3rd AGRI BUSINESS ECONOMICS CONFERENCE Davao City July 13-14, 2011 Exploratory Study of the Potential Benefits and Challenges of a Vegetable Bagsakan Trading Center Project of Kablon Cluster
FLORO T. ISRAEL UPSTREAM AE Coordinator South Cotabato Project Site
JERICK AXALAN Research Assistant UP Mindanao School of Management
his study will explore the possible benefits and challenges that Kablon cluster face in setting up this center. This will look at the possible benefits of the project in t infrastructure facilities, and the maturity level of the cluster in sustaining its operation.
Objectives of the Study To explore the possible benefits and challenges that a farmer cluster faces in setting up the vegetabe trading center. To describe the learnings of the farmer cluster in the setting up and operation of the trading center.
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Outline of the Presentation 1. Brief Description of Barangay Kablon 2. Brief History of Samahang Magsasaka ng Kablon (SAMAKA) 3. Agroenterprise Development (AE) Interventions 4. Cluster Maturity Level 5. Benefits & Challenges of the Trading Center 6. Future Plans School of Management
Brief background of Kablon project site
9 Kablon, Tupi – located within the foothill of Mt. Matutum in South Cotabato 9 5650 – total population 9 65% belongs to B’laan tribe School of Management
Barangay Kablon 9 32 km from Koronadal City 9 35 km from General Santos City 9 Vegetable farming – common livelihood 9 One of the largest vegetable producing barangays of tropical & semi-temperate vegetables in the Municipality of Tupi, South Cotabato School of Management
Samahang Magsasaka ng Kablon (SAMAKA) 9 organized in September 2007 9registered with the Department of Labor & Employment on February 17, 2011 9 40 farmer members 9 formation of SAMAKA was initiated by the Barangay Council of Kablon, Tupi as lead and partners of different institutions in terms of agriculture, economic development and environmental protection School of Management
Agroenterprise Development Interventions thru Clustering Approach 3 Clusters formed with 26 farmer members of SAMAKA Undergone basic marketing training, market visits, identifications & negotiation of buyers Formulation of Clusters AE Plans
CRS AE Guidebook, 2008 School of Management
Product Selected for Cluster Marketing Before Acquiring a Trading Center Sweet Pepper
Carrot
Cabbage School of Management
Volume Sold Before Acquiring Stall in Gensan Bagsakan Area Vegetable Total Kg Cabbage
4,470
15/kg
Gross Sales 67,050
Carrots
1,089
31/kg
33,759
Sweet Pepper Total
1.069
29/kg
29,412
6,628
Price
130,221 School of Management
Volume Sold in the Veg. Trading Center in Gensan Bagsakan Area Type of Vegetable 1. Tomatoe (crates)
Volume
Buying
Sales
Gain
12,070.00 3,110.00
2,000
8,960.00
2. Raddish
731
5,220.00
7,109.00
1,889.00
3. Carrot
205
2,411.00
3,375.00
964.00
4. Chinese Cabbage
258
2,246.00
3,000.00
754.00
5. Squash
542
1,147.00
2,236.00
1,089.00
6. Head Cabbage
190
1,540.00
1,780.00
240.00
7. Sayote
240
620.00
800.00
180.00
23
460.00
690.00
230.00
272.00 408.00
136.00
8. Atsal 9. Eggplant
34
10. Pechay
21
57.00
305.00
248.00
11. Taro (palawan)
58
116.00
240.00
124.00
TOTAL
4,301.60 22,777.00 31,605.00 8,828.00
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Marketing Cost During the Operation of the Trading Center Breakdown 1. Tarnspo/Skylab 2. Transpo/Van 3. Stall rental 4. Labor/bagsakan 5. Labor/field 6. Crates TOTAL Net Profit
Cost 2,200.00 1,800.00 1,760.00 713.00 537.50 65.00 6,355.50 2,472.50
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Market access before with project intervention
Wholesalers/ Consolidators
Supermarkets
Processors
Non cluster farmer
Retailers Jamboleros
Improved market access with project intervention Year 1-2 of Project Implementation Supermarkets
Cluster farmer
Cluster
Wholesalers/ Consolidators
Processors
Retailers
Improved market access with project intervention Year 2-3 Wholesalers
Cluster farmer
Non cluster farmer
Other cluster in province
Cluster
Cluster trading centre
Retailers
Supermarket
Maturity Level on Organizational Development – Level 3/5
• Cluster has regular meetings called by its cluster leaders, with written agreements, and written policies
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Maturity Level on Market Position – Level 2/5
Market is strengthened : a) Markets are maintained and product volume is scaled up. b) There is build up of buyer relations.
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Maturity Level on Management Capacity – Level 2.5/5 Cluster leaders and assigned management people are functioning: a) Roles and responsibilities spelled out. b) Task related trainings done. c) Agreed scheme of remuneration tried out.
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Maturity Level on Supply Capacity – Level 2/5 Regular product supply coming based on the enterprise supply plan: • Cluster members can supplement each other’s supply in times of deficit. (coordination for back-up supply, farm records)
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Maturity Level on Financial Resources – Level 2/5 Cluster start to experience marketing earnings (not regular yet). a) Enterprise transactions are recorded. b) Service fees (management and/or marketing are initially paid)
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Benefits of the Veg. Trading Center 1. Awareness of the daily price information 2. Wholesale buying price in the barangay is also based on the prevailing price in the bagsakan center 3. Assurance of certain profits to recover marketing costs 4. Established relationships with other consolidators and buyers in the trading center. School of Management
Challenges 1. Lack of capital to purchase vegetable products from non cluster members
2.Unpredictable weather condition.
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Learnings 9Prices of different commodities may change anytime of the day depending on the supply landed in the bagsakan area either from South Cotabato, Sarangani, or Davao del Sur. 9Classified or sorted vegetables of good quality may command better price compared to not classified products. 9Peak trading time is from 4:00 pm up to 8:00 o’clock in the evening and products from the barangays should be in bagsakan before 4 pm.
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Learnings 9 Establishing name in the business community
9Gradual enhancement of entrepreneurial skills, like negotiations, pricing and recording system among management staff.
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Future Plans After 1. Mass production of tuberlets for commercial purposes School of Management
Future Plans 2. Supply quality vegetables to supermarkets in SOCSKSARGEN area
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Future Plans After 3. Establish rain shelter structure project for high valued vegetables vegetables;
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Future Plans After
4. Integration of SAMAKA Development Plan to Barangay & Municipal Local Government Units.
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Major Partner Institutions assisting Kablon clusters: • UP Strategic Research & Mgt. UPSTREAM) • Landcare Foundation of the Philippines Inc. (LFPI) • Tupi Municipal Agriculturist Office
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Other Supporting Partner Institutions: • Provincial Agriculturist Office • Development Alternative Framework • Growth w/ Equity Mindanao • Gensan Bagsakan Coop School of Management
End of Slide
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