Preparing the

Cluster Supply Plan

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 u p p l y P l a n ?
What is a S

M utual agreement to produce target yields and deliver committed

volumes with quality required at the time set.

A ssists in choosing potential buyers/markets and deciding on pricing

P romise made by cluster members to each other and serves as the
backbone of the collective marketing processmarketing

P rogramming of the farmers supply for reduced transaction cost and

increased cost efficiency. It is in table format.

S hows quantity/volume of the products that the cluster is capable of

producing and of consolidating for collective/group marketing
 Build credibility with financiers/ financing
institutions and show proof of ability for
Build adequately supplying the market and having a
ready payment source for their loans.

Cluster Supply Establish image as reliable suppliers of

Plan enables Establish focus produce/products for targeted
farmers to: markets’ buyers.

Enhance Enhance capacities in systematizing

production/ supply planning.

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SUPPLY PLAN SAMPLE (Squash)

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 Learning by doing
Preparation of Cluster Supply Plan

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How is a cluster supply plan developed
• The SST conducts a meeting with farmers.
• Each cluster member should complete a table that lists
After one
the following information: (1)production
1. Number of production modules cycle has been
2. Expected yield completed, the
cluster supply
3. Committed yield for group/collective marketing plan need to
4. Planting date reviewed and
updated.
5. Harvest date or period when they plan to harvest each
module
6. Schedule of supply between 1 to 3 months depending
on the type of produce/ product.
• The completed CSP shows the total quantity of the
produce/product to be consolidated for marketing. 6
Process in formulating a cluster supply
plan

The minimum committed yield of the

cluster members should be enough to
fully cover the loan repayment due and
to have reserves, savings and
disposable income/for personal and
cluster fund.
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 Target markets are identified,
including the planting and harvest
The cluster calendars (for cash crops) or
harvest calendar (for permanent
supply plan crops).

with individual
commitments Storage and transportation
will be options are identified.
finalized in
Step 4. Each individual cluster member will
sign the Cluster Supply Plan with
Commitment (CSPC) and submit it to
the cluster leader and were appropriate
to the ARBO AE Committee (acting as
marketing intermediary)
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Importance of posting the cluster supply plan
in strategic locations

For continuing reminder and

inspiration for the cluster If the cluster or ARBO
members to deliver on their has a Facebook or other And hopefully, prevent
commitments, the CSPC social media accounts, it pole-vaulting and non-
should be prominently can also be posted delivery of supply
posted in the meeting there. This will serve as commitment.
room/ area of the cluster/ a promotion mechanism.
ARBO.

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Pole vaulting is an act of default on the farmers’ promise or
commitment to deliver a particular volume to their pre-identified
markets/buyers
It may occur:
a. When farmers deliver sell their product to traders offering
higher price than that set in the supply arrangement.
b. When their previous loan payments are called in by their
creditors.
c. When family emergencies occur requiring immediate
cash.

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Result of Pole Vaulting

When this happens, credibility of the ARBO/cluster and

farmers is compromised leading to the perception of buyers
that marketing arrangements with ARBOs/clusters/farmers
pose a risk and is disadvantageous.

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Experience Sharing on Pole
Vaulting

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 • When you are preparing your CSP, inform
your members to already set aside a
portion of their harvest for their loan
repayments. One option is 50:50 ratio of
product allocation for cluster collective
marketing and existing personal buyer/
HOW TO trader. This should gradually increase in
succeeding successful cluster collective
MINIMIZE marketing to a maximum of 70:30 ratio.

POLE- • For those with substantial debts to traders

VAULTING or others a minimum of ratio of 30:70 is
acceptable.

• For non-member of ARBOs, encourage

them to join the ARBOs so they have ready
source of assistance/ support when
needed. 14
“You can’t describe what you
are doing as a process, if you
don’t know what you are
doing.”
-W. Edward Deming

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