Agreements and Relationships of Market Actors for Mindanao Yellow Corn

ABSTRACT

This study aimed to understand the relationships among the different actors involved in the handling practices of marketing yellow corn from Mindanao to Cebu and Manila focusing on the agreements and trust rating among the marketing actors. Descriptive analysis was employed in this study.

Results showed that the agreements among the marketing actors were all informal arrangements. Asymmetric information was evident on the farmers in the marketing chain because they were not properly informed by the other actors along the chain on the quality requirement of the end users resulting only to high production costs.

Results indicated that farmers trusted those they dealt with directly in the traditional system. Traders had some trust to both the farmers and processor/feedmillers because of the risks involved on his investment. Processors/integrators had complete trust with each other because they were the direct link from the source. Between the distributors and the feedmillers, trust was reciprocated because they were dependent to each other regarding the supply of corn.

In the bulk handing system, farmers and processor/shippers had some trust with each other because processor/shippers dealt with several farmers to accumulate stocks same as the farmer who could choose whom to sell his produce.

The frequent exchange of information and transparency of information creates trust in buyer-supplier relationships in the value chain thereby producing good quality corn. Moreover, aggressive promotion through trainings, publications and other media forms on the adoption of bulk handling system must be implemented by the government.

Key words: agreement, asymmetric information, trust, transparency, reciprocity, corn, marketing