Organic Trading Posts (Retailing Centers) with Local Governments In Rural Philippines

Patrick Belisario, Board President, Organic Producers Trade Association (OPTA)

Board Vice President, IFOAM Organics Asia

Philippine Organic Markets

Export (110+ Certified Operators) EU, US, Japan, Singapore, Malaysia, etc Products

Coconuts – VCO, DCN, Flour; Coconut Water, Coconut Milk, Coconut Cream, Coconut Sugar, Coconut Syrup Herbals – Banaba, Cane Sugar - Muscovado Rice – Unpolished Black, Red & White

Local (50+ Certified operators + PGS + Others) Farmers Market in Manila & Provinces (10 Initiated by OPTA)Supermarkets (70 SM, 49 Robinsons, Rustans, Gaisano, Shopwise) , Specialty Shops (27 Healthy Options) Organic Trading Posts by the DA (75)Direct selling by farmers

Area, Has and Area, %The country’s area devoted to Organic Agriculture and its corresponding percentage to total land area

Item No details

Element Area, all [ha] Area, share of total [%]Year

2000 2000

2001 2000

2002 2000

2003 3500

2004 14133.7

2005 14133.7

2006 5691

2007 15343.79

2008 15794.65

2009 51806.07

2011 96316.6 0.81*

2012 80973.79 0.68*

2013 86155.26 0.72*

2014 110083.9 0.88*

2015 234642.2 1.89*

Historical OA area (2000-2015)

0

50000

100000

150000

200000

250000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009 2011

2012

2013

2014

2015

Introduction

Background

Objectives

Activities

Results

Issues & Concerns

Recommendations

In 2010, the Philippines passed a law on Promoting and Developing Organic Agriculture, otherwise known as Republic Act 10068;

In 2012, the Department of Agriculture issued a memorandum circular on the guidelines for the establishment of organic trading posts;

In 2013, proposals from 75 Local Governments Units (LGU) for setting up the organic trading posts were approved by the DA with counterpart from the LGU;

In 2016, a national summit was organised to assess the results of establishing organic trading posts in the country;

Section 18 mandated the designation of a separate area to display the organic produce to avoid mixing it with non-organic produce in retail establishments or stores of organic produce;

Section 19 mandated the Local Chief Executives to establish at least one trading post for organic inputs (and produce) for every Local Government Unit in their area of jurisdiction;

To ensure availability and accessibility of certified or registered organic inputs and organic food for farmers, producers, manufacturers and stakeholders interested in adopting organic agricultural practices;

To promote and showcase farmers organic produce such as organic inputs and products in strategic areas;

To provide an outlet for selling organic food and products;

1. Selection of Target Sites1. Convergence initiative sites 2. Sites where organic farming is advanced 3. Areas with established demo farms

2. Selection of products to be sold in the OTP1. Third party certified products 2. First party and second party verified or PGS Products

3. Eligible Proponents (Local Governments) 1. Willing to provide counterpart for the project; 2. Must have existing Local Technical Committee on Organic Agriculture; 3. Must have a local ordinance in support of the Organic Agriculture Program; 4. Must identify or create a Management Team to oversee the implementation or operation;

The DA allocated PhP 1.5 M ($30,000) for the building, equipment and working capital and Local Governments are required to provide land as counterpart and expenses for operations and maintenance

The DA tapped the Organic Producers Trade Association (OPTA Philippines) to provide training to the Management Team on Good Organic Retailing Practices, Organic Enterprise Management, Guarantee System, Finance & Marketing

The Local Governments constructed the building, purchased equipment, hired personnel and operated the organic trading posts;

75 Total approved Organic Trading Posts,

40 were completed with

35 operational &

5 for launching

32 for completion

3 non-operational or have stopped operations

8 OTP Sites in the Cordillera Administrative Region (CAR)1. Tabuk, Kalinga2. Luna, Apayao3. Lagawe**, Ifugao4. Hingyon**, Ifugao 5. Bangued, Abra 6. Bontoc, Mt. Province7. Bauko, Mt. Province8. Tublay, Benguet

6 OTP Sites in the Ilocos Region (R-1)1. Burgos, Ilocos Norte 2. Cervantes, Ilocos Sur 3. Sta. Catalina, Ilocos Sur 4. Urdaneta City, Pangasinan 5. Alamitos City, Pangasinan 6. Manaoag**, Pangasinan **For completion

3 OTP Sites in Cagayan Valley (R-II)1. Ilagan, Isabela 2. Kayapa*, Nueva Vizcaya 3. Bayombong**, Nueva Vizcaya *For Launching

12 OTP Sites in Central Luzon (R-III)1. Maria Aurora, Aurora 2. Balanga, Bataan 3. San Ildefonso, Bulacan 4. Bustos***, Bulacan 5. Llanera, Nueva Ecija 6. Guimba, Nueva Ecija 7. Cabiao***, Nueva Ecija8. Capas***, Tarlac 9. Camiling**, Tarlac 10. San Fernando,*** Pampanga 11. Botolan, Zambales 12. Masinloc, Zambales***Not Operational

7 OTP Sites in CALABARZON (R-IVA) 1. Tanay**, Rizal 2. Alfonso, Cavite 3. Malvar, Batangas 4. Bauan***, Batangas 5. Lumban, Laguna 6. Nagcarlan, Laguna 7. Lucban**, Quezon **For Completion; ***Not Operational

4 OTP Sites in Bicol Region (R-V) 1. Legaspi, Albay 2. Daet, Camarines Norte 3. Naga City**, Camarines Sur 4. Sorsogon City**, Sorsogon

6 OTP Sites in MIMAROPA (R-IVB)1. Puerto Galera, Oriental Mindoro2. Naujan*, Oriental Mindoro 3. San Jose City**, Occidental Mindoro4. Calapan City**, Oriental Mindoro5. Odiongan**, Romblon6. Puerto Princesa**, Palawan 7 OTP Sites in Western Visayas (R-VI)1. Numancia**, Aklan2. Roxas City**, Capiz 3. Jordan**, Guimaras 4. Pavia**, Iloilo 5. Zarraga, Iloilo6. Bacolod, Negros Occidental 7. Silay, Negros Occidental

3 OTP Sites in Eastern Visayas (R-VIII) 1. Naval*, Biliran

2 OTP Sites in Central Visayas (R-VII) 1. Tagbilaran City**, Bohol 2. Dumaguete City**, Negros Occidental

5 OTP Sites in Western Mindanao (R-IX) 1. Dumingag, Zamboanga del Sur2. Aurora*, Zamboanga del SurT3. Titay****, Zamboanga Sibugay 4. Sindangan*, Zamboanga del Norte 5. Zamboanga City***

4 OTP Sites in Northern Mindanao (R-X) 1. Talisayan**, Misamis Oriental2. Valencia**, Bukidnon3. Kauswagan, Lanao del Norte 4. Kapatagan**, Lanao del Norte

7 OTP Sites in Davao Region (R-XI) 1. Magsaysay, Davao del Sur 2. Davao City 3. Dujali, Davao del Norte 4. Mati City, Davao Oriental 5. Davao 6. Davao 7. Davao

5 OTP Sites in SOCKSARGEN (R-XII) 1. Surallah, South Cotabato2. Midsayap**, North Cotabato 3. Tulunan**, North Cotabato 4. Takurung**, Sultan Kudarat5. Koranadpl City***

1. Most stores are open daily and some stores open a farmers market day once a week; 2. Organic food products sold are rice (well-milled, unpolished and coloured - black, red, violet), lowland

vegetables, some coffee, some herbs & spices, some livestock and poultry; 3. Organic input products sold are open pollinated seeds, compost, vermi-compost, liquid fertilisers (fermented

solutions); mokusako (charcoal vinegar as pesticide), 4. Source of organic products are from local producers groups and some independent producers; 5. Prices paid to farmers are based on prevailing prices and some with premium; 6. Sales per OTP generated annually is wide ranging, few have reached the PhP1.5 M ($30K) annual sales 7. Consumers are mostly employees from local governments, schools and businesses, hospitals and

subdivisions;

1. Small volumes of organic products in the OTPs

- Low adaptors of OA due to low yield, inadequate awareness on OA farming systems and existence of OTPs

- Seasonality of the products

- Limited suppliers of organic products due to certification

2. Some consumers still prefer conventional products over OA products due to price and perceived quality difference

-Unaware of health, social and environmental benefits, among others

- Lack or weak marketing plans to promote OTPs

3. Consumers unaware on the existence of OTPs in their area

- Location of some OTPs are not accessible to consumers, some also pose concerns for management team

4. Problem on fund liquidation of LGUs resulting in the delay in the completion of the OTPs and late release of fund for operating capital

5. Operators are mostly from LGUs in the absence of ready Farmers Associations/ Cooperatives /Peoples Organisations to manage the operations

• purchasing of goods needs to undergo government procurement procedure or other accounting rules such as processing of Cash Advance and liquidation process

6. Majority of the products in OTP are not certified

7. Political issues and likely changes in the priorities of the local executives, given transition phase of new administration

8. Climate change and weather disturbances, such as droughts, typhoons, resulting to limited production and supply in the OTP

9. Availability of planting materials and seeds for organic farmers

1. Proper documentation of sales (breakdown), recording farmer suppliers and sources (production area per crop, volume, unit price)

2. Come up with OA Farmers Day/ Market Day, as venues for farmers to promote their products; sustain for those which already have regular Market Days

3. Showcase variety of products to encourage consumers to visit OTPs

4. Coordination with LGUs to support OA and come up with resolutions (through Local Councils) to support OTP; OA programs to be included in their Provincial Development Plan

5. Coordinate with other government agencies and private sector groups and network for OA promotion1. Dept of Tourism to include OTP as tourist destination;2. Dept of Science and Technology on packaging and product innovations;3. Dept of Trade & Industry on product development, and enterprise development;4. National Organic Agriculture Board relating to OA development and promotion5. Agriculture and Fisheries Councils (AFCs) at various levels

6. Strengthen consumer awareness activities on OA through conduct of training, seminars, trade fairs and tap local televisions, radio stations to promote OA programs

7. Explore all possible markets, such as restaurants, hotels, hospitals, schools, government agencies, cooperatives, etc.

8. Tap other OA suppliers like PGS farmers

9. OTPs with delayed capitalization fund can offer consignment as payment scheme for their suppliers of organic products

10. Always coordinate with the Regional OA Focal and lobby stronger for LGU support; confer with AMADs for data profiling