NRT 2011 May 23-24, 2011 Manila Session 6: Working with Value Chain for Agriculture Microfinance By: Emiterio Sanson Jr. RBAP-MABS Microfinance Specialist

2. Vegetable Value Chain: The Case of
NorMinVeggies in Mindanao
EMITERIO F. SANSON, JR.
Senior Banking & MF Specialist
11th RBAP-MABS National Roundtable
May 24, 2011

3. • Includes a sequence of activities required to
bring a product (or service) from its
conception to its end use.
• Players along Value Chain: input suppliers,
producers, processors, and buyers. They are
supported by a range of technical, business
and financial service providers”

4. End Users/
Consumers
Human Infrastructure
Resources Marketing
Production
Services Capital
Inputs Equipment

5.  A MARKET FACILITATOR linking the vegetable producers,
organized into CLUSTERS, direct to the buyers.
 Non‐stock, not‐for‐profit organizaIon organized by 15
vegetable producers in 1999.
 Now with 178 regular members, culIvaIng 350 hectares in
Misamis Oriental and Bukidnon.
 Membership include: Individual growers, Small Farmers,
Corporate Farms, Devt FoundaIon, NGOs, COOPs, Input &
Service Providers (Seed Co.)

6. • 5800 farming households produce vegetables;
• Supply more than 70MT/week of assorted
vegetables to Visayas and Luzon;
• Ship about 5MT weekly of assorted semi‐
temperate vegetables to insItuIonal buyers in
Cebu

7. • Low producIvity
• Inadequate logisIcal capabiliIes
• Market and price risks
• Lack of market linkage, informaIon & know‐how
• Lack of farm to market roads
• Fragmented farm and farming acIviIes
• Lack of financing
How are these challenges to vegetable farmers
addressed by the value chain approach?

8. NorMinVeggies
Clustered Small Farmers (8 clusters;
Independent
total 90 growers)– 27 are micro loan
Growers (5)
borrowers of Bukidnon Coop Bank
Supermarkets
Local Market
(Robinsons, Gaisano) Jollibee (bulb Onions)
(bitter gourd, squash,
(bell pepper, lettuces,
eggplants, etc)
brocoli)

9. Clustered Small
Farmers &
Independent
Growers
NorMinVeggies
Jollibee Food Corp Supermarkets Local Markets

11. Jollibee
(buyer)
Norminveggies
Farmer
(producer) (market
facilitator)
KAANIB/CRS/
LGU
Bank (BCB)
(Technical/
(MFI)
Funding/
Logistics)

13. NorMinVeggies
Clustered Small Farmers
Independent
(sweet corn, bell pepper, tomatoes) – Growers
23 are micro loan borrowers of CBMO
Metro Manila and
Mindanao Local
Visayas Local Supermarkets
Markets
Markets

14. Small Farmers &
Independent Growers
NorMinVeggies
Traditional Market
Mindanao Modern Market Traditional/Modern
(supermarket, Markets –
(wet market wholesaler/ Processors)
retailer) Visayas & Luzon

15. Vegetable Value Chain Sub-Sector Map
Retailers End Consumers
JOLLIBEE
Wholesalers
(Mindanao/Visayas/ Supermarkets
MetroManila)
Cebu Market
NORMINVEGGIES
NORMINVEGGIES
KAANIB
Foundation
Independent Farmers Corporate
Growers COOP Farms CRS/LGU
Claveria Vegetable Farmers Tampakan Onion Farmers
Fresh Vegetable, Manila Fresh Onions, CDO Route

16. • New farming technologies;
• Access to packaging, warehousing, and cold
chain services;
• Price informaIon;
• Improved access to finance;
• Entry of produce into markets requiring
volume and quality‐ fasboods, supermarkets, food
processors, consolidators, hotels and restaurants.

17.  Value chain management of NorMinVeggies is strong
due to:
 Constant innovaIons;
 Enabling support from a technical assistance
provider (GEM Project);
 increased parIcipaIon of small farmers in
clustering their farm products;
 Capacity building linkages with micro level retailers
 Enabling technical assistance is key to gedng the
iniIaIve going and strengthening the linkages along
the value chain

18.  A breakthrough in dynamic modern markets with
small farmers parIcipaIng;
 SIll, factors limiIng plans to step up markeIng need
to be addressed:
 Poor farm‐to‐market roads
 Weak credit linkage
 Establishing links with RBs has started to happen
helping address lack of finance
 OpportuniIes for RB financing along the value chain

19.  A strategic approach to comply with“agri‐agra” law.
 CONTACT: Jun Sanson @ 0917‐807‐MABS
Margie Roblezado @ GEM 0918‐804‐1085
Leo Eduria @ NorMinVeggies
(088)8561678; 09209235371

20. Muchas gracias!
Maraming salamat!
Thank you!