Marketing losses of Pechay sold in Public markets in Davao City

I. Rationale

food loss and waste are getting progressively basic to the Philippine farmers and

is viewed as a risk to rural manageability and food security in light of the fact that the

Philippines is essentially agricultural nation. The agricultural sector accounted for 11.2%

of GDP in the fourth quarter of 2014 (PSA, 2015). Most recent discoveries of the FAO

from 2013 appeared over 1.3 billion tons of food is lost every year. food loss in developing

nations like the Philippines happens indeed, even before utilization. Food losses were

already accounted as early as the production, postharvest stages and storage of

agricultural produce. The large losses from farm to plate are attributed to poor handling,

distribution, storage, and consumption behavior (Manalili et al., 2014).

leafy vegetables are significant crops in Greater Mekong Subregion (GMS) nations,

giving salary to numerous little farmers, processors, and entrepreneurs, and serving as

health foods for the rural and urban people. Leafy vegetables also play a vital role in the

global drive to end “hidden hunger”—micronutrient deficiency (Buyckx, undated).

One popular leafy vegetable in the Philippines is Pechay (Brassica rapa L.). Also

known as snow cabbage, Chinese chard or Chinese white cabbage is consumed both as

raw and cooked. Ideally, it is eaten raw to prevent possible loss of its nutritional value

when heated. It is an excellent source of income and a hobby even for limited space

adopting the very popular vertical gardening with the use of recycled containers as potting

media (Prado, et. al., 2013).

 Pechay is utilized primarily for its immature, yet completely extended delicate leaves.

The succulent petioles are often the preferred part. It is utilized as main ingredient for

soup and pan-seared dishes. In Chinese cooking, its green petioles and leaves are

additionally utilized as garnish (http://www.darfu4b.da.gov.ph/pechay.html).

Leafy vegetables like Pechay are very highly perishable and must be utilized

immediately. It deteriorates very rapidly after harvest and therefore require proper

postharvest handling to preserve the quality at harvest. Absence of learning on suitable

quality conservation practices and technological advances can bring about high

qualitative and quantitative losses in vegetables (Jane Ambuko et al., 2017). Leafy

vegetables are mostly water (>90%) and have the propensity to lose water through

transpiration (evaporation of water from plant tissues). Water loss is the primary reason

of weight reduction (loss in saleable weight) and Wilting. Lost 5-10% of fresh weight would

make leafy vegetables to seem shriveled or wilted and become unusable and unfit to sell

(Kanlayanarat, 2007). In mechanically progressed developed countries, cold storage

utilizing traditional (mechanical) refrigeration is an essential part of postharvest treatment

of perishable agricultural commodities. However, larger part of the smallholder farmers in

developing nations like Philippines don't approach regular cold rooms. This is because of

the high cost of procurement and support of such facilities (Jane Ambuko et al., 2017).

Davao City’s top producers of pechay are located in the areas of Marilog, Calinan, and

Toril. And they operate in major public markets particularly in Bankerohan public market.

These pechay growers in every barangay of Marilog, Calinan, and Toril are only small

farmers and unfortunately away from their target markets to produce their fresh produce
(CAO, 2018). This particular leafy vegetable can be grown from mid to low elevations

throughout the year but makes their best growth and good quality produced are in cool

conditions. The fresh produce will go through the marketing system before arriving to the

final consumers. The product is handled by different marketing players such as producers

and marketing middlemen. Considering the distance traveled, insufficient transport,

handling and storage facilities, this will lead to quality deterioration. Since Pechay is

characterized as a highly perishable, it is also prone to mechanical injury (physical

damage). Leaf tearing and crushing, midrib breakage, and head cracking or bursting are

common forms of damage. Physical injuries increase physiological deterioration through

browning as a result of oxidation of phenolics substances, and susceptibility to decay.

Postharvest rots have been found to be more prevalent in bruised or damaged produce

(Bachmann and Earles, 2000).

The higher the marketing loss by each marketing players, the higher the retailers

will impose a higher retail price, since they are at risk on disposing the product. With this,

the consumers will be affected since they will suffer the consequence of these marketing

losses that entails cost to the marketing players (Piamonte, 2007).

Along these lines, there is in fact a need to study the marketing losses of

Pechay so as to distinguish the degree of losses in the phase of marketing. It is important

to classify, volume and its estimation of such losses of Pechay sold in Davao City with

the goal that this could help for further improvement of the marketing system and the

productivity of this specific agricultural commodity.

Objectives of the Study

The general objective of the study is to determine the marketing losses of Petchay
sold in the major public markets of Davao City.

Specifically, the study attempts to:

1. present the socio-demographic profile and marketing practices of the marketing

participants.

2. present the product flow and marketing margin of pechay;

3. estimate the value losses of pechay at different marketing stages;

4. determine the causes or factors that contribute to marketing losses;

5. determine the end use of the deteriorated leaves of pechay and;

6. determine the coping mechanisms that marketing agents adopt to mitigate the

marketing losses

Methodology

Theoretical Framework

Productivity is one of the most significant goal in agricultural and food promoting.

It legitimately influences food security, especially the economic and physical access to

food of every family units. Efficient and effective flow of food from production point

(farmers) to consumption point (consumers) can facilitate the availability, accessibility and

affordability of adequate food to consumers (Pabuayon et al. 2014). An efficient marketing

system is the most important multiplier of economic development (Drucker as cited by

Abbott, 1987). Marketing consist marketing functions such as transportation, storage,

processing and handling, grading and providing market information. Marketing functions

increases the value of the item are subsequently fundamental in moving the item in the

chain so that, it will reach to the customers at the correct quality, amount, spot and time

(Acharya S.S and Agarwal NL, 2006)

Marketing actors (e.g. farmer, market intermediaries and consumers) plays a key role in

performing marketing functions and providing marketing services that contribute to

achieving efficient marketing process. Definitely, marketing channel is essential on this

process. Marketing channels are routes through which agricultural products moved from

producers to consumers. The length of the channel fluctuates from commodity to

commodity, depending upon the amount to be moved, the type of buyer request.

A marketing channel can be simple, direct from the vendor or to the consumer, or is

complex, with several likely independent but mutually dependent intermediaries, like

wholesalers, distributors, agents, retailers. In addition, each intermediary receives the

item it is at one price (Piadozo, 1987).

Illustration bellow shows a typical marketing channel for vegetables (FAO, 2017):
1. Producers–consumer
2. Producer–retailer–consumer
3. Producer–Trader–commission agent–retailer–consumer
4. Producer–commission agent–retailer–consumer
5. Producer–wholesaler–wholesaler-retailer– retailer–consumer