Topic 1: Farming Profitably and the Concept of Agroenterprise

1. R4.3: Introduction-Farming Profitably and the Concept of AE Presentation Topic 1: Farming Profitably and the Concept of Agroenterprise Farmer Alliances for Resource-Strengthening and Marketing (FARM) Program

2. AGROENTERPRISE Farm Markets + • Empower organized farmers with knowledge & skills to participate in the marketplace • Assist them to build their own businesses (agroenterprises), capture more “value” in the value chain, increase incomes and improved farming livelihoods.

3. Individual exercise Farm income computation – different scenario

4. New approach in farmer’s dev support Farm Markets + Requires a shift: Production focus ---- production plus market approach (agroenterprise) On two levels – partner staff & cluster leaders

5. Production Focus (yields, surplus) Value Chain Approach (sales, income, investment)

6. Differences in the Approach Reference: Seven Steps in Linking Farmers to Markets, a CRS material

7. How do we get farmers included? Higher Value Markets IN? Opportunities OUT? • New mindset – from production oriented to market oriented • Partners to help create the supporting environment that promote changes at the farmer and community level (technology, infra gaps, capital, trainings) • Organizing farmers for business – from individual to collective marketing; with business partnerships • Building knowledge & skills in AE Small Farmers • Challenges • Problems • Constraints

8. Coffee Value Chain

9. Coffee and Rice Marketing

10. Clustering Approach (The Process) 8 Sustaining the Enterprises 1 7 Site Selection, Partnership Building and Formation of Working Group Test Marketing 2 6 Product Supply Assessment and Product Selection Production / Product Supply Organizing 5 3 Business Planning & Mobilization Market Chain Study 4 Cluster Organization

11. MARKETS SWG LGU/MFI/NGO/ Academe Cluster Leaders Cluster Leader Cluster Leader Cluster Leader Cluster Leader The Clustering Approach Highlight: The innovative method of organizing farmers into small groups called “clusters” where the enabling process for market preparedness & engagement takes place.

12. Agroenterprise is a new approach • 1.It requires a new mindset for top management within the NGO, • the project & down to the field staff and the participating farmers. • Our understanding of and capacities in agroenterprise • development affects what we will do with the farmers. • It is important to note that it is in the farmer and community • levels that the shift to agroenterprise needs to take place, • and that our work to be meaningful should lead the farmers • to this direction.

13. For success, at the farmers’ level: • 1. The farmers need to learn how : • the market works • to build relationship with other players in the market chain • to effectively consolidate quality products • to use basic financial and business skills • they need to succeed in their agroenterprises • 2, And in understanding agroenterprise, the farmers are willing • to commit to their responsibilities; • to attend meetings and trainings • make the necessary adjustments in their farming practices • to be organized and to consolidate their products for • the collective marketing • use their own resources to improve their product and • build their market links and business relationships