Factors affecting Collaborative  Marketing Group Expansion:  Case of Saloy Calinan District Case of Saloy, Calinan Montiflor, M.O., Lamban, J.G., Concepcion, S.B. UP Mindanao Bacus, R.H. UPSTREAM Batt, P.J., Murray‐Prior, R.B.  Curtin University Curtin University 3rd ABE Conference, 13‐14 July 2011, Davao City, Philippines School of Management

Introduction • Vegetable farmers can hardly meet buyers’  bl f h dl b ’ demands – Small farm size  – Lack of financial capacity

• To meet demands – Adjust to buyer specifications (quality, volume,  reliability)  – Farmers • unify • organize/ clustering/ collaborative marketing groups (CMG)

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Introduction: Some definitions Introduction: Some definitions • Collaborative Marketing Groups (CMGs) – Coops, grower association, clusters  p ,g ,

• Clustering – a sequential process involving eight steps that  i l i l i i h h prepares farmers to link with the market

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Introduction • UP Mindanao, Curtin University and  UPSTREAM – Australian Centre for International Agricultural  Research (ACIAR) funded research Research (ACIAR) funded research – Organized Saloy farmers into a cluster in 2009

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Objective This paper will look into factors that  propelled the expansion of Saloy p p p y Small  Vegetables Farmers Association (SASVEFA)

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Materials and Methods Materials and Methods • Case study method • Data collection Data collection – Primary data  i.e. key informant interview,  participant observation and workshops participant‐observation and workshops – Secondary data i.e. trip reports, records and  project documents j d

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Results and Discussions

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Location Distance:  Approx. 

Saloy Sa oy

20 km from  Calinan Poblacion 53 km from  do to downtown  Davao City 

Source: http://www.davaotraveler.com/davaophotos/davao‐city‐map.jpg

Site Description Site Description • Pop: 1,699 in 2007 • Accessibility: Accessibility:  – ‘habal‐habal’ (public utility motorcycle) on rough  uphill roads (Fare: person P50; sacks P1/kg ) fr uphill roads (Fare: person P50; sacks P1/kg.) fr.  Calinan and vice versa – Public utility jeep (PUJ) on Mondays and Fridays  P bli ili j (PUJ) M d d F id plying Saloy to Bangkerohan Public Market and  vice versa (Fare: passenger or a sack of  i (F k f vegetables/fruits or grains P80.00)  9

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Site Description Site Description • Major crops: – coconut, coffee, cacao, banana, lanzones , , , , and  assorted tropical vegetables. 

• Issues  Issues – poor farm to market roads  – low prices resulting to minimal income for the  farmers – Erratic weather conditions

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Group Formation: Clustering Group Formation: Clustering • August 2009 – preliminary meetings were done in Purok p y g Kaunlaran

• October 2009 October 2009 – Saloy Small Vegetable Farmers Association  (SASVEFA) (SASVEFA) was formally organized with 17  f ll i d i h 17 farmers. 

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Basic Marketing Training Basic Marketing Training Oct 2009, Saloy Small  Small Vegetables  Farmers  Association  (SASVEFA)

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Basic Marketing Training Basic Marketing Training  • Wet market and institutional market visit • Interviewed  potential buyers Interviewed potential buyers ¾Vegetables needed ¾Volume ¾Frequency of delivery ¾Frequency of delivery ¾Payment scheme

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Collaborative marketing Collaborative marketing • Marketing as a group • Established a market linkage with a wholesaler  Established a market linkage with a wholesaler in Davao City Bankerohan Public Market in  January 2010 January 2010.  – The wholesaler classifies the vegetables in 2  quality grading (Class A and Class B), providing  incentives to good quality vegetables. 

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Collaborative Marketing Collaborative Marketing • Consolidated products in front of cluster  leader’s house  • Consolidate their products every Monday and  Friday due to the availability of the public Friday due to the availability of the public  utility jeep (PUJ).  • Regular reporting of the financial status during  meetings • Regular monitoring of members School of Management

Consolidation

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Product flow from SASVEFA cluster to  traditional market traditional market

Grading/ G di / Sorting

Production

Market review

Market Access

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Support • UPMin Weighing scale Seeds Blackboard Capacity building Capacity building  training • Cross Cross‐site site visits visits • Learning alliance

• • • •

• City Agri • Sprayer  • Seeds  • Pest and diseases  training • Farmer’s forum Farmer’s forum

• DA • Pest and diseases  training • Seeds

CRS 8 Step Agroenterprise Development 8 Cluster strengthening

1 Site Selection, Partnership Building, Form Working Group

7 Scaling up

6 Test marketing

Towards New Cl t /E t Clusters/Enterprises i

Clusters,  Market, NGO Government

5 Cl t plan Cluster l fformulation l ti

2 Product Supply Assessment & Selection

3 Market chain study 4 Cluster formation

Scaling up: Expanding membership Scaling up: Expanding membership • The accomplishment of the SASVEFA fuelled  the interest of other farmers in the  Barangay. • Original cluster cannot accommodate  Original cluster cannot accommodate interested farmers • More people • Difficulty in monitoring 

• 2 new clusters organized (July 2010) School of Management

SASVEFA Clusters SASVEFA Clusters • SASVEFA Kaunlaran – original cluster • SASVEFA Pag SASVEFA Pag‐asa asa – newly organized newly organized • SASVEFA Lanzones – newly organized

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Key success factors for the Expansion Key success factors for the Expansion • SASVEFA Kaunlaran – Proper handling of money p g y – Good leadership quality of the cluster head – Well‐established policies (control, reward and  Well established policies (control reward and sanctions)  – Regular meetings l i – Constant monitoring of members

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Key success factors for the Expansion Key success factors for the Expansion • Other Saloy Farmers  – Wanted to access the support  pp – Saw the potential of collective production and  marketing – Wanted better access to market – Wanted higher price d hi h i – Have regular buyers

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Current Status Current Status • Clusters Cl – SASVEFA Kaunlaran w/ 16 farmers – SASVEFA Pag‐asa w/ 11 members – SASVEFA Lanzones w/ 13 members 

• At present, the 3 clusters continually deliver to  their preferred buyers in Bankerohan and Calinan public markets • Latter part of 2010 p – SASVEFA met with a Davao supermarket chain for  possible delivery in 2011 but did not pushed through School of Management

SASVEFA Pag Asa Cluster SASVEFA Pag • Conducted Basic Marketing  Trainingg • Organizational strengthening • Market visits/ access • Training • Capacity building  • Crop protection

Buyer Negotiation

Cross site visits

Seed support

SASVEFA Lanzones SASVEFA Lanzones Conducted Basic  • Conducted Basic Marketing Training • Market visits • Training

Seed support Seed support

• Capacity building  Crop protection • Crop protection Cross site visit

Organizational  strengthening 

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Current Challenges of Farmers Current Challenges of Farmers • • • •

Poor farm to market road Different weather conditions Different weather conditions  Lack of transportation High costs of fare

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Conclusion • SASVEFA expanded because other Saloy farmers – Saw the success – Heard about the success Heard about the success – Wanted the success for themselves

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Recommendations • Support agencies with extension projects can  apply this in their respective areas pp y p

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Acknowledgment • Australian Centre for International Agricultural  Research (ACIAR) ( ) – HORT 2007/066/04 “Enhanced profitability of  selected vegetable value chains in Southern selected vegetable value chains in Southern  Mindanao”  – Andre Karen dela Andre Karen dela Cerna – Ludovico Ramirez, Jr. 

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