Professional Documents
Culture Documents
With the help of the Facilitator and the Cluster Advisory Group
(CAG), Step 5 aims to enable the newly formed clusters to:
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Step 5. Cluster Plan Formulation
5.2 INTRODUCTION
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Step 5. Cluster Plan Formulation
Agroenterprise Agroenterprise
identification & Agroenterprise performance
planning implementation
evaluation
Feedback
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Step 5. Cluster Plan Formulation
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Step 5. Cluster Plan Formulation
These are the basic tools that guide each cluster member
effectively support the agroenterprise plan and its
implementation.
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Step 5. Cluster Plan Formulation
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Step 5. Cluster Plan Formulation
TRANSPORT FOR
CONSOLIDATION
Sort defects from good
beans
SORTING
CULTURAL
MANAGEMENT Pruning, weeding,
rejuvenation
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Step 5. Cluster Plan Formulation
Respon- Timeframe/
Component Task Remarks
sible Date
Quality & Cluster March 10
Quality Control
moisture Leader
check of
beans
Consoli- Cluster March 12
Consolidation
dation of Leaders
coffee
beans
Delivery Facilitator March 13
Marketing
to Nestle & Cluster
Leaders
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Step 5. Cluster Plan Formulation
The test deliveries are a way to try out if the plans made are
appropriate or if they need adjustments. During the test
marketing, the performance is monitored right after each
product delivery so that the problems are immediately
corrected before the next delivery. To assist the clusters in the
monitoring is a delivery monitoring form.
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Step 5. Cluster Plan Formulation
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Step 5. Cluster Plan Formulation
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Step 5. Cluster Plan Formulation
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Step 5. Cluster Plan Formulation
AGROENTERPRISE PLANNING
A. PLANNING WITH SWOT ANALYSIS
AGROENTERPRISE PLAN
Coffee Cluster
Maragusan, Compostela Valley
Plan for the Third Delivery (February 24, 2006)
Basic PARTICULARS
Element/
Information
A. Marketing Plan
• Nestle Philippines, Inc. and other coffee buyers
1. Target • Test deliveries for the first month then regular
Market deliveries in the succeeding months until the end of
the coffee season
• Product form – Green Coffee Beans
2. Product • Quality specs – moisture content (MC) not more
than 12%, sorted coffee beans with minimal defects
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Step 5. Cluster Plan Formulation
B. Production/Supply Plan
• 5 clusters (comprised of 28 farmers from 5
1. Supply barangays: Mahayahay, Parasanon, Saranga,
Source Magcagong & Tupas)
• Total committed volume of the 5 clusters: 2,590kgs
• One week before the scheduled delivery, the
Cluster Leaders finalize their plan based on actual
capacity to supply. Those with less harvest than
their commitment shall be supplemented by the
other clusters
Two weeks before delivery (Last week of February)
2. Operational • Start of harvesting of coffee berries
Flow • Start of pulping & drying
(from the
farm to the Five days before delivery (March 8, 2006)
buyer) • Start of milling of dried cherries
• Volume check by the Cluster Leaders
• Start of bean sorting/quality improvement
• Contact truck
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Step 5. Cluster Plan Formulation
C. Management Plan
• Farmers are organized into clusters. The cluster is
1. Organiza- a supply unit.
tional & • Each cluster has a cluster head and an assistant
Manage- cluster head.
ment Set Up • Decisions are done with the 9 clusters heads
constituting the leadership of the group guided by
the Marketing Officer of the implementing NGO.
• Cluster Leaders are responsible for checking their
members if their coffee is ready and to check the
quality of their coffee
• Since the Tupas Cluster has no prior experience in
test delivery, the Cluster Leader who has
participated in the first two deliveries will
accompany the truck
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Step 5. Cluster Plan Formulation
D. Financial Plan
1. Cluster Map
2. Cluster Agreement
3. Planting Calendar or Harvest Calendar (per cluster
and for all the clusters)
4. Product Quality Management Plan
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Step 5. Cluster Plan Formulation
Cluster Map
Maragusan Coffee
Agreement
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Step 5. Cluster Plan Formulation
Cluster Agreement
___________________
Cluster Leader
Operational Plan
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Step 5. Cluster Plan Formulation
Volume
Maragusan Coffee Clusters commitments per
member
Product Flow & Forms Used
Day Activity
• Harvesting pulping, drying & milling of coffee berries
Before
• Volume check
Delivery
• Quality improvement (appearance & moisture content)
Day
• Contact truck
Delivery • Truck departs for Davao City at 3:00 am
Day • Arrives at Nestle Buying Station at 8:00am
Start of bean
Start of milling Verify available sorting/quality Contact
of dried berries volume improvement truck
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Step 5. Cluster Plan Formulation
No. of Commitment
Cluster/Cluster Leader
Members (in kg)
To be finalized by To be verified by the
Mahayahay / R. Balucos the Cluster Leader Cluster Leader
To be finalized by To be verified by the
Parasanon / A. Rosel the Cluster Leader Cluster Leader
Saranga / A. Jacob 7 800
Tupas / J. Banag 13 620
Magcagong / D. Arriesgado 9 1,170
Total 29 2,590
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Step 6. Test Marketing
Test Marketing
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Step 6. Test Marketing
6.2. INTRODUCTION
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Step 6. Test Marketing
Good practices:
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Step 6. Test Marketing
1. Reporting
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Step 6. Test Marketing
Planned vs.
Periodic Actual
reporting results
ENTERPRISE Adjustments/
PLAN Contingency
Planning
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Step 6. Test Marketing
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Step 6. Test Marketing
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Step 6. Test Marketing
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Step 6. Test Marketing
Supplier: Address:
No. of Gross Sack weight Net Weight
bags Weight (No. of bags x (Gross wt – Variety: Robusta Arabica
0.2) sack wt)
Broken ÷ 15.0
Immature ÷ 25.0
Insect-damaged ÷ 35.0
Admixture ÷ 5.0
Triage: Grade 1 (0-8), Grade 2 (9-12) Moisture: More than 12% - Reject
Triage (A / B) Grade Total Amt. (Price/kg x Net wt) Balance (Total amt – Partial payment)
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Step 6. Test Marketing
B. MONITORING DELIVERIES
Enterprise Corrective
Component Planned Actual Measures Tasking
st
1 delivery Arrival at Truck Clockwork in Cluster
the port at 6 arrived late consolidation Leader to
SUPPLY AM (10 AM), the to be do
PLAN boat already followed; clockwork
• Operational left new truck check; Hire
Flow has to be truck
hired
nd
2 delivery 23 kg/crate Buyer Weighing NGO
complained scale to be Marketing
MARKET of varied used during Staff to
PLAN weights of packaging procure
• Market product (21- weighing
(quality) 25 kg/crate) scale;
Cluster
SUPPLY Leaders to
PLAN explain to
• Materials, members
equipment the use of
& facilities scales
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Step 7. Scaling Up
Scaling Up
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Step 7. Scaling Up
•
o Higher product supply to match the increasing
demand of existing buyers (example: more coffee
supply to Nestle from additional clusters)
•
o Higher product supply to respond to a more,
diversified market (example: a supermarket buyer in
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Step 7. Scaling Up
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Step 7. Scaling Up
For clusters that are ready for scaling up, the process they
follow in planning is the same provided in Step 5. They
integrate their market, production or supply, management and
financial plans, formulate their operational plans and list the
critical activities to marketing of their product(s). What will
matter in scaling up success is how integrated are the plans
and how tightly coordinated are the needs and activities.
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Step 7. Scaling Up
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Step 7. Scaling Up
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Step 7. Scaling Up
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Step 7. Scaling Up
Below are some tips for clusters that intend to scale up their
operations:
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Step 8. Cluster Strengthening
Cluster Strengthening
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Step 8. Cluster Strengthening
8.2 INTRODUCTION
1. Organizational Development
2. Market Position
3. Supply Capacity
4. Financial Resources
5. Management Capacity
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Step 8. Cluster Strengthening
Organizational Development
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Step 8. Cluster Strengthening
ENABLED EMPOWERED
DEPENDENT
Maturity Indicator
Level
1 Core group of 5 producers with at least 1 lead
producer. NGO staff primarily organizing group
activities.
2 Cluster formed with cluster leader (s). Cluster has:
a) Meetings
b) Common production and market plans
c) Verbal agreements
3 Cluster has regular meetings called by its cluster
leaders, with written agreements, and written policies
4 The cluster is functioning independently; able to:
a) Implement enterprise plans (marketing and
supply)
b) Have regular assessments
c) Have written financial reports
5 The cluster is in a network with other clusters; able to
work with other clusters as part of a common business
entity.
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Step 8. Cluster Strengthening
Market Position
ARRANGED/
RANDOM / SPOT BUYER NEGOTIATED
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Step 8. Cluster Strengthening
Maturity Indicator
Level
1 Market penetration with trial deliveries
a) At least 50% of market plan accomplished in
target product volume.
b) Getting to know stage with the buyer(s)
2 Market is strengthened
a) Markets are maintained and product volume is
scaled up.
b) There is build up of buyer relations.
3 Market is developed with more buyers who can offer
stable arrangements.
a) More buyers tapped.
b) Markets entered into are for longer term
agreements.
c) Special pricing negotiations done.
4 Markets are diversified
a) New products (value added)
b) Clusters pursue market research for higher value
markets
5 Network of support is established (business services in
the chain).
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Step 8. Cluster Strengthening
Supply Capacity
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Step 8. Cluster Strengthening
Maturity Indicator
Level
1 Product supply coming out from the cluster for the joint
marketing
a) At least 50% of planned supply is accomplished
b) Production calendar
2 • Regular product supply coming out based on the
enterprise supply plan.
• Cluster members can supplement each other’s
supply in times of deficit. (coordination for back-up
supply, farm records)
3 • Production technologies are in place for reliable
quantity and quality standards of at least 80% of
the cluster members
• Production protocols (best practices), supply
delivery monitoring system
4 Value addition in the supply:
a) Value added existing products (packaging,
labelling)
b) New products, new markets
c) Value addition measures implemented; better
logistics in place
5 Distinct products
a) Preferred products with the buyers
b) Products carry the name of the supplier
c) “Quality is in our growers”
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Step 8. Cluster Strengthening
CO-MANAGED INDEPENDENT
ASSISTED
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Step 8. Cluster Strengthening
Maturity Indicator
Level
1 Enterprise plan and operation plan are formulated.
(80%)
a) NGO facilitated the process.
b) Product consolidation & market facilitation
procedures tried out.
2 Cluster leaders and assigned management people are
functioning. (60%)
a) Roles and responsibilities spelled out.
b) Task related trainings done.
c) Agreed scheme of remuneration tried out.
3 Operational plan review is routinely done. (40%)
a) Agreed scheme of remuneration established.
b) Business operating systems in place.
4 • Enterprise plan enhanced to address new
opportunities. (20%)
• Performance based incentives
• Institutionalization
5
• Structure, management set up, policies and
systems to ensure high performance of business
activities
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Step 8. Cluster Strengthening
Financial Resources
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Step 8. Cluster Strengthening
Maturity Indicator
Level
1 With external financial support
a) Trainings, capability building
b) Market operating funds
2 Cluster start to experience marketing earnings (not
regular yet).
a) Enterprise transactions are recorded.
b) Service fees (management and/or marketing are
initially paid)
3 Marketing earnings are more predictable (and regular).
a) Financial reports are done and discussed in the
cluster meetings.
b) Service fees pay part of the marketing &
management costs.
c) Financial systems are in place.
4 Capital build-up scheme from joint marketing is
established.
a) Individual
b) Organizational
c) Service fees are used to pay in full the marketing
and management costs.
5 Clusters have generated funds for business investment.
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Step 8. Cluster Strengthening
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SUMMARY MATRIX OF KEY AREAS, LEVELS OF MATURITY, AND INDICATORS OF AGROENTERPRISE MATURITY
Level Development Capacity
Core group of 5 producers with Market penetration with trial Product supply coming out Enterprise plan and operation With external financial support:
at least 1 lead producer. NGO deliveries: a.) At least 50% of from the cluster for the joint plan are formulated. (80%): a.) a.) Trainings, capability building
1 staff primarily organizing group market plan accomplished in marketing: a.) At least 50% of NGO facilitated the process. b.) b.) Market operating funds
activities. target product volume. b.) Getting planned supply is accomplished Product consolidation & market
to know stage with the buyer(s) b.) Production calendar facilitation procedures tried out.
Cluster formed with cluster Market is strengthened: a.) Mar- Regular product supply coming Cluster leaders and assigned Cluster start to experience
leader/s. Cluster has: a.) Meet- kets are maintained and product out based on the enterprise management people are func- marketing earnings (not regular
ings b.) Common production and volume is scaled up. b.) There is supply plan. Cluster members tioning. (60%): a.) Roles and yet): a.) Enterprise transactions
2 market plans c.) Verbal agree- build up of buyer relations. can supplement each other’s responsibilities spelled out. Task are recorded. b.) Service fees
ments supply in times of deficit. (coor- related trainings done. b.) Agreed (management and/or marketing
dination for back-up supply, farm scheme of remuneration tried out. are initially paid)
records)
Cluster has regular meetings Market is developed with more Production technologies are in Operational plan review is rou- Marketing earnings are more
called by its cluster leaders, buyers who can offer stable place for reliable quantity and tinely done. (40%): a.) Agreed predictable (and regular): a.)
with written agreements, and arrangements.: a.) More buyers quality standards of at least scheme of remuneration estab- Financial reports are done and
3 written policies tapped. b.) Markets entered into 80% of the cluster members. lished. b.) Business operating discussed in the cluster meetings.
are for longer term agreements. Production protocols (best prac- systems in place. b.) Service fees pay part of the
c.) Special pricing negotiations tices), supply delivery monitoring marketing & management costs.
done. system. c.) Financial systems are in place.
The cluster is functioning inde- Markets are diversified: a.) Value addition in the supply: Enterprise plan enhanced to Capital build-up scheme from
pendently; able to: a.) Implement New products (value added) b.) a.) Value added existing products address new opportunities. joint marketing is established:
enterprise plans (marketing and Clusters pursue market research (packaging, labelling) b.) New (20%): a.) Performance based a.) Individual b.) Organizational;
4
supply) b.) Have regular assess- for higher value markets products, new markets c.) Value incentives c.) Service fees are used to pay
ments c.) Have written financial addition measures implemented; in full the marketing and manage-
reports better logistics in place ment costs.
The cluster is in a network with Network of support is estab- Distinct products: a.) Preferred Institutionalization: Structure, Clusters have generated funds
other clusters; able to work with lished (business services in products with the buyers b.) management set up, policies and for business investment.
5 other clusters as part of a com- the chain). Products carry the name of the systems to ensure high perfor-
mon business entity. supplier c.) “Quality is in our mance of business activities
growers”
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Step 8. Cluster Strengthening