Organic Vegetable Value Chain: Philippine Experience

Paper presented during the Value Chain Experience Sharing Workshop in Kathmandu, Nepal from

November 10-11, 2009

Rationale

The value chain approach maybe a new theme but there are learnings from field experiences that could be adapted and enhanced for future undertakings

Such learnings when shared could provide insights and inspiration

Hence, this sharing on organic vegetable production VC experience in the Cordillera region, Philippines

VC Setting

Cordillera region, northern Philippines is suitable for semi-temperate crops

The region is a leading producer of semi-temperate vegetables, fruits and cutflowers in the country

Source of heirloom rice and coffee arabica

Organic Vegetable Value Chain by a farmers’ coop

Coop started in 2005 with 26 members

Most visible organic vegetable producer’s group in the region

Able to demonstrate that with the right value chain approaches, small farmers could break through the barriers of conventional agricultural marketing – farmers could dictate prices and could get most from the consumers peso

Product Flow

Farm → Cooperative → Consumers

Prod’n, harvesting, QC, retail/wholesale washing, packingQC

85% 15% share from consumers’ peso

Simple, direct, most benefits go to the producers

Status

2005 2006 2007 2008 2009

Membership 26 28 52 60 90

Area (ha.) 4.5 5.2 8.14 9.14 nda

Sales (P) nda nda 2,474,963

4,441,526 nda

Volume nda nda nda 43,665 nda

Stages of growth

Year ActivitiesYear 1 2005 1. 1. 1.Identification of the VC

2.Organization and registration for for value chain 3. Identification of community champion (CC)4. Conduct of Pre-membership and production technology seminars/ trainings5. Started marketing

Year 2 2006 6. Expanded markets

7. procured product labels for traceability and consumer appealProcured crates for transporting produce

Year ActivitiesYear 3 2007 Expanded membership

Bought a van for product delivery and farm inspectionPartnered with the department of Agriculture for marketing

year Activitiesyear4 2008 Partnered with the Department of

Agriculture in the promotion of organic vegetable production

Hired 5 personnelIn addition to the sales clerk

Acquired an office space adjacent to the market stall

Procured 1 desktop computer and chiller

Partnered with JVOFI, a local NGO for organic vegetable upscaling

Year ActivitiesApplied for organic certification

Year 5 2009 Expanded membershipAcquired a bigger office area, and one more desktopPlans for acquiring additional vehicleStopped accepting regular members (farmers), started accepting associate members (professionals, organic farming advocates that could help the coop)

Factors for Success

1. Selection of the right value chain

2. Timing of the intervention

3. Presence of a wiling facilitator

4. Presence of a community champion

5. Utilization of Low-cost technology within the reach of poor farmers and acceptable to consumers6. Organization for vale chain support

7. Tapping the local market

8.Product packaging and labeling for traceability and consumer appeal

9. Strengthening of the organization as an attractive partner of GO’s/NGO’s -visibility

10. Regular meetings

11. Adherence to organic farming standards and application for organic certification to expand markets

Summary

VC case built on local initiatives involving local resources

local farmers local support systems local markets

This shows that given the needed support systems, at the right time, farmers could sustain livelihoods

Implications for CHARM 2

While not yet fully engaged in the communities, documentations of good practices on VC approach is done for possible replication where applicable as guide in focusing interventions for the attainment of project goals and objectives