Presented by: Megail Miles Dimaano Sarah Marie Reyes Herzl Hali Hermosa Kevin Gonzales

Lack of transport infrastructure particularly roads, bridges and shipping facilities affect the level of income of farmers because it limits the market access and increase the marketing costs of their product.

1. An Evaluation of the Role of Intermediaries in the Marketing of Hogs in Selected Towns of Batangas (Baja,1997).

40% of 29 hog producers encountered poor farm-to-market roads as one of their marketing problems.

Marketing problems encountered by 29 hog Producers in Batangas, 1997.

Problem Lack of capital Unpaid credit Poor farm-to-market roads Far from market TOTAL Number reporting 21 14 11 7 52 Proportion to total (%) 72 48 40 24 184

2. Transfer Cost Analysis of Rice and Mango in Abra, 2000 (Benitez, 2001)

Transportation is a major concern for crop producers in Abra because of its topography and lack of farm to market roads. Due to the underdeveloped transport sector, the abundant supply of agricultural products could not be delivered to the surrounding markets, thereby loosing their freshness and eventually, their saleability.

Problems encountered by rice and mango traders, ABRA, 2000.

Problem
Poor road conditions Inaccessibility of roads Natural calamities (i.e. typhoons) Loading and unloading Spoilage Lack of transportation Distance of market sources Tedious and slow travel Total

# of respondents 10 2 9 1 6 3 2 1 34

Percent (%)
29 6 26 3 18 9 6 3 100

3. Economics of Marketing Citrus in Selected Municipalities of Oriental Mindoro (Bacudo, 1986)

On average, transportation cost made up the major component of the marketing cost accounting to 84%. Cutting trips, poor road condition and lack of transportation facilities contributed to the high costs of transit

4. Calamansi Marketing Under the Roll-on Roll-off Nautical Highway Program, Oriental Mindoro (Quindong, 2010)

Before the nautical highway program was launched, transportation in Oriental Mindoro represents a large portion of marketing costs due to high costs of shipping the product, poor road infrastructure and lack of efficient transportation facilities.

18 Calamansi Traders
ITEM Labor Unloading fee Drivers fee Warehouse workers Driver assistance Subtotal Labor Transportation Shipping fee Fuel Repair Terminal Fee Subtotal Transportation Warehouse rental Miscellaneous Packing materials Total *( ) percent of subtotal COST/TRIP (PHP) Php/kg 3,676 1,606 1,407 1,128 7,816 2,833 3,029 1,106 830 7,798 922 832 459 17,859 0.80 0.35 0.31 0.25 1.71 0.62 0.66 0.24 0.18 1.70 0.20 0.18 0.10 3.88 PERCENT (47) (21) (18) (14) 44 (36) (39) (14) (11) 44 5 5 3 100

1. Corruption and Ghost Infrastructure Projects

Bureaucrats and private entities can actually joint and form a scheme on fabricating a plan of constructing and infrastructure project, which are never physically built. They can of course keep the public funds which are released to finance the ghost projects and keep the funds for themselves.

2. Natural Calamities
Since Philippines is located in an area where natural calamities like typhoons usually pass by, our roads and bridges are prone to destruction.

1. Inefficient transportation would bring about higher prices for the selected commodities and would make them less competitive in the central market (Benites, 2001). 2. Because of inefficient farm to market road, profit remained low (Benites, 2001).

3. Poor road conditions also delayed the traders schedules as they were after the quality of the product (Benites, 2001).

4. Rough roads also caused unnecessary damages on the produce (ex. Latex burn, a physical damage on mangoes as seen in the bruising of the mango skin (Benites, 2001).

Other Data/Info:

source: dpwh.gov.ph

Bibliography
BACUDO. (1986). Economics of Marketing Citrus in Selected Municipalities of Oriental Mindoro. BAYANI, J. (1999). The Economic Contributions of the Private Sector in Public Investments in Road Infrastructure. BENITEZ, P. (2001). Transfer Cost Analysis of Rice and Mango in Abra, 2000. MORALES, R. (2001). Corruption in the Infrastructure Sector: The Use of Agency Theories in Analyzing Bribery Incidence.

QUINDONG, R. (2010). Calamansi Marketing under the Roll-on Roll-off Nautical Highway Program in Oriental Mindoro.