THE SAMPAGUITA INDUSTRY: THE ENDGAME AND ITS POTENTIAL

Merwin Jansen N. Ladringan

AAE 151-E

April 29, 2019

A paper submitted in partial fulfilment of the requirements in Agricultural Economics

151 under Prof. Cabangbang, 2nd Semester, AY 2018-2019.
Abstract/Executive Summary
The policy aims to boost the sampaguita industry. Specifically, the policy aims to improve the
supply of sampaguita, improve the welfare of the growers and traders, and point out the importance
of institutions.
According to Reodica (2017), sampaguita growers are decreasing in numbers resulting to a
decrease of supply and inefficiency of the supply chain. This resulted to an increase in the cost and the
increase of the selling price. Due to the increase, sampaguita garland-makers are being also affected
since most of them are from the low income class. This decrease in number were result from the
urbanization of many agricultural lands. In addition, it was also because of the lack of support from
the government and different institutions. In the long run, sustainability was found out to be the main
problem. Sustainability not just in production but also in our tradition and our customs as Filipinos.
The current policy aimed to help farmers from Pampanga by giving them access to financial
help. They also gave trainings that aims to provide additional knowledge to growers. Although there
is support, the policy is not enough to make the sampaguita industry sustainable. Therefore, the policy
recommendation provided some actions that may be adopted.
First off, access to financial institutions since capital plays a big role in agriculture. Next,
Integrated Liveihood programs provided by the Local Government Unit is also encouraged to promote
sustainability in the industry. This aims to provide additional jobs and products. Third, in partnership
with the Department of trade and industry, they should provide seminars and workshops that aims to
increase the competence of their product. Lastly, inputs will also be provided. Stem cuttings will be
given to growers and urban farming will be promoted to help increase the shortage of supply of
Sampaguita.
In the policy paper, it is concluded that there is a big need for sampaguita industry to grow. If
the policy is implemented, it would not only increase the supply of sampaguita but it will also minimize
the marketing costs, making the supply chain of sampaguita more efficient with more market
participants benefitting and the industry assured of sustainability.
Problem
Sampaguita (Jasminun Sambac) is a tropical flower that has a sweet, heady fragrance. This
flower blooms singly or as a bunch at the top of the branches. In the Philippines, sampaguita is the
national flower since it symbolizes dignity and simplicity that embodies the Filipinos. In addition,
according to De Guzman (2001), as cited by Reodica (2017), these flowers are made into garlands that
serves as decorative ornaments, religious adornments, offerings, vigils, and tokens.
Sampaguita is produced from different parts of the country some of them are San Pedro,
Laguna Cabuyao, Calamba, Calauan, Pila, Sta. Cruz, and Victoria in Laguna; Carmona in Cavite;
Atimonan and Lucena in Quezon; and Lubao and Floridablanca in Pampanga (De Guzman, 2001).
Therefore, sampaguita farming has been a major source of livelihood for many of the families in the
area (Madrigal, 2005). In addition, it is also considered as one source of income for Filipinos who are
selling sampaguita garlands. According to De Guzman (2001), the simplicity and smallness of the
flower belie the magnitude of dependence of people, mostly from the low-income bracket group, as
a vital source of income.
Due to the rapid and continuous urbanization of the agricultural lands in the Philippines, the
number of sampaguita farms has decreased. The numbers of sampaguita growers are decreasing due
to conversion of commodity, from sampaguita into poultry and orchard farms, and conversion of
agricultural land into residential areas, dumpsites, and industrial sites (Sanchez, 2010). This
urbanization did not just affected those people who are engaged in production but also those people
who are engaged in trade. In addition, the cost of inputs like fertilizers and necessary pesticides are
also one if the reason why some are not engaging in sampaguita production. In San Pedro, the
Sampaguita Capital of the Philippines, only three farms are still into sampaguita production.
Despite having only three sampaguita farms in San Pablo there are still individuals who
engages in sampaguita business. This implies that sampaguita is a livelihood for people especially to
those marginalized. According to Sanchez (2011), no matter how miniminal the amount the seller
receives, it still helps them meet their part of their basic household needs. Sustainability of the
sampaguita industry is the major concern. Alongside the farmers and the traders, our culture will also
be affected in the decline of sampaguita production.
Formation of a good policy will not just improve the smapaguita industry, it will also improve
the welfare of the growers and the traders. It will also improve the tradtion and customs of Filipinos.

Current Policies
The Provincial Government of Pampanga along with the Department of Science and
Technology, Department of Trade and Industry, and Department of Labor and Employment agreed to
boost the industry in the towns of Floridablanca, Guagua, and Lubao through financial help and
trainings. This initiative of the government aims to solve the problem of farmers who are in need of
additional capital. It is supported by different research institutions and local government units. It also
aims to increase the level of competence of their product through the trainings.
Although it is good that there is an initiative on the local government, it is not enough to make
the sampaguita sustainable. First off, is the financial support given by the government enough for the
farmers? Sampaguita buds, fertilizers, pesticides, and sprays are some of the materials regularly
needed for the production of sampaguita. Second, the scope of the policy is only for those farmers
residing in Pampanga. How about the other places like San Pablo? Collective action should be done to
save the sampaguita industry.
There are no nationwide policies yet on sampaguita.
Policy Recommendation and Action Plan
To help boost the sampaguita industry in the whole Philippines the government and different
institutions should create programs that will benefit sampaguita growers and traders. Local
Government Units can create an organization or an association that aims to have integrated livelihood
programs that can help sustain the sampaguita industry.
The Department of Trade and Industry should create country wide trainings and seminar that
can increase the competitiveness of sampaguita traders and growers. The seminars and workshops
will focus on traders who are experiencing hardships in selling only sampaguita garlands. This part of
the policy will discuss the importance of market knowledge.
Capital plays a major role in any agricultural venture. Therefore, growers should have access
to financial institutions that can provide credit with reasonable interest rates. The financial institutions
shall also provide seminars on how to utilize there capital. Financial support will also be given to
traders to improve their transactions in the trade of sampaguita.
Since supply of sampaguita is also a problem due to the decrease of sampaguita farmers, the
Department of Agriculture can provide stem cuttings. Marcotted stem cuttings are more expensive
but they flower ear;ier (Rimando, 2003). The department of agriculture and local government units
can promote urban agriculture. Urban agriculture can be defined shortly as the growing of plants and
raising animals in an urban setting. Since sampaguita does not only provide additional income as it
also serves as decoratives material, they are considered good candidates for urban agriculture.
To make this policy into reality, budget from the government is needed. If the policy is
implemented, after a year it is expected to see small changes in terms of the supply of sampaguita.
After 4 years, after the training and workshops it is expected to already improved the welfare of the
growers and traders.
For the policy to be effective, different institutions like DOST, DOLE, DTI, LGUs, Cooperatives,
etc., should work together and recognize that boosting the industry does not only help the growers
and the traders but it will also help increase the awareness of Filipino youth to the countries culture.
Implementing this policy would not only increase the supply of sampaguita but it will also minimize
the marketing costs. Minimizing the marketing costs alongside the increase of supply will make the
supply chain of sampaguita more efficient with more market participants benefitting and the industry
assured of sustainability.
Summation or Conclusion
The sampaguita, aside from being the Philippines national flower, is very important since it
serves as a livelihood for traders through sampaguita garland-making. In addition, this industry is not
only viewed as a source of income for individuals but it is also viewed as a tradition and a custom
handed down from different generations.
The problem stated were from the study of Reodica entitled Supply Chain Analysis of
Sampaguita Garlands in San Pedro, Laguna, 2017. It showed the dying industry of sampaguita and the
problems encountered by the growers and the traders. All information used to formulate the policies
were from secondary data. Recommendations were supported by the study of Reodica (2017).
The fact that there are no nationwide policy for sampaguita shows the support of the
government in this industry. The current policy that is implemented in Pampanga was a nice initiative
although it is also not enough. The current policy aims to solve the problem of sustainability of the
industry. The problem with the policy was it was not enough, supply of raw materials should also be
considered.
 The lack of government support for this industry resulted to a decrease in supply and a dying
industry. The current state of the sampaguita industry showed the condition of the agricultural sector
in the Philippines, unsupported.
The policy recommendation suggests to have financial institutions, trainings, seminars, supply
of raw materials, and support from different institutions. This policy recommendation aims to increase
the supply of sampaguita, improve the lives of traders and growers, and continue the tradition and
custom of the country.
It is a fact that there is a big need for support in the sampaguita industry. If the policy is
implemented, it would not only increase the supply of sampaguita but it will also minimize the
marketing costs, making the supply chain of sampaguita more efficient with more market participants
benefitting and the industry assured of sustainability.

References:
(August, 2017). Philippines Business, Financial And Economic News | Inquirer.net. Sweet smell of
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DE GUZMAN, C. (2001). Sampaguita livelihoods of peri-urban Metro Manila, Philippines: Key
actors, activities, benefits, and constraints. Retrieved from:
www.citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1506
OFFICIAL GAZETTE. (2013). Republic Acr No. 10420. Retrieved from:
https://www.gov.ph/2013/02/27/republi-act-no-10420/

REODICA, T. J. (2017). Supply Chain Analysis of Sampaguita Garlands in San Pedro, Laguna, 2017.
Undergraduate Thesis. Department of Agricultural Economics. College of Economics and
Management. UPLB.

RIMANDO, T. J. (2003). Sampaguita Production. In: Ornamental Horticulture. A little giant in the
tropics.

Sampaguita - The Flower Expert - Flowers Encyclopedia. (n.d.). Retrieved from

https://www.theflowerexpert.com/content/aboutflowers/tropicalflowers/sampaguita