Professional Documents
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Marketing Costs For Swine
Marketing Costs For Swine
FOREWORD
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
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
Retailers:
LIST OF FIGURES
Appendix 21g. Marketing Costs and Margins for Sw ine in Davao, 2002
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
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
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:
Stockyard/Slaughterhouse:
Retailers:
Appendix 21a. Marketing Costs and Margins for Sw ine in Pangasinan, 2002
* 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
c) To establish benchmark data on the average costs of the various marketing ITEM RETAILER
components.
peso per kg. (meat)
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).
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
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
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
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
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/
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
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
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 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
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
TOTAL 38 41 44 49 36 43 21 8 280
12 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 101
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;
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
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
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
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
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
TOTAL 0.29
Procurement 0.75
Distribution 0.645
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
Procurement 0.41
MARKETING NUEVA
- live
PANGASINAN BATANGAS ILOILO CEBU DAVAO METRO
ACTIVITY/PRACTICE ECIJA
MANILA - meat
peso per kilogram (meat)
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
- meat
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
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
Pre-distribution
Chopping 0.507 0.348
Hauling/Handling 0.224 0.373
Distribution
Chopping 0.42
Selling 0.43 2.00
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.
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.
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
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
LOM
a/ less than 0.001
Equipment
Weighing Scale 0.02 0.003
Cellphone 0.01
RAISER/OPERATOR
Transportation
Jeep 2.41 0.29
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
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
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
METRO
ITEM PANGASINAN NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
MANILA
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
RAISER/
a/ less than 0.001
b/ includes all types of weighing scale OPERATOR
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
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)
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
RAISER
Appendix 14c. SWINE (Live): Other operating costs incurred by m arketing participants, by item , Nueva Ecija, 2002
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
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
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
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
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
NUEVA
ACTIVITY/PRACTICE PANGASINAN BATANGAS ILOILO CEBU DAVAO
ECIJA
peso per kilogram (liveweight)
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
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
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
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
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
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
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
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
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)
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
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.
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)
TOTAL 14.01 10.55 19.26 4.49 4.89 11.13 1.86 Salaries and Wages 0.25
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
Procurem ent
Hauling 0.167
Handling 0.211
Pre-distribution
Slaughtering 1.338 0.831 0.531
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
CONSUMER
SLAUGHTERHOUSE
CONSUMER
Labor = 5.07
Transp. = 0.46
Materials= 0.672
Imputed= 0.187
Others = 2.972
Total = 9.359
Others = 0.547
Imputed = 0.047
Total = 0.594
RAISER/
OPERATOR
(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;
RAISER
CONSUMER
SOP
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
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
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
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
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
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
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
SOP
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
(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;
RAISER
CONSUMER
Labor = 5.07
Transp. = 0.46
Materials= 0.672
Imputed= 0.187
Others = 2.972
Total = 9.359
Others = 0.547
Imputed = 0.047
Total = 0.594
RAISER/
OPERATOR
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
Appendix 1. SWINE: (Continued) Table 19. Marketing Costs for Sw ine, by Point of Destination, 2002
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Procurem ent
Hauling 0.167
Handling 0.211
Pre-distribution
Slaughtering 1.338 0.831 0.531
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)
TOTAL 14.01 10.55 19.26 4.49 4.89 11.13 1.86 Salaries and Wages 0.25
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
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.
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)
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
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
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
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
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
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
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
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
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
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
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
NUEVA
ACTIVITY/PRACTICE PANGASINAN BATANGAS ILOILO CEBU DAVAO
ECIJA
peso per kilogram (liveweight)
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
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
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
Appendix 14c. SWINE (Live): Other operating costs incurred by m arketing participants, by item , Nueva Ecija, 2002
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
RAISER
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
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)
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
METRO
ITEM PANGASINAN NUEVA ECIJA BATANGAS ILOILO CEBU DAVAO
MANILA
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
RAISER/
a/ less than 0.001
b/ includes all types of weighing scale OPERATOR
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
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
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
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
LOM
a/ less than 0.001
Equipment
Weighing Scale 0.02 0.003
Cellphone 0.01
RAISER/OPERATOR
Transportation
Jeep 2.41 0.29
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
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.
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.
Pre-distribution
Chopping 0.507 0.348
Hauling/Handling 0.224 0.373
Distribution
Chopping 0.42
Selling 0.43 2.00
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
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
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
- meat
MARKETING NUEVA
- live
PANGASINAN BATANGAS ILOILO CEBU DAVAO METRO
ACTIVITY/PRACTICE ECIJA
MANILA - meat
peso per kilogram (meat)
TOTAL 0.29
Procurement 0.75
Distribution 0.645
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
Procurement 0.41
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
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
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
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
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;
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
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
TOTAL 38 41 44 49 36 43 21 8 280
10 Marketing Costs Structure for Swine Marketing Costs Structure for Swine 102
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
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
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
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
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/
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
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
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
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
c) To establish benchmark data on the average costs of the various marketing ITEM RETAILER
components.
peso per kg. (meat)
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).
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
Appendix 21a. Marketing Costs and Margins for Sw ine in Pangasinan, 2002
* 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
Appendix 21d. Marketing Costs and Margins for Sw ine in Iloilo, 2002
Raisers:
Retailers:
LIST OF FIGURES
Appendix 21e. Marketing Costs and Margins for Sw ine in Iloilo, 2002
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:
Stockyard/Slaughterhouse:
Retailers:
LIST OF FIGURES
Appendix 21g. Marketing Costs and Margins for Sw ine in Davao, 2002
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
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
Retailers:
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