Optimum number, size, and location of livestock auction markets in Southern Tagalog and Western Visayas, 1997 [Philippines]

Using linear programming model of cost minimization, the study determined for the optimum number, size, and location of livestock auction markets in Southern Tagalog and Western Visayas [Philippines]. In the analysis, the following information -- livestock supply, livestock auction market locations, operating costs, transportation costs between specified pair of source and destination points in 1997 -- were utilized. Results of the cost minimization model came up with five optimally located livestock auction markets in Batangas; one in Antique; three in Negros Occidental; and three in Iloilo. It showed that an excessive number of auction markets are operating at non-optimal size. The medium sized markets were found to be the optimum size of LOMs [livestock "oksyon" markets]. Contrary to government's program to put up LOMs in many areas as much as possible, the study found that such scheme was ineffective. The optimum locations identified imply that the number of LOMs in the provinces considered should be reduced. The Stollsteimer model makes it possible to know how many markets, what market size, and what locations are ideal. Considering the changes in livestock production and consumption trends, a need to estimate livestock supply and demand over a period of time may be suggested. In general, the outcome of this study points out the inefficiency of the present marketing system of livestock in Southern Tagalog and Western Visayas. Because the optimum solution was based on a number of assumptions, reliability of the optimum solution is affected by the traders' limited knowledge of updated market information, the poor market facilities that would affect operating and transportation costs, and the inaccuracy of information obtained. Policy makers and government institutions concerned should take into account similar studies to find out how their infrastructure-related projects can be implemented efficiently so as to attain the minimum cost