix 16c. SWINE (Slaughtered): Labor costs incurred by marketing


participants, by activity/practice, Nueva Ecija, 2002

MARKETING 1
RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD RETAILER
ACTIVITY/PRACTICE
peso per kilogram (meat)
Procurement
Slicing 1.00 0.42 1.00 1.00

Distribution
Cleaning 0.17 0.17 0.17 3 2
Handling
Loading 0.08 0.20 0.50 0.16
Unloading 0.09 0.21 0.50 0.16
Selling 0.35 0.42 1.00 1.03
Weighing 0.29 0.42 0.90 4
5
Salaries & Wages 0.67 0.83 0.83

TOTAL 2.48 2.26 2.41 3.90 1.52

Appendix 16d. SWINE(Slaughtered): Labor costs incurred by m arketing


participants, by activity/practice, Batangas, 2002

7
MARKETING ACTIVITY/PRACTICE IRLA-B-LMD RETAILER
8
peso per kilogram (meat)
Distribution
10
Handling 0.12
1. Cebu
Selling 1.01 2. Davao City
3. Bansalan
Salaries and Wages 0.05 0.46 9
4. Magsaysay
11
TOTAL 0.05 1.59 5. Sta. Cruz
6. Digos
12 7. Hagonoy
Appendix 16e. SWINE (Slaughtered): Labor costs incurred by m arketing 8. Padada
participants, by activity/practice, Iloilo, 2002 9. Kidapawan
10. Sta. Maria
MARKETING ACTIVITY/PRACTICE PLA-B-SMD RETAILER 11. Malita
12. Sarangani
Php/kg (meat) Province
Distribution
Slicing/w eighing 0.498
Selling 0.319 0.208

Salaries and Wages 1.331 Figure 7. Geographic Flow of Swine in Davao del Sur, 2002
TOTAL 0.319 2.037
18 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 94

Appendix 16f. SWINE: Labor costs incurred by m arketing participants,


by activity/practice, Cebu, 2002
CEBU
MARKETING ACTIVITY/PRACTICE RETAILER
- Carcar
MANILA
Demand - Carbon CAVITE Php/kg (slaughtered)
Areas - Mandaue
- Tabunok Distribution
Selling a/ 1.10

Salaries and Wages 0.43

TOTAL 1.53
CEBU (LOM)
a/ include slicing of meat and selling

- San Antonio
- Bogo
- Mantalongon
Trading - Mandaue
Centers (Abattoirs)
Appendix 16g. SWINE ( Slaughtered): Labor costs incurred by m arketing
participants, by activity/practice, Davao, 2002

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


PRACTICE B-SMD B-MR
peso per kilogram (meat)
CEBU
GENERAL SANTOS CITY
- Adlaon DAVAO Procurem ent
MISAMIS ORIENTAL
- Pit-os Handling 0.25 0.11
NEGROS ORIENTAL
Supply - Talamban
MASBATE
Areas - Absungot BOHOL Distribution
- Valladolet
- Compostela Handling 0.25 0.07 0.11
- Liloan
- Danao Salaries and Wages 0.31
- Consolacion
Legend:
TOTAL 0.50 0.07 0.53
- live

- meat

Figure 6. Geographic Flow of Swine in Cebu, 2002


95 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 17

Appendix 17. SWINE (Slaughtered): Transportation costs incurred by m arketing


activity/practice, by province, Philippines, 2002
Legend:

MARKETING NUEVA
- live
PANGASINAN BATANGAS ILOILO CEBU DAVAO METRO
ACTIVITY/PRACTICE ECIJA
MANILA - meat
peso per kilogram (meat)

Procurement 0.456 0.29 0.75 0.41 0.04

Distribution 0.31 0.645 0.19

Janiuay Iloilo City Lapaz Public


TOTAL 0.46 0.31 0.29 1.395 0.41 0.23
Poblacion Central Market Market

Appendix 17a. SWINE (Slaughtered): Transportation costs incurred by


m arketing participants, by activity/practice, Metro Manila, 2002
SLAUGHTERHOUSE

MARKETING ACTIVITY/PRACTICE RETAILER

peso per kg. (meat)

Procurem ent 0.456 LIVESTOCK


“OKSYON”
MARKET
TOTAL 0.456

Appendix 17b. SWINE (Slaughtered): Transportation costs incurred by m arketing participants, by


activity/practice, Neva Ecija, 2002
JANIUAY GUIMBAL LEON
MARKETING - Guadalupe - Igcocolo - Buga
RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD MLA-B-SMD RETAILER
ACTIVITY/PRACTICE - Tolorocan - Poblacion - Balud
peso per kilogram (meat)

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


Figure 5. Geographic Flow of Swine, Iloilo, 2002
16 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 96

Appendix 17c. SWINE (Slaughtered): Transportation costs


incurred by m arketing participants, by activity/practice,
Batangas, 2002

BATANGAS METRO MANILA


Batangas City Pasay City MARKETING ACTIVITY/PRACTICE RETAILER
Tanauan City Paranaque City
Cavite
Lemery Pasig City peso per kg.(meat)
Laguna
San Luis Marikina City
Bulacan
Agoncillo Antipolo City
Taal Quezon City Procurement 0.29

TOTAL 0.29

Appendix 17d. SWINE (Slaughtered): Transportation costs incurred by


m arketing participants, by activity/practice, Iloilo, 2002

MARKETING ACTIVITY/PRACTICE PLA-B-SMD RETAILER


LOMs / Slaughterhouse
peso per kg.(meat)

Procurement 0.75

Distribution 0.645

TOTAL 0.65 0.75

BATANGAS

- Lipa City
- Rosario Appendix 17e. SWINE (Slaughtered): Transportation costs
- Lemery Quezon incurred by m arketing participants, by activity/practice, Cebu,
Bulacan 2002
- Batangas City Nueva Ecija
- Bauan
- Padre Garcia MARKETING ACTIVITY/PRACTICE RETAILER

peso per kg. (meat)

Procurement 0.41

Figure 4. Geographic Flow of Swine in Batangas, 2002 TOTAL 0.41


97 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 15

Appendix 17f. SWINE (Slaughtered): Transportation costs incurred by m arketing


participants, by activity/practice, Davao, 2002

IRLA-LLD- BLA-
MARKETING ACTIVITY/PRACTICE B-MR
B-SMD B-MR
METRO MANILA
peso per kilogram (meat) Demand CABANATUAN NOVALICHES
Areas CITY NEPA Q-MART
Procurem ent 0.04

Distribution 0.21 0.31 0.40

TOTAL 0.21 0.31 0.44

CABANATUAN
CITY MAGSAYSAY
Appendix 18. SWINE (Slaughtered): Cost of material inputs incurred by marketing
PUBLIC MARKET PUBLIC MARKET
participants, by activity/practice item,
by province, Philippines, 2002

METRO NUEVA
ITEM PANGASINAN BATANGAS ILOILO CEBU DAVAO
MANILA ECIJA
Trading
peso per kilogram (meat)
Centers
PROCUREMENT
Chopping board 0.003

DISTRIBUTION
Plastic bag 0.12 0.17 0.29 0.14 0.061 0.05 0.52 ADUAS
Broom stick a/ 0.003 SLAUGHTERHOUSE
Cartons 0.042 0.10
Bulb/flourescent 0.002 0.29
Ice 0.13 0.88 0.22 0.31
Tray a/ 0.01 0.001
Basin a/ 0.002 0.02 0.001
Pail a/ 0.001 a/ 0.004
Plastic basket 0.002
SAN LEONARDO
Styrofoam 0.01 0.002 Supply SAN ANTONIO
Office supplies 0.019 0.10 Areas CABANATUAN CITY
Apron 0.01
Fan a/
Chopping board 0.01 0.01
Sacks 0.014
Razor 0.006
Blade 0.011 0.003
Mantle 0.002
Rag 0.005
Chair 0.001
Figure 3. Geographic Flow of Swine in Nueva Ecija, 2002
TOTAL 0.34 1.076 0.30 0.89 0.075 0.374 0.520
a/ less than 0.001
14 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 98

Appendix 18a. SWINE (Slaughtered): Costs of m aterial Inputs incurred by


m arketing participants, by item , Metro Manila, 2002
PANGASINAN ILOCOS SUR
LA UNION
ITEM IRLA-B-LMD IRLA-B-SMD RETAILER
- Dagupan City
Demand - Mangaldan
peso per kilogram (meat)
Areas - Urdaneta City
- Malasiqui
Distribution
- Calasiao -Villasis
BAGUIO CITY Razor 0.006
- San Carlos City
Blade 0.011
Tray a/
Basin a/
Ice 0.131
Pail a/
Mantel 0.002
PUBLIC MARKET Rag 0.005
- Dagupan City PUBLIC MARKET Carton 0.04
- Villasis - Urdaneta City Plastic bags 0.13 0.12 0.03
- Malasiqui Bulb/fluorescent lamp a/ 0.01
Trading Office supplies 0.02

Areas
TOTAL 0.13 0.32 0.05

LOM SLAUGHTERHOUSE
- Calasiao - Sta. Barbara
Appendix 18b. SWINE (Slaughtered): Costs of m aterial Inputs incurred by
m arketing participants, by item , Pangasinan, 2002

ITEM RAISER/ OPERATOR MLA-B-SMD

peso per kilogram (meat)

Distribution
Ice 0.880
PANGASINAN
Pail 0.001
Supply - Mangatarem San Carlos City Plastic bag 0.170
Areas - Malasiqui Calasiao Chopping board 0.012 0.007
- Villasis Blade 0.003
Plastic basket 0.002
Styrofoam 0.01
Plastic hose

TOTAL 0.012 1.069


Figure 2. Geographic Flow of Swine in Pangasinan, 2002
99 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 13

Appendix 18c. SWINE (Slaughtered): Costs of m aterial Inputs incurred by m arketing participants, by
From the LOMs, live hogs were distributed to traders within the province.
item , Nueva Ecija, 2002 Retailers sold their meat to consumers from the same town while others were
sold to other towns within Iloilo.

ITEM RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD MLA-B-SMD RETAILER One commercial hog farm shipped live hogs directly to Manila twice a month.
peso per kilogram (meat) Cebu

Distribution Raisers from several municipalities in Cebu were the major suppliers of swine
Plastic bag 0.116 0.229 0.175 0.484 0.410 0.331 in the province; other sources, however, were General Santos City, Davao and
Tray 0.002 0.007 0.006 Misamis Oriental in Mindanao; Bohol and Negros Oriental in Visayas; and
Basin 0.002 0.003
Masbate in Luzon.
Pail 0.001 a/
The supplies were brought to the LOMs situated in San Antonio, Bogo and
Brooms a/ Mantalongon where trading took place.
Chair 0.001
Demand areas within Cebu included Carcar, Carbon, Mandaue and Tabunok;
TOTAL 0.122 0.236 0.181 0.484 0.410 0.334 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.


Appendix 18d. SWINE (Slaughtered): Cost of m aterial inputs incurred
by m arketing participants, by item , Batangas, 2002 Davao

ITEM MLA-B-SMD RETAILER 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.
peso per kilogram (meat) Kidapawan and Saranggani were the identified sources of swine outside the
Distribution province.
Plastic bag 0.11 0.14
Broom stick 0.003
Metro Manila
Cartons 0.10
Bulb 0.29
Ice 0.06 0.49
Meat dealers and distributors procured live hogs outside Metro Manila,
Tray 0.001
specifically from nearby provinces like Batangas, Cavite, Quezon, Bulacan and
Basin 0.02 Nueva Ecija or as far as Cebu in Visayas or in Davao and General Santos City
Pail 0.004 in Mindanao.
Styrofoam 0.001 0.01
Office Supplies 0.11 0.01 Supplies coming from Luzon were brought directly to slaughterhouses in Rizal
Apron 0.01 0.02 and Metro Manila.
Fan a/
The stocks coming from Visayas and Mindanao were picked up by buyers from
TOTAL 0.29 1.09 the piers or in the stockyard in Nepomuceno, Tondo, Manila.
a/ less than 0.001
When slaughtered, meat were distributed in various wet markets, meat shops,
restaurants and supermarkets within Metro Manila.
12 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 100

Appendix 18e. SWINE (Live): Cost of m aterial inputs incurred by m arketing


Geographic Flow participants, by cost item , Iloilo, 2002

The sources and destination points of swine in the supply provinces are presented ITEM RAISER/ OPERATOR RETAILER
in Appendix 10. Figures 2-8 illustrate the flow of swine in the covered provinces.
peso per kilogram (meat)
Pangasinan
Distribution

Major suppliers of swine in Pangasinan were from the municipalities of Sacks 0.014
Mangatarem, Malasiqui, Villasis, San Carlos City and Calasiao; Plastic bag 0.062

Live hogs were brought to either LOM in Calasiao or to Slaughterhouse located TOTAL 0.014 0.062
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 Appendix 18f. SWINE(Slaughtered): Cost of m aterial inputs incurred by m arketing
participants, by item , Cebu, 2002
slaughtered in Sta. Barbara were distributed in Urdaneta City and Baguio City.
ITEM IRLA-B-SMD RETAILER
Nueva Ecija
peso per kilogram (meat)
Major sources of swine in the province were San Leonardo, San Antonio and PROCUREMENT
Cabanatuan City;
Chopping board 0.003

Swine intended for meat were brought to Aduas Slaughterhouse and then DISTRIBUTION
distributed to the public markets in Cabanatuan City and Magsaysay. Ice 0.31
Chopping board 0.01
Also, swine were sold alive to buyers from Manila particularly in Novaliches Basin 0.001
and Nepa Q-mart .
Plastic bag 0.05

Batangas
TOTAL 0.003 0.371

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.
Appendix 18g. SWINE (Slaughtered): Costs of m aterial Inputs incurred by m arketing participants,
Identified trading centers were the LOMs and the slaughterhouses located by item , Davao, 2002
within Batangas.
ITEM PLA-LLD-B-MR BLA-B-MR B-MR
These supplies were distributed to the demand areas within the province,
Metro Manila, Cavite, Laguna and Bulacan. peso per kilogram (meat)

Distribution
Iloilo
Plastic bag 0.43 0.71 0.43

Swine in Iloilo came from Janiuay, Leon, Guimbal and other municipalities
within the province. There was no supply coming outside the province. Live TOTAL 0.430 0.71 0.43
animals were assembled at the LOMs.
101 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 11

Appendix 19. SWINE(Slaughtered): Other operating costs incurred by respondents, Mode of Delivery. The mode of delivery for distribution of the product depends on
by item , by province, Philippines, 2002 the type of buyer and their business location.

Majority of the respondents let their buyers pick-up their procured live or
ITEM
METRO
PANGASINAN
NUEVA
BATANGAS ILOILO CEBU DAVAO slaughtered animals from their location.
MANILA ECIJA
Some of them delivered their products to the buyers.
peso per kilogram (meat)
A few practiced both manners in distributing their products.
Business permit 0.239 0.040 0.0145 0.07 0.005 0.02
Barangay permit c/ 0.001
Market fee b/ 0.05 0.06 0.04 Table 11. SWINE: Distribution of respondents, by m anner of distribution, by province, 2002
Stall rental 0.717 0.180 0.05 0.03 0.114 0.15 0.09
DAVAO
Weighing scale rental 0.013 MANNER OF METRO PANGA- NUEVA DAVAO
BATANGAS ILOILO CEBU DEL TOTAL
Inspection fee 0.786 0.254 DISTRIBUTION MANILA SINAN ECIJA CITY
SUR
Coral fee
Electricity 0.183 0.055 0.03 0.15 0.035 0.12 0.17
Picked- up 31 41 41 46 25 34 19 6 243
Calibration of w eighing scale 0.002 0.016 a/ a/
Delivered 4 - 2 3 8 7 2 2 28
Garbage/Sanitary permit 0.314 0.002 0.05
Water 0.078 0.004 0.15 0.03 0.02 0.15
Both 3 - 1 - 3 2 - - 9
Gas and oil 0.97 0.105 0.29 0.238 0.01
TOTAL 38 41 44 49 36 43 21 8 280
Meals and beverages d/ 0.061 0.25 0.13 0.116 0.23
Post mortem fee 0.06 0.100 0.68
Utility fee 0.11
Miscellaneous fee 0.19
Mode of Payment. The mode of payment in selling live and slaughtered animals
Cellcard 0.12 0.011 0.02
depends on the agreement of the buyer and the trader.
Wastage/Shrinkage 2.00 7.17 12.72 0.19 6.90
Most of the respondents (197) received payment for their stocks in cash from
Others e/ 0.03
their buyers.
Telephone 0.04 0.007 0.03
Entrance/exit fee 0.176 Others received delayed payment/credit (25), both in cash or credit (49) and
Repair and maintenance 0.033 0.185 consignment (8) bases.
Interest on loan 0.227
Travel permit 0.06 One livestock distributor from Iloilo was paid through the bank.
Residence certificate 0.02
Rights 0.76
Security service 0.12 Table 12. SWINE: Distribution of respondents, by term s of paym ent, by province, 2002
Janitorial service 0.357
DAVAO
METRO PANGA- NUEVA DAVAO
TERMS OF PAYMENT BATANGAS ILOILO CEBU DEL TOTAL
TOTAL 6.904 7.47 13.38 1.46 1.234 8.24 0.50 MANILA SINAN ECIJA CITY
SUR

a/ less than o.oo1


Cash 18 35 41 28 31 27 15 2 197
b/ includes ticket and cash ticket
c/ includes local tax Consignment - - - 4 2 - 1 1 8
d/ includes cigarrettes, rice supply Delayed Payment/Credit 11 - 2 3 1 3 2 3 25
e/ includes tong, revolutionary tax
Combination 9 6 1 14 1 13 3 2 49
Bank to Bank - - - - 1 - - - 1

TOTAL 38 41 44 49 36 43 21 8 280
10 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 102

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


the sources.
Appendix 19a. SWINE (Slaughtered): Other operating costs incurred by m arketing
Twenty five percent (25%) had their supplies delivered at their business participants, by item , Metro Manila, 2002
location.
ITEM IRLA-B-LMD IRLA-B-SMD RETAILER
Five of them reported that they practiced both manners in procuring live hogs.
peso per kilogram (meat)

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 Business permit 0.239
arrangement depends on the degree of trading relationship between the farmer and Sanitary permit 0.299
trader. Residence certificate 0.016
Rights 0.761
Table 10. SWINE:Distribution of respondents, by m ode of paym ent in buying stocks, by province, 2002 Telephone 0.033 0.026 0.051
Water 0.012 0.042 0.100
DAVAO Electricity 0.050 0.157 0.366
METRO PANGA- NUEVA DAVAO
MODE OF PAYMENT BATANGAS ILOILO CEBU DEL TOTAL
MANILA SINAN ECIJA CITY Weighing fee
SUR
Slaughterhouse fee

Cash 14 7 14 10 10 13 9 5 82 Slaughter fee


Consignment 6 - - 3 1 - - 2 12 Meat inspection fee 0.786
Delayed Payment - 1 1 1 - 8 - - 11 Stall fee 0.947 0.826 0.884
Combination 18 3 - 5 1 2 - - 29 Wastage 2.000
Gasoline 0.223 0.567 2.105
TOTAL 38 11 15 19 12 23 9 7 134
Meals 0.015 0.128 0.316
Garbage collection fee 0.015
Stall repair 0.003
Weighing scale calibration 0.002
Majority of the trader-respondents (82 out of 134) paid their swine suppliers in
Repair and maintenance 0.056 0.005
cash upon delivery.
Interest on loan 0.227

Twelve of them paid in consignment basis and 29, a combination of both cash Security services 0.120
and consignment. Janitorial services 0.357

There were 11 respondents who have agreed to defer payment with their TOTAL 1.280 3.802 6.652
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 buyer
and seller.
103 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 9

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


Appendix 19b. SWINE (Slaughtered): Other operating costs incurred by by province, 2002
m arketing participants, by item , Pangasinan, 2002
PERCENTAGE
SHARE TO METRO PANGA- NUEVA DAVAO DAVAO
ITEM MLA-B-SMD BATANGAS ILOILO CEBU TOTAL PERCENT
TOTAL MANILA SINAN ECIJA DEL SUR CITY
peso per kg (meat) BUSINESS

Business permit/license 0.038 1 – 20 - 1 - 9 - 4 - - 14 5


Stall rentals 0.177 21 - 40 - 2 1 1 4 4 1 - 13 5
Weighing scale calibration 0.016 41 - 60 1 1 2 1 5 7 3 1 21 8
Water 0.004 61 - 80 2 - 5 1 7 4 - - 19 7
Telephone 0.007 81 - 100 35 37 36 37 20 24 17 7 213 76
Electricity 0.055
Shrinkage/w astage 7.170 TOTAL 38 41 44 49 36 43 21 8 280 100

TOTAL 7.467
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
Appendix 19c. SWINE (Slaughtered): Other operating costs incurred by m arketing participants, practices and functions and the corresponding marketing costs are described below.
by item , Nueva Ecija, 2002
Procurement

ITEM
RLA-B- RLA-B- PLA-B- PLA-B- MLA-B-
RETAILER Traders procured live animals from the producing barangays within the province
LMD SMD LMD SMD SMD
through the Livestock “Oksyon” Markets.
peso per kilogram (meat)
Manner of Procurement. Table 9 shows that in supply procurement, traders practice
either pick-up or delivery.
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
Table 9. SWINE:Distribution of respondents, by m anner of procurem ent, by province, 2002
Stall rental 0.028 0.062 0.049 0.063
Market fee 0.021 0.013 0.139 0.06 0.028 DAVAO
MANNER OF METRO PANGA- NUEVA DAVAO
Weighing scale rental 0.013 0.04 BATANGAS ILOILO CEBU DEL TOTAL
PROCUREMENT MANILA SINAN ECIJA CITY
Gas and oil 0.09 0.63 0.12 SUR

Meals and beverages 0.21 0.312 0.092 0.35 0.312


Picked- up 22 11 15 15 8 10 7 7 95
Wastage 13.71 13.50 10.71 13.83 12.48 12.09
Delivered 16 - - 3 3 10 2 - 34
Both - - - 1 1 3 - - 5
TOTAL 14.130 14.585 10.966 15.074 12.550 12.599
TOTAL 38 11 15 19 12 23 9 7 134
8 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 104

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


m arketing participants, by item , Batangas, 2002
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 ITEM IRLA-B- LMD MLA-B- SMD RETAILER
trading activities. Table 7 describes the respondents by length of experience in swine
raising/trading. peso per kilogram (meat)

Table 7. SWINE: Distribution of respondents, by length of experience, by province, 2002 Business permit 0.004 0.12
Market fee 0.02 0.08
LENGTH OF Stall rental 0.02 0.04
METRO PANGA- NUEVA DAVAO DAVAO
EXPERIENCE BATANGAS ILOILO CEBU TOTAL PERCENT Electricity 0.02 0.18
MANILA SINAN ECIJA DEL SUR CITY
(YEARS) Calibration of w eighing scale a/
Garbage/Sanitary permit a/ 0.01
less than 5 3 9 12 8 7 9 9 2 59 21 Water 0.03
5 – 10 18 14 16 14 11 17 9 1 100 36 Gas and Oil 0.38 0.06
11 – 15 5 9 4 8 2 3 - 1 32 11 Meals and beverages 0.05 0.39
Post Mortem 0.06
16 – 20 6 4 8 2 7 4 1 1 33 12
Utility fee 0.11
more than 20 6 5 4 17 9 10 2 3 56 20
Miscellaneous fee 0.19
Cellcard 0.06
TOTAL 38 41 44 49 36 43 21 8 280 100
Wastage 0.03 0.25 0.29
Others b/ 0.02

TOTAL 0.54 0.31 1.56


Fifty-nine or 21% of the total respondents said that they were in the business for
less than 5 years. a/ less than 0.001

Thirty six percent (36%) were already in swine trading for 5 to 10 years.
Appendix 19e. SWINE (Live): Other operating costs incurred by m arketing
Thirty-two respondents were in swine raising/marketing business for 11 to 20 participants, by item , Iloilo, 2002
years.

Twenty percent (20%) of them had been engaged in swine raising and trading for ITEM RLA-B-SMD PLA-B-SMD RETAILER
more than 20 years.
peso per kilogram (meat)
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 Business permit 0.001 0.006
the estimation of the costs incurred in marketing of swine. Table below showed that 76% Cellcard 0.011
of the respondents raised/traded swine as the largest portion of their business. Seven Repair and maintenance 0.185
percent handled about 61-80% of swine while the rest had 20-60% of swine in their Meals and beverages 0.095 1.160 0.058
business. 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


105 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 7

Appendix 19f. SWINE (Slaughtered): Other operating costs incurred by m arketing Nature of Capitalization. The amount and nature of the source of working capital
participants, by item , Cebu, 2002 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.
ITEM RLA-B-SMD PLA-B-SMD RETAILER
Out of 280 respondents, 92% operated their business using their own capital.
peso per kilogram (meat)
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
Business permit 0.02 0.002 0.05
Barangay permit 0.001
financial capital at all.
Market fee 0.04
Stall rental 0.03 0.27 Table 5. SWINE: Distribution of respondents by nature of capitalization, by province, 2002
Electricity 0.11 0.14
Telephone 0.025 0.035 NATURE OF METRO PANGA- NUEVA DAVAO DAVAO
BATANGAS ILOILO CEBU TOTAL PERCENT
Garbage/Sanitary permit 0.05 CAPITALIZATION MANILA SINAN ECIJA DEL SUR CITY
Water 0.02 0.03
Wastage 6.95 4.69 9.11 Self-financed/ow ned 36 40 43 42 33 39 16 8 257 92
Meals/Beverages 0.06 0.41
Sharing - - - 6 1 1 - - 8 3
Post mortem (inspection fee) 0.81 0.56
Borrow ed 2 1 1 1 1 2 5 - 13 5
No Capital - - - - 1 - - - 1 a/
TOTAL 7.97 4.79 10.66 Corporation - - - - - 1 - - 1 a/

TOTAL 38 41 44 49 36 43 21 8 280 100

a/ less than one percent

Business Ownership. Majority (265 or 95%) of the respondents operated their


Appendix 19g. SWINE (Live): Other operating costs incurred by m arketing participants, by
item , Davao, 2002
own business as single proprietors. Twelve were into a partnership while 3 respondents
were under a corporation (Table 6).
IRLA-LLD- PLA-LLD-
ITEM BLA-B-MR B-MR
B-SMD B-MR
peso per kilogram (meat) Table 6. SWINE: Distribution of respondents by type of business ow nership, by province, 2002

Cell card 0.01 0.04 BUSINESS METRO PANGA- NUEVA DAVAO DAVAO
Travel permit 0.06 BATANGAS ILOILO CEBU TOTAL PERCENT
OWNERSHIP MANILA SINAN ECIJA DEL SUR CITY
Water 0.25 0.06
Stall rental 0.22 0.05
Single
Electricity 0.40 0.12 proprietorship 36 39 43 47 31 40 21 8 265 94
Weighing scale calibration a/ a/
Partnership 2 2 1 2 4 1 - - 12 5
Gasoline 0.005
Corporation - - - - 1 2 - - 3 1

TOTAL 0.01 0.065 0.87 0.27


TOTAL 38 41 44 49 36 43 21 8 280 100
6 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 106

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


Profile of Respondents by m aterials/equipm ent/facilities used, by province, Philippines, 2002

The study determined the basic characteristics of the respondents which included METRO NUEVA
the type of farm, nature of capitalization, type of business ownership, length of experience ITEM
MANILA
PANGASINAN
ECIJA
BATANGAS ILOILO CEBU DAVAO
and percentage share of swine in their total production/business.
peso per kilogram (meat)
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 Material Used
raiser–respondents by type of farm is found in Table 3. Slicing tools 0.014 0.006 0.004 0.01 0.006 0.01 0.003
Chopping board 0.006 0.003 0.002
Hook/Meat hanger 0.002 0.001 a/ 0.001 0.001
Table 3. SWINE: Distribution of raiser-respondents
"Hasaan" (steel) 0.004 0.001 a/
by type of farm, by province, 2002
Ice bucket/box 0.005 0.001
Plyw ood 0.01
PROVINCE BACKYARD COMMERCIAL TOTAL Pail 0.001 0.002
Tray b/ 0.002 0.004
Pangasinan 19 11 30
Nueva Ecija 19 10 29
Equipm ent
Batangas 22 8 30
Weighing Scale d/ 0.019 0.040 0.005 0.01 0.008 0.01 0.02
Iloilo 20 4 24
Electric/exhaust fan c/ 0.002 0.003 0.003 0.01
Cebu 15 5 20
Chair a/ 0.05 0.204 0.001
Davao del Sur 10 2 12
Calculator 0.002 0.001 0.002 a/ 0.009
Davao City - 1 1
Freezer/Refrigerator 0.055 0.020 0.043 0.01
Total 105 41 146 Meat Grinder 0.024 0.050 0.002 0.001 0.02 0.02
Cash box (stainless) 0.001 0.02
Cellphone 0.01 0.009 0.004
Respondents’ Classification. The raiser-respondents were classified based on Table 0.003 a/ 0.026
their role in the business operations. One hundred of them were raisers or owners of the Gun
farm; 16 were caretakers, 24 were relatives of the raiser and the others were employees in Sharpener 0.008
Telephone 0.005
the farm. Table 4 shows the distribution of the respondents by classification.
Facilities
Stall 1.436
Table 4. SWINE: Distribution of raiser-respondents by classification, by province, 2002
Transportation
RESPONDENT'S PANGA- NUEVA DAVAO DAVAO Truck 0.14 0.068
BATANGAS ILOILO CEBU TOTAL PERCENT
CLASSIFICATION SINAN ECIJA SUR CITY
Tricycle/sidecar 0.101
Jeep 0.025 0.37 a/
Raiser/Owner 15 27 20 19 8 11 - 100 68 Trailer 0.171
Caretaker 3 2 7 2 2 - - 16 11
Labor 1.802 0.68 0.83 0.35 0.54
Partner - - 1 - - - - 1 1
Both a/ - - 2 - - - - 2 1 TOTAL 3.514 0.850 1.292 0.780 0.232 0.581 0.093
Secretary - - - 1 - - - 1 1 a/ less than 0.001
Farm Administrator - - - - - 1 - 1 1 b/ aluminum and plastic
Finance Manager - - - - - - 1 1 1 c/ includes exhaust fan
d/ includes all types of weighing scale
Others b/ 12 - 2 10 - - 24 16

TOTAL 30 29 30 24 20 12 1 146 100


a/ both raiser-operator and a caretaker
b/ wife, son and daughter and relatives of raiser
107 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 5

Appendix 20a. SWINE (Live): Imputed costs of labor and depreciation incurred by
7. Agent
marketing participants, by material/facilities/equipment used, Metro Manila, 2002
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
ITEM IRLA-B-LMD IRLA-B-SMD RETAILER salary, commission or sharing basis.
peso per kilogram (meat) 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
Materials provides he receives as payment the difference between the price at which
Hooks 0.001 a/ 0.005 he is able to sell the animals and the price agreed with the raiser; also
Chopping board 0.002 0.010 0.004 includes representatives of shippers who are either paid in commission basis
Knife 0.003 0.003 0.013
or in fixed salary and who are tasked with procuring animals for shipment to
various destinations.
Steel 0.004 a/ 0.009
Bolo 0.001 0.011 0.008 8. Institutional Buyer – includes restaurants, eateries, canteens, hospitals, etc.
Ice box 0.005 0.006
9. Meat Retailer – sells meat to consumers or institutional buyers.
Table 0.003
Chair a/
Table 2 shows the number of respondents by type of marketing participants.
Equipment
Thirty-two (32) of the trader-respondents were buyers and sellers of live
Weighing scale 0.015 0.010 0.032
animals (livestock assembler- distributors); 36 were livestock assemblers-
Grinding machine 0.029 0.022 butchers-meat distributors who either operated on a small, medium or large
Calculator a/ 0.001 0.004 scale; 6 were agents and 60 were retailers.
Freezer 0.025 0.010
Electric/exhaust fan 0.002 0.001 0.005
Refrigerator 0.028
Table 2. SWINE: Distribution of respondents, by type of m arketing participants,
Facilities by province, 2002

Stall 1.436
LIVESTOCK
LIVESTOCK
Transportation RAISER/ ASSEMBLER-
PROVINCE ASSEMBLER- AGENT RETAILER TOTAL PERCENT
OPERATOR BUTCHER-MEAT
Truck 0.074 0.120 0.214 DISTRIBUTOR
DISTRIBUTOR

Labor 0.415 1.932


Metro Manila 1 10 27 38 14
Pangasinan 30 5 6 41 15
TOTAL 0.102 2.097 2.264 Nueva Ecija 29 2 8 3 2 44 16
Batangas 30 5 2 12 49 18
Iloilo 24 4 3 1 4 36 13
Cebu 20 5 5 13 43 15
Davao del Sur 12 6 1 2 21 8
Davao City 1 4 1 2 8 3

TOTAL 146 32 36 6 60 280 100


4 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 108

Appendix 20b. SWINE ( Slaughtered): Imputed costs of labor and depreciation incurred by
marketing participants, by material/facilities/equipment used, Pangasinan, 2002
Types of traders. Trader-respondents were classified based on their sphere of
influence in performing their procurement and distribution activities. This study has
ITEM RAISER/ OPERATOR PLA-B-SMD MLA-B-SMD
identified six types of traders: livestock assemblers; livestock distributors; livestock
assembler-livestock distributors; livestock assembler-butcher-meat distributors; peso per kilogram (meat)
agent and retailers. These types of traders were defined as follows:
Materials
Bolo 0.01 0.004
1. Livestock Assembler – procures live animals from raisers or LOMs Knife 0.01 0.002
Meat hanger 0.001
a) Barangay Livestock Assembler (BLA) – procures from one barangay or
one LOM or pooling place Equipment
Weighing scale a/ 0.08 0.01
b) Municipal Livestock Assembler (MLA) - procures from 2 or more Grinding machine 0.07 0.03
barangays or LOM or pooling place Freezer 0.08 0.01
Electric/exhaust fan 0.003
c) Provincial Livestock Assembler (PLA) – procures from 2 or more LOMs or
Chairs 0.05
2 or more municipalities within the province
Tables a/
d) Regional Livestock Assembler (RLA) – procures from 2 or more provinces 0.87 0.49
Labor
within the region
TOTAL 0.07 1.10 0.54
e) Interregional Livestock Assembler (IRLA) – procures from provinces
a/ include all kind of weighing scale
outside the region

2. Livestock Distributor – sells live animals Appendix 20c. SWINE (Slaughtered): Imputed costs of labor and depreciation incurred by marketing
participants, by material/facilities/equipment used, Nueva Ecija, 2002
a) Small Livestock Distributor (SLD) – sells in the same or another LOM,
pooling place or municipality
ITEM RLA-B-LMD RLA-B-SMD PLA-B-LMD PLA-B-SMD MLA-B-SMD RETAILER
b) Medium Livestock Distributor (MLD) – sells in 2 or more LOMs, pooling
places or municipalities peso per kilogram (meat)

c) Large Livestock Distributor (LLD) – sells to areas outside the province but Materials
may sell also within the province Knife 0.001 0.001 0.002 0.004 0.008 0.006
Meat hanger a/
3. Livestock Assembler-Livestock Distributor – procures and sells live animals. Chopping board 0.002 0.001 0.003 0.004 0.007 0.003
Several combinations were identified in the study: Tray 0.002
Pail 0.001 0.002 0.001 0.001
a) BLA-SLD; MLA-SLD; PLA-SLD; RLA-SLD; IRLA-SLD Equipment
b) BLA-MLD;MLA-MLD; PLA-MLD; RLA-MLD; IRLA-MLD Weighing scale a/ 0.001 0.015 0.012 0.010
c) BLA-LLD; MLA-LLD; PLA-LLD; RLA-LLD; IRLA-LLD Calculator 0.001 a/ 0.001
Freezer 0.022 0.063
4. Butcher-Meat Distributor (B-MD) - procures live animals; may slaughter animal Chairs 0.001 0.001 0.813 0.001
himself or through an abattoir; sells meat to retailers. Electric fan 0.003
Transportation
5. Supplier from Outside the Province (SOP) – trader or raiser based in areas Trailer 0.171
outside the province who may deliver live animals to the province or sell to buyers Jeep 0.035 0.020
who approach them. Labor 0.410 0.230 1.000 2.510

6. Buyer from Outside the Province (BOP) – buys live animals from supply areas TOTAL 0.062 0.413 0.271 1.023 1.000 2.600
within the province or from traders who ship to other provinces. a/ less than 0.001
109 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 3

Appendix 20d. SWINE (Slaughtered): Imputed cost of depreciation/labor by marketing Research Coverage
participants, by materials/facilities and equipment used, Batangas, 2002
The study covered key supply and demand areas in Luzon, Visayas and Mindanao.
ITEM MLA-B-SMD RETAILER
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
peso per kilogram (meat) areas.
Material Used The tracing approach started from the producing barangays of the identified
Knife 0.002 0.01
municipalities by province. The top two (2) producing barangays were chosen to represent
Chopping board 0.001 0.002
Hook 0.001 each municipality.
"Hasaan" (steel) 0.001 0.001
From the farm level, the traders were traced based on the identification of raiser-
Equipment respondents. Most of the traders are located in the Livestock “Oksyon” Markets (LOMs).
Weighing Scale 0.02 0.02
The study then moved to the next point of sale consisting of the retail markets within the
Electric fan 0.002 0.01
Chair 0.001 province.
Calculator 0.002
Freezer 0.01 Selection of Sample Respondents
Meat Grinder 0.002
Cash box (stainless) 0.001 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
Labor 0.34 0.96
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.
TOTAL 0.37 1.02

III. Discussion of Results


Appendix 20e. SWINE (Slaughtered): Im puted costs of labor and depreciation
incurred by m arketing participants, by item , Iloilo, 2002 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.
ITEM RLA-B-SMD PLA-B-SMD RETAILER
Part II presents the marketing costs components.
peso per kilogram (meat)
Distribution of Respondents. There were two groups of respondents for the
Materials
study: raisers/operators and traders. A total of 146 swine raisers was interviewed from the
Butcher's knife/knives 0.006 producing barangays/municipalities. At the trading center level, a total of 134 respondents
was interviewed (Table 1).
Equipm ent
Cellphone 0.009 T ab le 1 . S W IN E : D is trib u tio n o f re s p o n d e n ts , b y typ e
Calculator a/ a n d b y p ro v in c e , 2 0 0 2
Weighing scale a/ 0.008
Telephone 0.005 NUM BER O F RESPO NDENTS
Grinder 0.001 P R O V IN C E TO TAL
F a rm e r/R a is e r T ra d e r
Table 0.026
Sharpener 0.008 M etro M a n ila - 38 38
P a n ga s in a n 30 11 41
Transportation N u ev a E c ija 29 15 44
Truck 0.068 B a ta n g a s 30 19 49
Tricycle/sidecar 0.101 Ilo ilo 24 12 36
Jeep a/ C eb u 20 23 43
D a v ao d el S u r 12 9 21
D a v ao C ity 1 7 8
TOTAL 0.068 0.115 0.049
TO TAL 146 134 280
2 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 110

Appendix 20f. SWINE (Slaughtered): Im puted cost of


b) To compare marketing costs structures across trading centers and trading seasons; depreciation by m arketing participants, by m aterials/facilities
and and equipm ent used, Cebu, 2002

c) To establish benchmark data on the average costs of the various marketing ITEM RETAILER
components.
peso per kg. (meat)

Scope and Limitations


Material Used
Slicing tools a/ 0.01
The study traced the flow and the marketing channels for swine starting from the Ice bucket 0.001
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 Equipm ent
provinces, and none from those produced in the other supply provinces which contributed Weighing Scale 0.01
significant quantity in the demand province. Meat Grinder 0.02

Labor 0.54
II. Methodology
TOTAL 0.58

The study employed the tracing approach starting from the supply level (production) a/ includes knife, bolo, hasaan
to the demand (consumption) level (Figure 1).

Appendix 20g. SWINE (Slaughtered): Imputed costs of labor and depreciation


incurred by marketing participants, by material/facilities/equipment used, Davao,
2002
Supply Supply Supply
Area 1 Area 2 Area 3 IRLA-LLD- BLA-B
ITEM B-MR
B-SMD MR
peso per kilogram (meat)

EQUIPMENT
Cellular phone 0.001 0.030
Weighing scale 0.040 0.020
Hook 0.001 a/
Trading
Center Calculator 0.020 0.010
Aluminum tray 0.004
Cash box 0.020
Meat grinder 0.020 0.020

MATERIALS
Knife 0.003

Demand Plywood 0.005


Areas Hasaan (steel) a/
Pail 0.002

Figure 1. Tracing Approach TOTAL 0.001 0.11 0.08


111 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 1

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

Peso per kilogram Peso per head


MARKETING COSTS STRUCTURE FOR SWINE
(livew eight) of 80 kgs
Raisers:

Selling price at farmgate 51.00 4080.00 I. Introduction


Total marketing costs 5.98 478.40
Statistical information on production and marketing costs of agricultural
Interregional Livestock Assembler - Large Livestock Distributor (IRLA-LLD):
commodities are important inputs to policy makers particularly in the determination of the
Selling price 60.00 4800.00 type of assistance to be provided to the small and marginal farmers. In the past, data
Total marketing costs 7.21 576.80 collection efforts have been focused on production costs. In more recent years, increasing
Margin = 60.00 – 51.00 – 7.21 1.79 143.20 attention has been given to marketing costs and margins in response to the growing
demand for these information.
Retailer:

Selling price 105.00 5880.00*


For the past two years, the Bureau of Agricultural Statistics (BAS) has conducted
Value of by-products (14.33% x P75)** 10.75 860.00
marketing studies for selected high value commercial crops with support from the High
Total marketing costs 6.48 518.40 Value Commercial Crops (HVCC) Program of the Department of Agriculture. These
Net costs of by-products (10.75 - 6.48) 4.27 341.60 studies were extended to the livestock and poultry products to address the information
Margin = [73.50 + 4.27 – 60.00] 17.77 1421.60 needs in the sub-sector.

* Recovery rate = 70% In particular, the BAS conducted a study which identifies and measures the various
** Offals only at average price of P75/kg
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
Appendix 21b. Marketing Costs and Margins for Sw ine in Nueva Ecija, 2002 intended for policy makers, analysts, consumers as well as investors in the livestock
industry.
Peso per kilogram Peso per head
(livew eight) of 80 kgs
The Commodity and Its Economic Importance
Raisers:

Selling price at farmgate 65.00 5200.00 Swine, otherwise known as hog, is one of the domesticated members of the
Total marketing costs 0.59 47.20 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
Provincial Livestock Assembler - Butcher-Large M eat Distributor (PLA-B-LM D): boar, the female, sow, and the young, pig (www.hyperdictionary.com).
Selling price 95.00 5320.00
Swine are valuable for their flesh which can be prepared as bacon, ham and pork
Value of by-products (14.33% x P75)** 10.75 860.00
Total marketing costs 8.80 704.00
and for the fat or lard. They also provide many products like leather for gloves, footballs,
Net costs of by-products (10.75 - 8.80) 1.95 156.00 and other articles, and for bristles for brushes. Hogs are commonly grouped as meat-type
Margin = 66.50 + 1.95 – 65.00 3.45 276.00 or lard-type.

Retailer: Objectives
Selling price 105.00 5880.00*
Total marketing costs 9.36 524.16 The main objectives of the study are:
Margin = [105.00 – 95.00 - 9.36] 0.64 35.84
a) To determine the marketing costs structure by type of marketing participants in
* Recovery rate = 70% major swine producing areas and trading centers;
** Offals only at average price of P75/kg
Marketing Costs Structure for Swine 112

Appendix 21c. Marketing Costs and Margins for Sw ine in Batangas, 2002

Peso per kilogram Peso per head


(livew eight) of 80 kgs
Raisers:

Selling price at farmgate 51.00 4080.00


Total marketing costs 0.40 32.00

Provincial Livestock Assembler - Large Livestock Distributor (PLA-LLD):

Selling price 66.00 5280.00


Total marketing costs 0.91 72.80
Margin = 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)** 10.75 860.00
Total marketing costs 1.47 117.60
Net costs of by-products (10.75 - 1.47) 9.28 742.40
Margin = [77.00 + 9.28 – 66.00] 20.28 1622.40

* Recovery rate = 70%


** Offals only at average price of P75/kg

Appendix 21d. Marketing Costs and Margins for Sw ine in Iloilo, 2002

Peso per kilogram Peso per head


(livew eight) of 80 kgs

Raisers:

Selling price at farmgate 42.25 3380.00


Total 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)** 10.75 860.00
Total marketing costs 0.99 79.20
Net costs of by-products (10.75 - 0.99) 9.76 780.80
Margin = (42.00 + 9.76 – 42.25) 9.51 760.80

Retailers:

Selling price 90.00 5040.00


Total marketing costs 1.68 94.08
Margin = (90.00 – 60.00 – 1.68) 28.32 1585.92

* Recovery rate = 70%


** Offals only at average price of P75/kg
113 Marketing Costs Structure for Swine Marketing Costs Structure for Swine vi

LIST OF FIGURES
Appendix 21e. Marketing Costs and Margins for Sw ine in Iloilo, 2002

Peso per kilogram Peso per head


(livew eight) of 80 kgs Figure no. Page no.

Raisers:
23. Marketing Costs and Margins for Hogs, by Channel,
Selling price at farmgate 66.00 5280.00 Nueva Ecija, 2002 52
Total marketing costs 8.68 694.40
24. Marketing Costs and Margins for Hogs, by Channel,
Interregional Livestock Assembler-Butcher-Large M eat Distributor (IRLA-B-LM D):
Batangas, 2002 53
Selling price 88.00 4928.00*
Value of by-products (14.33% x P75)** 10.75 860.00 25. Marketing Costs and Margins for Hogs, by Channel,
Total marketing costs 5.42 433.60 Iloilo, 2002 54
Net costs of by-products (10.75 - 5.42) 5.33 426.40
Margin = (61.60 - 66.00 +5.33) 0.93 74.40 26. Marketing Costs and Margins for Commercial Hog Farm,
Iloilo, 2002 55
Retailers:
27. Marketing Costs and Margins by Channel for Swine,
Selling price 110.00 6160.00
Total marketing costs 3.80 212.80
Cebu, 2002 56
Margin = (110.00 – 88.00 – 3.80) 18.20 1019.20
28. Marketing Costs and Margins by Channel for Swine,
* Recovery rate = 70% Davao, 2002 57
** Offals only at average price of P75/kg
29. Marketing Costs and Margins by Channel for Swine,
Davao, 2002 58
Appendix 21f. Marketing Costs and Margins for Sw ine in Cebu, 2002
30. Marketing Costs and Margins by Channel for Swine,
Peso per kilogram Peso per head
(livew eight) of 80 kgs
Metro Manila, 2002 59
Raisers:

Selling price at farmgate 56.00 4480.00


Total marketing costs 0.59 47.20

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

Selling price 65.00 5200.00


Total marketing costs 0.43 34.40
Margin = (65.00 – 56.00 – 0.43) 8.57 685.60

Stockyard/Slaughterhouse:

Selling price 83.00 6640.00


Total 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)** 10.75 860.00
Total marketing costs 2.09 167.20
Net costs of by-products (10.75 – 2.09) 8.66 692.80
Margin = [77.00 + 8.66 - 83.00] 2.66 212.80

* Recovery rate = 70%


** Offals only at average price of P75/kg
v Marketing Costs Structure for Swine Marketing Costs Structure for Swine 114

LIST OF FIGURES
Appendix 21g. Marketing Costs and Margins for Sw ine in Davao, 2002

Peso per kilogram Peso per head


Figure no. Page no. (livew eight) of 200 kgs

Raisers:
1. Tracing Approach 2
Selling price at farmgate 30.00 6000.00
2. Geographic Flow of Swine in Pangasinan, 2002 14
Provincial Livestock Assembler-Small Livestock Distributor (PLA-SLD):
3. Geographic Flow of Swine in Nueva Ecija, 2002 15
Selling price 35.00 7000.00
4. Geographic Flow of Swine in Batangas, 2002 16 Total marketing costs 1.72 344.00
Margin = (35.00 – 30.00 – 1.72) 3.28 656.00
5. Geographic Flow of Swine in Iloilo, 2002 17
Retailers:
6. Geographic Flow of Swine in Cebu, 2002 18
Selling price 95.00 13300.00*
7. Geographic Flow of Swine in Davao, 2002 19 Value of by-products (14.33% x P75) 10.75 860.00
Total marketing costs 2.21 442.00
8. Geographic Flow of Swine in Metro Manila, 2002 20 Net costs of by-products (10.75 - 2.21) 8.54 1708.00
Margin = [66.50 + 8.54 – 35.00] 40.04 8008.00
9. Marketing Channels for Swine in Pangasinan, 2002 23
* Recovery rate = 70%
10. Marketing Channels for Swine in Nueva Ecija, 2002 24 ** Offals only at average price of P75/kg

11. Marketing Channels for Swine in Batangas, 2002 25


12. Marketing Channels for Swine in Iloilo, 2002 26
Appendix 21h. Marketing Costs and Margins for Sw ine in Davao, 2002
13. Marketing Channels for Swine in Cebu, 2002 27 Peso per kilogram Peso per head
(livew eight) of 80 kgs
14. Marketing Channels for Swine in Davao, 2002 28
Raisers:
15. Marketing Channels for Swine in Metro Manila, 2002 29
Selling price at farmgate 50.00 4000.00
16. Average Marketing Costs for Swine, by destination in
Interregional Livestock Assembler- Large Livestock Distributor (IRLA-LLD):
Pangasinan, 2002 39
Selling price 56.00 4480.00
17. Average Marketing Costs for Swine, by destination in Total marketing costs 4.56 364.80
Nueva Ecija, 2002 40 Margin = (56.00 – 50.00 – 4.56) 1.44 115.20

18. Average Marketing Costs for Swine, by destination in Butcher- Small M eat Distributor (B-SM D):
Batangas, 2002 41 Selling price 69.00 3864.00*
Value of by-products (14.33% x P75)** 10.75 860.00
19. Average Marketing Costs for Swine, by destination in Total marketing costs 1.32 105.60
Iloilo, 2002 42 Net costs of by-products (10.75 - 1.32) 9.43 754.40
Margin = [48.30 + 9.43 – 56.00] 1.73 138.40
20. Average Marketing Costs for Swine, by destination in
Cebu, 2002 43 Retailers:

21. Average Marketing Costs for Swine, by destination in Selling price 95.00 5320.00
Total marketing costs 2.11 118.16
Davao, 2002 44 Margin = [95.00 - 2.11 – 69.00] 23.89 1337.84
22. Marketing Costs and Margins for Hogs, by Channel, * Recovery rate = 70%
Pangasinan, 2002 51 ** Offals only at average price of P75/kg
115 Marketing Costs Structure for Swine Marketing Costs Structure for Swine iv

STATISTICAL TABLES
Appendix 21i. Marketing Costs and Margins for Sw ine in Metro Manila, 2002

Peso per kilogram Peso per head 16a. SWINE : Other operating costs incurred by respondents, by cost
(livew eight) of 80 kgs
item, by province, 2002 34
Supplier Outside the Province (SOP):
16b. SWINE : Other operating costs incurred by respondents, by cost
Selling price at farmgate 61.00 4880.00 item, by province, 2002 35
Interregional Livestock Assembler - Small Livestock Distributor (IRLA-SLD): 17a. SWINE : Imputed cost of depreciation/labor incurred by
respondents, by cost item, by province, 2002 36
Selling price 75.00 6000.00
Total marketing costs 0.09 7.20 17b. SWINE : Imputed cost of depreciation/labor incurred by
Margin = (75.00 – 61.00 – 0.09) 13.91 1112.80
respondents, by cost item, by province, 2002 36
Retailers:
18a. SWINE : Total marketing costs, by province, 2002 37
Selling price 110.00 6160*
Total marketing costs 2.74 219.20 18b. SWINE : Total marketing costs, by province, 2002 38
Value of by-products (14.33% x P75)** 10.75 860.00
Net costs of by-products (10.75 - 2.74) 8.01 640.80
Margin = [77.00 + 8.01 – 75.00] 10.01 800.80 19. SWINE : Marketing costs for swine, by point of destination, 2002 49

* Recovery rate = 70% 20. SWINE : Marketing Costs and Marketing Channel, by province,
** Offals only at average price of P75/kg
2002 50

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

Peso per kilogram Peso per head


(livew eight) 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 4.34 347.20
Value of by-products (14.33% x P75)** 10.75 860.00
Net costs of by-products (10.75 - 4.34) 6.41 512.80
Margin = [58.10 + 6.41 - 55.00] 9.51 760.80

Retailers:

Selling price 110.00 6160.00


Total marketing costs 1.07 59.92
Margin = (110.00 – 83.00 – 1.07) 25.93 1452.08

* Recovery rate = 70%


** Offals only at average price of P75/kg
iii Marketing Costs Structure for Swine Marketing Costs Structure for Swine 116

STATISTICAL TABLES
Appendix 22. SWINE: Distribution of respondents, by problem s encountered
by province, Philippines, 2002
1. SWINE : Distribution of respondents, by type and by province, 2002 3
2. SWINE : Distribution of respondents, by type of marketing participants, PROBLEMS
METRO
PANGASINAN BATANGAS
NUEVA
ILOILO CEBU DAVAO
by province, Philippines, 2002 5 MANILA ECIJA

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


1. Credit and delayed 1 2 2 1 2
by province, 2002 6
payment. 2 3
4. SWINE : Distribution of raiser-respondents by classification, 2. Lack of capital. 2
by province, 2002 6 3. High cost of mayor's 1
permit.
5. SWINE : Distribution of respondents by nature of capitalization, 4. Few buyers. 2 4 1 1 5
by province, 2002 7
5. High cost of rental 2 5 1
6. SWINE : Distribution of respondents by type of business ownership, fee
by province, 2002 7 6. Non payment of 3 2 2 1 5 2
debt/loan 2 3 3 2
7. SWINE : Distribution of respondents, by length of experience, 7. Low demand. 7 2 1 1
by province, 2002 8 8. Low prices offered 1 1 8 5 5

8. SWINE : Distribution of trader respondents, by percentage share to by buyers.


total business, by province, 2002 9 9. Price fluctuation 1 2 3 1
10. Unavailability of 3 1
9. SWINE : Distribution of respondents, by manner of procurement, supply. 2
by province, 2002 9 11. Animal bought are 3
not w eighted (estimate) 1
10. SWINE : Distribution of respondents, by mode of payment in buying
12. Illegal vending of pork 2
stocks, by province, 2002 10
in Talipapa
11. SWINE : Distribution of respondents, by manner of distribution, 13. Complain of bad odor 2 1
by province, 2002 11 by neighbor.
14. No assured buyers.
12. SWINE : Distribution of respondents, by terms of payment,
15. High production cost 2
by province, 2002 11
16. No problems 5 24 21 2 5
13a. SWINE : Labor costs by marketing activity/ practice, by province, 2002 30 17. Poor quality of meat 1 1
18. High mortality rate during 3
13b. SWINE : Labor costs by marketing activity/ practice, by province, 2002 31 transport
14a. SWINE : Transportation costs by marketing activity/ practice, 19 Afraid of FMD 2 1 2 2 2
by province, 2002 31
TOTAL 18 26 32 43 17 32 19
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

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