PHILIPPINE-AMERICAN FUND
Monday, December 18, 2017
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  • PinoyME Foundation

    PROJECT TITLE
    Reducing Rural Poverty Through Agroentrepreneurship
     
    GOAL
    The project aims to increase the income of marginalized farmers by forming production clusters and connecting them to the formal market economy.
     
    LOCATION
    Bukidnon, Sultan Kudarat and Sarangani
     
    BENEFICIARIES
    3,300 rice, coffee and vegetable farmers
     
    DURATION
    3 years
     
    BACKGROUND
    PinoyME works with three partner-NGOs, the Diocesan Social Action Center (DSAC), KAANIB Foundation, Inc. and PASALI Philippines Foundation in commercializing the enterprises of their farmer beneficiaries. Even with their training in agro-entrepreneurship, farmers still need more preparation before engaging in commercially viable operations. Without further assistance, they may return to their old practice of dealing with local traders as individuals instead of as a group. Their capacity to develop commercial markets and financing linkages still needs to be improved. Partner NGOs also need to be strengthened to develop their business systems, finance and administrative capacities to assist the farmers.

    ACTIVITIES
    USAID, through the Philippine-American Fund, supports PinoyME Foundation in building a successful model of production clustering where farmers can consolidate bigger volumes, penetrate the value-chain and sell these products directly to bigger markets. This project sustains marketing efforts so farmers can earn larger revenues from their product and become part of the mainstream market instead of serving as mere suppliers for traders.
     
    UPDATES AS OF MARCH 2017
    During the quarter, funds for the marketing activity of Lebak Coffee Growers Association and the Kalamansig Coffee Industry Development Council were released upon submission of the final loan design and agreement for the loan product. Included in the loan design is the organization’s profit sharing system. The loan funds will be used to consolidate the farmer members’ harvests and deliver it directly to Nestle Philippines for a better profit margin.

    PinoyME, together with DSAC and Kalsada, a company advocating fair trade in coffee, conducted a meeting with the Bayanihan Millennium Multi-Purpose Cooperative (BMMPC) to discuss a partnership for Arabica Green Coffee Beans (GCB) marketing. The farmers were oriented on techniques needed to achieve the required GCB quality. The project also presented the financial projections to BMMPC management, as well as the required equipment and pricing arrangements.

    The project also partnered with PASALI Philippines in conducting Negotiation Skills Training for Holic Farmers Association and Maasim Coffee Growers Association in Maasim, Sarangani. This activity coincided with the coffee harvest season to provide participants with the capacity to better negotiate with market players.

    Since the project started, PinoyME and its partner NGOs were able to assist a total of eight people’s organizations in the provinces of Bukidnon, Sarangani and Sultan Kudarat.