IMPROVING THE SUPPLY CHAIN OF THE TILAPIA INDUSTRY IN THE PHILIPPINES Dr. Wilfred Jamandre*, Upton Hatch, Remedios Bolivar, and Russell Borski Central Luzon State University (Philippines) and North Carolina State University Improving the Supply Chain of Tilapia Industry of the Philippines Abstract This study evaluated the Philippine tilapia supply chain including the roles of key actors, logistical issues, external influences, and transaction flows among market levels. It identified improvement areas and provided recommendations for the industry. Key players include hatcheries, nurseries, commercial/smallscale farmers, consumers and institutional buyers. Pampanga, Batangas and Laguna are major tilapia sources while Metro Manila, Angeles and Baguio are the major demand centers. Dagupan is the major tilapia transshipment point for Northern Luzon. Many farmers employ a circuitous production technique to meet markets preferences. Direct buying and selling at central markets are the common operations of the tilapia industry. Consumers generally prefer whole live fish with size from 250 300 grams per fish. The requirements of institutional buyers are more varied. Filleted tilapia requires about 2-3 pieces per kg. High costs of logistics and transactions; lack of cold storage and transport vehicles; and meeting delivery requirements are the major concerns of nurseries, farmers and traders. Irregular supply of desired quality and volume of tilapia, limited capital for expansion, and predatory market practices are the main concerns of processors. Some recommendations to address the issues and concerns, are: encourage the establishment of more nurseries while intensifying technology transfer to farmers; conduct promotions for niche opportunities of tilapia; motivate small farmers to link with supply chains through an incentive mix; institutionalize an accreditation program for feed manufacturers, hatcheries, processors, etc.; and provide capital windows to improve facilities and reduce logistics and transaction costs in the entire supply chain.
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",*+%4%/%(0) INPUT PROCESS OUTPUT! The Philippine Tilapia Industry! Chain actors, key activities and roles,! Flows of product, information and payments! Costs and margins associated with each practice! External influences! SCM! New Institutional Economics:! Relationship Marketing! Operations Management and Logistics! Supply Chain Maps! Performance of tilapia supply chain! Areas for improvement in the supply chain (Other recommendations) -*.40)2$,2-)2'4)1%&,$2(,) B&N"5.9((K/(KKK/(KO/(0IB(,.'(A0B( P(@,1?@&%:(,.'(.3%9&%:(5=&%,15%9( HQ($,%-&%9( L(=%5?&995%9( HL(1%,'&%9R?5.95#"',15%9R9@"==&%9( EE(".9G13G5.,#(S3:&%9( Routes of SC mapped Supply Chain Players Number of Respondents Hatchery and Nursery Operators 3 Fish farmers 15 Bicol-Laguna-Batangas-Manila- Processors 2 Baguio (Chain 1): Traders/consolidators 8 Institutional buyers 5 Pampanga-Pangasinan-Ilocos and Isabela - Baguio and Manila (Chain 2): Hatchery and Nursery Operators 2 Fish farmers 13 Processors 2 Traders/consolidators 16 Institutional buyers 6
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"26%$)$%.*,-) MAJOR SUPPLY CENTERS Hatcheries Fries Pampanga Laguna Batangas Tilapia Fries Camarines Sur Marketable fish Marketable fish MAJOR TRANSSHIPMENT POINT Dagupan City Malabon Angeles MAJOR DEMAND CENTERS Baguio City Cagayan Valley Metro Manila Cordillera Administrative Region Isabela Ilagan La Union & Ilocos Provinces "26%$)$%.*,-)
#$%4.1*)3/%7)E5!1%/C/2(.'2I52*2'(2-C"2'!/2I52(.!%)$%.*,G) Trader (live) Local market Hatchery Nursery Laguna FRY Hatchery/Nursery Batangas F i n g e r l n g s Grow-out pond Semi-intensive Laguna/Rizal J(-5.1@9(?5.'"G5.".N( Cage operator Batangas/Taal Processors (frozen) Consolidator/Trader Trader Marketable size (live) (live) Specialty shop - Monterrey (Manila, Tuguegarao) (live) (live/frozen) Local market Fastfood shop Supermarket Local market FRY Marketable size tilapia (live) (live) Central fish market (Malabon) (live) Hatchery Camarines Sur Wholesale shipper viajero (frozen) (frozen) Supermarket Manila Pangasinan Baguio #$%4.1*)3/%7)E#2"#2'(2)J)#2'(2-!'2')C)52(.!%)$%.*,G) Local market Grow-out pond Pampanga Marketable size (live) (live) Trader Baguio Ilocos FRY/FINGERLINGS - Direct stocking Central fish market Dagupan Isabela Hatchery/ Nursery Pampanga Consolidator/ Trader (live) Supermarket Pampanga Manila
Hatchery FRY - Volume - Delivery schedule - Size - Strain/Sex Nursery!'3%$"2*!%')3/%7) Processor -Source of fish -Volume - Delivery schedule - Size Specialty Shop Supermarket Local market FINGERLINGS - Quantity - Delivery schedule - Cost - Strain/Sex MARKETABLE SIZE -Volume - Delivery schedule - Size - Price Wholesaler-Retailer Producers Trader /Consolidator Wholesaler / Viajero MARKETABLE SIZE -Volume - Price - Weight - Quality #20",'*)3/%7) Advanced cash Hatchery CASH Processor CASH Specialty Shop Supermarket Nursery CASH Post-dated checks,7 days CASH Producers Cash, net after feed loan (1-2 days) Trader/Consolidator Wholesaler/ Viajero Sales remittances, net after trading capital CASH Wholesaler- Retailer Terminal Market Cash CASH Producers (non feed-borrowers) CASH Trader/Retailer (small-scale) Retailer Cash after sales collection Cash Local market
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Funding for this research was provided by the COLLABORATIVE RESEARCH SUPPORT PROGRAM The AquaFish CRSP is funded in part by United States Agency for International Development (USAID) Cooperative Agreement No. EPP-A-00-06-00012-00 and by US and Host Country partners. The contents of this presentation do not necessarily represent an official position or policy of the United States Agency for International Development (USAID). Mention of trade names or commercial products in this presentation does not constitute endorsement or recommendation for use on the part of USAID or the AquaFish Collaborative Research Support Program. The accuracy, reliability, and originality of the work presented are the responsibility of the individual authors.,'4)