FARM Project Terminal Report

CRS Ag MEAL FARM Final Report Template

FARM FINAL PROJECT REPORT

I. COVER PAGE

Title of the project: PASALI FARM Project

Name of the implementing partner: PASALI PHILIPPINES FOUNDATION INC.

Time-period of the project: (June 2012 – December 2014/EOP month)

Date of submission: January 30, 2015


II. SIGNED TRANSMITTAL LETTER

January 30, 2015

Catholic Relief Services

4th Flr. Philam Life Building

Rizal Street, Davao City

ATTENTION: PEDRO TERRY TUASON III

Senior Program Manager

Agri/NRM Program

Thru: Randy Paler

AE Coordinator

Dear Terry,

Greetings of Peace and Partnership!

Pasali Philippines is officially submitting its FARM final project Report from June 2012 to December 2014 in

completion of M&E major deliverables.

Thank you so much. Best regards and more power.

Sincerely,

PAQUITO ESTREBILLA

Managing Director

PASALI Philippines Foundation, Inc.


III. ATTACHED REFERENCES

A. The Results Framework and Updated Partner Proframe (revised after the Midterm Review)

B. Executive Summary taken from the proposal submitted to CRS

C. Final Performance Indicator Tracking Table The PITT or IPTT is a table showing the comparison and percent accomplishment at the end of the project.

IV. FARM PROGRAM ANALYSIS

A. SO1: Increase in Agri production In this three-year project of PASALI-FARM project in partnership with Catholic Relief Services (CRS),

smaller holders and landless farmers beneficiaries were granted the opportunity to link them to markets, introduce production technologies, and most especially train the farmers on integrated farming systems and techniques for natural resources management (NRM). With these, farmer beneficiaries of rice, vegetables and coffee in different areas of Sultan Kudarat and Sarangani provinces have adopted the practices they learned during the trainings.

Project interventions related to farmers increasing agri production (by crop)

Appropriate Agri. Technology trainings on rice vegetables and coffee were conducted on the first

year of project implementation and a cascading and coaching combined with the topics on soil and water

conservation (SWC) and natural resource management (NRM) on the succeeding months. Trainings

includes palay check system a well-known technology promoted by department of agriculture, vegetable

Training in which we tapped EastWest a commercial seed company that commonly used by the

vegetables farmers and Nestle technology on Coffee production training. Exposure visit on various Good

Agriculture Practices (GAP) areas was also conducted every year to enhance the farmer’s idea on actual

field observation and motivate them on many stories from different successful farmers. With this, we

reached 4,319 farmers with a unique count of 2,249 and 1,882 non FB’s but attended the trainings

provided by the project, based on updated data status. Some farmers are dependent or neighbouring

farmers attended the trainings. The details of the trainings conducted are on table 2. Of quarter report

from October to December 2014. Production inputs like rice and vegetable seeds, shovel and sprayer was

provided to 500 vegetable and 1,276 rice farmers a seed support scheme was developed for sustainability

mechanism.

Rice Palay Check Training – the farmers enhanced their knowledge about the importance of giving time to rest their fields as fallow period of 30-45 days before planting again. Some rice farmers were also practicing System of Rice Intensification (SRI) and Low External Input Sustainable Agriculture (LEISA)-animal manure combined with conventional fertilizer. They appreciated the practice of not burning the rice straw, instead returned it to the field. Rice beneficiaries in Maitum and Kiamba have mostly attended the Farm Field School wherein PalayCheck System is being trained, after the training farmers were refreshed about the PalayCheck.


Vegetable ProductionTraining – Vegetable production technology was conducted in coordination

with EastWest seeds company .Some farmers on vegetable farming were practicing organic farming such

as fermented fruit juice as fertilizer (specifically in Brgy. Kawas, Alabel), using some herbs as repellant to

insects (Sitio Ihan, Brgy. Datal Anggas, Alabel).

Coffee production training was conducted as agritech technologies in coordination with nestle

for the coffee farmers. Most of the coffee farmers started applying compost materials in their coffee

trees as fertilizer coming from animal manure and other decomposed materials. Aside from removing

weeds, some of their coffee trees were being maintained by putting mixed soil and animal manure.

Farmer successes in the application of agri-production and NRM practices

Rice Most farmers are now practicing Palay Check, SRI and NRM practices. In Municipalities of Kiamba

and Maitum Sarangani Province, farmers are keen on pesticides application and not burning their rice

straws. While in municipalities of Palimbang and Lebak most of the farmers are practicing SRI to lessen

their production cost since they used 15 kilos of seeds compare to 80 kilos from usual production

practices and much higher yield compare to others like Mr. Tata Abdul got 94 sacks of palay from his 1

hectare while most of the farmers have an average harvest of 75 sacks. While in Alabel Sarangani province

some of the farmer like Mr. Teodulo Dalisay of alabel Sarangani province and Mr. Ricardo matunog of

Palimbang Sultan Kudarat are now practicing as seeds grower, their produce was sold to Local

Department of agriculture and also to his neighbouring farmers.

Coffee Coffee farmers from Municipalities Of Kalamansig, Lebak, Palimbang Sultan kudarat and

Maasim, Kiamba, Alabel Sarangani Province are practicing nestle coffee production technology. From

once a year cleaning of their coffee areas, they are now removing the weeds twice a year and some of

them are practicing rejuvenation. Selective Harvesting, removal of sprout, proper sorting and drying.

Before especially in Palimbang Sultan Kudarat, Maasim and Alabel Sarangani Province their coffee

produce was manually dehulled but now they are using the Coffee huller provided by the project.

According to them they are not only producing quality green beans but also generate income in their

group.

Vegetables Most of the vegetable farmers in Municipality of Alabel Sarangani province are only maintaining

back yard gardens for their food consumption but now because of the project intervention, 160 farmers

mostly women’s are now planting bell pepper, green and red hot chilli, carrots then collectively marketing

to Alabel public market, bagsakan and on-going negotiations for the food processor.

On the other hand, vegetables farmers in Municipality of Palimbang Sultan Kudarat, before they

are often treated very small because of their tribes as Manobo, an IP’s they only rely on hunting and

claiming royalty fees for illegal logging as main income. But now, after engaging with FARM project they

are well known as vegetable producers not only in Palimbang municipality but also in neighbouring

municipalities of Maitum, Kiamba and Kalamansig as they delivered their produce.


Based on the results of community needs assessment, most of the farmers are lack of farm

equipment’s like hand tractors to support their production, water for irrigation is also a necessity for them

since they only rely on filling rocks to catch the flow of the river but they do it every now and then after

the floods. During project implementation, clusters are mobilize and trained to make their own

assessment and endorsed their priority infrastructure supports. After finalizing their needs, project staffs

help them to facilitate the proper documentation and endorsement from barangay council is needed.

Social community preparation was conducted to insure the smooth implementation and maintenance of

the project provided to them. Commitments were laid to them and agree with the LGU to provide the

25% of the total project cost while the remaining 75% were support from the project.

The intervention of Infra Support to the farmers of 7 municipalities from Sultan Kudarat and Sarangani Provinces was a very big help especially to their community and for the livelihood. The project provided 75 infrastructures that support increase in production like hand tractors or kuliglig, power tillers or baobao, manual weeders and 2 new small dam and 1 rehabilitation of dam for irrigation. With this we reached a total of 2,150 farmers who have access to this supports and 242 actual users. As we notice, lesser numbers of actual users was recorded because of the delayed implementation of infrastructure supports and still need to trace some users because they are not recorded to logbook but managed to use the equipment.

Production inputs like seeds on rice and vegetables were distributed to insure the quality of their

production using quality seeds. The scheme was developed to insure the sustainability. Most of the farmers harvested the seeds and replanted again while some failed to germinate especially in vegetables. While some farmers like Mr. Teodulo Dalisay of Alabel Sarangani Provinces and Mr. Ricardo Matunog of Palimbang Sultan Kudarat managed to recycle the seeds and produce registered seeds and sold to local LGU for seeds dispersal and neighbouring farmers.

The seeds that were provided to the farmers were already planted during the last cropping season after it was distributed. However, most of the rice seeds that were planted failed to germinate and some were infested by black bugs and rats. The areas that were infected by these pests are the rice areas of Maitum, Kiamba, Palimbang, Kalamansig and Alabel. Only 40% of rice from the seeds provided have produced and harvested. Since other farmers failed to harvest their crop, they take the initiative to source out for new rice seeds to plant on their field so that it won’t stop the production of “palay” where some of the farmers get their source of living while most of the farmers got their seeds from their neighbor.

On the other hand, vegetable farmers in Paraiso, Alabel strengthened their production of Sili green. More men and women are becoming seed growers and have expanded their production now. The cluster in Kawas Alabel, switched from Bell-pepper to Eggplant for the mean time. While the Manobo farmers in Biao, Palimbang reduced their eggplant production due to over-supply last year. They agreed to diversify their vegetables and schedule their production of Eggplant and other vegetables. In Kalamansig Sultan kudarat, vegetable farmers in Brgy. Cadiz, bought new sets of seeds which they already planted after the seeds that were given to them by the project.

Cluster experiences in the utilization of production related infrastructure

One example of it was the construction of new dam in Brgy. Medol and Brgy. Malatunol Northern Palimbang Sultan Kudarat Before, they just keep on filing rocks at the opening of the water outlet in order to get the some water to flow on their rice fields but now they really benefitted the irrigation because of the intervention, additional hectares have been cultivated because of the water was distributed normally to the specific land areas.

Farm equipment’s provided in 7 municipalities covered by the project like hand tractors and power tiller support in rice farmers also gave them an easier way to prepare their farm lands. In brgy. Domolok, Baluntay and Kawas, Municipality if Alabel Sarangani Province and in Brgy. Malisbong, Lumitan, Kabuling, Kolong kolong, Kanipaan, Sanroque, Barongis, Municipality of Palimbang Sultan Kudarat. Because of it, they could possibly have a synchronize planting for 3 to 4 persons already


Overall project achievement related to SO1. On increase in production, Most of the farmers have increase in their yield because of various

technologies like Palay check, Vegetable production training and coffee production technologies and on site technology from exposure visit they learned. Most of them paid their debt to local traders while some of them bought motorcycles and lands that they plan to utilize by planting coffee as main crops. Vegetables farmers have tremendous increase in production after expanding their planting area and they grow vegetables not only for consumption but for marketing their product as a source of another income for the family. While on rice, some of the farmers increase their production but most of them are not because of the external factors; according to them weather condition are changing not on normal condition. Because of this, different species of pest are observed in the fields that damage the crops. In Municipalities of Palimbang, kalamansig and Lebak Sultan Kudarat, Financial institution like MFI’s are not engaging with them because of high risk and unstable peace in order situation in the area which according to the farmers it is one of the main needs or intervention to gain success on their rice farming.

On infrastructure supports supporting production, most of the farmers are almost on

synchronize farming. The supports bridge the gap of lacking farm equipment’s on land preparation. They can now prepare their lands for cultivation according to their own planting calendar.

Farmers /farmer clusters with experiences in increased production.

Farmer clusters in brgy. Medol Northern Palimbang, sultan Kudarat increased their production

from 1.77MT/Hectare from baseline to 2.34M/Hectare last harvest season. The strong commitment and motivation of Mr. kiram Ariz- President of Medol SRI farmers association gains not only on increase in production but it also attract government agencies. They are now one of the beneficiaries of 1 unit solar dryer from Department of Agriculture region 12 and two from their members including him are registered Local Farmer Technician (LFT). They function as Agricultural Technician in the municipality. Vegetable clusters in Sitio Biao, Brgy. Napnapon, Palimbang Sultan Kudarat increased their Production. Before the project start, they are not planting vegetables; they only rely on hunting and collecting royalty fees for illegal logging. But after the project provided the seeds, sprayer and shovel, they are encouraged to plant vegetables. Last cropping of their eggplant was a huge contribution not only to their community but also to community proper were they sell, they can eat fresh vegetables compare to the usual were vegetables are coming from General Santos City which 180 kilometers away. Farmer clusters reached even the nearby municipalities of Kiamba and Maitum sarangani province and Kalamansig Sultan Kudarat to get high price for their produced. The main output of the project for them is not only the huge vegetables they produce but in fact. These communities are 100% manubo dulangan tribe an Indigenous people (IP’s) and are now well known to the community as vegetable farmer producers of Palimbang. Other relevant information related to the achievement of SO1 (e.g. opportunities/threats).

Department of Agriculture region 12 is now on their full implementation of rice mechanization Program. Newly organised rice cluster are planning to establish their identity so that they can avail the program. They are also giving composting facilities to enhance the organic agriculture production in the area. Most of the organizations and clusters are functional and plan to operate by them; one of the challenges may occur is the poor management of the group. The project is more focus on production and marketing component while the strengthening of groups has less intervention. During site working groups


meeting, this is the task that was raise for the Local government units (LGU) to interfere after the project period.

B. SO2: Increase in collective marketing

Collective marketing is one of the great factors that smallholders can position themselves to have a highly commercialized and competitive agricultural market. It also helps the farmers to generate more income.

Project interventions related to increase in collective marketing (by crop)

The major interventions on this component are the trainings on Agro enterprise step 1 to 8, marketing, leadership and values and AE review. With this, we reached 3,346 farmers with a unique count of 1,902 registered farmers and 1,332 not registered. The outputs of these trainings are the 310 clusters developed their own business plan or agro enterprise plan, 227 of this are planned to engage with value addition. After the series of trainings on AE and marketing, coaching and mentoring was conducted with the close coordination of project staff and Agri. Extension Workers. The product supply assessment and market chain study (PSA-MCS) gave the farmers idea on how to consolidate the supply from different producers. And monitor the price trend of each commodity that helps the plan for production cycle.

Furthermore, one of the unique strategy used during training are the three level capacity

building enhancements. Catholic Relief Services (XU) and Xavier University (XU-SEARSOLIN) trained the

project partner staffs for the first level then facilitator or project staff trained the 124 Agri-extension

workers mostly agriculture technicians and selected barangay agriculture officer for the second level and

finally, the Agri. extension workers cascade to 353 cluster leaders and remaining barangay agri. workers

as Para extension that trained and coached cluster members for the third level.

Cluster experiences in the utilization of post-harvest related infrastructure support and support to value addition.

Project interventions on post-harvest are 20 units provided by the project while 3 units were provided by department of trade and Industry (DTI) for their shared service facilities program (SSF) which facilitated by the project. The equipment’s provided are coffee huller/depulper, all weather cellophane, sorting shed, road improvements, Rice threshers and collapsible dryer. With this we reached 6,734 farmers who have access to infrastructure supports and 202 actual users. Same with other infrastructure supports we notice, lesser numbers of actual users was recorded because of the delayed implementation of infrastructure supports and still needs to trace some users because they are not recorded to logbook but managed to use the equipment.

Coffee clusters in municipalities of Kalamansig and Lebak Sultan Kudarat increase large numbers, who have access the all-weather dryer because of positive output. According to the coffee farmers, which they used it on their first harvest last September 2014 and came out that they are no longer afraid if the rains came considering the climate in hilly areas that rains frequently. And the berries dried in all-weather dryer are much faster to hull while coffee cluster in brgy. Datu ito, kalamansig are now transporting the green coffee beans after installing the coffee huller in their village. They have to travel by sea, before they will travel the fresh berries or ready to hull berries which much heavier and bulky considering that the freight was in per kilos. Coffee clusters in Brgy. Nomoh, Maasim Sarangani Province gains not only knowledge but also income. Before their coffee was rejected several times by nestle Philippines due to improper post-harvest practices, and they will travel around 15 kms. To centro proper to dehull their coffee then travel back to their house it is very expensive especially on marketing cost then because of coffee huller granted to them. They are always on top


every delivery from either grade 1 or 2 to nestle. As a matter of fact, nestle buying station in their last marketing gave them a token since they are now well known producers of quality green coffee beans.

Farmer successes in AED, collective marketing and access to modern markets.

Before especially in municipalities of Palimbang, Kalamansig and Maasim Sarangani Province sell their

coffee through fresh berries and trade to can goods, sugar, rice, tabacco and sometimes used clothes because of lack of Agri-technology and post-harvest equipment’s. Finally, they are now collectively marketing their green coffee beans to Nestle Philippines one of the biggest market of coffee in the country. On vegetables of alabel sarangani province and palimbang sultan kudarat are marketing their produce to bagsakan, consolidator and neighbouring area. As a living testament they are now engaging on value addition they have on going negotiation on the processing for the red hot chilli as chilli powder. Alabel vegetable farmers re-activate their association and plan to put all vegetable farmers of Alabel into one umbrella which is the Alabel vegetable growers association. The agro enterprise approach was appreciated by farmers, because of this; they have their own plan from production to marketing compared before where they only focus on production level. They negotiate easily with the modern markets since they have their own business plan that guides them.

Rice

For most rice areas, collective marketing has been a challenge because most farmers harvest

simultaneously not synchronously due to simultaneous type of planting and they are in debt in the local

traders. However, an association in Palimbang the Barongis SRI Farmers Association (BSFA) who lends to

their members for individual farm needs was able to consolidate and deliver week by week. In Brgy.

Barongis, Municipality of Palimbang SK, 5 clusters who are members of the Barongis SRI Farmers

Association consolidated 49.9 MT of palay already. Within the month of October 2013 alone, 3 clusters

delivered 9.7 MT of Fresh Palay in 3 separate deliveries. The subsequent delivery per cluster is the

following, 2.8 MT, 3.3 MT and 3.4 –all of which exceeded their supply plan of 2.5 MT per delivery. Because

of the capacity of the association to consolidate such a volume, large buyers now come to them to ask

their price instead of the farmers asking the traders. As a result, each member earns up to 5/kilo

compared to their forecasted ROI of Php1.3/ kilo. This change is also happening to other associations with

a strong leadership particularly in Brgy. Medol, Northern Palimbang Sultan Kudarat and in Brgy. Tambilil,

Kiamba Sarangani Province. The recent collective marketing in Alabel was also a result of simultaneous

delivery. In Brgy. Baluntay, Alabel, 4 farmers consolidated 15.8 MT in 2 separate deliveries which was

picked-up by their buyer and because that cluster is known to produce good, soft variety of rice, they are

given special price by the buyer, up to Php 20.50/ kilo in fresh palay.

Coffee

Kalamansig and Lebak coffee farmers had a tremendous increase in their income as they collectively marketing their coffee to nestle continuously. Before they only sale their produce to local traders as they are discourage by them that it’s hard to market the coffee in nestle because of strict quality inspection. But because of agritechnology training they have knowledge on proper production and post-harvest practices and gained confidence that their coffee produce was marketed to nestle Philippines and receive through grade 1 and 2 qualities. Around P10-30 pesos price increase compare to local traders.

Coffee cluster in Barangay Nomoh Maasim sarangani province gained increase income, before most of them sell their produce on fresh berries at P15/ganta because of lack of knowledge on post-production. They also manually dehulled their coffee and sell to local coffee traders at P40/kilo. They even tried to Nestle but constantly rejected. Eventually during the project implementation, they gain knowledge and exposed to coffee marketing that boost their confidence. For now they collectively marketing to nestle and have a price of P80-P90/kilo and consecutively delivered with a grade 1 quality.


Overall project achievement related to SO2.

After the project period, we consolidated a total of 237 deliveries with a gross sale of P13, 294,891.00 and

with a net income of P6, 049,956.91 that participated by 1,309 farmers. Target of the project on farmers that participate on collective marketing is 2,640. Main obstacle why the numbers did not reach is, because more farmers have long standing credit loan with high interest to local traders, that they cannot commit their product and threaten by traders that they cannot borrow again. With this concern, absences of micro finance institutions that offer less interest are felt. Micro finance institutions (MFI) had still hesitant to go into Agri-loan because of high risk and peace and order situation of the area.

Moreover, because of the interventions provided by the FARM project especially on agro enterprise (AE)

and agri-technology trainings. Farmer beneficiaries realized the importance of value addition and collective marketing. Increase in income was reached in coffee and vegetable farmers as they are able to sell their produce to modern markets like Nestle, Bagsakan and consolidator. While in rice, minimal amount of increase because of unstable price trend and competition on rice marketing is very harsh. On second year of the project, price from local traders are much higher compare to institutional market like National Food Authority (NFA). And local traders are offering free trucking to get all the palay of the farmers direct from their farm that lead to discouragement of rice farmers to engage in value addition. As they computed, minimal or break even on marketing cost compare to fresh palay sold. However, farmers are empowered and knowledgeable of the product they will sell fresh or dry, depending on the price market demand. Rice farmers are very thankful to the project since their hindrance on their land preparation and post-harvest was addressed by providing them farm equipment’s like hand tractors and thresher. While all-weather dryer and coffee huller for coffee farmers that gives great help to them by producing high quality green coffee beans. Most significant accomplishment by the project are the increased of price by the local traders as they are competed by the farmers group. Example is the coffee clusters in kalamansig and lebak that since they already delivered to nestle. Local traders are forced to go higher their buying price. Brgy. Captain Solangoy said it is a big gained for them that before local traders are buying coffee around P40-60/kilo compare to P80-100/kilo to nestle and now around P70-P80/kilo small margin compare to nestle price.

Farmers/farmer clusters with experiences in increased income from collective marketing

Coffee

The successive joint deliveries of coffee clusters in Lebak and Kalamansig became a pushing force

for them to improve their practices which resulted to improving grade classification in Nestle’. Pasali with

the two (2) LGU’s joint hand in hand to materialize the first test marketing since farmers show no interest,

even the Municipal Agriculture Officers and Agriculture Technicians and project staff undergo house to

house to convince the leaders. During their first time delivery in December 2012, farmers were yet fearful

thinking that they might not pass in Nestle’ and so putting themselves in a high risk of loss due to high

trucking cost since General Santos is an 8-10 hour travel from Kalamansig. But for the first time, they got a

Grade 2 & 3 classification. After that, from 31 farmers, the number of commitments rose to 210 farmers

by 2013. Last March 2014, many clusters are already in Grade 1& 2 qualities. Mr. Mandi Lambos, a

Manobo farmer in Brgy. Hinalaan said because of the series of collective marketing, he was able to buy 3

hectares of land and he plans to make it a coffee plantation. Another development is the establishment of

a coffee council in Lebak & Kalamansig that joins all the Barangay with coffee for future joint deliveries. In

this, we are seeing initiatives of farmer groups to sustain what we have started doing in them.


Vegetables

In Kalamansig, 2 clusters in Brgy. Cadiz experienced high ROI because they learned to sell their

own vegetable in the public market, instead of selling to vendors and eateries which are their original plan

for marketing. Last January 2014, 2 clusters sold their 180 Kilos Ampalaya @ 50/ kilo while if they sell to

vendors they would only have a sales of 35/kilo. While in Brgy. Paraiso, Alabel Sarangani province, the

success in collective marketing of vegetable farmers who also experienced market visit to processors and

different large buyers encouraged the farmers to be serious about planting Chillies. This was a major

change because from doing nothing, being idle and not being interested in vegetable farming, B’laan

women in Parasio, Alabel become seed producers now. Also, from a shy state, a woman cluster leader

Esterlita Talino admittedly expressed to the project staff her happiness in learning “the art of

negotiation”. After repeated deliveries of Chillies and also, they discovered market for their local product

“ Bisol”, Tundan, Lubi which they include now in their deliveries. From zero income, now they have a slow

yet steady and diverse source of income. 70 women become an active earner in the family, not depending

on their husbands alone and not depending on GMO corn farming which degrades the land in the long-

term. In Sitio Ihan, Brgy. Datal Anggas Alabel, the community (which is almost an hour from the Poblacion

marketplace) benefits from the common farm of a cluster. The community teachers expressed that

because of the cluster of Mr. Boy Lerio, they can have fresh and nutritious vegetable from time to time.

Other relevant information related to the achievement of SO2 (e.g. opportunities/threats.)

Kalamansig Coffee Council (COINDECO) together with Lebak coffee producers association are planning to have a joint effort for the continuation of collective marketing activities with the help of two Municipal Agriculture Offices (MAO’s). With the leadership of active cluster leaders and members, we are assured that they will gain success on their activity. While the organize rice clusters that turn into association like in Brgy. Medol, Barongis, and Kolong2x, Municipality of Palimbang, Sultan Kudarat, Brgy. Kawas, Domolok, Baluntay, Municipality of Alabel and Brgy. Tambilil, municipality of Kiamba Sarangani Province are now planning for the buy and sale ventures and to support their needs on production by providing loans to their members.

While some of the farmers clusters are on establishing their groups. Most of the individual farmers beneficiaries are still in debt on local traders, according to them because of the project intervention and successive collective marketing like in Municipalities of kalamansig and lebak, Sultan Kudarat they almost paid their loans while some already fully paid, they promise to have a huge supply on collective marketing in the next season since they are not tide to traders or have minimal amount of loan. But because the project ends, we are aware that maybe they will go back to traders and the cycle will be back again. We have the recommendation that although the project ends, the PASALI are still with them and never stop on facilitating and helping them since we will engage in other project like the tri people community development program.

B. SO3: Enhance Agriculture Value Chains

Project interventions related to increase private public partnerships – linkage with LGUs, MFIs, National

Government Agencies, other donors/organizations, Academe, other service providers etc.

The FARM project formed 310 clusters with 3,300 members; focus groups on women are vegetables

farmers of which they are composed of 51%. These farmers’ beneficiaries can now negotiate on their

own, from marketing of their produce and lobbying to local government units to support their needs on


agriculture production. Their selected leaders are setting every site working groups meetings where they

cannot only broadcast their feelings as many of them seems that they are left behind by the local

government, but they also learned most of the programs for them both from local to national level.

LGU Partnership

Because of strong partnership built with local government and other stakeholders. Farmer

beneficiaries are confidence in lobbying their needs as they have already eyes and ears on LGU projects

and they are aware of currents projects from LGU. As members of SWG they are also invited even on the

Bottoms up Budgeting (BUB) of the government and they are organized into small clusters or group. On

the other hand, government line agencies saw the potentials of the farmers as a producer of various crops

that enhance the image of the community.

Site Working Group (SWG) was formed, meeting was conducted monthly and members like LGU

representatives, Municipal Agriculture Officer (MAO) and Municipal Planning Development Coordinator

(MPDC) and selected Micro Finance Institution (MFI). During infrastructure implementation, the SWG

became the Bid and Awards committee (BAC) and helps provide the commitment counterpart

contribution from LGU and Communities.

7 municipalities of the FARM project have formed the SWG which they will take over the project

intervention and accomplishment when project end.

Strong Links to office of provincial agriculture (OPAG-SK) which are planning to links with PASALI for

the Provincial Rural Development Program (PRDP) and targeted the Coffee FARM project areas for

intervention, they are planning to adopt the agro enterprise approach same with department of

Agrarian Sultan Kudarat- DAR SK for the DarMINSAAD project.

NGA Partnership

DTI Sarangani provided Coffee huller, Depulper and moisture tester in another Sitio in Brgy. Nomoh,

Maasim Sarangani Province after sighting the potential of the area for coffee production.

Representative from DTI Sarangani is one of the attendees in every SWG meetings and after they

know the project, they collaborate with Pasali for their Shared Service Facilities. (SSF).

PASALI Phillippines Inc. is shortlisted for the Coffee processing equipment/Roasting facilities through

Kapit’ Buhay Program by Philippine Coffee Alliances (PCA) a National Organization through

Department of Agriculture high value crops department.

Access to MFI

Microfinance institution (MFI) has a big role on agriculture development. And because of the project

a pilot intervention with KPS-SEEDS an MFI was materialized. Before, they don’t want to engage in Agri-

loan because of higher risk, but after they understand that farmers will engage in Agro enterprise. A pilot

Agriloan product was approves to a coffee group in Maasim, Sarangani province. The lesson learned and

an experience during the implementation of the project is the start up for the KPS-SEEDS that they are

planning to undergo a massive Agri-loan in their entire area of coverage.


Pasali provide the list of farm project beneficiaries and they are the loan recipients. Project staff

facilitated their Agro Enterprise plan to sustain collective marketing and ensure the payment. After all,

during the second round to loan, Pasali became one of the main recommendatory together with Brgy.

Council of Nomoh.

KPS-SEEDS a Micro Finance Institution (MFI) provided Loan Amounting to P462, 500.00 that benefits

150 coffee farmers. As of now, they are on second round of disbursement with close coordination

with PASALI and Barangay Local Government Unit (BLGU) headed by Brgy. Chairman and applying the

lesson learned in first batch. They are preparing for big agri. Loan products and targeted the area of

FARM project for replication and potential beneficiary.

Overall project achievement related to SO3.

Finally, with the partnership build with Local Government Units (LGU’s) and strong participation of

Municipal Agriculture office (MAO). The project intervention will continue, it was agreed that all the

Agriculture Technicians (AT) will monitor the infrastructure supports provided by the FARM project.

Farmer clusters organized showed their potentials as a supplier of agri. Products. Nestle Philippines

expanded their support to 4C programs while the government agencies like Department of Trade and

Industry (DTI) and Department of Agriculture (DA) national and regional are also extending their

programs for the small farmers in the country. KPS-SEEDS a micro finance institution (MFI) after gaining

lesson learned and come up with product loan that suits to farmers, are now planning for the big Agri-

loan all over their project areas.

Other relevant information related to the achievement of this SO3 (e.g. opportunities/threats).

Because of the project intervention, the local government especially the provincial level are eyeing for the

possible partnership with PASALI. In Province of Sarangani, Governor Steve Solon is interested for helping

each other. Pasali’s intervention was presented to him last June 2014 during NGO convergence facilitated

by PLGU Sarangani. While in Province of Sultan Kudarat, Mr. Nestor Casador- Office of Provincial

Agriculture (OPAG) is on close coordination with PASALI for the Provincial Rural Development Program

(PRDP).Same with Department of Agrarian for the Mindanao Sustainable Agriculture and Agribusiness

Developments (DARMINSAAD) and plan to target the farmer beneficiaries of FARM project.

D. Successes and Challenges

Key successes and major challenges in the implementation of the project 1. Established linkage with Nestle enabled farmers to get a high price. 2. Collective marketing to Nestle pushed traders to offer competitive prices 3. Coffee dehller enabled coffee farmers to meet high quality requirements

One of the successes of the project is the link of coffee farmers to Nestle. Coffee farmers from municipalities of Kalamansig, Lebak and Palimbang Sultan Kudarat and Maasim, Alabel Sarangani province


are now marketing their coffee produce to nestle Philippines on their own and get a higher price compare to local traders. Another outcome of the project is the tremendous increase of local price from traders since they are alarm that they cannot buy the product of the farmers. Brgy. Captain Solangoy of Brgy. Hinalaan, kalamanisig quoted that; before, local traders buy their green coffee beans with lowest price. And now since they already know that farmers are consolidating their coffee to nestle. They abruptly, increase their buying price with small margin price compare to nestle. According to him, the change of the situation is a big gain for the small farmers.

Moreover, infrastructure supports gave a big success for the coffee farmers in Brgy. Datal Anggas, Municipality of Alabel and in Brgy. Nomoh, Maasim Sarangani Province, before they will manually dehull their coffee and can produce 2 sacks of green coffee beans in a day. But now, because of the project intervention, a sack of green coffee beans can be dehulled through the coffee huller in a minute and with the superb quality which less work on sorting.

4. Peace and order situation inhibit thorough facilitation in the project areas

5. Indebtedness of farmers to traders inhibit their ability to commit to collective marketing

Major challenges encountered during project implementation are the peace and order situation of the area. There are times that the project staffs are not allowed to travel because of on-going conflict especially in municipalities of Kalamansig, Lebak, palimbang sultan Kudarat and in Municipality of Alabel and Maasim, Sarangani Province. Existing loans from traders is also a hindrance in collective marketing. Most of the cluster members prefer to deliver all their produce to the traders where they have a shark loan. Because of the needs for intervention, the project searched for Micro financial institution (MFI) that can cater the gaps but because of peace in order situation of the area, none MFI’s are willing to operate in the coverage area especially in Province of Sultan Kudarat. The MFI’s are only planning to operate in the area which is very accessible and nearby to the cities like the pilot agriloan of KPS-SEEDS an MFI in Brgy. Nomoh, Maasim Sarangai Province.

E. Unanticipated Outcomes

Discussion of unplanned/unexpected negative and positive outcomes

1. Minsaad project will operate in FARM project areas `

Last July 13, 2014, the Department of Agrarian Reform Office, Province of Sultan Kudarat initiated a second meeting with the non-government organizations operating in the area. They were planning to enter into partnership with Kadtuntaya Foundation, Pasali Philippines Foundation and CMEM—recognizing that these organizations are already implementing the Agro Enterprise Development in partnership with organized farmers association in their areas of operation. These areas where these foundations operate were also the same target areas of the MINSAAD Project. Furthermore, the Office of the Provincial Agriculture, Province of Sultan Kudarat invited Pasali Philippines Foundation and Kadtuntaya Foundation for a follow-up meeting to discuss the possibility of entering into a partnership to implement the Provincial Rural Development Program (PRDP). Initially, there was an agreement reached that FARM project areas of the two NGO’s for coffee will be priority areas for this project and the established farmers association/cooperatives will be the target beneficiaries’ as well since they had adequate experience and training on the Agro Enterprise Development. These two activities are positive outputs that can lead towards sustainability of the FARM project. 2. Implementation of infra support to farmer clusters created misunderstanding with existing providers and the community.


The intervention of infrastructure support is an important contribution to farmers increased efficiency in their land operation and other production related activities. However in some areas; it has created competition between those that offer services for farm production machineries to farmers and the beneficiaries of the FARM Project who were supported machineries and infrastructures particularly on the preference of farmers to use brand new equipment rather than the old farm equipment offered by local businesspersons. Due to this concern, PASALI staff commenced a dialogue with other existing owner of Farm Equipment’s in the area. They agreed to have collaboration with each other. Most of the area they adopt the policy of which the existing owner who have hand tractors only can borrow the thresher of the project same with the existing owner of threshers can avail the hand tractors and turtle of the clusters. And agree to have a flat rate on usages fee, the existing rate in each barangays will be the usages fee for all the equipment’s from FARM project.

Good news though is that the three rice threshers burnt were already replaced and delivered to the three barangays in Northern Palimbang. Though the design of the project is very good, still it can’t control some instances like misunderstanding in the community. Just like what happened to Brgy. Medol, Palimbang. The implementations of new dam have caused some personal interest especially between the landowner and the association when it comes to the income generated from dam. The landowner demanded that the whole share (1 sack of palay per hectare as agreed on policy) should go to the land owner not to the association.

Base on the agreed policy of Medol SRI Farmers Association. In a hectare of rice area irrigated by the dam, the members will pay 1 sack fresh palay as irrigation fee every cropping. This will be divided into two shares; the land owner which is 1/2 sack and 1/2 sack to the association. After the concerned with the owner, the officers with its members conducted a meeting with the presents of Pasali and brgy. Council of medol and explain to the land owner the policy which he also signed. During discussion, he was amazed that even he agreed to that policy. To settle all the misunderstanding, the association gave a copy to the land owner all documents especially the policy and the copy of dead of donation.

PASALI FARM Project is planning to conduct the turnover of the dam project in Brgy. Cadiz, Kalamansig last August 2014, but there was an incident happened. Because of the two days strong rain the dam provides a large volume of water that flooded some areas especially the schools below it, resulted for the suspension of classes for two days. The schools and the community who were affected were blaming the construction of dam project. Because of that, the LGU, Police, Municipal Engineering Office, PASALI staffs, Farmer Association and the community conducted a meeting; they found out that the exit portion of water from the dam was blocked by a family who doesn’t want the water to flow in their area. That is why; the water was stocked near the schools until it resulted to flooding in the area. Per resolution made, part of the cemented dam will be reduced thus is the volume of water provided by the dam. Also, LGU Kalamansig has to fast track the approval of the budget for the establishment and reconnection of the exit water. If this can be resolved early, it can already provide benefits to other rice farm areas utilizing the water drawn from the dam. The dam is now supplying the water for irrigation for the farmers on the other areas but not yet for the intended clusters of the Pasali-FARM. The exit water on the side of the area which is on the other side of the road was blocked by a certain owner of the lot. According to them they don’t want that water will flow near their house considering that the canal was an existing prior to their transfer. After that incidents, the LGU of kalamansig, represented by Mun. Engineering office, called up a meeting and dialogue together with barangay council of Brgy. Cadiz, PASALI Philippines Foundation Inc., Cadiz irrigators association and lot owner, The PNP kalamansig was also present. Brgy. Council of Cadiz explained to the lot owner that they have to re-open the canal. And to prevent the possible flooding in their area and the lot owner suggest to fast tract the implementation of culvert. The target of the LGU, based on their commitment, implementation for the reconnection of exit water will be in their priority.


PASALI FARM project areas are now affected by series of incidents/situations that can affect the

project implementation. In municipality of alabel, a group of soldiers was ambushed and bodies of the soldier

were burned last February 2014 by an alleged new people’s army (NPA) operation in the project area of Brgy.

Datal Anggas. That incident affected the delivery of the coffee huller machine.

On February 28, 2014, Mayor George Perret was ambushed and shot dead in the municipality of

Maitum. Implementation of all-weather dryer and sorting shed were affected because the relationship that

previously established between Pasali and LGU were also affected thus Pasali had to re-start, re-build

relationships with the new administration.

On March 21, 2014, the two administration buildings of municipal hall of the municipality of

Palimbang were burned down. The three newly delivered units of rice thresher from Pasali-FARM project were

also burned. After that, on the first week of May, 2014, Municipality of Lebak was also damaged by the

motorcycle bomb where Hon. Mayor Besana with his two bodyguards is in serious injury. This is the first time

that the peaceful place is now hit by the bad situation. And again, last May 15, 2014 two factions of MILF and

a lost command exchanges fire for 3 days near at the hi-way. The affected areas are brgy. Napnapon in which

is our project also operating. During this situation, the PASALI management ordered the staff not to travel on

the affected areas. On farm machineries and infrastructure the safety of this are now on clusters and Farmer

beneficiaries awarded by the project. Moreover, PASALI will monitor and continue the progress, management

are now a member of the Peace and Order Council of the LGU Palimbang which convened monthly at

Municipal Hall of Palimbang.

Collective Marketing of Out-of-AE Plan crop

In the project, 47 farmers got assisted in the marketing of locally-available crops not included in their AE

Plans. They were assisted in the marketing of 1,184.75Kilos of various vegetables such as Mung beans,

Squash, Taro, Tomato, Bitter Gourd, Bell-Pepper, Cucumber, etc. from the period March 5, 2013- October

30,2014; with gross income of Php 33,911.25.

Marketing Assistance on Non- FARM Beneficiaries

The project also assisted coffee farmer individuals and groups as well as farmer traders who are non

FARM beneficiaries from year 2012-2014. This is mainly to augment the volume needed by our farmers to

prevent being under-load to be able to save in the trucking cost. All in all, there is a 9.1 Metric Tons of

GCB with a total of gross sales 783,635 that was marketed.

F. Major lessons learned and implications for future programs

1. The need for a more customized, farmer level training module.

On trainings especially on AE and Marketing, the training modules are good enough for level of

facilitator like MAEF’s and Agriculture Technicians but not to the level of Cluster leaders and members.

Based on our experience, the facilitator needs to revise the modules so that the cluster leaders and

members can understand. It should be farmers friendly approached.

2. Engage MFIs at the start of the project to jointly plan interventions


On Test Marketing/Market Negotiations, most coffee and rice farmers are tied up to traders, Price

trend on rice are unstable, there are times that price on rice on traders is higher compare to institutional

market like NFA and in rice farming it’s hard to have collective marketing since not all of them are

synchronous. It is recommended that financial assistance like MFI’s will come up a complete product loan

that suits to farmers like individual loans for the farmers and also a marketing loans as buying capital for

the group.

3. Implementation of infra support at the start of the project

On Infrastructure project implementation, was delayed and was not on time. One of the reasons is the

changes and additional Checklist and the availability of funds. There are also problems on farmer

behaviours and attitudes some of them especially the educated are the active members while the low

level farmers are only on wait and see mode. In farmer values and culture we have to promote strong and

selfless leadership and on project implementation especially on infrastructure support, it should be on the

first year of implementation so that during project period we can monitor and help facilitate for the

operations.

4. LGU needs to identify regular ATs to sustain the extension delivery

On Changes of leadership/administration of LGU needs to regularize the partnership with agriculture

technicians that have knowledge of the project to continue the activities and properly turnover of

responsibility to the new implementer. Most of the trained counterpart in the local government unit the

Agriculture Technician (AT) which are trained on AE approach; Agri-technologies are contract worker or

job order that may soon leave the office. Lobby to the LGU for the Support to allocate resources like

funds and human resources to continue the intervention of the project especially on PO’s strengthening

for sustainability.

G. Success and Learning Stories

Five success stories were documented through video documentation;

1. Fast Crop to Cash (Vegetables) story of farmer’s success in municipality of Alabel Sarangani Province.

2. Harvesting the Fruits of Collective Marketing (Coffee) story of farmer’s success in municipality of Kalamansig Sultan Kudarat.

3. Trade to Success (Coffee) Story of farmer’s success in municipality of Maasim, Sarangani Province.

4. Tambilil’s Mechanization (Rice) Story of farmer’s success in municipality of Maasim, Sarangani Province.

5. Mini Dam in Palimbang (Rice) story of farmer’s success in municipality of Maasim, Sarangani Province.


“AT’S in ACTION”

Mr. Edgardo Nimes Agricultural Technician from Office of Municipal Agriculture, kalamansig

Sultan Kudarat. He is creative and innovative, even Saturday and Sunday he will work and accompanied us

going to the field to meet the cluster leaders and members and plan out the collective marketing

activities, which conceivable increase income for the coffee farmers, and appreciate the Agroenterprise

clustering approach. He easily connect us to the local government unit of kalamansig especially the

agencies needed by the project.

Before, he is a regular employee of OMag base only in their office; according to him he only

wants the time in and out of the office not even visited the area of farmers regularly. However, during the

FARM project implementation he accompanied us during every field visit to the area and helps us

motivate the farmers to join for the collective marketing. Because of his presence, we easily get the trust

of coffee farmers.

Other AT’s in their office are challenges and made the moves to replicate the clustering and

collective marketing in their assigned area of coverage. Because of Mr. Nimez leading edges, relationships

with the LGU become stronger and they are aware of the project which easily gets their commitment

especially on infrastructure supports counter parting. Mayor Rolando Garcia of kalamansig actively

engages. As a matter of fact, he went to the ground breaking ceremony of our dam rehabilitation and

positively commits rice for the food for work thru DSWD and DA. He seldom attends trainings and seminar

conducted by PASALI.

Additionally, thru collective marketing the farmers affirmation of the price margin between local

traders and nestle are much higher ranging from P10-P30 pesos per kilo. In which the gain become the

income of the small coffee farmers in kalamansig.

Considering the intervention of PASALI FARM project, the LGU of kalamansig formalized the

group into kalamansig Coffee Council (COINDECO). Mr. Edgardo Nimez is one of the co-facilitator of this

organization that actively engages in collective marketing activities of the project. All of a sudden, he was

assigned to treasury office but still he was able to help the pasali staff for the implementation of the

FARM project.


“The Journey of People of Paraiso”

My first visit to Paraiso was last June 2012; fleur was invited to attend the FSTP class for corn

since Paraiso was identified as one of the corn cluster of Alabel. I had the first glimpse of the B’laanmen

and women of the said barangay. Since then, I am a regular visitor to their barangay. They are very

accommodating people and I lerned so much from their culture and families.

My first visits were accompanied by warnings from concerned citizens that my project will not be

able to reach its goal knowing the external factors that will hinder to reach my objective. In addition to

this, water system was a big problem in the said area; you need to walk from Purok 1 a good 30-minute

hike before you can get a gallon of water. But I was not deterred by these problems, I will try and if

somebody responded so be it.

The first meetings were a success almost all members attended and responded but when the

time arrives to consolidate no products were present. And I started losing hope, just when one farmer

approached me and asked for help to sell her monggo. I then approached our MO-Ms. Dawn Mantala to

assists them in test marketing. And another thing surprises me, some farmers were able to plant the first

batch of sili green that were given to them.

Since then, marketing of their products were done by them without big assistance from PASALI

staff. They are already learning to negotiate, weigh and sort their own products. They are also trying to

sell other products in the market such as bisol and banana. And from corn fields, you can now see high

value vegetables in their area such as red monggo, sili green and red hot.

Their story might not be called a perfect example because until now they still have lapses during

marketing but I know they are still continuing learning. The cluster leaders are planning to formalize their

PO through DOLE and elect their own set of officers so that they can also ask assistance from the

government. They plan to also process their red hot into ground chili. They are hoping that someday DTI

will be able to notice their efforts and products.

V. FINANCIAL ANALYSIS

A. Expenditures

Account Account Name ITD Actual Overall Budget Variance

Amount %

6151 Salaries

6,488,430.00

6,488,430.00

0.00 0%

6152 Employee Benefits

738,205.57

739,802.08

1,596.51 .21%

6153 Professional Fees

465,000.00

465,000.00

0.00 0%

6154 Office Expenses

528,061.24

519,571.61

(8,489.63) (1.63%)

6155 Occupancy Expenses

237,200.00

237,200.00

0.00 0%


6156 Insurance

11,025.50

11,025.50

0.00 0%

6158 Domestic Travel / Rep.

2,204,994.17

2,224,163.87

19,169.70 .86%

6159 Vehicle Expense

1,135,964.18

1,149,910.03

13,945.85 1.21%

6162 Project Materials

342,672.15

342,672.15

0.00 0%

6162-SO1 Project Materials

992,058.77

995,358.77

3,300.00 .33%

6162-SO2 Project Materials

281,505.56

281,505.56

0.00 0%

6163 Training Expenses

4,055,591.30

4,141,865.30

86,274.00 2.08%

6164 M&E Expenses

836,230.64

879,049.24

42,818.06 4.87%

6165 Other Expenses

12,025.00

11,725.00

(300.00) 2.66%

6169 Audit Fees

105,000.00

150,000.00

45,000.00 30%

TOTAL

18,433,964.08

18,637,279.11

203,315.03

B. Explanation on the variances in spending (BCR)

These are the final expenditures of Pasali Inception to Date, June 2012 to December 2014. As budget

projected, the Salaries (6151), Insurance (6156), Professional Fee (6153), Occupancy Expenses (6155) and Project

Materials (6162) & (6162-S02) have been spent with no variances. The remaining variance reflected in Employee

Benefits (6152) was due to the EOP budget of procurement officer which was forfeited by CRS while the negative

variance in Other Expenses (6165) was the unforeseen expense of the notarization of contract for the video

documentation of FARM project success stories. The Domestic Travel and Rep (6158) and Vehicle Expense (6159)

were not fully consumed because during the last field days (December 2014), MO & MELO focused on their

paperworks rather than going to the areas and as well as MAEFs did not conduct their last test marketing of coffee

because of some reasons. The variance reflected in Project Materials (6162-S01) was the excess of Dam

rehabilitation in Cadiz, Kalamansig, Sultan Kudarat. The biggest variance from Training Expenses (6163) was the

budgets allocated for the Test Marketing and Post Delivery Assessments of Rice, Coffee & vegetables. The

allocation for M&E Expenses were not spent in full as per budgeted because of some activities that were not

conducted such as FGDs and other tracking surveys.


ATTACHED IN EOP TERMINAL REPORT

A. Annexes (Hard copies)

1. Signed Quarterly Logmon Report ending December 2014

2. Cluster lists (AE Form T1.2)

3. Directory of Para-Extension Worker-Trainers

4. Directory of Agricultural Extension Worker (AEWs) trained on para-extension

5. Training Attendance Tracking Sheets -additional 2012-2014 TATS only , if not yet submitted to CRS

6. Signed certifications re: Number of potential infra users/users with access to new/repaired infra facility

7. Accomplished/filled-out HH survey forms (by municipality, by crop) in plastic boxes

8. Accomplished/filled-out data verification forms –

B. Databases (Electronic copies to be submitted/saved in a CD)

1. Data Status Tracking Sheet as of EOP

2. Farmer Registration database as of EOP

3. Cluster List database

4. Training Attendance Tracking Sheets

5. Baseline Rice Seed tracking database

6. Updated Seed Monitoring Database

7. Directory of SWG members

8. Directory of Para-Extension Worker-Trainers

9. Directory of Agricultural Extension Worker (AEWs) trained on para-extension

10. Summary List of AE plans

11. Mother AE plans -

12. Summary list and scanned sample of list of infra users/logbook page - per infra facility

13. Complete marketing database

14. List of clusters with engagements with large buyers

15. List of farmers participating in collective marketing

16. Directory of buyers, by type (refer to the Proframe for the market/buyer type)

17. List of farmer-loan borrowers, by MFI, by gender

18. HH survey databases -one excel file per focus product

D. Documents to be kept in the Partner NGO offices

1. Accomplished Farmer Registration Forms

2. Agro-enterprise plans

3. Training/Activity designs

4. NGO staff reports on farm visits/interviews/FGDs conducted

5. Infra folders (NGOs’ copies)

6. Signed Acknowledgement Receipts/Receiving Reports for distributed seeds and other material support

7. Signed Delivery/Receiving Receipts and Turn-over Certificates for infra projects /end