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Cost benefit analysis of using cold storage technology: The case of onion farmers in Nueva Ecija, Philippines
Thesis Abstract:
The Philippine government has been ramping up its investments on cold storage facilities to abate postharvest losses and to provide farmers another option for expanding their profit. Considering that intertemporal price arbitrage is possible with the use of cold storage facility, this study examines the economic benefits and costs of storage activity among onion farmers and identifies the factors associated with the use of cold storage facility in Bongabon and San Jose City, Nueva Ecija, Philippines. A survey of 214 farmers from the top three onion-producing villages of Bongabon and San Jose City was conducted. Descriptive analysis, comparison of median and proportion, partial budget analysis and binary logit analysis were employed. The storage activity generated an average additional net income of USD 41,637.46. However, participation in storage activity remains to be low due to the predominantly smallhold farming. To ensure that farmers are not excluded in the value chain, the policy initiative on enhancing post-production facilities including the establishment of cold storage facilities which are operated by farmer groups is supported since the results show that cooperative membership is positively related with onion storage.