MARKET CHAIN STUDY

(STEP 3)
HANNAH R. DOMINGO
COOPERATIVE DEVELOPMENT SPECIALIST II
CITY COOPERATIVE DEVELOPMENT OFFICE - SAN JOSE CITY-LGU
LAYUNIN NG PAGSASANAY

• Maunawaan ang kahalagahan ng Market Chain Study

• Maintindihan at maisagawa ng maayos ang proseso ng
paggawa ng Market Chain Study
• Malaman ang mga pangangailangan at oportunidad ng
merkado
 STEP 2 AND STEP 3 OUTPUT

Market Study Team (MST)

Supply Study Team (SST) • Market Information Agro-enterprise
• Production Module + Gathering = Objectives
• Cluster Supply Plan • Consolidation and
Analysis

Reference: Ms. Joan Uy, JGF Consultant Presentation

 MARKETING

- ang paggalaw ng produkto mula sa bukid patungo sa

konsumer
- pagtuklas kung sino ang mga buyer, ano ang mga
pangangailangan nila ang kumita sa pamamagitan ng pag-supply
sa mga kailangan nila
Customer Oriented Business Activity

Reference: Ms. Joan Uy, JGF Consultant Presentation

 SUPPLY AND DEMAND

Demand – dami ng produkto na nais bilhin ng buyer at

kayang bilhin depende sa presyo ng produkto

Supply – dami ng produkto na kayang i-produce at ibenta ng

mga prodyuser batay sa tinakdang presyo
o

Reference: Ms. Joan Uy, JGF Consultant Presentation

 SUPPLY AND DEMAND: EFFECT ON PRICE

When Supply is greater than demand

When Supply is lesser than demand

Reference: Ms. Joan Uy, JGF Consultant Presentation

 WHAT AFFECTS SUPPLY AND DEMAND

SUPPLY DEMAND
- Price - Price
- Pest and Diseases - Product
- Weather Quality
- Farm Inputs - Buyer
- Irrigation Preference
- Storage - Product
- Production Substitutes
- Road and
Transport

Reference: Ms. Joan Uy, JGF Consultant Presentation

MARKET CHAIN, PRODUCT FLOW AND VALUE ADDITION

1. Main Chain Actors (Producers and Buyers)

Farmer Trader/ Trader/A Consolidator Processor Retailer Consumer

Agent ssembler

SUPPLY DEMAND

2. Business Development Services Providers (BDS)

INFRA, ROAD,
FINANCING FARM TRANS- PACKA IRRI-GATION
MARKET TECHNO ORGANIZING/
INPUTS PORT GING INFO LOGIES EXTENSION

WITH FEES NO FEES

Reference: Ms. Joan Uy, JGF Consultant Presentation

 VALUE ADDITION IN A MARKET CHAIN

1. Main Chain Actors (Producers and Buyers)

Farmer Trader/ Trader/A Consolidator Processor Retailer Consumer

Agent ssembler

SUPPLY = P 16.00/ kilo palay DEMAND = P 40.00/kl milled rice

2. Business Development Services Providers (BDS)

Reference: Ms. Joan Uy, JGF Consultant Presentation

MARKET CHAIN STUDY

Proseso ng pagkalap at pag-Analisa ng

mga datos tungkol sa:
- Market Actors (Buyers and BDS provider)
- Marketing activities
- Puhunan at Kita
- Suliranin at oportunidad
Patungkol sa paggalaw ng napiling
produkto
 BAKIT MAHALAGA ANG MARKET CHAIN STUDY

❑Mas maiintindihan ang “flow” ng produkto

❑Makilala ang mga buyers na magbibigay ng mas

magandang presyo na kaya mong tugunan ang
pangangailangan nila
 BAKIT MAHALAGA ANG MARKET CHAIN STUDY

❑Akmang mercado o BDS na

makakatulong sa marketing
activities
❑Value adding activities para
mas magkaroon ng
oportunidad kumita ng malaki
 MCS ACTIVITIES

Part 1: Market Information Part II: Consolidation and

Gathering Analysis
• Market Chain Mapping • Value Capture Map
• Market Visit and Interview • Estimated Sales, Cost and
• Price Monitoring Marketing Profit
DRAWING THE MARKET CHAIN MAP

A Market Chain Map is a

drawing or diagram that tells
the story of the flow of the
selected product from the
farmers to their existing
potential buyers Source: CRS The Clustering Approach to Agroenterprise Development for
Small Farmers
 MARKET CHAIN MAPPING

WORKSHOP 1
1. I-drawing ang kasalukuyang “flow” ng
inyong produkto mula sa FARM
papuntang BUYER/CONSUMER
Nakalagay dito ang mga gawain at
mga actors na kasama sa bawat
gawain.
2. Ipaliwanag ang nagawang flow ng
produkto Source: CRS The Clustering Approach to Agroenterprise Development for
Small Farmers
MAIN CHAIN ACTORS – TYPE OF BUYERS

Traditional Local Markets • Local Trader

• Trader Agents
Traditional Regional Markets
• Traders (wholesale and retail)
(Bagsakan)
• Consolidators
• Supermarkets

Institutional (formal/new) •
•
Fastfoods
Hotels & Restaurants
• Processors
• Specialty Markets (ex. Organically grown)
• Direct Consumer Markets
Secondary Source of Information:
1. Markets industries
2. Government agencies (Agriculture Offices)
3. Research institutions

Reference: Ms. Joan Uy, JGF Consultant Presentation

 ANO ANG MAS MAGANDANG MERKADO

Traditional Local Markets

Traditional Regional Markets VERSUS Institutional (formal/new)

(Bagsakan)
REWARDS
REWARDS • Relatively Stable Price
• Jackpot Price • Clear Quality Standards & Sales arrangement
• Buy Mixed Prices
RISK
RISK
• Strick Requirements – more work
• PRICE DROP
• Rejects - quality standards or sale agreement not met
• STOP BUYING

Reference: Ms. Joan Uy, JGF Consultant Presentation

 PRICE MONITORING
SAMPLE ONION PRICE TRENDS
35
Over
Over Supply
30 Supply
30 28

25
Local
25 Market Price
PRICE/KG

20 18 18 18 18 18 18 18 18 18 18
16 Institutional
14 Market Price
15
12
11
10
10 8 8
Limited Supply
5

0
1ST W EEK 2 N D W E E K 3RD W EEK 4TH W EEK 5TH W EEK 6TH W EEK 7TH W EEK 8TH W EEK 9TH W EEK 10TH
W EEK
DELIVERIES
INTERVIEW BUYERS AND BUSINESS DEVELOPMENT
SERVICE PROVIDERS
Over
Supply
Importance of Personal Interview

✓ Develop confidence and mutual trust

both for the Supplier and for the
Buyer

✓ There may be other possible follow

up questions
Source: ttps://postharvestinstitute.illinois.edu/
MGA TANONG SA MCS

1.Anong gulay at quality ang hinahanap (Size, Color, etc)

2.Ano packaging o lalagyan ng gulay (dami bawat packaging)
3.Gaano kadalas bumili?
4.Pinakamadami/Pinaka-kakaunti binibili,? At anong mga
buwan? Bakit?
5.Presyo sa kasalukuyan? Sa nakalipas na 12 buwan.
✓ Buwan na mababa/mataas ang presyo at magkano?
MGA TANONG SA MCS
Over
Supply

6. Paano ang pagbabayad? Cash on Delivery o Term? Kung

terms, gaano katagal at ilang araw?
7. Pick Up/Deliver ang mga produkto? Kung deliver, saan lugar?
8. Saan nangagaling ang produktong binibili? Ano po ang gusto
nyo sa isang supplier?
9. Kanino binebenta ang mga produkto
10. Interesado ba kayong kumuha sa amin?
INTERVIEW TIPS
Before the Interview

1. Set up an appointment
2. Be prepared and master the questions
3. Wear presentable and comfortable
clothing
4. Be punctual
5. Designate interviewer and documenter
6. Bring notebook, questioners guide,
pen.
INTERVIEW TIPS

During the Interview

1.Introduce yourself/group/organization
2.Purpose of interview
3.Respect the interviewee time especially
during busy hours
4.Ask simple and clear questions
5.Be friendly and relaxed
INTERVIEW TIPS

During the Interview

6. Be prepared to listen and learn

7. Ask sensitive questions last
8. Thank them after interview for their
participation
 DIRECT OBSERVATIONS TO VARIOUS TYPES OF MARKETS

Other observations, while

conducting market interview,
are also important, such as,
• Travel Time
• Busy hours
• Traffic Situation, etc
ACTIVITY

Role Playing of Personal

Interview
END OF DAY 1 ACTIVITY