Republic of the Philippines

Commission on Higher Education

CARAGA STATE UNIVERSITY
Ampayon, Butuan City, Agusan del Norte

VALUE CHAIN ANALYSIS: PRODUCTION AND MARKETING OF RATTAN

FURNITURE IN BUTUAN CITY, AGUSAN DEL NORTE

NOELYN C. APOLINARIO
EDELYN B. GESTA
IRSIH JANE T. LARA
JELLY T. MONTILLA
GUEEN REBUTA
MARCO REYES
NINJAN T. TOMPONG

SUBMITTED TO THE FACULTY OF COLLEGE OF FORESTRY AND

ENVIRONMENTAL SCIENCES

CSU-MAIN CAMPUS
AMPAYON, BUTUAN CITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE COURSE

FRM 112 (FOREST RESOURCE ECONOMICS AND VALUATION)

BACHELOR OF SCIENCE IN FORESTRY

JUNE 2023

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 TABLE OF CONTENT

TITILE PAGE………………………………………………………………………………..……i

TABLE OF CONTENT……………………………………………………………………..…….ii

INTRODUCTION …………………………………………………………………………..…….1

METHODOLOGY…………………………………………………………………………..…….2

STATEMENT OF THE PROBLEM………………………………………………………….…..3

OBJECTIVE OF THE STUDY………………………………………………………………..….4

RESULTS AND DISCUSSION…………………………………………………………….……5

Demographic Information of the Respondents…………………………………………….…..5-6

Factors Affecting Manufacturing and Marketing of Rattan Furniture Products………….…...7-8

Rattan Furniture in Butuan City, ADN……………………………………………………………………….…...9-10

CONCLUSION ……………………………………………………………………………….….11

RECOMMENDDATION…………………………………………………………………..….…12

REFERENCES………………………………………………………………………………..….13

APPENDIX……………………………………………………………………………………....14

Documentation…………………………………………………………………………….….14

Questionnaire…………………………………………………………………………………15-16

Researcher’s Profile……………………………………………………………………..……17-23

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I. INTRODUCTION

Rattans are naturally found in the Philippine dipterocarp forests and are distributed
throughout the country. There are four genera of rattan, namely Calamus, Daemonorops,
Korthalsia and Plectocomia, with 64 species are found in the country (PCARRD, 1991).
Rattan also considered as NWFT's or “minor forest products” together with bamboo and
medicinal plants,which means it can be extracted from the forest without inflicting too much
damage in the environment. The rattan sector has significant economic and social importance
in the Philippines. It contributes to employment and income generation of people who have
few otherlivelihood options. It also forms part of the way of life of these people who, over the
years, have developed social relationships linked to the rattan production-to-consumption
system.

According to Philippines Forestry Statistics of 2021, Region 13 produce most of split

and unsplit rattan in the country, which produce 421,126 kilograms (kg) of split rattan and
2,361,977 linear meters (m), that becomes one of the most source of livelihood in the region,
especially those who are in the upland community. Some of this are being imported and the
other are being manufactured by our local communities to create traditional handicrafts like
baskets, canes, woven and etc., It also shows with the research of Sastry (2000) that more than
700 million people worldwide, trade in or use rattan for a variety of purposes, but furniture is
the most popular rattan product. However, in recent years, uncontrolled harvesting and
deforestation seen to be one of the common problems in leading to resource exhaustion of the
desired species in many rattan-producing countries in Asia, due to the rapid growth of the
industry from the 1970s until the early 1990s.

Butuan as a 1st class highly urbanized city in the region of Caraga, Philippines. It
produces major agricultural products like rice, bananas, coconuts, poultry, shrimp, and
milkfish. Also, its key industries include rice milling, food processing, wood processing,
furniture, fuel distribution, shipbuilding, and construction. Helps the city to improve its
economic status andprovide sustainability to its people. Rattan furniture holds significant role
in cultural, economic, and environmental in Butuan City. It represents a traditional craft,
supports local livelihoods, promotes sustainability and attracts tourists. In addition, rattan
furniture became one of the cultural identities of butuanons that passed by generation to
generation, its traditional hands kill especially in craftsmanship, preserve its vital in
maintaining the city's identity and heritage. However, due to a lot of problems and issues,
especially in sustainability of the production of raw materials for rattan furniture, the
production of rattan furniture in the city became crucial and the price of its products increases.

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II. METHODOLOGY

This study used a qualitative research design, in gathering in-depth insights,

understanding the perspectives of different rattan furniture business owners, and identifying
key factors influencing the production and marketing of rattan furniture. The researcher
prepared a set of questionnaires to be use in gathering the data. Using a random sampling
method, the questionnaires are given to the respondents of Butuan City, Agusan del Norte
rattan furniture business owners, as their basis for the interview. The data being collected are
interpreted and analyzed through the use of a value chain analysis chart.

Figure 1: Locale of the study (Butuan City, Agusan del Norte)

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III. STATEMENT OF THE PROBLEM

Due to the problems and challenges in the production and marketing of rattan
furniture that our local business owner is experiencing. The main purpose of this study is to
determine thefactors affecting the production and marketing of rattan furniture, using the
value chain analysis.
Specially, this study tends to answer the following research questions;

1. What are the factors affecting the production and marketing of rattan furniture products?

2. How does the production of rattan furniture affect the value of its products?

3. What are the areas of improvements in production and marketing of rattan furniture
products?

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IV. OBJECTIVE OF THE STUDY

By the help of this study and by answering the problem being stated. This study
generally aims to determine the present situation of the production and marketing of rattan
furniture inButuan City, Agusan del Norte.

It also tends to answer specific objectives;

1. To determine the demographic of the respondents, in terms of:

a. Sex

b. Age

c. Years in the business

2. To identify the factors that affect production and marketing of rattan furniture products.

3. To analyze the area of improvements in the production and marketing of rattan furniture
products using value chain analysis; to see for intervention.

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V. RESULTS AND DISCUSSION

The survey gathered demographic information from the respondents to gain insights
into their characteristics and backgrounds. The key demographic variables analyzed include
gender, ageand duration of business operation.

A. Demographic Information of the Respondents

Gender
Frequency Percentage
Male 3 75%
Female 1 25%
TOTAL 4 100%
Table 1: Gender distribution of the respondents

The data gathered in the surveys shows different information of the respondents. In the table 1, showsthe
gender distribution of the respondents that consist 75% male respondents and 25% female respondents.

Age Distribution
Frequency Percentage
26-32 2 55%
33-39 1 25%
40-up 1 25%
TOTAL 4 100%
Table 2: Age distribution of the respondents

The respondents came from different age group, in the table 2 it demonstrates how diverse the
age distribution of our respondents, the table contains 25% from age ranges 26-32yrs. old, 50%
from age ranges 33-39yrs. old, 25% from age ranges 40-up.

Duration
Frequency Percentage
1-5 0 0%
6-10 0 0%
11-15 1 25%
16-up 3 75%
TOTAL 4 100%

Table 3: Duration of Business operation

The survey also sought to identify the duration periodof operation of the respondent’s business

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owned. The study determines that most of the respondents are been in this business for a long
time, which the rattanfurniture. Table 3 illustrated the period of years which the respondents still
operate rattan furniture business. From years ranges 11-15years it gathered 25% of the
respondents, from years ranges 16-up years it gathered 75% of the respondents, while bothyears
ranges 1-5years and 6-10years gathered a 0% from the respondents.

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 B. Factors Affecting Manufacturing and Marketing of Rattan Furniture Products
Dvfdvcsxz x

MARKETING MANUFACTURING

• Dilation of raw materials • Ensuring the quality of products

delivery throughout the delivery process

• Quality of raw materials • Costumers prefer a synthetic

product than rattan products
• Defect of raw materials before
processing • Competition that can affect the
marketing strategy
•Lack of innovative technology
in manufacturing • Pricing

Figure 2: Factors affecting the Manufacturing and Manufacturing of Rattan Furniture

This survey tends to determine the factors that have had a significant impact on
manufacturing and marketing of rattan furniture. The respondents respond to the questions,
what factors theyare encountered in terms of manufacturing and marketing of rattan furniture.
The figure 2 above, contains those factors being determined by the respondents, and it is being
categorizedby the two major category, the manufacturing and marketing. In manufacturing, the
figure 2 shows the following factors that affect the production of rattan products; Dilation of
raw materials delivery, Quality of raw materials, Defect of raw materials before processing,
and lastly, Lack of innovative technology in manufacturing. Due to lack of raw materials
within the region, the rattan business owner tends to import raw materials for production,
however, due to unpredictable circumstances, dilation in arrival of raw materials, shows one of
the factors affecting the manufacturing of the rattan products. Also, ensuring the condition of
the rattan materials shows another factor that the rattan furniture owner facing in production of
rattan product, due to importation of raw materials. This factor occurs due to limited sources of
rattan materials in the region. In terms of marketing, the figure shows the following factorsthat
affect the distribution of rattan products; Ensuring the quality of products throughout the
delivery process, Costumers prefer a synthetic product than rattan products, Competition that
can affect the marketing strategy, and lastly, Pricing of the products. Pricing shows one of the
factors affecting the marketing of rattan products, pricing influences by the production cost of
the product, especially they import raw materials outside the region, transportation added
significantly to the value of the products. Quality and durability, shows another factor customer
looking for in buying products, they prefer to use well-constructed sturdy and long-lasting
products, which also considered as a one of the factors that affects the marketing of rattan
products. Another factor affecting the marketing of rattan products is the ensuring of the

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condition of the products while transporting or distributing, there is a possibility in which the
products will be destroyed or damage especially if the transportation or distribution is in
inaccurate. Those factors being stated are recognized by the rattan business owners as
hindrance for their business, which can significantly affect their source of income.

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C. Rattan Furniture in Butuan City, ADN

Figure 3: Value chain analysis of rattan furniture products

The study was also conducted and analyzed using value chain analysis, to help to assist
some of the problems in manufacturing and marketing of the rattan furniture products. In the
figure 3 above, illustrated the gathered data using the concept of value chain analysis. The chart,
is categorized by the two major activities of rattan furniture manufacturing and marketing,
namely; supportive activities and primary activities. In supportive activities area, it shows that,
almost of the rattan business are owned by individuals, they refuse to engaged in corporation,
partnership and or any types of business partnership, this resulted by hands on in work process
in the business by making the products by themselves. The respondents are contracted a
supplier of raw materials of rattan furniture from different region instead of Caraga. The lack
of advanced technologies in manufacturing the raw materials of rattan are can also be shown at
the graph above, resulted to manually molding and assembling of rattan products. In primary
activities, which also categorized in five stages namely; Inbound logistics, Operations,
Outbound logistics, Marketing and Sales, and lastly the Services being offered, it shows how
products being produced and distributed. In inbound logistics stage, raw materials are being
imported in different region, which being transfer through delivery of the materials. In
operation stage, the raw materials are manually molded because of the lack of advance
technologies in terms of manufacturing of the raw materials. In outbound logistics stage, the
respondents use a styro and wrapping materials to ensure that the products will maintain its
good condition throughout the delivery process. In marketing and sales stage, the use of social
media can greatly influence how rattan products being market, especially we are in the

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technological era, this medium of marketing can be helpful for faster distribution of products.
And lastly, in terms of services, the respondents which is the rattan business owner, offers some
of services like promos and warranties, replacement policy and accommodating concerns with
costumers, which can be helpful to boost market and sales of the products.

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.
VI. CONCLUSION

The survey findings highlight on how manufacturing and marketing of rattan furniture,
the challenges and problems being encountered by the rattan business owners and identifying
thosearea of improvements in able to improve its production and distribution of the products.

As the show results, after the researchers analyze the data gathered. The researchers
concludedthat, a lot of area of improvements are needed to address in terms of manufacturing
and marketing the rattan products. Those areas of improvements help rattan business owner
to understand what they are lacking with regard to the two main economic field activities,
whichare supply and demand for rattan products.

The study came to the additional conclusion that the manufacturing and marketing
issues that our rattan business owners face has a substantial impact on their day-to-day
operations with their privately owned business.

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VII. RECOMMENDATIONS

From the findings that the researchers concluded. The researchers recommend an
intervention that can be used by our rattan business owners to assist those area of
improvements, challenges and problems in manufacturing and marketing of rattan furniture
products. First, raw materialsourcing, rattan furniture owners must establish partnerships with
local rattan growers or cooperatives to secure a stable supply and promote fair trade practices.
Second, technology advancement, the use of manual molding and assembling of rattan
products helps the rattan furniture owners in the production of the products, however, the use
of technology can significantly boost the production of quality and durable rattan products.
Also, design and innovation, creating innovative rattan furniture designs that cater to
changing customer preferences helps to increase the demand of the products. And lastly,
seeking the support of the government and local communities to appreciate the local products.
This may do through seminars and workshops, which the government will be conducted,
through this, it helps our local rattan business owner to improve their income by addressing
those problems in manufacturing and marketing of rattan furniture products.

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 VIII. REFERENCES

https://www.fao.org/3/y2783e/y2783e15.htm

https://www.fao.org/3/x9923e/x9923e03.htm

https://forestry.denr.gov.ph/index.php/statistics/philippines-forestry-statistics

https://en.wikipedia.org/wiki/Butuan

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 IX. APPENDIX

A. Documentation

This picture was taken at the Marife Native Products This picture was taken at Carwana Rattan Furniture
together with my groupmates located at the during the interview in Baan Km3 Butuan City.
City of Butuan.

During the interview of the owner of Carwana Rattan

Furniture Shop at Baan Km3 Butuan City This is the last picture that was taken in the Native
Rattan Products at Butuan City.

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B. Questionnaire

Part 2. Manufacturing and Marketing of Rattan Furniture Products

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16
EDELYN B. GESTA
FORESTRY STUDENT
CARAGA STATE UNIVERSITY

Value Chain Analysis: Procedure and Marketing of Rattan Furniture in

Butuan City, Agusan Del Norte

CONTACT INFORMATION

Contact number:09811173410
Email: edelyngesta685@gmail.com
Location :P-7, Barangay. Sto Nino, Butuan City, Agusan Del Norte

BIO
I am forestry student; I love to explore the hidden wonders that lie within the depth of the forest. In
terms of our research, I would to know how they make their rattan furniture product, and as
forestry student we find it fascinating and we are eager to learn about their processes.

EDUCATIONAL BACKGROUND

Bachelor of Science in Forestry

Caraga State University
2021 - Present

Secondary:

Jagupit National High School

2020 - 2021
Graduate

Primary:

Jose R. Magno Elementary School

2014 - 2015
Graduate

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JELLY T. MONTILLA
FORESTRY STUDENT
CARAGA STATE UNIVERSITY

Value Chain Analysis: Procedure and Marketing of Rattan Furniture in Butuan City, Agusan Del Norte

CONTACT INFORMATION

Contact number:09772792129
Email: jellymontilla1234@gmail.com
Location :P-1, Barangay. Mahay, Butuan City, Agusan Del Norte

BIO
I am forestry student and sustainable use of forest plays a central part when people are developing more
ecologically, financially, and socially sustainable operating methods. People are also looking for new
solutions for building a sustainable future from a sustainable forest economy and industry.

EDUCATIONAL BACKGROUND

Bachelor of Science in Forestry

Caraga State University
2021 - Present

Secondary:

Saint Joseph Institute of Technology

2020 - 2021
Graduate

Primary:

Malay Elementary School

2014 - 2015
Graduate

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 C. Researcher's profile

NOELYN C. APOLINARIO
FORESTRY STUDENT
CARAGA STATE UNIVERSITY

Value Chain Analysis:Procedure and Marketing of Rattan Furniture in Butuan City,Agusan Del Norte

CONTACT INFORMATION

Contact number: 09518254867

Email: noelynapolinario@gmail.com
Location :P-6, Maygatasan, Bayugan City, Agusan Del Sur

BIO
I am a forestry student and I want to explore and make new things specially to embrace the beauty of
nature. In terms of our research, it makes me want to learn more about how talented the Filipino can be.
Where they make rattan furniture as one of our products that shows the beauty and uniqueness of the
Filipino.

EDUCATIONAL BACKGROUND

Bachelor of Science in Forestry

Caraga State University
2021 - Present

Secondary:

Bayugan City Senior high School

2020 - 2021
With honor
Graduate

Primary:

Bayugan West Central Elementary School

2014 - 2015
Graduate

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IRISH JANE T. LARA
FORESTRY STUDENT
CARAGA STATE UNIVERSITY

Value Chain Analysis: Procedure and Marketing of Rattan Furniture in Butuan City, Agusan Del
Norte

CONTACT INFORMATION

Contact number: 09632822440

Email: Irishjanelara9@gmail.com
Location :P-25 Acacia, Baan Km3 Butuan City Agusan del Norte

BIO
Being outdoors gives us energy, make us happier, help us to relieve the everyday stresses of our over
schedule lives, opens the door to creativity, and helps us to be kind to others and explore many things
on the earth especially our nature.

EDUCATIONAL BACKGROUND

Bachelor of Science in Forestry

Caraga State University
2018 - Present

Secondary:

Agusan National High School

2012- 2016
Graduate

Primary:

Alviola Village Central Elementary School

2006 - 2016
Graduate

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GUEEN B. REBUTA
FORESTRY STUDENT
CARAGA STATE UNIVERSITY

Value Chain Analysis: Procedure and Marketing of Rattan Furniture in Butuan City, Agusan Del
Norte

CONTACT INFORMATION

Contact number: 09096292898

Email: Boonggweney@gmail.com
Location :P-2, Tandang Sora, Esperanza, Agusan del Sur

BIO
I am a forestry student, that is interested in exploring/researching a new idea about on how we
protect and manage our forest in a sustainable way. Which can be use not only in the present, but also
in the future generation.

EDUCATIONAL BACKGROUND

Bachelor of Science in Forestry

Caraga State University
2021 - Present

Secondary:

Bayugan National Comprehensive High School

2013- 2017
Graduate

Primary:

Tandang Soral Elementary School

2014 - 2015
Graduate

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MARCO REYES
FORESTRY STUDENT
CARAGA STATE UNIVERSITY

Value Chain Analysis: Procedure and Marketing of Rattan Furniture in Butuan City, Agusan Del
Norte

CONTACT INFORMATION

Contact number: 09631413527

Email: marco.reyes@gmail.com
Location: P-6, Poblacion, Esperanza, Agusan del Sur

BIO
I am a forestry student, that is interested in exporing/researching a new ideas about on how we
protect and manage our forest in a sustainabale way. Which can be use not only in the present, but
also in the future generations.

EDUCATIONAL BACKGROUND

Bachelor of Science in Forestry

Caraga State University
2021 - Present

Secondary:

Esperanza National High School

2012- 2019
Valedictorian

Primary:

Esperanza Central Elementary School

2005 - 2012
Honor

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NINJAN B. TOMPONG
FORESTRY STUDENT
CARAGA STATE UNIVERSITY

Value Chain Analysis: Procedure and Marketing of Rattan Furniture in Butuan City, Agusan Del
Norte

CONTACT INFORMATION

Contact number: 09078611178

Email: tompongninjan@gmail.com
Location: Central 2, Barangay Cubi Cubi,Nasipit Agusan del Norte

BIO
I am a forestry student, and I love to explore many things on earth especially our nature. In terms of
our research, it makes me want to learn more about how talented the Filipino can be. Where they
make furniture as one of our products that shows the beauty and uniqueness of the Filipinos.

EDUCATIONAL BACKGROUND

Bachelor of Science in Forestry

Caraga State University
2021 - Present

Secondary:

Agusan Del Sur National High School

2009- 2013
Graduate

Primary:

Magallanes Elementary School

2002 - 2009
Graduate

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