ANALYSIS OF MARKET STRUCTURE, CONDUCT, AND PERFORMANCE OF CUT-FLOWER IN TUPI, SOUTH COTABATO

The study was conducted in Tupi, South Cotabato from November to December 2021. It aims to assess the cut-flowers market structure, conduct, and performance in Tupi, South Cotabato. The respondents were chosen using the complete enumeration method. Gathered data were analyzed using Descriptive Statistics, and Gini Coefficient and Lorenz Curve were employed to investigate the difference in profit margin received by large-scale and small-scale wholesalers, wholesaler-retailers, and retailers by cut-flowers.

In market structure, the study revealed that the market concentration of wholesalers was equally perfect with a Gini Coefficient of 0.23, while Wholesaler-Retailers and Retailers were 0.3 and 0.48, respectively indicating a relatively highly concentrated, or few dominated the market in terms of the income distribution. The marketing channels for cut-flower trading consist of producers, wholesaler-retailers, retailers and consumers.

As per market conduct, the pricing strategy of the cut-flower traders in Tupi is competitive pricing and the payment method was cash to cash and cash on delivery basis. Traders also promote their business through social medias, flyers and word of mouth advertisement. There is no collusion in the market since the market is perfect competition. With regards to performance, the efficiency index for wholesalers, wholesaler-retailers, and retailers is 8.06, 8.17 and 11.03, and 10.51. This result indicates that there were a profit surplus and inefficiencies in the performance of cut-flowers trading in Tupi, South Cotabato.

Therefore, the study recommends that the government may promote cut-flower producers to increase production for them to avoid increasing cut-flower prices. The traders may record their transactions to monitor their business status and minimize charges for undelivered products and/or delivery redundancy. The traders may consider flower preservation to maximize the freshness of cut flowers and to avoid additional and unnecessary purchases.