multipurpose tree species research for small farms: strategies ... - part

Table 2. Components and goals of the marketing system.
Components (sub-systems) Intermediate Goals Ultimate Goals
Producers Minimize marketing
obstacles
Flow Facilitate product,
financial, and
information flows
Equalize supply
and demand
Fair prices for Promote stable
products price, income
Maximize longterm
profit
Functional Increase income Reasonable
return on
investment
Market channel Minimize short-term Stablize supply
risk Maximize longterm
profit
Consumers Reasonable price Satisfaction at least cost
Market Improve market Minimize market
environment performance imperfection
The system is the same for the marketing of
fuelwood, charcoal, and minor forest products
such as ornamentals, bamboo, nipa (Nypa
fruicans) and rattan (Calamusspp.). Fuel.wood
collected by farmers from the forest, their own
wodlots or backyard tree gardens is split and
bundled at 10-15 kg/bundle. These are carried
to the roadside or hauled by animals (carabao).
Sale to consumers may take place along the
road or the wood may be taken to town.
Fuelwood istransported by jeepney or other
light vehicles for distribution to retail outlets
and to the final consumers, ie. households or
bakeries.
Bamboo marketing follows almost the same
pattern to its ultimate end users -- households
for construction, fish pen owners and
small-scale furniture and handicraft
manufacturers. For rattan, the forest occupants
are the cutters/harvesters who are paid a
minimal fee for their services by contractors, the
authorized agents of rattan concessionaires.
A marketing program in eastern Mindanao
provides a market outlet for the participants of
the smallholder tree planting project. Given
credit and technical assistance, smallholders
46
engage in the planting of fast-growing trees such
as Leucaena and P. falcataria for fuelwood,
charcoal, leaf meal, or poles to prop bananas.
Props are sold to nearby banana plantation
owners. P.falcalaria ischanneled to the Paper
Industries Corporation of the Philippines
(PICOP) for its pulp and paper mill.
Arrangements specify the schedule of
harvesting, haulng to the roadside, and
transport to the null. As in most marketing
contracts, a predetermined price is set.
To produce electricity, the National
Electrification Administration (NEA) has
embarked on a program of leucaena planting
for its dendrothermal plants. So far, there has
been no in-depth assessment of the marketing
system under this program or its impact on the
farmers' welfare.
Marketing Channels
Calderon and Diaz (1986) identified various
m'arket channels for agro?:restry products, such
as annuals and fruit, produced in selected areas
of northeastern Leyte, Iloilo and Nueva Ecija.
The most common patterns are presented in
Table 3.