Objective 4

PROPOSED MEASURES TO REGULATE THREAT OF OVERSUPPLY AND PRICE VOLATILITY

This study was conducted to identify the factors that contribute to the oversupply and price volatility of
“lawlaw” fish in the Municipality of Bulan. This specifically aimed towards the formulation of proposed measures
that will serve as basis of the policy makers of Local Government Unit of Bulan in taking necessary actions, i.e.,
promulgation of ordinance and issuance of resolutions, so as to address the compelling issues in the oversupply and
price volatility of fish in the Municipality.

In order to realize this objective, the researcher conducted series of formal interviews with the respondents
in order to obtain all the relevant and primary data directly from the fishermen, fish brokers, personnel of the
Municipal Agriculture Office (MAO) and representatives of the Philippine Fisheries Development Authority
(PFDA). Data revealed that the declining demand of fish caused by the limited order booking from Sardines
factories and overproduction of fish during the peak season substantially contribute to the oversupply of “lawlaw”
fish in the Municipality. The price volatility of fish, however, is greatly affected by the operation and existence of
fish brokers in the fish markets which usually exercise control over fish prices in the marketplace being the one
which has direct access to the potential fish buyers. The very limited existence of the competition in the market
sphere is also contributory to the frequent fluctuations in the prices of “lawlaw” which adversely affect the income
of the fishermen.

Based from the issues raised by the respondents during the conduct of face-to-face interviews, the
researcher designed proposed measures intended for the resolution of urgent issues in the oversupply and price
volatility of “lawlaw” fish in the Municipality of Bulan. Hence, the researcher strongly recommends the adoption of
the proposed measures as stated below by the Local Government Unit of Bulan.

PROPOSED MEASURES TO ADDRESSS THE ISSUES ON OVERSUPPLY AND PRICE

VOLATILITY OF LAWLAW IN THE MUNICIPALITY OF BULAN

The Republic Act No. 7160 otherwise known as “The Local Government Code of 1991” mandates the
Local government Unit of Bulan to exercise such other powers and discharge such other functions and
responsibilities as are necessary, appropriate, or incidental to efficient and effective provisions of the basic services
and facilities. This directive is specifically enshrined in Section 17 (b.2) of R. A No. 7160 which provides that local
government units shall provide extension and on-site research services and facilities related to agriculture, fishery
activities, development of local distribution channels, preferably through cooperatives and enforcement of
fishery laws in municipal waters.

Under Section 16 of the same statute, local government units are granted with the authority to exercise the
powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or
incidental for its efficient and effective governance, and those which are essential to the promotion of the general
welfare. This section further provides that local government units shall ensure and support, among other things, the
enhancement of economic prosperity and social justice, promote full employment among their residents, maintain
peace and order, and preserve the comfort and convenience of their inhabitants. Hence, it is very clear from these
statutory provisions that the Local Government Unit of Bulan is legally bound to promote the general welfare of its
constituents, to ensure the economic prosperity of all its residents and most importantly promote social justice for
the benefit of all Bulaneños.

On the other hand, local government units are given also the power to establish its linkages with people and
non-governmental organizations under Section 35 of the Local Government Code. This sections states that local
government units may enter into joint ventures and such other cooperative arrangements with people's and non-
governmental organizations to engage in the delivery of certain basic services, capability-building and livelihood
projects, and to develop local enterprises designed to improve productivity and income, diversity agriculture,
spur rural industrialization, promote ecological balance, and enhance the economic and social well-being of the
people. This provision basically grants the Local Government Unit of Bulan the power to control and regulate the
business operations of private enterprises within this territorial jurisdiction.

With the above-cited provisions from R.A. No. 7160, it is very apparent that the Local Government Unit of
Bulan has competent jurisdiction over the issues on the oversupply and price volatility of lawlaw within its
dominion. The resolution of the identified dilemmas within the market arena falls exclusively within the control of
the Local Government Unit being the entity mandated by law to promote general welfare and social justice of its
people. The researcher being one of the constituents of the said municipality, humbly offers the following measures
that can be adopted or considered by the LGU of Bulan in crafting a policy that will eliminate inequity in the
distribution of wealth within the area so as to protect both the rights of the fishermen and the fish-broker sectors.

The proposed measures aim to regulate both the operation of fishermen and the activities of the fish brokers
in the Municipality of Bulan as specified below:

A. Measures to Counter the Threat of Over Supply of Lawlaw

1. Policy Creation through issuance of a Resolution by the LGU of Bulan

One way to regulate the fish production is by means of formulating a policy that can be
implemented through issuance of a resolution by legislative department known as the
Sangguniang Bayan of the LGU of Bulan. Such policy shall specifically provide all the guidelines
as may be deemed necessary for the purpose of monitoring the quantity of fish production as
well the trends in the demand and supply gaps of “lawlaw” particularly during the peak season.
The incorporation of these specific guidelines into a policy will give clear directions to fishermen
to strategize the fish production, hence, avoiding fish harvest in excess of the demand for a
particular period of time.

Most importantly, the issuance of a resolution to give effect to such policy must be
coupled with the creation of a committee that will be solely in charged with the implementation of
the policy so as to ensure the effective compliance of the concerned fishermen.

2. Interventions of LGU of Bulan via Providing Seminar and Training Programs to Educate
the Fishermen

The Local Government Unit may coordinate with other agencies such as the Philippine
Fishery and Development Authority and Bureau of Fisheries for the purpose of determining
relevant seminar and training programs needed by the fishermen so as to enhance their fish
production management. These programs will help to deepen the level of understanding of the
fishermen of the relationship of supply and demand that will enhance their decision making
particularly with respect to setting the maximum quantity of their expected fish harvest for a
particular period.

The intervention of the Local Government Unit of Bulan shall include allotment of
budget for such purpose so as to ensure the regular implementation of the seminar and training
programs for the benefit of the fishermen.

B. Measures to Lessen the Threat of Price Volatility of “Lawlaw” Fish in the Municipality of Bulan.

1. Fish Broker Operation Shall Strictly be Regulated by the LGU of Bulan.

The existence of the Fish Brokers, who are engaged in fish trading activities in the market
by acting as middlemen between the fish suppliers and the buyers, in the fish market limits the
 opportunity of the fishermen or the original fish vendors to dispose and sell their harvests at a
higher and stable price. While it is true that the original fish vendors have the option not to sell
their harvests to fish brokers, still the situation leaves the fishermen no other choice but to sell it
directly to these middlemen due to call of necessity of avoiding possible additional loss due to
spoilage of harvests as well as for obvious reason that fishermen have no access to fish buyers
from other areas.

The private businesses and operations of these fish brokers are within the ambit of
dominion of the Local Government Units. As such, the LGU of Bulan, by virtue of its Police
Power, has the exclusive power and authority to regulate and control the operations of these fish
brokers particularly if such business negates the promotion of the general welfare of a larger
number. Hence, the activities of the middlemen between fish suppliers and the buyers including
their acts in controlling the fish prices and all other operations which are determinative of price
volatility to the disadvantage of the fish suppliers (fishermen) within the municipality may strictly
be regulated.

This may be done by means of passage of ordinance restricting the scope of

discretionary powers of the private fish brokers including the determination of fish prices and a
municipal law imposing additional requirements for the issuance and renewal of the respective
licenses of these business entities before they can legally engage in the said business activities.
The ordinance shall impose additional requirements such as submission of lists of fish buyers
whom they make regular transactions, written commitment from the licensee to assist
fishermen to have easy access to the identified, written commitment to aid the LGU establish a
wider market for “lawlaw” and an agreement that failure to perform the additional requisites
redound to the revocation of their permits and licenses subject to the provision of the due process
of law.

Moreover, the ordinance shall also include clauses repealing the existing executive orders
which prohibit fish trading outside the Bulan Fish Port so as to enable the fishermen to have
alternative mode of disposing their harvest directly to fish buyers who are capable of paying the
prices commensurate to the value of the fish harvests. Finally, the ordinance to be passed shall
also provide provisions inviting potential investors to put up fish processing factories (sardines
factories) which have the capacity to maintain the demand of lawlaw in the municipality, hence,
avoiding the possibility of unfavorable price volatility as well as encouraging fish dealers and
buyers from other provinces and areas in the country in order to improve the competition in the
fish market sphere that will avoid giving the price control to few individuals. By doing so, the
LGU of Bulan is indeed capable of promoting social justice for the benefit of all the constituents.

2. Establishment of Fishermen’s Cooperative by the Fisher Folks

The Local Fisher Folks may facilitate the creation of a Cooperative intended for them
with the assistance of the Local Government Unit of Bulan. The LGU of Bulan shall support and
give assistance, as one of its mandates under the Local Government Code, to facilitate the
establishment of Cooperative for the fisherfolks.

The Cooperative will be managed by the fisherfolks but is under the supervision of the
LGU of Bulan. This Cooperative may facilitate the management of lawlaw harvested by the
fishermen from production up to its disposal.

3. Recognition of Fisher Folks’ Union

Fisher Folks Union may be formed by the fisherfolks or fishermen. This union shall be
recognized by the Local Government Unit of Bulan as the sole negotiating body of the fishermen
with respect to their rights and obligations.