Since the important role of auction is absent in the marketing system of cut flowers in the Philippines, and due to the smallness in scale of growers as well, the cut flower distribution process of moving cut flowers from one production island to another to reach the demand centers and making them available to the consumers at the proper time, place and form that they need, is the function mostly of middlemen. The specialized activity that has to be done is the market exchange functions of buying andselling, physical functions of storage and transport, as well as the facilitating functions of grading and financing. And since the market exchange is not governed by any law, these activity is performed in an individualized and personalized manner following the suki system of trading. Through the primary data gathered from personal interviews and questionnaire surveys as well as secondary data from studies from several private and goverment institutions, it is the objective of this paper to examine the distribution operations of traders and what functions and role the suki system plays to accomplish the distribution process. Second, to evaluate the performance of the distribution process, it is necessary to examine the marketing cost incurred in carrying out this function which will be done by identifying the various expenses that a trader spent in the distribution operations.
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