Value Chain Analysis of Calamansi in Cagayan Valley, Northern Philippines

Abstract

Calamansi (×Citrofortunella microcarpa) is an economically important citrus cultivar produced in Cagayan Valley. Its demand is high because it is used in various condiments, beverages, dishes, marinades, preserves, beauty products, and medicines. However, data shows that the production of and hectarage planted to calamansi in the Cagayan Valley is decreasing. Thus, this study was conducted to analyze the calamansi value chain and suggest areas for intervention. Following the methodology published by the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD), data were gathered to answer six key questions: key customers and product requirements; product, information, and payment flow; activities and services along the chain; key players and their roles; critical logistic issues and concerns; and external influences. The key customers for calamansi are the processors. But despite the number of processors who could buy volumes of calamansi, farm-gate price would range from PhP 2 per kg during the peak months of production to PhP 65 per kg during the lean months. The price is normally dictated by consolidators who sell the calamansi to processors. Generally, processors buy from consolidators and not directly from farmers. The main reasons for this practice is that individual farmers could not supply the needed volume and quality of calamansi required by processors; thus, farmers are at the mercy of consolidators. Recommendations for intervention are the following: accredited sources of seedlings for quality produce, increase technical support, linking of farmers to markets, and organizing farmers into association or cooperatives for them to process their own produce and to be able to avail of government support from production to processing.