DA-PRDP-supported farmer groups expand market, income through market linkage, access to financing

Date Published: July 4, 2023

The Department of Agriculture – Philippine Rural Development Project has been instrumental in empowering farmers and developing the agriculture sector in rural communities. Through its technical assistance, the PRDP initiated market connections and credit facilitations, enabling farmer groups and associations with enterprise subprojects to expand their market reach and increase their income.

Through the I-REAP Component, several farmer groups were linked to key players in the agriculture sector, including institutional buyers, retailers, and processors, eradicating intermediaries and resulting in fairer prices for their produce and better income opportunities.

Furthermore, PRDP also extended assistance to connect proponent groups (PGs) to credit access and financial services. This collaboration with local financial institutions and microfinance providers allows PGs to receive financial products suitable to their needs. These include agricultural loans, working capital, and investment funds. Access to these credit and other financial services enables them to invest in productivity-enhancing activities, equipment and infrastructure development, and enterprise operations expansion.

The impact of the PRDP’s assistance to market linkage and access to financing can be seen through some success stories across the four regions in the cluster. In the highlands of Cordillera, an organization of coffee growers, also known as Sagada Arabica Coffee Growers and Processors Organization (SACGPO), was able to link with St. Luke’s Medical Center to be the sole supplier of drench-bagged coffee, with recorded Php 377,000 gross sales.

Over Ilocos Region, the Alcala Onion Growers Multi-Purpose Cooperative sustains its market relationship with Jollibee Foods Corporation. The cooperative’s onion produce meets JFC’s requirement and is now renting 8 hectares for onion production.

In Cagayan Valley region, the Buenavista Multi-Purpose Cooperative (BMPC), a cooperative known for its peanut products, logged more than PhP 7.5 million gross sales with their market partnership with Dizon Farms, and Jockers Food Industries.

Lastly, the Sapang Multi-Purpose Cooperative from the Central Luzon region has become the sole dealer of sweet potato to San Miguel Foods, Inc as an ingredient for aquaculture feeds. Its minimum order quantity ranges up to 100 tons. The cooperative is also a proud recipient of assistance from various financial institutions, including the Landbank and Development Bank of the Philippines. With consistent and good-standing credit scores, they were able to qualify for a higher credit amount.

In North Luzon, data shows 377 farmer cooperatives and associations are proponent groups of I-REAP subprojects and some 69,956 individual farmers and fishers benefit from the approved enterprise subprojects.

In total, there are 130 PGs assisted in market linking with buyers within and outside their localities and 59 PGs were able to avail credit and financing from various financing entities.

Aside from market linkage and credit access facilitation, the PRDP also aids PGs in enhancing their operations, products, and services through skills training, digital marketing, capacity building, leadership and management training, among other activities.

With PRDP’s initiative, more farmers are expected to benefit from improved market access and financial support, fostering sustainable growth, increasing income opportunities, and transforming the lives of countless farmer groups in rural communities. (Ericson M. Guiao, PSO North Luzon InfoACE)

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