In the Philippines, vegetable farmers generally have only small land holdings. Because of this, plus an apparent lack of financial capital, it is difficult for smallholder farmers to meet the large volume demands imposed by institutional buyers and wholesalers. The small volume and the large variation in quality puts smallholder farmers at a significant disadvantage when it comes to arranging transport and marketing. However, smallholder farmers can engage in collaborative cluster farming in order to meet the demands of the market and to bolster production volume. In the cluster, the farmers carry out production planning and marketing activities collectively. Utilizing the case study method and the 8-step clustering approach formulated by the Catholic Relief Services, this paper will present key success factors and several challenges faced by the Small Farmers Association of Quirogpang (SFAQ) in Marilog, Davao City, Philippines. At the same time, it will identify important institutional supports and strategies that may enhance the success of this and other clusters. The paper highlights key success factors such as the social connections shared by the cluster members and leadership. In this case, these commonalities exist because it is an area-based cluster which includes neighbours and relatives who all practice one religion and speak the same language or dialect.

In the Philippines, the sustainability of natural resources and the profitability of farming has become a major concern for smallholder farmers. To address these concerns, government agencies and the private sector are delivering workshops on natural farming technologies to farmers. Training includes the preparation of different concoctions such as indigenous micro-organisms (IMO), fermented fruit juice (FFJ) and fermented plant juice (FPJ), fish amino acid (FAA), oriental herbal juice (OHN) and calcium phosphate (Caphos). Other natural farm technologies include vermiculture. The products from the training are applied to the farmer's own farms with any surplus products sold to other farmers. In Maragusan, Compostela Valley, Philippines, a group of smallholder farmers have successfully produced organic fertilizers as a result of the training provided to them. Initially, while training was provided to the group to facilitate the marketing of the fresh vegetable crops they produced, the skills learnt were readily transferable. This study discusses the development of the New Albay cluster and factors leading to its decline as a marketing cluster. This study will also explore the costs and returns associated with the application of organic fertilizer to vegetable crops in comparison to conventional farming practices. Results show that the cost of production arising from the use of natural farming technologies is lower than conventional farming.

Numerous smallholder vegetable farmers in the Southern Philippines have been organized into clusters or collaborative marketing groups. The purpose of these clusters is to gain production, marketing and capacity building support, consolidate produce for higher value markets, deliver in bulk to save on transport and transaction costs, and to increase household income. One of the factors influencing the ability of the clusters to achieve these goals is leadership. Using the case study method, this study looks at the leadership traits of cluster leaders in Bukidnon, South Cotabato and Davao City. A total of 35 smallholder farmers from the three areas were interviewed using a structured questionnaire. The research showed that the clusters have trusted leaders. The members have high regard towards their leaders. Their definition of an ideal leader fits the description of their current leaders. The members also trust their leaders to represent them in transactions and meetings.

Over the past two decades, numerous studies have explored the role and the impact of social capital in organizations. Social capital helps overcome problems of institutional access to information, credit, the supply of farm inputs and the provision of government services. Despite the increasing number of studies, the role of social capital and trust in collaborative marketing arrangements for smallholder producers remains relatively unexplored. This study examines social capital among cluster marketing groups in three regions of the Southern Philippines. The results show that social capital in the form of affiliations and networks, social cohesiveness, open communication and trust had positive benefits for each of the cluster marketing groups.

Researching and developing new arrangements for marketing smallholder products in the transitional economies is complex and requires an agribusiness systems approach. One approach to addressing complex problems is for researchers to facilitate an action learning process with farmers and market intermediaries, while using an action research process to investigate the factors that enhance the chances of success for farmer groups. This paper reviews the literature on action learning, action research and participatory processes in an attempt to clarify some of the terminology and define the similarities and differences. It outlines research into a framework to improve the effectiveness and resilience of cluster marketing groups through the application of these processes to smallholder vegetable chains in Mindanao, the southern Philippines.