Post-harvest losses of Pechay 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 ( Agritech.tnau.ac.in):

1. Producers–consumer

2. Producer–retailer–consumer

3. Producer–Trader–commission agent–retailer–consumer
4. Producer–commission agent–retailer–consumer

5. Producer–primary wholesaler–secondary wholesaler– retailer–consumer (Distant

market)

In this particular functions and services entails a great influence on marketing cost.
marketing expenses are brought about when items move from the farms to the last
market, regardless of whether they are moved by ranchers/farmers, middleman,
cooperatives, marketing board, wholesalers, retailers or exporters. Marketing expenses
include labour, transport, packaging, containers, rent, utilities (water and energy),
advertising, selling expenses, depreciation allowances and interest charges. With
expanded urbanization and industrialization, marketing cost leads to increase moderately
to the farm gate price got by the rancher through more middle people. Marketing costs
may vary from commodity to commodity and product to product. The few factors that
exclusively or on the whole record for these distinctions includes; the more waste the
more prominent extent of client's expenditure which continues marketing cost, the more
perishable the item the more the marketing cost, the all the more preparing of the product
the more marketing costs, the more greater the amount of produce dealing with and
transportation the more the marketing costs (fao.org)

A marketing margin is the percentage of the final weighted average selling price
taken by each stage of the marketing chain. It can also be defined, as the difference
between what the consumer pays and what the producer receives for his agricultural
product. It is suspected that a wide margin means a high price to consumer and low prices
and income to the producers. It means a wide margin implies and inefficient marketing
system and vice versa (Abot and Makeham, 1979). The marketing margin should cover
the cost involved in transferring the produce product from one stage to the next stage of
the chain and it will provide a reasonable return to the marketing players. The increase in
marketing margin is due to increase in marketing cost. Retailers themselves may incur
the highest cost since among the marketing players they are at high risk in disposing the
commodity. They incur cost due to inadequate transport, storage and handling methods
and facilities that causes heavy losses and product deterioration in quality and enhanced
market risk. Perishable product like vegetables requires more careful physical handling,
both in storage and during transit. The less perishable the commodity the less is the share
of the consumer’s peso that goes to marketing cost (Piadozo, 1987).

Conceptual Framework

. The Figure 2 shows the marketing chain of pechay and the different marketing

losses incurred in each marketing player. The pechay marketing losses are identified as

shrinkage, quality deterioration, pilferage, unsold products, price fluctuation. The

marketing losses are further classified according to its end use.

Producer (P/kg) Marketing Middlemen (P/Kg)

(Farmer) (Wholesaler-Retailer, Retailer)

MARKETING LOSSES (P/KG)

Causes Effects Kinds of Losses

Poor Wilting, physical damages 1. Shrinkage
transportation,
Handling and
Storage Facilities Change in physical appearance, 2. Quality
like cracking and abrasion deterioration

Social Problem Stealing of products 3. Pilferage

Lack of Market Unpredictable Supply 4. Price fluctuation

Information and demand

5. Unsold Products

End Use of Rejected products

Non Trade Loss and Absolute Loss
 Figure 2. The relation of marketing losses to the marketing players.

In marketing, the pechay produced flow through the channel of distribution which

involves marketing players. Throughout the marketing chain of eggplant each marketing

player will incur different forms of marketing losses from the farmer’s field to the

intermediaries like wholesalers, wholesaler-retailer and retailers. Marketing losses is

assessed through the volume (Kg) of damage and loss along the chain. Moreover, the

volume of losses will also be valued with the price per quantity of the product. Marketing

margin is also observed in the chain since it will determine the product cost and

perishability. Marketing Losses is categorized according to its causes and these are the

following:

Shrinkage Loss. It is the loss incurred due to poor transportation and storage

facilities. It is a factor that cause wilting and physical damages especially in the outer part

of the vegetable which will directly reduce the volume, and weight of the product. In some

instances, the handler of the product will remove or trim the wilted parts to maintain its

attractive appearance, thus reducing further the weight of the vegetables. It is classified

as shrinkage losses, because of reduction in weight and volume of the product.

Quality deterioration Loss. Aside from the shrinkage, poor transport and storage

facilities that are used to move the product through the market channels will also cause

rotting, yellowing, and physical appearance like cracking and abrasion, sunburn that may
not necessarily reduce the volume and weight but simply cause deterioration in the quality

of the product, thus, reducing its value to consumers.

Pilferage Loss. Social problems in the locality where the market is located

may also cause marketing losses in the form of pilferage. It occurs when product is

temporary stored without adequate and proper protection due to lack of storage facilities.

Persons with motives will take it as an advantage and steal products

Price fluctuation Loss. The result of lack of information will cause price

fluctuation loss. Lack of market information among the producers, traders and consumers

cause unpredicted and sudden shift in supply and demand that will result to erratic price

fluctuations. A sudden decrease in price oftentimes results to selling the vegetables at

lower value.

Unsold products Loss. Due to the lack of market information which result in

channeling the products to saturated markets creating an oversupply will result to unsold

products. Since most of the vegetables are perishable and in the absence of good storage

facilities and processing technologies, will result to throwing of unsold vegetables or sale

at a very low-price creating losses to traders.

Variables used in the study

Volume, Value and Form

Data Sources

Both primary and secondary data