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Submitted by: THE STRATEGISTS

ANGELES|OCAMPO|PLAN|YANG|YAO

1/28/2010

A Case Analysis on HERBANA FARM

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1. CURRENT SITUATION

1.1 Brief History and Description

1.2 Past Corporate Performance/Strategies

1.3 Strategic Posture

1.3.1 Current Vision and Mission

1.3.2 Analysis of Vision and Mission

2. EXTERNAL ASSESSMENT

2.1 Opportunities

2.2 Threats

3. INTERNAL ASSESSMENT

3.1 Strengths

3.2 Weaknesses

4. STATEMENT OF STRATEGIC ISSUE

5. STRATEGY FORMULATION

5.1 Input Stage

5.1.1 EFE Matrix

5.1.2 IFE Matrix

5.1.3 CPM

5.2 Matching Stage (TOWS Matrix)

5.3 Alternatives

5.4 Decision Stage (QSPM)

6. IMPLEMENTATION

7. EVALUATION

8. APPENDICES

9.SOURCES

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1. CURRENT SITUATION

1.1 Brief History and DescriptionHerbana Farms was first established in 1997 at Tanauan, Batangas. It was built by Mr.Gil Carandang, the owner of Herbana Farms. Mr. Carandang graduated from theUniversity of California Cruz under the Apprenticeship program on EcologicalHorticulture. In addition, he was also an apprentice with Natural Farmers of Japan andalso at the Center for Agroecology and Sustainable Food Systems. Because of his deepinterest in planting, he studied and gathered related experiences in Korea, Japan, andCalifornia, where he acquired the knowledge and skill on organic farming and itstechnology.

The company is a 4 hectare ecological organic demonstration farm that specializes in theproduction of herbs, organic salad greens, and specialty vegetables. It offers training,seminars and lecture services and apprenticeship programs for people who wants to learnthe different organic and natural farming technologies.

1.2 Past Corporate Performance/Strategies

1.2.1 Marketing

1.2.1.1 Products and Services

The products and services of Herbana Farms are classified into three: organic cropproduction, bottled products and farm apprenticeship, seminars and tours.

1.2.1.1.1 Organic Crops ProductionFrom the company’s all organic farming process and inputs, they offer varieties oforganic crops which are the primary product of the company. These products includesalad green lettuce, specialty and traditional vegetables, cut herbs. Varieties of greensalad include romaine, oak leaf, lollo rosa, okayama, and reine de glaces. Varities fortraditional vegetables include baby carrots, cabbage, cucumber, tomatoes, squash, bittergourd and eggplant. Specialty vegetables’ varieties are Swiss chard, Snap bean, Ailaan,Brocolli, Sweet Beets, Shingkang, Kohlrabi, Mizuna, Arugula and Celery. They alsoproduced herbs such as dill and parsley. Organically produced sweet corn and calamansifruit are also part of the company’s products.

1.2.1.1.2Bottled ProductsAside from the organically produce crops by the company, it also has registered bottledproducts that are being sold. These include Beneficial Indigenous Microorganisms(BIM), Banana-Squash-Papaya Extract (BSP), Herbagrow and Herbaplus. These bottledproducts can be applied to plants in farm operations.

1.2.1.1.3Farm Apprenticeship, Seminar and ToursOne of the main offerings of the company aside from its organic crop are its services,training, eco-tourism, and apprenticeship program. This is a creative and interactive wayof informing the people and showcasing them their special types of gardens, organic andnatural farming technologies and procedures, and agroecological approach to sustainableagriculture. Participants will be provided manuals for theoretical knowledge and hands onexperiences in the actual organic production.

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For a complete listing and description of the company’s available products and services,please refer to the attached appendices.

1.2.1.2PriceOrganic farming is a laborious process as compared to conventional farming. It is aprimary factor in the price setting of an organically produced crop. Herbana Farm’sprices are higher than that of other organic crops sold in retail and in supermarkets.Premium strategy is used in pricing the organic products which are set subjectively by theowner. The price is high, which is well compensated by the quality products of the farm.

1.2.1.3DistributionKeeping the organic products fresh is a critical consideration on the post harvest of everyagricultural produce. Every distribution channel must have an established market in orderto assure that the products will not be wasted. A good handling of the products is alsoimportant to minimize the losses on damages.Aside from being able to buy fresh farm produce in its farm in Calamba, Herbana sells

its products in Salcedo Market every Saturday only. Herbana Farms has tried distributingin three markets, namely; Eastwood Libis, OPTA Coop and Salcedo Market. However,because of profitability, the owner has decided to distribute only in Salcedo Market asstated by Angeles (2008).

1.2.1.4Promotion StrategyAgricultural products need not to be promoted and advertised extensively. It is due to thehigh cost that cannot be compensated by the small margin or profit in selling thoseproducts. In the case of Herbana Farms, their organic products are promoted throughtrade fairs and exhibits such as AgriLink and Biosearch. Also, from Gil Carandang’slectures and seminars, Herbana Farms has been known to many. In fact, Gil Carandang isdubbed by many to be the Father of Organic Farming in the Philippines. Ecotourism andinternet is also used as promotional tool by Herbana Farms.

1.2.2 Production

The farm sits on a hill with a panoramic views of Laguna de Bay, Mt. Makiling, Mt.Malarayat, Mt. Makulot and the famous Tagaytay Ridge. It is located 59 km South ofManila. It is very quiet area with some local folks nearby as neighbors.Gil Carandang was able to successfully produce the different varieties of crops thatHerbana Farms offers. All the practices incorporated are in accordance with the owner’scommitment ion promoting organic farming as a way to protect the natural resources ofthe environment. Two production systems are shown in the farm: intensive gardens andfield crop productions. Approximately one hectare of Herbana’s four hectare land is usedfor organic production. The farm produces its own farming input except for seeds.

The farm lacks organic certification but all of its activities follow the requirements ofOCCP Certification Standards of Organic Agriculture and Processing. Herbana Farm isalso a member of Organic Certification Center of the Philippines and the InternationalFederation of Organic Agriculture Movement.Inputs of Herbana Farm consist of seeds and fertilizers. Since Herbana does not produceit seeds, it generally buys from local dealers such as Allied Botanical Corporation andEast West Company. During summer however, the owner tries to reproduce seeds

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through open pollination. The farm makes use of its pure organic fertilizer composed ofchicken manure and rice hull. Herbana gets the chicken manure from the owner’s brotherwho owns a poultry farm. Since the farm also does composting, it makes use of BIM tohasten decomposition.

Herbana Farms also boasts of its training venues, which has their own modules andfacilities. The farm has gardens, fruit orchards, and apprentice quarters to name a few.

1.2.3 Human Resource

Mr. Gil Carandang, who owns and manages Herbana Farms, also serves as the head ofthe farm’s operations and production. His current marketing manager is RT Gonzales.The farm has limited number of manpower. The regular workers come from far places forthe owner think that it would be more beneficial to Herbana as it would lessen theincidence of the workers to go home and leave work. Casual workers that live near thearea are hired also but only for additional help.

1.3 Strategic Posture1.3.1 Current Vision and Mission

The vision statement of Herbana Farms is stated as follows:

“Our vision is to build the greenprint for the self-sufficienct organic lifestyle for thefuture”.

Herbana Farms does not state any mission statement in the case or even in their website.However, given the company’s set of activities, products and services, operations andother information about them, the Strategists devised a mission statement only based onthe areas and information that the company has elaborated. The mission statement isstated as follows:

“Our mission is to provide learning and experience the natural and organic way and tobring quality from all naturally produced products.”

1.3.2 Analysis of Vision and Mission

The vision statement of the company is broadly stated. Nevertheless, they put anemphasis on what they really want to be in the future, which is to start the effort today ininforming and educating people about organic and natural farming for us to be self-sufficient in producing organic products. Conventional farming is relatively an easier wayof framing compared to organic farming. That is why knowledge and skills on thetechnologies on organic and natural farming should be acquired for us to attain enoughsupply of organic food products. And this is the vision of Herbana Farms is all about.

The company’s mission focuses mainly on their products and services and philosophy.Herbana Farms offers several self-produced organic products and assisted services. In

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line with the trend today of healthy consumption and the flourishing of organic farming,the company promotes organic crops, vegetables, herbs, and other products. The deepcommitment of Herbana Farms, specifically Mr. Carandang, to promote organic farmingas a way to protect the natural resources of the environment can be seen on its line ofservices offered like seminars, trainings, apprenticeship program.

From the nine important components of a good mission statement, the identifiedcomponents are: customers (bring quality fresh products and learning experiences),products and services (organic crops, bottled products and farm apprenticeship, seminarsand tours), philosophy (commitment to the environment and be organically self-sufficient), concern for survival, growth and profitability (the future plans of thecompany), concern for public image (concern for the environmental resources), self-concept (bringing products plus services for one major purpose) and technology(different organic and natural farming technologies).

To further analyze the company’s vision and mission statement, comparison and analysiswere made from two competitors’ mission and vision statement.

The Vision statement of Cal-Organic Farms is stated as follows:

“Our vision is to set the highest quality standards for the industry and ourselves andthen exceed them. We advocate a team approach to grow our business, from the fieldto your dinner table.”

The Mission statement of Cal-Organic Farms is stated as follows:

“Responsibility first.”

“Our success lies in our ability to capitalize on our knowledge of sustainable farming,our passion to provide the best service for our customers, and our sense ofresponsibility to preserve the planet.”

“Cal-Organic maintains an informal work environment where creative thinking,respect, family values, and camaraderie are promoted. We realize and acknowledgethat our co-workers are just as much a representation of who we are as the produce wesell.”

“We recognize that our company's growth is directly correlated to how well we fulfillour pledge. It is our character, our consistency, and our caring that makes us uniqueand ultimately Cal-Organic.”

The vision and mission statement of Cal-Organic Farms is better than Herbana Farms interms of clarity and specificity of the details. Unlike Herbana, Cal-Organic stronglyemphasized its concern for their employees as vital part and member of the company.

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Moreover, they also stressed their social responsibility to preserve the environment. Therest of the components can also be seen in Ca-Organic and almost the same as Herbana’s.

The Vision/Goals of Jacob Farm /del Cabo is stated as follows:

“Our goal is to practice farming and business in such a way that it can be carried onfor generations to come... in a way that takes care of our workers, farmers, the earth,and consumers. We focus on the big picture and strive to seek out greener and moresustainable options company wide.”

The Mission statement of Jacob Farm/del Cabo is stated as follows:

“At Jacobs Farm / Del Cabo, our mission is to grow great tasting, healthy food in asocially and environmentally responsible manner.”

“We strive for a sustainable approach to agriculture, using sound business practicesand organic farming methods. We are proud to have helped many individuals andcommunities prosper through an unwavering vision geared toward social change.”

In the vision and mission statement of Jacob Farm /del Cabo, they put the largestemphasis on their social responsibility, specifically for the environment and society as awhole by providing economic opportunities and a safer environment free of toxic andpersistent chemicals. The company is also pushing for a sustainable agricultural approachthrough innovations and advance organic farming techniques that would provide betterproduction and high-quality products. They also stress their concern for their present andfuture customers and employees.

Comparing Herbana and Cal-Organic, Cal-Organic have almost all of the components ofmission statement and treated them equally or they do not prioritized on a single orparticular component only. Both Cal-organic and Jacob Farm /del Cabo have almost allof the nine components in their mission statements, moreover, Herbana and Jacob Farm/del Cabo both emphasizes on particular components. Herbana focuses on its productsand services and Jacob Farm /del Cabo focuses on social responsibility and sustainableagricultural approach or the technology.

Considering the nine components of mission statement and the analyzing thecompetitors’ vision and mission to go above it, the Strategists has came up with aproposed vision and mission. It is stated as follows:

Proposed Vision:

“Our vision is to be the top provider of quality organic products and continue to bringorganic and natural farming knowledge to everyone towards a sustainable and self-sufficient organic production and consumption.”

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Proposed Mission:

“Sustainable agriculture for sustained and better future”

“Our mission is to be the forefront and market leader in sustainable organic farmingthat would benefit our customers, employees and the environment. We would becapitalizing on our knowledge to all the more improve our products and offer betterservices committed to preserving natural resources and to our social responsibility.”

2. EXTERNAL ASSESSMENT2.1 Opportunities

The industry of organic agriculture is growing; thus, the demand for organic producewould likewise follow.

There is a big market for organic agriculture. As stated by the Department of Trade and Industry,organic agriculture is growing by 10-15% every year in the Philippines. In the world, organicagriculture trading is increasing by 20-30% every year.

In 2005, many farmers from Benguet and the rest of Cordillera in Luzon have shifted to organicfarming practices. Thus, sales of organic fertilizer in the area are greatly affected. AdoracionCeniza, chief of the fertilizer and pesticide monitoring, farm production is better than when itadapted Integrated Pest Management.

According to Food and Agriculture (2001), the Philippine Organic sector is small. Overall valueis estimated to be only P250M, which about 60% goes to imported processed products. Despitethis, it can be said that there is a stable demand for organic produce and a high demandparticularly for organic vegetables. According to the study of Sabado, Jr., (2009), organicvegetables are priced higher than conventionally grown vegetables, but despite the economiccrisis, consumers will still continue to buy. This is greatly attributed to the developingconsciousness of consumers.

Magsasaka at Siyentipiko para sa ikauunlad ng Agham Pang-Agrikultura (MASIPAG) has placedunofficial estimates for value of exports at US $10 million or more last 2003. With no availableexport volume and value for local organic export, at an estimated 20% growth rate, exports couldreach US $18 million or more in 2006.

This is definitely an opportunity to Herbana Farms, since it is a farm specializing mainly onorganic produce. This means that there will always be consumers who are willing to buy organicproducts, even amidst economic crisis.

The trend towards healthy lifestyle is increasing.

Aside from the healthy practices of organic farming which benefit the environment, it also givesbeneficial produce. This is so since no synthetic fertilizer residuals are seeped through the plantsand it has no pesticide residues. With intense and realistic flavors, organic produce has nogenetically engineered organisms or varieties.

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According to UK government guidelines, no evidence pertaining organic produce being healthierthan conventional produce exists. In a study conducted at NewcastleUniversity by Dr. Kirsten Brandt however, it was found out the eating organic products ishealthier. According to her study, organic carrots, apples and potatoes contain greaterconcentration of Vitamin C, and other chemicals that can protect the body against heart attacksand cancer. Also, in an article of Asia Food Journal (2007), it was stated that other new studiesfound out that organic tomatoes have more Vitamin C, beta-carotene and flavonoids which fightagainst cancer and heart disease. These researches are able to contest UK’s banter against organicproduce.

One farmer, interviewed in the study of Sabado Jr. (2009) claims that target market of organicproduce are the 30% affluent people and 70% health conscious consumers which very muchincludes cancer patients. It was stated in his study also that leafy vegetables, particularly lettuce,is the most in demand organic vegetable. This is because lettuce is the main ingredient used invegetable salad used for consumers who are conscious of what they eat because they want to loseweight. Thus, nowadays, more and more people are becoming health conscious and tend to eatmore vegetables and less meat. To be exact, they do not just eat vegetables, but specificallyorganic ones. Many consumers are aware of the benefits that one gets from eating organicvegetables, as opposed to conventional ones. They believe that organic vegetables are safe to eatand thus, the high prices of these produce are well compensated because of the known benefitsthat organic products give.

These health conscious and affluent individuals can be sure consumers of Herbana Farms.

The government and other institutions have strong support to organic agriculture.

Last December 2005, Executive Order No. 481 titled “Promotion and Development of OrganicAgriculture in the Philippines” was approved. This will help in the development of organicproduction markets, the technology dissemination and, assistance to organic farmers andpractitioners.

The very first national Organic Agricultural Planning Workshop was held by the Bureau of PlantIndustry, Bureau of Agriculture Fisheries Product Standards, Organic Producers TradeAssociation and the Philippine Development Assistance Program last June 9 and 10, 2004.Through this, the Philippine National Organic Board was born. This agency supports theimplementation of the Philippine National Organic Standards and Certification System, and theestablishment of a Five-year Organic Industry Development Program.

Also, Organic Certification Center of the Philippines has prepared a plan, which was submitted tothe Department of Agriculture, labeled Philippine National Standards Specification for OrganicAgriculture which is for the purpose of providing uniform approach to the requirements whichconsist of conversion of farms to organic agriculture, crop and livestock production, processing,and others.

In addition, the Department of Agriculture believes that organic farming cuts the dependence onchemical pesticides and fertilizers and so launched the first phase of OFSP that promotes organicfarming. Another effort of DA to promote organic farming was its World Food Day Celebrationlast 2008 which introduced to farmers in Bohol the benefits of organic farming to increase farmproductivity and improve soil fertility as it uses less fertilizer that rubs off soil nutrients.

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NGOs, farmers organizations, local government units and sustainable agriculture advocatesestablished Go Organic! Philippines in order to promote organic farming as a way of life toensure better health, food security, and balanced environment.

Article from BusinessMirror, dated August 18, 2009 also reported that a thorough evaluation ofthe chemical inputs used in the farm was conducted in order to protect the general public formharmful effects.

The government and other institutions’ support greatly help Herbana Farms in many ways. Onewould be indirect promotion of their farm since they practice organic farming. Also, stronggovernment support is needed for the success of an industry.

Organic Farming technologies are developed.

With the approval of Executive Order 481, the need for an information system for organicagriculture is strengthened. To support this, Phil-Organic was launched during the PhilippineSociety of Soil Science and Technology (PSSST) wherein members signed a Memorandum ofAgreement at PCCARD, together with other organizations that the National Technical Committeeshall serve as the data information center which shall integrate and disseminate data throughelectronic and other means to interested stakeholders through the Phil-Organic Network.

Also, in a study conducted by Cortiguerra (2009), estimated potential demand for vermicompost,which can be one of the nutrient-providing inputs of organic farming, is 166, 864 kg. This showsa bright potential as evident from the increasing trend in the volume of production.

Not all know the technical know-how in organic farming, especially with regards to technologyuse. In fact, according to Sabado Jr’s (2009) study, one factor why conventional farmers areconstrained in shifting to organic farming is their lack in technical know how.

With Gil Carandang’s sufficient background in the technicalilties of organic farming, Herbanacan utilize these farming technologies developed, for the advantage of their farm. FromHerbana’s apprenticeships and seminar, the use of these technologies may be introduced andtaught to participants and even to farmers.

There is an increasing popularity of agri-tourism/eco-tourism concepts. There is anopportunity for the farm to serve as retreat area for those who need rest and sereneenvironment.

In order to escape the busy city life of working professionals, agritourism and ecotourismconcepts has become one way of achieving a stress-free and relaxed recreation. Also, tours andvisits are done to know more of organic farm operations. This will surely be an opportunity forHerbana Farms to attract customers with their offered tours and apprenticeships.

It is hard to venture into organic farming.

Although a lot of support has been given to promote organic farming, a conventional farm cannotjust easily shift to organic farming in a snap. Aside from technical know how and skills, itrequires motivations and commitment. Formal training and proper background of such farmingpractices is greatly required. Thus, this is seen as an opportunity by Herbana Farms because itwould mean that there is high barriers to entry in the industry and that farmers or farms that

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would most likely want to convert their farms into organic can ask for their assistance or evenparticipate in their seminars and apprenticeships.

Also, to be fully certified as an organic farm, procedures must be undertaken. For the products tobe fully called “certified”, about 4 years inspections and procedures must be followed.

With the owner being a former head of Organic Certification Center of the Philippines, he canvery well attest that he knows the requirements of such certification standards.

2.2 Threats

The occurrence of natural calamities like storm, flood, and strong winds serves as threat tothe farm.

Typhoons like Pepeng and Ondoy certainly pose as a threat to the farm production of Herbana. Infact, in an article dated October 14, 2009 in The Manila Times, organic farming advocates hadcalled the Department of Agriculture to integrate disaster preparedness and risk reduction byfunding programs that will make farming resilient to natural calamities. Agricultural-basedbusiness are significantly affected by these natural calamities and as such, profitability of thecompany.

There is a continuous increase on the prices of inputsHerbana buys “untreated” seeds from Allied Botanical Gardens and East West Company, sincethese companies are affected by the changing economic trends in the country, brought about byincrease in fuel and the like. This serves as a threat to Herbana since they do not have any controlon the prices of the seeds that they buy, and thus affecting profitability of the company.

There is an intense competition among organic farms.Existing organic farms in the industry have their own means of promoting their products. Sinceone of Herbana’s weaknesses is its low promotional activities, wherein they only engage in tradefairs, exhibits and promote their company through website and word-of-mouth, it would be easyfor those existing organic farms to promote their own products.

3. INTERNAL ANALYSIS3.1 Strengths

The owner is a known advocate of organic farming.Some people refer Mr. Gil Carandang, the owner of Herbana Farms, as the Father of PhilippineOrganic Farming. This is so since he is usually invited as a speaker in seminars because of hispassion for organic farming. Mr. Gil Carandang’s knowledge is due to his learnings from othercountries. His degree in Ecological Culture and apprenticeship has helped him gain his insights.He has been able to gather experiences from Korea, Japan and California about organic farmingand technologies associated with it.

The farm has good quality productsIt can be said that Herbana has good quality products as all are organically produced and are ofhigh value to customers. Also, even if their products are at premium price, customers are stillwilling to buy their products.

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The farm offers diverse organic crops.Herbana Farms practices intercropping and crop rotation. Unlike some farms which only havelimited kinds of crops but are in large volumes, Herbana offers wide array of organic crops. Thefarm offers various organic crops like salad green lettuce, specialty and traditional vegetables, cutherbs and calamansi. They have different varieties for these. Varieties for green salad lettuceinclude romaine, oak leaf, lollo rosa, okayama, and reine de glaces. Varieties for traditionalvegetables include baby carrots, cabbage, cucumber, tomatoes, squash, bitter gourd and eggplant.Specialty vegetables include Swiss chard, Snap bean, Ailaan, Broccoli, Sweet Beets, Shingkang,Kohlrabi, Mizuna, Arugula, and Celery. Herbs such as dill and parsley are also produced. Sweetcorn and Calamansi Fruit are also part of their production. See attached appendices for a completelisting.

The farm has other programs like apprenticeships that might result to attracting potentialcustomersHerbana Farms is not known only for producing organic crops but for the tours, apprenticeshipsand seminars that it provides. From the seminars that the farm provides, the people that will beattending these can become customers in the future. These programs can instill the importance ofgoing organic and to inspire others.

The farm has a well developed area that allows one to experience natureStrategically located at Brgy. Burol Calamba, the farm is surrounded by the view of Mt. Makilingand its fields. This is very much enjoyed by guests and participants of their tours, seminars andapprenticeships. This can be one way of attracting customers, such as urban people who want torelax and would want to go on a recreation.

The farm has available land.Herbana Farms is a four hectare land but is currently just using 1 hectare for its crop production.This gives room for expansion.

The owner has strong communication skill which is one way of promoting the company.The communication skill of the owner is a great help in promoting not only organic farming butHerbana Farms as well. Since he is always invited in seminars and lectures because of hisknowledge in organic farming,

The company has good corporate social responsibility.By promoting organic farming to the society, the company has a way of giving back to theenvironment and promoting sustainable agriculture. This can be a way for Herbana to gainrespect and even reputation. Also, from the ecotourism activity that the company conducts,participants can very well experience what is to relax in a stress-free environment.

3.2 Weaknesses

The owner has insufficient management background.More of the owner’s knowledge is on the technical and production side of farming. He does notpossess or has not undergone proper management training and education in order to successfullymanage the different functions of the company, specially the marketing aspect. Also, hisinsufficient management background has probably paved the way for a lack in formal statementof the company’s mission and core values. Also, this has caused the lack of formal organizationalstructure of the company as only production and marketing seem to be present in the company,but with no formal division.

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Herbana has narrow market distributionCurrently, products of Herbana can be bought in the farm itself and its only major distributionoutlet which in Salcedo Market Makati. This outlet only caters to the market every Saturday fromnine in the morning until two in the afternoon. This is considered as a weakness for the companysince narrow market distribution would mean that there may be market opportunities elsewherethat the company can cater to.

The farm has limited personnelAlthough the farm has regular personnel, provided with lodging within the farm, Herbana still hasto hire additional help when needed. This means that their personnel are not that organized andare only limited. This serves as a weakness for Herbana because there may be cases whenadditional help is needed but no worker will be available, thus affecting the production of thefarm.

Low promotional activitiesHerbana farm just relies on word of mouth, from the lectures of the owner, and its internetwebsite that has not yet been updated. The farm provides ecotourism and joins exhibits and tradefairs but aside from these, no other major marketing efforts are done in order to promote thecompany.

The farm lacks certifications for being an organic farm.Gil Carandang was head of the Organic Certification Center of the Philippines and is nowconsidered a founding member of the said organization. However, despite this, even if the owneris a member of Philippine Organic Standards, Herbana opted not to acquire certification becausethe owner opted not to be active anymore since they consider themselves as a small grower still.See attached appendices for the complete steps of acquiring organic certification.

4. STATEMENT OF STRATEGIC ISSUE

Considering the case facts and the internal and external assessment, the major strategic issueidentified is: How can HERBANA FARM advance its competitive position in the industry?

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5. STRATEGY FORMULATION4.1 Input Stage

4.1.1 EFE Matrix

Table 1. EXTERNAL FACTOR EVALUATION FOR HERBANA FARM

Key External Factors Weights Ratings Weighted Scores

A. External Opportunities

1. The industry of organic agriculture is growing; thus, the demand for organic produce would likewise

follow.

.20 4 .8

2. The trend towards healthy lifestyle is increasing .15 3 .45

3. The government and other institutions have strong support to organic agriculture. .10 4 .4

4. There have been many organic farming technologies that were developed. .07 2 .14

5. There is an increasing popularity of agri-tourism/eco-tourism concepts. There is an opportunity for the

farm to serve as retreat area for those who need rest and serene environment.

.09 3 .27

6. It is hard to venture into organic farming .15 3 .45

B. External Threats

1. The occurrence of natural calamities like storm, flood, and strong winds serves as threat to the farm. .08 3 .24

2. There is a continuous increase on the prices of inputs .07 3 .21

3. There is an intense competition among organic farms. .09 2 .18

TOTAL 1.00 3.14

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5.1.2 IFE Matrix

Table 2 INTERNAL FACTOR EVALUATION FOR HERBANA FARM

Key Internal Factors Weights Ratings Weighted Scores

A. Internal Strengths

1 .The owner is a known advocate of organic farming. .09 4 .36

2. The farm has good quality products .11 3 .33

3. The farm offers diverse organic crops. .09 4 .36

4. The farm has other programs like apprenticeships that might result to attracting potential

customers

.11 4 .44

5. The farm has a well developed area that allows one to experience nature .04 3 .12

6. The farm has available land. .09 4 .36

7. The owner has strong communication skill which is one way of promoting the company. .05 3 .15

8.The company has good corporate social responsibility. .05 4 .20

B. Internal Weaknesses

1. The owner has insufficient management background. .06 1 .06

2. Herbana has narrow market distribution .15 2 .3

3. The farm has limited personnel .05 1 .05

4. Low promotional activities .04 2 .08

5. The farm lacks certifications for being an organic farm. .07 1 .07

TOTAL 1.00 2.88

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Table 3. Competitive Profile Matrix for Herbana Farms

Gourmet Farms Herbana Farms Old Kano’s FarmCompetitive Factor Weight Rating Score Rating Score Rating Score

Supply Chain Management .18 2 0.36 2 0.36 2 0.36

Volume flexibility .15 3 0.45 1 0.15 2 0.30

Customer relationship management .15 3 0.45 4 0.60 4 0.60

Intensity of Promotion and advertisement .05 3 0.15 3 0.15 2 0.10

Technology .14 4 0.56 3 0.42 1 .14

Product line breadth .08 4 0.32 4 0.32 3 0.24

Product quality .25 4 1 4 1 4 1

Total Weighted Score 1 3.29 3 2.74

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Table 1 shows that the total average weight of 3.14 means that Herbana is not below its averageperformance. The heighest weight of 20% is given to the growing organic industry and it is seen thatHerbana is able to respond to this opportunity. In general, Herbana has been able to cope or takeadvantage of the industry’s opportunities. With regards to the threats however, it is seen that Herbana canstill improve on this part and devise ways to take the threats to their advantage.

Table 2 shows that the company’s major strength are its products, services and available land. Its majorweaknesses are marketing and personnel which results from the owner’s lack of managerial background.A total weighted average of 2.88 indicates that Herbana Farm is above average in its overall internalstrength.

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5.1.3 CPMIn order to successfully analyze the position of Herbana Farms with regards to itscompetitors in the industry, a competitive profile matrix is presented using informationfrom previous studies, the internet and other related articles.

With this, the following are the identified key success factors:

Supply Chain Management is given a weight of 18%. It is given the second highestweight since the industry mainly deals with farm, it is important to note where the farmgets its inputs and where its products are distributed.

Volume flexibility refers to the ability of the farm to meet the demand or requirements ofcustomers in terms of volume. This competitive factor is important to consider sinceagricultural activities like crop production are highly affected by natural factors. Unlikeindustrial products, 100 percent and uniform productivity is uncertain. Thus, it isimportant for a farm to have a proper scheduling of production activities so that it will beable to have a continuous supply of produce to respond customer quantitative demandsand to provide customer satisfaction. This competitive factor, having a weight of 15%,also suggests the farm’s sustainability. This can be measured through looking at thecapacity of the farm, the volume of production on given period, number of distributionoutlets, and number of customers declined due to inability to meet their demand in termsof volume, amongst others.

A good customer relationship refers to the regularity of demand through customerloyalty as a result of good farm service and dealership to customers. In any business,good customer relationship is a priority. Since this competitive factor mainly relates tocustomer satisfaction, this was given the same weight 15% as volume flexibility. Thisfactor can be assessed by considering the number of regular or loyal customers, numberof customers acquired within a given period, and number of customer complaints,amongst others.

Agricultural produce like vegetables and livestock animals are basically undifferentiatedproducts in the market. Thus, these do not need much promotion. This justifies then whythe intensity of promotion, as competitive factor, was given only a weight of 5%. Thisfactor was considered as one of the competitive factors in CPM for the purpose ofproviding an overview of how well the farm is known or attractive to customerscompared to other farms in the industry by looking at the promotional activities andcampaigns of the farm. Furthermore, promotion is considered as one tool of value-adding.

Productivity is one of the issues faced by the organic farming industry as a result of thegrowing response to food security. Organic farming basically produces lower yields thanconventional farming. To say from here, organic farming cannot feed the growingpopulation of the country. This is one of the reasons why conventional farming cannot beput in the picture out. Considering these, development of new technologies andtechniques that would increase more the productivity of organic farming has been a taskfor researches nowadays. Thus, these justify why technology was considered as acompetitive factor with a high weight of 14%. This factor can be measured by assessingthe current technologies and techniques adopted by the farm. The technical skills also offarm personnel can also be an indicator of this factor since it relates to technologicalawareness in organic farming,

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Product line breadth refers to the wideness of product offerings of the farm. A wideproduct line, particularly of agricultural produce, is advantageous in the sense that risk isminimized. This factor also suggests the farm’s response to different consumerpreferences and favorites. Product line breadth can be measured by considering thenumber of product offerings of the farm. In particular, it can be measured throughlooking at the number of crops planted and sold to market and as well as the number ofproducts derived from crops planted. This factor was given a weight of 8%.

Product quality, being basically the name of the game nearly for all industries, was alsoconsidered with the highest weight of 25%. This factor can be measure by consideringthe varieties planted by the farm and evaluating the post-harvest practices of the farm.Product quality, in terms of varieties, may suggest the following factors: resistance topest and diseases; early maturity; long shelf life; etc. On the other hand, post-harvestpractices (sorting, cleaning, etc) contribute to the attractiveness of the produce of thefarm to consumer’s eyes. A well-cleaned vegetable for example suggests good quality.

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Supply Chain Management. Gourmet Farm is rated 2 because it is not yet fully integrated. Ithas its own processing facility in Silang, Cavite and a distribution system. However, majority ofits raw materials/inputs is supplied by farmers from Batangas and Cavite. Gourmet is just contractgrowing with the farmers as part of their corporate social responsibility according to themarketing manager of the company. The company buys their produce at a fair price and then sellsit at a premium. On the other hand, Herbana Farms is also given a weight of 2 with regards todegree of integration because the farm actually produces all of its inputs except for seeds. Also, itonly has 1 point of distribution, aside from the farm itself. Herbana sells only its products inSalcedo Market every Saturdays. And lastly, the Old Kano’s Farm is rated 2 when it comes tothe degree of integration since they only produce fresh vegetables and herbs in which they supplyto luxury hotels such as Manila Peninsula. The farm does not produce its own seeds instead theyare purchased from outside sources. The farm was also given this rating because they are notengaged into food processing and just cater their fresh produce as ingredients.

Volume Flexibility – For their coffee product, Gourmet is accepting institutional buyers likehotels. But early order must be executed because they are only roasting their coffee beans uponorder instead of stocking roasted beans to avoid quality deterioration of the coffee. They havelarge area for their lettuce, that’s why they can produce many of them. A rating of 3 is givenbecause their volume flexibility is above the average. Herbana Farms is given a rate of only 1because in its listed 25 items and corresponding volume of production in kilograms, only 7 of itsproducts are produced more than 10 kg per week. Its other products are sold weekly at aminimum of 2 kg only. The owner believes that producing vegetables in high volume wouldcause imbalance in the ecological system. Also, only 1 hectare is utilized for its crop production.Old Kano’s Farm has a total lot area of 12,747 square meters which is quite small even for ahigh-value cropped farm. In terms of volume, the farm was able to provide the necessary amountof herbs needed by its buyers; but they are not that flexible since they only produce a fix amountof produce per week. Also sometimes, they are being asked by its buyers if they can also growother kinds of herbs and this lead to the extension of their product line to 18 varieties. A rate of 2is given.

Customer Relationship Management. The customers of Gourmet mostly are institutional buyerswhich include supermarkets, hotels and restaurants in Metro Manila and fast food chains likeMcdonalds. The company maintains its close relationship with its customers by offering highquality, safe and healthy products. Gourmet also guarantees its customers to deliver their ordersat the set date and the right amount. It is given a rate of 3. Herbana Farms is given a rating of 4because not only is the farm focused on the production aspect, but the owner makes sure too thatits customer becomes an advocate of organic farming. This is done by the presence of the SalcedoMarket wherein the owner himself is present every weekend to interact with the customers. Asidefrom that, the farm also is engaged in farm tour wherein interested customers may opt to visit thefarm. Most importantly, Herbana offers too farm apprenticeship and seminars. This is hisaccordance again to his advocacy for sustainable agriculture to people and community. The OldKano’s Farm has a good working relationship with its customers, which is why we gave them arating of 4. Way back then, the farm started producing commercially is when one visitor namedWerner Beger discovered the owner’s, Mr. Amman’s bed of dill, bought some of it and laterintroduced him to the Chef of Manila Peninsula and established a good relationship since then.They were able to do so by continuous compliance to their customer’s orders. And this is alsohow their relationship with other customers flourished.

Intensity of advertisement and promotion – Promotion and advertisement was not commonlydone by organic farms, so rating of 2 was given. But since Gourmet farms already expanded andalready have cafeteria and store for their organically produced products and dishes, they also

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engaged in advertising via the internet and made their website for the basic information abouttheir company, basically on products. They are also accommodating tours on their farm, which isalso a form of promotion. Rating of 3 was given because they didn’t perform poorly on thataspect. Herbana Farms is given a rating of 3. The products of the farm are promoted throughtrade fairs and exhibits like Agrilink and Biosearch. The owner himself conducts seminars andlectures and because of the owner’s advocacy for organic farming, the owner has been invited toseveral seminars to talk about his passion. Through this, Herbana farms has been well known.One promotional tool it also uses is ecotourism. Another would be use of internet through itswebsite and by word-of-mouth. It has also started packaging its bottled products with the owner’sname printed on it in order to conform to his advocacy of organic farming. That is why it is givena rating of 4. On the other hand, the level of intensity in terms of advertisement and promotion ofOld Kano’s farm is relatively low because they are satisfied with their current level of operation.Also, their advertisement is not intensive. For example, their website does not provide all thenecessary information needed by interested customers. This will have an effect on their futureoperations. Because of this, we only gave them a rating of 2.

Technology. When it comes to technology, Gourmet uses state of the art equipment inprocessing their products so it was rated 4 by the group. It caters to renowned fast food chains inthe Philippines like McDonalds for their coffee. With their technology, they were able to catercoffee to the export market before as stated by the company’s marketing manager. They withdrawfrom the export market because they were not able to sustain the demand for coffee due to thedeficiency of supply of coffee beans in the Philippines. Herbana Farms is a demo farm whichfocuses on technology dissemination. It is given a rating of 3 because although the owner has hadample information regarding organic farming technology through his different experiences inCalifornia, Korea, and Japan, no sufficient information has been told about definite use oftechnology. Only practices in which he adopted his learnings in Canada and Japan are cited. Also,the farm lacks organic certification, all of its activities and operations follow the requirements setby OCCP Certification Standards of Organic Agriculture and Processing. Old Kano’s Farm usesgreen house farming but is not inclined into so much technology; we can say that they are notsince they still do not have their own processing facilities. They are just currently producing freshvegetables and herbs. But these fresh produces has 18 varieties, different varieties from differentplaces around the world, and this may need only the basic farming technologies. So with this, arating of only 1 is given.

Product Line Breadth. Since health and wellness are the forefront of Gourmet’s objectives, itproduces a wide array of organically grown products from coffee, herbal teas, organic produce,refresher’s salas to kitchen exclusives such as dressings, sauces, spreads, natural oils, herbs andwine vinegar. The group assigned a value of 4 because of the scope of its product line is wide.Herbana Farms is also given a rating of 4 because of wide scope of products. It offers organiccrops such as salad green lettuce, specialty and traditional vegetables, cut herbs and calamansi.Aside from that, it also offers bottled products which act as microbial inoculants. Included in itsproduct/service line is its offer on farm apprenticeship, seminars and tours. Old Kano’s Farmhas a broad product offerings, the vegetables are namely green ice, romain, lolo rosa and redlettuces, tatsoi, mizuna, cucumber, New Zealand spinach, baby carrots, endive, french beans,kohlrabi, red raddish, cherry tomatoes , turnips Tokyo and stripped eggplant, and the 18 variety ofherbs are purple basil, sweet basil, cilantro, dill, marjoram, mint, Italian oregano, Italian parsley,arugula, rosemary, sage, sorrel, Mexican tarragon and thyme , they also have some spices like theThai pepper, the habanero pepper and the cayenne, other products like tatsoi fine leaves, mizunafine leaves, rocketa fin leaves, fennel fine leaves, kohlrabi fine leaves ,sorrel fine leaves, mesclunleaves mix with lettuce leaves , mustard and radish sprout. They are the pioneer in producingorganic products in Region 4 but a rating of only 3 is given since all their products are just crops.

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Product quality – Gourmet Farms Inc. having its early start on coffee trading in the Philippineshas already acquired the mastery of coffee roasting and choosing finest coffee beans, The dishes,salads, dressings and others included in their menu all come from finest ingredients andorganically grown herbs. So rating of 4 is reasonable. Herbana Farms is given a rating of 4because it is able to dictate a premium price as it capitalizes high quality products. The farm hadalready been able to set loyal customers that practices repetitive purchasing because of the qualityof products. So far, no noted complaints given by customers have been heard of. Old Kano’sFarm is rated 4 when it comes to product quality. They cater the luxury hotels, and this is a goodindicator that they are trusted to produce high quality vegetables, herbs and spices. And throughthe years they already acquired loyal customers.

In terms of overall rating, Gourmet Farms is the most competitive among the three, given theidentified key success factors. Perhaps it received the greatest score because of its 0.56 rating intechnology. As for Herbana, it needs improvement in volume flexibility. All in all, it is seen thatGourmet Farms has a total weighted score of only 3.29 while Herbana has 3.00 and Old Kano hasa total weighted score of 2.74.

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5.2 Matching Stage (TOWS Matrix)

Opportunities Threats

1. The industry of organic agriculture is growing;thus, the demand for organic produce wouldlikewise follow.

2. The trend towards healthy lifestyle isincreasing.

3. The government and other institutions havestrong support to organic agriculture

4. There have been many organic farmingtechnologies that were developed

5. There is an increasing popularity of agri-tourism/eco-tourism concepts. There is anopportunity for the farm to serve as retreat areafor those who need rest and sereneenvironment.

6. Venturing in organic farming is difficult thusinhibiting entry of other firms

4. The occurrence of natural calamities likestorm, flood, and strong winds serves asthreat to the farm.

5. There is a continuous increase on theprices of inputs

6. There is an intense competition amongorganic farms.

Strengths S-O Strategy S-T Strategy

1. The owner is a known advocate of organic farming2. The farm has high quality products

offered at premium prices3. The farm offers diverse organic crops4. The farm has other programs like apprenticeships

that might attract potential customers5. The farm has a well developed area that allows one

to experience nature6. The farm has available land for expansion7. The owner has good communication skills which can

be beneficial for the promotion of the farm and itsproducts to potential customers.

8. It has a good corporate social responsibility

S6, S7,O1, O2 – Market DevelopmentS6, S1, O1, O4 – Strategic AllianceS2,S3,S6,O1 – Forward Integration

S2, S3, S4, S5 T3 –Differentiation Strategy

Weaknesses W-O Strategy W-T Strategy1. The owner has insufficient management background.2. Herbana has a narrow market distribution3. Limited personnel4. Low promotional activities5. The farm lacks certifications for being an organic

farm.

W2, W4, O1 – Forward Integration

W2, W4, O1, O2 – Strategic Alliance

W5, W4,T3, – Outsourcing Strategy

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5.3 Alternatives

There were several alternatives identified by the group based on the fitness of internal factorswith the external factors. However, the group narrowed the number of alternatives into threewhich addresses the strategic issue faced by Herbana Farms. The alternatives chosen by the groupare the following:

Market Development

The market for organically produced products has been increasing over the past few years due toincreasing awareness and concern for a healthy lifestyle. This caused a positive shift in thedemand curve for organic products. With this, the organic industry has become attractive forHerbana Farms and other key players in the industry. However, Herbana’s only market is theSalcedo market making the farm’s market share limited to the size of Salcedo market.Considering that Herbana has still available land for expansion, it can increase its production tocater for the growing demand for organic products.

With this, Herbana could advance its position in the industry through market development. Thegroup suggests that it should not only focus on Salcedo market alone. Herbana should expand itscoverage to strategic locations where disposable income is relatively high such as the whole ofMetro Manila. It may also opt to locate in areas which are not yet saturated with organic farms toavoid competition with other organic products.

However, additional costs on distribution and additional personnel will be incurred. Also, asubstantial amount of money will be needed to conduct market research in determining thestrategic areas to enter.

Forward Integration

Herbana could integrate forward by extending its marketing arms. This can be done by making itsproducts available to as many outlets as possible which the farm could sustain in the long run. Byincreasing the number of outlets, Herbana’s products can be exposed to many customers thusincreasing customer contact points. However, its primary drawback is that it increases the cost ofthe farm. But with the increase in sales because of higher customer contact, Herbana could coverfor these expenses and still realize a profit.

Differentiation StrategyAt present, there are many competing brands of organic products in the market. This was broughtabout by the intensifying competition among organic products as well as non-organic products. Acustomer’s psychology is that all organic products are healthy without realizing the differencesbetween them if what product is the most effective or which brand gives the most attractivebenefits. This is because not all customers are like Albert Einstein who knows the effect of allsubstances present in the product. Therefore it is necessary for Herbana to differentiate theirproducts from that of its competitors. Differentiation strategies are an attractive competitiveapproach. Its strategic advantage is that customers will perceive that the product is unique. To beable to do this, Herbana should establish a strong position in the market by offering a uniquecustomer benefit and a distinct marketing mix. With this, Herbana will be able to neutralize thecompetition with other organic products.

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5.4 Decision Stage (QSPM)

Table 4. Quantitative Strategic Planning Matrix for Herbana FarmsKey Factors Wt Market Development Forward Integration Differentiation Strategy

Opportunities AS TAS AS TAS AS TAS1. The industry of organic agriculture is growing; thus, the

demand for organic produce would likewise follow 0.20 4 0.8 4 0.8 2 0.4

2. The trend towards healthy lifestyle is increasing 0.15 3 0.45 3 0.45 2 0.33. The government and other institutions have strong support

to organic agriculture 0.10 1 0.1 1 0.1 1 0.1

4. There have been many organic farming technologies thatwere developed 0.07 0 0 0 0 4 0.28

5. There is an increasing popularity of agri-tourism/eco-tourism concepts. There is an opportunity for the farm toserve as retreat area for those who need rest and sereneenvironment.

0.09 2 0.18 1 0.09 3 0.27

6. Venturing in organic farming is difficult thus inhibitingentry of other firms 0.15 0 0 0 0 0 0

Threats1. The occurrence of natural calamities like storm, flood, and

strong winds serves as threat to the farm. 0.08 0 0 0 0 0 0

2. There is a continuous increase on the prices of inputs 0.07 1 0.07 1 0.07 1 0.073. There is an intense competition among organic farms 0.09 3 0.27 2 0.18 4 0.36TOTAL 1.00

Strenghts9. The owner is a known advocate of organic farming 0.09 3 0.27 2 0.18 3 0.2710. The farm has high quality products

offered at premium prices 0.11 4 0.44 4 0.44 4 0.44

3.The farm offers diverse organic crops 0.09 4 0.36 4 0.36 4 0.364.The farm has other programs like apprenticeships that

might result to attracting potential customers 0.11 0 0 0 0 3 0.33

5.The farm has a well developed area that allows one toexperience nature 0.04 2 0.08 2 0.08 3 0.12

6. The farm has available land for expansion 0.09 3 0.27 2 0.18 1 0.09

7.The owner has strong communication skill which is one wayof promoting the company 0.05 3 0.15 1 0.05 1 0.05

8.It has a good corporate social responsibility 0.05 3 0.15 1 0.05 1 0.05Weaknesses

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1.The owner has insufficient management background 0.06 2 0.12 2 0.12 1 0.062.Herbana has a narrow market distribution 0.15 4 0.6 4 0.6 1 0.15

3.Limited personnel 0.05 2 0.1 1 0.05 1 0.05

4.Low promotional activities 0.04 3 0.12 3 0.12 2 0.08

5.The farm lacks certifications for being an organic farm 0.07 1 0.07 1 0.07 1 0.07

TOTAL 1.00TOTAL STAS 4.6 3.99 3.90

Using the QSPM, market development strategy obtained the highest attractiveness score. The group therefore recommends that Herbana shouldpursue market development strategy to advance its current position in the organic agriculture industry.

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6.IMPLEMENTATION

To increase market share, Herbana should pursue market development strategy. In connectionwith this, the company should first evaluate its current financial status if it has the capability toimplement and sustain such strategy. It can either employ its personal resources or seek the aid ofexternal financing if needed. Since there is a strong support for organic agriculture coming fromthe government and other institutions, Herbana could avail subsidies deemed by the governmentand other assistances.

Since there is still available land for expansion, engaging in market development strategy wouldrequire an increase in production to be able to serve the demands for the different geographicalareas. If current production capacity of the farm cannot still meet the demand of the market, itcould rent or acquire lands depending on their preference and financial status.

After evaluating its production capacity, Herbana will decide what geographical areas to enter.The basis for deciding the most strategic location is to consider the level of disposable incomeand the degree of saturation of potential locations. The higher the disposable income of a certainarea, the more attractive it will be for Herbana to enter that area. Areas with high levels ofdisposable income were the Metro Manila area and urban areas in Cavite, Laguna, Batangas,Davao and Cebu. A good location is also one that is not saturated with organic farms so that whenHerbana enters the area, competition with other organic products will be avoided. To determinethis, Herbana will conduct competitor analysis to be able to identify rivals and their relative sizes.This will narrow down the selection of possible potential areas where Herbana should enter.

7. EVALUATIONConsumer’s acceptance of Herbana products in the newly entered areas could be determinedthrough market surveys of residents of that area. This is to solicit feedbacks from customers andto determine the preferences of the residential folks. Those who are not buying Herbana’sproducts could also be interviewed to find out why they do not purchase the products.

The effectiveness of the chosen strategy will be evaluated by comapring historical sales recordsand net profit of the farm with that of the new sales and profitability. Industry analysis will alsobe done to determine the market share of Herbana farms relative to the industry if it has improvedor not. If the result of the study shows that Herbana’s market share has not improved, the keypersons should review the strategy to identify points as to why it is not working.

Herbana should also monitor how its competitors would react with its strategy. This is necessaryto know what actions were made by the competitors to counter Herbana’s strategy which willprevent it from gaining the market shares of the other key players in the industry. This can bedone through market sensing, ghost shopping and surveying competitor’s customers.

If the strategy proves to be successful, the key persons shall identify the factors contributing tothe success of the game plan. These factors will be further improved. On the other hand, factorsthat might bring down the game plan will be addressed properly.

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8. APPENDICES

The following services are offered by the company:

Organic farm development: designing, planning, and building Ecological architecture Organic landscaping of residential, commercial and institutional properties Eco-tourism development Consultancy for organic certification Trainings and lectures on organic agriculture

o sustainable biointensive mini-farmingo natural farming system for crop and livestocko grow your own indigenous microorganismso planning, designing, and construction of sustainable organic mini-farmo permaculture basicso looking at the land: designing from natureo selected herbs of the tropicso natural building workshopso introduction to agroecologyo mushroom cultureo natural farming system of growing free-range chicken

Fig. 1. Actual lecture on organic farming

Eco-tourism

self-guided tour guided tour micro-teaching sessions on variety of topics including composting,

vermiculture, herbs, etc. accommodation packages are also available. Combination options may

include Reed House and bunk rooms. Full catering can be provided uponrequest.

" Own a Farm Over the Weekend " This special package includes full use ofour farm facilities, independent Reed House accommodation, maid service,and full catering services. Micro-teaching sessions can be arranged uponrequest.

Seasonal garden plot leases. Full farm support provided for in your absence.

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Own a mini-farm in our Herbana Eco-Village. We can assist in planning,design, construction and maintenance of your sustainable eco-farm in thiseco-village.

Fig 2. Actual hands-on teaching session

Training

Seminars and workshops were also being conducted at the Herbana Farms. sustainable bio-intensive mini farming natural farming system for crop and livestock grow your own indigenous microorganisms planning, designing, and construction of sustainable organic mini-farm permaculture basics looking at the land: designing from nature selected herbs of the tropics: natural building workshops introduction to agroecology mushroom culture

Fig.3. Actual seminaron organic farming

Apprenticeship Programs

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The farm also provides apprenticeship that will both accommodate local andinternational participants. In this program, participants will be able to learnsustainable farming systems as practiced in the farm first-hand, via semi-formalclassroom instructions, field trips, and actual farm works. Several sustainablefarming technologies shall include organic, French intensive, biodynamics andnatural farming, including agroecology and permaculture. As part of theprogram, it will not just be limited to the technical production side but will alsoinclude social issues affecting the local food systems.

Fig.4. Some of the participants inapprenticeship program

In addition to the above mentioned farm produce of the comany, Herbana Farmsalso offers affordable products like microorganisms, plant extracts and others.The summary and description of these products are on table 1.

Table 1. Bottled products of Herbana Farms

Product Product descriptionLactobacilli* A dietary supplement and microbial inoculant. It is used for digestion balance

and support, and improve nutrient intake. It aids in the decomposition processand arrests foul odors associated with anaerobic decomposition.

Ginger-garlicfermented extract*

A bionutrient, natural antibiotic dietary supplement. Both ginger and garlichave been traditionally used in indigenous medicine. Ginger has been knownas anti-inflammatory and digestive aid while garlic supports cardiovascularsystem. Both have anti microbial properties and are antioxidants.

Beneficial indigenousmicroorganisms(BIM)

Microbial inoculant, cultured from biodivered forest and grasslandmicroorganisms including lacto bacilli for composting, soil building, includingcontrol of pest and diseases.

Forestmicroorganisms(FM)

Indigenous microorganisms gathered from our local forest. use as soilconditioner, beneficial fungal association.

Bamboomicroorganisms(BM)

Indigenous microorganisms gathered from our local bamboo grove use as soilconditioner, beneficial bacterial association.

Immu-boost Plant extracts derived from several herbs of known antioxidant and immune

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boosting properties of oregano, guava and turmeric.Calphos Natural calcium-phosphate extract, improves plant resistant to diseases,

general health through better access and strengthening of plant cell walls.Banana squashpapaya (BSP)

Flower-fruit enducer. Good source of potassium.

Silica extract Increases sunlight utilization of plant and rate of photosynthesis.Neem pesticideextract

A broad spectrum botanical pesticide.

Beneficial pest(Benpest)

Botanical plant extract, a natural pesticide plant extract derived from neem andGliricidia sepium plus BIM.

Kangkong naturalgrowth promotant

Plant extract use to hasten plant growth and development

Vitaherb Fermented herb syrupFarmer Healing andMoisturizing Salve

Supports healing, healthy immune function, radiant and vital skin

Lemon Grass Cooler Natural refreshing and cleansing drink

*This product is not intended to diagnose, treat, cure or prevent any disease.**These statements have not been evaluated by Food and Drug Administration.

The company, as part of its commitment on informing other people on the importanceand different procedures of organic farming, also sell booklets. The following are the titleof the said booklets:

1. Indigenous Microorganisms: Grow Your Own Beneficial Indigenous Microoganisms andBionutrients in Natural Farming

2. Organic Intensive Mini-Farming3. Basic Manual for a Small-scale Sustainable Food System4. Sustainable Biointensive Mini-Farming5. Natural Farming for Free-Range Chicken6. Mushroom Culture7. Culinary and Medicinal Herbs: Grow and Process Your Own8. Selected Culinary and Medicinal Herbs9. Organic Conversion10. Philippine National Standards Specification for Organic Agriculture

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9.SOURCES

www.herbanafarm.com

Cortiguera, Joane Carla F. 2009. Market Potential of Vermicompost Produced in Laguna, 2008.Undergraduate Agricultural Economics Thesis. DAE, CEM, UPLB

Sabado Jr, Rodolfo R. 2009. A study of the decision factors in organic vegetable farming in selectedareas of Luzon. Undergraduate Special Problem. DAM, CEM, UPLB.

Business Mirror. July 13, 2009. UP study shows benefits of organic-rice production. Retrieved: August 9,2009 from

http://businessmirror.com.ph/component/content/article/53-agri-commodities/13088-up-study-shows-benefits-of-organic-rice-production.html