Supply Chain Analysis of Selected Organically Grown

Temperate Vegetables, Cabrera and Wagney



This research aimed to analyze the organic temperate vegetable industry through the supply chain approach in order to critically pinpoint its strengths and weaknesses and propose a research and development agenda in order to address possible problems and constraints. Survey, key informant interviews, participant observation and archival research were used to gather data from 38 producers, 11 traders and 97 consumers in the Cordillera Administrative Region, Region III and Region IVA. Descriptive statistics, Pearson correlation, cost and return analysis and efficiency analysis were used to analyze data.

The emergence of new breeds of players makes the marketing channel of organic vegetables in the Cordillera more complex compared with a simpler, more modern and integrated chain in the regions outside of the CAR. The six key players involved in the marketing of organic vegetables are the cooperative, assembler-wholesaler-retailer, assembler-wholesaler, assembler-retailer, retailer and institutional buyers.

Organic temperate vegetable production is both profitable and efficient. Cauliflower,native cucumber, French beans, broccoli, lettuce, New Zealand spinach, and Japanese spinach give higher profits to organic farmers. The organic production of cauliflower, native cucumber, French beans, broccoli, lettuce (romaine) and New Zealand spinach requires low capital, labor and land use intensity indicating high efficiency.

Value chain and marketing margin analyses show cost and margin differentials across players and across geographic locations indicating variations in the distribution of benefits among key factors.

Intensified and integrated capability building mechanisms particularly on the area of mitigation and improving resiliency of crops are needed to counter the effects of climate change which affect production. Vale adding activities like vegetable processing, could be a remedy for high pull-out rates and spoilage when there is oversupply. In marketing, value adding activities also need to be instituted, along with the need to improve product handling and transport. The use of Information and Communication Technology (ICT) needs to be maximized to address traceability and logistical concerns.

Contract-growing arrangements is a documented best practice that is encouraged because it brings mutually beneficial terms and conditions to contracting parties.