Value Chain Analysis of Mandarin in Nueva Vizcaya, Philippines

Abstract

Mandarin production and marketing has developed significantly in recent years. However, the mandarin industry in Nueva Vizcaya, Philippines, a well-known mandarin producer, could not meet local demand for mandarin in terms of quantity and quality. There is a definite need for government to intervene for the industry’s growth and development. To be able to identify the specific intervention, value chain analysis (VCA) was conducted. Primary data was gathered by interviewing key players such as farmers and traders. Farmers were purposively selected from the three highest-producing municipalities. Tracer methodology was employed to determine the other key players along the chain. Secondary data were collected from different agencies. Results show that mandarin in Nueva Vizcaya has five chains. The value added from one node to the next one ranges from PhP2.26 to PhP25.00 per kilogram, with the last node, the retailers, getting the highest net margin. Kasibu, the municipality where the industry is more developed, reported farmers getting a higher value for their mandarin (PhP23.58) than farmers from the two municipalities, Diadi (PhP6.87) and Quezon (PhP10.21). Mandarin from Kasibu likewise had a longer chain, showing more marketing activities, and the mandarin reaching other provinces and regions. The study produced four recommended interventions: capability building of farmer associations, forming farmers into production clusters for standardized production and marketing practices, management by using a package of technology, and continuous R&D on the enhancement of the mandarin industry from input provision to postharvest practices.