Adss King 9feb2010
Adss King 9feb2010
Adss King 9feb2010
SpecialSeminar
AdvancingAgribusinessthroughCooperatives:
TheCaseofSoroSoro Ibaba Development
Cooperative
Dr.DavidJ.King,SIDCConsultant
February9,2010
TheSIDCapproachtoagribusinessdevelopment
istoprovideagribusinessopportunitiesthrough
thecooperativeforsmallfarmersand
entrepreneursofSMEfood,agriculturaland
resourcebasedenterprises,thatontheirown
wouldnotbeabletocompetewithlargescale
commerciallyfinancedandcorporatelybacked
enterprises.
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 1
Introduction:OutlineofthePresentation
1. The40years(19692009)processofSIDCfrom
smallconsumercooptothelargestagricultural
cooperativeinthePhilippines.
2. TheChallengesthathadtobeovercomeduring
thethisdevelopmentprocess.
3. SIDCs VisionandmissionasaNational,Asian
evenglobalmodelleadingagricultural
cooperative:Somespecificissues,strategies,
partnershipschallengesandopportunities.
Introduction:Myintellectualandpersonal
commitmenttocooperatives
UniversityofWisconsinacademicprogramin
agriculturaleconomics:Commitmenttopowerof
collectiveactionininfluencingpolicyfor
institutionalreformasabasisofruraland
agriculturaldevelopment.
A40yearcareerinagrarianreformand
developmentinAfricaAsiaandthePhilippines
matchingSIDCs owndevelopmentprocess.
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 2
SIDC:Foundationsofasuccessful
agriculturaldevelopmentcooperative
ConsumerCooperativestore(1969):59members
TransformationtoSNandagriculturalcooperativewith
memberbackyardpiggeriesusingcooperativefeeds
Independencefromgovernmentprojectsupportforsmall
scalefarmersproductionandfinance.
Participatoryandopengovernanceofthecooperative
Patronagerefundsasbasisofbuildupofmembershare
capital forbothregularproducerandassociateconsumer
members
Commitmenttomember,familycommunitybenefits.
FeedmillastheSIDCengineofgrowth
LandBank&SIDCselffinancing
Ave.production:9,000bagsdaily
hog,poultry,fishmash&pelletfeeds
semicomputerized
withmechanizedcornstorage
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 3
Feedmill Laboratory
PAIWICONTRACTGROWING
OnlyformemberswithFCRs andacceptable
mortality/morbidityrates
Fattenersonly(formerlyBreedersaswell)
Stocks,Feeds,Veterinary
Services&Marketing
EqualSharinginProfit
PatronageRefunds
LoanforPigPen
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 4
ARTIFICIAL INSEMINATION
OnlyinSoroSoro vicinityorwhereAIservices
canbecontractedout
PIGFARM
850sowlevelpigletmultiplierfarminTaysan
Higradesowsandboars
Firstclassfacilities
FarrowFinishorforPaiwi biik?
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 5
COMMUNALMODELFARM
Capacityof1,130headshogfatteners
SIDCprovidesmembersofhogpen,stocks,
feedsandveterinaryproducts&services
Memberscaretakerswith25%profit
Pigmanurefedintobiodigester toproduce
methaneandsolidscompostedforvegetable
production
HOGSELLINGPEN
Speedsupsalesofhogs
electronicweighingscale
Preventsspreadofdiseases
Sellingpenfees
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 6
SAVINGSANDLOANS
Deposits
P150Mmemberdeposits
Loans
CashLoans
HogFatteningProgram
HogBreedingProgram
HousingLoan
Hogpenloans
Environmentalloans
StudentLoans
Verticallyintegratedagribusinesses
Batangas CitySlaughterHousemanagement
FarmerVicprocessedmeatproducts(2003)
NewMeatProcessingPlant(2007)
51,000headlayerfarm(2008)
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 7
Businessdiversification
CoopmartBranchesandexpansion(5)
Gasolinestationsandautoservice(3)
Waterrefillingstation
CableTVstation
Meriendster fastfoodoutlets
6to9 sarisaristorescarryingSIDCproducts
Insuranceproducts
SIDCVisionStatement(2008)
Asagloballycompetitiveandworldclass
Cooperativeconglomerateoffering
technologicallyadvancedproductsand
services,SIDCcontinuestobeamodelof
goodgovernancesthatpromotessustainable
environmentandensuresthewelfareof
stakeholders
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 8
SIDCs MissionStatement(2008)
Members:Shallvalueandprotecttheirinterests
throughsoundpolicyandproactive
management.
Officers&employees:Shallpromoteand
supportanenvironmentwheredignity,
diversityandethicalconductarevalued,
officersandemployersarerespected,their
contributionsrecognized&career
developmentencouraged.
SIDCs MissionStatement(2008)
Patrons/BusinessPartners:Shalloffer
competitiveproductsandservicesand
observeethicalstandards
Community:Shallpursueprogramsthat
promotecooperAtive development,
sustainble developmentandwelfareofa
widercommunitythroughactivecollaboration
withotherunitsofSociety
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 9
SourcesofSIDCmembership&business
expansion
OpeningupofnewfeedoutletsinMindoro,Panayas
wellasalloverREGIONIVA
Revivingindebtedagriculturalcooperatives
(Matungao,Or.Mindoro2002;Jaen,nueva Ecija 2007
feedcooperative)
NewSavings&Loanoutlets(200910)
AgribusinessandR&Dpartnerships(2010)
OFWinvestmentinSIDCBusinesses
Fourissues;challengesandopportunities
forSIDC
1. EnvironmentallySustainableHogfattening
enterprises
2. SecuringFeedinputmaterialstoprotectlongterm
competitivenessoffeedmill&memberpiggeries.
3. DevelopingmarketsandtestingofBIONfor
sustainablecosteffectiveorganicgrainandcrop
production
4. DevelopmentofcapacitiesofSIDCmembersandstaff
forSIDCagricultureenterprisedevelopmentandOFW
jobopportunities
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 10
EnvironmentallySustainableHogfatteningenterprises
CHALLENGES(2002 2006)OPPORTUNITIES
SIDCownpigfarmsnot DOSTandCIDASEDCOP
environmentallycompliant Projectsupport
1100fattenerunitwith environmental
non functionalbiodigester assessment,technological
slurrysettlingponds& modificationtotransform
facultativelagoon.Waste intomodel communal
justflushedintoriver. greenfarm.
1300sowmultiplierunit trialsandtestingofpig
faultyfacultativelagoons manureandbiodigester
slurryforcompostinginto
organicfertilizer
EnvironmentallySustainableHogfatteningenterprises
CHALLENGES(2002 2006)OPPORTUNITIES
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 11
EnvironmentallySustainableHogfatteningenterprises
CHALLENGES(2002 2006)OPPORTUNITIES
loanprogramformember
investmentseptictanksand
biodigesters
SIDC/LGUpoliciesto
requireadoption
EnvironmentallySustainableHogfatteningenterprises
CHALLENGES(2006 2008)OPPORTUNITIES
SIDCcommunalgreenfarm SIDCnewtechnicalstaffinsoil
stillnotenvt.Compliant& science,agronomy&
modelenvt.enterprisesonly horticulture.
partiallyfunctional. Devt.andtestingoforganic
Biogasdigesterproducing fertilizerproductionfrom
methanebutpower chickenmanurefromSIDC
generationdifficult gas layerunit
impurities. Field&screenhousevegetable
Developmentoforganic trials&testingwithmember
fertilizerbasedonpigwaste partners.
impededbyfailureofsystem Testingoforganicvegetable
toseparateliquidandsolids marketing.
forcomposting
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 12
EnvironmentallySustainableHogfatteningenterprises
CHALLENGES(2006 2008)OPPORTUNITIES
organicvegetable UPLBEnvironmentalresearch
productiontestingpartially support.
successfulbutmarketing Methanegas&power
problemleftpartner generation&slurry
membersunconvincedfor separationtechnology
ownadoption. tested
FewSIDCSoroSoro CCASIDCPhilcoopstudytour
membersadoptseptic SIDCpartnershipwith
tanksorbiodigesters Phil.Coopsengagedin
mostremainenvt.non organiccropandvegetable
compliant. production.
EnvironmentallySustainableHogfatteningenterprises
CHALLENGES(2006 2008)OPPORTUNITIES
Membersunconvincedby UKgrantforSIDCmember
greenfarmmodel;no Biogasgenerator
marketforgasorfertilizer Wastefrom2,000pigsof30
sonoreturnoninvestment membersusedtogenerate
LGUs requestnon 125KWpowerusedforSIDC
enforcement building.
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 13
CoveredInGroundAnaerobicReactorBiogasDigester
BiogassupplyelectricitytoSIDCMainOfficeBuilding
EnvironmentallySustainableHogfatteningenterprises
CHALLENGES(20082009)OPPORTUNITIES
SIDCcommunalgreenfarm DepartmentofAgriculture
stillnotenvironmentally GranttosetupBIONmixing
compliant&model plant.
environmentgreenfarm BIONmixrequires
enterprisesonlypartially sterilization.Methanegasused
functional. toheat11pressurecookers
substantiallyreducingthecost
ofBIONproduction&SIDC
profits.
BIONefficacyfarmerpractice
trailstrials(ongoing)have
includedtrialsonorganicrice
productionandorganic
vegetables.
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 14
EnvironmentallySustainableHogfatteningenterprises
CHALLENGES(20082009)OPPORTUNITIES
FewSIDCSoroSoro members TrialsongoingwithBION
adoptseptictanksor enhancedSIDCorganic
biodigesters mostremain fertilizerforuseon
envt.non compliant vegetables,fruits&
ornamentalplants.
ParticipationinBatangas City
environmentalmasterplan.
revivaloflocalLGUinterest
&membersinbiogasdigesters
andseptictanksolutionsand
enterprises.
EnvironmentallySustainableHogfatteningenterprises
CHALLENGES(20082009)OPPORTUNITIES
PartnershipwithBSU
environmentalengineersin
searchforsmallscale
technologiestoencourage
memberenvironmental
compliance
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 15
SecuringFeedinputmaterialstoprotectlongterm
competitivenessoffeedmill&memberpiggeries.
CHALLENGES(2008 2009)OPPORTUNITIES
CostoffeedinputsforSIDC SIDCfeedmillnutritionist&
millproducing450tonsof technologystaff+coop
feedadayincreased partnershipsinCanada
dramatically. Analyzedalternativefeed
Useofcornandsoya inputswlowercostsfor
beanexportsinNorth SIDCqualityfeedsand
Americaforbiofuels. potentialsourcesofsupply.
Dramaticincreaseinworld
foodcommodityprices.
SecuringFeedinputmaterialstoprotectlongterm
competitivenessoffeedmill&memberpiggeries.
CHALLENGES(2008 2009)OPPORTUNITIES
Domesticcornproduction CassavaIDaspotentialfrom
reduced&increasedcosts bothlocalandSEAsiansources,
relatedtoincreasedcosts butconcernsrelongterm
ofureaforfertilization. sustainabilityofcassava
Continuousproductionof production
uplandsoilswithminimum CanadianFeedbarleyandfeed
inputs peasidentifiedaspossible
Costsoffertilizersohigh alternativemixbut2008barley
thatrecommended pricesandtransportcostsfrom
applicationofN,P,Krarely plainstatesmadeit
applied. unprofitable.
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 16
SecuringFeedinputmaterialstoprotectlongterm
competitivenessoffeedmill&memberpiggeries.
CHALLENGES(2008 2009)OPPORTUNITIES
switchtoothercropswith SIDCfieldstaffandmarketsources
higherreturns/perhectare searchforalternativesourcesof
supplyforcontractgrowingwith
/abandonedland Partnergroups
Alternativesourceofsupplyof
corninIloilo,andelsewherein
Panayfoundbutnotprice
competitiveandconcernsre
qualitybecauseofinadequate
drying.
Bukidnon,Mindanaocorn
contractedforIseasonbuthigh
farmgateprices+transpo
DevelopingmarketsandtestingofBIONforsustainablecost
effectiveorganicgrainandcropproduction
CHALLENGES(2008 2009)OPPORTUNITIES
DepartmentofAgriculture SIDCcommitmentto
notcommittedto commercialdevelopmentof
commercialdevelopment BIONascosteffective
ofBIONforcosteffective alternativetoinorganic
switchtolongterm sourcesofN+lowcost
sustainableorganic productionofBIONand
production. fundingforR&D.
Recommendationsfor AggressivepursuitofDAto
BIONusewereaspartial meetandfulfillDAand
substitutefor commercialordersalongwith
recommendedinorganicN promotionalmaterialsfree
application. suppliesofBIONand
agronomic,soilscientistand
microbiologist,technical
servicesforsettingup,
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 17
DevelopingmarketsandtestingofBIONforsustainablecost
effectiveorganicgrainandcropproduction
CHALLENGES(2008 2009)OPPORTUNITIES
Mostmixingplants conductingandanalyzing
licensedtoDAorLGUs in resultsoffarmerpracticetrials
locationsthatwerethefoci andformalFPAprotocoltrials.
ofthesmallfarmer DirectCollaborationwith
subsidizeddistribution BIOTECHUPLBtoensure
program. programconsistentwithpatent
mostmixingplants andproductdevelopment
undertookfewdemosand
didnotconductefficacy
trialsasperMOAw
BIOTECHUPLB
DevelopmentofcapacitiesofSIDCmembersandstaffforSIDC
agricultureenterprisedevelopmentandOFWjobopportunities
CHALLENGES OPPORTUNITIES
SIDCmembershiponfamily SIDCcommitmentto
basis. member&familymember
Membershaveinvestedin education.
familymembereducation, SIDCfullUndergraduate
butv.fewinagricultural scholarshipstobestfamily
technology,marketingand memberswillingtostudyin
businessdevelopment. fieldsofstudyrelevantto
Fewsuitableacademic SIDCneeds,includingPaid
programsrelatedfields OJTexperiencewithSIDC
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 18
DevelopmentofcapacitiesofSIDCmembersandstaffforSIDC
agricultureenterprisedevelopmentandOFWjobopportunities
CHALLENGES OPPORTUNITIES
Careerdevelopment Studentloanfacilityforall
decisionstakenwellbefore memberfamiliesqualified
SIDCmemberswillingto forcollegeandvocational
transferagricbizandSIDC education.
membershiptooffspring. Specialtechnicalshort
Littleunderstanding coursesforhograisingand
aboutthenatureof wideofothertopics
technicalandagribusiness relevanttoSIDCmember
needsofSIDCinthefuture. enterprisedevelopment
DevelopmentofcapacitiesofSIDCmembersandstaffforSIDC
agricultureenterprisedevelopmentandOFWjobopportunities
CHALLENGES OPPORTUNITIES
Perceptionofwhitecollar Developmentofspecial
jobs,particularlyin coursesforjobsearchand
overseasemploymentare preparationskillsfor
waytosuccessfulcareers membersandtheir
forfamily families computerliteracy,
interculturalskillsand
languageskillsforoverseas
work,smallbusiness
development
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 19
OverseasagriculturalstudenttrainingundertheIAEAAgriventure
PartnerProgram(20082010)
CHALLENGES OPPORTUNITIES
Recentgraduatesof SIDCdevelopingand
academicandprofessional operatingprogramof
andtechnicalcourses studenttrainingandwork
usuallyineligibletoapply experiencewithIAEA
asOFWbecauseoflackof Agriventure inCanadain
workexperienceintheir protectedfamilyfarm
field. environmentsforboth
Providingsuitable youngadultstaffand
screeningofcandidates, memberfamilies.
andtrainingpreparation
programsforonthejob
trainingoverseasina
protectedenvironment
OverseasagriculturalstudenttrainingundertheIAEAAgriventure
PartnerProgram(20082010)
CHALLENGES OPPORTUNITIES
encouragingsomeofthe SIDCdeveloped
participantsinsuch probationarypartnership
programstoreturntothe withIAEAtoplace13
Philippineswithenhanced traineesinCanadianfarm
skillsforagricultural familiesinSaskatchewan
professionalcareersasSIDC andAlbertafor7months
membersorprofessional thisyear.
staff. Recruitmentand
relativelyfewSIDCfamily evaluationprotocols
membershaveformal Cultural,drivingandtractor
traininginagriculture. operationskillsofferedto
allsuccessfulapplicants.
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 20
OverseasagriculturalstudenttrainingundertheIAEAAgriventure
PartnerProgram(20082010)
CHALLENGES OPPORTUNITIES
Agriculturaldegree Loanandguarantee
coursesoftenhavelittle programsdeveloped.
handsonfarming Specialstudentexchange
experiencegraduatesfor workvisaprotocolworked
students outwiththeCanadian
Developingpartnerships embassy.
withAgricultural Linkageswith
Universitiesandfining SaskatchewanandAlberta
alternativeguaranteeand cooperativeassociationsfor
financingfortheprogram alltrainees.
OverseasagriculturalstudenttrainingundertheIAEAAgriventure
PartnerProgram(20082010)
CHALLENGES OPPORTUNITIES
inclusionofagricultural
Universityundergraduates
underanOJTarrangement
withjointassessmentand
commitment.
considerationofaddition
ofAustraliaandNew
ZealandforIAEAplacement
in2011.
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 21
EndofPresentation
Thankyouforlistening
Advancing Agribusiness through Cooperatives: the Case of Sorosoro Ibaba Development Cooperative
Dr. David J. King | February 9, 2010 | SEARCA ADSS 22