Challenges and Strategies in Optimizing the Calamansi Value Chain in Small Island Agribusiness: A Case Study of Homonhon Island, Philippines

Abstract

Calamansi (Citrofortunella macrocarpa W.) is a top crop in the small island communities in Homonhon Island, Guiuan, Eastern Samar, Philippines, with significant production and potential for adding value. However, due to their isolation, scarcity of resources, and exposure to climate and natural disasters, Homonhon’s calamansi farmers are more vulnerable to economic and environmental problems. In this paper, we analyze the calamansi value chains on the small island of Homonhon. Examination of the product, information, and payment flow of an island-based value chain from the input supply sector, production, and trading until the products are delivered to the end consumers was done. We conducted key informant interviews (KIIs) with diverse participants, including farmers, assemblers, traders, and other institutional buyers, to comprehensively understand the calamansi value chain. The Dephi methods was employed to gain deeper insights into strategies and assess the feasibility of interventions within the value chain. Results showed a huge gap in the supply of calamansi in the region. In the island-based value chain, product perishability, market size, farmer’s income are all negatively impacted by the island's environmental restrictions, lack of processing facilities, and high transportation costs. Payment methods vary within the value chain, with cash and credit terms in the upstream and cash preferred downstream. These findings highlight the need for improvements in production practices, communication, and processing capacity, emphasizing the importance of government support and stakeholder cooperation. Furthermore, the identified challenges within the value chain highlight the necessity for improvement in post-harvest technologies, value addition through processing, and market diversification to enhance the overall competitiveness and profitability throughout the entire value chain.