BIBLIOGRAPHY JULIE T. QUINTOS. APRIL...
BIBLIOGRAPHY
JULIE T. QUINTOS. APRIL 2008. Documentation of the Carnation Production
and Marketing of Mountain Bloom Multipurpose Cooperative of Englandad, Paoay,
Atok, Benguet, Benguet State University, La Trinidad, Benguet.
Adviser: Prof. Evangeline B. Cungihan, MSc
ABSTRACT
This study was conducted to find out how the carnation production started in
Englandad, Paoay, Atok, Benguet; find pout how the cooperative was organized;
determine the role of the cooperative in selling carnation; and determine the problems
encountered by the cooperative members in producing carnation.
This study was conducted at Mountain Bloom Multipurpose Cooperative with 29
members as respondents. Majority of them were female and have pass their golden age.
Some of the respondents had been producing carnation for several years while other have
just shifted from vegetable production to carnation production.
Carnation production in Englandad, Paoay, Atok, Benguet was started by King
Louis Flowers and Plants, Inc. Later, the vegetable farmers from the place adopted it as
one of their crops. The first farmers to produce carnation learned the technology from.
Prof. Hermano. Other farmers who shifted into carnation production learned from other
sources like BSU, Land Bank, and from the Municipal Agriculture Office of Atok.
Majority of the farmers just have one green house they produce carnation and
they harvest 8 – 15 dozens of carnation flowers per week. They replant their carnation
every after three years of continuous harvest.
The Mountain Bloom Multipurpose Cooperative was organized through the
initiative of Prof. Hermano. The objective of the cooperative was to provide farm inputs,
technical assistance and financial assiatance to the farmers as well as to market theirt
produce. The cooperative maintains a stall at Dimasalang managed by three sellers.
Traders from Boracay, Bacolod, Visayas, Dagupan and other nearby areas in Metro
Manila get their supply of flowers from the cooperative’s outlet at Dimasalang.
When the farmers harvest their flowers, they pack them and the cooperative
transports, the flowers through the truckers, to the market outlet at Dimasalang. The
payment to the farmers are given after the flowers are sold. The sellers send the payment
through the trucker to the cooperative. The cooperative deducts the cost of transportation
and an amount for capital build-up and remits the balance to the farmers.
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TABLE OF CONTENT
Page
Bilbiography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION
Rationale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Scope and Limitation of the study. . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
REVIEW OF LITERATURE
Purpose of cooperative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Success Factors of cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Cooperative Failure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Economic Contributions of Cooperatives . . . . . . . . . . . . . . . . . . . . . .
6
Role of Cooperative in Community Development. . . . . . . . . . . . . . . .
7
Carnation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Conditioning of Cutflowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
METHODOLOGY
Locale and Time of Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
RESULTS AND DISCUSSION
Profile of the Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Carnation Production of the Respondents . . . . . . . . . . . . . . . . . . . . . .
13
Sources of Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Schedule of Production . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .
16
The Role of Mountain Bloom Multipurpose Cooperative
in Carnation Production and Marketing. . . . . . . . . . . . . . . . . . . . . . .
17
Key Actors in the Carnation Production and Marketing . . . . . . . . . . .
18
Product and Payment Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Benefits Offered by the Cooperative to the members . . . . . . . . . . . . .
22
Problems of the Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Problems of the Cooperative members . . . . . . . . . . . . . . . . . . . . . . . .
23
Urgent Needs of the Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
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LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
APPENDIX
Appendix A: Guide Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
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INTRODUCTION
Rationale
Republic Act. No. 2023 (1995) declared, a policy aimed to assist the people to
develop their enterprise on a cooperative basis, to strengthen their economic
independence and to promote organized methods of industrial production.
Municipality of Atok promotes cooperativism among the constituents through
encouraging them to organize a cooperative for them to have institutions that is stronger
that will represent them in any aspect like marketing of product of the members.
Mountain Bloom Cooperative was organized because many of the folks in
Englandad, Paoay, Atok, Benguet where the cooperative is situated were fun of planting
flowers especially carnation because it is a little bit expensive. Some of the farmers
shifted to carnation production from vegetable production because of low prices of
vegetables. The cooperative was initiated by Faustino Hermano and Nario Celo. This was
registered at Cooperative Development Authority (CDA) on June, 2004 with fifteen (15)
members. The cooperative was named as Mountain Bloom Cooperative because the place
is Mountainous and the product to be produced id carnation. The organizer decided to
collect two thousand pesos (P2,000.00) each as share capital and two hundred pesos
(P200.00) as their membership fee with total of thirty three thousand pesos (P33,000.00)
as the initial capital of the cooperative.
Mountain Bloom Cooperative helps the members and non-members to market
their produced carnation by selling in the rented place in Manila. The carnation growers
had been selling their flowers to wholesalers at very low price. This time that the
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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cooperative is the one selling the product, the price received by the farmers is high. The
farmers are realizing a higher price from their produced carnation. The farmers are not
hard up in selling their product because the cooperative is responsible in marketing their
products. All technical assistance given to the growers are also channeled through the
cooperative.
This system of production and marketing benefits the participating farmers. This
study will be conducted to document the practices and arrangement done by the farmers
and the cooperative. With this documentation, other people would be aware of
advantages of this production and marketing system and they could also adopt it in their
own locality.
Statement of the Problem
The study was conducted to find answer to following questions:
1. How did the carnation production started in Englandad, Paoay, Atok?
2. How the cooperative was organized?
3. What are the roles of cooperative in selling carnation?
4. What are the problems encountered by the cooperative in selling carnation?
5. What are the problems encountered by the cooperative members in producing
carnation?
Objectives of the Study
The study aimed to accomplish the following:
1. find out how the carnation production started in Englandad, Paoay, Atok.
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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2. find out how the cooperative was organized.
3. determine the roles of the cooperative in selling carnations.
4. determine the problems encountered by the cooperative in selling carnation.
5. determine the problems encountered by the cooperative members in producing
carnation.
Importance of the Study
Unless a good practice is documented, it would not be known and adopted by
others. There is also a good chance that it would be forgotten. This study could be a
source of information for other interested groups to adopt the same system of production
and marketing.
In addition, the study would also serve as reference for future studies.
Scope and Limitation of the Study
The researcher focused on the role of Mountain Bloom Cooperative in carnation
production and marketing. This was conducted in the locality of Englandad, Paoay, Atok,
Benguet, Philippines from December to January 2008.
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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REVIEW OF LITERATURE
Purpose of Cooperative
Economic growth and development have been an elusive goal of the Philippines.
The overall development goal is for improved quality of life for every Filipino through
international competitiveness and people empowerment through cooperatives. A
cooperative is a business and social organization that exposes the spirit and value of self-
help and working together in the pursuit of social and economic ends (Pasigon and
Gonzaga, 1996).
Pimentel (1994) as cited by Gayumma (2005 ) stated that cooperatives maybe
formed for any economic, social and educational advancement of their members.
Cooperatives maybe formed to engage in business of cooperative banks, wholesale and
retail complexes, insurance, marketing enterprises and even public markets.
Rodriguez, et al. (1988) also stated that though cooperatives are not usually
regarded as “business” in the ordinary sense, many cooperatives today trade goods and
services not only with their members but also with the general public and consciously
attempts to generate surplus that they may be regarded as business organization in many
aspects.
Cooperative
The Cooperative Code of the Philippines stated that cooperatives are duly
registered association of persons with a common bond of interest, who have voluntarily
joined together to achieve a lawful common social and economic end, making equitable
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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contributions to the capital required and accepting a fair share of the risks and benefits of
the undertakings in accordance with universally accepted cooperative principles.
Chackley (1975) as cited by Payacda (2005)stated that it is absolutely essential
that the long term objective of making the cooperative movement an independent and
autonomous one is kept constantly in mind and that governments all over the world
should recognize cooperatives not as end themselves but a means in helping people to
grow and mature, to improve living conditions and to strengthen their freedom and
independence.
A cooperative is a form of business firm. It is owned and controlled by its
member patrons. It is organized to serve the needs of its members in a way that will
enable him to realize higher income, lower cost and more efficient and dependable
services. Cooperative helps people to operate and own their business firms and to
increase their earnings as much as possible (Sacay, et al., 1972).
Success Factors of Cooperatives
Pagdanganan (1999) enumerated the following factors that determines the success
of a cooperative. These are: 1). Merging and consolidation of primary cooperatives, 2).
Professionalization of management, 3). Training and education program, 4). Effective
auditing system for cooperatives and cooperative banks, and 5). Government support to
cooperatives based on the principle of subsidiary.
Cooperative Failure
A failed cooperative is one that has been unsuccessful, unable to perform this
program or activities and unable to carry on with their goals or objectives for a number of
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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year and service formed. Despite the importance and progress brought about by
cooperatives, there are problems and constraints within the cooperative itself, which may
contribute to its success or failure. One of this is lack of funds for production loans.
Another problem is the policy of the government to allow NGO’s to organize
cooperatives in any part of the country without outlining appropriate policies and
regulastions, which results to san overlapping with the cooperatives function of the
government. There is weak institutional structure for providing sustained cooperative
education and training leading to lack of qualified managers in the system. There is also a
lack of government incentives in terms of financial assistance, and most of all
cooperatives suffer from the fact that there is a negative impact of government policies
particularly in delivering agricultural credit and pricing (Castillo, 1983).
Economic Contributions of Cooperatives
Dawawa (2004) found out that there was an increase in agricultural production
output because cooperative members were able to engage in more business opportunities
as a result of availability of more capital inputs with lesser interest. Socially, cooperatives
give eaul treatment to both rich and poor. Culturally, enhance the relationship among
members even those who belong to other cultures. Politically, the members were
provided opportunities to exercise their right of suffrage during their assemblies.
Role of Cooperative in Community Development
Community development as ways for people to work together in order to build
better community and thereby improve the welfare of all. They organized themselves
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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under their free will and work as a team to solve problems of their community . They are
concerned with the development of human resources and consider man as the most
important of development. Cooperative develops values of their members. They teach
and practice wise use of money, to be self-reliant, which is one key concept of the
cooperative program. Cooperatives demonstrate the value of group cooperation and
social awareness. Farmers’ negative attitudes and values can be changed through
continuous training and education.
Carnation
Carnation has been use since the classical Geek and Roman time as medicine to
control fever and expel poison, as a dye for black hair, and to flavor beer and wine.
Carnation is also known as Pink, Clove Pink, Gillie, Gillyflower, Diveine flower,
Jove’s flower, and Sops-wine. The botanical name is Dianthus caryophyllus.
Dianthus comes from the Greek words “dios”, referring to the god Zeus, and
“anthos”, meaning flower, thus we have divine flower of the gods (named by the Greek
botanist Theophrastus). The name carnation may have originated from the word flowers
use to make ceremonial crowns in Greece. Also coronations were decorative head bands
made of woven flowers worn by young maidens. An “Pink” is derived from a word
meaning scalloped describing the shape of the edge of carnation petals. Because
carnations are showy, colorful and long lasting flowers it has become one of the favorite
cut flowers. Carnation is excellent for floral bouquets.
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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Conditioning of Cut Flowers
Conditioning of cutflowers is done immediately after storage to counteract slight
dehydration durting storage. It is done either re-cutting the stem ends by about 2 – 4 cm
or by placing them in the preservative or warm water (38 -40 oC) for at least two hours
before arranging in a vase.
Silver Nitrate solution as a pre-conditioning for chrysanthemum eliminated the re-
cutting of stems after shipment (Ferrhan et.al., 1979). In snapdragon, Nowak (1981)
found that a pre-treatment with Ag No3 + sodium Thiosulfate + sucrose gave the best
result in terms of quality. Pre-treating carnation with AgNo3 dip greatly improved
longevity and size of both fresh ans shipped flowers (Halevy et al., 1978).
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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METHODOLOGY
Locale and Time of the Study
The research was conducted in the locality of Englandad, Paoay, Atok, Benguet
from December, 2007 to January, 2008.
Respondents of the Study
The information used in this study was gathered from 29 members. Other
information were gathered from the officers of the cooperative, the Mountain Bloom
Cooperative.
Data Collection
The primary data was collected through personal interview with the respondents
and other key informants.
Data Analysis
The data gathered was summarized and analyzed based on the objectives of the
study.
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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RESULTS AND DISCUSSION
Profile of the Respondents
Table 1 presents the profile of the 29 members of Mountain Blooms Multipurpose
Cooperative. This included their sex, age, number of years in farming, number of years in
carnation production, number of years as member of the cooperative, and reasons for
joining the cooperative
Sex. Table 1shows that out of 29 respondents, 20 were female and only 9 were
male. This is because there were more female members of the cooperative than male.
Age. The table presents that majority of the respondents were more than forty
years old to sixty years old. Two respondents each belonged to the age bracket 73- 84
years old and 25 – 36 years old while 7 belonged to the 61 – 72 years old. This finding
implies that majority of the members of the cooperative and who are producing carnation
have pass their golden age.
Years in farming. The finding reveals that almost all the respondents had been
into farming for more than ten years. They had been producing vegetables for quite a
number of years before they shifted to cutflower production. They first started with
chrysanthemum before they shifted to carnation production.
Years in carnation production. The respondents had been producing carnation for
less than ten years. Fourteen or 48.28% had been growing carnation for 2-5 years while
15 or 51.72% had been into carnation production for 6 – 8 years already. This finding
shows implies that carnation production is still new in the place.
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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Number of years in the cooperative. The cooperative was just organized in 2004
and majority of the respondents (79.31%) joined the cooperative during that year so they
are now members of the cooperative for more than 2 years. The rest of the respondents
(20.69%) have just joined the cooperative so they were members for just 1 – 2 years.
Reasons for joining the cooperative. The respondents joined the cooperative for
different reasons. Nine of them became members of the cooperative because they were
convinced by other people to join, seven of them said they joined the cooperative because
of the benefits they get from being members. They observed that the other carnation
growers who joined the cooperative did not find difficulty in selling their flowers because
the cooperative buys their flowers. Besides, the price they received was much higher than
what they could sell their flowers in other outlet. They could also avail of credit from the
cooperative. All these motivated them to join the cooperative. Three of them said they
joined the cooperative because they wanted to tray carnation production. Five
respondents each mentioned they wanted to try the cooperative as market for their
flowers while the others joined the cooperative because they wanted to experience being
a member of the cooperative.
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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Table 1. Profile of the respondents
PARTICULAR
NUMBER
PERCENT
(F)
(%)
Age
25-36
2
6.90
37-48
7
24.14
49-60
11
37.93
61-72
7
24.13
73-84
2
6.90
TOTAL
29
100.00
Number of Years in Farming
6 – 14
3
10.34
15-23
6
20.70
24-32
9
31.03
33-41
9
31.03
42-50
2
6.90
TOTAL
29
100.00
Years as Member in the Cooperative
1 - 2
6
20.69
More than 2 years to 3 years
23
79.31
TOTAL
29
100.00
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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Table 1. Continued …
PARTICULAR
NUMBER
PERCENT
(F)
(%)
Reasons for joining the Cooperative
1. Convinced by others
9
31.03
2. Because of benefits/ advantages
7
24.14
from the cooperative
3. Wanted to try carnation production
3
10.34
4. Wanted to experience coop membership
5
17.24
5. To help other members of the cooperative.
5
17.24
6. To increase income through
2
6.90
carnation production.
TOTAL
29
100.00
Carnation Production of the Respondents
This section presents the number of years the respondents engaged in carnation
production, the number of green house they have, volume of harvest per week, and
number of years before replanting. All these data are presented in Table 2.
Number of years in carnation production. The result shows that some of the
respondents had been producing carnation for several year already while other have just
shifted from vegetable production to carnation production. Fourteen or 48.28% of the
respondents had been producing carnation for 2 – 5 years while 51.72% had been
producing for 6 – 8 years.
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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Number of greenhouse. All the members of the cooperative had at least one green
house of their own, since this is a prerequisite before they join the cooperative. The
finding shows that 62.07% of the respondents had only one green house, 34.48% had 2
greenhouses, and only or 3.45% had three greenhouses.
Volume harvested per week. The respondents differ in their volume of harvest per
week. Some harvested more and some harvest less depending on the number of
greenhouse they have. The result shows that 13 or 44.83% harvested 5 – 10 dozens per
week, 11 or 37.93% harvested 11 – 15 dozens per week and only 5 respondents or
17.24% harvested 16 – 20 dozens per week.
Number of years before replanting. The carnation plant is a perennial plant.
When planted and established, it flowers continuously for more than one year before it is
again replanted, according to the farmers. Majority of the respondents (51.72%) replant
after three years. There were 13 respondents or 44.83% who said that they replanted after
two years because the amount of harvest they get is low and besides, the quality is not
good so they have replant. The same was true for one respondent who replanted her
carnation after one year.
Table 2. Farm profile of the respondents
PARTICULAR
NUMBER
PERCENTAGE
(F)
(%)
Number of Years in Carnation Production
2-5
14
48.28
6-8
15
51.72
TOTAL
29
100.00
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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Table 2. Continued …
PARTICULAR
NUMBER
PERCENTAGE
(F)
(%)
Number of Greenhouse
1
18
62.07
2
10
34.48
3
1
3.45
TOTAL
29
100.00
Volume Harvested per Week (in doz.)
5-10
13
44.83
11-15
11
37.93
16-20
5
17.24
TOTAL
29
100.00
Number of Years before Replanting
1
1
3.45
2
13
44.83
3
15
51.72
TOTAL
29
100.00
Sources of Technology
Table 3 presents the sources of technology adopted by the farmers in carnation
production. The various sources of technology adopted by the respondents and the other
carnation producers were from BSU technicians, Land Bank, Private technicians like
Prof. Hermano, and from the Municipal Agriculturist Officer of Atok. Majority (68.90%)
mentioned that they are adopting the technology taught to them by Prof. Hermano,
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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Table 3. Sources of technology used by the respondents
SOURCES
NUMBER
PERCENTAGE
(F)
(%)
BSU
3
10.34
Land Bank of the Phil.
4
13.79
Private technician
20
68.97
Municipal Agriculturist Officer
2
6.90
TOTAL
29
100.00
10.34% were using the technology taught to them by an extension worker in Benguet
State University, 13.79% said they got their technology from a technician of Land Bank
of the Philippines and 6.9% said they were taught by the municipal agriculturist of Atok,
Benguet.
Schedule of Production
The schedule of planting the cutflowers including carnation is planned by the
cooperative so that the farmers will harvest by schedule. In this manner there will be
continuous supply of flowers to be sold by the cooperative. A sample of the schedule
taken from the cooperative is presented in Table 4.
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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Table 4. Sample of planting schedule employed by the cooperative to members
MEMBER
FLOWER PRODUCE
CARNATION CALLALILY SIESTA
AGAPANTUS SNAP
DRAGON
Member 1 January
February
March
April
May
Member 2 February
January
April
May
March
Member 3 March
May
February
January
April
Member 4 April
March
May
February
January
Member 5 May
April
January
March
February
The Role of Mountain Bloom Multipurpose Cooperative
In Carnation Production and marketing
The Mountain Bloom Multipurpose Cooperative was organized through the
initiative of Prof. Faustino Hermano, who was then a consultant of King Louis Flowers
and Plants, Inc.(KLFPI). There were some farmers who were engaged in cutflower
production in the place. Some of the farmers started to plant carnation but they lack the
technical knowledge in growing carnation so they asked the help of Prof. Hermano. His
problem was the farmers were not organized so he suggested to the farmers to organize
into a cooperative so that it would be easy to help them. The cooperative was registered
to CDA on June, 2004 with fifteen farmers as initial members. Each member contributed
P2,000 as share capital and P200 as membership fee. The cooperative started its
operation with P33,000 as initial capital. The organizational structure of the cooperative
is presented in Figure 1.
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
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General Assembly
Audit and
Credit
Board of
Election
Conciliation
Inventory
Committee
Directors
Committee
Committee
Education and
Training
Committee
Manager
Bookkeeper
Auditor
Seller
Figure 1. The organizational structure of Mountain Bloom Cooperative
Note: *All staff and officers are not accepting salary or honorarium except the auditor,
bookkeeper and sellers.
* All staff and officers were not replaced since the cooperative was organized.
Key Actors in the Carnation Production and Marketing
The key actors in the production and marketing of carnation were the farmers, the
cooperative (Mountain Bloom), the Atok bus, the trucker, the traders (wholesalers and
retailers), and the consumers (Table 4).
Farmers. The farmers were responsible in constructing their greenhouse, invest
their own money or get loan from the cooperative. They were also responsible in
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
19
acquiring their planting materials as well as the farm inputs. When the flowers are ready
for harvest, the farmers harvest them and bring them to the packing area at the
cooperative office. However, the farmers were still responsible for packing the flowers.
Cooperative. The Mountain Bloom Multipurpose Cooperative provides crop loan
to the members for buying planting materials or farm inputs. It also provide the
packaging materials for the flowers. After the farmers pack the flowers, the cooperative is
now responsible for transporting them to Dimasalang. The cooperative is currently
maintaining a stall at the cutflower market in Dimasalang managed by three (3) sellers.
After the flowers are sold they sellers send the payment to the cooperative through the
trucker. From the sales proceeds, the cooperative deducts the transportation cost plus an
amount for capital build-up and give the balance to the farmers.
The cooperative is also responsible in conducting seminars to update the
knowledge of the farmers on cutflower production.
The bus. The Atok bus also play an important role in the transport of the
carnation flower. Every Tuesdays and Fridays, the bus picks up the flowers and bring
them to Gate 1 of Benguet State University to be picked up by the trucker.
The trucker. The trucker is responsible in transporting the flowers to Dimasalang
where they will be picked up by the sellers. The trucker is also responsible in getting the
payment of the flowers from the sellers and hand it to the cooperative.
The traders. The traders consisted of wholesaler/Retailers at Dimasalang area and
retailers coming from other places in Metro manila and from other places like Baguio
City, Bacolod, Boracay, Visayas, and Dagupan. The key informant mentioned that at first
the cooperative delivered the flowers to Bacolod, Boracay, and Visayas but because of
Documentation of the Carnation Production and Marketing of Mountain Bloom
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the high cost of transportation they stopped the delivery. At present, the traders from
these places are now coming to Dimasalang to buy the flowers.
The Consumers. The key informant mentioned that majority of the flowers were
being bought for church decorations during weddings and other church occasions.
Table 4. Key actors in the carnation production and marketing and their functions
KEY ACTORS
FUNCTIONS
1. FARMERS
a. Plant carnation
b. Take care of the carnation
c. They will be the one to harvest the
carnation
d. Packaging of flowers
2. COOPERATIVE
a. Lend capital to the members
b. Conducts trainings for the members
c. Market the flowers and pay the farmers
3. Atok Bus
a. picks up the flowers from the
cooperative and brings them to BSU gate 1.
4. Trucker
a. delivers the flowers to Dimasalang and
picks up the payment and delivers it to the
cooperative.
3. RETAILER/ WHOLESALER
a. Selling of the product
b. Look for consumers
4. CONSUMER
a. User of carnation
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Product and Payment Flows
The product flow from the farmers to up to the consumers is presented in Figur2
and the payment flow from the consumer down to the farmers is presented in Figure 3.
These flows were conceptualized based on the story of the key informants.
The carnation flowers produced by the members of the cooperative bring all their
flowers to the cooperative. The cooperative is responsible in looking for market outlets of
these flowers. The cooperative through it outlet in Dimasalang sale the flowers to
wholesaler and retailers from different places then from the retailers it goes to the
consumers. Bulk of it goes to the church.
For the payment, the cooperative receives the payment from its customers, the
sellers send the money through the trucker then the cooperative deducts the transportation
cost and the capital build-up then pays the farmer.
RETAILERS
FARMERS
COOPERATIVE
CONSUMERS
WHOLE
SALER/
RETAILERS
Figure 2. Shows the flow of cut flower traded by Mountain Bloom Cooperative
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RETAILERS
FARMER/
COOPE-
MEMBER
RATIVE
TRUCKER
CONSUMERS
WHOLE
SALER/
RETAILERS
Figure 3. Flow of payment from customer to the farmers/members of Mountain Bloom
Cooperative
Benefits Offered by the Cooperative to the Members
According to the key informant the cooperative provided many benefits to the
members. These benefits were in the form of: 1). Technical support like trainings and
seminars on cutflower production, quality control and postharvest technology; 2). Crop
loan; 3). Irrigation facility; 4). Assured market for their produce, not only carnation but
including the other flowers that they produce.
Problems of the Cooperative
The following problems were mentioned by the Chairman of the Board of the
Cooperative: financial support to expand business, lack of knowledge and training of the
officers and members in the proper operation of the cooperative, poor auditing and
bookkeeping, and poor marketing strategies.
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Problems of the Cooperative Members
The problems of most members of the cooperative were lack of capital for
efficient farm operation, high prices of inputs and low prices of products, and limited
source of planting materials.
Urgent Needs of the Cooperative
According to the chairman of the cooperative, they are in need of a stable market
outlet for their product because the market at Dimasalang, there are many other
competitors. Another need of the cooperative is post harvest handling facilities. They
need these facilities to maintain the high quality of the flower when it reach the buyer.
They are also in need of transportation facility so that they could increase the volume
of their produce and could transport their flower to other places and minimize
transportation cost if they own the truck. They also need to train their members on
bookkeeping and accounting as well as auditing so that their operation would
improve.
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to document the carnation production and marketing of
Mountain Blooms Multipurpose Cooperative at Englandad, Paoay, Atok, Benguet.
Twenty nine members of the cooperative were taken as respondents. The
Chairman of the Board of Directors and other officers also served as key informants. The
study was conducted from December 2007 to January 2008.
Majority of the respondents were female, more than forty five years old and had
been into farming for more than 20 years. However, for carnation production, most of the
farmers had been into it for 6 – 8 years. Majority of the respondents were members of
the cooperative for more than two years and they joined the cooperative because they
wanted to grow carnation. Some observed the benefits that the members get from the
cooperative like trainings and seminar, crop loan, and the assured market for their
flowers.
All the respondents were growing their carnation in green houses. Majority had
only one green house and most of them were harvesting5 – 10 dozens per week. Majority
replant their carnation after 3 years.
The sources of technology were from BSU technician, Prof. Hermano, from the
Municipal Agriculture office, and from Land Bank of the Philippines technician. The
schedule of planting for the farmer-members for the different cut flowers was scheduled
by the cooperative so that there will be continuous harvest of flowers every week. This is
also to control the volume of production.
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The key actors in the carnation marketing were the farmers, the cooperative, the
trucker including the bus that transport the packed flowers from Atok to La Trinidad
where it would be picked up by the trucker to delivery to Dimasalang. The cooperative
has a wholesaling stall at Dimasalang where the wholesaler/retailers and retailers from
other places. The consumers of carnation were usually hotels and individual buyers.
The payments of the flowers from the consumers goes to the retailers and
wholesaler retailers then it is carried by the trucker to the cooperative and the cooperative
gives the payment to the farmers concerned. The cooperative deducts the transportation
cost and a percentage of the sales for capital build-up.
Aside from marketing of the products, the cooperative also provide trainings and
seminar on cutflower production, quality control and postharvest technology; crop loan;
and irrigation facility.
Some problems of the cooperative were lack of knowledge of the officers and
members on the proper operation of the cooperative, on bookkeeping thus they are in
need of trainings for their officers and members of the committees. They also have
problem on poor marketing strategy thus they also wanted some trainings on marketing.
The problems encountered or met by the different cut flower cooperatives are
financial support to expand business, sources of new cut flower planting materials, high
prices of farm inputs on low prices of products, insufficient knowledge on bookkeeping
and accounting which affect the operation of the cooperative and limited source of
planting materials.
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Conclusions:
Based on the finding, the following conclusion were made:
1. Majority of the members of Mountain Bloom Multipurpose Cooperative are
female farmers who shifted from vegetable farming to cutflower production.
2. Membership to the cooperative is beneficial to the farmers because they could
avail of trainings and seminars on cut flower production and post harvest
handling. Besides there is also sharing of experiences and ideas on cut flower
production among all members of the cooperative.
3. All cut flowers of the members of Mountain Bloom Multipurpose Cooperative are
being sold in Metro Manila through the cooperative. This is due to higher price of
cut flower products in Metro Manila compared to the price here in Baguio City.
4. Some of the carnation flowers were brought by trader to as far as Boracay,
Bacolod and Visayas.
5. The producers met problems on lack of financial support, high prices of farm
input, low price of flowers, and limited sources of planting materials.
6. The cooperative is in need of specialize trainings on bookkeeping and accounting,
auditing as well as training on marketing.
Recommendations:
Based on the results of the study, the following recommendations were made:
1. Other farmers producing cutflowers should join the cooperative inorder to avail of
the benefits that the members are enjoying.
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2. The cooperative should look for alternative market outlet for the cutflowers so
that farmers could increase the volume of their production. The cooperative
should also conduct invite experts in cutflower production, experts in postharvest
handling and quality control and experts in marketing to give lecture to the
farmers. In the same manner, the cooperative should also invite trainors on
bookkeeping and accounting, and auditing to train the members on bookkeeping
and accounting so that they would be able to do the bookkeeping themselves
without hiring from outside for the time being that the cooperative could not pay
the salary of a full time bookkeeper.
3. The cooperative should also engage in selling farm inputs to the members. The
cooperative should buy in bulk and sell it to the members at a lower price
compared to the farm input suppliers.
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LITERATURE CITED
CASTILLO. C.T. 1983. Cooperative problems and constraints. University of the
Philippines, Los banos, Laguna. NSDB-UP Integrated Research Program. Pp.
26-30.
CHAKLEY, A. 975. Development Journalism. Manila, Press Foundation of Asia. P.5.
Republic Act of the Philippines. 1955. Bureau of Printing. Manila P.612.
DAWAWA, J.T. 2004. Profile of primary cooperatives in Atok, Benguet. BS Thesis,
Benguet State University, La Trinidad, Benguet. Pp.4-5.
FAUQUET, G. 1987. A Primer on Cooperatives. Global Review of the Cooperative in
Economics and Social Development. Pp. 7-8
FERRHAN, S.C. and A.H. HALEVY. 1979. Comparison of conditioning, precooling
transmit method and use of a floral preservatives on cut flower quality, Journal
of America 30c. Hort, 104(6) pp. 483-490.
GAYUMMA, P.K. 2005. Profile of primary cooperatives in Atok, Benguet. BS Thesis.
Benguet State University, La Trinidad, Benguet. Pp.4.
HALEVY, H.. and S. MAYAK. 1978. Improvement of cutflower quality, opening and
longevity by pre-shipment treatments. Acta. Hortic. 43. 335-347.
PAGDANGANAN, R. 1999. a CALL FOR Cooperative Revolution. Quezon City,
Philippines. FLAGG. Pp. 183-349.
PASIGON, L.D. and GONZAGA. 1996. Comparative study of different credit
cooperative in Metro Baguio and La Trinidad, Benguet. BS Thesis, Benguet
State University, La Trinidad, Benguet. Pp. 6-7.
PAYACDA, J.P. 2005. Reponse of three standard varieties of carnation cut flower to dry
and wet storage. BS Thesis, Bneguet State University, La Trinidad, Benguet.
P.9.
PIMENTEL, A.Q. 1994. Cooperative Code of the Philippines, White Orchids Printing
and Publishing Co.
RODRIGUEZ, R.A. and ECHANIS, E.S. 1988. Fundamental of Management, 2nd
Edition. Diwata Publishing. Pp.4-5
SACAY, O.J., M.H. AGRABIAN and I.E. TANCHOCO. 1972. Small Farmers Credit
Dilema. National Publishing Cooperatives. Manila, Philippines. Pp. 2,39,41, 102.
Documentation of the Carnation Production and Marketing of Mountain Bloom
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29
APENDIX A
GUIDE QUESTIONS
I. Demographic Profile
Name (Optional)
Sex
Age
Number of years in farming
Former production activity
Number of years as member of the cooperative
Reasons for joining the cooperative
II. Production Profile
Number of green house
Sources of planting materials
Sources of inputs
Sources of technology
Volume of harvest per week (dozens)
Number of years before replanting
Problems met in carnation production
Problems met in the cooperative
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
JULIE T. QUINTOS. APRIL 2008. Documentation of the Carnation Production
and Marketing of Mountain Bloom Multipurpose Cooperative of Englandad, Paoay,
Atok, Benguet, Benguet State University, La Trinidad, Benguet.
Adviser: Prof. Evangeline B. Cungihan, MSc
ABSTRACT
This study was conducted to find out how the carnation production started in
Englandad, Paoay, Atok, Benguet; find pout how the cooperative was organized;
determine the role of the cooperative in selling carnation; and determine the problems
encountered by the cooperative members in producing carnation.
This study was conducted at Mountain Bloom Multipurpose Cooperative with 29
members as respondents. Majority of them were female and have pass their golden age.
Some of the respondents had been producing carnation for several years while other have
just shifted from vegetable production to carnation production.
Carnation production in Englandad, Paoay, Atok, Benguet was started by King
Louis Flowers and Plants, Inc. Later, the vegetable farmers from the place adopted it as
one of their crops. The first farmers to produce carnation learned the technology from.
Prof. Hermano. Other farmers who shifted into carnation production learned from other
sources like BSU, Land Bank, and from the Municipal Agriculture Office of Atok.
Majority of the farmers just have one green house they produce carnation and
they harvest 8 – 15 dozens of carnation flowers per week. They replant their carnation
every after three years of continuous harvest.
The Mountain Bloom Multipurpose Cooperative was organized through the
initiative of Prof. Hermano. The objective of the cooperative was to provide farm inputs,
technical assistance and financial assiatance to the farmers as well as to market theirt
produce. The cooperative maintains a stall at Dimasalang managed by three sellers.
Traders from Boracay, Bacolod, Visayas, Dagupan and other nearby areas in Metro
Manila get their supply of flowers from the cooperative’s outlet at Dimasalang.
When the farmers harvest their flowers, they pack them and the cooperative
transports, the flowers through the truckers, to the market outlet at Dimasalang. The
payment to the farmers are given after the flowers are sold. The sellers send the payment
through the trucker to the cooperative. The cooperative deducts the cost of transportation
and an amount for capital build-up and remits the balance to the farmers.
ii
TABLE OF CONTENT
Page
Bilbiography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION
Rationale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Scope and Limitation of the study. . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
REVIEW OF LITERATURE
Purpose of cooperative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Success Factors of cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Cooperative Failure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Economic Contributions of Cooperatives . . . . . . . . . . . . . . . . . . . . . .
6
Role of Cooperative in Community Development. . . . . . . . . . . . . . . .
7
Carnation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Conditioning of Cutflowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
METHODOLOGY
Locale and Time of Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
RESULTS AND DISCUSSION
Profile of the Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Carnation Production of the Respondents . . . . . . . . . . . . . . . . . . . . . .
13
Sources of Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Schedule of Production . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .
16
The Role of Mountain Bloom Multipurpose Cooperative
in Carnation Production and Marketing. . . . . . . . . . . . . . . . . . . . . . .
17
Key Actors in the Carnation Production and Marketing . . . . . . . . . . .
18
Product and Payment Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Benefits Offered by the Cooperative to the members . . . . . . . . . . . . .
22
Problems of the Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Problems of the Cooperative members . . . . . . . . . . . . . . . . . . . . . . . .
23
Urgent Needs of the Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
ii
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
APPENDIX
Appendix A: Guide Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
iii
INTRODUCTION
Rationale
Republic Act. No. 2023 (1995) declared, a policy aimed to assist the people to
develop their enterprise on a cooperative basis, to strengthen their economic
independence and to promote organized methods of industrial production.
Municipality of Atok promotes cooperativism among the constituents through
encouraging them to organize a cooperative for them to have institutions that is stronger
that will represent them in any aspect like marketing of product of the members.
Mountain Bloom Cooperative was organized because many of the folks in
Englandad, Paoay, Atok, Benguet where the cooperative is situated were fun of planting
flowers especially carnation because it is a little bit expensive. Some of the farmers
shifted to carnation production from vegetable production because of low prices of
vegetables. The cooperative was initiated by Faustino Hermano and Nario Celo. This was
registered at Cooperative Development Authority (CDA) on June, 2004 with fifteen (15)
members. The cooperative was named as Mountain Bloom Cooperative because the place
is Mountainous and the product to be produced id carnation. The organizer decided to
collect two thousand pesos (P2,000.00) each as share capital and two hundred pesos
(P200.00) as their membership fee with total of thirty three thousand pesos (P33,000.00)
as the initial capital of the cooperative.
Mountain Bloom Cooperative helps the members and non-members to market
their produced carnation by selling in the rented place in Manila. The carnation growers
had been selling their flowers to wholesalers at very low price. This time that the
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cooperative is the one selling the product, the price received by the farmers is high. The
farmers are realizing a higher price from their produced carnation. The farmers are not
hard up in selling their product because the cooperative is responsible in marketing their
products. All technical assistance given to the growers are also channeled through the
cooperative.
This system of production and marketing benefits the participating farmers. This
study will be conducted to document the practices and arrangement done by the farmers
and the cooperative. With this documentation, other people would be aware of
advantages of this production and marketing system and they could also adopt it in their
own locality.
Statement of the Problem
The study was conducted to find answer to following questions:
1. How did the carnation production started in Englandad, Paoay, Atok?
2. How the cooperative was organized?
3. What are the roles of cooperative in selling carnation?
4. What are the problems encountered by the cooperative in selling carnation?
5. What are the problems encountered by the cooperative members in producing
carnation?
Objectives of the Study
The study aimed to accomplish the following:
1. find out how the carnation production started in Englandad, Paoay, Atok.
Documentation of the Carnation Production and Marketing of Mountain Bloom
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2. find out how the cooperative was organized.
3. determine the roles of the cooperative in selling carnations.
4. determine the problems encountered by the cooperative in selling carnation.
5. determine the problems encountered by the cooperative members in producing
carnation.
Importance of the Study
Unless a good practice is documented, it would not be known and adopted by
others. There is also a good chance that it would be forgotten. This study could be a
source of information for other interested groups to adopt the same system of production
and marketing.
In addition, the study would also serve as reference for future studies.
Scope and Limitation of the Study
The researcher focused on the role of Mountain Bloom Cooperative in carnation
production and marketing. This was conducted in the locality of Englandad, Paoay, Atok,
Benguet, Philippines from December to January 2008.
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4
REVIEW OF LITERATURE
Purpose of Cooperative
Economic growth and development have been an elusive goal of the Philippines.
The overall development goal is for improved quality of life for every Filipino through
international competitiveness and people empowerment through cooperatives. A
cooperative is a business and social organization that exposes the spirit and value of self-
help and working together in the pursuit of social and economic ends (Pasigon and
Gonzaga, 1996).
Pimentel (1994) as cited by Gayumma (2005 ) stated that cooperatives maybe
formed for any economic, social and educational advancement of their members.
Cooperatives maybe formed to engage in business of cooperative banks, wholesale and
retail complexes, insurance, marketing enterprises and even public markets.
Rodriguez, et al. (1988) also stated that though cooperatives are not usually
regarded as “business” in the ordinary sense, many cooperatives today trade goods and
services not only with their members but also with the general public and consciously
attempts to generate surplus that they may be regarded as business organization in many
aspects.
Cooperative
The Cooperative Code of the Philippines stated that cooperatives are duly
registered association of persons with a common bond of interest, who have voluntarily
joined together to achieve a lawful common social and economic end, making equitable
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contributions to the capital required and accepting a fair share of the risks and benefits of
the undertakings in accordance with universally accepted cooperative principles.
Chackley (1975) as cited by Payacda (2005)stated that it is absolutely essential
that the long term objective of making the cooperative movement an independent and
autonomous one is kept constantly in mind and that governments all over the world
should recognize cooperatives not as end themselves but a means in helping people to
grow and mature, to improve living conditions and to strengthen their freedom and
independence.
A cooperative is a form of business firm. It is owned and controlled by its
member patrons. It is organized to serve the needs of its members in a way that will
enable him to realize higher income, lower cost and more efficient and dependable
services. Cooperative helps people to operate and own their business firms and to
increase their earnings as much as possible (Sacay, et al., 1972).
Success Factors of Cooperatives
Pagdanganan (1999) enumerated the following factors that determines the success
of a cooperative. These are: 1). Merging and consolidation of primary cooperatives, 2).
Professionalization of management, 3). Training and education program, 4). Effective
auditing system for cooperatives and cooperative banks, and 5). Government support to
cooperatives based on the principle of subsidiary.
Cooperative Failure
A failed cooperative is one that has been unsuccessful, unable to perform this
program or activities and unable to carry on with their goals or objectives for a number of
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year and service formed. Despite the importance and progress brought about by
cooperatives, there are problems and constraints within the cooperative itself, which may
contribute to its success or failure. One of this is lack of funds for production loans.
Another problem is the policy of the government to allow NGO’s to organize
cooperatives in any part of the country without outlining appropriate policies and
regulastions, which results to san overlapping with the cooperatives function of the
government. There is weak institutional structure for providing sustained cooperative
education and training leading to lack of qualified managers in the system. There is also a
lack of government incentives in terms of financial assistance, and most of all
cooperatives suffer from the fact that there is a negative impact of government policies
particularly in delivering agricultural credit and pricing (Castillo, 1983).
Economic Contributions of Cooperatives
Dawawa (2004) found out that there was an increase in agricultural production
output because cooperative members were able to engage in more business opportunities
as a result of availability of more capital inputs with lesser interest. Socially, cooperatives
give eaul treatment to both rich and poor. Culturally, enhance the relationship among
members even those who belong to other cultures. Politically, the members were
provided opportunities to exercise their right of suffrage during their assemblies.
Role of Cooperative in Community Development
Community development as ways for people to work together in order to build
better community and thereby improve the welfare of all. They organized themselves
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under their free will and work as a team to solve problems of their community . They are
concerned with the development of human resources and consider man as the most
important of development. Cooperative develops values of their members. They teach
and practice wise use of money, to be self-reliant, which is one key concept of the
cooperative program. Cooperatives demonstrate the value of group cooperation and
social awareness. Farmers’ negative attitudes and values can be changed through
continuous training and education.
Carnation
Carnation has been use since the classical Geek and Roman time as medicine to
control fever and expel poison, as a dye for black hair, and to flavor beer and wine.
Carnation is also known as Pink, Clove Pink, Gillie, Gillyflower, Diveine flower,
Jove’s flower, and Sops-wine. The botanical name is Dianthus caryophyllus.
Dianthus comes from the Greek words “dios”, referring to the god Zeus, and
“anthos”, meaning flower, thus we have divine flower of the gods (named by the Greek
botanist Theophrastus). The name carnation may have originated from the word flowers
use to make ceremonial crowns in Greece. Also coronations were decorative head bands
made of woven flowers worn by young maidens. An “Pink” is derived from a word
meaning scalloped describing the shape of the edge of carnation petals. Because
carnations are showy, colorful and long lasting flowers it has become one of the favorite
cut flowers. Carnation is excellent for floral bouquets.
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Conditioning of Cut Flowers
Conditioning of cutflowers is done immediately after storage to counteract slight
dehydration durting storage. It is done either re-cutting the stem ends by about 2 – 4 cm
or by placing them in the preservative or warm water (38 -40 oC) for at least two hours
before arranging in a vase.
Silver Nitrate solution as a pre-conditioning for chrysanthemum eliminated the re-
cutting of stems after shipment (Ferrhan et.al., 1979). In snapdragon, Nowak (1981)
found that a pre-treatment with Ag No3 + sodium Thiosulfate + sucrose gave the best
result in terms of quality. Pre-treating carnation with AgNo3 dip greatly improved
longevity and size of both fresh ans shipped flowers (Halevy et al., 1978).
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METHODOLOGY
Locale and Time of the Study
The research was conducted in the locality of Englandad, Paoay, Atok, Benguet
from December, 2007 to January, 2008.
Respondents of the Study
The information used in this study was gathered from 29 members. Other
information were gathered from the officers of the cooperative, the Mountain Bloom
Cooperative.
Data Collection
The primary data was collected through personal interview with the respondents
and other key informants.
Data Analysis
The data gathered was summarized and analyzed based on the objectives of the
study.
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RESULTS AND DISCUSSION
Profile of the Respondents
Table 1 presents the profile of the 29 members of Mountain Blooms Multipurpose
Cooperative. This included their sex, age, number of years in farming, number of years in
carnation production, number of years as member of the cooperative, and reasons for
joining the cooperative
Sex. Table 1shows that out of 29 respondents, 20 were female and only 9 were
male. This is because there were more female members of the cooperative than male.
Age. The table presents that majority of the respondents were more than forty
years old to sixty years old. Two respondents each belonged to the age bracket 73- 84
years old and 25 – 36 years old while 7 belonged to the 61 – 72 years old. This finding
implies that majority of the members of the cooperative and who are producing carnation
have pass their golden age.
Years in farming. The finding reveals that almost all the respondents had been
into farming for more than ten years. They had been producing vegetables for quite a
number of years before they shifted to cutflower production. They first started with
chrysanthemum before they shifted to carnation production.
Years in carnation production. The respondents had been producing carnation for
less than ten years. Fourteen or 48.28% had been growing carnation for 2-5 years while
15 or 51.72% had been into carnation production for 6 – 8 years already. This finding
shows implies that carnation production is still new in the place.
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Number of years in the cooperative. The cooperative was just organized in 2004
and majority of the respondents (79.31%) joined the cooperative during that year so they
are now members of the cooperative for more than 2 years. The rest of the respondents
(20.69%) have just joined the cooperative so they were members for just 1 – 2 years.
Reasons for joining the cooperative. The respondents joined the cooperative for
different reasons. Nine of them became members of the cooperative because they were
convinced by other people to join, seven of them said they joined the cooperative because
of the benefits they get from being members. They observed that the other carnation
growers who joined the cooperative did not find difficulty in selling their flowers because
the cooperative buys their flowers. Besides, the price they received was much higher than
what they could sell their flowers in other outlet. They could also avail of credit from the
cooperative. All these motivated them to join the cooperative. Three of them said they
joined the cooperative because they wanted to tray carnation production. Five
respondents each mentioned they wanted to try the cooperative as market for their
flowers while the others joined the cooperative because they wanted to experience being
a member of the cooperative.
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Table 1. Profile of the respondents
PARTICULAR
NUMBER
PERCENT
(F)
(%)
Age
25-36
2
6.90
37-48
7
24.14
49-60
11
37.93
61-72
7
24.13
73-84
2
6.90
TOTAL
29
100.00
Number of Years in Farming
6 – 14
3
10.34
15-23
6
20.70
24-32
9
31.03
33-41
9
31.03
42-50
2
6.90
TOTAL
29
100.00
Years as Member in the Cooperative
1 - 2
6
20.69
More than 2 years to 3 years
23
79.31
TOTAL
29
100.00
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Table 1. Continued …
PARTICULAR
NUMBER
PERCENT
(F)
(%)
Reasons for joining the Cooperative
1. Convinced by others
9
31.03
2. Because of benefits/ advantages
7
24.14
from the cooperative
3. Wanted to try carnation production
3
10.34
4. Wanted to experience coop membership
5
17.24
5. To help other members of the cooperative.
5
17.24
6. To increase income through
2
6.90
carnation production.
TOTAL
29
100.00
Carnation Production of the Respondents
This section presents the number of years the respondents engaged in carnation
production, the number of green house they have, volume of harvest per week, and
number of years before replanting. All these data are presented in Table 2.
Number of years in carnation production. The result shows that some of the
respondents had been producing carnation for several year already while other have just
shifted from vegetable production to carnation production. Fourteen or 48.28% of the
respondents had been producing carnation for 2 – 5 years while 51.72% had been
producing for 6 – 8 years.
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Number of greenhouse. All the members of the cooperative had at least one green
house of their own, since this is a prerequisite before they join the cooperative. The
finding shows that 62.07% of the respondents had only one green house, 34.48% had 2
greenhouses, and only or 3.45% had three greenhouses.
Volume harvested per week. The respondents differ in their volume of harvest per
week. Some harvested more and some harvest less depending on the number of
greenhouse they have. The result shows that 13 or 44.83% harvested 5 – 10 dozens per
week, 11 or 37.93% harvested 11 – 15 dozens per week and only 5 respondents or
17.24% harvested 16 – 20 dozens per week.
Number of years before replanting. The carnation plant is a perennial plant.
When planted and established, it flowers continuously for more than one year before it is
again replanted, according to the farmers. Majority of the respondents (51.72%) replant
after three years. There were 13 respondents or 44.83% who said that they replanted after
two years because the amount of harvest they get is low and besides, the quality is not
good so they have replant. The same was true for one respondent who replanted her
carnation after one year.
Table 2. Farm profile of the respondents
PARTICULAR
NUMBER
PERCENTAGE
(F)
(%)
Number of Years in Carnation Production
2-5
14
48.28
6-8
15
51.72
TOTAL
29
100.00
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Table 2. Continued …
PARTICULAR
NUMBER
PERCENTAGE
(F)
(%)
Number of Greenhouse
1
18
62.07
2
10
34.48
3
1
3.45
TOTAL
29
100.00
Volume Harvested per Week (in doz.)
5-10
13
44.83
11-15
11
37.93
16-20
5
17.24
TOTAL
29
100.00
Number of Years before Replanting
1
1
3.45
2
13
44.83
3
15
51.72
TOTAL
29
100.00
Sources of Technology
Table 3 presents the sources of technology adopted by the farmers in carnation
production. The various sources of technology adopted by the respondents and the other
carnation producers were from BSU technicians, Land Bank, Private technicians like
Prof. Hermano, and from the Municipal Agriculturist Officer of Atok. Majority (68.90%)
mentioned that they are adopting the technology taught to them by Prof. Hermano,
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Table 3. Sources of technology used by the respondents
SOURCES
NUMBER
PERCENTAGE
(F)
(%)
BSU
3
10.34
Land Bank of the Phil.
4
13.79
Private technician
20
68.97
Municipal Agriculturist Officer
2
6.90
TOTAL
29
100.00
10.34% were using the technology taught to them by an extension worker in Benguet
State University, 13.79% said they got their technology from a technician of Land Bank
of the Philippines and 6.9% said they were taught by the municipal agriculturist of Atok,
Benguet.
Schedule of Production
The schedule of planting the cutflowers including carnation is planned by the
cooperative so that the farmers will harvest by schedule. In this manner there will be
continuous supply of flowers to be sold by the cooperative. A sample of the schedule
taken from the cooperative is presented in Table 4.
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Table 4. Sample of planting schedule employed by the cooperative to members
MEMBER
FLOWER PRODUCE
CARNATION CALLALILY SIESTA
AGAPANTUS SNAP
DRAGON
Member 1 January
February
March
April
May
Member 2 February
January
April
May
March
Member 3 March
May
February
January
April
Member 4 April
March
May
February
January
Member 5 May
April
January
March
February
The Role of Mountain Bloom Multipurpose Cooperative
In Carnation Production and marketing
The Mountain Bloom Multipurpose Cooperative was organized through the
initiative of Prof. Faustino Hermano, who was then a consultant of King Louis Flowers
and Plants, Inc.(KLFPI). There were some farmers who were engaged in cutflower
production in the place. Some of the farmers started to plant carnation but they lack the
technical knowledge in growing carnation so they asked the help of Prof. Hermano. His
problem was the farmers were not organized so he suggested to the farmers to organize
into a cooperative so that it would be easy to help them. The cooperative was registered
to CDA on June, 2004 with fifteen farmers as initial members. Each member contributed
P2,000 as share capital and P200 as membership fee. The cooperative started its
operation with P33,000 as initial capital. The organizational structure of the cooperative
is presented in Figure 1.
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General Assembly
Audit and
Credit
Board of
Election
Conciliation
Inventory
Committee
Directors
Committee
Committee
Education and
Training
Committee
Manager
Bookkeeper
Auditor
Seller
Figure 1. The organizational structure of Mountain Bloom Cooperative
Note: *All staff and officers are not accepting salary or honorarium except the auditor,
bookkeeper and sellers.
* All staff and officers were not replaced since the cooperative was organized.
Key Actors in the Carnation Production and Marketing
The key actors in the production and marketing of carnation were the farmers, the
cooperative (Mountain Bloom), the Atok bus, the trucker, the traders (wholesalers and
retailers), and the consumers (Table 4).
Farmers. The farmers were responsible in constructing their greenhouse, invest
their own money or get loan from the cooperative. They were also responsible in
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acquiring their planting materials as well as the farm inputs. When the flowers are ready
for harvest, the farmers harvest them and bring them to the packing area at the
cooperative office. However, the farmers were still responsible for packing the flowers.
Cooperative. The Mountain Bloom Multipurpose Cooperative provides crop loan
to the members for buying planting materials or farm inputs. It also provide the
packaging materials for the flowers. After the farmers pack the flowers, the cooperative is
now responsible for transporting them to Dimasalang. The cooperative is currently
maintaining a stall at the cutflower market in Dimasalang managed by three (3) sellers.
After the flowers are sold they sellers send the payment to the cooperative through the
trucker. From the sales proceeds, the cooperative deducts the transportation cost plus an
amount for capital build-up and give the balance to the farmers.
The cooperative is also responsible in conducting seminars to update the
knowledge of the farmers on cutflower production.
The bus. The Atok bus also play an important role in the transport of the
carnation flower. Every Tuesdays and Fridays, the bus picks up the flowers and bring
them to Gate 1 of Benguet State University to be picked up by the trucker.
The trucker. The trucker is responsible in transporting the flowers to Dimasalang
where they will be picked up by the sellers. The trucker is also responsible in getting the
payment of the flowers from the sellers and hand it to the cooperative.
The traders. The traders consisted of wholesaler/Retailers at Dimasalang area and
retailers coming from other places in Metro manila and from other places like Baguio
City, Bacolod, Boracay, Visayas, and Dagupan. The key informant mentioned that at first
the cooperative delivered the flowers to Bacolod, Boracay, and Visayas but because of
Documentation of the Carnation Production and Marketing of Mountain Bloom
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the high cost of transportation they stopped the delivery. At present, the traders from
these places are now coming to Dimasalang to buy the flowers.
The Consumers. The key informant mentioned that majority of the flowers were
being bought for church decorations during weddings and other church occasions.
Table 4. Key actors in the carnation production and marketing and their functions
KEY ACTORS
FUNCTIONS
1. FARMERS
a. Plant carnation
b. Take care of the carnation
c. They will be the one to harvest the
carnation
d. Packaging of flowers
2. COOPERATIVE
a. Lend capital to the members
b. Conducts trainings for the members
c. Market the flowers and pay the farmers
3. Atok Bus
a. picks up the flowers from the
cooperative and brings them to BSU gate 1.
4. Trucker
a. delivers the flowers to Dimasalang and
picks up the payment and delivers it to the
cooperative.
3. RETAILER/ WHOLESALER
a. Selling of the product
b. Look for consumers
4. CONSUMER
a. User of carnation
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Product and Payment Flows
The product flow from the farmers to up to the consumers is presented in Figur2
and the payment flow from the consumer down to the farmers is presented in Figure 3.
These flows were conceptualized based on the story of the key informants.
The carnation flowers produced by the members of the cooperative bring all their
flowers to the cooperative. The cooperative is responsible in looking for market outlets of
these flowers. The cooperative through it outlet in Dimasalang sale the flowers to
wholesaler and retailers from different places then from the retailers it goes to the
consumers. Bulk of it goes to the church.
For the payment, the cooperative receives the payment from its customers, the
sellers send the money through the trucker then the cooperative deducts the transportation
cost and the capital build-up then pays the farmer.
RETAILERS
FARMERS
COOPERATIVE
CONSUMERS
WHOLE
SALER/
RETAILERS
Figure 2. Shows the flow of cut flower traded by Mountain Bloom Cooperative
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RETAILERS
FARMER/
COOPE-
MEMBER
RATIVE
TRUCKER
CONSUMERS
WHOLE
SALER/
RETAILERS
Figure 3. Flow of payment from customer to the farmers/members of Mountain Bloom
Cooperative
Benefits Offered by the Cooperative to the Members
According to the key informant the cooperative provided many benefits to the
members. These benefits were in the form of: 1). Technical support like trainings and
seminars on cutflower production, quality control and postharvest technology; 2). Crop
loan; 3). Irrigation facility; 4). Assured market for their produce, not only carnation but
including the other flowers that they produce.
Problems of the Cooperative
The following problems were mentioned by the Chairman of the Board of the
Cooperative: financial support to expand business, lack of knowledge and training of the
officers and members in the proper operation of the cooperative, poor auditing and
bookkeeping, and poor marketing strategies.
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Problems of the Cooperative Members
The problems of most members of the cooperative were lack of capital for
efficient farm operation, high prices of inputs and low prices of products, and limited
source of planting materials.
Urgent Needs of the Cooperative
According to the chairman of the cooperative, they are in need of a stable market
outlet for their product because the market at Dimasalang, there are many other
competitors. Another need of the cooperative is post harvest handling facilities. They
need these facilities to maintain the high quality of the flower when it reach the buyer.
They are also in need of transportation facility so that they could increase the volume
of their produce and could transport their flower to other places and minimize
transportation cost if they own the truck. They also need to train their members on
bookkeeping and accounting as well as auditing so that their operation would
improve.
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to document the carnation production and marketing of
Mountain Blooms Multipurpose Cooperative at Englandad, Paoay, Atok, Benguet.
Twenty nine members of the cooperative were taken as respondents. The
Chairman of the Board of Directors and other officers also served as key informants. The
study was conducted from December 2007 to January 2008.
Majority of the respondents were female, more than forty five years old and had
been into farming for more than 20 years. However, for carnation production, most of the
farmers had been into it for 6 – 8 years. Majority of the respondents were members of
the cooperative for more than two years and they joined the cooperative because they
wanted to grow carnation. Some observed the benefits that the members get from the
cooperative like trainings and seminar, crop loan, and the assured market for their
flowers.
All the respondents were growing their carnation in green houses. Majority had
only one green house and most of them were harvesting5 – 10 dozens per week. Majority
replant their carnation after 3 years.
The sources of technology were from BSU technician, Prof. Hermano, from the
Municipal Agriculture office, and from Land Bank of the Philippines technician. The
schedule of planting for the farmer-members for the different cut flowers was scheduled
by the cooperative so that there will be continuous harvest of flowers every week. This is
also to control the volume of production.
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The key actors in the carnation marketing were the farmers, the cooperative, the
trucker including the bus that transport the packed flowers from Atok to La Trinidad
where it would be picked up by the trucker to delivery to Dimasalang. The cooperative
has a wholesaling stall at Dimasalang where the wholesaler/retailers and retailers from
other places. The consumers of carnation were usually hotels and individual buyers.
The payments of the flowers from the consumers goes to the retailers and
wholesaler retailers then it is carried by the trucker to the cooperative and the cooperative
gives the payment to the farmers concerned. The cooperative deducts the transportation
cost and a percentage of the sales for capital build-up.
Aside from marketing of the products, the cooperative also provide trainings and
seminar on cutflower production, quality control and postharvest technology; crop loan;
and irrigation facility.
Some problems of the cooperative were lack of knowledge of the officers and
members on the proper operation of the cooperative, on bookkeeping thus they are in
need of trainings for their officers and members of the committees. They also have
problem on poor marketing strategy thus they also wanted some trainings on marketing.
The problems encountered or met by the different cut flower cooperatives are
financial support to expand business, sources of new cut flower planting materials, high
prices of farm inputs on low prices of products, insufficient knowledge on bookkeeping
and accounting which affect the operation of the cooperative and limited source of
planting materials.
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Conclusions:
Based on the finding, the following conclusion were made:
1. Majority of the members of Mountain Bloom Multipurpose Cooperative are
female farmers who shifted from vegetable farming to cutflower production.
2. Membership to the cooperative is beneficial to the farmers because they could
avail of trainings and seminars on cut flower production and post harvest
handling. Besides there is also sharing of experiences and ideas on cut flower
production among all members of the cooperative.
3. All cut flowers of the members of Mountain Bloom Multipurpose Cooperative are
being sold in Metro Manila through the cooperative. This is due to higher price of
cut flower products in Metro Manila compared to the price here in Baguio City.
4. Some of the carnation flowers were brought by trader to as far as Boracay,
Bacolod and Visayas.
5. The producers met problems on lack of financial support, high prices of farm
input, low price of flowers, and limited sources of planting materials.
6. The cooperative is in need of specialize trainings on bookkeeping and accounting,
auditing as well as training on marketing.
Recommendations:
Based on the results of the study, the following recommendations were made:
1. Other farmers producing cutflowers should join the cooperative inorder to avail of
the benefits that the members are enjoying.
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2. The cooperative should look for alternative market outlet for the cutflowers so
that farmers could increase the volume of their production. The cooperative
should also conduct invite experts in cutflower production, experts in postharvest
handling and quality control and experts in marketing to give lecture to the
farmers. In the same manner, the cooperative should also invite trainors on
bookkeeping and accounting, and auditing to train the members on bookkeeping
and accounting so that they would be able to do the bookkeeping themselves
without hiring from outside for the time being that the cooperative could not pay
the salary of a full time bookkeeper.
3. The cooperative should also engage in selling farm inputs to the members. The
cooperative should buy in bulk and sell it to the members at a lower price
compared to the farm input suppliers.
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LITERATURE CITED
CASTILLO. C.T. 1983. Cooperative problems and constraints. University of the
Philippines, Los banos, Laguna. NSDB-UP Integrated Research Program. Pp.
26-30.
CHAKLEY, A. 975. Development Journalism. Manila, Press Foundation of Asia. P.5.
Republic Act of the Philippines. 1955. Bureau of Printing. Manila P.612.
DAWAWA, J.T. 2004. Profile of primary cooperatives in Atok, Benguet. BS Thesis,
Benguet State University, La Trinidad, Benguet. Pp.4-5.
FAUQUET, G. 1987. A Primer on Cooperatives. Global Review of the Cooperative in
Economics and Social Development. Pp. 7-8
FERRHAN, S.C. and A.H. HALEVY. 1979. Comparison of conditioning, precooling
transmit method and use of a floral preservatives on cut flower quality, Journal
of America 30c. Hort, 104(6) pp. 483-490.
GAYUMMA, P.K. 2005. Profile of primary cooperatives in Atok, Benguet. BS Thesis.
Benguet State University, La Trinidad, Benguet. Pp.4.
HALEVY, H.. and S. MAYAK. 1978. Improvement of cutflower quality, opening and
longevity by pre-shipment treatments. Acta. Hortic. 43. 335-347.
PAGDANGANAN, R. 1999. a CALL FOR Cooperative Revolution. Quezon City,
Philippines. FLAGG. Pp. 183-349.
PASIGON, L.D. and GONZAGA. 1996. Comparative study of different credit
cooperative in Metro Baguio and La Trinidad, Benguet. BS Thesis, Benguet
State University, La Trinidad, Benguet. Pp. 6-7.
PAYACDA, J.P. 2005. Reponse of three standard varieties of carnation cut flower to dry
and wet storage. BS Thesis, Bneguet State University, La Trinidad, Benguet.
P.9.
PIMENTEL, A.Q. 1994. Cooperative Code of the Philippines, White Orchids Printing
and Publishing Co.
RODRIGUEZ, R.A. and ECHANIS, E.S. 1988. Fundamental of Management, 2nd
Edition. Diwata Publishing. Pp.4-5
SACAY, O.J., M.H. AGRABIAN and I.E. TANCHOCO. 1972. Small Farmers Credit
Dilema. National Publishing Cooperatives. Manila, Philippines. Pp. 2,39,41, 102.
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
29
APENDIX A
GUIDE QUESTIONS
I. Demographic Profile
Name (Optional)
Sex
Age
Number of years in farming
Former production activity
Number of years as member of the cooperative
Reasons for joining the cooperative
II. Production Profile
Number of green house
Sources of planting materials
Sources of inputs
Sources of technology
Volume of harvest per week (dozens)
Number of years before replanting
Problems met in carnation production
Problems met in the cooperative
Documentation of the Carnation Production and Marketing of Mountain Bloom
Multipurpose Cooperative of Englandad, Paoay / Julie T. Quintos. 2008
Document Outline
- Documentation of the Carnation Productionand Marketing of Mountain Bloom Multipurpose Cooperative of Englandad, Paoay,Atok, Benguet
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENT
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED
- APPENDIX