WORKING PAPER

DEPARTMENT OF AGRICULTURE AND JAPAN INTERNATIONAL COOPERATION AGENCY

Formulation Team on the Drafting of the Strategic Agribusiness Development Plan

COMMODITY SITUATION REPORT: PAPAYA

Prepared by

JOSE ULYSSES J. LUSTRIA, ALDRIN NACIONAL, AND ACQUILYN E. MORILLO

November 2009

____________________ Mr. Lustria is OIC-Chief, Public Investment Program Division (PIPD), Planning Service, Department of Agriculture. Mr. Nacional and Ms. Morillo are Technical Assistants at the PIPD.

TABLE OF CONTENTS I. OVERVIEW..... A. Background....... B. Contribution to the Economy........ SITUATIONAL ANALYSIS.......... A. Production......... 1 . World Production......... a. Major Producing Countries...... b. Productivity and Competitiveness..... 2 . Domestic Production.... a. Major Producing Provinces.......... b. Volume, Area planted and Productivity........ c. Value of Production....... 1 1 1 2 2 2 2 3

II.

B. 1 2

4 4 5 5 Supply and demand....... 7 . Supply .......... 7 . Demand......... 8 a. World Demand(Exports) .......... 8 b. Domestic Demand......... 9 Value-Chain System.......... . Input Supply Subsystem ... a. Seeds and Seedlings, etc... b. Fertilizer and Pesticide.... c. Agricultural Machinery.... d. Labor... . Farm Production Subsystem. . Postharvest Subsystem...... . Processing Subsystem....... . 12 12 12 12 13 13 13 14 14

C. 1

2 3 4 5

III. IV. V.

Marketing Subsystem........ 14 D. Prices..... 18 1 . World Prices......... 18 2 . Domestic Prices........ 18 3 . Price Formation / Differentiation.... 20 E. SWOT Analysis.. 22 F. Problem Tree Analysis.. 23 SUMMARY, ISSUES AND RECOMMENDATIONS......... 24 REFERENCES......... 26 ANNEXES. 27 ii

LIST OF FIGURES
Figure 1 Percentage Share of Papaya to Total Value of Agricultural Crops and Gross Value Output, 1998-2008.......................................................... Papaya Top Producing Provinces (MT), 2008................... Production (MT), Area (Ha) and Yield (MT/Ha) of Papaya, Philippines 1998 2008............................................. Value of Production (in Million Pesos) of Papaya, at Constant prices, 1998-2008................... Philippine Share of Papaya to World Export Quantity (MT), 1998-2007............................................................................................... Philippine Share of Papaya to World Export Value (in 000 $), 1998-2007................... Philippines Top Export Markets of Fresh Papaya (MT), 1998-2008............................................... Philippines Top Export Markets of Dried Papaya (MT), 1998-2006... Papaya Agribusiness System...... On-farm Cost of Papaya Production (in Percent), 1998-2008....... Geographic Flow and Marketing Channels of Papaya in Misamis Oriental, 2001..... Geographic Flow and Marketing Channels of Papaya in Cavite, 2001....... Geographic Flow and Marketing Channels of Papaya in Aklan, 2001........... Prices of Hawaiian Papaya, 1998-2008......... Farmgate Price of Other varieties of Papaya, 1998-2008..... Price Ratios of Hawaiian Papaya (in Percent), 1998-2008....... Problem Tree Analysis.... Page

2 4

2 3

10

10

11 12

9 10

13

11

15

12

16

13

17 19 19 20 23

14 15 16 17

iii

LIST OF TABLES

Table 1 World Production of Papaya (MT) by Top Producing Countries, 1998-2007.. Yield of Papaya by Top Producing Countries (Hg/Ha), 2007 Volume of Papaya Production (MT), by Top Producing Provinces, 1998-2008.. Supply and Utilization of Papaya (in MT), 1998-2008... Producers Price of Papaya of Top Producing Countries (US$/MT), 1998-2006 Issues/Gaps and Recommendations for Input Supply and Farm Production Subsystem of Papaya Industry. Issues/Gaps and Recommendations for Postharvest, Processing Subsystem, Marketing, and Support Subsystem of Papaya Indusry..

Page

3 3

2 3

5 8

4 5

18

24

25

iv

LIST OF ANNEXES Table 1 Value of Production in Agriculture by Type of Valuation, Sub-sector, 1998 2008.. Updated average production costs and returns of papaya (in pesos per hectare), Philippines 1998-2008... Page

27

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I. OVERVIEW

A. Background Papaya (Carica papaya) is one of the very popular tropical fruits belonging to the cactus group of plants. It is a large tree-like plant, the single stem growing from 5 to 10 meters tall, with spirally arranged leaves confined to the top of the trunk. The lower trunk is conspicuously scarred where leaves and fruit were borne. The leaves are large, 50-70 cm diameter, deeply palmately lobed with seven lobes. The fruit is cylindrically long, pear shaped or round, it is orange-to-orange-red, sweet and juicy when ripe (BPI, 2009). Grown almost throughout the country, papaya serves as a backyard and a plantation crop. It is also grown under the multiple cropping system, usually with coffee, coconut, and pineapple. Several varieties of papaya are grown in the country. These are Solo, Cavite special, Legaspi special, Morado, and the Sinta hybrid. The varieties of papaya are distinguished through their contrasting characteristics such as short (dwarf) versus tall stature, green versus purple petiole, yellow versus red flesh, and small versus large fruits (PCARRD, 1984) . Papaya has wide variety of uses. Ripe papaya is eaten fresh as breakfast and dessert fruit. It is made into fruit salad or juice and can be processed as jelly, marmalade, candies, and crystallized fruits. Green fruits are pickled or cooked as vegetable. Flowers and young leaves may also be eaten. Papain extracted from green mature fruits has industrial uses (for beer industry, as meat tenderizer, for certain drug preparations, silk degumming, and softening wool). Seeds may be used to expel intestinal worms and to induce abortion (Rivera, 2005).

B. Contribution to the Economy Generally, papayas economic contribution is gradually increasing. Its shares to the total value of agricultural crop and agricultural output are increasing at an average of 2 percent (Figure 1). This shows the papayas potential of becoming a major fruit like mango, banana, and pineapple.

Figure 1. Percentage share of papaya to total value of agricultural crops and agricultural output, 1998-2008. (Source: BAS, 2009)

II. SITUATIONAL ANALYSIS

A. Production

1. World Production a) Major producing countries. In 2007, the Philippines is the 10th major producer of papaya in the world, contributing 1.78 percent (164,234 MT) to the worlds total production. While the country is 10th producer of papaya in 2007, historical data revealed that the countrys average production is much higher than Guatemala during 1998-2006 (Table 1). An impressive increase in Guatemalas production in 2007 has put the country one notch behind it.

Table 1. World production of papaya (MT) by top producing countries, 1998-2007.

(Source: FAO, 2009)

b) Productivity and competitiveness. The countrys yield has shown a strong edge among the other top producing countries such as Nigeria, India, and the Democratic Republic of Congo. In 2007, the Philippines is seventh among the major producing countries with the highest yield or average land productivity. However, it should be noted that the countrys productivity could be further improved.
According to the Philippine Agriculture 2020 report (NAST, 2008), papaya is also price competitive under export trade scenario because export parity price ratio is greater than 1. It is also cost competitive because resource cost ratio for export is less than 1.

Table 2. Yield of papaya by top producing countries (Hg/Ha), 2007. Country 1. Indonesia 2. Guatemala 3. Brazil 4. Mexico 5. Colombia 6. Ethiopia 7. Philippines 8. Congo, Democratic Republic of 9. India 10. Nigeria (Source: FAO, 2009) 2007 887,891 527,228 520,871 438,950 378,463 208,000 179,982 169,107 87,500 82,702

2.

Domestic Production

a) Major Producing Provinces. Papaya Hawaiian or solo papaya is the major variety produced in the country. In 2008, 2 percent (48,792 MT) of papayas national production is produced in South Cotabato, the major producer in the country. This is 7 percent higher than the production of the next major producer, Misamis Oriental (35,727 MT). In the same year, other major producing provinces such as Davao del Sur, North Cotabato, and Quezon has contributed 7.6 percent, 4.5 percent, and 3.2 percent, respectively, to the countrys papaya production.

Figure 2. Papaya top producing provinces (MT), 2008. (Source: DA-BAS, 2009) It is interesting to note that South Cotabatos production has shown a remarkable growth from 1998 to 2008. In the previous years, its production was relatively lower that of Misamis Oriental (1998-2005). However, from 2005 to 2008, South Cotabatos production has shown tremendous growth that toppled the latter province from being the number one producer of papaya in the country. While North Cotabato has recorded an increasing production trend (1998-2008), Quezon province has experienced a sudden decline in its production (2006-2008). On the other hand, the years 2004-2006 had shown a gradual cut in Davao del Surs production. However, the province was able to bounce back in 2007 and 2008.

Table 3. Volume of papaya production (MT), by top producing provinces, 1998-2008.

(Source: BAS, 2009)

b) Volume, area planted and productivity. The gradual increase in area planted to papaya is accompanied by a significant growth in its production and yield (Figure 3). A closer look on the average growth rate of production and yield (6 percent and 4 percent, respectively) vis--vis the average growth rate of area (2 percent), exhibits a greater value and opportunity to improve the sectors level of productivity and competitiveness, especially through area expansion.

c) Value of production. As discussed earlier, papaya industry shows very promising potentials. Increasing area, production volume, and yield has also equated to an upward behavior of production value. From 1998 to 2008, it is increasing at an average of 6 percent.

Figure 3. Production (MT), area (Ha) and yield (MT/Ha) of papaya, Philippines 1998 2008. (Source: DA-BAS, 2009)

Figure 4. Value of production (in Million Pesos) of papaya, at constant prices, 1998-2008. (Source: BAS, 2009)

B. Supply and Demand

1. Supply The total production of papaya makes up the gross supply, which is available for exports, feeds and waste, and food consumption. As noted earlier, production is increasing at an average of 6 percent (Table 4). It is also noticeable that the country has no imports of papaya from 1998 to 2008. This implies that total production is more than enough to meet the domestic demand. In fact, the country is also supplying fresh papaya to other countries.

Table 4. Supply and utilization of papaya (in MT), 1998-2008.

Note: SU- Supply Utilization

UT Utilization

(Source: BAS, 2009)

1. Demand

a) World demand (Exports). From 1998 to 2008, an average of 2 percent of gross supply is exported. While papaya production is consistently increasing (except in 2002), papaya export has shown a fluctuating trend. Nonetheless, export sector of fresh papaya has still posted an average growth of 17 percent (Table 4). The countrys shares in world export quantity and value showed an impressive trend during 1998-2001. However, in 2002, the Philippines shares to world export quantity and value was cut by 0.07 percent and 1 percent, respectively (Figure 5 and 6). Shares in 2003 decreased dramatically when papaya ringspot (PRS) hit Mindanao region, where major producers are highly concentrated. The PRS was observed in South Cotabato and some parts of General Santos City, Davao del Sur, and Davao del Norte. (Herradura, 2003). However, the country was able to augment its shares in 2004-2007 at an average of 2 percent (export quantity) and 3 percent (export value). This might have been the results of the efforts in coming up with management strategies before the disease completely spoiled the papaya industry in the country. Japan is the largest export market of the countrys fresh papaya. In fact, in 2008, 72 percent (2,060 MT) of the total exported fresh papaya is shipped to Japan. In addition, Japan is the only country where the Philippines has uninterrupted exports from 1998 to 2007. In the same period, the country is also exporting fresh papaya to New Zealand (with interrupted supply in 1998 and 2002), South Korea (1999-2007), Singapore (2003-2007), and Taiwan (2003-2007).

Meanwhile, data of the export market for dried papaya in 2007 and 2008 is not available. Figure 8 shows the top export market for dried papaya from 1998 to 2006. In 2006, 53 percent of the total exported dried papaya was shipped to Hongkong. It is also notable that the country has uninterrupted exports of dried papaya in Australia during 1998-2006.

b) Domestic demand. As mentioned earlier, total production is more than enough to meet the domestic demand. Based on the supply and utilization account (Table 4), an average of 92 percent of the gross supply (1998-2008) is available for food consumption. In addition, per capita consumption is increasing at an average of 4 percent. This implies an increasing demand for papaya due to the shift of people to a more modern yet healthy lifestyle.

Figure 5. Philippine share of papaya to world export quantity (MT), 1998-2007. (Source: FAO, 2009)

Figure 6. Philippine share of papaya to world export value (in 000 $), 1998-2007. (Source: FAO, 2009)

Figure 7. Philippines top export markets of fresh papaya (MT), 1998-2008. (Source: BAS, 2009)

10

Figure 8. Philippines top export markets of dried papaya (MT), 1998-2006. (Source: DA-BAS, 2009)

11

C. Value-Chain System The papaya industry involves many players. A brief overview of its value chain system is shown in Figure 9.

Figure 9. Papaya agribusiness system. (Source: Papaya Strategic Action Plan, March 2002)

1. Input Supply Subsystem

a) Seeds and Seedlings, etc. Small-scale growers usually produce their own seeds or buy planting materials from local nurseries. Some companies enter into contractgrowing arrangements with selected individual producers using their preferred cultivars. For instance, Del Monte Philippines has contract-growing arrangements with papaya farmers in Misamis Oriental and Bukidnon. They also produce their own seed stocks and supply contract growers with planting materials. In some cases, they supply all the required inputs while producers complement with land, labor, and management.

b) Fertilizer and Pesticide. From 1998 to 2008, an average of 22 percent of all production costs is accounted to inorganic fertilizer, one of the major cost drivers. Note that its cost of share is also increasing at an average of 6 percent. The soaring prices of inorganic fertilizer have greatly influence such increase. On the other hand, pesticide has an average share of 6 percent of all costs.

12

c) Agricultural Machinery. Machine, tools, and equipment rentals have minimal share (an average of 1 percent) to all production costs. Further, from 1998 to 2008, its share is gradually decreasing at an average of 5 percent (Annex 2).

d) Labor. Hired labor and operator/family labor are also major cost drivers. Their average shares to the production cost are 24 percent and 6 percent, respectively. Even so, their shares are also gradually cut at an average of 0.6 (hired labor) and 0.2 (operator/family labor) percentages (Figure 10).

2. Farm Production Subsystem The Philippine papaya production, except for the export variety Solo, is widely dispersed and mostly run on a backyard scale. The cultural requirements include land preparation, planting, water management, weed control, fertilization, and pest and disease management (PCARRD, 1984).

Figure 10. On-farm cost of papaya production (in percentage), 1998-2008. (Source: BAS, 2009)

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3. Postharvest Subsystem Papaya generally starts to flower after 5 months from seedling and the first harvest is obtained 4 to 5 months later. The productive lifespan of papaya gradually ends on the 3rd or 4th year. As the tree matures, production also slackens. The yield of well-managed papaya plantation is 35 to 40 tons per hectare (BPI, __). a) Packing. A good method of packing is to place the fruits in single layer in a rectangular wood container lined with dried banana leaves or shredded newsprint to protect the fruit against the normal hazards of transport and handling. b) Storing. Ripe papayas may be stored at 8.3C and partially ripe ones at 11.9C. At these temperatures, the fruit can be kept for 3 weeks. To avoid chilling injury, which is manifested by impaired ripening, do not store less mature fruit below 7.1C.

4. Processing Subsystem. The major forms of processed papaya in the Philippines are dried papaya and canned tropical mixed fruit cocktail containing papaya cubes, pineapple, nata de coco and palm, among others. There are three major companies engaged in canned fruit cocktails- Dole Philippines Inc., Del Monte Philippines, Inc., and TBoli Agro Industrial, Inc. (TADI). These companies enter in contract growing or marketing arrangements of papaya with selected producers using preferred cultivars of the companies. Dried papaya is also processed and marketed by large and medium size companies including TBoli Agro and Orient Food Inc., among others. When exporting to Japan, South Korea, and New Zealand markets, companies follow established quarantine protocol for fresh papaya, which requires a phytosanitary certificate and a vapor heat treatment (VHT). In the Philippines, one of the VHT plants is located in Panabo, Davao del Norte. It is being operated by Dole Philippines, Inc. to facilitate fresh papaya and mango exports. For other markets such as Hongkong and the Middle East, exporters accomplish phytosanitary certificate only (PCARRD, 2004).

5. Marketing Subsystem. Markets of papaya are domestic, export and processing plants. There are fruit traders and consolidators who buy from farmers and transport them to the cities for retailers. Some big fruit processors and exporters enter into growers marketing contract. Other growers have their own market outlets or suki. While papaya has a big export demand, only a few exporting companies have access to these markets because of the stringent requirements and big capital outlay. Government agencies like D.A. and DTI with their commercial and agricultural attaches assigned abroad can greatly help develop export market for papaya and other fruit commodities produced in the Philippines.

14

Figure 11, 12 and 13 show the geographical flow and market channels for papaya in Misamis Oriental, Cavite, and Aklan. Supplies of papaya in Misamis Oriental came mainly from the municipality of Tagoloan and barangays Talusan, Poblacion, Lubia, Claveria, Linggangao and San Isidro of Balingasag. Major outlets were Balingasag, Agora and Carmen markets in Cagayan de Oro City. Papayas were sold to Bugo and Tagoloan in Cagayan de Oro City. Other outlets included Iloilo, Cebu, Bacolod and Metro Manila cities The outlets of papaya farmers in Misamis Oriental were interregional assembler-large distributors, processors and other farmers. The fruits were distributed further by large distributors to processors, buyers outside the province and to retailers.

Figure 11. Geographic flow and marketing channels of papaya in Misamis Oriental, 2001. (Source: BAS, June 2003)

The municipalities of Amadeo, Silang, Alfonso, Mendez, Indang and Tagaytay City were the sources of papaya in Cavite. There were no supplies of papaya coming from outside the province. From the farms, papayas were brought mostly to the markets located in the supply municipalities. Papayas from Cavite were distributed to demand areas in Manila, Quezon City, Laguna, Pampanga, Bulacan and Baguio City. 15

The farmers sold papaya to the agent and/or buyers outside the province (BOP) at the supply area and to the assembler-distributors in the trading centers. The agent distributed the collected/procured fruits to assembler-distributors, institutional buyers and BOP. Traders outlets were processors, BOP and co-traders. Retailers sourced their products from small distributors.

Figure 12. Geographic flow and marketing channels of papaya in Cavite, 2001. (Source: BAS, June 2003)

Papayas in Aklan were sourced from Capiz, Banga, Malinao and Numancia. Sources outside the province were Capiz, Romblon and Iloilo. There were also shipments of papaya from Manila for the demand of the famous beaches in the province. The bulk of supply went to the markets within the identified source municipalities. From the market, papayas were distributed to consumers from the same municipality while others were sold to other towns particularly in Kalibo and Ibajay, Aklan. The flow is relatively simple wherein the traders procured papaya from the farmers. The retailers sourced their fruits from traders or from suppliers outside Aklan. They distributed the same directly to consumers.

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Figure 13. Geographic flow and marketing channels of papaya in Aklan, 2001. (Source: BAS, June 2003)

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D. Prices

1. World Prices The Philippines is one of the top producing countries with low producer price. From 1998-2006, the average producers price was US$132.72. This is lower than the top 3 producing countries such as Brazil, Mexico and Nigeria. If the production will continuously increase, the lower producer price could be one of the advantages of the country to expand its export market.

Table 5. Producers price of papaya of top producing countries (US$/MT), 1998-2006.

(Source: FAO, 2009)

2. Domestic Prices Figure 14 shows that the retail price and wholesale price of Papaya Hawaiian is increasing at the average rate of 2 percent and 1 percent, respectively. Papaya Hawaiians farmgate price, however, is decreasing at an average rate of 7 percent. Other varieties of papaya such as native, sinta and solo exhibit a positive average growth on their farmgate prices; 2.14 percent, 17.23 percent, 2.6 percent, respectively (Figure 15).

18

Figure 14. Prices of hawaiian papaya, 1998-2008. (Source: BAS, 2009)

Figure 15. Farmgate Price of other varieties of papaya, 1998-2008. (Source: BAS, 2009) 19

As depicted in Papaya Hawaiian price ratios (Figure 16), wholesalers have greater advantage over the farmers and retailers.

Figure 16. Price ratios of hawaiian papaya (in percent), 1998-2008. (Source: BAS, 2009)

3. Price Formation/Differentiation Below is a brief description of papayas price formation from the supply area to the wholesale and retail markets (BAS, ___). Supply Area Prices for ripe, overripe, and three-to-five-day-old papayas are generally lower than green-mature and half-ripe form because they have shorter storage life and more susceptible to transport damage. Metro Manila traders (assemblers) usually go to provinces to source their commodity. As such, wholesale buying price is formed in the trading center or in the farm, where these traders (assemblers) do the transaction. Prior to visiting the supply area or the provinces, it is customary for the traders to canvass the prevailing price in the wholesale market where they are based (i.e. Divisoria, Balintawak, Pasig, etc.). Generally, the quoted wholesale price is estimated based on the 20

prevailing price plus mark-up, and all other costs such as transportation, food, etc. Depending on the supply levels of the producing provinces, where trading occurs, the quoted price may vary. On the day of the traders procurement of stocks, this price will be the benchmark of the buying prices in the provincial trading center or farm. Note however, that wholesale buying price of papaya may tend to lower due to the availability of substitute of competitor fruits. Metro Manila traders, who also go to the trading center or production area, sell some of these substitutes.

Wholesale Market Provincial assembler. Price of papaya in wholesale market tends to have minimal variation. In fact, medium distributors, medium to small distributors, and traders from provinces, who are sourcing their commodity from the same trading center or production area, tend to have similar wholesale selling prices. In addition, traders who are based in the same market may have procured papaya stocks together since they are relatives of friends (kumpadre). Although sizes of sorted papaya vary, traders who are transacting with their regular buyers (suki) may tend to give discounts other than the prevailing price.

Retail Market Retail price covers the transport cost and overhead expense. It is also dependent on the buying price. Most often than not, viajeros offered lower selling price that can be taken advantage by retailers who are buying in bulk. To avoid spoilage losses and to dispose the old stocks, retailers quote lower price for overripe papaya.

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E. SWOT Analysis SWOT identified for the papaya industry is as follows (NAFC-DA, 2002): Strengths Suitable agro-climatic conditions for production Fast growing crop and year round production Versatile crop with varied uses Advantageous geographical position of the Philippines relative to export markets like Japan, Korea, Taiwan, Hong Kong and China. The transit time for fresh papaya to reach these markets is shirt, hence, facilitating its distribution at the shorttes possible tinme in its fresh state.

Weaknesses Diseases and pest, especially the ringspot virus (RSVP) that limit the productivity of papaya plants Poor adoption of technologies that would otherwise enhance the productivity of plants and quality of fruits Inefficiency of distribution system brought about by poor infrastructure, inefficient information system and lack of postharvest facilties

Opportunities High demand for fresh and processed products in domestic and foreign markets Expanding product lines (processed nutriceuticals, papain, functional food) Biotechnology tools available to improve quality and shelf-life of papaya Establishment of Phytosanitary procedures to meet requirements of major importing countries like Japan, South Korea and New Zealand

Threats Fruit importation and substitution which limits the local demand for papaya Sanitary and Phytosanitary barriers to trade Typhoons

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F. Problem Tree Analysis

Figure 17. Problem tree analysis of papaya industry.

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III. SUMMARY, ISSUES AND RECOMMENDATIONS The industry trends have shown that papaya production is increasing both in quantity (6%) and area (2%) from 1998 to 2008. It is interesting to note that a gradual increase in the area is accompanied by a significant growth in yield (4%). Aside from the strong edge of the industrys productivity, it has also been one of the top producing countries with a low producer price. This gives a greater opportunity for the industry to expand its potential markets abroad. Summary of constraints and required actions for each subsystem of papaya industry are presented in the following tables.

Table 6. Issues/gaps and recommendations for input supply and farm production subsystem of papaya industry. Input Supply Issues/Gaps Recommendation Certified Seeds and seedlings are not readily Intensify seed production. Train accessible to growers due to limited availability and farmers on how to do it properly high price Conduct training on seedling Prospective growers do not have adequate production knowledge in raising seedlings LGU to operate model nurseries to meet seedling requirement of every municipality Dissemination of recommended technologies is not Establishment and operation of effective model papaya orchards in strategic Limited adoption of production technologies due to areas high cost of inputs and lack of financial resources Conduct farmers training on improved production technologies Farm Production Existing varieties are susceptible to Papaya Ringspot Research and development on Virus varietal improvement Sinta and Taiwan-bred varieties are moderately Breeding for PRSV-resistant tolerant to PRSV but grown primarily for domestic variety market and are not allowed in PRSV-free provinces Strict quarantine regulation to in Mindanao and Visayas prevent spread of PRSV. AN Existence of pests and diseases other than PRSV are intensified information campaign also threat to papaya industry about the threat of disease R, D and extension program aimed at developing an effective and efficient Integrated Pest Management (IPM) Strategies Lack of information on optimum fertilizer and water R, D and extension Program on the requirement development of an effective and Efficient irrigation method has not been thoroughly efficient fertilization and irrigation technologies of papaya evaluated (Source: NAFC-DA, 2002) 24

Table 7. Issues/gaps and recommendations for post harvest, processing subsystem of papaya industry, marketing, and support subsystem. Post harvest Issues/Gaps Recommendation Poor access and adoption of improved, advanced Conduct massive training on packages of postharvest technologies postharvest handling technologies Low awareness on proper postharvest handling Establish post harvest clinic to address postharvest-related concerns in the area Conduct capability building Processing Poor quality of planting material due to anthracnose Conduct extensive IPM training and stem end rot infestation causing reduced recovery rate High cost of sugar compared to other countries Tariff reduction to levels comparable with other Asian High cost of fuel/electricity incurred during countries syruping High cost of packaging materials Compilation/Updating of Lack of awareness of importing country standards importing country standards and dissemination of these information to processors Limited access to product testing and quality/safety Supplement FDC testing services system certification services available only in Manila. Upgrade DOST regional testing laboratories to conform with the Codex guidelines for the assessment of the competencies of food testing laboratories Marketing Issues/Gaps Recommendation High percentage of unmarketable fruits due to Development and implementation bruises, misshapen, unripe etc good agricultural practice (GAP) plan to reduce percentage of misshapen, extremely small and insect-infested fruits High air and sea shipment cost Government intervention to reduce cost of distribtuion Support Lack of fincancing Provision of more accessible low interest production loan (Source: NAFC-DA, 2002)

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IV. REFERENCES Bureau of Agricultural Statistics, Department of Agriculture (1992). Marketing and Information Needs Assessment for Davao City. Technical Report. Bureau of Agricultural Statistics, Department of Agriculture (2003). Marketing Costs Structure for Papaya. Series No. 4. Bureau of Agricultural Statistics, Department of Agriculture ( ).

Bureau of Plant Industry, Department of Agriculture. Production Guide on Papaya. Retrieved on August 2009 from www.bpi.da.gov.ph. Ginintuang Masaganang Ani-High Value Commercial Crops (GMA-HVCC), Department of Agriculture. A Guide to Papaya growing and Marketing. Retrieved on September 2009 from www.hvcc.da,gov.ph. Herradura, L.E. Management of papaya ringspot virus (PRSV) in Southern Mindanao. BagoOshiro, Davao City: Department of Agriculture-Bureau of Plant Industry/Davao NationalCrops R&D Center, 2003. (PCARRD-funded; completed). National Agriculture and Fishery Council, Department of Agriculture (2002). Strategic Action Planning: Other Fruits Papaya.
National Academy of Science and Technology, Department of Science and Technology. (2008). Philippine Agriculture 2020: A Strategy for Poverty Reduction, Food Security, Competitiveness, Sustainability, Justice and Peace. Main report. January 2008.

Philippine Council for Agriculture, Forestry and Natural Resources Research and Development. (1984). The Philippines Recommends for Papaya. PCARRD Technical Bulletin Series 27-A. Philippine Council for Agriculture, Forestry and Natural Resources Research and Development. (2004). R & D Status and Directions (2000 and Beyond): Papaya. Food and Agriculture Organization of the United Nations (2009). Retrieved on October 2009 from www.faostat.fao.org.

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V. ANNEXES Annex 1. Value of Production in Agriculture by Type of Valuation, Sub-sector, 1998 2008.

Value of production

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Average

Papaya

144

151

163

171

171

175

179

196

211

220

245

184

Agricultural crops

110,733

129,268

120,249

124,047

126,035

129,250

136,181

137,305

143,699

151,560

157,543

133,261

Total agricultural ouput

224,172

245,874

242,318

253,131

262,788

272,011

286,245

292,581

304,000

318,068

330,396

275,599

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Annex 2. Updated average production costs and returns of papaya (in pesos per hectare), Philippines 1998-2008. ITEM 1998 1999 50,948 74 11,144 1,365 6 4,837 2,508 2,329 3 19,542 264 2,305 729 3,347 2,247 56 2,341 953 745 27 74 216 673 2000 53,406 80 11,995 1,468 6 4,981 2,582 2,399 3 19,762 267 2,217 736 3,910 2,580 54 2,575 967 774 26 75 230 700 2001 57,295 95 14,286 1,748 7 5,187 2,689 2,498 6 19,770 270 2,183 736 4,297 2,879 53 2,833 1,012 819 26 75 265 748 2002 57,951 94 14,090 1,725 7 5,261 2,727 2,534 6 20,379 273 1,978 760 4,301 2,908 48 3,116 1,033 831 24 77 270 770 2003 64,016 117 17,609 2,155 9 5,272 2,733 2,539 7 21,400 276 2,091 787 4,731 3,009 51 3,428 1,056 837 25 80 279 797 2004 73,797 158 23,827 2,917 12 5,292 2,743 2,549 9 22,316 279 2,317 821 5,360 3,391 57 3,771 1,122 900 28 83 293 844 2005 84,335 196 29,637 3,627 15 5,280 2,737 2,543 11 23,614 282 2,737 869 6,302 4,013 67 4,148 1,195 968 33 88 344 909 2006 86,124 195 29,440 3,604 15 5,035 2,610 2,425 11 24,609 285 2,274 906 6,857 4,523 56 4,563 1,262 1,020 27 92 383 967 2007R 89,416 207 31,240 3,824 16 4,790 2,483 2,307 12 25,578 288 1,956 942 7,083 4,546 48 5,019 1,303 1,053 23 96 398 994 2008P 103,537 371 39,701 6,862 29 4,615 2,392 2,223 22 25,895 291 1,688 954 8,289 5,031 41 5,521 1,480 1,138 20 97 403 1,089 28

CASH COST 41,846 Fertilizer Organic 82 Inorganic 9,593 Foliar 1,521 Soil ameliorants 7 Pesticides 4,329 Solid 2,245 Liquid 2,084 Other material inputs 3 Hired labor 12,179 Land tax 261 Rentals: Land 3,208 Machine, tools, equipment 679 Fuel and oil 3,081 Transport of inputs 2,105 Irrigation fee 78 Interest on crop loan 2,128 Food expenses 912 Repairs 731 Landlord's share 37 Wages for overseer 69 Electric bill 208 Others (straw twine, sacks, bamboo 635 poles, nylon strings)

ITEM NON-CASH COST Hired labor (paid in kind) Landlord's share Harvester's share IMPUTED COST Operator/family labor Depreciation Interest on operating capital Rental value of owned land ALL COSTS GROSS RETURNS RETURNS ABOVE CASH COSTS RETURNS ABOVE CASH & NON--CASH COSTS NET RETURNS NET PROFIT- COST RATIO Cost per kilogram (P) Yield per hectare(kg) Farmgate price (peso/kg)

1998 199 21 136 42 13,641 3,177 3,673 4,434 2,357 55,686 97,481 55,635 55,436 41,795 0.75 5.19 10,724 9.09

1999 167 34 98 35 16,922 5,274 4,040 5,915 1,693 68,037 82,265 31,317 31,150 14,228 0.21 5.40 12,598 6.53

2000 165 34 94 37 17,523 5,324 4,444 6,127 1,628 71,094 90,262 36,856 36,691 19,168 0.27 4.95 14,373 6.28

2001 165 34 93 38 18,392 5,326 4,888 6,576 1,602 75,852 93,769 36,474 36,309 17,917 0.24 5.00 15,173 6.18

2002 152 35 84 33 18,978 5,499 5,377 6,650 1,452 77,081 81,614 23,663 23,511 4,533 0.06 5.29 14,574 5.60

2003 160 36 89 35 20,676 5,775 5,915 7,451 1,535 84,852 87,267 23,251 23,091 2,415 0.03 5.76 14,741 5.92

2004 176 38 99 39 22,955 6,022 6,507 8,725 1,701 96,928 97,921 24,124 23,948 993 0.01 6.49 14,927 6.56

2005 205 40 117 48 25,522 6,373 7,158 9,981 2,010 110,062 120,133 35,798 35,593 10,071 0.09 7.10 15,501 7.75

2006 183 42 97 44 26,250 6,641 7,874 10,065 1,670 112,557 109,036 22,912 22,729 (3,521) (0.03) 6.65 16,931 6.44

2007R 167 44 83 40 27,508 6,903 8,661 10,507 1,437 117,091 99,709 10,293 10,126 (17,382) (0.15) 6.51 17,998 5.54

2008P 155 45 72 38 30,154 6,988 9,527 12,399 1,240 133,846 95,289 (8,248) (8,403) (38,557) (0.29) 6.71 19,935 4.78

R-revised Estimates P-Preliminary Estimates (Source: BAS, 2009) 29