marketing basics as applied to agroforestry tree products...• closely to bogor and jakarta...
TRANSCRIPT
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Joel C. TukanJames M. RoshetkoSuseno BudidarsonoG. Manurung
Venue: Sanur Paradise Plaza HotelSanur, Bali - Indonesia. May 9 - 12, 2006
World Agroforestry Centre (ICRAF) & Winrock International – Bogor, Indonesia
FAO/VREDESEILANDEN Sub-Regional Seminar onEnhancing Capacities of NGOs and Farmer Group to Link Farmers to Market
Market Chain ImprovementMarket Chain Improvement:Marketing Basics as Applied to Marketing Basics as Applied to
AgroforestryAgroforestry Tree Products: Tree Products: Banana markets in West JavaBanana markets in West Java, , IndonesiaIndonesia
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West Java
Malaysia
Philiphines
Thailand
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WEST JAVAProvince
Bogor District
Bogor City
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Linking Farmers to Markets
• Background• Our Contribution• Project Approach
• Lessons Learned
Contents :
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Linking Farmers to Markets
Background
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Linking Farmers to Markets
Background
• Farmers live on or below the poverty line• Land access less then 1 hectare• Tree gardens products intended for household
consumption with some sales in local market• Tree gardens management is not intensive• Use of agriculture inputs is infrequent
Existing Farmers Conditions
Challenge and OpportunitiesChallenge and Opportunities• Banana hold particularly high potential (the most common and
profitable tree gardens crops in Nanggung• Market demand far exceeds supply• Closely to Bogor and Jakarta Nanggung farmers have an
opportunity to target its market• Farmers are interested in intensifying their tree farming activities
eventhough they are hesitate (not sure where to focus their efforts)• Plenty of opportunity to sell many products in many locations
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Agroforestry Innovations and Agroforestry Innovations and Livelihood Enhancement ProgramLivelihood Enhancement ProgramDevelop a replicable and efficient extension approach to improve farmers' tree gardens, both quality andquantity of products, and strengthens farmer’s ability to respond to market opportunities.
• Training workshops for farmer leaders• Extension Follow-up with farmer groups• Market Improvement and Ec. studies
Livelihood enhancement for poverty reduction) &Conservation (empower farmer to improve farm productivity, market linkages)
Linking Farmers to Markets
Core Activities
What are the program Addressed?
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Linking Farmers to Markets
ContributionO u r
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Linking Farmers to Markets
FarmerInception Workshop
IntroductoryVisits
ProgramSocialization and
Dissemination
Follow Up Activities(Technical AssistancesAnd Material Support)
IdentifyProcess,
Opportunities& constraint
Core Farmer
Workshops
Target Audience
ProgramPartners
ParticipatoryResearch
Core Activities
SupportingActivities
Mini TrainingsFarmers Meeting
Field days Cross Visits
Demo Trials Consultation with Tech. Specialist
Baseline Survey
MArket surveys
Tree Garden inventory
Program Process/Approach
Monitoring & Evaluation(Review All Process)
Legend:
Our Contribution
FARMERS WORKSHOP
4. Farmer Market Linkages
6. Participatory Monitoring and Evaluation
5. Cross Visit to farmer-operated enterprises
1. Species, Problems and Market Prioritization
3. Tree Garden Management
2. Tree Propagation and Nursery Management
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Linking Farmers to Markets
ExamplesProject
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Linking Farmers to Markets
Project Examples
5. Identifies opportunities to improve the quality and quality of farmers’agroforestry products and expand farmers’ marketing role.
1. Identifies the agroforestry species and products (their specifications,quantities, seasonality, etc) that hold potential for Nanggung farmers
2. Identifies market channels that are used and have potential for farmer products
3. Identifies the marketing problems faced by farmers and market agents
4. Enhances farmers’ understanding of market mechanisms
Marketing Study
A
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Linking Farmers to Markets
Project Examples
Can farmers’ roles expanded to achieve higher incomes?
There are a number of methods farmers can undertake to expand their role in marketing channels to secure higher incomes by following recommendations of banana cultivation:
4. Collective marketing - Working together in the farmer groups include with market agent in the mutually relationship
2. Simple management
1. Variety and germplasm selection – use only good quality germplasm of the five banana varieties that have a strong and stead market demand
3. Post-harvest handling – fruit should be harvested based on maturity and specifications. – Harvest immediately before the pre-arranged arrival of collectors/traders
and hung on tripods after harvesting – not stored on the ground for several days. Farmers should also sort and
grade bananas by variety and quality.
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Use only good quality germplasm of the five banana varieties.(Ambon/Gross michele, Raja Bulu, Raja Sere, Tanduk and Mas) Demand for these varieties is higher then supply.
The banana varieties planted must be appropriate for the local growing conditions, and for the local market demand.
In the end, the correct variety will maximize the annual revenue per square meter planted.
1. Variety and 1. Variety and germplasmgermplasm selectionselection
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D. Remove male flowers;
E. Remove all green leafs that may touch andpotential damage thehanging fruit;
A. Using appropriate spacing
B. Using fertilizerC. Remove grass and
herbaceous weeds
2. Simple Management2. Simple Management
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F. Propped the stems withwooden or bamboo poles.
G. Thin bananas to retain only 2-3 stems;
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Farmers should also sort and grade bananas by
variety and quality.
Fruit should be harvested based on maturity and specifications provided by market agents
3. Post3. Post--harvest handling harvest handling ––.. Fruit should be harvested immediately ; hung on tripods after harvesting not stored on the ground;
Using plastic crates/cartoon box
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Linking Farmers to Markets
Project Examples
TEXTdeliver in bunches by hands
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Individual farmers to Collective Marketing
4. Collective Marketing4. Collective Marketing
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By forming a group By forming a group and arrange with and arrange with traders weekly or traders weekly or biweekly visits to the biweekly visits to the village to purchase village to purchase bananas in large bananas in large quantities.quantities.
The days of the visits The days of the visits must be premust be pre--arranged arranged and regular.and regular.
Both farmers and the Both farmers and the trader must maintain trader must maintain a tight schedule.a tight schedule.
OPPORTUNITYOPPORTUNITY(Linkage with Banana
Distributor)
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Linking Farmers to Markets
MarketVisits
MarketVisits
Meetings &Farms VisitMeetings &Farms Visit
Workshop &MIni TrainingWorkshop &MIni Training
MarketSurveyMarketSurvey
ConsultationTech.SpecialistConsultation
Tech.Specialist
Farmers Demo Trials
Farmers Demo Trials
Project Examples
TEXT
Farmers
TEXT
The activities that The activities that had been done to had been done to Support Farmer Support Farmer Link to MarketLink to Market
Farm and Household Study
Farm and Household Study
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Linking Farmers to Markets
MarketVisits
MarketVisits
Meetings &Farms VisitMeetings &Farms Visit
Workshop &MIni TrainingWorkshop &MIni Training
MarketSurveyMarketSurvey
ConsultationTech.SpecialistConsultation
Tech.Specialist
Farmers Demo TrialsFarmers
Demo Trials
Project Examples
TEXT
Farmers
TEXT
To identify exist market channels,marketing problems, market specifications, market
opportunities and traders willing to work with farm
communities.
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Linking Farmers to Markets
MarketVisits
MarketVisits
Meetings &Farms VisitMeetings &Farms Visit
Workshop &MIni TrainingWorkshop &MIni Training
MarketSurveyMarketSurvey
ConsultationTech.SpecialistConsultation
Tech.Specialist
Farmers Demo TrialsFarmers
Demo Trials
Project Examples
Farmers
to enhance farmers' fruit trees/timber trees/annual crops production and post harvest/handling skills.
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Linking Farmers to Markets
MarketVisits
MarketVisits
Meetings &Farms VisitMeetings &Farms Visit
Workshop &MIni TrainingWorkshop &MIni Training
MarketSurveyMarketSurvey
ConsultationTech.SpecialistConsultation
Tech.Specialist
Farmers Demo TrialsFarmers
Demo Trials
Project Examples
Farmers
Farmers could gain awareness and experience with marketing and market agents. (Local Market, Regional Market, Supermarket).
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Linking Farmers to Markets
MarketVisits
MarketVisits
Meetings &Farms VisitMeetings &Farms Visit
Workshop &MIni TrainingWorkshop &MIni Training
MarketSurveyMarketSurvey
ConsultationTech.SpecialistConsultation
Tech.Specialist
Farmers Demo TrialsFarmers
Demo Trials
Project Examples
Farmers
to identify farmers’ current practices and problems &opportunities
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Linking Farmers to Markets
MarketVisits
MarketVisits
Meetings &Farms VisitMeetings &Farms Visit
Workshop &MIni TrainingWorkshop &MIni Training
MarketSurveyMarketSurvey
ConsultationTechnicalSpecialist
ConsultationTechnicalSpecialist
Farmers Demo TrialsFarmers
Demo Trials
Project Examples
TEXT
Farmers
TEXT
To sharing knowledge, skill and experience through technical information, practical that adaptable and applicable for the farmers
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Linking Farmers to Markets
MarketVisits
MarketVisits
Meetings &Farms VisitMeetings &Farms Visit
Workshop &MIni TrainingWorkshop &MIni Training
MarketSurveyMarketSurvey
ConsultationTech.SpecialistConsultation
Tech.Specialist
Farmers Demo Trials
Farmers Demo Trials
Project Examples
FarmersDesigned to demonstrate the advantages of quality germplasm and deliberate management.
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Linking Farmers to Markets
Project Examples
Farmers Demonstration Trials (FDTs) (1)
Table 1. Actual activities implemented by farmers
No Activity Percentage of farmers (%)
1. Using appropriate spacing 1002. Utilize recommended varieties (quality germplasm) 1003. Using Fertilizer 894. Circle Weeding 785. Number of stem retained 786. Good harvesting 787. Pest and Disease management 338. Leaf Pruning 229. Drainage 11
Farmer are least focus on 7,8 and 9 because:• farmer are preferred to implement the activities that
do not require a lot cash input (to minimize cost)
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Linking Farmers to Markets
Project Examples
FDTs Evaluations (2)
• Fruit weight increase account for 20-25%
•Traders note the quality of banana increase. By adopting the use of plastic crates, its decrease bananas damage from 10% to 3%
• 85% of banana product meet market specificationand can be sold (combination of deliberate tree managementand improve post harvest management –previously only 50-60%was sold)
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Price/bunch (Rp)Grade Description
Local market of Nanggung
Regional market and retailer
Bulk sales Pre-program norm for Grade A and B Rp 6,500 Not specified
Grade C*Less the 13 fingers/bunch; uniformity not necessary and a lot of surface stain allowed
Rp 5,600 Not specified
Grade B
13-18 fingers/bunch; limited size difference between rows, minor deformities and minor surface stains allowed
Rp 19,600 Rp 40,000
Grade A18-20 full fingers/bunch; front-row and back-row fingers of equal-size; no surface stains
Rp 22,800 Rp 48.000
Market specifications and average prices for different grades of banana in Nanggung.
Linking Farmers to MarketsDeveloped a ‘new’ innovative market channel
Table 1.
[*] Commercial demand for grade C is very low. These bananas are generally sold in local markets.
Program Examples
previousnew
innovative
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Linking Farmers to Markets
LearnedLessons
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Linking Farmers to Markets
Lessons Learned
• Without incurring additional direct cost, farmers roughly double the gross income received from their banana crops
• Farmer have assumed the role of collection, sorting and grading; and begun to understand and meet traders’ time requirements
• Traders and their staff is justified by the time saved in dealingwith a ‘group’ of farmers (instead of individuals)
• Improvement in agronomic management are just now have an impact (higher qualities and quantities of banana).
• Use of plastic crates has decreased damage and increased thequality and quantity for banana transported per load
Successful Examples
• Traders have explained market specification and gradingcriteria and offered a price differential
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Linking Farmers to Markets
Lessons Learned
5. Develope permanent market linkages.
4. Manage tree gardens to yield tree products that meet market specifications;
2. Focusing on a limited number of species that are appropriatefor local biophysical conditions and have a high marketvalue/demand;
3. Utilizing high quality germplasm (provenance, varieties, etc)to increase productivity and profitability;
Lessons
1. Training workshop series is the foundation of technical assistance provided to program participants, workshop series should be wellorganized
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Linking Farmers to Markets
Lessons Learned
Scaling Up
-Develop a better market linkages forsmallholder Rubber Agroforestry inJambi and Sanggau (Funded by CFC)
- Orang Utan Project in Batang Toru,Sumatera (Funded by USAID)
- Local NGOs (Diantanma, WestKalimantan; Yayasan TenanuaWaingapu and YMTM Kefamenanu,East Nusa Tenggara
• Villages within sub district
• Duplicate & Replicate toanother ICRAF projects
Technical practice and monitoring progress in several farmer groups
Technical Facilitator 1
Inter Technical facilitator coordination
Farmer groups 1, Village A
Technical Facilitator 2
Farmer group 2, Village D
Farmer group 1, Village C
Farmer group 2, Village B
Modified from Nugraha, 2005
Farmers/NGOs in others project
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Linking Farmers to Markets
TerimaTerima KasihKasih Thank YouThank You