Agricultural marketing

As 21st century continues to flow, our economy faces numerous changes and challenges particularly in the sector of Agriculture. Climate change is one of the reasons on the change of production of goods for the consumers. For example, in January 12, 2021, 11.2 degrees celsius was the recorded temperature in the city of Baguio that caused frost and covered vegetables in Atok, Benguet. Another natural phenomena that disrupts crop production are El Niño that creates water shortages and La Niña causing water abundance including flooding. Water shortages reduce crop planting areas, delay planting seasons and generally lower crop yields. Just like what happened since 2015, more than 40 percent of the Philippines experiencing severe drought triggered ny El Niño, causing the loss of agriculture production amounting 3.9 billion pesos (82million US dollars) .

Weather is not the only factor that affects the agricultural marketing. We can also say that this pandemic brought a huge impact to crop industry's movement. On the second quarter of 2020 the movement of crops and goods from suppliers from different provinces was stopped due to border lockdowns . The price of tomatoes dropped dramatically to only P2 to P5 per kilo from previous P15 to P30 due to lack of buyers after the supply chain was affected by Covid-19 pandemic in June, 2020.

In today's generation we always connect Global warming and climate change on these consistent events affecting agricultural marketing. It's not new to us to see bunch of vegetables covered with ice and a dried farmland with dead crops. Let us not deny that even man made situations such as Pandemics can affect the services of agricultural marketing like planning, organizing, directing and handling of agricultural produce. This is the reality that we must accept. These are not just the problems that we might face along the way.

Acceptance is one of the first thing that we should have. Accept that this is the consequence of the irresponsible human activities that makes us suffer nowadays. But let us also be courageous and strong. Let's be brave enough to discover more and end these challenges in our food production. Be one of the reasons on making new platforms in upgrading the quality of food that we all deserve.

Agriculture remains of crucial importance in the Philippine economy, albeit its relative contribution to gross domestic product (GDP) has been declining over the years (E.O. Brown et al, 2018). The government plays a great role in maintaining balance in the said sector for they are the authority controling it's price range. One of it's ways to control this is the price ceiling.

It is a maximum price that government imposes in order to keep the price of "some" necessary good or service affordable. To be particular, if the market suppliers and sellers imposes a higher price to a certain product, the are the ones who go in the middle to settle it.

On the month of February 2021, Duterte released an executive order mandating a price ceiling on pork and chicken. The president mandated this because pork price soared because too many people in the supply chain want a cut. For example, middleman gets pork straight from the pig farm at Php 230 per kilo. Then, they seek a Php 40-cut so they deliver to public markets at a wholesale price of Php 270 to Php 280. So, retailers pencil in a aprofit margin of at least Php 50, bumping up the price to Php 330 a kilo and exceeding Duterte's price cap of Php 270 to Php 300 per kilo. A lot of aspects affect the meat price in the Philippines ever since the Pandemic started.

Since July 25, 2019, Department of agriculture confirmed 20 ASF outbreaks in 4 provinces/city on Luzon island and 20,000 pigs have been culled.

Price ceiling

Price ceiling made a remark in every suppliers, middleman, resellers, retailers and consumers for it controls the movement of market equilibrium. It creates a minimum movement and control to the meat circulation in the country. Knowing that there are more effective and efficient ways to lower down the price, still they imposed this mandate. Price ceiling is not just the only way. It is anti-poor and an inconsiderate type of action. The government must create and think more ways of controling the meat production in the Philippines like giving farmers and hog raisers new piglets and affordable feeds. Also they can move the hogs directly from other provinces to the middleman or sellers to lessen their price cut. As price ceiling continues, the market shakes. Nobody should stop a continuous flow for it might get broken. The market is like a river that flows endlessly. If it is stopped, the water might overflow or gets dry. Price ceiling is not applicable in all situation and the government must know it.