Developing Sustainable Agro-Enterprise and Marketing For the Small Farmers in Mindanao This project is a logical follow up of the Philippine Farmers for Food project, financed by the EU (and parly Agriterra), which was implemented in 2010-2011, and in which PASAKA was, as a member organisation of KAMMPIL, one of the executing farmers organisations. The main objective of the PFF project was to improve production of food and cash crops, and to improve access to markets and businesses of farmers, so as to improve their incomes. The PFF project was positively evaluated. Also, PASAKA underwent a specific evaluation on business development capacities by the Pinoy Me Foundation in 2011. The conclusions of that evaluation were that PASAKA, being from origin more lobby oriented, has number of weaknesses, but it is worth trying to change the organisation, on basis of the results under the PFF project.

The present proposal builts on the experiences of the PFF project. Also, PASAKA wants to coach the clusters of two other provinces in Mindanao who were guided by KAMPPIL. Monitoring and evaluation on results, and coaching on strategies and project implementation will be done regularly by an external consultant, engaged by Agriterra, the former PFF project coordinator. The outcome of this monitoring and evaluation will be used by Agriterra in its decision to continue by the end of 2012 (and 2013).

Since 2003, PASAKA,Inc. had been a partner of Agriterra for a period of eight (8) years up to 2011. Agriterra had been supporting funds for organizational strengthening activities, agricultural development and advocacy  work on different issues affecting the coconut farming communities such as peace and order, environmental degradation, agrarian reform implementation, among others.  

From January 2010 to December 2011, the organization was recently facilitated by Agriterra through its national organization Kammpil on the Philippines’ Farmers for Food (PFF) program. In almost two years under the PFF, PASAKA managed to organize 25 commodity clusters exceeding the target of 20 clusters under the PFF project. Commodity clusters are composed of 20 to 35 farmer members including youth and women. The reported number of actual beneficiaries under PASAKA of Lanao del Norte province in the PFF is 400 and 2,000 indirect beneficiaries or a total final beneficiaries of 2400.

In the recently concluded PFF Final Evaluation in the last quarter of 2011, the commodity clusters established under PASAKAs’ supervision was evaluated as the most advanced and mature in all the other clusters organized by Kammpil under the PFF program not only in the area of integrated and diversified farming but also in terms of strong social capital, organizational cohesiveness and participation in local governance from the barangay to the provincial level. It was also observed in the final evaluation that the PASAKAs’ organized clusters are ready to shift into a higher level of Agro-Enterprise and Business Development.

The commodity clusters under PASAKA in the province of Lanao Del Norte nowadays are continuing what had been installed under the PFF program. The Commodity clusters are still functional. They conduct regular meetings, improved the operation of the Input Supply Centers, retrieval of livestock is still continuing under the livestock stewardship program, vegetables production and seed banking are continuously managed as a viable source of family food supply.

However, production and marketing is not yet well organized. Although there were some members who sell their products to the local market, the quality of produce is still not that competitive. Over-all, marketing was not collectively done throughout the 25 commodity clusters.

Moreover, the capacity assessment recently conducted by Pinoy Me Foundation shows that PASAKA as an organization is still very weak on business and marketing though it already started to engage different business activities long before 2007.  As advised by PinoyMe, PASAKA will now prioritize business for the federation to concentrate its activities of the selected ventures. The organization needs to engage various consultants to introduce value chain approach to the organization’s business as well as to the commodity clusters to improve its business performance and profitability. The consultants therefore are expected to provide feasible recommendations for improving productivity, income and growth in the key value chains through financing and sound technical assistance.

In addition, the clusters under the two (2) provinces of Misamis Occidental and Zamboanga del Sur organized under PFF by Kammpil were also continuing their effort with minimal activities after the project. They have the same situation with the clusters organized by PASAKA,Inc but they are slowly disintegrating because of lack of follow-up interventions. With the proximity of the 2 provinces, PASAKAs’ Council and the Provincial Councils of Misamis Occidental and Zamboanga del Sur have agreed to extend the PASAKAs’ project to the 2 provinces to further the initiatives of the PFF. 

In totality with the three provinces of Lanao del Norte, Misamis Occidental and Zamboanga del Sur combined beneficiaries, there are 1,276 small coconut farmers direct beneficiaries and final beneficiaries of 7,656 comprising the 55 clusters of whom 60% are women and 40% are men.

The main goal of this project is to increase the income of the small farmers and their commodity clusters organized under the Agriterra PFF program by collectively producing agricultural product with market demand and establishing various farmers’ agri-businesses to market value added products. Using the value chain approach, farmers will be able to enhance appropriate business skills in managing the selected business identified in the value chain, clarify its  role in the value chain, efficient production and supply management collectively, determine market demand, incubate businesses to test market and prove business profitability and expand businesses with market demand potential.

The secondary goal of this project is to improve the current agri-business practices of PASAKA through efficient production and marketing programs based on value chain approach and to institutionalize internal resource generation for operation’s sustainability in delivering support services to the commodity clusters of the three provincial federations.