Linking Small Farmers to Markets
Brief Overview and Updates:
Where we are and its link to ASEAN
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.
3
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)
4
• 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.
5
strategic goal
• Thus, LSFM’s 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.
6
Five Components of LSFM
Policy
Advocacy
Market Research
Market
Intermediation
Mechanism
Strengthening
Building
Partnership
Building
Capabilitybuilding
Governments/ASEA
N & Other Asian
International Bodies
Policy
Advocacy
Market
Research
Mapping Marketing initiatives
Value Change Analysis
Production Capacity Inventory
Agricultural
Commodities
Market
Intermediation
Mechanism
Partnership
Building
Formal Markets
Building
Strengthening
Capabilitybuilding
Small Farmers/
Producers Groups
NGOs
Challenges
Selected Agricultural Commodities
Tea in Vietnam
Free-range chicken in Cambodia
Calamansi in the Philippines
9
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
10
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”
11
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/Department’s, other
government agencies at the local and national levels.
12
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.
13
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.
14
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.
2.
They have weak technical capacity
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.
15
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.
16
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
17
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 polevaulting, low product quality and very high costs related to
dealing thousands of individual small farmers.
18
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.
19
Association of Southeast Asian Nations
Ten nations, One community
ASEAN Secretariat
ASEAN Secretariat building inaugurated on 9 May 1981
Jakarta, Indonesia
ASEAN Member
Countries
Brunei Darussalam
Cambodia
Indonesia
Laos
Malaysia
Myanmar
Philippines
Singapore
Thailand
Viet Nam
Area and Population
Land
Country
Population (million)
2006
(1000 Km2)
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
Economic Performance
Country
Brunei Darussalam
GDP per capita (in
USD) 2006
GDP total
(in billion USD) 2006
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
AGRICULTURE-based Countries
Cambodia
Lao PDR
Myanmar
33.1%
50.2%
42.9%
TRANSFORMING Countries
URBANIZED Countries
Brunei Darussalam
Singapore
Indonesia
Malaysia
Philippines
Thailand
Vietnam
2.1%
0.1%
15%
7.7%
19.1%
9.3%
20.2%
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.
26
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.
27
as civil society, we need to know
our agenda...

What is ASEAN?



Who are we?



Why are we stakeholders in this?
Who’s interests do we represent?
What do we want?




What is our take on the ASEAN as an institution?
How does it affect our lives and where is this taking us?
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?
28
Dreaming for an Ideal Regionalism for
ASEAN: Key Principles
•Cooperation and solidarity based on equity, peace and justice
•People’s 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 people’s 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-friendly
technologies
29
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 be30the
basis of engagement on regionalism
ASEAN Foundation
1997
www.aseanfoundation.org
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.
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.
Farmers can overcome difficulties with:
• Knowledge
• Skills
• New technology
• Capital
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.
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.
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
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
Thank You