The municipality of Asipulo in Ifugao province has started the delivery of tomatoes produced from their farms supplying three companies in Metro Manila.
Joan Bacbac, Chief of the Agribusiness and Marketing Assistance Division (AMAD) of the Department of Agriculture-Cordillera (DA-CAR) explained that the delivery of tomatoes was a result of the cost structuring agreed upon between the farmers cooperative association (FCA), DA-CAR AMAD, and representatives of the World Food Expo or WOFEX.
“The farmers started the delivery of their tomatoes in October this year to supply around three tons of tomatoes weekly to three companies in Metro Manila after they have agreed to the cost structure developed by DA-CAR AMAD and WOFEX consistent with the cost envisioned by the FCA,” Bacbac explained.
Cost structuring considers the variable costs incurred including labor, ingredient, equipment repairs, fuel costs for distribution, marketing expenses, and other costs. Fixed costs are consistent costs (overhead) that do not change from month to month.
“Aside from Asipulo, we are also looking forward to other FCAs in the different municipalities of the province that produce tomatoes to help in supplying other companies in Metro Manila. Asipulo is an example of a market linkage where we look for possible buyers or markets for their products,” Bacbac added.
Market linkage improves commercialization, with farmers having access to markets and profitable returns on investments.
Linking aims to integrate the value chain, increase market accessibility, and enable smallholders to attract and negotiate with larger buyers, access certifications, and grow their businesses.