Seven Farmer’s Cooperatives and Associations (FCA) in the Province of Ifugao underwent the second phase of their market cost structure training which will strengthen their knowledge of the importance of how to put a price structure on their agricultural produce prior to being sold to the market.
The cost structuring workshop training will help farmers not only in determining the cost of production that they produce and the volume that they need to produce.
The farmers are taught to consider the operational and production costs to come up with a total price for their agricultural products, with emphasis on the consolidation, transportation, and total production costs for them to determine the farm gate price.
The workshop conducted in Lamut, Ifugao seeks to inform the farmers on understanding and distinguishing between marketing efficiency and effectiveness, which influence the level of efficiency and effectiveness of a marketing system and determine how marketing costs and margins can be calculated.
The farmer participants were also introduced to the process of assessing the performance of a marketing system that focuses on the farmer’s share of the retail price paid by the end-user or consumer, the gross marketing margin or farm-retail price spread, and the proportion of a consumer’s income which must be spent on food.
They were also informed to consider marketing costs and margins, operational efficiency, pricing efficiency, packaging costs, storage costs, and capital costs.
The FCA participants of Ifugao came from the municipalities of Kiangan, Asipulo, Tinoc, Hungduan, Banaue, Lagawe, and Hingyon. The FCAs are expected to submit the final output of their workshop that will serve as a template in computing for farm gate pricing of their agriculture products.