OBJECTIVE To provide an overview of the industry for commercially grown organic vegetables To identify product/commodity specific supply chain maps which identify the specific activities and services, key players involved, logistic issues and external factors influencing the industry, product and information flows as well as selling and payment schemes, To provide specific policy recommendations to improve the organic vegetables commodity industry in general and the specific supply chain in particular
ORGANIC VEGETABLE INDUSTRY IN THE CORDILLERA 19.6 has is cultivated in the Cordillera for organic production (LaTOP, 2010) A total area of 175,026 sq.m. (17.5 has) is cultivated for organic production in Benguet; 1.8 has in Ifugao; 1.67 has in Kalinga and 0.08 has in Mt. Province
Table 1. Market outlet of the different organization ORGANIZATION
MAJOR MARKET OUTLETS
La Trinidad Organic Practitioner (LaTOP-MPC)
LaTOP Organic Stall # 32, Public Market, La Trinidad, Benguet, Baguio City vegetable section, Mario’s Café and Café by the Ruins, Lourdes Church and Guiding Light
Association of Tublay Organic Practitioner (ATOP) Kayabang Multi-purpose Cooperative
University of the Cordillera Organic Market-Baguio City
Tuba Organic Farmers’ Association
LaTOP
SIHM Indigenous Ecological Center
Montanosa Organic (Porta Vaga Bldg/Baguio Cathedral)
Organic-Based marketing Vegetable Production Project-Japan Agricultural Exchange Council (JAEC)
Baguio Hangar Market (Stall #57 and 58)
Bio-Dynamic Vegetable Producers Organization
HORECA-Metro Manila
BABUDEMCO Organic Farmers’ Assoc (BOFA)
LaTOP
Cordillera Organic Producers Assoc (COPA)
LaTOP
Good Shepherd Organic Farmers’ Assoc (GOFA)
Within their area
Baguinge Organic Farmers’ Assoc (BOFA)
Within their area
Organic Farmers of Asipulo
Within the area
Tinoc Organic Practitioners Multipurpose Cooperative (TOPMPC)
Don Bosco-Lagawe, Ifugao
Organic Production in Kalinga (individual producers)
Within the area
LaTOP
Table 3. Input suppliers, location and area supplied, 2009-2010 NAME OF PRODUCER
AREA OF OPERATION/LOCATION
AREA SUPPLIED/MARKET OUTLET
PRODUCTS PRODUCED
Eric Tinoy-an
Tuba, Benguet
La Trinidad, Benguet
Sunflower tea, compost tea, fermented fruit juice, fermented plant juice, OHM
BSU Binnadang Project (8 project beneficiaries)
BSU and other areas of La Trinidad
La Trinidad Benguet, specifically BSU outlet
Bio-organic fertilizer, compost-sunflower base
BSU-ODF
BSU
Benguet
Vermi-compost, sunflower tea, compost tea, compost
Nilo Oplas
Bad-ayan, Baculongan, Buguias, Benguet Bontoc, Mt. Province
Buguias
Mokosako (wood vinegar)
Mt. Province, Buguias and Kalinga
Vermi Compost, compost and compost tea
Montanosa Research and Development Center, Inc. Kalinga State College (KSC)
Mukamkamlis, Sagada, Mt. Province
Sagada, Mt. Prov. And Buguias, Benguet
Compost and chicken manure
Tabuk City, Kalinga (Binnadang Project)
Kalinga
Vermi Compost and compost
Ifugao State University (IFSU)
Potia, Alfonso Lista, Ifugao
Ifugao, Nueva Viscaya and Pangasinan
Compost
OPAG, Bontoc, Mountain Province
Table 4. Organization of organic vegetable producer/farmer, 2009-2010 ORGANIZATION/PROJECT
ADDRESS/LOCATION
NO. OF FARMER MEMBER
La Trinidad Organic Practitioner (LaTOP-MPC)
La Trinidad, Benguet
79 (from La Trinidad, Tublay, Tuba, Sablan, Atok and Buguias and La Union
Association of Tublay Organic Practitioner (ATOP)
Tublay, Benguet
17 (Acop, Tublay)
Kayabang Multi-purpose Cooperative
Bayabas, Sablan
20 vegetable, rootcrop and fruit farmers
Tuba Organic Farmers Association
Tuba, Benguet
15 vegetable and rootcrop farmers
Organic-based Marketing Vegetable Production Project-Japan Agricultural Exchange Council (JAEC)
La Trinidad, Benguet
8 farmer partners from La Trinidad, Benguet
Bio-dynamic vegetable producers organization
Baguio City and Km. 4, La Trinidad, Benguet
Farmers from Atok,La Trinidad, Baguio City and Buguias
BABUDEMCO Organic Farmers Association (BOFA)
Bad-ayan, Baculongan, Buguias,Benguet
32 farmers from the different barangays of Buguias
Cordillera organic Producers Association (COPA)
Baguio-Benguet
Benguet farmers
Good Shepherd Organic Farmers Association (GOFA)
Tuplac, Kiangan, Ifugao
20 farmers from Tuplac, Kiangan, Ifugao
Baguinge Organic Farmers’ Association
Baguinge, Kiangan, Ifugao
21 farmers from Kiangan, Ifugao
Organic Farmers of Asipulo
Asipulo, Ifugao
26 farmers from Amduntog and Antipolo, Asipulo, Ifugao
Tinoc Organic Practitionersd Multipurpose Cooperative (TOPMPC)
Tinoc, Ifugao
24 Organic vegetable farmers, processors and agroforestry crop producers
Key actors in the value-chain , 2009-2010 Input suppliers Organic practitioner/farmers Processors Consumers Other Chain Actors Benguet State University Kalinga State College (KSC); Ifugao State University (IFSU and other state colleges and universities JV Ongpin Foundation, Inc. Social Action Development Council
PRODUCT AND PAYMENT FLOW OF INPUT PRODUCER
INPUT PRODUCER (Organic Practitioner) payment flow product flow
Cooperative/Organizati on •LaTOP • BABUDEMCO
Organic Producers
Product and payment flow of a farmer who is a member of LaTOP and at the same time have an Internal Guarantee System from BSU (BIGS)
BSU Organic Market Café Ruins
Organic Organic Practitioner/ Practitioner/ FARMER FARMER
LaTOP (stall No. 37, La Trinidad, Market)
by
the
Mario’s Restaurant Guiding Light Church
Lourdes Church
SM Supermarket
C O N S U M E R S
Payment flow Product flow
PRODUCT AND PAYMENT FLOW OF ORGANIC PRACTITIONERS OF THE ATOP
ORGANIC PRACTITIONER
Consumers (employees of the University of the Cordillera (UC) and other institutions near UC Payment flow
Consumers (employees and tenants of NARDA’s building and other consumers within La Trinidad, Benguet) Product flow
Product and payment flow of a farmer member of LaTOP
La TOP
Farmer
Sari-sari store
Café Maleng-ag
Input Supplier
La TOP (stall 36 Km 5, LTB)/Baguio City)
Café by the Ruins
Mario’s Restaurant
Guiding light church
Consumers
Consumer Ner
Lourdes church
SM supermarket Market BC
Product and payment flow of a farmer who is not a member of any organic producer organization and sell his product to contract buyers
Bio-Dynamic Farmers (Atok, Buguias and La Trinidad, Benguet)
Kitma Enterprise
Metro Manila Consumers
Legend:
payment flow
Metro Manila Institutional Buyers (eg Korean Restaurants)
product flow
FARMER
CONTRACT BUYERS
MANILA (VEGETABLE VENDOR)
CONSUMERS
Product and payment flow of a farmer who is not a member of any organic producer organization and sell his product to contract buyers
Organic Practitioner
BSU Organic Market
Household Consumers (P 80-100/kg)
Health 100 Restoreant
Consumer (as processed or fresh)
Payment flow
Café Malem-ag
Benguet Vegetable Processing Center(P 80-100/kg)
Consumer (as processed)
Product flow
Product and payment flow of organic producers who are recipients of the Binnadang Project Organic farmers and ornamental plant growers
Binnadang Organic Fertilizer Producers (BSU)
Binnadang Organic Producers (from BSU Organic Farm)
Disposer (La Trinidad Trading Post) Consumers (Baguio and La Trinidad, Benguet Metro Manila Consumers
Legend:
payment flow
product flow
Product and payment flow from the Organic Farmer in Ifugao to the different market outlets. Organic Farmer (Tinok, Kiangan, Asipulo, Ifugao)
Social Action Development Center (SADC)Don Bosco Parish Church, Lagawe, Ifugao
Consumers ( Lagawe and others areas in Ifugao )
Legend:
payment flow
product flow
Product and payment flow of organic producers in Lubuagan and Tabuk, Kalinga
Organic Compost producer (Kalinga State College )
Organic Vegetable and Rice Producer
Consumers (employees of Kalinga State College and Department of Trade and Industry, and neighbors) or sell in the market mixed with conventional Legend:
payment flow
product flow
INFORMATION FLOW
Consumer
Organization/ Cooperative/ Market Outlet
Organic Producers/Orga nic Input Producers
Information needs, shared and received by organic producers, and organizations Variable Farmer /organic Farmers’ Issues practitioners organization Information needs
Organic technology, product prices, market, organization policies, organic updates, market requirements, payment terms, production volume and schedule of product delivery
Application of organic technology, product volume, schedule of production
Information shared
Technology application, products produced and production schedule
Information received
Technology, prices, markets , organization policies, Phil. National standards on organic agriculture (not clear) payment terms and schedule
Technology, prices, markets, organization policies, EO 481/RA10068, Phil National standards on OA, payment terms and schedule Technology applied, products produced and production schedules and delivery
Technology is only disseminated only during trainings, members are required to attend training but training fee is too expensive. Only the prices and updates on gov’t policies are disseminated during organization meeting, market requirement not shared
Sometimes information received are not updated like the policies on certification standards for organic products
Information needs, shared and received by organic producers, and organizations Variable Farmers’ Restaurants/ Issues organization/ market processors and outlet consumers Information needs
Product requirement and volume
Information shared
Source of product/name of producer, quantity and availability of vegetable supply
Information received
Product requirement of buyers
Source /supplier
Terms of payment of fresh vegetables delivered to restaurants Requirements of consumed by the buyers and restaurants for their menu consumers and are cash basis but for the comments of vegetables retailed in the consumers restaurants are Name of producer consignment thus pull or farm of outs is also experienced vegetable sold and but minimal variety of vegetables
Information needs, shared and received by organic producers, and organizations Variable Farmers’ Restaurants/ Issues organization/ market processors and outlet consumers Information needs
Product requirement and volume
Information shared
Source of product/name of producer, quantity and availability of vegetable supply
Information received
Product requirement of buyers
Source /supplier
Terms of payment of fresh vegetables delivered to restaurants Requirements of consumed by the buyers and restaurants for their menu consumers and are cash basis but for the comments of vegetables retailed in the consumers restaurants are Name of producer consignment thus pull or farm of outs is also experienced vegetable sold and but minimal variety of vegetables
Table 10. Cost and return analysis on selected organic vegetables production Particulars I. Gross Receipts Average Yield Selling price (P/kg) Total Receipts II. Cost of Production A. Labor Cost (includes all activities from seed preparation, land preparation, preparation of organic pesticides to harvesting) B. Farm Supplies Seeds Fertilizer Organic PCM Organic Fertilizer (compost and foliar)
Pechay
Carrots
Cabbage
Potato
Beans
Garden pea
90 kgs 54/kg 4,860
100 kgs 108/kg 10,800
210 kgs 72 15,120
49 kgs 72/kg 3,528
180 kgs 72/kg 12,960
101 kgs 135 13,635
400
840
1,200
800
2,000
2,000
30
100
2,000
750
120
150
140 40
380 160
380 200
380
285 120
380 120
120
120
6 60
6 90
6.00 220 400 3,170 210
Biological/Botanical Pesticides Wood vinegar/IMO etc. Dishwashing detergent Yogurt (fungicide) Trellis Sub-total Miscellaneous and Marketing cost C. Fixed cost Land rent Depreciation cost TOTAL COST Production cost/kg GROSS INCOME NET INCOME Net Income per kg
260 180
706 400
3,876 494
1,356 70
400 2,935 256
305 1,145 12.72 4,860 3,715 41.28
670.50 2,616.50 26.17 10,800 8,813.50 81.83
670.50 5,040.50 24 15,120 10,079 48
198 1,624 33.14 3,528 1,904 38.86
250 87 3,528 19.60 12,960 9,432 52.40
90 3,470 34.36 13,635 10,165 100.64
Return on Expenses (ROEs)
324%
313%
200%
117%
267%
293%
Source of data: Carmen Sacley, (Tulodan, Atok, Benguet) and Ana Lyne Sabado (La Trinidad, Benguet),Mr. Rogel Marzan (Bekkel, La Trinidad), Mrs Adeline Bacasen (Bad-ayan, Loo, Buguias, Benguet) and Mr. Anaydos (Amgaleygey, Buguias, Benguet), Gloria Banawag, Benguet , Daniel Cayat (Tulodan, Atok, Benguet)
Table 11. Cost, margin and net profit margin at different levels (the case of LaTOP, and ATOP), 2009-2010
ACTORS FARMER Pechay Cabbage Carrots Potato Beans Sweet peas/garden pea LaTOP Pechay Cabbage Carrots Potato Beans Sweet Peas/garden pea Salad tomato
COST PER KG
PRICE PER KG
C. MARGIN
NPM (%)
12.72 24.00 26.17 33.14 19.60 34.36
54.00 72.00 108.00 72.00 72.00 135.00
41.28 48.00 81.83 38.86 52.40 100.64
325 200 313 117 267 293
55.80 74.40 112.60 73.40 74.40 140.50
60.00 80.00 120.00 80.00 80.00 150.00
4.20 5.60 8.40 5.60 5.60 10.50
7.53 7.53 7.47 7.63 7.53 7.43
94.00
100.00
7.00
7.45
POLICY RECOMMENDATION Constraints in the production of organic vegetables in CAR are the high cost of certification by the Organic Certification Center of the Philippines (OCCP), and limited market outlet. Market is limited in their own areas because growers cannot sell their product to other areas due to lack of certification. Thus, one of the recommendation which was also suggested during the workshop on the Implementing Rules and Regulations of the Organic Act of the Philippines (RA 10068) that a local certifying body should be formed in order to reduce cost of certification.
RECOMMENDATIONS
In order to entice and promote more organic production among farmers and even to convince conventional farmers to convert their operations into organic farming: There is a need for the involvement of concerned government agencies and line-agencies in the promotion of organic products. Information and education of consumers consumption of organic produce is needed.
regarding
the
Establishing a local certifying body would decrease costs and would take lesser time for processing as the certifying body will be more accessible to the farmers and vice versa.
…thank you