Economic analysis on bulk handling of Mindanao corn grain to Manila and Cebu, Philippines
2014
Calica, G.B. | Eleria, N.L.
The study aimed to assess the economic feasibility of an integrated bulk handling system for yellow corn grains produced from Mindanao and marketed in Manila and Cebu [Philippines]. It is meant to address the problems on production and marketing inefficiencies of the Philippines corn industry. The present practice is characterized by low adoption of modern technologies, high postharvest losses, and high transport and marketing costs as a result of inadequate market infrastructures. The government is promoting the adoption of bulk grain handling technology to reduce postproduction costs and losses. The general objective of the study is to establish the social benefits that society could receive from the adoption of the bulk handling technology by comparing it to the traditional method. Using triangular method of collecting data and employing value chain, financial and economic analyses, the study compared the traditional and the bulk handling systems. Results revealed that the bulk handling chains is better-off however, multiple comparison tests of income indicated that farmer-clients/adopters of bulk handling were worse-off because of the non-inclusion of the social benefits. The willingness of farmers to pay for bulk processing is higher if they are adopting the technology while lower for non-adopters. Price gap of the willingness-to-pay for adopting the technology could be covered by the social benefits from the project. A positive net present value and net social benefit (NSB) signified that this government intervention is worthwhile.
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