Linking Small Farmers to Markets

1
(No Transcript)
2
Linking Small Farmers to Markets
Brief Overview and Updates Where we are and its
link to ASEAN
3
LSFM context

• Small farmers and agricultural producers are
  unable to benefit from the price differential
  between farm gate and market price of their
  products
• They have very little opportunity in
  understanding the dynamics of the market, supply
  and demand conditions, economy of scale, etc.

3
4
poverty made worse by

• TRADE LIBERALIZATION (Unjust trade rules that
  prevent people from receiving a fair price for
  their goods competition from cheap imports
  price manipulation)
• CLIMATE CHANGE (Droughts, erosion and other
  environmental causes that threaten the land and
  water on which their farming depends)
• POOR INFRA, INVESTMENT IN AGRI (High cost of
  doing business in isolated areas where roads and
  communications are poor)

4
5

• Only very few NGOs have acted out as effective
  market facilitators and intermediators.
• AsiaDHRRA believes that markets have an important
  role in rural development and poverty alleviation
  in rural Southeast Asia.

5
6
strategic goal

• Thus, LSFMs strategic goal is to contribute to
  the reduction of rural poverty in Southeast Asia
  by empowering small farmers and producers to
  effectively engage the markets.

6
7
Five Components of LSFM
Policy Advocacy
Partnership Building
Market Intermediation Mechanism Strengthening Buil
ding
Capability-building
Market Research
8
Governments/ASEAN Other Asian International
Bodies
Policy Advocacy
Partnership Building
Market Research Mapping Marketing
initiatives Value Change Analysis Production
Capacity Inventory
Market Intermediation Mechanism Building Strengthe
ning
Formal Markets
Capability-building
NGOs
Small Farmers/ Producers Groups
Agricultural Commodities
Challenges
9
Selected Agricultural Commodities
Tea in Vietnam Free-range chicken in
Cambodia Calamansi in the Philippines
10
Researches and Studies Outputs

1. Map of CSO Marketing Initiatives in three (3)
   pilot countries
2. Value chain study of fresh calamansi fruit
   commodity, puree and powder
3. Value chain study of free-range native chicken
4. Value chain study of tea
5. Inventory of production capacities of selected
   small farmer organizations
6. Capacity-assessment of selected farmers
   organization

11
LSFM Training Workshops
A total of 137 farmer leaders, NGO staff and
advocates undertook training workshops at the
regional and national levels.

1. Regional Forum and Training Workshop entitled
   Making markets work for small farmers
   Understanding Marketing and Market
   Intermediation in Hanoi, Vietnam, June 7-9,
   2008.
2. Regional Training Workshop entitled Complying
   with Market Requirements on Food Safety and
   Product Quality, Siem Reap, Cambodia, January
   19-23, 2009.
3. Two National Training Workshops in Cambodia
4. One National Training Workshop in the Philippines
   entitled Achieving Economy of Scale Towards
   Successful Market Engagement

12
Partnership-Building

1. Creation of the Project Advisory Committee (PAC)
   at the regional level with the representation
   from the business sector, academe, NGOs and
   farmers organization.
2. Creation of National Project Advisory
   Group/Technical Working groups in 3 pilot
   countries.
3. Partnership with FAO, World Rural Forum
4. Mobilization of Agriculture Ministry/Departments,
   other government agencies at the local and
   national levels.

13
Policy Advocacy

1. Partnership with World Rural Forum in an advocacy
   for a UN declaration for an Internationl Day of
   Small Farmers/Small Holder Agriculture
2. Identified a policy paper for the support and
   protection of small holder agriculture/small
   farmers for food security and poverty reduction
   goals.

14
Market Intermediation Mechanisms
Identified and linked the following to act as
market intermediation mechanism in each of the
pilot country

1. CEDAC Natural Agriculture Product Shops and
   Country Bird Restaurants in Cambodia
2. Upland Marketing Foundation, Inc. in the
   Philippines and
3. VNFU as facilitator of Supply Contracts in
   Vietnam.

15
Challenges

• Most farmers relate with markets. Complete
  subsistence farming are very few.
• Most studies have pointed out that access of
  small farmers to markets are weak because (among
  others)

1. They have weak technical capacity
2. The are faced with extreme difficulties in
   comply w/standards
3. They are confronting with strict contract
   conditions
4. They lack the resources
5. They are exposed to additional risks.

16
Challenges
These weaknesses by small farmers are heightened
by

• The policies of privatization, liberalization and
  the creation of the WTO and the European Union in
  the 1980s to 2000s that triggered investments by
  food manufacturers and retailers.

• Simultaneously with the increased urbanization
  and the shift of consumer preferences.

17
Challenges
The results pushed small farmers into a more
disadvantaged position

• A tremendous increase in modern food processing
• Very tight competition
• Retail business became much more complicated
• Higher product quality and food safety
  requirements, now we have additional
  certification, labelling, traceability
  requirements
• Much higher production and marketing costs

18
Challenges
Access of small farmers to markets has further
weakened

• Buyers would prefer to establish a plantations
  for a certain agricultual product or deal only
  with large suppliers, aggregators, middlemen and
  traders,
• Than deal with small farmers because of issues of
  pole-vaulting, low product quality and very high
  costs related to dealing thousands of individual
  small farmers.

19
Challenges
The is therefore a need to support small farmers
at the ground level to achieved the following

1. Groups or cluster small farmers based on the
   agricultural product are formed so that they will
   be able to consolidate production at economic
   scale
2. Provision of specific agricultural extension and
   training to help small farmers produce better
   quality products and
3. Help them plan to achieve a synchronize
   production system to ensure that there is
   available supply and that delivery of a specific
   commodity is ensured periodically and regularly.

20
Association of Southeast Asian Nations Ten
nations, One community
21
ASEAN Secretariat
ASEAN Secretariat building inaugurated on 9 May
1981 Jakarta, Indonesia
22
ASEAN Member Countries Brunei DarussalamCambodia
IndonesiaLaosMalaysiaMyanmarPhilippinesSinga
poreThailandViet Nam
23
Area and Population
Country Land Population (million) 2006
Country (1000 Km2) Population (million) 2006
Brunei Darussalam 5.8 0.383
Cambodia 181 14.2
Indonesia 1,891 222
Lao PDR 237 5.75
Malaysia 330 26.6
Myanmar 677 57.2
Philippines 300 87.1
Singapore 0.7 4.48
Thailand 513 62.8
Viet Nam 329 84.2
24
Economic Performance
Country GDP per capita (in USD) 2006 GDP total (in billion USD) 2006
Brunei Darussalam 30,159 11.55
Cambodia 512 7.26
Indonesia 1,640 364
Lao PDR 613 3.52
Malaysia 5,890 156.9
Myanmar 208 11.95
Philippines 1,356 118.1
Singapore 29,500 132.3
Thailand 3,289 207
Viet Nam 724 61
25

• AGRICULTURE-based Countries
• Cambodia 33.1
• Lao PDR 50.2
• Myanmar 42.9

26
Goals of ASEAN

• To accelerate the economic growth, social
  progress and cultural development in the region
  through joint endeavors and
• To promote regional peace and stability through
  abiding respect for justice and the rule of law.

26
27
ASEAN VISION 2020(1997)

• A concert of Southeast Asian nations, outward
  looking, living in peace, stability and
  prosperity, bonded together in partnership in
  dynamic development and in a community of caring
  societies.

27
28
as civil society, we need to know our agenda...

• What is ASEAN?
• What is our take on the ASEAN as an institution?
• How does it affect our lives and where is this
  taking us?
• Who are we?
• Why are we stakeholders in this?
• Whos interests do we represent?
• What do we want?
• What is our own vision of ASEAN?
• What do we want ASEAN to be?
• Where should our ASEAN take us?
• Where do we then take ASEAN?

28
29
Dreaming for an Ideal Regionalism for ASEAN Key
Principles

• Cooperation and solidarity based on equity, peace
  and justice
• Peoples participation and empowerment in
  decision-making With concrete mechanisms for
  participation at different levels and components
• Accountability and transparency addressing the
  basic needs of the people
• Based on peoples control over and rights to
  productive resources
• Recognition of human rights and fundamental
  rights of basic sectors
• Principles of sustainable development
  inter-generational equity
• Sharing of appropriate and environmentally-friendl
  y technologies

29
30
an integration that is..

• Not just economic/trade political, social,
  cultural, environment
• Result of an endogenous process
• People must have a feeling of ownership over the
  regional integration process and governance
• Premised on the need for countries to give up
  some of their sovereignty and powers to the
  regional process/ structures of governance
• Fundamental principles of civil society
  engagement with governments should be the basis
  of engagement on regionalism

30
31
www.aseanfoundation.org
ASEAN Foundation 1997
32
Objectives of the ASEAN Foundation

• Promote greater awareness of ASEAN, and greater
  interaction among the peoples of ASEAN as well as
  their wider participation in ASEAN's activities
  inter alia through human resources development
  that will enable them to realize their full
  potential and capacity to contribute to progress
  of ASEAN Member States as productive and
  responsible members of society.

33
Objectives of the ASEAN Foundation

• Endeavour to contribute to the evolution of a
  development cooperation strategy that promotes
  mutual assistance, equitable economic
  development, and the alleviation of poverty.

34

• Farmers can overcome difficulties with
•  
• Knowledge
• Skills
• New technology
• Capital

35
Small producers often lack the knowledge they
need to identify new products or buyers in order
to compete.
  They need knowledge to make more informed
decisions about what to produce, when to produce
it, at what price, for whom and in what
quantities.
36
Small producers need help to ensure the quality
of their products, obtain loans, manage their
resources and ensure their operations are
efficient and profitable.   They need skills on
processing, quality control, packaging, marketing
and finance.
37
Simple, low-cost technology that adds value to
raw goods can dramatically improve the long-term
incomes of small producers.
Small producers need credit and capital to
sustain their operations
38

• ON-GOING AF PROJECTS
• Focus on Bridging Farmers to Markets
• Linking Small Farmers to Market
• Strengthening Capacity of Small Holder
  Aquaculture Farmers for Competitive and
  Sustainable Aquaculture
• Capacity Building on Supply Chain Management for
  Agribusiness SMEs in the Mekong Region

39
Thank You