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