Regional Conference on Organic

Agriculture in Asia
Bangkok, Thailand,
Thailand, 12-
12-15 December 2007

Country Case Study of the

PHILIPPINES

DR. GINA VILLEGAS-

VILLEGAS-PANGGA
Assistant Professor and University Researcher

Status of Organic Farming

• The organic sector is generally described
to be in its infancy stage.
• The Trade Industry estimates that only
<1% of total agriculture area adhere to
organic farming.
• As of 2005, the total land area under
organic management was 3,500 ha.
(Willer, Helga, and Yussefi, 2005).

2.

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• Domestic production is growing between
10-20%, but locally grown products are
limited in variety.
• The organic products grown in the
country include:
organic vegetables, rice, fresh banana,
asparagus, vinegar, coconut oil, banana chips,
yellow corn, muscovado sugar, mango,
papaya, poultry and poultry products, and
processed products (e.g., coffee, tea and
juice).

3.

• Organic vegetable production is

spreading in various provinces in the
country.
• Major commercial organic vegetable
production is concentrated in the
provinces surrounding Metro Manila such
as Cavite, Batangas, and Bulacan.

4.

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• Organic vegetable farms are also found
in the provinces of Benguet, Baguio,
Nueva Ecija, Tarlac, and Bukidnon.
• A total of 1,300 organic rice farming
practitioners (at least 47 organizations
both 100% organic and the LEISA
technology) in the country (PDAP, 2003).
x Since 1986, organic rice production has also
been growing significantly in the Philippines
(PhilDHRRA 2004).

5.

Development of the Organic

Agriculture Sector
• Philippine Organic Industry Technical Working
Group was founded in the late 1990s.
• In 2001, the 1st National Organic Congress
organized by the working group produced
multi-
multi-stakeholder action plans and launched
the Organic Certification Center of the
Philippines (OCCP).
• In the same year, the Secretary of
Agriculture created a national task force for
organic agriculture.

6.

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 It was only in April 2003 that the Guidelines
on the Accreditation of Certifying Bodies for
Organic Agriculture Standards were
approved.
• The Philippine National Standards
Specification (PNS) for Organic Agriculture
that was initially prepared by the Organic
Certification Center of the Philippines (OCCP)
and was adopted in July 2003 by the Dept of
Agriculture through the Bureau of Agriculture
and Fisheries Product Standards (BAFPS).

7.

In June 2004, the DA-

DA-
BAFPS initiated the
1st National Planning
Workshop for OA.
(Obj:
Obj: to assess and
update all
stakeholders and
participants on the
status of Organic
Industry.

8.

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• PNS Specification for OA have been prepared
for the purpose of providing a uniform approach
to the requirements, which is the basis of the
following:
x conversion to organic agriculture,
x crop and livestock production,
x processing,
x special products,
x labeling and
x consumer information.

These organic standards are based from the

Norms set by the IFOAM.
9.

Jan 10, 2005 – Creation of Philippine National

Organic Agriculture Board (Private Sector-led
agency which means stakeholders in the Organic
industry are empowered to participate in the
policy making and planning processes).

ƒ Four (4) House Bills in Congress authored by:

Congressmen Barinaga, Cajes, Syjuco and Zubiri.
ƒ Four (4) Senate Bills authored by Senators
Osmeña, Magsaysay, Villar and Estrada.

10.

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A policy “Promotion and Development of Organic
Agriculture in the Philippines”
Philippines” was drafted as
Executive Order in July 2005.

Signed by the President on 27th December

2005 as Executive Order 481.

The Dept of Agriculture has created an

Implementing Rules and Regulations (IRR) on
Organic Farming as an appendage to the EO
481…
481…

EO No. 481 – seeks to establish the

Philippines as an organic capital of Asia…
11.

Section 2 : The DA- National Organic

Agriculture Program (NOAP) shall
focus on, but not limited to:
a. Regulations and Guidelines
b. Certification and Accreditation
c. Market Promotion and Networking
d. Organic Information for Producers,
Handlers and Processors
e. Research, Development and Extension

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 The country’s organic sector covers the
different enterprises from:
Distribution
Processing of
Crop and Animal of Products to
Organic Products
Production Consumers
(organic
(organic farming) (trading and
processing)
marketing).

The products from organic farms and sold as organic

in the market have to be certified either from foreign
or a local certifying body.
body

Market Development
With its wealth of agricultural resources,
the Philippines is poised to ride the
global organic wave:

• Emphasis on wellness and responsible

consumerism, and
• The demand for natural and organic food
and health products grows worldwide.

14.

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 Domestic Market Potential of
Organic Products
In 2000, the Philippines’ organic industry was
estimated at Php 250 M. Of this total, the
domestic organic industry accounted for 40%
while 60 % for the imports of organic
products.
The same study estimated that the domestic
organic industry was expanding by
approximately 10-20%, but growth could be
further accelerated with the government
support.

15.

• It is estimated that the demand

for organic products in the country
will outpace local production.
• This is partly evidenced by results
of several studies which showed
that the market demand for
organic products is growing in
Metro Manila and in major urban
centers.

16.

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• This growth has been brought about by
the increase in awareness of
consumers:
a) in urban areas about the health
advantages of organic products over
chemically induced ones; and
b) the publicity regarding the negative
effects of synthetic chemicals on the
health of the general public and the
environment.

17.

• Though its true that it started as a niche

marketing activity (weekends organic markets
frequented by upper middle class and elite
shoppers), locally produced organic
products are now marketed in mainstream
supermarkets, or directly sold to hotels,
restaurants, food chains, OPTA organic
shops, churches, hospitals, private traders
and retail stores.

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• The bulk of the consumers of organic
products come from upper-class consumers
and the expatriate community who are
relatively well informed and aware of the
benefits of eating organic products.

Most Popular Organic Products in Domestic Market

• Brown rice, often referred to as whole rice- is
the whole grain with only its inedible outer hull
removed. Brown rice still retains its nutrient-rich
bran and germ.
• Virgin coconut oil – Naturally-processed oil from
fresh coconut meat (non-copra) or its derivative
(coconut milk and milk residue).
• Muscovado sugar – a type of unrefined sugar with
strong molasses flavor. It is also known as
Barbados or moist sugar.
• Banana
• Vinegar – Varieties of vinegar from bases are
fruit vinegars (papaya, banana), sukang iloko, coco
toddy or tuba, sugar palm, coco water and berries.

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Most Popular Organic Products in Domestic Market

• Chicken – organically raised or ‘free-range’

chicken are treated appropriately to their
nature and behavior.
• Organic salad greens – organic lettuce, organic
arugula
• Herbal teas – ampalaya (bitter melon tea),
banaba, lagundi
• Vegetables – carrot, chayote, green beans,
onions
• Wild honey – rich golden liquid is the miraculous
product of honey bees and a naturally delicious
alternative to white sugar

Most Popular Organic Products for

International Market

Exports of organic products included

muscovado sugar, green balangon
(bananas), banana chips, coconut
cooking oil, dessicated coconut, coconut
chips, virgin coconut oil and dried
banaba leaves.
Major export destinations were Japan,
Europe, United States, Canada,
Singapore, Australia, Korea and China.
Manila

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 The following are approaches by
producers/growers and traders to boost
the organic market:

1) Development of the organic market

by undertaking market studies and
market promotions.
2) Evaluates the demand for
organically produced and processed
products.
3) Aggressively educates the public
and potential market on organic
products.

Marketing Problems
The following are the major problems related to
marketing of locally produced organic
products:
1. Price sensitivity of the greater mass
of Filipino consumers. Given the organic
price, affordability becomes a major
consideration. Some organic products carry an
average price premium of 20-30% over
conventional products;

Source: Casino 1995; Arnaldo 1999; Fas/Usda 2000; Alfaro 2002;

Losano 2003; And Phildhrra 2004, Aragon, 2007):

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2. Organic vs Conventional Products.
Efforts made by various government
agencies to disseminate information on
the value and benefits in buying organic
products still remain insignificant
compared to the massive advertisements
on various inorganic products.
Many consumers still do not know the
locations and market day schedules of
different organic products.

3. Limited consumer education and

awareness of organic products due
to inadequate tri-media promotion
and advertisements.
4. Inability of individual organic
producers interested to export
their products to defray the
organic certification cost due to
limited funds.

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 Recommendations to Improve the
Market Prospects of Organic Products

1. Disseminate/advertise the locations

and the market day schedules of
organic markets through the
assistance of local government units
to guide consumers on where to buy
the organic products

Source: Aragon, 2007

2. Undertake a promotion support for each

generic organic product under a common
label/seal through mainstream media.
3. Various government agencies should
intensify their efforts in promoting the
many benefits from organic products
(through pro-active advertising and promotion
to boost awareness and purchases of these
products e.g., DOH for healthy living; DENR and
DA for eco-friendly production; and DTI for
fair-trade principle).

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4. Promote cooperative or collaborative
marketing.
The financial pressure arising from the
additional requirement of organic
certification especially for organic
products geared for the export market
highlights the importance of the
cooperative or collaborative marketing
approach for group certification.

Organic Agricultural Policy

• Thru the years, the enabling policies
towards the promotion and development
of organic farming has become more
coherent and integrated in a framework.
• More requirements to be done to sustain
gains from policies and programs initiated
and fully realize the benefits.

Source: FM Rañ
Rañola,
ola, 2007

30.

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Implications for Policy Actions

1. Policy Formulation and Advocacy

a) Good understanding of the process of
policy formulation given the roles of
Philippine legislators, lobbyists, and
committee members.
b) Organize nationwide partnership of
individuals and groups to develop
grassroot efforts to engage in policy
development processes specific to OA.

c) Organize coalitions and working groups to:

x Openly discuss and debate on
recommendations related to bills and acts
on organic farming at the House of
Congress;
x Build and/or strengthen present “Organic
Farmers Action Network” to keep them
informed about gov’t policy issues that
directly affect organic farmers; and
x Provide educational tools about how to
effectively get involved.

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2. Policy Research

Review the synthesis of existing policies with

regards to implementation, e.g.
determination of issues and constraints
related to:
• EO 481 Implementing Rules and Regulation
• Compliance with organic product standards
• Organic certification
• Labelling
• Simplication and harmonization of policies,
if ever,

Supporting Structures: Research,

Education and Extension

• Research, Development and Extension

(RD & E) in organic agriculture start
with the producer or farmer.
• RD & E must clearly take into account
the totality of the farming systems
where the farmer operates.

34.

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 Important stakeholders
and their roles
RD&E in organic agriculture is conducted
mainly by:
A. NGOs and POs - contributed on the
conduct of community studies, case
studies on OA and Sustainable
Agriculture experiences, farming
systems, and researches on agricultural
policies.
e.g. MASIPAG
35.

B. Research Institutions and Universities

(such as University of the Philippines at Los
Baños, Benguet State University, Xavier
University, Central Luzon State University)
ƒ Conducts basic and participatory action
researches
Private sector initiatives are channeled
through the academe.

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Basic and participatory action
researches focused :
(a) on household socio-economic
situation, and
(b) production systems such as
ecological pest management, bio-
organic fertilizers, development and
utilization of composts and the like.

The organic R&D provides opportunities

for researchers and research
institutions to work on some basic,
adaptive and applied researches in the
field of organic inputs like:
o inoculants,
o organic fertilizers,
o bio-pesticides,
o production systems,
o harvesting and post harvest technologies.
The results of these R&D will facilitate
development of sustainable enterprise for
local communities, especially those in the poor
rural areas.

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 C. Government (Agencies and Local
Government Units)
™ The R&D efforts are not necessarily
complying to the norms and standards of OA
but mostly to reduce the use of chemical
inputs and for the rehabilitation and
conservation of the natural resources.
PCARRD Philippine Organic Information Network
presented the results of research and development
activities on organic and organic-based agriculture
conducted by the National Agriculture and
Resources Research and Development Network for
the period 1995-2005.

™ The Philippine Coconut Authority (PCA)

Agricultural Research Management Department
reported the coconut farming status based
mainly to fertilizer and pesticide applications:
1. Rain-fed coconut crop production systems
a) Natural or traditional farming (of the total coconut
area 3.1 M ha, about 2M ha)
b) Organic farming (about 0.75 M ha, nationwide)
2. Usage of pesticides in coconut farms
The past and current applications of
commercial pesticides in coconut farms is
practically nil.

Source: S.S. Magat,

Magat, 2003

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RD & E Gaps and Requirements
A. For crop and animal production, the promotion of
organic farming lacks the solid biophysical,
technical and practical bases of a conversion
strategy.
x RD & E are needed to come up with appropriate crop
combinations, cost efficient production system that
would reduce risks and increase income per unit
output.
x RD & E are needed to come up with new production
technologies that will help the producer/farmer on
their conversions.

B. Research needs on Post harvest and

Processing
x Consumers often judge the quality of a
product by its appearance. Fresh organic
products do not look attractive as their
conventional counterparts.
x In the food processing industry,
replacement for refined sugar and
development of substitute sweeteners and
preservatives need major research.

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9 With growing population and
improving economy, the ORGANIC
SECTOR of the Philippines will
continue to play a vital role in
sustaining agricultural productivity
and stable food supply until the
next millennium.

In view of all these, there is a felt

need to push the promotion of
ORGANIC AGRICULTURE.

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