Social Connections and Smallholder Vegetable Farmers' Collaborative Marketing Strategy: The Case of the Small Farmers Association of Quirogpang in Davao City, the Philippines

Abstract

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.

Marketing Benefits Derived From Clustering: The Case of Vegetable Clusters in Mindanao

“…One of the most limiting constraints for improving the profitability of smallholder farmers is marketing (Montiflor et al, 2011). Moreover, improving agricultural marketing has been a continuous undertaking in the Asian region, where farmers have been burdened with limited resources, changing consumer demands and inefficient supply chains (Manalili, 2003).…”

“…With the lack of knowledge and inability to negotiate with buyers, farmers have little option other than to sell their products through the traditional markets. Acting independently, smallholder vegetable farmers find it difficult to meet the quality and quantity demands of institutional buyers because they lack financial capital and their small farm size (Montiflor et al, 2011). External factors such as poor transport infrastructure, high transport and handling costs, limited access to physical inputs, credit and information, high transaction costs and the lack of government and institutional support all contribute to the difficulties smallholder farmers experience in entering highvalue markets (Murray-Prior, 2007).…”

Leadership Perceptions in Collaborative Marketing Groups: Cases From the Southern Philippines

“…In Mindanao, the second biggest island in the Philippines, many smallholder farmers have engaged in cluster farming to collaboratively market their vegetable products (Axalan et al, 2010;Montiflor et al, 2010;Real et al, 2010;Lamban et al, 2010;Montiflor, Batt and Murray Prior, 2009;Montiflor, 2008;Montiflor, Batt and Murray-Prior, 2008;Concepcion, Digal and Uy, 2007;Mendoza, 2006;Uy, 2005).…”

Evaluating the effectiveness of a ‘whole of chain’ approach in rural industry development in developing countries: a case study of Pakistan mango industry

“…For example the number of participants that were involved in planning and execution of the ASLP mango project activities was restricted (Collins et al 2006). This may explain why the vast majority of rural industry development projects aimed at linking farmers to 33 market are not participatory in a "whole of chain" context but rather focus to build capacity within one section of the chain which is usually the production section (Gandhi et al 1999;Van Roekel et al 2002;Chau et al 2004;Estelle et al 2004;Spriggs et al 2004;Dimyati & Muharam 2005;Nielson et al 2005;Dela Cruz 2007;Murray-Prior et al 2007;Rankin et al 2007;USAID 2009;Batt et al 2010;Correia & Rola-Rubzan 2010;Irianto 2010;Montiflor et al 2010;Van der Waal & Zongo 2010).…”

“…For example, such projects may strengthen the farmers" position in the existing marketing system by promoting group or cluster formation around the critical quality management and reliability of supply issues (Bayogan et al 2005;Dimyati & Muharam 2005;Murray-Prior et al 2007;Batt et al 2010;Montiflor et al 2010). However, developing and sustaining direct links between farmers and their markets is difficult because of a lack of long term commitment, poor infrastructure and the remoteness of growers from their ultimate markets (Spriggs et al 2004;Batt et al 2010;Montiflor et al 2010). …”