Effect of Barangay Bagsakan to Farmers’ Profitability: The Case of Small-scale Vegetable Farmers in Davao City, Philippines

Farmers have depended largely on middlemen in marketing their produce. With the emergence of consolidated centers, however, such as Gulayan sa Barangay, Farmers’ Market and Barangay Bagsakan, farmers were given alternatives on where they can sell their produce. Barangay Bagsakan Centers allow farmers to sell their produce without going through different intermediaries. The role played by this system was intended to benefit the small-scale farmers. This study aimed to detemine the effect of Barangay Bagsakan System to vegetable farmers’ profitability in Davao City, Philippines using Propensity Score Matching. Moreover, other factors such as Barangay Bagsakan attributes were included to determine what affect farmers’ decision to supply to these kinds of outlets. Results showed that farmers were encouraged to sell their produce to Barangay Bagsakan due to convenience of its location. Furthermore, farmers who supply to Barangay Bagsakan tend to get lower income compared to those who supply to other market channels. This is because a Barangay Bagsakan has low capacity to purchase farmers’ vegetables. It was recommended that the government provide cash loans to Barangay Bagsakan so the latter would be able to buy larger volume of vegetables. Another option is for a collaboration with institutions like supermarkets and non-government institutions to be established.