Exploring the institutional market for fresh vegetables in the Southern Philippines

Given the many different ways the product may be used, the institutional market for fresh vegetables in the Southern Philippines can be segmented on the basis of the role market intermediaries perform in the supply chain, where they are, what customers they serve, the range of products required, the volume of product required and the quality specifications. Potential market opportunities are identified and the various constraints smallholder farmers face in endeavouring to meet the needs of institutional buyers are highlighted

Socio-economic impact of cluster marketing: The case of Ned Landcare Association sweet pepper cluster

Through clustering, opportunities exist for smallholder farmers to organize their output and to sell directly to institutional markets. This paper analyses the experiences of the cluster marketing approach in Barangay Ned, Lake Sebu, South Cotabato. The case demonstrates how farmers in the cluster group developed an enterprise plan, established linkages with a microfinance institution and negotiated sales to downstream market intermediaries. Farmers in the cluster increased their technical and marketing knowledge, improved their farming and marketing practices, improved their access to capital and increased their income. Trust, confidence, commitment and unity among cluster members were established through the cluster marketing approach

Leadership Perceptions in Collaborative Marketing Groups: Cases from the Southern Philippines

Numerous smallholder vegetable farmers in the Southern Philippines have been organized into clusters or collaborative marketing groups. The purpose of these clusters is to gain production, marketing and capacity building support, consolidate produce for higher value markets, deliver in bulk to save on transport and transaction costs, and to increase household income. One of the factors influencing the ability of the clusters to achieve these goals is leadership. Using the case study method, this study looks at the leadership traits of cluster leaders in Bukidnon, South Cotabato and Davao City. A total of 35 smallholder farmers from the three areas were interviewed using a structured questionnaire. The research showed that the clusters have trusted leaders. The members have high regard towards their leaders. Their definition of an ideal leader fits the description of their current leaders. The members also trust their leaders to represent them in transactions and meetings

Towards a sustainable approach to clustering small-scale farmers to market their agricultural produce

The University of the Philippines Mindanao and Curtin University have been organising small-scale vegetable farmers in Mindanao into cluster marketing groups to improve their access to markets and returns from the sale of their vegetable products using the 8-Step Clustering Approach for Agroenterprise Development developed by the Catholic Relief Services (Philippines). This paper reports on an action research investigation with around 30 marketing clusters. Cluster marketing has led to: better and wider market access, improved prices, reduced costs, improved human capital and social capital, and higher incomes. However, the current process may not lead to sustainable cluster marketing without support and may lead to dependency. This paper discusses strategies to overcome key challenges identified and deficiencies in the current process and suggests changes to the 8-step process so that it may improve the chances of cluster success and sustainability

Impacts of clustering of vegetable farmers in the Philippines

This assessment was made as part of a systematic process of evaluating the impacts of clustering vegetable farmers in the southern Philippines. Program theory was used to map the impacts. The performance of cluster and non-cluster farmers was compared. Farmers’ performance before and after clustering was also examined. The study found that, on average, cluster farmers had higher incomes than non-cluster farmers. Moreover, farmers increased their income by about 47% after clustering. Examining the returns on investment in the research project, it was found that the net present value (NPV) was 35.3 million pesos, the internal rate of return (IRR) 48.6% and the benefit:cost ratio (BCR) 2.47. When spillover effects were considered at a 5% adoption rate, the NPV, IRR and BCR increased to 106.9 million pesos, 81.5% and 3.8, respectively

Social Capital and Trust in Collaborative Marketing Groups: the Case of Vegetable Clusters in the Southern Philippines

Over the past two decades, numerous studies have explored the role and the impact of social capital in organizations. Social capital helps overcome problems of institutional access to information, credit, the supply of farm inputs and the provision of government services. Despite the increasing number of studies, the role of social capital and trust in collaborative marketing arrangements for smallholder producers remains relatively unexplored. This study examines social capital among cluster marketing groups in three regions of the Southern Philippines. The results show that social capital in the form of affiliations and networks, social cohesiveness, open communication and trust had positive benefits for each of the cluster marketing groups

Impact of Collaborative Marketing on Vegetable Production Systems: the Case of Clustering in the Southern Philippines

In the Southern Philippines, the clustering method has been introduced to smallholder vegetable farmers as a development approach to facilitate linkages with markets, while simultaneously assisting farmers to establish more organized and effective groups. For the clusters to sustain their linkages with buyers, they must often adapt their production systems to meet the buyers’ requirements. This study explores the impact of cluster marketing on vegetable production systems in the Southern Philippines. Key changes in the production systems include the use of superior varieties to increase the marketable yield and to mitigate disease, the introduction of protected cropping through rain shelters to minimize losses from adverse climatic conditions, and the application of non-chemical inputs to reduce production costs

Experiences with the Catholic Relief Services' clustering process for agroenterprise development and some suggestions for improvement

An evaluation of the Catholic Relief Services’ (CRS) eight-step clustering approach to agroenterprise development was a key focus of the Australian Centre for International Agricultural Research (ACIAR) – Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD) horticulture project on ‘Enhancing the profitability of selected vegetable value chains in the southern Philippines’. The CRS approach encourages farmers to form small, collaborative marketing groups (clusters) and to facilitate the sustainable development of these clusters. The research, which used participative action learning and action research processes, identified that an enhanced clustering approach should incorporate processes that overcome issues such as: input financing arrangements to replace loans from informal moneylenders and traders; risks associated with production failures and pest and disease problems; maintaining relationships with buyers; and building group resilience and independence so that donor agencies have an exit strategy. The research findings suggest that to enhance the sustainability of the clusters the CRS eight-step process should be applied to three phases: (i) establishment, (ii) building resilience and (iii) implementing an exit strategy

Marketing Benefits Derived from Clustering: the Case of Vegetable Clusters in Mindanao

One of the most limiting constraints for improving the profitability of smallholder vegetable farmers is poor marketing. With the lack of knowledge and inability to negotiate with downstream buyers, farmers have little option other than to sell their products to the traditional market. To facilitate access to technical information, credit and institutional markets, smallholder farmers are forming collaborative marketing groups. Clustering is one form of collaborative marketing in which smallholder farmers are organized into small groups within a defined territory or geographic area. Using the CRS Eight Step Plan for Agro-enterprise Development, 29 clusters were formed in three provinces in the Southern Philippines. This study explores the various marketing benefits smallholder farmers have achieved after joining the cluster. After interviewing 61 vegetable farmers from 10 clusters using a structured questionnaire, results show that upon joining the cluster, farmers became more aware of their buyer’s preference for product quality and gained knowledge on how to properly handle and package their produce. Cluster farmers increased their income from vegetable farming by selling a greater product variety, a larger volume and gaining access to high value markets