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Enhancing Profitability In Family Farms Esther Penunia Asian Farmers’ Association (AFA)

Profitability in Family Farms

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While small scale family farmers grow food, and produce 70% of the food in this region, we remain to be poorest, hungriest, mostmalnourished? Why ? First because many of us do not have adequate access , control or ownership of the basic natural resources needed to do farming: land, waters, forests, seeds. Without land rights, we cannot decide what to plant, when to plant, where to market the produce, and in many cases, get only a 30% share of the produce of the farm. Without water rights, the fishes we could have captured in our seas and waters are first captured by big commercial trawlers, leaving so little for the many of us who would like to fish. Without forestry rights, we lose our forests to big mining and logging companies. Without rights to breed, conserve, save and exchange seeds, we will be dependent on the seeds of big and multi-national seed companies.. Second, our yields are low, of inferior quality, and we do not have the money to buy necessary inputs such as seeds, fertilizers or even farm tools or put up needed services such as irrigation, electricity.

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Page 1: Profitability in Family Farms

Enhancing Profitability In Family Farms

Esther PenuniaAsian Farmers’ Association (AFA)

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In Partnership with:

FAO, SEWA, ASIADHRRA (main TA providers)

MTCP2

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Why are we poor, hungry, malnourished?

• Natl Resource issuesLand,Water, forests, Seeds)• Productivity issues• Marketing issues• Climate change and natural disasters • Governance issues

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Local Initiatives to Establish

Food Reserve

In Cianjur (West Java Province)

In Boyolali (Central Java Province)

1. “Lumbung Pangan”

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2. Developing Local Seeds. Rice seeds cross-breeding in Boyolali (Central Java Province), and Ngada (East Nusa Tenggara Province), while maize seeds breeding is in Kediri (East Java Province)

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3. Establishing Cooperatives “Tunda Jual” (putting off the

selling) in Brebes (Central Java) and Kediri (East Java)

4. Join Cooperation with rice and vegetables wholesales

markets in Jakarta

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5. Research and multi stakeholder meeting on Rice: “Government Purchasing Price (HPP)” in Jakarta (related ministries are

Agriculture, Trade, Forestry, Bulog (Logistic Agency), and Ministry of Coordinator of Economy)

Indonesian Peasant Alliance (API) has been advocating the better price of rice for small producers through a serie of research on Government Purchasing Price based

on multi location and multi variety of rice instead of single price.

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7. Building Collective Marketing

Strengthening farmers’ association, developing economic organizations in rural areas, building the capacity of farmers in order to develop collective marketing.

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Picture2: Canal and dike preparationPicture1: Multi-purpose farm

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Renewable Energy System

• bio-digester program encourages farmer to use power source by using cattle and pig dung. It can produce biogas from cattle- and pig manure. This yields gas for the stove and for lighting. And it reduces emissions of methane, which would otherwise be produced by the decomposing manure.

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In the community….

- 80 farmers use SRI-size of families experiencing insufficiency in ricedecreased from 30 percent to 10 percent• duration of rice shortage declined from 3 to 6 months to only 3 months at most• able to save on cost of production, especially onchemical fertilizers and seeds, resulting in anincrease in income from rice production

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Savings and Credit Group – from local to national

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Pablo De Ocampo, a calamansi producer

42 Years old, Married Calamansi Cluster Leader, Bgy

Antonino, Victoria, Oriental Mindoro Farmer Technician Member of MESAFED

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Our farms are almost planted solely to calamansi. Most of our calamansi stands

are now old and tall. Harvesting is the most costly part of our production -

second to hauling.

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I also intercrop bananas in between the pineapples. I need banana trunks for my vermicast production as fertilizer for my

crops.

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At the side of the farm, I planted more than 1,500 hills of ube. I project to

earn ___ pesos after one year.

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BlockArea

Crops Area(Sq. Mtrs

Volume Expenses

Projected Gross Income

Block 1

Household Vegetables

400 284 hills

2,951 7,830

Block 2

Free Range Chicken

1,728 100 chicks

9,790 18,000

Block 3

Muskobe Duck 1800 100 chicks

1,950 15,000

Block 4

PineappleBananaLemon Grass

2400 2,400 hills144 hills144 hills

19,064 114,480

Block 5

Ube 630 2268 hills

24,844 170,000

Main Crop – Fresh Calamansi

51,420 257,100

Lanzones - Pakyaw 86,400

TOTAL 110.019 668,810

Net Income 558.791

Per Month 46,566

Per Day 1,552

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Partnership with local government units on different advocacy issues primarily on environment, and various development projects especially on sustainable agriculture.

Improvement of farm technologies and practices based on organic farming

Building Agro-Business Enterprises; linking farmers to market.( Presentation will concentrate on the Agro-Business Enterprises.)

Mindoro Ecological and Sustainable Agriculture Federation, Inc. (MESAFED)

ACTIVITIES OF MESAFED

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Processed food products produced by some of MESAFED’s primary members

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Virgin Coconut Oil

Organic Rice Trading

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Production of bio-organic fertilizers

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Collective Marketing of Fresh Calamansi

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The solutions we offer

• sustainable, integrated, diversified, organic/ecological friendly agriculture which is owned , controlled and managed by small scale women and men farmers, fishers and indigenous peoples,

• Joint/collective /cooperative production and marketing activities ; sustainable enterprises

• Massively supported by goverrment policies and programs

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2. FOOD LOSSES AND FOOD WASTE• Food Losses

– Take place at the beginning of the supply chain - during production, post-harvest and processing stages in the food supply chain

• Food Waste – Food losses occurring at the end of the food supply chain and is largely

associated with the behavior of retailers, the food service sector and consumers.

• Food losses and wastes reduce food availability and contribute to greenhouse gas emissions. They also represent the wastage of inputs - water, energy, fertilisers, labour and capital - used in food production, distribution and disposal.

Global Challenge/ParadoxesUnsustainable food production and consumption

1. DOUBLE BURDEN: Under-nutrition and Obesity- One in three developing country children under the age of five

(171 million children) are stunted due to chronic undernutrition- At the same time obesity rates have increased drastically in

some countries over the last 30 years. 43 million children under five years of age are overweight, and obesity affects around 500 million adults, increasingly in low and middle income countries

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Sustainable Food and Nutrition Security by small-scale farmers: key to ending hunger

1. Access to key productive resources (land, water, seeds, energy, etc)2. Public and Private investment in small-scale food producers (particularly women) including fishers, pastoralist 3.Meaningful participation of small-scale farmers in governance

http://www.soilassociation.org/sustainablefoodcities/thefivethemes

More diverse diets than Fortification & biofortification

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The support we ask

• A clear, systematic redirection of investment, funding, research and policy focus on sustainable, integrated, diversified, organic farming and agro-based enterprises by smallscale producers

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Particular support in

• More Agricultural research and investment• Strengthen links between research,

advisory and extension• Technical assistance , focusing on women• Capacity building • Representation in policy making

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Policy Objectives

• 2 major policy objectives :-support and promote the sustainability of farmer-owned and farmer-led private enterprises. -ensure that the sharing of risks and benefits between farmers and investors are equitable and inclusive and does not further undermine the farmers’ livelihood and welfare.

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Agricultural InvestmentPolicy Lever

 

Policy IntentPolicies that support smallholders Policies that support women

Investment policies

• Scrutiny of investment proposals and monitoring of approved investments to protect smallholder interests

Tax incentives for sourcing from or working with smallholder

Gender-sensitive screening and monitoring

Control over land and natural resources

Measures that strengthen local rights to land and natural resources

Redistributive reforms Protection of customary rights Simple, low-cost, accessible land records/

registration Requirements for local consultation and

FPIC

Repeal of gender-discriminatory clauses

Address conflict between statutory and customary land laws

Guarantees for women to own, inherit, buy/sell land in own right

Joint land titling Gender quotas

Access condition for land and natural resources

Regulation of commercial investment Restrictions on land ownership Charging adequate prices for land Open contracting

 

Contract farming and supply chain relationships

Access to information on technology and markets

Contract support, regulation, monitoring

 

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Market Governance Policy Lever Policy Intent

Policies that support smallholders Policies that support womenProducer organisations

Laws and tax to support smallholders to compete Protection of autonomy of cooperatives No taxation of intra-cooperative trade

Remove clauses that (indirectly) discriminate against women

Affirmative actions Support informal groups

Diversity of market outlets

Public support to upgrade traditional wholesale markets and informal sector

Enable participation of private sector and cooperatives

Simple infrastructure improvements, e.g. calibrated scales

Protection of traditional markets e.g. zoning modern retail

Support or upgrade informal sector, esp local markets, street vendors, wet markets

Address women’s market access constraints

Market coordination

Investment in market fundamentals eg storage facilities

 

Competition policy Break up of cartels Fair trading laws or codes

 

Quotas and market preference

Incentives for procurement from smallholders Public procurement policies Smallholder access to export quotas

 

Public policies and private standards

Create a level playing field for smallholders, e.g. training, subsidies

Gender-sensitive support criteria and services

Trade policy Treat small-scale sectors as infant industry, phasing in markets opening

 

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Support for Farmer-led/managed enterprises

• Donors : support organizing and capacity building; financing guidelines

• NGOs : partner with FOs on awareness raising, organizing, building enterprise devt activities

• Private sector : sustainability and inclusivity measures

• Consumers : patronize the products , networking for direct farmer-consumer relations

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Homework for FOs

• Organize according to geographic clusters and along commodity/crop lines.

• Instill an “sustainable entrepreneurial attitude”.

• Strengthen advocacy for policies and regulations

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Healthy,

Sustainable,justCaring and

Sharing Community

Regional Coordination and

Cooperation / Synergy

- People-to-People learning

exchanges

- Aggregating voices from the ground

- Policy researches /Advocacy (VG,rai

- constructive engagement with key

regional & international bodies

(ASEAN,FAO,ADB,IFAD,WB,etc on

issues re:ASEAN Farmers’ Council,

VG,RAI, etc

STRENGTHEING LOCAL INITIATIVES1.advocacy/campaign for land rights (water, seed, etc) for both men and women 2.Capacity building for Sustainable Agricultural productivity and marketing3.Cooperative Enterprise Dev’t4.Constructive engagement with government,business other stakeholders

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Concluding message

We feed the world and care for the

earth but we are highly vulnerable

We are big part of the solution, Let us be part of the AGRI DEVELOPMENT

PROCESSES –local, natiional, regional , global

Together we can build a healthy, sustainable, caring and sharing family

farming communities.

THANK YOU