1

MARKETING PRACTICES OF TOMATO RETAILERS

IN THE CITY OF BATAC, ILOCOS NORTE

Undergraduate thesis submitted in partial fulfillment of the requirements for

the degree of Bachelor of Science in Agribusiness from the Mariano Marcos State
University, City of Batac, Ilocos Norte. College Contribution No. 12-27. Department
Contribution No. 2021-05. Prepared under the guidance of Mrs. Ethel Reynda M.
Calivoso and Mr. Jayson Tuliao.

ALYSHAMAE P. LOLOQUISEN

INTRODUCTION

Background of the Study

Tomato (Lycopersicon esculentum), locally known as “kamatis,” is an important

crop in the Philippines (Philippine Statistics Authority (PSA), 2019). This is grown in

nearly all home gardens and by large percentage of market gardeners. It is considered

cash crop for it has great potential for improving the fundamental components of

income, employment and nutrition. It can be eaten raw or as an ingredient in many

dishes, sauces, drinks, and salads.

Tomatoes are relevant to economic development due to growing consumption

of fresh produce and globalization as a result of efficiency improvement in production

and distribution. This is reflected by its significant contribution in terms of production

and trade (Bureau of Agriculture and Fisheries Standards, 2017). Hence, the impact of
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the country’s tomato production to the economic growth cannot be underestimated

(PSA, 2019).

In 2012, tomato production was valued at 58 billion dollars and the crop is

recognized as the 8th most valuable agricultural product worldwide (FAOStat data

base, 2012, as cited by Ghimire et al., 2017). In 2019, the value of tomatoes produced

in the Philippines was estimated about 3.8 billion pesos. During the same year, the

country’s tomato production was approximately 223.3 thousand metric tons (PSA,

2020). Major buyers of tomato produce are middlemen, particularly, wholesalers

according to PSA’s 2018 Survey on Costs and Returns of Tomato Production.

Farmers and middlemen both face constraints in marketing tomatoes. On the

part of the middlemen, lack of proper grading, stiff competition among retailers,

excess supply, perishability and price fluctuation are among the major problems.

Other problems in tomato marketing are low price, lack of storage facilities, and lack

of centers (PSA, 2019).

In the Philippines, unstable price was the most common marketing issue in the

top six tomato-producing provinces (Ilocos Norte, Ilocos Sur, Iloilo, Cebu, Bukidon,

and Misamis Oriental). According to PSA (2018), consistently low price of produce,

rough roads, high transportation costs, and limited buyer/market outlets and lack of

marketing information were also mentioned as problems. On a provincial level, Ilocos

Norte has three major problems: low produce prices, unstable prices, and high

transportation costs (PSA, 2018).

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Statement of the Problem

The study aimed to explore the marketing practices, among tomato retailers in

the public market of the City of Batac, Ilocos Norte. This included gathering of

information on the tomato retailers' current activities as well as the challenges in

selling the products.

Specifically, it sought to answer the following questions.

1. What is the socio-demographic profile of tomato retailers?;

2. What is the economic profile of tomato retailers?;

3. What are the marketing practices of the tomato retailers?; and

4. Are there problems encountered in marketing tomatoes?

Significance of the Study

Since tomatoes are perishable, seasonal, and bulky, marketing them is a

difficult task. Thus, the primary purpose of the study was to identify existing

marketing practices, as well as the related problems faced by tomato retailers in the

City of Batac Ilocos Norte. The study might help in spotting areas in tomato retailing

that require intervention. Therefore, the results of the study might provide vital inputs

to policy makers and other concerned institutions in designing programs directed

towards strengthening the industry.

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Scope and Limitation of the Study

The study aimed to identify the marketing practices of the tomato retailers.

Since it only covered the retailers in the City of Batac public market, it might not

represent the marketing practices and strategies of the major tomato industry players

in the province. The market days in the city are Tuesdays, Thursdays and Sundays.

The overall conduct of the study was also limited by the COVID-19 pandemic.

Operational Definition of Terms

Respondent. This refers to retailer of tomato in the City of Batac, Ilocos

Norte.

Retailer. He/she is a merchant who has stalls in the market and sells directly

to the consumers.

Socio-demographic profile. It refers to the personal attributes of the

respondent like age, civil status, educational attainment, sex, household size,

organizational affiliation, and trainings or seminars attended.

Age. It deals with how old the respondent is at the time of the study.

Civil status. It refers to whether the respondent is single married,

widowed or separated.

Educational attainment. It refers to the highest level of formal

schooling that the respondent had attained.

Sex. It refers to whether the respondent is male or female.

Household size. It refers to the total number of people that stays

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together under one home with the respondent.

Organizational affiliation. It refers to the membership of the

respondent to an organization.

Trainings /Seminars attended. These refer to the activities attended

by the respondent which are related to tomato marketing.

Economic profile. It refers to the relevant information of the business of the

respondent, which consist of the source of income, source of capital, and number of

years in the business.

Source of income. It refers to where the respondent earns money

either from the business or other activities.

Source of capital. It refers to the ways and means of raising capital of

the respondent either from personal savings or loan.

Number of years in the business. It refers to the length of years the

respondent is involved in the buying and selling of tomato.

Marketing practices. These refer to the combination of activities in terms of

the buying and selling practices they undertake concerning product, price, and place

that are performed by tomato retailers in marketing their products.

Buying practices. These pertain to the activities conducted by the

retailers in the procurement of the tomatoes that they intend to sell to final

consumers.

Selling practices. These refer to the activities performed by retailers

after purchase until the retailing of tomatoes to final consumers.

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Product. This refers to the tomatoes intended for retail and the

activities of the respondents on choosing of variety, cleaning, sorting, and

packaging.

Choosing of Variety. It refers to the selecting of type of tomato

with distinguishable characteristics that may be desirable to consumers

(Apollo, Diamante max, Ilocos red, Magilas, Native and NFC).

Cleaning. It refers to the removing of dirt on the purchased

tomato either by wiping and washing.

Sorting. It is the grouping of the tomato fruits into lots or units

according to color, degree of ripening and size.

Packaging. It refers to the material(s) used to contain the

tomatoes available for retail like bamboo crates, wooden crates and

recycled boxes.

Price. This refers to the value or amount of money imposed by the

retailers on the tomatoes that are available for retail.

Unit used in buying. It refers to the unit used in buying

tomatoes whether per kilo, per wooden crate or per box.

Unit used in selling. It refers to the unit used in selling

tomatoes whether per kilo, per wooden crate or per box.

Person involved in determining price. It refers to the person

who determines the price of the tomatoes purchased for retail. She /He

could be the retailer or supplier or both.

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Mode of payment. It refers to the system of payment employed

in buying the tomatoes for retail either in cash or credit.

Buying price. It refers to the price that retailers pay in order to

acquire tomatoes intended for retail.

Selling price. This refers to the price which tomato retailers

charge the consumers in exchange of certain amount of tomatoes.

Place. This refers to the market channels and the associated activities

the tomatoes go through before it reaches the ultimate consumer.

Supplier. This refers to the source of the tomatoes purchased

by the retailer whether farmer or other middlemen such as wholesaler

and wholesaler-retailer.

Farmer. This refers to the person who owns or manages

a tomato farm.

Middlemen. This pertains to an individual or business who

specializes in buying and selling tomatoes.

Wholesaler. He/she is a merchant who sells to retailers

and wholesaler-retailers.

Wholesaler-retailer. This refers to a merchant who

buys and sells goods in bulk and directly sells to market stall

owners or to consumers but not in significant amount.

Place of transaction. It refers to the place where the

transaction between the retailer and supplier of tomatoes is being done.

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Method of buying. It refers to the way the retailer procures the

tomatoes either delivered, picked up, or both.

Transportation used. It is the mode of transport used to carry

the tomatoes from the suppliers’ area to the market stall of the retailer.

Marketing problems. These refer to the constraints encountered by the

retailers in buying and selling of tomatoes like high farmgate price, lack of market

information, high transportation costs, high physical risk, weak bargaining power,

unfair trade practices, low prices, perishability of the product and unfair trade

practices.
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REVIEW OF RELATED LITERATURE

Literature and Studies

The Tomato Industry

Tomato production is a good opportunity for Filipino farmers to increase their

income. However, their biggest challenge is to provide the volume of tomatoes that

the market demands on a daily basis for the whole year round (Lesaca, 2019).

There are various types of tomato based on use, such as the table and the

processing type. The table type is usually utilized for cooking or for salads, while

processing tomato is utilized for the production of tomato paste (Food and Agriculture

Organization (FAO), 2014). Most of the varieties commercially grown in the country

today are hybrids, leading to the genetic open pollinated varieties available, including

the farmer-saved cultivar Apollo, Del Monte and Rosanna. The more popular tomato

varieties include Diamante Max, Agatona, Fantastic, Mardan, Harabas, Fortune, King,

and King Kong for cooking; Escudero, Grace, and Aegean for salad; and Sweet

Million, Rojita, Amber, Season Red, Ilocos Red, Dorotea, and Tomato Berry Grande

for cherry tomato or processing (Philippine Council for Agriculture, Aquatic and

Natural Resources Research and Development, 2015).

In the Philippines, tomato is normally produced during the dry cool months

(November to April) of the year. While hybrid tomato can be grown during the rainy

season, production may be low due to the risks involved in producing the crop. This

leads to low supply which makes prices of fresh market tomatoes high. However, this
 10

gives high net return to those growers who were able to successfully produce and sell

them (FAO, 2014).

Moreover, the main mode of transportation from the farm to the market were

passenger jeepneys. The producers load the produce to these vehicles themselves and

sell it to their buyers in the market, which were the retailers. When selling the

produce, the retailers pay the producers, and they use ordinary plastics for packaging

(Arah et al., 2016).

Wholesalers were the major buyers of tomato as mentioned by 57.56% of

farmers in the PSA’s 2018 Survey on Costs and Returns of Tomato Production. This

was followed by processors with 30.44% of the farmers surveyed. Some 20% and

10.67% sold their produce to wholesaler-retailers and agents, respectively. Those who

sold their produce directly to consumers composed 3.78% of the producers. Very few

at less than 1% each sold to assemblers and cooperatives. The study surveyed tomato

farmers in the six (6) identified top producing provinces from each major island

group which were Ilocos Norte and Ilocos Sur in Luzon, Iloilo and Cebu in Visayas

and Bukidnon and Misamis Oriental in Mindanao.

On the provincial level, the proportions of tomato farmers who transacted with

wholesalers were high in Bukidnon (98.67%), Cebu (90.67%) and Misamis Oriental

(86.67%). On the other hand, majority or 87% to 96% of the farmers in Ilocos Norte

and Ilocos Sur sold tomatoes to processors while wholesaler-retailers were the leading

buyers of 69.33% of the tomato farmers in Iloilo. Also, transaction with agents was

mentioned by 21.33% in Bukidnon and direct selling to consumers was cited by 8%

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in Iloilo (PSA, 2018).

Socio-Demographic and Economic Profile of Tomato Retailers

Demographics are characteristics of a population which includes race,

ethnicity, sex, age, education, profession, occupation, income level, and marital

status. When crafting a survey, it is important that the researcher will assess who to

survey and how to breakdown overall survey response data into meaningful groups of

respondents (International Labor Organization, 2014).

Vegetable retailers are consolidators themselves and they do not just retail a

single commodity but a number of commodities. In terms of sex, retailers of high-

value fruits and vegetables are mostly male. For specific commodities such as lettuce

and tomato, retailers are also generally (63%) male (Llanto et.al, 2012). These

findings concur with the findings of Haruna et al. (2012), as cited by Salau and

Salman (2016), where majority (88%) of tomato marketers in Bauchi State were

male. On the other hand, the result of the study of Salau and Salman (2016),

presented that majority (70%) of the marketers were female with an average age of

39.5 years. This data suggests that most of the respondents were in their active age

which enables them to go about their business with vigor.

When it comes to years of experience in tomato trade, the study of Salau and

Salman (2016) showed that retailers had an average of 13.9 years. This implies that

most of the tomato retailers had been involved in tomato marketing for quite a long

time. The study also presented that majority (76.7 %) of the tomato retailers were
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married with household size ranging between 3 and 12 persons and an average of 8

persons. Majority (79.2%) of the respondents belonged to one cooperative society.

According to Akinsanmi et al. (2005), as cited by Salau and Salman (2016),

cooperatives serve as vehicle for development since they provide support services to

farmers. With this, members were likely to perform better than non-members because

of possible economies of scale.

In terms of educational attainment, majority of Filipino retailers have

relatively high educational levels which is quite understandable as generally retailers

were businessmen or business-minded growers who have increased the volume of

their production and became retailers of the commodities. Only 22% of the

respondents were not able to finish high school (Llanto et.al, 2012). High level of

literacy among tomato retailers was also revealed in the study of Salau and Salman

(2016) in Nigeria. About 64% of the surveyed retailers were literate. This implies that

knowledge can be easily disseminated among retailers.

Moreover, vegetable trading is considered as a family undertaking. Around

78% of retailer respondents claimed that they ask for help from some of the family

members. Most of the respondents also identified vegetable trading as their major

source of livelihood but there were some who relied on other activities apart from

vegetable trading (Llanto et.al, 2012). In terms of source of capital, most tomato

retailers use their personal savings as capital for their marketing operations. However,

there were other fund sources which include relatives, cooperative loans, and bank

loans (PSA, 2011).

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Importance of Tomato

Tomato is a vegetable crop with several uses. It is used well in salads as a

garnish, and in processing industry for making ketchup and sauce. With this, tomato

is currently considered as one of the most important vegetable crops not only in

Philippines, but all over the world. It is also one of the richest sources of vitamin C

and iron. Because of its diverse uses, production of tomato is more profitable than the

other crops (Penn State News, 2014).

The value of tomatoes produced in the Philippines in 2019 was approximately

3.8 billion Philippine pesos. In the same year, the country's tomato production volume

was estimated at 223.3 thousand metric tons (PSA, 2020).

Marketing Practices of Tomato Retailers

Fresh market tomatoes can be sold through different channels which include

roadside stands, farmers’ markets, community supported agriculture subscriptions,

local super markets, and restaurants. In the Philippines, tomato and other fresh

vegetables are usually sold in the wet markets and trading posts. This traditional

market is the same with a spot market where quality is seldom definite and prices are

primarily set by supply and demand (Montiflor, 2012). Because of this, prices

fluctuate within the day.

Librero and Rola (2000), as cited by Montiflor (2012), identified seven

marketing channels for vegetable, starting from three-layer channels to nine-layer

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channels. The farmer-retailer-consumer is an example of a three-layer channel. In the

Philippines, vegetable channels frequently have five or six layers arising from the

presence of multiple collector agents, retailers and wholesalers. Vegetable farmers

typically sell their produce to local retailers, collector agents and consolidators. Some

farmers trade with wholesalers in nearby urban wet markets (Montiflor, 2012).

According to Salau and Salman (2016), majority (57.3%) of retailers in

Nigeria directly buy tomato from production areas. Market place (40.9%) and suburbs

(1.8 %) were among the other sources. According to Llanto (2012), in the Philippines,

high-value vegetable retailers normally purchase the commodities from outside-the-

market sources. They mainly source their products directly from farmers, some buy

from other retailers, and only few purchase the commodities they trade from the

market. Despite the cost in terms of transport and time, the major reason for

purchasing the tomato outside of the market is the cheaper buying price.

Tomatoes may be packed and repacked numerous times on its way between

producers and consumers, depending on the length of the marketing chain. The

farmer may take his produce using a wooden box or plastic crate to the wholesale

market. A retailer who bought these may then transport the produce to his/her place

and repack it in plastic bags for convenient sale at his stall. Costs are associated with

various types of packaging (Farmer Update, 2015).

Packaging of tomatoes is usually used for transporting the product to the

retailers. The poor quality carton and polystyrene boxes utilized by the farmers

frequently lose their firmness and collapse as a result of condensation when tomatoes
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are transported in trucks without refrigeration. With this, immature tomatoes should

be contained in cartons, two-layer flats, and wire-strapped crates instead. Carton

packs, tray packs, three-layer stacked trays, and loose packs are popular ways to

package ripe tomatoes (Mafraq, 2014).

Problems Encountered in Marketing Tomatoes

Lack of proper grading, stiff competition among retailers, excess supply, fruit

perishability, and price fluctuation of fruit and vegetables, lack of storage facilities,

and a lack of center were identified as the issues faced by retailers. This being the

case, market stability, infrastructure facility, market demand, improved yield, better

price, storage facilities and processing facilities can be considered as opportunities for

expansion in tomato marketing (PSA, 2019).

According to the study of Meniga (2014), low product price is the main

problem in tomato marketing in Ethopia, followed by lack of storage facilities

(17.5%), and lack of market awareness (12.3%). On the other hand, Salau and

Salaman (2016) identified that the top three challenges faced by tomato marketers in

Nigeria were lack of resources (29.2%), high transportation costs (23%), and product

perishability (19.2%).

According to the Philippine Statistics Authority (2019), wide price

fluctuations are partly due to lack of knowledge on market prices. In this regard,

establishing a price information system will enable producers and consumers to be

better informed about current prices which can serve as guide in their production,
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purchasing, and marketing operations. Currently, the Department of Agriculture (DA)

provides price updates through daily price reporting on radio and bulletin boards in

all of its regional operations. Farmers, however, complained of "mispricing" in an

interview with government officials, which means that prices transmitted on the radio

were not the same prices that are quoted in the market (PSA, 2019). Lack of market

information, along with low prices, fluctuating prices, high competition and lack of

storage facilities, were also identified by Mutayoba (2018) as the major constraints

and challenges in marketing tomato.

Furthermore, high perishability is the foremost problem in marketing off-

season tomato (Evangelista, 2002). Due to perishability, seasonality, and price

instability, the tomato industry is considered a high-risk venture. These marketing

constraints raise important questions about the ways to overcome market problems of

tomato marketing.

Conceptual Framework

This study identified the marketing practices of tomato retailers in the City of

Batac which serves as one of the marketing centers in Ilocos Norte.

The tomato retailers’ socio-demographic and economic profile were

considered as variables of the study. The socio-demographic profile included the age,

civil status, educational attainment, sex, household size, organizational affiliation and

trainings/seminars attended. The economic profile consisted of the retailers’ source of

income, source of capital, and number of years in business. Retailers' marketing

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practices were examined in terms of the buying and selling practices they undertake

concerning product (choosing of variety, cleaning, sorting, and packaging); price (unit

used in buying, unit used in selling, person involved in determining price, mode of

payment, buying price, and selling price); and place (supplier, place of transaction,

method of buying, and transportation used). Problems encountered by the retailers in

marketing tomatoes were also identified.

The conceptual paradigm of the study is illustrated in Figure 1

Socio-demographic Profile Economic Profile

Age Source of Income
Civil Status Source of Capital
Educational Attainment Number of Years in Business
Sex
Household Size
Organizational Affiliation
Trainings/Seminars Attended

TOMATO
RETAILER

Problems Encountered Marketing Practices

in Marketing Tomatoes Product
Price
Place

Figure 1. Conceptual framework of the study

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Hypotheses of the Study

The following are the hypotheses of the study:

1. The tomato retailers have more or less the same socio- demographic;

2. The tomato retailers have more or less the same economic profile;

3. The tomato retailers have more or less the same marketing practices in

terms of buying and selling; and

4. There are problems in marketing tomatoes.

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METHODOLOGY

Locale of the Study

The study was conducted in the province of Ilocos Norte, particularly in the

City of Batac (Figure 2). The province is situated in the northwestern most part of the

Philippines extending for about 140 km in length occupying coastal plain in the island

of Luzon. It consists of 22 towns, and has a total land area of 3,644.91 square

kilometers. It is rugged, rocky and mountainous which runs from northwest in the

Cordilleras in the east of the total land area, 29% (1,054 km) and 59% (2,164.5 sq m)

are allocated to agricultural and forest area (PSA, 2016).

Ilocos Norte has a Type I climate that is characterized by two pronounced

seasons, the dry and wet which commonly occur from November to April and May to

October, respectively. The average temperature of the province ranges from 23-39ᴼC

(PSA, 2016).

The City of Batac is located in the southwestern portion of the province which

is 18 km south of Laoag City. It occupies an area of 15,880.22 ha with 43 barangays.

The City of Batac is primarily an agricultural land suited for major crops like rice,

tobacco, cotton, legumes and vegetable crops. This city is considered as one of the

market centers in the province. With the expansion of its market, it becomes the

“bagsakan center” where the retailers sold the products like vegetables, fruits and

other agricultural products. The City of Batac has a one-hectare public market where

agricultural products are being marketed (PSA, 2016).

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Figure 2. Map of Ilocos Norte showing the City of Batac Public Market, Ilocos Norte
as the locale of the study (Retrieved from Google Earth).
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Research Design

The study utilized one shot survey research design. Through survey research

design, the retailers’ socio-demographic and economic profile, marketing practices,

and problems encountered in marketing tomatoes were determined.

Variables of the Study

The variables of the study were the tomato retailers’ socio-demographic

profile (age, civil status, educational attainment, sex, household size, organizational

affiliation, and training/seminars attended) and the economic profile (source of

income, source of capital, number of years in the business). Other variables include

retailers' marketing practices in terms of buying and selling under product (choosing

of variety, cleaning, sorting, and packaging); price (unit used in buying, unit used in

selling, person involved in determining price, mode of payment, buying price, and

selling price); and place (supplier, place of transaction, method of buying, and

transportation used). The problems faced by the retailers marketing tomatoes were

also considered as variables of the study.

Research Instrument

The main tool for gathering related information of the study is the interview

schedule. The research instrument consisted of four parts. Part I and Part II focused

on socio-demographic profile and economic profile of the respondents, respectively.

Meanwhile, Part III covered the marketing practices of the tomato retailers (product,
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price and place) and Part IV identified the problems encountered in marketing

tomatoes.

Population and Sample

The respondents of the study were the retailers who are engaged in marketing

of tomato in their market stalls in City of Batac, Ilocos Norte. Quota sampling was

employed in the selection of 15 tomato retailers who served as respondents of the

study.

Data Gathering Procedure

The data needed in the study were gathered by the student-researcher with the aid

of the interview schedule. The survey questionnaire was written in English and

Ilocano dialect. During the interview process, Iloco was used to facilitate easier and

better understanding between the student-researcher and the respondents. The

student-researcher personally interviewed the tomato retailers. Likewise, non-

participatory observation was done particularly on the marketing practices of the

retailers.

A master list of registered retailers involved in the buying and selling of

products was obtained from the office of Department of Trade and Industry (DTI) in

the City of Batac.

The student-researcher gathered relevant data during the market days in the

study area. Before the conduct of survey, the student-researcher asked permission
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from the office of the city mayor.

Figure 3. The student- researcher during the conduct of interview and observation
of marketing practices of tomato retailers in the City of Batac, Ilocos
Norte.

Data Analysis

Descriptive statistics like frequency counts, percentages, and means were used

in the analysis and presentation of data on the socio-demographic and economic

profile, marketing practices and the problems encountered in marketing tomatoes.

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RESULT AND DISCUSSION

Socio- Demographic Profile of Tomato Retailer Respondents

The socio-demographic profile of the tomato retailer respondents in the City

of Batac, Ilocos Norte is shown in Table 1. There were 15 respondents in the study.

Age. As shown in Table 1, a total of 6 or 40% of the respondents have ages of

21-39 while 47% have ages of 40-59 and 13% are 60 years old and above. The

respondents have an average age of 43. This implies that most of the respondents

were in their active age and are still able to go about their business with vigor.

Civil status. Consistent with the findings of Salau and Salman (2016),

majority (60%) of the tomato respondents were married, while only 40% were single.

This implies that tomato respondents are looking for opportunities in the industry as a

source of income in order to provide for the needs of their families.

Educational attainment. All of the respondents had attended school, but only

one (7%) completed college. More than half of them (57%) were able to finish high

school while one or 7% was not able to, and 29% of them had undergone college.

This implies that the respondents were literate, which is consistent with the findings

of Llanto et al. (2012) and Salau and Salman (2016).

Sex. Female respondents dominate tomato marketing in the City of Batac,

Ilocos Norte. Results showed that majority (60%) of tomato retailer respondents were

female, while the remaining (40%) were male. According to the respondents, women

are better in marketing while men are more interested in planting.

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Table 1. Socio-demographic profile of tomato retailer respondents in the City of

Batac, Ilocos Norte (n=15).

CHARACTERISTIC FREQUENCY PERCENTAGE

Age
Young (21-39) 6 40
Middle (40-59) 7 47
Old (60 and above) 2 13
Total 15 100
Mean 43

Civil status
Single 6 40
Married 9 60
Total 15 100

Educational attainment
High school level 1 7
High school graduate 8 57
College level 4 29
College graduate 1 7
Total 15 100

Sex
Female 9 60
Male 6 40
Total 15 100

Household Size
1-5 6 40
6-10 9 60
Total 15 100
Mean 5

Organizational Affiliation
Non- member 12 80
Member 3 20
Total 15 100

Training Attended
Without training 12 80
With training 3 20
Total 15 100
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This concurs with with the findings of Salau and Salman (2016) wherein majority of

the retailers are women.

Household size. The average household size of the respondents was 5.

Among the 15 respondents, 40% of respondents lived in households with 1-5

members, while 60% lived in households with 6-10 members. This may imply that

respondents who belong to families with bigger household sizes can tap family

members for tomato marketing.

Organizational affiliation. The majority of tomato retailer respondents

(80%) are not affiliated with any organization. Hence, members of the Northern

Foods Corporation (NFC) account for 20% of the respondents. The respondents

pointed out that marketing activities are their priority and they do not have time for

tomato-related organizations and programs.

Trainings attended. Majority (80%) of the tomato retailer respondents had

not attended any training related to marketing tomatoes. Only three (20%) of them

had training on “Tomato Productivity in Ilocos Norte” which was organized by the

NFC and “Fruit and Vegetable Production for Processing” which was sponsored by

the DA. As previously mentioned, respondents were not interested in tomato-related

programs due to lack of time.

Economic Profile of Tomato Retailer Respondents

The economic profile of respondents, which comprised of the source of

income, source of capital, number of years in the business is presented in Table 2.

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Table 2. Economic profile of tomato retailer respondents in the City of Batac, Ilocos
Norte (n=15).

CHARACTERISTICS FREQUENCY PERCENTAGE

Source of income
Retailing 11 73
Non- Retailing 4 27
Total 15 100

Source of capital
Personal savings 12 80
Loan from cooperative 3 20
Total 15 100

Number of years in businesss

4 and below 9 60
5 – 10 4 27
11 – 15 2 13
Total 15 100

Source of income. Majority (73%) of the respondents’ primary source of

income was retailing, while 27% of those surveyed identified other activities as their

primary source of income. According to the study of Llanto et al. (2012), vegetable

trading is the major source of livelihood for most of the retailers, but there were some

who relied on other activities other than vegetable trading. It was also noted that

farming is the secondary source of income of all respondents.

Source of capital. Similar to Salau and Salman's findings (2016), personal

savings and earnings is the main source of capital of majority (80%) of the

respondents. Others (20%) secured loan from cooperative rural bank. This concurs

with the study of PSA (2011) which presented that most tomato retailers use their

personal savings as capital for their marketing operations.

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Number of years in the business. Majority (60%) of tomato retailer

respondents had spent at most four years in the industry, while some (27%) had 5-10

years of experience in the business and 13% had been in the business for more than

11 years. This implies that the respondents are more or less new entrants in the

industry.

Marketing Practices of Tomato Retailer Respondent’s

Table 3 shows the marketing practices of the tomato retailer respondents in

terms of the buying and selling practices they undertake concerning product

(choosing of variety, cleaning, sorting, and packaging); price (unit used in buying,

unit used in selling, person involved in determining price, mode of payment, buying

price, and selling price); and place (supplier, method of buying, place of transaction,

and transportation used).

Product

Choosing of Variety. The majority of respondents (67%) sell the NFC

variety, while Apollo, Diamante max, Ilocos red, Magilas and Native varieties each

had only 7%. The respondents prefer selling NFC variety since it is abundant in

Ilocos Norte. They also mentioned that their institutional buyer, the NFC, prefers the

NFC variety over other varieties. In fact, the said corporation encourages its

cultivation by distributing free NFC seeds.

 29

Cleaning. All of the respondents clean the tomato they purchased for retail.

According to them, the method of cleaning depends on the quality of the commodity

as

Table 3. Marketing Practices of tomato retailer respondents in the City of Batac,

Ilocos Norte (n=15).

PRACTICE FREQUENCY PERCENTAGE

Product
Choosing of Variety
NFC 10 67
Apollo 1 7
Diamante max 1 7
Ilocos red 1 7
Magilas 1 7
Native 1 7
Total 15 100a

Price
Unit used in buying
Per kilo 9 60
Wooden crate 4 27
Per box 2 13
Total 15 100

Unit used in selling

Per kilo 9 60
Wooden crate 4 27
Per box 2 13
Total
15 100
Mode of Payment
Credit 1 7
Cash 14 93
Total 15 100

Place
Place of Transaction
Farm 10 67
Home 1 7
Market 2 13
Warehouse 2 13
 30

Total 15 100

Table 3. (Continued).
PRACTICE FREQUENCY PERCENTAGE
Method of Buying
Picked-up 10 20
Delivered 3 67
Both 2 13
Total 15 100

Truck 11 73
Closed van 3 20
Motorcycle with open sledge 1 7
Total 15 100
a
- affected by round-off.

well as on the prevailing weather condition. The respondents wash their tomatoes

during the wet season because these are usually muddy, while they only polish them

by wiping during the dry season.

Sorting. Consumers want assorted tomatoes, therefore, none of the

respondents sort their products for retail. Buyers were given the option of selecting

the size and ripeness of the tomatoes they purchase.

Packaging. All of the respondents use either plastic, paper bag, wooden crate

and box in containing the tomatoes purchased. According to Farmer Update (2015),

plastic bags were used for convenient sale.

Price
 31

Unit used in buying. Sixty percent of the respondents preferred purchasing

tomatoes by kilo while 27% preferred per wooden crate and 13% by the box.

According

Figure 4. The unit used in buying tomatoes in the market.

to the majority of the respondents, per kilo basis of purchasing is preferred when

buying from farmers, while the other units of buying (wooden crates and boxes) were

usually preferred when purchasing from other suppliers. Some of the units used were

shown in Figure 4.

Unit used in selling. When it comes to selling, 60% preferred selling per kilo,

27% preferred selling per wooden crate, while 13% preferred selling per box.

According to the majority of the respondents, they prefer per kilo basis when selling
 32

to consumers due to higher mark up on the product.

Person involved in determining price. All of the tomato retailer respondents

claimed that they are the ones deciding on the price of the tomatoes they purchase for

retail. However, the price depends on the volume and quality of the commodity.

Mode of Payment. Most (93%) of tomato retailer respondents pay in cash

with the remaining (7%) paying on credit. According to the respondents, ease of

transaction is the main reason why they prefer cash payments in their business

dealings.

Buying price. During the month of February, the pricing of NFC tomato fruits

ranged from Php 25.00 to Php 35.00 per kilogram, while Apollo, Diamante max,

Ilocos red, Magilas, and Native tomato fruits were priced between Php 30.00 and Php

50.00 per kilogram. According to the respondents, the price of the non-NFC varieties

was higher due to limited supply.

Selling Price. The NFC tomato fruits are priced between Php 50.00 and Php

60.00 per kilogram, whereas Apollo, Diamante max, Ilocos red, Magilas, and Native

tomato fruits were priced between Php 60.00 and Php 70.00 per kilogram. The higher

selling price of the non-NFC varieties was also due to limited supply.

Place

Supplier. Similar to the findings of Salau and Salman (2016), all the tomato

retailer respondents in Ilocos Norte purchased from farmers. Respondents stated that

they do this to support farmers in the province and to ensure that the tomatoes they
 33

sell are fresh.

Place of Transaction. Sixty-seven percent of the respondents transacted with

their suppliers in the farm, 13% each in the market and warehouse, while 7% at home.

According to the retailers, they prefer to transact in the farm to ensure the quality of

the tomatoes they purchase.

Method of Buying. Majority (67%) of the respondents prefer to have their

goods delivered to their market stands. They chose this strategy because they lack the

necessary transportation to pick up tomatoes from suppliers. Some respondents (20%)

prefer to pick up tomatoes directly from suppliers in order to personally check the

quality of the items. Only a small percentage utilize both methods (13%). 

Transportation Used. The truck was utilized by the majority (73%) of

tomato retailer respondents while the motorcycle with open sledge (7%) and closed

van (20%) were employed by the remainder.

Problems Encountered by the Tomato Retailer Respondents

The problems encountered by the respondents were shown in Table 4. First

among the problems encountered by the respondents was high prices (60%). This

problem is intertwined with the lack of market information (13%), high transportation

costs (7%), high physical risk of the product (7%), weak bargaining power (7%) and

unfair trade practices (7%). High transportation costs was identified by Salau and

Salaman (2016) as one of the challenges in tomato marketing.

Consistent with the findings of Meniga (2014), majority (73%) of tomato

 34

retailers were concerned with low market price. Other marketing issues mentioned by

respondents include unfair trade practices (13%), high transportation costs and lack of

market information (7%).

Table 4. Problems encountered by the tomato retailer respondents in the City of

Batac, Ilocos Norte.

PROBLEM FREQUENCY PERCENTAGE

Buying
High farmgate price 9 60
Lack of market information 2 13
High transportation costs 1 7
High physical risk of the product 1 7
Unfair trade practices 1 7
Weak bargaining power 1 7
Total 15 100
Selling
Low market price 11 73
Unfair trade practice 2 13
High transportation costs 1 7
Lack of market information 1 7
Total 15 100
 35

SUMMARY, CONCLUSION AND RECOMMENDATION

Summary of the Findings

The study aimed to identify marketing practices of tomato retailers in the City

of Batac, Ilocos Norte. Specifically, it aimed to document the socio-demographic

profile and economic profile of retailers who were involved in the tomato industry.

Likewise, the study aimed to determine the existing marketing practices of tomato

retailers, and the problems they encountered in marketing of their products.

The respondents were 15 tomato retailers from the City of Batac, Ilocos Norte.

The data was tabulated using descriptive statistics such as frequency counts, means,

and percentages.

Results revealed that most of the tomato retailers in the City of Batac were in

their active age (47% were young and 47% were middle-aged) and married (60%)

who were looking for opportunities in the industry as source of income. All of the

respondents had gone to school but only one (7%) was able to graduate college.

Majority were females (60%) with 6 to 10 family members (60%). Majority (80%)

were not affiliated with any organization and had not attended any training (80%).

The primary source of income of the majority (73%) of the majority of the

respondents was retailing while farming was their secondary source of income.

Majority (60%) used personal savings as source of capital and have at most four years

in business.

Retailers' marketing practices were examined in terms of the buying and

 36

selling practices they undertake concerning product (choosing of variety, cleaning,

sorting, and packaging); price (unit used in buying, unit used in selling, person

involved in determining price, mode of payment, buying price, and selling price); and

place (supplier, place of transaction, method of buying, and transportation used).

Majority (67%) of the respondents purchased the NFC variety. All of them clean their

tomatoes for retail but the method depends on the quality of the commodity, as well

as on the prevailing weather condition. Consumers want assorted tomatoes, therefore,

none of the respondents sort their products for retail. They used either plastic, paper

bag, wooden crate and box in containing the tomatoes purchased.

In pricing, the respondents prefer to buy and sell tomatoes on per kilo basis.

All the respondents indicated that they were the ones deciding on the price but this

depends on the volume and quality of the tomato which will be purchased. Moreover,

most (93%) of them were paying in cash. Prices of non-NFC varieties were usually

higher than the NFC variety due to limited supply.

All respondents purchased their tomatoes from farmers and 67% preferred that

their purchases be delivered in their market stalls. Majority (67%) transacted with the

farmers in the farm while 73% of the respondents mentioned that the produce was

brought to the market using truck.

The main problems encountered by retailers in buying and selling were high

farmgate price (60%) and low market price (73%), respectively.

 37

Conclusions

Based from the findings of the study, the following conclusions were drawn:

1. Tomato retailers have more or less the same socio-demographic profile.

While both men and women can be involved in tomato marketing as a

business and source of work, the industry is strongly dominated by women

because men are more interested in planting. Other important findings

about the retailers’ demographics include retailers having good level of

education; respondents being in their active age and being able to go about

their business with vigor; and respondents having an average household

size of 5. Majority of the retailers have no organizational affiliation and

have not attended training;

2. Tomato retailers have more or less the same economic profile. Majority of

tomato retailers have similar sources of income as well as source of capital

and number of years in the business;

3. Tomato retailers' marketing activities are more or less similar in terms of

buying and selling practices they undertake concerning product (choosing

of variety, cleaning, sorting, and packaging); price (unit used in buying,

unit used in selling, person involved in determining price, mode of

payment, buying price, and selling price); and place (supplier, place of

transaction, method of buying, and transportation used); and

4. Problems do exist in retailing tomatoes in City of Batac, Ilocos Norte.

When it comes to buying tomatoes, the main problem encountered by

 38

retailers was high farmgate price. On the other hand, low market price was

the main problem experienced by tomato retailers in selling the commodity.

Recommendations

These are the recommendation based from the result of the study:

1. Since many tomato retailers had never attended training or seminar focusing

on tomato retailing, relevant skill-building seminars or trainings is strongly

advised to be held in order to improve their marketing awareness and

practices;

2. Formation of group such as associations and cooperatives is also

recommended for these are vehicles for development through the services

they provide to members;

3. Establishment of a real-time market information system, particularly about

price, is also recommended so that producers and consumers will be better

informed about current prices and will be guided in their production,

purchasing, and marketing operations; and

4. A follow-up analysis with variables not covered in this study, such as

volume purchase, storage, safety procedures, processing, and labeling, is

recommended.
 39

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 40

MENIGA, F. 2014. The Problems and Prospects of Tomato Marketing: An Emperical

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RESOURCES RESEARCH AND DEVELOPMENT. 2015. Information
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PHILIPPINE STATISTICS AUTHORITY. 2011. Banking other Commercial

Finance and Insurance. Retrieved from https:/ /psa. gov. ph/sites /default /files /
2011 PY_ Banking on June 21,2020.

_________. 2016. Crop Statistics of Philippines. Retrieved from https://psa.gov.ph.

on January 28, 2020.

_________. 2018. Cost and Return of Tomato Production. Retrieved from https:/ /psa.
gov. ph/ sites/ default/ files /SCR% 20 Tomato_Final% 20as% 20 of_07-04-
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Retrieved from www.pcaf.com.ph. on March 01,2020.

_________. 2019. Highlights of Foreign Trade Statistics for Agricultural

Commodities Philippines. Retrieved from www.agris.fao.org./ on January to
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_________. 2020. Crops Production Survey (CrPs). Retrieved from

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 41

_________. 2020. Tomato production value in the Philippines. Retrieved from https:
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SALAU, S. A. AND SALMAN M. A. 2017. Economic Analysis of Tomato

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on August 2020.
 42

APPENDICES
 APPENDIX A

LETTER TO THE MUNICIPAL MAYOR

Republic of the Philippines
MARIANO MARCOS STATE UNIVERSITY
Batac, Ilocos Norte

COLLEGE OF AGRIBUSINESS
____________
Date
HON. ALBERT D. CHUA
City Mayor
City of Batac, Ilocos Norte

Sir:

Greetings!
I am Alyshamae P. Loloquisen, a graduating student of Bachelor of Science in
Agribusiness fourth year College of Agriculture Food, and Sustainable Development,
Mariano Marcos State University “Marketing Practices of Tomato Retailers in the
City of Batac, Ilocos Norte”.
Since your municipality was chosen as my locale of the study, may I request that
I will be allowed to conduct interviews to registered tomato retailers in your place.
Your support and cooperation will be very much appreciated.
Thank you very much.
Very truly yours,

ALYSHAMAE P. LOLOQUISEN
Student researcher

Noted by:
Recommending Approval:

SHEENA MARIE JOY P. LIDORA

Chair, Department of Agribusiness
 APPENDIX B

List of the Respondents of Tomato Retailers in the City of Batac, Ilocos Norte

Name Address

1. Kristina Garcia Brgy. 03 Cangrunaan, City of Batac

2. Michael Bautista
3. Rubina Alzado
4. Margarita Adatan
5. Flordeliza Maliz
6. Abigail Beltran
7. Carlina Adina
8. Ruby Adina
9. Karmen Mercado
10. Alex Ronce
11. Donna Aileen Morales
12. Mercedes Lacambra
13. Zoralyda Cocson
14. Marnelyn Cocson
15. Izel Gelai Yarcia
Brgy. 16-N Quiling Norte, City of Batac
Brgy. 03 Cangrunaan, City of Batac
Brgy. 28 San Mateo, City of Batac
Brgy. 27-W Naguirangan, City of Batac
Brgy. 27-W Naguirangan, City of Batac
Brgy. 04 Nalupta, City of Batac
Brgy. 04 Nalupta, City of Batac
Brgy. 27-W Naguirangan, City of Batac
Brgy. 35 Bil-loca, City of Batac
Brgy. 31 Camandingan, City of Batac
Brgy. 17 Tabug, City of Batac
Brgy. 30-E Baoa East, City of Batac
Brgy. 03 Cangrunaan, City of Batac
Brgy. 04 Nalupta, City of Batac

APPENDIX C

INTERVIEW SCHEDULE FOR TOMATO RETAILERS

 Mariano Marcos State University
COLLEGE OF AGRICULTURE, FOOD &
SUSTAINABLE DEVELOPMENT
Department of Agribusiness
City of Batac 2906, Ilocos Norte

MARKETING PRACTICES OF TOMATO RETAILERS IN THE

CITY OF BATAC, ILOCOS NORTE

Questionnaire No. /Numero ti kwestyoner______________________________________

Date of Interview /Petsa iti pinag-interbyo_____________________________________
Name /Nagan____________________________________________________________
Address /Pagnaedan______________________________________________________
Household size /Bilang miyembro ti pamilya ___________________________________

PART I. SOCIO-DEMOGRAPHIC PROFILE/SOSYO-DEMOGRAPIK NGA

IMPORMASYON
1. Age /Tawen_______________________
2. Gender /Kinatao
[ ] Male /Lalaki
[ ] Female /Babae
3. Educational Attainment /Kangatwan nga Nagun-od nga Adal
[ ] Elementary Level /Saan a nakalpas ti Elementarya
[ ] Elementary Graduate /Nakagraduar ti Elementarya
[ ] High School Level /Saan a Nakalpas ti Sekondarya
[ ] High School Graduate /Nagraduar ti Sekondarya
[ ] College Level /Saan a Nakalpas iti Kolehiyo
[ ] College Graduate /Nagraduar ti Kolehiyo
[ ] Others (Please specify) /Dadduma pay (ilanad) ________________

4. Civil Status /Estado iti Biag

[ ] Single /Awan Asawana
[ ] Married /Naasawaan
[ ] Widow /Balo
[ ] Seperated /Nakisina
 5. Organization Affiliation /Nakaikappengan nga Organisasyon
Name of Organization /
Posisyon /Akem
Nagan iti Organisasyon
_____________________ Member /Miyembro Officer /Opisyal
_____________________ ________________ ______________
_____________________ ________________ ______________
6. Training Attended/ Inatendaran a Panagsanay Mainaig iti Pinaglako

Title /Tema ti Sponsor/Host/

inatendaran a Nangorganisa ti Year /Tawen
Panagsanay Panagsanay
_______________________ ________________ ________________
_______________________ ________________ ________________
_______________________ ________________ ________________

PART II. ECONOMIC PROFILE /EKONOMIKO NGA IMPORMASYON

7. Source of Income /Pagtaudan iti Masapulan
Sources /Pagtaudan iti Primary (Amount)/ Secondary (Amount)/
Sapul Kangrunaan a Maikadwa nga Pagtaudan
Pagtaudan iti iti Sapul (Gatad)
Sapul (Gatad)
Selling /Aglako ________________ ______________________
Farming /Panagtalon ________________ ______________________
Others (Please specify) ________________ ______________________
Dadduma pay (ilanad)
8. Source of Capital /Paggapwan iti Kapital
[ ] Personl Savings /Personal nga Urnong
[ ] Loans from Cooperative Rural Bank /Utang nga Aggapu iti Kooperatiba
[ ] Loans from Friends /Relatives /Utang nga Aggapu iti
Gagayem/Kabagyan
[ ] Loans from Usurious Lenders /Utang nga Aggapu Kadagiti
Agpapautang
[ ] Government Subsidies /Grants /Subsidiya nga Aggapu Gobyerno
[ ] Others (Please specify) /Dadduma pay (ilanad)
_____________________

9. Number of Years in the Business /Kinabayag iti Negosyo

[ ] 4 and below
[ ] 5-10
[ ] 11-15
[ ] 16-20
PART III. MARKETING PRACTICES /PANAGMANEHAR ITI MAILAKO

Product/ Produkto

10. Variety sold /Clase iti Kamatis nga Mailako

[ ] NFC
[ ] Apollo
[ ] Native
[ ] Ilocos Red
[ ] Diamante Max
[ ] Others (Please specify) /Dadduma pay (ilanad)_____________________
11. Activities /Practices Done by Traders /Araramiden /Panagmanehar
iti Aglako
Activity /Aramid Yes/Wen No/Saan
[ ] Grading /Pagsisinaen _______ _______
[ ] Cleaning /Dalusan _______ _______
[ ] Repacking /Pinangbungon _______ _______
12. Sorting /Pinangisina
Type of Tomato / Small / Medium Big / Reject/ Assorted /
Tipo iti Kamatis Bassit /Kalalae Dakkel Babasit Aglalaok
ngan na unay

[ ] Unripe /Naata _______ ________ ______ ______ _______

[] _______ ________ ______ ______ _______
Halfripe /Medyo
Naluom
[ ] Ripe /Naluom _______ ________ ______ ______ _______
[ ]Assorted / _______ ________ ______ ______ _______
Aglalaok

13. Cleaning/ Pinangdalus

[ ] Washing / Bugwan
[ ] Wiping / Punasan
[ ] Others (Please specify) Dadduma pay (ilanad)
_________________
 14. Packaging/Pangikabilan
[ ] Plastic bag
[ ] Paper bag
[ ] Others (Please specify) Dadduma pay(ilanad)
__________________

Price/ Presyo

15. Unit Used in Buying and Selling /Kangrunaan nga Pinaggatang

Pinaglako

Buying /Pinaggatang Unripe/ Half Ripe/ Ripe /

Naata Medyo Naluom
naluom
[ ] Per kilo ________ ________ _________
[ ] Wooden crate ________ ________ _________
[ ] Per box ________ ________ _________

Selling /Pinaglako
[ ] Per kilo ________ ________ _________
[ ] Wooden crate ________ ________ _________
[ ] Per box ________ ________ _________

16. Person Involved in Determining Price /Tao nga Makin amo nga
Agibaga Presyo

[ ] Seller/ Aglaklako __________________

[ ] Others (Please specify)/ Dadduma pay __________________
(ilanad)

17. Mode of Payment /Wagas nga Pangala iti Bayad

[ ] Credit /Utang
[ ] Others[(Please
] Cash /Kwarta
specify) /Daduma pay (ilanad)___________________
[ ] Installment /Bayad-bayadan

Place/ Lugar

18. Supplier /Paggapwan

Person /Tao
[ ] Farmer /Mannalon
[ ] Assembler- wholesaler/Viajero
[ ] Wholesaler- retailer/ Manggulgulpi ken Agtitinge
[ ] Wholesaler /Manggulgulpi
[ ] Others (Please specify)/ Dadduma pay (ilanad)
 19. Place of Transaction /Lugar iti Transaksiyon

Place/Lugar Buying/ Selling/

[ ] Farm /Talon
[ ] Home /Balay
[ ] Market /Tiendaan
[ ] Warehouse /Bodega
Paggatangan Paglakwan
_________________ ____________________
_________________ ____________________
_________________ ____________________
_________________ ____________________

20. Method of Buying /Kababalin nu Kasanu Pinaggatang

Buying /Pinaggatang
[ ] Picked up
[ ] Delivered
[ ] Both

21. Transportation used/ Transportasyon nga usaren

[ ] Motorcycle sledge
[ ] Closed Van
[ ] Truck
[ ]Others(Please specify)/ Daduma pay (ilanad)
___________________

PART IV. MARKETING PROBLEMS /PROBLEMA TI PINAGLAKO KEN

PINAGGATANG TI KAMATIS
Suggested Solutions /Singasing iti
Buying /Panaggatang
Solusyon
[ ] High price /Nangato nga _________________________
presyo
[ ] Lack of market information / _________________________
Kurang ti impormasyon
[ ] Unfair trade practices / _________________________
Saan nga usto nga aramid
[ ] Poor bargaining/ _________________________
Nakapsot nga panagibaba iti
presyo
[ ]High transportation costs/ _________________________
 Nangato iti bayad ti
transportasyon
[ ] High physical risk of the ________________________
product/
Ado mapirdi nga kamatis
[ ] Others (Please specify)/ _________________________
Dadduma pay (ilanad)

Selling/ Pinaglako
[ ] Low market price / ________________________
Nababa nga presyo diay
tiendaan
[ ] Lack of market information / _________________________
Awan umno nga paggapwan
iti impormasyon
[ ] Unfair trade practices/ _________________________
Saan nga usto nga aramid
[ ] High transportation costs/ ________________________
Nangato iti bayad ti
transportasyon
[ ] High physical risk of the ________________________
product/
Ado mapirdi nga kamatis ________________________
[ ] Others (Please specify)/
Dadduma pay (ilanad)