Farmers Entrepreneurship Program:

Innovative Approach in Agro-enterprise

Development
Mr.Arnel M. Mapa
AE Facilitator-Leg. City
 Farming
+ Business

 Farming profitably
 Working with markets
 Capturing more “value” for small
farmers from value chains
Production Focus Value Chain Approach
(yields, surplus) (sales, income,
investment)
Improve participation in both traditional
and modern markets
Local Traders /
Unorganized Local Traders / Wet Market
Agents
Local Traders /
Growers Agents
Local Traders / (Wholesale)
Agents
Agents

Wet Market
Traditional (Retailers)
Markets
Organized Growers Consolidators
(for institutional buyers,
hotels, restaurants,
Formal Markets supermarkets)

Processors
(Fastfood chains)
Additional
Markets Supermarkets
 How do we get farmers included in
formal (higher value) markets ?
Change in mindset
(production focused > market orientation)
Organizing farmers for business
(individual > collective marketing;
with business partnerships)
Building knowledge, skills attitudes for
agroenterprise
Partners to help create the supporting environment
(technology, infra gaps, capital, trainings)
Clustering Approach (A Farmers’ Journey)
8
Sustained
Enterprises

1
7
Site Selection,
Test Marketing Partnership Building
and Formation of
Social (Democratic Working Group
Group Management)

Production
6 & NRM 2
(Competitive & Sustained Financial Product Supply
Production/Product Supply) (Savings, Credit, Assessment and
Supply Organizing Investment) Product Selection

Innovation
(Technology access & Marketing
adoption to increase (Market Engagement
competitiveness) & Business
5 Relationship) 3

Business Planning Market Chain Study FIVE

and Mobilization
SKILL
4
SET
Cluster
Organization
Critical first step:
Formation of the Site Working Group (SWG)
Academe Mayor or Rep

Farmer leader MAO or AT

Farmer leader MFI/NGO

 The Clustering Approach
Highlight: The innovative method of organizing farmers
into small groups called “clusters” where the enabling
process for market preparedness & engagement takes
place.
MARKETS

SWG
Cluster
Leaders LGU/MFI/NGO/
Academe

Cluster Cluster Cluster Cluster

Leader Leader Leader Leader
 Producer organizing through
agroenterprise clustering approach
Agroenterprise Clustering
• Small groups as product supply units
• 5-15 farmers per unit
• Training:
• New Knowledge
• Skills
• Values
• Business organizing and
• Competence enhancing market linkages
 Coffee consolidation through clusters

Local Roasters Monks Blend

Nestle’ Phil

Lantapan and
Magpet, Bagong Silang, Bagumbayan,
NORTH COTABATO BUKIDNON SULTAN KUDARAT
SWG
LGU, MFI, DA,
NGO, Academe

Cluster Cluster Cluster Cluster Cluster Cluster

Cluster Cluster Cluster Leader Leader
Leader Leader Leader Leader Leader Leader Leader

Barangay-Based Clusters
 October 23-24, 2012
Field Application on 2-day Action Planning TRAINING FLOW
Step 7 (Sept) Local partners work on
August 23-24, 2012 8 scaling –up (Sept-Dec
2-day training on
Sustained 2012)
Enterprises
Step 7 1
7 Site Selection,
Partnership Building
Field Application Test Marketing
and Formation of
Working Group
on Step 6
(July) February 28-
June 27- 29, Mar 1
6 2
29/Jul 2- Product Supply 2012
Production/Product Assessment and
4,, 2012 Supply Organizing Product Selection 3-day
2-day training on
training Clustering
on Step 6 steps 1-3
5 3
Business Planning
Market Chain Study
and Mobilization

Field Application on 4
Cluster Organization
Steps 4 & 5 Field Application on Steps 1-
(May-June) 3 (March-Apr)
May 29-30, 2012
2-day training on Clustering step 4 & 5
 Field Application Outputs
AE Training 1: Steps 1, 2, 3
 Site Working Group with MOU
 Basic clusters formed
 Farmer Profile
 Local research team
 Product supply assessment
 Market chain study
 SWOT – Supply & Market
 Business objective
AE Training 4: Step 7
• Test marketing
• Test marketing assessment
• Adjustments in the business
plan
AE Training 2: Steps 4 & 5
• Cluster organization
• Cluster agreement
• Business plan
• Business implementation
schedule
AE Training 3: Step 6
• Production targets and
delivery calendar
• Product quality management
guides (prodn & postharvest)
• Financing & BDS
AE Training 5: Step 8
Scaling UP
 FE Program Framework
Initiation Sustaining Scaling Up
Introduction of Agro-Enterprise Farmers continue their delivery Farmers expanding to other
Facilitation for farmers to do Test to the new market perfecting the markets and/or helping form new
Marketing with a new market process along the way farmer clusters

Requires a lead institution with Requires SWG members

Requires an active multi-sectoral transforming their practices and
SWG Coordinator who can build SWG so that all the component
the capacity of the SWG members structures to regularly and
assistance are provided systematically provided
along the way
component assistance to farmers

MFI providing funds for project
MFIs providing competitive loan
administration and initial working
packages to farmers
capital
MFI as not just lending money
(micro finance) but building micro
enterprise (making their client as
entrepreneurs

LGU inclusion in the annual LGUs organizing Agri office to

LGU allocating full-time staff to
program plan, staffing and budget spread the program to more
the project and funds for activities
for the project farmers
CRS Program Development Framework

Scaling Up
Initiation Sustaining
 Common Challenges
Sustaining Scaling Up
Initiation

Competitive producers (yield,

costs, farm mgmt)
Technologies for farm
production & mgmt
improvements
Capital to improve production
through financing & smart
subsidies
Basic infra – road, water
Understanding of markets,
market links
Cluster formation – core group
Leadership in the SWG
(functional: private & public)
Common Challenges

Initiation Sustaining Scaling Up

Consistency of quality &

supply regularity
Tech support – address
problems & upgrade prodn;
PH & logistics
Value chain financing –
logistics, marketing fund
Infra – consolidation
More stable market
relationship (formal)
Cluster strengthening –
business & mktg mgmt
Coordination of SWG support
Common Challenges

Initiation Sustaining Scaling Up

Value addition & new

products
Tech support – business
operating system, mgmt info
Value chain financing –
investment in facilities
Infra - value addition
Market outlet dev & business
partnerships
Organizational capital
Organizational discipline
SWG as local resource group
- institutionalized
 Common Challenges

Initiation Sustaining Scaling Up

Farmers are good Farmers can ensure Farmers can

producers – more consistent develop several
They have quality and regular value chains as
something good deliveries of a opportunities arise
and competitive to product
offer to the market
BUSINESS
MORE STABLE COOPERATION OR
MARKET LINKS MARKETS PARTNERSHIPS
 Insight – Linking Farmers to Markets
(Agroenterprise)

Key Factors
Starting points – farm location, crops & FORMAL
their market potentials MARKETS
Farmer orientation to AE & organizing for
business INTERMEDIARY
Access to technologies (production and CONSOLIDATORS
postharvest)
Access to R & D (for innovations and INFORMAL
competitiveness) MARKETS
Access to critical infrastructure (road,
water, transport, consolidation, etc)
SWG
Access to trainings Partnership of
Access to business/market information Stakeholders
and advice
 The clustering approach is only a “road
map.” There is no substitute for the farmers,
and the SWG guiding them, in going through
the journey. There will be opportunities as
well as challenges in the way.

What will matter is we apply the

clustering approach with a lot of
practical thinking and hard work!
Thank You