Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City, Philippines

CASSAVA ENTERPRISE IN BUKIDNON

AADCAADCMINDANAOMINDANAO

Agri-Aqua Development Coalition (AADC) is a coalition of grassroots-based organizations pursuing a vision of creating sustainable rural communities. It has 13 local coalitions with current membership base of 164 primary POs and 4 Federations spread in six provinces of Mindanao.

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

Rural Context:What’s Wrong in Agriculture?

• Under-productivity Average farm yields for major crops way below the

Asian standards and average growth rate of agricultural gross value added (GVA) among the lowest in Asia, higher only than Bangladesh.

Agricultural producers are not motivated to produce more because they do not get their due share of the final value of their products.

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

Rural Context:What’s Wrong in Agriculture?

• Over-centralization of agricultural development planning

Only personnel are devolved but funds are still very much under the control of the central DA office

LGU’s and PO’s who know what the problems are not part of decision-making, lacking in funds to make investments in productivity-enhancing enterprises

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

Rural Context:What’s Wrong in Agriculture?

• Static method in peasant organizing

Traditional approach is issue-based and focused on livelihood projects.

The need at present: transform farmers and fishers from producers to entrepreneurs and re-orient cooperatives to take on a business mindset and create community-based enterprises

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

CORE PROGRAM

Community Economic Development

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

Community Economic Development

• is the interplay of key stakeholders (government, private sector and civil society organizations) mobilized through effective and efficient use of resources (human, natural and financial) towards economic growth, with equity and food sufficiency including environmental protection

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

ENTERPRISE DEVELOPMENT

Heart of CED is. . .Heart of CED is. . .

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

Roles of Stakeholders• Household members – production units• Lead cooperatives – consolidator and marketing• Local coalition – mobilize/orchestrate PO members

for participation, advocacy and enterprise complementation

• Government – extension services, policy and infrastructure support

• Private Sector – market, technology and financing• AADC Secretariat – business development services

through community enterprise organizing supported by CCODP, Geneva Global and other funding donors

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

Cassava Chips and GranulesCassava Chips and GranulesProduction and MarketingProduction and Marketing

EnterprisesEnterprises

PILOT COMMUNITY ENTERPRISEPILOT COMMUNITY ENTERPRISE

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

Cassava Chips and Granules Production Cassava Chips and Granules Production and Marketing Enterprisesand Marketing Enterprises

Lead OrganizationLead OrganizationBalugo Farmers Multi-Purpose Cooperative

POs InvolvedPOs InvolvedSatellite Associations/Coperatives - 41

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

Production Area Coverage

Current Production Area1,400 – 1,700 hectares in16 municipalities and

2 cities of Bukidnon

Involving 832 small farmers

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

Market Demand and ProfitabilityMarket

SAN MIGUEL CORPORATIONProduct Demand

500,000 hectares Current Target Supply

100,000 hectaresServed Supply

31,000 hectares

Average Income per HectareP60,000-P140,000/hectare

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

Technology and Labor

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City

• Application of environment friendly crop production technology - - -Bio-Dynamics Farming

Technology• Low-cost production inputs•Involving landless farmers as labor

force in cassava chipping

Competitive Edge

• EFFICIENCY

• QUALITY PRODUCT

• VOLUME

• LARGE AREA OF EXPANSION

Linking Small Farmers to Market 3rd Regional Training Workshop June 30, 2009, Cagayan de Oro City