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

Factors affecting farmers’ adoption of natural farming technologies in New Albay, Maragusan, Compostela Valley, Philippines

In the Philippines, the sustainability of natural resources and the profitability of farming has become a major concern for smallholder farmers. To address these concerns, government agencies and the private sector are delivering workshops on natural farming technologies to farmers. Training includes the preparation of different concoctions such as indigenous micro-organisms (IMO), fermented fruit juice (FFJ) and fermented plant juice (FPJ), fish amino acid (FAA), oriental herbal juice (OHN) and calcium phosphate (Caphos). Other natural farm technologies include vermiculture. The products from the training are applied to the farmer’s own farms with any surplus products sold to other farmers. In Maragusan, Compostela Valley, Philippines, a group of smallholder farmers have successfully produced organic fertilizers as a result of the training provided to them. Initially, while training was provided to the group to facilitate the marketing of the fresh vegetable crops they produced, the skills learnt were readily transferable. This study discusses the development of the New Albay cluster and factors leading to its decline as a marketing cluster. This study will also explore the costs and returns associated with the application of organic fertilizer to vegetable crops in comparison to conventional farming practices. Results show that the cost of production arising from the use of natural farming technologies is lower than conventional farming

Social connections and smallholder vegetable farmers’ collaborative marketing strategy: The case of the small farmers association of Quirogpang in Davao City, the Philippines

In the Philippines, vegetable farmers generally have only small land holdings. Because of this, plus an apparent lack of financial capital, it is difficult for smallholder farmers to meet the large volume demands imposed by institutional buyers and wholesalers. The small volume and the large variation in quality puts smallholder farmers at a significant disadvantage when it comes to arranging transport and marketing. However, smallholder farmers can engage in collaborative cluster farming in order to meet the demands of the market and to bolster production volume. In the cluster, the farmers carry out production planning and marketing activities collectively. Utilizing the case study method and the 8-step clustering approach formulated by the Catholic Relief Services, this paper will present key success factors and several challenges faced by the Small Farmers Association of Quirogpang (SFAQ) in Marilog, Davao City, Philippines. At the same time, it will identify important institutional supports and strategies that may enhance the success of this and other clusters. The paper highlights key success factors such as the social connections shared by the cluster members and leadership. In this case, these commonalities exist because it is an area-based cluster which includes neighbours and relatives who all practice one religion and speak the same language or dialect

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

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

Theory and Practice of Participatory Action Research and Learning with Cluster Marketing Groups in Mindanao, Philippines

Researching and developing new arrangements for marketing smallholder products in the transitional economies is complex and requires an agribusiness systems approach. One approach to addressing complex problems is for researchers to facilitate an action learning process with farmers and market intermediaries, while using an action research process to investigate the factors that enhance the chances of success for farmer groups. This paper reviews the literature on action learning, action research and participatory processes in an attempt to clarify some of the terminology and define the similarities and differences. It outlines research into a framework to improve the effectiveness and resilience of cluster marketing groups through the application of these processes to smallholder vegetable chains in Mindanao, the southern Philippines

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