What is Commodity

System-Based Agri-
Livestock- Poultry-
Fishery Planning?
An integrated approach to optimize resource use
and farmers’ and fisherfolk income and
employment potentials
 What is commodity system-based planning?
1. Coordinated (if not integrated) planning for two or more Inter-linked crops, livestock,
poultry and/ or fishery commodities, e.g., rice and fish
2. … And thus, is rooted in the Farming Systems approach
3. A planning approach that operationalizes the One DA diversification strategy, leading
to a Food and Nutrition-Secure Philippines with Prosperous Farmers and Fisherfolk
4. Recommending 4 commodity systems: Rice-based; Corn, livestock and poultry-based;
Coconut-based; Fishery-based
5. All other commodities (High Value Crops, Organic, Halal, etc.) can be part of one or
more of the above 4 commodity systems
6. Commodities may be “Inter-linked” in various ways: (a) inter-cropping; (b) rotation
cropping; (c) multi-cropping; (d) Integrated Multi-Trophic Aquaculture (IMTA); (e)
polyculture; (f) recycling of production or processing waste as input to production or
processing of another commodity
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What is commodity system-based planning?
7. Finding feasible combinations of crops, livestock, poultry and/ or fishery
commodities to diversity and multiply household income and employment sources
8. And thus, adopts the farm or fishing household’s “home economics” perspective
(HH income maximization objective)
9. Covers both vertical and horizontal integration within a value chain, plus relevant
segments of linked commodities, e.g., combined Coconut-abaca farms (diagonal
integration)
10. Avoids preparing individual plans and budgets for numerous commodities spread
across large areas (“spreading resources too thinly”)…
11. And therefore allows more efficient allocation and use of available funds
(“resources pooling”), e.g., vegetable or mungbean production on rice farm

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 Illustrative Combination of Crops, Livestock, Poultry and Fishery in Commodity System-Based Planning

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 1. Review state
of the art
2. ID feasible
6. M&E, combinations
learning & plan of crops,
refinement livestock,
Commodity poultry, fishery

System-Based
Planning Cycle
5. Propose
3. Convene
commodity-
inter-
system-based
directorate
budget
4. Prepare planning team
Commodity
System-Based
Roadmap
 Commodity System-Based Planning Cycle
Major Steps Description of Steps Responsibility Remarks
1. Review state- Identify and assess Initial assessment of Approach not new, e.g.,
of-the-art in scaling-up/ replicability of prospects to be carried out farming systems. Being
commodity relevant current – and by Individual DA done by DA units, e.g.,
system-based possible other – initiatives Commodity program PCA-FIDA coconut-abaca
planning between/ among DA units, directorates: (1) Rice, (2) system. Other commodities
e.g., rice-based Corn & Livestock, (3) (HV Crops, Halal, non-
vegetables-mungbean Coconut, (4) Fisheries food, etc.) to be covered
system. review Philippines (BFAR) – as “Anchor under one or more of 4
and global best practice. Commodities” (or base systems.
commodities)
2. Determine Based on the NAMFIP and Individual DA Commodity “Product form” refers to
feasible Step 1, determine program directorates: (1) derivatives from the original
combinations commodity combinations to Rice, (2) Corn & Livestock, form, e.g., dried seaweed
of crops, comprise a “commodity (3) Coconut, (4) Fisheries and carrageenan (refined,
livestock, system”. Any two or more semi-refined, and blended).
poultry, fishery commodities can be
commodities combined based on agro-
and product climatic suitability, leading
forms to at least doubling of 0total
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 Commodity System-Based Planning Cycle
Major Steps Description of Steps Responsibility Remarks
3. Convene inter- Organize an inter- Each of the program The CSPT is only an
directorate commodity working group, directorates responsible for interim arrangement to
planning team i.e., the Commodity System the 4 “Anchor immediately operationalize
Planning Team (CSPT) Commodities” (1) Rice, (2) commodity system-based
based on the commodities Corn & Livestock, (3) planning during the early
comprising the commodity Coconut, (4) Fisheries years of NAFMIP
system. (BFAR) implementation. DA might
prefer another form of
organizational structure.
4. Prepare The existing Commodity The CSPT will be Roadmaps to include
Commodity Industry Development comprised of two or more performance measures.
System-Based Roadmaps will be adjusted commodity program Coordinated planning for
Roadmap to reflect the commodities directorates/ BFAR. The two or more commodities
identified by the CSPT. The roadmap will be prepared aimed to at least double
Roadmaps will go through from the “home economics” incomes at the household
the usual approval process. perspective of farming/ level; and at the sector
Entirely new roadmaps are fishing/ other stakeholders’ level, to enhance efficiency,
not anticipated. households. modernization and agro-
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 Commodity System-Based Planning Cycle
Major Steps Description of Steps Responsibility Remarks
5. Propose Based on the approved Commodity System Commodity system
commodity Commodity System Planning Team (CSPT) planning promotes and
system-based Industry Development enables “pooling” of
budget Roadmaps, prepare the budgetary resources to
usual budget proposal, but finance activities shared
this time, closely between one or more
coordinated between one program directorates and
or more commodity thus, more efficient use of
program directorates. funds.
6. M&E, learning Track operations progress Commodity System It is important to strengthen
and ad policy implications Planning Team’s M&E staff the empirical foundation to
commodity based on implementation show that commodity
system-based of the commodity system system-based planning is
plan roadmap, using agreed an effective approach to at
refinement performance indicators/ least double farming/
measures of success. fishing household incomes.

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 Commodity system-based vs. Single commodity
Criteria Single commodity Commodity system
1. Productivity Based on one Based on total farm
measurement commodity productivity
2. Investments Specialized on one Shared among
commodity commodities
3. Knowledge and skills
Simple Complex
requirement
4. Risk from all sources High Low
5. Relative farm income Low High
6. Relative efficiency in
using resources
Low High
(labor, land, water,
fertilizer, machines)
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 Commodity system-based vs. Single commodity
Criteria Single commodity Commodity system
7. Planning approach System approach; by “Anchor
By commodity commodity” together with
linked commodities
8. Planning perspective Farm/ fishing household &
Industry development
industry development
9. Institutional/
organizational Commodity program Commodity system program
arrangements in planning directorates directorates
& implementation
10. Scope of Value chain All segments, players and Segments of two or more
analysis (VCA) their relations in one commodities linked in one
commodity unified system

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POLYCULTURE: a nature-inspired food production system
https://www.google.com/url?q=https%3A%2F%2Fwww.ellenmacarthurfoundation.org%2Fcase-studies%2Fecosystem-
inspired-farm-yields-large-profits&sa=D&sntz=1&usg=AFQjCNGeNjAybnG2Tbmk-mU1RYdI1rB_BA
The system
produces
rice, meat,
eggs, fish
with
reduced
external
input

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Illustration of Commodity System-Based Planning in Fisheries
(by phase of NAFMIP implementation)

Highlights
• Combining income and
employment potentials
of aquaculture &
marine fishery
• Diversifying to non-
fishery income and
employment sources
• HH further tapping
other farming and
livestock & poultry
raising opportunities

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Illustration of Commodity System-Based Planning in Inland
Aquaculture (by phase of NAFMIP implementation)
Highlights
• Combining income
and employment
potentials of
aquaculture and other
related aquatic
farming (e.g. ducks)
• Diversifying to non-
fishery income and
employment sources
• HH further tapping
other farming and
livestock & poultry
raising
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Potential Challenges
Areas of Concern Description
1. Suitability of existing DA organized by single commodity
organizational structure program
2. Budgeting and financial reporting DA budget is by commodity program
implications of joint planning
across two or more commodities
3. Capacities (and maybe Multi-commodity systems will involve
willingness to learn) of farmers new, additional, if not complex
and fisherfolk knowledge and skills
4. Lower though uncertain or Farmers and fisherfolk might
unknown risks of diversifying to perceive diversification risks to be
new commodities or product higher and hesitate to finance
forms technology
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Learning materials
Documents
• Feeding Metro Manila in 2050: A Food System Vision
• Engineering Innovation for Food and Nutrition Security
• Technologies for Feeding Metro Manila in 2050
Presentations and Videos
• A 20:50 minute video presentation (requires Google sign-in to access) of
Feeding Metro Manila in 2050: A Food System Vision, 42nd Annual NAST
Scientific Meeting with the theme “Science and Technology for Society:
Solutions to Long-Standing Concerns” on 8 July 2020.
•
Our Food Future is in the Past | The Science Behind Traditional Food by
Eufemio T. Rasco, Jr. (35:11 min video)