Professional Documents
Culture Documents
FINAL REPORT
STRATEGIC DEVELOPMENT
COOPERATION ASIA (SDCAsia)
61 Mirasol St., Tahanan Village,
Paranaque, Manila, Philippines
Email: mb@sdcasia.ph
www.sdcasia.org.ph
TABLE OF CONTENTS
Page
A.
PROGRAM SUMMARY
1.
Project Overview
2.
Project Areas
B.
1.
15
2.
18
3.
20
4.
21
5.
6.
C.
46
1.
2.
Performance Indicators
Impact Assessment
50
51
33
A. PROGRAM SUMMARY
1. PROJECT OVERVIEW
Management of banana farms in the Philippines is
characterized by dichotomous nature. On one side
is a highly managed cavendish banana consisting of
commercial plantations, which take up about 10%
of the total land area planted to banana. The
remaining 90% of the banana areas are small
family cardava farms. The Banana Agri-Chain
Competitiveness Enhancement (B-ACE) project is
focused on the cardava banana.
The goal of the B-ACE project was to increase the
competitiveness of the cardava banana industry
while promoting broad-based growth that involves
and benefits the poor consisting of farmers and
micro enterprises in a sustained way. The project,
which was implemented from 29 September 2006
to 28 September 2009, worked on strengthening
three value chains:
shifted towards assisting players to develop systems and mechanisms that would enable them
to acquire the skills and resources needed for upgrading. This was then followed by
interventions geared towards enhancing depth and/or breadth of the upgrading initiatives
based on project monitoring results and market assessments.
The following table indicates the diminishing role of the facilitator throughout the process and
the commensurate increase in ownership and activity of the market players.
Market Players
FACILITATORS ROLES
INCITING
ACTION
BUILDING-UP
BUSINESS
MODELS/
PILOTS
EXPANDING
OUTREACH/
EXIT
Crowding-in/ Scaling-up of
Upgrading Initiative
M
A
K
I
N
G
I
N
C
E
N
T
I
V
E
S
V
I
S
I
B
L
E
Interest
2. PROJECT AREAS
The project was implemented in the following areas:
a) Southern Mindanao: Davao Del Sur, Davao Del Norte, Davao City, Davao Oriental and
Compostela Valley
b) Northern Mindanao: Bukidnon
c) CARAGA: Agusan del Norte, Agusan del Sur
A general strategy employed by the project was to start the implementation in an area where
there are progressive farmers and traders that can champion the change process and showcase
the benefits of change at a faster pace. As soon as some networks are established in the area,
the program gradually moves into the more remote areas and smallholders with cardava farm
ranging from 0.25 to 0.5 hectares. Spontaneous diffusion of initiatives and geographic reach is
generally confined within project areas and its proximity as well as the sphere of influence of
lead firms and traders. The decision and choice of expansion areas were significantly influenced
by the movements of traders and exporters in terms of raw material sourcing.
Participatory
technology
development
(farmers, government extension officers,
community-based providers). High level of
farmer participation in decision-making
activities for extension priorities and
activities, resource allocation, etc.
last cardava festival day hosted by B-ACE to celebrate the successful culmination of the
project, Malita ended as the top winner in various competition categories.
Building on its reputation as supplier of premium quality banana, the Malita municipality in
collaboration with its pool of community-based trainors on cardava farming and banana chips
exporters is now in the process of diversifying into production of organic banana. The pilots,
which are being implemented without project support but following the same system
introduced by the program, cover 8 barangays/villages.
The
cooperative
members
supplies
fresh cardavas to its
trading business. In
turn, they get a
patronage refund of
Php0.10 for every
kilogram of cardavas
sold
to
the
cooperative.
Aside
from
this,
the
members also enjoy
the dividend share
after one year of
business operations.
The
cooperative
keeps a record of
every
trading
transaction
and
shows it to the locals
for
transparency.
They
also
give
recognition to those
who are loyal. They
also use this strategy
to encourage more
local folks to join the
cooperative.
10
Likewise, when players were given the opportunities to develop the skills they needed in
making the transition or implementing some aspect of change, they developed an increased
sense of confidence. After hope, confidence is one of the most important factors that will enable
players especially the micro enterprises to cope with change and to negotiate with people that
they have always perceived to be higher in the social ladder.
SARBEMPCO:
supplier of fresh
cardava
SAMAL DAIRY:
collector of
banana
peel/waste - for
organic fertilizer
SISCOFA: lead in
GAP
training/supplier
of fresh cardava
SIARBCO
FIRST FRY
FACILITY
BANANA CHIPS
PROCESSORS
BABAK MPC:
transportation
services including
delivery of
cooking oil
KANAAN MPC:
supplier of fresh
cardava
11
A first frying facility for cardava was set up and the food handlers were trained on GMP and
first frying operations
A Trainers Training on Good Agricultural Practices for cardava farming was conducted;
payment schemes to sustain succeeding trainings of the coop based trainers came either
from outright payment or as an embedded service extended to farmer suppliers for the
cooperatives cardava trading operations
Facilitated meetings with processors to set up the cooperative as a direct supplier for fresh
cardava
Strategic Planning and other Organizational Development activities were conducted to
facilitate the formation of unified directions and ensure smooth transition between outgoing
and incoming officers
Brokered reconciliatory talks and between the cooperative and incumbent government
officials who were slighted during a recent election. Festive activities like cardava festivals
and GAP competitions, were also made a venue for the opposing parties to meet and
mutually support the neutral activities.
Hosted a cardava festival to gather, recognize and promote best practices in cardava
farming
Training the cooperative food handlers on banana chips first frying and Good Manufacturing Practices.
As a result of above interventions, GAP training is now regularly conducted among farmer
members and suppliers. Volume of good quality, fresh cardava production in the areas covered
by the cooperative substantially increased. This assured the cooperative a guaranteed share of
cardava supply, amidst other traders who have been sourcing in the area. While the
12
cooperative have been trying for some time to revive their cardava trading operations, this
development finally made it possible. While DALESAN used to sell fresh cardava to various
processors thru a consolidator, their move to directly and exclusively supply a lone processor
eventually rewarded them with better payment terms along with monthly volume incentives.
Three municipal councilors, all known allies of the incumbent government, were sent as
emissaries to join the recent Board of Directors meeting of the cooperative. The incumbent
officials, thru the joint meeting, have already earmarked funds totalling P 400,000, as additional
working capital for the first frying facility, aside from promising to be more involved with the
cooperatives affairs
Discussions and meetings participated by processor, first fry facility, and farmers to improve supply chain
management and governance.
Barangay Organic Team, composed of 20 trainers, was organized to train all the cardava farmers
in the municipality on organic cardava farming and Good Agricultural Practices. The
organization of cardava farmers in the municipality, and the conduct of organizational and
technical capability building sessions for the members, made it easier for them to comply with
certification requirements, shortening the application process. A common service facility for
banana chips first frying, compliant with established food safety standards, was established by
the farmer groups with the support of the LGU. Informal supply contracts have been
13
established with farmer suppliers and the first fry facility, assuring the banana chips processor
with consistent supply of good quality fresh cardava and first fried banana chips. Cardava has
become a priority crop for nearby municipalities in anticipation of the increased demand from
the processing plant in Bukidnon and in response to the increase in farm gate prices for fresh
cardava. In response to the upgrading initiatives of the communities and, consequently,
productivity and quality improvements observed, lead firms from Davao and Caraga are also
providing value added services such as assistance in the organic certification process and
regular procurement of fresh cardava.
14
We in the government
fervently wish that good
relationships and support for
each other exist among the
key players in the banana
Yes, we processors
believe that sufficient and
stable supply of quality
products will make us
more competitive in the
world market.
15
16
17
compliance to GAP can increase productivity by at least 25% to a maximum of 100% while
improving the quality of produce in a shorter time frame. Though not all of the traders and
lead firms were initially committed to be involved with the project, this was the first time
where lead firms/traders concretely expressed their commitment to work with growers.
They personally chose which strategies/approaches/activities they were willing to
participate in, and with whom they were comfortable to initially partner.
18
something relevant and to build skills for collective planning and decision-making. The project
had experiences where groups that began with relatively resource-intensive and complicated
upgrading initiatives were never able to take off as they were bogged down with financial and
resource constraints or resulted to the exclusion of the majority who did not have the resources.
One community wanted to immediately pursue functional upgrading through set-up of a
commercial scale first fry facility. The initiative never took off as the group had difficulties in
accessing the needed financial resources. The more successful upgrading initiatives that started
with planning of simple tasks such as joint procurement of better quality inputs or community
participation in a Biggest Cardava Bunch Competition which mainly entailed searching for
progressive members to represent the group. Successful implementation of these initial
activities improved self-confidence and encouraged planning of more complex activities such as
the set-up of collective trading and GAP alignment of farm practices in collaboration with
traders. Action planning also included identification of target markets. For instance, in
initiatives such as collective trading, the groups started with selling collectively directly to the
local public market (wholesale prices, less discriminating in standards, no minimum volume
requirement). As they moved forward both in their collective planning and improving product
quality and yields, the groups started planning penetration of bigger markets such as the
banana chips exporters and the Manila market.
VISION
Ang Napungas Banana Growers MPC, usa
na ka malambuon, nagkahiusa ,
nagkasinabtanay, ug ligdong na
kooperatiba sa mga manananom ug
saging sa Napungas, nga nagadumala ug
malungtarong negosyo sa hinusa na
pagpamalit ug pagbaligya sa dekalidad na
produkto, mapadayonon sa paghatag ug
benepisyo og giya sa haum nga
teknolohiya sa pagpanguma, giniyahan sa
padayon nga pagpalambo sa kaseguruhan
sa panginabuhian sa komunidad,
pagprotekta sa kinaiyahan, inubanan sa
tabang ug panalangin sa Labaw nga
Makakagahom.
19
3.
20
farming that is representative of the knowledge, expertise and experiences of all stakeholders.
Farmers no longer feel being imposed upon when the trader or the processor describes his/her
quality standards; the former now regards this shared information as valuable market
information. This is mainly because the players appreciated the contribution each of them
made towards identifying the common standard market requirements. They also immediately
experienced the corresponding benefits and advantages of being always aware of these
standards. Transaction costs were lower, as traders and processors had fewer rejects in fresh
cardava and conflict/tension associated with different understanding and interpretation of
standards was reduced.
The same process was followed by the project in drafting the food safety and quality standards
for banana chips and food service operations of cardava snack vendors and canteens.
Government agencies mandated to enforce food safety regulations were also active participants.
In the development of the standard operating procedures (SOPs) for the first fry facilities,
guidance was provided by the project team with inputs from the lead firms.
To further promote a unified understanding of standards and appreciate the benefits of
standards compliance, the project encouraged lead firms and traders to open their plants to key
suppliers and community-based catalysts to see the full procurement and production process,
and thereby demonstrate the effects of bad-quality cardava on the final product. Parallel to this,
lead firms were encouraged to visit community production sites to understand their conditions
and limitations and, subsequently, to provide suggestions on basic upgrading.
21
22
ensure that BDS delivery did not undermine profitability of business operations of both the
value chain-based providers and the micro enterprises. The challenge for the project was to
identify these progressive individuals at the community level and how to motivate them to
improve their capacities and capabilities in order to provide sufficient support to their peers as
a means of improving both their incomes. Rather than cutting the traders out of the value chain,
the project worked on improving trade relations between growers and traders. The more
successful learning communities and upgrading initiatives facilitated by B-ACE were those
undertaken with the strong support from key intermediaries in the locality.
As soon as the first batch of providers was set-up, B-ACE project team stepped back in actual
delivery of services and focused more on further building the capacities of providers through
on-the-job coaching, benchmarking, and cross training. Trainers training in expansion areas
was handled by providers in pilot areas. The cross-trainings proved to be a very effective way of
rapidly disseminating good practices including adoption. Farmers seem to trust more on peers
accounts of lessons learned as well as in identifying modifications needed for practices to be
suitable to their areas. The information exchange did not only focus on the training topics, but
also on the different schemes, training arrangements and field experiences that have been
proven to be successful in the trainers areas.
Visits to better performing groups were also organized for farmer groups in expansion areas to
create a positive atmosphere and reduce doubts and inhibitions among stakeholders, as
negative attitudes were often picked up through secondary sources and did not have a factual
basis. The exposure visits facilitated faster and deeper validation among new entrants of results
of upgrading initiatives of peers which influenced to a significant extent their vision and action
plans. The visits also made the groups appreciate their strengths as well as discovered ways on
how they can mitigate their weaknesses (group, environment/agronomic conditions, etc.).
Exchange visits and benchmarking triggered players desire for change, propelled them into
action and encouraged innovation, mutual support and appropriate local solutions, thus leading
to greater ownership and sustainability.
Capacities and skills of community-based providers are also showcased during competitions
and demonstrations organized by the project in collaboration with partner organizations (e.g.,
LGU, cooperative, etc.). The project found it more effective to actually demonstrate the skills of
the providers and show tangible proofs such as exhibits of their products during local events to
stimulate the demand for services. The model farms were also effective promotional tools for
the services and the
providers.
Building on farmers
habit of listening to
the radio after a days
work, the project also
supported
the
establishment
of
interactive
radio
programs
that
promotes
participation via SMS.
The radio programs
are
owned
and
operated by the LGUs
in partnership with
cardava
farmer
groups. These low-
23
cost interactive information services reduce feelings of isolation and improve information
transparency. The radio program also facilitates access to technical and market information that
enables players, particularly MSEs, to monitor and adjust to dynamic market conditions and
make informed decisions. In cases where on-air advice is not sufficient, the anchors (who are
also part of the pool of Cardava Doctors - community-based providers) or the most accessible
Cardava Doctor conduct on-site visit and consultation. The interactive radio programs helped a
lot in drumming up interest on the various services particularly for cardava farming technology.
Providers and even the project get leads for potential clientele based on the volume of SMS
senders and the type of questions received.
The
project
also
invested
in
the
identification
and
capability building of
potential catalysts at
the different levels
(functions) of the
value chain to lead the
change process among
their peers as well as
to
help
us
in
establishing projects
legitimacy
in
the
industry. Depending
on local conditions, a
catalyst
at
the
community level may
be a cooperative or
trader. In the selection
of
catalysts,
an
important aspect that was taken into consideration aside from having resources and
skillswas the presence of a clear business purpose (e.g., needing a stable fresh cardava supply
base, seeking to increase cost efficiencies, etc.) rather than philanthropy-driven initiatives to
ensure a medium- to long-term commitment. During the course of project implementation, it
was observed that influence of some of the community-level catalysts were not deep enough to
move people into action. In such cases, we also tapped the municipal government agriculture
and/or trade offices or the Office of the Mayor to act as a co-catalyst. The involvement of the
local government legitimized the initiative, drew in other participants and provided resources
that can accelerate the upgrading initiative (e.g., farm-to-market roads, land for common service
facilities, etc.) Getting respected industry players and other relevant stakeholders (e.g., service
providers, government) involved at the earliest time possible was also key strategy we used to
build momentum in upgrading/change initiatives.
Project also strengthened capacity of local government extension officers to provide support to
the community-based providers. At the start of the project, the SDCAsia conducted an
orientation on the value chain approach for the different government agencies involved in the
cardava banana industry. Subsequently, the project invited government agencies to participate
in project activities and incrementally assigned them specific responsibilities in partnership
with SDCAsia project team members. Joint implementation of tasks afforded mutual learning
opportunities for the project team members and the government extension officers. In all
activities related to the set-up and development of community-based BDS system, the project
collaborated with the local government units (LGUs). In majority of the project areas, the local
government has allocated some budget as well as incorporated in their work plans the
24
conducted of cardava related training and support to collective activities such as first fry
operations, trading, and communal model farms/nurseries.
The project also made it a point to involve media in various activities particularly in the
dissemination of technical and market information and in highlighting successful initiatives and
innovations. In order to go beyond mere reporting of project activities, preference was to work
more with talk shows, cooking, and agri-technology information programs, or the television
news magazine shows. Project investment was mainly on helping the scriptwriters in coming
up with an interesting storyline and in coordinating location shooting. Communities and local
government units usually provided the food and cultural entertainment during the
recording/interview or shooting. Likewise, it has always been a source of pride for
communities to be featured in radio or TV program series. The wide coverage given by the
media on the Cardava Festival helped a lot in accelerating its replication in different areas.
25
26
Highlights:
Consolidation of best practices in cardava farming from indigenous practices handed down
across generations of farmers, research and development from government institutions and
the academe and contributions from industry stakeholders
Development of Manual of Good Agricultural Practices for Cardava Farming, compliant with
food safety and quality standards and responsive to market requirements
Training of community based trainers on Good Agriculture Practices to establish cardava
GAP experts in the farming areas who can provide trainings and timely advice for farmers
Establishment of model cardava farms demonstrating GAP implementation and showcasing
the latest technologies on cardava farming, including the conduct of fertilizer field trials.
Hosting of various levels of GAP competitions, with criteria starting from the simpler and
easier to implement GAP, and progressing to more challenging practices
Outputs:
GAP manuals specific for cardava farming were developed from the consolidated cardava
industry best practices; illustrated versions both in English and in Visayan dialects were
prepared to make them easier to understand
Farmer trainers were developed in major cardava producing communities
Training materials to aid the farmer trainers on teaching GAP were produced; aside from
the usual Powerpoint slides, videos were provided; presentation materials printed in
tarpaulin were also given to the trainers to aid them when they conduct trainings on farms
without electricity
Cardava Model farms were established to help farmers visualize the different ways how GAP
is implemented and the consequential benefits of GAP compliance
Awards and recognition were given to winner of the various GAP competitions; the
improvements and the benefits observed in their farms were promoted
Differences in growth and productivity were recorded for fertilized and non fertilized
cardava hills; with proper fertilization, productivity can be increased by up to 22%.
Increase in profitability higher than additional costs incurred.
Outcomes:
Due to the participatory nature of the manual development process, the stakeholders
exhibited significant ownership on the GAP manuals. They promoted it heavily among their
co farmers. They willingly paid for the manual production costs. The manuals, presented
in comic form, demystified GAP; facilitating self realization among farmers that GAP not to
be needlessly expensive, is grounded on common sense, and GAP compliance, though
mostly implemented incrementally, began immediately either after training or after
purchase of the manual.
27
government extension workers and commercial plantation workers. They are now also
being hired by their respective provincial governments to train other farmers outside their
usual areas.
GAP implementation among the cardava model farms were collectively managed by the pool
of farmer trainers. It initially started as a learning center for GAP, where farmers can listen
and watch the trainers demonstrate how to comply with GAP requirements. The benefits of
which can also be readily observed in the model farms. With continuous improvements on
GAP implementation, pests and diseases have been virtually eradicated and productivity is
at record highs. The farms have progressed into a very profitable collective cardava
production enterprise.
The GAP trainings and promotional activities had spillover effects to other farmers and the
community. GAP evaluation tools like rapid field test kits became very important even
outside the cardava industry. Water PHC bottles designed to evaluate water quality and
potability are now being used by village health workers who previously had no means of
testing the villages water sources. Soil test kits to check for general nutritional deficiencies
in the soil were improved to become more affordable and more farmer friendly. Soil
nutrition programs can now be designed by farmers, for general crop farming.
Training
28
Participatory development of
training modules to facilitate
downloading
of
standards/practices to existing
and potential first fry facilities
and their workers. This was
done by engaging lead firms
and progressive first fry
community-based facility in
Malita to contribute to the
development of GMP cum First
frying module which included
production monitoring forms
and checklists. The module
was tested by the partner first
fry communities and validated
by the lead firms during the
coaching period.
Community based GMP providers have been training and assisting other cardava
communties in the set-up of first fry facilities such as the one in Agusan del Sur, Bukidnon
and New Bataan.
LGUs contributed to the upgrading of the processing facility (such as land and technical
personnel) as well as the provision of financial assistance.
Outputs
29
Capacitated 5 communities
on GMP and first fry
production
(SIARBCO,
Pantukan, Dalesan, UFFAP
and Bukidnon farmers
Group).
Outcome:
Enhanced horizontal collaboration among cardava growers and the the cooperatives
Improved vertical collaboration between lead firms and first fry communites as the latter
has become more attractive for lead firms to work with.
Provided additional income to the community and cooperative members as owners of first
fry facilities and as workers and suppliers of fresh cardava.
30
Members of the Food Safety team were trained by SDCAsia in the 1 USAID IGP project as part of the Young
Consultants Training Program and the capacity building on food safety for government agencies like DOST,
BFAD and DTI. In the B-ACE project, these trained providers (which organized themselves as the Davao food
safety team - DFST) were tapped in the module preparation of the GMP and HACCP in Banana Chips
Processing together with the Banana chips exporters technical personnel. To stimulate the demand for the
service, the project together with the Davao Food Safety Team (DFST) conducted an orientation on food
safety for lead firm owners and technical personnel. In the same venue, the lead firms were made aware
first hand of the existence of such local providers that initiated informal talks. The first engagement was the
conduct of 3 day trainings on GMP to exporters food handlers which later on evolved to become a long term
consultancy (3-6 months) to develop the HACCP system until the point of audit. B-ACE project provided
mentoring to the providers specifically in the definition of the banana chips export quality requirements,
arrangement for benchmarking to existing processing plants that are already HACCP certified and facilitated
initial negotiations between the providers and the exporters.
Davao City (2 July 2009) -- The Department of Science and Technology (DOST) Regional Office No. XI's Davao
Food Safety Team (DFST) has assisted three (3) of the banana processors in the region. Among the three (3)
processors were Sagrex Foods, Inc., Tropical Synergy International and Koki Food International.
DFST conducted trainings on Good Manufacturing Practices (GMP) and Hazard Analysis and Critical Control
Points (HACCP) for Sagrex Foods, Inc. (SFI). SFI is a manufacturer and exporter of frozen Saba banana
products based in Tibungco, Davao City.
DFST is committed to assist SFI in aligning its existing manufacturing systems to GMP and to facilitate
attainment of HACCP certification. SFI is also being assisted by DFST in the laboratory analysis of its products
such as: microwaveable banana, banana fries, and "turon."
With Tropical Synergy International, a banana chips manufacturer and exporter, DFST assisted in aligning its
procedures and plant facility to GMP. In 2008, a GMP Documentation and HACCP Training were conducted
for Tropical Synergy's management and employees. DFST is now focused on providing consultancy
assistance to Tropical Synergy's plant lay-out and design of its newly-constructed manufacturing facility in
Bunawan, Davao City. The review and implementation of the company's GMP plans are also being done.
Lastly, DFST has been assisting Koki Food International, Inc., a banana chips manufacturer and exporter
based in Padada, Davao del Sur in the improvement of its plant lay-out and its existing manufacturing
practices.
In January 2009, the processing plant was assessed by the DFST in terms of its compliance to basic food
hygiene and GMP. Subsequently, an in-house GMP training was conducted for Koki's food handlers and
employees. Since most of Koki's processes involve metal equipment (e.g. chipper, conveyor, cooling
machine), Koki employs a metal detector to effectively separate chips contaminated with metal shavings.
DFST continues to provide technical support to the banana processors to ensure food safety and high
quality of products. (DOST PIA XI)
HACCP
Rather than developing a single one size fits all provider", the program worked with a range of
providers in order to be able to match competencies and structures of different groups of
players at various links in the chain. Providers of food safety related services consist of
progressive farmers, vendors, traders and leaders in communities, graduating food technology
students, government technicians, progressive owners and employees of food processing
companies, and food technologists.
31
Facilitating compliance to food safety and quality standards also has served as catalyst for the
development of coordinated and well-functioning supply chains. Likewise, it also provides the
incentive for investment in upgrading of supply chains and the adoption of safer and sustainable
production and processing activities
Highlights:
Capability and capacity building of local providers on GMP and HACCP on Banana chips
processing
Participatory development of banana chips GMP and HACCP system modules together with
the lead firms and local experts. During the first year of the implementation, the BACE
project supported the continuing capability build up of local, Davao Region based providers.
These local experts were part of the previous BDS providers pool tapped and developed
during the previous SDCAsia IGP project on BDS market development.
Linkage between the supported providers, certification body (TUV) and the lead firms.
Outputs:
32
1 company is undergoing the final stages of a second party audit with a French buyer.
Outcomes:
Local providers are now recognized as home grown professionals providing excellent
services to exporters. Based on the interviews with the exporters, there is now a heightened
appreciation and demand for the services of the food safety experts. Consultancy services
are paid by the exporters unlike 4 years ago when food safety assistance were seen as free
and expected from government agencies like DOST.
Trained local providers and previous young consultants were hired by the companies to
head their HACCP team and maintain the internal audit of the company. There is now
increased awareness on the need to have permanent technical persons within the company.
Interviews with the 3 companies noted that the services by the DFST were very satisfactory
and that their recommendations were followed by the companies until the point of audit.
Buyer of a banana chips exporter that stopped its transactions are again reviving and
gaining the companys trust due to the new systems installed and the certification they have
acquired. Another banana chips exporter has attracted a new buyer from France and the
company is now building the relationship starting off with opening their company for
inspection and second party audit.
33
Values chain upgrading requires coordinated decision-making and action, which usually
involves different value chain participants. At the start of the project, most of the players in the
chain communicated only with those links adjacent to their own - growers with traders or
producers with importers. As such, there was a need for a social infrastructure that would
provide opportunities for industry players to meet and interact as a first step to building trust
which is essential in formation of collaborative relationships. Rather than forming new
coordination structures, the project built on local socio-cultural events and festivals as venues
for players to socialize in informal settings and on existing social networks such as informally
organized supply chains (traders and his/her preferred suppliers), community associations,
local development councils, etc. to make use of their existing governance structures and builtin constituency. In some cases, though, it was necessary for the project to form a new network
when existing groups were besieged with problems and orientation was difficult to align with
the project.
Socio-cultural Events as Platforms for Relationship Building, Info Dissemination, and
Advocacy: The project made use of existing indigenous socio-cultural events like festivals,
cultural events and civic celebrations as platforms for for relationship building, advocacy, and
information sharing and dissemination rather than importing external approaches, which may
not be culturally sensitive, accepted or appropriate.
As festivals are very common among Filipinos, the project developed cardava festivals as a
venue where stakeholders gathered to celebrate anything related to cardava. The festivals have
been highly successful and have attracted large numbers of people involved in the cardava
industry. This has made it an excellent venue to recognize outstanding performances by
stakeholders, draw out and disseminate best practices, build contacts/networks, and share
market information. SDCAsias program supported the conceptualization stage wherein the
34
35
36
Demonstration of capability to meet basic quality requirements which implies the need
for some upgrading and a good understanding of the required standards
Access to a significant volume which calls for a well-functioning horizontal collaboration
Willingness to invest --- Lead firms are more inclined to invest when they see that the
communities themselves have invested their own money/assets. Somehow, this
provides a guarantee that the communities will work towards making the venture a
success.
As such, prior to actively promoting vertical linkages, the project facilitated the upgrading of
communities to basic acceptable performance level. The upgrading period geared towards
making communities attractive and partnership ready also provided them opportunities to
immediately improve income generation capacities allowing for stabilization of food and
general livelihood security. Likewise, the need for immediate cash for daily food prevented
micro enterprises and smallholders from participating in transactions with specific payment
schedules typical of volume orders, which implied the need for safety nets. This issue was
addressed through a parallel strengthening of an interlinked chain such as the street food
vendors which absorbs non-processed grade banana for snack food preparation and with
procurement done daily.
Similarly, improving capacities of traders and lead firms to access markets was an important
factor in integrating communities to growing markets and in enhancing their effectiveness to
support supply chain upgrading. Given the limited market perspectives of many of the rural
traders, upgrading activities consisted of exposure to urban markets and training on product
development, quality standards and control. For lead firms to go for long term relationships
37
with traders and/or the communities, see the relevance of working with them, and entrust more
of the production processes to communities, the project assisted them in establishing a
stronghold in the markets by facilitating their access to services that would assist them in
meeting requirements of bigger markets (e.g., GMP, HACCP) and, whenever necessary, in
accessing buyers. Market development and linkage support were provided primarily with the
objectives of: a) expanding markets of the different links; b) ensuring the continuous flow of
orders to the communities; c) providing the impetus or motivation for the various players to
closely work with each other; and d) encouraging chain upgrading and optimization to
consistently meet market demand and requirements.
Vertical collaborations were done incrementally allowing supply chain partners to commit
themselves in stages to minimize risks and work out the challenges of working together while
proceeding on a small scale. Entry point usually involved partners collaborating to identify and
solve problems in their supply chain. Learning by doing was a common methodology with lead
firm acting as coach and mentors. Chain partners discussed and analyzed their operations
looking for practical ways, for example, to reduce costs and improve food quality and safety.
Steps were also made to ensure that whatever the outcome of the pilot collaboration, it will not
leave either of the parties worse off than before the trial collaboration started. Especially during
early stages of collaborations, the project team encouraged communities to maintain two to
three buyers but in a transparent way. Similarly, lead firms were not exclusively tied up with
just one community. In a 100% dependence, there was a tendency for lead firm to dominate
decision making activities especially so if they have invested more than the MSEs. From the
projects experiences, it would seem that a linkage assumes a more transactional and win-win
nature when both parties have alternative outlets and supply sources, and, as such, minimize
potentials of a price-dependency and paternalistic relationship. Likewise, when relationship
deteriorates and lead firm pulls out, the MSEs find it difficult to start all over again. As such, the
project generally discouraged players especially the communities from putting all their eggs in
one basket. To date, all of the communities that the project worked with are dealing with two
to three regular buyers.
38
The biggest change among existing project area was observed with the relationship of
farmers between traders. Respondents say that traders are more open to teaching them
quality standards, provide help in terms of cash advance and if they offer volume produce,
traders give good price.
For almost less than 1 year engagement and facilitation with the project, new and expansion
project areas, there was a sweeping increase in the mean satisfaction rating from 3.8 (Sad)
to 2.8 (Okay-Happy). Farmer respondents in the expansion area reported positive
improvements in their relationships with players in the industry especially input suppliers,
cardava canvassers and exporters. The openness in sharing the information by the newly
trained cardava doctors, helping each other to deal with production and market access
problems were highly appreciated by many of the respondents.
Changes in the relationships were further examined using the Relationship Matrix that was
developed by SDCAsia during the 1st IGP program. Status of relationship was gathered via key
informant interviews, qualitative results/descriptive results from relationship satisfaction
survey, impressions from the partners, stories from the players and project team field
observations. The table below presents the status of relationships and how this evolved since
39
2008 to the present and covers primarily old project areas (about 30 months project
engagement).
Relationship 1: Farmer to Farmer
RELATIONSHIP BETWEEN FELLOW FARMERS
BASELINE
2008
Information Sharing and Transparency
My
neighbor
is
my My neighbor and I belong to the
competitor. Farmers were same industry. Farmers update each
individualistic with limited other in terms of technology and price
sharing of information offers from their buyers.
(price and buyer) only to
family members and close Frequent
discussions,
informal
neighbors for fear of losing sharing between fellow farmers on
edge over the other new opportunities (i.e organic
farmers.
cardava, cardava for the fresh market
and cardava for banana chips).
Main source of info is
immediate buyer without Farmers from the same area get
validation
or
other market and technical information
source/s of market info.
from several sources that can validate
and counter validate received
Successful farm practices information from traders. They
are seldom shared.
validate info among themselves and
also with other players. Farmers, for
Cardava
farming example, send text messaging to radio
communities
seldom program to validate info gathered
interact with each other --- from peers or traders or in reaction to
in terms of sharing of info broadcasted during radio
technology, market info, program.
etc.
Cooperatives/farmer
groups
in
adjoining communities are starting to
interact with each other not just
socially but also in terms of
upgrading/ learning from each other.
Cooperation and Collaboration
Cooperation,
collective Cooperatives and collective initiatives
efforts are viewed as time gradually viewed in a positive
consuming and with no manner. Increasing number of
significant benefits
by farmers participating in collective
majority of the farmers
initiatives. It has also become a source
of prestige to be a part of a collective
Collaboration is perceived endeavor (e.g., delivery of training,
as will always fail because communal farm, etc.) Farmers tend to
of bad previous experiences coalesce with other successful
in
organizational farmers to join the band-wagon of
development.
success and recognition.
The
farmers
establish
cooperative
to
take
advantage of the dole out
from the government, and
anchored on convenience.
Sustainability is not a
primary objective.
2009
Information sharing is anchored
on the cooperative and the core
community based providers /
leaders in the area. Member and
non members gather market info
(price and quality requirements)
thru the cooperative marketing
personnel.
Ongoing informal sharing and
information is validated by
dealing openly with traders of
different cardava buyers (fresh
local, processed and fresh
Manila)
initiatives
are
40
2009
increasingly
viewed
businesses.
as
2009
Village traders and canvassers
have loyal suppliers.
Suppliers in the area, maintain 23 buyers of cardava in the area
having
the
same
quality
requirements and standards.
In addition to price, many
traders now give premium on
product quality ((maturity and
size)
and
farmers
are
encouraged to do pre-sorting.
Purchase is by cash on delivery;
cash advances prior to delivery
remains an important incentive
for farmers.
Increasing
number
of
traders/canvassers collaborate
with farmers/farmer groups in
the set-up of community-wide
collective marketing initiatives.
41
2009
Quality control and monitoring
are now common practices
within the area. On farm sorting
is
done
to
immediately
determine quality of produce.
Payments are based on weight of
acceptable bananas
Reliability
in
supply
and
adherence/compliance to standards are
measures of competitiveness.
Good quality, pre sorted cardava
2009
Volume, quality, transparency
42
2009
and respect are basis for buyer
and seller selection.
Two way initiated transactions
on delivery, price and payments.
Purchasing officers of exporters
contact
community
based
traders and vice versa.
Exporters provide 1 week notice
of stop buying, while others
give 1 month worth of purchase
orders to community suppliers.
Suppliers maintain 2 -3 buyers
to cushion any impact of stop
buying. It is usually 1 fresh
market and the other on
processed chips market.
No established external
communication protocol
with community suppliers
in case of stop buying
operations.
Information Sharing and Transparency
Directive, one-way, and
limited
information
sharing focused solely on
current transaction and
usually for the selfish
interests of either parties
No clear explanations of
rejected bananas based on
delivery.
Increased
openness
and
information sharing on market
standards to suppliers --especially for newly certified
plants that require strict
compliance to their standards.
Before deliveries both parties
discuss
possible
pricing
schemes, volume that can be
supplied and delivery schedules.
Agreed buying price are stable
for 1 week which coincides with
the weekly purchase orders
provided this is the most
common form of written
agreement.
Exporters for organic banana
chips have 1 year written
PO/Marketing agreement on
volume supply.
Common
understanding
quality standards.
of
43
2009
banana queuing where longer
weighing lines in the receiving of
fresh cardava results to lowering
of bunch weights due to
moisture loss.
2009
No regular transactions.
44
2009
of records on good quality chips.
Written agreements are in the
form of purchase orders that
when agreed upon become
binding. However, POs are short
term engagement only.
Quality
control
procedures
employed in the exporters
processing plant are adapted by
the FF operators.
Common
understanding
of
banana chips standards. For the
first deliveries, coaching on QC
procedures and standards are
done.
Continuous backstopping on
technical concerns like trouble
shooting in slicer failure.
Open communication between
Exporters and FF communities
to discuss not only pricing but
process improvements
Down payment system of oil or
cash continues.
45
2009
46
promotion of broad-based
opportunities for microdominated
inter-linked
cardava chains provided a
win-win
platform
for
boosting
their
competitiveness
and,
consequently, their income
generation capacities.
Highlights:
Compilation
of
new
innovative
and
indigenous
cardava
recipes from Philippines
and Latin America
Promotion
of
recipe
adaptation
in
collaboration with Dept.
of Trade and industry and
the
Department
of
Education
to
school
canteens,
restaurants,
Women
Rural
Improvement clubs and
Barangay health workers
and street food vendors.
Establishment of cardava
snack food micro kitchens
Assistance
in
the
development
and/or
implementation
of
promotional campaigns
on cardava dishes and snack food
47
Outputs:
Established 1 microkitchen
under the 4K
women
Cooperative in partnership
with Rotary club of Davao, 1
with
Unlad
Kabayan
Foundation women partners
and 1 with Sta. Ana High
School
YECS
Club
for
students. The microkitchens
are supplying to nearby
schools canteens on a weekly
basis.
48
incorporated in their
annual gathering.
1 banana exporter
assisted
in
the
development of snack
food products using
cardava
and
its
peelings (orders have
started to come in); 1
importer
currently
promoting
cardava
snack food products in
Korea
Outcome
Microkitchens are all operational with weekly net income ranging from PhP 1,600 to 2,000
and providing employment to women and youths.
Based on surveys, there is an increased awareness among households on the various uses
of cardava. With soaring prices of meat, the cardava (and its peel) is increasingly used by
food insecure families as substitute for pork and chicken.
Vendors reported improved profit margins as a result of their diversified offerings, better
presentation, and simplified GMP adoption.
Project cannot assess extent to which this component has contributed to sustained demand
for cardava in project areas and in Davao City. As per account of cooperatives engaged in
collective marketing, the price for fresh cardava has remained high even during the
supposedly lean months.
49
C. PERFORMANCE INDICATORS/IMPACT
1. PERFORMANCE INDICATORS
INDICATORS
YEAR 1
YEAR 3 TARGET
YEAR 3
ACCOMPLISHMENT
4380
12,000
25,469
75
50
290
18
1903
5,000
7 lead firms
10 traders
13,620
43%
50%
53%
2,408,875.13
12,184,165
Average
Monthly
Income: US$
45.83
64,268
Average monthly
income: US$ 85
230,769
148,061
(January to June 2009)
12,942,000
26,550,000
25,854,240
(Estimated)
30.446 MT =
US$ 36.5
million
39,690,000
3%
30%
50%
4%
20%
38.2%
Scale of Benefits
No. of MSEs assisted by the
project
Sales/income
of
supporting
markets MSMEs supported by the
project (in US$)
Sales/income of SMLEs assisted
by the project (in US$)
Sales of the level of the value
chain targeted by the project (in
US$)
Average Monthly
Income: US$ 80
50
INDICATORS
technologies/ services/ products
available
Number of new financial services
available
Number of new non-sector
specific
services/technologies/products
available
Lead Firms
No. of new production/
management techniques adopted
Number. of new marketing
approaches adopted
Number of new end markets
accessed
Relationships
No of MSEs linked to lead firms
No. of MSEs cooperating with one
another to sell to a lead firm
No. of MSEs acquiring or
purchasing
new
supporting
services
No. of MSEs cooperating with one
another to purchase or acquire a
new supporting service
No. of lead firms and/or traders
providing upgrading support to
suppliers/MSEs
Regulatory
No. of procedures, time, and costs
in getting permits to operate and
other requirements (e.g., bar
code)
YEAR 1
YEAR 3 TARGET
YEAR 3
ACCOMPLISHMENT
None
1
10
3,360
10,000
8,169
3,360
10,000
8,169
4,380
12,000
22,838
4,380
12,000
12,107
30
17
Decreased by 20%
0 --- improvement in
services only
2. IMPACT ASSESSMENT
The impact data below is based on a survey of 1,161 respondents in 10 project areas and in one
barangay as the control group conducted last July 2009. 76% of the respondents were male and
24% were female. 32% of the respondents were elementary graduates only, 25% did not finish
elementary level, 18% high school level, 17% high school graduates, 5% college level, 3.6%
college graduate and 0.3% received vocational studies. About 86% of the respondents own the
land they farm. 4% rent or lease the land they farm from landowners. Another 9% of the
respondents are tenants, hired labor or caretakers of the farms. The average number of years in
cardava farming among all respondents is 7 years.
51
Productivity
Area
% Change
930.16
934.99
0.5%
841.62
874.98
4.0%
321.85
604.26
87.7%
177.75
521.61
193.5%
641.64
676.48
5.4%
607.20
711.58
17.2%
585.44
596.01
1.8%
377
377.89
0.2%
116.76
280.10
139.9%
363.11
409.90
12.9%
In project areas, productivity increased by an average of 50% compared to 12.9% among the
control group. It can also be seen from above table that average monthly yield per hectare in
old project areas (3 years) is higher compared to compared to farms in control community and
in new project areas (1 year and less). Sulop/Asuncion is now in the final audit phase for GAP
certification and will be the first cardava farm that will be GAP certified. Malita is the projects
pilot area and yield per hectare has more or less reached its optimum level. During the 3rd year
of the B-ACE project implementation, Samal stepped up the conduct of GAP training in
response to increase demand from the first fry facility. Although productivity in Agusan del Sur
is still relatively low compared to other areas, the average monthly yield increased by 140% and
this may be attributed among others with the launching of the GAP radio program and the
intensification of GAP training by community-based providers and government extension
officers.
Survey results indicate that it takes 2.5 to 3 years for upgrading efforts to result into tangible
benefits. In areas where project has worked for three years, the increase in income was evident.
Respondents in these areas who responded decreased in income were generally those who
participated in the project activities for just about two years. As per respondents in project
areas, improvements in farming practices and their decision to increase the number of hills or
the size of farm area allotted to cardava helped a lot in cushioning the impact of soaring prices
and natural calamities.
52
Malita
Sulop
Kiblawan
Samal
Asuncion
Montevista
Malitbog
Trento
Total
Started new
farm
Good
agricultural
season
Expanded/
Sold to new
markets
Increased
demand
Applied GAP
85%
100%
100%
100%
76%
83%
100%
73%
100%
92%
100%
100%
100%
100%
100%
70%
100%
100%
100%
86%
100%
100%
100%
77%
84%
100%
100%
100%
74%
100%
100%
100%
100%
92%
72%
Malita
Sulop
Kiblawan
Asuncion
Montevista
Malitbog
Bukidnon
Trento
Prosperidad
Astorga
Total
I have been
sick
Natural
Disaster
Poor agri
season
Pests and
diseases
Poor sales
22%
26%
100%
43%
100%
77%
90%
100%
100%
34%
100%
100%
100%
100%
100%
3%
100%
20%
100%
15%
100%
25%
100%
100%
48%
100%
100%
100%
100%
100%
68%
100%
100%
3%
100%
20%
53
Malita
Sulop
Kiblawan
Samal
Asuncion
Montevista
Malitbog
Bukidnon
Trento
Prosperidad
Astorga (control group)
Total
The additional income that will result due to the improvements made
Higher market price of the produce
Encouraged by results shown by other farmers who implemented the change
To make better use of the land
Regular Buyer
In old project areas, majority of the respondents maintain regular buyers. This may signify
improved trust relations among players especially in older program areas. On the other hand,
an overwhelming majority of the control group (81%) does not sell to a regular buyer. Choice on
whom to sell is driven by price offer.
Area
Malita
Sulop
Kiblawan
Montevista
Malitbog
Bukidnon
Trento
54
Area
Prosperidad
Astorga
Total
50.0%
18.8%
52.4%
Premium Price
An increasing number of traders/lead firms pay premium prices for big, matured, and good
quality cardava.
Area
Malita
54.9%
45.1%
Sulop
65.2%
34.8%
Kiblawan
100.0%
Asuncion
100.0%
Montevista
84.6%
15.4%
Malitbog
50.0%
50.0%
Bukidnon
83.3%
16.7%
Trento
100.0%
Prosperidad
100.0%
Astorga
93.8%
6.2%
Total
59.5%
40.5%
Bought
something
for the
house/
farm
I have gained
more friends
and
acquaintances
I have
gained
more
knowledge
in farming
I have
joined
trainings
and
seminars
I have
helped
others
Malita
72.6%
75.7%
63.8%
68.7%
46.3%
95.6%
Sulop
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
No changes
31.6%
55
Area
Bought
something
for the
house/
farm
I have gained
more friends
and
acquaintances
I have
gained
more
knowledge
in farming
I have
joined
trainings
and
seminars
100.0%
100.0%
100.0%
100.0%
I have
helped
others
Kiblawan
100.0%
Montevista
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Malitbog
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Bukidnon
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Trento
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
77.3%
67.2%
70.4%
51.0%
96.0%
Astorga
(control
group)
Total
74.5%
No changes
31.6%
56