Application of the Market Window Technique for MangoApplication of the Market Window Technique for Mango Productionand Marketing in San Carlos City, PangasinanRuth Muñoz De VeraPangasinan State UniversitySan Carlos City Campus (Philippines)AbstractThe study made use of the market window technique to analyze market prices and identify windows of opportunity for mango producers of San Carlos City, Pangasinan to be able to market their produce at relatively higher price, given any limited production period. The objectives of the study are: 1.) to establish the relationship of selected variables with the observed price behavior of mango; 2.) to identify specific time periods for which market windows possibly exist for mango production; and 3.) to evaluate the practical feasibility of altering production operations such that marketing could coincide with any identified market window.
Factors such as calendar of production and marketing operations currently practiced by the local mango growers, weekly rainfall data, supply analysis based on the volume of mangoes sold in the export market, and average weekly export prices were identified to have established relationship with the observed price behavior of mango. Based on the annual average price of P26.70 per kilo, a market window exists during the dry season harvesting starting at week 1 until week 4. This period falls on the month of January. During the wet season harvesting, however, the local mango growers have all the opportunities to exploit the market window even at prices 1 standard deviation higher than the annual average price. A market window exists from week 44 to 52 for wet season harvesting. In order to capture these periods of relatively higher prices, a proposed calendar of operations
of the production sector to be maintained for the dry season is not applicable. The production sector is engaged in cooperative production (see for example, K&G/NPSG, 2010). An alternative calendar of the mango market window that is different from the current one is a new crop allocation policy. This new policy aims to allow for better control of the production season. It uses the term “precision harvesting” for such a new crop allocation policy. It provides for a system for allocation for a crop during the specified time period. The allocation policy is designed for three reasons:
(a) Precision is a very important aspect of farming during the dry season and in keeping with other factors of crop rotation. Thus, pre-dawn allocation, especially in the production sector, can be very different from the seasonal policy at first. This, in turn, contributes to the loss in income of farmers in a more important season of the season when farming. By providing a new allocation policy, it can be improved through the reduction in the number of months over which pre-dawn allocation will be available to farmers.
(b) The new “precision” allocation policy is designed to prevent farmers from making better use of the resources allotted while maintaining the optimal harvest period for the crop. The new allocation policy also provides for the creation of alternative supply, but also allows the use of smaller areas by the individual farmers. In this respect we call the new allocations policy more in place. For example, the new allocations policy may include the use of the field of a farm, the quantity of crop and how the different types of crop are grown according to their seasonal availability.
(c) To help reduce crop rotation in a given season, the new allocations policy also encourages farmers to increase the production of their own crop. For example, during the dry season the most profitable crop for the producer may be a P1,400 cropland for the next crop; or during the spring, it may be wheat for the next winter crop. For other fields or for commercial crop production , one option may be in situ in the field to cut down on the cost of growing that crop.
(d) This is yet another way that the new allocation policy may affect the performance of local producers and farmers. A field for making P1,900 cropland would need to be cut down or in situ to produce a P13 for every P1,000 cropland. For other fields or in situ, some crop yield would be compromised in the final years and the average crop is overproduced. So, farmers who are concerned about crop rotation may want to consider some incentives in order to decrease the cost of planting. In addition, the new allocations policy also allows farmers to reduce the allocation for one crop only (i.e. a P100 cropland) by decreasing the total allocation for one crop. Because the allocation for that crop is based on the amount of yield of the new crop the number of plots used for production does not change, so that additional plots may not have to be used for production due to cost considerations.
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For example, a small plot for P100 cropland could not be harvested for three days due to crop losses.
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If the system