Completed Study

MARKET CHAIN
ANALYSIS OF SELECTED
NON-TIMBER FOREST
PRODUCTS FOR
EQUITABLE REVENUE
DISTRIBUTION
 ABOUT THE STUDY

Title of Study:
Market Chain Analysis of Selected Non-Timber Forest
Products (NTFPs) for Equitable Revenue Distribution

Project Duration: 2019-2021

Study Sites: Regions CAR, 1, 2, 3, 4A, 4B, and 5

 ABOUT THE STUDY

The study is under ERDB’s R&D Program on Forest

Ecosystems Resiliency and Sustainability with
For. Paul B. Cuadra as Program Leader

Implementing Team
Gregorio E. Santos, Jr. | Edmichael DG. Figueroa | Adreana Santos-
Remo | Jesselit L. Candelaria | Asmyn T. Acladel
ERDB-UBRDEC
Rationale
Forests are not limited to wood
resources but also sources of
Non-Timber Forest Products
(NTFPs)

NTFPs are diverse groups of

craft, culinary, and medicinal
products

It was once considered a

promising strategy to battle and
alleviate poverty in rural areas
Rationale
But there are gaps in baseline
information regarding the
abundance, distribution,
reproductive biology, socio-
economic and market issues
and concern
There is a need to analyze the
market channel in promoting
economic improvement to fully
benefit the community in rural
areas
 OBJECTIVES OF THE STUDY
1. Determine the marketing channels, functions, revenue
distribution and gender roles in each actor of marketing
channel;
2. Identify the level of government support services in the
production and marketing of selected NTFPs;
3. Measure the marketing cost and margin of different market
intermediaries;
4. Determine the constraints in the marketing of NTFPs; and
5. Recommend policy inputs on the distribution of revenues in
each intermediary of selected NTFPs.
 Selected NTFPs

Almaciga Anahaw Anahaw Nipa Unsplit

resin poles leaves shingles rattan
 Study Sites

20
PROVINCES
REGIONS CAR, I, II, III, IV, V
Ilocos Norte, Pangasinan, Ifugao, Cagayan, Quirino, Aurora, Zambales, Laguna, Rizal,
Quezon, Occidental MIndoro, Palawan, Camarines Norte, Camarines Sur, Albay,
Sorsogon, Catanduanes, and Masbate
 Materials and and
Materials methods
methods

796
122 intermediaries
674 harvesters/producers
Probability Descriptive statistics
Random Sampling
Primary & 2 sets of pre-tested
secondary interview schedule
 ALMACIGA MARKET CHAIN

Almaciga resin
three marketing
channels:
1) From production
area to harvesters;
2) from harvesters/
tappers to
intermediaries;
3) from
intermediaries to
resin product
manufacturers.
 ALMACIGA
MARKET COST& MARGIN
revenue share
Almaciga resin
P11.97
60%
PhP171,468.00 marketing margin intermediaries
intermediaries 51.7%
price markup
40%
tappers
PhP2,893.73
tappers *Batak & Palau'an
ALMACIGA
PROPOSED CLASSIFICATION
Class Description

The resins are light in color and free from dirt or any
A
impurities.

B The resins are light in color and have few impurities

C The resins are dark in color with few impurities

D The resins are dark in color and have impurities.

ALMACIGA
MARKETING CONSTRAINTS
absence of government support
services in marketing
difficulty in transporting the NTFP
from the pickup points to
intermediaries
short financial capital, and low
NTFP value in the market
ALMACIGA
GENDER ROLES
Men (97%) were mostly involved
in the production compared to
female (3%).

During marketing, male (74%)

takes part in marketing while
only 26% of female take part.
ANAHAW MARKET CHAIN
POLES
Anahaw poles

four marketing
channels:
(1) Source to the
Harvesters,
(2) from harvester to
agents,
(3) from agent to
intermediaries, and
(4) from
intermediaries to
fish
cages/production
area owners.
ANAHAW POLES
MARKET COST& MARGIN
revenue share

52%
Anahaw poles
PhP95.91, Php20.11, intermediaries
PhP59,904.00
intermediaries
Php444.94
marketing margin
21%
harvesters
148%, 13%, 246%
PhP18,128.00
agents
price markup 23%
agents
PhP13,662.00
harvesters 4%
sources
ANAHAW POLES
MARKETING CONSTRAINTS
slow permitting
swindlers
no government support services
corrupt government checkpoints
unstable demand
No monitored average retail price
for anahaw poles
ANAHAW MARKET CHAIN
LEAVES
Anahaw leaves

Anahaw leaves
four marketing
thre
e marketing
channels:
channels:
From the source
(private/public area)
to the harvester,
then from harvester
to the middleman,
who then delivers
the product to
hardware stores,
flower shops, or
resorts.
ANAHAW LEAVES
MARKET COST& MARGIN
revenue share

Anahaw leaves
67%
PhP 1.55, PhP 1.12 intermediaries
PhP30,675.11 marketing margin
intermediaries
141.77%, 81.15%
29%
harvesters
price markup
PhP 2,841.82
harvesters 4%
private sources
ANAHAW LEAVES
PROPOSED CLASSIFICATION
Size Description

The diameter of the leaf is above 1

Large
meter

Medium The diameter of the leaf is 0.5 - 1 meter

The diameter of the leaf is below 0.5

Small
meter
ANAHAW LEAVES
MARKETING CONSTRAINTS
Absence of guaranteed buyers
No government support
Unstable demand
Price of anahaw leaves was
below the monitored average
retail price
Difficult to harvest
ANAHAW LEAVES
GENDER ROLES
Men make up 56% of the population
in the designated provinces in
Luzon, while women make up 44%

While among the intermediaries,

35% of men and 65% of women
work
NIPA MARKET CHAIN
SHINGLE

Nipa shingles

four marketing
channels:
1) from source to
harvesters,
2) from harvesters to
producers,
3) from producers to
intermediaries, and
4) from
intermediaries to
hardware shops,
poultries and resort
owners.
NIPA SHINGLE
MARKET COST& MARGIN
revenue share

Nipa shingles
41%
intermediaries
Php. 0.74 - Php. 2.02
PhP 63,070.00
intermediaries
marketing margin 20%
83.15%, 89.57%, 65% producers
Php. 1,003.39
producers
price markup 14%
harvesters
Php. 594.84
harvesters
25%
source
NIPA SHINGLE
PROPOSED CLASSIFICATION
Type Description

Short Leaves Standard length is 4ft with 1.5ft width

Medium Leaves Standard length of 4ft. Width is 2ft.

Double Medium Standard length of 4ft. Width is 2ft. Double layered

Leaves leaves.

Long Leaves Length is 5ft. Width is 3ft.

Double Long Leaves Lenght is 5ft. Width is 3ft. Double layered leaves.
NIPA SHINGLE
MARKETING CONSTRAINTS
Low market value
No government support
services
No postharvest technology
Unstable demand
No guaranteed clients/buyers
NIPA SHINGLE
GENDER ROLES
Hard and heavy labored activities
such as harvesting and
transporting were assigned to
men (90%)
Women were mostly involved in
meticulous works such as
weaving, marketing, and sorting
UNSPLIT MARKET CHAIN
RATTAN

Unsplit rattan

three marketing
channels:
(1) from plantation
and/or public area
to harvesters,
(2) from harvester
to intermediaries,
and (3) from
intermediaries to
furniture shops
and companies.
UNSPLIT RATTAN
MARKET COST& MARGIN

revenue share
Unsplit rattan
PhP8.00 57%
marketing margin intermediaries
PhP285,004.80
intermediaries 72%
price markup
43%
PhP2,927.30 harvesters
harvesters
UNSPLIT RATTAN Standard Diameter (inches) Standard Length (m)

PROPOSED Oversize 3.65 m

CLASSIFICATION 1½ 3.65 m

1¼ 3.65 m

1 1/8 3.65 m

1 3.65 m

¾ 3.65 m

5/8 3.65 m

½ 3.65 m

7/16 3.65 m

3/8 3.65 m

5/16 3.65 m
UNSPLIT RATTAN
PROPOSED CLASSIFICATION

Standard Diameter
Standard Length (ft)
(cm)

3/8 3.65 m

5/16 3.65 m
UNSPLIT RATTAN
MARKETING CONSTRAINTS
Low price
No post harvest technology
applied
No government support services
Slow permitting process
Encounters of NTFP swindlers
Corrupt government checkpoints
UNSPLIT RATTAN
GENDER ROLES
No women are involved due to
the difficulty of work.

During marketing, 56% of women

excel in this field and 48% of men
also act on it.
GOVERNMENT SUPPORT
The study proposes different
classifications for the NTFPs to allow
the organized harvesters/gatherers to
negotiate for fairer prices.

The classification is based on the different markets

within the Luzon area only and the price increase
per class was based on the respondents
preference.
GOVERNMENT SUPPORT
NGOs and academe (NTFP – Exchange Programme and
University of the Philippines Los Banos ) provide and
conduct trainings and seminars on harvesting methods for
the harvesters of almaciga resins
DENR PENRO Palawan and LGU of Palawan provide
support services such as business permit assistance,
Reforestation projects, and seminar/trainings on
harvesting methods and technologies.
Department of Social Welfare and Development
provides financial assistance through the Pantawid
Pamilyang Pilipino program.
In terms of marketing, there was no found marketing support
from the government in Palawan.
Strengthen the institutional
interventions in marketing the NTFPs.

1
Provide more access to government
support services in marketing the five
NTFPs.
Strengthen the institutional
interventions in marketing the NTFPs.

2 Institute a classification standard for

NTFP products to promote more
equitable revenue distribution among
all actors.
Strengthen the institutional
interventions in marketing the NTFPs.

3 Enhance the permitting processes and

feedback system
4 Organize registered group/
associations/cooperatives/organizations
and existing harvesters in planting,
producing, harvesting, utilizing, and
marketing the NTFPs
5 Establish a “bagsakan” system to ensure a
steady flow of stocks to meet market
demands.

Connect harvesters to consumers to enhance

equitable revenue distribution.
6 Expand training possibilities for
marketing, post-harvesting, storage
facilities, and maintenance of plantations

Enhancing the knowledge and skills of the harvesters

on marketing and existing technologies that will
enhance the market value of their products.
7
Enhance monitoring and protection
activities for NTFP plantation and
production areas of anahaw poles and
leaves, and nipa shingles.
8 Conduct of refresher course for DENR
field personnel on the new and existing
policies and guidelines on NTFPs

Enhance knowledge on permitting regulations,

monitoring and protection activities intended for NTFPs.
(042) 795-6351
ubrdec@erdb.denr.gov.ph
erdb.denr.gov.ph
/erdbgovph