Pono: Sustainable livelihood to help Pinoy farmers compete

CEBU, Philippines - Giving Filipino farmers sustainable livelihoods and eradicating the wrong perception that “farmers are poor” will help the sector catch up with the demanding requirements of the upcoming Asean integration.

This according to former Cebu Chamber of Commerce and Industry (CCCI) executive director Teresa Pono, who feels less convinced on the country’s readiness to compete in the borderless market in the Asean region once it integrates in 2015.

Pono, who currently holds a position at non-governmental organizations OURFood and SIGNAsia, said despite the Philippine economy being largely driven by the services sector, “a significant portion of it is actually dependent on farming.”

She said there are so much unexplored potentials in the farming sector, but could hardly be achieved because the youth seems to have mistakenly placed low regard on agriculture as a profession.

“And this is critical because we all know that the average age of Filipino farmers is 57 to 60 years old. We are running out of young blood that can help feed our people,” she said.

Pono, however, finds comfort on the fact that there are now a growing number of organizations working for projects that promote the quality, safety and volume of agricultural produce.

She said these organizations help ensure that farmers, especially the small-scale ones, are not left behind and could still compete.

FMO in Phl

In fact, this was the driving force behind yesterday’s launching of a project that hopes to develop a Fairtrade Marketing Organization (FMO) in the Philippines.

According to Rossitza Krueger of Fairtrade International, Fairtrade is an alternative approach to conventional trade and is based on a partnership between producers and consumers. Fairtrade offers producers a better deal and improved terms of trade.

“This allows them (producers or farmers) the opportunity to improve their lives and plan for their future. Fairtrade also offers consumers a powerful way to reduce poverty through their every day shopping,” said Krueger.

In essence, Fairtrade bridges the gap between consumers and producers, with focus on empowering farmers and uplifting their working and living conditions in the process, not just giving them charities.

Currently in the Philippines, Fairtrade is stimulating the market through awareness campaigns that aim to educate consumers on the benefits of choosing to buy products with a Fairtrade mark.

“The Fairtrade mark certifies that international Fairtrade standards have been met. The Fairtrade label offers a positive way to buy products in solidarity with those who produced them. Buying Fairtrade products helps producers struggling to improve their lives,” Krueger said.

The label is now available on thousands of products in more than 100 countries.

Pono admitted this will be a challenge as most Filipinos tend to consider costs when buying, but she believes educating them that buying the Fairtrade-marked products is a form of support to farmers will actually help.

But what if paying farmers a fairer price encourage more production and create oversupply problems?

Krueger said there is no evidence for this and, in fact, it is difficult to imagine how Fairtrade could have this affect. Fairtrade is a voluntary model of trade that is consumer or market led, she said.

“It is true Fairtrade includes prices designed to meet producers' sustainable costs of production. But because Fairtrade is market led it can only grow in line with market demand. Farmers only receive the Fairtrade minimum prices and premiums for produce where they have a buyer willing to pay for them,” explained Krueger.

“As there are already more produce than the market can support many producer groups continue to sell a lot, and in some cases most, of their produce to the conventional market,” she added.

Fairtrade certified producers use the additional income from Fairtrade to improve the quality of their lives and to invest in their businesses. Farmers also invest the Fairtrade premiums in crop diversification in order to escape from their dependence on a single crop as their primary source of income.

“Because Fairtrade certified producers often choose to spend their social premiums on projects such as improving local schools, health, water or sanitation projects, this means the benefits of Fairtrade can be shared more widely by the local community, not just the farmers themselves,” Krueger said. (FREEMAN)