Bringing communitybased enterprises to the mainstream market

Upland Marketing Foundation, Inc. (UMFI)

UMFI History-Timelines
1989 – 1992 Upland Marketing Program of Upland NGO Assistance Committee/Philippine Business for Social Progress Land Tenure, Agro-forestry, Marketing Program Mandate – address the marketing concern of upland communities 1992-1994 Training, Information Dissemination, Linkaging DID NOT WORK 1995-1998 Trading and Brokering Limited Success 1999-2001 Marketing Arm – Sales Distributor Accessed Mainstream Markets 2002 onwards Value Chain Management Growth and Expansion

UMFI
Vision
Community-Based Enterprises as mechanisms for local economic development in marginalized communities through the generation of income and employment opportunities that are anchored on the processing / value addition and marketing of local raw materials into high value and marketable products to local and mainstream markets

Mission
Provider of affordable access to appropriate technology, financial resources, and growing markets to community based enterprises Provider of High Quality – Healthy products to the consumers Advocate of Fair Trade in the mainstream markets

UMFI’s Current Operations
Established partnerships with 110 communities nationwide 30 Distribute 8 CBE products 25 to 300 retail outlets 20 nationwide (SM, Ever, Shopwise Supermarkets, 15 Robinson’s, 7-11, Mini- 10 stops) 5 6 yrs of Sustained Growth 0 Total Sales over 6 year = PhP 60.1Million = $1.3M
25.7

17 10.8 5.6 1.8 2001 2002 2003 2004 2005 2006 10

UMFI Development Model

Vehicle for Local Economic Development Community-Based Enterprises
From Poverty to Sustainable Economic Development
TECHNOLOGY
Appropriate Efficient Edge

FINANCIAL RESOURCES Timely Adequate Stability

MARKETS
Defined Stable Growth

Enterprise Development Framework
Technology
Product Development Business/Management Systems

Market –Industry Information Intelligence
Trends Consumer Preferences Competition/ Prices Service Providers Suppliers/ Sources

Financial Resources
Equipment/Facilities Upgrade Working Capital

Link-up
Beneficiaries Business CBEs Partners

Core Outsource

UMFI
Finished Products
Stable Well Packaged Competitive

Market
Quality Products

Fair Price Better Y

15-25%

MARKETABLE

Barriers of Entry
1. Lack of access to the market Price is high, uncompetitive Lack of knowledge on how to open channels to the market Product positioning Licenses and permits-expansion No to limited skills of the production workers Absence of production and quality control systems No or lack of available processing equipments, facilities and water systems Limited sources of packaging materials and supplies Seasonality of raw materials

2. Inappropriate technology

3. Limited financial resources

Limited working capital No to limited financial resources for facilities and equipment upgrades

UMFI’s Evolving Strategies Enterprise Development Value Chain Management

Research, Studies Assessments, Analysis

Input Sourcing

Production

Distribution

Sales and Marketing

Customer Service / Market Feedback

Market Community Industry

Technology Raw Materials

Quality Control Open Channels Sell and Collect Feedback Standards

Follow through Logistic Support Channel Maintenance Production Inputs Costs/Pricing Deliver/Mdse Advertise/ Promote Skills/Systems/Structure

Addressing the bottlenecks along the chain Identify and build the Core Business Link up and/or Outsource to create Business is partnership

UMFIs Innovations: Lessons Learned
1.

2. 3. 4. 5.

Constant Monitoring and Assessment of the environment Hiring competent people Transparency with partner communities Benefits of organizing Learning organizations

Primary Clients: CBEs in Sustainable Development
Sustainable Forest/Resource Management -Non Timber Forest Products Sustainable Agriculture - Use of appropriate Farming Technology - Organic Farming - Non Destructive/ Environment Friendly Sectors in Partnership - Indigenous Communities - Agrarian Reform Communities - Coastal Communities - Micro-Small Enterprises

Project Sites

Baguio Isabela Nueva Vizcaya Nueva Ecija Pangasinan Mindoro Camarines Sur Sorsogon Antique Palawan Cebu Samar Zamboanga Surigao del Norte Bukidnon Davao del Sur South Cotabato

UMFI Products

Healthy Rice-organic rice
Before After

Healthy Rice New Label

Newly launched in-house brand

Access to the Market Healthy rice at the selling area of the supermarket

Sta. Lucia East Mall Cherry Foodarama

UMFIs Facilities

Food Laboratory Warehouse Repacking Area

Access to Technology

Skills Training of CBEs

Access to processing tools and equipment upgrade