Assessing the Role of Cooperative in Resolving Labor Issues in Tuna Catching, General Santos City, Philippines

Cooperatives are envisioned both as a social and economic enterprise. In the Philippine setting, cooperatives were organized to serve as labor provider for various industries, under the scheme of agency hiring, or declaring the hired workers as member/co-owner of the cooperative. The study aims to examine the economic and social gains, as well as the risk taking of the members and business partners. In particular, an assessment of the social gains (e.g., resolving labor issues, vulnerability of workers to exploitation, and workers capacitation) will be analyzed to probe the cooperative as a venue for workers’ empowerment. Key informant interviews were conducted with the officers and members of two cooperatives: (1) type A – workers’ cooperative organized by an agency (labor provider) and (2) type B – workers’ cooperative organized by the workers themselves. The findings revealed that the type B cooperative generated more economic and social gains for both members and business partners, while the type A cooperative delivered less. Type A cooperatives did not resolve the labor issues while type B cooperatives enhanced worker entrepreneurship, capacity building, and participation with increased compensation and benefits. It is recommended that concerned government agencies must strictly monitor the operations of cooperatives. Business partners must also be encouraged to deal with cooperatives who are organized to serve the interest of the workers

Assessing the Employment Conditions and Patterns of Help-outs among Selected Agrarian Reform Cooperatives in the Banana Industry

Employment is one of the key concepts that support every country’s economic activity. Its significance and contribution affect key players in all sectors, as it is vital in production, distribution, and consumption of commodities. Among all the industries, agriculture takes the largest share when it comes to labor force participation. The agricultural sector of the Philippines is composed of informally employed workers who face various issues in hiring, contracts, worker pay, workloads, and etc. These informally employed workers include “help-outs” who work in the Agrarian Reform Cooperatives (ARCs) managed by the Agrarian Reform Beneficiaries (ARBs). Due to the nature of work, these workers engage in different working arrangements which determine their farm setting. Thus, this is an exploratory study conducted to assess the working conditions and patterns of help-outs employed in the selected ARCs, namely SFARBEMCO, AMS-MARBEMCO, and AMS-KARBEMCO, in Davao del Norte. A total of 103 help-outs were interviewed. Linear and logit regression were both employed to test significance of relationships. The results show that most of the help-outs in the ARCs are well-off. Significant factors that affect their probability of being well-off include gender, rating of happiness, employment category, cooperative, and relationship to their ARB. However, issues identified in the employment patterns include ambiguous employer -employee relationship, payment of working slots, precarious contracts, unreasonable pay, and lack of social security

Vegetable Purchase Patterns of Consumers in Davao City and Cagayan de Oro City, Philippines

The goal to increase farm productivity, attain food security and safety, and alleviate poverty among smallholder farmers has urged government and nongovernment organizations in the Philippines to develop and promote organic and safe vegetables. While these products are healthier and safer, previous studies have proven that these are more expensive than their conventional counterparts. A mall intercept using a structured questionnaire was conducted to survey 240 respondents in Davao City and 110 respondents in Cagayan de Oro City (CDO) in Southern Philippines. This is a qualitative research that aims to provide information about the current vegetable purchase patterns of consumers in both study areas and to identify its implications and opportunities for organic and safe vegetable producers. Results show that more than 50% of the respondents in both cities purchase vegetables in wet markets and supermarkets on a weekly basis. In terms of expenditure on vegetables, 85% of the respondents in CDO and 74% of the respondents in Davao City have expenditure on vegetables of at most PhP500 per week. The majority of consumers in both cities buy vegetables mostly from wet markets because vegetables are sold at a lower price, are fresher, and there is wider product assortment. Consumers in Davao City and CDO buy vegetables from supermarkets because of convenience and cleanliness, respectively. They purchase mostly tomatoes, eggplants, and cabbages. Based on previous studies, these vegetable purchase patterns of consumers have not changed for over ten years. Thus, this challenges organic and safe vegetable producers, as well as other vegetable industry stakeholders, to produce cheap but high-quality vegetables

Factors Affecting Farmer’s Decision to Remain in Organic Rice Production: The Case of Magsaysay, Davao del Sur, Philippines

Only few farmers in the municipality of Magsaysay, Davao del Sur, continue to produce rice through organic farming. Although the price of organic rice is relatively higher compared to the conventional one, the majority of the organic rice farmers reverted back to conventional farming. Hence, this study was conducted to investigate the influences that affect the decisions of organic rice farmers in Magsaysay to remain in organic farming through logistic regression analysis. Moreover, this study employed cost-benefit analysis (CBA) to evaluate the benefits and costs associated with organic and conventional rice production. Sixty farmers participated in the survey; 20 were organic farmers (out of 21 members of MOFARMCO) and 40 (out of 124) were previously organic farmers who reverted back to conventional farming methods. The result of the logit model showed that family labor size, perception on organic farming, and age significantly influence the decisions of rice farmers to remain in organic farming. Meanwhile, the cost-benefit analysis revealed that although the yield per hectare obtained in organic farming was less, it was still more profitable due to higher selling price and lower cost of production. In order to expand the use of organic farming in Magsaysay, it is important for the local government units and nongovernment organizations to formulate an organic farming promotion policy taking into consideration the results of this study. Moreover, this study recommends policy formulation and regulation to strengthen market development as well as the conduct of research and development programs to increase yield from organic farming

Factors Affecting the Perception of Farmer-Beneficiaries on the Implementation of CARP Support Services: The Case of Macarimbang Agrarian Reform Cooperative in Maguindanao, Southern Philippines

Several impact assessment studies were done to evaluate the Comprehensive Agrarian Reform Program (CARP) where they reported positive socio-economic outcome. However, some experts claim that the program, despite its gains, has a backward effect. This study evaluates the implementation of CARP support services based on the perception of the farmer-beneficiaries in Macarimbang Agrarian Reform Cooperative of Maguindanao, Southern Philippines. A total of 73 farmers who are beneficiaries of the CARP projects were selected through random sampling and interviewed. Tobit model was used to analyze the relationship between the socio-economic characteristics of the farmer-beneficiaries and their perception on the implementation of the programs’ usefulness, which was measured using a 5-point Likert scale, under each project component of CARP: Social Infrastructure Local Capacity Building (SILCAB), Sustainable Area-based Rural Enterprise Development (SARED), and Access Facilitation and Access Enhancement (AFAE). Results revealed that the socio-economic factors significantly affect the perception of the respondents towards CARP support services. Farmers with larger household size, farm size, and farm income tend to be more satisfied of the said programs while the opposite is true for respondents who are members of an organization. By substituting the mean of each variable to the Tobit model, it generated a result of 4.271, 4.400, and 0.604 for SILCAB, AFAES, and SARED, respectively. The farmer-beneficiaries believe that SILCAB and AFAES programs are useful to them, while SARED is not. Hence, SILCAB and SARED, whose main objectives are to capacitate and empower the farmer-beneficiaries and to introduce various alternative livelihood activities, respectively, should be given priority by CARP

Willingness to Pay for Certified Safe Vegetables Among Consumers in Cagayan de Oro City, Philippines

Nowadays, consumers are becoming more health conscious. The demand for vegetables that are “certified safe” is expected to increase in proportion to the products with “certified safe” labels. Hence, the development of such products may improve the economic condition of smallholder farmers who will adopt safe vegetable production. In this study, we explored the various factors that may significantly affect consumer willingness to pay (WTP) for certified safe vegetables in Cagayan de Oro City, Philippines, using the Tobit model. The factors considered were socio-demographic details, purchase patterns for the supermarket and wet market, attitudinal factors, and food safety concerns. A mall intercept survey of 110 respondents buying vegetables from the grocery was conducted. The study focused on the following vegetables: tomato, eggplant, sweet pepper, bitter gourd, and cabbage. Results showed that respondents are moderately concerned regarding the preharvest and postharvest production practices, while they are extremely concerned with retail-related attributes. Appearance, type of market outlet, and label were found to be the main determinants of the respondents’ perceptions on whether the vegetables they purchase are safe or not. Majority agree that unsafe vegetables could cause immediate health problems and strongly agree that it could cause long-term health problems. In measuring the consumers’ WTP, majority of the respondents were willing to pay more, by as much as 14% higher, for vegetables that are “certified safe.” In conclusion, the demand for certified safe vegetables is reflected in the respondents’ positive perceptions on the quality, environmental advantages, and benefits of consuming certified safe vegetables manifested by higher WTP

Feasibility Assessment of Direct Marketing Strategies: The Case of Vegetable Farmer Clusters in Marilog, Davao City, Philippines

In the Philippines, majority of the vegetable farmers are categorized as small and are often disconnected from markets, which lessen their opportunities to sell at a profit. This study focused on the feasibility assessment of direct marketing strategies, specifically the farmers’ market and direct sales to institutional users. A random survey was conducted on 110 residents of the first district of Davao City where consumers’ willingness to shop at farmers’ markets was analyzed using Probit regression. On the other hand, case study analyses were conducted to assess the farmers’ market event in a university and the direct sales strategy to institutional user, the food service provider of a government agency. Costs and benefits of each direct marketing channel were also determined. The farmer groups PAFA and SAFE are the producers and sellers of vegetables for this research. The study revealed that majority of the respondents are willing to participate in a farmers’ market if one exists and they perceived it as a source of fresh yet affordable vegetables. Moreover, most of them believed that participating in a farmers’ market is a form of social responsibility. The institutional buyer mainly benefited through significant reduction in marketing costs. Alternatively, the farmers perceived direct marketing as opportunities for learning and maximizing economic gains through diversifying its market portfolio and securing a market for their produce. The results of the study indicate the feasibility of direct marketing strategies to be carried out by the vegetable farmer clusters, which are PAFA and SAFE

Food Safety Concerns of Vegetable Consumers in Davao City, Philippines

Food safety has become a growing concern among vegetable consumers. Studies have shown changes in the purchasing pattern of consumers due to food safety concerns. In developed countries, food quality and safety have become increasingly important attributes being considered due to food-borne diseases. In this paper, we determined the consumers’ level of food safety concern at various stages along the vegetable value chain and analyzed how it affects their purchase patterns. We conducted a mall intercept survey among 240 respondents at two supermarkets in Davao City, Philippines, using a structured questionnaire and organized focus group discussions (FGDs) to triangulate our findings. Slovin’s formula was used to determine the sample size. Results showed that most of the consumers were extremely concerned with the amount of chemicals used in vegetable production, cleanliness of storage conditions, retail and entire market outlet, disposal of waste vegetables, quality of vegetables used in presliced packs, and quality of water used in washing vegetables. Ironically, despite their high level of concern on food safety, particularly on chemical residues, most of the respondents always purchase conventional vegetables and never purchase certified organic vegetables. This can be attributed to the wide price difference of certified organic and conventional vegetables. Based on FGD results, consumers emphasized the importance of certification as an assurance of safety. However, consumers demand that food quality and safety assurance should be delivered at a reasonable price. The challenge for stakeholders in the vegetable supply chains is to reduce the cost of certification while ensuring food safety and traceability along the chain

The Roles of Vegetable Value Chain Actors in the Changing Agri-food System: The Case of Davao City, Philippines

Several studies have shown that the retail food industry has been expanding and that consumers have changed their purchase patterns and preferences over time. These challenge vegetable value chain actors to respond to such trends. Hence, this study seeks to examine how players in the chain respond to the changes in the agri-food system, document the changes in the roles of vegetable value chain actors, and identify implications for smallholder producers. One to three interviews were conducted for each of the 15 types of vegetable value chain actors in Davao City, Southern Philippines, which totals 37 key informant interviews. The respondents were asked regarding vegetable industry trends, their roles and functions, their volume and quality requirements, and their willingness to source directly from farmer groups. A survey was also conducted among 60 vegetable farmers in Davao City to assess their roles in the chain. Farmers’ socio-demographic profiles and production and marketing practices were gathered. This study reveals that the layers in the chains have reduced because wholesalers have started to perform forward integration by producing vegetables, moving closer to the production sites, financing vegetable production to establish a strong supply base, and strengthening relationship with suppliers and buyers. Smallholder producers, on the other hand, remain to be heavily dependent on financiers. There are, however, opportunities for smallholder producers, such as organizing themselves into groups to market collectively, share risks, and take advantage of economies of scale and improving production to ensure that they produce better quality vegetables and become more competitive

Willingness to Pay for Certified Safe Vegetables in Davao City, Philippines

Safe vegetable production is being practiced in the Philippines to address food safety concerns on vegetables. In this study, we assessed the viability of producing and marketing certified safe vegetables in Davao City by estimating consumers’ willingness to pay (WTP) for certified safe vegetables and analyzing the factors affecting it. The determinants of the consumer decision whether to purchase certified safe vegetables and WTP for certified safe vegetables were analyzed using logistic and Tobit regression, respectively. We found that most consumers in Davao City are willing to purchase (ranging from 82% to 91%) certified safe vegetables. The factors that significantly affect the likelihood of a consumer to purchase certified safe vegetables at the wet market are civil status, educational attainment, and frequency of purchase and the factors that significantly affect the likelihood of a consumer to purchase certified safe vegetables at the supermarket are gender and vegetable expense. On the average, Davao City consumers are willing to pay an additional PhP6.00/kg and PhP5.50/kg on top of the regular retail price for certified safe vegetables sold at the wet market and supermarket, respectively. These findings imply that there is a market for certified safe vegetables in Davao City as indicated by the consumers’ willingness to purchase and willingness to pay. However, it should be noted that these consumers are willing to pay only a small premium above regular retail prices. Vegetable farmers and marketers can capitalize on this opportunity, but the cost of producing and marketing certified safe vegetables must not exceed its potential benefits