School of Management
School of Management
The Tie that Binds: Case of
Small Farmers Association of
Quirogpang
Outline
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Marilou O. Montiflor
Andre Karen R. dela Cerna
Ruby Jane G. Lamban
Ricarte G. Bacus
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University of the Philippines Mindanao
5th Supply Chain Forum: 5 February 2010,
UP Mindanao, School of Management,
Davao
Introduction
Location of the study
Materials and Methods
Background of SFAQ
The tie that binds
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Key success factors
Issues and Challenges
Conclusion
Acknowledgment
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School of Management
School of Management
Introduction
Introduction
In cluster, farmers collectively carry out production
planning and marketing activities.
2 approaches to cluster farming
• area-based
•
A study on 3 clusters in Mindanao identified farmer
groups’ issues and challenges:
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commodity-based
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sustainability of financial support
difficulty in sustaining active farmer members
encouraging farmers to cooperate once they are in the cluster
need for more farmer leaders
farmers group together based on the proximity of farms
(Montiflor 2007)
farmers plant same vegetable and consolidate to achieve
a higher volume.
Source: (Montiflor, Batt and Murray-Prior 2009)
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School of Management
School of Management
Introduction
area-based approach:
• more social connections
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neighbours and relatives
often practicing the same religion
speak same language/dialect
Introduction
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Small Farmers Association of Quirogpang is an
example area-based approach.
This paper will look into:
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what binds farmers together
what are the key success factors
what are the issues and challenges
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School of Management
School of Management
Location of the Study Area
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Quirogpang is a Sitio in Barangay Marilog in Davao
City, approximately 51 kilometres from the City centre.
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Marilog
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Total land area: 17, 833 ha.
Population of 14, 255 (August 2007)
Quirogpang
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Population of 225 (August 2009) with 33 households.
Aside from vegetables, the main crops planted in the area are
cocoa and coffee.
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Source:http://www.davaotraveler.com/davaophotos/davao-city-map.jpg
School of Management
School of Management
Materials and Methods
case
study which incorporates the process of data
collection with the 8-step clustering approach
The
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Background of SFAQ
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Originally an initiative of the People Collaborating
for Environmental and Economic Management
(PCEEM) Davao Foundation Inc.
approach
involves farmers in a participatory action learning process
documents the 8 step
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School of Management
School of Management
Background of SFAQ
Background of SFAQ
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In April 2006
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PCEEM met with chapel leaders to inform that
Quirogpang was one of the chosen areas
Sitio Quirogpang church leader Ms. Tugap consulted
Quirogpang residents. 24 out of the 35 in attendance
agreed to welcome PCEEM’s project
March 2007, the Paraiso Farmers’ Association (PFA)
was formed. SFAQ affiliated with the PFA
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PFA initially scheduled regular meetings
Problems
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Since PFA was more accessible; Quirogpang is 3 km from the
highway
long distance of the meeting area from Sitio Quirogpang
misunderstanding w/ mtg schedules
no clear agenda during mtgs.
Eventually, SFAQ stopped attending meetings & PFA
membership dwindled.
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School of Management
School of Management
Background of SFAQ
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The PCEEM introduced SFAQ to the Catholic
Relief Services (CRS) in July 2007
CRS
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Background of SFAQ
water supply (unsafe to drink) As a result, CRS (with
PCEEM) constructed the Banga Pinoy, a water reservoir
project.
other supports were seminar on vermiculture and
veterinary related activities .
PCEEM formally ended its projects in April 2008
CRS continued its assistance until it turned over
SFAQ to UP Mindanao on June 2009.
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In November 2008 baseline survey, 19 members
As of December 2009, 14 active members
10 of the 14 belong to one family (Parents, children,
in-laws)
PhP 2,500/ave. monthly income
Main vegetables cultivated were eggplant, squash,
bitter gourd and Alugbati (Malabar spinach)
Mainly sell to Crossing S (highway)
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School of Management
School of Management
Test marketing for institutional
buyer (October 2009)
Quirogpang Supply Chain
Buyers/ traders
Bangkerohan
buyers (spot
market)
Farmers
Local Buyer
(from Crossing
S)
Consumers
Institutional
buyer (pick-up)
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5th UP Mindanao Supply Chain Forum: 5 February 2010, UP
Mindanao, School of Management, Davao
School of Management
School of Management
Bankerohan Public Market,
Davao City
Test marketing for institutional buyer
(October 2009)
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School of Management
Volume, value and buyers of vegetables produced by
SFAQ (August 09 – January 10)
Buyer
Times
bought
Volume
kg
Value
%
PhP
%
Institutional buyer
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1,601
27%
20,643
34%
Bankerohan market
10
4,149
71%
34,865
58%
2,144
4%
2,340
4%
Rizal Park
1 No data
Local buyer
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The tie that binds: key success factors
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Total
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5,866
2%
High levels of social capital
Strong and effective leadership
A high degree of trust towards the cluster leader
Strong social connections
Open communication among the farmers
59,992
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School of Management
School of Management
Institutional Support
The tie that binds: key success factors
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CRS-PCEEM
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Having alternative markets
Strong institutional support
A committed institutional buyer
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training, seminars, water reservoir and other material
support
CRS-C4 Project
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provided the sorting shed at Quirogpang
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CRS for the materials
ACIAR C4 project for the salary of the staff
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School of Management
School of Management
Institutional Support
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UP Mindanao
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Institutional Support
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materials support for a sorting/waiting shed at Crossing
S
Seeds
Market linkage
Institutional linkages
Department of Agriculture-High Value Commercial
Crops through the Davao City Agriculturist’s Office
(CAO)
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seeds
fertilizer
crates
seed trays
forum
market
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School of Management
Delivery of seeds & fertilizers
(September 2009)
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3rd
Davao City Organic Day Celenration
and Farmers’ Forum (December 2009)
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School of Management
School of Management
Issues and challenges
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Quality standards (whose standards?)
Standardised weighing scales
Improved understanding of market prices and
calculation of farm-gate prices
Access to capital
landslides due to unprotected steep farm areas and
poor road conditions that worsen during rainy days
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Common Problems encountered
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School of Management
Farm near Davao River
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Very low market price/controlled price
Inaccessible farm to market roads
High cost of transport
Lack of access to capital
Steep slope: Erosion problem
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School of Management
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Conclusion
Acknowledgment
the cluster can continue to improve the quality and
quantity of their produce
Australian Centre for International Agricultural
Research (ACIAR), Mr. Ludovico Ramirez, Jr., Ms.
Betty Fuenconcillo, Jessan Catre and Catholic Relief
Services.
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School of Management
With the strong institutional supports
Social connections
It is not a tie that binds, but ties that bind to help
farmers cope with the challenges and try to address
these as a cluster
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