Professional Documents
Culture Documents
FIRM INFRASTRUCTURE
FINDINGS CONCERNS RECOMMENDATIONS
Producers need to comply The process of getting Provide support to farms
with standards and certified is long and and enterprises that want
requirements for organic entails strict adherence to to undertake or convert to
production and obtain the requirements set by organic farming or
certification prior to the certifying body. Only a production by
marketing of their few producers apply for disseminating information
products as organic organic inspection and on the requirements
produce. certification. Some firms needed for certification,
have difficulty establishing a source for
maintaining their handling technical
compliance with such inquiries and related
standards. matters. Tax incentives
may also be considered
for organic producers.
These measures could be
established with the
cooperation of
government and the BSOs
in the organic sector.
Producers
Small lack capital
producers have to Lacksituation
This of properlimits
equipment,
the Government
Provide canon
support provide
loan a
invest in
limited equipment
capability to facilities and
resources and operating
capacity of special guarantee
requirements or
and make
acquisition,
prepare facilities
proposals and capital
small limits the
producers to make funding mechanism
available a special
upgrading andrequirements
documentary even for production
capital capability
investments thatof available formechanism
guarantee organic
production
of and processing
financing institutions to farmers
can and organic
improve product producers. to
responsive This
thecan be
financial
activities.
obtain loans. processors.
quality and quantity. undertaken
needs in
of organic
coordination
producers. Tap with
thethe
helpDTI,
of
the
DA, DTI,
DOSTDA,and DOST and
government
SBGFC,
financialamong others.
institutions.
INBOUND LOGISTICS
INBOUND LOGISTICS
Findings Concerns Recommendations
Human Resource Management (continued)
Producers have limited Producers are not Conduct training on
knowledge on new encouraged to make their production of desired
developments regarding own organic inputs. They organic inputs within the
composting process and resort to buying organic growers' own farms.
microbial preparations inputs which add to their Support private sector
such as vermi-compost and cost or may use advocates that conduct
natural farming. conventional inputs. extension services on
composting process and
microbial preparations
that utilize farm by-
products.
Some farmers do not Lack of commitment and Develop effective,
honor the terms of pole vaulting of some mutually beneficial
contract growing farmers will damage partnership in contract
arrangements. This may be relationships with partners growing activities by
due to calamities and and in the long term lead providing values
farmers' interest to to financial losses due to orientation, shared equity
increase their income loss of loyal buyers. arrangement and other
given their financial forms of social
constraints. preparations to enable
farmers to respect the
terms of contract growing.
Technology Development
Average yield in organic The perception that yield Develop and sustain
production is perceived to is lower discourages organic conversion process
be lower or at par with potential organic teams which can transfer
that of conventional producers. If technologies technologies to farmers
methods during the related to conversion are and producers nationwide.
conversion stage. not disseminated, organic Conduct massive
production output will be information drive to
limited. correct misconceptions
pertaining to organic
farming and to highlight
success stories.
Receiving records are Inefficient recording will Develop and set up a
lumped for both organic cause incorrect inventory recording system that
and conventional products, and will make traceability allows for a clear
particularly among small of organic product from its separation of organic from
scale enterprises. source difficult or conventional products,
impossible. including proper labeling
of organic products.
Farm produce are not Contamination or co- Develop a system that
segregated properly mingling of organic allows segregation of
according to categories ( produce with non-organic produce with different
organic, in-conversion or results from improper organic qualities during
conventional) during segregation. storage.
warehousing/ stocking.
Background 55
INBOUND LOGISTICS
Findings Concerns Recommendations
Procurement
Supply of organic inputs Lack of appropriate inputs, Develop a database of
either produced in farm or quality and quantity-wise, suppliers with indications
purchased is insufficient, will hamper production as to the quantity and
inappropriate, and/or not and producers will not be quality of organic inputs
of desired quality. able to serve orders. that they can provide.
Disseminate information
from the database to
producers.
Planting materials maybe If reliable sources of Undertake mapping of
treated with chemicals not organic seeds, planting organic producing areas in
allowed in the national materials and fertilizers the country to identify
standards for organic are limited or not widely sources of inputs and
produce; certified organic disseminated, producers verify their process.
fertilizers are not will not be able to turn Screen the sources and
available or are limited in out organic produce which establish a data base
quantity. complies to standards. system of reliable sources.
OPERATIONS
OPERATIONS
Findings Concerns Recommendations
Human Resource Management (continued)
Farmers/producers and Insufficient knowledge on Provide and sustain a
processors do not have improving productivity training program on
enough orientation and leads to lower yields and productivity to
understanding on the outputs. farmers/producers and
process involved to processors through tie-ups
increase productivity of with government agencies
organic farms and like DA, DTI, TESDA and
processing plants. DAP as well as the
academe.
Organic processing needs Knowledge and application Provide training on GMP
trained/skilled personnel of quality management and HACCP to producers
in order to comply with systems such as GMP and involved in processing.
established standards such HACCP are a must in the Avail of existing
as GMP (good food trade in order to be GMP/HACCP training
manufacturing practices) competitive in the market programs provided by
and HACCP (hazard PTTC-DTI, DOST and Food
analysis and critical control Development Center
points). (FDC).
Technology Development
R & D on organic farming Extensive R & D is needed Government and academic
technologies up to product to increase knowledge, research institutions
packaging is insufficient improve current should link up on R & D
technology and practices, programs for the organic
expand industry prospects sector. Explore partnership
and enhance its with foreign academic
competitiveness institutions which are
supportive of the organic
movements. Conduct
scientific conference on
organic agriculture
researches and provide
awards to best organic
researches.
For small processors, Documentations and Government together with
quality management upgrading of quality the organics BSO must
systems are either absent assurance facilities are develop a scheme or a
or undocumented. required in order to obtain support system that will
certifications for quality enable small firms to
as well as environment access services on
management systems. management systems such
as QMS and EMS and their
certifications. This system
can include a funding
mechanism to enable the
firms to acquire the
needed QA equipment.
Background
Value Chain Analysis 57
OPERATIONS
Findings Concerns Recommendations
Technology Development (continued)
Operation planning is still Production season may not Adjust operation planning
oriented with production correspond to the time so that production season
season and not on market that the market requires is timed with the market
forecast, a general it. Thus, if operation demand. Develop
problem in the agriculture planning is not based on production technology in
industry market requirement, the order to produce during
best price for the produce off-season. Provide access
is not obtained or the to producers for cold
opportunity to maximize storage facilities and
income is lost. greenhouses.
Shell-life/ freshness of Short shelf life of organic Conduct R & D on
fresh fruit/vegetables produce leads to lower packaging and storage
geared for retail outlets is prices, wastage and lost conditions that can extend
limited. Studies are sales the shelf life of organic
needed to determine produce. Encourage the
optimum packaging and establishment of the cold
conditions, as well as chain system through
facilities providing private sector investment
favorable transport and or government
storage conditions, intervention. Identify
existing service providers
and set-up a mechanism
that allows small producers
to avail of their facilities.
Facilities and equipment Poor cleaning procedures Establish proper cleaning
are utilized for both may result in procedures for equipment
conventional and organic contamination of organic used in both conventional
products. product. and organic farming and
disseminate the same to
farmers.
Equipment and tools are Old or obsolete equipment Identify appropriate and
often old and nearing leads to low productivity affordable equipment for
obsolescence. and wastage. organic production and
work out a scheme for the
acquisition of the same by
producers at comfortable
terms.
Procurement
Price monitoring of Knowledge of price trends Conduct price monitoring
organic inputs, raw of inputs, raw materials at farmer's or cooperative
materials and products is and products is necessary levels. Set up a mechanism
not seriously considered. in negotiating with to disseminate price
suppliers and in setting a information widely and
competitive price. regularly.
58 State of the Sector Report - Philippine Organic Products
OPERATIONS
Findings Concerns Recommendations
Procurement (continued)
Small processors need toll Common service facilities Identify and tie-up with
packaging/ common or similar set-ups will help existing toll packing/
service facilities for their small processors to save on common service/
processing operations investments needed to put incubation facilities
up a plant. These are operated by government
useful for trial production academe and private
while they explore the sector.
market initially
OUTBOUND LOGISTICS
Human Resource Management
Staff of most companies Manual recording makes Provide training on
employ manual recording file retrieval and electronic database
of outbound operations consolidation laborious management and analysis
which has been found to staff of processors
inefficient.
Small companies do not Tracking sales transactions Provide training on
segregate accounting of organic is difficult if separate accounting
records and systems for mixed with other records. system appropriate for
organic products. small producers/processors
of organic products.
Technology Development
The organic sector has not The use of ICT can Government and the
generally availed of the improve transactions with organics BSO should help
advances in information the market, reducing time disseminate information
and communication and cost for producers. on the advantages and
technology to help applications of ICT.
optimize outbound Develop transaction
operations. facilities using ICT.
Appropriate transport Lack of proper transport Identify technologies that
facilities for moving undert required conditions can be applied for proper
organic produce to can lead to wastage and transport of organic
markets are limited. reduce income. products and pool
resources of producers for
access and use of such
facilities.
Current packaging design is Lack of distinction of Conduct R & D on
not distinct for organic organic produce from appropriate design for
products and is similar to conventional products organic packaging which
that of conventional leads to lower consumer promotes the benefits of
products. awareness and lost sales. these products.
Background
Value Chain Analysis 59
OUTBOUND LOGISTICS
Findings Concerns Recommendations
Procurement
Sourcing of packaging Lack of these features in Tap the support of
materials which are packaging materials for agencies such as the
natural, bio-degradable, organic produce limits the PRDCP and DOST and the
and consistent to the use of packaging as a private sector to help
lifestyle promoted by marketing tool to promote source appropriate
organic products is not the benefits of organics. packaging materials.
usually done.
Appropriate packaging for Appropriate packaging can Develop partnership with
organic products such as enhance the market packaging suppliers/
biodegradable packaging is positioning and protect associations to identify
either not available or is the products. and source packaging
costly for the small materials appropriate for
producers/ processors organic food and to
because minimum volume provide a mechanism for
required by suppliers to the small producers/
sell the packaging is high. processor to buy these in
volumes affordable to
them.
Payment terms, delivery Small organic producers do The organics BSO should
schedules, listing fees and not benefit from the negotiate with
other requirements of wider coverage and supermarkets on
large chains of exposure given by large favorable arrangements
supermarkets are not store chains. for the benefit of small,
friendly or beyond the regional producers and
reach of small producers explore tie-up with
marketing intermediaries
that consolidate products
of small producers.
MARKETING AND SALES
Human Resource Management
Marketing skills of Marketing of organic Provide training on
enterprises are usually products is not effective if marketing and develop/
gained from selling skills employed are enhance marketing skills of
conventional products and designed for conventional enterprises. Enhance the
using conventional products capability of organic farm
methods. owners to utilize farm
tours as tools to raise
awareness of consumers.
Small producers usually Lack of marketing skills The organics BSO should
lack marketing limits sales as well as link up with NGOs
experience. consumer awareness. involved in marketing
organic produce and work
out a training or mentoring
system for small
producers.
60 State of the Sector Report - Philippine Organic Products
Technology Development