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1 FRESH CHEVON NOW IN THE MARKET: EXPLORING THE SUPPLY CHAIN IN CENTRAL LUZON REGION Fe L. Porciuncula 1 , Janet N. Padilla 2 And Rex S. Parayno 3 1 Professor, 2 Researcher and 3 Research Assistant Central Luzon State University, Science City of Munoz, Nueva Ecija, Philippines email ad:[email protected] ABSTRACT The research aimed to assess the supply chain of fresh chevon in Central Luzon and identify areas for improvement. About 108 respondents from Nueva Ecija and Tarlac, composed of the key players in the supply chain were interviewed. Supply chain mapping was done and set of indicators determined the performance of the identified supply chains. The supply chain for fresh chevon in the region is simple and generally participated in by key players which include the goat raiser, barangay agent or locator, assembler wholesaler, meat vendor/retailer, institutional buyer and individual consumer. The supply chain generally follows a traditional supply chain where wet markets remain as the major destination of fresh chevon and continue to play a significant role as a primary retailer for end consumers. Goat meat has finally found its way in the market but a simple supply and demand analysis showed a gap in the volume requirement of the market which is indicative of unmet demand. The total gap is 1,720 heads in a year which is a welcome opportunity to intensify goat production in the supply chain. While acceptable net income, return on expenses and profit margin were generated in the supply chain, there are several logistical issues and concerns which denotes some degree of inefficiencies in the supply chain of fresh chevon. These include insufficient supply of goats for slaughter; difficulty in sourcing goats; traditional use of technologies in raising goats; ocular judgement in the determination of price of live goat, and the relatively high price of chevon. Additional concerns render meat quality standards, handling and hygienic and inspection requirements in question, to the disadvantage of the end consumers. The identified issues and concerns can be addressed holistically taking stock of improving goat production system and the other activities and processes in the entire supply chain. Keywords: supply chain management, fresh chevon, logistical issues RATIONALE The Pinoy S&T Services for Farmers and Entrepreneurs (PSF) is a synergistic combinatian of TechnoMart, STBF, and OSIS designed to establish and support S and T based entetprise. The convergence of these three technology transfer modalities is envisioned to promote enterprises where market requirements for certain product are addressed through S and T. The key challenge to the implementation of PSF is how to harness an essentially S&T centric R&D network in pushing the

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FRESH CHEVON NOW IN THE MARKET: EXPLORING THE SUPPLYCHAIN IN CENTRAL LUZON REGION

Fe L. Porciuncula1, Janet N. Padilla2 And Rex S. Parayno3

1 Professor, 2 Researcher and 3 Research AssistantCentral Luzon State University, Science City of Munoz, Nueva Ecija, Philippines

email ad:[email protected]

ABSTRACT

The research aimed to assess the supply chain of fresh chevon in Central Luzon and identifyareas for improvement.

About 108 respondents from Nueva Ecija and Tarlac, composed of the key players in the supplychain were interviewed. Supply chain mapping was done and set of indicators determined theperformance of the identified supply chains.

The supply chain for fresh chevon in the region is simple and generally participated in by keyplayers which include the goat raiser, barangay agent or locator, assembler wholesaler, meatvendor/retailer, institutional buyer and individual consumer. The supply chain generally follows atraditional supply chain where wet markets remain as the major destination of fresh chevon and continueto play a significant role as a primary retailer for end consumers.

Goat meat has finally found its way in the market but a simple supply and demand analysisshowed a gap in the volume requirement of the market which is indicative of unmet demand. The totalgap is 1,720 heads in a year which is a welcome opportunity to intensify goat production in the supplychain.

While acceptable net income, return on expenses and profit margin were generated in the supplychain, there are several logistical issues and concerns which denotes some degree of inefficiencies inthe supply chain of fresh chevon. These include insufficient supply of goats for slaughter; difficulty insourcing goats; traditional use of technologies in raising goats; ocular judgement in the determination ofprice of live goat, and the relatively high price of chevon. Additional concerns render meat qualitystandards, handling and hygienic and inspection requirements in question, to the disadvantage of the endconsumers.

The identified issues and concerns can be addressed holistically taking stock of improving goatproduction system and the other activities and processes in the entire supply chain.

Keywords: supply chain management, fresh chevon, logistical issues

RATIONALE

The Pinoy S&T Services for Farmers and Entrepreneurs (PSF) is a synergistic combinatian ofTechnoMart, STBF, and OSIS designed to establish and support S and T based entetprise. Theconvergence of these three technology transfer modalities is envisioned to promote enterprises wheremarket requirements for certain product are addressed through S and T. The key challenge to theimplementation of PSF is how to harness an essentially S&T centric R&D network in pushing the

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development and competitiveness of market centric enterprises. Cognizant that the R and D networktends to focus exclusively on technical interventions, addressing the challenge would require a processof identifying the constraints to successful S&T based enterprises.

One of the seven selected TM products to be covered by the PSF program is goat meat orchevon. In 2010, goat production grew by 1.38% (BAS 2010) which was mainly driven by the sustaineddemand for chevon. Since goat production requires small capital investment, it has become a morelucrative enterprise over the other livestock enterprises and therefore an increase in the stocks forslaughter was noted. Moreoever, chevon is continuously gaining popularity because of the lower totalfat, saturated fat, calories and cholesterol than the traditional meats such as pork, beef and chicken.Based on USDA Nutrient Database for Standard Reference Release 14 (July 2001) on per 3 oz. cookedchevon, it has lower calories at 122 cal compared to 162 cal for chicken, 179 cal for beef and 180,cal forpork. In the same manner that chevon has lower fat at 2.6 g compared to 6.3, 7.9 and 8.2 g fat forchicken, beef and pork, respectively. Saturated fat of chevon is similarly lower at 0.79 g compared to 1.7g for chicken, 3.0 g for beef and 2.9 g for pork. Equally important is the lower cholesterol of chevon at63.8 mg compared to 76.0 mg for chicken and 73.1 mg for both beef and pork. Lesser fat and cholesterolmeans a healthier red meat for consumers who are becoming more and more health consciousnowadays.

Anent to the gaining popularity of chevon is the fast thriving goat industry in Central Luzon.Corresponding to the increasing demand for goat meat is the need to develop a wide selection of goatproducts catering to a wide variety of uses. To date, chevon cutting schemes as well as chevon productscanning processes have been developed to satisfy demand for exquisite local delicacies. Yet, there is aneed for strategic planning and development for commercialization to assure compliance with strictstandards and product requirements. The examination of chevon supply chain from sourcing of goat forslaughter to the movement of goat meat to the market as well as value adding is necessary. Supply chainanalysis should therefore be made integral to PSF, if such modality is to succeed. Supply chain is thenetwork of players and processes involved in delivering the product from production area to the market.The supply chain analysis provides comprehensive information on the key customers and their productrequirements: key players and processes involved; product payment and information flow; logisticconcerns; and external influences. Results of the in-depth analysis will be the foundation in establishingR&D interventions that will be provided by the PSF program.

OBJECTIVES

The study was designed to assess the supply chain of chevon as one of the Techno Mart productsand to identify the areas for improvement.

The specific objectives were as follows:1. to provide an overview of the goat/chevon industry in Central Luzon;2. to map out the supply chain for fresh chevon that will show the key

customers and their product requirements; key players and processes involved; product,information and payment flows ; logistics issues; and external influences;

3. to analyze the performance of the various supply chains in terms of efficiency, flexibility andresponsiveness;

4. To identify areas for improvement in the supply chains and provide specific R and Dinterventions necessary in successfully pushing chevon in the market.

REVIEW OF RELATED LITERATURE

Overview of the PSF Program

The PSF program was developed from the initial gains of the Techno Gabay Program (TGP). Itsfundamental goal is to create an S&T Based enterprise with intent to push the TechnoMart Products fromthe production point to the market. To achieve the fundamental goal of the PSF Program, R&D

This section draws heavily from the existing documents of the PSF Program and program proposal

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interventions specific to the TechnoMart product supply chain are necessary which will depend on thefindings of this study. A set of interventions may be provided by the three components of the PSFprogram, which are the STBF, TechnoMart, and OSIS (Figure 1).

Fig. 1. Pinoy S&T services for farmers and entrepreneurs framework

Supply Chain Improvement in AgribusinessAgribusiness plays a crucial role in steering the country’s economy. Until the agribusiness sectors

achieve competitiveness, its contribution in the country’s economic development would remain restricted.The agribusiness sector in the country therefore has to operate with efficiency, effectiveness, andresponsiveness as guiding principles and the volatile consumer demands as main drivers in the sector(Brown and Aranas, 2011). To achieve this, there is a need for a comprehensive examination that willidentify gaps and formulate interventions to improve the agribusiness supply chains.

Supply chain analysis aims to utilize and capitalize on strengths, improve weaknesses, searchand benefit from opportunities, and mitigate threats in the supply chains (Brown and Aranas, 2011). Thisanalytical tool is intended to find ways of integrating and coordinating various players in the supply chainand meeting the value expectations of the target market. The management of supply chains also seeks toachieve cost reduction and improved customer service by achieving greater efficiency, enhancedflexibility, and service enhancement (Van de Vorst, 2000 and Boyle, 1998).

METHODOLOGY

Conceptual Framework

PSF

S&T Based Enterprise

R&D System

Interventions

Supply Chain Analysis (Gap Identification)

Enterprise System

LinkagesOrganizationalManagement

ProductionSystem

S&T Technology packagingand Commercialization

STBF

TechnoMart

OSIS

Fig. 2. Conceptual framework of the research

The conceptual framework of the study is shown in Fig. 2. The S&T based enterprises are viewedas the interphase of two systems namely the R&D system and the enterprise system. The former is atechnology centric being focused mainly on the generation and transfer/commercialization oftechnologies. The latter is market centric as the viability/competitiveness of enterprises depends entirelyon its ability to satisfy market demand/requirements.

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The enterprise system consists largely of three subsystems which embody the functions,activities, and process necessary to make certain products available to the consumers. The productionsub-system defines the A to Z producing a given product. Organization and management refers to theway the enterprise is organized and management refers to the way enterprise is organized and managedeither individually or by groups or clusters. On the other hand, linkages include the upstream anddownstream player considered to be crucial in the successful operation of the enterprise. This covers theinput providers, providers of support services (e.g. technical, credit, etc.) and logistics and mostimportantly the product market.

The traditional interphase of R&D and enterprise system is characterized mainly as linear, wheretechnology outputs of the R&D simply becomes input into the production system of enterprise. In suchcase, the R&D system seldom goes beyond the provision of technical support to the enterprise. However,the advent of the PSF ushered in a more innovative modality where interventions can be provided alongall the subsystem of the enterprise.

The PSF is situated clearly in the framework as a modality of technology transfer andcommercialization. The modality is a synergistic combination of TechnoMart, STBF, and OSIS designedto create S&T based enterprise to one where S&T becomes a fundamental driving force.Supply chainanalysis is depicted as an integral component of PSF. The analysis enables the identification of gaps inthe enterprise system which should become the basis for the packaging of the interventions under thePSF. The gaps and the corresponding interventions may cover not only technical but also behavioral,institutional, market, and economic aspects of the enterprise/industry, among others.

Supply chain analysis aims to utilize and capitalize on strengths, improve weaknesses, explorefor opportunities, and mitigate threats in the supply chains. As an analytical gap identification tool, theanalysis draws contributions from various disciplines and scrutinizes these areas to determine how thesupply chain of the various products can be developed to achieve competitiveness.

Study Sites and Respondents

Key informants from different state colleges and universities and provincial DA offices werecontacted to provide useful information in tracing the supply chain for fresh chevon in Central Luzon. Areconnaissance survey of the demand centers (major cities) in the provinces of Nueva Ecija, Tarlac,Bulacan, Pampanga, Bataan and Zambales was then undertaken. Wet markets, supermarkets and meatshops were visited to determine and validate the availability of fresh chevon being offered for sale.Restaurants and eateries/carenderias were also visited to determine where they procure the chevon theyused for their cooked chevon dishes.

Fig. 3. Map of the Central Luzon region showing the 6 provinces

Nueva Ecija and Tarlac were selected as the study locations on the basis of fresh chevon beingsold on a daily basis, volume and goat population. Based on 2002-2011 BAS data, Tarlac and NuevaEcija ranked first and second, respectively in terms of goat population.

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A synthesis of relevant studies was also done to get useful information on the supply chains to betraced. This was followed by the identification of the stakeholders of the supply chains, flow of products,information and payments, activities and services conducted by supply chain members, critical logisticsissues, key decision makers and external influences.

The following shows the location and key players identified and interviewed in the supply chain:

AREA/PROVINCE

KEY PLAYERSGoat

RaiserBgry.

Agent/locatorAssemblerwholesaler

AssemblerRetailer

Marketvendor/Retailer

End ConsumersIndividualCostumers

Restaurants andcarenderias

NUEVA ECIJAScience City of Munoz 5 2 2 2 13 4San Jose City 5 1 1 1 1 12 5Cabanatuan City 3 1 3 8 5

TARLACCamiling Tarlac 2 3 10 4Tarlac City 1 1 8 5

TOTAL 13 4 5 2 10 51 23Overall Total 108

Data Gathering

Actual survey and key informants interview were conducted to validate secondary data and toanswer more specific questions related to supply chain mapping. Questionnaires were formulated anddesigned to answer the basic study questions as follows: 1) who are the key customers and what aretheir product requirements (quality standards)?; 2) How do product, information and money flow throughthe supply chain?; 3) What are the activities and services provided at each step in the supply chain?; 4)What are the roles of each key player involved in the chain; 5) What are the critical issues related tologistics; and 6) and what are some of the external influences affecting the members of the chain.

Secondary data taken from the National Goat Farm Performance Project (Cruz, et. al 2012) wereused in the analysis of cost and return in the Tarlac supply chain. The 2009 data were inflated to currentprices using the Consumer Price Index. The research team was not able to interview goat farmers inTarlac as per advise of the traders due to mountainous terrain, long distance and peace and ordersituation.

Supply Chain Mapping and Examination of Chain Performance, Effectiveness andEfficiency

A set of indicators were used to evaluate the performance in terms of effectiveness andefficiency of existing supply chains. The following are the standard indicators used in supply chainevaluation involving agribusiness products:

1. Effectiveness: the ability of the chain to meet the requirements of key customers thatinclude:Quality/Standards

Delivery Volume (Quantity)

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Delivery ScheduleDelivery Flexibility (flexibility of the chain to respond to changes in customerdemands/requirements)

2. Efficiency:

Cost (production cost, distribution cost, transaction cost)ProfitReturn on InvestmentInventory (warehousing, capital, damage and losses)

Identification of Areas for Improvement

After the supply chain has been validated and the impact of various practices along the chain isestablished, the next step done was to identify areas for improvement of the supply chain making use ofthe inputs from the supply chain members. Among others the structure of power, as well as the extent ofinformation asymmetry, along the chain and the relative interest of members with regards toimprovement in the chain were taken into consideration. Identification of supply chain champions wasalso taken into consideration to help ensure that the identified improvements will be carried out.

Results of the survey were used to relate and analyze the performance of the specific supplychain in terms of efficiency, flexibility and overall responsiveness.

RESULTS AND DISCUSSION

Industry Situation

Goat production remains to be backyard in nature registering a more than 98.0% share to totalinventory in the country (Table 1). While an increasing trend is noticeable from 2002-2009 in backyardgoat production, slight decrease ensued in 2010-2011 Commercial production of goat however, shows aconsistent increasing trend with the highest increase recorded in 2010 and 2011. Overall, goat inventoryin the Philippines shows an increasing trend in 2002-2009 and slightly decreased in 2010 and 2011.

Table 1. Philippine goat inventory (head), 2002-2011YEAR BACKYARD % TO TOTAL COMMERCIAL % TO TOTAL TOTAL2002 3,248,184 99.53 15,253 0.47 3,263,4372003 3,272,877 99.50 16,573 0.50 3,289,4502004 3,431,245 99.40 20,816 0.60 3,452,0612005 3,642,216 99.29 26,045 0.71 3,668,2612006 3,960,430 99.19 32,294 0.81 3,992,7242007 4,059,989 99.07 37,994 0.93 4,097,9832008 4,086,816 98.96 42,911 1.04 4,129,7272009 4,182,503 99.01 41,714 0.99 4,224,2172010 3,874,478 98.42 62,118 1.58 3,936,5962011 3,688,643 98.24 65,945 1.76 3,754,588

Source: Bureau of Agricultural Statistics

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As seen in Table 2, Central Luzon belongs to the top goat producing region in the country basedon the average of 2002-2011 data with Western Visayas topping the list followed by Central Visayas,Ilocos Region and Davao Region. Central Luzon showed an average growth rate of 0.37 in backyardgoat production and a high 12.23% in commercial production, the highest among the five producingregions. Central Luzon contributes an average of 7.62% in the goat inventory in the Philippines (2002-2011).Table 2. Average inventory of goat (head) and growth rates in top producing regions,

2002-2011

PHILIPPINES 3,780,904.40

REGION BACKYARDGROWTHRATE(%) COMMERCIAL

GROWTHRATE (%) TOTAL

GROWTHRATE(%)

%CONTRIBU

TION

Western Visayas 5,129,693 0.58 33,090 4.22 5,162,783 0.59 13.65

Central Visayas 5,038,565 0.10 30,957 5.74 5,069,522 0.11 13.41

Ilocos Region 4,743,803 (0.03) 25,803 3.00 4,769,606 (0.02) 12.61

Davao Region 3,400,908 0.33 31,798 2.26 3,432,706 0.33 9.08

Central Luzon 2,811,158 0.37 68,787 12.23 2,879,945 0.40 7.62Source: Bureau of Agricultural Statistics

The average goat inventory in Central Luzon (Table 3) from 2002-2011 shows Tarlac with thehighest percent contribution of 37.99% with Nueva Ecija in second registering 27.64% ,and Zambalescame in third with 17.40%.

Table 3. Average inventory of goat (head) in Central Luzon by province, 2002-2011

PROVINCE BACKYARD COMMERCIAL TOTAL % TO TOTAL

Aurora 15,695 46 15,741 5.63Bataan 8,161 79 8,240 2.95Bulacan 14,357 359 14,716 5.26Nueva Ecija 75,029 2,295 77,324 27.64Pampanga 8,569 183 8,752 3.13Tarlac 105,686 583 106,269 37.99Zambales 48,450 216 48,666 17.40

Source: Bureau of Statistics

The marketing system of goats in the Philippines is as varied as the areas and location of goatfarms (Jamandre, Sansano and Guiamal, 2011) The same research by Jamandre, et al., indicated thatdirect buying, wholesaling and retailing through auction markets and abattoirs and trading throughmiddlemen are the most common marketing system of goat in the Philippines. Further, buying and sellingprices are largely based on weight and size of goat. As seen in Table 4, the average yearly farm gateprice per kg liveweight of goat increased from 2002-2011 in the Philippines and in Central Luzon. In2011, the average price per kg liveweight was recorded at PhP99.04 and PhP 119.88 in the Philippines

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and Central Luzon, respectively, with a little over 1 percent change over time. The data reveals a ratherstable farm gate prices through the years.

Table 4. Average yearly farm gate prices of goat (liveweight), Philippines and Central Luzon,2002-2011

YEARPHILIPPINES CENTRAL LUZON

Price/Kg % Change Price/Kg % Change

2002 57.13 65.802003 58.85 1.03 82.92 1.262004 66.57 1.13 82.18 0.992005 65.43 0.98 85.57 1.042006 69.70 1.07 89.78 1.052007 69.93 1.00 90.70 1.012008 74.71 1.07 102.56 1.132009 87.83 1.18 114.04 1.112010 93.18 1.06 118.42 1.042011 99.04 1.06 119.88 1.01

The growth of goat production in the Philippines is sustained by the demand for chevon. Asshown in Table 5, the supply of chevon consistently increased from 2002-2010 in the same manner thatthat the per capita consumption for goat carcass ( from 0.32 in 2002 to 0.44 in 2010) and offals (from0.10 in 2002 to 0.14 in 2010) also increased. This figures however, remain far from the per capitaconsumption of pork and beef (2009) recorded at 14.87 kg and 4.0 kg, respectively.

Table 5. Chevon: Supply and Utilization Philippines, 2002-2010 (in metric tons, dressed weight)

YEARSUPPLY UTILIZATION

Total Production Imports Net FoodDisposable Carcass Per.Cap

(Kg/Yr) Offals Per.Cap(Kg/Yr)

2002 33,550.48 33,550.48 33,550.48 25,308.10 0.32 8,242.38 0.10

2003 33,007.00 33,007.00 33,007.00 24,898.13 0.30 8,108.87 0.10

2004 33,634.34 33,634.34 33,634.34 25,371.35 0.35 8,262.99 0.10

2005 36,088.00 36,088.00 36,088.00 27,222.00 0.32 8,866.00 0.102006 45,442.00 45,442.00 45,442.00 34,278.00 0.39 11,164.00 0.13

2007 48,326.00 48,326.00 48,326.00 36,454.00 0.41 11,872.00 0.13

2008 53,152.00 53,152.00 53,152.00 40,094.00 0.44 13,058.00 0.14

2009 54,443.00 54,427.00 16 54,443.00 41,072.00 0.45 13,371.00 0.142010 55,254.00 55,254.00 55,254.00 41,680.00 0.44 13,574.00 0.14

Source: Bureau of Agricultural Statistics

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Key Players and Roles in the Fresh Chevon Supply Chain

KEY PLAYERS AND THEIR ROLESGOAT RAISER – provides slaughtergoats for sale to traders or directconsumers

BARANGAY AGENT ORLOCATOR- Responsible inlocating slaughter goats. Assiststhe assembler wholesaler inpicking up the goat from thegoat raiser’s farm or house

ASSEMBLER WHOLESALER -Procures/Pick-up goats from the goatraisers thru the barangay agent.Sometimes locate goats from otherbarangays. Butchers goat and suppliesgoat meat to market vendors-retailers.May extend roles as meat retailers.

MEAT VENDOR /RETAILER–Maintain market stalls for trading goatmeat and or other type of meat (pork,chicken and beef), vegetables andfish.Extends role as butcher-retailer.

INSTITUTIONAL BUYER-Buys goat meat from the marketvendor retailer or from theassembler wholesaler. Cook chevondishes for sale, such as caldereta,adobo, kilawen, papaitan,sinampalukan and kampukan.

INDIVIDUAL COSTUMER-Buys goatmeat from market vendor retailer

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Key Customers, Location and Product Requirement

The key customers in all the fresh chevon supply chains include the meat vendor/retailer,institutional buyer and individual costumer (Tables 6,8,10 and 12). The meat vendor/ retailer in all chainssells goat meat in the wet section of the public markets. The individual customers and institutional buyerswhich include carenderias and restaurants are generally within the premises of the city and themunicipality and generally located near the road or highway.

The quality requirements of the individual customer (female (75%), young (66.67%), freshness(50%), meatiness (25%), reddish in color and it is newly slaughtered (50%), no disease (25%)) generallycoincides with the quality requirement of the meat vendor retailer (female goat, young, meaty, fresh)except for the required breed which is native (Table 6). The age (young) and native breed of goat aremet as the generally traded slaughter goats are of marketable age at 8-10 months with liveweightranging from 15-20 kg. One of the institutional buyers requires that the goat meat is without foul odorand butchered with permit, which in the case of CHAIN 1, the latter is not met since goats are slaughteredat home or in the residence of traders supplying meat to the vendor/retailer. The suppliers of goat meatregularly observes the delivery schedule which is 6:00-6:30 AM in time for the product to be madeavailable from 6:00-11:00 AM.

The required volume of the institutional buyer per day as seen in Table 6, ranges from 3-32 kgcarcass; 3-15 kg offals and 3-5 kg head. As to the individual costumer, the average volume per purchaseis 1.44 kg for carcass; 0.83 kg for offals and 2.0 kg for the head. The chevon dishes (and required parts)prepared by the institutional buyer and individual costumer are similar with most of the customerspreferring to cook caldereta (85.0%) and papaitan (69.0%). The other chevon dishes cooked are adobo,sampalokan and kampukan.

The required volume of the meat vendor on the other hand, is the sum total of the volume tradedand the backorders. The volume traded in Chain 1 is 2 heads daily and 4 heads during Saturday andSunday translated to 922 heads yearly while the yearly backorder totals 237 heads which is the unmetvolume in Chain 1 (Table 7).

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Table 6. Key customers, location and product requirements, CHAIN 1 Science City of Muñoz

KEY CUSTOMERS LOCATION

PRODUCT REQUIREMENTS

QUALITY VOLUME (Average)

DELIVERYSCHEDULE/PRODUCT

AVAILABILITY

CHEVON DISHES/REQUIRED PARTS

Meat Vendor/Retailer Science City of MuñozPublic Market

Female goat, young,meaty, fresh and native

Monday-FridayCarcass/Offals –22.4 kg/dayHead/legs – 2.6 kg/daySaturday & SundayCarcass/Offals – 44.8kg/dayHead/legs – 5.2 kg/dayBackorders: 13 kg/day

6:00am – 11:00 am

Institutional Buyer Sabado Night –Provincial Road, Licaong,SCM

Ricos Sa Goat KitaCarenderias – ProvincialRoad, Bantug, SCM

Abiog’s Kambingan 1 –Poblacion East, SCM

Abiog’s Kambingan 2 –Provincial Road, BakalIII, Talavera

No foul odor and requiresslaughter permit

Carcass: 3-32 kg per dayOffals: 3-15 kg per dayHead: 3-5 kg per day

8:00am – 11:00 pm Caldereta- – ribs andshoulderAdobo – ribs andshoulderKampukan – skin,liver and loinPapaitan – offalsSampalokan – headand neck

Individual Customer Within the city premises Female (75%), young(66.67%), freshness (50%),meatiness (25%), reddishin color and it is newlyslaughtered (50%), nodisease (25%)

Per purchaseCarcass: 1.44 kgOffals: 0.83 kgHead: 2 kg

Caldereta – carcass(85%)Papaitan-offals (69%)Sampalokan- head(38%)Adobo- carcass (31%)Kampukan- skin, liverand loin (23%)

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Table 7. Volume of chevon traded and backorders of meat vendor/retailer, CHAIN 1Science City of Muñoz

VOLUME

Transaction: # of heads in kg/day # of daysTotal kgyearly # of heads

Daily (Mon.-Fri.) 2 269 538Carcass/Offals 22.4 269 6025.6Head/Legs 2.6 269 699.4

Sat. & Sun. 4 96 384Carcass/Offals 44.8 96 4300.8Head/Legs 5.2 96 499.2

Total 922Carcass/Offals 67.2 10326.4Head/Legs 7.8 1198.6

ForegoneTransaction: in kg/day # of days

Total kgyearly # of heads

Backorders 13 365 4,745 237Basis:1. Average live weight of slaughter goat is 20 kg per head2. 365 days in a year, regular days of 269 and the remaining 96 days of Saturday and Sunday

In CHAIN 2 San Jose City, the quality requirements of the key customers (meat vendor/retailer,institutional buyer and individual customer) are similar in terms of meatiness, age (young) and freshnessexcept with that of the assembler-retailer which does not have a quality requirement as long as the priceis affordable (Table 8).

In the same table, the required volume of the institutional buyer per day ranges from 1-6 kgcarcass for the carenderias and 10 kg or 1 head for Dacoco restaurant. The individual costumer on theother hand purchase 1.5 kg carcass; 1.67 kg offals and 2.0 kg head. The chevon dishes (and requiredparts) prepared by the institutional buyer and individual costumer are similar with half and almost half ofthe customers preferring to cook caldereta (50.0%) and papaitan (42.0%). The other chevon dishescooked are adobo, sampalokan and kampukan.

The required delivery schedule of goat meat at 4:00-4:30 AM is met by the suppliers in time forthe product to be available for sale from 4:00-8:30 AM.

The volume traded in Chain 2 is 3 heads daily, 4 heads during Saturday and Sunday and 8heads during holidays translated to 1,251 heads yearly while the yearly backorder totals 256 headswhich is the unmet volume in Chain 2 (Table 9).

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Table 8. Key customers, location and product requirements, CHAIN 2 San Jose City

KEY CUSTOMERS LOCATION

PRODUCT REQUIREMENTS

QUALITY VOLUME (Average)

DELIVERYSCHEDULE/PRODUCT

AVAILABILITY

CHEVON DISHES/ REQUIREDPARTS

Assembler Retailer San Jose City Public Market As long as price isaffordable

Monday-FridayCarcass & Offals – 37.5 kg/dayHead – 4.2 kg/daySat & SunCarcass & Offals – 50.0 kg/dayHead – 5.6 kg/dayHolidaysCarcass & Offals – 100 kg/dayHead – 11.2kg/dayBackorders: 14 kg/day

4:00am-8:30am

Meat Vendor/Retailer San Jose City Public Market Young goats, with bighorn, good physicalappearance

Monday-Friday Carcass &Offals – 37.5kg/dayHead – 4.2 kg/daySat & Sun Carcass & Offals –50 kg/dayHead – 5.6 kg/dayHolidays Carcass & Offals –87.5kg/dayHead – 9.8 kg/day

4:30am -11:00am

Institutional Buyer Dacoco Mami Shop - Sibut,SJC, Mc Morris Eatery -Truckfort Shell, Malasin,SJC, Irma’s Eatery -Truckfort Shell, Malasin SJCIlocandia’s Eatery -Truckfort Shell, Malasin, SJCMelanie’s Eatery - TruckfortShell, Malasin, SJC

Meatiness, young goats,

no foul odor, fresh.

1-6 kg of carcass were cookeddaily by carenderias whileDacoco Restaurant- 10 kg or 1head cooked daily

6:00am-1:00am forDACOCO while

others available 24hours

Adobo -carcassPapaitan- offalsCaldereta- carcassSampalokan-headKampukan- skin,liver,loinAsado - carcass

Individual Customer Within the city premises Young (41.67%), easyto cook (41.67%), fresh(8.3%), meaty (8.3%)

Per purchaseCarcass-1.5kgOffals -1.67kgHead – 2 kg

Caldereta – carcass (50%); Papaitan-offals (42%);Sampalokan- head(8%)Adobo- carcass (33%);Kampukan-skin, liver and loin (8%)

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Table 9. Volume of chevon traded and backorders of meat vendor/retailer, CHAIN 2 SanJose City

VOLUME

Transaction:# of

heads in kg/day # of days Total kg yearly # of headsDaily (Mon.-Fri.) 3 257 771Carcass/Offals 37.5 257 9,637.50Head/Legs 4.2 257 1,079.40

Sat. & Sun. 4 96 384Carcass/Offals 50 96 4,800.00Head/Legs 5.6 96 537.60

Holidays 8 12 96Carcass/Offals 100 12 1,200.00Head/Legs 11.2 12 134.40

Total 1,251Carcass/Offals 187.5 15,637.50Head/Legs 21 1,751.40

Foregone Transaction: in kg/day # of days Total kg yearly # of headsBackorders 14 365 5,110 256Basis:1. Average live weight of slaughter goat is 21.5 kg per head2. 365 days in a year, regular days of 269 and the remaining 96 days of Saturday and Sunday

In CHAIN 3 Cabanatuan City, the quality requirements of the key customers (meatvendor/retailer, institutional buyer and individual customer) are similar in terms of freshness, meatiness,age (young) as shown in Table 10. As to the volume, the institutional buyer requires 5-30 kg carcass perday and 4 kg offals. The individual costumer on the other hand, purchase on the average 1.99 kgcarcass per purchase; 1.33 kg offals and 1.25 kg head. The suppliers of goat meat observes therequired delivery schedule as early as 1:00 AM in time for the product to be made available from 1:00-9:00 AM.

The chevon dishes (and required parts) prepared by the institutional buyer and individualcostumer are also similar with 75.0% of the customers preferring to cook caldereta; papaitan, 38.0%;and sampalokan and adobo, both at 25.0%.

The volume traded in Chain 3 is 5 heads daily, and 9 heads during Saturday and Sundaytranslated to 2,209 heads yearly while the yearly backorder totals 636 heads which is the unmet volumein Chain 3 (Table 11).

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Table 10. Key customers, location and product requirements, CHAIN 3 Cabanatuan City

KEYCUSTOMERS

LOCATION

PRODUCT REQUIREMENTS

QUALITY VOLUME (Average)

DELIVERYSCHEDULE/PRODUCT

AVAILABILITY

CHEVONDISHES/

REQUIREDPARTS

Assembler MeatVendor/Retailer

Sangitan Public Market, CabanatuanCity

Freshness, meatiness Monday-FridayCarcass – 133 kg/dayOffals – 33.1 kg/dayHead – 8.65 kg/daySat&SunCarcass – 103.33 kg/dayOffals – 59.59 kg/dayHead – 15.56 kg/dayBackorders:20 kg/day

Peak season: 1:00am – 7:30 amLean season 1:00 –9am

InstitutionalBuyer

Daniela’s Lomie House – KapitanPepe, Cabanatuan City;LamarangSteak & Seafood Restaurant – SanJuan, Cabanatuan City ; Cuatro CantosBar and Restaurant - Sangitan East,Cabanatuan City; Amang’s Kambingansa Hi-Way – DS Garcia, CabanatuanCity; Carlos Lechon and Kambingan –Sumacab Sur, Cabanatuan City

Young goat andmeaty

Carcass : 5-30 kgOffals – 4 kg

6:00 am – 12:00pm Adobo – carcassCaldereta – carcassPapaitan- offalsKampukan – skin &loinKilawen – liver &loin

IndividualCustomer

Within the city premises Young goat (meat iseasy to cook)(66.67%), fresh(33.33%) and meaty(66.67%)

Per purcahseCarcass -1.99kgOffals -1.33kgHead -1.25kg

Caldereta – carcass(75%)Papaitan-offals(38%)Sampalokan- head(25%)Adobo- carcass(25%)

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Table 11. Volume of chevon traded and backorders of goat meat vendor, CHAIN 3Cabanatuan City

VOLUME

Transaction:# of

heads in kg/day # of days Total kg yearly# of

headsDaily (Mon.-Fri.) 5 269 1,345

Carcass 133 269 35,777Offals 33.1 269 8,904Head 8.65 269 2,327

Sat. & Sun. 9 96 864Carcass 103.33 96 9,920Offals 59.59 96 5,721Head 15.56 96 1,494

Total 2,209Carcass 236.33 45,696.68Offals 92.69 14,624.54Head 24.21 3,820.61

Foregone Transaction: in kg/day # of days Total kg yearly# of

headsBackorders 20 365 7,300 636Basis:1. Average live weight of slaughter goat is 26.6 kg per head2. 365 days in a year, regular days of 269 and the remaining 96 days of Saturday and Sunday

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Table 12. Key customers, location and product requirements, CHAIN 4 Camiling Tarlac

KEYCUSTOMERS

LOCATION

PRODUCT REQUIREMENTS

QUALITY VOLUME

DELIVERYSCHEDULE/PRODUCT

AVAILABILITY

CHEVONDISHES/

REQUIREDPARTS

MeatVendor/Retailer

Camiling Public Market Meaty, young, male, fresh Monday-FridayCarcass& Offals - 44.48kg/day; Head – 8.4kg/daySat&Sun Carcass&Offals – 88.96 kg/day;Head – 16.8kg/dayHolidays Carcass&Offals – 148.26 kg/day;Head – 28kg/dayBackorders: 6 kg/day

4:30 am – 11:00 am

Institutional Buyer Ela’s Eatery - PoblacionD, Camiling Tarlac;Stomach In - Poblacion D,Camiling Tarlac; De JesusEatery – Poblacion WestCentral, Camiling, TarlacLorenzo Eatery -Poblacion D, CamilingTarlac

Young age, meatiness,preferably female with nofoul odor

Carcass:3- 6 kgOffals:1-3 kgHead : 3 kg

8:00am – 11:00pm Adobo – carcassCaldereta -carcassSampalokan – headPapaitan- offalsKilawen – skin,loin& liver

IndividualCustomer

Within the municipalpremises

Female goat no foul odor(20%), Young goatmeat(easy to cook) (75%),Fresh (50%)and Meaty(50%) , Leg part (10%)

Per purchaseCarcass: 0.83 kgOffals:1.89 kgHead:3 kg

Caldereta – carcass(90%)Papaitan-offals(100%)Sampalokan- head(60%)Kampukan- skin,liver and loin(10%)

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The volume traded in Chain 4 is 3 heads daily, 6 heads during Saturday and Sunday and 10heads during holidays translated to 1,467 heads yearly, while the yearly backorder totals 217 headswhich is the unmet volume in Chain 4 (Table 13).

Table 13. Volume of chevon traded and backorders of goat meat vendor, CHAIN 4Camiling, Tarlac

VOLUME

Transaction:# of

heads in kg/day # of days Total kg yearly # of headsDaily (Mon.-Fri.) 3 257 771

Carcass &Offals 44.48 257 11,431.36Head 8.40 257 2,158.80

Sat. & Sun. 6 96 576Carcass &Offals 88.96 96 8,539.90Head 16.80 96 1,612.80

Holidays 10 12 120Carcass &Offals 148.26 12 1,779.15Head 28.00 12 336.00

Total 1,467Carcass &Offals 281.70 21,750.41Head 53.20 4,107.60

Foregone Transaction: in kg/day # of days Total kg yearly # of headsBackorders 6 365 2,190 217Basis:1. Average live weight of slaughter goat is 23.33 kg per head2. 365 days in a year, regular days of 269 and the remaining 96 days of Saturday and Sunday; 12days of holiday was assumed

In CHAIN 5 Tarlac City, the quality requirements of the key customers (meat vendor/retailer,institutional buyer and individual customer) are also similar in terms of freshness, meatiness, age (young)and female as shown in Table 14. In terms of volume, the institutional buyer requires 2-10 kg carcassand 2-4 kg offals per day . The individual costumer on a per purchase basis buys on the average 1.75kg carcass; 1.25 kg offals and 1.33 kg head. The suppliers of goat meat observes the required deliveryschedule as early as 4:00 AM in time for the product to be made available from 4:00-9:00 AM daily.

The chevon dishes (and required parts) prepared by the institutional buyer and individualcostumer are also similar with 63.0% of the customers preferring to cook caldereta; papaitan, andsampalokan, 25.0%; and kampukan,13.0%.

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Table 14. Key customers, location and product requirements, CHAIN 5 Tarlac City

KEYCUSTOMERS

LOCATION

PRODUCT REQUIREMENT

QUALITY VOLUME

DELIVERYSCHEDULE/PRODUCT

AVAILABILITY

CHEVON DISHES/REQUIRED

PARTS

Assembler-MeatVendor/Retailer

Tarlac City Public Market Meaty; fresh, female; andyoung because easy tocook

Monday-FridayCarcass – 38.37 kg/dayOffals – 19.08 kg/dayHead - 10.85 kg/daySat&SunCarcass – 57.55 kg/dayOffals – 28.63 kg/dayHead – 16.27 kg/dayHolidaysCarcass – 115.10 kg/dayOffals – 57.25 kg/dayHead - 32.54 kg/dayBackorders:10 kg/day

4:00-9:00am daily

Institutional Buyer Julia’s Chinese Cuisine2 – San Rafael, TarlacCity; Julia’s ChineseCuisine 1 – Poblacion,Capaz, TarlacKongs Eatery – Dolores,Capaz, Tarlac; SaysKambingan – SanRafael, Tarlac City;Meeh!!Mee!! SasalitsitNamen – Matatalaib,Tarlac City

Female goat less odor, oldbecause meaty and thighpart – meaty also

Carcass – 2 -10kgOffals 2-4 kg per day

7:00 am -8:00pm Papaitan - offalsKampukan – skin &loinCaldereta - carcassAdobo - carcassSisig – loin,liver &skin

IndividualCustomer

Within the city premises Female goat(20%);Young goat meat iseasy to cook (66.67%),Fresh (33.33%)and Meaty(66.67)

Per purchaseCarcass- 1.75 kgOffals -1.25 kgHead – 1.33 kg

Caldereta – carcass(63%)Papaitan-offals (25%)Sampalokan- head(25%)Kampukan- skin,liver and loin (13%)

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The volume traded in Chain 5 is 4 heads daily, 6 heads during Saturday and Sunday and 12heads during holidays, translated to 1,748 heads yearly while the yearly backorder totals 374 headswhich is the unmet volume in Chain 5 (Table 15).

Table 15. Volume of chevon traded and backorders of goat meat vendor, CHAIN 5Tarlac City

VOLUME

Transaction:# of

heads in kg/day # of days Total kg yearly # of headsDaily (Mon.-Fri.) 4 257 1,028Carcass 38.37 257 9,860.00Offals 19.08 257 4,904.44Head 10.85 257 2,787.94

Sat. & Sun. 6 96 576Carcass 57.55 96 5,524.67Offals 28.63 96 2,748.02Head 16.27 96 1,562.11

Holidays 12 12 144Carcass 115.10 12 1,381.17Offals 57.25 12 687.00Head 32.54 12 390.53

Total 1,748Carcass 211.01 16,765.84Offals 104.96 8,339.46Head 59.66 4,740.58

Foregone Transaction: in kg/day # of days Total kg yearly # of headsBackorders 10 365 3,650 374

Basis:1. Average live weight of slaughter goat is 22.6 kg per head2. 365 days in a year, regular days of 269 and the remaining 96 days of Saturday and Sunday; 12 daysof holiday

was assumed

Individual Customers’ Reasons in Purchasing Fresh Chevon

Table 16 reflects the stated reasons in purchasing fresh chevon of the 51 interviewed consumer-respondents which indicate that goat meat are tasty and more delicious (31.0%), nutritious and healthyas goat feeds on grass (29.0%); fresh (29.0%), with less cholesterol/fat (25.0%) and family favorite(24.0%). Other reasons cited in purchasing fresh chevon were such that various dishes can beprepared, sure quality, no foul smell, meaty, delicacy, do not eat porkand for business. The reasons cited point to the fact that goat meat offers various advantages and can bea very good source of protein for other meat such as pork and beef with lesser cholesterol and fat. Lesserfat and cholesterol means a healthier red meat for consumers who are becoming more and more healthconscious nowadays.

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Table 16. Reasons of individual costumers in purchasing fresh chevon

ITEMNUEVA ECIJA

(n=33)TARLAC

(n=18)ALL

CONSUMERS(n=51)

Freq* % Freq* % freq %

Taste good /Tasty /More delicious 9 27 7 39 16 31Healthy food/nutritious/no chemicals/lots of

vitamins/clean because only eat grass 7 21 8 44 15 29Fresh 9 27 4 22 13 25Less/No cholesterol/fat 6 18 6 33 12 24Family favorite/Like to eat 1 3 3 17 4 8Variety of dishes can be prepared 3 9 3 6Sure quality 2 6 2 4No foul smell 2 6 2 4Do not eat pork 1 3 1 2Meaty 1 6 1 2Delicacy 1 3 1 2For business 1 6 1 2

* Multiple response

Willingness to Pay for Goat Meat

The consumer respondents were also asked as to their willingness to pay for goat meatspecifically the carcass part. The result showed that not all of the individual consumers are willing to payhigher price for carcass as indicated by the range of prices and the average price they are willing to pay,with the exception of consumers in CHAIN 2 (San Jose City) wherein the average price they are willing topay at PhP 222.00 per kg is higher than the prevailing market price of PhP210.00 (Table 17). Theaverage price that consumers are willing to pay in CHAIN 1 is PhP 213.00 which is lower than theprevailing price of PhP230.00 per kg; PhP 207.00 in CHAIN 3 which is also lower than the prevailing priceof PhP230.00; PhP 208.00 viz a viz a much higher market price of PhP250.00 in CHAIN 4; and PhP210.00 average price willing to pay in CHAIN 5 which is lower than the PhP240.00 prevailing marketprice. This indicates the desire of consumers for a lower priced goat meat.

Table 17. Willingness of individual costumers to pay for goat meat (carcass/kg)

ITEM CHAIN 1SCM

CHAIN 2SJC

CHAIN 3Cabanatuan

CityCHAIN 4Camiling

CHAIN 5Tarlac City

Prevailing price/kg 230 210 230 250 240Ave. price willing topay/kg 213 222 207 208 210

Range 150-250 210-250 190-230 160-250 200-220

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Product, Information and Payment Flow of Fresh Chevon

CHAIN 1 Science City of Munoz, Nueva Ecija

CHAIN 1 represents the Science City of Munoz supply chain in Nueva Ecija. The city is situated147 km north of Manila and has a total area of 163.05 km2 (62.95 sq mi) and total population of 85,451as of 2009.

Slaughter goats in CHAIN 1 are sourced from the goat raisers within the barangays of the Cityand other towns in Nueva Ecija. Nearer sources are Lupao, which is 16.4 km away from the city;Talavera, 17 km and San Jose City, 16.3 km. Goats are also sourced as far as Guimba which is 33 kmaway from the city; Pantabangan, 49.2 km and Carranglan, 50.7 km. Goats are also sourced outside ofthe province, in Umingan, Pangasinan which is 35.8 km away from the city.

As seen in Fig. 4, the general product flow of fresh chevon in Science City of Munoz is from thegoat raiser to the barangay agent (BA)/locator to assembler-wholesaler (AW) or from the goat raiserdirectly to the AW then to the market vendor/retailer and finally to the institutional buyer and individualcustomer. Goats from the raisers are located by a barangay agent (BA) who informs the assemblerwholesaler (AW) of the available goats for sale (8 to 10 months old). The AW assisted by the BA thenpersonally sees the raiser in the barangay, usually in the afternoon, transacts the business and buys theanimal if they both agreed on the estimated weight of the animal and price per kg liveweight. The soldanimals are transported using tricyclyle or kolong-kolong. The AW in Munoz does its own slaughtering athome, early in the next morning in time to deliver the goat carcass either directly to the institutional buyerand or to the market vendor/retailer (MV/R) at 6:00-6:30 A.M. The MV/R owns a stall in the market andapart from chevon also sells pork, chicken, vegetables, fish and other products used in cooking. Itnormally takes 5 hours to sell the chevon for the day from 6:00-11:00 AM to individual costumers andinstitutional buyers such as carenderias and restaurants. It does not take so much time to dispose goatmeat because of the limited supply.

The institutional buyer sells cooked chevon dishes such as adobo, kaldereta, sinampalukan,kampukan and pinapaitan. Business hour of the institutional buyers is from 8:00 AM- 11:00 PM. It shouldbe noted that these carenderias also offer pork, chicken, beef and vegetable dishes.

13-14 hours

Own SlaughterStunning

Sticking

Scalding

Singeing

Dressing

Delivered

Pick-up

5 hours

1-2 hours

Day 3

Day 2

Day 1

30 min -1hour

Pick-up

Goat Raiser

Brgy. Agent/Locator

Assembler Wholesaler

Market Vendor/Retailer

IndividualCostumer

(13)

InstitutionalBuyer

8am-11pm

Fig. 4. Product flow of fresh chevon in CHAIN 1 Science City of Muñoz

The payment flow of Chain 1 as reflected in Fig. 5 is generally straightforward wherein the goatraiser, the BA and the butcher are paid in cash. The price per kg liveweight of goat is PhP 100.00The BA is paid PhP 50.00 per head for his service while the butcher is paid PhP 80.00 per headwhich covers the slaughtering fee of PhP 70.00 per head and PhP 10.00 for his services in joining theAW in transacting business in the barangay. The transaction between the AW and the MV/R is on credit,wherein the latter pays in the afternoon or the following day of delivery of the AW at a price of PhP 200.00

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per kg for carcass and offals and PhP 110.00 per kg for head/feet. The payment to AW who deliversgoat carcass directly to the institutional buyer is also on credit, paid three days after delivery at the sameselling price given to MV/R. The individual customers and the other institutional buyers pay the MV/R incash at the following prices: PhP 220-230.00 per kg for carcass and offals; PhP 150.00 per kg forhead/feet.

The institutional buyer who serves chevon dishes are paid in cash and charges the customersand diners ranging from PhP60.00-70.00 per serving which is good for 1-2 persons per serving.

Credit

Cash basis

Cash basis

Cash basis

Cash basis

Goat Raiser

Brgy. Agent/locator

AssemblerWholesaler

Market Vendor/Retailer

Individual CostumerInstitutional Buyer

Butcher

Credit

Fig. 5. Payment flow of fresh chevon in CHAIN 1 Science City of Munoz

The information flow in Chain 1 is reflected in Fig. 6. The exchange of information between andamong the supply chain members is generally done face to face and through the use of mobile phones.Information about sources, availability and volume of goats for sale emanates from the BA who generallyhave direct contact with the goat raisers. These information on sources, volume and availability as wellas delivery schedules were the major information requirements of the chain members, particularly the AWand the MV/R. Farm gate prices and prices at the wholesale and retail levels are generally stable.Information on demand and product requirements for fresh chevon emanate from the key customerssuch as the meat vendor, individual customers and institutional buyers which is exchanged face to face.

Text MessagingFace to Face

Face to Face

Face to FaceText Messaging

Face to Face

BarangayAgent/locator

Institutional Buyer

MarketVendor/Retailer

Individual Costumer

Goat raiser

Assembler Wholesaler

Text MessagingFace to Face

Text MessagingFace to Face

Fig. 6. Information flow of fresh chevon in CHAIN 1 Science City of Munoz

CHAIN 2 San Jose City, Nueva Ecija

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CHAIN 2 represents the San Jose City fresh chevon supply chain in Nueva Ecija. The city isnestled at the foot of the Caraballo Mountain Range and is one of the busiest business centers in theprovince of Nueva Ecija. Chartered as a city in August 10, 1969, with a population of 121,000 as of 2007and caters to all sorts of educational, commercial, financial and service facilities.

Slaughter goats in CHAIN 2 are sourced from the goat raisers within the City and nearer towns inNueva Ecija such as Science City of Munoz (16.3 km), Lupao (15.3 km). Farther towns where goats aresourced out, include Pantabangan (33.33 km) and Carranglan (36.5 km) and Umingan, Pangasinanwhich is 32.8 km away from the city.

As seen in Fig. 7, goats for slaughter (8-10 months old) sourced from the goat raiser either flowsdirectly to the AW, assembler retailer (AR) and to the institutional buyer without passing the BA. The moredirect product flow with the involvement of all the key players is from the goat raiser to the BA, to the AWthen to the AR and the meat vendor where institutional buyer and individual customer buy fresh chevon.Similar to the Munoz supply chain, the BA locates slaughter goats for the AW by scouting within hisbarangay and nearby barangays and being paid PhP 50.00 per head. The AW personally negotiateswith the goat raiser the price and estimated weight of the animal. Upon agreement on both sides, theraiser is paid in cash and the AW transports the sold animals using a kolong kolong that canaccommodate 3-4 animals at one time. The AW normally has PhP 10,000.00 as his capital in buyinggoats and in the event that more than 4 goats are available for sale as tipped by the BA, a financier issought for the additional capital needed to buy the animals. In this case the financier joins the AW in thebarangay to personally look and participate in the negotiation process.

From the AW, the animal is picked up by the AR, but delivered to the meat vendor, who bothbrings the goat to the local government owned abattoir for slaughtering by accredited butchers.Slaughtering starts as early as 2:00 AM in time for the delivery of the goat meat to the marketvendor/retailer at 4:00-4:30 AM. Slaughter fee is PhP 65.00 per head for small animal like goat, brokendown as follows: PhP 40.00, slaughter fee; PhP 15.00, veterinary health certificate; and PhP10.00, weightand measure. The LGU of San Jose has an ordinance that all animals to include goat, cattle and swineshould be slaughtered in the abattoir.

Both the AR and the meat vendor own a stall in the market where transactions are being madewith the individual customer and institutional buyer such as restaurants and carenderias who directly buychevon from them. Goat meat in the San Jose City public market are generally sold starting at 4:00 AMand concluded as early as 8:30 AM and the latest is 11:00 AM. The strategically located restaurants andcarenderias serve goat dishes 24 hours daily as they serve viajeros and commuters going to and fromthe Northern part of Luzon. One of the institutional buyer (DACOCO) however, only operates from 6:00AM to 1:00 AM. It should be noted that these carenderias also offer pork, chicken, beef and vegetabledishes.

24 hours

4am-8:30am

24 hours

30 min

Pick-up

Day 2

18-22 min.

Pick-up

Day 1

Day 3

Pick-up

Pick-upDelivered

Goat Raiser

Individual costumerInstitutional buyer

AssemblerWholesaler

AssemblerRetailer

Brgy. Agent/Locator

San Jose CitySlaughter House

Stunning

Sticking

Scalding

Singeing

Dressing

Financier

Meat Vendor

Pick-up Delivered

Fig. 7. Product flow of fresh chevon in CHAIN 2 San Jose City

The flow of payment of Chain 2 is reflected in Fig. 8, where payment transactions are done oncash basis except between the AW and one of the institutional buyers in San Jose City where thedelivered chevon is paid on credit (3-4 days after delivery). The goat raiser is paid PhP 90.00-100.00 perkg liveweight. The BA is paid a commission of PhP 50.00 per head by the AW for his service. The

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selling price of slaughter goat traded to AR and meat vendor is PhP 120.00 per kg liveweight, but if soldby “tantyahan”, PhP200.00 is added by the AW to the acquisition cost of the animal.

The transaction between the AW and the MV/R is on cash basis wherein the latter pays the AWat a price of PhP 200.00 per kg for carcass and offals and PhP 110.00 per kg for head/feet. Thepayment to AW who delivers goat carcass directly to the institutional buyer is on credit, paid 3-4 daysafter delivery at the same selling price given to MV/R. The individual customers and the otherinstitutional buyers pay the MV/R in cash at the following prices: PhP 220-230.00 per kg for carcass andoffals; and PhP 150.00 per kg for head/feet.

The institutional buyer who sells a variety of chevon dishes are paid in cash, charging customersand diners, ranging from PhP60.00-70.00 per serving which is good for 1-2 persons per serving.

Cash Basis

Credit

Cash Basis

Cash BasisCash Basis

Cash Basis

Cash Basis

Goat Raiser

Individual costumerInstitutional buyer

AssemblerWholesaler

AssemblerRetailer

Brgy. Agent/Locator

Financier

Meat Vendor

Fig. 8. Payment flow of fresh chevon in CHAIN 2 San Jose City

The exchange of information between and among the supply chain members in CHAIN 2 asreflected in Fig. 9 is also generally done face to face and through the use of mobile phones. Informationabout sources, availability and volume of goats for sale generally emanates from the BA who have directcontact with the goat raisers. There are also goat raisers who are directly contacted by AW and AR.Information on sources, volume and availability as well as delivery schedules were the major informationrequirements of the chain members. Farm gate prices and prices at the wholesale and retail levels aregenerally stable. Information on demand and product requirements emanate from the key customerssuch as the meat vendor, retailer, individual customers and institutional buyers which is exchanged faceto face and through text messaging.

Face to FaceText Messaging

Face to Face

Face to Face

Text Messaging

Face to Face

Text Messaging

Face to Face

Goat Raiser

Assembler Wholesaler

Individual Costumer

Market Vendor

Institutional Buyer

Brgy. Agent/Locator

Financier

Assembler Retailer

Face to FaceText Messaging

Fig. 9 Information flow of fresh chevon in CHAIN 2 San Jose City

CHAIN 3 Cabanatuan City

CHAIN 3 represents the Cabanatuan City supply chain in Nueva Ecija. The City of Cabanatuanis a first class, partially urban city in the province of Nueva Ecija. The total population of the city as of

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2007 is 276,638 and the total land area is 192.29 km2 (74.24 sq mi). It is considered the commercial,industrial and educational hub of the province and in terms of income and economic growth, Cabanatuanis one of the fastest-growing cities in the country.

Slaughter goats in CHAIN 3 are sourced from goat raisers in Nueva Ecija and outside of theprovince. In Nueva Ecija, goats are sourced from Aliaga which is 18.5 km away from Cabanatuan City;Talavera, 14.6 km; Quezon, 25.5 km; Baloc, 22.7 km; Guimba, 37.7 km; Bongabon (28.7 km) andGabaldon (46.5 km). Outside of the province, goats are sourced from San Miguel, Bulacan (43.1 km),Tarlac, Tarlac (50.3 km) and Arayat, Pampanga (45.6 km).

The product flow in CHAIN 3 as seen in Fig. 10 is leaner. Goats sourced from the goat raisereither flows directly to the assembler/meat vendor or passing through the BA then to the assembler/meatvendor down to the institutional buyer and individual customer. The brother of one of the meat vendorswho is a partner, directly buys goat from the goat raiser through a negotiated price agreed by bothparties and does own slaughtering of the animal. Two of the assembler/meat vendors in CHAIN 3 rely ona BA to locate goats in the barangay who is paid PhP50.00 per head for every concluded sale betweenthe assembler/meat vendor and the raiser. The assembler/meat vendor personally negotiates with theraiser (located by the BA) the price and estimated weight of the animal. Upon agreement on both sides,the raiser is paid in cash and the sold animals are transported using a kolong kolong that canaccommodate 3-4 animals at one time. The goats are slaughtered in the residence and the meat areoffered for sale as early as 1:00 AM and concluded as early as 7:30 AM during the peak season or 9:00AM during the lean season. Goat meat in Cabanatuan City are also disposed early because of the limitedsupply.

The meat vendors own a stall in the market where transactions are being made with the individualcustomer and institutional buyer such as restaurants and carenderias who directly buy chevon from them.The goat dishes are offered for sale from 6:00 AM to 12:00 PM. It should be noted that these carenderiasalso offer pork, chicken, beef and vegetable dishes.

6am-12:00pm

1am-7:30am

Pick-up

Pick-up

Pick-upPick-up

Delivered

Day 3

Day 2

Day 1Goat Raiser

Brgy. Agent/Locator

Assembler/Meat Vendor

Individual CostumerInstitutional Buyer

20-30min

Stunning

Sticking

Singeing

Dressing

Own Slaughter

Fig. 10. Product flow of fresh chevon in CHAIN 3 Cabanatuan City

Fig. 11 shows the payment flow of CHAIN 3. Payment transactions are all done on cash basis.The BA is paid a commission of PhP 50.00 per head for his services in locating goats for sale. Theselling price of slaughter goat traded is PhP 90.00 to 100.00 per kg liveweight. Differently from SCMand SJC where carcass and offals have the same price per kg, carcass and offals have separate price assold in CHAIN 3. Carcass is being sold at PhP230.00-240.00 per kg; offals at PhP150.00-180.00 per kg;and the head at PhP120.00-130.00 per kg.

The institutional buyer who sells a variety of chevon dishes are paid in cash, charging customersand diners, ranging from PhP50.00-150.00 per serving which is good for 1-2 persons per serving.

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Cash BasisCash Basis

Cash Basis

Cash Basis

Goat Raiser

Brgy. Agent/LocatorAssembler/Meat

Vendor

Individual CostumerInstitutional Buyer

Fig. 11. Payment flow of fresh chevon in CHAIN 3 Cabanatuan City

In Fig.12, the exchange of information between and among the supply chain members in CHAIN3 is also generally done face to face and through the use of mobile phones. The information about thesources, availability and volume of goats for sale also emanates from the BA who have direct contactwith the goat raisers. There are also goat raisers who are directly contacted by the assembler meatvendor. Information on sources, volume and availability as well as delivery schedules were the majorinformation requirements of the chain members. Similar with the other chains, farm gate prices and pricesat the wholesale and retail levels are generally stable. Information on demand and product requirementsemanate from the key customers such as the individual customers and institutional buyers which isexchanged face to face and through text messaging.

Face to FaceText Messaging

Face to Face

Face to Face

Goat Raiser

Brgy. Agent/locator

Assembler GoatMeat Vendor

Individual CostumerInstitutional Buyer

Face to FaceText messaging

Face to FaceText messaging

Fig. 12. Information flow of fresh chevon in CHAIN 3 Cabanatuan City

CHAIN 4 Camiling, Tarlac

CHAIN 4 represents the Camiling supply chain in Tarlac. Camiling is a first class municipality inthe western part of the province of Tarlac. It is about 150 kilometers north-northwest of Manila. It is thecommercial center of an area composed of about 8 towns, and borders the province of Pangasinan. Itstotal population as of 2007 is 79,941 with a total land area of 140.50 sq km.

Slaughter goats in CHAIN 4 are sourced from goat raisers in several municipalities in Tarlac suchas Sta. Ignacia which is 9.2 km away from Camiling; San Jose, 38 km; Gerona, 26.2 km; and as far asCapaz, 65.5 km and La Paz, 50.8 km. Goats are also sourced in Bayambang, Pangasinan which is nearCamiling (15 km away).

As seen in Fig. 13, goats for slaughter sourced from the goat raiser either flows directly to theAW, meat vendor/retailer and to the institutional buyer and individual customer without passing the BA. Inthis flow, the goats are picked up by either the AW and meat vendor/retailer from the goat raiser’s farmerafter the conclusion of the negotiated buying agreement with particular reference to the agreed price andweight of the animal.

The other flow of the product is from the goat raiser to the BA, to the AW then to the meatvendor/retailer where institutional buyer and individual customer buy fresh chevon. Similar to the othersupply chain, the BA locates slaughter goats for the AW by scouting within his barangay and nearbybarangays and being paid PhP 50.00 per head. The AW personally negotiates with the goat raiser theprice and estimated weight of the animal. Upon agreement on both sides, the raiser is paid in cash and

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the AW transports the sold animals using a kolong kolong that can accommodate 3-4 animals at onetime. The AW does its own slaughtering at home then delivers the carcass to the meat vendor/retailer at4:30 AM in the public market. The meat vendor/retailer who sourced goat directly to the raiser also doesits own butchering at home. The meat vendor/retailer owns a stall in the market where transactions arebeing made with the individual customer and institutional buyer such as restaurants and carenderias whodirectly buy chevon from them. Selling of fresh chevon in the Camiling public market generally starts at4:30 AM and concluded at 11:00 AM. Similar with the other chains, goat meat are also immediatelydisposed because of limited supply.

The strategically located restaurants and carenderias (located near the highway) serve goatdishes from 8:00 AM- 11.00 PM. It should be noted that these carenderias also offer pork, chicken, beefand vegetable dishes as observed in the other chains.

38 min.

8am-11pm

24 hours

Pick-up

Pick-upPick-up

Pick-up

Pick-up Brgy. Agent/Locator

Individual CostumerInstitutional Buyer

Meat Vendor/Retailer

Assembler Wholesaler

Goat Raiser

Day 3

Day 2

Day 1

Stunning

Sticking

Singeing

Dressing

Own Slaughter

Delivered

4:30am-11am

Fig. 13. Product flow of fresh chevon in CHAIN 4 Camiling, Tarlac

Payment transactions in CHAIN 4 (Fig. 14 ) are done on cash basis except between the AW andthe meat vendor/retailer, wherein it is on credit payable in the afternoon or paid the following day ofdelivery of the AW. The BA is paid a commission of PhP 50.00 per head for his services in locating goatsfor sale. The selling price of slaughter goat traded is PhP 100.00 to 110.00 per kg liveweight. The AWsells carcass and offals to the market vendor/retailer at PhP220.00/kg; and head at PhP130.00 per kg.The market vendor on the other hand, sells carcass and offals to the institutional buyer and individualcustomer on cash basis, at PhP250.00 per kg and head at PhP150.00 per kg.

The institutional buyer who sells a variety of chevon dishes are paid in cash, charging customersand diners, ranging from PhP50.00-70.00 per serving which is good for 1-2 persons per serving.

Cash

Cash

Cash

Cash

Cash

Brgy. Agent/locator

Individual Costumer

Meat Vendor/Retailer

Assembler Wholesaler

Goat Raiser

Institutional Buyer

Credit

Fig. 14. Payment flow of fresh chevon in CHAIN 4 Camiling, Tarlac

The exchange of information between and among the supply chain members in CHAIN 4 issimilar with the other chain which is done face to face and through the use of mobile phones (Fig. 15).The information about sources, availability and volume of goats for sale emanates from the BA who hasdirect contact with the goat raisers. Information on sources, volume and availability as well as deliveryschedules were the major information requirements of the chain members. Similar with the other chains,farm gate prices and prices at the wholesale and retail levels are generally stable although higher.Information on demand and product requirements emanate from the key customers such as theindividual customers and institutional buyers which is exchanged face to face and through textmessaging.

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Text Messaging

Brgy. Agent/locator

Institutional BuyerIndividual Customer

Meat Vendor/ Retailer

Assembler Wholesaler

Goat Raiser

Face to Face

Face to FaceText messaging

Text Messaging Face to FaceText messaging

Face to Face

Face to Face

Text Messaging

Text Messaging

Fig. 15. Information flow of fresh chevon in CHAIN 4 Camiling, Tarlac

CHAIN 5 Tarlac City

CHAIN 5 represents the Tarlac City supply chain in the province of Tarlac. Tarlac City is thecapital of the province and is the center of commerce and education. As of 2007, the city’s population is1,243,449 and its land area is 2,736.6 sq km.

Slaughter goats in CHAIN 5 are sourced from goat raisers in the city (San Rafael, 18.3 km andSan Isidro, 18.6 km ) and in the municipality of Capas in Tarlac which is 31.9 km.

The product flow in CHAIN 5 as seen in Fig. 16 shows that goats sourced from the goat raisereither flows directly to the assembler/meat vendor or passing through the BA then to the assembler-retailer and the meat vendor down to the institutional buyer and individual customer. Another flow whichdiscards the BA and AW is from the goat raiser directly to the AR then to the end consumers. The BAwho locates goats in the barangay is paid PhP50.00 per head for every concluded sale between the AWand the raiser. The AW and AR personally negotiates with the raiser the price and estimated weight ofthe animal. Upon agreement on both sides, the raiser is paid in cash and the sold animals aretransported using a kolong kolong that can accommodate 3-4 animals at one time..

Goats are then slaughtered in the residence of the AR and the meat vendor-retailer, and areoffered for sale as early as 4:00 AM and concluded as early as 8:30-9:00 AM. Transaction between theAR and meat vendor-retailer was observed in terms of the latter buying carcass from the AR when thevendor runs out of supply. Just like in the other chains, goat meat can be immediately disposed becauseof the limited supply.

The AR and the meat vendor/retailer own a stall in the market where transactions are being madewith the individual customer and institutional buyer such as restaurants and carenderias who directly buychevon from them. The goat dishes are offered for sale from 7:00 AM to 8:00 PM. It should be noted thatthese carenderias also offer pork, chicken, beef and vegetable dishes.

Day 3

Day 2

Day 1

Stunning

Sticking

Singeing

Dressing

Goat Raiser

AssemblerRetailer

Meat Vendor/Retailer

InstitutionalBuyer

Individualbuyer

Costumer

Own Slaughter

Brgy. Agent/LocatorPick-up

2min.

1 min.

36 min.

20 min.

Pick-up

Pick-up

Delivered Pick-up

Assembler Wholesaler

Pick-up

4am-9am

7am-8pm

Fig. 16. Product flow of fresh chevon in CHAIN 5 Tarlac City

Payment transactions in CHAIN 5 are done on cash basis (Fig. 17). The BA is paid acommission of PhP 50.00 per head for his services in locating goats for sale. The selling price ofslaughter goat traded is PhP 110.00-130.00 per kg liveweight. The AR and meat vendor-retailer sellscarcass to the end consumers at PhP240.00/kg; offals at PhP 140 per kg and head at PhP140.00 per kg.

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Transaction between the AR and meat vendor-retailer was observed in terms of the latter buying carcassfrom the AR when the vendor runs out of supply. The AR sells carcass to the meat vendor-retailer atPhP220.00 per kg. The institutional buyer who sells a variety of chevon dishes are paid in cash, chargingcustomers and diners, ranging from PhP50.00-120.00 per serving which is good for 1-2 persons perserving.

Cash Basis

Cash Basis

Cash Basis

Goat Raiser

AssemblerRetailer

Meat Vendor/Retailer

IndividualCostumer

Brgy. Agent/LocatorAssembler Wholesaler

Cash BasisCash Basis

Cash BasisCash Basis

InstitutionalBuyer

Fig. 17. Payment flow of fresh chevon CHAIN 5 Tarlac CityThe exchange of information between and among the supply chain members in CHAIN 5 is

similar with the other chain which is done face to face and through the use of mobile phones (Fig.18).The information about sources, availability and volume of goats for sale emanates from the BA who hasdirect contact with the goat raisers. Information on sources, volume and availability as well as deliveryschedules were the major information requirements of the chain members. Similar with the other chains,farm gate prices and prices at the wholesale and retail levels are generally stable but higher than theother chains. Information on demand and product requirements emanate from the key customers suchas the individual customers and institutional buyers which is exchanged face to face and through textmessaging.

Face to Face

Face to Face

Text messagingFace to Face

Goat Raiser

AssemblerRetailer

Meat Vendor/Retailer

IndividualCostumer

InstitutionalBuyer

Brgy. Agent/LocatorAssembler Wholesaler

Face to Face

Text messagingFace to Face

Face to Face

Face to Face

Face to Face

Face to Face

Fig. 18. Information flow of fresh chevon in CHAIN 5 Tarlac City

Activities and Processes Along the Chain

Various activities are performed as chevon moves along the entire supply chain. For slaughtergoats, the goat raisers perform several production/management activities which reflect the very nature ofraising goats. Most of the goat producers raise native breeds of goats and house them in temporarysheds. Natural breeding is practiced and both tethering and free grazing are also practiced. Dailygrazing of goats is being done in mountain pasture or owned and communal pasture areas with the flocksreturning late in the afternoon. The feeding of goats is thus largely dependent on available shrubs,grasses and leaves in the grazing land which defines the growth of goats and kids. Supplementaryfeeding of grains or mineral mixtures is totally not practiced which could have enhanced digestibility andnutrient availability from existing feed resources. Salt which is very cheap is given to the goats and someof the raisers use veterinary medicines to help prevent health related problems.

The slaughter goats are being sold by the goat raisers when the animals are generally 8-10months old, with weights ranging from 15-20 kg per head, indicative of native goats being traded in thesupply chain. Upgraded goats which are generally cull and with some acquired infirmities (crippled) arehowever, reported to be traded as well. Before the goats are sold to traders, the barangay agent orlocator assists the assembler wholesaler in locating and picking up the goat from the goat raiser’s houseor farm. The assembler-wholesaler transport the goats bought using a tricycle or a kolong kolong to atemporary holding pen located in their residence. Goats are generally butchered or slaughtered very

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early in the morning and done at home (residence) in most of the chains except in San Jose City wheregoats are slaughtered in government-owned abattoir.

The slaughtering process done at home (Tarlac City) as shown in Fig. 19 starts with stunningthe goat where the animal is held by two persons, head is pressed down, before the goat is hit at thecenter of the horn with an ordinary hammer or a big butchering bolo. Stunning makes the goat almostmotionless. After stunning, sticking is done where the goat is first hanged in a branch of a tree, then thepoint of the knife is sticked to the throat behind the jaw, blade pointing out. By a single outwardmovement, the jugular vein is cut, including the windpipe, gullet and fleece. Sticking is done for thoroughbleeding. After sticking, singeing is done using the blow torch method. The goat remains tied or hangedin a branch of a tree or any convenient hanger, where the hair is burned with a blow torch. Burning andscraping (using broom) of the hair is continued until the hairs in all parts are gone, leaving the skin intact.The goat is then removed from the hanger and put in a table where it is thoroughly washed with waterand the remaining hairs are removed or shaved using a dull knife. Dressing the goat follows where ahorizontal cut is made in the middle of the belly to remove the pouch and other internal organs of theanimal (Fig. 20). There are at least three major cuts derived from goat carcass such as the upper partwith the head, cut into two in the middle and the lower part with the leg, sliced in the middle. The feet,legs, neck and head minus the horn are also cut.

The slaughtering process done at home in Tarlac City, is almost similar in Nueva Ecija, exceptthat scalding is first done to remove the hairs using dull knife and then subjected to blow torch to removethe remaining hairs. Dressing in Nueva Ecija is different with that of Tarlac City, where a vertical cut ismade in the middle of the belly to remove the pouch and other internal organs of the animal. There areat least five cuts derived from goat carcass such as the leg, loin, rib, shoulder and the neck.

SLAUGHTERINGPROCESS, BLOWTORCH METHOD

Stunning(3min)

Sticking

(1min)

Singeing

(40 min)

Dressing

(20 min)

Fig. 19. Slaughtering process using the blow torch method, CHAIN 5 Tarlac City

DRESSING, HORIZONTAL CUTTING

Fig. 20. Dressing, horizontal cutting which is practiced in Tarlac City supply chain.

The slaughtering process in the abattoir as practiced in the San Jose City supply chain is seen inFig. 21. The process starts with stunning the goat where the animal is first tied to a post outside of the

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abattoir, then hit at the center of the horn with an ordinary hammer. After stunning, sticking is donewhere the goat is placed on top of a table on its side, the head is pressed down and the point of the knifeis sticked to the throat behind the jaw, blade pointing out. By a single outward movement, the jugular veinis cut, including the windpipe, gullet and fleece. After sticking and after thorough bleeding, the animal issubmerged into a big vat of hot water of about 55-88 degrees centigrade to loosen the hair. The hair isscraped with hand (as done by the experienced accredited butcher of the abattoir) or by the use of a dullknife. Singeing followed using an open fire method where the slaughtered goat is placed above the openfire and the burned hairs are scraped, after which the goat is thoroughly washed inside the abattoir.Dressing the goat follows where a vertical cut ( as practiced in Nueva Ecija) is made in the middle of thebelly to remove the pouch and other internal organs of the animal. There are at least five cuts derivedfrom goat carcass such as the leg, loin, rib, shoulder and the neck.

SLAUGHTERINGPROCESS,SCALDINGMETHOD

Stunning

1 min

Sticking

1 min

Scalding

9-10 min

Singeing

3-5 min

Dressing

5-7 min

Fig. 21. Slaughtering of goats in San Jose City abattoir, using scalding method

Floor dressing is practiced in the San Jose City abattoir as shown in Fig. 22. Vertical cutting indressing is practiced as seen in the same figure.

FLOOR DRESSING, VERTICAL CUTTING IN SAN JOSE ABATTOIR

Fig. 22. Floor dressing, vertical cutting being done in San Jose City abattoir

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After the slaughtering process, the carcass placed in open container is transported to the meatvendors located in the public markets, using a tricycle or kolong kolong (Fig. 23). The meat vendors owna stall in the market where individual customers and institutional buyers purchase their desired volume.The institutional buyers are generally the small carenderias and restaurants who cook chevon dishes forsale, such as caldereta, adobo, kilawen, papaitan, sinampalukan and kampukan.

The slaughtering process both done at home and in the slaughter house as well as the manner oftransporting goat meat to the public market renders meat quality standards, handling and hygienic andinspection requirements in question to the disadvantage of the end consumers. It was observed that themeat vendors are willing to buy the meat delivered to them without much worry about the process and thehygienic procedure undertaken. In the same manner that the end consumers buy the meat withoutknowledge of the same.

Supply Chain Performance Analysis

Fresh Chevon Supply Chain Revenues, Costs, Income and ROEs

Revenues received, costs incurred, net income by the fresh chevon supply chain players and therespective return on expenses (ROE), computed in kg basis is shown in Table 18. The highest revenuereceived from all the chain was in CHAIN 5 Tarlac City which totaled PhP1,217.50, while the lowestrevenue was obtained in CHAIN 3 Cabanatuan City totaling PhP812.50 from all the key players. Amongthe key players, the highest revenue was received by the institutional buyer as goat meat is convertedinto chevon dishes wherein 6 servings can be made out of the 1 kg meat and sold at a price ranging fromPhP60-80.00 per serving.

In terms of cost per kg, the highest incurred was by the institutional buyer as they cook goatmeat into dishes for sale. The highest cost incurred among the institutional buyers is in CHAIN 5amounting to PhP363.27 while the lowest cost is in CHAIN 1 amounting only to PhP285.93. The costconsists of expenses for ingredients, labor, rentals, water, electricity and packaging material. The lowestcost incurred considering all the supply chain players was among the goat raisers and CHAIN 2 reflectsthe lowest amounting to PhP55.56 which is indicative of the traditional way of raising goats by theraisers.

As to net income, the highest net income in CHAIN 1 was received by the assembler wholesaleramounting to PhP85.26 per kg, while the lowest was by the market vendor at only PhP26.64 per kg. Thegoat raiser managed to get a per kg net income of PhP41.25 which is higher than the income received bythe meat vendor.

Fig. 23 Goat meat placed in open container aretransported using tricycle or kolong kolong

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The assembler retailer in CHAIN 2 obtained the highest net income at PhP98.24 since hedirectly gets his slaughter goat from the goat raiser. When the slaughter goat is sourced from theassembler wholesaler, a net income of only PhP 78.02 per kg is generated. The lowest income wasreceived by the assembler wholesaler amounting only to PhP13.56 for every kg traded in CHAIN 2, whilethe goat raiser managed to generate a net income of PhP44.44 per kg.

In CHAIN 3 Cabanatuan City, the institutional buyer received the highest net income ofPhP159.26 for every kg dish cooked while the goat raiser from this chain received the lowest net incomeamounting to PhP30.63 for every kg live weight which is traded to assembler retailer. In CHAIN 4Camiling Tarlac, the highest net income was generated by the assembler wholesaler at PhP115.88. Themarket vendor on the other hand, received the lowest net income of only PhP19.20 per kg of chevonmeat. In CHAIN 5 Tarlac City, the institutional buyer generated the highest net income of PhP161.73for every kilo of cooked chevon dish while the lowest was generated by the assembler wholesaler atPhP6.36 only.

Among all the chain players, the highest ROE was obtained by the assembler wholesaler inCHAIN 4 at 1.11, while the lowest was received by the institutional buyer as well but in CHAIN 5 at 0.06ROE only.Table. 18 Fresh chevon supply chain revenue, costs, income and ROEs (kg)

PARTICULARSCHAIN 1

SCMCHAIN 2

SJCCHAIN 3Cab City

CHAIN 4Camiling

CHAIN 5Tarlac City

REVENUE (PhP)Goat Raiser 100.00 100.00 100.00 110.00 100.00Assembler Wholesaler 200.00 120.00 220.00 110.00Assembler Retailer (AW) 210.00Assembler Retailer (GR) 210.00 240.00Market Vendor/Retailer 230.00 230.00 250.00 240.00Institutional Buyer 360.00 360.00 480.00 406.00 525.00TOTAL REVENUES 892.50 1,002.00 812.50 988.50 1,217.50COSTS (PhP)Goat Raiser 58.75 55.56 69.37 64.90 64.90Assembler Wholesaler 114.74 106.44 104.12 103.64Assembler Retailer (AW) 131.98Assembler Retailer (GR) 111.76 122.19Market Vendor/Retailer 203.36 113.75 230.80 129.74Institutional Buyer 285.93 312.98 320.74 369.11 363.27TOTAL COSTS 662.98 718.88 504.26 769.13 783.94NET INCOME (PhP)Goat Raiser 41.25 44.44 30.63 44.53 44.53Assembler Wholesaler 85.26 13.56 115.88 6.36Assembler Retailer (AW) 78.02Assembler Retailer (GR) 98.24 117.81Market Vendor/Retailer 26.64 116.25 19.20 110.26Institutional Buyer 74.07 47.02 159.26 36.89 161.73TOTAL NET INCOME 229.52 283.12 308.24 218.80 442.99ROE (PhP)Goat Raiser 0.70 0.80 0.44 0.69 0.69

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Assembler Wholesaler 0.74 0.13 1.11 0.06Assembler Retailer (AW) 0.59Assembler Retailer (GR) 0.88 0.96Market Vendor/Retailer 0.13 1.02 0.08 0.85Institutional Buyer 0.26 0.15 0.50 0.10 0.45

Marketing Margin of Key Players in the Fresh Chevon Supply Chain

Table 19 summarizes the marketing and profit margins (carcass per kg) of the key players in thefresh chevon supply chain. In CHAIN 1, the institutional buyer got the highest marketing margin ofPhP130.00 compared to the assembler wholesaler at PhP100.00 and the market vendor with a margin ofonly PhP30.00. However, the profit margin obtained by assembler wholesaler (PhP 85.61) was higherthan that obtained by the institutional buyer (PhP 53.82) because of higher cost incurred in transforminggoat meat into chevon dishes. The 51.53% to total profit margin of the assembler wholesaler, indicates amore efficient assembler wholesaler compared to the other key players in CHAIN 1.

There are six key players in CHAIN 2 San Jose City and in this chain the assembler retailersourcing goats directly from the goat raiser performed more efficiently than the other key players.Although the institutional buyer obtained higher marketing margin at PhP150.00 compared to other keyplayers, the profit margin of Assembler Retailer-GR (PhP 98.73) was higher than that obtained by theinstitutional buyer (PhP63.84). This is due to higher marketing cost incurred by the institutional buyer inthe chain. On the other hand, the assembler wholesaler got the lowest marketing and profit marginsindicating the lowest efficiency in CHAIN 2.

There are only three key players in CHAIN 3 Cabanatuan City and as seen in Table 19, boththe marketing and profit margins obtained by the institutional buyer (PhP 250.00 and PhP 161.15,respectively) is higher than that obtained by the meat vendor (PhP 130.00 and PhP 119.35,respectively). Consequently, about 58.0% of the total profit margin is taken by the institutional buyer eventhough a higher marketing cost was incurred.

In case of CHAIN 4 Camiling Tarlac, the meat vendor sourcing goat directly from the raiseroperated more efficiently among the other key players. The meat vendor-GR derived a profit margin ofPhP135.88. Meanwhile, the meat vendor sourcing goat meat from the assembler wholesaler got thelowest marketing margin at PhP 30.00, gaining the lowest profit margin of PhP 25.12.

In CHAIN 5 Tarlac City, the institutional buyer achieved the highest marketing margin at PhP285.00 and profit margin of PhP163.67 despite incurring the highest marketing cost of PhP121.33compared to the other key players. On the other hand, the assembler wholesaler got the lowest marketingmargin and marketing cost, thus, the lowest efficiency.

Table 19. Marketing margin (carcass per kg) of key players in the fresh chevon supplychain

KEY PLAYERS BUYINGPRICE

SELLINGPRICE

MarketingMargin

MarketingCost

ProfitMargin

% ProfitMargin

CHAIN 1 SCIENCE CITY OF MUÑOZGoat Raiser (LW) 100.00Assembler Wholesaler 100.00 200.00 100.00 14.39 85.61 51.53Market Vendor/Retailer 200.00 230.00 30.00 3.28 26.72 16.08Institutional buyer 230.00 360.00 130.00 76.18 53.82 32.39Total 93.85 166.15 100.00CHAIN 2 SAN JOSE CITYGoat Raiser (LW) 100.00Assembler Wholesaler 100.00 120.00 20.00 6.44 13.56 4.07Assembler Retailer-AW 120.00 210.00 90.00 11.49 78.51 23.57Assembler Retailer-GR 100.00 210.00 110.00 11.27 98.73 29.64Meat Vendor –AW 120.00 210.00 90.00 11.49 78.51 23.57Institutional buyer 210.00 360.00 150.00 86.16 63.84 19.16Total 126.85 333.15 100

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CHAIN 3 CABANATUAN CITYGoat Raiser (LW) 100.00Meat Vendor 100.00 230.00 130.00 10.65 119.35 42.55Institutional Buyer 230.00 480.00 250.00 88.85 161.15 57.45Total 99.5 280.5 100CHAIN 4 CAMILING, TARLACGoat Raiser (LW) 110.00Assembler Wholesaler 110.00 220.00 110.00 4.12 105.88 35.86Meat Vendor –AW 220.00 250.00 30.00 4.88 25.12 8.51Meat Vendor –GR 110.00 250.00 140.00 4.12 135.88 46.02Institutional Buyer 250.00 406.00 156.00 127.6 28.40 9.62Total 140.72 295.28 100CHAIN 5 TARLAC CITYGoat Raiser (LW) 100.00Assembler Wholesaler 100.00 110.00 10.00 3.53 6.47 1.25Assembler Retailer – AW 110.00 240.00 130.00 11.17 118.83 22.91Assembler Retailer –GR 110.00 240.00 130.00 11.17 118.83 22.91Meat Vendor/Retailer -AW 110.00 240.00 130.00 19.19 110.81 21.37Institutional Buyer 240.00 525.00 285.00 121.33 163.67 31.56Total 166.39 518.61 100Legend:LW – Live WeightAW- AssemblerWholesalerGR - Goat RaiserMC- Marketing CostPM - Profit Margin

Gap Analysis, Fresh Chevon Supply Chain

A simple supply and demand analysis was done to determine the gap in the supply chain which isindicative of the unmet demand. As shown in Table 20, the yearly volume requirement in kg and numberof heads of goats is not satisfied in all the chains. A gap of 237 heads (4,745 kg) is apparent in CHAIN 1;256 heads (5,110 kg) in CHAIN 2; 636 heads (7,300 kg) in CHAIN 3; 217 heads (2,190kg) in CHAIN 4;374 heads (3,650 kg) in CHAIN 5. The total gap is 1,720 heads (22,995 kg) which is a welcomeopportunity to intensify goat production in the supply chain.

Table 20 . Gap analysis, fresh chevon supply chain

ITEM VOLUME (Kg and Head in a year)DEMAND SUPPLY GAP

CHAIN 1 – SCMkg 15,071 10,326 4,745Head 1,159 922 237

CHAIN 2 – SJCkg 20,748 15,637 5,110

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Head 1,507 1,251 256CHAIN 3 – Cab City

kg 52,997 45,697 7,300Head 2,845 2,209 636

CHAIN 4 – Camilingkg 23,940 21,750 2,190Head 1,684 1,467 217

CHAIN 5 – Tarlac Citykg 20,415 16,765 3,650Head 2,122 1,748 374

TOTALkg 133,171 110,175 22,995Head 9,317 7,597 1,720

External Influences

In view of the importance of goat raising in Central Luzon, several government institutions in theregion implemented R & D programs on goat to push for its development. The institutions includes:Central Luzon State University (CLSU), Pampanga Agricultural College (PAC), Tarlac College ofAgriculture (TCA), Ramon Magsaysay Technological University (RMTU), Bulacan Agricultural StateCollege (BASC), Aurora State College of Technology (ASCOT), and the Department of AgricultureRegional Field Unit III (DA-RFU3). Based on the research conducted by Orden, Porciuncula, Carbonel,et.al (2010), investment in goat R & D in the region totaled PhP 44.49 million since 1992 until 2009. As of2009, the report also indicated that 69 R & D projects on goat were implemented in the region classifiedas research or development. Research projects constituted 67.0% undertaken in the following field:genetic improvement (19.0%), feed and nutrition (27.0%), health and diseases (12.0%), socio-economics(6.0%), and biotechnology (3.0%). Development represents 33.0% which pertains to either extensionprojects or applied researches aimed to promote goat technologies. It was stated in the same researchthat the goat R and D efforts in the region were generally productive. Relevant knowledge, informationand technologies have been generated to include complete or partial confinement, MPTS, concentrateand UMMB supplementation, use of tree leaves with anthelmintic properties, genetic improvement,controlled breeding, selection and AI. A number of these technologies are being adopted by somebackyard and commercial goat raisers.

Moreover, the same research indicated that through the years, the involved institutions in theregion continue to conduct R and D on goats, generating technologies and providing expertise andagency fund in doing R &D works with the end view of promoting goat farming as a viable enterprise. It isimportant to note, the significant contribution of PCARRD, DA and its attached agencies, other local,national and international institutions in the region which is quite evident as found out in the same study,with PCARRD and DA as largely responsible in providing funding assistance. Moreover, the local,provincial, and regional government units provide complementary efforts and support in goat R and D inthe region, reflecting interagency commitment and support; and networking to facilitate development andtransfer of knowledge and technologies.

Logistic Issues/Concerns

A. Supply/Sourcing/Pricing

1. Insufficient supply of goats for slaughter resulting to unmet demand. The estimated yearlyvolume requirement in kg and number of heads of goats is not satisfied in all the chains. Thetotal gap is 1,720 heads (22,995 kg) which is a welcome opportunity to intensify goatproduction in the supply chain.

2. Difficulty in sourcing supply of goats. Most goats are sourced in distant, mountainous areasand more often with bad road condition which entails higher transportation cost. Moreover,the mode of transport appropriate for the terrain and road condition is through tricycle and orkolong kolong which generally are not efficient, with 3-4 heads of goats transported at a time.

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3. Native breed of goats are generally raised by the goat raisers indicating traditional use oftechnologies (tethering and freely grazing). Feeding of goats is thus largely dependent onavailable shrubs, grasses and leaves in the grazing land which defines the growth of goatsand kids. The weight of goats generally traded in the supply chain is 15-20 kg at 8-10months old. Supplementary feeding of grains or mineral mixtures is not practiced which couldhave enhanced digestibility and nutrient availability from existing feed resources. Related tograzing, goat raisers in Digdig, Nueva Ecija and Rangayan, Science City of Munoz,NuevaEcija faced limiting grazing area due to the enforcement of a barangay ordinance, banninggrazing of goats in other areas which is not the raisers owned land.

4. Determination of the selling price of goat is generally based on ocular judgement of thelocator and the assembler wholesaler, which may not be accurate and may provedisadvantageous to goat raisers.

5. Relatively high price of goat meat as indicated by the consumers. The average price thatconsumers are willing to pay in the supply chains except in San Jose City is lower than theprevailing market price of goat meat. This indicates the desire of consumers for a lowerpriced goat meat.

B. Product Handling and Hygienic and Inspection Requirements

1. The slaughtering process both done at home and in the slaughter house as well as the mannerof transporting goat meat to the public market renders meat quality standards, handling andhygienic and inspection requirements in question to the disadvantage of the end consumers. Itwas observed that the meat vendors are willing to buy the meat delivered to them withoutmuch worry about the process and the hygienic procedure undertaken. In the same mannerthat the end consumers buy the meat without knowledge of the same.

2. While the goat meat products in San Jose City is accompanied by meat and meat productinspection certificate, actual meat inspection and monitoring by meat inspector is absent(as observed during the project team visit) during slaughtering, meat handling and transportwhich is not in consonance with the provisions of R.A. 9296 (An act strengthening meatinspection system in the country) and A.O. No. 22 of the Department of Agriculture series of2010.

3. In all the supply chains, fresh chevon meat is displayed and sold as it is and not sealed inprimary packaging and not kept in sanitary containers (made of appropriate materialspreferable stainless steel or food grade plastic) which the consumers are willing to buydespite the provision as stipulated again in R.A. 9296 and A.O. No. 22 of the Department ofAgriculture series of 2010.

SUMMARY AND CONCLUSIONS

Chevon or goat meat is one of the seven selected TechnoMart products to be covered by thePinoy S&T Services for Farmers and Entrepreneurs (PSF) Program. In 2010, goat production grew by1.38% (BAS 2010) which was mainly driven by the sustained demand for chevon. This research aimed toassess the supply chain of fresh chevon in Central Luzon and to identify the areas for improvement.

Selected as the study locations are Nueva Ecija and Tarlac, on the basis of chevon being soldon a daily basis, volume and goat population. Based on 2002-2011 BAS data, Tarlac and Nueva Ecijaranked first and second, respectively in terms of goat population. A total of 108 respondents composed ofthe key players in the supply chain were interviewed to gather the necessary data coupled with keyinformants interview. Supply chain mapping was done and set of indicators were used to determine theperformance of the identified supply chains.

Similar to the trend at the national level, goat production in Central Luzon remains to be backyardin nature registering an average growth rate of 0.37% (2002-2011 data). A high 12.33% in commercialgoat production was noted in the region, the highest among the top five producing regions (2002-2011

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data). Tarlac had the highest percent contribution of 37.99% (106,269 heads) with regards to the averagegoat inventory in the region with Nueva Ecija in second place, contributing 27.64% (77,324 heads).

The average yearly farm gate prices of live goats per kg, both at the Philippines and CentralLuzon showed a little over 1.0% change over time (2002-2011 data), indicating a rather stable farm gateprices through the years.

The growth of goat production in the country is sustained by the demand for chevon. The supplyof chevon consistently increased from 2002-2010 in the same manner that the per capita consumption forgoat carcass ( from 0.32 kg in 2002 to 0.44 kg in 2010) and offals (from 0.10kg to 0.14kg in 2012) alsoincreased. These figures however, remain far from the per capita consumption of pork and beef (2009)recorded at 14.87 kg and 4.0 kg, respectively.Three fresh chevon supply chains from Nueva Ecija (CHAIN 1 Science City of Munoz; CHAIN 2 San JoseCity and CHAIN 3 Cabanatuan City) and two from Tarlac (CHAIN 4 Camiling and CHAIN 5 Tarlac City)were identified and assessed. Goat meat has finally found its way in the market supplied by traders,sourcing slaughter goats from goat raisers which are generally located distant from the demand centers.

The supply chain for fresh chevon is simple and generally participated in by key players whichinclude the goat raiser, barangay agent or locator, assembler wholesaler, meat vendor/retailer,institutional buyer and individual costumer. The supply chain generally follows a traditional supply chainwhere wet markets remain as the major destination of fresh chevon and continue to play a significant roleas a primary retailer for the end consumers. Frozen chevon was found to be sold in CVC in San JoseCity only, and in very small quantity which indicates that placing chevon on the shelves of supermarketsand meat shops is yet to be realized.

The quality of fresh chevon as required by the key customers (meat vendor/retailer, institutionalbuyer and individual customer) in all the supply chains are generally met by the other key players. Thecommon quality requirements of the individual customer and the institutional buyer (small restaurantsand carenderias) in the supply chains are meatiness, freshness, free from odor and diseases. The age(young) and native breed of goat as exemplified in CHAIN 1 Science City of Munoz, are met as thegenerally traded slaughter goats are of marketable age of 8-10 months with liveweight ranging from 15-20 kg. The chevon dishes prepared by the institutional buyer and individual costumer are generallysimilar as they cook caldereta, papaitan, sampalokan, adobo, kampukan and asado.

The individual consumers interviewed indicated that they purchase fresh chevon because goatmeat are tasty and more delicious (31.0%), nutritious and healthy as goat feeds on grass (29.0%); fresh(29.0%), with less cholesterol/fat (25.0%) and family favorite (24.0%). Other reasons cited in purchasingfresh chevon were such that various dishes can be prepared, sure quality, no foul smell, meaty, delicacy,do not eat pork and for business. The reasons cited point to the fact that goat meat offers variousadvantages and can be a very good source of protein for other meat such as pork and beef with lessercholesterol and fat. Lesser fat and cholesterol means a healthier red meat for consumers who arebecoming more and more health conscious nowadays.

As to price paid, results showed that not all of the individual consumers interviewed are willing topay higher price for carcass as indicated by the range of prices and the average price they are willing topay, with the exception of consumers in CHAIN 2 (San Jose City) wherein the average price they arewilling to pay at PhP 222.00 per kg is higher than the prevailing market price of PhP210.00. The averageprice that consumers are willing to pay in CHAIN 1 is PhP 213.00 which is lower than the prevailingprice of PhP230.00 per kg; PhP 207.00 in CHAIN 3 which is also lower than the prevailing price ofPhP230.00; PhP 208.00 viz a viz a much higher market price of PhP250.00 in CHAIN 4; and PhP210.00 average price willing to pay in CHAIN 5 which is lower than the PhP240.00 prevailing marketprice. This indicates the desire of consumers for a lower priced goat meat.

With regards to satisfying the delivery schedule and volume requirement, the suppliers of goatmeat regularly observe the delivery schedule which is as early as 1:00 AM in CHAIN 3 Cabanatuan Cityand the latest is 6:00 AM in CHAIN 1 Science City of Munoz. The simple supply and demand analysisshowed a gap in the volume requirement which is indicative of unmet demand in all the supply chains.The total gap is 1,720 heads (22,995 kg) in a year which is a welcome opportunity to intensify goatproduction in the supply chain.

The general product flow of fresh chevon in all the supply chains is from the goat raiser to thebarangay agent (BA)/locator to assembler-wholesaler (AW) or from the goat raiser directly to the AW thento the market vendor/retailer (MV/R) and finally to the institutional buyer and individual customer.Payment transactions in all the supply chains are done through cash basis and or credit. The meat

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vendor/retailer pays the AW in the afternoon or the following day of delivery of the AW. The payment toAW who delivers goat carcass directly to the institutional buyer is paid 3-4 days after delivery at thesame selling price given to MV/R. It is good to note that the barangay agent/locator is paid a commissionof PhP 50.00 per head for his services in locating goats for sale.

The exchange of information between and among the supply chain members in all the chains issimilar which is done face to face and through the use of mobile phones. The information about sources,availability and volume of goats for sale generally emanate from the barangay agent who has directcontact with the goat raisers. Information on sources, volume, prices and availability as well as deliveryschedules were the major information requirements of the chain members. Information on demand andproduct requirements emanate from the key customers such as the individual customers and institutionalbuyers which is exchanged face to face and through text messaging.

Various activities are performed as chevon moves along the entire supply chain. Most of the goatproducers raise native breeds of goats and house them in temporary sheds. Natural breeding ispracticed and both tethering and free grazing are also practiced. The slaughter goats are being sold bythe goat raisers when the animals are generally 8-10 months old, with weights ranging from 15-20 kg perhead, indicative of native goats being traded in the supply chain. Upgraded goats which are generally culland with some acquired infirmities (crippled) are however, reported to be traded as well. Before thegoats are sold to traders, the barangay agent or locator assists the assembler wholesaler in locating andpicking up the goat from the goat raiser’s house or farm. The assembler-wholesaler transport the goatsbought using a tricycle or a kolong kolong to a temporary holding pen located in their residence. Goatsare generally butchered or slaughtered very early in the morning and done at home (residence) in most ofthe chains except in San Jose City where goats are slaughtered in government-owned abattoir. Thereare at least five cuts derived from goat carcass such as the leg, loin, rib, shoulder and the neck. Afterthe slaughtering process, the carcass placed in open container is transported to the meat vendorslocated in the public markets, using a tricycle or kolong kolong.

As to external influences, several government institutions in the region implemented R & Dprograms on goat to push for its development and in recognition of its importance in the region. Theinstitutions includes: Central Luzon State University (CLSU), Pampanga Agricultural College (PAC),Tarlac College of Agriculture (TCA), Ramon Magsaysay Technological University (RMTU), BulacanAgricultural State College (BASC), Aurora State College of Technology (ASCOT), and the Department ofAgriculture Regional Field Unit III (DA-RFU3). Based on the research conducted by Orden, Porciuncula,Carbonel, et.al (2010), investment in goat R & D in the region totaled PhP 44.49 million since 1992 until2009. PCARRD and the Department of Agriculture are largely responsible in providing direction andfunding support.

While acceptable net income, return on expenses and marketing/profit margin were generated inthe supply chain, there are several logistical issues and concerns which denotes some degree ofinefficiencies in the supply chain of fresh chevon. These include the insufficient supply of goats forslaughter resulting to unmet demand; difficulty in sourcing supply of goats; traditional use of technologiesin raising goats with the attendant concern on limiting grazing area; ocular judgement in the determinationof the selling price of live goat, which may not be accurate and may prove disadvantageous to goatraisers; and the relatively high price of goat meat as indicated by the consumers. Added to these, are theissues and concerns on product handling and hygienic and inspection requirements with particularreference to the slaughtering process both done at residence and in the slaughter house, as well as themanner of transporting goat meat to the public market which renders meat quality standards, handlingand hygienic and inspection requirements in question, to the disadvantage of the end consumers.

RECOMMENDATIONS

The identified issues and concerns should be addressed holistically taking stock of improvinggoat production system and the other activities and processes in the entire supply chain with importantfocus on sourcing, pricing, product handling and hygiene.

The establishment of strategically located community-based goat production enterprise forslaughter is recommended that will entail clustering of existing goat raisers willing to be capacitated toenhance their skills and practices in accordance with improved management system andneeds/requirement of the market. The strategic location of the community-based production enterprise isintended to bring the source of goats near the market. Goat production in the community shall be treated

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as an enterprise, capacitating the producers with relevant management and entrepreneurship abilitieswith the end view of producers managing their own agribusiness with further attention in acquiringknowledge on market assessment, opportunity identification and evaluation, simple financial planning,value adding and marketing. The goat raisers shall be encouraged to farm and make a business out ofgoats and not just to keep them as a security asset. Moreover, the producers will be the one directlyresponsible in linking with the market to avoid inefficiencies as a result of too many players in the supplychain. They shall also be empowered to push for standardized price determination of live goats that iscertainly not based on ocular judgement but on accepted measures.

Building capacities of the other supply chain members is also recommended in order to enhancetheir skills and abilities to meaningfully participate in the entire supply chain with particular attention onproper slaughtering and handling of goat meat products as well as the value adding activities that can bemade as potential business.

In areas in the supply chain where abattoirs are present, it is recommended that such shall bededicated as well in the slaughter of goats and that the observance of proper slaughtering, handling andcertification procedures should be enforced so as not to compromise meat quality and food safety to thebest interest of the buying public. The same is true with regards to the observance of acceptable handlingof goat meat in the public wet markets where it is traded.

Further development of the local market both for frozen and fresh chevon should be given dueattention through effective supply chain organization and management with the inclusion of a consumersawareness campaign that will highlight the benefits derived from goat meat consumption. The campaignshall be addressed to the whole family members in the hope of encouraging them to eat chevon as adaily source of protein and as a healthy food, creating a niche in the market. An increase in consumptionwill increase demand as well as the volume of transactions which may profitably benefit not only theproducers but the other members of the supply chain as well.

REFERENCES

Brown, E.O. and Aranas, M.B.D. “ Definition and Importance” and Supply Chain ManagementMethodology.” Exploring the Opportunities Towards Competitiveness: Supply ChainImprovement in Selected Commodities in AFNR (Phase1). Ed. Brown, E.O., Aquino, A.P., andCardenas, D.C. Los baños, Laguna:PCARRD-DOST, 2011. 268p. – (Book Series No.183/2011).

Bureau of Agricultural Statistics. Countrystat Philippines. Retrieved from http://country.bas.gov.ph/December 9, 2011.

Cagayan Valley Agriculture and Resources Research and Development Consortium (CVARRD).Consolidated Science and Technology Agenda for Agriculture, Forestry, and Natural Resources,CY 2011-2016.

Central Visayas-Consortium for Integrated Regional Research and Development (CV-CIRRD).Integrated S&T Agenda in Agriculture, Forestry, and Natural Resources, CY 2011-2016.

Cruz, E.M. M.E.M Orden, et.al. 2010. “Terminal Report. National Goat Performance in Region III”.Central Luzon State University, Science City of Munoz, Nueva Ecija.

Highland Agriculture and Resources Research and Development Consortium (HARRDEC). RegionalS&T Agenda in Agriculture, Forestry, and Natural Resources, CY 2011-2016.

Ibarra, P.I. and F.C. Argañosa, 1983. Unpublished data extracted from Goat Production andEntrepreneurship Training Manual. 2011. Central Luzon State University, Science City of Munoz,Nueva Ecija.

Inflation Rate Retrieved from, http://inflationdata.com/Inflation/Inflation_Rate/CurrentInflation.asp . May21, 2012

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Malabanan, M. 1976. Extracted from Goat Production and Entrepreneurship Training Manual 2011.Central Luzon State University, Science City of Munoz, Nueva Ecija.

Northern Mindanao Consortium for Agriculture and Resources Research and Development(NOMCARRD). Proposed Regional Science and Technology Agenda (STA) for 2011-2016.

Orden M.A.M, Jamandre W.E., Brown E.O., Orden E.A., Cruz E.M.; Alo A.M.P and Villar E.C. 2005.“Traders’ Preference for Goat Characteristics in Selected Markets of Pangasinan, Philippines”.Animal Science Journal 76, pp. 179-185.

Orden, M.E.M, F.L. Porciuncula, N.R. Carbonel, and E.M. Valiente. 2009. Terminal Report. “TechnologyTransfer on Goat: An Assessment of its Socio-Economic Contribution to Goat Farming in CentralLuzon. Central Luzon State University, Science City of Munoz, Nueva Ecija.

Socio-Economic Research Division-PCARRD. Annual Report 2009.

Socio-Economic Research Division-PCARRD. Annual Report 2010.

Socio-Economic Research Division-PCARRD. Annual Report 2011.

Southern Mindanao Agriculture and Resources Research and Development Consortium (SMARRDEC).Regional Science and Technology Agenda (STA), 2011-2016

Visayas Consortium for Agriculture and Resources Program (VICARP), VICARP S&T Agenda 2011-2016.

Western Visayas Agriculture and Resources Research and Development Consortium (WESVARRDEC).WESVARRDEC Science and Technology Agenda 2011-2016.