Comparative Analysis of Value Chains of Virgin Coconut Oil in Quezon and Laguna, Philippines

Trisha Jasmin Cañeda and Bates M. Bathan

Journal of Economics, Management & Agricultural Development, 2019, vol. 5, issue 01

Abstract: The study compares the value chains of virgin coconut oil (VCO) in Quezon and Laguna. Respondents include 18 VCO processors, 44 coconut farmers, 5 coconut assembler-wholesalers, 1 VCO assembler-wholesaler, and 8 VCO retailers. Descriptive, profitability, value addition, and marketing efficiency analyses were done. The most efficient marketing channel was found in Quezon and this involved farmers and assembler -wholesalers of coconut, large-scale processor-cum-wholesaler-retailers of VCO who used the fresh-wet-cold-pressed-absolute-no-heat-disc-centrifuge separation method, and VCO consumers. The problems and constraints in the value chain were unstable prices of fresh and matured coconut, insufficient supply of coconut for VCO processing, low or varied quality of VCO, and difficulty in complying with the requirements of the Food and Drug Administration and Philippine National Standards for VCO. The study recommends adoption of productivity measures in coconut production, market arrangements between farmers and coconut buyers, use of fresh-wet-cold-pressed-absolute-no-heat-disccentrifuge separation method in VCO processing, technical assistance to help processors comply with FDA and PNS requirements, and formation of a VCO cooperative in Laguna.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pjemad:309429

DOI: 10.22004/ag.econ.309429

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