BIBLIOGRAPHY TAD-O, MICHELLE T. APRIL,...

BIBLIOGRAPHY

TAD-O, MICHELLE T. APRIL, 2010. Assessment on the Coop-Member
Livelihood Partnership Program of the Benguet Traders Multipurpose Cooperative.
Benguet State University, La Trinidad, Benguet.

Adviser: Evangeline B. Cungihan, MSc.
ABSTRACT

This study was conducted to find out the following: demographic profile of the
clients/farmers, their purposes in availing the CMLPP, their perceptions on the CMLPP,
the contribution of the CMLPP to the clients, the awareness of the clients on the CMLPP
requirements and policies, and the problems encountered by the members in availing the
CMLPP and the cooperative in implementing the CMLPP.

This study was conducted in KM. 5, La Trinidad, Benguet on January 2010.
There were 60 respondents and all of them availed on the CMLPP.

Majority of the respondents were male and married, all of them were farmers and
have undergone formal education. Most of the respondents were in their middle age, and
had a household size of 5-10. Most of them availed on the CMLPP loan twice Their
[purpose in joining the program were the following: borrow money as capital in
vegetable production, to be assured of market outlet for their produce, and avail of the
trucking service of the cooperative.

The respondents perceived that it is easy to avail of the CMLPP. Further, they
also perceived that the program was efficiently implemented and it contributed to their

economic upliftment. They were able to increase their financial asset, improve their
house and bought more personal assets.

Majority of the respondents were aware of the requirements and policies of the
cooperative governing CMLPP. The CMLPP benefited the farmers who joined the
program and therefore it should be expanded to other areas so that more farmers would
be benefited. However, the cooperative should allocate a bigger fund to this program.

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TABLE OF CONTENTS

Page
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION

Rationale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1

Importance of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3

Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4

Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4

Scope and Delimitation of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
REVIEW OF LITERATURE

Marketing Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6

Joint Marketing and Production

Decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6

Sustainable Vegetable Production and

Marketing Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7

Marketing Options for Commercial

Vegetable Growers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5

Business and Market Plans: An Overview

With Consideration for Organic

Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8

Commercial Greenhouse Vegetable

Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9

The Philippine Vegetable Industry

Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
iii

Vegetable Marketing Policies in Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11

First National Vegetable Marketing

Summit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12

Nurturing Moldova’s Market for

Produce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13

Developing a Network of Safe

Vegetable Production and

Marketing Units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
METHODOLOGY

Locale and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16

Respondents of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16

Collection of Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16

Data Gathered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16

Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
RESULTS AND DISCUSSION

Profile of Respondents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17

Purpose in Availing CMLPP Loan

Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20

Perceptions of Farmers on the

Availment of CMLPP Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21

Perception about the Implementation

of CMLPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22

Perceive Economic Contribution and

Advantages of CMLPP

to the Farmers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23

Requirements in Availing CMLPP

Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24

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Page

Policies of the Cooperative on the

CMLPP Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25

Awareness of the Respondents on the

Duties and Responsibilities

of the Coordinator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26

Sources of Funds for the Payment

of CMLPP Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27

Market Outlet of the Cooperative for

the CMLPP Produce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28

Strategies of the Cooperative to

Increase the Number of

CMLPP Clients. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29

Strategies Used by the Cooperative

to Discipline the Borrowers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30

Problems Encountered by the Borrowers . . . . . . . . . . . . . . . . . . . . . . . . . . .
31

Problems Encountered by the Cooperative

in the Implementation of the CMLPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33

Suggestions of the Farmers to

the Cooperative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35

Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37

Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39
APPENDIX

A. Interview Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40

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INTRODUCTION

Rationale

The Benguet Traders Multipurpose Cooperative (BTMPC) was registered on
February 13, 2009 with the Cooperative Development Authority (CDA) in accordance
with the old cooperative code.

Record’s showed that the cooperative started its operation with initial build-up
share capital of Php.3,489,853.96 only as of January 3, 2009, contributed by the 631
registered members.

Operation services of BTMPC are savings and deposits, trucking, packing
materials, mutual benefit fund (MBF), credit for small traders who are victims of private
money lenders such as “bumbay”, local money lenders and banks charging high rates of
interest and lastly vegetable marketing program.

The newly added service of the cooperative is the Co-op Members Livelihood
Partnership Program (CMLPP) which is uniquely created to extend services to farmers.

At the inception of the program very few farmers availed of it because the
cooperative was very strict in screening clients. They only give the loan to farmers who
are recommended by their own coordinator. Besides, the cooperative did not yet have
concrete and clear policies relative to this program. It also lacks the necessary support
staff that can sacrifice to visit and monitor the different farms of borrowers.

At present the number of farmers who availed of this program increased and the
area covered was also expanded. It only started in Babalak, Bashoy, Kabayan Benguet.
At present it is expanded to Abucot, Eddet, Kabayan Benguet; Abat, Poblacion, Bokod
Benguet; and Palansa, Bila, Bokod Benguet. It was only when the cooperative extend its
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CMLPP operations to different sitio and barangays of Bokod and Kabayan when their
operations started to release millions of loans. The cooperative started to add the funds to
be able to provide the loans of the borrowers. The cooperative also assigned one farmer
coordinators per group of farmers to monitor the borrowers’ crops from planting to
harvesting, coordinate with the marketing representative to ensure that the farmers are
attended promptly, contact and assist farmers to sell their produced vegetables to the
cooperative, and monitor the day to day marketing activities. In some cases when the
farmers sell their produced crops outside the cooperative they will not be recommended
by the coordinator and they are banned to avail of this service.

At present, the cooperative is offering CMLPP loans with Php. 20,000 as the
maximum amount that can be availed for three times, payable in six months using their
crops as collateral. After three times of availing these loan it is expected that the farmers
already have capital build up (CBU) since 10% is deducted from the value of their crops
after every harvesting so that the farmer could accumulate his share capital to the
cooperative. This will be the collateral of the farmers after availing this service three
times.

In case of crop failure, the farmer needs to find alternatives and pay the loan
before availing again this said program.

In terms of loan repayment of farmers, the amounts borrowed plus interest are
being deducted totally from the sales of their crops. The amount left is given to the
farmers.

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The vegetable marketing program has two outlets in disposing the farmers’
products. These are the La Trinidad Trading Post Open and Nueva Viscaya Terminal
(NVAT) in Nueva Viscaya.

In the course of time, many members joined the cooperative. Membership was
opened to people from all walks of life from all over the province of Benguet and Baguio
City. As of July 31, 2009 there were already 789 members. Majority were small traders.
Together they contributed a paid-up share capital of Php. 3,852,710.76 which contributed
to the total asset of Php. 8,323,438.48 as of July 31, 2009.

The continuous growth of the cooperative speaks well of the focus, determined,
committed and being active Board of Directors and Officers and the Committees that had
been serving the cooperative as volunteers in the very start of the operations.

Importance of the Study

The information derived from this study would serve as a basis for the BTMPC to
improve their CMLPP operations, as well as to serve as a reference to other cooperatives
who would be interested to adopt the same program. The study would also serve as a way
for the members to recognize their duties and responsibilities as a part of the cooperative
especially with regard to loan payment. It can also serve as a source of information to
other students who wish to conduct similar studies of cooperatives rendering the same
services. Lastly, it can also serve as a guide to the committees, officers and management
staff of the BTMC to strengthen their cooperative operations for the better.

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Statement of the Problem
This study was conducted to look into the factors affecting vegetable marketing
program of the cooperative and come up with possible recommendations to improve the
program. To be more specific, this study targeted to answer the following questions:
1. What are the characteristics of CMLPP clients?
2. What are the purposes of the farmers in availing the CMLPP?
3. What are the perceptions of the clients on the CMLPP?
4. What are the contributions of the CMLPP to the clients?
5. Are the clients aware of the CMLPP requirements and policies?
6. What are the problems encountered by the clients and the cooperative in
relation to the CMLPP?

Objectives of the Study

The objectives of the study were the following:

1. to determine the demographic profile of the clients/farmers,

2. to determine the purposes of the farmers in availing the CMLPP,

3. to find out the perceptions of the clients on the CMLPP,

4. to determine the contributions of the CMLPP to the clients/farmers,

5. to find out the awareness of the clients on the CMLPP requirements and
policies, and

6. to find out the problems encountered by the clients/farmers and the cooperative
in relation to the CMLPP.

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Scope and Delimitation of the Study

This study would focus its scope on the CMLPP operations of Benguet Traders
Multi Purpose Cooperative.
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REVIEW OF LITERATURE

Marketing Cooperative

Rowell and Woods (2005), noted that a marketing cooperative is just one form of
indirect marketing in which the producer deals with an intermediary rather than the final
consumer. Although most forms of indirect marketing require less time of individual
growers, they usually demand more product uniformity, quality, and postharvest care.

They further stated that grower-owned cooperatives or marketing associations are
able to assemble truckloads of produce required by large customers, which would not be
possible for small growers acting individually. Formally organized cooperatives may also
provide technical assistance to growers and help secure seeds, boxes, and other needed
supplies. In some cases, specialized equipment is shared by growers.

Cooperatives usually own and operate facilities with some combination of
grading, packing, cooling, and storage equipment for their members. Members typically
employ a manager to oversee the cooperative’s daily operations. Several small growers’
cooperatives with grading, packing, and cooling facilities have formed recently in
Kentucky. They offer good marketing opportunities for new growers in counties near the
co-op facilities (Rowell and Woods, 2005).

Joint Marketing and Production Decisions

Two major obstacles to success in vegetable production are finding markets and
establishing prices. Some producers, attracted by success stories about a particular crop,
have carefully researched and grown it. Unfortunately, they never bothered to determine
where, to whom, and at what price their products would be sold.
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Good marketing plans start with the customer and work backwards to production.
Potential growers should first determine exactly what buyers want, how they want it, and
when they want it. Then, they should determine how these crops should be grown. Even
selecting varieties and determining planting times are basic marketing decisions (Rowell
and Woods, 2005).
Sustainable Vegetable Production and Marketing Project
Hazzard (2009) found out in her study that vegetable farming in Massachusetts
and New England has remained vital in recent decades through constant and creative
change: more direct marketing, diversification, selection of high value crops, and
adoption of new technologies.

Sustainable vegetable production requires new technical solutions to problems of
cropping systems and rotations, crop nutrition, soil health, water use and conservation,
energy sources and needs, and pest management. As Massachusetts undergoes cultural,
economic and climactic changes, both new and established growers must learn to use
practices that are economically, environmentally and socially sustainable, and to adapt
cropping systems to new market opportunities in Massachusetts. The Sustainable
Vegetable Production and Marketing project will undertake research and extension to
address key problems and opportunities facing the industry and the public (Hazzard,
2009).

Resources and information for growing vegetables developed by the Sustainable
Vegetable Production and Marketing team has resulted in growers adopting more
environmentally sustainable practices. As a result of our efforts, growers have expanded
their use of effective biological controls and learned ways to improve crop health while
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using fewer pesticides, or pesticides with lower environmental and health impacts.
Growers have a better understanding of the principles of Integrated Pest Management and
increasingly use IPM tools as part of their routine practices (Hazzard, 2009).
Business and Market Plans: An Overview
With Consideration for
Organic Operations

Tourte and Gaskell (2009) noted that business and market plans are essential
foundational tools for farm businesses. These plans can be structured as individual
documents or combined to form one comprehensive report. Business and market plans
can be used as powerful tools to monitor and evaluate a business over time, modify
decisions and operations when necessary and appropriate, and plan for future
contingencies. The sales and marketing section of a farm business plan is arguably the
most important aspect of a business in total. It encompasses not only the physical act of
selling products and/or services, but also identifying, developing and retaining customers.
Consumers currently drive the farm marketplace, signaling producers and buyers as to
their preferences through purchasing patterns and habits. It is important that farm owners
and managers carefully evaluate the marketplace as noted above, and then strategically
target their preferred market segments. An effort should be made to provide projections
of anticipated yields – in different size classes if necessary – and anticipated unit costs
and sales prices during distinct production periods. These figures can then be
consolidated into overall average sales prices and unit costs based on anticipated
volumes. In other words, it is vital that farm businesses identify and select one or more
potentially valuable market segments, understand consumers within each segment, and
anticipate and plan products and services accordingly.
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Commercial Greenhouse Vegetable
Production

Mirza (2001), noted that the greenhouse vegetable production as a potential
business opportunity. The key management issues associated with producing and
marketing greenhouse vegetables. This overview is not intended to be a substitute for
individuals making their own thorough assessment of all the key factors that would
influence the success of their individual operation.

Individuals who are thinking about establishing a greenhouse vegetable enterprise
need to determine which marketing methods will provide the best fit for their operation.
New entrants to the greenhouse vegetable industry also need to carefully assess the
markets for each vegetable crop they might produce in order to determine if there is room
for more production.

Marketing greenhouse vegetables requires time for researching potential
customers and different products, selecting target markets, and developing marketing
strategies to gain exposure to and acceptance from consumers (Mirza, 2001).
New entrants to greenhouse vegetable production must be prepared to study both
existing operations and published material to gain information to help them establish their
enterprise and develop a production process. Growers also need to do their own on-site
research to determine the growing techniques that give them the best results (Mirza,
2001).
Greenhouse vegetable production methods are best learned by working with an
experienced greenhouse operator. Only through this type of hands-on experience can new
entrants gain the skills required to manage nutrient levels, insects and diseases, and the
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greenhouse environment. The following are the key resource requirements for a
greenhouse vegetable operation:
Site location - The following factors should be considered in the selection for a
greenhouse enterprise; proximity to markets, slope of the land and exposure to the sun,
access to adequate amounts of good quality water, access to utilities, access to a main
transportation corridor, access to labor, room for future expansion, zoning requirements
or limitations, potential environmental hazards such as, industrial pollution and
contaminated water (Mirza, 2001).

The Philippine Vegetable Industry Situation

Aquino (2004) stated that the Philippine vegetable industry has been ill for so
many years now but it was only in year 2002 that the pain has been felt. From production
to marketing, the Philippine vegetable industry is infected with a complex strain of
technological and economic virus. Lacking strength and vigor due to the further
weakening of its immunity, the Philippine vegetable industry now finds itself highly
vulnerable and susceptible to the attack of the virulent imported vegetables.

Furthermore, Aquino mentioned that the Cordillera region is dependent on the
vegetable industry. In fact, it is a major contributor in CAR’s (Cordillera Administrative
Region) gross regional domestic product. Reports bare that when pests affected
Benguet’s vegetable industry in 2000, economists noted that the gross regional domestic
product (GRDP) of the Cordillera in that year dropped from 16.1 percent to a mere two
percent.

As Leon Dacanay, assistant regional director of the National Economic
Development Authority (NEDA)-CAR, noted, this pattern suggested that Benguet’s
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vegetable industry had “surprising effects” on the regions growth. Dacanay said the
impact of the vegetable market’s decline in 2000 and 2001 on those year’s GRDP
indicated “how infinitely important the industry is to the Cordillera economy.”

Vegetable Marketing Policies in Japan

According to Ito and Dyck (2002), Japan’s policies in the vegetable sector
support producers’ incomes while keeping market prices stable. If market prices for
vegetables fall below a historical average price, farmers receive compensation for most of
the price decline. In return, farmers are expected not to exceed target planting areas.
Government subsidies are available for farmers to divert land out of rice production and
into vegetables, and farmers raising vegetables in greenhouses benefit from subsidized
insurance premiums. Border measures and quality differences make Japan’s vegetable
prices high by international standards. At the border, the most important factor has been
Japan’s phytosanitary rules, which block imports of some important fresh vegetables.

Japan’s vegetable production includes almost all the vegetables commonly used
in North America and Europe, as well as Asian vegetables. Vegetable production has
been one of the dynamic sectors of Japan’s agriculture, and is one of the few sectors that
support widespread full-time farming. As a source of aggregate Japanese farm income,
vegetable production is as important as rice or livestock production (Ito and Dyck, 2002).

Japan’s national and prefectural (state) governments are highly interested in
maintaining vegetable production. At the national level, subsidies are given to increase
efficiency in production and marketing. Subsidies are available for construction of
facilities and for the acquisition of machinery and technologies. Typically, sorting,
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packing, and distribution of vegetables are handled by local farm cooperatives, which
receive some of the subsidies (Ito and Dyck, 2002).

Goals of the subsidies include a) development of certain regions as vegetable
production areas, b) development of large-scale production areas consisting of two or
more villages, c) development of new production areas especially in upland fields, d)
promotion of greenhouse vegetable production, e) supply of high-quality seeds and
seedlings (Ito and Dyck, 2002).

First National Vegetable Marketing Summit

Bob (2009) reported that the First National Vegetable Marketing Summit held in
Mindanao, focused on enhancing coordination between production and marketing in the
vegetable industry to support vegetable production in the country. This summit was
spearheaded by the Vegetable Industry Council of Southern Mindanao, headed by Ray
Acain, in partnership with the Department of Agriculture, USAID’s Growth with Equity
in Mindanao (GEM).
In his report he quoted the statement of Ray Acain that the production and
marketing of vegetables should go hand in hand. The role of small –scale growers was
also tackled in this summit because they are the ones who will benefit from greater
familiarity with market requirements. Knowing buyers’ needs in advance is crucial for
timing farm production, consolidating harvests with other growers as needed, negotiating
better farm gate prices, and establishing one self in institutional markets.

Inter-regional trade in vegetables and other agricultural commodities has
expanded in recent years. This is partly due to the development of transport and logistics
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systems, including the establishment of a roll-on, roll-off port network, as well as the use
of improved farming and post-harvest technologies.

By consolidating their harvests, NORMIN Veggies and its affiliate growers were
able, in 2008, to ship an average of 50 metric tons of various tropical and semi-temperate
vegetables and other produce per week to other parts of the country.

The 132-member VICSMIN and 180-member NORMIN Veggies, with support
from the DA and the GEM Program, have led efforts to introduce best production
practices among vegetable farmers in Mindanao to increase their competitiveness in local
and foreign markets (Bob, 2009).

Nurturing Moldova’s Market for Produce

According to USAID (2006), Moldova has no shortage of fresh fruits and vegetables,
but turning a profit on these commodities often proves to be a challenge.

The legacy of the Soviet state-run economy included a lack of essential expertise in
marketing and maximizing profits, leaving many of the newly-privatized companies without the
means to access new markets and improves efficiency. With USAID’s support, however, one
Moldovan company is closer to success. Established in 2000, Vindex-Agro LLC is a midsize fruit
and vegetable production and marketing company. In order to increase its market share, Vindex-
Agro continuously sought ways to improve its production capacity and marketing ability. After
the company purchased irrigation equipment, it began growing vegetables on a 20 hectare (49
acre) plot. As a result of rising production volumes and financial revenue, Vindex-Agro’s
management decided to enlarge the area. Given the lack of local expertise and access to capital,
the company turned to USAID to realize its objectives.

Vindex-Agro applied for a USAID matching grant to install plastic tunnels and drip
irrigation for vegetable production. Two USAID volunteers also came to train Vindex-Agro staff
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in marketing principles and production practices, such as brand promotion, packaging and
labeling, harvesting and post-harvesting techniques, irrigation, and modern vegetable planting. As
a result, Vindex-Agro improved the output quantity and quality of its products, doubling sales and
adding an additional line of supermarkets to its distributors (USAID, 2006).

Developing a Network of Safe Vegetable
Production and Marketing Units

Moustier et al, (2002), in their research of safe vegetable networking, reported
that, the “safe vegetable” production and distribution groups in the city are not yet very
familiar with each other. These groups are not familiar with the demand of the buyers and
the buyers are not familiar with the capacity of the groups. Meeting each other and
cooperating to increase vegetable selling quantities and diversity in the types of products
is necessary. At the same time, they receive support through the operations of the
Alliance of Production and Distribution Cooperatives of Hanoi province, as one of its
mandates is to give support to safe vegetable groups. The research group organized three
workshops in 2008 to help the groups to get to know and understand each other. At one
meeting, they discussed how they built their seasonal cropping and marketing plan. At
another meeting, representatives of producers met with the buyers (retailers, canteen
operators). The research group also provided the traders with documents regarding the
production and distribution groups, along with information on the supplying capacity of
those groups and the buying capacity of retailers. A website has been designed with
information on the groups. The primary results are as follows: some groups have
developed new links with other groups to increase the diversity of the supply to their
buyers and sell more stable quantities. Some groups also found new buyers and some
new contracts have been signed.
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Moustier et al, (2002), noted regarding the problems of marketing presented by
Hoai Duc farmers, he concluded that they are typical of all innovating farmers, as they
are presently in competition with “safe vegetable” producers which did not set internal
control systems. In this situation, he advised the leaders of the group need to make more
communication on the specific characteristics of their products. Faced with the problem
of lack of diversity of vegetables, they should network with other groups; finally, there
should be a group of members of the group specifically in charge of marketing issues.
Relations with different customers should be developed in a more continuous way as it
seems that as soon the groups face a difficulty to answer buyers’ requirements, they
change and try with another one.

The guidelines developed on good trading practices have proven useful for
farmers, group leaders, as well as the administration staff in charge of support to farmers
and traders. Hence we recommend that similar trainings are organized in other locations.
The guidelines can also be easily adapted for other products (Moustier et al., 2002).

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
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METHODOLOGY

Locale and Time of the Study

The study was conducted at the Benguet Traders Multi Purpose Cooperative,
Km.5 Pico, La Trinidad, Benguet, on December 2009 to January 2010.

Respondents of the Study

The respondents of the study were the manager, coordinators, and recipients of
CMLPP.

Collection of Data

Survey questionnaire was used to gather necessary data. The questionnaires were
personally administered to the respondents by the researcher. At the same time interview
was done to gather additional information and validate answers.

Data Gathered

The data gathered were the CMLPP policies of the cooperative, the strategies /
methods employed by the cooperative, advantages / disadvantages of the program to the
recipients and the problems encountered by the recipients and the cooperative.

Data Analysis
All gathered data was classified, tabulated, analyzed and interpreted in accordance
with the objectives and presented using frequency counts, averages and percentage.

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
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RESULTS AND DISCUSSION

Profile of Respondents

Table 1 shows the background information of the respondents in terms of age,
civil status, household size, sex, location of farm, educational attainment, position in the
cooperative and number of times of availing CMLPP since it started.

Age. Out of 60 respondents, only 10 % were within the age bracket of above 50
years old, 25 % were within 41-50 years old, 32 % within 31 to 40 years old and 33%
were within 21 to 30 years old. The study shows that majority of the respondents are in
their middle ages.

Civil status. Majority (74 %) of the respondents was married and 26 % was single.
Results imply that most members, officers, staffs, coordinators and election officer of the
cooperative are married.

Household size. In terms of household size, majority (52 %) had a household size
of around 6-10, 45 % had 1-5, and 3 % had more than 10 members, the numbers that
characterize a typical farming household.

Sex. Majority (62 %) of the respondents were male and 38 % were female. The
result implies that women are also active in farming activities as well as involved in
organizations related to farming. They are also empowered like the male. This also
implies that majority of the members; officers, staffs, coordinators and election officers
of the cooperative were males.

Location of farm. About 32% of the respondents were from Babalak, Bashoy
Kabayan Benguet, 22 % from Abucat, Eddet Kabayan Benguet, 16.67% from Abat,
Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
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18
Poblacion, Bokod Benguet, 15 % each from Libeng, Bashoy, Kabayan Benguet and
Palansa, Bila, Bokod Benguet.

Educational attainment. The table shows that 42 % of the respondents have gone
to elementary, 34 % have gone to high school, 18.% had finished college and 3 %
finished vocational. The study shows that the respondents had attended formal education,
as a plus factor in any association and sere educated enough to understand policies and
regulations.

Position in the cooperative. Majority (87 %) of the respondents are members, 7 %
for the coordinator, 3 % are management staff and both officers and election officer is 2
%. The result implies that most of the respondents were farmers who need additional
capital.

Number of times the respondents availed CMLPP. The finding shows that 45 %
availed of this program 2 times, 38 % availed once, and 7 % availed 3 times. Many of the
respondents just joined the cooperative thus they had just availed of the program.

Table 1. Profile of the respondents
PARTICULAR
FREQUENCY
PERCENTAGE
Age

Above 51
6
10
41 – 50
15
25
31 – 40
19
32
21 – 30
20
33
TOTAL
60
100

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
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Table 1 continued …
PARTICULAR
FREQUENCY
PERCENTAGE
Civil Status

Single
16
27
Married
44
73
TOTAL
60
100
Household size

1 – 5
31
52
6 – 10
27
45
More than 10
2
3
TOTAL
60
100
Sex

Female
23
38
Male
37
62
TOTAL
60
100
Location of farm

Babalak, Bashoy, Kabayan Benguet
19
32
Abat, Poblacion, Bokod Benguet
10
16
Libeng, Bashoy, Kabayan Benguet
9
15
Palansa, Bila, Bokod Benguet
9
15
TOTAL
60
100
Educational attainment

Elementary
25
42
Secondary
22
37
College
11
18
Vocational
2
3
TOTAL
60
100

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
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Table 1 continued …

PARTICULAR
FREQUENCY
PERCENTAGE
Position in the cooperative

BOD

1
2
Management Staff
2
3
Coordinator
4
6
Members
52
87
Committee member
1
2
TOTAL
60
100
Number of times availed CMLPP

1 time
23
38
2 times
27
45
3 times
10
17
TOTAL
60
100

Purpose in Availing CMLPP
Loan Program

Table 2 shows the respondents purposes in availing CMLPP loan. Since CMLPP
is intended for farmers, majority (82 %) of the respondents joined the CMLPP to borrow
for capital in vegetable production, 53 % joined so as to be assured of market outlets,
35% joined CMLPP for convenience in selling their products or crops produced, 27 %
joined so as to avail of other services since the cooperative also go into trucking business
and to help others (co – members) as pointed by 3%, these are members who have pure
and helpful hearts. The result shows that the respondents had varied purpose in availing

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
Traders Multipurpose Cooperative / Michelle T. Tad-o. 2010

21
the CMLPP loan but majority joined the program because of the loan and marketing of
their products.

Perception of Farmers on the
Availment of CMLPP Loan

Table 3 shows the perception of the farmers regarding the availment of CMLPP
loan. Majority (87%) said that it is not difficult to avail but the 13% said otherwise. The
easy availment of CMLPP loan is attributed to the clear and specific policies regarding
the process of availing the loans. The factor of having a coordinator also aids in the faster
application and release of CMLPP loans.

Table 2. Purpose in availing CMLPP loan

PURPOSE
FREQUENCY
PERCENTAGE
Assured of market outlets
32
53
Have capital in vegetable production
49
82
Convenience in selling the product produce
21
35
Avail of other services such as trucking
16
27
To help others (co – members)
2
3
*Multiple responses

Table 3. Perception of the respondents if CMLPP loan is difficult to avail
PARTICULA RS FREQUENCY PERCENTAGE
It is not difficult to avail

52

87
It is difficult to avail

8

13

TOTAL

60

100
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Perception About the Implementation
of CMLPP

Table 4 shows that majority (82%) of the respondents perceived that the program
was efficiently implemented. Eleven respondents or 18% responded otherwise and
pointed to the following reasons: long process of application by 12%, late release of net
sales or profits by 5%, and lack of monitoring or follow – up services by 2%. The result
implies that although majority of the members answers are satisfactory on the efficiency
of the operation, some member respondents were not satisfied which reflects on the
cooperative to improve their quality of service to the borrowers.

Table 4. Perception of respondents on the implementation of the CMLPP
PARTICULAR
FREQUENCY
PERCENTAGE
Response on the Efficiency

Efficiently implemented
49
82
Not efficiently implemented
11
18
TOTAL
60
100
Reasons for saying not efficient

Long process of application
7
64
Late release of net sales or profits
3
27
Lack of monitoring or follow – up of services
1
9
TOTAL
11
100

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
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Perceived Economic Contribution and
Advantages of CMLPP to the Farmers

Table 5 shows that CMLPP improved majority (95%) of the respondents’ life.
Sixty percent mentioned that when they joined the CMLPP their income increased, 43%
bought some lifetime personal belongings, and 33% increased their asset, and 17 %
improved their house. Thus, this implies that CMLPP is a great help to the respondents
and it served as a path of comfortable living specially if it would be maintained properly.

In terms of the advantages of CMLPP to the members, majority (95 %) of the
respondents mentioned that it helped the borrowers who needs immediate capital or
respondents who has insufficient capital. Sixty eight percent said that it is advantageous
to them because they receive the payment of their product immediately, 67 % said they
are assured of market outlet, 65 % of farmers afford to buy inputs, and 48% said price of
their produce is stable. The result implies that the CMLPP operations of the cooperative
have great advantages for the members. It made the process easier from planting to
harvesting of the crops and even in terms of marketing.

While there are advantages of the CMLPP to the farmers, some farmers (15%)
were affected negatively. Because they were not able to pay their loan, their indebtedness
increased due to the fines/surcharge.

Table 5. Perceptions on the contribution and advantages of CMLPP to the respondents
PARTICULAR
FREQUENCY
PERCENTAGE
Did it Contribute to your economic Condition?

It did not contribute
3
5
It contributed
57
95
TOTAL
60
100
Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
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24
Table 5 continued …
PARTICULAR
FREQUENCY
PERCENTAGE
Economic Contributions

Improved house
10
17
Improved asset
20
33
Bought personal belongings
26
43
TOTAL
11
100
Advantages to the Members

Sure market
40
67
Stable price of produce
29
48
Payment is received immediately
41
68
Farmers afford to buy inputs

39
65
Helped the borrower who needs immediate
57
95
capital or no sufficient capital

Disadvantage to the Members

It resulted to increase in debt
9
15
*multiple response

Requirements in Availing CMLPP Loan

Table 6 shows the basic requirements in availing CMLPP. Requirements needed
in availing CMLPP loans include the membership in the cooperative as mentioned by
97%. The member has to pay a membership fee to P200.00. The borrower must have a
minimum share capital of P1,000.00 as pointed out by 93%, attended the pre-
membership education seminar (PMES) by 95%, the area of operation or farm of the
borrower must be within Baguio and Benguet by 93%, collaterals of the farmer, which is

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
Traders Multipurpose Cooperative / Michelle T. Tad-o. 2010

25
Table 6. Requirements in availing CMLPP loan
PARTICULAR
FREQUENCY
PERCENTAGE
Membership in the cooperative
55
97
Paid the minimum shared capital
56
93
Attended the PMES
57
93
Within the area of operation
56
95
Collaterals
37
93
No existing loans or paid the previous loan
19
32
Mutual Benefit Fund (MBF)
36
60
*Multiple response

their crop by 62%, no existing loans with the cooperative by 32%, and contribute to the
mutual benefit fund (MBF) of P200 by 60%.

The result shows that some of the farmers were not aware or knowledgeable on
some of the requirement in availing the CMLPP. Almost all of them were aware that
before availing the CMLPP the borrower must be a member, paid the minimum share
capital, attended the PMES and operating within Baguio and Benguet. Many were not
aware about the collateral, other must be paid and the mutual benefit fund.

Policies of the Cooperative on the
CMLPP Loan

Table 7 shows the policies of the cooperative on the implementation of the
CMLPP. The result shows that almost all the members (97%) mentioned that it is a policy
of the cooperative that the farmers must sell their produce to them. Ninety seven percent
are aware that their produce serves as their collateral to the CMLPP loan. Ninety three

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
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26
Table 7. Policies of the Cooperative on the CMLPP
POLICIES
FREQUENCY PERCENTAGE
The cooperative will be the one to sell the products
58
97

The members’ collateral is their vegetable
58
97
production

Farmers who sold their products outside will
56
93
Not be granted loan
*multiple response

percent mentioned that the farmers who sold their products outside the cooperative will
not be granted another loan by the cooperative.

Awareness of the Respondents on the
Duties and Responsibilities
of the Coordinator

Table 8 shows that majority of the farmers who availed of the CMLPP loan were
aware of the duties and responsibilities of the coordinator. The duties and responsibilities
of the coordinator mentioned by the respondents were as follows: monitor the farmers’
vegetable inputs from planting to harvesting by 97%, recommend members who need or
deserve to avail of the CMLPP loan by 95%, and make report to the cooperative on the
activities of the farmer from planting to marketing by 97%. This finding implies that the
CMLPP loan borrowers are aware on the duties and responsibilities of their respective
coordinator. This is advantageous to the coordinator because if the farmers are aware of
what he is doing then they would cooperate with him or her by providing the necessary
information that he/she needs to make report to the cooperative.

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
Traders Multipurpose Cooperative / Michelle T. Tad-o. 2010

27
Table 8. Duties and responsibilities of the coordinator
DUTIES AND RESPONSIBILITIES
FREQUENCY PERCENTAGE
Monitor the farmers’ vegetable inputs from

planting to harvesting

58
97

Recommend the members who need or

deserve loans

57
95

Made report on cooperative from planting

to marketing

58
97

*multiple response

Sources of Fund for Repayment of
CMLPP Loan

Table 9 presents the sources of fund where the farmers, under the CMLPP, get the
fund for paying the loan. Almost all of the respondents (97%) get their payment from the
sale of the crops they produce under the CMLPP itself. Other sources included sales or
profit from business (8%), borrowed money from others (15%), personal savings (25%),
and salaries (2%). This finding shows that aside from the income in their crops produced
under the project some farmers still get money from other sources to pay their CMLPP
loan. This implies that the income derived from the project is not enough to settle their
loan. However, this case is not true to all the CMLPP borrowers. Perhaps some of them
where affected by calamities so they were not able to harvest much from their farm thus,
they need to seek money from other sources.

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
Traders Multipurpose Cooperative / Michelle T. Tad-o. 2010

28
Market Outlet of the Cooperative for
the CMLPP Produce

Table 10 presents the market outlet of the cooperative for the vegetables produce
by the farmers under the CMLPP. These markets were La Trinidad Vegetable Trading
Post as mentioned by 97% of the respondents and the Nueva Viscaya Agricultural
Terminal (NVAT) as pointed out by 20%. Twenty percent of the respondents said that the
cooperative is selling to other cooperatives while 17% mentioned the Baguio City Public
Market.

Table 9. Sources of fund for CMLPP loan repayment

SOURCES OF FUND
FREQUENCY
PERCENTAGE
Sales or profit from business
5
8
Borrowed money from others
9
15
Personal savings
15
25
Sales or profit from crops
58
97
Salaries
1
2
*multiple response

Table 10. Market outlet of the cooperative for the CMLPP produce
MARKET OUTLET
FREQUENCY
PERCENTAGE
La Trinidad Vegetable Trading Post
58
97
Nueva Viscaya Agricultural Terminal (NVAT)
12
20
Other Cooperatives
2
3
Baguio City (Market)
2
3
*multiple response
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29
Strategies of the Cooperative to Increase
the Number of CMLPP Clients

Table 11 presents the strategies employed by the cooperative to increase the
number of farmers availing the CMLPP loan. These are the actual approaches observed
by the respondents that the cooperative is using. These are the following: conduct of
seminar and meeting by 98%, conducting financial counseling by 92%, continuous
education and training of farmers by 93%, promotions and promo raffle draws by 95%,
and accommodating the needs of farmers by 52%.

This finding shows that the cooperative exerts effort in helping the farmers to
budget their funds properly through the financial counseling and seminars and meetings.
The cooperative also assists the farmers to increase their income by improving their
production. This is accomplished through the education and training and accommodating
the needs of the farmers. In this way the farmers would be encouraged to join the
CMLPP.

Table 11. Strategies used by the cooperative to increase the number of CMLPP clients
STRATEGIES
FREQUENCY
PERCENTAGE
Conduct seminar and meetings
59
98
Conducting financial counseling
55
92
Ensure continuous education and training
56
93
Promotions and promo raffle draws
57
95
Accommodating the needs of farmers
31
52
*multiple response

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
Traders Multipurpose Cooperative / Michelle T. Tad-o. 2010

30
Strategies Used by the Cooperative to
Discipline the Borrowers

Table 12 shows the strategies or methods employed by the cooperative to
discipline the CMLPP loan borrowers. Ninety seven percent of the respondents
mentioned that the cooperative requires each borrower to set aside at least ten percent of
their gross income as capital build-up. This is automatically deducted by the cooperative
from the value of the product sold by the farmer to the cooperative. In this way the farmer
is forced to save. The farmer could use this share capital to borrow from the other loan
windows of the cooperative. One respondent said that the cooperative give them only one
chance to avail the loan. If he fails to pay the loan he cannot borrow anymore. Another
disciplinary action that the cooperative imposed on their borrower as mentioned by all the
respondents is not giving loan to members who sell their products outside the
cooperative. This was also mentioned earlier as one of the requirements for availing the
CMLPP loan.

Table 12. Strategies used by the cooperative to discipline the borrowers of CMLPP loan
STRATEGIES
FREQUENCY
PERCENTAGE
Require farmer to set aside not less than 10% of

their gross income as CBU
58
97

Discipline farmers through giving them only

one chance availing the services
1
2

Not giving loan to members who sell their

products outside the cooperative

60
100
*multiple response

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Problems Encountered by the Borrowers

Table 13 presents the problems of the borrowers before availing the loan,
problems encountered during the processing of the loan, and problems encountered after
availing of the loan.

Before availing of the loan. Ninety three percent said they encountered
insufficient capital, and 30% for high interest rate in availing loans in other lending
agencies. The finding shows that majority of the farmers joined the CMLPP because they
want to loan for their capital.

During the processing the loan. The problems encountered by the borrowers
during the processing of the loan were as follows: late release of loan by 45%, long time
of processing of loan application by 12%, insufficient document to use in availing the
loan by 17%, not active coordinator by 2%, lack of instruction on the documents needed
by 12%, lack of fund for release so they have to wait for a week or more by 43%. This
finding shows that late release of loan by the cooperative was due to lack of fund. This is
a problem to the borrower because they have to postpone buying the inputs they needed
in their farm.

After availing the loan. Their problems encountered after availing the loan were
as follows: natural calamities (90%), unstable price of vegetables (85%), pest and
diseases (43%), insufficient sales to pay the loan (25%), cannot pay loan (23%),
delinquency in paying their loan (6%), business failure because no monitoring was done
(5%). This finding shows that some of the problems were caused by natural calamities,
some were due to the failure on the part of the cooperative to monitor their farm
production and some were due to the errors of the borrowers themselves.
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Table 13. Problems encountered by the borrowers in relation to availing CMLPP loan
PROBLEMS
FREQUENCY PERCENTAGE
Before Availing the Loan

Insufficient Capital
56
93
Higher interest in availing loans in other

lending agencies
18
30

During the Processing of the Loan

Late release of loan

27
45
Longer processing of application
7
12
Insufficient documents to use in availing the loan
10
17
Not active coordinators
1
2
Lack of instructions on the documents needed
7
12
Late release of loan due to lack of fund
26
43

After Availing the Loan

Cannot pay loan
14
23

Business failure

3
5
Insufficient sales or profit to pay the loan
15
25

Unstable price of vegetables
51
85

Natural calamities
54
90

Delinquent in paying the loan
4
7
Pests and diseases of crops
29
48

*multiple response

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
Traders Multipurpose Cooperative / Michelle T. Tad-o. 2010

33
Problems Encountered by the Cooperative
in the Implementation of the CMLPP

Table 14 shows the problems encountered by the BTMPC in granting CMLPP
loans. Insufficient funds of the cooperative was pointed out by 47% of the respondents.
Due to lack of fund for release some members said they have to wait for a week or two.
The amount loaned is even half of the amount applied. Other problems that the
cooperative encountered in granting loans to their member-borrowers were lack of
monitoring and follow-up services to the members as mentioned by 18 %, policies are not
efficiently implemented by 12%, and another problem is that members sell their
vegetables outside the cooperative given by 3%.

Suggestions of the Farmers to the Cooperative

Table 15 presents the suggestions of the respondents to the cooperative in order to
improve the relationship between the CMLPP clients and the cooperative. At the same
time to solve some of their problems on unpaid loans. They suggested the following: the
cooperative should extend the term of payment of the loan so that it would not be heavy

Table 14. Problems encountered by the cooperative during CMLPP operations
PROBLEMS
FREQUENCY PERCENTAGE
Insufficient funds

28
47
Members sell their vegetables outside

the cooperative

2
3
Lack of staff to give monitoring and follow-up

services to the members

11
18

Policies are not efficiently implemented
7
12

*multiple response
Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
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34
on their part by 97%, provide calamity fund for the farmers so that if ever their crops are
destroyed by typhoons then they could borrow from the fund so they could recover their
loss by 93%, contact the borrowers when the loan is almost due for payment by 68%, and
consider the capacity of the borrower to pay by 57%, impose strict payment policy by
48%, send demand letter by 47%, allow the borrower to continue paying the loan even if
it is overdue by 35%, allow restructuring of past due loans by 28%, and officers, staff,
and members must have a cooperative attitude and mind by 13%.

Table 15. Suggested solutions of the respondents to the cooperative to reduce unpaid
loans

SUGGESTIONS
FREQUENCY PERCENTAGE
Extension of the term of repayment
58
97
Calamity fund for farmers
56
93
Contact or inform the borrower
41
68
Capacity to pay

34
57
Impose strict payment
29
48
Sending demand letter
28
47

Continuing payment of loan in spite of

being overdue

21
35

Restructuring of the loan

17
28

Officers, staff, members must have cooperative

attitude and mind

8
13

*multiple response

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
Traders Multipurpose Cooperative / Michelle T. Tad-o. 2010

35

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary

The study sought to assess the Co-op Members Livelihood Partnership Program
(CMLPP) operation of Benguet Traders Multipurpose Cooperative (BTMPC). The study
aimed to determine the demographic profile of the clients/farmers, find out the purposes
of the farmers in availing the CMLPP, find out the perceptions of the clients on the
CMLPP, determine the contributions of the CMLPP to the clients/farmers, find out the
awareness of the clients on the CMLPP requirements and policies, find out the problems
encountered by the clients/farmers and the cooperative in relation to the CMLPP.

The respondents of the study were the members of the cooperative who availed of
the CMLPP. A survey questionnaire was used in the collection of data. The BOD,
members of the committee, the management staff, and the coordinators were also
interviewed regarding the program and its implementation including the requirements and
the policies on the CMLPP.

The finding shows that most of the respondents were male and married, all of
them were farmers and have undergone formal education. Most of the respondents were
in their middle ages, have a household size of 5-10 members. Most of them availed of the
CMLPP loan twice. Their purposes in joining the program were the following: borrow
money as capital in vegetable production, to be assured of market outlet for their produce,
for their convenience in selling their products, and avail of the other services of the
cooperative like the trucking service.

The respondents perceived that it is easy to avail of the CMLPP loan. They also
believed that the CMLPP was efficiently implemented. However, some respondents
Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
Traders Multipurpose Cooperative / Michelle T. Tad-o. 2010

36
claimed that it takes a long time before the loans are released so they have to wait for a
week or two. They also perceived that the CMLPP contributed to their economic
upliftment. Some had improved their asset, improved their house, and increased personal
asset. Furthermore, the program is an advantage to them in terms of a sure market, stable
price, they receive the payments of their crops immediately, they have capital for the
farm production. A few of the farmers mentioned that because they did not pay their loan
their debt increased.

The requirements needed to avail of the CMLPP are the membership in the
cooperative, payment of the minimum share capital, attendance to the PMES, the farm
must be within the area of operation of the cooperative, to use their crops as collateral,
contribution to the mutual benefit fund, no existing or unpaid loans, and savings deposit
to the cooperative. Majority of the respondents were aware of these requirements. In the
same manner, majority were aware of the policies of the cooperative governing CMLPP.

Problems and repayment delinquency was due to natural calamities, unstable
price of vegetables, pest and diseases of crops, insufficient sales or profit to pay the loan,
and failure of business due to lack of supervision on the part of the cooperative. The
respondents also met problems on the processing of the loan like delayed release of the
loan because of insufficient fund. This is also a problem of the cooperative.

To minimize unpaid loans the respondents suggested some solutions like: the
cooperative should extend the term of payment of the loan so that it would not be heavy
on their part, provide calamity fund for the farmers so that if ever their crops are
destroyed by typhoons then they could borrow from the fund so they could recover their
loss, contact the borrowers when the loan is almost due for payment, and consider the
Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
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capacity of the borrower to pay, impose strict payment policy, send demand letter, allow
restructuring of past due loans, allow the borrower to continue paying the loan even if it
is overdue, and officers, staff, and members must have a cooperative attitude and mind.

Conclusions

Based on the results the following conclusions were made:
1. The CMLPP operation of BTMPC is advantageous to the member-borrowers,
2. Members who availed of CMLPP improved their life in terms of increased
income and they were able to buy some lifetime personal belongings.
3. In the past policies were not strictly implemented resulting to a not so
favorable result but now that policies were amended and favorable policies were done,
the cooperative is now strictly implementing them which resulted to improved operation,
4. The purpose of the borrowers were to have capital in vegetable production and
be assured of market outlet,
5. The problems encountered by the member-borrowers were late release of
loans due to insufficient fund of the cooperative, destruction of crops by natural
calamities which resulted to loss and not able to pay the loan, and
6. Some CMLPP clients sell their produce outside the cooperative even if it is
part of the requirements that they have to sell their produce to the cooperative in order
that the it can collect their loan payment from the sales proceeds and set aside the 10%
for their CBU.

Recommendations
Based on the conclusions the following were recommended:
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1. Since the CMLPP is advantageous to the farmers who availed, the cooperative
should expand its area of coverage so that more farmers would be benefited. However, it
is necessary that the cooperative should increase it fund allotted for the CMLPP so that
the borrowers would wait for so long. Furthermore, it should hire additional staff to
supervise the program so that the farmers would not incur losses and to make sure that
the farmers sell their produce to the cooperative and pay their loans.
2. The clients of the program should strictly abide by the policies of the
cooperative so as not to be delinquent and accumulate debt.
3. Since this program of Benguet Traders Multipurpose Cooperative is very
effective in helping farmers, maybe some cooperatives could adopt the same and apply it
to small entrepreneurs operating in their area of operation.

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LITERATURE CITED

AQUINO, C. 2004. The Philippine Vegetable Industry Almost Comatose, Retrieved

September 19, 2009 from www.focus web.org/Philippines/content/25/6.

BOB, 2009. Mindanao hosts 1st National Vegetable Marketing Summit - PIA - …15 Apr

2009. Philippine Information A gency, the official information arm of the

Philippine Government, member of the Presidential Communications Group

www.pia.gov.ph/
HAZZARD, R. 2009. Sustainable Vegetable Production and Marketing, Retrieved

September 19, 2009 from umassextension.org/index.php/public issues.

ITO, K.and DYCK. J, 2002. Vegetable Policies in Japan. Retrieved September 19, 2009

from ers.usda.gov/publications/vgs/oct 02/vgs 293-01.

MIRZA, M. 2001. Commercial Greenhouse Vegetable Production, Retrieved

September
19, 2009 from www.agric.gov ab.ca/sdeptartment/deptocs.nsf/all/

acdex1443.

MOUSTIER, P., NGUYEN, T., DANG, D., and LE, N. 2002.Developing a Network of

Safe Vegetable Production and Marketing Units. Retrieved September 19, 2009

from malica-asia.org/uploads/quality/part2-quality development and marketing.

ROWELL, B and WOODS, T, 2005. Marketing Options for Commercial Vegetable

Growers.
Retrieved September 19, 2009 from
www.ca-

uky.edu/agc/pubs/id/id134/id134.htm.

TOURTE, A. and GASKELL, C. 2009 - UC Cooperative Extension - Business and

Market Plans.anrcatalog.ucdavis.edu/pdf/7247.pdf

USAID, 2006. Nurturing Moldova’s Market for Produce, retrieved September 19, 2009

from www.usaid.gov/stories/moldova/ss_mda_produce.

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APPENDIX A

Survey Questionnaire
(For CMLPP Recipients)

I. Members Profile

Respondents No._________

Date___________________
1. Name of Respondent: _____________________________________________
2. Age: __________________
3. Civil Status: ____________
4. Household Size:_________
5. Sex:____Male____Female
6.Location of farm:________________________________________________________
7. Educational Attainment: Please check the space provided
_______Elementary
_______High School
_______College
_______Vocational
8. Position in the Cooperative
_______Officers
_______Management Staff
_______Coordinator
_______Members
_______Others, please specify_______________________________________
9. How many times did you avail of the CMLPP since it started?
_______1 time
_______2 times
_______3 times
_______Others, please specify_______________________________________
10. Is it hard to avail on the CMLPP? ____Yes____No.
11. What are the requirements?
_______Must be a member of the cooperative
_______Paid the minimum share capital
_______Attended the PMES
_______Within the area coverage of operation
_______Others, please specify_______________________________________
12. What is your purpose in availing the services?
_______To be assured of market outlets
_______To have capital in vegetable production
_______Convenience in selling the product produce
_______To avail the other services such as trucking
_______Others, please specify_______________________________________
13. Is the CMLPP efficiently implemented?___Yes___No.
If No, why?
_______Long process of application
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_______Late release of net sales or profit
_______Lack of monitoring or follow up services
_______Not active coordinators
_______Others, please specify_______________________________________
14. What are the problems encountered before availing of this services?
_______Insufficient capital
_______Higher interest in availing loans in other lending agencies
_______Others, please specify_______________________________________
15. What are the problems encountered in the process of availing the services?
_______Late release of loan
_______Longer processing of application
_______Insufficient document to use in availing the service
_______Not active coordinators
_______Lack of instructions on the documents needed
_______Others, please specify_______________________________________
16. What are the problems encountered after availing the services?
_______Cannot pay loan
_______Business failed due to lack of monitoring and follow up services
_______Insufficient sales or profit to pay the loan
_______Unstable price of vegetables
_______Others, please specify_______________________________________
17. What are the sources of payment in paying the availed services?
_______Sales or profit from business
_______Borrowed money from others
_______Personal savings
_______Others, please specify_______________________________________
18. Where do the cooperative sell your produce?
_______La Trinidad Vegetable Trading Post
_______Nueva Vizcaya Agricultural Terminal
_______Other cooperatives
_______Others, please specify_______________________________________
19. Do the services availed improved your life? Yes_____ No_____If yes, why?
_______Improve house
_______Increased asset
_______Increased income
_______Others, please specify_______________________________________
20. What are the advantages of the CMLPP operations of the cooperative?
_______Sure market outlet
_______Stable price of produce
_______Payment is received immediately
_______Others, please specify_______________________________________
21. Is the CMLPP operations disadvantages? ____Yes____No
If yes, why?
_______Price received is usually lower than the market price
_______Takes time for payment to be given
_______Total loan is deducted from sales
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_______Others, please specify_______________________________________
22. What are your perceptions about the CMLPP?
_______It help me a lot in my production and marketing
________It increased my debt because I was not able to settle my loan
________Others, please specify_______________________________________

II Cooperative Questionnaire
1. What are the measures employed by the cooperative to increase the number of
members in CMLPP?
_______Conduct seminar and meetings
_______Conducting financial counseling
_______Ensure continous education and training
_______Promotions and promo raffle draws
_______Others, please specify_______________________________________
2. What are the problems encountered during the CMLPP operations?
_______Insufficient funds
_______Members sell their vegetable outside the cooperative
_______Lack of monitoring and follow-up services to the members
_______Policies are not efficiently implemented
_______Others, please specify_______________________________________
3. What are the sources of funds?
_______Sales or profit from other operational services of the cooperative
_______Borrowed money from banks and other cooperatives
_______Sales or profit from the vegetable marketing program
_______Others, please specify_______________________________________
4. What are the requirements implemented by the cooperative?
_______Membership in the cooperatives
_______Pre-membership education seminar (PMES)
_______Membership fee
_______Share capital
_______Others, please specify_______________________________________
5. What are the policies in the CMLPP operations?
_______The cooperative will be the one to sell the products.
_______The members’ collateral is their vegetable production.
_______Farmers who sold their products outside will not be granted loan.
_______Others, please specify_______________________________________
6. What are the duties and responsibilities of the coordinator?
_______Monitor the farmers’ vegetable inputs from planting to harvest
_______Recommend the members who need or deserve loans
_______Made report on cooperative from planting to harvesting
_______Others, please specify_______________________________________
7. What are the strategies / methods employed by the cooperative?
_______Not less than 10% of members gross income will be set aside as CBU.
_______Discipline the farmers through giving them only one chance availing
the services.
_______Not giving loans to members who sell their products outside the
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cooperative.
_______Others, please specify_______________________________________
8. What are the suggested solutions of BTMPC officers and staff to reduce unpaid loans?
_______Restructuring of the loan
_______Impose strict payment
_______Sending demand letter
_______Capacity to pay
_______Others, please specify ____________________________________________

Assessment on the Coop-Member Livelihood Partnership Program of the Benguet
Traders Multipurpose Cooperative / Michelle T. Tad-o. 2010

Document Outline

Assessment on the Coop-MemberLivelihood Partnership Program of the Benguet Traders Multipurpose Cooperative
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED
- APPENDIX