NRT 2011: Vegetable Value Chain - NorMinVeggies in Mindanao
Vegetable Value Chain: The Case of NorMinVeggies in Mindanao EMITERIO F. SANSON, JR. Senior Banking & MF Specialist 11th RBAP-MABS National Roundtable May 24, 2011
• Includes a sequence of activities required to bring a product (or service) from its conception to its end use.• Players along Value Chain: input suppliers, producers, processors, and buyers. They are supported by a range of technical, business and financial service providers”
End Users/ Consumers Human InfrastructureResources Marketing Production Services Capital Inputs Equipment
A MARKET FACILITATOR linking the vegetable producers, organized into CLUSTERS, direct to the buyers. Non‐stock, not‐for‐proﬁt organizaIon organized by 15 vegetable producers in 1999. Now with 178 regular members, culIvaIng 350 hectares in Misamis Oriental and Bukidnon. Membership include: Individual growers, Small Farmers, Corporate Farms, Devt FoundaIon, NGOs, COOPs, Input & Service Providers (Seed Co.)
• 5800 farming households produce vegetables; • Supply more than 70MT/week of assorted vegetables to Visayas and Luzon; • Ship about 5MT weekly of assorted semi‐ temperate vegetables to insItuIonal buyers in Cebu
• Low producIvity • Inadequate logisIcal capabiliIes • Market and price risks • Lack of market linkage, informaIon & know‐how • Lack of farm to market roads • Fragmented farm and farming acIviIes • Lack of ﬁnancing How are these challenges to vegetable farmers addressed by the value chain approach?
NorMinVeggiesClustered Small Farmers (8 clusters; Independenttotal 90 growers)– 27 are micro loan Growers (5) borrowers of Bukidnon Coop Bank Supermarkets Local Market (Robinsons, Gaisano) Jollibee (bulb Onions)(bitter gourd, squash, (bell pepper, lettuces, eggplants, etc) brocoli)
Clustered Small Farmers & Independent Growers NorMinVeggiesJollibee Food Corp Supermarkets Local Markets
NorMinVeggies Clustered Small Farmers Independent(sweet corn, bell pepper, tomatoes) – Growers23 are micro loan borrowers of CBMOMetro Manila and Mindanao Local Visayas Local Supermarkets Markets Markets
Small Farmers & Independent Growers NorMinVeggies Traditional Market Mindanao Modern Market Traditional/Modern (supermarket, Markets –(wet market wholesaler/ Processors) retailer) Visayas & Luzon
• New farming technologies; • Access to packaging, warehousing, and cold chain services; • Price informaIon; • Improved access to ﬁnance; • Entry of produce into markets requiring volume and quality‐ fasboods, supermarkets, food processors, consolidators, hotels and restaurants.
Value chain management of NorMinVeggies is strong due to: Constant innovaIons; Enabling support from a technical assistance provider (GEM Project); increased parIcipaIon of small farmers in clustering their farm products; Capacity building linkages with micro level retailers Enabling technical assistance is key to gedng the iniIaIve going and strengthening the linkages along the value chain
A breakthrough in dynamic modern markets with small farmers parIcipaIng; SIll, factors limiIng plans to step up markeIng need to be addressed: Poor farm‐to‐market roads Weak credit linkage Establishing links with RBs has started to happen helping address lack of ﬁnance OpportuniIes for RB ﬁnancing along the value chain
A strategic approach to comply with“agri‐agra” law. CONTACT: Jun Sanson @ 0917‐807‐MABS Margie Roblezado @ GEM 0918‐804‐1085 Leo Eduria @ NorMinVeggies (088)8561678; 09209235371