ASSESSMENT OF THE REQUIREMENTS TO ENHANCE ORGANIC

AGRICULTURE IN THE PHILIPPINES

Research Leader: MA. EDEN S. PIADOZO, Ph.D.

University Professor
Dept. of Agricultural Economics
CEM, UP Los Baños

Project Staff: ALICIA R. QUICOY, M.Sc.

Research Assistant: ELMER C. SUñAZ

Implementing Agency:
Lead Agency: UPLB
Cooperating Agency: PCARRD
Project Sites: Regions I, IV, VII, X
Funding Agency:
FAO and PCARRD
 OBJECTIVES

General Objective:

 To assess the current status and

requirements for organic farming system and
to recommend appropriate measures to
enhance the development of organic
agriculture in the Philippines.
 OBJECTIVES

Specific Objectives:
1) To characterize the organic farming practices
adopted by farmers;
2) To determine the farmers’ technical and business
skills, the capacity to adopt the organic farming
standards including labeling and certification;
3) To assess the farmers’ level of awareness on
consumers’ preferences, markets and other
marketing activities;
4) To identify the opportunities, risks and constraints
faced by farmers in converting to organic
agriculture;
 OBJECTIVES

Specific Objectives:
5) To identify the perceived factors affecting the
adoption of organic farming practices;
6) To determine the direct and indirect costs and
benefits associated with the adoption of organic
farming; and
7) To recommend appropriate measures that will
improve organic farming enterprises and will
enhance the development of organic agriculture
industry in the Philippines.
 Significance of the Study

 understanding the constraints and risks faced

by farmers when they consider a decision on
conversion from conventional to organic
farming can aid concerned policymakers in
identifying the correct strategies for
propagating organic agriculture in the
country.
Study Areas

 Region 1- Ilocos Norte

 Region IV- Rizal and Quezon
 Region VII- Negros Oriental and Bohol
 Region XII- Bukidnon
Questions Asked of the Respondents
 Reason for conversion to organic agriculture,
organic farming practices they adopted;
 Organic farming practices adopted;
 The extent of adoption of accepted standards
in organic farming;
 Capacity to comply with standards including
labeling and certification;
 The factors that affect farmers adoption of
organic farming practices;
 Level of awareness on consumers’ preferences,
markets, prices, knowledge on how to negotiate,
and how to establish oneself as a reliable supplier
of organic products, and other marketing activities;
 Opportunities, risks and constraints farmers faced
in converting to organic agriculture; and
 Productivity and the costs and benefits associated
with the adoption of organic farming vis-à-vis
conventional farming; and
 Perception on the appropriate measures that will
improve organic farming enterprises and will
enhance the development of organic agriculture
industry in the Philippines.
Farmers define organic farming as the absence
or non-utilization of synthetic or chemical
fertilizers and pesticides.
Reasons for going into organic farming

A. Full adopters
 Reduction in cost
 Higher yield attained
 Improved soil fertility
B. In transition
 Reduction in cost
 Increase in yield
 Improvement in soil fertility
 Health benefits
 environmental impact of using organic inputs
Indirect benefits
 Impact on the environment
 there had been a change in the quality of their
soils. The amount of heat emitted by the soil
was also noticeably noted by these farmers as
they reported that they feel the coolness of the
earth with the continuous addition and use of
organic fertilizer.
 Health benefits
 REGION
INDICATOR/STAGE ALL

I IV VII X
NFI
Full organic H M M H L
In transition M H L L H
Conventional L L H M

Total Returns
Full organic H L H L L
In transition M H L M
Conventional L M M H H

Total Costs
Full organic H L M L L
In transition L H H M
Conventional M M L H H

Use of organic
Full organic H M L H M
In transition M H H H
Conventional L L M L L

Use of inorganic
Full organic M L H L M
In transition L M M L
Conventional H H L H H
Economic benefit
 1) Conventional farmers had the highest total
farm revenues but also incurred the highest
farm cost.
 2) full-organic farmers incurred the lowest
NFI, lowest revenues, as well as lowest farm
cost.
 3) transitional farmers incurred relatively
lower revenues than conventional farmers, as
well as in costs, resulting to having the
highest NFI
Opportunities
 There are GOs and NGOs supporting organic
agriculture.
 There are already companies producing organic fertilizer
and thus these are readily available in the market.
Moreover, with the support of GOs and NGOs, the
technology of producing organic fertilizers and pesticides
has already been developed and farmers can readily
prepare their own inputs in their own backyards without
necessarily buying them from the market. A lot of the
material inputs are also readily available in their area.
 There is already awareness about organic agriculture
 The increasing awareness about product safety for
certain sectors in the society
Strengths
 First, small backyard production is traditionally organic.
 Second, there are NGOs and GOs supporting organic
agriculture. The success of organic agriculture is largely
dependent in the LGU's support as revealed in this
study. Even the academe like UPLB, Xavier University,
DMMSU and research institutions like PCARRD and
SEARSOLIN are into the advocacy of organic agriculture
too.
 Third, the technology of producing organic fertilizers and
pesticides have already been developed and farmers
can readily prepare their own inputs in their own
backyards without necessarily buying them from the
market.
 Fourth, there is already an awareness about organic
agriculture.
Constraints
 The farmers’ lack of entrepreneurial skills.
 organic farmers very seldom keep records and
make farm plans.
 less interested in updating their knowledge and
skills on the latest trends in organic farming.
 Farmers seldom take the initiative in finding
markets for their produce.
 Weak in finding new ways of packaging their
produce, advertising, scheduling of placement of
order, delivery and planning of procurement
 Not risk takers
 ALL REGIONS
ENTREPRENEURIAL QUALITY Full Transition Conventional Total
n= 35 25 60 120

Keeps record 1.91 2.12 1.00 1.50

Makes farm
plans 2.17 2.44 1.72 2.00
Not discouraged by natural calamities 2.97 2.72 3.13 3.00
Not discouraged by mistakes/failures 3.40 3.00 3.27 3.25
Initiates farming practices 1.31 1.64 0.92 1.18
Package products (No=0 and Yes=1) 0.63 0.24 0.67 0.57
Product label/brand (No=0 and Yes=1) 0.23 0.04 0.12 0.14
Advertise
products 0.91 1.56 1.15 1.17
Plans
procurement 3.23 3.24 3.48 3.36
Takes initiative to market product 1.40 1.44 0.87 1.14
Uses available facilities around the farm 2.77 2.00 2.13 2.29
Makes regular/timely placement of order 2.17 2.04 2.03 2.08
Delivers products as scheduled 1.97 2.84 1.82 2.08
Collects receivables on time 3.11 3.44 2.82 3.03
Reads materials on organic farming/products 1.66 2.00 1.07 1.43
Attends seminars/workshops on organic farming 2.29 2.96 1.73 2.15
Sends staff/family members to trainings 1.23 0.64 0.92 0.95
Wins during price negotiations 1.43 1.64 0.95 1.23
TOTAL
SCORE 34.80 36.00 29.79 32.54
Constraints
2. The farmers’ limited knowledge of
certification which affects their adoption of
organic agriculture and hinders them from
tapping more developed markets for organic
products (18% knowledgeable of certification cost, 2%
on duration of processing, 15% on source)
 MAKAKABUS P20,500 in 2006.
 Other costs include inspection fee of P5000 per
day and application fee of P2000.
 If a number of concerns will be inspected then the
inspection fee will increase.
Constraints
3. The lack of sufficient training to carry on
organic farming or improved agricultural
practices especially on pest and disease
management, organic farming cropping
system, fertilizer/pesticides production and
application
 except those who have exposure to
committed organizations or those
magsasaka siyentistas who attend
trainings and act as resource persons for
fellow farmers.
Constraints

4. No identified markets for their organic

produce
 The insignificant difference in price between
organic and conventional product in the local
market.
 The instability of price and the lack of price
guarantee in the market
Constraints
5. Farmers have been heavily dependent on the
use of chemicals, that new chemical-free
technologies for them pose a higher risk in their
productivity. And they believe that only large
institutional vegetable producers have the
capacity and the need to produce organically
grown high-value vegetables and other crops.
6. Farmers’ interest in organic agriculture is fueled
by the high cost of inorganic inputs so once
prices of these inputs ease up then they may be
tempted to go back to conventional farming
unless they have the commitment to do so.
Constraint

6. Lack of capital
 Small scale farmers are faced with lack of capital
to carry on the day to day requirement of organic
farming especially payment for hired labor during
land preparation.
7. Migration of household members to towns and
cities in search of full-time/part-time jobs has a
negative impact on conversion to organics since it
requires high amount of labor.
Recommendations
 Capacity building
 Information dissemination
 market potentials, technologies, production
systems, and certification
 Market development
 identifying markets, packaging and giving brand
names to organic produce, pricing, and
distribution strategies
 Processing and value adding
 Provision of credit
 Academe/NGO/LGU linkage
Conclusion
 Organic agriculture offers a long term solution to make
small sized farms productive and sustainable.
 Small-scale farmers seem most successful when given
adequate training and assured of important requirements
such as land, seeds, and other inputs.
 This is especially true for farmer scientists who have
access to adequate resources, technological know-how
and exposure to organic agriculture.
 They have developed the skills in farming and learned to
innovate given the knowledge they have acquired.
 Among the more committed small scale farmers,
adherence to organic farming has become a way of life
 LGUs, extension agents and the university are potent
forces in disseminating organic agriculture.
THANK YOU VERY MUCH