Bridging the Gaps: Linking the Farmers to Appropriate Markets The Kasilak Development Foundation Inc. (KDFI) Initiatives and Experience in Maragusan, Compostela.

Bridging the Gaps: Linking the Farmers to

Appropriate MarketsThe Kasilak Development Foundation Inc. (KDFI)

Initiatives and Experience in Maragusan, Compostela Valley Province, Philippines

Joemil Saloma MontebonExecutive Director, KDFI

Presentation to the FAO-Vredeseilanden Sub-Regional Seminar on Enhancing Capacity of NGOs and Farmers Group in Linking Farmers to Markets

9-12 May 2006, Bali, Indonesia

FAO-VREDESEILANDEN Subregional Seminar on Enhancing NGO’s and Farmer Groups to Link Farmers to Markets

Name of Organization: Kasilak Development Foundation Inc. (KDFI)

Date Organized: Organized in 1997; result of a learning-experience from the Libuganon Watershed Project in Davao del Norte – a 500 has. watershed development project co-funded by USAID and Dole-Stanfilco

Nature of Organization: duly registered with Securities and Exchange Commission (SEC) as a non-stock, non-profit social development organization

Membership and Affiliation: • VOICE Network Philippines, a national organization of volunteer organizations • Protected Area Management Board (PAMB) for Mt. Kalatungan Range Natural Park • Sarangani Province Empowerment and Community Transformation Forum (SPECTRUM)

Provincial Areas of Operations: Bukidnon, North Cotabato, South Cotabato, Davao City, Compostela Valley Province, Sarangani

Partners: - Catholic Relief Services (CRS) – USCCB Philippine Program - International Center for Research on Agroforestry (ICRAF)/ World

Agroforestry Research Center- Stanfilco, A Division of Dole Philippines- Pilipino Banana Growers and Exporters Association (PBGEA)- Philippine Business for Social Progress (PBSP)- Local Government Units (LGUs)/ DENR/ DepEd- Other NGOs i.e. Mahintana Foundation Inc.,


Institutional Programs...

Watershed and Natural Resource Management

Livelihood and Income Augmentation

Support to Basic Social Services:• Education

• Health

Partnership Development and Linkage Building

Program Strategies...

Program Development and Resource Mobilization

Strengthening of Community-based Organizations

and their structures


Other Development Players and/ orStakeholders

Community Development and Environmental

Management

Corporate Sectors/ Business Community

Corporate Sectors/ Business Community

Government Sector i.e. LGU (Mun./ Brgy.) &

Gov’t Line Agencies

Government Sector i.e. LGU (Mun./ Brgy.) &

Gov’t Line Agencies

Civil Society/ NGOs/ POsKasilak Development

Foundation Inc. (KDFI)

Civil Society/ NGOs/ POsKasilak Development

Foundation Inc. (KDFI)

Community

Community

Resource Providers andDonor Community

Resource Providers andDonor Community

Other Development Players and/ orStakeholders

Community

Community

Engaging the Stakeholders: Strategic Framework on Partnership and Community Development


Location of Maragusan

Compostela Valley Province,

Region XI

Municipality of Maragusan

• Situated in the Eastern Mindanao Corridor covering 11 Municipalities/ Towns• Elevation Range: • Total land area: 54,745 hectares - 46,771 Forest/ Upland Area (85.4 %)

- 7,973 A & D (14.6 %)


Major Development Concerns...

Municipality of Maragusan, ComVal Province

• Low Agricultural Productivity

• Environmental Degradation

• In adequate Infrastructure

• Limited Access to Basic Social Services

• Underdeveloped Tourism Potentials


The Maragusan Valley Area ResourceDevelopment (MaVARD) Project

communities

communities communities

• Agriculture-Extension

• Natural-Resource Management• Agro-Enterprise Development and Support to Marketing

• Community Infrastructure Support

Our Response:

Components:


Project Background• The implementation of MaVARD Project is supported by CRS-USCCB Philippine Program under its Small Farms and

Marketing Program together with Stanfilco, A Division of Dole Philippines Inc. and the Local Government Unit (LGU) of Maragusan.

• The Maragusan Valley Area Resource Development (MaVARD) Project started in February 2005 and has two phases:– Phase 1: Community Organizing through Participatory Action

Research (CO-PAR)– Phase 2: Implementation of development interventions

identified in Phase 1

• During the second half of the year, two complementary sub-projects were also developed:– Maragusan Integrated Natural Resource Conservation and

Development (MINARD) Project – Maragusan Livelihood and Enterprise Development Center

Project (MLEDC)


MaragusaMaragusann

SurigaoSurigao

Tagum City

Agusan del Agusan del NorteNorte

Davao Davao CityCity

Agusan del Agusan del SurSur

Maragusan Valley Vegetable Flow

LeyteLeyteMajor Crops• Chayote• Tomatoes• Bell Pepper• Coffee• Squash • Beans• Eggplant


Agri-Marketing assistance in Maragusan Valley

Farmer Level Institutional Level

• Formation and training of Commodity Groups (Clusters) in the partner communities

• Market opportunities identification / Market assessment with existing products

• Market visits

• Enterprise design and implementation

• Trial Deliveries, Assessment

• Scaling-up

• Support for the opening and operation of the Maragusan Trading Post

• Support for the organization and training of commodity-based (Community Vegetable Associations, etc.) and sectoral (Rural Improvement Club and Municipal Council of Women) groups

• Support for the establishment and operation of the Maragusan Livelihood and Enterprise Development Center

• Support for the training and capacity building of key LGU Staff (MEEDO)


Territorial Approach to Agro-Enterprise/ Marketing:A tool for community empowerment and enterprise development(as adapted in the Philippines from CIAT-CRS Learning Alliance)1. Site Identification

2. Partnership Development

CRS – NGO – Farmers – LGU – Business Sector

3. Community Involvement/ Working Group for COPAR

• Data Gathering

• Market Opportunities/Choices

4. Enterprise Planning

5. Enterprise Plan Implementation

• Test Market (Trial Deliveries)

• Evaluation

Improvements

Scaling-Up


Site/ Area Focused Approach

Nestle Phils., Inc.

B-Meg Corn

Supplier

Brgy Magcagon

g

Brgy Saranga

Brgy Mahayaha

y

Brgy Parasanon

Brgy Tupas

Brgy New Albay

Vegetable Group

Coffee Group

Vegetable Group

Vegetable Group

Vegetable Group

Corn Group

Rice Group

NCCC Mall Maragusan Wholesaler

s & RetailersDavao Traders

Coffee Group

Short-listed major commodities & identified potential farmer partners

Training on Marketing, conducting Market Research and Economics of Production

Market Research and Market Visit

Maragusan Bagsakan

Enterprise design & implementation

- Meet and negotiate with supermarkets & other high value markets for direct farmer deliveries

- Seek assistance from individuals & institutions who can provide information & services

- Assist in the planning with a champion commodity team

- Launch a Trial Delivery to a high value market

- Assess the outcome & planning for possible scaling-up


Selecting the right crop for the right market

Short-listing of major commodities


Learning the Economics of Business:

Training for the Commodity Groups

Farmers were trained on computing Cost of Production, Product Flow and Market Research



Benchmarking to other vegetable producing areas

Key Government Local Officials and Farmer Leaders visited major vegetable producing community in

Mindanao.



Farmers from the identified Commodity Groups visited and interviewed and compared potential buyers. The Farm Manager of Nestle in Tagum

stressing the importance of quality.

Market Visits by Vegetable & Coffee Cluster Members and learning the art of negotiation

Market Research and Market Visit


Preparation for the Vegetable Trial Delivery

Cluster Members sorting and packing the vegetables for delivery to one of the major shopping Mall in Davao City

Enterprise design & implementation


Trial Delivery to Davao City Mall

Delivered vegetables were graded and checked for quality


Preparation for Coffee

Trial DeliveryPlanning session for volume

consolidation with coffee farmers

Farmers sorting and drying coffee beans to make sure that it passes the quality standard/ requirement of Nestle Philippines Inc.


Agro-Enteprise Marketing Support• Vegetable Sorting Shed• Plastic Crates and other packing materials• Weighing Scale

Infra. Support• Community Water System for Household and Farm Use• Farm to market roads• Multi-Purpose Driers and other post-harvest facilities, i.e. warehouse

Agri-Extension Services• Farmers Field School• Farm Trial Technology Verification• Cross-Farms Visitation

Capability-Building • Market Visits• Marketing Planning• Participation in Vegetable Congress• Maragusan Livelihood and Enterprise Development Center (MLEDC)• Mindanao Agro-Enterprise Learning Alliance

Scale-Up• Looking at other markets

• Improve farming system to increase production• Strengthening the Clusters

• Enterprise Planning


Construction of Vegetable Sorting Shed

Provision of Plastic Crates for Vegetables

beforeNow

Marketing Support


• Appropriate/ Sustainable Upland Farming Practices • Promotion of Natural Farming System/ Technology

Farmers’ Field School (FFS)- a 16-weeks community-based, farmer-oriented farming-learning system.

Agri-Extension Support


• Crop and Cropping System

• Crop Production on a Sustained Yield Management




• Production Programming among the Vegetable Cluster Groups to meet and sustain Market Demand/ Requirement.

• Farmer-participants and Members of the Vegetable Clusters are provided with seeds’ support (70 % of production for the cluster).




Looking at other Markets

Scaling-Up for the Markets

Marketing Planning

Capability-Building


Construction of Maragusan Livelihood and Enterprise Development Center (MLEDC)

• The Center was designed:– To coordinate all the livelihood/ enterprise-related activities of the

municipality.– To be the venue for all the trainings pertaining to community livelihood and

enterprises– To be the market facilitation and livelihood

information center of the municipality.– The Center is under the Management of

Municipal Economic and Enterprise Development

Office (MEEDO)

Capability-Building


The Mindanao Agro-Enterprise Learning Alliance Workshop (MaELA)- a Mindanao-wide CRS partner NGOs’ “learning-alliance” initiative to further the objectives of Territorial Approach to Rural Agro-enterprise Development-Area Based Resource Assessment Framework developed by CIAT.

1st MAELA WORKSHOP-FORUM in Bukidnon Province

• Territorial Approach to Rural Agro-Enterprise Development• Partnership Development and Cluster Formation• Planning and Strategizing on market research and study

Capability-Building


Lessons Learned… Cluster Formation/ Capability-Building of Farmer Group

• Quantity is power; quality is trust

- Other Farmer Groups have successfully penetrated

formidable

markets and grow by leaps and bounds after successfully

organizing themselves.

• Organization is the key

- Strengths lies in commitment of members in the

organization.

- Manage the organization in a business like manner.


Knowing the Market/ Market Familiarization

• “Seeing is believing” – this facilitates better understanding

and

appreciation on the part of farmer-partners on the market.

• Seek supportive or “friendly” buyers and business service Seek supportive or “friendly” buyers and business service

providers providers

during test markets when much learning is needed.during test markets when much learning is needed.

Lessons Learned…

Going Back to the Basic

• Integrate Production Programming to Marketing/

Enterprise Development Planning.

• Matching of volume produce vis a vis market requirement


Lessons Learned… Engaging other Stakeholders/ Partners and Networking

• Seek the expertise of people who are knowledgeable in

the

industry. They probably have tried the idea that you

have in

mind.

• Secure support from the Local and National

Government:

Enabling Policies and Programs.


• Logistics Support

- Handling - Packaging - Storage Facility - Hauling and Transportation

• Quantity and Quality of Produce

- Increase and sustain production volume to meet

and sustain market requirement.

Challenges and Direction…


• Strengthening of clusters

- Enhancing organization and enterprise management capabilities of farmer-clusters

• Scaling-up

- Expand participation of farmers and formation of clusters in the other barangays to address volume requirement of the market as well as to access other markets in other locations

Challenges and Direction…


•Sustaining the Initiative

- Building and enhancing capacities of NGO and

partner

communities to sustain the initiative.

- Engaging more development institutions and

resource

providers as partners.


Maraming Salamat po!

Bridging the Gaps: Linking the Farmers to Appropriate Markets The Kasilak Development Foundation Inc. (KDFI) Initiatives and Experience in Maragusan, Compostela.

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