The factors of marketing channel selection of queen pineapple farmers in Camarines Norte

Abstract

ABSTRACT Purpose - Pineapple cultivation provides sustainable livelihood to many smallholder farmers in developing countries like the Philippines. However, income is affected by the selection of marketing channels. This article assessed the factors affecting the selection of marketing channels of Queen Pineapple farmers in Camarines Norte. Methodology - A mixed data collection process was used, including semi-structured questionnaires and key informant interviews. Primary data gathered from 96 randomly sampled farmers and 32 purposively sampled buyers were used to characterize the nature of the channels. Profitability was measured by calculating the marketing costs, net profit, and profit margin per channel. The Chi-square statistics were used to test the influence of socio-economic variables on the marketing channels, while descriptive statistics were used to interpret the factors affecting the selection of marketing channels. Findings - Among the five identified channels, respondents preferred the wholesaler channel despite low profitability. Quick cash was identified as the major factor in the selection of marketing channels. A significant relationship relative to marketing channels was traced to the interplay of the following key factors: gender, civil status, location, and sources of income. Profitability analysis dictates that the optimum channel for farmers is the direct channel, but requires higher capital for added marketing costs. Income analysis showed that the majority of the farmer respondents were living below the poverty threshold. Conclusion – Financial pressures hinder most pineapple farmers from choosing the most profitable channel. It is hereby recommended to sell via direct channel by batch through synchronized harvesting; adopt a multi-crop pineapple production system to maximize land utilization; secure off-farm employment for an added source of capital and income; explore a joint marketing system to sell in bulk inside and outside the province; seek logistical and technical assistance from the LGUs, cooperatives, and DA to strengthen market linkage; and adopt the value chain concept to add value to the product. Keywords: Profitability analysis, income classification, type of marketing channels, poverty threshold JEL Codes: L10, O13, P42