Analyzing Pili Nut Value Chains in Sorsogon Province, Philippines

Kathleen Gelilio, Agnes T. Banzon, Jeanette Angeline B. Madamba, Loida E. Mojica

Abstract


The importance of the pili nut (Canarium ovatum Engl.) industry cannot be discounted due to its immense domestic potential in Sorsogon Province, Philippines, where 62% out of the total volume of canarium nut production in the Bicol Region is concentrated. This paper examined the pili nut value chain network in the study area. Supplemented by secondary data sources, primary data gathering was conducted involving interviews with 15 pili farmers, 30 processors, and 20 traders located in Sorsogon City and 5 other pili-growing towns in Sorsogon Province. Analytical tools such as descriptive and net margin analyses were used. Results showed that farmers, processors, processor-wholesaler-retailers, processor-retailers, wholesaler-retailers, and retailers comprised the value chain. Four pili pulp and shelled pili chains where processors were not participants were identified while 12 dried kernel chains were mapped out. Selling dried kernel pili during the lean season gives farmers the highest value at PhP147.94 per kilogram rather than selling raw or shelled pili where returns are only one-fifth of this value. Traders refrain from buying dried kernel pili from farmers since they prefer buying pili with pulp and shelled pili so they can do the processing themselves. Chain problems include the lack of technical, financial, and information support; scattered location of pili farms; and low levels of product innovation. Recommendations offered include forming a cooperative or consolidating group to assemble all harvests, justify the purchase of depulping and other processing equipment, hasten production and processing technology transfer, and increase competitiveness.




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