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Enhancing Profitability In 
Family Farms 
Esther Penunia 
Asian Farmers’ Association (AFA)
MTCP2 
In Partnership with: 
FAO, SEWA, ASIADHRRA 
(main TA providers)
Why are we poor, hungry, 
malnourished? 
• Natl Resource issues 
Land,Water, forests, 
Seeds) 
• Productivity issues 
• Marketing issues 
• Climate change and 
natural disasters 
• Governance issues
Local Initiatives to Establish 
Food Reserve 
1. “Lumbung 
Pangan” 
 In Cianjur (West 
Java Province) 
 In Boyolali (Central 
Java Province)
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)
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
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.
7. Building Collective Marketing 
Strengthening farmers’ association, developing economic 
organizations in rural areas, building the capacity of farmers in 
order to develop collective marketing.
15
Picture1: Multi-purpose farm Picture2: Canal and dike preparation
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.
18
In the community…. 
- 80 farmers use SRI 
-size of families experiencing insufficiency in rice 
decreased 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 on 
chemical fertilizers and seeds, resulting in an 
increase in income from rice production
Savings and Credit Group – from local to 
national
 Pablo De Ocampo, a calamansi producer 
 42 Years old, Married 
 Calamansi Cluster Leader, Bgy Antonino, 
Victoria, Oriental Mindoro 
 Farmer Technician 
 Member of MESAFED
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.
I also intercrop bananas in between the 
pineapples. I need banana trunks for my 
vermicast production as fertilizer for my crops.
At the side of the farm, I 
planted more than 1,500 
hills of ube. I project to earn 
___ pesos after one year.
Block 
Area 
Crops Area 
(Sq. 
Mtrs 
Volume Expense 
s 
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 
Pineapple 
Banana 
Lemon Grass 
2400 2,400 
hills 
144 hills 
144 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
Mindoro Ecological and Sustainable Agriculture Federation, Inc. 
(MESAFED) 
ACTIVITIES OF MESAFED 
 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.)
Processed food products produced by 
some of MESAFED’s primary members
Virgin Coconut Oil 
Organic Rice Trading
Production of bio-organic fertilizers
Collective Marketing of Fresh Calamansi
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
Global Challenge/Paradoxes 
Unsustainable 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 
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.
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
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
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
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.
Agricultural Investment 
Policy Lever Policy Intent 
Policies 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
Market Governance 
Policy Lever Policy Intent 
Policies that support smallholders Policies that support women 
Producer 
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,
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
Homework for FOs 
• Organize according to geographic clusters 
and along commodity/crop lines. 
• Instill an “sustainable entrepreneurial 
attitude”. 
• Strengthen advocacy for policies and 
regulations
Healthy, 
Sustainable,just 
Caring and 
Sharing 
Community 
41 
STRENGTHEING 
LOCAL INITIATIVES 
1.advocacy/campaign for 
land rights (water, seed, 
etc) for both men and women 
2.Capacity building for 
Sustainable Agricultural 
productivity and marketing 
3.Cooperative Enterprise Dev’t 
4.Constructive engagement 
with government,business 
other stakeholders
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

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Profitability in Family Farms

  • 1. Enhancing Profitability In Family Farms Esther Penunia Asian Farmers’ Association (AFA)
  • 2. MTCP2 In Partnership with: FAO, SEWA, ASIADHRRA (main TA providers)
  • 3. Why are we poor, hungry, malnourished? • Natl Resource issues Land,Water, forests, Seeds) • Productivity issues • Marketing issues • Climate change and natural disasters • Governance issues
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. Local Initiatives to Establish Food Reserve 1. “Lumbung Pangan”  In Cianjur (West Java Province)  In Boyolali (Central Java Province)
  • 11. 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)
  • 12. 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
  • 13. 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.
  • 14. 7. Building Collective Marketing Strengthening farmers’ association, developing economic organizations in rural areas, building the capacity of farmers in order to develop collective marketing.
  • 15. 15
  • 16. Picture1: Multi-purpose farm Picture2: Canal and dike preparation
  • 17. 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.
  • 18. 18
  • 19. In the community…. - 80 farmers use SRI -size of families experiencing insufficiency in rice decreased 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 on chemical fertilizers and seeds, resulting in an increase in income from rice production
  • 20. Savings and Credit Group – from local to national
  • 21.  Pablo De Ocampo, a calamansi producer  42 Years old, Married  Calamansi Cluster Leader, Bgy Antonino, Victoria, Oriental Mindoro  Farmer Technician  Member of MESAFED
  • 22. 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.
  • 23. I also intercrop bananas in between the pineapples. I need banana trunks for my vermicast production as fertilizer for my crops.
  • 24. At the side of the farm, I planted more than 1,500 hills of ube. I project to earn ___ pesos after one year.
  • 25. Block Area Crops Area (Sq. Mtrs Volume Expense s 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 Pineapple Banana Lemon Grass 2400 2,400 hills 144 hills 144 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
  • 26. Mindoro Ecological and Sustainable Agriculture Federation, Inc. (MESAFED) ACTIVITIES OF MESAFED  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.)
  • 27. Processed food products produced by some of MESAFED’s primary members
  • 28. Virgin Coconut Oil Organic Rice Trading
  • 30. Collective Marketing of Fresh Calamansi
  • 31. 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
  • 32. Global Challenge/Paradoxes Unsustainable 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 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.
  • 33. 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
  • 34. 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
  • 35. 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
  • 36. 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.
  • 37. Agricultural Investment Policy Lever Policy Intent Policies 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
  • 38. Market Governance Policy Lever Policy Intent Policies that support smallholders Policies that support women Producer 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,
  • 39. 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
  • 40. Homework for FOs • Organize according to geographic clusters and along commodity/crop lines. • Instill an “sustainable entrepreneurial attitude”. • Strengthen advocacy for policies and regulations
  • 41. Healthy, Sustainable,just Caring and Sharing Community 41 STRENGTHEING LOCAL INITIATIVES 1.advocacy/campaign for land rights (water, seed, etc) for both men and women 2.Capacity building for Sustainable Agricultural productivity and marketing 3.Cooperative Enterprise Dev’t 4.Constructive engagement with government,business other stakeholders
  • 42. 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