Bukidnon Cluster Experiences on Varied Chain Design Dante I. Apara UPSTREAM, Inc. Rodel R. Real Sylvia Concepcion UP Mindanao, Philippines Peter Batt Roy Murray-Prior Fay Rola-Rubzen Curtin University,Australia School of Management

Bukidnon Project Areas

Impasugong cluster Product: Ampalaya

Kilapagan Cluster 1 and 2 Products: Squash Eggplant Sweet pepper

Taguican Valley Cluster 1 and 2 Products: Squash Sweet pepper Ampalaya Eggplant

Songco Cluster Kaatoan Cluster Products: Sweet pepper & Cabbage

Source: Landcare School of Management

Objective of the study 1. To describe the different chain design in Bukidnon cluster 2. To share the learnings and opportunities of Bukidnon clusters.

School of Management

Bukidnon Clusters MUNICIPALITY/CITY

Lantapan

BARANGAY

NAME OF ORGANIZATION

NUMBER OF MEMBERS

CROPS IDENTIFIED

Songco

PAGLAMBU

13

Kaatoan

PAGLAMBU

13

Sweet pepper & cabbage Sweet pepper

Impasug-ong

Poblacion

Amapalaya

6

Ampalaya

Malaybalay City

Kilap-agan 1

Kilap-agan Gardeners Association

10

10

Taguican 2

Nagkahiusang Lumad ug Dumagat nga Mag-uuma sa Can-ayan

Squash & Eggplant Sweet pepper & eggplant Squash & Eggplant sweet pepper & ampalaya

7 CLUSTERS

4 organization

65 members

Kilap-agan 2 Taguican 1

TOTAL

5

8

School of Management

SUMMARY OF HARVEST AND SALES OF BUKIDNON CLUSTERS as of June 2011 BARANGAY/ CLUSTERS Songco Kaatoan Poblacion Kilap- agan (1) Kilap-agan (2) Taguican (1) Taguican (2) TOTAL

KIND OF VEGETABLES Sweet pepper Cabbage Sweet pepper Ampalaya Squash Eggplant Sweet Pepper Squash Ampalaya

VOLUME ( Kilos) 10,513 9,310 14,130 3,400 14,122 3,417 80 5,500 798 61,270

SALES (Php) 364,613 186,200 423,900 93,055 127,098 34,170 3,200 44,000 19,152 1,295,388

School of Management

Before project implementation

Trader/financiers Farmers Wet market

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During project implementation Wholesaler in CDO, Davao and Bukidnon

Farmers

Cluster

Consolidator in CDO ,Gensan and Davao

Market facilitator in CDO

School of Management

Market Chain: Songco and Kaatoan Clusters Farmer s

Clust er

Consolidato r

Process or

• Test deliveries of sweet pepper to consolidator. • The problem is post dated cheque without sufficient funds. • The clusters decided to stop delivering to consolidator. School of Management

Market Chain: Songco and Kaatoan Clusters Farmer s Bukidnon Cooperativ e Bank (BCB) • • • •

Cluster

Market Facilitato r (CDO)

Distribution of products from cluster to market facilitator BCB received payment from market facilitator Clusters have the assurance of their products and loan repayment. Encountered internal problem between the market facilitator and clusters. School of Management

Market Chain: Songco and Kaatoan Clusters Consolidator/ wholesaler in Davao

Farmer s

Consolidator/ wholesaler in Cagayan de Oro

Cluster

Consolidator / wholesaler in Bukidnon

School of Management

Market Chain: Ampalaya cluster Malaybalay wholesaler

Farmer s

Kisolon Tabuan

Cluster

• 60% of Ampalaya goes to wholesaler in Malaybalay • 30% goes to Kisolon (Tabuan) • 10% goes to Food service institution

Impasug-ong –Food service institution

School of Management

Market Chain: Can-ayan Clusters Malaybala y Wholesaler

Farmer s

Tacloban Biyahedor

Cluster

Cagayan de Oro City market

School of Management

Institutional Market Negotiation • Five farmer leaders of Bukidnon cluster negotiated with Institutional Buyer 1 last February 28, 2011. • As agreed, delivery of farm product is 3X a week. • Each cluster has a designated vegetables for Institutional buyer 1

Products Delivered to Institutional Buyer 1 y

Delivery of Bukidnon clusters at Institutional Buyer 1

y

Three Dropping points every delivery 3X a week delivery Time of delivery is from 6:00 am to 9:00 am

y y

Renegotiation to Institutional Buyer 1 • A problem occurred after several deliveries over time of bidding. • As agreed bidding is done every Monday in every week of delivery. • As a result of the renegotiation both parties have agreed for a fixed price within that week of delivery. • Now, bidding is every delivery

Different Products Delivered to Institutional Buyer 1

First Trial delivery to Institutional Buyer 1 Kinds of vegetables

Volume (kg) Institutional Malaybalay Buyer 1 Whole sale price (Php) price (Php)

Carrots

230

37.00

20.00

Cabbage

240

25.00

17.00

Ampalaya

122

40.00

25.00

Eggplant

142

30.00

10.00

Ginger

115

30.00

20.00

Cauliflower

24

60.00

35.00

Squash

200

20.00

10.00

Date of Delivery March 14,2011

School of Management

TOTAL VOLUME OF VEGETABLE DELIVERED TO INSTITUTIONAL BUYER 1 (SINCE MARCH 14- JUNE 22, 2011)

Kinds of vegetables Ampalaya Calamansi Cabbage Eggplant Carrots Squash Cauliflower Ginger TOTAL

Volume (kg)

Sales (Php)

3,885 4,350 6,399 4,289 2,694 6,614 951 1,608 30,790

174,825 174,000 159,975 128,670 96,984 92,596 76,080 43,830 946,960 School of Management

Price Comparison of Carrots

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Price Comparison of Cabbage

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Price Comparison of Ampalaya

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Price Comparison of Eggplant

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Price Comparison of Ginger

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Price Comparison of Cauliflower

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Price Comparison of Squash

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Problems encountered during Marketing @ Institutional Buyer 1 • • • •

Inadequate volume Delayed time of delivery Poor quality of product Poor cell phone communication with cluster marketing officers • Slow communication from buyer School of Management

Memorandum of Agreement (MOA) • Bukidnon clusters signed a MOA with Institutional Buyer 1 • There is a penalty employed if the clusters cannot serve the volume and the time of delivery required by the buyer.

School of Management

Institutional Buyer 2 • Institutional Buyer 2 purchased once a week (Friday) from Bukidnon clusters. • Volume depends on the availability of vegetables from the clusters. • Ordering of vegetables every Wednesday, two days before pick up. • Cash on delivery

School of Management

Volume delivered to Institutional buyer 2 Kinds of Vegetables Chingkang Carrots Cabbage Potato Brocolli Cauliflower Bell Pepper Radish Singkamas TOTAL

May 27June 22,2011 Volume Price per TOTAL (Php) (kg) 35 150 150 100 20 20 10 25 20 530

kilo 15.00 29.00 19.00 41.00 50.00 45.00 90.00 24.00 20.00

525 4,350 2,850 4,100 1,000 900 900 600 400 15,625 School of Management

Opportunities 1. Established 6 rain shelters at Kaatoan and Songco clusters donated by DA-X thru LGU of Lantapan. 2. Regular production of vegetables through rain shelters. 3. Crop diversification 4. Loan repayment extension 5. Penetration to institutional buyers School of Management

Outcomes Clusters are now capable of collective marketing. – Trained market negotiation

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Outcomes Multiple buyers have been established. – More market outlets

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Outcomes Understand the concept of clustering approach to Agroenterprise Development. – Importance of collective effort – Correct planting pattern has been observed

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Outcomes Clusters have savings from the marketing shares of each member. – Able to create income-generation activities – Financial assistance to members

School of Management

Outcomes Farmers have confidence to negotiate with buyers. – Explore potential markets – Price negotiation – Quality specifications

School of Management

Learnings • • • •

Negotiation between the buyer is very important. Communication with buyer during bidding Regular delivery to different outlets Regular communication to cluster leader and marketing officers. • Patience and honesty in the clusters • It is not always good for farmers to rely on financing - very high risk - creates pressure School of Management

Recommendation • Production planning is very important to sustain the supply. • Participation of seven (7) clusters in Bukidnon is a must • Maintain two institutional buyers in Davao if possible. • Cluster members are required to plant vegetables based on the market demand. • Assistance from partner NGO’s and GO’s School of Management

ACKNOWLEDGEMENT ‰

‰

‰

‰

‰

Bukidnon Cooperative Bank (BCB) Malaybalay City, Bukidnon Catholic Relief Services – Philippines Agri/ NRM Program, Davao City Landcare Foundation of the Philippines Inc. Lantapan, Bukidnon Kaanib Foundation Inc. (KFI) Poblacion, Impasog- ong, Bukidnon LGU of Lantapan and Impasug-ong School of Management

Daghang Salamat

Bukidnon Experience on Market Linkage

Mar 14, 2011 - School of Management. BARANGAY/. CLUSTERS. KIND OF. VEGETABLES. VOLUME (. Kilos). SALES (Php). Songco. Sweet pepper. 10,513.

4MB Sizes 7 Downloads 241 Views

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