NISARD decided to implement a number of projects concurrently that are
designed to provide the infrastructure and inputs required to
accelerate the uptake of organic agriculture.
The projects have not been designed to only incorporate the small
landholder and rural worker but to include all sectors of the Negros
agricultural community.
| Project 1: The
natural farming Method
to be implemented |
This project is designed for all sizes of farming operations.
| Project 2: The
Go Organic Franchise |
This project is designed specifically around activating the small landholder, which includes Agrarian Reform beneficiaries.
BUSINESS MODEL: Introduction:
The farmer franchise business model is based on the following facts:
- Small farm land holders find it
difficult to become a viable economic unit, especially when undertaking
mono-crop farming practices.
- Organic produce is now an established sector of the global food market, demand increasing by an average of 20% per annum.
- Certified organic produce commands a price increase of up to an average of 40% more than non-certified produce.
- Small farms suit organic produce, especially the typical small holder in the Philippines.
- The rural poverty problem in the Philippines can be addressed in part by organic smallholder farming.
- Organic farming addresses a number of environmental concerns about modern farming techniques.
- Organic farmers reduce their reliance on off-farm inputs, particularly fertiliser and chemical purchases.
BUSINESS MODEL: Description:
The small holders will pool their land for the purposes of making an
economic unit that brings with it an economy of scale in terms of
training, crop production, certification and monitoring.
Size of Pool: minimum 10 hectares of pooled land
The small holder groups will be organised in a similar structure to
successful micro-credit operators. They will grouped collectively to
enhance personal and group responsibility, they will be headed by a
group captain but are all severally liable for the groups performance
and hence for each individual member's performance. They will be given
training as a collective, operating the business model as one entity
and be certified as organic as part of a larger farmer collective - an
organic farmers association.
Size of the farmer collective: More than three but no more than 10 land holders.
The Go Organic Franchise, existing of pooled land and farmers united
collectively will undertake to house at least twenty head of cattle in
a commonly owned holding yard facility, on the pooled land. These
cattle will be fattened on feed grown by the Go Organic franchise
farmer, requiring 2.5 hectares of land to be set aside for cattle.
The franchisee will be provided with suitable finance to provide
infrastructure, in the form of a loan administered under the micro
credit system.
The cattle produce a volume of manures, which when processed
through vermicomposting will provide the basis of
organic soil conditioners. These soil conditioners will replace the
current purchase of fertilisers for crops grown on the pooled land and
the excess will be able to be sold.
The beef cattle are then sold when mature, and replaced.
The remaining 7.5 hectares of pooled land will be put to crops. The
crops can be the familiar crops of sugar and rice but diversity will be
encouraged, including short cycle vegetables and fruit trees. The crops
will be farmed organically, using the high-grade vermicast as the base
material to allow for the farm to be converted from non-organic to
certified organic in the shortest period.
The profit generated by the area under crops will depend on the type of crop chosen and its particular commodity value.
The franchise promoter, NISARD Foundation, will help determine the
market opportunity for various crops and encourage the Go Organic
franchisee to plant particular crops. The corporate arm of the
Foundation will undergo the marketing of the products, under a single
brand developed for the Go Organic franchise operators.
The NISARD Foundation and its corporate arm will operate an
agribusiness export processing zone, which is designed to value add as
much of the farm produce as is possible and to export certified organic
produce on behalf of the Go Organic franchise operators.
BUSINESS MODEL: Method of operation:- Smallholders collectively
enter a contract with each other, creating a POOL of landholders for
the purpose of entering into a GO Organics franchise. The designation of a
POOL captain is a necessary condition of the pooling contract.
- The land POOL enters into a contract
with NISARD Foundation to enter into the GO Organic franchise.
Underpinning the contract will be a DEED/COVENANT entered into between
the landholder and the Foundation that the Pool will exist for a
minimum of 10 years and will detail restrictions placed upon the land
to enable it to undergo conversion to certified organic land. The
object of the DEED/COVENANT is to achieve the status of certified
organic land under a Plan of Management that is agreed to by the
parties to the DEED/COVENANT. The purpose of the Plan of Management is
to ensure the proper management and protection of the Land POOL and to
achieve the stated objective.
- Upon entering the Franchise agreement
with NISARD Foundation the POOL land holder is provided with training
in organic farming methods, cattle handling, vermicomposting and
financial training regards credit obligations and general sound
financial planning.
-
After completing the initial training
program the Pooled landholders are provided with credit facilities to
build any infrastructure required and meet the establishment cost of
any crops. The initial establishment of crops will be guided by the
principles of converting a farm from non-organic to organic.
-
Further training is provided to the POOL landholders on organic farming, cattle care and vermicomposting.
- Vermicomposting is started as part of the training, prior to cattle arriving.
- When the NISARD Foundation is sure the Pooled Land Holder has completed the training the Pool will receive the cattle.
- The cattle are fattened and soil conditioner is produced, under further training and monitoring undertaken by the Foundation.
- Crops are grown during this time that
may be labeled “ in conversion” and sold as organic, but classified as
coming from a farm that is in conversion.
- The cattle are sold when at the desired weight and replaced.
- The organic soil conditioner is used on the remaining 7.5 hectares, with 70% sold to outsiders.
- The crops are grown, value added and sold through the Foundations corporate arm - NIZID.
- All income generated through cattle
sales, organic soil conditioners, vermicomposting and crops is pooled
for the Land POOL members and distributed accordingly to the individual
landowners share of land. Labour records are kept and labour costs paid
out of profits generated, before any distribution of net profits to
land owners. Labour is priced at a small premium above that of the
national farm labourers’ rate and will include all insurances and
income tax deductions.
Please note that NISARD's role in
the franchise arrangement is to provide training, affordable lines of
finance and statement of procedures to operate under, internal
guarantee systems for organic certification and general market support.
| Project 3: Beef Cattle - global contract growing system.
|
The rationale for this project is to help solve the problem of organic
farming requiring organic inputs and the current lack of organic
fertilisers available, which is currently inhibiting the practice of
organic farming.
The beef cattle will be provided to Negros farmers by Australian investors for contract fattening.
All farmers will have to undertake a strict training and preparation procedure, provided through contracting with NISARD.
The benefits of the project are that it provides an alternate farm
income through fattening and also provides the base ingredient to
produce large volumes of organic fertiliser, cattle manure.
The cattle manure is processed through a vermicast system and provides
the farmer with an on farm fertiliser factory. The farmer will be
encouraged to use the fertiliser on their own farm and will also
include a buy-back system for any excess production.
This project is currently underway with applications before relevant
Australian government authorities for approval to be marketed in
Australia. Training has been started with a core group of farmers.
| Project4: Processing Infrastructure |
NISARD through its corporate arm is currently applying, in conjunction
with its partner LGU, for a parcel of land to be approved as an Export
Processing Zone that focuses upon organic produce for Export.
| Project 5: Education and promotion of Organic farming |
NISARD held the first ORGANIX fair in Bacolod in July. This is part of the promotion and education strategy.
NISARD will have two branch offices in each capital city of Negros island to undertake education and set up model farms.
The education will focus on sustainable agriculture, farming techniques and market awareness.
NISARD will also prepare a educational package to promote organic
farming and the principles of sustainable agriculture to schools. This
is designed to inform our children that farming is a noble occupation
that has rewards.
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