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VCA

Assessment
Marites M. Tiongco, Ph.D.
Agricultural Value Chain Expert and Deputy
Team Leader, Asian Development Bank
Full Professor, DLSU School Of Economics
Agribusiness, Agripreneurship,
Market Development and Private
Sector Mobilization Services

December 14, 2021 MMT-VCA Assessment 2


Highlights of Accomplishments: 2011-2017
• Under AFMP 2011-2017, the Agribusiness and Marketing Assistance Service
(AMAS) is responsible for the agribusiness and market development support
services.
AFMP Target Accomplishment Gaps and Recommendations
Conduct of market research, benchmarking, and 2 benchmarking studies and market research Limited human resources and knowledge on
competitiveness analyses on priority on coffee and squash (2012) market research: training or mentoring on
commodities the Web-based Information RMA of regional staff with partner research
System for Entrepreneurs-Producers (WISE), an institutions, led by AMAS/MDD
on-line data warehousing and reporting system
and markets in close coordination with the
private sector and SUCs

Support value chains through (a) Value chain analysis on pili Extensive database: domestic supply and
consultations with industry stakeholders WISE, an on-line data warehousing and demand for priority commodities, export and
to identify priority areas of interventions; reporting system being operationalized. import by country of destination, prices, cost
(b) track agribusiness investments in the and returns analysis, and shares of cost and
value chain and prepare policy profit among key players in the commodity
briefs/proposals for potential investors; supply chain/value chain
and (c) establish extensive database at
the provincial and regional level for
commodity supply/value chain analysis
December 14, 2021 MMT-VCA Assessment 3
Highlights of Accomplishments: 2011-2017
AFMP Target Accomplishment Gaps and Recommendations
Facilitate arrangements for food
processors, manufacturers and
exporters to source their raw materials
from MSMEs and small farmer and
fisher cooperatives and groups
Promote agricultural and fisheries-based 16 international trade fairs 15 *Continue monitoring book sales and sales under
products in local and international local trade fairs by 160 negotiation to determine the number and types of
markets through participation in exhibitors/enterprises enterprises that forge marketing contracts and those
national and international trade fairs
and exhibits, selling missions, market that sustain the supply of agri-based products to local
matching initiatives, and other and foreign markets.
promotional activities. Partnerships with *Strengthen partnership with DTI to further enhance
DTI, agricultural attachés, LGUs, and the provision of agribusiness and market development
private groups are strengthened services through cost-sharing and staff
complementation in sponsoring investment fora, trade
fairs and exhibits for agricultural and fishery products
in the domestic and foreign markets.
Conduct livelihood training and 21 international fora with 1,830 Evaluation of investment fora and enterprise
seminars for overseas Filipino participants development seminars must be undertaken to
workers (OFW), out of school 28 local investment fora with determine the type of investment the participants have
youth, farmers and farming 1,363 participants, and 14 engaged in and the effectiveness of the seminar
household members, and other enterprise development
stakeholders seminars with 631 participants,
including OFWs
December 14, 2021 MMT-VCA Assessment 4
Highlights of Accomplishments: 2011-2017
AFMP Target Accomplishment Gaps and Recommendations
Monitor the status of the 10 out of the targeted 23 Agri-
marketing infrastructure such as Pinoy Trading Centers (APTCs)
trading centers and food terminals completed and operational.
established by the DA with private
sector participation 22 municipal food terminals and
9 barangay food terminals are
still on-going or for launching.
30-40% of the total food
terminals are non-operational.

Provide reliable market Price information twice a week, Create a Management and
information through active uploaded in price watch website Technical Working Group to
AFMIS of the DA-Information and operationalize the AFMIS
Communications Technology Maintain a close coordination
Service (ICTS). between DA and PSA to ensure
collection of relevant agriculture
data

Source: AFMP 2011-2017


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Some Examples of Value Chain

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VCA Rice-
Based
Commodity
System

Source: Rice Knowledge Bank. (n.d.) Off-field rice straw management. Retrieved from http://www.knowledgebank.irri.org/step-by-step-
production/postharvest/rice-by-products/rice-straw/off-field-rice-straw-management

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VCA Examples
Commodity VCA Segments
Banana input provision/pre-production, production, post-harvest
consolidation and packing, trading and distribution, and final or
retail sales
Cacao input provision, nursery operation, cacao production, local
trading, processing, and exporting
Coconut
Coffee nursery development and farm inputs, farm production, primary
processing, trading, secondary processing, market, and logistics
Mango input supply, production, trading, processing, export, and final
retail sales

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VCA Examples
Commodity VCA Segments
Mango input supply, production, trading, processing, export, and final
retail sales
Rubber input supply production/farming, processing (rubber sheets,
crepes and crumbs, marketing, distribution

December 14, 2021 MMT-VCA Assessment 9


Input Provision, Supply, Pre-Production
Strengths Opportunities Constraints
• available new and • PRDP and other • limited technical information of
improved technologies grants provide government agencies on the commodity
particularly on planting grants in production • conversion of agricultural areas to real
materials and trading estate
• inadequate supply of good quality
seedlings/planting materials
• lack of seedling production center
• high cost of farm inputs
• improper handling of seeds
• lack of trained propagators and trainers
• adverse effect of climate change
• weak bargaining power
• insufficient feeds and water supply

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Production
Strengths Opportunities Constraints
• existing and potential areas for the • growing need for • climate change
commodities plantation type • increasing volume of imported
• third party certification on approach to products
sustainability production • poor peace and order situation in
• Philippine land and climate suitable • introduce new some products; strict farm credit
for growing product varieties approach in • declining commodity production
• year-round production treatment of pests and productivity from low adoption
technologies are available and diseases of improved technologies
• NorMinVeggies: allowed family • conversion of agricultural areas to
farmers to learn from independent real estate
farmers; quality assurance • some commodities are treated as
schemes, production schedules, augmentation crops
traceability systems • presence of pests and diseases

December 14, 2021 MMT-VCA Assessment 11


Primary and Secondary Processing
Strengths Opportunities Constraints
• improved production, • superior quality of • high perishability of postharvest and
postharvest, and some commodities processing technologies
processing technologies • some products offer • high cost of investment
are available zero-waste • use of chemicals in the processing of
utilization some materials in the factories
• limited drying and storage facilities
• contaminated products with dirt, sand,
and other foreign objects affecting
quality
• decreased export demand due to bad
publicity
• packaging does not meet standards of
potential high-end market

December 14, 2021 MMT-VCA Assessment 12


Local Trading, Market
Strengths Opportunities Constraints
• existing quality standards • increasing • poor farm-to-market roads
• stable domestic and global awareness on green • poor condition of building and
markets economy inadequate facilities
• NorMinVeggies: leveraged • emerging new • far and crossing rivers
larger volumes and markets • lack of collective marketing system
reliable quality to bypass • entry of new • emergent substitutes for the product
various layers of players, encouraging • low level of consciousness on product
traditional middlemen and competition and quality and standards
engage directly with a pushing prices • limited market information on industry
range of markets products
• limited supply at the processing levels
• weak implementation of regulations

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Final Sales, Logistics, Exporting
Strengths Opportunities Constraints
• strong linkage between • domestic market is • loose coordination among VC players
and among industry vastly undersupplied • high transport cost
players • impending global • stiff competition from other countries
• NorMinVeggies: supply shortfalls on selling related products
established consolidation some products, • some products are not well-promoted in
center to improve demand on upward lowland areas
efficiency trend • imported products are cheaper
• law stipulations on
the use of specific
domestic products

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Climate Change Adaptation and Livelihood Transformation
• Climate-Smart Value Chains in Smallholder Agriculture
• Climate change threatens long-term benefits of agricultural value chain
projects that aim to reduce poverty and improve livelihoods of small
farmers
• 5-Step Process Design:
1. Selection of the value chain
2. Identification of key climate risks in the value chain
3. Choice of the most effective climate interventions
4. Targeting those most vulnerable to climate risk
5. Reaching scale with climate interventions

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Climate Change Adaptation and Livelihood Transformation
• Climate-Resilient Agriculture (CRA) Interventions
• Interventions improve agricultural productivity, increase climate resilience,
and reduce greenhouse gas emissions
• Agricultural transformation in the Philippines to thrive under climate change
conditions
• adopting integrated landscape approaches;
• empowering farmers and farmer organizations;
• digitalizing the agriculture sector;
• mainstreaming low-emission development;
• improving access to financial platforms;
• enhancing social inclusion; and
• educating consumers and producers.

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Climate Change Adaptation and Livelihood Transformation
• One of the explored cases of climate change adaptation in the Philippines is the use of
water buffalo as a means for sustaining livelihood in the midst of uncertainty in the climate.
• In the Philippines, typhoons, flood, and other impacts of climate change has caused
recurring crop failures, forcing some smallholders to shift from crop to livestock production.
• In the event of preserving livelihood, there is an increasing trend in shifting to water buffalo
dairying. Water buffalo dairying has been deemed to be a more stable source of income
due to the opportunities and options it offers.
• Farmers’ livelihood survival strategies and the institutional dynamics in the localities are
two important factors to local adaptation.
• The adoption of water buffalo serves as an economic asset base for farm households and
represents socio-cultural values that boost the farmers’ adaptive capacity. The adoption of
dairy buffalo production also emanated from the Carabao Development Program (CDP).

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Modification to the Value Chain
Analyses

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Key Observations in the State of Ph Agri-food Value
Chain (VC)
• As in other developing economies, there has been rapid but
differentiated transformations of agri-food value chains in the country
• VC development needs to look at the government’s role and its
measures from both the supply and the demand side.
• Mature agri-based value chains (or those chains that have existed for a
fairly long period of time) dominate in the rice, coconut, and sugar
products
• Disruptive value chain segments, e.g., production disruptions due to
poor policy implementation, pests and disease spread and severe
weather events, lack of refrigerated storage, combined with port
congestion that led to increased wastage through spoilage of
perishables.
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Components
of Food
Systems

Source: adapted from Figure 1 of Brower, I., J. McDermott, R. Ruben, 2020. Food systems everywhere: improving relevance in practice.
December
Global Food 14, 2021Sustainability 2019, 11, 171; doi:10.3390/su11010171
Security. MMT-VCA Assessment
www.mdpi.com/journal/sustainability 20
Components of Food Systems
•Supply Side
1. Agri-based food value chains
• Upstream, Midstream, Downstream
2. Food environment
• Availability and affordability of the commodities and food products
• Requisites of information, promotion, advertising, communication
• Attributes on food safety and quality
•Demand side
3. Consumer behavior

December 14, 2021 MMT-VCA Assessment 21


Food Key features of value-added in food value chains
Systems
Framework Definition of Value-added

Emphasis is given
on the midstream Value-added agriculture
to downstream
segments where
Conditions of Value-added activity
additional value
creation processes
occur. Scope of Value adding in a Value Chain

22
Food Chain’s Value Addition Ladder
• Traditional VC
• Chains are fragmented and spatially short linking consumers to wet or public markets and
producers and operators are mostly family owned using less hired labor and little capital
• Price takers on inputs, vulnerable to supply disruptions
• Transitioning VC
• Supply chains are long, and operations depend on hired labor
• Multiple stages between farm and retail are poorly integrated and fragmented
• Modern VC
• Closely interlinked from farming to midstream up to consumer markets
• Possess greater capacity to adjust and innovate

Modern value
chains Modern
Transitioning or advanced Source: Reardon, T., Vos, B. 2021. Food
value chains food systems supply chains: business resilience,
Traditional Transitional or innovation, and adaptation. Chapter 6.
value chains mixed food
traditional food
December 14, 2021 systems MMT-VCA Assessment 23
systems
Key features of value-added in food value chains
SOURCE FEATURES
Coltrain, D., Barton, D., Boland, M. Value-adding is economically adding
Value Added: Opportunities and value to a product by changing its
Food Strategies; Arthur Capper current place, time, and form to
Systems Cooperative, Center Department of
Agricultural Economics, Cooperative
characteristics more preferred in the
marketplace
Framework Extension Service, Kansas State
University: Manhattan, KS, USA,
2000

Lu, R.; Dudensing, R. What Do We Value-added agriculture is a portfolio of


Mean by Value-added Agriculture? agricultural practices that refers most
Choices 2015, 30, 316–2016–7795. generally to manufacturing processes
that increase the value of primary
agricultural commodities.

24
Key features of value-added in food value chains
SOURCE FEATURES
Amanor-Boadu, V.A. Value-adding activity has to satisfy two conditions:
Conversation about Value- (1) if one is rewarded for performing any activity
Added Agriculture; Value- that has traditionally been performed at another
Added Business Development stage further down the supply chain; or
Food Program; Department of
Agricultural Economics; Kansas
(2) if one is rewarded for performing an activity that
is discovered to be necessary, but has never been
Systems State University: Manhattan,
KS, USA, 2003
performed in the supply chain.
Framework
Junior, HS de Figueiredo, Value adding in a value chain encompasses firms and
M.O.M Meuwissen, A.G.G. their end-markets, business processes, supply and
Oude Lansink. 2020. demand levels, horizontal and vertical links, and
Integrating structure, conduct supporting actors providing cross-cutting and sector-
and performance into value specific services.
chain analysis. Journal on The enabling environment surrounding a chain is the
Chain and Network Science set of global, national and local government
2014; 14(1): 21-30 regulations and practices creating incentives for
private sector growth

25
Philippine Food Systems
Towards a Healthier People, Healthier Economy, Healthier Planet

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Localizing Food Systems
• The COVID-19 pandemic revealed the weaknesses and vulnerabilities of global and
international food systems as well as the limited response capabilities.
• The interdependency of global food systems and the sensitive response of food systems
to the volatility in international food chains were emphasized as a result of the pandemic.
• Because of the pandemic, localizing food system focuses on improving the resilience
(ability to deal with shocks with disruptive and harmful effects) of food systems and food
value chains.
• Food system is defined as all of the people and activities that play a part in growing,
transporting, supplying, and, ultimately, eating food. These processes also involve elements
that often go unseen, such as food preferences and resource investments.
• In a local food system perspective, “local food” often hides global inputs, multiple steps in
the value chain, or exports.
• The attention for localizing food value chains have been on the rise, such as the African
government transitioning after a few decades of market liberalization that integrated the
African economy into the global value chains to improving the resilience of African food
value chains through increased regional and domestic agricultural production
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Transformative adaptation of agri-food system
Value chain intervention within the agri-food system

Source: Mausch, K. A. Hall, and C. Hambloch. (2020). Coliding paradigms and trade-offs: Agri-food systems and
December 14, 2021 MMT-VCA Assessment 28
value chain interventions. Global Food Security 26 (2020) 100439.
Transformative adaptation of agri-food system
Towards a Healthier People, Healthier Economy, Healthier Planet

Source:Kayhko, J., et al.. (2020). Integrated framework for identifying transformative adaptation in agri-food
systems. Environmental
December 14, 2021 Science and Policy, 114 (2020) 580-586.
MMT-VCA Assessment 29
Traditional and modern integrated supply chains

Coping with shocks: innovations for resilience


Source: IFPRI Global Food Policy Report 2021

30
Traditional and modern integrated supply chains

Coping with shocks: innovations for resilience


Source: IFPRI Global Food Policy Report 2021

31
Modern Circular
Supply Chain

Source: Widmer, T., Tjahjono, B. & Bourlakis, M. (2018). Defining value creation in the context of circular PSS. 32
Procedia CIRP. 73. 142-147. doi:10.1016/j.procir.2018.03.329.
34
Thank you!
Illustrative Combination of Crops, Livestock, Poultry and Fishery in Commodity System-Based Planning

December MMT-VCA
14, 2021 Assessment 36
Output 2: Commodity system-based value chains
established (i.e., production, processing, & distribution
systems)
• O2.1: Shorter food miles, by anchor commodity system
• O2.2: Share of investments in targeted profitable segments of
value chains increased, by type of partnership
• O2.3: Percent of commodity systems-based/integrated value-
chain plans used for identifying profitable segments of value
chains
• O2.4: Share of sector beneficiaries with diversified income
sources by sex and type of beneficiaries and by anchor
commodity systems

December 14, 2021 MMT-VCA Assessment 37


Output 2: Commodity system-based value chains
established (i.e., production, processing, & distribution
systems)

• O2.5: Share of farm areas/aquaculture areas used in the


practice of diversification, by anchor commodity system, by size
of areas (%)
• O2.6: Quality and inclusiveness of commodity system-based
value chain investments improved
• O2.7: Ratio of farm mechanization/horsepower per hectare
enhanced -- HP/ hectare (horsepower per hectare)

December 14, 2021 MMT-VCA Assessment 38


Output 2: Commodity system-based value chains
established (i.e., production, processing, & distribution
systems)
• O2.8: Percent of wastes and losses in the entire food system
decreased (%)
• O2.8b: Waste management & recycling facilities established
• O2.9: Value of damages to Agri-Fishery ecosystems decreased
(cumulative, Php), by type of disasters and by type of damages
• O2.9b: Damages to Agri-Fishery ecosystems reduced
• O2.10: Size of area of land degradation hotspots decreased (ha)
• O2.11: Size of area of uncultivated areas due to shortage of
water for agriculture decreased (ha)

December 14, 2021 MMT-VCA Assessment 39


O2.1: Shorter food miles, by anchor commodity
system
Rationale & objective ofIn common usage a measure of environmental impact (energy
indicator used) of the food system; shorter food miles can also be
interpreted as supporting local farmers
Definition of terms Food miles - a measure of the distance and energy used for
transporting food from the farm to the consumer
Remarks (limitations, Simple to calculate with single components; but complicated with
issues, etc.) multi-ingredient food such as processed food
Sub-indicators None

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O2.2: Share of investments in targeted profitable segments of value
chains increased, by type of partnership
Rationale & objective "This indicator is aligned with the DA strategy on increasing
of indicator investments in the agri-fishery sector both by the government
(through increasing GAA for the sector) and by the private sector or
jointly.”
Targeting profitable segments of the value chain aides in creating a
competitve advantage for the sector by increasing productivity while
keeping costs reasonable.
Definition of terms Investments mean monetray value put into productive business
activities
Remarks (limitations, None
issues, etc.)

December 14, 2021 MMT-VCA Assessment 41


O2.2: Share of investments in targeted profitable segments of value
chains increased, by type of partnership
Indicator/Sub-indicator Baseline Endline
Year Value Target Actual
O2.2.1 Percent of commodity systems-
based/integrated value-chain Setting
plans used for identifying baseline
profitable segments of value requires a Targets can
chains baseline be set after
O2.2.2 Cumulative number of study at the study is
investments increased start of completed
O2.2.3 Cumulative value of investments NAFMIP
implementa-
increased tion
O2.2.4 Quality and inclusiveness of
investments improved

December 14, 2021 MMT-VCA Assessment 42


O2.3: Improved digital infrastructure and ICT to facilitate innovation,
modernization, and integration of commodity systems-based value
chain
Rationale & objective of• Digital technologies are revolutionizing the agriculture sector as
indicator it can address mutlitple market failures. And it can also play a
crucial role in trade.
• The digital economy is emerging to become one of the most
important growth drivers and indispensable part of the modern
economy.
• This indicator is also aligned in modernizing the agriculture
sector, connecting and transforming the rural economy into the
digital economy.
Remarks (limitations, None
issues, etc.)

December 14, 2021 MMT-VCA Assessment 43


O2.3: Improved digital infrastructure and ICT to facilitate innovation,
modernization, and integration of commodity systems-based value
chain
Definition of terms • Digital technologies are electronic tools, systems, devices and resources
that generate, store or process data.
• Digital infrastructure serves as the basis for the "Industry 4.0" innovations,
value-adding digital activities and significant productivity improvement. It
is an integrated system with 2 categories and 4 components: (1)
hard/physical-- involved in (a) connectivety and transporation, and (b)
storage and processing; and (2) soft/non-physical--related to (c) terminals
and devices, and (d) services and application.
• The four components of digital infrastructure:
a) connectivety and transporation: the physical infrastructure that carries
digital data between devices, data infrastructure and services
b) storage and processing: the computing power to run services and storage
of data and users
c) terminals and devices: the interfaces between users (human or
machines) and the digital services and applications
d) services and application: functions/applications that create economic
value-add to business sectors and customers

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O2.3: Improved digital infrastructure and ICT to facilitate innovation,
modernization, and integration of commodity systems-based value
chain
Sub-indicator Baseline Endline
Year Value Target Actual
O2.3.1 ITU ICT Index (part of DICT's
National ICT Household Survey
indicators) in rural and
agricultural economies in the
Philippines
O2.3.2 Increase in investment for digital
infrastructure such as digital
platforms, drones for tagging and
for delivery services
O2.3.3 Increase in investment for
technology research and
development

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O2.4: Share of sector beneficiaries with diversified income sources
by sex and type of beneficiaries and by anchor commodity systems
Rationale & objective of Rationale: This indicator will be used to track two areas of sector
indicator transformation. One is the operationalizing the diversification strategy
included in the One DA Agenda -- Transforming Philippine Agriculture. The
other area to be tracked is the transformative shift away from a single
commodity and towards a commodity system planning and implementation
approach.
Objectives: (1) To track implementation of the DA policy and strategy
diversification; and (2) to monitor and address the technical, organizational,
budgeting and other opportunities and constraints in the process of shifting
towards a commodity system approach."
Remarks (limitations, The commodity system-based approach is necessary to raising income and
issues, etc.) employment opportunities of small farmers, livestock & poultry raisers and
fisherfolk.

December 14, 2021 MMT-VCA Assessment 46


O2.4: Share of sector beneficiaries with diversified income sources
by sex and type of beneficiaries and by anchor commodity systems

Definition of terms • Commodity system-based planning refers to Coordinated (if not


integrated) planning for two or more Inter-linked crops, livestock, poultry
and/ or fishery commodities, e.g., rice and fish, and thus is rooted in the
Farming Systems approach.
• Four commodity systems are recommended: Rice-based; Corn, livestock
and poultry-based; Coconut-based; Fishery-based. All other commodities
(High Value Crops, Organic, Halal, etc.) -- and even non-food commodities
-- can and will be part of one or more of the above 4 commodity systems
• Commodities may be “Inter-linked” in various ways: (a) inter-cropping; (b)
rotation cropping; (c) multi-cropping; (d) Integrated Multi-Trophic
Aquaculture (IMTA); (e) polyculture; (f) recycling of production or
processing waste as input to production or processing of another
commodity.
• The term ""Small holders"" is used here to refer -- individually or
collectively -- to small farmers, small livestock & poultry raisers and
fisherfolk."

December 14, 2021 MMT-VCA Assessment 47


O2.4: Share of sector beneficiaries with diversified income sources
by sex and type of beneficiaries and by anchor commodity systems

Indicator/Sub-indicator Baseline Endline


Year Value Target Actual
O2.4.1 Beneficiaries in rice-based
commodity system
O2.4.2 Beneficiaries in corn, livestock &
poultry-based commodity system
O2.4.3 Beneficiaries in coconut-based
commodity system
O2.4.4 Beneficiaries in fishery-based
commodity system

December 14, 2021 MMT-VCA Assessment 48


O2.5: Share of farm areas/aquaculture areas used in the practice of
diversification, by anchor commodity system, by size of areas (%)
Rationale &
objective of
indicator
Definition of terms
Remarks
(limitations, issues,
etc.) Indicator/Sub-indicator Baseline Endline
Year Value Target Actual

December 14, 2021 MMT-VCA Assessment 49


O2.6: Quality and inclusiveness of commodity system-based value
chain investments improved
Rationale & objective of "Rationale: This indicator will be used to track two areas of sector
indicator transformation. One is the operationalizing the diversification strategy
included in the ""One DA Agenda -- Transforming Philippine Agriculture. The
other area to be tracked is the transformative shift away from a single
commodity and towards a commodity system planning and implementation
approach.
Objectives: (1) To track implementation of the DA policy and strategy
diversification; and (2) to monitor and address the technical, organizational,
budgeting and other opportunities and constraints in the process of shifting
towards a commodity system approach."

Remarks (limitations, The commodity system-based approach is necessary to raising income and
issues, etc.) employment opportunities of small farmers, livestock & poultry raisers and
fisherfolk.

December 14, 2021 MMT-VCA Assessment 50


O2.6: Quality and inclusiveness of commodity system-based value
chain investments improved
Definition of terms • "Commodity system-based planning refers to Coordinated (if not integrated)
planning for two or more Inter-linked crops, livestock, poultry and/ or fishery
commodities, e.g., rice and fish, and thus is rooted in the Farming Systems
approach.
• Four commodity systems are recommended: Rice-based; Corn, livestock and
poultry-based; Coconut-based; Fishery-based. All other commodities (High
Value Crops, Organic, Halal, etc.) -- and even non-food commodities -- can and
will be part of one or more of the above 4 commodity systems
• Commodities may be “Inter-linked” in various ways: (a) inter-cropping; (b)
rotation cropping; (c) multi-cropping; (d) Integrated Multi-Trophic Aquaculture
(IMTA); (e) polyculture; (f) recycling of production or processing waste as input
to production or processing of another commodity.
• The term ""Small holders"" is used here to refer -- individually or collectively --
to small farmers, small livestock & poultry raisers and fisherfolk."

December 14, 2021 MMT-VCA Assessment 51


O2.6: Quality and inclusiveness of commodity system-based value
chain investments improved

Indicator/Sub-indicator Baseline Endline


Year Value Target Actual
O2.6.1 Quality and inclusiveness of 2020 TBD TBD
commodity system-based value
chain investments improved

December 14, 2021 MMT-VCA Assessment 52


O2.7: Ratio of farm mechanization/horsepower per hectare
enhanced
Rationale & objective of "Rationale: The AFMA of 1997 provides that DA shall give priority to the
indicator development and promotion of appropriate agricultural machinery and
other agricultural mechanization technologies to enhance agricultural
mechanization In the countryside.
• This indicator is tied to the key strategy of Farm Mechanization under the
One DA Agenda on Transforming Philippine Agriculture. It also references
the AFMA definition of ""Agriculture and Fisheries Modernization"" as the
process of transforming the agriculture and fisheries sectors into one that
is dynamic, technologically advanced and competitive yet centered on
human development, guided by the sound practices of sustainability and
the principles of social justice.
• The higher the Mechanization Ratio, the higher production and post-
production efficiency and productivity are expected to increase.
Objective: To track the degree, process and results of mechanization in the
agriculture and fisheries sector."

December 14, 2021 MMT-VCA Assessment 53


O2.7: Ratio of farm mechanization/horsepower per hectare
enhanced
Definition of terms "Agricultural Mechanization" is the development, adoption, manufacture
and application of appropriate location-specific, and cost-effective
agricultural technology using human, animal, mechanical electrical and other
non-conventional sources of energy for agricultural production and post-
harvest operations consistent with agronomic conditions and for efficient
and economic farm management (Source: AFMA).

Remarks (limitations, Mechanization under NAFMIP will highlight the AFMA provision that
issues, etc.) technological advancements will center on human development. This implies
that Farm Mechanization will involve locally appropriate technologies that
are not only efficient but also environment friendly.

December 14, 2021 MMT-VCA Assessment 54


O2.8: Percent of wastes and losses in the entire food system
decreased (%)
Rationale & objective of "Rationale: Significant reductions in waste/ losses in the entire food system
indicator is key to achieving food and nutrition security, raising farmers and fisherfolk
incomes, and eventually transforming the agri-fishery sector towards
modernization and agro-industrialization.
Objectives: (1) To quantify and characterize the nature of food loss along the
food value chain; and (2) To identify inputs used to carry out activities in
delivering food from farm to table towards improving nutritional outcomes
and environmental impacts."

Definition of terms
Remarks (limitations,
issues, etc.)

December 14, 2021 MMT-VCA Assessment 55


O2.8: Percent of wastes and losses in the entire food system
decreased (%)

Indicator/Sub-indicator Baseline Endline


Year Value Target Actual
O2.8.1 Reduction in losses due to poor
inputs (%)
O2.8.2 Reduction in production losses
(%)
O2.8.3 Reduction in post-harvest losses
(%)

December 14, 2021 MMT-VCA Assessment 56


O2.8b: Waste management & recycling facilities established

Rationale & objective of "Rationale: Under the Food Systems approach, reduction of waste/ losses is
indicator a key concern as discussed in the PIRS for Indicator O2.3. This Indicator 2.4
complements the aforementioned Indicator 2.3 by focusing on structure,
facilities and equipment dedicated to managing waste in food systems
including recycling.
Objective: To track the provision of waste management and recycling
facilities during the NAFMIP implementation period."

Definition of terms
Remarks (limitations,
issues, etc.)

December 14, 2021 MMT-VCA Assessment 57


O2.8b: Waste management & recycling facilities established

Indicator/Sub-indicator Baseline Endline


Year Value Target Actual
O2.8b.1 Cumulative no. of facilities
increased
O2.8b.2 Cumulative capacity of facilities
increased

December 14, 2021 MMT-VCA Assessment 58


O2.9: Value of damages to Agri-Fishery ecosystems decreased
(cumulative, Php), by type of disasters and by type of damages
Indicator/Sub-indicator Baseline Endline
Year Value Target Actual
O2.9.1 Value of damages to irrigation systems &
infrastructures (farm roads) due to climate &
weather-related disasters (flooding, typhoons,
etc.) and geophysical disasters (e.g., volcanic
activity, earthquakes)
O2.9.2 Value of damages to farm buildings & sheds,
storage facilities, agricultural inputs, farm
equipment and machinery and other farm
assets due to climate & weather-related
disasters (flooding, typhoons, etc.) and
geophysical disasters (e.g., volcanic activity,
earthquakes);

December 14, 2021 MMT-VCA Assessment 59


O2.9: Value of damages to Agri-Fishery ecosystems decreased
(cumulative, Php), by type of disasters and by type of damages
Indicator/Sub-indicator Baseline Endline
Year Value Target Actual
O2.9.3 Value of damages to perennial crops (e.g.,
Fruit plantations) due to climate & weather-
related disasters (flooding, typhoons, etc.) and
geophysical disasters (e.g., volcanic activity);
O2.9.4 Area (ha) and value of land degradation
hotspots decreased (ha) due to agricultural
practices which cause or enhance soil erosion
O2.9.5 Uncultivated areas (ha) due to shortage of
water for agriculture (due to drought/prolong
dry season, declining vegetation cover, and
pollution) decreased

December 14, 2021 MMT-VCA Assessment 60


O2.9b: Damages to Agri-Fishery ecosystems reduced
Rationale & objective of Rationale: This indicator will address the action track on building resilience to
indicator vulnerabilities, shocks, and stresses towards food systems pathway to
sustainability .
Objective: To establish a database which accounts damages to agri-fishery
ecosystems as well as capturing smaller-scale and localized disaster impacts.

Definition of terms Damage is defined as the total or partial destruction of physical assets and
infrastructure in disaster-affected areas, expressed as replacement and/or repair
costs.
In agriculture value chains, damage is considered in relation to interconnected
elements i.e., production (standing crops and livestock), processing, and
distribution systems.
Each subsector is presented in terms of its production and its assets. The
production component consists of both inputs and outputs; the assets
component consists of facilities, machinery, tools, and key infrastructure related
to agricultural production.

December 14, 2021 MMT-VCA Assessment 61


O2.9b: Damages to Agri-Fishery ecosystems reduced
Remarks (limitations, There is a lack of consistent database reflecting the direct damage that
issues, etc.) occurs in the agri-fishery ecosystems as a result of disasters, which takes into
consideration the specificities of agri-fishery value chain elements i.e.
production, processing and distribution systems.

December 14, 2021 MMT-VCA Assessment 62


O2.9b: Damages to Agri-Fishery ecosystems reduced
Indicator/Sub-indicator Baseline Endline
Year Value Target Actual
O2.9b.1 Damages to irrigation systems & infrastructures
(farm roads) due to climate & weather-related
disasters (flooding, typhoons, etc.) and
geophysical disasters (e.g. volcanic activity,
earthquakes); value of irrigation systems &
infrastructures
O2. 9b.2 Damages to farm buildings & sheds, storage
facilities, agricultural inputs, farm equipment
and machinery due to climate & weather-related
disasters (flooding, typhoons, etc.) and
geophysical disasters (e.g., volcanic activity,
earthquakes); value of mentioned farm assets

December 14, 2021 MMT-VCA Assessment 63


O2.9b: Damages to Agri-Fishery ecosystems reduced
Indicator/Sub-indicator Baseline Endline
Year Value Target Actual
O2.9b.3 Damages to perennial crops (e.g., fruit
plantations) due to climate & weather-
related disasters (flooding, typhoons, etc.)
and geophysical disasters (e.g., volcanic
activity); value of crops

O2.9b.4 Area of land degradation hotspots decreased


(ha) due to agricultural practices which
cause or enhance soil erosion; area (ha) and
value
O2.9b.5 Water availability for agriculture decreased
due to drought/prolong dry season,
declining vegetation cover, and pollution;
area (ha) uncultivated

December 14, 2021 MMT-VCA Assessment 64


O2.10: Size of area of land degradation hotspots decreased (ha)

Rationale &
objective of
indicator
Definition of terms
Remarks
(limitations, issues,
etc.)

December 14, 2021 MMT-VCA Assessment 65


O2.11: Size of area of uncultivated areas due to shortage of water for
agriculture decreased (ha)

Rationale &
objective of
indicator
Definition of terms
Remarks
(limitations, issues,
etc.)

December 14, 2021 MMT-VCA Assessment 66


VCA
Assessment
Marites M. Tiongco, Ph.D.
Agricultural Value Chain Expert and Deputy
Team Leader, Asian Development Bank
Full Professor, DLSU School Of Economics

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