Small farmer access to premium prices for copra in the Philippines: a case study of the coconut oil chain in Camarines Sur province
2015
Padua, Maria Acela Katrina A.
Coconut oil is a major industry in the Philippines. Apart from being the country’s largest agricultural export earner, it is also consumed almost as a food staple in the domestic market. Even so, small coconut farmers remain amongst the poorest farmers in the country. Coconut oil processors pay premium prices for high quality copra – the product delivered by coconut farmers. This study examines the coconut oil chain in Camarines Sur province, focusing on the ability of small farmers to benefit from premium prices. Evidence from other countries suggests that the ability of small farmers to capture quality premiums is often compromised by problems in the measurement and enforcement of standards, asymmetries in power and information along the value chain, and the non-trivial cost of collective action in lobbying and marketing activities. This research uses case studies to test for the presence of similar problems in Camarines Sur, and to identify effective ways of improving returns to small coconut farmers.
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