Scale and Access Issues Affecting Smallholder Hog Producers in an Expanding Peri-urban Market: Southern Luzon, Philippines

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A dramatic increase over the past fifteen years in domestic pork demand and production in the Philippines has created a potentially profitable opportunity for poor rural and agricultural households. In Southern and Central Luzon, the two biggest markets, however, smallholder pig producers hold only a minority share of total production compared to larger commercial farms. This report seeks to assess the scope for smallholders to remain in business by analyzing the relative profitability of small and large farms. Using field data from pig-producing households, the researchers assess the role of internal and external factors in determining a household s participation in production and marketing and examine the combination of technical and allocative efficiency exhibited by specific farms under particular circumstances.

They conclude that the smallest-scale pig producers will not survive market competition and will require alternative occupations. Many others, however, could profit from pig production if policy and institutional changes ensure their access to inputs, to animal health services that can guarantee output quality, and to markets for higher quality output. These findings are a valuable contribution to poverty reduction efforts in the Philippines.


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Page 49 - Significant at the 5 percent level. * * * Significant at the 1 percent level.
Page 3 - Region 2 Cagayan Valley Region 3 Central Luzon Region 4 Southern Tagalog Region 5 Bicol Region 6 Western Visayas Region 7 Central Visayas Region 8 Eastern Visayas Region 9 Western Mindanao Region 10 Northern Mindanao Region 11 Southern Mindanao Region 12 Manila FIGURE 1 THE PHILIPPINES BY CENSUS REGION, 1970 has considered its effects (Danielson 1966; Hendershot 1970).
Page 30 - Significant at 10 percent level ** Significant at 5 percent level *** Significant at 1 percent level...
Page 3 - Agusan del Norte, Agusan del Sur, Surigao del Norte, and Surigao del Sur...
Page viii - One of the major tasks of the Philippine Council for Agriculture, Forestry and Natural Resources Research and Development...
Page 8 - Among them are: • searching for information about potential for contracting parties and the price and quality of the resources in which they have property rights...
Page 17 - Flinn (1989) specifically estimated a stochastic profit frontier of modified translog type for Basmati rice farmers in Pakistan's Punjab. After estimating the technical efficiency of individual farmers, the losses in profit from technical inefficiency were obtained and regressed on various farmer- and farm-specific variables.
Page 11 - The probit functional form compels e2 to be homoskedastic because the form of the probability depends only on the difference between the error term associated with one particular choice and another (Amemiya 1981).
Page 10 - By discrete regression models we mean those models in which the dependent variable assumes discrete values. The simplest of these models is that in which the dependent variable y is binary...
Page 50 - In particular, a value of y of zero indicates that the deviations from the frontier are due entirely to noise, while a value of one would indicate that all deviations are due to inefficiency.

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