Chapter 3 MARKET ASPECT
This chapter presents and examines the demand for the project’s proposed outputs, the possible levels that they ought to be produced, if warranted, the prices at which they may be sold or dispensed to the beneficiaries, and, in general, the distinct characteristics of the project’s identified markets that could represent needs which the project could address. 3.1 General Market Description The market identified for the project’s three components is broken down into two general groups: (a) the local residents of Sarangani; and (b) the tuna fishing industry that thrives in the rich fishing grounds of the Celebes Sea just off the country’s border with the Republic of Indonesia. To the residents of Sarangani the project represents the realization of a long-felt need for a port facility that presents less risk to navigation and a hub that would stir the island-municipality’s sleepy economy to action. To Southern Mindanao’s thriving tuna industry, the project represents an opportunity to stretch each fishing venture’s margin of profitability by providing a forward base for provisioning, or emergency re-provisioning, and shelter. The market presents both distinct and complementary niches for the project’s three components. These niches are more particularly described below. 3.1.1 The Multi-Purpose Port Component The project’s multi-purpose port component aims to serve the broadest spectrum of the identified market. It will be the basic seaport that will service Sarangani’s commuting public, the inter-island commuter service being the main means of transportation to and from the island municipality. The same importance will be played by the port on the municipality’s agriculture, which is dominated by copra production. At present, the inter-island commuter service doubles as the means out to the market for this industry. The port will also serve the tuna fishing industry as a provisioning depot and as a rest and recreation haven where fishing vessels may seek refuge in times of bad weather. The establishment of the ice plant component would be a critical incentive factor in drawing this sub-market to the port. Finally, in keeping with the present pier’s utility, the port is expected to continue serving the local residents in terms of providing a landing facility for their bancas and pumpboats, which constitute the main means of transportation within the Sarangani island group.
The Ice Plant Component The ice plant component primarily aims to cater to the block ice requirements of tuna fishing ventures, while mostly based at General Santos City, invariably traverse the island municipality’s waters enroute to the common fishing ground in the Celebes Sea. This sector represents a projected 99% of the ice plant’s market. The establishment of the ice plant at Sarangani will bring significantly closer to this sub-market its source for the all-essential ice, the main medium for the preservation of the fish harvest. The development of the multi-purpose port component is itself vital to the viability of the ice plant. The present piers at Poblacion Mabila in Sarangani present a lot of navigational risks for the fishing vessels. Secondarily because of the meager projected demand, the ice plant facility will also serve the domestic ice requirements of Sarangani’s local community.
The Warehouse Component Designed to mainly serve the local economy’s copra industry, the municipality’s principal agricultural produce, the project’s warehouse component will also provide transient shelter for the regular bulk procurements of the town’s business and household communities.
Demand for the Project Availability of Data and Methods Used in Data-Gathering The study examines the project’s identified market according to the specific need that each project component aims to address. To achieve this, a separate demand analysis is undertaken for each component. A...
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