Enabling Farmers to Negotiate: Davao Recarte CityH. Experience Bacus UPSTREAM, Inc. Marilou Montiflor Ruby Jane Lamban Sylvia Concepcion UP Mindanao, Philippines Peter Batt Roy Murray-Prior Fay Rola-Rubzen Curtin University,Australia School of Management
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Introduction Retailers Smallholder Vegetable farmers
Traders
Wholesalers
Institutional markets
Cluster marketing/ Interventions
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Objectives of the study • To present successes, challenges, problems, and lessons learned of farmer clusters who engaged in collaborative marketing • To present evidence of increased capacity of farmers to negotiate with buyers
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Mavega- Maligaya PAFA- Pamuhatan
SASVEFAPag-asa
Nabisalum-Kibantao Balite C1&2- Balite
SASVEFAKaunlaran Quirogpang SASVEFALanzones
MIFA- Malamba
Source: http://www.davaotraveler.com/davaophotos/davao-citymap.jpg School of Management
Locatio n
Name of Cluster Malamba Integrated Farmers Association (MIFA) Nagkahiusang Bisaya (NABISALUM)
ug
Lumad
sa
Pamuhatan
Cluster members 16 16
Pamuhatan Farmers Association (PAFA)
12
Saloy Small Vegetable Farmers Association (SASVEFA)
17
Small Farmers Association of Quirogpang (SFAQ)
26
SASVEFA – Pag-Asa SASVEFA – Lanzones Balite 1
11 13 14
Balite 2
11
Maligaya
8
Crops Grown Squash, eggplant, bitter gourd, string beans Tomato, squash, pechay, eggplant, beans, Malabar spinach, chayote Tomato, bell pepper, pechay, Baguio beans, karlang, squash Eggplant, string beans, bitter gourd, sword pepper Eggplant, Malabar spinach, bitter gourd, Baguio beans, sword pepper, string beans, okra, squash, cucumber, mung beans Ampalaya, Squash, Okra Ampalaya, pole sitao,eggplant Squash, eggplant, sword pepper gabi Squash, eggplant, sword pepper gabi Lettuce, sweet pea, sweet pepper, gabi School of Management
INTERVENTIONS
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Intervention 1 Eight- Step process
88 Cluster Cluster strengthening strengthening
77 Scaling Scalingup up
Towards TowardsNew New Clusters/Enterprises Clusters/Enterprises
11 Site SiteSelection, Selection, Partnership PartnershipBuilding, Building, Form Form Working WorkingGroup Group
22 Product ProductSupply Supply Assessment Assessment&&Selection Selection
66 Test marketing Test marketing
55 Cluster Clusterplan planformulation formulation
33 Market chain Market chainstudy study 44 Cluster formation Cluster formation School of Management
Process of negotiation Step 3
Step 2 product supply assessment
Market Chain Study
Proceed to
Traditional buyer
Balite, Marilog
Saloy, Calinan
Institutional buyer School of Management
Process of negotiation Experience with Traditional buyer Phase1 – Farmers interviewed prospective buyers during market visit Phase 2 – Farmers negotiated with traditional buyers (wholesaler/retailer) through SMS or face to face •volume, quality, process of delivery, mode of payment, frequency Phase 3 – Trial delivery School of Management
Traditional buyer (delivered)
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Process of negotiation Experience with Institutional Buyer 1 Phase1 – Project staff arranged for a meeting with institutional buyer (supermarket) Phase 2 – Quirogpang farmers and project staff met with institutional buyer management •volume, quality, process of delivery, mode of payment, frequency
Phase 3 – Trial delivery School of Management
Institutional Buyer 1 (pick-up)
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Process of negotiation Experience with Institutional Buyer 2
Phase 1 - Project component leaders met with institutional buyer (supermarket) •Project orientation to the buyer
Phase 2 – Davao cluster leaders •New potential market (Supermarket)
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Process of negotiation Institutional Buyer 2 Experience
Phase 3 – Cluster leaders met with institutional procurement specialist •Vegetables produced by farmers and frequency of delivery in traditional market; kinds and volume needed by the buyer School of Management
Process of negotiation Phase 5 – Project staff met with procurement specialist •Requirements needed; mode of payments; packaging; logistics
Phase 4 - Cluster leaders met with procurement specialist •Farmers brought samples; quality specifications of buyer; commitment of product per farmer cluster
Phase 6– Project staff submitted requirement and finalized delivery schedule
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Process of negotiation Phase 7 - Trial delivery
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Institutional buyer 2 (delivered)
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Volume and value of delivery Cluster Name
Volume (kg)
Value (PhP)
Quirogpan Feb `09 g PAFA Aug. `10
19,601
204,624
22,463
509,037
kaunlaran
Jan `10
15,503
154,789
Nabisalum Aug `10
10,965
68,339
MIFA
Aug `10
5,228
43,462
Lanzones
Sept `10
1,780
22,333
Balite 1
Dec `10
2,797
5,594
Balite 2
March `11
4,105
25,750
Pag-asa
Feb `11
1,508
21,408
78,724
1,055,339
Total
Date Started
Buyers
Institutional buyer
Traditional buyer
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Volume and value of delivery Cluster Name
Volume (kg)
Value (PhP)
Quirogpan Feb `09 g PAFA Aug. `10
19,601
204,624
22,463
509,037
kaunlaran
Jan `10
15,503
154,789
Nabisalum Aug `10
10,965
68,339
MIFA
Aug `10
5,228
43,462
Lanzones
Sept `10
1,780
22,333
Balite 1
Dec `10
2,797
5,594
Balite 2
March `11
4,105
25,750
Pag-asa
Feb `11
1,508
21,408
78,724
1,055,339
Total
Date Started
Buyers
Institutional buyer
Traditional buyer
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Price comparison: Traditional vs. Institutional (by product per month)
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Tomat o Feb
Jan
Apr
March
May
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Feb
Apr
Sweet pepper March
May
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Jan
Feb
Apr
Baguio beans
March
May
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Chayote Jan
March
Feb
Apr
May
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Intervention 2 Capacity building activities/Trainings • Basic marketing training • Training on basic record keeping • Training on how to make minutes in a meeting • Training on supply and demand • Series of farmers forum/vegetable congress • Farm/field visits School of Management
Capacity building activities/Trainings • • • •
Training on post harvest practices Crop protection training Training on packaging Concoction making (foliar and organic pesticides) • Series of Davao cluster leaders (federation) meeting • Support (seeds, crates, weighing scales, organic fertilizers) School of Management
Trainings/Exposure s
Pest and disease
Book keeping/accounting
Vermi exposure
packaging
Organic display
Cross site visit In Bukidnon
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Intervention 3 Support
Vermi
Knapsack sprayer Crates
seeds
Weighing scale School of Management
Outcomes • • • •
Farmers put high regard on quality Trained and empowered farmers Committed cluster leaders Increasing amount of cluster money from vegetable marketing (used as production inputs) • consistent supply for institutional buyers • Linkage among Davao clusters (Federation) • Strong partnership/linkage with the vegetable industry stakeholders
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Problems • Sustaining the traditional and institutional markets • Farmer clusters not registered (i.e. DOLE, SEC) • Farmers continued commitment to production and delivery of vegetables • No or poor mobile phone signal • No electricity in some areas School of Management
Problems • Lack of transportation • Pests and diseases infestation • Extreme weather conditions (very dry or heavy rain) • Poor road conditions
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Conclusions Introduction of 8-step clustering approach
Capacity building activities
Support
Enable farmers to “negotiate”…
Quality Better product… Market…
Better Price… School of Management
Daghang Salamat!
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