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EDITORIAL COMMITTEE Editorial Committee Heads Yolando Arban Bobet Corral Logo Design Bobby Cielo Design/Layout Lemuel Sugui

Technical Support Vivian Azore

Advancing Farmers’ Climate Resilience and Market Power 2015 Knowledge Learning Market and Policy Engagement (KLMPE)

© International Fund for Agricultural Development-Philippines Published by: International Fund for Agricultural Development 30/F Yuchengco Tower 1, RCBC Plaza 6891 Ayala cor. Sen Gil Puyat Avenue, Makati City, Philippines Tel: +63 2 9010203/ 9010230 Fax: +63 2 9010200/ 8897177 Email: ISBN 978-621-95072-1-9 Printed in the Philippines February 2016

CONTENTS Foreword Acknowledgment Acronyms Introduction to 2015 KLMPE Cases


Post Yolanda Fund for Local Initiatives


CHARMP2’s Covenant Approach: Tapping Indigenous Communities for Reforestation and Agroforestry

12- 15

Mangarita Organic Farm: Showcasing Climate-Resilient Organic Farming Technologies


Institutional Food Purchase: The MOARC Experience in CamSur


Sariaya Sentrong Pamilihan: A Model for Agri-Pinoy Trading Centers


GlowCorp’s Organic Marketing: Connecting Family Farmers to Sustainable Markets


Sorosoro Ibaba Development Coop: “From Sperm to Germ”


Lamac Multi-Purpose Coop: Empowering Diversified Agro-Entrepreneur Farmers


Agus Pinoy Producers Coop (APCO): “Seed to Seed”


Lessons Learned from Case Studies


Policy Issues and Recommendations


2015 IYFF+1 Action Agenda


FOREWORD In 2014, the Philippines celebrated the International Year of Family Farming (IYFF), and around 400 leaders and representatives of farmer organizations, NGOs, academe and government agencies joined a two-day trade fair, knowledge learning market and policy engagement conference to honor smallholder family farmers and fishers who feed the country and the world. In that event, ten policy papers grouped in five key themes were deliberated culminating in the submission to and acceptance by government representatives of what is known as the 2014 Quezon City Declaration. The participants committed themselves to work together to address pressing issues on asset reforms, climate change and resiliency, governance, young farmers and enterprise development. On November 25-26, 2015, more than 250 delegates attended the 2015 Knowledge Learning Market and Policy Engagement (KLMPE) held in Quezon City, Philippines on the theme “IYFF +1 Partnership for Food Security, Nutrition and Climate Resiliency: Increasing Farmers Market Power.� The event is a continuing dialogue of action to improve the lives of smallholder family farmers and fishers and their organizations. The 2015 KLMPE aimed to generate updates on the policies and programs presented to government and to craft action points for the coming years. It also provided a forum for various stakeholders to exchange on innovations and good practices and to deliberate on current policies and programs that promote family farming. Lessons and inspiration were drawn from successful and innovative models viz three inter-related subthemes on: 1) Sustainable agriculture and climate resiliency, 2) Enlarging farmers market power, and 3) Building agri-cooperatives. This publication is a knowledge product that features highlights of the 2015 KLMPE. Hopefully, it can contribute towards establishing policies and programs that provide greater incentives to smallholder family farmers/ fishers and their organizations for greater gender, generational and social equity, food security and economic development, biodiversity and climate mitigation and adaptation, and better governance. The KLMPE Technical Working Group Metro Manila, Philippines January 2016

ACKNOWLEDGEMENT For providing innovations and models to advance farmers’ climate resilience and market power, we would like to thank the following contributors of 2015 KLMPE cases: § § § § § § § § §

Asian Partnership for the Development of Human Resources in Rural Asia (AsiaDHRRA) Department of Agriculture – CHARMP2 (DA-CHARMP2) Department of Agriculture (DA) – National Organic Agriculture Program Pambansang Kilusan ng mga Samahang Magsasaka (PAKISAMA) / May-ogob Agrarian Reform Coop (MOARC) Sentrong Pamilihan ng Produktong Agrikultura ng Quezon (SPPAQFI) Global Organic and Wellness Corporation (GlowCorp) Sorosoro Ibaba Development Cooperative (SIDC) Lamac Multi-Purpose Cooperative (LMPC) Agus Pinoy Producers Cooperative (APCO).

For their tireless dedication and commitment to promote the significant role of family farming in  food security, nutrition and poverty eradication, we would like to thank the following members of the KLMPE Technical Working Group: § AgriCord Philippines Synergy Group § Asian Farmers’ Association for Sustainable Rural Development (AFA) § Asian NGO Coalition for Agrarian Reform and Rural Development (ANGOC) § Asian Partnership for the Development of Human Resources in Rural Asia (AsiaDHRRA) § Department of Agriculture (DA) § Department of Agrarian Reform (DAR) § International Fund for Agricultural Development (IFAD) § Pambansang Kilusan ng mga Samahang Magsasaka (PAKISAMA) § Philippine Partnership for the Development of Human Resources in Rural Areas (PhilDHRRA) § We Effect. For their knowledge and continued solidarity, we would like to thank the following resource persons and esteemed colleagues: § § § § § § § § § §

Department of Social Welfare and Development (DSWD) Collectif Stratégies Alimentaires (CSA) FETRAF-Brazil Food and Agriculture Organization (FAO) IFAD assisted projects: IRRI CURE. CIP FoodSTART, ICRAF Smart Tree Invest, DA CHARMP2, DA RaFPEP, NIA IRPEP, BFAR FishCORAL Jolibee Foundation National Confederation of Cooperatives (NATCCO) National Anti-Poverty Commission Philippine Crop Insurance Corporation (PCIC) Trias.

Most especially, we would like to thank our farmers/fishers, including farmer organizations involved with MTCP 2, who participated and animated our discussions, enriched our arguments, and generally shared their collective wisdom that resulted in the crafting of the 2015 IYFF+1 Action Agenda.

ACRONYMS AFA Asian Farmers’ Association for Sustainable Rural Development ANGOC Asian NGO Coalition for Agrarian Reform and Rural Development APCO Agus Pinoy Producers Cooperative APTC Agri-Pinoy Trading Center AsiaDHRRA Asian Partnership for the Development of Human Resources in Rural Asia BUB Bottom-Up Budgeting CARPER Comprehensive Agrarian Reform Program Extension with Reforms CDA Cooperative Development Authority CHARMP2 Second Cordillera Highland Agricultural Resource Management Project CSO Civil Society Organization DA Department of Agriculture DAR Department of Agrarian Reform DSWD Department of Social Welfare and Development FFO Family Farmers Organization GO Government Organization IDOFS Integrated Diversified Organic Farming Systems IFAD International Fund for Agricultural Development IP Indigenous Peoples IYFF International Year of Family Farming KLMPE Knowledge Learning Market and Policy Engagement GlowCorp Global Organic and Wellness Corporation LMPC Lamac Multi-Purpose Cooperative NGO Non-Government Organization NOAP National Organic Agriculture Program NOAB National Organic Agriculture Board MOARC May-ogob Agrarian Reform Cooperative MOF Mangarita Organic Farm OA Organic Agriculture PAHP Partnership Against Hunger and Poverty PAKISAMA Pambansang Kilusan ng mga Samahang Magsasaka PCIC Philippine Crop Insurance Corporation PO People’s Organization PhilDHRRA Philippine Partnership for the Development of Human Resources in Rural Areas SIDC Sorosoro Ibaba Development Cooperative SPPAQFI Sentrong Pamilihan ng Produktong Agrikultura ng Quezon Foundation Inc

INTRODUCTION TO 2015 KLMPE CASES The 2015 KLMPE presented nine cases on innovations/models on three interrelated subthemes: 1) Sustainable agriculture and climate resiliency – Given the reality of climate change and the Philippines as a regular target of strong typhoons and dry spell, it is important to understand how family farmers are preparing and changing their production systems to adapt to the “new norm”, with partner CSOs and GOs, and using indigenous knowledge systems and practices for reforestation and agroforestry; 2) Enlarging farmers market power – Family farming is about economic viability, ensuring better markets and income for family farmers and their enterprises, as they provide healthy and safe food to society; and 3) Building agri-cooperatives – The experiences of three successful agricooperatives in the country that provide full value chain services to their members will inspire family farmers to undertake similar innovations and for policy-makers and advocates to provide the necessary support.

Subtheme 1: Sustainable agriculture and climate resiliency Post Yolanda Fund for Local Initiatives - Following the relief work in Yolanda (Haiyan) areas, current innovations in rehabilitation are being undertaken with the view of building back better agriculture and fisheries. Family farmers and fishers in Eastern Samar and in Leyte are innovating and converting their monocrop farms into climate-resilient integrated, diversified, organic farms (IDOFs). CHARMP2’s Covenant Approach. The Second Cordillera Highland Agricultural Resource Management Project (CHARMP2) uses the covenant approach to tap indigenous communities and their knowledge systems and practices for reforestation and agroforestry. CHARMP2 is a seven-year project implemented in the six provinces of the Cordillera region, targeting highland barangays where there is high poverty incidence. Mangarita Organic Farm (MOF): Showcasing Climate-Resilient Organic Farming Technologies. Sitting on a half-hectare land in Capas, Tarlac, the MOF is a technology extension center operated by a non-government organization (NGO) to showcase models of organic farming technologies that could be adopted or innovated for farmers converting to a more sustainable agriculture practice. A grant from DA under the National Organic Agriculture Program (NOAP) showcased several projects such as organic seed production, climate-resilient greenhouse technology.

Subtheme 2: Enlarging farmers market power Institutional Food Purchase: The MOARC Experience in CamSur. The May-ogob Agrarian Reform Cooperative in Camarines Sur is a pilot partner of the Partnership

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Against Hunger and Poverty (PAHP), an institutional food purchase program of DAR, DSWD and DA which links government feeding programs with local family farmer producers. It is patterned after the successful Zero Hunger program in Brazil to raise family farmers’ income and nourish families. Sariaya Sentrong Pamilihan, A Model for Agri-Pinoy Trading Centers (APTC). The Sariaya Sentrong Pamilihan is a wholesale market and processing center established in 2004 to assist family farmers to directly market their produce to local, institutional and international market. The Sentro has become a major vegetable hub, reaching places as far as Bicol region and Metro Manila and other island provinces, and is the model of APTCs that DA is launching nationwide. GlowCorp’s Organic Marketing: Connecting Farmers to Sustainable Markets. Global Organic and Wellness Corporation (GlowCorp) was established in 2010 to help small-scale organic farmers access sustainable markets and earn sustained incomes. It is a marketing company owned by farmers organizations, NGOs and individuals who are advocates of organic agriculture. Its mission is to be a market leader in organic products distribution, promote economic development, and empower 6,500 organic farming households.

Subtheme 3: Building agri-cooperatives Sorosoro Ibaba Development Cooperative (SIDC): “From Sperm to Germ”. From humble beginnings in 1969, SIDC today is the biggest agri-based cooperative in the Philippines, with Php1.8 billion assets that supports the livelihood of its 23,232 members largely in Luzon. The agri-coop has a total Php3.076 billion volume of business, share capital of Php445 million, and owns consumer stores, rice milling, gasoline station, cable TV and a resort. Its “From Sperm to Germ” integration model is done at the level of the agri-coop. Lamac Multi-Purpose Cooperative (LMPC). The agri-coop has total assets of Php1.1 billion, share capital of Php323.6 million, 55,800 members (73% are women), and 308 staff (45% women). In 2013, Lamac MPC started a Farmer Entrepreneurship Program that adopts the 8-steps clustering approach to agroenterprise development. Agus Pinoy Producers Coop (APCO): “Seed to Seed.” APCO is a three-year old organic rice farmers cooperative in Agusan Sur with 200 members today cultivating 540 hectares of diversified organic rice farms and total assets of Php33.3 million. Its “Seed to Seed” business model is focused on full value chain services to members from production to processing to marketing.


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Post-Yolanda Fund for Local Initiatives: Building Back Livelihoods Better

Super Typhoon Yolanda (international name ‘Haiyan’) struck the Philippines in November 2013. It is believed to be the strongest typhoon in recorded history. The typhoon left 6,201 dead and 1,785 missing, and placed 4.1 million homeless. About 5.6 million had their livelihoods lost or disrupted. Hardest hit was the Visayas region. The disaster brought not only economic distress but depression to many families, especially mothers and children. For several months after the disaster, the people survived from the relief operations by the government and other international humanitarian organizations. In 2014, AsiaDHRRA launched a funding facility dubbed as Post-Yolanda Fund for Local Initiatives, with support from Fondacion de France and AgriCord, to extend assistance to farmers’ and fisherfolks’ organizations (FOs) affected by Yolanda. The funds will help rehabilitate the farming and fishing activities in the affected areas, especially after the end of the relief operations. The Post Yolanda Fund  aims to assist members of FOs to be able to immediately get back to farming or fishing activities, and ensure that local organizations and communities are able to directly participate in and benefit from a range of post-disaster rehabilitation activities through direct financial and technical assistance.  Greater awareness on disaster preparedness and climate change among the basic sectors is also

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promoted, as well as the need to build solidarity among FOs concerned with disaster risk reduction and climate change adaptation through learning and sharing. As well, FOs will be made aware of the importance of farm production linked to markets, and the importance of developing working relationships with local government units and national government agencies. Aside from being a rehabilitation response, capability-building inputs on family farm planning and basic sustainable agriculture technologies are provided. The Fund currently supports eight (8) FOs covering 12 municipalities in Palawan, Leyte, Tacloban, and, Samar; and, directly benefiting 1, 511 farmers, fisherfolks and IPs. These include: Unahin Lagi Ang Diyos – Bito Lake Fisherfolk and Farmers Association (UNLAD-BLFFA); Kahugpungan sa mga Mag-uumang Ormocanon (KAMAO); Southeastern Samar PO Consortium (SEaSPOC); Tagbanua Tribe of Coron Island Association, Inc. (TTCIA); Omaganhan Farmers Agrarian Reform Cooperative (OFMPC); Association of Locally-Empowered Youth (ALEY); Community Based Agricultural Development Organization (CBADO); Pambansang Kilusan ng Samahang Magsasaka (PAKISAMA). Post-Yolanda rehabilitation of agricultural farms. In MacArthur, Leyte, some 350 families in three barangays are assisted to get back to and improve their farming and/or fishing activities through the “cash for work” strategy which encourages families to immediately clear their farms of debris and/or plant short-term early harvestable crops, and provide support for basic farm inputs. The project strategies include capacity building inputs (e.g. family based farm planning and basic diversified, integrated, organic farming technologies, incorporating medium and long term crops) and engagement with local government units and national government agencies. The farmers/fishers have organized themselves into an FO, Unahin Lagi Ang Diyos – Bito Lake Fisherfolk and Farmers Association (UNLAD-BLFFA). In Ormoc City, Leyte, members of Kahugpungan sa mga Mag-uumang Ormocanon (KAMAO), an FO composed of agrarian reform beneficiaries in 14 barangays, looked at longer term farm development processes through farm planning and learning the principles of sustainable agriculture, disaster mitigation and climate change, and the dynamics of the local market. Capacity Building for Disaster Adaptation and Building Resiliency for Climate Change. Members of the Omaganhan Farmers Agrarian Reform Cooperative (OFMPC) in Tabango, Leyte are being supported to develop


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medium and long term crops of the farms, while integrating in the system some features related to disaster adaptation and resiliency to climate change. For the medium term crops, OFMPC will finance banana production through its regular credit facility. The cooperative will then buy the bananas (saba variety) which it will process into banana chips and supply to an existing buyer through an existing marketing contract. Farm rehabilitation through vegetable gardening and root crop production. In five barangays in Albuera, Leyte, the Association of Locally-Empowered Youth (ALEY) is being organized to make productive the vacant and open spaces in many homelots, especially of the shelter programs that are being carried out by the government and other big humanitarian organizations. The youth volunteers are expected to establish youth organizations in Leyte who will focus in developing and promoting home gardening among the youth as their contribution to community development. This will be done by instilling proper attitude and strengthening knowledge and skills, and providing support to establish home gardens. The project would provide vegetable seeds, root crop planting materials, organic fertilizers and small farm tools. The project will also develop the youth capacity to produce other food products from their harvests, and explore potential market outlets for the youth. Recovery from lost and damaged livelihoods. In Coron, Palawan, some 540 member households of the Tagbanua Tribe of Coron Island Association, Inc (TTCIA), an FO of farming and fishing Tagbanua indigenous peoples, are being assisted in livelihood recovery by: 1) providing 80 fishing boats and fishing gears (e.g. nets, hook and line, fishing spears); 2) providing 200,000 cashew and 50,000 calamansi seedlings to recover livelihoods from their agro-forest farming; and 3) strengthening the FO’s and local institutions’ organizational capacity in addressing recovery and management of their livelihoods, disaster risk reduction and disaster preparedness. Lessons Learned § Monocropping, relying largely on a single agricultural commodity – coconut or fishing extraction as the case of Eastern Samar and Leyte is not a resilient agricultural practice for small family farmers. Diversified and integrated farms are. § The elements that contribute to resiliency are: a) Diversified and integrated farming systems; b) Technologies that contribute to the economic well-being; and c) Stronger and wider network of Small Farmer organizations.

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CHARMP2’s Covenant Approach: Tapping Indigenous Communities for Reforestation and Agroforestry

Indigenous communities in the Cordilleras have managed their watersheds through their traditional knowledge systems and practices. These practices have evolved through centuries of practice, repeated and developed by each generation while, in turn, sustaining and developing the next generation. Their deep understanding of the interrelationship of natural forces and how man can maximize use of natural resources without destroying it has sustained not just a family or a clan but entire communities for centuries. CHARMP2, or the Second Cordillera Highland Agricultural Resource Management Project, is a 7-year project (2009 to 2015) implemented in the six provinces of the Cordillera region, targeting highland barangays where there is high poverty incidence. It is the second phase of the CHARM Project (1998 to 2004) that covered Abra, Benguet and Mountain Province.


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The Department of Agriculture (DA), its executing agency, has extended the program to ensure its sustainability. Local Government Units (LGUs), the National Commission on Indigenous Peoples (NCIP-CAR) and NGOs are co-implementing agencies. CHARMP2 is co-financed by the International Fund for Agricultural Development (IFAD). The over-all impact of the CHARMP2 has touched the lives of 70,000 households since started in 2009. CHARMP2 built on the lessons of the earlier project where reforestation activities are often seen as a short termemployment opportunity rather than a long-term community responsibility, and the newly created peoples’ organizations (POs) have become a parallel organizations to the councils of elders/leaders in the barangay. Most reforestation work is therefore not sustained and watersheds continue to be degraded. The Covenant Approach The covenant approach is an initiative of CHARMP2 that recognizes the role of indigenous communities as the protector and manager of watersheds in their traditional domains. A covenant is an oath or a commitment by the community driven by indigenous systems and laws that have a deeper binding effect than a legal contract. The project engages communities in the planting of trees and protection of the watershed. The covenant binds the community to the task of taking care of their natural resources in perpetuity, including protection from forest fires. The covenant also formalizes the agreement with the LGUs as stakeholders in the program. The covenant approach is in consonance with the Indigenous Peoples Rights Act (IPRA) that upholds the rights of IPs to occupy and own ancestral domains and lands; to develop the land, manage and conserve resources therein; and to benefit and share the profits from the allocation and utilization of resources. Accompanying these rights are the responsibilities of the IPs to preserve, restore, and maintain a balanced ecology in the ancestral domain by protecting the flora and fauna, watershed areas, and other reserves and restore denuded areas. IPs can do this by actively initiating, undertaking, and participating in the reforestation of denuded areas and other development programs and projects subject to just and reasonable remuneration.

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Indigenous Knowledge Systems and Practices The communities apply indigenous knowledge systems and practices (IKSPs) in support of natural resource management (NRM) activities. In the selection of tree species, for instance, the communities prioritize native species that they are familiar with. In the Lapat system of Abra, the Sapata ritual which is a swearing-to-the truth ritual, is observed during the covenant-signing of all stakeholders in the reforestation project. It binds the people under a covenant with the spirits of their ancestors and the god Kabunian and not just among themselves. These are other examples of green covenants that use IKSPs: (a) Batangan / muyong / pinugo / batangan / tayan – Private, clan-owned forests that serve as watersheds and sources of firewood and timber, wild animals, and herbs. In Ifugao, the muyong is generally found above the ricefields where they form part of the watershed. Management is governed by community rules and regulations; (b) Uma / habar / ilit / nem-a – Swidden farms which are cleared from hill slopes that are not heavily forested with trees and planted to annual crops, usually vegetables such as beans. These unirrigated farms are maintained for just two or three croppings, as long as soil fertility allows, and then left fallow for as long as 10 years; (c) Saguday – Originally established as an uma but converted to other land uses such as pine tree plantation. In certain communities, these are family-owned which through time become communal through intermarriages of descendants of original holders; (d) Lapat – literally means “prohibit” in Tingguian. It encompasses a whole system of checks and balances governing misbehavior and misdemeanor in Tingguian society, which for ages have helped communities to regulate, protect, manage, and properly use their land and natural resources. (e) Apas – A Kalinga term which means a declaration of moratorium over a certain tract of land by the immediate kin of a deceased village member, where the deceased met his/her demise. The system is also practiced by tribes in Apayao Province and is also called Lapat.


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(f) Lawa and inayan – These concepts relate to the ill consequences (inayan) of doing unfair acts (lawa) as applied to all aspects of community (ili) life, from the relationships among the community people (umili), to their relationship with the natural environment. Inayan is the foundation of the umili’s value system. Scaling Up The covenant approach may be adopted in several reforestation projects that are being implemented in the Cordilleras under the National Greening Program (NGP). The NGP is a massive forest rehabilitation program of the government that seeks to grow 1.5 billion trees in 1.5 million hectares nationwide within a period of 6 years, from 2011 to 2016. The covenant approach may also be adopted by the Department of Environment and Natural Resources (DENR) for its other reforestation projects. The covenant approach may be also adopted by LGUs who are parties to the covenant, in coming up with sustainability plans for CHARMP2. Tapping traditional institutions in NRM and protection within government projects will give greater chances of success and will ensure sustainability. Drivers The drivers and main champions of the covenant approach are the indigenous communities whose roles as traditional protectors and managers of watersheds and forest need to be recognized. Having witnessed the advantage of the approach, LGUs are expected to continuously support CHARMP2 using their available resources. The entry of extractive industries (mining and hydroelectric) in IP communities creates conflict in the utilization of watershed resources. By giving the IPs the right to full ownership of their resources, prioritization in the use of these resources will ultimately depend on them. IP communities treasure their IKSPs and integrating these IKSPs in the implementation of reforestation projects will provide better chances of sustainability.


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Mangarita Organic Farm:

Showcasing Climate-Resilient Organic Farming Technologies

Sitting on a half-hectare land in Capas, Tarlac in Region 3, the Mangarita Organic Farm (MOF) is a technology extension center operated by an NGO, Sibol ng Agham at Teknolohiya or SIBAT, to showcase models of organic farming technologies that could be adopted or innovated for family farmers converting to a more sustainable agriculture practice. The MOF aims to demonstrate technologies on crop and animal integration including diversification while highlighting the economic viability and ecological soundness of sustainable agriculture in the lowland typology of Central Luzon.  It also provides hands-on training and advice to family farmers and farm technologists on organic agriculture.  Through a small grant from the Department of Agriculture under the National Organic Agriculture Program (NOAP), the MOF showcases various models of climate-resilient infrastructure and enterprise-based production. The DA-NOAP project – “Building and Strengthening Showcase Organic Farms for Small Farmers’ Organic Standards and Certification Education in Region 3” – aims to contribute in the mainstreaming of Organic Agriculture (OA) through education that will result in increased productivity and income of family farmers. Techno-Demo components. The following are the organic agriculture models installed under the project: § Green House infrastructure - structures as adaptive mechanism for climate change; currently planted to diverse leafy vegetables and herbs. 16

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§ Fishpond and Duck Integration - a combination of fish–duck culture maximizing available water resource; both are aimed for food (protein from meat, eggs) income and pest control (for ducks). § Solar-powered Fertigation System - showcasing solar-powered water pumping and drip irrigation system to enhance food productivity in the context of climate change; currently being utilized at the 10x50 sq meter Green House. § Biofertilizer processing unit - showcasing farmer-based production/processing of various biofertilizers using farm residues as substrates; serving as storage area for harvested biofertilizers. § System of Rice Intensification (SRI) - Currently serving as 1,000 sq meter research and development area for sustainable rice cultivation with SRI as banner technology; 28 promising cultivars are undergoing Varietal Adaptability Trials (VAT) and harvesting 10 cavans total in the last two croppings. § Others: - Livestock and Poultry - Genetic Resource Conservation through Seedbanking - Nursery Infrastructure - Food Processing Area - Policy/Advocacy Work. Planning and designing climate-resilient structures. As demonstrated by the project, climate-resilient materials such as steel for beams and posts should be used for farm nurseries, livestock houses and herbariums. Cement for foundation and galvanized iron sheets should be used for roofing to build a sturdy structure that can withstand strong winds. Good stocks both for crops and animals (poultry, swine and goats) should be selected to develop strong traits resistant to extreme climatic conditions. Lessons § Favorable policies supportive and favorable to small family farmers articulated in some provisions of the 2012 Organic Agriculture law provided opportunities for organic agriculture to advance. § Demonstration or showcasing of viable and performing sustainable KLMPE 2015


agriculture technologies has greater influencing factors for family farmers who tend to have “to see is to believe” attitude. § Intensive technical advisories and “walking through “ with family farmers through on-site mentoring and guidance boost their confidence in applying organic agriculture technologies and pursuing farm innovations and experimentations. § Marketing support plays a critical role in the continued adherence of family farmers to sustainable production. The regular income generated through assured purchase of their produce is the main motivation of farmers to sustain production work. § Multi-stakeholderships as regards certification embodied by the Participatory Guarantee System (PGS) fit well with small family farmers, and is most appropriate where relations among producers, consumeradvocates and support agencies instill trust, transparency, cooperation and a common quest for access to safe food, equitable income to small family farmers, and environmental protection. Recommendations § Stringent guidelines should be modified to fit to the needs of small family farmers, advocates and promoters of Sustainable/Organic Agriculture. § OA funds should provide for contingencies to support rehabilitation when disasters in light of climate change and natural calamities. § Marketing support is vital to continuous production work especially organic products that require a market niche, premium pricing and equitable returns to family farmers. Market development should be given more support in all forms. § Overall, Organic Agriculture should be given primary attention. Inappropriate technologies in agriculture that are largely inorganicbased are already endangering the health and well-being of our farmlands, farmers and consumers alike. There is a need to make guidelines, process and requirements convenient for Organic Agriculture so that its adoption and promotion is fast-tracked and widely adopted for the benefit of all.


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Institutional Food Purchase: The MOARC Experience in CamSur

The May-ogob Agrarian Reform Community (MOARC) covers six barangays in the Municipality of Ocampo, Camarines Sur. The farming community has rainfall throughout the year but with short dry period during the summer months of March-April-May. Nonetheless, the entire ARC is now experiencing El NiÑo which is already causing stress on crops and animals. Rice is the dominant crop that is cultivated by agrarian reform beneficiaries (ARBs) in approximately 300 hectares of farmlands in the six ARC barangays. Each ARB tills an average of one hectare. Rice farming is carried out under the so-called conventional system, which is dependent on the use of synthetic chemicals for nutrient and pest/disease and weeds management; and water to reduce the volatilization of synthetic fertilizers. Accordingly, most of the farmers are a bit aware that the system they employ in rice production is causing the pollution and degradation of the

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farming environment where they depend upon for living. The average rice yield per hectare under rain-fed condition is recorded at 80 cavans (50-kilo bags) or approximately 4,000 kg, higher than the national average of 3,800 kgs. The cost of production is estimated at a little over Php 10/kg or similar to those of other rice farms of Camarines Sur. To improve the productivity of rice farms, some ARBs have adopted the practice of rotation cropping with mungbean (mongo) as main rotation crop. MOARC’s paddy rice has the Partido Rice Mill as principal outlet where only enlisted/registered farmers can do business. Vegetable is the next important food crop, which is largely maintained in backyards gardens for home consumption. Coconut, sugarcane and other fruit-bearing trees are also grown. While agriculture is the main economic pillar, the irrigation system is yet to be fully developed. Farms are characteristically dependent on arrival of rains to enable crop cultivation. Communal irrigation systems were installed in the ARC. One was funded by the Provincial Government of Camarines Sur which is presently functional, and the other was funded under ARISP II of DAR. MOARC’s Involvement with PAHP MOARC was originally established as a Samahang Nayon (Village Association) in the 1980’s. Today, MOARC has 166 members, predominantly rice farmers, 73% of them ARBs and 40% are women. The average size of each vegetable garden is 200 sqm; the MOARC also operates two demo/ communal farms. At least 30 MOARC members (18%) are into backyard vegetable production for food security as well as to augment the meagre income derived from rice farming. Vegetable production is carried out in approximately 10 hectares of farmlands. Crop selection is generally based on which vegetables are familiar to members. Commercial scale production is not necessarily attractive to members even if returns were promising due to local farmers’ lacks familiarity with production techniques. MOARC was selected as pilot partner of the Partnership Against Hunger and Poverty (PAHP), a community-based convergence program of the Departments of Agrarian Reform (DAR), Agriculture (DA) and Social


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Welfare and Development (DSWD), to raise small farmers’ income and nourish families. Under PAHP, MOARC will supply the organic vegetable requirements of feeding programs of DSWD-LGU-managed Day Care Centers (DCCs) in the locality. Addressing the DCC’s supply requirement called for improving capacities of MOARC, to which DAR and DA had committed to support. Capability-building was initially provided on organic vegetable production, support equipment and facilities, and organic farm inputs. Rain shelters were also installed to provide protective cover to seeds for germination. MOARC mobilized 30 of its farmer-members, largely women, to get involved with PAHP. Each one allocated at least 200 sqm in their backyards for organic vegetable cultivation. Eight to ten plots were established and planted with 3-4 varieties of vegetables. Each plot was devoted to the maintenance of 1 variety of vegetable. Issues / Challenges The MOARC’s involvement with PAHP is premised on a framework where farmers are producing food to be purchased by government to feed the children of farming families. They fully understand that what they grow is what their children will eat in DCCs, and still they are paid “handsomely” for their efforts. This understanding is critical in their continued engagement with PAHP such that they are even willing to bring down selling price of their produce to be at par (or even lower) with their conventional counterpart, for health and safety of their children. The average production performance of each vegetable garden is estimated at 40 kg per week for eggplant with harvest commencing on the fourth month after transplanting. At a fixed selling price of Php30/kg, the farmer gets about Php1,200 from vegetable sales on a weekly basis. Even if the cost of sales is not considered, farmers are still confident that they would be receiving comfortable returns from organic vegetable production. MOARC members are slowly veering away from their usual crop selection practice to be able to comply with the DCCs’ menu requirements. As later agreed with PAHP implementers, the DCCs will adjust their menu to what vegetables are available in the communal farm. The farmers believe that while their current DCC market is small, this

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could still grow given 14 DCCs in the ARC’s 6 barangays. At 30 pupils per DCC, they will be serving around 420 pupils at a total cost of Php655,200 annually (including rice, meat, fish, etc), which is not bad considering the accessibility of these DCCs and notwithstanding possible market expansion even just within the municipality.The farmers are not apprehensive of this arrangement because they are not dependent on DCCs alone for market. They still have the teachers and municipal employees as direct market, or they could sell their surplus commodities to the nearby flea market. To prepare for product consolidation, the farmers have constituted themselves into six production clusters at 5 members per cluster. Each cluster shall only be allowed to produce a specific range of vegetables to ensure that there will be sufficient supply quantities available when demanded. It is still early to determine what impact this project will bring to MOARC’s members and their immediate communities as concerns are still coming to the fore. The cooperative is still confined to addressing productionrelated concerns: (a) Farm input supply particularly seeds because MOARC is securing its seeds from local agro supply stations; (b) Two of the major vegetable crops planted by MOARC are ampalaya and eggplant which are very susceptible to insect infestation such that under their current organic practice, they are discarding more infested fruit than what they could harvest and sell; (c) The farmers could not plant the demanded leafy vegetables such as pechay, lettuce, cabbage, etc due to lack of water supply, and to resolve this problem, DARCO is facilitating the construction of a cistern in the communal farm; (d) Farmers are still learning the cultivation of high-value crops like cabbage, cauliflower, cucumber and broccoli which are what DCCs are now asking; and (e) Farmers need to be informed of changes in DCC feeding menu ahead of time to enable them to adjust their production targets and activities; this will require stronger coordination between user and producer which the DARPO is currently providing.  


KLMPE 2015

Sariaya Sentrong Pamilihan: A Model for Agri-Pinoy Trading Centers

Photo Source: Facebook

The Sariaya Sentrong Pamilihan is a wholesale market and processing center established in 2004 to assist family farmers to directly market their produce to local, institutional and international market. The Sentro facility is located in a one-hectare land along the national highway in Sariaya (Quezon). It is administered by the Sentrong Pamilihan ng Produktong Agrikultura ng Quezon Foundation Inc (SPPAQFI). Today, the Sentro has become a viable alternative for traders/buyers who seek good prices and reliable quality and volume of supply. It has become a major vegetable hub, reaching places as far as Bicol region and Metro Manila and other island provinces of Marinduque, Mindoro and Romblon. It is a major supplier for vegetable vendors in local markets in the nearby municipalities in Quezon, Batangas and Laguna. About 1,000 farmer members in Quezon sell their produce directly to buyers

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resulting in improved incomes for family farmers. Some 100 successful farmers now earn Php 200,000 - 2 million per planting cycle. Services and benefits. The Sentro provides a wide range of services to its farmer-cooperators: § Central depot, agricultural growing scheme, balanced fertilization farming, agricultural input, training, and transport extension; § Sentro has facilities including cold storage, refrigerated truck; § ESL system; § 24/7 operation, handling an estimated 100 tons of assorted vegetables daily; of these, 15 to 25 tons come from an average of 40 to 60 farmer-members; § Farmers Savings, SSSALKANSYA, Scholarship, Balik-Tangkilik (patronage refund). To nurture its partnership with farmer cooperators, entrepreneurs and traders, Sentro gives them marketing, merchandising and transport assistance. It provides technical advice on what crops to plant, conducts business matching with prospective buyers, and provides vegetable transport facility from the farm to the market for free. Each farmer-member who sells his or her produce to Sentro pays a fee per kilo of vegetable sold. Half of the amount goes to the operation of the facility, while the other half serves as their savings. Members can also get soft loans in the form of farm inputs and other logistics. Agri-Pinoy Trading Centers (APTCs). The Sariaya trading post is considered as the model of APTCs that the Department of Agriculture has been launching nationwide. APTCs are envisioned to be the farmers’ trading center of choice, and patronized by vendors and traders as a reliable venue for procuring quality produce at the best value. It is estimated to increase the income of family farmers by 15% to 25% due to the elimination of middlemen. Currently, 8 APTCs are operational – Pangasinan; Isabela MultiCommodity; Nueva Vizcaya Regional Organic; Nueva Vizcaya; Nueva Ecija; Camarines Norte; Quezon Corn Processing; Dalaguete (Cebu). Thirteen (13) more APTCs are in the pipeline, and intertrading among APTCs is being planned. The Dalaguete APTC opened in May 2015. It has an Electronic Price


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Monitoring Board which displays the market price per kilo of vegetables sold in Carbon market (in Cebu city) and in the trading center. Aside from farmer-producers, wo/men vegetable packers can also earn Php300-400 a day sorting and packing vegetables. The Benguet APTC which is to be launched in late 2015 will be the biggest APTC in the country and is envisioned to be a center of excellence and pilot model of value-chain approach and cooperation among stakeholders to boost agribusiness. It will be the first APTC to be co-operated by multistakeholders that include the academe and farmers organizations. Lessons The Sariaya Sentrong Pamilihan model consists of the following key elements: ยง Establishing organized farmer-cooperators; ยง Developing good farmers relation to buyers; ยง Regulating vegetable commodity price in favor of the farmers and consumers; ยง Facilitating structured learning for farmers on commodity sorting and marketing; ยง Mentoring of Installed Project Management Officers (IPMOs). A comparative overview of advantages of the APTC model over the traditional or existing business model is shown below: Traditional or Existing Business Model

Agri-Pinoy Trading Center Model

Distribution of Benefits

Only for selected business investors with own capital

For all farmer cooperators and consumers


High income driven

Collective and peoplecentered


Short-term and cash basis

Long-term and progressive

Beneficiary (ies)

Major existing business individual with enough capital

For all farmers and consumers

Social Impact

Maintained existing statusquo and industry

Strategic/ wholistic benefits for all stakeholders of AgriIndustry (from production, marketing & trading)

KLMPE 2015


GlowCorp’s Organic Marketing: Connecting Family Farmers to Sustainable Markets

Global Organic and Wellness Corporation (GlowCorp) was established to help small-scale organic farmers access sustainable markets and earn sustained incomes. It is a marketing company owned by farmers’ organizations (FOs), NGOs and individuals who are advocates of organic agriculture from different regions in the country. GlowCorp was incorporated in 2010 by eight FOs namely: Kappia (Abra), CARRD (Manila), PDCI (Camarines Sur), AFCCUI (Antique), Don Bosco (North Cotabato), Bios Dynamis (North Cotabato), SKMFMC (Sultan Kudarat) and KSN (South Cotabato). Aside from limited access to markets, small producers are often at a disadvantage due to unfavorable trading arrangements, e.g., unfair pricing schemes, overdue payments by distributors, lack of logistical support. Small-scale producers are only focused on local markets through informal channels. Specialty stores for organic products is limited in scope and reach, while supermarkets favor large commercial suppliers over small family farmers. GlowCorp’s mission is to be a market leader in organic products distribution, promote economic development, and empower 6,500 organic farming households. Currently, it has 30 shareholders and Php4 million (40,000 shares) in authorized capitalization. GlowCorp’s client base has grown from 6 in 2010 to 306 in 2014.


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Organic rice (red, black, brown, white, pink, multi-grain) comprises 71% of GlowCorp’s product lines, while muscovado sugar comprises 27%, and coco-sugar, 2%. Sales has significantly increased from Php1.4 million in 2010 to Php47.4 million by 2014. Business model. GlowCorp’s core values and motto “GlowCorp is our definition of inclusive growth” are reflected in its business model and supply and marketing arrangements. The company buys organic products from small farmers and local consolidators which it packages into quality branded products for target domestic (e.g., rice retailers, hotels and restaurants, organic shops, supermarkets) and export markets. The profits are plowed back to the small-scale producers through such schemes as premium pricing dividends and technical assistance. GlowCorp does not dictate the price of the farmers’ products, but the farmers make this decision as long as GlowCorp is not unduly disadvantaged. There is also a scientific basis in calculating the price based on production cost. Benefits to shareholders and suppliers. GlowCorp provides steady and stable markets for organic rice, muscovado and coco-sugar producers and increases the market share for organic and natural products from small producers. The company improves existing market arrangements through participatory and transparent negotiation and trading practices, and enables equitable sharing of benefits and processes. To date, GlowCorp has purchased close to Php88 million worth of organic products from small farmers, providing access to markets to more than 2,500 farmer-producers. Growth opportunities. There are tremendous growth opportunities for organic farm products. For Metro Manila alone, organic rice requirement is 2,480 sacks or 124 MT per month (488 MT per year), and this market is growing at 100% per annum. Potential export markets for organic rice include Europe, Russia and the Middle East. Moreover, the Organic Agriculture Law (RA 10068) provides support to organic producers. Targets in the next 4 years. GlowCorp aims to achieve the following targets in the next 4 years: § § § §

5 new products 800 retail channels and export 5% market share (4,000 MT sold) Php269 million organic products purchased

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§ Php360 million sales, with Php27 million net income § 6,500 farming households benefited. Strategies. To attain its targets, GlowCorp will use a mix of strategies that include: (i) Reaching more farmer-producers; (ii) Encouraging farmers and investors and owners of GlowCorp; (iii) Increasing capitalization to Php30 million; and (iv) Expanding markets: retail, wholesale, export. Challenges Traders and corporations face several challenges in organic marketing that include: § § § § §

limited working capital; erratic supply to sustain the growing market; most consumers not yet aware of the benefits of organic products; 80% of organic consumers concentrated in Manila; high barriers of entry, e.g., introduction of new product, getting new clients, working capital, exorbitant entry/listing fees and discounts, sustained product supply and quality; § logistics and warehousing; § high costs in entering supermarkets: (i) Logistics/delivery charges - 5% within Manila and Luzon, 7% Visayas, 10% Mindanao; (ii) Listing fee - ranges between Php3,000-Php10,000/SKU; (iii) Intro discount of 5% for 6 months; (iv) Regular discount ranges between 10% to 20%; (v) Value pack-Php10,000/SKU; (v) Mailer - Php200,000 - 400,000/year; and (vi) (vii) Portal fee. Lessons § Organic products from small family farmers should be of good quality. § Delivery of the right volume at the right time should be ensured. § There is a need to factor in other market players, and the quality and price of products should be at par with the other groups. § Marketing specialists/practitioners should be trained to boost the sales of organic products. § Working capital is the biggest challenge; to play an aggressive role, FOs should be backed up by adequate marketing capital. § Know customers by heart.


KLMPE 2015

Sorosoro Ibaba Development Coop: “From Sperm to Germ”

The Sorosoro Ibaba Development Cooperative (SIDC) started in 1969 as a small farmers organization of 59 members in Brgy Sorosoro Ibaba, Batangas City. Its initial capitalization of Php11,800 was invested in its first venture – a sari-sari store. Today, SIDC is the biggest agri-based cooperative in the Philippines, with Php1.8 billion assets that supports the livelihood of its 23,232 members in Northern and Central Luzon, CALABARZON, MIMAROPA, Bicol and Panay Island. SIDC has a total volume of business of Php3.076 billion and a share capital of Php445 million. Its businesses have expanded to include consumer stores, rice milling, gasoline station, purified water, cable TV and a resort. From Sperm to Germ SIDC’s “From Sperm to Germ” integration model is done at the level of the agri-cooperative. This strategy has enabled SIDC to become economically viable and sustainable and their members engaged in the full value chain and freed from indebtedness to loan sharks and private financiers. Artificial insemination. SIDC provides its members affordable artificial insemination from high-grade boars that ensures high quality piglets. This KLMPE 2015


service is supervised by SIDC’s qualified technicians in a cost-efficient manner. Contract growing. Locally known as the paiwi system, SIDC provides livelihood to its members by giving them the opportunity to raise hogs and cattle. The coop provides members with fatteners and stocks, feeds, veterinary services up to marketing of their products. All related-expenses are borne by the coop, and SIDC and the memberraiser share in the profits equally. As a coop member, the raiser also gets a patronage refund. Pig farm. SIDC has a multi-million piglet multiplier farm facility in Taysan, Batangas that houses 500 high-grade sows and boars and provides good quality piglets. Communal farm. SIDC has a communal farm facility for contract growing under a communal setup with a capacity of 1,130 heads hog fatteners. Members are provided with hog pens, stocks, feeds and veterinary products and services. Hog-selling pen. SIDC constructed a hog-selling pen to ensure a market for members who raise fatteners under contract growing. The hog-selling pen is equipped with an electronic weighing scale to speed up sale of the hogs. Due attention is given to prevent the spread of diseases. The coop charges a fee for its hog-selling pen service. Feed mill. Since 1987, SIDC has its own feed mill that produces one major input for hog production – feeds – at an average of 9,000 bags per day. The ISO-certified feed mill plant uses state-of-the-art machineries for the production of mash, pellet and crumble feeds for swine, poultry, broilers and ruminants. SIDC’s support services for farmers. SIDC has a rice mill located in Mindoro Oriental with a capacity of 220 sacks of rice a day. The coop also produces Koop Likas organic fertilizer from hog manure and chicken dung. SIDC has a savings and loan service that provides high interest rates, and where members can receive additional capital through ECL Hog Fattening and ECL Breeding in the form of feeds. SIDC has 6 consumer stores (Coop Marts) and a Supermarket that offer basic household items and agricultural inputs. The coop has a gasoline station that provides gasoline services, auto supply and other services to members.


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From Womb to Tomb. SIDC provides other benefits to its members – e.g., Free medical check-up, SIDC-Care (Hospitalization), Scholarship Grants, Study Now, Pay Later, Barangay Development Fund, E-publication, Technical and Marketing Assistance, Seminars and Trainings, Job opportunities, Mortuary aid, Patronage refund and Gifts. SIDC has a 21-channel cable TV service that is provided to members at very affordable terms. The SIDC Aqua Care purified water assures members of safe drinking water for their family. SIDC also owns Sorosoro Spring Resort, an agro-eco tourism project that has amenities for company team-building activities, summer outings and retreats. Challenges Despite its many successes, SIDC still faces several challenges in its agrienterprises including: § Inability to actively pursue the management of post-harvest facilities (e.g., warehouse, dryers, irrigations, storage, delivery trucks, shellers); § Inability to consolidate all production input requirements; § Inability to offer competitive interest rates in its loan programs and provide assistance in insurance coverage; § Inability to pursue processing (milling, refilling, processing); § Lack of marketing, distribution channels, brands that will ensure quality and quantity of supply. Lessons SIDC has been largely successful due to coop values that it has activated among its membership. The coop deems its ethical values (openness and honesty in what they do and how they do it), social responsibility and caring for others as secrets of its success. The coop encourages its members to take responsibility for their own community and work together to improve it. SIDC regularly funds charities and local community groups from the profits of their business.

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Lamac Multi-Purpose Coop: Empowering Diversified Agro-Entrepreneur Farmers

The former Lamac Samahang Nayon in Pinamungajan, Cebu was organized in 1973 by 70 farmers mobilizing an initial capital of Php3,500 (US$70). The founding members actively volunteered their talents and resources for the benefit of the community, from chipping in capital to opening up roads, setting up electric power to creating businesses, providing water and more. Through “bayanihan”, unity, faith and hard work, the members of the coop were able to make their lives better and their communities more progressive. The coop became a conduit of government services and projects for farmers, and became the recipient of many awards. In 1992, an NGO helped the coop transform into a full-pledged cooperative. Today, the Lamac Multi-Purpose Cooperative (Lamac MPC) has become one of the most outstanding and multi-awarded cooperatives in the Philippines, with total assets of Php1.1 billion, share capital of Php323.6 million, 55,800 members (73% are women), and 308 well-trained and dedicated staff (45% women). Lamac MPC has 23 business offices in the Visayas region – Cebu, Bohol, Southern Leyte, Leyte and Negros Occidental. The coop owns a bakery, pharmacy, and rice and corn mill, water refilling station, a grocery store and the popular Hidden Valley Resort. Its three-storey building in Cebu


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City has a social hall, a rooftop area, a dormitory of 40-beds and a 10-unit internet cafe. Coop’s services to family farmers The coop’s mission “to strongly respond to the holistic empowerment needs of the vulnerable sectors through socio economic programs” guides the services it provides to marginalized family farmers who are memberclients. These include financial services (e.g., credit, savings, insurance) and community-specific non-financial services (e.g., training, farming facilities, access to basic commodities). They aim to: ensure financial stability; improve educational level; improve housing; access to farming technology; and increase community involvement. Target: Diversified agro-entrepreneur farmers In 2013, Lamac MPC started a Farmer Entrepreneurship Program (FEP) that adopts the 8-steps clustering approach to agroenterprise development. It is called clustering because of the innovative method of organizing farmers into small groups called “clusters” where the enabling process of market preparedness and engagement takes place. After 10 months of operations, the clusters earned a net income of Php313,196, and each individual cluster member accumulated a Capital Build-up of Php106,373. 8-steps clustering approach to agro-enterprise development Step 1. Site selection, partnership-building and cluster formation. The sites selected were in the municipality of Dalaguete in Cebu. Five clusters with a total of 44 farmers were formed. A working group was also created to provide support services to the clusters (e.g., farm inputs/technology, production meeting venue, link to institutional markets / buyers, financial trainings / logistics, case study documentation). Step 2. Product Selection and Product Supply Assessment. The clusters selected a variety of vegetables to produce in their farms. Each cluster also prepared Production Modules and Cluster Supply Plans. Step 3. Market chain study. Market interviews were conducted in a major supermarket in Cebu. Step 4. Cluster commitment setting. Each cluster commited to collectively market their products according to their production modules and cluster supply plans.

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Step 5. Business planning and mobilization. Each cluster prepared a market plan that includes the target market, sales target, pricing, payment terms, promotions, etc. A management plan was also prepared that identifies the marketing coordinator from the coop, production site coordinators and cluster leaders and teams. The clusters also agreed on the policies they will follow. Step 6. Production / Product supply organizing. The clusters made operations flowcharts which identify specific activities and persons responsible, and value chain maps. Step 7. Test marketing. This was conducted at a major supermarket. Step 8. Sustained enterprises. As part of the clusters’ sustainability plan, Lamac MPC purchased hauling and delivery trucks, and more markets were targeted. Moreover, a Lamac MPC Farmers’ Market is now in construction, and new clusters are being formed: Cacao, Cassava, Dairy, Livestock, Coconut, Handicraft Makers, Challenges The Farmer Entrepreneurship Program encountered several obstacles in its initial years of implementation including: lack of equipments (scaling equipment, plastic crates for delivery); transportation; pricing; time; weather; lack of facilities (packing area, cold storage); inconsistent purchasing policy of institutional buyers; farm to market roads; water supply. Success Factors Lamac MPC continues to inspire by being a “big brother” to other cooperatives amidst common problems that beset coops, e.g., lack of education and training; lack of capital; inadequate volume of business; lack of loyal membership support; vested interest and graft and corruption among coop leaders; weak leadership and mismanagement; lack of government support. Its woman General Manager has cited the following as contributory factors to the coop’s success: (i) Understanding and alignment to the coop’s vision and mission; (ii) Leadership by example; (iii) Sound and effective management; (iv) Transparent government; (v) Dynamic, active and empowered membership; and (vi) Entrepreneurial spirit.


KLMPE 2015

Agus Pinoy Producers Coop (APCO): “Seed to Seed”

The Agus Pinoy Producers Cooperative (APCO) is a three-year old organic rice farmers cooperative in Agusan Sur which started with only 15 members in 2012. Today, the cooperative has 200 members cultivating 540 hectares of diversified organic rice farms, and a total asset base of Php33.3 million. In the next five years, APCO aims to serve 2,000 organic rice farmers, sell 495 tons of organic rice and 55 tons of organic palay seeds, and earn a net income of Php5 million. APCO’s business model – which it dubs as “Seed to Seed” – is focused on full value chain services to members from production to processing to marketing. The farmer’s main task is to become the best producer of food per square meter of land, while the coop’s main task is to ensure that all its members succeed in doing so.

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First, APCO makes sure that its members become smart producers and able to increase yield by providing all the production inputs they need. If farmers do not own land, the coop works to ensure that they own the land first so they can decide on the fate of their farms. Most APCO members are now owner-cultivators, having benefited from the government’s agrarian reform program which they helped to be instituted with their national confederation, the Pambansang Kilusan ng mga Samahang Magsasaka (PAKISAMA). The farmers would need seed. APCO produces several varieties of organic rice seeds: APR (Agus Pinoy Rice) Black, APR Red, APR Aromatic, APR Traditional, APR Upland, and Registered/Certified. The coop buys seeds at a premium price from members who specialize in seed selection, which it then sells to the other members. About 10 hectares of land is devoted to organic rice seed production in the APCO areas. The farmers would need help in cultivating their farms. APCO organizes member-farmworkers into clusters of 10-15 Farm Service Providers (FSPs) who supply labor for a fee to coop members during planting, weeding and harvesting. The FSPs use farm equipments that the coop has acquired from the Department of Agriculture (DA), e.g., farm tractors, rice threshers. The farmers would need modern rice farming technology to increase their yield. APCO provides extension services like coaching and mentoring to its farmer technicians who in turn give trainings on organic farming technologies to individual farmer adopters and partner organizations. Most members have set aside areas for rice, vegetable, fishponds, livestock or fruit trees in their farms. Farmers who practice Integrated Diversified Organic Farming System (IDOFs) technology have learning farms that are recognized as agro-tourism sites of the province. One IDOFS practitioner is now earning Php30,000 monthly using by raising 100 goats while planting rice. Rice paddies would need fertilizers and insecticides. APCO sells organic fertilizer to members that it either produces or buys from other memberproducers. The coop now operates 22 vermi-composting facilities and 2 organic inputs processing facilities. Farmer technicians also teach members to use APM, EPM, Bio-dynamics, and other natural and organic methods in managing pests.


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Second, APCO adds value to members’ produce to fetch a better price. APCO buys palay at a price higher than the prevailing local market price. It only buys from farmers with at least 40 bags per hectare to ensure that the farmers have rice retained for family consumption. Moreover, APCO buys seeds only from farmers whose seeds have been provided by the coop and whose farming practices have been supervised by its farmer technicians. APCO dries and mills the palay and packages them by 50-kg or 1-5-kg bags for distribution to buyers. With assistance from the DA, the coop has acquired a rice mill with a capacity of 2.5 tons of palay an hour, flat bed and solar dryers, Rice Processing Center (RPC), etc.

Third, APCO ensures members’ produce reach the consumers. The coop’s Marketing Program consolidates palay from members and partner coops. Organic milled rice is then sold to various institutions and malls, accredited retail outlets and walk-in clients. APCO has negotiated marketing contracts with local institutions to supply their rice subsidy programs to employees; supply local cooperatives marketing outlets; catering service business, etc. Negotiations are also ongoing with hotels and hospitals. Challenges APCO continues to hurdle several challenges that include: (i) Increasing the number of organic farmer adoptors; (ii) Keeping up with the demand of market.; (iii) Certification of organic rice products; and (iv) Supply management of its RPC and parboiling facilities. Lessons First, the successful implementation of the organic rice enterprise depends on the focus given to all the components of the value chain and the investments made in each component of the value chain system. For instance, a Php8.5 million investment can be utilized as follows: 􀁠 For organic rice production: Php 3,200,000 􀁠 To fund input supply, e.g., organic fertilizers and seeds: Php 1,000,000 􀁠 To purchase the organic palay of members: Php 2,000,000

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􀁠 For marketing of organic rice products: Php 2,000,000 􀁠 For organic seeds production : Php 100,000 􀁠 For packaging and labeling: Php 150,000 􀁠 For promotion and advertisements:



Second, to allow it to continue and expand its services, APCO makes sure that for every service it provides, it collects a service fee. It hauls the palay upon harvest and automatically collects the palay as a fee and other farmer’s obligations. APCO also institutes automatic savings and CBU of at least Php500 per member every harvest. Third, APCO’s competent and dedicated officers and staff are crucial in incubating the agri-enterprise. Continuous capacity-building of the officers and staff should be done to improve the coop’s management systems and its rice production and processing technologies. From its revenues and service charges, APCO is able to employ 12 professional staff (a fulltime manager, bookkeeper and cashier, professional agriculturists, and marketing officers). Fourth, increasingly erratic climate conditions has made farming a riskier business enterprise. It is then prudent practice for the coop to ensure their members’ farms. The IDOFS technology is in itself a climate-resilient farm system which includes disaster risk reduction and mitigation in every farm plan and budget. Fifth, partnership-building with government agencies and other farmers’ organizations/coops and NGOs is important for the sustainability of the enterprise in terms of financing, organizational, staff development and networking support to the coop. Lastly, to promote the organic farming system as a better and healthy way of environmental conservation, organic products must be patronized in our daily lives. The mindset of all stakeholders in the rice industry should be changed from a “devastated framework to liberation technology.”


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Subtheme 1: Sustainable agriculture and climate resiliency Lessons: 1. Mono-cropping, relying largely on a single agricultural commodity – coconut or fishing extraction as the case of Eastern Samar and Leyte, is not a resilient agricultural practice for small family farmers. Diversified and integrated farms are. 2. Utilization of indigenous practices in protection, utilization and sustainability of reforestation and agroforestry initiatives that ultimately contribute to the regular agricultural activities below the forest and agroforest areas 3. Agricultural technologies/practices should significantly contribute to the economic well-being of family farmers/indigenous peoples (reduce cost, increase food and cash incomes), the multi-functions of agriculture for small farmers.

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4. Importance of FFOs – as mechanisms for sustainability, resiliency. Critical Elements that contribute to Resiliency: 1. Diversified and integrated farming systems: 1) farm designing and planning component where farmers define vulnerability of house location and other farm infrastructure; 2) ensures food security with diversity of food sources; 3) identify cash income champion commodity and 4) lay down short-term, medium term and long-term goals or sea farming for fishing – fish culture, sea weed production, mangrove reforestation, aquasilvi production along with community-based coastal resource management. 2. Technologies that contribute to the economic well-being: Reduction of costs of production, increase productivity, diversify sources of income, integration of crops and animals, improve cash flows, among others. 3. Traditional/ Indigenous knowledge and practices: Empower family farmers and IP communities in the protection of designated forest and agro-forest areas, e.g., green covenant where IPs commit and pledge to a social covenant that defines responsibility and accountability to the forest; traditional forest land classification, e.g., a) batangan/muyonf/pinugo/ tayan – forest areas which is family/clan-owned and managed forest areas; b) classified as saguday or uma but is a forest converted to pine forest areas which are largely communal forest after inter-marriages between descendants of original holders; c) Lapat which literally means prohibit – prohibit to cut, prohibit to hunt, prohibit to mine, among others for a specific period of time. 4. Stronger and wider network of small farmer organizations: Effective mechanisms for cooperation, farmer to farmer learning exchanges, network especially during disaster relief and rehabilitation, influencing public programs and economies of scale in collective access to markets. Subtheme 2: Enlarging farmers market power 1. Changing the mindset of Family Farmer ü Has a vision of sustainable agricultural development where he/she plays a vital role ü Sees her/himself as an entrepreneur, not a poor but a rich farmer ü A redefinition of self-worth, a paradigm shift towards right attitudes such as hard work, discipline, perseverance and continuous learning ü Not a beneficiary but a business partner.


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” There is no barren land, only barren mind.” ”There is non-fertile soil, productivity depends on the hands of the farmers.” 2. Organized farmers have greater power to market ü Have access and ownership to land -- land to the tiller as basis of development, plus technology and inputs ü A member of a farmers organization ü Is committed and dedicated to his/her organization ü Organized family farmers have greater market power. 3. Family farmers organization participates in the market ü Not only as supplier but as a partner and investor ü Build a strong culture of trust in business partnership with traders and buyers ü Have regular planning and interaction between the farmer /buyers and traders ü Conscious to link to other players in the value chain ü Full value chain approach. 4. To empower farmers towards effective market ü Government must have supportive policies/programs that favor family farmers’ enhanced access to market, such as PAHP, farmers trading posts, marketing of organic products and market information systems. ü Should have access to social protection program such as crop insurance, health coverage and retirement benefits for aging farmers üThis way we also encourage young farmers to love farming and engage in farming as a business. Subtheme 3: Building agri-cooperatives Summary profile of 3 agri-coops: Summary Profile




Location / Coverage

Sorosoro, Ibaba, Batangas City operates in Northern Luzon, Aklan, Mindoro, Bicol and Batangas

Pinangumahan, San Francisco, Cebu with 23 Agusan del Sur offices in Cebu, Bohol, Leyte, Southern Leyte and Negros Occidental

When Established

1969 (59 members)

1973 (70 members)

2012 (20 members)





KLMPE 2015


Success indicators

- Total assets of Php1.8 billion

- Php1.1 billion in - Php33.3 million assets assets

- Total volume of business of Php3.076 billion

- Share capital of - Serving Php323.6 million 200 organic rice farmers - More than 300 staff cultivating 540 - Share capital of has of diversified -Services/ Php445 million organic rice Businesses: bakery, farms - Services / pharmacy, rice and Businesses: Pig corn mill, water - Target to serve industry (from sperm refilling station, 2,000 organic to germ); various grocery store, resort rice farmers, member services sell 495 tons - 3-story building (from womb to of organic rice in Cebu City with tomb); Resort, and 55 tons of social hall, rooftop, cable TV, gasoline organic palay dormitory, and station, rice milling, seeds, earn net internet cafe aquaculture income of Php5 million

Lessons: ü Value chain development (sperm to germ, seed to seed, cluster approach) ü Relevant services to members – “balik tangkilik” ü Competent management staff ü Entrepreneurial leadership ü Cooperative values imbibed by members ü Participation of women ü Network of support from government and CSOs ü Knowledge resources and management. Challenges: · Ensuring that economic objectives are achieved without sacrificing the social mission · Transforming the prevailing economic system towards just, caring, we- centered system · Concentration à Democratization/Just · Environment Degradation àNurturance · Social Disintegration à Peace and Solidarity 42

KLMPE 2015


The following policy issues and recommendations are results of subtheme group discussions on 3 priority policy issues and recommendations for GOs (government organizations), CSOs (civil society organizations) and FFOs (family farmers organizations). Subtheme 1: Sustainable agriculture and climate resiliency 1. Inadequacy of services to upscale adoption of diversified and integrated and organic farming systems GOs: ü Expand/widen/broaden government services on information, financial, technical, research and extension, tool and equipment, infrastructure that would encourage farmers to adopt diversified and integrated farming systems. CSOs: ü Help farmers develop capacity-building interventions for delivery of services to their members. FFOs: ü Capacitate FFOs to initiate financial, training and extension services to their members ü FFOs as conduits of government services ü Inclusion of budget to support expansion of services to farmers. KLMPE 2015


2. Exclusion of farmers practicing diversified and organic farming in existing insurance systems GOs: ü Expand coverage farmer and agricultural insurance to include farmers in diversified and integrated farming systems, organic farming, among others. CSOs: ü Assist FFOs in developing services to their members. FFOs: ü Where possible, Initiate insurance and social security services to their members ü Inclusion of budget to support expansion of services to farmers in the BUB process ü Where possible, initiate insurance and social security services to their membersü Inclusion of budget to support expansion of services to farmers in the BUB process. 3. Accountability of NOAB representatives to family farmers organizations and CSOs GOs ü No recommendations. CSOs ü Advocate for the creation of Regional Advisory Council. FFOs: ü Strong participation in the selection of representatives to the NOAB. 4. Weak FFOs and networking, existence of independent, non-aligned, primary farmers organizations they represent GOs: ü Support farmers initiatives for cooperation, learning exchanges and joint initiatives or activities. CSOs: ü Provide opportunities for cooperation and exchanges among FFOs. FFOs: ü Building networks or federations and as platforms for cooperation, learning exchanges and joint activities. 44

KLMPE 2015

Subtheme 2: Enlarging farmers market power 1. Weak capacities of family farmers to enter into fair trading (e.g., value addition to existing products, entrepreneurial skills, technologies GOs: ü Increasing the budget at DA, DAR and other related government bodies towards capacity building programmes and services related to product development, entrepreneurial skills and technologies ü Providing financial assistance, support services such as irrigations, farm to market roads, storage and warehouses, mills, dryers, chillers ü Strengthen existing farmer registration system and rationalize registering body (National Statistics vs DA). CSOs: ü Nurturing assisted FFOs towards capability-building of farmers on strengthening roles in the value chain development especially in market. FFOs/Coops: ü Exchange and sharing of good practices among farmers with support from government. ü Expanding farmers and fishery social protection which includes health coverage, retirement and occupational health safety protection, crop insurance. 2. FFOs and coops lack resources and capabilities to fully engage in open market transactions with local traders GOs: ü Support agri cooperatives strengthening with full value chain support in financing, business development, marketing and infrastructures. ü Support market information systems through market researches which accessible by coops and FOs. 3. Existing market of farmers are not yet fully diverse GOs: ü Institutionalize and expand PAHP or procurement of food supplies from family farmers and explore possibilities of integrating APTC and PAHP ü Hasten passage of National Food Security Bill, and define family farmers including incentives to their organizations ü Expand the trading post model of Sariaya, Quezon and promote other marketing models such as local/community-based trading, inter-trading and organic food products consolidation.

KLMPE 2015


Subtheme 3: Building agri-cooperatives 1. Policy Framework ü Registration / Legal Basis for Agri-Coops ü Financing guarantee system and interest rate ü Crop insurance expanding to other crops and flexibility ü Support services ü Social protection for farmers ü Taxation Action Points / Recommendations: a) Strengthening of Agri-Coop Bill b) Review/ Revisit and amend the insurance policy coverage of PCIC of the low land, upland, other crops and livestock. 2. Organizational strengthening of Agri-coops ü Governance / Membership development ü Management ü System ü Financial capacity. Action Points / Recommendations: a) Unification of coops/FFOs b) CSO and coops to proposed classification of Agri-coops based on level of organizational capacity of strength and to be approved/adopted by CDA c) CDA to have regular program with funding on monitoring the cooperative. 3. Production and Marketing ü Technologies ü Sustainable farming systems. Action Points / Recommendations: a) Provision support in post-harvest equipment, processing and transport facilities. b) Provision on subsidy on working capital for agri-coops/farmer organizations acting as local market consolidator (LMC) c) Provision on subsidy for inputs.


KLMPE 2015

2015 IYFF+1 ACTION AGENDA WE ARE FAMILY FARMERS ORGANIZATIONS and RURAL DEVELOPMENT NGOs coming from different parts of the country engaging national government agencies on the key issues identified in 2014 IYFF national conference; HAVING generated lessons after discussing GOOD PRACTICES ON THREE THEMES such as sustainable agriculture and climate resiliency, enlarging farmers market, and agri-cooperatives; REALIZING THE IMPORTANCE OF DIVERSITY in production and markets, strong ORGANIZATION of farmers, and PARTNERSHIPS among government, civil society, and family farmers organizations, AGREED to pursue the following measures in 2016. We will actively promote and undertake climate resilient agriculture by: 1. Transforming our monocrop farms into integrated, diversified, organic farms (IDOFs); 2. Increasing the budget on organic agriculture and adapting government research, irrigation, credit, farmers extension, infrastructure, tool and equipment, farmer and agriculture insurance, and other social protection, production and marketing support services to the requirements of IDOFs; 3. Increasing capacity of our respective organizations in climate resilient farm planning, record keeping, accessing public programs including Bottom Up Budgeting, meaningful participation in the selection of NOAB representatives and creation of NOAB regional advisory council, and in networking among ourselves in various platforms to pursue joint activities. We will enlarge farmers market power by: 1. Passing a law on institutional purchase such as the National Food Security Bill, defining family farmers, including incentives to family farmers 2. Expand and upscale APTCs to cover more sites and explore possibilities of merging with PAHP and other relevant programs 3. Ensure all support services and social protection programs to transform family farmers into sustainable agri-entrepreneurs

KLMPE 2015


We will strengthen capacity of our agri cooperatives in the country by: 1. Improving the legal policy framework on agri cooperatives to include the passage of the Agri-Coop Bill, expanding PCIC coverage, social protection and support services to farmers and sustaining taxation incentives to cooperatives. 2. Providing monitoring and customized interventions to agri cooperatives, developing their governance, managerial, financial, and technical capacity to effectively provide full value chain production, processing and marketing services to members. 3. Synergizing our agri-cooperatives, consolidating strengths and initiatives at different levels and continue building partnerships with government, CSOs, private sector and inter-governmental agencies. We remain committed to pursue the imperatives of asset reforms fundamental to the blossoming of climate resilient, sustainable, and entrepreneurial family farmers. In this regard we will continue to intensify our joint advocacies in enacting into law the extension of CARPER and the coconut farmers trust fund. We will continue to pursue our advocacy towards the transformation of NCIP and BFAR into effective organizations that will ensure the faster completion of the distribution of ancestral domain titles to indigenous peoples and the delineation of municipal waters. We will continue to make our programs not only gender-sensitive but also age-sensitive. We will jointly formulate and advocate for the passage of a Magna Carta on young farmers that will ensure more services and incentives to the development and growth of young farmer-entrepreneurs. Understanding that developing family farmers would need long term development interventions, we will jointly lobby for the United Nations to build on the gains of 2014 IYFF by asking our national government to endorse a declaration of an International Decade of Family Farming. Finally, we all SEE the importance to institutionalize the collaborative effort on IYFF of government, CSOs, and FFOs in the yearly conduct of Knowledge and Learning Market and Policy Engagement. We will jointly advocate for the enactment of an Executive Order from the Office of the President that will institutionalize the KLMPE-IYFF Technical Working Committee, putting an annual budget that will ensure broader participation especially of the young and women farmers and fishers associations and cooperatives. DONE THIS 26TH DAY OF NOVEMBER, 2015 AT DILIMAN QUEZON CITY. 48

KLMPE 2015

Advancing Farmers' Climate Resilience and Market Power  

Published by: 2015 KLMPE TWG with the support of the International Fund for Agricultural Development (IFAD) Philippine Country Office

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