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Marketing Experience Small Rice Farmers in the Philippines Dennis Prince Y. Germano, DBA Enterprise Marketing Experience Small Rice Farmers in the Philippines Dennis Prince Y. Germano, DBA Enterprise Development Officer Pambansang Kilusan ng mga Samahang Magsasaka (PAKISAMA), Inc. , Philippines

Profile of Marketing Initiative • Farmers involved: 1, 092 • Towns: 51 • Volume: Profile of Marketing Initiative • Farmers involved: 1, 092 • Towns: 51 • Volume: 275. 3 MT (about 30% organic) • Marketing partners (NGOs, Coops, local traders, processors) • Brief history (will relate story)

 • Present status: –Enhancing production –Improving packaging –Prospecting • Management structure: –Independent staff • Present status: –Enhancing production –Improving packaging –Prospecting • Management structure: –Independent staff and line –Affiliates of PAKISAMA, Inc. Philippines

Enabling Factors • Marketing arrangements with alternative trade groups (e. g. UMFI, NATCCO, etc. Enabling Factors • Marketing arrangements with alternative trade groups (e. g. UMFI, NATCCO, etc. ) • Availability of niche markets (organic, brown, and glutinous rice) • Local demand; not enough supply

Hindering Factors • • • Land tenure Inadequate infrastructure (FMR, etc. ) Lack of Hindering Factors • • • Land tenure Inadequate infrastructure (FMR, etc. ) Lack of post-harvest facilities Limited capital resources Inadequate business knowledge and technical know-how • Absence of organic certification

Lessons Learned/Insights • Health conscious, rich people buy organic rice • Most farmers buy Lessons Learned/Insights • Health conscious, rich people buy organic rice • Most farmers buy “inferior” grade rice from NFA • Absence of organic rice certification bars market penetration

 • Rationalize production and marketing costs • Study market dynamics • Innovation and • Rationalize production and marketing costs • Study market dynamics • Innovation and continuous improvement in agricultural production is necessary

Challenges and Opportunities • Climate change • Changing trade liberalization • Changing lifestyles and Challenges and Opportunities • Climate change • Changing trade liberalization • Changing lifestyles and healthconsciousness • Inadequate infrastructure

 • • Population growth Governance Market-driven systems Supermarkets replacing local markets • • Population growth Governance Market-driven systems Supermarkets replacing local markets

Recommendations • Institute policy reforms to enhance agricultural competitiveness and support marketing initiatives • Recommendations • Institute policy reforms to enhance agricultural competitiveness and support marketing initiatives • Integrate strong business orientation to rice farming • Strengthen consolidation of producers to establish economies of scale

 • Maximize arable lands for growing other cash crops • Train and coach • Maximize arable lands for growing other cash crops • Train and coach farmers on “agriprenuership” • Create off-farm income opportunities

Intervention/Support Needed (National Level) Type of Support Technical Marketing Policy Provision of common service Intervention/Support Needed (National Level) Type of Support Technical Marketing Policy Provision of common service facilities, technology transfer Market matching, promotions, valueaddition, consolidation Access to capital resources; trade incentives; enabling conditions set by the government

Intervention/Support Needed (Regional Level) Type of Support Technical Marketing Policy Information and knowledge sharing; Intervention/Support Needed (Regional Level) Type of Support Technical Marketing Policy Information and knowledge sharing; organic certification Co-marketing Structural adjustment in the ASEAN region

Thank you! Thank you!