ASSESSMENT OF THE REQUIREMENTS TO ENHANCE ORGANIC

AGRICULTURE IN THE PHILIPPINES

Research Leader: MA. EDEN S. PIADOZO, Ph.D.

University Professor

Dept. of Agricultural Economics

CEM, UP Los Baños

Project Staff: ALICIA R. QUICOY, M.Sc.

Research Assistant: ELMER C. SUñAZ

Implementing Agency:

Lead Agency: UPLB

Cooperating Agency: PCARRD

Project Sites: Regions I, IV, VII, X

Funding Agency:

FAO and PCARRD

OBJECTIVES

General Objective:

To assess the current status and

requirements for organic farming system and

to recommend appropriate measures to

enhance the development of organic

agriculture in the Philippines.

OBJECTIVES

Specific Objectives:1) To characterize the organic farming practices

adopted by farmers;

2) To determine the farmers’ technical and business skills, the capacity to adopt the organic farming standards including labeling and certification;

3) To assess the farmers’ level of awareness on consumers’ preferences, markets and other marketing activities;

4) To identify the opportunities, risks and constraints faced by farmers in converting to organic agriculture;

OBJECTIVES

Specific Objectives:

5) To identify the perceived factors affecting the

adoption of organic farming practices;

6) To determine the direct and indirect costs and

benefits associated with the adoption of organic

farming; and

7) To recommend appropriate measures that will

improve organic farming enterprises and will

enhance the development of organic agriculture

industry in the Philippines.

understanding the constraints and risks faced

by farmers when they consider a decision on

conversion from conventional to organic

farming can aid concerned policymakers in

identifying the correct strategies for

propagating organic agriculture in the

country.

Significance of the Study

Study Areas

Region 1- Ilocos Norte

Region IV- Rizal and Quezon

Region VII- Negros Oriental and Bohol

Region XII- Bukidnon

Questions Asked of the Respondents

Reason for conversion to organic agriculture,

organic farming practices they adopted;

Organic farming practices adopted;

The extent of adoption of accepted standards

in organic farming;

Capacity to comply with standards including

labeling and certification;

The factors that affect farmers adoption of

organic farming practices;

Level of awareness on consumers’ preferences,

markets, prices, knowledge on how to negotiate,

and how to establish oneself as a reliable supplier

of organic products, and other marketing activities;

Opportunities, risks and constraints farmers faced

in converting to organic agriculture; and

Productivity and the costs and benefits associated

with the adoption of organic farming vis-à-vis

conventional farming; and

Perception on the appropriate measures that will

improve organic farming enterprises and will

enhance the development of organic agriculture

industry in the Philippines.

Farmers define organic farming as the absence

or non-utilization of synthetic or chemical

fertilizers and pesticides.

Reasons for going into organic farming

A. Full adopters

Reduction in cost

Higher yield attained

Improved soil fertility

B. In transition

Reduction in cost

Increase in yield

Improvement in soil fertility

Health benefits

environmental impact of using organic inputs

Indirect benefits

Impact on the environment

there had been a change in the quality of their

soils. The amount of heat emitted by the soil

was also noticeably noted by these farmers as

they reported that they feel the coolness of the

earth with the continuous addition and use of

organic fertilizer.

Health benefits

INDICATOR/STAGE

REGION

ALL

I IV VII X

NFI

Full organic

In transition

Conventional

H

M

L

M

H

L

M

L

H

H

L

L

H

M

Total Returns

Full organic

In transition

Conventional

H

M

L

L

H

M

H

L

M

L

H

L

M

H

Total Costs

Full organic

In transition

Conventional

H

L

M

L

H

M

M

H

L

L

H

L

M

H

Use of organic

Full organic

In transition

Conventional

H

M

L

M

H

L

L

H

M

H

L

M

H

L

Use of inorganic

Full organic

In transition

Conventional

M

L

H

L

M

H

H

M

L

L

H

M

L

H

Economic benefit

1) Conventional farmers had the highest total

farm revenues but also incurred the highest

farm cost.

2) full-organic farmers incurred the lowest

NFI, lowest revenues, as well as lowest farm

cost.

3) transitional farmers incurred relatively

lower revenues than conventional farmers, as

well as in costs, resulting to having the

highest NFI

Opportunities

There are GOs and NGOs supporting organic

agriculture.

There are already companies producing organic fertilizer

and thus these are readily available in the market.

Moreover, with the support of GOs and NGOs, the

technology of producing organic fertilizers and pesticides

has already been developed and farmers can readily

prepare their own inputs in their own backyards without

necessarily buying them from the market. A lot of the

material inputs are also readily available in their area.

There is already awareness about organic agriculture

The increasing awareness about product safety for

certain sectors in the society

Strengths First, small backyard production is traditionally organic.

Second, there are NGOs and GOs supporting organic

agriculture. The success of organic agriculture is largely

dependent in the LGU's support as revealed in this

study. Even the academe like UPLB, Xavier University,

DMMSU and research institutions like PCARRD and

SEARSOLIN are into the advocacy of organic agriculture

too.

Third, the technology of producing organic fertilizers and

pesticides have already been developed and farmers

can readily prepare their own inputs in their own

backyards without necessarily buying them from the

market.

Fourth, there is already an awareness about organic

agriculture.

Constraints

The farmers’ lack of entrepreneurial skills.

organic farmers very seldom keep records and

make farm plans.

less interested in updating their knowledge and

skills on the latest trends in organic farming.

Farmers seldom take the initiative in finding

markets for their produce.

Weak in finding new ways of packaging their

produce, advertising, scheduling of placement of

order, delivery and planning of procurement

Not risk takers

ENTREPRENEURIAL QUALITY

ALL REGIONS

Full Transition Conventional Total

n= 35 25 60 120

Keeps record 1.91 2.12 1.00 1.50

Makes farm

plans 2.17 2.44 1.72 2.00

Not discouraged by natural calamities 2.97 2.72 3.13 3.00

Not discouraged by mistakes/failures 3.40 3.00 3.27 3.25

Initiates farming practices 1.31 1.64 0.92 1.18

Package products (No=0 and Yes=1) 0.63 0.24 0.67 0.57

Product label/brand (No=0 and Yes=1) 0.23 0.04 0.12 0.14

Advertise

products 0.91 1.56 1.15 1.17

Plans

procurement 3.23 3.24 3.48 3.36

Takes initiative to market product 1.40 1.44 0.87 1.14

Uses available facilities around the farm 2.77 2.00 2.13 2.29

Makes regular/timely placement of order 2.17 2.04 2.03 2.08

Delivers products as scheduled 1.97 2.84 1.82 2.08

Collects receivables on time 3.11 3.44 2.82 3.03

Reads materials on organic farming/products 1.66 2.00 1.07 1.43

Attends seminars/workshops on organic farming 2.29 2.96 1.73 2.15

Sends staff/family members to trainings 1.23 0.64 0.92 0.95

Wins during price negotiations 1.43 1.64 0.95 1.23

TOTAL

SCORE 34.80 36.00 29.79 32.54

Constraints

2. The farmers’ limited knowledge of

certification which affects their adoption of

organic agriculture and hinders them from

tapping more developed markets for organic

products (18% knowledgeable of certification cost, 2%

on duration of processing, 15% on source)

MAKAKABUS P20,500 in 2006.

Other costs include inspection fee of P5000 per

day and application fee of P2000.

If a number of concerns will be inspected then the

inspection fee will increase.

Constraints3. The lack of sufficient training to carry on

organic farming or improved agricultural

practices especially on pest and disease

management, organic farming cropping

system, fertilizer/pesticides production and

application

except those who have exposure to

committed organizations or those

magsasaka siyentistas who attend

trainings and act as resource persons for

fellow farmers.

Constraints

4. No identified markets for their organic

produce

The insignificant difference in price between

organic and conventional product in the local

market.

The instability of price and the lack of price

guarantee in the market

Constraints5. Farmers have been heavily dependent on the

use of chemicals, that new chemical-free

technologies for them pose a higher risk in their

productivity. And they believe that only large

institutional vegetable producers have the

capacity and the need to produce organically

grown high-value vegetables and other crops.

6. Farmers’ interest in organic agriculture is fueled

by the high cost of inorganic inputs so once

prices of these inputs ease up then they may be

tempted to go back to conventional farming

unless they have the commitment to do so.

Constraint

6. Lack of capital

Small scale farmers are faced with lack of capital

to carry on the day to day requirement of organic

farming especially payment for hired labor during

land preparation.

7. Migration of household members to towns and

cities in search of full-time/part-time jobs has a

negative impact on conversion to organics since it

requires high amount of labor.

Recommendations

Capacity building

Information dissemination

market potentials, technologies, production

systems, and certification

Market development

identifying markets, packaging and giving brand

names to organic produce, pricing, and

distribution strategies

Processing and value adding

Provision of credit

Academe/NGO/LGU linkage

Conclusion Organic agriculture offers a long term solution to make

small sized farms productive and sustainable.

Small-scale farmers seem most successful when given

adequate training and assured of important requirements

such as land, seeds, and other inputs.

This is especially true for farmer scientists who have

access to adequate resources, technological know-how

and exposure to organic agriculture.

They have developed the skills in farming and learned to

innovate given the knowledge they have acquired.

Among the more committed small scale farmers,

adherence to organic farming has become a way of life

LGUs, extension agents and the university are potent

forces in disseminating organic agriculture.

THANK YOU VERY MUCH