Economic appraisal and strategic analysis of the onion industry in the Philippines

Abstract

This research undertakes a comprehensive evaluation of the economic dynamics within the onion industry, concentrating specifically on the prolific "Onion Basket of the Philippines" and its extension throughout Southeast Asia. Employing the value chain model as a methodological scaffold, the study meticulously dissects the intricate fabric of activities within this sector, aiming to pinpoint the exact operations that confer amplified value and competitive edge to this agricultural commodity. Through a meticulous selection process encompassing 360 agrarian participants, primarily sourced from the preeminent onion-producing municipalities of Nueva Ecija—namely, Bongabon, Gabaldon, and Laur—this investigation orchestrates an exhaustive scrutiny of the financial implications and returns. By comparing analyses across both traditional post-harvest marketing and the integration of cold storage infrastructure, the study unveils pronounced differentials. Evidently, the incorporation of cold storage resources precipitates substantial revenue escalation for farmers, in stark contrast to immediate post-harvest sales. However, the accompanying capital outlay affiliated with cold storage mandates judicious deliberation. Given the considerable financial connotations, this research underscores the imperativeness of establishing rigorous regulatory frameworks governing onion cold storage practices. Furthermore, acknowledging the intricate mesh of interests embedded within the onion value chain, it advocates heightened vigilance and stringent oversight concerning stakeholders. This multifaceted investigation, beyond contributing empirical authenticity, serves as a clarion call for prudent stewardship of this pivotal agricultural domain.