Participants:

- Farmers (Atok)
- Buyers (Mr Cena)

Implementing Agency:
- Department of Agriculture CAR

Duration:
- April 8, 2015-

Rationale:
The Benguet Agri-Pinoy Trading Center was conceptualized to address the problem of the
highland vegetable industry, the biggest industry that is affecting thousands of farmers in
Benguet and its neighboring Provinces in the Cordillera regions. Problems like price fluctuations,
unsustained production, and the problem of competition and smuggling.
The main goal of this project is to help put in place a stable supply of highland vegetables
especially needed by the high end market specifically Metro Manila, Central and Southern
Luzon, as well as in the Visayas Region. Mase on long term concept, the said trading center will
be managed by the farmers themselves once they are ready to take over. Prior to its full
completion, there is a need to prepare and finalize a functional marketing Operations and
Management Systems with policies based on actual series of Mock Trading with pre-identified
institutional buyers.

Objectives:
Generally, the activity will help in the design of most effective marketing strategies to ensure a
successful operation of the BAPTC.
Specifically, after the mock trading activities, the following shall be achieved:
1. Identified possible problems/ issues that may affect smooth marketing operations of the
BAPTC and the solutions to address the problems/ issues;
2. Drafted a workable Memorandum of Agreement between and among producers and
institutional buyers;
3. Gathered suggestions to improve the operation of the BAPTC.

Methodology:
The farmer producers will make use of the existing packaging house in their area to prepare the
harvested vegetables. The vegetabls are expected to be trimmed, cleaned and sorted following
the requirement of the institutional buyers. The vegetables will be delivered at the BAPTC site
where the institutional buyers will pick up the vegetables.
The Department of Agriculture will be provide the vehicle to be used during the conduct of the
dry-run.
The mock trading will be based on the improved technology concept.
Data to be gathered:
1. Identify commodities for mock trading
2. Gather data on the cost and return analysis of identified commodities from production to
marketing. These are available at the Municipal and Provincial Offices.
3. Inventory of all existing packing houses and MFTs to be used as initial pre-packing
before bringing to the BAPTC
4. Document the existing/traditional pre- and post harvest practices to compare losses with
the high level concept
5. Consolidate the product and farmers profile
6. Make a list of accredited farmers group thru coordination with the CDA, SEC and DOLE
(cooperatives and associations)

Dry-run (Proposed BAPTC Marketing System)

1. Application of the high level concept during the Pre-harvest, postharvest to marketing
during mock trading.
2. Use of the packing houses, MFTs, tents during the trimming, cleaning/washing, drying,
weighing, packing and cooling.
3. Documentation of product movement: transport of products from farm to packing house;
from packaging house to BAPTC and from BAPTC to high-end market to get the
comparison between traditional practices with the new high level concept: product, place,
price, quality, quantity, volume and timing.
4. Compre the costing of traditional practices and the modernaized concept.

Output:
1. A joint Buyer’s-sellers marketing systems, policies and strategies will be formulated and
finalized which will be used during the BAPTC marketing operations. The market
players with the DA management will formulate initial marketing agreements.
2. The DA-CAR management will come up with a monitoring and evaluation system.
3. A market analysis from the gathered data will be formulated: this will include the
financial analysis and other aspects.

BAPTC
Project Significance:
The BAPTC is a project by the DA that aims to alleviate poverty in the CAR rural areas. In order
to achieve this, the project focuses on farmer livelihood and welfare. Specifically in increasing
farm gate prices. It also seeks to benefit the consumers through reducing the retail price of
agricultural products like fruits and vegetables.
The project’s formal objectives are:

1. increasing trade in Benguet of high value crops

 2. regulating the flow of produce
3. allowing more direct access of farmers to trading centers
4. ensuring compliance to quality standards and food safety regulations; and
5. Implementing security and control mechanism that will regulate and monitor the
trading activities.

It serves not the farmers but also as a prime model for profitable cooperation among the local
government, national government, the academe and the private sector. The following are the
main stakeholders of the project: Department of Agriculture, Benguet State University,
Municipality of La Trinidad, Province of Benguet and Farmers.

The cost is subdivided into two phases. The first phase costs a total of Php 377,240,377.53 and
the second phase costs Php 278,315,145.00 for a total of Php 655,555,522.53.

Present Status

An amended BAPTC Memorandum of Agreement (MOA) has recently been signed last February
3, 2015. This formalizes the creation of the Project Steering Committee (PSC) and amended
each stakeholder’s specific roles for the project. The Strategic planning was also held by the
assigned Project Steering Committee last March 2015.

This month The Farmer’s Orientation on GAP and BAPTC was conducted followed by a dialogue
with the secretary on La Trinidad; Sayangan; Loo, Buguias and Sinipsip, Buguias. During the
Dialogue several issues and points for clarification have been raised by the Farmers. And the
Secretary gave some solutions and suggestions. The following are the points of discussion
classified according to BAPTC’s formal objectives

 Increase trade in Benguet of high value crops

During the consultations, several farmers requested seeds. The DA can make available
Open Pollinated Variety (OPV) seeds for vegetable production. The organic farmers
association will be in charge of reproducing the seeds. For the request of organic seeds,
the farmers were asked to make a letter of request to BSU and identify the commodities
that they need. It was made clear that BSU has limited stocks for the seeds but
nevertheless, BSU is still willing to cooperate. For the requests for fertilizers, the trucks
used to deliver vegetables to trading areas where vermicast and organic inputs are
produced can carry organic fertilizers as backloads, though local production of organic
fertilizers is recommended.
 It was also proposed that greenhouses be put up on identified areas and the farmer’s
organizations can run a centralized nursery system. The centralized nursery can provide
organic seeds to the farmers in the area.
DA is promoting good agricultural practices, organic agriculture and training designed to
help the farmers improve their livelihood. Philmec is also asked to develop and produce
processing machines and technologies for vegetables, in addition, PH readers will be
distributed to 13 municipalities in Benguet municipalities.
Presently, the Department of Agriculture is finding ways to bring vegetables to Visayas
and Mindanao. Coordination with AMAs is also being held to look for possible goods as
backloads of delivery vehicles used. These are initial activities that are being carried out
to fine tune operations.

 ensure compliance to quality standards and food safety regulations

In compliance to the consumer act and food safety law, the Department of Agriculture
(DA) will pursue the full implementation of the Good Agricultural Practices (GAP)
program. The farmers are encouraged to coordinate with the Bureau of Agricultural and
Fisheries Product Standards (BAFPS) team and take the certification free of charge, after
which DA can subsidize organic certification for first time applicants that apply for
assistance, also, if requested, the DA can have a team visit a farm and train the farmers
regarding GAP. For organic certification, it is better for farmers to apply as a
cooperative/ group. BSU can also provide possible help for technical advice and
support.
BSU will be doing researches on production of organic inputs needed by the farmers.
The DA can train farmers to produce their own organic fertilizers and inputs as long as
there is proper coordination with the requesters.
The BAPTC does not require all the products to be GAP certified, however, they will still
comply with the current market quality classifications. A farmer with conventional
farming practices can still bring his produce to the BAPTC; however, the production of
vegetables must establish consumer goodwill and trust to locally produced goods.
Under the BAPTC a laboratory for random testing of vegetables for pesticide residue will
be established, likewise the food security Act is now being Implemented for ensured
good quality and safety.

 Regulate the flow of produce

Initially, the proposal was to separate organically and conventionally grown vegetables,
however this is still a point for discussion. Second class products can be sold at the
 BAPTC as long as it is properly sorted to comply with current market quality
qualifications. For reject goods, the BAPTC will help in processing it.
It was clarified that though flower products cannot be mixed with the vegetables in
BAPTC, DA La Trinidad along with the MLGU will rehabilitate the old trading post so that
it can be used for the flower industry trade
The phytosanitary regulations are properly done for foreign importers to ensure safety
laws and regulations; nevertheless, the farmers are encouraged to make their products
more competitive. The DA is implementing several interventions to safeguard the
welfare of the farmers and guide them in making their products more competitive.
Marketing of other commodities such as coffee, root crops and strawberry are still
under careful consideration.
BAPTC is not exclusive to members of cooperatives only; the main goal would be for
goods to be safe for consumption.

 Allow more direct access of farmers to trading centers

The BAPTC as farmer’s trading center will be having employees which can help farmers
in selling their produce. This set-up will cut away middle men and generate income from
the sold goods which will go to the farmers.

 Implement security and control mechanism that will regulate and monitor the trading
activities
In the present DA is hiring personnel for the BAPTC- IPMT. The hired candidates will
undergo a workshop together with Development Academy of the Philippines after which
they will be able to make the BAPTC business operational manual. The manual will be in
pursuant to the Food Safety Act and Consumer Safety Law.

Presently pilot testing/dry run of the marketing model is being held at the BAPTC with
vegetable farmers from Atok, if efficient and effective, such a mechanism can be applied for full
implementation. Its main difference from the La Trinidad trading post is its policy of having the
vegetables cleaned, washed, sorted, graded and packed in the packing facility before it goes to
the BAPTC. Such a practice can have two advantages. First is that it doesn’t require the services
of a ‘disposer’ who usually does the product processing. The profits for these services will be
directed to the farmers themselves. Second, if there are discrepancies in the quality of the
produce. It can be directly traced back to the farmer who packaged it. Though this practice is
not yet perfected. Observations and discussions are continuously being dong both by the
farmers and the buyers.

In terms of the demand Mr. Carlo Sina, representative from the Sentrong Pamilihan ng Sariya is
finding possible buyers for the farmers’ produce. Every Wednesdays and Fridays one to two
trucks or eight to nine tons of vegetables are already being delivered to Sariaya, Quezon and
Manila.

Future Direction

The Department of Agriculture targets to finish all the preparations before the end of this
month. The DA CAR will be bringing farmers from the different municipalities of Benguet,
including Bauko, Mountain Province to the Sentrong Pamilihan ng Sariaya, Quezon Province.
The slots were earlier identified through raffle which was done during the Farmer’s
Consultation with Secretary Alcala last May 13-14.

The initial schedule for the BAPTC launching will be on June 24, 2015.