Burning bridges by building bridges

Do you remember the old folk song that goes, “ako ang nagtanim at nagbayo at nagsaing, subalit nang maluto ay iba ang kumain” (I planted, pounded and cooked my own rice, but some other guy ate it)? It is not exactly the same story for the farmers, but it is certainly how they still feel.

From irrigation, to land preparation, planting and harvest—it is a four- to five-month period for the rice farmer. Plowing is hard labor, or brute force, and we are not sure who the real beast of burden is: man or carabao. Planting does not require the same strength but try being bent down the whole day and tell me how your back feels.

The farmer pays for the rent of the land he tills, buys the seedlings and fertilizers, cares for the rice plants to ward off predators and pests, waits and prays that his hard work and fields be spared from storms. After harvest, he needs to convert immediately because it’s almost like he has to “break-fast”, bridge finances, pay debts, and survive. So he goes to a miller, and a middleman. Sometimes, the miller himself acts as the middleman who buys the farmer’s produce.

Farmers do not have the negotiating leverage because they are in dire straits, and without access to the real market. Moreover, the lack of solid educational background does not give them the confidence to articulate and rationalize on commercial merits. Educational deficiency even makes them shy. It becomes easier for them to accept the state of things as fate. They would need to use this traditional middleman, who dictates the price, and is rumored to make as much as 100 percent margin on their cost of purchase from the farmers.

Or, they may be able to get access to nontraditional middlemen, and be empowered. This Sunday is about two social enterprises that is almost a tale of two business models, both effective in uplifting the farmers’ experience, and their living standards.

Good Food entrepreneur Charlene Tan is a vegetarian with a particular liking for organic food, not to mention the heart for the people who plant them. After spending sometime in the US, where she was exposed to Community Shared Agriculture (CSA), she brought the idea home and started her business using this model. CSA allows a partnership between the farmer and the consumer.

Under this model, consumer-members or sign-ups pay a good price for the produce in advance. So the farmers are able to pre-sell and get compensated even as they plant, and before harvest. Consumers are attracted to this idea as they are able to get access to really fresh, high-quality organic vegetables that they desire. They would place their orders and the farmers would produce, based on these orders. The system also allows production in excess of the orders because farmers have cash from pre-payments and they know what is in demand.

Charlene, a young and tech-enabled entrepreneur whose educational roots go back to the University of the Philippines as a top engineering graduate, uses social media to access consumers. Good Food delivers to 80 member-families per week in Metro Manila and that number is growing. They sell the rest of the produce to random call-ins and through weekend trade fairs. Good Food now has three partner farms in Capas, Tarlac; La Trinidad in Benguet; and Bauko in Mountain Province.

Good Food buys the farmers’ produce and sells them to consumers, making Good Food a middleman, but with a big difference. The farmers not only have a say in the price; they are even connected to their consumers through community hubs, farm trips and events. Charlene does not only encourage organic vegetable consumption, she indoctrinates and encourages farmer groups to adapt to this demand. Good Food also helps in seed sourcing, joint production planning and access to micro credit, which all enhance the entrepreneurial capacity of the farmers. To give you an idea of what Good Food sells, they have the “bayong pambahay”, a pack of leafy and hearty veggies; the salad pack of crispy greens and herbs; and the juice pack, a choice mix of detox and energy-giving veggies for juicing. You may reach Good Food at www.goodfoodcommunity.com.

GlowCorp is another social enterprise that has gone big-time. In 2009, eight groups (three muscovado producers, three organic rice producers and two NGOs that support organic rice and muscovado farmers) organized themselves into what is now the Global Organic and Wellness Corporation or GlowCorp. They banded together to end the vicious cycle where farmers are always at the receiving end of unfavorable trading and pricing schemes, overdue payments by distributors and lack of logistical support. This group of farmers and NGOs created a common marketing vehicle where they can control the price and their distribution channels.

Bernie Berondo, GlowCorp’s general manager who puts his agriculture and economics educational background to good use, makes sure that the company, as the middleman, empowers farmers by allowing them to dictate the prices of their crops based on a cost-plus basis.

Today, about 5,000 sugar and rice farmers across the country, through GlowCorp, sell their combined produce of muscovado sugar and organic white and brown rice directly to major retailers and supermarkets—the likes of Rustan’s, Robinsons and SM. Farmers used to be involved only in production, but GlowCorp raised the bar and got them involved in marketing and negotiations as well. Profits are plowed back to the different farmer organizations through rebates, dividends, and technical knowhow.

The above are just two examples of social enterprises (both finalists in the Developmental Social Enterprise Award validated and presented by PwC and BCYF). One is a start-up that has a produce-as-ordered model that uses social media for marketing, and the other plays in the big league and has a regular inventory of goods for distribution to big business.

They both empower farmers by transforming them to farmer-entrepreneurs. Farmers will be farmers and they still toil, but this time with a blanket of aspiration, pride and self- respect. These social entrepreneurs burned old bridges, by building new bridges.