Supply chain analysis of almaciga (Agathis philippinensis Warb.) resin in Governor Generoso, Davao Oriental, Philippines

Kharmina Evangelista; Canesio Predo; Rogelio Andrada; Analyn Codilan; Vanessa Palma-Torres; Lawrence Amada; Margaret Calderon

Kharmina Paola A. Evangelista Institute of Renewable Natural Resources, College of Forestry and Natural Resources, University of the Philippines Los Baños
Canesio D. Predo Institute of Renewable Natural Resources, College of Forestry and Natural Resources, University of the Philippines Los Baños
Rogelio T. Andrada II Institute of Renewable Natural Resources, College of Forestry and Natural Resources, University of the Philippines Los Baños
Analyn L. Codilan Institute of Renewable Natural Resources, College of Forestry and Natural Resources, University of the Philippines Los Baños
Vanessa M. Palma-Torres Institute of Renewable Natural Resources, College of Forestry and Natural Resources, University of the Philippines Los Baños
Lawrence Adolph M. Amada Institute of Renewable Natural Resources, College of Forestry and Natural Resources, University of the Philippines Los Baños
Margaret M. Calderon Institute of Renewable Natural Resources, College of Forestry and Natural Resources, University of the Philippines Los Baños

Keywords: forest-based livelihood, Manila copal, market inefficiencies, non-timber forest product, resin tappers

Abstract

The potential of almaciga resin as a source of livelihood for several indigenous communities in the Philippines continues to grow as the demand for processed resin escalates. Almaciga resin is utilized mainly by local industrial manufacturers of paints, varnishes, lacquer, and ink. While reports have shown steady growth in the paints and varnish industry, many resin producers in the country remain poor and dependent on agriculture as their primary source of income. Davao Oriental is among the regions in the country where almaciga trees are abundant. This paper examined the supply chain of almaciga resin in Governor Generoso in Davao Oriental, Philippines, to determine inefficiencies along the chain and provide recommendations to improve the lives of the indigenous communities through resin tapping. Resin tappers belonging to the Lumad Almaciga Tappers Association of Governor Generoso (LATAGG), a group of indigenous peoples granted permits to harvest almaciga resin, were interviewed. From there, the rest of the supply chain actors were traced. The supply chain of almaciga resin in Governor Generoso is simple and organized, with four key actors: the resin tapper, local buyer, assembler, and an industrial buyer in Cebu. Each actor performs specific activities. An analysis of the price and profit margins of these actors revealed that the resin tappers incurred a negative profit margin of 42% at the current price of US$ 0.39 kg-1 and a negative price margin of US$ 0.17 kg-1 if the opportunity cost of time is added to the material cost. Market inefficiencies included (1) the undervaluation and underpricing of the almaciga resin as the lone buyer has set the price and (2) market information asymmetry, putting the resin tappers at a losing end as they have little idea about the value of their products beyond the price paid.