Supply Chain Analysis of Carmelado Production in Milagros: A Framework for Product Development at DEBESMSCAT

Abstract

The Bicol region, particularly Masbate, is home to the renowned Carmelado producers, who play a significant role in the province's cultural and economic value. However, there is limited research on the supply chain of Carmelado production, which is crucial for the province's cultural and economic value. So, this study surveyed 18 Carmelado producers in Milagros to look at how the supply chain works and to find out its strengths, weaknesses, opportunities, and threats, using descriptive, thematic, and SWOT analyses. The study simplified the supply chain of Carmelado into three key sections: upstream, midstream, and downstream. In the upstream phase, there is a high availability of raw materials for the product in the market, and competent producers are capable of modifying the product's features. However, this process appears to weaken the product's cultural aspects. Whereas, in midstream, it was discovered that most producers utilize the same procedures. Roasted Carmelado has a shelf life of two weeks, making it more profitable to export. Some producers have also adopted digital tools to enhance operational efficiency. The product is managed downstream through various distribution channels, including direct-to-consumer, retail, wholesale, and online. Logistics are organized through physical stores, e-commerce platforms, and partnerships with retailers and distributors. Moreover, they offer customization of their products to meet consumer preferences. That does, however, reduce their market advantage. Producers have many key strengths, including many buyers and a relatively small number of sellers, diverse input suppliers, the First-In-First-Out (FIFO) system for inventory management, and partnerships with distributors and retailers. However, weaknesses in Carmelado production include risks during heat or El Niño events, high costs, supply instability of new ingredients, a lack of quality control protocols, limited adoption of digital tools, and a reduced shelf life of softer variants. Furthermore, DEBESMSCAT can maximize opportunities while minimizing the threats in the Carmelado production by fostering collaboration with raw material suppliers and the community, securing reliable raw materials, improving efficiency, increasing trade fair visibility, attracting investors, and standardizing packaging and production methods. Overall, the study strongly suggests that DEBESMSCAT should utilize the findings, as they provide a comprehensive analysis of Carmelado's supply chain structure and the strengths, weaknesses, opportunities, and threats associated with producing Carmelado in the market. However, the researcher acknowledges the paper's limitation to qualitative analysis, specifically supply chain mapping and SWOT analysis. Therefore, the study recommends that future studies conduct a value chain analysis or other types of analyses on Carmelado production to further explore its market position and advantages beyond the Masbate community.