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A Case Analysis on HERBANA FARM

Submitted by: THE STRATEGISTS

ANGELES|OCAMPO|PLAN|YANG|YAO

1/28/2010
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1. CURRENT SITUATION
1.1 Brief History and Description
1.2 Past Corporate Performance/Strategies
1.3 Strategic Posture
1.3.1 Current Vision and Mission
1.3.2 Analysis of Vision and Mission
2. EXTERNAL ASSESSMENT
2.1 Opportunities
2.2 Threats
3. INTERNAL ASSESSMENT
3.1 Strengths
3.2 Weaknesses
4. STATEMENT OF STRATEGIC ISSUE
5. STRATEGY FORMULATION
5.1 Input Stage
5.1.1 EFE Matrix
5.1.2 IFE Matrix
5.1.3 CPM
5.2 Matching Stage (TOWS Matrix)
5.3 Alternatives
5.4 Decision Stage (QSPM)
6. IMPLEMENTATION
7. EVALUATION
8. APPENDICES
9.SOURCES
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1. CURRENT SITUATION

1.1 Brief History and Description

Herbana Farms was first established in 1997 at Tanauan, Batangas. It was built by Mr.
Gil Carandang, the owner of Herbana Farms. Mr. Carandang graduated from the
University of California Cruz under the Apprenticeship program on Ecological
Horticulture. In addition, he was also an apprentice with Natural Farmers of Japan and
also at the Center for Agroecology and Sustainable Food Systems. Because of his deep
interest in planting, he studied and gathered related experiences in Korea, Japan, and
California, where he acquired the knowledge and skill on organic farming and its
technology.

The company is a 4 hectare ecological organic demonstration farm that specializes in the
production of herbs, organic salad greens, and specialty vegetables. It offers training,
seminars and lecture services and apprenticeship programs for people who wants to learn
the different organic and natural farming technologies.

1.2 Past Corporate Performance/Strategies

1.2.1 Marketing

1.2.1.1 Products and Services

The products and services of Herbana Farms are classified into three: organic crop
production, bottled products and farm apprenticeship, seminars and tours.

1.2.1.1.1 Organic Crops Production

From the company’s all organic farming process and inputs, they offer varieties of
organic crops which are the primary product of the company. These products include
salad green lettuce, specialty and traditional vegetables, cut herbs. Varieties of green
salad include romaine, oak leaf, lollo rosa, okayama, and reine de glaces. Varities for
traditional vegetables include baby carrots, cabbage, cucumber, tomatoes, squash, bitter
gourd and eggplant. Specialty vegetables’ varieties are Swiss chard, Snap bean, Ailaan,
Brocolli, Sweet Beets, Shingkang, Kohlrabi, Mizuna, Arugula and Celery. They also
produced herbs such as dill and parsley. Organically produced sweet corn and calamansi
fruit are also part of the company’s products.

1.2.1.1.2Bottled Products
Aside from the organically produce crops by the company, it also has registered bottled
products that are being sold. These include Beneficial Indigenous Microorganisms
(BIM), Banana-Squash-Papaya Extract (BSP), Herbagrow and Herbaplus. These bottled
products can be applied to plants in farm operations.

1.2.1.1.3Farm Apprenticeship, Seminar and Tours

One of the main offerings of the company aside from its organic crop are its services,
training, eco-tourism, and apprenticeship program. This is a creative and interactive way
of informing the people and showcasing them their special types of gardens, organic and
natural farming technologies and procedures, and agroecological approach to sustainable
agriculture. Participants will be provided manuals for theoretical knowledge and hands on
experiences in the actual organic production.
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For a complete listing and description of the company’s available products and services,
please refer to the attached appendices.

1.2.1.2Price
Organic farming is a laborious process as compared to conventional farming. It is a
primary factor in the price setting of an organically produced crop. Herbana Farm’s
prices are higher than that of other organic crops sold in retail and in supermarkets.
Premium strategy is used in pricing the organic products which are set subjectively by the
owner. The price is high, which is well compensated by the quality products of the farm.

1.2.1.3Distribution
Keeping the organic products fresh is a critical consideration on the post harvest of every
agricultural produce. Every distribution channel must have an established market in order
to assure that the products will not be wasted. A good handling of the products is also
important to minimize the losses on damages.
Aside from being able to buy fresh farm produce in its farm in Calamba, Herbana sells
its products in Salcedo Market every Saturday only. Herbana Farms has tried distributing
in three markets, namely; Eastwood Libis, OPTA Coop and Salcedo Market. However,
because of profitability, the owner has decided to distribute only in Salcedo Market as
stated by Angeles (2008).

1.2.1.4Promotion Strategy
Agricultural products need not to be promoted and advertised extensively. It is due to the
high cost that cannot be compensated by the small margin or profit in selling those
products. In the case of Herbana Farms, their organic products are promoted through
trade fairs and exhibits such as AgriLink and Biosearch. Also, from Gil Carandang’s
lectures and seminars, Herbana Farms has been known to many. In fact, Gil Carandang is
dubbed by many to be the Father of Organic Farming in the Philippines. Ecotourism and
internet is also used as promotional tool by Herbana Farms.

1.2.2 Production

The farm sits on a hill with a panoramic views of Laguna de Bay, Mt. Makiling, Mt.
Malarayat, Mt. Makulot and the famous Tagaytay Ridge. It is located 59 km South of
Manila. It is very quiet area with some local folks nearby as neighbors.
Gil Carandang was able to successfully produce the different varieties of crops that
Herbana Farms offers. All the practices incorporated are in accordance with the owner’s
commitment ion promoting organic farming as a way to protect the natural resources of
the environment. Two production systems are shown in the farm: intensive gardens and
field crop productions. Approximately one hectare of Herbana’s four hectare land is used
for organic production. The farm produces its own farming input except for seeds.

The farm lacks organic certification but all of its activities follow the requirements of
OCCP Certification Standards of Organic Agriculture and Processing. Herbana Farm is
also a member of Organic Certification Center of the Philippines and the International
Federation of Organic Agriculture Movement.
Inputs of Herbana Farm consist of seeds and fertilizers. Since Herbana does not produce
it seeds, it generally buys from local dealers such as Allied Botanical Corporation and
East West Company. During summer however, the owner tries to reproduce seeds
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through open pollination. The farm makes use of its pure organic fertilizer composed of
chicken manure and rice hull. Herbana gets the chicken manure from the owner’s brother
who owns a poultry farm. Since the farm also does composting, it makes use of BIM to
hasten decomposition.

Herbana Farms also boasts of its training venues, which has their own modules and
facilities. The farm has gardens, fruit orchards, and apprentice quarters to name a few.

1.2.3 Human Resource

Mr. Gil Carandang, who owns and manages Herbana Farms, also serves as the head of
the farm’s operations and production. His current marketing manager is RT Gonzales.
The farm has limited number of manpower. The regular workers come from far places for
the owner think that it would be more beneficial to Herbana as it would lessen the
incidence of the workers to go home and leave work. Casual workers that live near the
area are hired also but only for additional help.

1.3 Strategic Posture

1.3.1 Current Vision and Mission

The vision statement of Herbana Farms is stated as follows:

“Our vision is to build the greenprint for the self-sufficienct organic lifestyle for the
future”.

Herbana Farms does not state any mission statement in the case or even in their website.
However, given the company’s set of activities, products and services, operations and
other information about them, the Strategists devised a mission statement only based on
the areas and information that the company has elaborated. The mission statement is
stated as follows:

“Our mission is to provide learning and experience the natural and organic way and to
bring quality from all naturally produced products.”

1.3.2 Analysis of Vision and Mission

The vision statement of the company is broadly stated. Nevertheless, they put an
emphasis on what they really want to be in the future, which is to start the effort today in
informing and educating people about organic and natural farming for us to be self-
sufficient in producing organic products. Conventional farming is relatively an easier way
of framing compared to organic farming. That is why knowledge and skills on the
technologies on organic and natural farming should be acquired for us to attain enough
supply of organic food products. And this is the vision of Herbana Farms is all about.

The company’s mission focuses mainly on their products and services and philosophy.
Herbana Farms offers several self-produced organic products and assisted services. In
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line with the trend today of healthy consumption and the flourishing of organic farming,
the company promotes organic crops, vegetables, herbs, and other products. The deep
commitment of Herbana Farms, specifically Mr. Carandang, to promote organic farming
as a way to protect the natural resources of the environment can be seen on its line of
services offered like seminars, trainings, apprenticeship program.

From the nine important components of a good mission statement, the identified
components are: customers (bring quality fresh products and learning experiences),
products and services (organic crops, bottled products and farm apprenticeship, seminars
and tours), philosophy (commitment to the environment and be organically self-
sufficient), concern for survival, growth and profitability (the future plans of the
company), concern for public image (concern for the environmental resources), self-
concept (bringing products plus services for one major purpose) and technology
(different organic and natural farming technologies).

To further analyze the company’s vision and mission statement, comparison and analysis
were made from two competitors’ mission and vision statement.

The Vision statement of Cal-Organic Farms is stated as follows:

“Our vision is to set the highest quality standards for the industry and ourselves and
then exceed them. We advocate a team approach to grow our business, from the field
to your dinner table.”

The Mission statement of Cal-Organic Farms is stated as follows:

“Responsibility first.”

“Our success lies in our ability to capitalize on our knowledge of sustainable farming,
our passion to provide the best service for our customers, and our sense of
responsibility to preserve the planet.”

“Cal-Organic maintains an informal work environment where creative thinking,

respect, family values, and camaraderie are promoted. We realize and acknowledge
that our co-workers are just as much a representation of who we are as the produce we
sell.”

“We recognize that our company's growth is directly correlated to how well we fulfill
our pledge. It is our character, our consistency, and our caring that makes us unique
and ultimately Cal-Organic.”

The vision and mission statement of Cal-Organic Farms is better than Herbana Farms in
terms of clarity and specificity of the details. Unlike Herbana, Cal-Organic strongly
emphasized its concern for their employees as vital part and member of the company.
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Moreover, they also stressed their social responsibility to preserve the environment. The
rest of the components can also be seen in Ca-Organic and almost the same as Herbana’s.

The Vision/Goals of Jacob Farm /del Cabo is stated as follows:

“Our goal is to practice farming and business in such a way that it can be carried on
for generations to come... in a way that takes care of our workers, farmers, the earth,
and consumers. We focus on the big picture and strive to seek out greener and more
sustainable options company wide.”

The Mission statement of Jacob Farm/del Cabo is stated as follows:

“At Jacobs Farm / Del Cabo, our mission is to grow great tasting, healthy food in a
socially and environmentally responsible manner.”

“We strive for a sustainable approach to agriculture, using sound business practices
and organic farming methods. We are proud to have helped many individuals and
communities prosper through an unwavering vision geared toward social change.”

In the vision and mission statement of Jacob Farm /del Cabo, they put the largest
emphasis on their social responsibility, specifically for the environment and society as a
whole by providing economic opportunities and a safer environment free of toxic and
persistent chemicals. The company is also pushing for a sustainable agricultural approach
through innovations and advance organic farming techniques that would provide better
production and high-quality products. They also stress their concern for their present and
future customers and employees.

Comparing Herbana and Cal-Organic, Cal-Organic have almost all of the components of
mission statement and treated them equally or they do not prioritized on a single or
particular component only. Both Cal-organic and Jacob Farm /del Cabo have almost all
of the nine components in their mission statements, moreover, Herbana and Jacob Farm
/del Cabo both emphasizes on particular components. Herbana focuses on its products
and services and Jacob Farm /del Cabo focuses on social responsibility and sustainable
agricultural approach or the technology.

Considering the nine components of mission statement and the analyzing the
competitors’ vision and mission to go above it, the Strategists has came up with a
proposed vision and mission. It is stated as follows:

Proposed Vision:

“Our vision is to be the top provider of quality organic products and continue to bring
organic and natural farming knowledge to everyone towards a sustainable and self-
sufficient organic production and consumption.”
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Proposed Mission:

“Sustainable agriculture for sustained and better future”

“Our mission is to be the forefront and market leader in sustainable organic farming
that would benefit our customers, employees and the environment. We would be
capitalizing on our knowledge to all the more improve our products and offer better
services committed to preserving natural resources and to our social responsibility.”

2. EXTERNAL ASSESSMENT
2.1 Opportunities

The industry of organic agriculture is growing; thus, the demand for organic produce
would likewise follow.

There is a big market for organic agriculture. As stated by the Department of Trade and Industry,
organic agriculture is growing by 10-15% every year in the Philippines. In the world, organic
agriculture trading is increasing by 20-30% every year.

In 2005, many farmers from Benguet and the rest of Cordillera in Luzon have shifted to organic
farming practices. Thus, sales of organic fertilizer in the area are greatly affected. Adoracion
Ceniza, chief of the fertilizer and pesticide monitoring, farm production is better than when it
adapted Integrated Pest Management.

According to Food and Agriculture (2001), the Philippine Organic sector is small. Overall value
is estimated to be only P250M, which about 60% goes to imported processed products. Despite
this, it can be said that there is a stable demand for organic produce and a high demand
particularly for organic vegetables. According to the study of Sabado, Jr., (2009), organic
vegetables are priced higher than conventionally grown vegetables, but despite the economic
crisis, consumers will still continue to buy. This is greatly attributed to the developing
consciousness of consumers.

Magsasaka at Siyentipiko para sa ikauunlad ng Agham Pang-Agrikultura (MASIPAG) has placed

unofficial estimates for value of exports at US $10 million or more last 2003. With no available
export volume and value for local organic export, at an estimated 20% growth rate, exports could
reach US $18 million or more in 2006.

This is definitely an opportunity to Herbana Farms, since it is a farm specializing mainly on

organic produce. This means that there will always be consumers who are willing to buy organic
products, even amidst economic crisis.

The trend towards healthy lifestyle is increasing.

Aside from the healthy practices of organic farming which benefit the environment, it also gives
beneficial produce. This is so since no synthetic fertilizer residuals are seeped through the plants
and it has no pesticide residues. With intense and realistic flavors, organic produce has no
genetically engineered organisms or varieties.
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According to UK government guidelines, no evidence pertaining organic produce being healthier

than conventional produce exists. In a study conducted at Newcastle
University by Dr. Kirsten Brandt however, it was found out the eating organic products is
healthier. According to her study, organic carrots, apples and potatoes contain greater
concentration of Vitamin C, and other chemicals that can protect the body against heart attacks
and cancer. Also, in an article of Asia Food Journal (2007), it was stated that other new studies
found out that organic tomatoes have more Vitamin C, beta-carotene and flavonoids which fight
against cancer and heart disease. These researches are able to contest UK’s banter against organic
produce.

One farmer, interviewed in the study of Sabado Jr. (2009) claims that target market of organic
produce are the 30% affluent people and 70% health conscious consumers which very much
includes cancer patients. It was stated in his study also that leafy vegetables, particularly lettuce,
is the most in demand organic vegetable. This is because lettuce is the main ingredient used in
vegetable salad used for consumers who are conscious of what they eat because they want to lose
weight. Thus, nowadays, more and more people are becoming health conscious and tend to eat
more vegetables and less meat. To be exact, they do not just eat vegetables, but specifically
organic ones. Many consumers are aware of the benefits that one gets from eating organic
vegetables, as opposed to conventional ones. They believe that organic vegetables are safe to eat
and thus, the high prices of these produce are well compensated because of the known benefits
that organic products give.

These health conscious and affluent individuals can be sure consumers of Herbana Farms.

The government and other institutions have strong support to organic agriculture.

Last December 2005, Executive Order No. 481 titled “Promotion and Development of Organic
Agriculture in the Philippines” was approved. This will help in the development of organic
production markets, the technology dissemination and, assistance to organic farmers and
practitioners.

The very first national Organic Agricultural Planning Workshop was held by the Bureau of Plant
Industry, Bureau of Agriculture Fisheries Product Standards, Organic Producers Trade
Association and the Philippine Development Assistance Program last June 9 and 10, 2004.
Through this, the Philippine National Organic Board was born. This agency supports the
implementation of the Philippine National Organic Standards and Certification System, and the
establishment of a Five-year Organic Industry Development Program.

Also, Organic Certification Center of the Philippines has prepared a plan, which was submitted to
the Department of Agriculture, labeled Philippine National Standards Specification for Organic
Agriculture which is for the purpose of providing uniform approach to the requirements which
consist of conversion of farms to organic agriculture, crop and livestock production, processing,
and others.

In addition, the Department of Agriculture believes that organic farming cuts the dependence on
chemical pesticides and fertilizers and so launched the first phase of OFSP that promotes organic
farming. Another effort of DA to promote organic farming was its World Food Day Celebration
last 2008 which introduced to farmers in Bohol the benefits of organic farming to increase farm
productivity and improve soil fertility as it uses less fertilizer that rubs off soil nutrients.
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NGOs, farmers organizations, local government units and sustainable agriculture advocates
established Go Organic! Philippines in order to promote organic farming as a way of life to
ensure better health, food security, and balanced environment.

Article from BusinessMirror, dated August 18, 2009 also reported that a thorough evaluation of
the chemical inputs used in the farm was conducted in order to protect the general public form
harmful effects.

The government and other institutions’ support greatly help Herbana Farms in many ways. One
would be indirect promotion of their farm since they practice organic farming. Also, strong
government support is needed for the success of an industry.

Organic Farming technologies are developed.

With the approval of Executive Order 481, the need for an information system for organic
agriculture is strengthened. To support this, Phil-Organic was launched during the Philippine
Society of Soil Science and Technology (PSSST) wherein members signed a Memorandum of
Agreement at PCCARD, together with other organizations that the National Technical Committee
shall serve as the data information center which shall integrate and disseminate data through
electronic and other means to interested stakeholders through the Phil-Organic Network.

Also, in a study conducted by Cortiguerra (2009), estimated potential demand for vermicompost,
which can be one of the nutrient-providing inputs of organic farming, is 166, 864 kg. This shows
a bright potential as evident from the increasing trend in the volume of production.

Not all know the technical know-how in organic farming, especially with regards to technology
use. In fact, according to Sabado Jr’s (2009) study, one factor why conventional farmers are
constrained in shifting to organic farming is their lack in technical know how.

With Gil Carandang’s sufficient background in the technicalilties of organic farming, Herbana
can utilize these farming technologies developed, for the advantage of their farm. From
Herbana’s apprenticeships and seminar, the use of these technologies may be introduced and
taught to participants and even to farmers.

There is an increasing popularity of agri-tourism/eco-tourism concepts. There is an

opportunity for the farm to serve as retreat area for those who need rest and serene
environment.

In order to escape the busy city life of working professionals, agritourism and ecotourism
concepts has become one way of achieving a stress-free and relaxed recreation. Also, tours and
visits are done to know more of organic farm operations. This will surely be an opportunity for
Herbana Farms to attract customers with their offered tours and apprenticeships.

It is hard to venture into organic farming.

Although a lot of support has been given to promote organic farming, a conventional farm cannot
just easily shift to organic farming in a snap. Aside from technical know how and skills, it
requires motivations and commitment. Formal training and proper background of such farming
practices is greatly required. Thus, this is seen as an opportunity by Herbana Farms because it
would mean that there is high barriers to entry in the industry and that farmers or farms that
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would most likely want to convert their farms into organic can ask for their assistance or even
participate in their seminars and apprenticeships.

Also, to be fully certified as an organic farm, procedures must be undertaken. For the products to
be fully called “certified”, about 4 years inspections and procedures must be followed.

With the owner being a former head of Organic Certification Center of the Philippines, he can
very well attest that he knows the requirements of such certification standards.

2.2 Threats

The occurrence of natural calamities like storm, flood, and strong winds serves as threat to
the farm.

Typhoons like Pepeng and Ondoy certainly pose as a threat to the farm production of Herbana. In
fact, in an article dated October 14, 2009 in The Manila Times, organic farming advocates had
called the Department of Agriculture to integrate disaster preparedness and risk reduction by
funding programs that will make farming resilient to natural calamities. Agricultural-based
business are significantly affected by these natural calamities and as such, profitability of the
company.

There is a continuous increase on the prices of inputs

Herbana buys “untreated” seeds from Allied Botanical Gardens and East West Company, since
these companies are affected by the changing economic trends in the country, brought about by
increase in fuel and the like. This serves as a threat to Herbana since they do not have any control
on the prices of the seeds that they buy, and thus affecting profitability of the company.

There is an intense competition among organic farms.

Existing organic farms in the industry have their own means of promoting their products. Since
one of Herbana’s weaknesses is its low promotional activities, wherein they only engage in trade
fairs, exhibits and promote their company through website and word-of-mouth, it would be easy
for those existing organic farms to promote their own products.

3. INTERNAL ANALYSIS
3.1 Strengths

The owner is a known advocate of organic farming.

Some people refer Mr. Gil Carandang, the owner of Herbana Farms, as the Father of Philippine
Organic Farming. This is so since he is usually invited as a speaker in seminars because of his
passion for organic farming. Mr. Gil Carandang’s knowledge is due to his learnings from other
countries. His degree in Ecological Culture and apprenticeship has helped him gain his insights.
He has been able to gather experiences from Korea, Japan and California about organic farming
and technologies associated with it.

The farm has good quality products

It can be said that Herbana has good quality products as all are organically produced and are of
high value to customers. Also, even if their products are at premium price, customers are still
willing to buy their products.
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The farm offers diverse organic crops.

Herbana Farms practices intercropping and crop rotation. Unlike some farms which only have
limited kinds of crops but are in large volumes, Herbana offers wide array of organic crops. The
farm offers various organic crops like salad green lettuce, specialty and traditional vegetables, cut
herbs and calamansi. They have different varieties for these. Varieties for green salad lettuce
include romaine, oak leaf, lollo rosa, okayama, and reine de glaces. Varieties for traditional
vegetables include baby carrots, cabbage, cucumber, tomatoes, squash, bitter gourd and eggplant.
Specialty vegetables include Swiss chard, Snap bean, Ailaan, Broccoli, Sweet Beets, Shingkang,
Kohlrabi, Mizuna, Arugula, and Celery. Herbs such as dill and parsley are also produced. Sweet
corn and Calamansi Fruit are also part of their production. See attached appendices for a complete
listing.

The farm has other programs like apprenticeships that might result to attracting potential
customers
Herbana Farms is not known only for producing organic crops but for the tours, apprenticeships
and seminars that it provides. From the seminars that the farm provides, the people that will be
attending these can become customers in the future. These programs can instill the importance of
going organic and to inspire others.

The farm has a well developed area that allows one to experience nature
Strategically located at Brgy. Burol Calamba, the farm is surrounded by the view of Mt. Makiling
and its fields. This is very much enjoyed by guests and participants of their tours, seminars and
apprenticeships. This can be one way of attracting customers, such as urban people who want to
relax and would want to go on a recreation.

The farm has available land.

Herbana Farms is a four hectare land but is currently just using 1 hectare for its crop production.
This gives room for expansion.

The owner has strong communication skill which is one way of promoting the company.
The communication skill of the owner is a great help in promoting not only organic farming but
Herbana Farms as well. Since he is always invited in seminars and lectures because of his
knowledge in organic farming,

The company has good corporate social responsibility.

By promoting organic farming to the society, the company has a way of giving back to the
environment and promoting sustainable agriculture. This can be a way for Herbana to gain
respect and even reputation. Also, from the ecotourism activity that the company conducts,
participants can very well experience what is to relax in a stress-free environment.

3.2 Weaknesses

The owner has insufficient management background.

More of the owner’s knowledge is on the technical and production side of farming. He does not
possess or has not undergone proper management training and education in order to successfully
manage the different functions of the company, specially the marketing aspect. Also, his
insufficient management background has probably paved the way for a lack in formal statement
of the company’s mission and core values. Also, this has caused the lack of formal organizational
structure of the company as only production and marketing seem to be present in the company,
but with no formal division.
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Herbana has narrow market distribution

Currently, products of Herbana can be bought in the farm itself and its only major distribution
outlet which in Salcedo Market Makati. This outlet only caters to the market every Saturday from
nine in the morning until two in the afternoon. This is considered as a weakness for the company
since narrow market distribution would mean that there may be market opportunities elsewhere
that the company can cater to.

The farm has limited personnel

Although the farm has regular personnel, provided with lodging within the farm, Herbana still has
to hire additional help when needed. This means that their personnel are not that organized and
are only limited. This serves as a weakness for Herbana because there may be cases when
additional help is needed but no worker will be available, thus affecting the production of the
farm.

Low promotional activities

Herbana farm just relies on word of mouth, from the lectures of the owner, and its internet
website that has not yet been updated. The farm provides ecotourism and joins exhibits and trade
fairs but aside from these, no other major marketing efforts are done in order to promote the
company.

The farm lacks certifications for being an organic farm.

Gil Carandang was head of the Organic Certification Center of the Philippines and is now
considered a founding member of the said organization. However, despite this, even if the owner
is a member of Philippine Organic Standards, Herbana opted not to acquire certification because
the owner opted not to be active anymore since they consider themselves as a small grower still.
See attached appendices for the complete steps of acquiring organic certification.

4. STATEMENT OF STRATEGIC ISSUE

Considering the case facts and the internal and external assessment, the major strategic issue
identified is: How can HERBANA FARM advance its competitive position in the industry?
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5. STRATEGY FORMULATION
4.1 Input Stage
4.1.1 EFE Matrix

Table 1. EXTERNAL FACTOR EVALUATION FOR HERBANA FARM

Key External Factors Weights Ratings Weighted Scores

A. External Opportunities
1. The industry of organic agriculture is growing; thus, the demand for organic produce would likewise .20 4 .8
follow.
2. The trend towards healthy lifestyle is increasing .15 3 .45
3. The government and other institutions have strong support to organic agriculture. .10 4 .4
4. There have been many organic farming technologies that were developed. .07 2 .14
5. There is an increasing popularity of agri-tourism/eco-tourism concepts. There is an opportunity for the .09 3 .27
farm to serve as retreat area for those who need rest and serene environment.
6. It is hard to venture into organic farming .15 3 .45
B. External Threats
1. The occurrence of natural calamities like storm, flood, and strong winds serves as threat to the farm. .08 3 .24
2. There is a continuous increase on the prices of inputs .07 3 .21
3. There is an intense competition among organic farms. .09 2 .18
TOTAL 1.00 3.14
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5.1.2 IFE Matrix

Table 2 INTERNAL FACTOR EVALUATION FOR HERBANA FARM

Key Internal Factors Weights Ratings Weighted Scores
A. Internal Strengths
1 .The owner is a known advocate of organic farming. .09 4 .36
2. The farm has good quality products .11 3 .33
3. The farm offers diverse organic crops. .09 4 .36
4. The farm has other programs like apprenticeships that might result to attracting potential .11 4 .44
customers
5. The farm has a well developed area that allows one to experience nature .04 3 .12

6. The farm has available land. .09 4 .36

7. The owner has strong communication skill which is one way of promoting the company. .05 3 .15
8.The company has good corporate social responsibility. .05 4 .20
B. Internal Weaknesses
1. The owner has insufficient management background. .06 1 .06
2. Herbana has narrow market distribution .15 2 .3
3. The farm has limited personnel .05 1 .05
4. Low promotional activities .04 2 .08
5. The farm lacks certifications for being an organic farm. .07 1 .07
TOTAL 1.00 2.88
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Table 3. Competitive Profile Matrix for Herbana Farms

Gourmet Farms Herbana Farms Old Kano’s Farm

Competitive Factor Weight Rating Score Rating Score Rating Score
Supply Chain Management .18 2 0.36 2 0.36 2 0.36
Volume flexibility .15 3 0.45 1 0.15 2 0.30
Customer relationship management .15 3 0.45 4 0.60 4 0.60
Intensity of Promotion and advertisement .05 3 0.15 3 0.15 2 0.10
Technology .14 4 0.56 3 0.42 1 .14
Product line breadth .08 4 0.32 4 0.32 3 0.24
Product quality .25 4 1 4 1 4 1
Total Weighted Score 1 3.29 3 2.74
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Table 1 shows that the total average weight of 3.14 means that Herbana is not below its average
performance. The heighest weight of 20% is given to the growing organic industry and it is seen that
Herbana is able to respond to this opportunity. In general, Herbana has been able to cope or take
advantage of the industry’s opportunities. With regards to the threats however, it is seen that Herbana can
still improve on this part and devise ways to take the threats to their advantage.

Table 2 shows that the company’s major strength are its products, services and available land. Its major
weaknesses are marketing and personnel which results from the owner’s lack of managerial background.
A total weighted average of 2.88 indicates that Herbana Farm is above average in its overall internal
strength.
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5.1.3 CPM
In order to successfully analyze the position of Herbana Farms with regards to its
competitors in the industry, a competitive profile matrix is presented using information
from previous studies, the internet and other related articles.

With this, the following are the identified key success factors:

Supply Chain Management is given a weight of 18%. It is given the second highest
weight since the industry mainly deals with farm, it is important to note where the farm
gets its inputs and where its products are distributed.

Volume flexibility refers to the ability of the farm to meet the demand or requirements of
customers in terms of volume. This competitive factor is important to consider since
agricultural activities like crop production are highly affected by natural factors. Unlike
industrial products, 100 percent and uniform productivity is uncertain. Thus, it is
important for a farm to have a proper scheduling of production activities so that it will be
able to have a continuous supply of produce to respond customer quantitative demands
and to provide customer satisfaction. This competitive factor, having a weight of 15%,
also suggests the farm’s sustainability. This can be measured through looking at the
capacity of the farm, the volume of production on given period, number of distribution
outlets, and number of customers declined due to inability to meet their demand in terms
of volume, amongst others.

A good customer relationship refers to the regularity of demand through customer

loyalty as a result of good farm service and dealership to customers. In any business,
good customer relationship is a priority. Since this competitive factor mainly relates to
customer satisfaction, this was given the same weight 15% as volume flexibility. This
factor can be assessed by considering the number of regular or loyal customers, number
of customers acquired within a given period, and number of customer complaints,
amongst others.

Agricultural produce like vegetables and livestock animals are basically undifferentiated
products in the market. Thus, these do not need much promotion. This justifies then why
the intensity of promotion, as competitive factor, was given only a weight of 5%. This
factor was considered as one of the competitive factors in CPM for the purpose of
providing an overview of how well the farm is known or attractive to customers
compared to other farms in the industry by looking at the promotional activities and
campaigns of the farm. Furthermore, promotion is considered as one tool of value-
adding.

Productivity is one of the issues faced by the organic farming industry as a result of the
growing response to food security. Organic farming basically produces lower yields than
conventional farming. To say from here, organic farming cannot feed the growing
population of the country. This is one of the reasons why conventional farming cannot be
put in the picture out. Considering these, development of new technologies and
techniques that would increase more the productivity of organic farming has been a task
for researches nowadays. Thus, these justify why technology was considered as a
competitive factor with a high weight of 14%. This factor can be measured by assessing
the current technologies and techniques adopted by the farm. The technical skills also of
farm personnel can also be an indicator of this factor since it relates to technological
awareness in organic farming,
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Product line breadth refers to the wideness of product offerings of the farm. A wide
product line, particularly of agricultural produce, is advantageous in the sense that risk is
minimized. This factor also suggests the farm’s response to different consumer
preferences and favorites. Product line breadth can be measured by considering the
number of product offerings of the farm. In particular, it can be measured through
looking at the number of crops planted and sold to market and as well as the number of
products derived from crops planted. This factor was given a weight of 8%.

Product quality, being basically the name of the game nearly for all industries, was also
considered with the highest weight of 25%. This factor can be measure by considering
the varieties planted by the farm and evaluating the post-harvest practices of the farm.
Product quality, in terms of varieties, may suggest the following factors: resistance to
pest and diseases; early maturity; long shelf life; etc. On the other hand, post-harvest
practices (sorting, cleaning, etc) contribute to the attractiveness of the produce of the
farm to consumer’s eyes. A well-cleaned vegetable for example suggests good quality.
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Supply Chain Management. Gourmet Farm is rated 2 because it is not yet fully integrated. It
has its own processing facility in Silang, Cavite and a distribution system. However, majority of
its raw materials/inputs is supplied by farmers from Batangas and Cavite. Gourmet is just contract
growing with the farmers as part of their corporate social responsibility according to the
marketing manager of the company. The company buys their produce at a fair price and then sells
it at a premium. On the other hand, Herbana Farms is also given a weight of 2 with regards to
degree of integration because the farm actually produces all of its inputs except for seeds. Also, it
only has 1 point of distribution, aside from the farm itself. Herbana sells only its products in
Salcedo Market every Saturdays. And lastly, the Old Kano’s Farm is rated 2 when it comes to
the degree of integration since they only produce fresh vegetables and herbs in which they supply
to luxury hotels such as Manila Peninsula. The farm does not produce its own seeds instead they
are purchased from outside sources. The farm was also given this rating because they are not
engaged into food processing and just cater their fresh produce as ingredients.

Volume Flexibility – For their coffee product, Gourmet is accepting institutional buyers like
hotels. But early order must be executed because they are only roasting their coffee beans upon
order instead of stocking roasted beans to avoid quality deterioration of the coffee. They have
large area for their lettuce, that’s why they can produce many of them. A rating of 3 is given
because their volume flexibility is above the average. Herbana Farms is given a rate of only 1
because in its listed 25 items and corresponding volume of production in kilograms, only 7 of its
products are produced more than 10 kg per week. Its other products are sold weekly at a
minimum of 2 kg only. The owner believes that producing vegetables in high volume would
cause imbalance in the ecological system. Also, only 1 hectare is utilized for its crop production.
Old Kano’s Farm has a total lot area of 12,747 square meters which is quite small even for a
high-value cropped farm. In terms of volume, the farm was able to provide the necessary amount
of herbs needed by its buyers; but they are not that flexible since they only produce a fix amount
of produce per week. Also sometimes, they are being asked by its buyers if they can also grow
other kinds of herbs and this lead to the extension of their product line to 18 varieties. A rate of 2
is given.

Customer Relationship Management. The customers of Gourmet mostly are institutional buyers
which include supermarkets, hotels and restaurants in Metro Manila and fast food chains like
Mcdonalds. The company maintains its close relationship with its customers by offering high
quality, safe and healthy products. Gourmet also guarantees its customers to deliver their orders
at the set date and the right amount. It is given a rate of 3. Herbana Farms is given a rating of 4
because not only is the farm focused on the production aspect, but the owner makes sure too that
its customer becomes an advocate of organic farming. This is done by the presence of the Salcedo
Market wherein the owner himself is present every weekend to interact with the customers. Aside
from that, the farm also is engaged in farm tour wherein interested customers may opt to visit the
farm. Most importantly, Herbana offers too farm apprenticeship and seminars. This is his
accordance again to his advocacy for sustainable agriculture to people and community. The Old
Kano’s Farm has a good working relationship with its customers, which is why we gave them a
rating of 4. Way back then, the farm started producing commercially is when one visitor named
Werner Beger discovered the owner’s, Mr. Amman’s bed of dill, bought some of it and later
introduced him to the Chef of Manila Peninsula and established a good relationship since then.
They were able to do so by continuous compliance to their customer’s orders. And this is also
how their relationship with other customers flourished.

Intensity of advertisement and promotion – Promotion and advertisement was not commonly
done by organic farms, so rating of 2 was given. But since Gourmet farms already expanded and
already have cafeteria and store for their organically produced products and dishes, they also
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engaged in advertising via the internet and made their website for the basic information about
their company, basically on products. They are also accommodating tours on their farm, which is
also a form of promotion. Rating of 3 was given because they didn’t perform poorly on that
aspect. Herbana Farms is given a rating of 3. The products of the farm are promoted through
trade fairs and exhibits like Agrilink and Biosearch. The owner himself conducts seminars and
lectures and because of the owner’s advocacy for organic farming, the owner has been invited to
several seminars to talk about his passion. Through this, Herbana farms has been well known.
One promotional tool it also uses is ecotourism. Another would be use of internet through its
website and by word-of-mouth. It has also started packaging its bottled products with the owner’s
name printed on it in order to conform to his advocacy of organic farming. That is why it is given
a rating of 4. On the other hand, the level of intensity in terms of advertisement and promotion of
Old Kano’s farm is relatively low because they are satisfied with their current level of operation.
Also, their advertisement is not intensive. For example, their website does not provide all the
necessary information needed by interested customers. This will have an effect on their future
operations. Because of this, we only gave them a rating of 2.

Technology. When it comes to technology, Gourmet uses state of the art equipment in
processing their products so it was rated 4 by the group. It caters to renowned fast food chains in
the Philippines like McDonalds for their coffee. With their technology, they were able to cater
coffee to the export market before as stated by the company’s marketing manager. They withdraw
from the export market because they were not able to sustain the demand for coffee due to the
deficiency of supply of coffee beans in the Philippines. Herbana Farms is a demo farm which
focuses on technology dissemination. It is given a rating of 3 because although the owner has had
ample information regarding organic farming technology through his different experiences in
California, Korea, and Japan, no sufficient information has been told about definite use of
technology. Only practices in which he adopted his learnings in Canada and Japan are cited. Also,
the farm lacks organic certification, all of its activities and operations follow the requirements set
by OCCP Certification Standards of Organic Agriculture and Processing. Old Kano’s Farm uses
green house farming but is not inclined into so much technology; we can say that they are not
since they still do not have their own processing facilities. They are just currently producing fresh
vegetables and herbs. But these fresh produces has 18 varieties, different varieties from different
places around the world, and this may need only the basic farming technologies. So with this, a
rating of only 1 is given.

Product Line Breadth. Since health and wellness are the forefront of Gourmet’s objectives, it
produces a wide array of organically grown products from coffee, herbal teas, organic produce,
refresher’s salas to kitchen exclusives such as dressings, sauces, spreads, natural oils, herbs and
wine vinegar. The group assigned a value of 4 because of the scope of its product line is wide.
Herbana Farms is also given a rating of 4 because of wide scope of products. It offers organic
crops such as salad green lettuce, specialty and traditional vegetables, cut herbs and calamansi.
Aside from that, it also offers bottled products which act as microbial inoculants. Included in its
product/service line is its offer on farm apprenticeship, seminars and tours. Old Kano’s Farm
has a broad product offerings, the vegetables are namely green ice, romain, lolo rosa and red
lettuces, tatsoi, mizuna, cucumber, New Zealand spinach, baby carrots, endive, french beans,
kohlrabi, red raddish, cherry tomatoes , turnips Tokyo and stripped eggplant, and the 18 variety of
herbs are purple basil, sweet basil, cilantro, dill, marjoram, mint, Italian oregano, Italian parsley,
arugula, rosemary, sage, sorrel, Mexican tarragon and thyme , they also have some spices like the
Thai pepper, the habanero pepper and the cayenne, other products like tatsoi fine leaves, mizuna
fine leaves, rocketa fin leaves, fennel fine leaves, kohlrabi fine leaves ,sorrel fine leaves, mesclun
leaves mix with lettuce leaves , mustard and radish sprout. They are the pioneer in producing
organic products in Region 4 but a rating of only 3 is given since all their products are just crops.
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Product quality – Gourmet Farms Inc. having its early start on coffee trading in the Philippines
has already acquired the mastery of coffee roasting and choosing finest coffee beans, The dishes,
salads, dressings and others included in their menu all come from finest ingredients and
organically grown herbs. So rating of 4 is reasonable. Herbana Farms is given a rating of 4
because it is able to dictate a premium price as it capitalizes high quality products. The farm had
already been able to set loyal customers that practices repetitive purchasing because of the quality
of products. So far, no noted complaints given by customers have been heard of. Old Kano’s
Farm is rated 4 when it comes to product quality. They cater the luxury hotels, and this is a good
indicator that they are trusted to produce high quality vegetables, herbs and spices. And through
the years they already acquired loyal customers.

In terms of overall rating, Gourmet Farms is the most competitive among the three, given the
identified key success factors. Perhaps it received the greatest score because of its 0.56 rating in
technology. As for Herbana, it needs improvement in volume flexibility. All in all, it is seen that
Gourmet Farms has a total weighted score of only 3.29 while Herbana has 3.00 and Old Kano has
a total weighted score of 2.74.
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5.2 Matching Stage (TOWS Matrix)

Opportunities Threats

1. The industry of organic agriculture is growing; 4. The occurrence of natural calamities like
thus, the demand for organic produce would storm, flood, and strong winds serves as
likewise follow. threat to the farm.
2. The trend towards healthy lifestyle is 5. There is a continuous increase on the
increasing. prices of inputs
3. The government and other institutions have 6. There is an intense competition among
strong support to organic agriculture organic farms.
4. There have been many organic farming
technologies that were developed
5. There is an increasing popularity of agri-
tourism/eco-tourism concepts. There is an
opportunity for the farm to serve as retreat area
for those who need rest and serene
environment.
6. Venturing in organic farming is difficult thus
inhibiting entry of other firms
Strengths S-O Strategy S-T Strategy

1.The owner is a known advocate of organic farming S6, S7,O1, O2 – Market Development S2, S3, S4, S5 T3 –Differentiation Strategy
2.The farm has high quality products S6, S1, O1, O4 – Strategic Alliance
offered at premium prices S2,S3,S6,O1 – Forward Integration
3. The farm offers diverse organic crops
4. The farm has other programs like apprenticeships
that might attract potential customers
5. The farm has a well developed area that allows one
to experience nature
6. The farm has available land for expansion
7. The owner has good communication skills which can
be beneficial for the promotion of the farm and its
products to potential customers.
8. It has a good corporate social responsibility
Weaknesses W-O Strategy W-T Strategy
1. The owner has insufficient management background. W2, W4, O1 – Forward Integration W5, W4,T3, – Outsourcing Strategy
2. Herbana has a narrow market distribution
3. Limited personnel W2, W4, O1, O2 – Strategic Alliance
4. Low promotional activities
5. The farm lacks certifications for being an organic
farm.
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5.3 Alternatives

There were several alternatives identified by the group based on the fitness of internal factors
with the external factors. However, the group narrowed the number of alternatives into three
which addresses the strategic issue faced by Herbana Farms. The alternatives chosen by the group
are the following:

Market Development

The market for organically produced products has been increasing over the past few years due to
increasing awareness and concern for a healthy lifestyle. This caused a positive shift in the
demand curve for organic products. With this, the organic industry has become attractive for
Herbana Farms and other key players in the industry. However, Herbana’s only market is the
Salcedo market making the farm’s market share limited to the size of Salcedo market.
Considering that Herbana has still available land for expansion, it can increase its production to
cater for the growing demand for organic products.

With this, Herbana could advance its position in the industry through market development. The
group suggests that it should not only focus on Salcedo market alone. Herbana should expand its
coverage to strategic locations where disposable income is relatively high such as the whole of
Metro Manila. It may also opt to locate in areas which are not yet saturated with organic farms to
avoid competition with other organic products.

However, additional costs on distribution and additional personnel will be incurred. Also, a
substantial amount of money will be needed to conduct market research in determining the
strategic areas to enter.

Forward Integration

Herbana could integrate forward by extending its marketing arms. This can be done by making its
products available to as many outlets as possible which the farm could sustain in the long run. By
increasing the number of outlets, Herbana’s products can be exposed to many customers thus
increasing customer contact points. However, its primary drawback is that it increases the cost of
the farm. But with the increase in sales because of higher customer contact, Herbana could cover
for these expenses and still realize a profit.

Differentiation Strategy
At present, there are many competing brands of organic products in the market. This was brought
about by the intensifying competition among organic products as well as non-organic products. A
customer’s psychology is that all organic products are healthy without realizing the differences
between them if what product is the most effective or which brand gives the most attractive
benefits. This is because not all customers are like Albert Einstein who knows the effect of all
substances present in the product. Therefore it is necessary for Herbana to differentiate their
products from that of its competitors. Differentiation strategies are an attractive competitive
approach. Its strategic advantage is that customers will perceive that the product is unique. To be
able to do this, Herbana should establish a strong position in the market by offering a unique
customer benefit and a distinct marketing mix. With this, Herbana will be able to neutralize the
competition with other organic products.
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5.4 Decision Stage (QSPM)

Table 4. Quantitative Strategic Planning Matrix for Herbana Farms

Key Factors Wt Market Development Forward Integration Differentiation Strategy
Opportunities AS TAS AS TAS AS TAS
1. The industry of organic agriculture is growing; thus, the
0.20 4 0.8 4 0.8 2 0.4
demand for organic produce would likewise follow
2. The trend towards healthy lifestyle is increasing 0.15 3 0.45 3 0.45 2 0.3
3. The government and other institutions have strong support
0.10 1 0.1 1 0.1 1 0.1
to organic agriculture
4. There have been many organic farming technologies that
0.07 0 0 0 0 4 0.28
were developed
5. There is an increasing popularity of agri-tourism/eco-
tourism concepts. There is an opportunity for the farm to
0.09 2 0.18 1 0.09 3 0.27
serve as retreat area for those who need rest and serene
environment.
6. Venturing in organic farming is difficult thus inhibiting
0.15 0 0 0 0 0 0
entry of other firms
Threats
1. The occurrence of natural calamities like storm, flood, and
0.08 0 0 0 0 0 0
strong winds serves as threat to the farm.
2. There is a continuous increase on the prices of inputs 0.07 1 0.07 1 0.07 1 0.07
3. There is an intense competition among organic farms 0.09 3 0.27 2 0.18 4 0.36
TOTAL 1.00

Strenghts
9. The owner is a known advocate of organic farming 0.09 3 0.27 2 0.18 3 0.27
10. The farm has high quality products
0.11 4 0.44 4 0.44 4 0.44
offered at premium prices
3.The farm offers diverse organic crops 0.09 4 0.36 4 0.36 4 0.36
4.The farm has other programs like apprenticeships that
0.11 0 0 0 0 3 0.33
might result to attracting potential customers
5.The farm has a well developed area that allows one to
experience nature 0.04 2 0.08 2 0.08 3 0.12

6. The farm has available land for expansion

0.09 3 0.27 2 0.18 1 0.09
7.The owner has strong communication skill which is one way
0.05 3 0.15 1 0.05 1 0.05
of promoting the company
8.It has a good corporate social responsibility 0.05 3 0.15 1 0.05 1 0.05
Weaknesses
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1.The owner has insufficient management background 0.06 2 0.12 2 0.12 1 0.06
2.Herbana has a narrow market distribution
0.15 4 0.6 4 0.6 1 0.15
3.Limited personnel
0.05 2 0.1 1 0.05 1 0.05
4.Low promotional activities
0.04 3 0.12 3 0.12 2 0.08
5.The farm lacks certifications for being an organic farm
0.07 1 0.07 1 0.07 1 0.07
TOTAL 1.00
TOTAL STAS 4.6 3.99 3.90

Using the QSPM, market development strategy obtained the highest attractiveness score. The group therefore recommends that Herbana should
pursue market development strategy to advance its current position in the organic agriculture industry.
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6.IMPLEMENTATION

To increase market share, Herbana should pursue market development strategy. In connection
with this, the company should first evaluate its current financial status if it has the capability to
implement and sustain such strategy. It can either employ its personal resources or seek the aid of
external financing if needed. Since there is a strong support for organic agriculture coming from
the government and other institutions, Herbana could avail subsidies deemed by the government
and other assistances.

Since there is still available land for expansion, engaging in market development strategy would
require an increase in production to be able to serve the demands for the different geographical
areas. If current production capacity of the farm cannot still meet the demand of the market, it
could rent or acquire lands depending on their preference and financial status.

After evaluating its production capacity, Herbana will decide what geographical areas to enter.
The basis for deciding the most strategic location is to consider the level of disposable income
and the degree of saturation of potential locations. The higher the disposable income of a certain
area, the more attractive it will be for Herbana to enter that area. Areas with high levels of
disposable income were the Metro Manila area and urban areas in Cavite, Laguna, Batangas,
Davao and Cebu. A good location is also one that is not saturated with organic farms so that when
Herbana enters the area, competition with other organic products will be avoided. To determine
this, Herbana will conduct competitor analysis to be able to identify rivals and their relative sizes.
This will narrow down the selection of possible potential areas where Herbana should enter.

7. EVALUATION
Consumer’s acceptance of Herbana products in the newly entered areas could be determined
through market surveys of residents of that area. This is to solicit feedbacks from customers and
to determine the preferences of the residential folks. Those who are not buying Herbana’s
products could also be interviewed to find out why they do not purchase the products.

The effectiveness of the chosen strategy will be evaluated by comapring historical sales records
and net profit of the farm with that of the new sales and profitability. Industry analysis will also
be done to determine the market share of Herbana farms relative to the industry if it has improved
or not. If the result of the study shows that Herbana’s market share has not improved, the key
persons should review the strategy to identify points as to why it is not working.

Herbana should also monitor how its competitors would react with its strategy. This is necessary
to know what actions were made by the competitors to counter Herbana’s strategy which will
prevent it from gaining the market shares of the other key players in the industry. This can be
done through market sensing, ghost shopping and surveying competitor’s customers.

If the strategy proves to be successful, the key persons shall identify the factors contributing to
the success of the game plan. These factors will be further improved. On the other hand, factors
that might bring down the game plan will be addressed properly.
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8. APPENDICES

The following services are offered by the company:

 Organic farm development: designing, planning, and building

 Ecological architecture
 Organic landscaping of residential, commercial and institutional properties
 Eco-tourism development
 Consultancy for organic certification
 Trainings and lectures on organic agriculture

o sustainable biointensive mini-farming

o natural farming system for crop and livestock
o grow your own indigenous microorganisms
o planning, designing, and construction of sustainable organic mini-farm
o permaculture basics
o looking at the land: designing from nature
o selected herbs of the tropics
o natural building workshops
o introduction to agroecology
o mushroom culture
o natural farming system of growing free-range chicken

Fig. 1. Actual lecture on organic farming

Eco-tourism

 self-guided tour
 guided tour
 micro-teaching sessions on variety of topics including composting,
vermiculture, herbs, etc.
 accommodation packages are also available. Combination options may
include Reed House and bunk rooms. Full catering can be provided upon
request.
 " Own a Farm Over the Weekend " This special package includes full use of
our farm facilities, independent Reed House accommodation, maid service,
and full catering services. Micro-teaching sessions can be arranged upon
request.
 Seasonal garden plot leases. Full farm support provided for in your absence.
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 Own a mini-farm in our Herbana Eco-Village. We can assist in planning,

design, construction and maintenance of your sustainable eco-farm in this
eco-village.

Fig 2. Actual hands-on teaching session

Training

Seminars and workshops were also being conducted at the Herbana Farms.
 sustainable bio-intensive mini farming
 natural farming system for crop and livestock
 grow your own indigenous microorganisms
 planning, designing, and construction of sustainable organic mini-farm
 permaculture basics
 looking at the land: designing from nature
 selected herbs of the tropics: natural building workshops
 introduction to agroecology
 mushroom culture

Fig.3. Actual seminar

on organic farming

Apprenticeship Programs
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The farm also provides apprenticeship that will both accommodate local and
international participants. In this program, participants will be able to learn
sustainable farming systems as practiced in the farm first-hand, via semi-formal
classroom instructions, field trips, and actual farm works. Several sustainable
farming technologies shall include organic, French intensive, biodynamics and
natural farming, including agroecology and permaculture. As part of the
program, it will not just be limited to the technical production side but will also
include social issues affecting the local food systems.

Fig.4. Some of the participants in

apprenticeship program

In addition to the above mentioned farm produce of the comany, Herbana Farms
also offers affordable products like microorganisms, plant extracts and others.
The summary and description of these products are on table 1.

Table 1. Bottled products of Herbana Farms

Product Product description

Lactobacilli* A dietary supplement and microbial inoculant. It is used for digestion balance
and support, and improve nutrient intake. It aids in the decomposition process
and arrests foul odors associated with anaerobic decomposition.

Ginger-garlic A bionutrient, natural antibiotic dietary supplement. Both ginger and garlic
fermented extract* have been traditionally used in indigenous medicine. Ginger has been known
as anti-inflammatory and digestive aid while garlic supports cardiovascular
system. Both have anti microbial properties and are antioxidants.

Beneficial indigenous Microbial inoculant, cultured from biodivered forest and grassland
microorganisms microorganisms including lacto bacilli for composting, soil building, including
(BIM) control of pest and diseases.

Forest Indigenous microorganisms gathered from our local forest. use as soil
microorganisms conditioner, beneficial fungal association.
(FM)
Bamboo Indigenous microorganisms gathered from our local bamboo grove use as soil
microorganisms conditioner, beneficial bacterial association.
(BM)
Immu-boost Plant extracts derived from several herbs of known antioxidant and immune
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boosting properties of oregano, guava and turmeric.

Calphos Natural calcium-phosphate extract, improves plant resistant to diseases,
general health through better access and strengthening of plant cell walls.
Banana squash Flower-fruit enducer. Good source of potassium.
papaya (BSP)
Silica extract Increases sunlight utilization of plant and rate of photosynthesis.
Neem pesticide A broad spectrum botanical pesticide.
extract
Beneficial pest Botanical plant extract, a natural pesticide plant extract derived from neem and
(Benpest) Gliricidia sepium plus BIM.
Kangkong natural Plant extract use to hasten plant growth and development
growth promotant
Vitaherb Fermented herb syrup
Farmer Healing and Supports healing, healthy immune function, radiant and vital skin
Moisturizing Salve
Lemon Grass Cooler Natural refreshing and cleansing drink

*This product is not intended to diagnose, treat, cure or prevent any disease.
**These statements have not been evaluated by Food and Drug Administration.

The company, as part of its commitment on informing other people on the importance
and different procedures of organic farming, also sell booklets. The following are the title
of the said booklets:

1. Indigenous Microorganisms: Grow Your Own Beneficial Indigenous Microoganisms and

Bionutrients in Natural Farming
2. Organic Intensive Mini-Farming
3. Basic Manual for a Small-scale Sustainable Food System
4. Sustainable Biointensive Mini-Farming
5. Natural Farming for Free-Range Chicken
6. Mushroom Culture
7. Culinary and Medicinal Herbs: Grow and Process Your Own
8. Selected Culinary and Medicinal Herbs
9. Organic Conversion
10. Philippine National Standards Specification for Organic Agriculture
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9.SOURCES

www.herbanafarm.com

Cortiguera, Joane Carla F. 2009. Market Potential of Vermicompost Produced in Laguna, 2008.
Undergraduate Agricultural Economics Thesis. DAE, CEM, UPLB

Sabado Jr, Rodolfo R. 2009. A study of the decision factors in organic vegetable farming in selected
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