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.

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Given the many different ways the product may be used, the institutional market for fresh vegetables in the Southern Philippines can be segmented on the basis of the role market intermediaries perform in the supply chain, where they are, what customers they serve, the range of products required, the volume of product required and the quality specifications. Potential market opportunities are identified and the various constraints smallholder farmers face in endeavouring to meet the needs of institutional buyers are highlighted.

This paper focuses on how microfinance has affected the investment decision making of squash and bitter gourd cluster farmers in Impasugong in the Southern Philippines. The farmers received loans from a microfinance institution (MFI) but because of production problems farmers were not able to meet their buyers' requirements. The squash cluster disintegrated, while the bitter gourd cluster decided to diversify into onion production and to adopt organic fertilizers as a more cost effective means of production. As a result of these setbacks, both the clusters and the MFI learned some valuable lessons including; the role of microfinance in production; the risks associated with loans; and the level of support received by the farmers. Sustainability of livelihoods is the key factor that keeps the MFI and the farmers together. As the farmers aspire to maintain production, they will continue to need access to financial resources to meet their farm and family commitments.

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.