Overview
This lecture examines the challenges faced by cabbage farmers in Benguet, focusing on unstable market prices, oversupply issues, and the financial struggles of farming families.
Cabbage Farming in Benguet
- January and February are the coldest months, marking the cabbage harvest in Benguet.
- Farmers invest about five months and significant capital (e.g., ₱40,000) to grow cabbages.
- Cabbages are carefully selected for sale; unsold or subpar ones are discarded or composted.
Market Pricing and Profits
- Farmers hope to sell cabbage at ₱20 per kilo to break even.
- Actual market prices often drop as low as ₱10 or lower per kilo.
- First-class cabbages can fetch ₱10–12/kg, second-class ₱6–8/kg, and third-class as low as ₱3/kg.
- After various deductions (packing, transport, commissions, labor), the farmers' net income may be as low as ₱6,000 from an initial ₱40,000 investment.
Market Structure and Processes
- Farmers cannot sell directly to buyers; they must use a "disposer" who takes a commission per kilo.
- Cabbages pass through multiple hands, each adding to the price before reaching consumers.
- At local wet markets, cabbages may sell for ₱25/kg; in Baguio and Manila, prices soar to ₱50–100/kg.
Causes of Low Prices and Losses
- Oversupply is blamed by some, but local production actually dropped from 2022 to 2023.
- Importation and competition from other vegetables reduce buyer demand in Benguet.
- Transport, packing, and labor costs further reduce farmer profits.
- Farmers sometimes leave crops to rot rather than sell at a loss.
Socioeconomic Impact
- Many farmers are burdened by debts up to ₱200,000.
- Despite poor returns, families continue farming, hoping for better prices to pay debts and support their children’s education.
- The observed harsh realities question the belief that farmers will never go hungry.
Key Terms & Definitions
- Disposer — a middleman who sells farmers' produce to buyers for a commission.
- First-class/Second-class/Third-class cabbage — grading based on quality, influencing market price.
- Por dia — daily wage workers hired for harvesting and packing produce.
Action Items / Next Steps
- Review the process steps from harvest to market.
- Reflect on the factors affecting agricultural pricing and farmer income.
- Prepare for possible discussion on the impact of importation and supply chains on local producers.