Building Digital Farm to Market Road Reflections and Insights on ICT and Rural Development PhilDHRRA-Mindanao TriPARRD Experience BY:ROLANDO ABANDO MINDANAO REGIONAL COORDINATOR MAJOR PARTS OF THE PRESENTATION PART 1: THE CONTEXT PART 2: THE INITIATIVES PART 3: POSSIBILITIES PART 1: THE CONTEXT The PhilHRRA-Mindanao Experience TriPARRD (1996-1999) 9 ARCs in 5 Municipalities in ComVal Province LTI PSD + a little of ICT… SIBS The Evolution of Our ICT Awareness • PCs, Cell Phones, Emails: Just a work-enabler for Triparrd Staff • Then a “weak signal” of the future was noticed. • There were group discussions on Alvin Toffler’s theories: Third Wave, Power Shift • Understanding on the relevance of ICT to Rural Development and productivity was vague and characterized by scattered unsystematic ideas…. • Retrospectively, Steven Covey’s 5 Ages of Civilization’s Voice captures the synthesis of those ideas. The PhilHRRA - M indanao Experience TriPARRD (1996-1999) 7 ARCs in 5 Municipalities in ComVal Province LTI PSD + a little of ICT… SIBS Our Situation: Five Ages of Civilization’s Voice • Hunter/Gatherer Age Source: Stephen R. Covey, “The 8th Habit” Our Situation: Five Ages of Civilization’s Voice • Hunter/Gatherer Age • Agricultural Age Source: Stephen R. Covey, “The 8th Habit” Factors for Economic Growth/Development Ages/Stages • Agricultural Key Factors • Land • Labor • Weather Our Situation: Five Ages of Civilization’s Voice • • Hunter/Gatherer Age Agricultural Age • Industrial Age Source: Stephen R. Covey, “The 8th Habit” Factors for Economic Growth/Development Ages/Stages Key Factors • Agricultural • Land • Labor • Weather • Industrial • Capital • Transport • Innovation Our Situation: Five Ages of Civilization’s Voice • • • Hunter/Gatherer Age Agricultural Age Industrial Age • Information/Knowledge Age Source: Stephen R. Covey, “The 8th Habit” Factors for Economic Growth/Development Ages/Stages Key Factors • Agricultural • • • • • • • Industrial • Information/ Knowledge Land Labor Weather Capital Transport Innovation • ICT Infrastructure • Workforce Development • IP Creation and Protection Our Situation: Five Ages of Civilization’s Voice • • • • Hunter/Gatherer Age Agricultural Age Industrial Age Information/Knowledge Age • Age AgeofofNetworks Wisdom Signals of the Unfolding Future: 1.FORECAST: Social Networking The value of network 2. Web 2.0 will be greater than the value of 3. Crowd sourcing IP/technology. 4.Why Tools: wiki, blog, did Google bought for $1.2 B The You RiseTube of Myspace, Facebook, You Tube, Wikipedia, etc. e-Philippines Strategic Roadmap • Provide affordable Internet access to all Filipino communities • Build ICT awareness and capability in Philippine society • Provide a healthy and competitive business environment • Generate high value jobs in Filipino communities through world-class ICT services • Provide government services directly to all Filipino citizens worldwide Provision of Affordable INTERNET ACCESS to Communities Provision of GOVERNMENT SERVICES TO CITIZENS Directly e-enabled Building of ICT AWARENESS & CAPABILITY in Society society Creation of High Value JOBS Provision of a Healthy & Competitive BUSINESS ENVIRONMENT e-Philippines Strategic Roadmap Whats in it with me? Provision of Affordable INTERNET ACCESS to Communities Provision of GOVERNMENT SERVICES TO CITIZENS Directly e-enabled Building of ICT AWARENESS & CAPABILITY in Society society Creation of High Value JOBS Provision of a Healthy & Competitive BUSINESS ENVIRONMENT The Challenge of Bridging the Digital Divide! Is… The Challenge of Raising Productivity thru ICT! Lack of Relevant Software Applications Low KSA Lack if ICT Infrastructure The Challenge of Bridging the Digital Divide! SCIENCE CITY OF MUÑOZ -Confronted with a pest attack on his rice field, Marcelino Dizon, a 60-year-old farmer from Barangay Rang-ayan here, went straight to the barangay hall to search for answers. With the flick of a callused finger, Dizon turned on a computer and started surfing the Net. In no time at all, he had the information he needed. Dizon’s village, which is 9 kilometers from the city proper, has no landline telephone connection. But through the wonders of information and communications technology (ICT), Barangay Rang-ayan is now connected to the Internet and its residents are able to make phone calls using Voice Over Internet Protocol (VoIP) In Magsaysay, Davao del Sur, Bienvenido Mariano, 62, faced a similar problem. He got the answer from the Internet—stem borers were attacking his plants—and learned what he should do to solve the problem. Dizon and Mariano are among the hundreds of farmers in 12 cyber communities around the country who have become adept at using the Internet as a tool for improving ricefarming techniques. Mariano’s village is 21 km from the provincial capital of Digos where the Internet backbone has been installed and beamed to their cyber community by wireless technology. QUESTION: • CAN A NO READ NO WRITE FILL UP A BALLOT? Commission On Election Elective Position: 1 Selected Candidate(s): 01 President President Philippines May 11, 2010 National Election De Castro, Noli Vice President Senators De Castro, Noli Lakas Legarda, Loren UNO Lacson, Ping Independent Party List Representative Roxas, Mar NP Congressman Governor Villar, Manny PDP Laban Vice Governor Board Member Mayor Vice Mayor Next Submit Councilors Commission On Election Elective Position: Selected Candidate(s): Vice President 1 10 President Philippines May 11, 2010 National Election Vice President De Castro, Noli Escudero, Chiz Senators Gordon, Richard Escudero, Chiz Lakas UNO Duque, Francisco Independent Party List Representative Binay, Jejomar NP Congressman Governor Marcos, Imelda PDP Laban Vice Governor Board Member Mayor Vice Mayor Next Submit Councilors Senator Elective Position: 12 Selected Candidate(s): 52 08 4 3 61 7 Mike Defensor LP Candidate 13 Lakas Koko Pimentel UNO Candidate 14 Lakas Nani Braganza Lakas Candidate 15 UNO NP Candidate 16 Sonia Roco PDP Laban Candidate 17 Migs Zubiri Lakas Juan Flavier JV Ejercito UNO Jingoy Estrada Uno Niki Coseteng NP Gringo Honasan Rudy Duterte Uno LP Candidate 20 NP Lakas Senators Next Back Gordon, Richard 1. Mike Defensor 2. Nani Braganza 3.Koko Pimentel 4. JV Ejercito 5. Rudy Duterte 6. Migs Zubiri 7. Candidate 20 8. Candidate 13 Party List Representative Congressman Governor UNO Vice Governor Board Member NP Candidate 23 PDP Laban Candidate 24 De Castro, Noli Vice President Mayor Vice Mayor Sonny Belmonte Philippines May 11, 2010 National Election NP Candidate 21 Independent Candidate 22 President Independent Candidate 18 PDP Laban Candidate 19 Commission On Election PDP NP Councilors PART 2: EARLY INITIATIVES The PhilHRRA-Mindanao Experience TriPARRD (1996-1999) LTI 5 Municipalities in Com Val Province PSD + a little of ICT… SIBS Problems Encountered With Attempted IT Solution Slow Rural Economic Growth Inadequate of Communiy Capital Resources Low Income of Farmers Low Farm Investments Low Yield Low Credit Worthiness Lack of crop suitability study Lack of Business Plan (Farm and Budget) Absence of proper land evaluation Lack of Technical know how Lack of DA personnel Low Selling Price of produce Lack of competition among traders Limited Access to Supply information Reliance on Word of Mouth Lack of Savings in the Community Lack of opportunity for borrowing from lending instituions Distance of Formal Banking Institution Low Income of people’s Enterprises Poor Business Performance Lack of timely and correct decision making Slow processing of business data and information Chronic delay of Financial statements generation Less favorable policy environment Lack of adequate policy support Lack of production support services Slow processing of prodcution data and information Lack of Monitoring of production Performance Attempts for IT Solution: Farmer Friendly Accounting Software Low Income of people’s Enterprises Poor Business Performance Lack of timely and correct decision making Phildhrra tapped a software developer to provide a customized “farmer friendly” accounting software. This was introduced and adopted by Dizon Farm Workers Cooperative This has been used by their consumer store and canteen processing around 300 transactions daily. Until now the software, is being used by the Coop Slow processing of business data and information Chronic delay of Financial statements generation Another license (micro-finance version) was purchased by TriFED, a Federation of ARB cooperative that spinned off from TriPARRD Problems encountered: The developer refused to cater further to other coops except those with internet connectivity due to the cost of maintenance and support Aspiration: With wireless internet penetrating rural areas, a similar application sitting on the Software as a Service Platform is considered before by PhilDHRRA to be developed in partnership with a solution provider. Attempts for IT Solution: Farm Planning and Budgeting Low Income of Farmers Low Farm Investments Low Credit Worthiness Lack of Business Plan (Farm and Budget) Lack of Technical know how Low Yield Lack of crop suitability study Absence of proper land evaluation Lack of DA personnel Low Selling Price of produce Lack of competition among traders Attempts to automate the this tedious process were done only thru the excell spread sheet – only the budgeting side. Limited Access to Supply information Reliance on Word of Mouth Assisting farmers to carry out Farm Planning and Budgeting is a routine of the field personnel of the project and is done on a manually. Except for few cases the burden of assisting the farmers to come up a farm plan and budget is done by NGOs. Farm plans and budget is important not only in identifying the resources needed to develop the farm, but also increasing the confidence of the farmers that the farm can be transformed towards greater productivity. Cost-benefit simulation via Excel is very effective for the farmer to arrive at a realistic plan based on the given resources. But we realize farm plans are not only about numbers. It is also about understanding the geophysical conditions of the farm (soil type, ph, climate, terrain) that requires expert evaluation Aspiration: A a multi-tier (social networking enabled) Farm Planning Software using powerful database management and object oriented programming language with an SaaS platform will be available to communities. Lack of Relevant Software Applications Low KSA Lack of ICT Infrastructure The Challenge of Bridging the Digital Divide! PART 3: POSSIBILITIES Signals of the Future Municipal Wimax Area Broadband Network We need to build the highway straight to the hinterlands….. Lack of ICT Infrastructure LAST MILE BANKING Production Support thru Micro-finance was inadequate to finance the production potential of the areas. Inadequate of Communiy Capital Resources Lack of Savings in the Community Lack of opportunity for borrowing from lending instituions Distance of Formal Banking Institution Lack of Relevant Software Applications The portfolio size of Micro finance project have not reach a scale for it to operate viably. E.g. High personnel turn over due to low salary scale of skilled personnel. . Bigger scale formal lending institution is inaccessible and setting up a branch in the communities is uneconomical. The challenge then, is can an ICT enabled mechanism expedite for formal lending institutions to reach out to rural communities despite the distance? Aspiration: Study and when feasible implement the Brazil’s Banking Correspondence System. A banking correspondent is a retail institution authorized and enabled by an IT solution to accept savings deposits within a community and dispense withdrawals in behalf of a financial institution. ICT CAPACITY BUILDING • ICT Capability Building for NGOs • ICT Capability Building for LGU • Awareness Building of the Role of Youth and Students in Development ICT – Akin to technology – Pulsating Sector – A Potent Agent for Technology Diffusion Building Digital Farm to Market Road On-line Social Networking Approach to Linking Production to Market By: Alexander Casiple, SUCCEED, INC The Social Network Stakeholders • The Farmers in the Community • Students in the Community • The Local Government Units (MAO,PAO) – Agri-Technicians • NGO • Production Financiers • The Municipal Production Assemblers: Supply Routers • The City Consolidators: Demand Routers • The City End-Consumers NGO LGU DECS STUDENTS AGRI TECHNICIANS FARMERS LENDERS SUPPLY ROUTERS DEMAND ROUTERS CONSU MERS The Synergy of the Social Networking • Farmers have a profound link to the end-consumer market. • Rural students have concrete contribution to the agricultural development in the farming household and community level. • NGO perform functions in bridging the Digital Divide and “On-line Siadization” • Agri-technicians (MAO) has an IT platform to perform its agricultural support services. • LGU has a platform for production information system/ database management as a tool for planning and policy development. • Consumers have profound link to producers and are empowered to “co-produce” their consumption needs. Road Map Farmer Consu mer Generate Menu Plans and Budget Generate Farm Plans and Budget Supply is ascertained Supply and Demand is Market Matched Farm to Market Digital Link is Created Demand is ascertained Web-based Farm Planning and Budgeting Software Web-based Menu Planning and Budgeting Software Student assists in encoding production information in the software LGU/MAO Agri-Tech input farm technical information into the software Web-based Farm Planning and Budgeting Software DECS Integrates to the curriculum encoding skills development for Farm Planning Software NGO forge partnership Web-based Menu Planning and Budgeting Software Software generates Production Bgy, Municipal, Provincial Production Status Consolidated Report as an input to Policy Development and Decision-Making Software generates Production Financing Requirement Report where Credit Providers can view and evaluate and decide to provide credit financing. •Consumer input weekly budget •Profile of persons in the households •Sets of Weekly Menu Plan suited to the profile and budget •Selects a set of menu plan •Ingredients requirement checklist is generated •Deselect ingredients still available in the Kitchen •Click to Submit in the Shopping Cart Agri-Ingredients is inputted to the Demand Monitoring Chart How will the Farm To Market Digital Linking work? PROCESS FLOW FOR THE FARM TO MARKET DIGITAL LINK PROFILING STAGE 1. Farmer register a Farm Planning Account Register name, farm location, resource inventory, etc FARM PLANNING 5.Farmer/student STAGE divide vacant landscape into land units Farmer/student input size of a land unit (e.g. plot) then system automatically determine how many land units can be made in the vacant landscape 2. Student input general farm information 3. Technician input technical information about 4. Farm Profile is Generated Farm location, resource slopes, soil types, climate, inventory, present land use, etc technical description System identifies crops suitable to the geo-physical conditions of the farming land scape. Generates 3D representation of the Farm 6. Farmer/student select crops for a certain land unit 7. System calculates production potential. 8. Farm Plan and Budget is automatically generated in word or excell format Farmer then select a crop from the list earlier generated by the technicial inputs of the agritechnician When farmers select a crop, a decision support info ( instant cost-benefit calculation) is generated. Farmer then decides the scale of his production target. A farm plan (no of hills, workbreakdown structure, timeline of activities, manning requirement, cost and income projection is generated. CONSOLIDATION Farm plans details STAGE serve as input to consolidation module System provides System provides window to interested interface for credit providers implementation tracking. System provides reporting window to LGUs and other instituional stakeholders System generates list of projects with farm plans and budget. System generates list of Agri-technicians monitors projects that requires credit implemenatation: Plan vs. assistance where credit Actual providers can view and evalauate the credit worthiness of the project. System consolidates data from the various farm plans according geographic seggregation, crop selection or period of planting and harvest Production supply detrmined by Farm Planning Software is matched with consumer demand determined by Menu Planning Software System Identifies shortest route of production location to consumption location Demand router pick up routing advise for the delivery of commodities. INTEGRATION STAGE Supply router pick up online routing advise for picking up commodities. Thank You The PhilHRRA-Mindanao Experience • Central Strategy:Sustainable Integrated Area Development GROWTH TAKES PLACE WHEN THERE IS ACCUMULATION OF CAPITAL RESOURCES CAPITAL ACCUMULATION TAKES PLACE WHEN COMMUNITY CASH INFLOW EXCEEDS CASH OUTFLOW EQUITABILITY TAKES PLACE WHEN THESE CAPITAL RESOURCES ARE PROPERLY MANAGED BY THE ARB THEMSELVES EITHER INDIVIDUALLY OR THROUGH THE COOPERATIVE TRIPLE TREAT: TREAT THE AREA AS AN ENTERPRISE TREAT THE COOPERATIVE AS AN ENTERPRISE TREAT THE FARM AS AN ENTERPRISE The PhilHRRA-Mindanao Experience ENHANCING CASH INFLOW FARM PRODUCTIVITY IMPROVEMENT MARKETING AND ENTERPRISE DEVELOPMENT ENTICEMENT OF EXTERNAL INVESTMENT INTO THE AREA OFF-SITE INVESTMENTS PLUGGING THE FINANCIAL LEAKS FOOD SECURITY AND LOCAL SELF RELIANCE GENERATION OF COOP ENTERPRISE SERVICES MORE SOCIAL SERVICES