IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v33y2008i5p455-463.html
   My bibliography  Save this article

Rice marketing systems in the Philippines and Thailand: Do large numbers of competitive traders ensure good performance?

Author

Listed:
  • Dawe, David C.
  • Moya, Piedad F.
  • Casiwan, Cheryll B.
  • Cabling, Jesusa M.

Abstract

Rice marketing margins are substantially greater in the Philippines than in Thailand despite many similarities between the two systems and despite the fact that Philippine rice marketing has a competitive structure. We found that rice marketing costs in the Philippines are higher than in Thailand mainly due to higher interest rates in the financial system. Other fundamental factors that also result in higher costs include endowments of water and land, rice price and trade policy, road quality and lack of non-farm job growth. However, the greater costs can only account for about a fourth of the difference in gross margins, implying much higher returns to management in the Philippines despite similar levels of risk and no evidence of collusion. The "excess profits" in the Philippine marketing system suggest there is much to learn about how developing country commodity markets with competitive structures function in actual practice.

Suggested Citation

  • Dawe, David C. & Moya, Piedad F. & Casiwan, Cheryll B. & Cabling, Jesusa M., 2008. "Rice marketing systems in the Philippines and Thailand: Do large numbers of competitive traders ensure good performance?," Food Policy, Elsevier, vol. 33(5), pages 455-463, October.
    • Handle: RePEc:eee:jfpoli:v:33:y:2008:i:5:p:455-463
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306-9192(08)00017-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. A. Banerji & J.V. Meenakshi, 2004. "Buyer Collusion and Efficiency of Government Intervention in Wheat Markets in Northern India: An Asymmetric Structural Auctions Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 236-253.
    2. World Bank, 2007. "World Development Indicators 2007," World Bank Publications - Books, The World Bank Group, number 8150.
    3. Hayami, Y. & Kikuchi, M. & Marciano, E. B., 1999. "Middlemen and peasants in rice marketing in the Philippines," Agricultural Economics, Blackwell, vol. 20(2), pages 79-93, March.
    4. Ruttan, Vernon W, 1969. "Agricultural Product and Factor Markets in Southeast Asia," Economic Development and Cultural Change, University of Chicago Press, vol. 17(4), pages 501-519, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Minten, Bart & Reardon, Thomas & Vandeplas, Anneleen, 2009. "Linking urban consumers and rural farmers in India: A comparison of traditional and modern food supply chains," IFPRI discussion papers 883, International Food Policy Research Institute (IFPRI).
    2. Arnold H. Fang, 2016. "Linkage between Rural Voters and Politicians: Effects on Rice Policies in the Philippines and Thailand," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 3(3), pages 505-517, September.
    3. Bart Minten & Seneshaw Tamru & Ermias Engida & Tadesse Kuma, 2016. "Feeding Africa's Cities: The Case of the Supply Chain of Teff to Addis Ababa," Economic Development and Cultural Change, University of Chicago Press, vol. 64(2), pages 265-297.
    4. Minten, Bart & Engida, Ermias & Tamru, Seneshaw, 2016. "How big are post-harvest losses in Ethiopia? Evidence from teff," ESSP working papers 93, International Food Policy Research Institute (IFPRI).
    5. Kaittisak Kumse & Nobuhiro Suzuki & Takeshi Sato, 2020. "Does oligopsony power matter in price support policy design? Empirical evidence from the Thai Jasmine rice market," Agricultural Economics, International Association of Agricultural Economists, vol. 51(3), pages 373-385, May.
    6. Maligalig, R. & Umbeger, W. & Demont, M. & Peralta, A., 2018. "Farmer preferences for rice varietal trait improvements in Nueva Ecija, Philippines: A latent class cluster approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277476, International Association of Agricultural Economists.
    7. Briones, Roehlano M. & Dela Pena, Beulah, 2015. "Competition Reform in the Philippine Rice Sector," Discussion Papers DP 2015-04, Philippine Institute for Development Studies.
    8. Minten, Bart J. & Legesse, Ermias & Beyene, Seneshaw & Werako, Tadesse, 2015. "Feeding Africa's cities: The case of the Supply Chain of Teff to Addis Ababa," 2015 Conference, August 9-14, 2015, Milan, Italy 212465, International Association of Agricultural Economists.
    9. Cuevas, Agham C., 2019. "The Effect of NFA Buffer Stocks on the Retail Price of Rice in the Philippines," Journal of Economics, Management & Agricultural Development, Journal of Economics, Management & Agricultural Development (JEMAD), vol. 5(1), June.
    10. Minten, Bart & Tamru, Seneshaw & Legesse, Ermias Engida & Kuma, Tadesse, 2018. "Supply chain from production areas to Addis Ababa," IFPRI book chapters, in: The economics of teff: Exploring Ethiopia’s biggest cash crop, chapter 11, pages 263-298, International Food Policy Research Institute (IFPRI).
    11. Beltran, Jesusa C. & Pannell, David J. & Doole, Graeme J. & White, Benedict, 2012. "Economic analysis of integrated weed management strategies for annual barnyardgrass (Echinochloa crus-galli complex) in Philippine rice farming systems," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124236, Australian Agricultural and Resource Economics Society.
    12. Minten, Bart & Tamru, Seneshaw & Engida, Ermias & Kuma, Tadesse, 2013. "Using Evidence in Unraveling Food Supply Chains in Ethiopia: The Supply Chain of Teff from Major Production Areas to Addis Ababa," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 159706, African Association of Agricultural Economists (AAAE).
    13. Minten, Bart & Tamru, Seneshaw & Engida, Ermias & Kuma, Tadesse, 2013. "Using evidence in unraveling food supply chains in Ethiopia: The supply chain of teff from major production areas to Addis Ababa:," ESSP working papers 54, International Food Policy Research Institute (IFPRI).
    14. Jolejole-Foreman, Maria Christina & Mallory, Mindy L., 2011. "Analyzing Market Price Transmission, Government Intervention and Weather Shocks for Rice Market in the Philippines," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103163, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:lic:licosd:28811 is not listed on IDEAS
    2. Kaittisak Kumse & Nobuhiro Suzuki & Takeshi Sato, 2020. "Does oligopsony power matter in price support policy design? Empirical evidence from the Thai Jasmine rice market," Agricultural Economics, International Association of Agricultural Economists, vol. 51(3), pages 373-385, May.
    3. Tiongco, Marites & Dawe, David, 2002. "Long-term Evolution of Productivity in a Sample of Philippine Rice Farms: Implications for Sustainability and Future Research," World Development, Elsevier, vol. 30(5), pages 891-898, May.
    4. Karen Eggleston & Robert Jensen & Richard Zeckhauser, 2002. "Information and Communication Technologies, Markets and Economic Development," Discussion Papers Series, Department of Economics, Tufts University 0203, Department of Economics, Tufts University.
    5. Engelhardt, Sebastian v. & Freytag, Andreas, 2013. "Institutions, culture, and open source," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 90-110.
    6. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers WR-587, RAND Corporation.
    7. Ricardo A. Lopez, 2007. "Exports and Productivity – Comparable Evidence for 14 Countries," CAEPR Working Papers 2007-028, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    8. Fofack, Hippolyte, 2008. "Technology trap and poverty trap in Sub-Saharan Africa," Policy Research Working Paper Series 4582, The World Bank.
    9. Oya Celasun & Philipp Harms, 2011. "Boon Or Burden? The Effect Of Private Sector Debt On The Risk Of Sovereign Default In Developing Countries," Economic Inquiry, Western Economic Association International, vol. 49(1), pages 70-88, January.
    10. Edsel Beja Jr., 2007. "The Tenth Anniversary of the Asian Financial Crisis: A Retrospective on East Asian Economic Performance," Challenge, Taylor & Francis Journals, vol. 50(5), pages 57-72.
    11. Gerring, John & Thacker, Strom C. & Lu, Yuan & Huang, Wei, 2015. "Does Diversity Impair Human Development? A Multi-Level Test of the Diversity Debit Hypothesis," World Development, Elsevier, vol. 66(C), pages 166-188.
    12. Diego A. Comin & Bart Hobijn, 2009. "The CHAT Dataset," Harvard Business School Working Papers 10-035, Harvard Business School.
    13. World Bank, 2015. "Republic of Yemen," World Bank Publications - Reports 23660, The World Bank Group.
    14. Dalila Nicet-Chenaf & Eric Rougier, 2009. "Human capital and structural change: how do they interact with each others in growth," Post-Print hal-00798441, HAL.
    15. Jo Thori Lind & Karl Moene, 2011. "Miserly Developments," Journal of Development Studies, Taylor & Francis Journals, vol. 47(9), pages 1332-1352, June.
    16. repec:ebl:ecbull:v:17:y:2008:i:22:p:1-11 is not listed on IDEAS
    17. Kenneth Harttgen & Stephan Klasen, 2010. "Fragility and MDG Progress: How useful is the Fragility Concept?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 41, Courant Research Centre PEG.
    18. Matthew A. Cole & Robert J.R. Elliott & Jing Zhang, 2011. "Growth, Foreign Direct Investment, And The Environment: Evidence From Chinese Cities," Journal of Regional Science, Wiley Blackwell, vol. 51(1), pages 121-138, February.
    19. Adalgiso Amendola & Joshy Easaw & Antonio Savoia, 2013. "Inequality in developing economies: the role of institutional development," Public Choice, Springer, vol. 155(1), pages 43-60, April.
    20. Spriggs, John, 1976. "Benefit-Cost Analysis Of Surfaced Roads In The Eastern Rice Region Of India," Staff Papers 13361, University of Minnesota, Department of Applied Economics.
    21. Diego E. Vacaflores, 2011. "Was Latin America Correct In Relying In Foreign Direct Investment To Improve Employment Rates?," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(2).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:33:y:2008:i:5:p:455-463. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.