Value chain analysis of sergestid shrimp (<i>Acetes Spp.</i>) in Oton and Tigbauan, Iloilo

Abstract

The sergestid shrimp industry in the municipalities of Oton and Tigbauan has contributed to income and employment of the local shrimp catchers, traders, and processors. This study described and analyzed the value chain of sergestid shrimp in these municipalities. Specifically, the study described the market actors, their marketing practices, and the value chain; determined the revenues received, costs incurred, and gross margins received by the market actors; identified roles performed by the men and women in the sergestid shrimp value chain; and identified the problems facing the market actors. Data were collected from personal interviews of 14 shrimp catchers, 9 raw shrimp traders, 11 shrimp processors, and one shrimp product trader. The shrimp catchers caught an estimated 132,758 kilograms of shrimp in a year. Most were sold (129,182 kilograms, 97.31%), with only the three commission houses handling an estimated 128,702 kilograms (96.94%). The major outlets of the commission houses included raw shrimp retailers and different types of shrimp processors. The highest average selling price (P372.73/kg), gross margin (P168.65/kg), and net returns (P161.39/kg) was received by one shrimp product retailer. Generally, the shrimp catchers were price takers, with the commission people as quantity leaders and seemingly price leaders. The net added value of shrimp increases as it is transformed into new forms such as the shrimp paste, dried shrimp, and shrimp mill. The men performed more strenuous roles (such as catching, hauling, and loading shrimp) while the women performed more time-consuming roles (buying inputs in catching or processing and selling). Adding value to the raw shrimp through processing can increase returns. Creative ways to create demand for raw and processed shrimp should be introduced. New processing technology, new market outlets for processed shrimps, and better packaging can increase demand for processed shrimp. With more players in the market, price can be set by more players.