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Linking Small Farmers to Markets

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Title: Linking Small Farmers to Markets


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(No Transcript)
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Linking Small Farmers to Markets
Brief Overview and Updates Where we are and its
link to ASEAN
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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.

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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)

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  • 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.

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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.

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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
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Selected Agricultural Commodities
Tea in Vietnam Free-range chicken in
Cambodia Calamansi in the Philippines
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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

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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

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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.

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Association of Southeast Asian Nations Ten
nations, One community
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ASEAN Secretariat
ASEAN Secretariat building inaugurated on 9 May
1981 Jakarta, Indonesia
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ASEAN Member Countries Brunei DarussalamCambodia
IndonesiaLaosMalaysiaMyanmarPhilippinesSinga
poreThailandViet Nam
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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
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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
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  • AGRICULTURE-based Countries
  • Cambodia 33.1
  • Lao PDR 50.2
  • Myanmar 42.9

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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.

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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.

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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?

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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

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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

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www.aseanfoundation.org
ASEAN Foundation 1997
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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.

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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.

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

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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.
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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.
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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
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  • 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
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