A Research Report on:

Sustainability of Economic Activities covering

Rural Areas in Butuan City

A Project of:

Engr. Ronnie Vicente C. Lagnada

City Mayor

Under the supervision of the City Planning and Development Coordinator

Mr. Vicente C. Lagnada, Jr.

Officer-in-Charge
City Planning & Development Coordinator

Research Bureau Team:

Team Leader: Eduardo I. Sanque

Team Members: Proserpina R. Abao

Arl C. Betantos
Carra S. Magarro
Joanna Therese P. Mosende
 TABLE OF CONTENTS

Page
Nos.

A. Introduction 1

B. Executive Summary 2

C. Legal Basis 3

D. Current Public Urban & Rural Market Status 6

E. Supply Chain of Commodities 17

F. General Observation 19

G. Summary of Findings 24

H. Recommendations 26
A. INTRODUCTION

Honorable Engr. Ronnie Vicente C.

Lagnada aims for a sustainable
economic activity for both urban and
rural areas. It is viewed as the key player
of the sufficiency on supply of
commodities and creation of
opportunities to local farmers and small-
scale enterprise in Butuan City.

With this, the City Mayor

commissioned a Research Team to
conduct study on the actual situation of
all economic enterprise and among others and determine the conceivable
approach which will help robust economic activities to achieve sustainable,
productive, and eventually self-sufficient while increasing opportunities to local
farmers and small-scale enterprise.

The Pre-Feasibility Study (PFS) hopes to truly serve its purpose and will be
useful enough for the development of a better, more reliable, more productive
as well as a profitable enterprise according to the plan and purpose of the
Honorable City Mayor of Butuan: Engr. Ronnie Vicente C. Lagnada.

Page | 1
B. Executive Summary

Rural markets play a vital role in agricultural survival. They facilitate

market opportunities for the subsistence of local farmers and small enterprises.
Thus, rural markets significantly steer improvement and sustainability of the
whole economic cycle. In relation to this, it is essential to study the intricate
relationships encompassing local economic sustenance.

The goal of this study is to make a better public market that shows
respect to Butuanons’ who are working to earn a living from their sweat and
blood just to buy their daily necessities either in Main Markets or Satellite
markets of Butuan City. This is done through comprehensive assessment and
evaluation of rural market activities. The scope of this study encompasses
business relationships and transactions of economic players.

The objectives of this study are: i. to provide a focal point for rural
activities where farmers, traders, and private venture can meet and trade in a
convenient and hygienic market establishment; ii. Increase retail competition
by providing equal opportunities for both farmers and traders in legally based
price ceilings; iii. Low-cost retail price. This study also aims to help farmers
establish customers’ patronage of the locally produced agricultural products.
In addition, it seeks to attain economic sustainability through lessening the pre-
and post-harvest loss of the local farmers.

Page | 2
C. Legal Basis: Operation and Management
C.1. Sanitation Code of the Philippines

There are several enabling laws from which a public market conform its
operation and management. The standards on construction of public markets
and abattoirs are prescribed in Section 34 under Chapter IV found in
Presidential Decree No. 856 otherwise known as the Code Sanitation of the
Philippines.1 The said code stipulated that the Construction of markets and
abattoirs shall conform to the standards prescribed by the Department of
Health. These standards shall be set along the following guidelines:

1. Suitability of site insofar as elimination of nuisance conditions and

prevention of contamination are concerned;
2. Availability of ample water supply for cleaning;
3. Accessibility of adequate drainage facilities;
4. Durability of construction to protect vendors and customers from
hazard and expose to the elements; and
5. Facilities for sanitation maintenance, such as cleaning and elimination
of harbourages of vermin.

C.2. Tax Code and Market Code of Butuan City

The City Government of Butuan also issued Ordinance 1377-A also
known as Butuan City Tax Code of 1974 from which operation and

management of public markets should comply.2

Paragraph b of section 56 under Chapter 4 stipulated Hygiene and

Sanitation in the Public Markets. It states that the Public Markets in the City of
Butuan must be kept clean, healthful, hygienic, and sanitary. It must have
adequate lighted and ventilated, the ground surface must be paved well and

drained properly. 3 The Butuan City Tax Code of 1974 and the Code of
Sanitation formed part in the promulgation of SP Ordinance 2213-1999 which

1 RBu Ref. Book Page C. Sanitation Code

2 RBu Ref. Book Page A. Local Tax Code
3 RBu Ref. Book Page A. Local Tax Code
Page | 3
was amended as S.P Ordinance 3622-2010 also known as the Butuan City
Market Code of 2010. It is then referred to as a centralized Market Code of
Butuan City. It should be noted that the Butuan City Market is specifically for
public markets established by the City Government of Butuan rather than all
public markets in Butuan City. However, looking through the said code, there
are general provisions that may apply to all public market within the city
premise regardless of its management and mode of operation. These

provisions are as follows:4

1. Chapter II, Section 4 – Creation of Market Management Team

- Primary function of the committee shall be the ensuring that the
rules and regulations are being implemented, enforcement of the
regulations and proper Sanitary inspections are being executed.
2. Chapter V - Weight and Measures
The Market Management shall ensure that all weighing scales and
other devices used in the public markets as well as establishments shall
pass the standard inspection.
3. Chapter VI – Meat and Fish
Article II - Meat Section and Display
-All meats displayed in the market stalls for whatever reason
or purpose shall be properly tagged to correctly indicate the name, kind
and quality and shall be placed conspicuously before the public and
shall not be obstructed or covered from view by anything either in part
or full.
4. Chapter VII - Classification and Collection of Fees
1. Establish standard regulatory fee for every kind of commodity.
2. Reasonable rental fee
5. Chapter VIII
Prohibited acts in the Public Market

4. RBu Ref. Bk. Page B. Market Code

Page | 4
 Public Markets otherwise established by the City Government is significant for
the economic sustenance of economic players such as farmers and local traders.
These economic players in turn, constitute a significant part even for the
sustainability of the public market established and managed by the City
Government. However, such part is inconspicuous unless trace and analyze the
relationship including all other economic players. In relation to this, there is a need
to look through the public markets not established and managed by the City
Government along with other economic players constituting therein.

C.3. Sanggunian Barangay Ordinances

Table 1. Ordinances Supporting the Management and Operation of Existing
and Operational Barangay Public Markets

Sanggunian Barangay
Barangay Title
Ordinance
SB Ordinance No. 01- An Ordinance Providing For The Revenue Code
Of Barangay Libertad, Butuan City, And For
2019 5
Other Purposes
A Resolution Waiving the claim of the City
Libertad Government Over Lot No. 429, Cad 084 of the
SB Ordinance No. 803- Coastal Survey of Butuan City, situated in
1996 6 Barangay Libertad, Butuan City, in favor of the
present occupants/ claimants therein, and for
other Purposes.
A Resolution Declaring SB Ordinance No. 080-
SP Resolution No. 136- 2021 Series Of 2020 of Barangay Masao, Butuan
City, Providing for their revenue code of
20217
Barangay Masao, Butuan City, and for other
purposes
MASAO An Ordinance Providing for the Revenue Code
SB Ordinance No. 080-
of Barangay Masao, Butuan City, and for other
2020 8
purposes
SB Ordinance No. 03- An Ordinance imposing occupancy tax to block
2009 9 tiendas stalls occupants
Resolution authorizing The Punong Barangay
SAN Barangay Resolution No Hon. Raul P. Carampatana, to enter into
VICENTE 137-2005 10 agreement between Barangay San Vicente
Public Market operators

5 RBu Ref. Book Page J. Received documents from Brgy. Libertad; SB Ordinance No. 01-2019
6 RBu Ref. Book Page J. Received documents from Brgy. Libertad; SP Resolution No. 803-96
7 RBu Ref. Book Page L. Received documents from Brgy. Masao; SP Resolution No. 136-2021
8 RBu Ref. Book Page L. Received documents from Brgy. Masao; SB Ordinance No. 080-2020
9 RBu Ref. Book Page L. Received documents from Brgy. Masao; SP Ordinance No. 03-2009
10 RBu Ref. Book Page O. Received documents from Brgy. San Vicente; Resolution No. 137-2005
Page | 5
 The above table shows that there are only three (3) barangays having
enabling laws. It should be noted that none of these barangays provided the
status of property right for the lot area where market buildings are structured.
Barangay Libertad has the SP Resolution which the property right of the city
government was waived yet there is no title specific for the public market.11
Barangay Masao on the other hand, provided a declaration of title yet there
is no specific title for public market lot.12 Other barangays also claimed of
having property rights of their barangay yet title declaration like barangay
Masao or SP Resolution like barangay Libertad were not provided.13 Thus, exact
area measurement of the market lots was not identified. This is perhaps one of
the reasons why there are informal settlers beside the market vicinity like in
barangay Libertad.

D. Current Barangay Public Market Status

D.1. The Location of Existing Barangay Public Markets

Figure 1. The Location of Existing Barangay Public Markets

11 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Libertad

12 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Masao
13 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Masao
Page | 6
 Table 2. Location, Household, and Population
Location
Total Population Number of Households
BARANGAY
Latitude Longitude 2015* 2015*
Urban
Humabon 137 32
Leon Kilat 163 42
Ampayon 8.959810° 125.602865° 12,720 2,859
Tiniwisan 8.957453° 125.582010° 11,308 2,468
Urbanizing
San Vicente 8.905084° 125.547786° 16,187 3,437
Libertad 8.943976° 125.503424° 21,703 5,787
Holy Redeemer
7,267 1,693
(Langihan Public Market)
Rural
Dulag 8.825892° 125.533637° 2,047 505
Tungao 8.778492° 125.567510° 5,702 1,283
Masao 8.999507° 125.484329° 1,786 358

Butuan City has 10 out of 86 barangays identified with existing Public

Market. One (1) of the Ten (10) identified markets is known as the Langihan
Public Market which is established and managed by the city government. The
seven (7) identified markets are managed by the Barangay. Three (3) of which
are located in urban areas and the other four (4) are from Rural and Urbanizing
areas.14 The remaining two (2) are Brgy. Tiniwisan and Tungao has sustainable
market activity but not under the management of the Barangay.

D.2. Public Market Vicinity: Not Established and Not Managed

by the Barangay

There are barangays that allows the private vendors to display and sell
wet goods such as Fish, Meat, Vegetables and dry goods in their own space
which creates unfairness to the vendors renting in the marketplace established
by the barangay. Aside from that, most of these private vendors are causing
highway and pathway obstruction. Examples of this are Baan Riverside,
Tiniwisan, and Tungao. 15
The aforementioned barangays have no legally defined physical
structure to conduct market activities. These common places are generally
private lots occupying the barangay’s road shouldering. In this manner,
business holders of Barangay Tungao are selling in their respective private

14 RBu Ref. Book Page R2 Consolidated Gathered Data: Barangay Profiling

15 RBu Ref. Book Page R2 Consolidated Gathered Data: Operation and Management of Barangay Markets
Page | 7
properties wherein the business spaces are extensions of their respective
residences.16 On the other hand, some business holders of Baan Riverside are
renting lots where they established business spaces as an extension of their
residences just like the Barangay Tungao.17
The following photo documentations show the commercial activities for
wet, dry, and other merchandised goods in rural barangay areas despite the
absence of a market structure established by the barangay. It should be noted
that these barangays also supply its neighboring barangays from outside
boundaries.18 For example, Barangay Tungao is also the common market for
Barangay Manila de Bugabos, San Mateo, MJ Santos, and Dankias.19 It is
remarkable that the economic activities of these barangays appear to be
sustainable despite the absence of legally defined market structure
established by the barangay.

Road Obstruction Baan Riverside

Electric connection

Flood Prone
Tiniwisan No drainage

Tungao

16 RBu Ref. Book Page R2 Consolidated Gathered Data: Operation and Management of Barangay Markets
17 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Tungao
18 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Tungao
19 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Tungao
Page | 8
 D.3. Public Market Vicinity: Established and Managed by the
Barangay
The other barangay markets have physical structure yet contrary to the
rules and regulations stipulated by laws for public markets.20 The following
photo documentations highlight the praxis of the sample barangay public
markets.

Masao

Libertad

The business spaces have shown above highlights the unfavourable

situation of market vicinity. It is evident by the lack of proper drainage and risk
for flooding. Moreover, there can be road obstruction or road narrowing during
market hours. It is because some portions of the road are utilized as parking
space for customer’s vehicle. Part of the roads is also used during unloading of
commodities for sale by a business occupant. It is observed that electric
connection is not secured like in barangay Tiniwisan. This is the same with the
electric connection in Langihan Public Market.

20 RBu Ref. Book Page A. Tax Code and B. Market Code

Page | 9
 D.4. Market Management and Operation
The following table shows that there are only three (3) of the seven (7)
barangay-managed public markets have established an Economic Enterprise
Committee/Office. One (1) is on the City Economic Enterprise and the other
two (2) are in barangay level which are Ampayon and Libertad. The rest of the
barangays having market operations have no Economic Enterprise
Committee/ Office but are supervised by the barangay yet without standard
operating procedures and processes.21
Table 3. Current Operational Status

With With Brgy. Ordinance

Business Market Operated
BARANGAY market Economic Formulated for the
Hours Building by OCEE
activity Enterprise Market Purpose

Urban
6:00 AM –
Humabon Yes No Yes No None
6:00 PM
7:00 AM –
Leon Kilat Yes No Yes No None
5:00 PM
5:00 AM –
Ampayon Yes No No Yes Cannot be retrieved
6:00 PM
3:00 PM –
Tiniwisan Yes Yes No No None
6:00 PM
Urbanizing
San 5:00 AM – Barangay Resolution
Yes No No No
Vicente 6:00 PM No. 137-2005
5:00 AM – Revised Ordinance
Libertad Yes No No Yes
6:00 PM No. 01-2019
Holy
Redeemer
2:00 AM – S.P Ordinance 3622-
(Langihan Yes Yes Yes Yes
6:00 PM 2010
Public
Market)
Rural
SB Ordinance 03-
2009
SB Ordinance No.
Masao 8:00 AM – Yes No No No
080-2020
6:00 PM
SB Resolution No.
136-2021
6:00 AM –
Dulag Yes No No No Cannot retrieve
6:00 PM
6:00 AM –
Tungao Yes Yes No No None
6:00 PM

21 RBu Ref. Book Page R2 Consolidated Gathered Data: Barangay Profiling

Page | 10
 D.4.1. Non-Operational Market Structure
The economic activity of Barangay Nong Nong and San Mateo
does not take place in a market building although these barangays
have market structure sponsored by Department of Social Welfare and
Development (DSWD) through Sustainable Livelihood Program (SLP).
However, these market structures were non-operational because of
some concerns.

No Ceiling

Brgy. San Mateo

Bunk
Houses
Elevated
Brgy. Nong Nong

There is a common problem that affects the operation or functionality of

the Market Building that are funded by the DSWD-SLP. The market structures
are not yet turned-over to the Association such as in the case of Brgy.
Nongnong, the Association is no longer active.22 Brgy. San Mateo on the other
hand, is planning to operate after the pandemic. 23
Generally, the market vicinity of established barangay markets; those
occupied by private vendors and from DSWD – SLP does not meet the
standards for a public market as generally defined by laws and regulations.24

22 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Nongnong

23 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay San Mateo
24 RBu Ref. Book Page A. Local Tax Code
Page | 11
It can be observed that there is no defined drainage, parking spaces, and
even comfort rooms. The elevation of the Market Building is not convenient to
the vendors. This upraised location is very difficult for loading and unloading of
commodities. Moreover, the site is not safe due to the absence of ramp or
pathway. Further, it appears to be narrow due to bunk houses of a private
construction company. It can be said that existing public markets appear not
to have a credible appearance when compared to the standards stipulated
by the law for a market structure or building. This kind of market appearance
can significantly affect consumer patronage.
It is observed in barangay Nong Nong and San Mateo that there are
private settlements within the market area. In San Mateo for example, there
are informal settlements within the market lot.25 Accordingly, there are houses
made of hard materials. The presence of illegal settlers is prevalent to most
barangay public markets.
The Barangay Tungao on the other hand, is currently constructing its
market structure where vendors selling in their respective residences can
occupy or rent a space.26

Brgy. Tungao

Private vendors are open to the possibility of transferring to the future

market structure.27 However, they would only transfer if all of the private
vendors would also transfer to the new market building.28 This is contrary to the
preference of most private vendors in Baan Riverside. Most of these vendors
are not open to transferring in case there would be a new established market

25 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay San Mateo
26 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Tungao
27 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Tungao
28 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Tungao
Page | 12
building.29 The major reason is convenience in doing business activities by
business owners.
It is noteworthy that rural barangays have potential for economic
advancement if facilitated systematically. An example of this, is Barangay
Maguinda. The said barangay is planning to establish a market structure to
facilitate economic activities.30 The following is the proposed location where
barangay Maguinda is planning to build its public market.

Barangay Maguinda
1

D.5. Sustainability Status of Existing Barangay Public Market

The economic activity of business holders operating in public markets
established by the barangay and those established by private residents
appear to have a sustainable economic activity. It is prevalent that these
business holders are surviving despite concerns on market vicinity and/ or
operation and management. This is evidenced by the length of business
operation.31 It was found out that these business enterprises have been
operating for a longer period of time.
The following tables highlight the market and other related fees
collected in barangay markets. It shows the revenue sources of barangay
markets. It also shows a sample revenue collection of barangay Ampayon
which forms part of the evidences that barangay markets are having
economic sustainability.

29 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Baan Riverside
30 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Maguinda
31 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Baan Riverside
Page | 13
 Table 4. Rental Fees
Promotion in
Rural Market Section Rental Fees Stall/ Table Size Utilities Other market revenue
fees
Block Tiendas 500.00/ month 2m x 3m
Vegetable Comfort Room
20.00/ table
Section Php. 230.00 Urinate - 5.00
Masao None
Fish. Meat/ /month Bowel - 10.00
20.00/ table
Seafoods Shower - 20.00
Fruit Section 20.00/ table
Block Tiendas 1,200.00/ month 1.5m x 1m Permit for Tabo - 300.00
Vegetable Rentals for:
14.00/ table
Section Comfort Room Chair - P5.00/pc
Fish. Meat/ Urinate - 3.00 Table - P20.00/ pc
20.00/ table Php. 230.00
Libertad Seafoods Bowel - 5.00 Steel Fence -
/month
Fruit Section 20.00/ table PWD,SC,SP- P100.00/unit/day
Folding Bed Free Sound System - P500.00/
25.00/ table
Size day
Tabo-Tabo 15.00/ day Movable Tent - P200.00/
Paying as much
as Php. Varied per st all
depende sa na
Tungao 3,000.00/ month None None
provide sa
to private privat e owner
owner
Varied per st all
depende sa na
Dulag None None
provide sa
privat e owner
Php. 40.00- Approx. 1.5m x
Ampayon None Comfort Room None
50.00/day 1m
Approx. 1.5m x
Tiniwisan None None
1m
Varied per st all
Php. 100-200/ depende sa na
Baan Riverside None None
month provide sa
privat e owner
Php. 600.00/
San Vicente Approx. 2m x 1m None None
month

The above table presents the rental fees that business holders can pay. It is
noteworthy that barangay Tungao has the highest rental fee even though
the said barangay is rural in political boundary and urban in its economic
activity.32 The said rental fee is quite high compared to Ampayon and
Libertad which are highly urbanizing in economic activity. It should be noted
that these rental fees do not have a clear basis in setting its amount.33 This
implies that there is a need to reconsider enabling laws particularly in setting
rental fees. There are private vendors in barangay Tungao, Baan Riverside,
and Tiniwisan who are renting spaces of private properties.

32
RBu Ref. Book Page R2 Consolidated Gathered Data: Barangay Profiling
33
RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Ampayon
Page | 14
 Table 5. Estimated Collection Report

No. of
Rate Rate per Estimated Estimated Total Collection
Barangay Section Size Tables/
per day month Monthly Annual generated from
Stall
Collection Collection stall rentals
1.2192m x 1.2192m 2 60.00 3,600.00 43,200.00
Left wing
(formerly ground
1.2192m x 1.2192m 7 20.00 4,200.00 50,400.00
space and/ or 1.2192m x 1.2192m 5 40.00 6,000.00 72,000.00
ambulant vendors 1.2192m x 1.2192m 3 50.00 4,500.00 54,000.00
Libertad 1.2192m x 1.2192m 1 30.00 900.00 10,800.00 525,720.00
Meat and Chicken 1.8288m x 1.143m 7 15.00 3,150.00 37,800.00
Fish 1.8288m x 1.143m 12 15.00 5,400.00 64,800.00
Vegetables, Eggs,
1.8288m x 1.143m 29 8.00 6,960.00 83,520.00
Dried fish
Block Tiendas 5.4864m x 4.8768m 13 700.00 9,100.00 109,200.00
Standard Stall
3m x 6m 7 600.00 4,200.00 50,400.00
San Vicente 50,400.00
Ground Space 3m x 6m 3 500.00 1,500.00 18,000.00
1 60.00 1,800.00 21,600.00
2 50.00 3,000.00 36,000.00
Kwek-Kwek 2 40.00 2,400.00 28,800.00
14 20.00 8,400.00 100,800.00
1 10.00 300.00 3,600.00
Buwaran 2 100.00 6,000.00 72,000.00
1 15.00 450.00 5,400.00
Painitan 2 20.00 1,200.00 14,400.00
1 40.00 1,200.00 14,400.00
Karenderia 6 20.00 3,600.00 43,200.00
Ampayon 1,067,400.00
1 50.00 1,500.00 18,000.00
Manokan 2 60.00 3,600.00 43,200.00
1 90.00 2,700.00 32,400.00
1 20.00 600.00 7,200.00
Isdaan 10 40.00 12,000.00 144,000.00
3 80.00 7,200.00 86,400.00
Karnehan 5 50.00 7,500.00 90,000.00
1 30.00 900.00 10,800.00
Gulayan 18 40.00 21,600.00 259,200.00
2 50.00 3,000.00 36,000.00

Barangay Libertad, San Vicente, and Ampayon have been requested

for annual collection report, but unfortunately these barangays have issues on
the succession of documents due to change of administration.34 The Research
Team resorted to make and estimation based on the provided list of
occupants, sizes/types of rentable spaces and rate per day excluding other
facilities of the different Barangay Public Markets.35
The above table implied that Barangay Ampayon have a greater
revenue generation compared to Barangay Libertad which has wider and
bigger population compared to Barangay Ampayon. It is because Barangay

34
RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Libertad
35
RBu Ref. Book Page R2 Consolidated Gathered Data: R2.4 Market of Urban Barangays
Page | 15
Libertad is collecting only a daily cash ticket rather than a stall rental as
practiced by barangay Ampayon. It is notable that both barangays do not
base its rental or cash ticket on stall sizes. It is remarkable that these two
barangays are both having economic sustainability despite collection
differences. It is however essential to consider other major factors that
significantly affect economic sustenance. One consideration is the supply
chain of commodities because sufficiency and security of commodities
significantly affect price and patronage of customers and consumers. In
relation to this, it is essential to look into the sources of local commodities and
the minimum price mark-up from primary source up to the consumers.

D.6 Collection Report

The following illustration is based on the barangays having established
Market Operation and management. These barangays are Ampayon,
Libertad, Masao, and San Vicente which have a common way of rental
collection.
Illustration of Collection Flow

Recieving of
Payment • Brgy. Treasurer
• Vendors directly issues official
pays to the receipts/ Cash
• Barangay
barangay Tickets to the
Treasurers
treasurer for vendors
recieves rental
monthly rental corresponding to
payments from
their amount
Payment of Stall the Stall holders/
paid
Rental Vendors
Issuance of Official
Receipt / Cash
Tickets

The mode of payment depends on the amount of rental and the

location/ section of the business space rented. For example, for barangay
Libertad, occupants in block tiendas pay monthly rental fee to the collector,
while stall occupants pay daily rental collector.

Page | 16
E. Supply Chain of Commodities
The relationships between economic players are bidirectional. In this
manner, local farmers bring their farm products in Langihan Public Market,
Taboan, and other highly urbanizing barangay markets such as Libertad and
Ampayon.36 Moreover, barangays such as Dulag exports some of their locally
produced agricultural products to other barangays such as Manila de
Bugabos, Tungao, Bansa (Celebes) and Sta. Cruz as well as in Manila and
Gingoog City.37 This is also true in barangay Tungao wherein traders from
Surigao and other places imports farm products from Tungao.38

Rural market vendors and local farmers bought products not produced
in their respective places from Langihan Public Market, Taboan, and
merchandise wholesaler in Butuan City.39 These products are essential for their
economic activities as well as personal necessities. These economic players
went to Langihan Public Market 2 or 3 times a week to buy commodities in bulk
order. 40

Figure 2. Bidirectional Relationships Between and Within Local Traders in a

Clustered Market

36 RBu Ref. Book Page R2 Consolidated Gathered Data : Consolidated Status of Barangay Markets
37 RBu Ref. Book Page H. Received documents from Brgy. Dulag
38 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Dulag
39 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Dulag, Barangay Tungao
40 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay NongNong
Page | 17
 Bidirectional relationship between traders within an area also exists. In
this instance, local farmers and traders within a barangay patronize
commodities for sale within their barangays which are not bought in other
sources such as Langihan or other wholesalers. Most of these commodities form
part of their personal necessities which are either not bought in Langihan and
other wholesalers or bought commodities run short. This illustrates an intricate
relationship within economic players which forms part of economic
sustenance and survival in a barangay.

The above illustration implies that relationships between and within these
economic players sustains economic survival between each other. There is also
an expanded trading relationship between other places which exhibits much
economic potential if systematically facilitated. It is evident by trading of local
products in places outside Butuan City. It should be noted that the
aforementioned trading methods and relationships are already existing since
time immemorial.41 From this point, it can be said that economic activities of
local farmers and traders are sustainable given its existence throughout many
years.

It can be observed that commodities in Langihan and Taboan and

other highly urbanizing barangays have several commodity sources. Places
such as Surigao del Norte, Gingoog, Cagayan de Oro, and Davao City are
one of the sources of commodities sold in Butuan City. One of the product
sources of Cagayan de Oro are Claveria and Bukidnon. This implies that prices
of some commodities sold in barangay markets are increases due to
middlemen. These commodities are those not locally produced such as
potatoes (Solanum tuberosum)

41 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Nongnong

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F. General Observation
The presented illustrations imply that there are two major market
transactions involved in local economic activity. One is between the local
farmers and traders. These traders are the middle men for the second kind of
market transaction. The second market transaction is between the traders and
the consumers. These consumers buy commodities in barangay markets as well
as in the City Government’s market which come from different sources. Most
of these commodities have higher markup prices when compared to
commodities bought directly to the local farmers.
The following observation are obtained from barangays having public
market operations especially those having a physical structure for market
activities may it be established by the barangay or the private vendors
themselves. The following findings are important not just for these barangays
with existing markets but for consideration of barangays who are planning or
have intentions to establish their respective public market operation.

F.1. Existence and Implementation of Enabling Law:

Imperative and Primary Antecedent
It appeared to be a norm that market operation has already
started without guiding rules and regulations or Sangguniang Barangay
Ordinance. Majority of barangays with public market do not have
guidelines for market management and operation.42 These barangays
are starting market operation prior to promulgation of market ordinance
(Narrative on Janauary 27, 2021).43 There are only two barangays who
provided Sangguniang Barangay Ordinance namely, Barangay
Libertad and Masao.44 Barangay San Vicente on the other hand,
provided the Barangay Resolution.45
The actual practice shows that enabling laws are not essentially
prevalent for successful market management and operation. It appears

42 RBu Ref. Book Page R2 Consolidated Data: Operation and Management of Barangay Markets
43 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Baan
44 RBu Ref. Book Page I. Received documents from Brgy. Libertad
45 RBu Ref. Book Page O. Received documents from Brgy. San Vicente
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 that market ordinance seems to be more of a theory rather than
implemented. This traditional notion leads to work performance out of
compliance and complacent work output.
Enabling law provides order because it stipulates a clear
boundary between allowed and prohibited actions. The lack of
common ground leads to disorganized and unsystematic market
management and operation. Thus, market transactions are adversely
affected which primarily leads to low quality work output and inefficient
service delivery. One of the major unfavorable effects when enabling
law exists only in theory is unsanitary and narrowed market vicinity as well
as disarrayed market area. Another is unstable stall rental which can be
changed in the absence of legal basis. In this manner, establishment of
space rentals does not have clear basis such setting stall rental based
on the kind of goods sold or the estimated income of the vendors. The
said practice appears to be inconsistent with existing laws. Barangay
Tiniwisan for example, does not have stall rental fee because of the
concept called “Buhi – Buhi System”.46Another reason is the lot that the
market vendors currently occupying is privately owned.
The lack of direction in a way that market management and
operation just sprouts from everywhere and goes out of nowhere is
evident in market vicinities along with how market transactions are being
carried. In this manner, disorganized and poor or complacent work
performance on market related transactions is prevalent resulting to lost
opportunities which would compromise public interest.
The lapses in enabling law is also observed in lack of price
regulation and enforcement occurring in economic activities of local
farmers and traders.

46 RBu Ref. Book Page U. Consolidated Narrative Report: Barangay Tiniwisan

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F.2. Actual Operational Structure: Absence of Appropriate
Focal Person and Questionable Work Values
The market management and operation of these barangays with
market operation do not adhere to an organized working structure. In
fact, there are only three barangays having economic enterprise
committee. However, even having an economic enterprise does not
guarantee an appropriate focal person for market transactions. This is
shown by lack of delineation of functions and responsibilities and/ or no
division of labor despite having an economic enterprise. Barangays rely
heavily on either secretary or treasurer for market transactions which
include but not limited to record keeping and accommodating requests
for market data or documents. An inappropriate personnel in – charge
results to conflicting interest and role conflict which has unfavorable
effect to work performance on market transactions.

One of the primary adverse effects of not having a right focal

person is unsystematic record keeping leading to inaccessibility or loss of
market documents. This concern leads to poor work performance which
is evident by losing request letters and questionnaires, inappropriate
and/ or incomplete responses on provided market questionnaire, and
poor reaction time on addressing requests for market documents. The
absence of focal person also means that no person can be held liable
thus complacent or low work performance is not a concern.

The lack of defined organizational market structure results to work

completion which relies heavily on personnel’s convenience rather than
public interest. It can be said from such point that fulfillment of duties
and responsibilities such as service delivery is not treated as business
transaction that should profit the people. The kind of work performance
does not justify the response time of barangays having economic
enterprise committee. The concerns on response time and work
performance is evident by longer extensions and incomplete and /or
inaccurate data provided to the research team. Perhaps, these
personnel do not know the opportunity costs brought by disorganized

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 working structure leading to poor or if not, worst reaction time. This kind
of work view and attitude hampers development and improvement
despite pure and constructive aims of the City Government.

F.3. Situation of Market Vicinity: Traditional Market

Appearance and Sanitation Condition
Ampayon is the only barangay having a deed of donation and a
separate lot title intended for public market establishment.47 Barangay
Libertad has only SP Resolution stating that the city government of
Butuan waived its right for an area measurement of 2.7626 hectares.48
Barangay Masao has only a mother title and is not separated or specific
for establishment of market structure. The other barangay both identified
as having public market and those having plan for establishing own
market did not provide lot title may it be a mother title or separated for
public market operation. Other barangays did not even provide any
proof of lot ownership nor justification for not submitting the lot title
requested by the research team.
The lack of legality for lot ownership puts the market operation in
an unstable position because market structure can be displaced even
if already established. There could be many adverse effects of not
having property rights over market lot. One is that the barangay cannot
oust illegal or informal settlers and ambulant vendors. These illegal settlers
can claim long-term occupation along with long felt desire to legalize
ownership. This leads to a narrowed market space and disarrayed
market vicinity compromising the comfort of both the business
occupants and customers as well as people living nearby. Thus, rules and
regulations for clean and serene vicinity cannot be enforced.
The existing markets and even proposed markets do not have a
serene and sanitary vicinity. One of the evidences is the absence of
defined parking area of most public markets. In this manner, customers
can park on any vacant space leading to untidy and narrow space.

47 RBu Ref. Book Page G. Received documents from Brgy. Ampayon

48 RBu Ref. Book Page I. Received documents from Brgy. Libertad
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 There are markets having a defined parking area but the space is small
to accommodate activity level of the market. Public comfort rooms on
the other hand do not give comfort to consumers. It can be seen that
most market comfort rooms are unsanitary and small. There are even
markets which do not have comfort rooms.
The waste segregation and disposal is inappropriate. An example
of inappropriate waste disposal is putting water and solid waste from fish
in a pail. 49 This can add mess and smell which attracts disease causing
insects. It appeared that the advantage and importance of proper
waste segregation is not appreciated. In relation to waste segregation is
the absence of appropriate drainage. It can be observed that existing
markets and even those nonoperational do not have appropriate
drainage. There are some which does not have a drainage where waste
water could flow securely and neatly.
The aforementioned situations give an unclean and disorderly
market vicinity. The appearance and smell of market vicinities gives an
impression that goods sold in the market are also unsanitary just like the
appearance of the market vicinity. It is because one can see flies freely
flying and hopping on goods openly displayed for sale. This scene is the
praxis since time immemorial. It can be said that most of existing markets
as well as the proposed nonoperational markets does not have a serene
and convincing appearance to consumers.
It appears that the barangay was unable to consider factors that
shape goodwill prior to constructing market structure. It seems that most
of these existing markets were built out of compliance without
considering attraction to customers to instill patronage. As a whole, the
kind of market vicinity showed that market establishment lacks evidence
based planning prior to market construction. The said lacking resulted to
unsanitary appearance which may also affect customers’ patronage.
The following are summary of findings which incorporates
situations and business transactions of economic players which include

49 RBu Ref. Book Page R1 Consolidated Narrative Report: Barangay Libertad

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 but not limited to local farmers, traders outside Butuan City, business
holders either operating in private properties or in a market structure
established by the government as well as related agencies that extend
support to local producers.
The following summary of findings includes the market situation
and transaction occurring between local producers and traders as well
as between traders and consumers.

G. Summary of Findings
The Private Vendors buys commodities from Langihan Public Market and
general merchandise from commercial distributor, Supplier, and retailers
with physical store/ building in the city district and these commodities and
merchandises are re-packed and sold in their respective barangays. The
goods sold in the rural areas has a higher value due to the additional cost
from transportation expenses and other incurred costs. Thus, the price
would vary if the commodity is bought directly from the producer or if
bought from the middleman. There are also situations wherein local farmers
are selling farm products in Langihan Public Market, Taboan, and other
highly urbanizing markets such as Libertad and Ampayon. It is noteworthy
that commodities sold in Langihan and Taboan come from different
sources such as Gingoog, Surigao, and Cagayan de Oro City.

There are barangays that consents the private vendors particularly those
who are selling wet goods such as Fish, Meat, and the like in their own space
creates biases to the vendors renting in a barangay marketplace. Such
considerations cause road obstructions.

Inappropriate waste disposal and drainage system gives unsanitary and

unhygienic appearance which is evident by undesirable smell and
presence of flies in market vicinity.

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 Most of the barangay Public Market, with or without market
building, has no regulation in market zoning and sectioning, Wet and Dry
goods are mixed up. Some vendors even sell fish and vegetables in one
stall. Some even occupy more than one (1) stall. Some vendors in the
rural markets do not display price tags on each consumer goods. Prices
vary on every stall. Most if not all meat vendors from rural areas are selling
“Backyard” meat products that does not undergo ante-mortem and
post-mortem to check the safety and quality of the meat to be sold.

The City Agriculturist Office was not able to comprehensively

capture the value-chain of the production per commodity per barangay
which is a significant data in determining the sufficiency of commodities
of the barangay and the city. It is also significant in measuring economic
sustainability. The only data available is the inventory per commodity. The
Department did not seize the economic chain from production of
commodities. The City Agriculturist is unable to record post-harvest loss of
a local products in each barangay. This implies that data gathering, and
analyses appears to be limited which leads to incomplete picture of local
product sufficiency.

Some of the rural barangays falls short in expanding their

development plans to improve or escalate the agricultural marketing of
their locally produced agricultural products. Some of barangays
depends on the available programs or projects offered by the City
Government and National agencies.

There is a lack of intervention from the government in supporting

the local farmers through legislative actions that should promote and
instill patronage of the locally produced agricultural products. There is
also the absence of intervention to maximize resources within a
community such as selling the local products in a common market to
promote equal opportunity and uplift social-economic stability of a rural
barangay.
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 Most Barangays have the potential to sustain economic
activities by providing farm products without the need to
outsource from other places. In fact, neighboring cities and
municipalities are obtaining their farm commodities from
Butuan local producers. There is also interesting relation
between barangay puroks in farm inputs such as fertilizers, in
example in Barangay Anticala, a farmer is selling his coconut
husk as an organic fertilizer to farmers in barangay Anticala.
The said coconut husk is a waste from copra production which
appears to be a waste to other farmers.

H. Recommendations

H.1. Administrative

1. The City/ Barangay must establish linkages from fitting National

Government Agencies, Cooperatives and Organizations to grant
assistance for Skills training for the farmers, fishermen, and livestock
raisers. Linkages should also be established for the improvement and
development of Agriculture infrastructure particularly in the rural areas
to increase productivity, yield, and sources of commodities.

2. There must be close coordination and monitoring between the

barangay and the association managing the operation of the rural
market.

H.2. Legislative

The City Government through the Sanguniang Panlungsod may impose

legislative actions/ regulations on the barangay level with these following
recommended actions:

Page | 26
1. There must be a Memorandum of Agreement between Barangay and
the Association that will manage the operation of the Public Market.

2. “Farm to Table” Program – The City Local Government Unit, Barangay

Local Government Unit, National Government Agencies, and
Cooperatives to procure rice from the smallholder farmers. The procured
commodity will be the distributed “Rice Allowance” of the personnel
instead of allotting cash that most of the time are delineated to other
purposes.

3. Encourage constituents to patronize the locally produced agricultural

products within the barangay to support the sustainability of the local
farmers.

4. Regulation on Price Control to promote consumer protection. Ensure

that the vendors transparently post the prices of the commodities and
must be regularly monitored by the DTI, DA, CGB thru BPLD.

5. To ensure public health and safety and to avoid ASF, Avian Flu, and the
like meat to be displayed and sold in the market, there must be daily
monitoring in the rural market.

H.3. Management and Operation

1. Strategic location for the proposed “Cluster Market”

Among the grouped barangays, the barangay with a wider
scope of economic activity and convenience in terms of geographic
location shall be determined as the host barangay. It must be agreed
upon by the composite barangay representatives knowing that there
are also barangays planning or interested to have market operation
for income generation. The identified barangay will be in-charged in
managing the operation of the market or “To be constructed
market”.

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2. Barangay must create a Committee for Economic Enterprise to ensure
the processes and management of the proposed market will be
implemented accordingly.

Proposed Economic Enterprise Committee

Barangay Council

Economic Enterprise Administrator

Record Keeper

Sanitation Officer Security Officer Collection Officer

Barangay Council
▪ The Barangay Council as the over-all supervisory particularly
imposition of fees and peace and order in the market operation;
▪ The barangay shall also

Economic Enterprise Administrator

▪ Responsible for over-all management and operation of the
economic enterprise;

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▪ Ensures all of the activities relating to the economic enterprise are
properly recorded and accounted for;
▪ Must practice transparency and accountability in managing the
enterprises covered.

Sanitation
▪ The Barangay and association must collaborate with The City Health
Office for setting the standards before Issuance of Health Certificate
on all meat Vendors.
▪ The City Health should monitor market activities in relation to
sanitation and hygiene of the market vicinity and the commodities
for sale. This should be done so that commodities are safe for
consumption in a way that patronage will be strengthened.
▪ The City Health should prepare and use a checklist in monitoring
market activities in relation to sanitation. The said checklist should
reflect the criteria of a sanitary and hygienic market as well as the
commodities sold in the market.
▪ The data after monitoring should be systematically kept as part of an
information management system.
▪ Regular Schedule of collection of waste must be strictly imposed.
▪ Proper solid waste segregation and disposal should be enforced.
▪ Ensure proper drainage for water waste as well as for rainwater.

Security
▪ Restraining of stallholders on overnight stay in the market premise.
▪ Selling of liquors/ with alcohol content beverages and drinking of
such within the market premise is prohibited and must be sanctioned.
▪ Illegal peddlers must not be tolerated. They can be encouraged to
avail stall to promote equality among stallholders if there are still
vacant spaces in a barangay market. However, there should be a
limit as to facilitating these illegal peddlers. It is because this can also
encourage more illegal peddlers to the point that market area would
be narrowed and crowded accommodating ambulant vendors.
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Record Keeper
• The Primary function of the record keeper is to ensure all documents
pertaining Ordinances, Activity Reports, Data and Collection Reports
are systematically banked.

Collection Officer
• Primary responsible in collecting the rentals and other fees imposed
of the Economic Enterprise.
• Ensure all the collections are all accounted for and recorded
accordingly in the journal.

The committee will be responsible for the selection of qualified

stallholders or vendors and harmonize the management of the market.
The committee will also craft the requirements and regulations to be
implemented on the market such as:

1. Location of the Proposed Market

▪ There must be easy access for deliveries to the market to avoid

producers conduct makeshift markets in more convenient
passageways.
▪ There must be a defined parking space for customers as well as
loading and unloading area for commodities.
▪ Primary and assembly markets should be close to public
transport facilities and preferably close to other commercial
and social facilities.
▪ Primary markets that are mainly retail should be close to where
consumers live so that it is convenient for them to go to the
market.

2. Standard qualifications for interested Stallholders.

3. Interested vendors must register on their respective barangays.

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 4. Schedule of Market Operation should be clarified.

5. Proper Sectioning and zoning of the market should be defined.

H.4. Economic Cycle within a Barangay

It is Highly Recommended that the City Agriculture to account in

the Research all relationship related to farm inputs such as in the case of
barangay Anticala. The results in the Agricultural extension research can be
included in their Plans, Programs, and Activities. In this manner the
outsourcing of farm inputs can be minimized while helping the local farmers
increase their income by maximizing the utility of their products.

H.5 The Proposed Public Market Scheme

The illustration below is an example of a proposed clustered market

which aims to facilitate market linkages and market assurance for local
products. In this manner, it would be convenient for local farmers to
promote and sell their products which should facilitate economic
improvement and sustainability in rural barangays. This would benefit both
the rural barangays and all related sectors for improvement and
sustainability of the whole economic cycle.

The following map shows the neighboring barangays which can be

part of clustered markets under barangay Amparo. It also indicates the
commodities produced in specific puroks of Barangay Amparo.

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 Barangay Amparo is comprised of seven (7) Puroks with potential
sources of commodities such as Rice and Corn, banana, falcate and
vegetables. These identified Farmers also conduct trading activities for
commercial and small-time enterprises.

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 Barangay Amparo, has no market structure but is a potential market to
its neighboring barangays namely, Bilay, Bitan-agan, and Bit-os. The following
table shows the agricultural activity of number of farmers and kinds of
products produced with corresponding lot area.

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 Brgy. Amparo Agricultural Products

Lot area for Agricultural Products(Hectare)

No. of Farmers Rice Banana Falcata Vegetables Corn
Purok 1 4 4
Purok 2 14 12 2
Purok 3 7 5 1
Purok 4 18 13 1 1 2
Purok 5 7 7
Purok 6 2 2
Purok 7 24 21 2 1

The above table implicates that rice is the highest produced product in
Barangay Amparo. It occupies the largest hectare for agricultural activity. This
may imply economic sustainability for rice production and instability in
vegetable production. There is a need to consider sources of livelihood in
barangay Amparo for economic sustainability.

Brgy. Amparo Socio-Economic Information

No. of
Type of Livelihood (Source of Income) Person
Farming 205
Fishing 10
Poultry 105
Carpentry 16
Professional ( ex. Doctor, Lawyer, etc.) 71
Government Employee 66
Private Employee 10
Vending 65
Formal/ Licensed Driver 85
Non-Licensed Driver 105
Barker 1
Porter 0
Masseur 5
Hose Helper 4
Electrician 15
Laborer 75

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 The Socio-economic information indicates that farming is the topmost
source of livelihood. Poultry and non-licensed driving are the second source of
income.
The other example of proposed market scheme is in Barangay Tiniwisan.
This barangay is viewed as potential for clustered market because of its
strategic location and economic sustainability despite operating in a market
vicinity and structure contrary to a standard public market.
Barangay Tiniwisan can be a market linkage for commodities such as
Rice and Corn, Hogs, Broilers, and Tilapia. The illustration of Barangay Tiniwisan
implies that Cabcabon, Bobon, and Tagabaca can drop and sell their farm
products in Barangay Tiniwisan either directly to consumers or to business
holders in Tiniwisan. Baan Km. 3 and Ampayon on the other hand can buy
commodities for sale from these clustered markets in Tiniwisan. Identified
Farmers belong to the clustered market under Tiniwisan also conduct trading
activities for commercial and small-time enterprises.
It is also important to consider the economic profile of barangay
Tiniwisan and its clustered markets to highlight its farm products. This can partly
assess sufficiency of supply in the market.

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 The proposed scheme will help the community make the market
activity more convenient through:
1. Providing a focal point for rural activities and the specific location at
which farmers can meet with traders;
2. Increase retail competition by providing a convenient place where
farmers can meet with consumers or market vendors;
3. Improve hygiene, if the existing market structure and marketing activities
are carried out in an unsanitary manner and;
4. Reduce post-harvest losses.

H.4. Proposed Concept for Assembly Market Area

It is recommended that an open-type market building is suitable

for rural markets to ensure proper ventilation is observed without using
mechanical ventilation. The proposed building shall impose standard
specifications such as the following:

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 1. Stable display tables with 2m x 2m size can be provided in
which the producers and seller layout their consumer goods be
displayed.
2. A half – meter (0.5m) r standard space in between the display
table
3. One point five (1.5) meter for the walkway in between sections
4. Sectioning and zoning must be applied.

The proposed market structure for farm products from local farmers
should have a clean and descent appearance in a way that gives a
credible and safe impression to commodities sold. It can be artistically lively
and attractive. The market vicinity should be clean and descent in
appearance in a way that there is convenient and ease in market activities.

H.5. Proposed Economic Activities

Following is the illustration of involved agencies with respective

economic activities related to the market linkage, promotion, and
assurance of local farm products. It implies that the local government
particularly the law making body, the City Agriculture and other agencies
along with the patronage of Butuanons to the local products are significant
in economic improvement and sustainability. Thus, systematic coordination
and constructive agreements between these agencies or sectors are
primarily important for the economic improvement and sustainability of
rural barangays and its respective farmers.

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Illustration of strengthening linkages to sustain economic activities
in Rural areas

LGU

LGU will set a guidelines

and regulations for the
Barangay Farmers procured commodities
that will promote
Agricultural and Aquatic The LGU will fairness and equality for
Farming, with large procure rice from both farmers and the end
volume production Smallholder users (Business Sectors,
farmers
Private Entities)

NGAs shall also engage

with Smallholder farmers
as to procuring the locally Clustered Public Market
produced commodities Vendors

Langihan Market/ BLGU

acquired agricultural
products will be so selling it
to rural markets/ barangays

NGAs (Regional Offices)

shall extend efforts in
assisting the promotion
of these smallholder
farmers

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The factors for economic sustainability are myriad and complex. One cannot
immediately expect high sales and sustainability once goods are available for
sale. Factors that significantly shape economic sustainability are product
sources, demand, prices, and goodwill of business enterprises or sellers.
Goodwill is the idea that the seller is providing a safe product when demanded
which utility of customer resources are satisfied. Thus, these factors should be
balanced and maintained amidst circumstances even the challenging factors
that may meddle along the course of business transactions. Imbalances and
absence in any of these factors may significantly affect customer’s patronage
thereby adversely affecting economic sustainability.

Thus, it is recommended that the Local Government together with the

fitting agencies shall have reinforced collaboration to support the local farmers
as well as business. The said collaboration should be maintained for a
sustainably prosperous economic activities of the City Government of Butuan.
enterprises

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