multipurpose tree species research for small farms: strategies ... - part

The transformation of small agroforestry
farms from subsistence to a semi-subsistence
economy istaking place in many less developed
countries (LDCs). The rate and impact of
transformation differ across countries,
However, it is a common observation that
although farmers are able to participate in
marketing activities, they do not receive fair and
adequate returns from their efforts. Therefore,
sufficient incentives for raising productivity are
lacking and marketable surplus and incomes
remain small.
Market development should be an essential
component of social/community forestry,
integrated into development plans to promote
ecological stability and raise the socioeconomic
welfare of small-scale farmers. The underlying
premise is that efficient markets allow for
greater productivity and income which, in turn,
enhance conservation efforts,
This paper is divided into three parts. The
first discusses why market development should
be integrated into a comprehensive plan of
social/cornunity forestry. The second part
presents empirical evidence on the marketing of
agroforestry products in the Philippines,
identifies marketing-related problems of
small-scale farmers, and makes suggestions for a
market development program. The last part
identifies subject areas for a marketing research
agenda and considerations for research
methods.
Market Development - An Essential
Component of AgroforestI
The social forestry program of the
Philippines aims to promote ecological stability
and improve the socioeconomic welfare of the
forest occupants. This isbeing undertaken
through upland development efforts by the
government under its Integrated Social Forestry
Program (ISFP) and the private sector with
increasing support from non-governmental
Marketing Tree Products from Small Farms:
Case Studies from the Philippines and
Implications for Reseaich
Isabefita M. Pabuayon
College of Economics and Management
The University of the Philippines at Los Banos
College, Laguna, Philippines
43
organizations (NGOs).
As a social equity program, the ISFP aims to
provide direct improvements in agroforestry
productivity and income for the 17.8 million
Filipinos occupying the upland forest areas.
This is to be achieved through an incentive
structure that includes land tenure security,
technical assistance, credit support, and viable
marketing schemes. Tangible benefits in terms
of higher productivity and incomes must be
realized by the forest dwellers to enable them to
participate in soil and water conservation
measures for the protection of the Philippines'
forest resources.
The potential of marketing to improve farm
productivity and income, and its effect on
conservation has been overlooked. Productivity,
income, and conservation may be reinforced or
constrained by market-related factors. As
small-scale farmers become part of the
marketing system, price increasingly becomes
an important variable in their decision-making
process. A suitable price for their products
should contribute to the achievement of
conservation and improved standards of living
for upland farmers.
Improved levels of income may be achieved
through higher productivity and a favorable
price stricture. The latter is required to sustain
productivity and isa function of efficient inout
and output markets. The availability of low-cost
production inputs (seeds/seedlings, fertilizer
and other farm chemicals) as well as better
output agroforestry prices should have positive
production.
impacts on
An efficient marketing system is one which
moves goods from producers to consumers at
the lowest cost consistent with the provision of
services that consumers desire and are willing
and able to pay. This implies the formation of
prices corresponding to the cost of bringing the
products at the right time, place, and form