Getting Mindanao’s best vegetables to the consumer

Agribusiness entrepreneurs in Cagayan de Oro have set up the foundations for a cool chain system to ship vegetables to the Visayas and Luzon, while fruit industry leaders in Davao have long employed reefer vans and ships to get their produce to foreign markets.

It will take a few more years before such systems are widely available throughout the region, however. Meanwhile, a simple, low-tech alternative would be the use of "nestable" plastic crates to help maintain the quality of vegetables in transit.

These crates are designed to be stacked inside each other when empty, reducing the backhaul costs of empty cases. These are widely used now in Thailand and Taiwan, where the plastic crate business have evolved into a major industry.

GEM is working with Harbest company, the Postharvest Horticulture Training and Research Center (PHTRC) and selected private vegetable and fruit trading firms in conducting trials to test 100 plastic crates from Taiwan, in comparison with existing containers.

"We hope that based on successful results using these plastic crates, firms will support their local fabrication to bring down the cost of this type of container," says Menegay.

In addition, he says, using these plastic crates will be an initial step in the standardization of units for individual vegetables. There is already a standard wooden crate for tomatoes, but most other produce are shipped in sacks and other containers which can accommodate anywhere from 45 kilos to over 60 kilos — when perilously overstuffed.

"Standardization of weight, uniformity of size and ventilation to reduce damage to vegetables are strong reasons for shifting to nestable plastic crates," Menegay explains.

Other interim measures which will help preserve the quality of vegetables while in transit include the introduction of screened shipping container vans for better ventilation and the installation of commercial strength exhaust and ventilation fans aboard shipping vessels to improve air circulation in cargo holds.

Equally vital to the vegetable trade are the continuous improvements in farm-to-market road networks and maintenance of major highways for swift transport as well as more efficient port operations.

Concerned business support groups, including the island-wide Mindanao Business Council, are advocating for improved shipping policies and a more appropriate share of the infrastructure budget to bolster the region’s agribusiness sector.

Bridging the information gap

Lack of current market information is another significant problem for Mindanao producers and sellers of vegetables. "Visayas alone represents a huge market for Mindanao suppliers," said Menegay. "The buyers need to know where to look, however."

The GEM program has prepared a site profile of key vegetable producing areas in Mindanao which can be used as reference materials for buyers and investors who may want to take advantage of the region’s favorable typhoon-free climate and wide range of suitable production areas.

Together with the Bureau of Agricultural Statistics (BAS), GEM is also developing a price information system (PRIS) using market price information collected by BAS.

Under this system, price information collected at wholesale markets in cities throughout Luzon, Visayas and Mindanao will be transmitted three times a week through e-mail to a central processing entity which, in turn, will distribute it to fruit and vegetable producers, consolidators, shippers, commodity associations and other players in the trade on a paid subscription basis.

Consolidation is key

Also on the drawing board is a vegetable trading center which will be located in Cagayan de Oro City. An initiative of the private sector, public agencies and the local government, the center will have 70 stalls rented out to vegetable traders and an open "bagsakan" area. It is projected to be the transshipment center for produce coming from across Mindanao en route to Visayas and Luzon.

"Farmers who bring their produce to the bagsakan for consolidation can count on finding takers for their wares," said Jasmine Agbon, GEM area manager in Cagayan de Oro.

The challenges besetting Mindanao’s vegetable industry are being addressed through a growing number of partnerships between government agencies and the private sector.

Timely interventions by the private sector, in particular, can help spur the growth of this promising industry.

Commodity-based business support groups such as the Northern Mindanao Vegetable Producer Association and the Vegetable Industry Council of Southern Mindanao are using teamwork to consolidate their produce, gain access to updated technology and enter new markets.

Such organizations are also in a good position to lobby among local governments and line agencies for support for their respective sectors. They can also work in partnership with other trade associations, chambers of commerce, research institutions and donor agencies.

Inherent natural advantages, after all, can only go so far without the proper technology, shipping and transport systems, human resources and development policies needed to transform Mindanao into a true "vegetable basket." — GEM Program