0% found this document useful (0 votes)
67 views30 pages

Marketing Practices For Selected Organically-Grown Vegetables in A Farming Community of Southern Luzon, Philippines

The document examines the marketing practices for organically grown vegetables in Baras, Rizal, Philippines. It finds that the system of producing organic vegetables can be considered market-oriented but lacks volume due to the absence of steady markets. There is high potential demand but also low consumer awareness. While farmers have good knowledge of organic practices, traders have low awareness of proper handling needed to preserve the organic quality.

Uploaded by

ronalit malintad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
67 views30 pages

Marketing Practices For Selected Organically-Grown Vegetables in A Farming Community of Southern Luzon, Philippines

The document examines the marketing practices for organically grown vegetables in Baras, Rizal, Philippines. It finds that the system of producing organic vegetables can be considered market-oriented but lacks volume due to the absence of steady markets. There is high potential demand but also low consumer awareness. While farmers have good knowledge of organic practices, traders have low awareness of proper handling needed to preserve the organic quality.

Uploaded by

ronalit malintad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 30

Vol. 6 No.

2 December 2010 ISSN: 2094-1064 Liceo Journal of Higher Education Research


CHED Accredited
Liceo JournalResearch Journal,
of Higher Category B doi:
Education Business and Policy Section
Research

Marketing Practices for Selected


Organically-Grown Vegetables in a Farming
Community of Southern Luzon,Philippines
JULIETA A. DE LOS REYES
[email protected]
University of the Philippines - Los Baños, Laguna

Plagiarism Detection: Passed


Final Revision Complied: June 11, 2010 License No. 944146510808541
Original: 99.81%

Abstract -The paper examined the marketing practices


for selected organically-grown vegetables in Baras, Rizal and
determined their implications for sustained food safety and
marketability. Key informant interviews were conducted and
primary data were collected through personal interviews of
all the members of the KAKASA cooperative in Baras, Rizal.
Personal observation of the marketplace was also done. Pre-
tested questionnaires were used during data collection. The
study revealed that: the system of producing organic
vegetables in Baras, Rizal can be considered leaning more
towards market- orientation but still lacking in volume due to
absence of steady market; due to low level of consumer

knowledge regarding
at all; there is high market potential for organic vegetables
grown in Baras, Rizal; and there is a high level of knowledge
on organic farming among the farmer-respondents but there
is low level of awareness on proper handling of organic
products among the traders. There is therefore, a greater
tendency for the marketing system not to preserve the

organic vegetables,

1
Marketing Practices for Selected Organically-
GrownVegetables in a Farming Community of Southern J.A. de los
Luzon, Philippines Reyes

Keywords - organic farming, chemical-free, market-


oriented, value-addition, minimal processing, clustering

INTRODUCTION

It is common knowledge that the use of chemical fertilizers and


pesticides has been acutely abused by the farmers for want of a better
yield that could lead to higher income. Even after harvest, incidences
of formaldehyde soaking to prolong freshness have been repeatedly
reported for vegetables, more frequently for eggplant. In the
meantime, these chemicals have been known to leave harmful effects
in the body such that efforts to reduce their use in food production
have been going on for quite some time now. In fact, the use of
organic fertilizers as yield enhancers has already taken off and is now
slowly inching its way toward popularization among farmers. Aside
from organic fertilizers, organic pesticides as well as insecticides are
also slowly being made known to the farmers. The ultimate goal is
for the farmers to go completely organic in their vegetable
production systems.
In consonance with this, the municipal local government of
Baras, Rizal envisioned the town to be known for growing organic
vegetables. In fact, a policy pronouncement that Baras, Rizal will be
the first organic town in the Philippines has already been issued by
the municipal mayor. Also, in support of this, the farmers formed a
cooperative called KAKASA (Kasamahan sa Kalikasang Pagsasaka)
and all the members are one in deciding that they will be full-fledged
organic vegetable growers. They are confident that they can be
partners of the LGU in promoting Baras as the first organic town in
the Philippines.
At present, many farmers in the area are already engaged in
organic cultivation of “pinakbet” vegetables. A number of farmers
take advantage of the rich soils of the Laguna Lake shore for planting
okra, eggplant, string beans, bittergourd, squash and more. Some
of them plant the same in the hilly portions of the town and as an
alternative to chemical fertilizers they concoct organic fertilizers out
of varied fermented plant juices (FPJ). Similarly, they use fermented
juices of “luyang dilaw,” “siling labuyo” and other spices as
Liceo Journal of Higher Education
Research
pesticides
and insecticides.
It is interesting to note however, that although there are local
executive initiatives and a cooperative has already been formed, still
the level of organic farming adoption has so much left to be desired
for and this is due to a number of reasons. One is the fact that unlike
the conventional way of cultivation, the yield in organic farming is
significantly lower especially during the first few months of the shift
in the system of cultivation. Another reason is the lack of steady
market which is caused by inadequate consumer awareness on the
benefits of consuming organic vegetables. While the number of
consumers who are already well aware of the positive attributes of
organic vegetables is increasing, the issue of certified or true to form
organic stuff becomes apparent. Still another important concern is the
issue of sustaining the safety of these foods and proper handling and
distribution come into the fore because to be truly organic, handling
of this type of vegetables should also be different from the
conventional ones. Otherwise, it will be useless for vegetables to be
grown organically if such care and maintenance will not be
sustained all throughout the marketing channel where these
vegetables pass until they reach the final consumers. The problem
therefore of sustaining the food safety of these organic vegetables
must be addressed at the institutional level considering that the town
is envisioned as the first organic town in the Philippines. In the same
manner, marketability must be ensured to keep the incentives to the
current farmers and to encourage those who are still hesitant.

OBJECTIVES

The general objective of the study was to evaluate the marketing


practices for selected organically-grown vegetables in Baras, Rizal
and relate these to the ability of the marketing system to sustain food
safety. Specifically, it sought to:

1. present an overview of the marketing system for organically-


grown vegetables in the selected study area;
2. determine the implications for food safety of the knowledge,
attitude and practice of the farmers;
3. identify the problems encountered in the selling of organically-
grown vegetables; and
4. come up with recommendations and suggest plans of action for
improvement of the current situation.

METHODOLOGY

The study made use of the descriptive type of analysis, which


involved the use of frequency tables and computation of means or
averages. The flow of the product was traced to determine the market
channels. The knowledge, attitude and practices (KAP) of farmers
and traders regarding the handling of organically-grown vegetables
were determined using pre-identified indicators.
Primary data were collected through personal interviews of all
the members of the KAKASA cooperative in Baras, Rizal who were
growing organic vegetables at the time of the interview. Pre-tested
questionnaires were used during data collection. Restaurant and
resort owners in the vicinity of Rizal were also formally consulted
regarding their willingness to buy organic vegetables. Key informant
interviews were also conducted with the mayor, farmer leaders,
officers of the cooperative, municipal administrator and other key
personnel as the respondents.

RESULTS AND DISCUSSION

The Marketing System

Marketing Practices

The organic vegetables farmers interviewed performed the


following marketing activities: washing/cleaning, sorting/grading,
packaging and labeling (Table 1).

Washing/Cleaning

Washing and cleaning are frequently done for leafy vegetables


like pechay and mustard because they are in direct contact with the
soil. However, other vegetables such as eggplants are also washed.
Frequently, tap water is used to wash the freshly harvested organic
produce but only one farmer-respondent washed his organic
vegetables.

Sorting and Grading

Sorting and grading are performed for okra, bitter gourd, squash
and eggplant. Seven or 35 percent of the interviewed farmers
performed sorting/grading based on size, length, extent of visible
damage, shape and color (Table 2). For okra, two kinds are being
produced: the “baby” okra and the regular ones. The “baby” okra is
smaller or shorter and is harvested, at the most, when already two
inches long. Many health-conscious consumers prefer this type
because it is more succulent and can be eaten raw to take advantage
of more fiber. Along with color, size is also considered in sorting and
grading squash and corn. For string beans and bitter gourd, the more
important considerations are length but bitter gourd has an
additional requirement of being evenly- shaped and fairly straight.
Surprisingly, while it is to be expected that organically-grown
vegetables are more prone to insect damages because no chemical
inputs are applied, still the preference is for them to have less visible
fruit and leaf damages.

Table 1. Marketing practices of 20 farmer-respondents,


Baras, Rizal

MARKETING PRACTICES NUMBER REPORTING PERCENTAGE


Washing/Cleaning 1 5
Sorting/Grading 7 35
Packing/Packaging 20 100
Labeling 2 10

* Multiple responses
Table 2. Basis for grading, 7 organic farmer-respondents who are
sorting/grading their vegetables, Baras, Rizal.

BASIS FOR GRADING NUMBER REPORTING PERCENTAGE


Length 6 86
Size 7 100
Color 2 28
Damage 3 43
Shape 3 43

* Multiple responses

Packing/Packaging

Packaging or more appropriately packing is done to facilitate


transportation and handling of vegetables. All of the farmer-
respondents performed this practice using anyone of the following:
small baskets, kaings, banana leaves and polyethylene bags. Ordinary
okras are packed by the hundreds while baby okras are packed on a
per kilo basis. Small baskets are more frequently used for baby okras
with each basket containing around one kilogram. A basket costs
P10-15 each. One-kilogram capacity kaings are also used as packaging
material. They are cheaper than the baskets at only P10 each.
Sometimes vegetables are also packed in banana leaves but it is true
only when the produce is marketed within the vicinity of the
municipal hall. For long distance deliveries such as those sold to the
Organic Producers and Traders Association (OPTA), polyethylene
cling wrappers are utilized on packs of a kilogram of okra. Big
polyethylene bags, with capacities of around two to four kilograms,
are then used to contain the small packs of produce.
Labeling

Labeling is the putting of some sort of identification for the


packed products. This is particularly important for those which were
consolidated and marketed elsewhere other than in the local market
in Baras (e.g. those to be sold through the OPTA). Labeling practiced
however, is as crude as writing the name of the farmer-owner on the
polyethylene bags using marking pens (e.g. Pentel pens). Only two
farmers claimed to have been doing this practice.

Production and Disposal

Organic vegetable growing is a relatively phenomenon in Baras,


Rizal although the local leadership has already signified through a
municipal ordinance its intent of making Baras, Rizal the first organic
town in the Philippines. In fact, Table 3 would show that on the
average, a total of only 7,690 kilograms of various types of organic
vegetables were produced in Baras during the last harvest season, of
which an average of 91 percent was sold in different market outlets
inside and outside of the municipality. The highest percentage of
volume sold was obtained for tomato and patola at 99 percent each
(average of 208 and 371 kgs for 2 and 3 farmers, respectively) while
the lowest was for okra at 83 percent (average of 94 kgs for 5
farmers). The average amount given away was almost 4 percent
equivalent to an average of almost 8 kilograms for seven farmers. On
the other hand, the amount used at home was 1.55 percent (average
of 7.17 kgs for all farmers) while the marketing losses reached 3.38
percent (average of
9.14 kgs for all the farmers).
Eggplants were found to be the most widely grown vegetable
type with nine respondents reporting. On the average, a total of
307 kilograms of eggplants per farmer were produced with one
farmer harvesting as low as 8 kilograms and another one as high as
1,083 kilograms. Bitter gourd ranked second with seven respondents
reporting. One farmer was able to produce a total of 1,075 kilograms
of bitter gourd although there was one fresh starter who produced
only 15 kilograms. Okra followed with five respondents reporting.
One okra producer was not able to sell his produce but the volume
sold of another farmer reached as much as 250 kilograms from the
total production of 282 kilograms. The volume sold then was
computed to be 94 kilograms (83%). Squash production reached a
maximum of 440 kilograms but the smallest producer had only 88
kilograms for an average of 228 kilograms per producer. Of this
average, 212 kilograms (93%) were sold, 9 kilograms (4%) were
given away, 1 kilogram (1%)
was used at home, and 7 kilograms (3%) were lost during marketing.

Table 3. Production and disposal, by type of vegetables produced,


20 farmer-respondents, Baras, Rizal

* Less than one percent


** Multiple crops per farmer

Outlets

Table 4 shows the outlets for different organic vegetables grown


in the area. All the six types of vegetables were more popularly sold
direct to the consumers or the market place where the farmers did the
selling process themselves. Only bitter gourd, okra and patola were
occasionally marketed through the cooperative (KAKASA) which
eventually sold to OPTA. On the other hand, eggplant, bitter gourd,
and tomato passed through the traders.

Table 4. Outlets by type of vegetable marketed,


20 farmer-respondents, Baras, Rizal.

Furthermore, the most popular reason why an outlet is chosen is


the “suki” (regular buyer) system with 70 percent of the respondents
reporting. This is not surprising since the Filipinos are inherently
hospitable and fond of harboring long lasting friendly relationships.
Considering this, the want for a higher price for their product was
found to be only of secondary importance to 45 percent of the farmer-
respondents. Thirty percent (6) were credit-tied with their markets
(Table 5).

Table 5. Reasons for choice of market outlet,


20 farmer-respondents, Baras, Rizal

REASON FREQUENCY PERCENTAGE


Credit-Marketing Tie-Up 6 30
Regular Buyer (Suki) 14 70
Accessibility 5 25
High Price 9 45
Others 6 30

Mode of Sale

Half of the farmer-respondents delivered their produce to their


intended markets. Only 5 (25%) sold on picked-up basis and only one
resorted to both modes of selling. There were four farmers who did
not respond to this question (Table 6).
For those delivered, the usual market outlets were the retailers in
Baras public market. The tricycle is the usual mode of transport
because the market is relatively near. In this case, the farmers
shouldered the fare of P10-15 per trip depending on the volume
transported. Products that were picked up were sold to traders who
paid the cost of transportation.

Table 6. Mode of sale, 20 organic farmer-respondents,


Baras, Rizal

MODE FREQUENCY PERCENTAGE


Delivered 10 50
Picked-Up 5 25
Combination 1 5
No Answer 4 20

Prices Received

The average selling prices for the sold organic vegetables are
shown in Table 7. Inconsistency in pricing was observed in the cases
of bitter gourd and patola since their delivered prices were much
lower than the picked-up price. Economic theory indicates that the
price of the delivered produce should be higher by the cost of
transportation between the two markets. However, when bitter gourd
was picked up, the farmer was paid P50/kg but when it was
delivered, the farmers received an average of only P35.40/kg.
Similarly, the picked-up patola commanded a higher price of
P20/piece while the delivered ones were paid only P6/kg.
Although their behavior would seem irrational, the lack of steady
market forced the farmers to bring their own produce to the target
market and offer them even at lower prices. For them, it is better to
recoup a little amount rather than nothing at all. In contrast, picked-
up produce were highly demanded at the time hence the farmers
were paid a higher price by the traders.

Table 7. Average selling price by mode of sale and by type


of vegetable, Baras, Rizal

VEGETABLE TYPE PICKED-UP DELIVERED

Eggplant (P/kg) 20.6 21.25

Bitter gourd (P/kg) 50 35.40

Okra (P/kg) - 14.80

Squash (P/kg) - 15

Tomato (P/kg) 20 -

Patola (P/piece) 20 6
Marketing Channel

The marketing channel for organic vegetables grown in Baras,


Rizal is quite short. Table 8 shows the four channels that can be
traced within the area. Direct marketing to consumers was the most
widely practiced selling option. This is being done by 9 (45%) farmer-
respondents, the usual targets of which are the Baras municipal
employees every Tuesday. During Saturdays on the other hand, and
during peak harvest period, the farmers take advantage of the market
day when they are allowed by the Municipality to set up selling
tables in a strategic area in the market. Such place has been
designated as their regular market day stall to enable the consumers
to develop the habit of buying their organic vegetables from the same
place. Six farmer- respondents with an equivalent of 30 percent of the
total volume sold their produce to the OPTA through the KAKASA,
their cooperative. The OPTA on the other hand, sold to the retailers
or the institutional buyers. Four farmers each sold to the retailers and
to the wholesalers and this is usually done during the off-market
days.

Table 8. Marketing channels for organic vegetables


grown in Baras, Rizal

The Traders

Only four traders were traced as market outlets for the organic
vegetables of the farmer-respondents. This is to be expected since as
shown previously, only 40 percent of them sold through the traders.
All of the traders sourced their organic produce from the farmers
and paid the latter cash for the main reason that they are their “suki.”
All of them sold to direct consumers but there was one who sold to a
trader as well.
The sampled traders distributed only four of the six vegetable
types considered in this study. It can be seen in Table 9 that the
traders had the highest margin of P12.50 per kilogram for bitter
gourd, which resulted from the buying price of P50.00/kg and selling
price of P62.50/ kg. For eggplant, okra, and tomato, the traders
imposed a margin of P5.00/kg.

Table 9. Prices paid and received by type of vegetable,


4 traders, Baras, Rizal

Knowledge, Attitude and Practice

The knowledge, attitude and practice of the farmers and the


traders would more or less reveal the possible chemical state of the
produce as they change hands from one channel participant to
another until they reach the final consumers. Correct knowledge and
practice as well as possession of proper knowledge are therefore a
must for handlers of organically-grown vegetables.
To have an idea of their knowledge, attitude and practice
regarding organic vegetables marketing/handling, the farmer-
respondents and the traders were asked whether they would agree or
disagree on several leading questions. The questions were translated
into Filipino to facilitate better understanding between the
enumerator and the respondents. Table 10 shows the average ratio of
the correct answers to the total number of questions asked from the
20 farmer-respondents and the four trader-respondents.
Farmer-Respondents

Results indicate that the interviewed organic farmers have


relatively good knowledge when it comes to the proper handling
of their organic vegetables as shown by an overall average ratio
of 0.85. All of them know that Formalin (formaldehyde) is a health
hazard and therefore should not be used to prolong the shelf life of
organic vegetables. This is evidenced by the 1.00 ratio obtained for
questions pertaining to the use of Formalin. The lowest ratio was
obtained for the question referring to the use of old newspapers as
packaging material or liners for packing organic vegetables with a
computed average ratio of only 0.55. This may have been brought
about by the fact that many of the respondents do not know that the
ink used in printing the newspapers also contains chemicals that may
contaminate the organic vegetables. Another important aspect is the
relatively lower ratio obtained for Question 3 (0.70), which pertains to
the putting together of organic and non-organic vegetables while on
display on selling stalls. A few of the farmer-respondents believe that
putting these two types of vegetables side by side cannot cause any
residue contamination to the organic vegetables, which in the strictest
sense is not true. All of them also believed that organic vegetables
should be duly certified by an authorized agency because many of
the potential consumers are wary that what they are selling are not
truly organically-grown. Proper certification according to them will
help a lot in convincing the consumers to go organic as this would
justify the premium in price that they are charging.
When it comes to premium pricing, it is surprising to note that
still there are a few farmers who do not agree to charging a higher
price for their organic products. This may have been an offshoot of
the lack of regular markets making it difficult for them to sell their
produce at regular price and doubly more so when charged for a
price higher than that prevailing in the market for conventional ones.
Table 10. Average ratio for knowledge, attitude and practice of 20
farmer-respondents and 4 traders, Baras, Rizal.

QUESTION NUMBER
FARMER-
ITEM REPONDENTS
TRADERS

Formalin is not hazardous to health in fact many


1 1.00 1.0
are using this to keep fruits and vegetables fresh

Organically-grown vegetables can be dipped into


2 1.00 1.0
Formalin solution to prolong their shelf life.

While on display on selling stalls, organic


3 vegetables can be put side by side with non- 0.70 0.0
organic ones.

Organic vegetables could be priced higher than


4 0.90 0.50
their non-organic counterparts.

Organically-grown vegetables should have less


5 0.80 0.50
visible fruits and leaf damages.

Sorting and grading of organically-grown


6 0.80 0.75
vegetables should be performed.

Organic vegetables should be duly certified by an


7 1.00 0.75
authorized body.

Organic vegetables should be carefully packaged


8 0.90 0.25
and properly labeled.

During storage, organic vegetables can be put in


9 0.85 1.0
the same storage unit as the non-organic ones.

Organic vegetables can be washed with water


10 0.85 0.50
from unknown source.

Old newspapers can be used as packaging 0.25


11 material for organic fruits and vegetables. 0.55

AVERAGE 0.85 0.60

Trader-Respondents

Unlike the farmer-respondents, the trader-respondents fared


poorly when it comes to their knowledge, attitude and practice
towards the marketing of organic vegetables. This is exemplified by
an average KAP ratio of only 0.60 out of a perfect ratio of 1.0 (Table
10). All the four traders obtained a perfect score for questions related
to the inappropriate use of Formalin to prolong the freshness of
organic vegetables. This may have been a positive result of the
frequent airing of the discovery of Formalin traces in foods especially
those from China. This in a way educated the people on the health
hazards posed by the use of Formalin.
On the other hand, all of them practiced the mixing of organic
vegetables with the conventionally-grown ones while on display
in retail stores. Three or 75 percent tended to favor the use of old
newspapers as wrapper for organic vegetables. In addition, the same
proportion thought that it is not necessary to package and label the
organic vegetables as packaging and labeling are labor intensive
and would entail additional costs. This attitude plus the fact that
they are putting organic vegetables side by side with chemically-
contaminated ones pose a problem in maintaining the safety of their
organic vegetables, which in a way can serve as a deterrent to the
more knowledgeable consumers.

Market Potential

Due to lack of more comprehensive and reliable primary data on


the demands and suppliers of organic vegetables in the institutional
markets within and around Baras, market potential of organic
vegetables was assessed based only on the results of the brief
interviews conducted with a few restaurants and resorts in the area
and on the key informant interviews and focus group discussions.

Resorts and Restaurants

All the sample restaurants interviewed showed positive interest


in buying organic vegetables produced in Baras, Rizal although only
one of them was able to experience offering organic vegetables as
part of their menu. The vegetables this restaurant used to offer were
the salad type and were delivered by the supplier already packed in
Styrofoam boxes covered with plastic cling wrapper. A pack also
contained salad dressing and was good for single consumption. The
price was pre-determined by the supplier and the owner merely
added some mark-up. She only stopped offering the product because
her supplier stopped producing organic salad vegetables because of
disease infestation during production. She however is still willing to
start serving organic salad vegetables if supply is assured because she
believes that her A and B markets will be more than willing to pay a
premium on healthy options such as organic vegetables. When asked
on the possibility of accepting supply of organic “pinakbet”
vegetables from Baras, the owner replied positively but added that it
should be conditioned on the assurance of steady supply. The same
willingness was reported by the resort owners who were
interviewed. They said that they are willing to include organic
vegetables in their menus, which of course will be priced higher than
the conventionally-grown crops.
Similarly, supermarket owners and operators are also very
willing to sell organic vegetables because of the recognized
increasing importance of organic vegetables in a healthy diet.
However, selling through the supermarkets would entail more
sophistication and training on the part of the farmers or the
marketing conduit in terms of minimally processing the vegetables,
sorting and mixing and packaging them, including the art of
displaying them on selling counters to attract more buyers. A more
pressing concern when marketing through this intermediary is the
fact that selling to them is normally on consignment basis and all that
the supermarket can provide is a space within the store where the
products can be displayed. The seller is required to provide the
personnel who will take care of displayed products and everything
that needs to be done in order to effect a sale. The store usually
imposes, at the minimum, 15 percent mark-up to the selling price
quoted by the seller. Payment by the supermarket for the sold
products takes as long as 30 days or more, thus would require large
amount of capital for the farmers.

Marketing Problems

A number of problems are being experienced by the farmers


while marketing their organic vegetables (Table 11). Based on the
interviews
conducted, the most common was the low and unstable price as
reported by 9 out of 14 farmers who encountered some marketing
problems. This problem stemmed out of the low level of awareness of
many of the consumers on the benefits from eating organic
vegetables instead of the conventionally-grown ones. Some do not
even have any knowledge on what organic vegetables are and how
they came to be called organic.
Majority of the organic vegetable farmers are expecting that their
produce will be given some sort of price premium so that they could
somehow recoup or offset the reduction in income due to the
decrease in yield relative to those plants applied with chemical
pesticides and fertilizers. It should be noted that a shift from chemical
to organic inputs reduces the yield per unit of cultivated land
especially during the initial stages of organic farming. Studies and
organic farming advocates however, claim that improvements in soil
conditions and eventually increase in productivity are achieved
within several years of continuous organic farming. In addition,
organic vegetables are also better in quality because they do not
contain chemicals that are considered hazardous to human health.

Table 11. Marketing problems encountered,


20 farmer-respondents, Baras, Rizal
NUMBER
PROBLEM
PERCENTAGE
REPORTING
Low and unstable price 9 45
High transportation cost 4 20
Poor farm-to-market roads 4 20
No steady market 3 15
Scrupulous traders 3 15
Lack of means of transportation 1 5
Consumers not yet familiar with organic vegetables 1 5
Lack of capital 1 5
Poor quality of produce 1 5
None 6 30

* Multiple responses
The second most widely experienced problems are high
transportation cost and poor farm-to-market roads (4 or 25% each).
The high transportation cost is not only a function of high cost of
fuel, it is also affected by the poor quality of the farm-to-market roads
resulting to high maintenance cost for delivery vehicles. Lack of
means of transportation is also a contributory factor especially for
those who are planting on the hilly portions of the municipality.
The lack of steady market and the presence of scrupulous traders
were the complaints of a total of eight farmers (4 or 20% each). This
was emphasized by the fact that the delivered vegetables were priced
lower than the picked-up ones as previously discussed. One farmer
each also complained of the following: consumers not being familiar
with organic vegetables, lack of capital and poor quality of produce.
The poor quality of the organic vegetables is gauged relative to the
visibility of insect damages and the seemingly stunted growth of the
produce especially for eggplants and okra.

CONCLUSIONS

Based on the results of the study, the system of producing organic


vegetables in Baras, Rizal is market-orientation but still lacking in
volume due to absence of steady market. This lack of production
volume is the primary reason why the farmers did not see the need
to perform post-harvest activities for their harvested crops. Also, the
channel of distribution of the organic vegetables is quite short and
there is a big possibility for direct marketing to establishments within
and around Baras, Rizal.
Due to low level of consumer knowledge regarding the benefits
derived from consuming organic vegetables, the farmers received
very little price premium or there is none at all. The most dominant
problem pressing the farmers is the low and unstable price for
organic produce. Even then, there is high market potential for
organic vegetables grown in Baras, Rizal. There is a high level of
knowledge on organic farming among the farmer-respondents but
there is low level of awareness on proper handling of organic
products among the traders.
POLICY IMPLICATIONS AND RECOMMENDATIONS

The above findings have some policy implications both at the


local and the national levels. For one, the job or the responsibility of
the LGU does not end with its issuance of policy pronouncement
declaring Baras, Rizal as the first organic town in the Philippines.
While this is a very important component of the enabling
environment to ensure the success of organic vegetable farming in
the area, provision of logistics and market support are also necessary
elements. For instance, there are areas of concern that only the LGU
can address more effectively and more efficiently also and at a faster
rate. In some cases, the LGU can be a very good partner of the
national government in promoting the welfare of all the organic
vegetable producers. In line with this, the following courses of action
are recommended:

1. Implement clustering in the production and marketing


processes Since they are producing “pinakbet” vegetables it will be
more manageable if the farmers will be clustered by type of
vegetable. Each cluster should be properly trained for organic
vegetable growing techniques. The idea is for each group to
specialize in the technology for the production of one crop and take
advantage of the economies of scale. Grouping should be done in
such a way that the farmers themselves would choose their own
groupmates and they would agree that they will help each other in
achieving efficiency in production and marketing. Towards this end,
the LGU should initiate the move to standardize the production
procedure for the FPJs as fertilizer, pesticide and insecticide.
Chemical analysis of these concoctions should be done by the experts
either from a university or from the Bureau of Plant Industry so that
application standards can be recommended for adoption by all the
organic farmers.
2. Encourage farmers to perform grading and standardization.
Grading and standardization will enable the farmers to maximize the
value of their produce. The low quality or the off-sized ones will of
course demand lower price but the better quality and larger ones can
command higher price in the market. At the same time, there is some
sort of classiness in the sorted and graded produce. Several studies
have proven the better income generating capacity of sorted and
graded produce.
3. Products should be properly packed and labeled. Since a
resolution declaring Baras as the first municipality in Rizal to go
organic farming, has already been passed, it is but appropriate that a
label for Baras products be carried and made known to the
consumers. This could be done through the use of proper label. A
nice and simple logo indicating KAKASA as the selling cooperative
and Baras as the host municipality would be most appropriate.
Products of individual farmers should be properly labeled also for
traceability. This move is in anticipation of the increase in
production as triggered by the development project being
implemented in cooperation with the KAKASA organic vegetables
farmers.
4. The KAKASA Cooperative should affirm its role as marketing
conduit for the organic vegetables farmers in Baras, Rizal. The
necessity to make KAKASA as marketing conduit/arm of the farmers
is supported by the target market outlets that do not want to deal
with individual farmers. This is more costly on their part particularly
in terms of time and effort and more particularly in the reliability of
quantity and quality of supply. Marketing through the cooperative
will also reduce the unit cost of transporting the products as the
volume loaded in the vehicle is maximized per trip made. In
addition, the KAKASA as a group will have more bargaining power
especially in terms of price determination since it will have a bigger
volume to enable them to lobby for a higher price.
5. Conduct of consumer awareness campaigns. While the
restaurants and resort owners are very willing to accommodate
suppliers of organic vegetables, they claim that they would need
extra help in educating the consumers so that their sales of organic
vegetables can be enhanced. Colorful posters with easily remembered
slogans or logos and flyers in their establishments would help a lot in
consumer education. Audio and video presentations during trade
fairs could also help a lot. Another option is the song-writing and
slogan writing contests which can be held among all the schools in
the town and the winning entrees can be aired at the Radyo DZLB
and other similar radio stations. The municipality can take care of
these as part of their advocacy campaign for organic farming.
6. The municipality should facilitate the putting up of an
institutionalized certification process along with a duly authorized
certification body for organic vegetables in the area. This will help a
lot in the marketing of organic vegetables grown in Baras, Rizal since
the growing number of health conscious consumers can be assured of
truly organically-grown vegetables from Baras, Rizal. The charging of
price premium can also come naturally with the certification.
7. Encourage farmers and traders to perform value-adding
activities for their organic produce. Value-adding activities as the
name implies enable one to generate more income for the product
being sold. This could be in the form of minimal processing (cutting
into desired sizes) of the vegetables into: pinakbet packs, sliced
squash, sinigang packs, etc. The womenfolks can lend a hand in this
endeavor as they are good at this kind of menial jobs.
8. Conduct proper product handling seminars for traders and to
some extent to the farmers also. This is to address the lower KAP
ratio obtained for the traders and some farmers as well implying
their lower level of knowledge on how to properly handle organic
vegetables. The experts from the Post-harvest Training and Research
Center (PHTRC) at UPLB can be tapped for this endeavor.

LITERATURE CITED

Lantican, F. A. (2003). Farm Income Diversification and Market


Development (TCP/PHI/2901 D). Consultant’s Mission Report.
Department of Agriculture – Food and Agriculture Organization
of the United Nations.
Uy, J. (2003). The Case of Bukidnon Lettuce Cluster. In. Farm Income
Diversification and Market Development (TCP/PHI/2901 D).
Consultant’s Mission Report. Department of Agriculture – Food
and Agriculture Organization of the United Nations by Lantican,
Flordeliza A. 2003
Varona, B.M. (2003). Healing Wonders of Diet: Effective Guide to Diet
Therapy. Philippine Publishing House.

FOR INQUIRIES:
Email: [email protected]
Fax: 63+ (08822) 727459
URL: http://www.ejournals.ph
http://www.liceojournal.com

You might also like